Agenda Item Report
Legislative Board: City Council
Date: September 1, 2026
Contact: Micah Grau
Agenda Item ID / Number: 2025-567- / K.3
 
ITEM TITLE:

Deliberation and possible action to consider an Ordinance on first and final reading and to adopt said Ordinance amending and restating the 2026 Service Plan Update and 2026 Assessment Roll for the Persimmon Public Improvement District (City Manager Micah Grau and Finance Director Bianca Redmon) [PUBLIC TESTIMONY]

 
 
1. EXECUTIVE SUMMARY

This item is the statutorily required Annual Service and Assessment Plan Update as outlined in the January 21, 2025, Ordinance establishing the Public Improvement District. The SAP establishes the financial plan for the Public Improvement District for the year. The SAP update was created by the City's contractor P3 Works to satisfy the annual plan requirement under state law. This item was previously approved by City Council on July 21, 2026, however, since requested an updated SAP pertaining to Marathon Road improvements further described in the Analysis Section of this report. 

 
2. BACKGROUND/HISTORY

On September 17, 2024, the City Council passed and adopted Resolution No. 2024-R-43 which authorized the Persimmon Public Improvement District (PID) (the “District”) in accordance with the City Council's findings as to the advisability of the public improvement projects described in the Petition and as to the advisability of creating the District; and 

 

On January 21, 2025, the City Council approved Ordinances No. 2025-10 and No. 2025-11, and the Service and Assessment Plan (SAP) for the District, adopting an Assessment Roll.  

 

On July 21, 2026, the City Council approved the Service and Assessment Plan (SAP) for 2026. Since then, the developer has requested adoption of the 2026 Ordinance.

 

On September 1, 2026, the developer requested an Ordinance Amendment to the 2026 SAP to add the Marathon Road improvement. 

 
3. ANALYSIS
The developer has requested that the attached 2026 Amended and Restated Service and Assessment Plan for the Persimmon Public Improvement District be placed on the agenda for the City Council meeting on August 18, 2026.
 
Background: the City Council approved the 2026 Annual Service Plan Update on July 21, 2026 by Ordinance No. 2026-20. Since that approval, the Developer submitted a request to P3Works to update the Authorized Improvements. The attached document amends and restates the 2026 Service and Assessment Plan and all previously approved Annual Service Plan Updates for two purposes:
 
1. To update the description of the Marathon Road improvement within the Major Improvements in Section III. This revision is limited to the improvement language. There is no change to the Authorized Improvements budget.
 
2. To update the Major Improvement Area Assessment Roll for 2026.
 
The Major Improvement Area Assessment Roll, as revised, will be submitted to the County Tax Assessor-Collector for billing of the annual PID installment due January 31, 2027. Adoption in August allows the revised roll to reach the County by the required deadline for that billing cycle.

 

Please see the attached Service and Assessment Plan (SAP) update for more information. Two PID-backed bonds were previously issued including Improvement Area #1 and Major Improvement Area. Proceeds from the Major Improvement Area are used to finance large capital improvements that serve the entire development such as major roadways whereas Improvement Area #1 is used to pay for infrastructure in a specific development area. 

 

 
4. FINANCIAL IMPACT

The Service and Assessment Plan must cover a period of at least five years and must also define the annual indebtedness and projected costs for improvements and such Service and Assessment Plan must be reviewed and updated annually for the purpose of determining the annual budget for improvements.

 
5. STRATEGIC PLAN/GOALS
EXCEPTIONAL CITY SERVICES
 
6. STRATEGIC PLAN OBJECTIVES
Not applicable
 
7. PROS AND CONS

Not applicable

 
8. ALTERNATIVES

Not applicable

 
9. REQUESTED ACTION / SUGGESTED MOTION / RECOMMENDATION
Staff seeks Council's direction to adopt or reject the approval of the Ordinance.

 
Attachments:
 
k3 Ordinance_-_Persimmon_SAP_2026.pdf
Exhibit A - Updated Persimmon Service and Assessment Plan.pdf