Council approves 4% CPI increase to special CFD taxes for police, fire and landscaping

The Ione City Council on June 16 voted to increase special tax levies in affected community facilities districts by 4%, the amount recommended by staff tied to the December 2023 consumer price index.

City Manager George Lee told the council the CFDs for Castle Oaks and Wildflower were created to cover police, fire and landscape services tied to new development and that rates were frozen in fiscal year 2020–21, producing a cumulative revenue shortfall he quantified in staff materials. "The agreements specified that the special tax rate would increase as determined by the consumer price index," Lee said, and staff recommended the CPI adjustment so "we must keep up with at a minimum of the CPI rate."

Council members raised equity concerns. Council Member Allen said it was unfair that "only a few people are charged these fees" and suggested exploring a citywide approach that would spread the burden more broadly. Other members said many homeowners were informed of CFDs when they bought in and that deferring increases for several years left the city behind on operating costs.

Staff responded that converting to a citywide CFD requires a Nexus study and a ballot measure that would cost tens of thousands of dollars and might not win enough votes in parts of town that would bear new charges. That study and election work was cited as a primary reason the city has continued to rely on the existing per-development CFDs.

The council voted to adopt the staff-recommended 4% increase; no public speakers addressed this agenda item at the meeting. The increase is intended to cover police and fire costs and landscape maintenance in the CFD areas and not to create profit for the city, staff emphasized.

The change will be reflected in the next billing cycle for properties inside the affected CFDs; council materials list the frozen and proposed levies and the projected revenue impact.