Title
Cave Creek Road Improvements Recommendation
Description
Request to allocate Tatum Ranch Community Facilities District funds that were conveyed to the General Fund to:
-Improve Cave Creek Road from Tatum Boulevard southwest toward Loop 101; and
-Set aside in reserve for budget deficit reductions in 2018-19.
Report
Summary
The Tatum Ranch Community Facilities District (the "District") was established for the purpose of financing public infrastructure including Desert Willow Parkway, Dixileta Drive, and related projects for water, sewer, drainage and landscaping.
Bonds were issued in April 1998 and fully matured on July 1, 2016. Beginning in fiscal year 2016-17, the annual levy of ad valorem taxes for debt service payments were discontinued and there are no other unpaid obligations.
In accordance with State Statutes, the District was dissolved by the District board (which is the City Council) through a resolution on May 10, 2017. As part of the authorization to dissolve the District, all real and personal property was conveyed to the City, including approximately $1.5 million in case reserves held by the District.
To be consistent with the original plan to fund infrastructure within the Tatum Ranch community, staff proposes to use $1,000,000 to improve the surface condition of Cave Creek Road from Tatum Boulevard southwest toward the Loop 101. The project will provide an important capital improvement for area residents.
The remaining funds of approximately $500,000 is recommended to be set aside in a reserve to reduce potential budget deficits in future years.
Concurrence/Previous Council Action
In accordance with State Statutes, the District was dissolved by the District board through a resolution on May 10, 2017. As part of the authorization to dissolve the District, all real and personal property was conveyed to the City.
Location
Cave Creek Road and Tatum Boulevard.
Department
Responsible Department
This item is submitted by Deputy City Manager Mario Paniagua and the Street Transportation and Finance departments.