[This transcript was generated automatically from audio using AI and hasn't been reviewed by a person -- it can contain mistakes, including plausible-sounding sentences that were never actually said. Treat it as a starting point, not a verbatim record.]

[0:14] 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.
[0:48] member.
[0:52] Michael House Board Member.
[0:56] Nick Smith Board Member.
[0:59] Brendan Campbell District Accountant.
[1:02] And Derek Campbell District Accountant.
[1:06] Thanks everybody.
[1:08] We're just going to follow our agenda today.
[1:11] That everybody received the first.
[1:13] We'll go to our first preliminary action.
[1:16] I know, which is we're going to elect a
[1:19] district share today, although not specifically required by the governing document.
[1:26] We recommend the district does elect officers.
[1:31] We have Michael House who is currently serving as, I believe, the district vice chair.
[1:38] Or no, just either the district vice chair secretary and Julian as well as, I believe, the district
[1:47] vice chair secretary, one of the two.
[1:48] And so we do have a vacancy and we need to elect a district chair.
[1:56] So I'm going to turn it over to the board to see who they would like to elect as a district
[2:02] chair.
[2:04] I'm okay with taking the position if we need to.
[2:09] Okay.
[2:10] Well, I mean, we can elect, we can elect, we'll do two elections then.
[2:15] if you want to nominate Michael House's district chair and I think Nick
[2:23] would need to be either the vice chair and then we can do that or we can
[2:32] lack Nick as the district chair so it's up to the board if they want to do Nick
[2:40] Julian you guys got any constraints no I think you should be chair Nick should
[2:46] to be vice chair makes sense to me.
[2:48] Yep, I'm good with that.
[2:51] Okay, great.
[2:52] So, let's have a motion to elect.
[2:58] Well, first of all, let me just tell you that as district chair,
[3:02] this is kind of the chief executive and administrative officer of the district.
[3:06] And, you know, duties include overseeing the board meetings
[3:10] and the general administration of the district.
[3:13] our office is district council will generally run the board meetings under the direction of the district chair, you know, for convenience.
[3:23] So do we have a motion nominating Michael House as district chair for desert edge public.
[3:34] All motion.
[3:35] All motion.
[3:36] All motion.
[3:38] Second.
[3:41] Second.
[3:41] All right.
[3:43] All in various areas.
[3:45] I.
[3:46] Yeah.
[3:47] Thank you.
[3:48] Motion.
[3:49] Motion passes by unanimous consent and Michael House is elected as district chair to serve in
[3:57] accordance with the bylaws.
[3:58] Let's also, we can entertain a motion to elect Nick Smith as District Vice Chair.
[4:09] I motion to have Nick Smith as the Vice Chair.
[4:14] Second.
[4:15] Second.
[4:15] All second.
[4:17] All in favor say areas.
[4:19] Hi.
[4:21] Thank you.
[4:23] Nick Smith is now elected as District Vice Chair, served in accordance with the
[4:28] bylaws in Julian, you will remain as a district secretary.
[4:36] So the next action item on our preliminary action item is oaths of office.
[4:43] In Utah, as you guys recall, state officers are required both by the federal state
[4:49] Constitution has to take an oath of office in Utah. The Constitution of Utah specifies
[4:59] the wording that this oath is to take. And I'm going to turn the time over to Shanna and
[5:05] she will administer the oath of office for both Michael and Nick Smith.
[5:18] I'm going to end up sending you guys the original or a version you need to find it and have
[5:23] it notarized.
[5:24] So, if you'll just repeat after me, I do solemnly swear or affirm that I will support.
[5:31] Can we?
[5:31] I do solemnly swear and affirm that I will support.
[5:35] Oh, Bay and defend the Constitution of the United States.
[5:39] Обaeand defend the Constitution of the United States and the Constitution of the State of Utah
[5:44] and the Constitution of the State of Utah and that I will discharge the duties of my
[5:50] office with fidelity and I will discharge the you say that again the duties of my office
[5:59] with fidelity. And the duties of my office with fidelity. Okay. Yeah, can we put that up on the
[6:06] restrict view so they can they can just read it there. That would be easier. We'll share our screen
[6:11] here so you can look at that. Anyway, thanks, Michael. That is sufficient. Now we'll do
[6:19] Ned, here hold on one second, please, this week.
[6:24] This one?
[6:24] Nope, oh, it's a lot of it.
[6:29] I want to under it.
[6:29] Sorry.
[6:30] No, it's okay.
[6:32] Nick's got a memory like an elephant.
[6:34] He's good.
[6:34] I'm sure he's better than I am.
[6:36] Oh, did I see my screen?
[6:37] No.
[6:38] I look pressure.
[6:39] Oh, yeah, Nick.
[6:40] I see a lot of pressure going on there.
[6:42] Does he mean it?
[6:43] I
[6:45] look at the bottom.
[6:47] I'll share.
[6:48] Yeah.
[6:49] And then that one.
[6:51] Okay. Okay. Can you see the screen now, Nick?
[6:57] I can. Okay. Uh, China. Go ahead. I do solemnly swear or firm that I will support obeying the
[7:05] 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
[7:16] support obey and defend the Constitution of the United States and the Constitution of the state of Utah and that I will
[7:22] discharge the duties of my office with fidelity.
[7:26] Perfect. Thank you. So Shannon is going to be or Hannah will be sending you, you also
[7:34] have to do ethics, disclosures, and we'll send you the form in the state, each year board
[7:44] members have to disclose any conflicts that they have with the district like for
[7:54] example one conflict could be the fact that if you own you know if you're
[7:59] you're not only a board member but if you're a member of the development team
[8:04] that has equity in the company that could be a dispute that isn't conflict but
[8:09] but that doesn't disqualify you from being a board member.
[8:15] It just means you have to disclose the conflict.
[8:19] That's all Utah requires.
[8:20] It's just a disclosure.
[8:22] So we'll send you those forums.
[8:25] Michael, you've already filled one out as a vice chair, I think.
[8:30] But we'll send you a new one for your new role as district chair.
[8:37] And Nick, we'll send you a forum as well.
[8:39] and we can, Shana can help you feel that out if you have questions, okay? Sounds great. Sounds good.
[8:48] Okay, thanks, guys. Let's move now to our, well, I don't think we have a,
[8:57] let's see, we do, we do have, those are our preliminary action items.
[9:02] We are going to have a public comment portion of our meeting.
[9:09] This is required to understate statute, but we need a motion to open the meeting for public comment.
[9:16] I motion to push the meeting to open public comment.
[9:21] Second.
[9:23] Second.
[9:25] All in here say yes.
[9:28] Hi.
[9:28] Yes.
[9:31] Thank you.
[9:32] motion passes unanimously. The public comment portion of the meeting is now open.
[9:39] We can confirm
[9:41] that there are no members of the general public participating in the meeting here at the offices
[9:49] of York Hell. We do not see any members of the public participating via the Zoom link. So we can
[9:57] now entertainer motion to close the public portion of the door meeting.
[10:04] I motion to close the public portion of the board meeting.
[10:08] Second.
[10:12] Second. All in favor say aye. Aye.
[10:16] Aye.
[10:19] Thank you. Motion passes unanimously.
[10:22] The public comment portion of the meeting is now closed.
[10:25] Let's move to our consent items. First is to approve the draft minutes.
[10:29] the board meeting on January 14th, 2026, the board did receive and it's packet the proposed
[10:38] draft minutes from last board meeting. Are there any questions about those minutes?
[10:44] I have none. Okay, seeing none, do we have a motion to adopt the minutes of January 14th,
[10:50] 2026 board meeting? I motion to adopt the minutes from the January board meeting.
[10:57] 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.
[11:18] there have been no payment applications.
[11:23] The Zon Funds have been fully dispersed,
[11:26] so we'll go ahead and remove that from our consent item.
[11:31] Let's move to our action items.
[11:34] What?
[11:35] Is that correct?
[11:37] No, I think you're confusing different districts.
[11:39] This one hasn't yet used its bond funds
[11:41] and we did have some administrative requisitions
[11:44] this. Oh, they are in the board packet. Sorry. All right. Well, the infrastructure and acquisition
[11:57] reimbursement agreement does require that the board ratify and approve any requisitions
[12:04] made, request made since the last board meeting. And as Brennan pointed out, those are in
[12:12] the board packet. Brennan do you want to go over those and then we can entertain a motion to
[12:19] approve those? Yeah, absolutely.
[12:26] So in the board packet we do have all of the district expenditures
[12:29] for the first quarter. What you'll see on the screen is the summary of those expenditures.
[12:37] For Q1 of 2026, all of the expenditures were administrative in nature, so all the
[12:43] requisitions that we prepared were from the admin fund. We did not have to Tom's point.
[12:49] We didn't have any capital requisitions in Q1 of 2026, but these are, there's the requirements
[12:58] under the infrastructure acquisition agreement, but also just from a Utah statutory requirement
[13:06] we do need to go through and display every expense that a district incurs, so each
[13:13] quarter will provide these reports so you can see all the money that you've approved
[13:17] and that we've spent. But nonetheless, here's a summary of those. Do you have any questions
[13:21] about the payments that were made in Q1? I do not. Okay.
[13:30] Thanks, Brenn. Do we have a motion
[13:32] to approve and ratify all payment applications and requisitions made since the last board
[13:39] or maybe Q1.
[13:41] I motion to approve.
[13:44] Second.
[13:45] Second.
[13:46] All in favor say aye aye yes.
[13:49] Aye.
[13:49] We
[13:59] need Nick and Diane.
[14:02] I heard Julian on my, or Nick on my side.
[14:05] Yeah.
[14:06] Okay.
[14:07] I didn't hear Julian.
[14:11] I was muted.
[14:12] Aye.
[14:14] Great.
[14:14] Thank you.
[14:15] Motion passes you there.
[14:16] Let's now move to our action items.
[14:20] The first action item is to consider accepting.
[14:23] Q4 financial statements for 2025. The board did receive in this packet the
[14:29] Q4 financial statements for the district. I'm going to turn the time over to
[14:33] Brendan to go over those financials and answer any questions from the board.
[14:41] Thanks Tom. I will go through the financial statements briefly. We do have Q4 of
[14:48] 2025 as well as Q1 of 2026 in your board for presentation today.
[14:54] I'll just go over Q4 right now, but please stop me at any point if you have any questions.
[15:00] 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.
[15:29] between the budget and the actual on the red hand column.
[15:33] Where we're starting here is in the Capital Projects Fund.
[15:36] This is where the bond fund activity occurs
[15:41] and then gets spent from there.
[15:44] What we can see in the actual column in the middle,
[15:47] if you look under the other sources and uses section,
[15:50] the bond proceeds of $6,751,000,
[15:55] and that was the amount of the actual bond issuance
[15:58] that occurred in 2025. Of those monies, the cost to issue the bonds was $440,000 and then $681,000
[16:09] was transferred out of the Capital Projects Fund for the debt service reserve requirements as well
[16:15] as operational funds for the admin fund.
[16:20] Well, we can standard the expenditure section, the capital
[16:23] outlay just above that. There have been no draws yet on the capital project fund. So we haven't paid any,
[16:30] we haven't reimbursed or paid for any of that public infrastructure yet. So those project funds
[16:36] are sitting in interest bearing account. So if you go above expenditures to the revenues, you can see
[16:42] that $142,000 of interest income was earned in 2025. And that bottom, if you drop then down to the
[16:51] ending fund balance, here you'll see that the district has 5,772,000 available for
[17:02] a project infrastructure reimbursement costs.
[17:06] So let me stop there for a minute, Michael, is that, does that sound right to you?
[17:12] I mean, I'm wondering why the project has involved a reimbursement
[17:21] requests. So what we decided to do on R&TOM is finish all the work that's
[17:26] re-inversible and we will be done with that here in about two months and there
[17:30] we're just going to do one claim for everything that shows all the draws in
[17:34] one. Okay, that that's fine. Brennan is that but the district is paying interest
[17:41] on on on this amount right. We're we're earning interest on the
[17:49] Samarits. Right. I mean certainly we're paying interest on the bonds that
[17:55] were issued but we we are earning interest on those monies that are they're
[18:00] in the account. And that was our thought kind of going into it Tom is if we wait
[18:04] till the work to get done now we're going to get an extra 100 to 200,000 in
[18:08] interest. Okay that's that's what I guess what I meant to say is the the the
[18:13] district the bonds are accruing interest as well so there have been that
[18:18] offset so Bren you just need to make sure you guys track all that which you
[18:23] will I'll be quiet now I'm not an accountant. Thank you. But Tom it is a great
[18:30] question. You know we have those money's here for a purpose and just want to
[18:33] make sure that everybody's being intentional and they're not missing
[18:37] opportunities because they don't understand or don't know.
[18:39] And so Michael sounds like you all have a plan and you know and you understand and that's great.
[18:45] Yeah we kind of ran through this with you Brennan back in the past.
[18:48] We kind of just think with the spaces the majority of the work got done it's just better for us to
[18:52] hold off and just do one draw at the end. That's a great plan and it'll reduce your engineering costs.
[19:04] Alright, so then moving to your debt service fund, here we have the monies that are available
[19:12] for debt service.
[19:15] Now, you saw in the Capital Projects Fund there was a transfer out of the fund.
[19:21] Some of that money was transferred here to the debt service fund, it's $561,000.
[19:26] 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.
[19:40] 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.
[19:50] Now, the money that are set aside here are a requirement of the bonds, and so they will
[19:55] be used to repay the bonds in the future, but they're for the time being required to
[19:59] just be held in reserve as collateral to the bond holders.
[20:05] And then moving to the general fund.
[20:09] So, the general fund, if you look under the other sources and uses section, there was $120,000
[20:15] that was transferred in at closing from the bonds, and that was anticipated to cover the administrative
[20:20] of costs of the district for the first few years.
[20:25] In 2025 total expenditures were $10,966 for administration costs.
[20:32] So okay, well and under budget of $50,000, so had a lot of budget savings this year,
[20:38] her last year in 2025.
[20:40] And then with those monies in reserve to cover future costs, there also is interest income
[20:46] on that.
[20:46] and you can see that there was $3,000 and $38 of interest income that was earned in 2025.
[20:54] So that's a snapshot of how we ended last year of 2025. Any additional questions?
[21:01] I don't have any now. Okay. All right, well then, let's do, do we have a motion
[21:07] before moving on to the Q1 finances? Do we have a motion
[21:12] and accepting the Q4 2025 financial statements for the district.
[21:17] I motion to accept the Q4 financials for the district.
[21:21] Second.
[21:23] All in favor say aye, yes.
[21:25] Aye.
[21:27] Thank you motion passes unanimously.
[21:30] Let's now move to our second action item, which is to consider accepting the Q1 financial statements for calendar year 2026.
[21:38] Brian, you're the star of the show, so we'll let you
[21:41] continue.
[21:42] All right, thank you.
[21:44] As Tom mentioned, we do have the first quarter financial
[21:48] statements on your screen.
[21:50] And this just shows the activity of what we've done over
[21:54] the last three months.
[21:55] You'll know that there hasn't been too much.
[21:59] So we'll dig into that.
[22:01] So if you look at the Capital Projects Fund,
[22:04] again, this is the fund where all of the activity
[22:06] to pay on public infrastructure per our previous conversation if you look at the capital outlay
[22:13] or the expenditures, you can see that there have been no expenses to date which is anticipated.
[22:20] The district did have those funds on hand earning interest and you can see in first quarter
[22:25] there was an additional $51,990 of interest income that the district received and is available for
[22:32] those infrastructure reimbursements.
[22:36] So then moving up to the debt service fund.
[22:41] Similar story, we have those reserves on hand
[22:44] that were transferred last year at Bond Closing.
[22:48] There's some interest earnings
[22:50] that we see up in the revenue section of $5,184.
[22:59] There is budgeted property taxes for 2026,
[23:02] but you'll see that we have not the property tax cycles
[23:06] that we would receive those monies the latter part of the year. So we are where things should be
[23:13] for 2026 and uncollected to date. And then on the bond interest fund, the way that these bonds
[23:20] were structured there is not an interest payment in 2026. So even though the bonds are outstanding
[23:27] and we're accruing interest, the way they were structured from a repayment standpoint is that there
[23:32] There are no interest payments in 2026, and so there was nothing budgeted, and there's
[23:37] been nothing spent to date just highlighting that there was nothing budgeted and nothing
[23:44] spent.
[23:47] All right, and then lastly, here we have our general fund with our administrative costs.
[23:56] Funds, as I mentioned previously, are a carryover from last year that were set aside at closing.
[24:02] We do have first quarter $1,089 of interest income and those are the funds that are available
[24:10] then to pay the costs.
[24:11] And to date you can see that the district has spent $17,307 total in administrative costs.
[24:21] Just as a reminder, from a legal standpoint there was a lot of meetings and a lot of work
[24:26] that was accomplished at the beginning of the year with the dissolution.
[24:29] and those items. So legal is trending higher than maybe a normal curve. And so we might revise
[24:38] that expectation of legal costs for 2026 all in. But generally tracking under budget for the year
[24:45] and expect to come in under budget. And if not, later this year we can have a conversation with
[24:52] you all about amending the budget if there's a need to go over that $50,000 budget.
[24:57] Yeah, we'll talk in the administrative nonex time where we stand on the dissolution.
[25:02] That's been kind of the issue that for the legal expenses this year is trying to get districts two and three dissolved.
[25:12] And there's quite a process of that in the state of Utah.
[25:16] And so, you know, assuming that this, you know, hopefully is wrapped up now.
[25:23] legal fee should be at a minimum for the rest of the year.
[25:31] Any questions from the board?
[25:33] I have none.
[25:36] Thank you, Grant.
[25:37] Appreciate the presentation.
[25:39] Very helpful.
[25:40] Do we have a motion accepting the Q1-2026 financial statements for the district?
[25:45] I motion to accept the Q1-2026 financial statements.
[25:50] It's okay.
[25:51] All of their say aye.
[25:53] Yes.
[25:54] Aye.
[25:54] Aye.
[25:55] Thank you.
[25:56] Motion passes unanimously.
[25:58] Let's move to our third action item, which is to approve and ratify the district engagement
[26:04] of cleaner hangarment to perform state requirements for 2025.
[26:11] As you know, district did engage cleaner hangarment to perform state required audit for the district
[26:18] for 2025, an engagement letter was signed on January 26th, and that was in your board packet.
[26:27] So, unless there are questions, we do need a motion of rooming and ratifying the district's
[26:33] engagement of cleaner, hay or rent, perform auditing services for 2020 to remind for the district.
[26:39] I'm motion to approve.
[26:43] Second.
[26:46] Second. All second.
[26:47] Thank you all and thank you all for the say aye, yes, thank you motion passes unanimously.
[26:57] Let's move to our administrative non-nationions just to remind her each of the board members.
[27:04] You guys have to do your open and public meetings act training and give the certificate for that.
[27:14] That's on an annual basis, and so we've provided you with the web address and link where
[27:25] you can go get that done with this Utah State Auditor once you're done with that training
[27:29] usually takes about 20 minutes, and then there's a certificate that's issued that you'll
[27:34] need to forward on to Shannon.
[27:37] So if you have any questions, you can call Shannon and she can help you through her, but
[27:42] does need to be done before the end of the year. We don't like to chase people down right at the
[27:48] end of the year, so get that done as soon as you can.
[27:53] Although it's not listed on our agenda,
[27:56] I just want to give you an update on the dissolution. The Utah statute requires that the creating entity
[28:05] He also authorized the dissolution through a resolution.
[28:11] The city, the Grantsville city did, we put that on the agenda and that was approved in
[28:17] March at the resolution and now we're trying to follow up with the city recorder to make
[28:24] sure that she's filed the dissolution package with Lieutenant Governor's office so the Lieutenant
[28:30] Governor can issue a certificate of dissolution.
[28:33] And we anticipate getting that here shortly.
[28:39] That's where we are with the dissolution of district number numbers two and three.
[28:45] Do you have any questions about that?
[28:47] I do not know.
[28:49] Okay.
[28:50] Well, are there any other matters that district board members would like to bring up today?
[28:56] Non-administrative action items?
[28:58] I do not have any, Tom.
[29:02] All right, do we have a motion to adjourn?
[29:05] I motion to adjourn.
[29:08] Second.
[29:09] All in favor say yes.
[29:12] Aye.
[29:13] Thank you motion passes unanimously and we stand adjourned.
[29:19] Go ahead and stop the recording.
[29:21] Thank you very much for your time.
[29:24] Thank you very much.
[29:24] Thank you very much.
[29:24] Thank you very much.