Authorized by the Mello-Roos Community Facilities Act of 1982, Community Facilities Districts (“CFDs”) are special districts established by local governments to provide an alternate method of financing public improvements and services. The CFDs seek public financing through the sale of municipal bonds to help finance streets, water and sewer systems, schools, parks and other infrastructure in addition to police and fire protection. A Special Tax assessed on each property within the CFD then pays the principal and interest of the bonds. The Special Tax is based on a formula approved and outlined in the “Rate and Method of Apportionment” at the time of the CFD formation.
EVMWD currently has seven CFD’s with outstanding bond issues.
- CFD 98-2 – Wildomar
- CFD 99-1 – La Gonda
- CFD 2002-1 – Oakmont II
- CFD 2003-1 – Watermark
- CFD 2003-2 – Greer Ranch
- CFD 2004-1 – Woodmoor
- CFD 2020-1 – Horsethief (Improvement Areas 1A, 2A, & 3A)
Three of these CFDs, specifically CFD 2002-1, 2003-1, and 2003-2 are held under the Elsinore Valley Municipal Water District Financing Authority (“EVMWDFA”). EVMWDFA was organized pursuant to a Joint Powers Agreement to help facilitate a pooled refunding of existing EVMWD CFD bonds.
The bonds are payable solely from the special taxes collected on the property tax rolls.
Approved on July 25, 2016, Assembly Bill 1666 adds a section to the California Government Code requiring local agencies to post a copy of the California Debt and Investment Advisory Commission (CDIAC) report and AB 2109 parcel tax reports on its website for any Community Facilities District (CFD) formed after January 1, 1992.