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Community Facility Districts tax levies will increase due to rising expenses
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The special taxes paid by homeowners in two specific newer areas of Ceres will be seeing an increase on their property tax bills.

Over two decades ago the city of Ceres established two separate Community Facility Districts so that new homebuyers would be for the impacts on service levels for police, fire, ambulance and park maintenance. The idea was that new development should pay its way and not burden the longer established residents.

The MelloRoos Community Facility Act of 1982 allows a city to levy special per parcel of land within an established district. It also allows rates to be adjusted each year based on the Consumer Price Index (CPI), not to exceed 4% in any year. The specific CPI for the 2024 calendar year was an average CPI of 2.9%, so the city is increasing District 1 by 2.9%, from $353.43 to $363.68, an increase of $10.25 per parcel.

District 1 was created in 2002.

Homeowners in District 2 pay a higher tax at $1,047.79 which will rise to $1,078.18, an increase of $30.39 per parcel.

“The residents, when they do buy these houses, understand that this does become a portion of their tax bill,” explained Beltran.

He also explained that what is collected always falls behind in expenses “every single year.” Failing to increase the levy would cause the shortfall to be made up from the General Fund which is already operating on borrowed reserves.

During the same council meeting, increases to the Landscaping & Lighting Districts were also increased.

The LLD fund budget for FY2025-26 is $637,194 comprised of $492,000 in assessments and a General Fund supplement of $145,194.

The tax levies fund the construction, operation, maintenance, and servicing of street lighting, right-of-way landscaping, median landscaping, parks, and appurtenant facilities. These costs include, personnel, electrical energy, utilities such as water and gas, materials and contracting services. The street lighting assessment has been divided into zones based on specific sub-areas that receive differing degrees of benefit. Commercial and industrial properties and multi-family residence areas are determined as benefitting specifically within the sub-areas, and are apportioned by acreage for commercial parcels, and by street frontage for industrial parcels and multi-family residences.

Several subdivisions do not have street lighting and are not assessed under the street lighting category.