Apache Junction council approves higher CFD tax rates and lot assessments to restore bonding capacity

Apache Junction's City Council on April 21 approved amendments to two community facilities districts (CFDs) that raise district property tax rates and increase per‑lot assessments after developers said lower home valuations have reduced bonding capacity.

Bond counsel Zach Sikis told the council the proposed first and third amendments respond to changes in county assessor practice that lowered valuations of new homes and therefore reduced the districts' ability to issue bonds. "The developer in each group has requested an increase to the CFD property tax rate ... from $3.30 to $5 and in the case of district 2 $3.85 to $5," Sikis said, adding that each district would continue to levy a 30‑cent operations and maintenance tax for a total of $5.30 in the districts.

Patrick Brown, speaking for developer Dr. Horton, said the higher assessments and rates are intended to preserve the districts' ability to finance infrastructure but that issuance remains constrained by valuation ratios required for bond tests. "To issue up to those dollar amounts you have to have either a 4:1 or a 6 to 1 valuation on the property to meet those as well," Brown said, noting the developers plan to phase assessment increases and avoid pricing homes out of the market.

Council debate focused on how large the assessment jump should be. Council member Johnson said the proposed increase in per‑lot assessments was "too high" and cast the lone no vote on the first amendment. The council approved resolution 26‑11 (Superstition Business CFD #1) by a 5–1 vote. A companion measure affecting Superstition Vista CFD #2 passed later in the meeting by a 5–1 vote with one abstention recorded.

No citywide property tax was raised; the changes apply only within the specific CFDs and are intended to restore bonding capacity so infrastructure financing can proceed. Council and staff said developers will return to CFD boards for any future special‑assessment issuances and the city will continue to monitor valuations and sales impacts.

The council also approved several clerical corrections to consent‑agenda resolutions earlier in the meeting so the amended documents reflect the corrected language presented by Public Works Director Mike Loggins.

The measures take effect following the formal recordation of the amended agreements and any administrative steps required by state statute.