Advised by KMA, Escondido Adopts a Community Facility District (CFD)

The City of Escondido, in an ongoing effort to address projected budget shortfalls, adopted a resolution to form a Citywide Services Community Facilities District (CFD) on May 13, 2020.  The goal of the CFD is to ensure that new residential developments do not negatively impact the City's General Fund. The City continues to receive a variety of housing development proposals, ranging from large-lot single-family developments on annexations of unincorporated area to urban in-fill multi-family developments.  The City retained KMA to prepare a fiscal impact analysis which gauged the associated increases in revenues and expenditures from adding various types of new residential development.  The goal of the KMA analysis was to determine if the new development could cover the cost associated with providing public services.  City staff used the KMA fiscal impact findings to determine an appropriate CFD special tax levy to augment municipal services.  The KMA analysis was the basis for the City Council's decision to form a CFD to help offset the fiscal impacts of new development.