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What a community facilities district (CFD) would mean for Acton-Agua Dulce schools
Summary
At a Dec. 8 Facilities & Finance meeting, the district’s municipal adviser explained CFDs — special-tax districts (Mello-Roos) that issue bonds repaid by a levy on properties inside a defined boundary — as a tool to fund school infrastructure beyond state developer fees.
At the Dec. 8 Facilities & Finance subcommittee meeting, Rachel Chenkway, senior vice president at Film and Roll Lab and Associates, described a community facilities district, or CFD, as "a financing mechanism used by all local, public agencies for providing public improvements, services without burdening your general fund." The adviser said CFDs levy a special tax only on properties within an established boundary and can issue bonds that are repaid from those taxes to provide upfront funding for school facilities.
Chenkway explained the legal basis for CFDs dates to the Mello-Roos Community Facilities Act of 1982 and that boundaries can be tailored to a particular development so only affected properties pay. She emphasized that CFDs can provide both upfront bond proceeds and ongoing "pay-as-you-go" revenues for projects while keeping CFD debt separate from other district funds.
The presentation noted that CFDs require negotiation with developers and several district approvals, including a landowner election, and that the formation process typically takes about 90–120 days. Chenkway said the district already adopted CFD goals and policies in 2020 to prepare for potential development. The adviser recommended the board consider CFDs as one of several tools to address school facility shortfalls if a major development progresses.
