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Murrieta council approves formation of three CFDs to finance Discovery Village infrastructure
Summary
Landowners’ ballots carried and council approved formation and initial tax formulas for three Community Facilities Districts (public safety, maintenance, and facilities) for the Discovery Village development; council removed an affordable‑housing escalator from the initial rate method to expedite the formation. Bonds to finance streets, utilities and other public improvements were authorized for voter certification; second readings are scheduled for June.
Murrieta — The City Council on May 6 approved the formation of three community facilities districts (CFDs) tied to the Discovery Village development and introduced associated ordinances, after a multi‑hour public hearing and landowner election.
Staff and the project’s consultant described three separate, citywide, annexable CFDs: CFD 2025‑1 (public safety services), CFD 2025‑2 (maintenance services), and CFD 2025‑3 (facilities/bonded infrastructure for Discovery Village). Shane Spicer, the consultant, said the Discovery Village site is expected to include roughly 363 residential units and that the initial CFD rates for the project were modeled to align with the project build‑out.
Key rates and bond figures presented in staff materials include:
- Public safety CFD (2025‑1): proposed maximum special tax $580 per single‑family unit, $468 for multifamily and $250 for affordable housing units; an annual escalator of 4% was proposed for market units. Staff estimated the project at full build would generate about $210,540 per year for public safety services under those assumptions.
- Maintenance CFD (2025‑2): initial zone example shown at $274 per single‑family unit with an annual escalator equal to the greater of 2% or the March year‑over‑year CPI increase; taxed services include landscape maintenance, street lighting, sweeping, pavement management, parks/trails, drainage and graffiti abatement.
- Facilities CFD (2025‑3): a facilities CFD to back bonds for public improvements (streets, sidewalks, drainage, lighting, water/sewer and payments to the city and Eastern Municipal Water District). The package authorized maximum bonded indebtedness up to $27,500,000 for the tract; the consultant estimated anticipated bond issuance of about $23.1M that could generate roughly $19–20M in proceeds to fund eligible improvements.
Council members raised concerns about the affordable‑housing tax line and the effect of a zero percent escalator for those units. After discussion and consultation with bond counsel, the council voted to strike the affordable‑housing tax rate from the CFD rate method for this formation (staff said that approach lets the current Discovery Village project proceed and allows council to consider a separate affordable‑housing CFD later with a different escalator).
Landowner ballots were tabulated at the dais and the propositions passed by more than two‑thirds as required. The council adopted the formation resolutions (as amended), certified election results, and introduced the ordinances for first reading; the measures passed unanimously where recorded (5–0). If finalized after second reading, CFD bond proceeds will be used to build the public infrastructure associated with the Discovery Village project.
Developer representatives said they support the CFD approach because it aligns financing for public safety and maintenance with growth, and that removing the affordable‑housing line enables timely progress without altering the core benefits of the district.
Next steps: staff will return with final ordinance language and second readings are set for the June 3 council meeting; contract awards and bond issuance would follow required procedural steps if the council adopts the ordinances at second reading.
