[0:02] All right, recording has started. With Dave and Scott on the line, we do have a quorum of the boards. It is 108 p.m., and as we can call the meeting to order.

[0:19] At this time, we're looking for an approval of the agenda that's item 1b. Unless any board member would like to suggest to change the agenda with somebody like to make a motion to approve the agenda. A motion to approve the agenda. Thank you.

[0:35] Second. Thank you. First and second. All in favor say aye and motion passes. Moving on to public comments. I will take a motion to open the public comment portion of the meeting with somebody likes to make a motion.

[0:55] Open the public comment of the meeting.

[0:58] I think

[1:03] I heard a second from Scott.

[1:07] Yeah, he says.

[1:08] All right.

[1:09] First and second, all in favor say aye.

[1:11] Aye.

[1:16] All right.

[1:18] The public comment portion of the meeting is open.

[1:21] If there's any members of the public that would like to address the boards, please state your name and do so now.

[1:27] I'm at the anchor location and there is no one from the public present frame.

[1:32] Thank you, Derek.

[1:33] We're seeing

[1:37] and hearing none.

[1:38] We'll take a motion to close the public comment portion of the agenda.

[1:44] So I'd like to make that motion.

[1:45] I'll motion to close the public comment.

[1:48] Third second.

[1:50] I second.

[1:52] Thank you.

[1:53] First and second all in favor say aye.

[1:55] Aye.

[2:00] Moving on to the action items.

[2:02] Action item 2a.

[2:05] I'm going to ask that we table this item until the next meeting those.

[2:08] was meeting minutes weren't quite ready for this board packet, but we were able to post

[2:14] the recordings and everything as within the session short compliance window.

[2:19] So we will move on to item 2B, ratification of payment acclaims.

[2:24] Before we ask for emotion, does anybody have any questions or is there anything Derek that

[2:29] you would like to present for the time?

[2:38] All good. All good. All right. There are no questions. I would somebody like to make a motion to ratify the payment claims. I'll make a motion to ratify the payment claims.

[2:51] It was their second.

[2:54] All right, first and second. All in favor, say aye.

[2:59] Aye.

[3:01] You're out of patient passes. We're moving on to the financial statements. These are on actually.

[3:07] So we did send out a some financial statements with the board packets of this morning.

[3:13] There was a small correction. So what you're seeing on the screen now is the corrected financial statements.

[3:18] and following this meeting, I will send that to the board members as well, so you have the corrected copy.

[3:25] But to present the financial statements, Derek is here and I will pass you the mic.

[3:33] Perfect, thank you, Brian. So we can go ahead and jump to the next page.

[3:38] As you'll see the four different columns, you have the 2026 approved budget, which was done last year.

[3:45] here, there's the 2026 proposed amended budget, which we will review in the next agenda

[3:52] item. And where we'll focus for this presentation is the actual through for March 31st, quarter

[4:00] one. And just for note, the variance column is the difference between the approved budget

[4:06] and the actual through that we'll be reviewing today. So, this page is the general fund

[4:14] or the administrative fund. So these are the administrative expenses, such as accounting,

[4:19] audit, insurance, legal district management. So starting at the top of that column,

[4:25] we have revenues of $287. That was interest earned. And then below that are the expenses,

[4:32] which equal $6,565. And you will note below that transfer from other fund,

[4:43] This is a transfer of $109,000 that comes in from the bond issuance, and these were planned

[4:52] dollars to move into administrative funds to be used for these specific purposes.

[5:01] The ending fund at this point is $102,000 and $721 still to be used for those administrative

[5:09] expenses.

[5:12] And you can stop me at any time if you have questions or comments or what not feel free to

[5:19] please interrupt me.

[5:22] Moving to the next page and staying in that same column, this is the debt service fund.

[5:29] So these are the funds that are used to pay back the bond.

[5:33] So it's the easiest way to look at it.

[5:35] So, at the top, you'll show interest earnings in the revenue of $5,447, and then the expenditures

[5:46] at this point, there are no expenditures, those will happen later in the year.

[5:53] And below that, you'll have the transfer from other fund.

[5:56] And this is the money set aside at bond closing to pay or service the debt until the project

[6:06] is as vertical and producing income.

[6:09] So you'll see that $2,071,684 that was set aside as a reserve and per capitalized interest.

[6:19] So the ending fund about-

[6:21] in while you're here. It is to my knowledge that the balance of the loan is sitting in

[6:32] an interest earning account as well. Is that correct? Correct. Yep. Okay. Does that interest

[6:38] show on here or where does that show? Uh huh. Yeah. So all of these funds are in interest earnings.

[6:45] So you'll see on this page just the debt service portion has

[6:49] earned 5,447 so far.

[6:52] That's what that is, okay.

[6:54] Uh-huh.

[6:54] Yep, exactly.

[6:59] So at this point, the ending fund in the debt service right now is $2,077,132.

[7:07] Okay.

[7:08] We can jump to the next page and this is the one that you probably most interested in seeing

[7:14] the numbers.

[7:15] So this is the capital projects fund, so this is for the construction costs to build the project.

[7:23] So far this year you can see there's $21,000, $21,262 earned in interest and capital outlay thus far has been $279,611.

[7:41] those are the reimbursements to the developer. And then just below that you'll

[7:49] see the bond proceeds. So this is where the bond issuance came in to this fund.

[7:55] And then from there they paid the expenses for the cost of issuance and

[8:00] transferred up to the debt service and transferred up to the general funds.

[8:04] So that leaves you at this point, the ending fund balance of 7,866,972 dollars to be used

[8:18] for those capital projects, expenses, so any questions on that?

[8:26] that? No. Okay. That is the the brief and succinct presentation on the Q1 financials.

[8:37] Excellent. Thank you, Derek. I appreciate it. If there are no other questions,

[8:41] we'll be looking for a motion to approve those unoughted financial statements for the period ending

[8:45] March 31st, 2026. Somebody would like to make that motion? A motion to approve the unoughted

[8:52] of financial statements for March 31st, 2026.

[8:56] Use their seconds.

[8:59] Second.

[9:01] Thank you.

[9:02] Versus second, all in favor, say aye.

[9:04] Aye.

[9:05] Aye.

[9:07] All right, moving on to the tentative amended 2026 budgets,

[9:11] where we will be moving to adopt the tentative budgets

[9:15] instead of public hearing date to take public comment on the same.

[9:20] Derek, are you taking this as well?

[9:22] Yep, all right, go back to that same financial statements that we just walked through it.

[9:33] Yeah, we'll walk through it the exact same way if that's fine.

[9:36] Again, interrupt me if there's any comments or questions.

[9:41] So we have to amend the budget because it did not include the bond issuance when it was approved.

[9:48] So, statutorily, we have to increase these numbers to include all of the bond funds as they come in and as they go out.

[9:56] So, that's what this second column will be.

[10:01] So, starting at the top, we show a budget for interest earnings of $2,500 for the year in this fund.

[10:09] And this is the administrative fund.

[10:13] Also there is no change in the planned expenditures for the year.

[10:21] So those will remain the same at $54,500 so it's budgeted.

[10:27] The budget does include the $109,000 transfer from the bond issuance into these administrative

[10:36] funds.

[10:38] So that leaves us with an ending fund balance as $57,000 at the end of the year, if those

[10:48] funds are expanded but as shown.

[10:53] So that is the general fund.

[10:57] We can go ahead and move to the next page where the debt service fund.

[11:02] So, this will show at the top $30,000 of interest earnings as planned, just below that,

[11:13] or the expenditures of $561,059, and those are the two bond payments that will happen throughout

[11:23] the year.

[11:24] So, you'll have one in June and one in December, and those are the interest payments that

[11:28] come out of the capitalized interest from the from the bond issuance. So the just

[11:37] below that you have the transfer from other fund of the $2,071,684 and that was

[11:47] just as the bond issuance dictated just moving these funds into the debt

[11:53] service funds for those purposes. So at the end of the budget cycle that shows an ending

[12:03] fund balance of $540,000, $625, which is composed of the capitalized interest and surplus

[12:16] plus fund just below that.

[12:19] So that's the debt service fund through this year, as proposed.

[12:26] And we can go to the next page.

[12:31] And this is the capital projects fund.

[12:35] And that shows interest earnings of approximately $100,000.

[12:40] And a budget line of capital outlay, which

[12:45] is the construction expenditures of $8 million, $140,000, $140,000, $958, which includes

[12:59] all of the bond funds plus the interest earnings.

[13:04] So whether you're planning to spend all of those this year or not, we budget for it so

[13:10] that you can spend it if as needed throughout this year. So that you don't have to go through

[13:17] this process multiple times in the year.

[13:21] So if you spend all the money, that leaves you with an

[13:23] ending fund of balance of zero, which I think that's the goal eventually anyway, right? So

[13:32] that is the proposed amended budget. And then Brian, you probably will

[13:40] review this but we have to wait at least seven days to actually adopt this

[13:44] budget so that the public has a chance to make any comments but if you have

[13:51] any any edits or comments this is the best time to do that so that we can have

[13:58] those done in preparation for that final approval.

[14:07] Right off the bat are there any

[14:08] questions, comments or Derek?

[14:13] No.

[14:18] All right. That's all I have on your brain. Thank you, Derek.

[14:21] Then we got two things to do here. First, we will make a motion to adopt the tentative,

[14:28] tentative adopt the amended 2026 operating capital budgets and set public hearing dates. So yeah,

[14:34] we'll have to take a motion to approve that tentative amended 2026 budgets and instead of public

[14:40] hearing dates for public comments on the same in that final actual adoption. So first,

[14:47] would somebody like to make a motion to approve the amended 2026 operating capital venture?

[14:55] Yeah, the motion to approve the tentative amended 2020.

[15:00] Six budgets. Thank you. Is there a second?

[15:05] First and second, all in favor say aye. Aye. All right. And this next question is for the group. Zach, as well, if you want to chime in, we need to schedule another meeting to formally adopt that budget, like Derek said, within seven days, which would be or not within, but after seven days for public consumption. The seven days from today would be next Monday.

[15:29] Monday, the 11th

[15:35] for the client service scene Zach, Amanda, Derek, does the 11th work for

[15:43] you for that follow-up meeting and what time are you going to be able to do that?

[15:49] Monday doesn't work for me, however, if it does work for Amanda, she could do that.

[15:58] Yeah, Monday's are usually tough for us, so if it was Tuesday, that would be great.

[16:04] I was Tuesday. Look, Derrick Miranda,

[16:12] Tuesday. Next week is, that's the 12th.

[16:20] What time of day?

[16:23] That's what we're going to figure out. Dave, Scott's and I guess Beverly as well. Scott,

[16:31] if you could speak for Beverly here. What next Tuesday for another board meeting? We'd say

[16:40] I mean, I could propose around 1 p.m.

[16:46] Does that work for your schedule?

[16:50] Yeah, that works for me.

[16:53] That's got wood next Tuesday at 1 p.m.

[16:56] For a quick adoption of the budget work for you.

[17:04] Yeah, I'll be in my office.

[17:08] perfect yeah that works for us as well yes for Derek all right then I'll get

[17:17] something on the calendar I'll just make it a 30-minute meeting and we'll get

[17:20] that out so you'll probably see that's either this afternoon which one so and

[17:25] Brian and you may or may not have seen the license over Dave and I were chatting

[17:30] and just as a administrative non-action item before, and we can discuss the House Bill

[17:42] and District Anchor Luke K. I guess before we get into that, but just in terms of the board

[17:49] has a desire to increase the number of board seats from three to five. And so what we'll

[17:58] need to do if they'd like to do that is, is have that voted upon at, you know, that

[18:04] next meeting and approve a resolution to increase those, the board seat number, and then

[18:16] they will need to appoint those vacant positions, which sounds like they've got two people in

[18:27] place that they'd like to add on. And so I sent an email, including you Dave on it, and

[18:34] if you need to, you can send it to Scott. But essentially, according to the Utah code,

[18:41] we don't have to do anything more than a 24-hour notice as an IFD with no residents living

[18:52] on the property. That fits into an exception. There's others where you have to do like a

[18:56] to one of their 30-day notice period,

[19:00] but because this falls into several exceptions

[19:02] and the governing document says that the board

[19:06] is the appointing authority essentially

[19:09] that you guys can appoint new board members.

[19:14] We can just handle that all at one board meeting

[19:17] and our team can draft the resolutions.

[19:22] Anyway, so that's one thing I just

[19:24] I just wanted to put on the everybody's radar.

[19:32] Perfect, thank you so much.

[19:33] We'll go ahead and add that to the agenda and everything for the next meeting and make sure

[19:37] that we can address it then.

[19:39] And if there's anything you need for us for support, please let us know.

[19:42] Great, thanks.

[19:47] All right, if we're ready, we can move on to item 2e, ratification of application for acceptance of district eligible costs with forged land company LLC.

[19:55] I have both of those documents number one and number four included in the board packets

[20:00] before we take a motion for a ratification of those costs.

[20:06] Is there anything that anybody would like to say in to present to these items?

[20:18] Is everybody familiar?

[20:20] We've already seen these signatures have been completed and emails have been sent.

[20:25] If there are no questions then we'll go ahead and ask for a motion to ratify

[20:29] by the acceptance of district eligible costs

[20:32] with forged land company LLC.

[20:35] Motion to approve ratification of application

[20:40] for acceptance of district eligible costs

[20:42] with forged land company LLC.

[20:44] Thank you, is there a second?

[20:47] Five second.

[20:49] First and second, all in favor say aye.

[20:52] Aye.

[20:54] We're moving on to the consideration or approval

[20:56] of 2026 annual administrative matters resolution.

[21:00] Zach, would you like to speak to this and explain a little bit about what this resolution

[21:04] is?

[21:05] Yeah, you bet, so we do this each year.

[21:10] Dave Scott, you guys approved this, basically the exact form last year for 2025, just the

[21:18] only difference is we've got to update it for the new year and essentially states in there

[21:26] that hey that you guys have approved at annual budget for this year and and it goes through

[21:35] that the things are in order. Now one thing I did I think we've got all these done but

[21:43] you guys just to confirm their number four there is that trustee training, board member training,

[21:49] that each board member has to do once and then there's an open meeting training that has

[22:01] to be done each year and so just a reminder that those obviously the number four the trusty

[22:10] training I believe you guys have all done that already that's just a one-time thing for the board

[22:16] Remember training with the open meeting training. Let's maybe Brian you guys can help us

[22:23] keep that in order and ensure that they've got the link to do that and

[22:30] you know what the reminders that are needed, but other than that it's

[22:36] really like it says administrative matters goes through and things that our team and pinnacles team

[22:44] have handled.

[22:48] If you scroll down a little bit on that, just, again, it states the officers

[22:57] of the board and we've got the conflict of interest disclosure statement is also an annual

[23:03] requirement. Panical team, I don't know if I'm trying to remember if that's something you

[23:09] guys have already sent out to them or if that will be forthcoming. I think we did that in

[23:16] January. Yeah. I think that's right. Awesome. So you can scroll down Brian, but that's

[23:26] really essentially, you know, just states some of the standard code items. And I know we're

[23:36] talk about anchor location piece next, but yeah, any any questions on that from the board?

[23:49] Yeah.

[23:52] Sounds good. Thank you, Zach. If there's no questions, we're looking for a motion to

[23:55] approve the 2026 annual administrative resolution. Motion to approve the 2026 annual administrative

[24:11] the last item that wraps up the action items, the last item here is discussion items,

[24:20] Zackle passes to you in just a second, but just a brief overview, the House Bill 17 was amended,

[24:26] that House Bill dictates how districts are, restrictions that districts are,

[24:33] subject to regarding anchor locations, but Zach, do you want to, I don't want to step

[24:41] on legal totals here, would you like to provide a little update on what this means and

[24:46] what we're trying to do?

[24:48] No, I'm okay with you guys going forward with it.

[24:52] I think it's just mentioning that we've got to have anchor location somewhere, have the

[25:01] meetings or someone there, right, where the anchor location is or it has to be on the property.

[25:10] So the general amendment is that the anchor location that this starts in two days from today

[25:17] that the anchor location needs to be located within the boundaries of the district.

[25:22] If there is not a viable location within the district where a meeting can be held,

[25:27] then it's on the district to find a place nearby that's reasonable or a place within

[25:36] the, what's the registered entity as well. So we're looking at different options to

[25:44] address this. This will be an effect for the next meeting that happens with the budget renewal

[25:53] or the budget acceptance on the 12th, so we're going to work with legal and and the board members to see what options are and come up in the best case scenario.

[26:04] And I've asked Zach to look into the options of drafting a resolution to help support the area that we end up going in.

[26:15] If that works, my office is notified.

[26:19] Great. Yeah. I think that'd be great.

[26:22] Perfect. Yeah. Thank you, David. I appreciate it.

[26:25] I'll reach out to you with a little bit more details on that.

[26:27] And Zach, I'll include you on that too.

[26:30] So we can work together to get any kind of statutory compliance items done to accommodate that aggregation.

[26:38] Okay. That's great.

[26:40] Perfect. Thank you.

[26:41] All right, that is all I have, Zach, Derek, Amanda, is there anything for discussion that was not already addressed?

[26:54] Oh, good.

[26:55] All right, there's nothing else.

[26:58] I'll take a motion to adjourn the meeting.

[27:01] Somebody likes to make a motion to adjourn the meeting.

[27:04] All right, is there a second?

[27:06] Just a second.

[27:09] First and second, all in favor say aye.

[27:10] Hi, I'm 35 PM and we're adjourned. Thank you. All right. Thanks guys. Thanks.

Special Meeting

Transcript