Temecula authority forms Elderberry Park community facilities district, approves special tax and financing

The Temecula Public Financing Authority voted unanimously Oct. 14 to form Community Facilities District (CFD) No. 25‑01, known as Elderberry Park, authorize levy of a special tax and take the initial steps to issue bonds to finance public improvements for a proposed 164‑home development.

The action followed a staff presentation and a public hearing with no public protests on the record. Jim Fabian, the city’s financial advisor, told the council the district covers about 22.22 net acres near Butterfield Stage Road and Temecula Parkway and will fund infrastructure including storm drain improvements and related municipal services. He said the developer expects home construction to start in the fourth quarter of 2026.

The formation package approved by the financing authority and city council included: a resolution establishing the CFD and authorizing the special tax levy; a resolution determining the necessity to incur bonded indebtedness and calling an election; certification of the property‑owner election results; first reading of an ordinance establishing the special tax; and a city council resolution approving a joint community facilities agreement with the developer. The single property owner’s ballot, opened by the city clerk during the meeting, voted in favor of the measures on all counts.

Why it matters: the CFD (commonly called Mello‑Roos financing) lets future residents of Elderberry Park pay a special tax to cover public improvements and to reimburse developer formation costs rather than the city’s general fund. That shifts the up‑front infrastructure cost and the long‑term debt service to the district’s property tax structure.

Key details from the presentation and votes - Developer/project: Woodside (164 homes on ~22.22 net acres). - Primary public improvements identified: storm drain and other infrastructure; services will include routine municipal services tied to the fiscal impact analysis done for the project. - Formation costs: developer previously agreed to deposit and reimburse formation costs (staff time and consultants). - Election: single property owner ballot returned in favor of measures. - Vote: motions to form the CFD, levy the special tax, determine necessity of bonded indebtedness, record the notice of special tax lien, conduct the first reading of the special tax ordinance, and approve the joint community facilities agreement all passed unanimously, 5–0.

Council and staff said next steps include recording the notice of special tax lien with Riverside County and a second reading of the special tax ordinance on Oct. 28; the ordinance would become effective 30 days later. Vanessa Legban, the city’s bond counsel from Stradling, was present for legal questions during the hearing.

The council’s actions do not itself issue bonds. If the authority later decides to sell CFD bonds, that will be a separate financing action and would require additional approvals and disclosures.

Speakers quoted in this report appeared in the public record of the Oct. 14 meeting and were identified as follows: Jim Fabian, financial advisor/consultant; Vanessa Legban, bond counsel, Stradling; Bridal Kalfas, mayor; Jennifer (city staff); and the city clerk, who opened the owner ballot.

Ending: City staff and the developer will carry out the remaining administrative steps described at the hearing, including recordation of the notice of special tax lien and schedule the second reading of the ordinance on Oct. 28.