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Yuba City Community Facilities District Formation, 2017

Decision Point: The City of Yuba City was interested in creating a new Community Facilities District (CFD) to ensure that new development pays for its share of expenditures that the City must incur to provide government services.

Assignment: New Economics assisted the City of Yuba City in the creation of a new CFD to fund municipal services, working closely with the City to structure the funding mechanism in a way that would provide needed revenues but not overly burden new development. This process included the creation of a fiscal impact model, which measured the amount of revenue that new development currently generates for the City in the form of property taxes, sales taxes, and other sources—and compared these revenues to the corresponding costs to provide City services. The fiscal impact model found that residential development produces a deficit of a certain size per residential unit. Once this amount was calculated, New Economics worked closely with the City and potential developers to explain the meaning of the results and to designate specific CFD rates for various land uses. Once the rates were developed, New Economics assisted the City in preparing all of the necessary documents to formally create the district—including resolutions, voter waivers, and election ballots. 

​Outcome: The CFD was adopted by the City Council and approved by the voters in September, 2017 and began to generate revenues for the City in the same fiscal year.

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