Community Facilities District

The Arizona Community Facilities District Act (the "Act") became effective in 1988, allowing a Town, on petition (request) of property owners, to establish a Community Facilities District (CFD) to finance and provide public infrastructure, such as water, sewer, schools and streets, within a defined area, i.e. the "District".

A CFD is a special purpose, tax levying public improvement district of the State of Arizona which may only be located within the corporate boundaries of a municipality causing its creation. The Act allows the Town to deal with the costs of new growth through public financing mechanisms that assess only the lands and landowners that benefit from the specific improvements, infrastructure or enhanced municipal services provided by the District.

Owners of at least 25% of the land area in a proposed district petition the Town Council for formation. The Town Council performs as the Board for the District. Financing may take the form of general obligation bonds, revenue bonds or assessment bonds within the improved area, or through the levying of a maintenance and operation property tax. With the issuance of bonds, they are repaid either with ad valorem taxes levied directly on the property within the CFD (approved by vote of the property owners and collected by Yavapai County), or with assessments applied against property benefited by the improvements.

Aside from nominal costs the Town may incur based on intergovernmental agreements to administer CFDs, the Town has no liability for CFD bonds, though a default or failed project could have lasting consequences on the Town's own bonding program and standing in the debt markets.

CFD Agendas & Minutes
View CFD Agendas and Minutes

Pronghorn Ranch Community Facilities District
The Pronghorn Ranch CFD covers a residential housing development which was established in 2002 and is located north of Highway 89A. Pronghorn Ranch Community Facilities District General Obligation Bonds, Series 2013, were issued in the amount of $6.15 million, and are due in annual payments of $235,000 to $530,000 through July 15, 2029, with interest at 4.18% per annum. They are payable from revenues generated through an ad valorem tax assessed by the district against the properties located within the boundaries of the district.
StoneRidge Community Facilities District
The StoneRidge CFD covers a residential housing development which was established in 2001 and is located south of Highway 69. StoneRidge Community Facilities District General Obligation Bonds, Series 2013, were issued in the amount of $8.54 million, and are due in annual payments of $330,000 to $680,000 through January 15, 2030, with interest at 40% per annum. They are payable from revenues generated through an ad valorem tax assessed by the district against the properties located within the boundaries of the district.
Eastridge Community Facilities District
This CFD was created in 2003 and established a new business district off Highway 69. $2.5 million was obtained through Special Assessment Lien Bonds in 2003, and are due in annual payments of $125,000 to $275,000 through July 1, 2018, with interest at 6% to 7.25% per annum. they are payable from revenues generated through an assessment by the district against the properties located within the boundaries of the district.
Raven Ridge Community Facilities District
This CFD was created in 2003 and it covers Prescott Country Club Unit VI, within Town limits. It was formed to decommission the package sewer plant serving the area, construct a gravity line connection to a lift station in the Orchard Ranch area, construct (in part) the lift station and force main up to the Town's publicly-owned treatment works and pay the Town the applicable wastewater system capacity charges. A $925,446 loan was obtained through the Water Infrastructure Financing Authority (WIFA) in 2003, with an interest rate of 3.188% and a payback period of 20 years, or 2023. Property owners pay through an assessment.
Quailwood Meadows Community Facilities District
This residential housing development was established in 2004 and is located off Highway 69. Quailwood Meadows Community Facilities District General Obligation Bonds, Series 2013, were issued in the amount of $5.81 million, and are due in annual payments of $165,000 to $560,000 through July 15, 2029, with interest at 4.2125% per annum. They are payable from revenues generated through an ad valorem tax assessed by the district against the properties located within the boundaries of the district.
Parkway Community Facilities District No. 1
This CFD was established in 2006 and includes various parking, access and sidewalk improvements to certain businesses within areas both north and south of Highway 69. Parkway Community Facilities District Number 1 General Obligation Bonds, Series 2006, were issued for $3.42 million, with annual payments of $126,698 to $269,780 due through July 15, 2031, with interest at 4.85% to 5.35% per annum. They are payable from revenues generated through an ad valorem tax assessed by the district against the properties located within the boundaries of the district.
Southside Community Facilities District No. 1
In 2006 this CFD was established and encompasses several business and their infrastructure improvements off Highway 69. Southside Community Facilities District No. 1 Special Assessment Revenue Bonds, Series 2008 were issued for $3,025,000, with annual payments of $55,000 to $245,000 through July 1, 2032, and interest at 6.125% to 7.25% per annum. They are payable from revenues generated through an assessment by the district against the properties located within the boundaries of the district.