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The Prescott Daily Courier | Prescott, Arizona

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5/5/2012 9:56:00 PM
Prescott Valley staff recommends raising community facilities district rates

PRESCOTT VALLEY - Homeowners in the StoneRidge, Quailwood and Pronghorn Ranch subdivisions are likely to face a hike in their secondary tax rates when the 2012-2013 fiscal year begins July 1.

Management Services Director Bill Kauppi, who doubles as the treasurer for the community facilities districts, has proposed increases in the tax rates to offset a drop in property values.

Kauppi has proposed raising the rates from $3.90 per $100 in secondary assessed valuation to $4.47 in StoneRidge and $4.80 in Pronghorn Ranch. The rate would go up from $4.23 per $100 in secondary assessed values to $5.55 in Quailwood.

He spoke about the proposed increases Thursday during the second evening of a work/study meeting of the Town Council, which met as the board of the separate CFDs.

"We are trying to eliminate how much money we are drawing from the reserve (deposit accounts)," Kauppi explained after the meeting. "Pronghorn and Quailwood (homeowners) will see a slight increase in their taxes."

The recommended increases came as no surprise to Louie Lizza, a StoneRidge homeowner who formerly served on the board of its homeowners association. Lizza did not attend the meeting.

However, Lizza focused instead on ongoing negotiations to refinance the CFD bond to extend it for an additional five years. He served on a homeowners committee that proposed refinancing $10,495,000, which includes an issuance cost of $500,000, to obtain a lower interest rate.

The homeowners committee drew support March 1 from the council. A previous council government approved the formation of the StoneRidge CFD in 2001, and authorized a $14.8 million bond issue to be paid off in 25 years. The bond has financed a bridge and other public improvements.

"We have a different situation coming because we are refinancing our bond," Lizza said on Friday. "Basically, our CFD will not be about rate any more. We are going to refinance the bond. The bond amount is going to get lowered."

The StoneRidge homeowners are working with a new developer who bought the remaining lots and the golf course: Univest of Scottsdale. The former developer, Tempe-based SunCor, filed for bankruptcy in February.

The original developers of Quailwood and Pronghorn Ranch collapsed as well. But as in StoneRidge, new developers have emerged to build homes.

The original developers sought the formation of the CFDs in part because the CFDs enabled them to sell homes at lower up-front prices and to finance improvements. The buy-now, pay-later approach meant homeowners would pay for the public improvements over the life spans of the 25-year bonds.





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Reader Comments

Posted: Tuesday, May 08, 2012
Article comment by: Citizen Adolf

It's time to get the PV town council out of office, get some honest hard working people in and fix the issues in this town.

Holy cow...CYFD had a $2million roll over, gave a bonus to their employee's, built an immaculate training center, and wants to raise property taxes to fund their future kingdom. Hmm let us recap their leadership. Their new chief is from Phoenix, their new assistant chief of support services in from Phoenix. At lease one member of their board is a former Phoenix firefighter. It sounds like good ol' boy network is alive and well in the town of Prescott Valley. YEEE HAWW, maybe Aunt B can bake us all a pie.


Posted: Tuesday, May 08, 2012
Article comment by: Sparky..! Sez Whats Up With Wise?

Harold : you state :"Well I guess you are not the Brightest Spark, Or maybe you are just a tool for those that I have gone to the authorities about?" Me a tool ? For what , honest, clean town government? I'd have to plead guilty to that. Throwing corrupt bums out? I'd certainly be for that! what authorities did you go to? What did they say? are they going to or are they going to start an investigation? Or does the powers that be reach into the highest offices and agencies? I say hurray , if indeed you did some act ethical and moral. But honestly, maybe you need to consult with some mental health professionals as it appears from the record and your statements there are two different worlds, The Wise world and the Real Deal of Fainsville.

Posted: Tuesday, May 08, 2012
Article comment by: ebeneezer schrooge

You voted for them - you have to live with them. If you don't like them then recall them. I'll bet not one in a hundred attend council meetings, how many have started a petition? If you are not will to get involved and that includes voting - then you have no grounds to bitch. If you don't act you get what you deserve you bunch of durn whiney people

Posted: Tuesday, May 08, 2012
Article comment by: Harold Wise

In the first link it backs up my claims and the second link quotes me as saying "Vice Mayor Harold Wise said. "I just hope in all of this that we do not lose sight of taking care of immediate business. I don't want to have our credit card maxed out." ... I stand by my claims because I know I am telling the truth. I have no fear of printing MY name.

Posted: Tuesday, May 08, 2012
Article comment by: Harold Wise

"I truly thought that was why they didn't appoint you" guess again! Those who hide behind alias never tell the truth. As for new blood LOL New blood already corrupted by the elite. I will not retire, sorry. Nor will I just fade away so the corruption goes unpunished. The appointment to council was decided long before I or the applicants spoke.

Posted: Tuesday, May 08, 2012
Article comment by: You can't run from your record

So Harold Wise states in one entry here: "I had NO support by any of the council when I voiced my concerns about the cost of the library and my concerns about the C.F.D.s." Very interesting as a search of the Courier archives reveal that you were one of three (including Mike Flannery and Mary Baker) who voted against awarding the library contract, so you did in fact have support. See http://www.prescottaz.com/main.asp?Search=1&ArticleID=50660&SectionID=1&SubSectionID=1&S=1 for that story. Strangely, however, you earlier in the year voted unanimously with the other council members to issue $19 million in debt to finance the building, see http://www.prescottaz.com/main.asp?Search=1&ArticleID=50200&SectionID=1&SubSectionID=1&S=1 for that story. Perhaps you are going to repeat the famous words of John Kerry (or was it Al Gore?) that you "voted for it before you voted against it!"

Searches in the Courier archives also reveal that you voted FOR two CFDs, the Parkway and Southside CFDs, which are killing businesses along the corridor. You can make any claims you want about the dire warnings you shared with your fellow councilmembers, but its hard to run away from your record. And as others have noted, what's most scary is what you DIDN'T say when the prison issue came up for the second time. I hope you don't try to ram a prison down our throats as a county supervisor!


Posted: Monday, May 07, 2012
Article comment by: Do the Deal

I was at that meeting Harold Wise. I was shocked when you mentioned using a CFD. I truly thought that was why they didn't appoint you. At first I thought you were kidding, but I guess no one is laughing now. Keep it real, stay retired. We need new blood in this town .... You had your chance to make a difference, you didn't, you had your chance to speak against the Prison, you didn't. Please go quietly into the night.

Posted: Monday, May 07, 2012
Article comment by: Harold Wise

Well I guess you are not the Brightest Spark, Or maybe you are just a tool for those that I have gone to the authorities about? Credibility? I have plenty of that. The elite in this town would not be as terrified as they are if I had no credibility. But I suspect you already know that.

Posted: Monday, May 07, 2012
Article comment by: Sparky..! Sez Its called Karma, and it will be back

What in the dickins is Wise blathering on about!? He was all ready to jump ship and get measured for a pine box, told us he wasn't acceptable to the other members of the Town Government because he didn't play ball and there were some corrupt practices hinted at. NOW he's back in the saddle again, playing the same old lapdog game. Harold, ... you had the opportunity to spill the beans and clean up town government but didn't. You have lost all credibility for anyone with an IQ above room temperature.

Posted: Monday, May 07, 2012
Article comment by: That explains it then....

That must explain the reason why the houses are selling so well in Granville. The new and pre-existing home sales are brisk at this time. So glad that we bought here and will never deal with underhanded developer shananigans.

Posted: Monday, May 07, 2012
Article comment by: Harold Wise

@Prescott Valley Resident, what I love about you is your lies are so easily disproved. Go to the town's website yourself ! I never said that!! But then you already know that... right!

Posted: Monday, May 07, 2012
Article comment by: Bad Decisions Make for Bad Results

Never, never buy a house burdened by a special tax district like a CFD, a special tax district which is financed by bonds paid off through taxes on your home. The base is too small and such districts serve only the developers who form them in a way to get the home buyers to pay for utilities and amenities. These CFDs are a way to hide the true cost of infrastructure for the development. The developer does not want the home prices to reflect the true costs of the development, so hides the costs in a CFD which merely defers the costs until later when the bonds have to be paid off. When the house sales dwindle, tough time appear, or any other event which affects cash flow, the developer simply declares bankruptcy and leaves the total cost tho the exi8sting homeowners. If many lots have not sold, then a few unsuspecting homeowners, the few who bought into the development, are left holding the bag. The bonds must be serviced, so those costs are fixed. If home values drop, then tax rates must go up. Again, never, never buy a home or ot in such a development. Local government is not your friend as does not look out for you. It is the developer with their promise of more revenue which has the ear of local government. Assuming that these slugs even understand the CFD structure, potential negative financial impact upon the new buyers, and the unsustainability of such financing structures in difficult times, they will approve it anyway because of short-term revenue to the government. I repeat, local government is not your friend and will not look out for your best interest. You must do your due diligence before buying and understand what exactly you are getting into.

Posted: Monday, May 07, 2012
Article comment by: Prescott Valley Resident

To Harold Wise, at the meeting to appoint the P.V. council member, If I recall correctly , when asked how to improve P.V., you stated we needed more sidewalks. Than you said you would start a CFD to pay for them. Wow, I don't really approve of the present Mayor, Town Council, or Larry T. , but you seem to have the CFD bug pretty bad yourself. Before you deny this go to the P.V. web site and look up the meeting and listen carefully to your response. CFD's are NOT a good way to go ever. They put an undue burden on a select few and when the time turn bad and a corrupt government refuses to default on these bonds, we all pay the price. Shame on you Harold. You noticed the speck of wood chip in the eye of your enemy, and missed the board in your own eye.

Posted: Monday, May 07, 2012
Article comment by: Taxes Too High?

how about Central Yavapai Fire District carrying over 2 Million dollars from last FY and awarding 4,000$ dollar bonuses to all of its employees, meanwhile proposing another property tax hike?

Posted: Monday, May 07, 2012
Article comment by: Harold Wise

The TAX and SPEND leadership in P.V. will continue as long as they are in place. I had NO support by any of the council when I voiced my concerns about the cost of the library and my concerns about the C.F.D.s Why do you think they didn't want to appoint me to Council when I wanted to come back to finish my Elected term after fighting CANCER last year? Be aware, They are MENTORING a candidate for District 5 Supervisor so the P.V. leadership can control him. The fact is , HE doesn't know jack about most things. Be careful when you VOTE this Fall and vote for EXPERIENCE. Both on a national level and here locally.

Posted: Monday, May 07, 2012
Article comment by: Robert W

As if I needed yet ANOTHER reason to move out of this backwards town...

PV council can go right to.....


Posted: Monday, May 07, 2012
Article comment by: Just a thought

"""We have a different situation coming because we are refinancing our bond," Lizza said on Friday. "Basically, our CFD will not be about rate any more. We are going to refinance the bond. The bond amount is going to get lowered."""

SO .... if the Bond amount will be lowered after refinancing, why are you looking to increase rates? Perhaps, your figuring you will be needing a pay raise soon?


Posted: Monday, May 07, 2012
Article comment by: Rip Off

When the values of homes go up taxes go up.
When the value of homes fall the "rates" go up.
It's a rip off by politicians too lazy to do their jobs, which should be to manage with lower revenues when home values fall. Stop whining and cut spending. Same message to the local school districts that pull the same stuff.


Posted: Monday, May 07, 2012
Article comment by: Sparky Rogers

INCREDIBLE! Increased CFD assessment.
This town of PV has really struck a low blow to these communities. You better believe that this will get out to new home buyers here and residents. We are struggling to stay afloat. PV has struck rock bottom. Time to get this PV incompetent council out of office for NOT cleaning their house first and putting the burden on the backs of already paying tax payers. PV leaders, directors are crooked here. They have been lying to us for a long time about PV's finances.
Now PV is adding insult to injury as our house values have gone down 30% or more.
I am, angry as hell and not going to take it any more.


Posted: Sunday, May 06, 2012
Article comment by: Citizen Adolf

Way to screw the economy even more. Ths type of stuff makes me want to leave Prescott valley. However due to poor housing market I'm stuck here. Can't sell, can't fight this. I guess the town of Prescott Valley will continue to take advantage of the people trying to make an honest living. Taxing people is a great way to keep screwing the middle class, if they even exist anymore. It's amazing that the town feels this is the answer. I bet none of the PV staff will be effected this. I also thought that targeting certain groups of people was against the law. Seems like a good attorney would love to get ahold of this.

Posted: Sunday, May 06, 2012
Article comment by: alf landon

Why raise taxes? Why not step up the speed trap and red light camera enforcement?

Heck, just shorten the amber light duration one more time. That'l catch a lot of unwary drivers.


Posted: Sunday, May 06, 2012
Article comment by: Sparky..! Sez Ya gonna do it! get the big jar! N' do it right

Whewww..sure glad they missed that Park Ridge gated community! Lots of rich Californians in there. How about them there water rates? seems like they've been too stable to long.

Posted: Sunday, May 06, 2012
Article comment by: Tom Steele

Development is the "key" word in Prescott Valley. It is the "grow or die" mentality that decides who will be on the council and who will be mayor. That way they get their way as property needs to be annexed or re zoned to suit. I would hope CFD's would be off the table in the future in Prescott Valley but then thats just me. Wake up people!

Posted: Sunday, May 06, 2012
Article comment by: One percent toadies Screw homebuyers

Is this one of those situations where local governmental toadies of the wealthy 1% totally screw the 99%?

Posted: Sunday, May 06, 2012
Article comment by: tired of it all

No one else is in a recession except the big corporations and governments...You folks in the PV council do realize that home values are down and many people are in foreclosure of their homes right?



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