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Mello-Roos Law Allows Vote Of One To Decide On New Taxes

The structure of the administration can vary depending on the complexity of the tax and the physical size of the district. Some CFDs are only a few parcels of land, some are thousands of parcels.

Therefore some charge a flat rate, some charge flat rate + a per parcel fee.

Some admin expenses are capped (as defined in the Rate and Method)

Even within a city or school district admin fees can vary.

the admin fees are usually a very small portion of the total charge of the district.

June 21, 2013 at 8:28 a.m. ( | suggest removal )

Mello-Roos Law Allows Vote Of One To Decide On New Taxes

Most often outside consultants are used to administer the CFD's. This is a highly specialized niche industry, and the consultants specialize in this work, therefore they can achieve economies of scale to efficiently administer a CFD.

As for developing a Prepayment Amount, take a look at the Rate and Method of Apportionment of Special Tax, and you will see there are often 10-20 steps (2-3 pages) of instructions on how to process a prepayment. It's a complex calculation, that is done manually for each property, as every property could have a different prepayment amount. As for the disparity of the prepayment quote fees, you would have to refer to the consultants contract that dictates these fees.

The fees for these consultants services do vary, however most often they are contracted through a competitive bid/ Request For Proposal process where they are competing for the work and are selected on experience/capability/cost/value to the agency. There are only a handle full of these folks out there (Dolinka, Taussig, Willdan, Webb, Koppel & Gruber, and NBS and a few others) that do this kind of work.

Part of your CFD Tax pays these consultants. The Special Tax Requirement (your annual mello-roos charge) is often defined as the Principal and Interest on the Bonds, costs of administering the district (city, county, legal, and consulting fees), and the costs of improvements and services (if applicable).

Earlier, someone discussed the quality of construction. As for the quality of work of the improvements, the City must go through a formal acceptance procedure for the improvements that the developer constructs, and the are supposed to be constructed to the Citywide standards before they are accepted. Maintenance, well that's another issue. Some CFD's provide for the maintenance of improvements and some do not. Those that do not are subject to the City maintenance just like any other street in the city. You can make your own judgement regarding they city's maintenance standards.

June 20, 2013 at 8:44 a.m. ( | suggest removal )