Community Facilities District

The Mello-Roos Community Facilities Act of 1982, allows a City to establish a Community Facilities District (CFD) to finance a variety of services. The Reedley Community Facilities District 2005-1 was established to finance operational expenses associated with public safety (police and fire) and park maintenance to single family homes, affordable/multi-family units, commercial or non-residential properties, and vacant land. Services provided within the CFD area do not supplant General Fund activities which are established at a baseline historic spending level using 2005-06 appropriation levels.

Each year, the City Council must review the percentage change in the Consumer Price Index (CPI) for San Francisco-Oakland-San Jose area, and adopt the following year’s tax rates. Per Council direction, the proposed fees are brought forth each year in April/May for discussion. The Council considers two items annually: 1) setting the annual CFD tax amount for the upcoming fiscal year; and 2) establishment of the allocation of revenue to City Departments for the upcoming fiscal year. If a lower tax rate is considered (any amount less than the maximum allowable rate), it must be universally applied to each building type category within the CFD.

Under existing Council policy, each year as properties develop, they are annexed into the district. If additional properties develop after the annexation process, they will also be served; however the City will not collect fees until the following tax year. Currently, the amounts collected within the CFD at the maximum proposed rate do not fully cover the costs to provide services to properties within the CFD. The difference in cost each year comes from the General Fund.

The Special Tax Report establishing the CFD identified the use of CFD funds at a specific allocation amount for Police, Fire, and Parks Maintenance services. The City Council has the annual discretion to change the amount based upon budgetary needs and requirements. Each service receives its appropriate share of the adopted revenue amount each year and that balance is restricted and carried over each year if / when revenues exceed expenditures.

Below you will find information pertaining to the annual process of establishing CFD rates and setting department allocations.