Community Facilities District
The City of Clayton is the collecting and paying agent for the debt issued by these districts, but neither the faith and credit nor the taxing power of the City, the State of California or any political subdivision thereof is pledged for the payment of these bonds. The City has issued bonds for capital improvement projects under the conditions outlined in the Capital Financing and Debt Management section of the Budget and Fiscal Policy.
Benefit Assessment District Bonds
Issuance of Benefit Assessment District bonds is a useful tool for financing infrastructure needs such as original roads, bridges, sewer line, water, and storm drainage facilities of a specified group of beneficiary residents. A developer or residents electing to participate in a bonded Benefit Assessment District are able to finance the construction of new infrastructure through a bond issuance, with the proceeds funding the infrastructure and the repayment of the bonds occurring through annual property assessments on the individual parcels within the specified district boundaries. The annual assessment then continues until the bonds mature or are paid off.