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Wildomar council authorizes CFD bond issuance for Avalino and forms two new CFDs for KB Home development
Summary
Council authorized special-tax bond issuance for CFD 2023-1 (Avalino) and approved formation and landowner elections for CFD 2025-1 (Chameleia) and CFD 2025-S (services). Bond proceeds and special-tax levies will be paid by properties in each CFD, not by the city’s general fund.
The Wildomar City Council on Jan. 14 authorized a special-tax bond issuance tied to Community Facilities District (CFD) 2023-1 (Avalino), and completed public hearings and landowner elections to establish CFD 2025-1 (Chameleia) and CFD 2025-S (services) for a KB Home development.
Finance Manager Adam Jance presented the Avalino bond parameters: proposed principal of about $10.7 million with a 30-year maturity, interest at approximately 5.05%, and estimated bond proceeds of about $9.5 million after issuance costs. Jance emphasized that the bonds are secured by special taxes levied on properties within the CFD; the city’s general fund is not obligated to repay them. The council adopted the resolution authorizing bond issuance.
On parallel public hearings, staff described CFD 2025-1 (Chameleia) — a roughly 22-acre KB Home project with 163 single‑family lots — and estimated a bond capacity near $7.4 million to finance storm drains, streets, water fees and related improvements. The landowner election ballots were received and returned in the affirmative; council adopted the formation resolutions and introduced an ordinance to levy the special taxes for second reading.
Staff also presented CFD 2025-S (services) for the same KB Home tract. 2025‑S covers ongoing maintenance and public-safety-related service costs. Staff summarized Special Tax A (landscaping/maintenance — about $520 per single‑family unit in the initial levy), Special Tax B (public safety — about $668 per single‑family unit; $410 per multifamily unit), and an optional Special Tax C (contingency for drainage reserves, levied only if a property-owner association fails to perform). Landowners returned the ballots in the affirmative, and council adopted the formation resolutions and introduced the accompanying ordinance for the next meeting’s second reading.
Why it matters: CFDs are standard tools to finance infrastructure and services for new development while assigning repayment responsibility to benefited properties. The council emphasized that these are property-secured obligations that do not expose the city’s general fund to the bond debt.
What’s next: The council authorized the Avalino bond issuance resolution and introduced ordinances to levy special taxes for Chameleia and the services CFD; second readings and formal bond-closing steps will follow as required by law.
