REPORT TO THE CITY COUNCIL FROM: SCOTT L. MOZIER, PE, Director Public Works Department BY: JILL M. GORMLEY, TE, Assistant Director Public Works Department, Traffic & Engineering Services Division ADRIAN GONZALEZ, Supervising Engineering Technician Public Works Department, Land Planning Section SUBJECT ..Title HEARING to Adopt Resolutions and Ordinance to annex territory and levy a Special Tax regarding City of Fresno Community Facilities District No. 18, Annexation No. 007 (Final Tract Map No. 6475) (Located on the northwest corner of North Armstrong Avenue and East McKinley Avenue): (Council District 7) 1. ***RESOLUTION - to Annex Territory to Community Facilities District No. 18 and Authorizing the Levy of a Special Tax for Annexation No. 007 (Subject to Mayor's Veto) 2. ***RESOLUTION - Calling Special Mailed-Ballot Election (Subject to Mayor's Veto) 3. ***RESOLUTION - Declaring Election Results and Directing the Recording of a Special Tax Lien (Subject to Mayor's Veto) 4. ***BILL - (For introduction and adoption) - Levying a Special Tax for the Property Tax Year 2026-2027 and Future Tax Years Within and Relating to Community Facilities District No. 18, Annexation No. 007 (Subject to Mayor's Veto) ..Body RECOMMENDATION Staff recommends that council 1) Adopt a Resolution to annex territory to Community Facilities District No. 18 and authorizing the levy of a special tax for Annexation No. 007; 2) Adopt a Resolution calling Special Mailed-Ballot Election; 3) Adopt a Resolution Declaring Election Results and directing the recording of a special tax lien; and 4) Adopt an Ordinance levying a Special Tax for the Property Tax Year 2026-2027 and Future Tax Years within and relating to Community Facilities District No. 18, Annexation No. 007. EXECUTIVE SUMMARY On March 19, 2026, the Council of the City of Fresno (Council) adopted Council Resolution No. 2026-038 with the intent to annex territory to Community Facilities District (CFD) No. 18 at the request of the landowner (Millrose Properties California, LLC) of Final Tract Map No. 6475 (53 Lot Single-Family Home Subdivision). This is the noticed public hearing to consider annexing Final Tract Map No. 6475 as Annexation No. 007 to CFD No. 18 to provide funding for the Services (as hereafter defined) pertaining to police and fire safety/protection/suppression services associated within the planned developments. The annual maximum cost for these Services for the Fiscal Year 2026-2027 is $164.00 per lot. If approved, the recommended resolutions and ordinance will levy a special tax on the properties in Final Tract Map No. 6475 for identified Services (See attached Vicinity Map). BACKGROUND Subdivision: 6475 Developer: Lennar Homes Number of Lots: 53 Maximum Special Tax Per Lot: $164.00 Services: Police and fire safety/protection/suppression services Under the City of Fresno Special Tax Financing Law, Chapter 8, Division 1, Article 3, of the Fresno Municipal Code (City Law), the City Council, as the legislative body for the CFD's and any annexations thereto, has the authority to establish a CFD and annex property to a CFD. The landowner, Millrose Properties California, LLC, along with Darryl Denius, an agent representing the landowner of Final Tract Map No. 6475, has petitioned the City of Fresno to be annexed into CFD No. 18 to provide the funding for the operation and reserves for police and fire safety/protection/suppression services (Services). Pursuant to this petition, the Council adopted Council Resolution No. 2026-038, declared its intention to annex Final Tract Map No. 6475 to CFD No. 18, and set the public hearing for formal consideration (See attached Vicinity Map). Council Resolution No. 2026-038 also directed preparation of a District Report describing the Services and the costs of those services and this report is on file with the City Clerk of the City of Fresno. If adopted by the Council, the attached ordinance would levy the proposed maximum special tax of $164.00 per lot annually for Fiscal Year 2026-2027. The maximum special tax will be adjusted upward annually by 2% or by the rise of the Construction Cost Index (CCI) if it exceeds 2% for the San Francisco Region. The levy of the special tax is subject to approval by qualified electors through a special election. Two additional resolutions are attached for Council consideration pertaining to this special election. Today's public hearing has been duly noticed and the attached resolutions and ordinance have been approved as to form by the City Attorney's Office. ENVIRONMENTAL FINDINGS Pursuant to the definition in California Environmental Quality Act Guidelines Section 15378, this action is not a project. LOCAL PREFERENCE Local preference was not implemented, as this item does not include a bid or award of a construction or services contract. FISCAL IMPACT No City funds will be involved. All costs for services will be borne by the property owners within the subject tracts. Attachments: Vicinity Map District Report Director's Certificate Levine Act Disclosure Statement Form Resolution Annex-Levy Resolution Calling Election Resolution Declaring Results Ordinance