HomeMy WebLinkAboutCouncil Presentation 06-04-2019 CFD Policy Amdendment ChangesCFD POLICY AMENDMENTSTonight’s item carries forward all changes previously presented at the April 23, 2019 study session and incorporates additional direction received that evening regarding the following sections: 1. Section 4.1 - Clarifies the developer's obligation to cover any difference between revenues generated by the $0.30/$100 O&M levy and actual district expenses. Specifically requires acceptable security in the amount of $100,000 which shall remain in full force and effect until the CFD generates at least $100,000 per year in ad valorem taxes from the $.30/$100 levy for a period of three consecutive years or until the CFD is dissolved pursuant to A.R.S. § 48-724.2. Section 4.6(g) i and iii - Additional language added in those sections which leaves the value to lien ratio at 6 to 1, excluding the value of public improvements, for CFDs which only require routine infrastructure and allow a ratio of 4 to 1, including the value of public improvements if adequate security, performance bond or similar, was in place to ensure the infrastructure was constructed.3. Section 4.4(f) - Additional language was added to allow the letter of credit or similar security to be resized at each subsequent bond issuance to the greater of (1) three times the difference between Maximum Annual Debt Service (MADS) less estimated taxes to be collected in the year immediately following the year of bond issuance or (ii) MADS (1 x MADS).1