Amador County – Amador Water Agency board of directors last week received a presentation on the formation of Community Facilities Districts for the purpose of infrastructure improvement projects.

Thursday, Blair Aas of CSI Consulting Group, gave a presentation on CFD revenue plans. He said it was not specific, but just general procedures. He said the board “needs to adopt a handful of goals and policies,” and a document that “really governs how the special tax rate is established,” apportioned and distributed.

Aas said the agency needs to be specific with what it would be funding, the amount, terms and the geographical district boundaries, which establish parcels to be in it. It is recorded with the county, and a notice of tax lien is placed on property.

He said there is a maximum special tax rate, and also an annual tax formula, which allows some flexibility on how you craft the CFD. The rate may be based on lot size, homes, building size, density, acreage, number of housing units, type of land use, and development status. Aas said it may not be based on “ad valorum” or “assessed value of the property.”

Two types of elections can form a CFD. If more than 12 registered voters are in the geographically designated area, a registered voter election is held, Aas said. If fewer than 12 registered voters are in the area, a property owner election would be held. Both would require a two-thirds majority to be enacted. Aas said landowners would get one vote per acre, or portion of acre, so an owner of 2.1 acres would get three votes.

Board President Gary Thomas asked “why are we talking about CFDs, and if it was for future development, to pay its share? AWA General Manager Gene Mancebo said the board last fall approved CSI Consulting and Bob Reed studies of Communities Facilities District funding mechanisms.

Mancebo said One CFD model would collect from future development and pay the existing debt service for the Amador Transmission Pipeline, and provide for treatment plant capacity for future customers who pay for it. He said “this becomes a mechanism for providing funds for future water for future customers.”

Mancebo said a proposed Amador Water System CFD would be voluntary, and another CFD was considered to fund the Gravity Supply Line, and would collect funds to pay for that project.

AWA Counsel Stephen Kronick said the AWS already has a participation fee of $1,900 to pay for the Amador Transmission Pipeline. He said a significant portion of the ATP debt service would be switched to the CFD. Director Robert Manassero noted in the presentation that “land does not need to be contiguous” to be members of the CFD.

Story by Jim Reece This email address is being protected from spambots. You need JavaScript enabled to view it.