Joint CFD board previews $23 million bond for Estrella Mountain Ranch; FY2026 budgets otherwise flat

A joint board for multiple community facilities districts (CFDs) opened a public hearing June 9 on fiscal year 2026 budgets and heard that, aside from a planned bond for Estrella Mountain Ranch, most district budgets will be flat year over year.

Finance staff told the board that “Estrella Mountain Ranch is probably the one that sticks out on this, and that’s because we plan on programming the issuance of a $23,000,000 bond issuance,” and that without that programmed issuance “the budget would be essentially flat year over year.” The board conducted the hearing, received no public comment, and closed the hearing; the final budget adoption and property tax levy vote will occur at subsequent statutorily required meetings.

Why it matters: CFDs use voter- or developer-backed special assessments and bond financing to pay for infrastructure and debt service within defined neighborhoods. A $23 million bond affects debt schedules and levy planning for residents and property owners in the Estrella Mountain Ranch CFD and sets the district’s debt-service obligations for upcoming years.

During the hearing, staff summarized the process: budgets are set to match next year’s debt-service schedule, incorporate changes in operation and maintenance projections, and draw on prior-year fund balances where needed. “If not for that bond issuance, the budget would be essentially flat year over year,” the finance presenter said. Staff also reported that combined property tax rates for the CFDs are “either flat or reduction from last year and that’s by design in the way that we manage the CFDs.”

Staff noted the board adopted tentative CFD budgets on May 19 and that there were no changes between the tentative and the final budgets presented at the June 9 hearing. After the hearing, staff said the districts will adjourn and reconvene in a special district meeting, as required by statute, to adopt final budgets; the board will return June 23 to adopt property tax levies.

Board business at the June 9 meeting included a routine approval of minutes before the hearing. There were no public speakers on the CFD budgets during the public comment period.

What was not decided: The board did not adopt final FY2026 budgets or levies at the June 9 meeting; staff indicated those formal actions will take place at subsequent, statutorily required meetings (including a June 23 meeting for levy adoption). The planned bond for Estrella Mountain Ranch was described as “programmed” in the budget planning; no final bond issuance approval was recorded in the June 9 proceedings.

The joint meeting covered multiple CFDs listed on the agenda, including Palm Valley, Wildflower Ranch (two separate CFDs), Cottonflower, Estrella Mountain Ranch, King Ranch, Sentara, Cortina, and several general or utilities district designations. Chair Brazil closed the CFD portion of the meeting, saying, “Seeing none, we’ll move forward. So for this business on this one, this one’s adjourned.”

Next steps: staff will bring final budget documents and the levy ordinance to the statutorily required special district meeting for adoption; the board scheduled a return on June 23 to act on property tax levies.