Funding Option for Critical Infrastructure
For
Virgina Smith T rust (VST) Development
July 20, 2026
Process
22 Formation of Community Facilities District
Resolution of Intention
Resolution of Formation
Second Reading of Ordinance
CFD Bond Sales
Resolution of Issuance as development takes
place
Formation of Joint P owers Authority (JP A)
Merced County Board of Education
City of Merced
Other?
Infrastructure Needs
3 School
City
Fund Charter School
Fund Transportation
Fees
Fund Sewer Collection
Fees
Fund Water Fees
Fund Treatment Plant
Fees
Infrastructure Broken out into T wo Tiers
4 Tier 1
Tier 2
Charter School
Transportation
Sewer Collection
Water
Treatment Plant
JP A and Debt Obligations
5 Local governments may establish a JPA to jointly
exercise common powers; JPA may exercise statutory
powers, including forming a CFD.
MCOE and other public agencies, including the City,
are authorized by the California JPA Act to establish a JPA.
CFDs can levy special taxes and issue bonds to finance improvements owned by the JPA’s members, including
MCOE and the City.
JP A examples
6 Examples of current JPAs:
Hemet USD and CFD No. 2004-1
Riverside USD and Western Municipal Water District
Temecula Valley USD and CFD No. 2000-1
William S Hart Union High School District and CFD No. 88-4 Castaic Union SD and Saugus Union SD
Rio Bravo Greeley Union SD, Norris SD, and Rosedale Union SD City of Tustin and Tustin Housing Authority
Jurupa USD and CFD No. 10
Golden Valley USD and CFD No. 2017-1
Moreno Valley USD and CFD No. 2004-5
Corona-Norco USD and CFD No. 88-1
Fullerton SD and CFD No. 2000-1
Perris Union HSD and CFD No. 91-1
Menifee USD and CFD No. 94-1
Romoland SD and CFD No. 91-1
Murrieta Valley USD and CFD No. 90-1
Redevelopment Agency of the City of San José and the City of San José Benefits of CFDs
7 Office of Ed and City
Fund much needed
facilities
Assist with development
Bridge funding gap
Specified area
Bond Financing
Surplus special taxes
DEVELOPERS
Better marketability
Lower costs to develop/
build
Taxes tied to the
property
HOMEOWNERS
Newer infrastructure
Lower purchase price
Taxes tied to the
property
Pay only when one owns
the property
5-Step CFD Formation Process
Landowner
P etition
Resolution
of
Intention
CFD
Report
Public
Hearing
&
Landowner
Election
Resolution
of Formation
/Ordinance
1 2 3 4 5
Bond
Authorization
Process
8 VST Project Information
9 Projected Development:
4,063 total units, 2,689 in Phase 1 and 1,375 in Phase 2 Square Footage Range: 750-3,250
Average Price Point: $350,000-698,750*
Special Tax Range: $585 - $2,100*
*Preliminary; subject to change.
Funded Unfunded Funded Unfunded Funded Unfunded
Tier 1 Funding $37,000,000 $37,000,000 $0 $37,000,000 $0 $37,000,000 $0 Tier 2 Funding $58,697,957 $9,514,157 $49,183,800 $29,561,571 $29,136,386 $49,577,920 $9,120,037 Total $95,697,957 $46,514,157 $49,183,800 $66,561,571 $29,136,386 $86,577,920 $9,120,037 Funding based on Project Fund
with 1.50% Effective Tax Rate
Funding based on Project Fund
with 1.60% Effective Tax Rate
Funding based on Project Fund
with 1.70% Effective Tax RateMaximum Total Funding