| ITEM #: 4. DATE: 04/27/2026 AI #:3202 |
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COMMUNITY FACILITIES DISTRICT REPORT
| SUBJECT: | AUTHORIZE ACTIONS NECESSARY FOR THE ISSUANCE OF THE ESTRELLA MOUNTAIN RANCH COMMUNITY FACILITIES DISTRICT (CITY OF GOODYEAR) GENERAL OBLIGATION (GO) BONDS, SERIES 2026 |
| STAFF PRESENTER(S): | Michael Shoemaker, Interim Finance Director |
SUMMARY
Approval of resolution EMRCFD RES 2026-174 will authorize the sale, issuance, and delivery of GO bonds of the EMRCFD (City of Goodyear, Arizona), in an amount not-to-exceed $5,250,000.
RECOMMENDATION
ADOPT RESOLUTION EMRCFD RES 2026-174 AUTHORIZING THE ISSUANCE, SALE AND DELIVERY OF ITS GENERAL OBLIGATION BONDS, SERIES 2026, IN THE AGGREGATE PRINCIPAL AMOUNT NOT TO EXCEED $5,250,000; 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; DELEGATING THE AUTHORITY TO APPROVE CERTAIN MATTERS WITH RESPECT TO THE BONDS, INCLUDING APPOINTING THE TRUSTEE AS DEPOSITORY OR CUSTODIAN FOR 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. (Michael Shoemaker, Interim Finance Director)
FISCAL IMPACT
The bond proceeds will be used by the EMRCFD to acquire the public infrastructure identified in the Feasibility Report. Net proceeds will be transferred to the developer that constructed the improvements. While the not-to-exceed bond amount is $5,250,000, the expected issuance is approximately $5,000,000. Annual debt service will be paid by EMRCFD property owners through a secondary property tax levy of up to $1.00 per $100 of Net Limited Assessed Value, consistent with the current rate. Any debt service above this rate will be covered by the developer under a Standby Contribution Agreement.
BACKGROUND AND PREVIOUS ACTIONS
The EMRCFD previously issued GO Bonds in 2001, 2005, 2007, and 2023 to fund public infrastructure improvements. It is now considering acquiring additional completed infrastructure within the EMRCFD. To support this effort, the EMRCFD Board commissioned a feasibility report evaluating the project’s benefits and financial viability. The report outlines the infrastructure to be acquired, estimated acquisition and maintenance costs, the project schedule, the area benefiting from the improvements, and the proposed financing plan. The EMRCFD Board has conducted a public hearing on the feasibility report and has adopted EMRCFD RES 2026-173 approving the report.
EMRCFD RES 2026-174 provides for (i) the issuance, sale and delivery of the EMRCFD's GO Bonds, Series 2026, in the aggregate principal amount of not to exceed $5,250,000, to acquire certain public infrastructure previously constructed within the EMRCFD 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) delegating the authority to approve certain matters with respect to the bonds, including appointing the trustee as depository or custodian for the bonds: (iv) awarding the bonds to the purchaser thereof; (v) ratifying and approving the form of a preliminary official statement relating to the bonds; (vi) authorizing the preparation of a final official statement relating to the bonds; (vii) authorizing the levying of an ad valorem tax on taxable property in the district for the payment of the bonds; and (viii) ratifying all actions taken or to be taken to further this resolution.
EMRCFD RES 2026-174 provides for (i) the issuance, sale and delivery of the EMRCFD's GO Bonds, Series 2026, in the aggregate principal amount of not to exceed $5,250,000, to acquire certain public infrastructure previously constructed within the EMRCFD 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) delegating the authority to approve certain matters with respect to the bonds, including appointing the trustee as depository or custodian for the bonds: (iv) awarding the bonds to the purchaser thereof; (v) ratifying and approving the form of a preliminary official statement relating to the bonds; (vi) authorizing the preparation of a final official statement relating to the bonds; (vii) authorizing the levying of an ad valorem tax on taxable property in the district for the payment of the bonds; and (viii) ratifying all actions taken or to be taken to further this resolution.
STAFF ANALYSIS
EMRCFD staff has reviewed EMRCFD RES 2026-174, included here as Attachment A, the draft form of Indenture of Trust and Security Agreement, included here as Attachment B, the draft form of Standby Contribution Agreement, included here as Attachment C, the draft Bond Purchase Agreement, included here as Attachment D, the draft Continuing Disclosure Undertaking, included here as Attachment E, and the draft Preliminary Official Statement, included here as Attachment F, and found these documents are in compliance with state law, the existing development agreement between the City, the District and the developer and the City’s CFD guidelines and the District's general plan.
Attachments
- Attachment A - Resolution EMRCFD 2026-174
- Attachment B - Draft form of Indenture of Trust and Security Agreement
- Attachment C - Draft form of Standby Contribution Agreement
- Attachment D - Draft Bond Purchase Agreement
- Attachment E - Continuing Disclosure Undertaking
- Attachment F - Draft Preliminary Official Statement