: The City of Tempe
created the Rio Salado Community Facilities District (CFD) in 1998. The CFD was
created in order to have property owners within a close proximity of Tempe Town
Lake (and benefit from it) help pay for the cost of construction and the annual
operations & maintenance of the lake.
How is the assessment calculated?: The linear lake
frontage of each land parcel in the CFD was measured, along with distance from
the lake itself. The City then broke down this figure by ownership into the
developable square footage of the parcel. Each parcel’s developable area was
then divided by the entire CFD’s developable area to determine the percentage
of the whole on a parcel-by-parcel basis. This percentage is then applied to the
CFD budget to determine the assessment.
What is the Interim Operations and Maintenance Assessment:
Landowners within the district began paying an Interim Operations and
Maintenance Assessment (IOMA) upon lake completion in 1999. This assessment is
based on 20% of the Rio Salado Community Facilities District Annual Operations
and Maintenance Budget.
What is the Operations and Maintenance Assessment: Once a
parcel has been improved the City of Tempe issues the building owner a
Certificate of Occupancy. Then that portion of the property developed shall
begin to pay 100% of the Annual Operations and Maintenance Assessment, based on
the parcel’s percentage share of the CFD Operations and Maintenance Budget.
The remaining undeveloped property would continue to pay the IOMA.
What is the Lake Assessment (Capital Cost): Once the
improvements on a parcel have been issued a Certificate of Occupancy, that
portion of the property developed shall begin to pay the Lake Assessment. The
Lake Assessment is based on the capital cost of Tempe Town Lake, or
$44,849,700.12, to which the parcel’s percentage of the whole CFD is applied.
The Lake Assessment is indexed by a 5% annual Cost Index Factor until a
Certificate of Occupancy is obtained. At that time the developer has the option
of paying the revised capital amount in one lump sum, or over a period of 25
years amortized at 5%. The Lake Assessment will be prorated in the first year
and in the final year of assessment.
How long will the assessments last?: The Operations and
Maintenance Assessment (or IOMA) is a 50 year agreement that started on June 19,
1998, with two automatic 20 year renewals subject to termination for material
cause. The Lake Assessment will last no more than 25 years from the time that
the Certificate of Occupancy is issued. See C98-121 (Tempe), or 98-0545160
(Maricopa County Records).
When are the assessment payments due?: The assessment is
divided into payment periods. The first half of the assessments are due on
October 1st of the current year and delinquent if not paid by 5 PM on
December 1st. The second half of the assessments are due on April 1st
of the subsequent year and delinquent if not paid by 5 PM on June 1st.
Should the due date or delinquent date fall on a weekend or holiday, the
following workday becomes the due date.
Where do I send the assessment payments to?: The
semi-annual assessment payment should be:
