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