NOTE: We do have those 3 agendas printed today 06.22.2020.Last months CFD Board meetings were done and over in 3 minutes!
The Cadence Community Facilities District Board met via a virtual format streamed into the lower level meeting room of the Council Chambers, 57 East 1st Street, on May 28, 2020 at 7:35 a.m. Without objection, the Cadence Community Facilities District Board meeting adjourned at 7:38 a.m.
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| Meeting Name: | Cadence Community Facilities District Board | Agenda status: | Final |
| Meeting date/time: | 6/25/2020 7:30 AM | Minutes status: | Draft |
| Meeting location: | Virtual Platform | ||
| Published agenda: |  Agenda |
1 Items from citizens present.
2 20-0626 Approval of minutes from the May 28, 2020 meeting
| File #: | 20-0626 |
| Type: | Minutes | Status: | Agenda Ready |
| In control: | Cadence Community Facilities District Board |
| On agenda: | 6/25/2020 |
| Title: | Approval of minutes from the May 28, 2020 meeting. |
| Attachments: | 1. May 28, 2020 Cadence |
20-0662 Conduct a public hearing on the proposed Eastmark Community Facilities District No. 2 Fiscal Year 2020-21 Budget and Tax Levy.
3-a
4 Take action on the following resolutions:
20-0260 Levying upon the assessed valuation of the property within the Cadence Community Facilities District subject to ad valorem taxation a certain sum upon each one hundred dollars ($100) of valuation for the fiscal year ending June 30, 2021.
4-a
20-0665 Approving the Cadence Community Facilities District Fiscal Year 2020-21 Final Budget.
4-b
| File #: | 20-0665 |
| Type: | Resolution | Status: | Agenda Ready |
| In control: | Cadence Community Facilities District Board |
| On agenda: | 6/25/2020 |
| Title: | Approving the Cadence Community Facilities District Fiscal Year 2020-21 Final Budget. |
| Attachments: | 1. Board Report, 2. Resolution-FY20-21 Budget |
INSERT
Cadence Community Facilities District Board Report
Date: June 25, 2020
To: Cadence Community Facilities District Board of Directors
Through: Michael Kennington, District Treasurer
From: Scott Butler, Deputy Budget Director
Subject: FY 2020-21 Cadence Community Facilities District Budget
Purpose This action approves the Fiscal Year (FY) 2020-21 Final Budget for the Cadence Community Facilities District (City of Mesa, Arizona) (the "District"). This action is the final step in the approval process for the District's FY 2020-21 budget. Arizona law (ARS 48-716 and ARS 48-723) requires that, before October 1 of each year, community facilities districts hold a public hearing on the budget and approve a final budget for the upcoming fiscal year.
Background
On November 12, 2015, the Mesa City Council formed the District. The District issues general obligation bonds to finance the cost of eligible public infrastructure within the geographical boundaries of the District. The principal of and interest on the District's general obligation bonds is paid for with revenue generated by the levy of an annual ad valorem tax on all taxable property within the District. The District also issues special assessment revenue bonds secured by special assessments on residential lots within designated Special Assessment Districts (“SADs”, and each a “SAD”) within the District.
Discussion
The FY 2020-21 District budget includes spending for three purposes:
(1) operations,
(2) capital, and
(3) debt service.
(1) Operations a. Expenditures
The District pays for accounting, budget, clerk, engineering, legal, and treasurer services provided from City staff time.
In addition, the District pays for publishing costs, audit work, outside legal counsel, and software license costs incurred by the District.
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b. Funding Sources
Upon initial formation of the District, property owners approved an ad valorem tax at a rate equal to $0.30 per $100 of assessed valuation for all real and personal property in the District to fund the operation and maintenance expenses of the District (the "O&M tax") per Arizona law (ARS 48-723). Operation and maintenance expenses not funded by the O&M tax are reimbursed by the District's master developer, PPGN Holdings, LLLP ("Harvard") per an agreement among the City, the District, and Harvard.
(2) Capital
a. Expenditures
The District uses bond proceeds to reimburse Harvard for the cost of eligible public infrastructure. The FY 2020-21 District budget includes an estimated general obligation bond issuance of $4.7M. Final (August) FY 2020-21 property values will be used in considering the issuance of general obligation bonds.
Proceeds from general obligation bonds would reimburse Harvard for street improvements and other eligible public infrastructure within the District. Whether or not to issue general obligation bonds is at the District Board's discretion.
SAD 1 and 2 have been formed and special assessment revenue bonds have been issued to finance local infrastructure within each SAD.
The FY 2020-21 District budget includes the issuance of special assessment revenue bonds for
SAD 3 & SAD 4.
Proceeds from the special assessment revenue bonds would reimburse Harvard for local street improvements. Formation of SAD 3 & SAD 4 and issuance of the related special assessment revenue bonds is at the discretion of the District Board.
Each bond sale includes costs of issuance such as legal counsel, financial advice, and other transaction costs that are paid from bond proceeds.
b. Funding Sources
Proceeds from general obligation bonds and special assessment revenue bonds are the source of District payments made to Harvard.
The FY 2020-21 District budget includes a contingency for budget capacity to provide flexibility in how the general obligation bonds and special assessment revenue bonds are structured and in case final property values are higher than anticipated.
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(3) Debt Service
a. Expenditures The FY 2020-21
District budget includes debt service (principal, interest, and administrative costs) for District bonds that have already been issued, as well as for bond issuances being considered for FY 2020-21.
b. Funding Sources
There are two funding sources for District bond debt service, depending on the type of bond:
(1) the District’s general obligation bonds are secured by the levy of a secondary ad valorem tax on all taxable property in the District, and the planned secondary tax rate for FY 2020-21 debt service on such general obligation bonds is $3.85 per $100 of assessed valuation of taxable property, and
(2) the District’s special assessment revenue bonds are secured by special assessments on residential lots within a designated SAD in an assessment amount not greater than $3,500 per residential lot. The amount of the special assessment that may be levied on a residential lot is limited by the value of the property in each SAD.
Payment of the special assessments can be made in annual installments over the life of the special assessment revenue bonds, which is typically 25 years. Owners of residential lots may prepay the special assessments at any time.
Property Tax
The valuation of real property in the District is determined annually by either Maricopa County or the State of Arizona.
Property is assigned a full cash value ("FCV") and a limited property value ("LPV").
The annual increase in LPV is restricted to 5%; FCV does not have an annual increase restriction. A property’s LPV cannot exceed its FCV.
The District's property tax levy is a secondary property tax, which is levied against the net assessed LPV of a property.
A combined tax rate of $4.15 per $100 of net assessed LPV ($3.85 for debt service and the $0.30 O&M tax) is targeted in FY 2020-21.
Table 1. Cadence CFD - FY 2020-21 Property Tax Rate and Levy Purpose Tax Rate (per $100 of NALPV) Tax Levy O & M $0.30 $ 35,453 Debt Service $3.85 $ 454,981 Total $4.15 $ 490,434
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Impact to Property Owners
The owner of the average (mean) value residential property in the District would pay $864 of District property taxes in FY 2020-21, in addition to $233 of City property taxes.
Additional Information
The property tax levy amount is included in the FY 2020-21 District budget to create budget capacity but does not obligate the District Board to any specific course of action with regards to the property tax rate and levy.
Alternatives The District Board may choose to postpone final approval of the District budget until as late as September 30, 2020, to make any desired adjustments.
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| Meeting Name: | Eastmark Community Facilities District No. 1 Board | Agenda status: | Final |
| Meeting date/time: | 6/25/2020 7:30 AM | Minutes status: | Draft |
| Meeting location: | Virtual Platform | ||
| Published agenda: | Agenda |
1 Items from citizens present
2 20-0627 Approval of minutes from the May 28, 2020 meeting.2
20-0663 Conduct a public hearing on the proposed Eastmark Community Facilities District No. 1 Fiscal Year 2020-21 Budget and Tax Levy.
3-a
4 Take action on the following resolutions:
20-0258 Levying upon the assessed valuation of the property within Eastmark Community Facilities District No. 1 subject to ad valorem taxation a certain sum upon each one hundred dollars ($100) of valuation for the fiscal year ending June 30, 2021.
4-a
20-0666 Approving the Eastmark Community Facilities District No. 1 Fiscal Year 2020-21 Final Budget.
4-b
5 Adjournment.
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| Meeting Name: | Eastmark Community Facilities District No. 2 Board | Agenda status: | Final |
| Meeting date/time: | 6/25/2020 7:30 AM | Minutes status: | Draft |
| Meeting location: | Virtual Platform | ||
| Published agenda: | Agenda |
1 Items from citizens present
2 20-0628 Approval of minutes from the May 28, 2020 meeting.2
20-0664 Conduct a public hearing on the proposed Eastmark Community Facilities District No. 2 Fiscal Year 2020-21 Budget and Tax Levy.
3-a
4 Take action on the following resolutions:
20-0259 Levying upon the assessed valuation of the property within Eastmark Community Facilities District No. 2 subject to ad valorem taxation a certain sum upon each one hundred dollars ($100) of valuation for the fiscal year ending June 30, 2021.
4-a
20-0667 Approving the Eastmark Community Facilities District No. 2 Fiscal Year 2020-21 Final Budget.
4-b
5 Adjournment.
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