City of Chino

Staff Report

Adopt Resolution No. 2019-018, declaring the City of Chino’s Intention to annex Territory to Improvement Area 5 of Community Facilities District No. 2003-3 for municipal services.


Department:Finance DepartmentSponsors:


  1. Printout
  2. Resolution of Intention to Annex Territory to CFD No. 2003-3 IA 5 (Annexation No. 4) 4823-8981-4165_3 (This file has not yet been converted to a viewable format)
  3. Chino_CFD2003-IA5_Annex4 Map

Budget String

Revenue: Expenditure: Transfer In: Transfer Out:



The City’s General Plan requires the City to ensure that new development within the City has a fiscally neutral effect on the General Fund. That principal has been applied to all new developments in The Preserve.

The City formed CFD 2003-3 in The Preserve to pay for certain public facilities and necessary ongoing municipal services authorized by the Mello-Roos Act and the formation documents with respect to CFD 2003-3.  In addition, the City formed IA 5 of CFD 2003-3 for the purposes of levying special taxes exclusively for payment of municipal services and administrative expenses for IA 5 (Note: No public facilities are authorized to be financed through IA 5 and no CFD bonds will be issued payable by IA 5 Special Taxes). The Rate and Method of Apportionment (RMA) for IA 5 includes the Special Tax rates for residential and non-residential properties. Authorized municipal services payable from IA 5 Special Taxes include maintenance of parks, parkways and open space, flood and storm protection, operation of storm drainage systems, and public safety services.



Several properties are now ready to be annexed into IA 5. These properties include the industrial property owned by Sares-Regis (SRG Commercial), and Euclid/Kimball, LP. These properties are located north of Kimball west of Flight and South of Kimball off Euclid respectively. These properties have been conditioned to annex into IA 5 and as such have submitted applications to proceed with the annexations. The annexation of these properties will provide funding for necessary municipal services provided to the properties.

The Mello-Roos Act requires the City to adopt a Resolution of Intention to consider annexation of property into the District.  The City must also set a public hearing date for no less than 30 days, and no more than 60 days after the date the Resolution of Intention is approved.   Prior to the public hearing, a public notice must be published in a local paper at least seven days prior to the public hearing.  Additionally, the full notice must be mailed to the property owners prior to the election. After the public hearing has been held, assuming the City Council determines to proceed with the annexation process, an election will be held for the property owners within the territory proposed to be annexed.  As there are fewer than 12 registered voters within the territory proposed to be annexed, the election will be a landowner election with each landowner receiving one vote for each acre or fraction thereof owned.  Such property owners will cast their ballots which will be counted by the City Clerk, and if the annexation is approved by the property owner(s), the City Council will adopt a resolution declaring the results of the special election and ordering annexation of proposed property to IA 5 of CFD 2003-3 and the recordation of a Notice of Special Tax Lien on such annexed property. From that day going forward, the annexed property will be treated the same as any other property within IA 5. 

On July 2, 2019, a public hearing will be scheduled to consider the proposed annexation and to hear any property owners or interested parties who wish to speak to the City Council on the proposed annexation. The annexation into Improvement Area 5 of CFD 2003-3 shall be subject to approval of the qualified electors within the territory proposed to be annexed into Improvement Area 5 of CFD 2003-3 at a special election.  The proposed voting procedure shall be by special mail delivered ballots to the landowners in the proposed annexed area of Improvement Area 5 of CFD 2003-3. 


Upon adoption of Resolution No. 2019-018, ballots and a waiver form will be prepared and sent to the property owners. The waiver form allows the property owners to waive the standard 90-day waiting period between the calling of the special election and the actual election, along with certain other procedures. Each property owner has agreed to sign the waiver to ensure the election occurs on an expedited basis.




Attachment:  Resolution No. 2019-018 (Exhibits A, B, and C)



Meeting History

May 22, 2019 7:00 PM Video City Council Special Meeting
draft Draft
MOVER:Mark Hargrove, Council Member
SECONDER:Tom Haughey, Mayor Pro Tem
AYES:Marc Lucio, Eunice M. Ulloa, Paul Rodriguez, Tom Haughey, Mark Hargrove