The Tracy City Council on Nov. 4 adopted resolutions of intention to form a Mello‑Roos community facilities district (CFD) for The Avenues, the residential portion of the Ellis Specific Plan, and set a public hearing for Dec. 16 to consider formation, levying a special tax, and incurring bonded indebtedness.

Finance Director Sarah Castro described the proposed City of Tracy Community Facilities District 2025‑1 (Avenues CFD), which the developer requests to finance public infrastructure and certain public services for the development. The proposed financing structure includes a facility special tax (40‑year financing window for facilities) and a perpetually levied services special tax to pay ongoing services in the district. City staff described the CFD as primarily an acquisition financing district in which the developer constructs infrastructure and the city would reimburse costs from bond proceeds when available.

Key points staff described included: the maximum principal amount of bonds to be authorized for the district (not to exceed $60 million); the CFD permitting multiple bond issues (each bond issue with a 30‑year term); and an acquisition agreement between city and developer. The city will also enter a joint community facility agreement with Jefferson School District to fund any required school fees within the CFD. Staff emphasized that the developer will advance formation costs and the city will reimburse formation costs from future proceeds if bonds are issued.

Council voted to adopt the required resolutions of intention and to set Dec. 16, 2025 as the public hearing and election date. If voters in the affected district approve the CFD on Dec. 16, council will move forward with confirming the results and levying the special tax under the Mello‑Roos Act.

There was no immediate fiscal impact to the city from formation; staff said expenses incurred in the formation process will be reimbursed from future bond proceeds when available. Council approved the resolutions by roll call vote during the Nov. 4 meeting.