EMWD creates CFDs for Del Oro, Citrus Pointe

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Two separate 5-0 votes at the Aug. 19 Eastern Municipal Water District board meeting approved Eastern’s participation in community facilities district arrangements.

One action approved a Joint Community Facilities Agreement with Menifee for the Del Oro planned development currently owned by Strata Holland LLC. The other Joint Community Facilities Agreement is with the Hemet Unified School District for the Citrus Pointe project currently owned by D.R. Horton Los Angeles Holding Company.

The creation of a community facilities district allows bonds for infrastructure to be repaid through assessments on property. These are sometimes known as mello-roos due to the state legislators who created the option for services on new development to be funded by an annual assessment. An assessment must be approved by a majority of property owners, although a developer who owns a project before it is subdivided can cast the sole vote in favor of a CFD. Eastern has a Comprehensive Debt Policy which stipulates a minimum of 100 lots and $1 million of debt for a CFD along with an estimated minimum value to lien ratio of 4:1 and an effective tax rate of no more than 2% of the home’s value.

The CFD may finance water and sewer facilities included in the district’s sewer capacity and connection fees which are paid to acquire capacity into the existing system. The CFD may also fund water and sewer transmission pipelines, appurtenant facilities, sewer treatment plants, disposal ponds, pumping plants, lift stations, water reservoirs, all costs of site acquisition for EMWD infrastructure, planning, design, engineering, legal services, materials testing, coordination, surveying, construction staking, construction, inspection and appurtenant work. Bond issuance and administrative costs for the CFD may also be funded through the CFD. In-tract facilities provided by the property owner are not eligible to be funded by the CFD.

The Del Oro project plans 68 single-family homes south of Holland Road, west of Palomar Road, north of Overland Court and east of Hanover Lane. Strata Holland LLC requested a Joint Community Facilities Agreement to finance the infrastructure in lieu of fees and facility improvements. Citrus Pointe is located north of Florida Avenue and east of Lake Street, and the project includes 80 single-family homes; D.R. Horton and the school district requested that Eastern participate in a Joint Community Facilities Agreement.

MWD will own and operate the water and sewer improvements financed through the CFDs. Neither Menifee nor the school district will place EMWD’s name on the property tax roll for any property tax bills within the CFD.

Joe Naiman can be reached by email at jnaiman@reedermedia.com.