Buckeye leverages wastewater impact fees to retire Watson Road CFD bonds

Buckeye leverages wastewater impact fees to retire Watson Road CFD bondsThe Arizona municipality will transfer $1.96 million in accumulated reimbursement fees to pay off the district's Series 2020 special assessment revenue refunding bonds, eliminating wastewater-related property assessments.

The city council approved the transfer of $1,960,809 from the Wastewater Watson Road CFD Reimbursement Fund to the CFD's debt fund.

The funds were collected from outside properties connecting to the treatment and collection infrastructure originally paid for by the district.

Retiring the bonds eliminates the annual property assessments for wastewater infrastructure within the Watson Road CFD.

The specific reimbursement impact fee will be replaced by a broader service area wastewater development impact fee.

The City of Buckeye, Arizona, is utilizing accumulated wastewater development impact fees to prematurely retire debt associated with the Watson Road Community Facilities District (CFD). During a June 16 meeting, the city council approved a transfer of $1,960,809 from the Impact Fees Wastewater Watson Road CFD Reimbursement Fund to the district's debt fund. The transfer provides sufficient capital to fully pay off the remaining balance of the CFD's Series 2020 Special Assessment Revenue Refunding Bonds. The reimbursement fund was established to collect impact fees from properties located outside the Watson Road CFD boundaries that connected to the wastewater treatment and collection infrastructure originally financed by the district. According to city documents, the fund had collected $2,762,908 as of April 2026, creating a sufficient balance to retire the outstanding debt. By paying off the bonds early, the city will eliminate the annual property assessments within the Watson Road CFD that were associated with the wastewater infrastructure. Following the debt retirement, the targeted Watson Road CFD reimbursement fee will be replaced by a broader, service-area-wide wastewater development impact fee. The transfer was approved unanimously as part of the council's consent agenda.