Financing / Bond Financing
Financing Allows The
To Build Public Improvements And
To Pass The Costs Onto The Ultimate
User Of Those Facilities
What Improvements May Be Financed
By Tax-Exempt Financing?
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.
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
Flood and storm protection services
including costs and expenses of
Local park, recreation, or parkway
Elementary and secondary school
sites and structures, Libraries.
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
Public improvement costs may be
spread over a 10 to 30 year period.
district is a financing tool
available to most existing legislative
bodies (cities, counties, special
districts), that allows that agency
to construct desired and authorized
public improvements, with the
costs and expenses being apportioned
and spread against the benefited
properties within the boundaries
of a designated area (assessment
district), with said costs and
expenses being directly proportioned
in accordance with the special
and direct benefits that each
parcel receives from the works
The assessment liens, then, are
financed through the issuance
of bonds payable over a period
of years, thus providing the advantage
to the property owners of a loan
or deferred funding for the improvements.
A governmental entity that may
be formed by an existing local
agency for the purpose of providing
certain designated additional
public services or facilities.
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
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.
All of the above are considered
either Public Financing, Bond
Financing or Infrastructure Financing
tools that the Master Plan Community
Developer can use to offset their