The budgets for Mesa’s three community facilities districts — $5.5 million for Cadence, $30.7 million for Eastmark No. 1 and $8.5 million for Eastmark No. 2 — have been approved for fiscal year 2021-22.
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 24. Tentative budgets for the same amounts were approved June 10.
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.
Cadence
As the Cadence Community Facilities District Board, they approved a $5,468,552 Cadence CFD fiscal year 2021-22 budget.
Revenue is from bond proceeds, property taxes, property assessments and reimbursement from developers.
The budget has $4.4 million for public infrastructure expenses, including:
$2,870,000 in general obligation bonds for street improvements or other eligible public infrastructure;
$469,000 in special assessment revenue bonds for street improvements;
$155,000 in costs of issuance for legal and financial fees for bond issuances;
$6,000 in appraisal fees for special assessment district fees for appraisal services; and
$900,000 in capital as a contingency for additional reimbursement of eligible infrastructure.
The tax levy is $624,790, made up of $45,166 for operations and maintenance expenses and $579,625 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 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 revenue bonds secured by special assessments on residential lots within designated special assessment districts.”
Expenses not funded by the operations and maintenance tax are reimbursed by the district’s master developer, PPGN Holdings LLLP — also known as Harvard — per an agreement among the city, the district and Harvard, he said.
Eastmark CFD No. 1
As the Eastmark Community Facilities District No. 1 Board they voted to approve a $30,706,374 fiscal year 2021-22 budget.
Revenue is from bond proceeds, property taxes and property assessments.
The budget has $23.5 million for public infrastructure expenses, including:
$17,200,000 in general obligation bonds, for reimbursement to developer for local street improvements;
$2,844,000 in special assessment revenue bonds, for reimbursement to developer for local street improvements;
$450,000 in costs of issuance, for legal and financial fees for bond issuances;
$6,000 in appraisal fees, for special assessment district fees for appraisal services; and
$3,000,000 in capital contingency for additional reimbursement of eligible infrastructure.
The tax levy is $4,975,481, made up of $359,673 for operations and maintenance expenses and $4,615,808 for debt service.
“Due to a voter-approved change in property tax methodology, in fiscal year 2015-16 the district increased the targeted property tax rate from $3.00 to $3.85 per $100 of assessed valuation of taxable property for the debt service portion of the property tax rate to offset the change in property valuation and to generate the same levy. The same combined tax rate of $4.15 — $3.85 for debt service and 30 cents for operations and maintenance — is targeted in fiscal year 2021-22,” Ritschel said in a separate staff report.
The district was formed April 2, 2012, by the Mesa City Council and issues general obligation bonds to finance the cost of eligible public infrastructure 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 in the district, he said.
Expenses not funded by the operations and maintenance tax are reimbursed by the district’s master developer, DMB Mesa Proving Grounds LLC per an agreement among the city, the district and DMB MPG, Ritschel said.
Eastmark CFD No. 2
As the Eastmark Community Facilities District No. 2 Board, they voted to approve a $8,496,179 fiscal year 2021-22 budget.
Revenue is from bond proceeds, property taxes, property assessments and reimbursement from developers.
The budget has $7.7 million for public infrastructure expenses, including:
$3,900,000 in general obligation bonds for reimbursement to DMB Mesa Proving Grounds for local street improvements;
$2,844,000 in special assessment district #b bonds for reimbursement to DMB Mesa Proving Grounds for local street improvements;
$250,000 costs of issuance, for legal and financial fees for bond issuances;
$6,000 appraisal fees, for special assessment district fees for appraisal services; and
$700,000 capital contingency for additional reimbursement of eligible infrastructure.
The tax levy is $385,203, made up of $27,846 for operations and maintenance and $357,357 for debt service.
The City Council formed the district on Dec. 10, 2018. The district issues general obligation bonds to finance the cost of eligible public infrastructure 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 in the district, Ritschel said in a separate staff report.
Expenses not funded by the operations and maintenance tax are reimbursed by the district’s master developer, DMB Mesa Proving Grounds LLC, per an agreement, he said.
At the June 10 meeting, the board voted to approve the permanent removal from the Eastmark CFD No. 2 Board of Directors two additional appointed district board members and their positions. Changing the board from nine members to seven was done at the request of the owners of a majority of the privately owned property. At the time of the formation of the district, the City Council appointed two additional members to the board of directors who were initially designated by the owner who owned the largest amount of privately owned acreage within the boundaries of the then-proposed district, according to a petition and resolution in the district meeting packet.
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.
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