MEETING DATE:
APRIL 28, 2026
SUBJECT:
Title
RESOLUTION NO. 2026-9583 - PUBLIC HEARING AND CONSIDER ADOPTION OF A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN MARCOS, CALIFORNIA, ACTING AS THE LEGISLATIVE BODY OF IMPROVEMENT AREA NO. F-59 OF COMMUNITY FACILITIES DISTRICT NO. 98-02 (LIGHTING, LANDSCAPING, OPEN SPACE, AND PRESERVE MAINTENANCE), CITY OF SAN MARCOS, COUNTY OF SAN DIEGO, STATE OF CALIFORNIA, AUTHORIZING THE ANNEXATION OF TERRITORY IN THE FUTURE TO SUCH COMMUNITY FACILITIES DISTRICT AND TAKING OTHER ACTIONS RELATED THERETO
Body
Recommendation
Recommendation
1. CONDUCT the public hearing.
2. ADOPT a resolution for Improvement Area No. F-59 of Community Facilities District No. 98-02 (Lighting, Landscaping, Open Space, and Preserve Maintenance), in the City of San Marcos, County of San Diego, State of California, Authorizing the annexation of territory in the future to such Community Facilities District and taking other actions related thereto.
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Board or Commission Action
On March 24, 2026 the City Council approved the resolution of intention to annex territory in the future to Improvement Area No. F-59 of Community Facilities District No. 98-02 (Lighting, Landscaping, Open Space, and Preserve Maintenance), City of San Marcos, County of San Diego, State of California.
Executive Summary
This item is a concurrent item for consideration to complete annex of certain territory to be known as Annexation No. 1 and to designate Improvement Area No. F-59 (“IA No. F-59”) of Community Facilities District No. 98-02 (Lighting, Landscaping, Open Space, and Preserve Maintenance), City of San Marcos, County of San Diego, State of California (the “CFD No. 98-02”). This proceeding authorizes future annexations to IA No. F-59.
On March 24, 2026 the City Council approved the resolution of intention to conduct these proceedings and scheduled the public hearing this evening to authorize future annexations to IA No. F-59.
Discussion
CFD No. 98-02 was formed pursuant to the Mello-Roos Community Facilities Act of 1982, commencing with California Government Code section 53311 et seq. (the “Act”) and the City of San Marcos Community Facilities District Procedural Ordinance enacted pursuant to the powers reserved by the City of San Marcos under Sections 3, 5 and 7 of Article XI of the Constitution of the State of California to provide funding necessary for the maintenance of the City’s lighting, landscaping, parks, medians, open space, and preserve space. Special improvement areas are formed as separate zones within CFD No. 98-02 to provide special tax funding necessary for the maintenance of development improvements and impacts above and beyond what is normally maintained by the City.
It is the intention of the City to annex additional property to IA No. F-59 in the future. This proceeding authorizes the City to complete such annexations without having to conduct the two meetings as is needed to establish a community facilities district. The single meeting proceedings may be completed, following successful completion of this future annexation authorization proceeding, with the unanimous approval of all property owners subject to the future annexation.
The map of the proposed future annexation boundaries of IA No. F-59 is attached as Attachment A.
City staff has determined that creating IA No. F-59 for new development, and potential redevelopment of certain properties, provides a benefit to the property owners by consolidating the maintenance services into a single district rather than utilizing multiple existing special districts, each of which provide only partial maintenance of the required services. IA No. F-59 also provides a benefit to the City by reducing the administrative burden of having to administer multiple districts to provide the combined services required to be maintained by the properties. Authorizing future annexations to IA No. F-59 further reduces the City’s administrative burden by authorizing single meeting proceedings for all future annexations to IA No. F-59.
The special taxes proposed for future annexations to IA No. F-59 will be levied at the rates shown in the Rate and Method of Apportionment (“RMA”) attached to this staff report (Attachment B). The taxes levied ensure sufficient funding to maintain the proposed services into perpetuity. Notwithstanding the foregoing, if the actual cost of providing the services to territory within any proposed future annexation area is higher or lower than the cost of providing such services within the existing IA No. F-59 annexations, a higher or lower special tax may be levied within such territory, to the extent the actual cost of providing the services in the annexation territory is higher or lower than the costs of providing those services in the existing IA No. F-59 annexations, subject to the unanimous approval and election of the owner or owners of such territory. In any such circumstance, the RMA may be revised to reflect the higher or lower special tax, as applicable. The maximum special tax rate in the existing CFD and IA No. F-59 may not be increased as a result of any annexation proceeding. The proposed services to be maintained by IA No. F-59 are included in Exhibit “A” of the attached resolution authorizing future annexations (Attachment C).
To complete the authorization of future annexation proceedings, the City Council must first conduct the public hearing and determine if there is a majority protest of the property owners subject to future annexation. If there is a majority protest the City Council must abandon the proceedings and cannot take any further action for a period of at least one year. If there is no majority protest the City Council may proceed to complete the proceedings. Following the public hearing the City Council may consider and approve the attached resolution authorizing future annexation.
Environmental Review
The proposed annexation is not a project subject to the California Environmental Quality Act (CEQA) as per Section 15378 of the State CEQA Guidelines, as it is an organizational activity of government and there is no potential to result in a physical change in the environment. Even if the annexation can be considered a project subject to CEQA, it is categorically exempt per State CEQA Guidelines Section 15301 (Existing Facilities), as it does not involve changes to approved development. The annexation is also categorically exempt per State CEQA Guidelines Section 15319 (Annexations), as the properties contain private structures developed to existing zoning and utilities to the sites will only have capacity to serve the existing structures. Finally, the annexation is exempt per Section 15061(b)(3) because it can be seen with certainty that there is no possibility it would have a significant effect on the environment. None of the exceptions to the categorical exemptions in State CEQA Guidelines Section 15300.2 apply to the annexation.
Fiscal Impact
The Community Facilities Districts provide ongoing funding for city services. The funds levied will fund the ongoing maintenance of various elements of city infrastructure and provide critical revenues to ensure a well-maintained city.
The maximum special tax for IA No. F-59 for Fiscal Year 2025-26 will be $651.67 per equivalent dwelling unit and $1,726.93 per acre for non-residential property. The maximum special tax is the maximum amount that can be levied in any given tax year. It is escalated every fiscal year based on the Consumer Price Index (CPI) or 2.0%, whichever is greater. Details and the breakdown of special taxes have been provided within the RMA (Attachment B).
Attachments
Attachment A: IA No. F-59 Future Annexation Boundary Map
Attachment B: Rate and Method of Apportionment
Attachment C: Resolution Authorizing Future Annexation
Prepared by: Song LeBaron, Sr. Management Analyst
Submitted by: Song LeBaron, Sr. Management Analyst
Reviewed by: Isaac Etchamendy, Director of Development Services/City Engineer
Approved by: Michelle Bender, City Manager