The Goodyear Community Facilities General District No. 1 (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 August 8, 1989, 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 General District No. 1 will appear on your property tax statement from Maricopa County as "CFD - GOODYEAR GENERAL # 1". 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 June 12, 2013, the District issued $10,685,000 of General Obligation Bonds, with an average interest rate of 4.33 percent, to do an advanced refunding for a portion of the District's 1196(A), 1998, 2000, and 2003 General Obligation Bonds. Under the terms of the refunding issue, sufficient assets to pay $375,000 of the 1996(A), $1,345,000 of the 1998, $4,210,000 of the 2000 and $4,755,000 of the 2003 principal and interest on the refunding bonds issued have been placed in irrevocable trust accounts at commercial banks and invested in U.S. Government Securities, which together with interest earned thereon, will provide an amount sufficient for future payment of principal and interest of the issues refunded. As a result, the bonds are considered to be defeased and the liability for those bonds has been removed from the financial statements. The $280,024 deferred amount on retirement of bonds is being amortized over the shorter of the lives for the refunding bonds on a straight-line basis. The transaction resulted in an economic gain (difference between the present value of the debt service on the old and the new bonds) of approximately $939,689. The savings are realized by lower debt service payments on the District's general obligation bonds.