Future homeowners in three Riverside developments would pay annual special taxes to support streets, parks, police and fire services under a financing district approved by the City Council on Tuesday.
The district covers 152 planned homes at Victoria Grove, Pinnacle Pointe and The Ranch in Wards 5, 4 and 7. The decision creates a dedicated funding source for infrastructure and services associated with those developments, with the taxes applying to property within the district.
The council approved the formation and related election actions with six affirmative votes. Councilmember Steven Robillard recused himself because of his involvement as a broker on the Pinnacle Pointe project. No one spoke during the public hearing. Final adoption of the special tax ordinance is tentatively scheduled for Nov. 10.
For prospective buyers, the practical consideration is an ongoing housing expense. The staff report lists annual facilities and bond debt taxes of $3,760 to $4,530 per home at Victoria Grove, $1,285 to $1,935 at Pinnacle Pointe and $4,265 to $6,155 at The Ranch. Separate annual maintenance charges are $150, $73 and $335 per home, respectively, while public safety charges are $924, $897 and $772. Maintenance charges increase annually by 3% or the applicable Consumer Price Index change, whichever is greater; public safety charges increase by 5% or the applicable CPI change, whichever is greater.
Victoria Grove is being developed by Century Communities, Pinnacle Pointe by Far-West Industries and The Ranch by Meritage Homes. All three property owners petitioned the city to establish the district. The city clerk announced unanimous approval in the landowner election at the council meeting.
The arrangement divides the charges into three parts: public facilities and potential bond payments, ongoing maintenance, and public safety. Facilities funding can support improvements such as streets, traffic signals, water and sewer infrastructure, drainage, parks and police and fire facilities. Maintenance funding covers work such as landscaping, street lighting, storm drain upkeep, and graffiti and debris removal. Public safety funding supports police and fire protection, emergency response and related facility maintenance.
“The intent is to establish a dedicated funding source for these ongoing service obligations rather than relying solely on the city’s existing revenues,” Meline Carranza, the city’s debt and treasury manager, told the council.
Tuesday’s action also authorized up to $10 million in potential district bonds. Any bond issuance would require separate council approval, and repayment would come from the district’s facilities tax. The bonds would not constitute a legal obligation of the city’s general fund, according to the staff report.
The council also approved agreements allowing eligible Alvord Unified School District facilities to be financed in connection with Victoria Grove and The Ranch.
