In 1978, Californians enacted Proposition 13, which limited the availability of local public agencies to increase property taxes based on a property's assessed value. In 1982, the Mello-Roos Community Facilities Act of 1982 (Government Code 53311-53368.3) was created to provide an alternative method of financing needed improvements and services.
A Mello-Roos Community Facilities District ("CFD") allows for the financing of public services and improvements such as streets, sewer systems, water systems, police protection, fire protection, and much more. A CFD is usually created in undeveloped areas slated for future development, or older areas to finance improvements and rehabilitation when other sources of funds are not available.
Once approved by voters within the proposed boundaries, a special tax lien is placed against each property in the CFD. Property owners then pay a Special Tax each year. If the project cost is high, municipal bonds will be sold by the CFD to provide the large amount of money initially needed to build the improvements or fund the services.
Learn more about CFDs by asking a question below in our Q&A section. Below is a map that shows the City's current CFDs.