Mello-Roos is utilized most commonly in financing facilities, but it could also be utilized in the finance of services, and could be used in financing both, of course. It is in managing and monitoring these projects that most communities hire CFD consulting experts. This article looks at what CFDs can use their Mello-Roos funds to finance.

1. Facilities

The range of public facilities that could be financed is quite broad. It can be summarized into purchase, expansion, rehabilitation, construction, improvement of real or other varying tangible properties with an anticipated useful life of five or more years which, the law authorizes the local authority to own, construct, operate, or even that which the local agency has authority to contribute revenue to.

Also, a CFD could pay off certain special tax and assessment liens as well as charges and fees on properties that are within its boundaries which themselves are used in paying for such facilities. Also, facilities for publicly-regulated, privately-owned utilities could be financed. An agreement must be entered into with the utility firm for these. Even, a CFD could, under certain circumstances, finance seismic repair and retrofit work on private property (bonds used for such purposes couldn’t be tax-exempt, generally). Financed facilities must not be located within the CFD’s boundaries.

• Construction: The facilities could be constructed by the local agency itself, using the proceeds from bonds or taxes, or even both, and any other funds that might be available. It proceeds in a similar manner to any other public works project. This is where most communities need the services of an expert CFD consulting agency.

• Acquisition: Also, the local agency could acquire facilities that are constructed by others (normally a developer). The agency does not need to require the project to be completed before it starts to acquire the enhancements. It is allowed to buy ‘discrete phases or portions’ of facilities. Unless the cost of a facility is in excess of one million dollars, the discrete phases or portions have to offer serviceable use at the time that they are bought.

2. Services

In contrast, the services that these agencies are allowed to finance are limited, and even happen to be a bit more limited for landowner vote districts. The initial group of services could be authorized by either a landowner election or a registered voter.

• Detention facility, jail, as well as juvenile hall services.

• Paramedic and ambulance services.

• Storm and flood protection services, including, but never limited to, sandstorm protection services and the operation as well as maintenance of storm drainage systems.

• Police protection services.

• Fire suppression and protection services.

• Maintenance of open space, parkways, and parks.

• Environmental remediation and cleanup services.

The second classification of services might be authorized only by registered voter election.

• Library services.

• Services for the maintenance of primary and secondary school sites as well as structures.

• Recreation program services.

• The operation and maintenance of cultural facilities and museums.

These are the foremost projects which CFDs can use their Mello-Roos funds to finance. It is the management and monitoring of such projects that makes them seek the services of the foremost CFD consultant around. If you would love to get further information, you should visit relevant resources online.