Manteca council forms CFD 2025‑1 for Delicato infrastructure, authorizes up to $7 million in bonds

Manteca — The Manteca City Council voted unanimously on Sept. 2, 2025, to form Community Facilities District (CFD) 2025‑1 (Delicato Facilities and Services), to authorize the levy of special taxes within that district, to deem it necessary to incur bonded indebtedness not to exceed $7,000,000, to call and hold a special landowner election, to declare the election results and to waive the first reading by title to introduce an ordinance levying special taxes.

Interim Finance Director Matt Boring told the council the actions continue work the body approved at a July 30 meeting and stressed that any debt issued for the CFD “is not a general obligation of the city.” Boring said the total bonded amount under consideration would be $7,000,000 and that the CFD structure repays bonds from property owners inside the district rather than from the city’s general fund.

A resident who identified themselves in public comment raised concerns that the CFD’s title and materials did not specify which public facilities would be funded and urged the council to delay CFD approval until facilities were built. The resident said the housing phase for the project could include about 170–180 homes and asked that facilities be listed in the tentative plan and funded proportionately across units.

City staff responded that the public facilities funded by the CFD are specified in Exhibit A to the first resolution and consist primarily of infrastructure: roadway and transportation improvements, water and irrigation works, recycled water system components, drainage and wastewater improvements, and related streets and underground utilities. A staff member told the council that building those facilities “before you get these funds” is not possible under the CFD financing approach.

The steps the council approved included: - Formation of City of Manteca Community Facilities District Number 2025‑1 (Delicato Facilities and Services) and adoption of a resolution to authorize levy of special taxes; - Adoption of a resolution deeming it necessary to incur bonded indebtedness in an amount not to exceed $7,000,000; - Adoption of a resolution calling a special landowner election; - Opening and tabulation of sealed landowner ballots (the city clerk reported one ballot with two yes votes, and a second ballot with 21 yes votes; no no votes were recorded); - Adoption of a resolution declaring the election results; and - Waiver of the first reading by title and introduction of an ordinance levying special taxes in CFD 2025‑1.

Vice Mayor Halford moved the formation resolution and Council Member Morwitt seconded; similar motions for the successive resolutions and ordinance carried on 5‑0 votes. The city clerk announced the sealed‑ballot results during the meeting: the first ballot yielded two yes votes and zero no votes; the second ballot recorded 21 yes votes and zero no votes. Staff emphasized that the CFD’s bonded debt would be repaid by property owners in the district and would not become a citywide general obligation.

A council member asked whether facilities could be built before funds were collected; staff replied that the CFD is intended to fund infrastructure (streets and underground facilities among other systems) required to serve the housing, and that the financing mechanism makes prebuilding with CFD funds impractical. The council approved the ordinance introduction and waived first reading; the ordinance will return for subsequent readings and final adoption consistent with municipal procedures.

The CFD actions advance infrastructure financing for the Delicato project. Developers and potential buyers in the district will see the special tax levy and any bonded indebtedness reflected in property financing tied to the CFD.