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Tax District Voted for New Anaheim Hills Tract

Times Staff Writer

The Anaheim City Council Tuesday approved formation of a new tax district for the Summit, the third of three giant planned communities in the east Anaheim Hills.

The action, approved unanimously after a public hearing, will mean higher property taxes for future homeowners when they move in. The extra $8 million that would be raised by the Summit’s tax supplement will be used to pay back bonds over the next 25 years for road improvements, a water reservoir and a police substation.

Two other special tax districts were created last month for Sycamore Canyon and the Highlands. In all, more than 5,500 homes and condominiums are to be built in the three ranches in the next several years.

So-called Mello-Roos tax districts such as these were made possible by a state law passed in 1982 as a way to circumvent the restrictions of Proposition 13, a measure that slashed local government’s ability to raise money through property taxes.

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Summit homeowners will pay a tax rate of 1.36%, almost 50% higher than the prevailing Anaheim property tax rate of 1.05%.

The Baldwin Building Co., developers of the Summit, last month requested an extension of the council vote on the district to gain time to negotiate a better deal with the city. City officials this month agreed to add a $500,000 water reservoir to the list of items paid for with the new tax money.

A final council vote on forming the tax district is scheduled for April.


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