Board gives Rocking K South Community Facilities District go-ahead to issue bonds to fund public infrastructure

PIMA COUNTY – The Pima County Board of Supervisors voted 4 to 1 to approve a development and intergovernmental agreement with the Rocking K South Community Facilities District and Rocking K Development Co.

The agreement allows the Rocking K South Community Facilities District to call an election in August asking property owners within the district to approve two things: (1)  general obligation bonds repaid by District taxes on property within the District to fund utility, transportation and other public infrastructure, and (2) taxes on property within the District to pay for maintenance and operation of the public infrastructure.

In January, the Board of Supervisors approved the formation of the Rocking K South Community Facilities District and its general plan. The District covers more than 2,000 acres near Old Spanish Trail and Valencia Road on the far southeast side of Tucson. Rocking K Development Co. has plans to develop a master planned community on the property.

The District intends to issue bonds that property owners within the District would repay through a secondary property tax. Funding from the tax would be used to reimburse Rocking K Development Co. for the costs of construction of public infrastructure. Rocking K Development Co. would convey the utility, transportation and other public infrastructure to the County once construction is complete.

The District would issue as much as $46.5 million in general obligation bonds.

Future homeowners, once the property is developed, would be assessed an estimated $2.30 per $100 of assessed value secondary property tax rate to repay the debt. A separate property tax of 30 cents per $100 would be issued to offset the costs of maintenance of the public infrastructure.

The obligation to pay the proposed bond debt lies with the Rocking K South Community Facilities District and not Pima County. The Rocking K South Community Facilities District is a municipal corporation, a political subdivision of the State of Arizona that is separate from Pima County.

Rocking K is the first community facilities district approved by Pima County. Construction of the Rocking K master planned community is expected to increase the value of taxable property in Pima County by $128 million, once completed.