Understanding CFDs in Verrado and Phoenix Metro: Benefits & Timeline
Community Facilities Districts (CFDs) in Verrado & Phoenix Metro: What You Need to Know
In growing communities like Verrado in Buckeye, Arizona, and other cities in the Phoenix metro area, Community Facilities Districts (CFDs) play a crucial role in financing public infrastructure and amenities. These special taxing districts provide necessary funding to build and maintain roads, parks, utilities, and other essential services that enhance the quality of life for residents.
If you’re a homeowner or considering buying in Verrado or similar master-planned communities, understanding how CFDs work, their benefits, and the timeline for repayment is essential. This guide will break down the impact of CFDs, how they benefit property owners, and when Verrado’s CFD obligations might be fully repaid.
What is a Community Facilities District (CFD)?
A Community Facilities District (CFD) is a special taxing district created to finance public infrastructure and improvements within a designated area. Instead of requiring a city to pay for infrastructure upfront, CFDs allow municipalities and developers to issue bonds that fund projects like:
Roads and streetlights
Water and sewer systems
Parks, trails, and recreational facilities
Fire and police stations
Schools and other public services
Homeowners in a CFD pay an additional property tax or assessment to repay these bonds over time, typically spanning 20 to 30 years.
Benefits of CFDs for Homeowners
While additional property taxes may sound concerning, CFDs offer numerous advantages to homeowners and communities:
1. High-Quality Infrastructure and Amenities
CFDs allow developers to build high-end infrastructure and amenities faster than traditional municipal funding. As a result, communities like Verrado have well-maintained streets, lush parks, and modern utilities that make the neighborhood more attractive and livable.
2. Spreading Costs Over Time
Instead of requiring an upfront lump sum payment, CFDs spread the costs of infrastructure over decades, making it more affordable for homeowners.
3. Increased Property Values
Well-developed communities with quality infrastructure and amenities often experience higher property values. In Verrado, homes benefit from beautifully maintained landscapes, walkable streets, and well-planned public spaces.
4. More Control Over Local Development
CFDs are managed at the local government level, meaning funding stays within the community and directly benefits residents through improved services and enhancements.
CFDs in Phoenix Metro Cities
Many cities in the Phoenix metro area use CFDs to finance public projects. Some notable examples include:
1. Verrado (Buckeye, AZ)
Verrado’s CFD funds roads, utilities, parks, and schools, ensuring a well-planned community. As a result, homeowners pay a CFD tax on their property tax bill each year.
Repayment Timeline: CFDs typically last 20-30 years, meaning Verrado’s original CFD bonds could be repaid by 2030-2040, depending on the bond structure. However, newer phases of Verrado may have additional CFDs with different repayment schedules.
How to Find More Info: The City of Buckeye Finance Department manages CFD details for Verrado. See contact information below.
2. Peoria, AZ
Peoria has several CFDs that help fund public infrastructure in growing neighborhoods, such as Vistancia and Lake Pleasant Parkway. These CFDs enable Peoria to keep up with rapid expansion while ensuring residents benefit from quality amenities.
3. Tempe, AZ – Rio Salado CFD
The Rio Salado Community Facilities District was created to fund Tempe Town Lake’s development and maintenance. This project transformed the area into a major recreational and economic hub.
4. Avondale, AZ – Alamar CFD
The Alamar Community Facilities District ensures new residential communities in Avondale have roads, water infrastructure, and parks. This helps the city grow while maintaining high standards for public services.
Understanding Verrado’s CFD Repayment Timeline
Homeowners in Verrado pay an additional property tax each year to cover CFD bond repayment. The total duration depends on when the bond was issued and the specific phase of Verrado a home is in.
How to Find Out Your CFD Tax Duration
If you live in Verrado or are considering buying a home there, you can check your CFD obligations by:
Reviewing Your Property Tax Bill – CFD charges are listed separately.
Contacting the City of Buckeye Finance Department – They manage Verrado’s CFD repayment and tax details.
Who to Contact for Verrado’s CFD Information
For exact CFD repayment timelines and tax obligations in Verrado, contact the City of Buckeye Finance Department:
City of Buckeye Finance Department
📍 Address: 530 E. Monroe Ave., Buckeye, AZ 85326
📞 Phone: 623-349-6000
🕘 Hours: Monday - Friday, 8 a.m. - 5 p.m.
Special Districts Manager
👤 Larry Price
📞 Phone: 623-349-6164
📧 Email: [email protected]
Chief Financial Officer
👤 William Kauppi
📞 Phone: 623-349-6161
📧 Email: [email protected]
Conclusion: Are CFDs Worth It?
Community Facilities Districts (CFDs) are essential for developing high-quality neighborhoods like Verrado. While they come with an additional property tax, they provide huge benefits:
✅ Faster infrastructure development
✅ Enhanced community amenities
✅ Increased property values
✅ Local control over funds
Understanding how CFDs work and their repayment timeline helps homeowners plan financially and make informed real estate decisions. If you live in Verrado, checking with the City of Buckeye Finance Department can provide clarity on your specific CFD costs and duration.
Thinking of buying in a CFD community? Weigh the long-term benefits against the tax obligations to determine if it’s the right fit for you! 🚀
