1
00:00:01,200 --> 00:00:29,980
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.

2
00:00:29,980 --> 00:00:37,940
one PM. My name is Shana Bedard. I'm going to conduct a roll call if you guys can all introduce

3
00:00:37,940 --> 00:00:42,180
yourselves for the meeting. I've been very board member.

4
00:00:44,620 --> 00:00:46,100
Not ras band board member.

5
00:00:47,460 --> 00:00:49,320
I'm Jolly district council.

6
00:00:52,470 --> 00:00:55,210
Brendan Campbell district, district accountant

7
00:00:56,050 --> 00:01:02,670
and Derek Campbell district accountant. Okay we can move right into our preliminary action

8
00:01:02,670 --> 00:01:07,930
items and we have one and that's to approve the draft minutes of the board meeting held on July 7th,

9
00:01:07,930 --> 00:01:13,830
2026. Do I have a motion to approve those meetings that were provided to in your packet?

10
00:01:14,470 --> 00:01:20,270
I'm motion to approve the draft minutes from the meeting held on July 7th.

11
00:01:21,250 --> 00:01:27,370
A second. We have a second. Thank you. Do we have an IRS to pass that?

12
00:01:30,030 --> 00:01:32,390
The motion passes by quorum of the board.

13
00:01:33,630 --> 00:01:36,050
We'll move on to the public hearing portion.

14
00:01:38,290 --> 00:01:42,630
We're having public hearing to take public comment on the tentative operating and capital

15
00:01:42,630 --> 00:01:48,590
budget adopted on June 12, 2026, which is proposed to be adopted as the final budget for calendar

16
00:01:48,590 --> 00:01:53,450
year 2026 for Lohman Heights Public Infrastructure District number one.

17
00:01:53,990 --> 00:01:55,750
Do I have a motion to open the public hearing?

18
00:01:55,750 --> 00:01:59,850
I motion to open the public hearing.

19
00:02:00,650 --> 00:02:01,530
One second.

20
00:02:02,450 --> 00:02:04,050
Thank you all in favor.

21
00:02:05,070 --> 00:02:05,390
Aye.

22
00:02:07,250 --> 00:02:10,230
Okay, the hearing is open for public comment and questions.

23
00:02:11,190 --> 00:02:16,250
I will ask Brandon if there's any members of the public present at the anchor location.

24
00:02:17,110 --> 00:02:18,750
Do you want them to take a number?

25
00:02:18,930 --> 00:02:20,090
We've got to line out the door.

26
00:02:21,030 --> 00:02:22,370
No, there's nobody here.

27
00:02:22,850 --> 00:02:23,490
There's nobody here.

28
00:02:24,210 --> 00:02:30,930
There's nobody here on site at your cowl and there's nobody on the zoom meeting that's from the public.

29
00:02:31,930 --> 00:02:34,790
So there's no comments or questions to be presented.

30
00:02:35,410 --> 00:02:38,470
Can we have a motion to close the public hearing?

31
00:02:39,270 --> 00:02:41,730
A motion to close the public hearing.

32
00:02:42,530 --> 00:02:43,170
Second.

33
00:02:44,110 --> 00:02:45,750
Thank you. All in favor?

34
00:02:46,610 --> 00:02:46,830
Hi.

35
00:02:48,010 --> 00:02:50,070
The public hearing is now closed.

36
00:02:50,070 --> 00:02:55,370
We'll move on to our one and only action item and that's to consider adoption of Resolution

37
00:02:56,690 --> 00:03:01,750
202609 adopting a final budget for calendar year 2026 for Loman Heights Public Infrastructure

38
00:03:01,750 --> 00:03:02,590
District number one.

39
00:03:03,030 --> 00:03:08,210
The budget was provided to you as it was changed and I'll turn the time over to Brendan

40
00:03:08,210 --> 00:03:13,230
to go over the changes that were made since the tentative budget was adopted prior to funding.

41
00:03:15,280 --> 00:03:16,400
Or sorry or Derek.

42
00:03:17,060 --> 00:03:18,300
I'll take this one.

43
00:03:20,970 --> 00:03:24,810
We're like tag team wrestlers. We just tap each other and see who comes in.

44
00:03:25,790 --> 00:03:33,310
All right. As Shannon mentioned, we did on June 12th adopt a tentative budget. Today's

45
00:03:33,310 --> 00:03:38,350
purpose is to adopt the final budget which once approved then we will file with the state and

46
00:03:39,610 --> 00:03:46,490
meet that compliance requirement that we have. From the time that we had the tentative budget adopted

47
00:03:46,490 --> 00:03:59,890
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.

48
00:04:00,550 --> 00:04:08,550
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.

49
00:04:09,270 --> 00:04:12,810
So I will run through very briefly what some of those changes were.

50
00:04:13,770 --> 00:04:18,470
As you know, when you go through the bond issuance process there's just iteration after iteration

51
00:04:18,470 --> 00:04:24,850
as small things change and so they're inherently is going to be a difference between those

52
00:04:24,850 --> 00:04:29,390
original projections and then the final bond issuance but again I'll briefly walk through

53
00:04:29,390 --> 00:04:30,170
some of the changes.

54
00:04:30,590 --> 00:04:33,830
If you have any questions please stop me otherwise I'm just going to buzz through it.

55
00:04:35,890 --> 00:04:40,630
All right, so on your screen we're going to start with our capital projects fund.

56
00:04:40,630 --> 00:04:48,510
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.

57
00:04:51,700 --> 00:05:01,080
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.

58
00:05:01,940 --> 00:05:08,460
So starting in the other sources and uses section, other sources and uses section to many S's in that sentence.

59
00:05:08,460 --> 00:05:15,180
You can see that the bond proceeds amount, there was a couple of million dollars decrease

60
00:05:15,180 --> 00:05:21,020
from 44 million down to 42 million in bond proceeds, and with that decrease in proceeds

61
00:05:21,020 --> 00:05:23,640
that just basically flows through.

62
00:05:23,940 --> 00:05:30,740
So you can see that the cost to issue the bonds below bond proceeds then decreases by about

63
00:05:30,740 --> 00:05:31,580
$10,000.

64
00:05:31,580 --> 00:05:45,240
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.

65
00:05:45,980 --> 00:05:51,040
And we'll look at the debt service fund and the general fund momentarily to see where those monies went.

66
00:05:51,040 --> 00:06:00,100
And also as a result of that, we decreased interest income at the top under revenues by

67
00:06:00,100 --> 00:06:01,140
about 26,000.

68
00:06:01,240 --> 00:06:05,580
That's really just a placeholder to catch any potential interest earnings before the

69
00:06:05,580 --> 00:06:06,100
payout.

70
00:06:06,480 --> 00:06:16,600
But we do see the capital outlay here, $31.6 million, then budgeted for developer available

71
00:06:16,600 --> 00:06:17,700
reimbursement monies.

72
00:06:19,260 --> 00:06:25,400
Now moving from the Capital Project Fund to the debt service fund, in the previous fund,

73
00:06:25,480 --> 00:06:29,100
we saw those monies transferred to the debt service fund, and that's here in that

74
00:06:29,100 --> 00:06:31,080
other sources and uses section in the middle.

75
00:06:31,720 --> 00:06:37,740
You can see that $10.1 million, and those were based on the required capitalized interest

76
00:06:37,740 --> 00:06:39,780
in debt service reserve amounts.

77
00:06:39,780 --> 00:06:47,760
So if you look down on the bottom section under components of ending fund balance,

78
00:06:47,960 --> 00:06:49,200
you'll see that capitalized interest.

79
00:06:49,440 --> 00:06:56,940
That was the main driver for the increase of the transfer to the debt service fund.

80
00:06:57,340 --> 00:07:02,040
When we went to final bond issuance, there was a need to put more money into that capitalized interest bucket,

81
00:07:02,280 --> 00:07:06,420
which really just pays the interest payments for the first two or three years at the bonds.

82
00:07:09,440 --> 00:07:18,120
As a result of the par amount coming down, jumping up, we do see the interest expense going

83
00:07:18,120 --> 00:07:18,480
down.

84
00:07:18,720 --> 00:07:28,120
So we had originally bottled to $706,000, it went down to $601,900, but because we pulled

85
00:07:28,120 --> 00:07:32,060
more money into the debt service fund because of that capitalized interest, we did increase

86
00:07:32,060 --> 00:07:37,240
the interesting come up there at the top under revenues, one from 97,000 up to 130.

87
00:07:38,860 --> 00:07:45,640
And then lastly, we have our general fund, oh, forgot to mention one thing.

88
00:07:46,820 --> 00:07:51,360
In our expenditure section under the debt service fund, we had originally put the trustee

89
00:07:51,360 --> 00:07:59,060
fees and the dissemination, dissemination, agent fees in that debt service fund, but because

90
00:07:59,060 --> 00:08:02,620
As they're being funded from the capitalized interest, we felt it was appropriate to just

91
00:08:02,620 --> 00:08:06,800
put it up into the general fund where that capitalized, sorry, it will be paid from the

92
00:08:06,800 --> 00:08:07,820
working capital fund.

93
00:08:08,500 --> 00:08:11,600
And the working capital fund is how we pay all the administrative costs.

94
00:08:11,880 --> 00:08:16,160
And because that's all up in the general fund, we felt it was appropriate to put those two

95
00:08:16,160 --> 00:08:20,320
fees, which are administrative in nature, up under the general fund.

96
00:08:20,480 --> 00:08:22,880
So we actually zeroed those out and moved them up.

97
00:08:23,940 --> 00:08:28,300
And if you're looking at the general fund, you can see those two new line items, the trusty

98
00:08:28,300 --> 00:08:33,460
fee in the dissemination agent. Other than that, you know, interest didn't change and then

99
00:08:33,460 --> 00:08:40,500
we did decrease the amount put aside for the working capital down to $135,000. I realize

100
00:08:40,500 --> 00:08:46,580
I blazed through that. I probably put you to sleep anyway as I did that, but as you've

101
00:08:46,580 --> 00:08:50,620
looked at these and as you've heard the things I've talked about, any questions, any concerns,

102
00:08:50,800 --> 00:08:53,260
any final adjustments you might want to make to the budget.

103
00:08:55,660 --> 00:08:59,060
No, I think we're good. I mean, I know we all know this on our end, but just to make sure

104
00:08:59,060 --> 00:09:03,680
were all in the same page. The main reason for these changes is because we ultimately

105
00:09:03,680 --> 00:09:09,020
collateraled well and didn't, and we're able to raise more than we may have needed, right?

106
00:09:10,220 --> 00:09:13,960
So we actually pulled the commercial piece out of it, which obviously brought our bond proceeds

107
00:09:13,960 --> 00:09:19,940
down. And we also pre-move more money into that capitalized interest to, again, bring the

108
00:09:19,940 --> 00:09:24,700
project fund down just because we don't want to be paying all that interest on it, right? So,

109
00:09:24,700 --> 00:09:32,900
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.

110
00:09:34,460 --> 00:09:42,400
Yeah, so great result from the bond issuance, but yeah, I had because of those reasons had those changes in the budget.

111
00:09:43,100 --> 00:09:45,660
So I think we're good.

112
00:09:46,560 --> 00:09:46,920
All right.

113
00:09:50,760 --> 00:09:58,300
All right, and with that, then we can see if there's a motion to adopt resolution 202609

114
00:09:59,040 --> 00:10:06,240
approving the final budget for calendar year 2026 for Lohman Heights Public Infrastructure District number one.

115
00:10:06,460 --> 00:10:16,900
I motion to approve resolution 2026-09, which is the final budget for calendar year 2026 for Lohman Heights.

116
00:10:16,900 --> 00:10:27,460
public infrastructure district number one. Second. All in favor? All right the motion passes unanimously.

117
00:10:28,240 --> 00:10:32,800
We'll move on to administrative non-action items. This is where we can have open meeting

118
00:10:32,800 --> 00:10:38,020
discussion with the board members for any public infrastructure district business that's not on the

119
00:10:38,020 --> 00:10:43,980
agenda. Is there any business that needs to be brought up by the board during this meeting?

120
00:10:43,980 --> 00:10:55,040
I don't think so. I think we're good. I will let you know we do need to schedule future

121
00:10:55,040 --> 00:11:01,300
meetings one in November and then one in December for the 2027 budgets. We wanted to wait

122
00:11:01,300 --> 00:11:07,280
till after this meeting before sending out dates but those will be sent out to you to

123
00:11:07,280 --> 00:11:15,100
re-evalibility. At this point we can take a motion to adjourn the meeting. I'm

124
00:11:15,100 --> 00:11:24,500
motion to adjourn today's meeting. The second. All in favor? All right. All right.

125
00:11:24,700 --> 00:11:31,320
The meeting is adjourned at 2.12 p.m. Thank you everybody. Thank you. Thank you.