Board approves annual CFD tax adjustment for CFD 2 amid debate over timing of a potential $65M bond

The Travis Unified board adopted a resolution setting the Community Facilities District (CFD) special tax amounts for fiscal year 2024–25, including the 2% annual adjustment for CFD 2 required by the CFD's rate-and-method-of-apportionment documents. Business services staff explained the annual administrative process: the county requires a board resolution to place the CFD levy on the tax roll and certain CFD documents include an annual adjustment clause.

"That is per the CFD documents, the forming documents," the district's business services presenter explained when asked why a 2% annual adjustment applied to CFD 2.

Several board members expressed concern about timing and fairness. Board members noted that CFD 1 and CFD 2 impose different burdens on property owners and that asking taxpayers for more in an election year — while also considering a bond measure — may be politically sensitive. One board member urged delaying action until after broader bond discussions but staff and counsel explained county timelines and the legal 'shall' language in the CFD documents that require a timely administrative action for the levy to appear on this year's tax roll.

Legal and financial consultants briefed the board in a subsequent informational presentation on a potential $65 million general obligation (GO) bond for a November ballot and reviewed polling results. Consultants said the district's polling showed a higher measured probability of success in a presidential-year election and presented initial and final ballot tests and messaging implications. The consultants also discussed longer-term options for accelerating the end of the CFDs if a bond passes and how CFD fund balances, developer fees or other one-time sources (including potential proceeds from surplus property) could be used to reduce CFD debt earlier than the natural expiration dates.

After debate, the board adopted the CFD resolution. The motion passed; during the final roll call the meeting record shows multiple ayes, one opposed and an abstention. Consultants and staff noted a path to accelerate CFD dissolution if a GO bond passes, but they said that using bond proceeds directly to pay CFD debt would reduce bond funds available for construction projects.