Mello-Roos Community Facilities Districts (CFDs)

A Community Facilities District, or CFD, is a special financing district that provides a mechanism for funding specific facilities and services as granted by the Mello-Roos Community Facilities Act of 1982.

Mello-Roos Community Facilities Act

The Mello-Roos Community Facilities Act was passed by the California Legislature in response to various public funding limitations imposed by Proposition 13. (It was written by Henry Mello and Mike Roos, hence the naming.) The law is part of the California Government Code, Section 53311 and following.

The Act allows any county, city, special district, school district or joint powers authority to establish a Mello-Roos Community Facilities District (a “CFD”) which allows the entity to levy special taxes for the purpose financing of public improvements and services. The services and improvements that Mello-Roos CFDs can finance include streets, sewer systems and other basic infrastructure, police protection, fire protection, ambulance services, schools, parks, libraries, museums and other cultural facilities. By law, the CFD is also entitled to recover expenses needed to form the CFD and administer the annual special taxes and bonded debt. The taxes are secured by a continuing lien and are levied annually against property within the District. The tax rate is subject to an annual CPI increase as approved at the time of district formation.

CFD Formation Process

 A CFD can be initiated by registered voters, landowners or members of a legislative body. The process begins with the one-time adoption of local goals and policies outlining the criteria under which CFDs may be used for facilities, services or both, credit requirements related to bonds issued, and appraisal standards. Through a series of resolutions, the Rate and Method of Apportionment and Boundary Map are subsequently approved, the CFD is formed, and the election is called. With 2/3 approval of voters (if 12 or more registered voters reside within the boundaries of the proposed CFD) or landowners by acreage (if fewer than 12), the CFD is confirmed and the special tax levy is ordered.

Requirements for Developers

Most new residential development in the City of Vacaville will require inclusion (either by formation of a new district or annexation into an existing district) of the planned properties into a CFD. Developers should refer to their Development Agreement governing a specific Development for further details concerning this requirement. If a development will be included in a CFD, the above formation/annexation process will be initiated upon submission of a completed Annexation, or Formation, Application to the City’s CFD administrators at NBS. 

Current Year Annual Reports and CFD Guides are Linked Below, or Click Here to Visit the Archive of Prior Year Reports