Resolution EMRCFD RES 2023-160 will approve the Feasibility Report relating to the sale, issuance, and delivery of general obligation bonds of the Estrella Mountain Ranch Community Facilities District (EMRCFD), in an amount not to exceed $15,500,000.

ADOPT EMRCFD RES 2023-160 APPROVING THE FEASIBILITY REPORT RELATING TO THE ACQUISITION AND FINANCING OF CERTAIN IMPROVEMENTS BENEFITING THE DISTRICT; AND DECLARING ITS PRELIMINARY INTENTION TO ISSUE NOT TO EXCEED $15,500,000 GENERAL OBLIGATION BONDS TO FINANCE THE ACQUISITION OF CERTAIN IMPROVEMENTS AS DESCRIBED IN THE FEASIBILITY REPORT RELATING TO SUCH IMPROVEMENTS PURSUANT TO THE PROVISIONS OF TITLE 48, CHAPTER 4, ARTICLE 6, ARIZONA REVISED STATUTES, AND ALL AMENDMENTS THERETO. (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 EMRCFD RES 2023-160 provides for the approval of Feasibility Report by the District Board.

District staff has reviewed the Feasibility Report and related materials and found this resolution is in compliance with state law, the existing development agreement between the City, the District and the developer and the City's CFD guidelines.