The budgets of the Special Tax Districts Bond Debt Service Funds are prepared and presented to City Council annually as part of the City’s effort to provide full transparency. Special taxes placed on the County tax rolls are the basis for the district’s budgeted revenues. Budgeted expenses show the costs associated with each of the special districts. For Community Facilities Districts (CFDs), the special taxes are charged to collect sufficient funds to make the debt service for the upcoming bond year and pay administrative costs in the upcoming fiscal year. The bond year often crosses fiscal years, resulting in a positive or negative “Results of Operations” for the budget year.
Over time, these differences balance out. The positive and negative “Results of Operations” are not reflective of the district’s special taxes being over or under assessed. Staff ensures that all districts maintain sufficient reserves to make sure all payments are made on time.