F.A.Q


What is a Community Facility District (CFD)?

A CFD is a Special Tax District provided in State Law that funds the installation of public improvements or ongoing services within an identified area. (Each districts boundary maps are included on their district specific pages). A special tax is levied on taxable property within the district boundaries. Revenues received from the special tax are used to fund the CFD’s authorized public facilities and/or services.

When did the use of CFDs start? Why did they start?

Finding funding for local public facilities and services is very difficult. Particularly after the passage of Proposition 13 in 1978, cities were severely limited in their ability to finance such things as parks, infrastructure, and police and fire services. Senator Henry J. Mello and Assemblyman Mike Roos proposed the Mello-Roos Community Facilities Act of 1982 (California Government Code §53311), which gave California local governments access to community funding with the requirement that two-thirds of the voters or landowners in the proposed district must approve the special tax.

Is there a difference between a Mello-Roos District and a CFD?

No. A Mello-Roos District and a Community Facilities District are one in the same. The Community Facilities Act of 1982 was written by Senator Henry J. Mello (D-Watsonville) and Assemblyman Mike Roos (D-Los Angeles). In Dublin they are most commonly referred to as CFD’s.

What type of CFD’s are there in the City of Dublin?

The City of Dublin has two types of CFDs, Facility CFD's and Services CFD’s.

What is a Facilities CFD and how does a Facilities CFD special tax work?

Facilities CFDs are funded through the sale of municipal bonds to pay for costs of public infrastructure improvements (ex. Sidewalks, utility lines, and roads) within that district. Special taxes are then levied annually and placed on the property tax bill issued by the County. Revenue from those special taxes are used to pay back the principal and interest on those bonds.

What is a Services CFD and how does a Services CFD special tax work?

Services CFDs provide funding for maintenance services related to public infrastructure (ex. landscaping, maintenance of parks and street lighting). Special Taxes are levied to pay for these services, which are outlined in the CFD’s formation documents.

How long do I pay my CFD special tax?

Services CFD special taxes that fund ongoing maintenance/services will be collected as long as the maintenance and/or services are provided and therefore do not have an expiration date and can be levied in perpetuity.

Facilities CFD special taxes created to finance public facilities are required to have a specific end date.  If bonds were issued for a facilities CFD, the special taxes will typically not be levied once the principal and interest on the bonds have been paid in full.  On average CFD bonds have a maturity of between twenty-five and thirty years.

Can revenue from a CFD be used for other purposes?

No. Revenue received from special taxes for a CFD are restricted and can only be used for the purposes for which the qualified electors approved at the time of CFD formation or approval.

I did not own my property when the CFD was formed. Why do I have to pay the special tax?

The CFD is secured by a special tax lien which is recorded against the title of properties within the district. When the property was purchased, the special tax lien was assumed for the life of the CFD. Similar to the manner in which homeowners’ association (HOA) dues are the responsibility of each owner in a homeowners’ association, regardless of who owned the property when the HOA was formed.

Why do I have two CFD line items on my tax bill?

CFD’s within the City of Dublin have both a Facilities special tax and a Service special tax. Each one of these charges will appear as a separate line item on your property tax bill.

Do CFD special taxes have a maximum amount?

All CFDs have maximum special tax amounts which cannot be exceeded.  However, the amount of the special tax levied in a given year may be less than the maximum special tax rate. The amount of special taxes levied may fluctuate from year to year; however, they cannot exceed their annual maximum amount.  Due to the fact that the annual CFD special taxes levied on a particular piece of property could be below the maximum special tax rate for that property, a potential buyer or seller of property should not rely on the amount shown on the property tax bill for disclosure purposes.

 Can the CFD special tax be pre-paid?

Yes.  Please contact the City’s CFD Administrator, Goodwin Consulting Group, at 916-561-0890 for prepayment information.

What happens if I don’t pay my property tax bill on time?

CFD special taxes are subject to the same penalties and interest that apply to regular property taxes.  If there are outstanding bonds and the special taxes become delinquent, the City, on behalf of the CFD, may exercise its legal right to foreclose and sell the property after providing the required notifications to the homeowner.

I was never told I had to pay a CFD Special Tax

Your agent or broker should have disclosed this information to you at the time of purchase. It is recommended you contact your escrow or title company for additional information.