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  ITEM 29.       
Meeting Date: 10/13/2020  
Submitted For: Vicki Rios
Department: City Manager's Office  

Subject
RESOLUTION NO. R20-132
 
A RESOLUTION OF THE COUNCIL OF THE CITY OF GLENDALE, MARICOPA COUNTY, ARIZONA, ADOPTING POLICY GUIDELINES AND APPLICATION PROCEDURES FOR THE FORMATION OF REVITALIZATION DISTRICTS.
Presented by: Vicki Rios, Assistant City Manager
Purpose and Recommended Action
This is a request for Council to waive reading beyond the title and adopt a resolution to update its policy guidelines and application procedures for the formation of Revitalization Districts.
Background
Arizona Revised Statutes Title 48 entitled "Special Taxing Districts" allows for the formation of Revitalization Districts (Chapter 39). The purpose of these Districts is to finance the cost of infrastructure within the City and the District boundaries through the issuance of municipal bonds which are paid for by assessments to the property owners within the District. 

Revitalization Districts ("RD") can be used to finance major development projects within their boundaries.  RDs can be formed within the boundaries of the City by formal Council action. 

The City is not responsible for payment of the debt or any other obligation of the Revitalization District and does not pledge any revenue, property, or security for the payment of the debt. 
Analysis
Council adopted a policy for RDs on August 11, 2020.  The policy was amended just prior to adoption to allow an RD to levy a property tax for limited purposes.  Upon reviewing the final version of the adopted policy, staff realized that Section 2.11 (iv) contained the following language which has the effect of restricting the RD from levying a property tax.

"Section 2.11 (iv)   That no property tax or excise tax will be levied by the RD, ..."

Staff recommends revising this section to remove reference to property tax.  The amended policy would contain the following language.

"Section 2.11 (iv)   That no excise tax will be levied by the RD, ..." 

Staff further recommends revising the policy to add a requirement that the RD application include an analysis of any property tax to be levied, the impact to the properties, and information about how the property tax would be used.  The amended policy can incorporate this requirement by adding the information indicated by underline below to Section 2.6 (i):
 
"...specifically the effect on marketability of property in the RD versus property in adjoining and similar areas outside of the RD. This analysis should include the anticipated level of any property tax to be levied by the RD and how the revenues from such tax would be expended.
   
Best practice calls for Council to establish guidelines and application procedures on the formation of district.  The Guidelines can be revised and updated as needed in the by Resolution of the Council. An updated policy with the recommended changes is attached for Council consideration. A 'redline' version showing the changes to the policy is also attached for Council reference.
Previous Related Council Action
Council adopted Policy Guidelines and Application Procedures for the Formation of Revitalization Districts on August 11, 2020. 
Attachments
R20-132
Updated RD Policy Guidelines
RD Policy Guidelines Redline version


    

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