The Riverside Unified School District board voted unanimously Thursday to begin the multi-step process to form Community Facilities District No. 42 and to approve bond refinancing measures designed to lower interest costs for taxpayers.
Trustees approved a resolution declaring the district’s intent to form the CFD — a financing mechanism commonly used to collect developer-paid facility fees to cover school impacts from new housing. District bond counsel and financial advisers told trustees the CFD area would encompass a proposed residential development near the Interstate 91/Van Buren area and that the special tax would apply only to properties inside the CFD boundary.
Consultants said the development would include about 141 single‑family residences plus four additional units, with home sizes in the 1,300–1,600 square‑foot range. The presentation stated that affordable units in the project would receive statutory exemptions from the CFD levy when eligible under local revenue code provisions.
Separately, the board approved a bond refinancing resolution (issuance of bonds labeled as a refunding series) the district’s finance team said would achieve annual debt‑service savings; staff projected roughly $416,482 in annual savings from a refinancing transaction described in the presentation. Officials explained the district had structured previous measures conservatively and that market conditions support the planned refinancing and issuance schedule in September.
Board members pressed advisers for details on the CFD’s impact on the district’s long‑term capital plan and on how exemptions for affordable units would affect overall revenue. Trustee comments asked staff to return with additional detail on the potential fiscal impact of exempting affordable units or ADUs and to outline negotiation options with developers on tax treatment.
Motions to approve the CFD formation resolution and the bond‑refinancing measures passed on unanimous votes at the meeting. Trustees also approved establishment of a capital projects fund (Fund 49) to receive future proceeds from development‑related fees and bond activity.