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2021-11-03 City Council Item No. 11.1 Consideration of Annexation No. 6: Sumac Ridge Presentation Regular MEETING - Additional Meeting MaterialsPUBLIC HEARING ITEM CONSIDERATION OF ANNEXATION NO. 6: SUMAC RIDGE–(TTM 37668) TO COMMUNITY FACILITIES DISTRICT NO. 2017-1 NICOLAS FIDLER, PUBLIC WORKS DIRECTOR NOVEMBER 3, 2021 Discussion •THE PROPERTY OWNER, MERITAGE HOMES OF CALIFORNIA, INC., HAS REQUESTED THE CITY ASSIST THEM IN ANNEXING TERRITORY INTO CFD NO. 2017-1 TO COVER THE COSTS ASSOCIATED WITH THE MAINTENANCE OF PUBLIC IMPROVEMENTS. •THE AREA PROPOSED WITHIN ANNEXATION NO. 6 INCLUDES PROPERTY WITHIN TTM 37668. THIS PROPOSED DEVELOPMENT IS TO INCLUDE THE NEW CONSTRUCTION OF 175 DETACHED SINGLE FAMILY RESIDENTIAL UNITS. •THE PROPOSED MAXIMUM ANNUAL TAX OF $1,060 PER RESIDENTIAL UNIT, AND WILL BE INCLUDED IN CFD NO. 2017-1 AS “TAX ZONE 6.” THIS TAX RATE INCLUDES A MAXIMUM SPECIAL TAX A OF $765 PER UNIT PER YEAR FOR MAINTENANCE SERVICES OF PUBLIC FACILITIES AND A MAXIMUM ANNUAL SPECIAL TAX B (CONTINGENT) OF $295 PER UNIT PER YEAR. THE MAXIMUM ANNUAL TAX IS PROPOSED TO ESCALATE AT THE GREATER OF THE CONSUMER PRICE INDEX (CPI) OR 2%. Discussion (Cont.) •THE SERVICES, WHICH MAY BE FUNDED WITH PROCEEDS OF THE SPECIAL TAX INCLUDE: •ALL COSTS ATTRIBUTABLE TO MAINTAINING,SERVICING,CLEANING,REPAIRING AND/OR REPLACING LANDSCAPED AREAS IN PUBLIC STREET RIGHT-OF-WAY ’S,PUBLIC LANDSCAPING,PARKS ,OPEN SPACES AND OTHER SIMILAR LANDSCAPED AREAS OFFICIALLY DEDICATED FOR PUBLIC USE,STREET SWEEPING AND PAVEMENT MANAGEMENT,STREET LIGHTING AND TRAFFIC SIGNAL MAINTENANCE,GRAFFITI REMOVAL AND ABATEMENT,FLOOD AND STORM PROTECTION SERVICES AND THE OPERATION OF STORM DRAINAGE SYSTEMS. •IN ADDITION TO THE COSTS OF THE FORGOING SERVICES,PROCEEDS OF THE SPECIAL TAX MAY BE EXPENDED TO PAY ADMINISTRATIVE EXPENSES AND FOR THE COLLECTION OF RESERVE FUNDS. Location Map Maintenance Exhibits Maintenance Exhibits Fiscal Impact •IT IS ANTICIPATED THAT AT BUILD-OUT THE TOTAL SPECIAL TAX REVENUES TO PAY FOR MAINTENANCE COSTS WILL BE APPROXIMATELY $185,432. ALL COSTS ASSOCIATED WITH THE ANNEXATION IS BORNE BY THE DEVELOPER. THERE IS NO FISCAL IMPACT TO THE CITY’S GENERAL FUND. Recommended Action 1.CITY COUNCIL INITIATE ANNEXATION OF TERRITORY TO CITY OF MENIFEE COMMUNITY FACILITIES DISTRICT NO.2017-1 (MAINTENANCE SERVICES)("CFD NO.2017-1"OR "CFD")BY TAKING THE FOLLOWING ACTIONS: A.HOLD PUBLIC HEARING, B.ADOPT A RESOLUTION CALLING THE ELECTION, C.HOLD A SPECIAL LANDOWNER ELECTION AND CANVASS THE ELECTION, D.ADOPT A RESOLUTION DECLARING RESULTS OF SPECIAL LANDOWNER ELECTION; AND 2.UPON APPROVAL OF THE PRECEDING RESOLUTIONS,AMEND ORDINANCE NO.2017-231 AND ORDER THE LEVY AND COLLECTION OF SPECIAL TAXES IN CFD NO.2017-1;AND 3.INTRODUCE AN ORDINANCE AMENDING ORDINANCE NO.2017-231 AND LEVYING AND APPORTIONING THE SPECIAL TAX IN CFD NO.2017-1 (AS IT NOW EXISTS AND WILL EXIST IN THE FUTURE). Questions?Thank You.