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We're going to call the ward of the special meeting of the board of trustees for desert, desert, edge, public infrastructure, district number one. This Wednesday, April 15, 2026 at 2 p.m. The meeting has been held by the offices of your panel in South Jordan, Utah. Let's do a quick roll call for our minutes today. My name is Tom Jowley and I am district council. Shannon Bedard, district council, parallel, legal, and a year of cabadian, district council, parallel legal.

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member.

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Michael House Board Member.

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Nick Smith Board Member.

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Brendan Campbell District Accountant.

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And Derek Campbell District Accountant.

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Thanks everybody.

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We're just going to follow our agenda today.

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That everybody received the first.

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We'll go to our first preliminary action.

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I know, which is we're going to elect a

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district share today, although not specifically required by the governing document.

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We recommend the district does elect officers.

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We have Michael House who is currently serving as, I believe, the district vice chair.

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Or no, just either the district vice chair secretary and Julian as well as, I believe, the district

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vice chair secretary, one of the two.

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And so we do have a vacancy and we need to elect a district chair.

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So I'm going to turn it over to the board to see who they would like to elect as a district

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chair.

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I'm okay with taking the position if we need to.

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Okay.

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Well, I mean, we can elect, we can elect, we'll do two elections then.

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if you want to nominate Michael House's district chair and I think Nick

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would need to be either the vice chair and then we can do that or we can

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lack Nick as the district chair so it's up to the board if they want to do Nick

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Julian you guys got any constraints no I think you should be chair Nick should

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to be vice chair makes sense to me.

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Yep, I'm good with that.

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Okay, great.

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So, let's have a motion to elect.

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Well, first of all, let me just tell you that as district chair,

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this is kind of the chief executive and administrative officer of the district.

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And, you know, duties include overseeing the board meetings

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and the general administration of the district.

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our office is district council will generally run the board meetings under the direction of the district chair, you know, for convenience.

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So do we have a motion nominating Michael House as district chair for desert edge public.

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All motion.

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All motion.

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All motion.

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Second.

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Second.

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All right.

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All in various areas.

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I.

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Yeah.

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Thank you.

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Motion.

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Motion passes by unanimous consent and Michael House is elected as district chair to serve in

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accordance with the bylaws.

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Let's also, we can entertain a motion to elect Nick Smith as District Vice Chair.

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I motion to have Nick Smith as the Vice Chair.

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Second.

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Second.

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All second.

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All in favor say areas.

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Hi.

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Thank you.

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Nick Smith is now elected as District Vice Chair, served in accordance with the

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bylaws in Julian, you will remain as a district secretary.

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So the next action item on our preliminary action item is oaths of office.

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In Utah, as you guys recall, state officers are required both by the federal state

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Constitution has to take an oath of office in Utah. The Constitution of Utah specifies

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the wording that this oath is to take. And I'm going to turn the time over to Shanna and

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she will administer the oath of office for both Michael and Nick Smith.

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I'm going to end up sending you guys the original or a version you need to find it and have

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it notarized.

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So, if you'll just repeat after me, I do solemnly swear or affirm that I will support.

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Can we?

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I do solemnly swear and affirm that I will support.

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Oh, Bay and defend the Constitution of the United States.

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Обaeand defend the Constitution of the United States and the Constitution of the State of Utah

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and the Constitution of the State of Utah and that I will discharge the duties of my

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office with fidelity and I will discharge the you say that again the duties of my office

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with fidelity. And the duties of my office with fidelity. Okay. Yeah, can we put that up on the

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restrict view so they can they can just read it there. That would be easier. We'll share our screen

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here so you can look at that. Anyway, thanks, Michael. That is sufficient. Now we'll do

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Ned, here hold on one second, please, this week.

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This one?

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Nope, oh, it's a lot of it.

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I want to under it.

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Sorry.

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No, it's okay.

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Nick's got a memory like an elephant.

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He's good.

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I'm sure he's better than I am.

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Oh, did I see my screen?

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No.

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I look pressure.

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Oh, yeah, Nick.

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I see a lot of pressure going on there.

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Does he mean it?

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I

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look at the bottom.

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I'll share.

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Yeah.

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And then that one.

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Okay. Okay. Can you see the screen now, Nick?

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I can. Okay. Uh, China. Go ahead. I do solemnly swear or firm that I will support obeying the

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baby. Just read it. Right. Exactly. Please just read the oath. Oh, yep. Absolutely. I do solemnly. I do solemnly swear or a firm that I will

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support obey and defend the Constitution of the United States and the Constitution of the state of Utah and that I will

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discharge the duties of my office with fidelity.

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Perfect. Thank you. So Shannon is going to be or Hannah will be sending you, you also

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have to do ethics, disclosures, and we'll send you the form in the state, each year board

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members have to disclose any conflicts that they have with the district like for

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example one conflict could be the fact that if you own you know if you're

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you're not only a board member but if you're a member of the development team

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that has equity in the company that could be a dispute that isn't conflict but

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but that doesn't disqualify you from being a board member.

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It just means you have to disclose the conflict.

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That's all Utah requires.

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It's just a disclosure.

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So we'll send you those forums.

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Michael, you've already filled one out as a vice chair, I think.

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But we'll send you a new one for your new role as district chair.

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And Nick, we'll send you a forum as well.

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and we can, Shana can help you feel that out if you have questions, okay? Sounds great. Sounds good.

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Okay, thanks, guys. Let's move now to our, well, I don't think we have a,

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let's see, we do, we do have, those are our preliminary action items.

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We are going to have a public comment portion of our meeting.

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This is required to understate statute, but we need a motion to open the meeting for public comment.

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I motion to push the meeting to open public comment.

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Second.

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Second.

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All in here say yes.

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Hi.

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Yes.

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Thank you.

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motion passes unanimously. The public comment portion of the meeting is now open.

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We can confirm

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that there are no members of the general public participating in the meeting here at the offices

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of York Hell. We do not see any members of the public participating via the Zoom link. So we can

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now entertainer motion to close the public portion of the door meeting.

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I motion to close the public portion of the board meeting.

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Second.

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Second. All in favor say aye. Aye.

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Aye.

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Thank you. Motion passes unanimously.

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The public comment portion of the meeting is now closed.

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Let's move to our consent items. First is to approve the draft minutes.

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the board meeting on January 14th, 2026, the board did receive and it's packet the proposed

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draft minutes from last board meeting. Are there any questions about those minutes?

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I have none. Okay, seeing none, do we have a motion to adopt the minutes of January 14th,

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2026 board meeting? I motion to adopt the minutes from the January board meeting.

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Second. Second. Second. All in favor say I yes. Yes. Thank you. Motion does pass unanimously. Let's move to our second consent item. Actually, I think we can remove this from the media agenda.

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there have been no payment applications.

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The Zon Funds have been fully dispersed,

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so we'll go ahead and remove that from our consent item.

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Let's move to our action items.

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What?

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Is that correct?

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No, I think you're confusing different districts.

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This one hasn't yet used its bond funds

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and we did have some administrative requisitions

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this. Oh, they are in the board packet. Sorry. All right. Well, the infrastructure and acquisition

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reimbursement agreement does require that the board ratify and approve any requisitions

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made, request made since the last board meeting. And as Brennan pointed out, those are in

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the board packet. Brennan do you want to go over those and then we can entertain a motion to

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approve those? Yeah, absolutely.

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So in the board packet we do have all of the district expenditures

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for the first quarter. What you'll see on the screen is the summary of those expenditures.

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For Q1 of 2026, all of the expenditures were administrative in nature, so all the

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requisitions that we prepared were from the admin fund. We did not have to Tom's point.

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We didn't have any capital requisitions in Q1 of 2026, but these are, there's the requirements

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under the infrastructure acquisition agreement, but also just from a Utah statutory requirement

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we do need to go through and display every expense that a district incurs, so each

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quarter will provide these reports so you can see all the money that you've approved

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and that we've spent. But nonetheless, here's a summary of those. Do you have any questions

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about the payments that were made in Q1? I do not. Okay.

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Thanks, Brenn. Do we have a motion

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to approve and ratify all payment applications and requisitions made since the last board

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or maybe Q1.

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I motion to approve.

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Second.

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Second.

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All in favor say aye aye yes.

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Aye.

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We

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need Nick and Diane.

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I heard Julian on my, or Nick on my side.

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Yeah.

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Okay.

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I didn't hear Julian.

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I was muted.

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Aye.

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Great.

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Thank you.

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Motion passes you there.

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Let's now move to our action items.

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The first action item is to consider accepting.

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Q4 financial statements for 2025. The board did receive in this packet the

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Q4 financial statements for the district. I'm going to turn the time over to

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Brendan to go over those financials and answer any questions from the board.

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Thanks Tom. I will go through the financial statements briefly. We do have Q4 of

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2025 as well as Q1 of 2026 in your board for presentation today.

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I'll just go over Q4 right now, but please stop me at any point if you have any questions.

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I'm happy to dive into those. Just for the minutes, the Q4 financials are displayed on the screen for the board members, as well as the bill in your packet. Yep. Thank you. So on the screen, we do have the year-end financial statements. What you can see is the presentation of the budget on the left hand column, actual activity in the middle column, and then the variance.

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between the budget and the actual on the red hand column.

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Where we're starting here is in the Capital Projects Fund.

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This is where the bond fund activity occurs

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and then gets spent from there.

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What we can see in the actual column in the middle,

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if you look under the other sources and uses section,

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the bond proceeds of $6,751,000,

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and that was the amount of the actual bond issuance

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that occurred in 2025. Of those monies, the cost to issue the bonds was $440,000 and then $681,000

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was transferred out of the Capital Projects Fund for the debt service reserve requirements as well

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as operational funds for the admin fund.

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Well, we can standard the expenditure section, the capital

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outlay just above that. There have been no draws yet on the capital project fund. So we haven't paid any,

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we haven't reimbursed or paid for any of that public infrastructure yet. So those project funds

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are sitting in interest bearing account. So if you go above expenditures to the revenues, you can see

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that $142,000 of interest income was earned in 2025. And that bottom, if you drop then down to the

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ending fund balance, here you'll see that the district has 5,772,000 available for

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a project infrastructure reimbursement costs.

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So let me stop there for a minute, Michael, is that, does that sound right to you?

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I mean, I'm wondering why the project has involved a reimbursement

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requests. So what we decided to do on R&TOM is finish all the work that's

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re-inversible and we will be done with that here in about two months and there

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we're just going to do one claim for everything that shows all the draws in

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one. Okay, that that's fine. Brennan is that but the district is paying interest

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on on on this amount right. We're we're earning interest on the

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Samarits. Right. I mean certainly we're paying interest on the bonds that

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were issued but we we are earning interest on those monies that are they're

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in the account. And that was our thought kind of going into it Tom is if we wait

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till the work to get done now we're going to get an extra 100 to 200,000 in

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interest. Okay that's that's what I guess what I meant to say is the the the

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district the bonds are accruing interest as well so there have been that

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offset so Bren you just need to make sure you guys track all that which you

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will I'll be quiet now I'm not an accountant. Thank you. But Tom it is a great

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question. You know we have those money's here for a purpose and just want to

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make sure that everybody's being intentional and they're not missing

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opportunities because they don't understand or don't know.

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And so Michael sounds like you all have a plan and you know and you understand and that's great.

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Yeah we kind of ran through this with you Brennan back in the past.

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We kind of just think with the spaces the majority of the work got done it's just better for us to

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hold off and just do one draw at the end. That's a great plan and it'll reduce your engineering costs.

237
00:19:04,720 --> 00:19:12,860
Alright, so then moving to your debt service fund, here we have the monies that are available

238
00:19:12,860 --> 00:19:14,760
for debt service.

239
00:19:15,000 --> 00:19:20,220
Now, you saw in the Capital Projects Fund there was a transfer out of the fund.

240
00:19:21,100 --> 00:19:26,080
Some of that money was transferred here to the debt service fund, it's $561,000.

241
00:19:26,740 --> 00:19:39,420
The way these bonds are set up, there was no interest payment in 2025, so you'll see that there's no interest expenditures was and that was expected and planned in the bond issuance.

242
00:19:40,180 --> 00:19:49,740
And then we do have some interest earnings on the funds that are sitting in reserve with the debt service fund of about $14,211.

243
00:19:50,260 --> 00:19:55,040
Now, the money that are set aside here are a requirement of the bonds, and so they will

244
00:19:55,040 --> 00:19:59,780
be used to repay the bonds in the future, but they're for the time being required to

245
00:19:59,780 --> 00:20:02,500
just be held in reserve as collateral to the bond holders.

246
00:20:05,500 --> 00:20:08,940
And then moving to the general fund.

247
00:20:09,680 --> 00:20:15,640
So, the general fund, if you look under the other sources and uses section, there was $120,000

248
00:20:15,960 --> 00:20:20,800
that was transferred in at closing from the bonds, and that was anticipated to cover the administrative

249
00:20:20,800 --> 00:20:23,840
of costs of the district for the first few years.

250
00:20:25,120 --> 00:20:31,660
In 2025 total expenditures were $10,966 for administration costs.

251
00:20:32,360 --> 00:20:37,960
So okay, well and under budget of $50,000, so had a lot of budget savings this year,

252
00:20:38,520 --> 00:20:39,800
her last year in 2025.

253
00:20:40,720 --> 00:20:46,520
And then with those monies in reserve to cover future costs, there also is interest income

254
00:20:46,520 --> 00:20:46,980
on that.

255
00:20:46,980 --> 00:20:52,860
and you can see that there was $3,000 and $38 of interest income that was earned in 2025.

256
00:20:54,300 --> 00:20:59,680
So that's a snapshot of how we ended last year of 2025. Any additional questions?

257
00:21:01,020 --> 00:21:07,160
I don't have any now. Okay. All right, well then, let's do, do we have a motion

258
00:21:07,740 --> 00:21:11,420
before moving on to the Q1 finances? Do we have a motion

259
00:21:12,500 --> 00:21:16,660
and accepting the Q4 2025 financial statements for the district.

260
00:21:17,720 --> 00:21:21,180
I motion to accept the Q4 financials for the district.

261
00:21:21,800 --> 00:21:22,280
Second.

262
00:21:23,120 --> 00:21:25,080
All in favor say aye, yes.

263
00:21:25,660 --> 00:21:26,040
Aye.

264
00:21:27,060 --> 00:21:30,080
Thank you motion passes unanimously.

265
00:21:30,420 --> 00:21:37,660
Let's now move to our second action item, which is to consider accepting the Q1 financial statements for calendar year 2026.

266
00:21:38,300 --> 00:21:41,260
Brian, you're the star of the show, so we'll let you

267
00:21:41,260 --> 00:21:41,680
continue.

268
00:21:42,440 --> 00:21:43,740
All right, thank you.

269
00:21:44,800 --> 00:21:48,020
As Tom mentioned, we do have the first quarter financial

270
00:21:48,020 --> 00:21:50,000
statements on your screen.

271
00:21:50,620 --> 00:21:54,320
And this just shows the activity of what we've done over

272
00:21:54,320 --> 00:21:55,160
the last three months.

273
00:21:55,800 --> 00:21:57,440
You'll know that there hasn't been too much.

274
00:21:59,220 --> 00:22:01,000
So we'll dig into that.

275
00:22:01,180 --> 00:22:03,700
So if you look at the Capital Projects Fund,

276
00:22:04,020 --> 00:22:06,240
again, this is the fund where all of the activity

277
00:22:06,240 --> 00:22:13,500
to pay on public infrastructure per our previous conversation if you look at the capital outlay

278
00:22:13,500 --> 00:22:19,260
or the expenditures, you can see that there have been no expenses to date which is anticipated.

279
00:22:20,040 --> 00:22:25,260
The district did have those funds on hand earning interest and you can see in first quarter

280
00:22:25,260 --> 00:22:32,000
there was an additional $51,990 of interest income that the district received and is available for

281
00:22:32,000 --> 00:22:33,660
those infrastructure reimbursements.

282
00:22:36,240 --> 00:22:38,520
So then moving up to the debt service fund.

283
00:22:41,220 --> 00:22:44,640
Similar story, we have those reserves on hand

284
00:22:44,640 --> 00:22:47,400
that were transferred last year at Bond Closing.

285
00:22:48,000 --> 00:22:49,260
There's some interest earnings

286
00:22:50,170 --> 00:22:56,480
that we see up in the revenue section of $5,184.

287
00:22:59,150 --> 00:23:02,740
There is budgeted property taxes for 2026,

288
00:23:02,740 --> 00:23:06,320
but you'll see that we have not the property tax cycles

289
00:23:06,320 --> 00:23:12,640
that we would receive those monies the latter part of the year. So we are where things should be

290
00:23:13,230 --> 00:23:20,120
for 2026 and uncollected to date. And then on the bond interest fund, the way that these bonds

291
00:23:20,120 --> 00:23:27,660
were structured there is not an interest payment in 2026. So even though the bonds are outstanding

292
00:23:27,660 --> 00:23:32,400
and we're accruing interest, the way they were structured from a repayment standpoint is that there

293
00:23:32,400 --> 00:23:37,320
There are no interest payments in 2026, and so there was nothing budgeted, and there's

294
00:23:37,320 --> 00:23:44,540
been nothing spent to date just highlighting that there was nothing budgeted and nothing

295
00:23:44,540 --> 00:23:44,820
spent.

296
00:23:47,140 --> 00:23:52,700
All right, and then lastly, here we have our general fund with our administrative costs.

297
00:23:56,370 --> 00:24:01,190
Funds, as I mentioned previously, are a carryover from last year that were set aside at closing.

298
00:24:02,090 --> 00:24:10,090
We do have first quarter $1,089 of interest income and those are the funds that are available

299
00:24:10,090 --> 00:24:11,210
then to pay the costs.

300
00:24:11,550 --> 00:24:19,430
And to date you can see that the district has spent $17,307 total in administrative costs.

301
00:24:21,350 --> 00:24:26,350
Just as a reminder, from a legal standpoint there was a lot of meetings and a lot of work

302
00:24:26,350 --> 00:24:29,370
that was accomplished at the beginning of the year with the dissolution.

303
00:24:29,370 --> 00:24:38,350
and those items. So legal is trending higher than maybe a normal curve. And so we might revise

304
00:24:38,350 --> 00:24:45,790
that expectation of legal costs for 2026 all in. But generally tracking under budget for the year

305
00:24:45,790 --> 00:24:52,310
and expect to come in under budget. And if not, later this year we can have a conversation with

306
00:24:52,310 --> 00:24:55,810
you all about amending the budget if there's a need to go over that $50,000 budget.

307
00:24:57,610 --> 00:25:02,270
Yeah, we'll talk in the administrative nonex time where we stand on the dissolution.

308
00:25:02,690 --> 00:25:11,170
That's been kind of the issue that for the legal expenses this year is trying to get districts two and three dissolved.

309
00:25:12,030 --> 00:25:15,630
And there's quite a process of that in the state of Utah.

310
00:25:16,010 --> 00:25:21,530
And so, you know, assuming that this, you know, hopefully is wrapped up now.

311
00:25:23,410 --> 00:25:27,230
legal fee should be at a minimum for the rest of the year.

312
00:25:31,350 --> 00:25:32,470
Any questions from the board?

313
00:25:33,410 --> 00:25:34,030
I have none.

314
00:25:36,390 --> 00:25:37,690
Thank you, Grant.

315
00:25:37,910 --> 00:25:39,190
Appreciate the presentation.

316
00:25:39,530 --> 00:25:40,050
Very helpful.

317
00:25:40,510 --> 00:25:44,490
Do we have a motion accepting the Q1-2026 financial statements for the district?

318
00:25:45,730 --> 00:25:48,970
I motion to accept the Q1-2026 financial statements.

319
00:25:50,210 --> 00:25:51,010
It's okay.

320
00:25:51,690 --> 00:25:53,210
All of their say aye.

321
00:25:53,350 --> 00:25:53,630
Yes.

322
00:25:54,070 --> 00:25:54,590
Aye.

323
00:25:54,670 --> 00:25:54,830
Aye.

324
00:25:55,550 --> 00:25:56,350
Thank you.

325
00:25:56,450 --> 00:25:58,290
Motion passes unanimously.

326
00:25:58,830 --> 00:26:04,010
Let's move to our third action item, which is to approve and ratify the district engagement

327
00:26:04,010 --> 00:26:10,150
of cleaner hangarment to perform state requirements for 2025.

328
00:26:11,570 --> 00:26:18,290
As you know, district did engage cleaner hangarment to perform state required audit for the district

329
00:26:18,290 --> 00:26:27,190
for 2025, an engagement letter was signed on January 26th, and that was in your board packet.

330
00:26:27,790 --> 00:26:33,550
So, unless there are questions, we do need a motion of rooming and ratifying the district's

331
00:26:33,550 --> 00:26:38,870
engagement of cleaner, hay or rent, perform auditing services for 2020 to remind for the district.

332
00:26:39,610 --> 00:26:40,930
I'm motion to approve.

333
00:26:43,970 --> 00:26:44,250
Second.

334
00:26:46,770 --> 00:26:47,750
Second. All second.

335
00:26:47,750 --> 00:26:56,930
Thank you all and thank you all for the say aye, yes, thank you motion passes unanimously.

336
00:26:57,150 --> 00:27:03,570
Let's move to our administrative non-nationions just to remind her each of the board members.

337
00:27:04,350 --> 00:27:14,450
You guys have to do your open and public meetings act training and give the certificate for that.

338
00:27:14,450 --> 00:27:25,210
That's on an annual basis, and so we've provided you with the web address and link where

339
00:27:25,210 --> 00:27:29,350
you can go get that done with this Utah State Auditor once you're done with that training

340
00:27:29,350 --> 00:27:34,690
usually takes about 20 minutes, and then there's a certificate that's issued that you'll

341
00:27:34,690 --> 00:27:36,030
need to forward on to Shannon.

342
00:27:37,170 --> 00:27:42,330
So if you have any questions, you can call Shannon and she can help you through her, but

343
00:27:42,330 --> 00:27:48,810
does need to be done before the end of the year. We don't like to chase people down right at the

344
00:27:48,810 --> 00:27:51,490
end of the year, so get that done as soon as you can.

345
00:27:53,890 --> 00:27:56,230
Although it's not listed on our agenda,

346
00:27:56,530 --> 00:28:05,350
I just want to give you an update on the dissolution. The Utah statute requires that the creating entity

347
00:28:05,350 --> 00:28:10,010
He also authorized the dissolution through a resolution.

348
00:28:11,330 --> 00:28:17,770
The city, the Grantsville city did, we put that on the agenda and that was approved in

349
00:28:17,770 --> 00:28:24,050
March at the resolution and now we're trying to follow up with the city recorder to make

350
00:28:24,050 --> 00:28:30,070
sure that she's filed the dissolution package with Lieutenant Governor's office so the Lieutenant

351
00:28:30,070 --> 00:28:33,650
Governor can issue a certificate of dissolution.

352
00:28:33,650 --> 00:28:38,310
And we anticipate getting that here shortly.

353
00:28:39,270 --> 00:28:44,410
That's where we are with the dissolution of district number numbers two and three.

354
00:28:45,310 --> 00:28:46,650
Do you have any questions about that?

355
00:28:47,690 --> 00:28:48,410
I do not know.

356
00:28:49,810 --> 00:28:50,370
Okay.

357
00:28:50,930 --> 00:28:55,870
Well, are there any other matters that district board members would like to bring up today?

358
00:28:56,190 --> 00:28:57,850
Non-administrative action items?

359
00:28:58,950 --> 00:29:00,250
I do not have any, Tom.

360
00:29:02,170 --> 00:29:05,690
All right, do we have a motion to adjourn?

361
00:29:05,690 --> 00:29:07,530
I motion to adjourn.

362
00:29:08,330 --> 00:29:08,970
Second.

363
00:29:09,950 --> 00:29:11,410
All in favor say yes.

364
00:29:12,210 --> 00:29:12,610
Aye.

365
00:29:13,810 --> 00:29:19,250
Thank you motion passes unanimously and we stand adjourned.

366
00:29:19,710 --> 00:29:21,550
Go ahead and stop the recording.

367
00:29:21,550 --> 00:29:22,010
Thank you very much for your time.

368
00:29:24,230 --> 00:29:24,690
Thank you very much.

369
00:29:24,690 --> 00:29:24,710
Thank you very much.

370
00:29:24,730 --> 00:29:24,870
Thank you very much.