Special
Taxes Raises Money For Infrastructure
Financing
A governmental
entity that may be formed by an
existing local agency use of Public
Financing for the purpose of providing
certain designated additional
public
services or facilities. The
CFD has the power to finance a
broad range of public capital
facilities by levying special
taxes secured by the area where
said services or facilities are
being provided. Bonds may be issued
for assisting in the financing
of the public capital facilities.
The special tax,
prior to being levied, must be
approved by favorable two-thirds
vote of the qualified electorate
in the CFD. The CFD may include
areas that are non-contiguous.
"Local Agency" is any
city, county, special district,
school district, or joint powers
district. Authorized Facilities
and Services. Services.
Four categories of additional
services may be provided through
the Public Financing of
a CFD Special District.
Police Services and Fire protection
suppression, ambulance and paramedic
services.
Library
Recreation program services including
cost of maintenance
Flood amd storm protection services
The services that can be provided
through a CFD must be new or in
addition to those provided in
the district before the district
was created.
A CFD may not be used to replace
existing services. Public Facilities.
Any real or other tangible property
with an estimated useful life
of at least five years may be
purchased, constructed, expanded,
or rehabilitated through the use
of a CFD.
Certain types of facilities are
set forth in the Act,
but are examples only and not
a limit on the type of facilities
for which a CFD may be used.
Public Financing Overview
What Improvements May Be Financed
By Tax-Exempt Financing?
California assessment law and
community facilities district
law authorizes financing of the
following:
Streets and Curbs
Water supply and distribution.
Gas, electric and telephone.
Sewers and drainage.
Parking.
Other public improvements that
afford a direct benefit to the
public.
Police, Fire Protection and other
services with a useful life of
over five years. Library and recreation
program services including cost
of maintenance and operation.
Flood and storm protection services
including costs and expenses of
operation Local park, recreation,
or parkway facilities.
Elementary and secondary school
sites and structures,
Natural gas, telephone, or electrical
facilities for new areas,
What Interest Rates And Terms
May Be Available If Tax-Exempt
Financing is Used?
Interest rates are generally
2% to 3% less than conventional
borrowing rates.
Public improvement costs may
be spread over a 10 to 30 year
period.
Community Facility Districts:
A governmental entity that may
be formed by an existing local
agency for the purpose of providing
certain designated additional
public services or facilities.
The CFD has the power to finance
a broad range of public capital
facilities by levying special
taxes secured by the area where
said services or facilities are
being provided. Bonds may be issued
for assisting in the financing
of the public capital facilities.
The special tax, prior to being
levied, must be approved by favorable
two-thirds vote of the qualified
electorate in the CFD. The Community
Facilities District or CFD may
include areas that are non-contiguous.
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