Community facilities districts could sell bonds subject to council OK

The City Council on Tuesday will consider allowing the creation of special taxing districts that can borrow money without voter approval.

The council will hold a public hearing before deciding whether to approve policy guidelines and application procedures that would govern community facilities districts.

The districts would function as separate political subdivisions within the city that could sell bonds to finance development. Property owners in the districts would be assessed a tax that would be used to pay off bonds.

Those bonds would not be subject to voter approval, but the council, meeting as a separate group, would vote on whether to approve the bonds.

Under the city’s proposed rules, preference would be given for affordable housing development, and some of the fee developers pay to apply for a district would go to Tucson’s affordable housing trust fund.

The proposed rules stipulate that the developer enter into an agreement with the city that specifies conditions on infrastructure, including parks.

During the study session before the council’s regular meeting, the council will review city finances, which, according to a memo from Deputy City Manager Mike Letcher and interim Finance Director Frank Abeyta, are worse than projected a month ago.

Since the council’s September financial briefing, officials have projected that because of a shortfall in sales tax revenue, another $13.6 million must be cut from the budget. The city has already eliminated 165 positions, the memo states.

Of the $2.9 million the city planned to cut from outside agencies, only $2 million will be saved because some money has already been doled out, according to the memo.

Officials are now looking at cutting programs, leaving even more positions open – including positions in the Police and Fire departments, which were previously spared – and further slashing travel, cell phone costs and subscription fees.

During study session, council members also will review a study of local foreclosures and a proposal to create a community land trust to reduce the cost of homeownership. Violent crime trends also will be discussed.

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IF YOU GO

What: City Council meeting

Where: City Council Chambers, 255 W. Alameda St.

When: Study session Tuesday begins at 2 p.m.; regular session begins at 5:30 p.m.

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