Community Facilities District Formation

The Mello-Roos Community Facilities Act of 1982 authorizes the creation of community facilities districts (CFD) to fund facilities and services. There are two methods for approval. The first, and most common, is if there are less than 12 registered voters, a landowner vote is held with one vote per acre owned. This is a way that new development can fund facilities improvements attributable to their new development projects. Alternatively, with 12 or more registered voters, a 2/3 vote of the electorate within the CFD is required. With a 2/3 vote of the electorate, a CFD can be used to fund additional services that are not permitted under the landowner vote. Additionally, this law allows the levy of special taxes and issuance of special tax bonds.

The Lockeford Community Services District is the exclusive water and wastewater provider in Lockeford, a rural community located south of Sacramento. Capitol PFG assisted the District with the negotiation and establishment of two community facility districts to serve two new development projects. The Community Facilities Districts will enable the District to finance the acquisition and construction of a new reclamation facility without impacting the Districts existing ratepayers.