What is a “CFD” and has it really been proposed in Rancho Sahuarita?

Jan 8th, 2014 | By | Category: Lead Article, Question of the Month

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Q: What is a “CFD” and has it really been bproposed in Rancho Sahuarita?
A: A Community Facilities District is a separate government agency that can issue bonds, build improvements and impose a property tax. It is created and approved by the Town Council. The CFD proposal is for a taxing district in currently undeveloped portions of Rancho Sahuarita. The CFD would issue bonds to pay for $38 million in public improvements and roads. The bonds would be paid for through property taxes that are levied on unbuilt parts of Rancho Sahuarita. Existing homes would not be part of this additional tax. The proposed property tax rate for the CFD is $4.99 per $100 assessed valuation. This would mean the tax on a $200,000 home would be $998 more per year than a $200,000 home outside of the CFD. The CFD tax rate would not be a fixed amount and could change according to growth. The proposal says, “The Applicant believes that this tax rate will have no adverse impact on the marketing of homes within the district due to the enhanced level of public infrastructure and amenities and positive discussions with residential homebuilders who have expressed interest in acquiring land for home construction, to include Pulte, Lennar, Richmond American, LGI Homes, Maracay Homes and DR Horton”. The CFD would pay part of the maintenance of the improvements, which would be owned by the town. The proposed CFD would eventually include 3,267 homes and 1.25 million sq ft of commercial, industrial and multifamily development west of La Villita Road and reaching as far west as La Canada Drive. It would include homes south of Sahuarita Rd and east of I-19. Again, existing homes would not have a tax increase through this proposal. The town council is scheduled to vote on the CFD on March 24.

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