The Estrella Mountain Ranch Community Facilities District (EMRCFD) issued special assessment lien bonds in 2007 for the Montecito Special Assessment District (MD) for improvements specifically benefiting property in MD. The special assessment lien bonds are payable solely from amounts collected from the special assessments. The assessment is a first lien on the property assessed, subject only to general property taxes and prior special assessments.
The MD special assessment is billed and payment collected through the normal Maricopa County property tax process. The MD special assessment will appear as "Assessment - Montecito" in the special districts section of your property tax statement.
On January 25, 2018, the District issued $5,634,014 in refunding bonds, including $305,014 in supplemental interest certificates with an effective interest rate of 3.75 percent, to advance refund $5,439,000 of outstanding 2007 Series Special Assessment Revenue bonds, with an average interest rate of 5.75 percent. The net proceeds of $5,490,723, plus an additional contribution of $562,346, (after payment of $170,912 in underwriting fees, insurance, and other issuance costs) were immediately transferred to the refunding trustee to pay the bonds being refunded. As a result, the refunded bonds are considered to be defeased, and the liability for those bonds has been removed from the government-wide financial statements. The reacquisition price exceeded the net carrying amount of the old debt by $51,723. This amount is reported as deferred charges and amortized over the new debt’s life. This advance refunding was undertaken to reduce total debt service payments over the next 15 years by $926,844 and resulted in an economic gain of $570,353. The savings are realized by lower debt service payments on the special assessment bonds.
The special assessment lien can be prepaid at anytime and a payment amortization schedule is available upon request. You can request a payoff quote or payment schedule using our online form.