The budgets for Mesa’s three community facilities districts — $9 million for Cadence, $33 million for Eastmark No. 1 and $8.6 million for Eastmark No. 2 — have been approved for fiscal year 2022-23.
Secondary property tax rates of $4.15 per $100 of net assessed limited property value — $3.85 for debt service and 30 cents for operation and maintenance expenses — have also been approved for each district.
Mesa City Council, which makes up the boards for all three, approved the final budgets and property tax rates June 30, with board member Francisco Heredia absent.
No one from the public or on the CFD boards spoke for or against the budgets at the June 30 hearings.
Three districts
The city of Mesa has three CFDs, all in ZIP code 85212. The Eastmark and Cadence CFDs were formed at the request of property developers through the city of Mesa to obtain community funding for property development.
Districts pay for accounting, budget, clerk, engineering, legal and treasurer services provided from city staff time. In addition, each district pays for publishing costs, audit work, outside legal counsel and software license costs incurred by the district.
Funding is also used for building parks, roadways, sewer, water storm drain, signage, street light, landscape and related improvements. Bonds are issued and assessed to property owners within a CFD, according to the city’s website.
Deciphering the budgets
The two candidates vying for a seat on the city council to represent District 6, which includes Eastmark and Cadence, recently weighed in on what local residents should be looking for when deciphering each of the community facilities district budgets.
“We need to go to the residents and help them to understand, be very transparent, help them understand what it all means and what we’re looking at,” Darla Trendler said at the June 29 candidates forum. “I think that in Eastmark we have had a development that has promised things and we need to make sure that they are being accountable to the things that they promised to residents there. So, I would be transparent to make sure that we’re bringing everybody to the table, that they have a voice and so that they know what all these budgets look like,” she said.
The community facilities districts were started to invest in infrastructure and quality-of-life amenities so that growth would pay for itself, Scott Somers said at the June 29 candidates forum.
“If we were to have the jobs to get the houses and to get the type of development that we wanted, we needed to have a funding structure that could support it,” he said. “The roads are in exceptional shape. You have a skate park there — you don’t see that everywhere else. And it’s because of the CFD. So, as we move forward with the new approval, what do we want to look for? We want to look for value and proper spending.”
Cadence
The Cadence Community Facilities District Board approved a $9,028,368 Cadence CFD fiscal year 2022-23 budget.
Revenue is from reimbursements from the developer, property tax and property assessments.
The budget has $7.4 million for public infrastructure expenses, including:
$5.87 million from general obligation bonds for street improvements or other eligible public infrastructure;
$469,000 from special assessment bonds for street improvements or other eligible public infrastructure;
$155,000 for legal and financial fees for bond issuances;
$6,000 for appraisal fees; and
$900,000 for capital contingency for additional reimbursement of eligible infrastructure.
The tax levy is $1.2 million, made up of $87,196 for operations and maintenance expenses and $1,119,021 for debt service, Brian Ritschel, office of management and budget assistant director, said in a staff report.
Mesa City Council formed the Cadence district on Nov. 12, 2015, he said.
“The district issues general obligation bonds to finance the cost of eligible public infrastructure benefiting the land within the geographical boundaries of the district. The principal of and interest on the district’s general obligation bonds is paid for with revenue generated by the levy of an annual ad valorem tax on all taxable property within the district,” Ritschel said.
The district also issues special assessment bonds secured by special assessments on residential lots within designated special assessment districts, he said.
Eastmark CFD No. 1
As the Eastmark Community Facilities District No. 1 Board, they voted to approve a $33,256,492 fiscal year 2022-23 budget.
Revenue is from reimbursements from the developer, property tax and property assessments.
The budget has $25 million for public infrastructure expenses, including:
$16.7 million in general obligation bonds for reimbursement to developer for eligible public infrastructure;
$4.844 million in special assessment bonds for reimbursement to developer for eligible public infrastructure;
$450,000 for legal and financial fees for bond issuances;
$6,000 for special assessment district fees for appraisal services; and
$3 million for additional reimbursement of eligible infrastructure.
The tax levy is $5.9 million, made up of $432,546 for operations and maintenance expenses and $5,551,001 for debt service.
Mesa City Council formed the Eastmark No. 1 district on April 2, 2012.
“The district issues general obligation bonds in order to finance the cost of eligible public infrastructure — streets, water lines, wastewater lines, parks, etc. — benefiting the land within the geographical boundaries of the district. The principal of and interest on these general obligation bonds is paid for with revenue generated by the levy of an annual ad valorem tax on all taxable property within the district,” Ritschel said in separate memos for Eastmark CFD No. 1 and No. 2 to the council. “State law also allows for a portion of the property tax levy to support the operations and maintenance costs of the district.”
Eastmark CFD No. 2
As the Eastmark Community Facilities District No. 2 Board, they voted to approve a $8,597,232 fiscal year 2022-23 budget.
Revenue is from reimbursements from the developer, property tax and property assessments.
The budget has $7.7 million for public infrastructure expenses, including:
$3.9 million in general obligation bonds for reimbursement to DMB MPG for eligible public infrastructure;
$2,844 million in special assessment district B bonds for reimbursement to DMB MPG for eligible public infrastructure;
$250,000 for legal and financial fees for bond issuances;
$6,000 for special assessment district fees for appraisal services; and
$700,000 for capital contingency for additional reimbursement of eligible infrastructure.
The tax levy is $468,663, made up of $33,879 for operations and maintenance expenses and $434,784 for debt service.
Mesa City Council formed the Eastmark No. 2 district on Dec. 10, 2018.
Richard Dyer Managing Editor | East Valley @RHDyer
Meet Richard Richard Dyer has worked at Independent Newsmedia Inc. USA since 1987, starting his career in Apache Junction as a copy editor and being promoted over the years to work as the editor of the Mesa Independent, news services editor for the East Valley office in Apache Junction, managing editor for the East Valley office, news services editor for the East Valley office and eventually also for the newspapers at INI’s then-Chandler office, managing editor again and as a news editor covering Apache Junction/Gold Canyon and Queen Creek. He helped start the Florence Independent while the news editor covering Apache Junction and Mesa news. In January 2023, he became associate managing editor for the East Valley newspapers and in August 2023 became managing editor for the East Valley newspapers of Chandler/Tempe, Gilbert, Queen Creek, Florence, Mesa and Apache Junction/Gold Canyon, while also reporting on Mesa and Apache Junction/Gold Canyon.
Community: Since 2009, he has worked as a volunteer to design The Blue Guitar Magazine, Blue Guitar Jr. magazine and Unstrung magazine, which are projects of The Arizona Consortium for the Arts; and since 2014, has been overseeing the art submissions.
Education: University of Arizona with a master of arts in journalism and a bachelor of science in agricultural communication. Also continuing education at Mesa Community College in welding in a metal art sculpture class.
Random fact: Saw his first tornado on May 31, 2010, which was classified as an EF-2, as part of a stormchasing tour group.
Hobbies: He is an artist of welded-steel sculptures, selling his artwork at juried and non-juried art shows.
By 
Comments
No comments on this item Please log in to comment by clicking here