Community Facilities District (CFD) or Mello Roos for West Roseville Specific Plan
(updated Feb 25, 2018)
To better understand this what Community Facilities District (CFD) or Mello Roos are additional information can be found at the following links.
cscda.org/Infrastructure-Finance-Programs/Community-Facility-District-(CFD)-Financing
neighborly.com/learn/what-is-a-community-facilities-district/
www.placer.ca.gov/departments/auditor/property-tax
Californiataxdata.com Mello Roos Information
Here’s the brief breakdown of the CFD’s for the West Roseville Specific Plan. Specific details provided by the City on the CFDs can be found here.
Using the original land usage plan of the West Roseville Specific Plan designating the number and types of homes to be built (total of 8,490), the City established the three (3) assessments we see on our tax bills as CFD’s—Community Facilities District (CFD) or Mello-Roos.
The actual amount of the Assessments for the West Roseville Specific Plan (WRSP) were based on lot size and definition (lot sizes and type of usage), generally referred by the following terms:
LDR = (low density residential) = 0.5 – 6.9 units per acre (mostly single family homes)
MDR = (medium density residential) = 7.0 – 12.9 units per acre (smaller townhome styles)
HDR = (high density residential) = 13.0 units per acre or more (apartments and zero-lot-line residences)
Using these terms, and the original build-out of 4,260 units for WestPark and 4,170 units for Fiddyment Farm, the assessments were broken down for the initial billing year of 2004-2005 as follows:
These values were subject to chance slightly for each area based on the actual number of units built within a specific portion of the plan. The taxes applied to that portion of the plan was redistributed based on actual homes built. An example is an LDR unit in WestPark Phase II W-10 LDR, listed at $1,300 in the table above had an extrapolated starting tax of approximately $1,357.74 based on recent tax records.
CFD No.1 – Public Facilities:
CFD 1 res. 04-439, CFD 1 Hearing Report, CFD 1 Series 2005, CFD 1 Series 2006
From the FY16-17 Annual Report, “On September 15, 2004, the City Council adopted Resolution No. 04-439 (the “Resolution of Formation”), which formed the District. The District was established and authorized to incur bonded indebtedness in an aggregate principal amount not to exceed $80,000,000 at a special election in the District held on the same day. The then landowners voted to incur the indebtedness and to approve the annual levy of Special Taxes to be collected within the District, for Westpark CFD 1 the purpose of paying for the Improvements, including repaying any indebtedness of the District, replenishing the Reserve Fund and paying the administrative expenses of the District.”
- District formation: September 15, 2004
- Bonded District
- Final Maturity on Series 2015 bonds: September 1, 2037 (i.e. the tax will expire and be removed from your bill after this date)
- No additional obligations other than the current bonds issued so this levy will end in 2036.
- Bonds issued to finance the acquisition and construction on certain public facilities
- Budget used to pay the debt service (Principal/Interest) of the bonds issued and any associated administrative costs.
- Cannot be levied over the Max Tax (annual inflator on the max tax of 2%/year). Has increased 2% every year.
- Listed as $1,757.02 for FY17-18 for a LDR (Phase 2) Land use.
- The annual tax report for WestPark CFD#1 can be found here, CFD_1 Annual Report 16-17
CFD No.2 – Public Services:
CFD 2 Res No. 04-434, CFD 2 Hearing Report 2005
From Feb 2018 City Slides, “Funds neighborhood parks, open space and corridors in WRSP”
From the FY16-17 Annual Report, “On August 4, 2004 a “Resolution of Intention to Establish” Westpark CFD 2, Public Services, was passed under resolution number 04-329. Then on September 15, 2004 Resolution number 04-434 passed approving the formation of the District. This District will be levied in perpetuity.
AUTHORIZED SERVICES
As specified in the Resolution of Intention to Form a Community Facilities District (Resolution No. 04-329), the special tax funds general services authorized under the Mello-Roos Act which include:
1) Open space improvement, operations and management, maintenance, and repair and replacement of facilities within open spaces.
2) Maintenance of on- and off-site landscape corridors and paseos, including general maintenance and water and utility costs.
3) Maintenance of medians, entries, and entry monumentation.
4) Performance of autumn leaf pick-up and street sweeping along certain roads as described in the Specific Plan.
5) Neighborhood park improvements, maintenance, and repair and replacement.
6) Storm water management.
7) Miscellaneous costs related to any of the items described above including planning, engineering, legal, and City and County administration costs.
8) The levy of special taxes to accumulate funds in a sinking fund for anticipated future repair or replacement costs of landscape corridors, irrigation facilities, medians, entries and entry monumentation, pocket parks and neighborhood parks, storm water management and other facilities maintained by the CFD.”
- District formation: September 15, 2004
- No bonds issued-goes on in perpetuity
- Budget used for any authorized services as set forth in the documents adopted by the City Council when the CFD was formed.
- Services are necessary to meet increased demands for such services placed upon local agencies as the result of development occurring within the area of the CFD
- Cannot be levied over the Max Tax (annual inflator on the max tax of 4%/year)
- Between 2004 and 2018 the average increase has been 0.08% (starting at $323 (2004), $344.48 (2017), and $326.24 (2018) for single family Westpark Home)
- The annual tax report for WestPark CFD#2 can be found here, CFD_2 Annual Report 16-17
CFD No.3 – Municipal Services:
From Feb 2018 City Slides, “Funds shortfall for all other general fund costs including Public Safety, Street Maintenance, Development Services and General Government”
FINANCED FACILITIES
As specified in Exhibit A of the Resolution of Intention to Form a Community Facilities District (Resolution No. 04-362), the special tax funds general services authorized under the Mello-Roos Act which include:
1) Police protection services
2) Fire protection and suppression services, and ambulance and paramedic services
3) Recreation program services, library services, maintenance services for elementary and secondary school sites and structures, and the operation and maintenance of museums and other cultural facilities
4) Maintenance of parks, parkways, and open spaces
5) Flood and storm protection services, including, but not limited to, the operation and maintenance of storm drainage systems, and sandstorm protection systems
6) Services with respect to removal or remedial action for the cleanup of any Hazardous
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- District formation: September 15, 2004
- No bonds issued-goes on in perpetuity
- Budget used for any authorized services as set forth in the documents adopted by the City Council when the CFD was formed.
- Cannot be levied over the Max Tax (annual inflator on the max tax of 4%/year)
- Between 2004 and 2018 the average increase has been 2.87% (starting at $293 (2004) and $423.14 (2018) for LDR Westpark Home)
- The annual tax report for CFD#3 can be found here, CFD_3 MUN Svs Annual Report 16-17
Here is the breakdown of an the FY2016/18 and FY2017/18 tax bill looked for the Phase 2 W-10 LDR home used in the example tables.
