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Eastmark Community Facilities District No. 1
Board Report
Date:
May 21, 2026
To:
Eastmark Community Facilities District No. 1 Board of Directors
Through:
Michael Kennington, District Treasurer
From:
Mark Hute, City Treasurer
Subject:
Fiscal Year 2026-27 Property Tax Levy
Purpose
This action approves the Fiscal Year 2026-27 property tax rate for the Eastmark
Community Facilities District No. 1 (City of Mesa, Arizona) (the "District") as shown in
Figure 1 below.
Figure 1. FY 2026-27 Property Tax Rate and Corresponding Levy
Purpose
Rate
(per $100 of taxable value)
Corresponding
Levy
Operations
$0.16
$ 349,640
Debt Service
$1.73
$ 3,780,483
Total
$1.89
$ 4,130,123
Highlights
• The total levy of $4.1 million is a decrease of 12% from the prior fiscal year.
• The total rate decreased from $2.27 to $1.89.
Background
On April 2, 2012, the Mesa City Council formed the District. The District issues general
obligation bonds in order to finance the cost of eligible public infrastructure (streets,
water lines, wastewater lines, parks, etc.) benefiting the land within the boundaries of
the District. The principal of and interest on these general obligation bonds is paid for
with revenue generated by an annual ad valorem levy on all taxable property within the
District.
State law also allows for a portion of the property tax levy to support the operations
and maintenance costs of the District.
2
Discussion
Property tax is calculated as follows:
taxable property value * tax rate = tax levy
A property's taxable value is provided annually by the Maricopa County Assessor’s
Office. The property tax rate is set by the District Board as a dollar amount per $100
of taxable value. The property tax levy is the dollar amount of property tax owed.
The District's ad valorem property tax has two components:
(1) a rate of up to $0.30 per $100 of taxable value to fund the operations and
maintenance costs of the District.
The District pays for accounting, budget, clerk, engineering, legal, and
treasurer staff time. In addition, it pays for publishing costs, audit work, and
software license costs incurred by the District. It may also pay for
infrastructure maintenance costs in the District. Operations and
maintenance costs not funded by the tax are reimbursed by the District's
master developer, DMB Mesa Proving Grounds LLC ("DMB"). The
proposed rate for the operations and maintenance portion of the property tax
rate is $0.16 per $100 of taxable value.
(2) a levy/rate sufficient to pay the debt service on general obligation bonds issued
by the District to pay for public infrastructure reimbursement.
The District uses general obligation bond proceeds to reimburse DMB for
the cost of eligible public infrastructure. The debt service (principal, interest,
and administrative costs) on these general obligation bonds is funded by a
property tax levy on all taxable property in the District. The proposed rate
for the debt service portion of the property tax rate is $1.73 per $100 of
taxable value. No new general obligation bonds are contemplated in FY
2026-27.
Property Valuation
Each property in the District is assigned a full cash value ("FCV") and a limited property
value ("LPV"). The annual increase in a property's LPV is restricted to 5% and cannot
exceed its FCV. Property taxes are levied on a value derived from the property's LPV.
Impact to Property Owners
The owner of the average (mean) value residential property in the District would pay
$591 of District property taxes in FY 2026-27.
Alternatives
To pay existing general obligation bond debt, the District Board must adopt a property
tax levy sufficient to pay the principal of and interest on existing bonds sold previously
by the District. The proposed rate and levy are sufficient to pay debt service on the
existing general obligation bonds, as well as the operational costs of the District. At
this levy and rate, no additional debt service could be paid in FY 2026-27.