Proposed "Hemet United" Annexation
“Hemet United,” a local community group, has initiated an effort to annex unincorporated territory primarily within the City of Hemet’s Sphere of Influence (SOI) into the City of Hemet. This process was not initiated by the City Council or City staff, but rather by residents of the unincorporated area. The following information is provided to assist with understanding with this proposal.
The Riverside Local Agency Formation Commission (Riverside LAFCO), "no application has been submitted to LAFCO for this proposal. Significant additional work by the proponents of an official application, including confirming or enacting pre-zoning and General Plan land use designations, undertaking CEQA review, developing a certified boundary map and legal description, and developing a fiscal impact report and plan for services would still be required before any application could be submitted to LAFCO and deemed complete."
Estimated Financial Information
Preliminary Revenue Estimates
Revenue estimates used in this analysis were developed assuming figures for July 1, 2025.
Property Tax
The basis of analysis for the City's revenue estimations was arrived at by working with the City's property tax consultants to compile a listing of potential property addresses that would be included in the petitioner's annexation area request. Property tax values as of 2024 for these properties were compiled.
Sales Tax
The basis of analysis for the City's revenue estimations was arrived at by working with the City's sales tax consultants by using a map overlay to generate revenue estimates for the petitioner's annexation area request. Since businesses are currently part of the unincorporated area, a listing of business were not itemized due to confidentiality law but overall aggregated estimates were provided.
Other Tax
The basis of analysis for the City's revenue estimations was arrived at by deploying the annual Consumer Price Index (CPI) for All Urban Consumers Area: Riverside-San Bernardino-Ontario, CA and applying the CPI rate to the base analysis provided in a prior fiscal impact report in 2015 (see David Taussig Report below). Note: US Bureau of Labor Statistics changed their regional classifications after 2017 from Los Angeles-Riverside County-Orange County to Riverside-San Bernardino-Ontario.
Additional Resources and Reports
- Preliminary Revenue Estimates (Single PDF)
- Estimated Revenue on Proposed Annexation (PDF)
- Department Allocations Based on Ongoing General Fund Expenditures FY2024-25 Budget (PDF)
- Estimated Internal Service Fund Cost for Annexation (PDF)
- Estimated Salary and Benefit Costs for Additional Personnel (PDF)
- CPI Inflator (PDF)
- Summary (PDF)
- TRA Listing (PDF)
- Combined List - All Areas (PDF)
- 2015 David Taussig Fiscal Impact Report (PDF)
- Petitioner Annexation Area Wall Map (PDF)
- Master Tax Sharing Agreement - City Resolution No. 2042 (PDF)
- Master Tax Sharing Agreement - County Resolution No. 81-281 (PDF)
- Consumer Price Index Change (PDF)
- Riverside LAFCO Policies and Procedures Manual (PDF)
- Riverside LAFCO FAQ: Hemet United Change of Organization Petition