Assessment & Community Facilities Districts

Alternative revenue raising techniques

Community Action for Community Development

Assessment Districts and Community Facilities Districts are to be used when you are limited in scope, jurisdiction and purposes when it comes to raising revenue for services, equipment, and capital improvement projects. With the proper legal guidance, agencies can raise funds through alternative mechanisms such as parcel taxes, assessments, benefit assessments, community facilities districts, installment sale and lease financing, etc.

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Revenue Raising Alternatives

Assessment District

Assessment districts require each parcel to pay its fair share of costs of services and improvements. Fire Districts can utilize fire suppression benefit assessments that need a majority (50+1%) vote to pass.

Community Facilities Dist.

CFDs are legal authorities with the power to levy and collect a special tax, borrow money, and use those tax revenues to finance facilities and services. CFDs require a 2/3 vote of property owners to pass.

Parcel Taxes

A parcel tax is a tax collected as part of the property tax bill. A parcel tax requires a 2/3 majority vote and there must be a clear link between the services your agency provides and the taxes voters pay.

Installment Sale/ Lease

Tax-exempt installment sale and/or lease financing is growing in popularity as an alternative financing vehicle for local governments to finance the acquisition, construction, expansion, and rehabilitation of public facilities.