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City Plans District To Fund Improvements
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Seeking financing for public improvements needed for future development, the City of Riverbank is planning to form a Community Facilities District (CFD) and has secured the agreement of the local development community.

But first it had to consider and adopt local goals and policies under the Mello-Roos Community Facilities Act of 1982, according to Community Development Director J. D. Hightower.

This was achieved at the Sept. 24 City Council meeting. Actual formation of the proposed CFD will be presented at a later council meeting.

CFDs can finance certain capital facilities and services especially in developing areas and areas undergoing rehabilitation.

Public improvements that may be funded by Mello-Roos CFDs are improvements with an estimated useful life of five years or longer. They can include local park and recreation areas, elementary and secondary schools sites and structures, libraries and any governmental facility that the city is authorized to fund, construct, own or operate.

Financing for CFD services, however, is limited to specified services such as police and fire protection, recreation, park maintenance, flood and storm protection and services for the operation and maintenance of storm drainage.

CFDs may finance facilities on a "pay as you go" basis through the levy of a special tax until the facilities are constructed. Alternatively, it may issue bonds, use the proceeds to fund the facilities and repay the bonds by levying a special tax. Both the special tax and issuance of bonds require approval by a 2/3 vote of the qualified voters in the CFD.