No, Westminster’s proposed CFD policy does not itself put a special tax on existing homes. Any future district would need its own formation and approval by two thirds of the voters or landowners inside it.
What the city is deciding
The City Council was asked to adopt goals and policies for using Community Facilities Districts. A Mello-Roos Community Facilities District, or CFD, is an area where property owners pay a yearly special tax on their property tax bills for public facilities or services. State law requires such policies before a city forms a CFD.
Where and who it affects
The policy mainly targets new commercial, industrial and residential development. The staff report names the Westminster Mall Specific Plan Area as an example. Existing neighborhoods could also petition the city to finance local facilities or services. No district boundaries or specific taxes are proposed.
What it could mean for your property
A property would pay a special tax only if it is placed in a future CFD. The policy requires the applicant to show the special tax will be fully disclosed to buyers, including a notice the buyer signs before purchase. The city’s Finance Department provides a “Notice of Special Tax” to sellers on request.
For a future bonded residential district, the maximum special tax could rise each year by no more than $2 for every $100 of the prior year’s maximum tax. Total yearly property taxes, special taxes and assessments would be capped at $1.75 for every $100 of the home’s expected value. The city’s finance chief could allow a higher limit, and the policy allows waivers of its rules, with or without a Council vote, as the finance chief decides.
A future CFD could pay for streets, drainage, water, utilities, parks or public safety. A services district could fund parks, landscaping, police, fire or library services. Applicants or petitioners would pay the city’s and consultants’ district evaluation and formation costs.
Questions to ask before you buy or build
- Is the property inside a CFD?
- What yearly special tax would appear on its property tax bill?
- Is the tax paying for bonded facilities, ongoing services or both?
What happens next
The Council was asked to adopt the policy on October 14. The records published so far do not show the vote.
Any future CFD would still need a resolution of intention, a public hearing 30 to 60 days later and an election, where the tax needs two thirds of the votes cast.