Hanford council approves annexation, two CFDs and sends hotel-tax increase to November ballot; selection of city-manager search firm also approved

Hanford's City Council on July 1 approved a series of land-use and fiscal measures intended to fund services tied to new development, maintain existing neighborhood landscaping, and raise potential general revenue via a hotel-tax ballot measure.

The council recorded unanimous and near-unanimous votes on multiple items, including two community facilities districts (CFDs) that will impose special taxes on new subdivisions to pay for public safety and maintenance services; formal adoption of the city's 2025 Community Development Block Grant (CDBG) annual action plan; and an action to move forward with the city's annual landscape-assessment engineers report and the associated levy process. The council also selected Bob Murray & Associates to lead a nationwide city-manager recruitment and approved sending a proposed transient-occupancy tax increase to the November 4, 2025 special election.

Votes at a glance:

- Community Facilities District (CFD) 2025-1 (Public Safety services): Council adopted resolutions to form the CFD, call a special election and accept the landowner election results. Landowners within the proposed CFD returned consent forms and the ballots showed the landowner vote in favor; council adopted the resolutions and waived the first reading of the implementing ordinance. Council vote recorded: 5-0 on the resolutions and ordinance first-reading waiver. (See provenance: staff presentation and recorded landowner ballots.)

- Community Facilities District (CFD) 2025-2 (Public Maintenance services): Council adopted formation and election resolutions after receiving the landowner ballots (one landowner ballot was returned and recorded as a yes). Council recorded the results and waived the first-reading of the implementing ordinance. Vote recorded: 5-0. (Provenance: staff presentation and ballot count.)

- Annexation (Island No. 15 / Annexation No. 166): Council initiated proceedings, introduced and waived first reading of the pre-zoning ordinance and adopted a resolution initiating annexation proceedings to submit to Kings County LAFCO. Vote recorded: final action passed 4-1.

- Landscape Assessment Districts (annual engineer's report; intention to levy proposed assessments): Council accepted the 2025-26 engineers report and declared the city's intent to levy assessments as outlined in the report, setting the public hearing for July 15 for final levy. Vote recorded: 5-0. Several council members discussed district fund balances, maintenance levels and policy questions about long-term assessment escalators and capital reserves.

- 2025 CDBG Annual Action Plan (Resolution 25-34-R): Council adopted the plan and budget that detail use of the city's CDBG entitlement for the coming program year. The adopted plan lists a total entitlement and program income package and includes a $200,000 allocation to Kings Community Action Organization's Food Bank Service Center (the KCAO presentation occurred earlier in the council's study session). Vote recorded: 5-0.

- Selection of firm for city manager recruitment (Consent calendar, Item D): Council approved the recommendation of its subcommittee to select Bob Murray & Associates to conduct the city-manager recruitment and authorized staff to execute a contract. Vote recorded: 5-0.

- Transient Occupancy Tax measure (hotel tax): Council adopted a resolution to place a measure on the November 4, 2025 special-election ballot asking voters whether to increase the city's transient-occupancy tax (hotel tax) from 8% to a maximum of 12%; staff estimated the measure would raise approximately $375,000 annually if approved. Vote recorded: 5-0.

What it means: The CFDs create a mechanism for new residential subdivisions to fund a proportional share of police, fire and maintenance impacts from buildout. The annexation extends city boundaries and pre-zones land consistent with the 2035 general plan, transferring service responsibility from Kings County to the City of Hanford pending final LAFCO approvals. The CAD/engineer actions and the subsequent July 15 hearing keep the city on schedule to place assessment levies on the county tax roll for fiscal 2025-26 if the council finalizes approval.

Council members asked staff for follow-up and policy work on several items: clarifying the detailed funding assumptions behind CFD and assessment calculations, reviewing the spike/decline patterns in individual Landscape Assessment District fund balances, and returning with more information on whether the city can perform some engineer-report tasks in-house to reduce consultant costs. Staff also noted that the city will continue required public-notice and ballot procedures for CFDs and assessments.

Ending: All council votes recorded on July 1 are available in the official minutes; several items require follow-up hearings or procedural filings with Kings County LAFCO and the county assessor before taxes or service changes take effect.