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ITEM #: 3.
DATE: 10/06/2025
AI #:2790

COMMUNITY FACILITIES DISTRICT REPORT

SUBJECT:

RESOLUTION APPROVING MONTECITO #4 ASSESSMENT DISTRICT FEASIBILITY REPORT

STAFF PRESENTER(S):

Jared Askelson, Finance Director

SUMMARY

Montecito #4 Assessment District Feasibility Report approval.

Recommendation

ADOPT RESOLUTION EMRCFD RES 2025-168 APPROVING THE FEASIBILITY REPORT RELATING TO THE ACQUISITION AND FINANCING OF CERTAIN IMPROVEMENTS BENEFITTING THE DISTRICT; DECLARING ITS INTENTION TO ACQUIRE CERTAIN IMPROVEMENTS DESCRIBED IN THE FEASIBILITY REPORT; FORMING MONTECITO ASSESSMENT DISTRICT NO. 4; DETERMINING THAT SPECIAL ASSESSMENT REVENUE BONDS WILL BE ISSUED TO FINANCE THE COSTS AND EXPENSES THEREOF AND DECLARING THE IMPROVEMENTS TO BE OF MORE THAN LOCAL OR ORDINARY PUBLIC BENEFIT AND THAT THE COSTS OF SAID IMPROVEMENTS WILL BE ASSESSED UPON THE ASSESSMENT DISTRICT; PROVIDING THAT THE PROPOSED IMPROVEMENTS WILL BE PERFORMED AND DISTRICT SPECIAL ASSESSMENT REVENUE BONDS ISSUED UNDER THE PROVISIONS OF TITLE 48, CHAPTER 4, ARTICLE 6, ARIZONA REVISED STATUTES, AND ALL AMENDMENTS THERETO; AND RATIFYING ALL PRIOR ACTS INCLUDING THE EXECUTION AND DELIVERY OF A WAIVER AND DEVELOPMENT AGREEMENT. (Jared Askelson, Finance Director)

FISCAL IMPACT

The Feasibility Report outlines the issuance of revenue bonds in the principal amount of $10,668,000 associated with this special assessment. These bonds will acquire the infrastructure, pay appropriate capitalized interest, establish a reserve fund, and pay for the costs of issuance of the bonds. Property owners within the Assessment District will pay the annual debt service payments for the special assessment revenue bonds. The intention is to have the annual debt service payment collected by the Maricopa County Treasurer by adding the amount due from each property owner to their annual property tax bill. The 508 single family detached lots are requested to be assessed approximately $21,000.

BACKGROUND AND PREVIOUS ACTIONS

Estrella North, LLC (“Developer”), the majority landowner of the property, submitted a request to form the Montecito Assessment District No. 4. The proposed district will create 508 individual assessments of approximately $21,000 to acquire Calistoga Drive 3-1, Calistoga Drive Phase 4, and West Mountain Vista Drive Phase 2. Following this request, the District initiated the preparation of the Feasibility Report related to the Assessment District. The report includes a description of the infrastructure, an estimate of the costs to acquire the infrastructure, an estimated schedule to complete the infrastructure, a map of the area, and a plan for financing. In accordance with state statutes, the District Clerk has published a notice of Public Hearing on the Feasibility Report.

STAFF ANALYSIS

This Resolution of intention, included as Attachment A, is required by statute as the first District Board action in the formation of the Assessment District. This resolution also approves the Feasibility Report, included as Attachment B, and declares the District’s intention to issue the special assessment revenue bonds. District staff has reviewed the Feasibility Report, the Waiver and Development Agreement included as Attachment C, and the Assessment Methodology included as Attachment D, 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 Community Facilities District Guidelines.

Attachments

Attachment A - EMRCFD RES 2025-168

Attachment B - Feasibility Report

Attachment C - Waiver and Development Agreement

Attachment D - Assessment Methodology