[0:01] Okay, we're going to call to order the Lohman Heights Public Infrastructure District number one special meeting. The meeting is being held at the location of 547 was 1850 North in Harrisville, Utah, 84, 84, 404. I'm going to call to order the special meeting and it's beginning at 2.0.

[0:29] one PM. My name is Shana Bedard. I'm going to conduct a roll call if you guys can all introduce

[0:37] yourselves for the meeting. I've been very board member.

[0:44] Not ras band board member.

[0:47] I'm Jolly district council.

[0:52] Brendan Campbell district, district accountant

[0:56] and Derek Campbell district accountant. Okay we can move right into our preliminary action

[1:02] items and we have one and that's to approve the draft minutes of the board meeting held on July 7th,

[1:07] 2026. Do I have a motion to approve those meetings that were provided to in your packet?

[1:14] I'm motion to approve the draft minutes from the meeting held on July 7th.

[1:21] A second. We have a second. Thank you. Do we have an IRS to pass that?

[1:30] The motion passes by quorum of the board.

[1:33] We'll move on to the public hearing portion.

[1:38] We're having public hearing to take public comment on the tentative operating and capital

[1:42] budget adopted on June 12, 2026, which is proposed to be adopted as the final budget for calendar

[1:48] year 2026 for Lohman Heights Public Infrastructure District number one.

[1:53] Do I have a motion to open the public hearing?

[1:55] I motion to open the public hearing.

[2:00] One second.

[2:02] Thank you all in favor.

[2:05] Aye.

[2:07] Okay, the hearing is open for public comment and questions.

[2:11] I will ask Brandon if there's any members of the public present at the anchor location.

[2:17] Do you want them to take a number?

[2:18] We've got to line out the door.

[2:21] No, there's nobody here.

[2:22] There's nobody here.

[2:24] There's nobody here on site at your cowl and there's nobody on the zoom meeting that's from the public.

[2:31] So there's no comments or questions to be presented.

[2:35] Can we have a motion to close the public hearing?

[2:39] A motion to close the public hearing.

[2:42] Second.

[2:44] Thank you. All in favor?

[2:46] Hi.

[2:48] The public hearing is now closed.

[2:50] We'll move on to our one and only action item and that's to consider adoption of Resolution

[2:56] 202609 adopting a final budget for calendar year 2026 for Loman Heights Public Infrastructure

[3:01] District number one.

[3:03] The budget was provided to you as it was changed and I'll turn the time over to Brendan

[3:08] to go over the changes that were made since the tentative budget was adopted prior to funding.

[3:15] Or sorry or Derek.

[3:17] I'll take this one.

[3:20] We're like tag team wrestlers. We just tap each other and see who comes in.

[3:25] All right. As Shannon mentioned, we did on June 12th adopt a tentative budget. Today's

[3:33] purpose is to adopt the final budget which once approved then we will file with the state and

[3:39] meet that compliance requirement that we have. From the time that we had the tentative budget adopted

[3:46] to today. We did have the bond closing and so those numbers that we had originally put into the tentative budget were the estimated numbers based on what maybe the bond issuance was going to be.

[4:00] But now that the bonds have issued, we know what the numbers are and so we have built a final budget based on the final bond closing numbers.

[4:09] So I will run through very briefly what some of those changes were.

[4:13] As you know, when you go through the bond issuance process there's just iteration after iteration

[4:18] as small things change and so they're inherently is going to be a difference between those

[4:24] original projections and then the final bond issuance but again I'll briefly walk through

[4:29] some of the changes.

[4:30] If you have any questions please stop me otherwise I'm just going to buzz through it.

[4:35] All right, so on your screen we're going to start with our capital projects fund.

[4:40] This is the fund where we see the action, we see the bond issuance, bond proceeds come in and then we see that disperse out or make payments.

[4:51] So the column on the left is the tentative budget that we adopted in June and the right hand column is the final budget based on again the bond actual bond issuance.

[5:01] So starting in the other sources and uses section, other sources and uses section to many S's in that sentence.

[5:08] You can see that the bond proceeds amount, there was a couple of million dollars decrease

[5:15] from 44 million down to 42 million in bond proceeds, and with that decrease in proceeds

[5:21] that just basically flows through.

[5:23] So you can see that the cost to issue the bonds below bond proceeds then decreases by about

[5:30] $10,000.

[5:31] The amount transferred to the general fund for working capital decreased about $18,000 and then the amount needed however in the bond debt service fund did increase to $10.1 million.

[5:45] And we'll look at the debt service fund and the general fund momentarily to see where those monies went.

[5:51] And also as a result of that, we decreased interest income at the top under revenues by

[6:00] about 26,000.

[6:01] That's really just a placeholder to catch any potential interest earnings before the

[6:05] payout.

[6:06] But we do see the capital outlay here, $31.6 million, then budgeted for developer available

[6:16] reimbursement monies.

[6:19] Now moving from the Capital Project Fund to the debt service fund, in the previous fund,

[6:25] we saw those monies transferred to the debt service fund, and that's here in that

[6:29] other sources and uses section in the middle.

[6:31] You can see that $10.1 million, and those were based on the required capitalized interest

[6:37] in debt service reserve amounts.

[6:39] So if you look down on the bottom section under components of ending fund balance,

[6:47] you'll see that capitalized interest.

[6:49] That was the main driver for the increase of the transfer to the debt service fund.

[6:57] When we went to final bond issuance, there was a need to put more money into that capitalized interest bucket,

[7:02] which really just pays the interest payments for the first two or three years at the bonds.

[7:09] As a result of the par amount coming down, jumping up, we do see the interest expense going

[7:18] down.

[7:18] So we had originally bottled to $706,000, it went down to $601,900, but because we pulled

[7:28] more money into the debt service fund because of that capitalized interest, we did increase

[7:32] the interesting come up there at the top under revenues, one from 97,000 up to 130.

[7:38] And then lastly, we have our general fund, oh, forgot to mention one thing.

[7:46] In our expenditure section under the debt service fund, we had originally put the trustee

[7:51] fees and the dissemination, dissemination, agent fees in that debt service fund, but because

[7:59] As they're being funded from the capitalized interest, we felt it was appropriate to just

[8:02] put it up into the general fund where that capitalized, sorry, it will be paid from the

[8:06] working capital fund.

[8:08] And the working capital fund is how we pay all the administrative costs.

[8:11] And because that's all up in the general fund, we felt it was appropriate to put those two

[8:16] fees, which are administrative in nature, up under the general fund.

[8:20] So we actually zeroed those out and moved them up.

[8:23] And if you're looking at the general fund, you can see those two new line items, the trusty

[8:28] fee in the dissemination agent. Other than that, you know, interest didn't change and then

[8:33] we did decrease the amount put aside for the working capital down to $135,000. I realize

[8:40] I blazed through that. I probably put you to sleep anyway as I did that, but as you've

[8:46] looked at these and as you've heard the things I've talked about, any questions, any concerns,

[8:50] any final adjustments you might want to make to the budget.

[8:55] No, I think we're good. I mean, I know we all know this on our end, but just to make sure

[8:59] were all in the same page. The main reason for these changes is because we ultimately

[9:03] collateraled well and didn't, and we're able to raise more than we may have needed, right?

[9:10] So we actually pulled the commercial piece out of it, which obviously brought our bond proceeds

[9:13] down. And we also pre-move more money into that capitalized interest to, again, bring the

[9:19] project fund down just because we don't want to be paying all that interest on it, right? So,

[9:24] So logically that's the main reason we got to where we are just because we ultimately didn't need the proceeds that we were perhaps capable of raising.

[9:34] Yeah, so great result from the bond issuance, but yeah, I had because of those reasons had those changes in the budget.

[9:43] So I think we're good.

[9:46] All right.

[9:50] All right, and with that, then we can see if there's a motion to adopt resolution 202609

[9:59] approving the final budget for calendar year 2026 for Lohman Heights Public Infrastructure District number one.

[10:06] I motion to approve resolution 2026-09, which is the final budget for calendar year 2026 for Lohman Heights.

[10:16] public infrastructure district number one. Second. All in favor? All right the motion passes unanimously.

[10:28] We'll move on to administrative non-action items. This is where we can have open meeting

[10:32] discussion with the board members for any public infrastructure district business that's not on the

[10:38] agenda. Is there any business that needs to be brought up by the board during this meeting?

[10:43] I don't think so. I think we're good. I will let you know we do need to schedule future

[10:55] meetings one in November and then one in December for the 2027 budgets. We wanted to wait

[11:01] till after this meeting before sending out dates but those will be sent out to you to

[11:07] re-evalibility. At this point we can take a motion to adjourn the meeting. I'm

[11:15] motion to adjourn today's meeting. The second. All in favor? All right. All right.

[11:24] The meeting is adjourned at 2.12 p.m. Thank you everybody. Thank you. Thank you.

Special Meeting

Transcript