Presentation of the Sahuarita Teen Advisory Council (STAC) End of the Year Report - Town Council Meeting

Town of Sahuarita, AZ · 2025-05-27 · More Town of Sahuarita, AZ meetings · More Arizona meetings

Agenda

[2:31] Call to Order
[3:13] Invocation
[4:30] Pledge of Allegiance
[29:02] Roll Call
[29:25] Presentations
[29:26] Recognition of Porter Wilson and Sahuarita Flag Football
[44:13] Call to the Public
[44:43] Town Council Brief Summary of Current Events
[50:06] Town Manager's Report
[58:04] May 2025 Legislative Update
[1:13:22] Presentation of the Sahuarita Teen Advisory Council (STAC) End of the Year Report
[1:24:32] Consent Agenda
[1:24:59] Resolution No. 2025-0827 IGA with SUSD for WGHS Traffic Signals Construction/Installation
[1:35:17] Resolution No. 2025-0821 Fiscal Year 2026 Tentative Budget Adoption
[2:00:29] Adjournment

Transcript

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[0:00] Discussion? All those in favor signify by aye. Aye. Any post? Motion carries any, and I'm
[0:05] sleigh having to more further business for the Rancho Serita Community Facilities District.
[0:10] We'll adjourn that, and now I will commence with the Quail Creek Community Facilities
[0:15] District meeting and call that meeting to order and Madam Clerk may have a roll.
[0:21] Board Member Gillespie. Board Member Lisk. Board Member Lytel. Board Member Morales.
[0:28] Board Member Priolo. Vice Chair Edbert. Chair Murphy.
[0:34] Here.
[0:35] Quorum present. Thank you. And number three is the call to the public. At this time, any member of the
[0:40] public is invited to address the district board, any issue which is in tonight's consent agenda,
[0:45] or any issue the district board can lawfully act upon at a future meeting.
[0:49] Pursuing to Arizona open meeting laws, the district board may not discuss the items,
[0:53] but the individual members of the district board may respond to criticism made by those who
[0:57] address the district board may ask the staff to review the matter may ask the matter to be placed on
[1:01] a future agenda. I have no cards. Speaker cards for this one.
[1:06] Anybody like to address the district board? Seeing no movement, I will close the call public.
[1:12] Move to item number four, which is the consent agenda and retain a motion at this time.
[1:21] Some moved. Second. We have a motion in the second. All those in favor of signify by aye.
[1:26] Aye. Any opposed? Motion carries unanimously. And now we come to item number five,
[1:32] Madam Clerk. Discussion and possible adoption of resolution number 49, regarding the
[1:38] Coil Creek Community Facilities District, 2026 tentative budget. Thank you. And we have a return visit
[1:46] from our district treasurer for the Coil Creek Community Facilities District. Mr. Marriottie. Mr. Chairman,
[1:52] I missed the days of the really long read of the agenda language.
[1:58] Well, it was challenged you to be shorter than the reading of it, but you always failed me, so
[2:03] we figure it was just cut down on the agenda item. So tonight, the Coil Creek Community Facilities
[2:10] District Board will have an opportunity to adopt its tentative budget for fiscal year 2026,
[2:16] which also commences on July 1. The tentative budget sets the budget ceiling for the year ahead,
[2:23] and the final budget, whatever gets approved, can't be any higher than what's adopted tonight.
[2:30] So a little bit of information about the Coil Creek District, it was formed on September 12, 2005.
[2:37] It encompasses 1,192 acres all within the Salwadi at the town limits. And at Buildout,
[2:44] it's planned to have 2,600 residential units in it. Now, I should point out that in some
[2:51] of the confusion at times is the Coil Creek Community Facilities District is not the entire
[2:57] Coil Creek Community Development. So that development is actually 2,113 acres total. And so the
[3:05] district represents about 56% of the Coil Creek Development. So not everybody that lives out there
[3:12] is subject to what we're going to talk about tonight. So the county assessor provided us a new
[3:18] information in January about the assessed valuations on properties within the district and the latest
[3:23] information indicates that there are 1,497 residential units in the district that represents a
[3:31] 58% buildout figure. This is 94 more than last year. So we've had 70 about, sorry, 7% growth rate
[3:40] in the number of units in the district. About 5% of those are 69 are listed as rental properties.
[3:50] So this slide provides some historical information on the property values. You can see the
[3:56] trajectory of growth over time because the growth for a while was sort of a slow and steady,
[4:01] but it has picked up in more recent years. latest valuation of all property is $52.3 million and that
[4:11] is $5.2 million or 11% more than last year. The district is a tax-loving public improvement district
[4:23] whose purpose is to finance the acquisition and maintenance of public infrastructure and facilities.
[4:29] And when it was formed, there was a bond election that authorized $30 million in bond capacity
[4:35] and also authorized a secondary property tax to repay those bonds. Shortly thereafter, $12.7 million
[4:44] in bonds were issued. So that would leave us with $17.3 million in available bond capacity for the future
[4:52] potentially. Of the bonds that were issued, $4.3 million remains outstanding and they will be paid off
[5:00] by the end of fiscal year 2030. At that point in time, the property tax that we're going to talk about here
[5:06] in a minute that's for debt service is going to go to zero unless additional bonds are issued and there's no plans for that.
[5:14] All right, so what did the bonds pay for? They paid for Campbell Avenue, Quill Creek Parkway,
[5:21] portions of Quill Creek Veterans Municipal Park including land acquisition, numerous wash crossings,
[5:28] landscaping, and sewer lines. So even though the district is legally separate from the town,
[5:36] because the district board are also council members and because town staff also function as
[5:43] district staff, and we use the same policies, procedures, and resources that governmental accounting
[5:49] standards board says that and he's be pulled into the town's financial reports. Otherwise,
[5:54] it would be misleading to the general public. As such, the town considers that a blended component unit
[6:01] and it's reported as a town special revenue fund in the town's financial reports. And other than the
[6:07] budget schedules that you have before you, the district does not issue separate financial reports.
[6:14] So with that, the tentative budget for a 2026 is programmed at 1,107,640 dollars. The budget is balanced
[6:23] and that are financing sources are equal to our financing uses. This budget is higher than the current
[6:30] budget by about $22,000, so it's a 0.2% increase in the overall budget.
[6:37] This slide provides a composition of the district's revenues and sources. The district levees a property
[6:45] tax and that tax provides 98% of the total resources for the district. And that total is $1.09 million.
[6:53] There are two components to the property tax, a debt service component and an operations and maintenance
[6:59] component. The combined tax rate is $2.26 per $100 of net taxable assessed valuation.
[7:09] And that will be a 14 cents lower than the current fiscal year. That represents a 6% reduction in the tax rate.
[7:19] So all things being equal, the average homeowner is going to save about $7 next year, which is a 1%
[7:25] reduction on their tax liability. So we have a 6% reduction in the rate. But again, that is
[7:32] only one side of the equation. The other side are the assessed values. So the fact that 6% rate reduction
[7:38] by 1% liability change means that on average the homes out there increased in valuation by about 5%
[7:46] since last year. So of this tax rate, 30 cents goes for operations and maintenance and a dollar
[7:54] 96 will go for debt service. And again, in 2030, that debt service component will go away entirely.
[8:00] And the tax rate will just stay 30 cents in perpetuity to pay for operations and maintenance
[8:06] of infrastructure that was acquired. We've programmed in $5,000 for potential interest earnings.
[8:14] And that's mostly from property tax collections that will sit in a trust account.
[8:19] And then our beginning fund balances rounded off at $13,300. And that's collections in the current
[8:27] year that are going to carry forward to next year to be used to make future debt service payments.
[8:36] This slide provides a composition of the district's expenditures. As you can see, the vast majority
[8:41] 86% and $153,000 goes towards making debt principal and interest payments as well as some banking fees.
[8:50] And then operations only makes up 14% or $154,000 of the total budget.
[8:57] That operating budget will pay for district administration, street and right-of-way maintenance,
[9:04] and will pay for a portion of the costs for the Quill Creek Veterans Municipal Park.
[9:10] There are no ending fund balances here because the district is expected to consume all of its resources during the year.
[9:18] So with that, the resolution that you have before you, if you adopt it, would approve the fiscal year
[9:24] 2026 tentative budget. It requires us to file the budget with the district clerk and make it available on the website.
[9:32] And the resolution also establishes a public hearing and notice for a final budget adoption on June 23, 2025.
[9:40] Thank you, Chairman. Appreciate it. Any questions for our district treasurer?
[9:44] Seeing none, I will open that up for a motion, please.
[9:49] Mr. Mayor, I moved to adopt the resolution number of 49.
[9:54] We have a motion in a second, any further discussion? All those in favor signify by aye. Aye. Any opposed?
[10:01] Motion carries unanimously. Having no more further business of the Quill Creek Facilities District,
[10:06] we're adjourned and returned to our regular-