Approval of resolution EMRCFD RES 2023-161 will authorize the sale, issuance, and delivery of general obligation bonds of the Estrella Mountain Ranch Community Facilities District (City of Goodyear, Arizona), in an amount not to exceed $15,500,000.

ADOPT RESOLUTION EMRCFD RES 2023-161 AUTHORIZING THE ISSUANCE, SALE AND DELIVERY OF ITS GENERAL OBLIGATION BONDS, SERIES 2023, IN THE AGGREGATE PRINCIPAL AMOUNT NOT TO EXCEED $15,500,000; APPROVING THE FORM AND AUTHORIZING THE EXECUTION AND DELIVERY OF AN INDENTURE OF TRUST AND SECURITY AGREEMENT, A BOND PURCHASE AGREEMENT RELATING TO THE BONDS, A STANDBY CONTRIBUTION AGREEMENT, A CONTINUING DISCLOSURE UNDERTAKING, AND CERTAIN OTHER DOCUMENTS SECURING THE PAYMENT OF THE BONDS; AWARDING THE BONDS TO THE PURCHASER THEREOF; RATIFYING AND APPROVING THE FORM OF A PRELIMINARY OFFICIAL STATEMENT RELATING TO THE BONDS; AUTHORIZING THE PREPARATION OF A FINAL OFFICIAL STATEMENT RELATING TO THE BONDS; AUTHORIZING THE LEVYING OF AN AD VALOREM TAX ON TAXABLE PROPERTY IN THE DISTRICT FOR THE PAYMENT OF THE BONDS; AND RATIFYING ALL ACTIONS TAKEN OR TO BE TAKEN TO FURTHER THIS RESOLUTION. (Jared Askelson, Deputy Finance Director)

The proceeds of the bonds will be applied by the EMRCFD to the acquisition of the Public Infrastructure listed in the Feasibility Report. The proceeds of the bonds, net of costs of issuance, would be transferred to the developer responsible for the construction of the infrastructure.  While the not to exceed amount listed in the Feasibility Report is $15,500,000, the expected amount will be approximately $11,200,000.  Property owners within the District will pay the annual debt service payments for the general obligation bonds by a secondary property tax levy of not to exceed $1.00 per $100 of Net Limited Assessed Property Value on all taxable property within the boundaries of the District.  This rate is equal to the current rate.  Debt service amounts above $1.00 per $100 of Net Limited Assessed Property Value will be paid by the developer pursuant to a Standby Contribution Agreement.

The District previously issued its District General Obligation Bonds, Series 2000, Series 2005, and Series 2007, to pay a portion of the costs of public infrastructure improvements for the District. The District is now considering the acquisition of additional public infrastructure previously constructed within the District.

The Board of Directors of the District has caused the Feasibility Report to be prepared, which Feasibility Report is a study of the feasibility and benefits of the project relating to certain public infrastructure provided for in the General Plan of the District and to be financed with the proceeds of the sale of general obligation bonds of the District. The Feasibility Report includes, among other things, a description of certain public infrastructure to be acquired and all other information useful to understand the project, an estimate of the cost to acquire, operate and maintain the project, an estimated schedule for completion of the project, a map or description of the area to be benefited by the project and a plan for financing the project.

The District Board has conducted a public hearing on the Feasibility Report and has adopted EMRCFD RES 2023-160 approving the Feasibility Report.  EMRCFD RES 2023-161 provides for (i) the issuance, sale and delivery of the District’s General Obligation Bonds, Series 2023, in the aggregate principal amount of not to exceed $15,500,000, to acquire certain public infrastructure previously constructed within the District and identified in the Feasibility Report, (ii) approving the form and authorizing the execution and delivery of an indenture of trust and security agreement, a bond purchase agreement relating to the bonds, a standby contribution agreement, a continuing disclosure undertaking, and certain other documents securing the payment of the bonds; (iii) awarding the bonds to the purchaser thereof; (iv) ratifying and approving the form of a preliminary official statement relating to the bonds; (v) authorizing the preparation of a final official statement relating to the bonds; (vi) authorizing the levying of an ad valorem tax on taxable property in the district for the payment of the bonds; and (vii) ratifying all actions taken or to be taken to further this resolution.