The Cortina Community Facilities District (District) is a special purpose district created specifically to acquire or construct public infrastructure within specific areas of the City of Goodyear, Arizona, and is authorized under state law to collect for operations and maintenance (O&M), issue general obligation (GO) or revenue bonds to be repaid by property (ad valorem) taxes levied on property within the District (for GO debt), or by specific revenues generated within the District (revenue bonds). The District was created by petition to the City Council by property owners within the area to be covered by the District, and debt may be issued only after approval of the voters within the District.
The District, a component unit of the City of Goodyear, Arizona (City), was established January 28, 2002, and is a political subdivision of the State of Arizona as well as a municipal corporation by Arizona Law. The City Council serves as the Board of Directors. All transactions of the District are included in the City’s financial statements. However, the City has no liability for the debt.
The Cortina Community Facilities District will appear on your property tax statement from Maricopa County as "CFD - CORTINA". The GO debt and O&M is paid for through the normal property tax process with the county. Payment of the debt service and O&M is through collections of an ad valorem property tax levy on properties within the district based upon the assessed valuation. The Maricopa County Assessor determines the assessed value of the property and the Maricopa County Treasurer collects the property tax.
On February 8, 2017, the District issued $2,075,000 of General Obligation Refunding Bonds with an average interest rate of 3.18 percent to refund $1,950,000 of outstanding 2005 and 2006 Series General Obligation Bonds with an average interest rate of 5.49 percent. The net proceeds of $1,967,427 (after payment of $107,573 in underwriting fees and other issuance costs) were immediately transferred to the existing trustee to pay the bonds being refunded. As a result, the 2005 and 2006 Series General Obligation Bonds are considered to be defeased and the liability for those bonds has been removed from the financial statements. Although the refunding resulted in the recognition of a deferred loss on refunding of $17,427 for the fiscal year ended June 30, 2017, the District in effect reduced its aggregate debt service payments by
$252,873 over the next 15 years and obtained an economic gain (difference between the present values of the old and new debt service payments) of $202,325. The savings are realized by lower debt service payments on the District's general obligation bonds.