John Musolf Has An Issue On Arroyo Grande

Our neighbor John Musolf has a letter in the Dec. 10 Explorer concerning a potential of a new property tax based on the recently approved Arroyo Grande General Plan Amendment.

We post his letter without comment as to the facts noted by John.
**************************************************************************************

Facility district a hidden gem to tax in Arroyo Grande

The Town of Oro Valley has an obsession with property taxes.

In the Arroyo Grande amendment approved Nov. 19 was a hidden gem in Exhibit A, Arroyo Grande Special Area Plan Policies, Financial Sustainability Policies. It describes the use of a Community Facility District.

CFDs are a mechanism whereby developers (single or multiple) are allowed to establish separate political subdivisions distinct from the jurisdiction in which they are located for the purpose of issuing tax-exempt bonds to finance public improvements. The obligation for the repayment of the CFD bonds is passed on to the end users of the property who retire the bond obligations over a 25-year period. With the use of CFD financing, the TOV will be better able to master plan large areas of land (Arroyo Grande) and provide for the services required to serve these areas.

In order to establish a CFD, it must be approved by a two-thirds margin of qualified voters in the district. If there are fewer than 12 registered voters within the district, the vote may be passed by current landowners (developers). Many developers opt for establishing a CFD. Prior to the sale of the homes, they are the only “voters” in the CFD and thus have the power to create the district for future property owners. The CFD has the power to issue tax-exempt bonds to pay for the infrastructure.

The cost is then passed on to the homeowner in the form of annual special taxes. Special taxes are levied on properties within the CFD usually based on the square footage of the lot or the home or a type of category (i.e. single family or multi-family). The Rate and Method of Apportionment (RMA), which is approved during the CFD establishment proceedings, provides this information for each individual CFD.

The TOV has found a way to circumvent the need for voter approval of taxes by establishing one or more CFDs in the Arroyo Grande.

Taxation without representation. Neat trick.

John Musolf

Oro Valley

Explorer Editor Discusses Arroyo Grand Issue

We haven't always agreed with Dave Perry, editor & publisher of The Explorer.

In his editorial comment concerning Arroyo Grande in the Dec. 10 Explorer, Mr. Perry makes total sense.

As we noted in our next post Oro Valley Town Manager Asks State To Approve Arroyo Grande Plan we trust Pima County Administrator Chuck Huckleberry will not do "any end around" deal that will have a negative impact on moving forward.

We'll have to wait and see----although we should know soon if there is going to be an "issue."

Oro Valley Town Manager Asks State To Approve Arroyo Grande Plan

The Explorer reports that Town Manager David Andrews has sent a letter to the State Land Commissioner requesting they approve the General Plan Amendment recently passed by the Town Council.

The Explorer article includes a copy of the letter.

Although not noted in the article, it was recently reported that Chuck Huckleberry, Pima County Supervisor had some concerns with the Oro Valley plan

We should note, that Council Member Salette Latas initiated a motion that was approved to NOT permit a TEP sub-station within the wildlife corridor west of Oracle road.

We trust Mr. Huckleberry will agree that the sub-station does NOT belong there.

Forum Of Local Governments Hold Forum To Discuss Water & Land Resources

The government leaders from the area, including Mayor Loomis, met recently to discuss ways to increase cooperation between the local municipalities, especially as it concerns water & land resources.

Read The Explorer article here.
http://www.explorernews.com/articles/2008/12/10/news/doc493f13f44a70d909187420.txt

Oro Valley Used More Water Than Allowed In 2000-2005

The Explorer reports that during the years 2000-2005, Oro Valley’s water utility withdrew more groundwater from its source aquifer than it was allotted, according to the Arizona Department of Water Resources.

The main reason---water for golf courses which has since been rectified by going to reclaimed water.

Read the Dec 10 article here.
http://www.explorernews.com/articles/2008/12/10/news/doc493f12b1d3ced156780198.txt

Does Oro Valley Want or Need Volunteer Boards & Commissions?

In an article in the Dec. 10 Explorer, the question of volunteer boards & commissions is addressed.

It is an issue the Town Council will take up as a future agenda item.

Town volunteer & present Planning & Zoning Commissioner Bill Adler isn't sure at least some of these entities are necessary or economically practical.

We think Bill has a valid point.

Any thoughts?

Read the article here.
http://www.explorernews.com/articles/2008/12/10/news/doc493f137222dad287552304.txt