Community Facilities District boards set tentative CFD budgets; Festival Ranch OKs feasibility report for up to $6 million GO bonds
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Summary
The joint CFD boards approved tentative budgets for multiple community facilities districts, and the Festival Ranch CFD accepted a feasibility report and declared a preliminary intention to issue up to $6 million in general obligation bonds to reimburse developer roadway work; board actions were unanimous.
At a May 20 joint meeting of the City of Buckeye and its Community Facilities District (CFD) boards, directors approved tentative budgets for 11 CFDs and accepted a feasibility report from Festival Ranch that preliminarily authorizes issuance of general obligation bonds not to exceed $6,000,000.
"Pulte Homes and the developer is requesting that the board issue, to exceed $6,000,000 of general obligation bonds to partially reimburse for about 11,000 linear feet of roadway concrete improvements," said Larry Price, staff member who presented the feasibility report, adding the bonds were estimated to carry a 20‑year term with interest not to exceed 5 percent and that proceeds would fund a portion of roadway concrete and paving.
The Festival Ranch action (Resolution 5‑25) accepts the feasibility report and declares the district’s preliminary intention to issue bonds pursuant to Title 48, Chapter 4, Article 6, Arizona Revised Statutes. Staff noted the issuance would cause a modest increase in the combined operation, maintenance and debt‑service rate; board materials showed the districts generally aim for a target combined rate near $3.30 per $100 of assessed value and that assessed‑value swings drive rate volatility from year to year.
Laura Myers, a Pulte Homes representative, described the developer’s outreach program to homeowners: "We do neighborhood reps for our Sun City. It's 2 representatives from all the neighborhoods. It's a really great way to get the outreach out." Price and Myers said most Festival Ranch improvements are complete and have received city acceptance except for two final‑letter items.
CFD staff also reviewed tentative budgets for larger and smaller districts, explaining that annual budgets are affected primarily by debt issuance and that some small CFDs are budgeted at a bare minimum while developers cover any shortfalls if activity exceeds collections. Staff addressed large assessed‑value changes in some districts (including a sharp increase in one district tied to new bond proposals) and said the city is working with developers and underwriters to smooth peaks and valleys in CFD tax rates. A council member suggested proactively informing residents in areas that saw sharp rate swings last year about the expected changes this year.
Board votes on CFD consent items and the Festival Ranch feasibility report were unanimous. Directors also approved a resolution (6‑25) to empower finance staff to carry out bond‑sale logistics and levy procedures if the board proceeds to issue bonds.
