For City Council Meeting March 10, 2026
TO: Honorable Mayor and City Council
APPROVAL: Tanya Williams, City Manager
FROM: Christina Taylor, Community Development Director
Title
Request City Council Adopt Resolution No. 8479 Declaring the Intention to Annex Territory (Haven Paseo Project) to Community Facilities District No. 2016-1 (Public Services) and Set a Public Hearing for April 14, 2026.
Body
RECOMMENDATION:
Staff recommends that the City Council:
1) Adopt the attached Resolution (Exhibit A) declaring the intention to annex territory (Haven Paseo Project) to Community Facilities District No. 2016-1 (Public Services), which includes the proposed Boundary Map, the Rate and Method of Apportionment, and;
2) Set a Public Hearing for April 14, 2026, to consider annexation of the Haven Paseo Project into Community Facilities District No. 2016-1 (Public Services).
BACKGROUND:
The Mello-Roos Community Facilities Act of 1982 (“Act”), being Chapter 2.5, Part 1, Division 2, Title 5 of the Government Code of the State of California, was created to provide an alternate method of financing for needed improvements and services. The Act allows the City Council to establish a Community Facilities District (“CFD”) for financing public improvements and services.
On September 27, 2016, the City Council approved Resolution No. 7003, a Resolution of Intention to Establish CFD 2016-1. On November 22, 2016, by Resolution No. 7031, the City Council established CFD 2016-1, a Mello Roos Community Facilities District with the intention that future residential developments within the City of Rialto (the “City”) would annex into this district when there is no CFD needed for public improvements. The City conditions new development to annex into CFD 2016-1 to fund increases in police protection services, fire protection and suppression services, ambulance and paramedic services, park maintenance, and other public services within the City of Rialto arising from the increased need for such services in the new developments.
Since the formation of CFD 2016-1, the following eight (8) residential projects have been incorporated into the CFD: Serrano Place by RC Hobbs, Adams Grove by Crestwood Communities (Annexation No. 1), Etiwanda Homes by 642 N. Linden LLC (Annexation No. 2), Bella Villagio by Mr. Shareef Awad and Santiago by RC Hobbs (Annexation No. 3), Seasons at Acacia - East by Richmond American Homes (Annexation No. 4), Seasons at Acacia - West by Richmond American Homes (Annexation No. 5), The Depot by Century Communities (Annexation No. 6), The Cedar Villas by Monte Vista Homes (Annexation No. 7), and most recently Althea Avenue Project by ADC Rialto BFR, LLC (Annexation No. 8).
ANALYSIS/DISCUSSION:
The Haven Paseo project proposed for annexation is owned by Warmington Residential and is located at the northeast corner of Foothill Boulevard and Spruce Avenue, and includes the development of 81 new residential condominium units. The annexation consists of approximately 4.99 acres and is within the boundaries of assessor parcel numbers 0128-361-20 and 0128-361-24, as depicted in the attached Annexation Boundary Map (Exhibit B).
As part of the annexation process, the City contracted with DTA Municipal Solutions for the preparation of the necessary resolutions and balloting procedures for the annexation.
The Fiscal Year 2025/2026 tax rate for multi-family dwelling within CFD 2016-1 is $268.11. Planned rate increases of the lesser of 3% or CPI occur at the start of each fiscal year (July 1st) to accommodate future increases in costs. If annexation is successful, the annual special tax of $268.11, and subsequently the planned increases, will be added to the property tax rolls for payment by each future homeowner after the homes have been occupied. Warmington Residential has agreed to this annual tax rate on its development.
Resolution of Intention to Annex
The Resolution of Intention (Exhibit A) is the first step in the process of annexing new developments into CFD 2016-1. This will be the ninth annexation into CFD 2016-1. The Resolution of Intention also sets April 14, 2026, as the Public Hearing date for final consideration of the annexation of the property into CFD 2016-1. The Notice for the proposed Public Hearing is attached as Exhibit C.
Once the annexation is complete, the owners of the homes will be required to pay the annual special tax, in perpetuity, for CFD 2016-1. The annual special tax will appear on the property tax bill in accordance with the rate set forth in the Rate and Method of Apportionment (RMA) of the Special Tax, which is an attachment to the Resolution of Intention.
Summary of Process
After adoption of the Resolution of Intention, the public hearing will occur on April 14, 2026. Prior to the public hearing, ballots will be mailed to the authorized property owners or designated property representatives of Annexation No. 9 to CFD 2016-1. At the public hearing on April 14, 2026, the City Council will open the public hearing to receive public comment related to the proposed annexation. Once the public hearing is closed, the City Council may then call for the CFD special election and immediately hold the special election. The ballots that have been received will be tabulated and recorded by the City Clerk. If the election is successful, the City Council may then adopt a Resolution Certifying the Results of the Election.
ENVIRONMENTAL IMPACT:
The proposed annexation to CFD 2016-1 is not a “Project” as defined by the California Environmental Quality Act (CEQA). Pursuant to Section 15378(a), a “Project” means the whole of an action, which has a potential for resulting in either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment. According to Section 15378(b), a Project does not include: (5) Organizational or administrative activities of governments that will not result in direct or indirect physical changes in the environment.
GENERAL PLAN CONSISTENCY:
This action is consistent with Guiding Principle 3A in the General Plan:
Our City government will lead by example, and will operate in an open, transparent, and responsive manner that meets the needs of the citizens and is a good place to do business.
LEGAL REVIEW:
The City Attorney has reviewed the staff report and approved the Resolution of Intention as to form.
FINANCIAL IMPACT:
Operating Budget Impact
The proposed CFD special tax of $268.11, and the subsequently planned rate increases set forth in the RMA, per developed multi-family dwelling will be added to the property tax rolls for payment by each future homeowner. This action will generate $21,716.91 in the first year and then annually in perpetuity with planned increases. The City will deposit the annual levies into the General Fund, and the City Council may then budget public services enhancements. The Police Department and Fire Department will receive their budgetary pro-rata shares of 39.6% and 26.4%, respectively, as funds are received. Additionally, the cost to create and process Annexation No. 9 to CFD 2016-1 is fully funded by the developer.
Capital Improvement Budget Impact
The annexation to CFD 2016-1 has no impact to the capital improvement budget.
Business Licensing
There is no business license required for this action.