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Discussion? All those in favor signify by aye. Aye. Any post? Motion carries any, and I'm

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sleigh having to more further business for the Rancho Serita Community Facilities District.

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We'll adjourn that, and now I will commence with the Quail Creek Community Facilities

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District meeting and call that meeting to order and Madam Clerk may have a roll.

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Board Member Gillespie. Board Member Lisk. Board Member Lytel. Board Member Morales.

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Board Member Priolo. Vice Chair Edbert. Chair Murphy.

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Here.

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Quorum present. Thank you. And number three is the call to the public. At this time, any member of the

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public is invited to address the district board, any issue which is in tonight's consent agenda,

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or any issue the district board can lawfully act upon at a future meeting.

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Pursuing to Arizona open meeting laws, the district board may not discuss the items,

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but the individual members of the district board may respond to criticism made by those who

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address the district board may ask the staff to review the matter may ask the matter to be placed on

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a future agenda. I have no cards. Speaker cards for this one.

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Anybody like to address the district board? Seeing no movement, I will close the call public.

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Move to item number four, which is the consent agenda and retain a motion at this time.

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Some moved. Second. We have a motion in the second. All those in favor of signify by aye.

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Aye. Any opposed? Motion carries unanimously. And now we come to item number five,

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Madam Clerk. Discussion and possible adoption of resolution number 49, regarding the

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Coil Creek Community Facilities District, 2026 tentative budget. Thank you. And we have a return visit

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from our district treasurer for the Coil Creek Community Facilities District. Mr. Marriottie. Mr. Chairman,

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I missed the days of the really long read of the agenda language.

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Well, it was challenged you to be shorter than the reading of it, but you always failed me, so

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we figure it was just cut down on the agenda item. So tonight, the Coil Creek Community Facilities

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District Board will have an opportunity to adopt its tentative budget for fiscal year 2026,

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which also commences on July 1. The tentative budget sets the budget ceiling for the year ahead,

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and the final budget, whatever gets approved, can't be any higher than what's adopted tonight.

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So a little bit of information about the Coil Creek District, it was formed on September 12, 2005.

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It encompasses 1,192 acres all within the Salwadi at the town limits. And at Buildout,

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it's planned to have 2,600 residential units in it. Now, I should point out that in some

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of the confusion at times is the Coil Creek Community Facilities District is not the entire

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Coil Creek Community Development. So that development is actually 2,113 acres total. And so the

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district represents about 56% of the Coil Creek Development. So not everybody that lives out there

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is subject to what we're going to talk about tonight. So the county assessor provided us a new

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information in January about the assessed valuations on properties within the district and the latest

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information indicates that there are 1,497 residential units in the district that represents a

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58% buildout figure. This is 94 more than last year. So we've had 70 about, sorry, 7% growth rate

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in the number of units in the district. About 5% of those are 69 are listed as rental properties.

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So this slide provides some historical information on the property values. You can see the

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trajectory of growth over time because the growth for a while was sort of a slow and steady,

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but it has picked up in more recent years. latest valuation of all property is $52.3 million and that

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is $5.2 million or 11% more than last year. The district is a tax-loving public improvement district

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whose purpose is to finance the acquisition and maintenance of public infrastructure and facilities.

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And when it was formed, there was a bond election that authorized $30 million in bond capacity

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and also authorized a secondary property tax to repay those bonds. Shortly thereafter, $12.7 million

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in bonds were issued. So that would leave us with $17.3 million in available bond capacity for the future

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potentially. Of the bonds that were issued, $4.3 million remains outstanding and they will be paid off

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by the end of fiscal year 2030. At that point in time, the property tax that we're going to talk about here

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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.

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All right, so what did the bonds pay for? They paid for Campbell Avenue, Quill Creek Parkway,

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portions of Quill Creek Veterans Municipal Park including land acquisition, numerous wash crossings,

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landscaping, and sewer lines. So even though the district is legally separate from the town,

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because the district board are also council members and because town staff also function as

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district staff, and we use the same policies, procedures, and resources that governmental accounting

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standards board says that and he's be pulled into the town's financial reports. Otherwise,

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it would be misleading to the general public. As such, the town considers that a blended component unit

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and it's reported as a town special revenue fund in the town's financial reports. And other than the

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budget schedules that you have before you, the district does not issue separate financial reports.

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So with that, the tentative budget for a 2026 is programmed at 1,107,640 dollars. The budget is balanced

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and that are financing sources are equal to our financing uses. This budget is higher than the current

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budget by about $22,000, so it's a 0.2% increase in the overall budget.

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This slide provides a composition of the district's revenues and sources. The district levees a property

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tax and that tax provides 98% of the total resources for the district. And that total is $1.09 million.

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There are two components to the property tax, a debt service component and an operations and maintenance

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component. The combined tax rate is $2.26 per $100 of net taxable assessed valuation.

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And that will be a 14 cents lower than the current fiscal year. That represents a 6% reduction in the tax rate.

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So all things being equal, the average homeowner is going to save about $7 next year, which is a 1%

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reduction on their tax liability. So we have a 6% reduction in the rate. But again, that is

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only one side of the equation. The other side are the assessed values. So the fact that 6% rate reduction

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by 1% liability change means that on average the homes out there increased in valuation by about 5%

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since last year. So of this tax rate, 30 cents goes for operations and maintenance and a dollar

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96 will go for debt service. And again, in 2030, that debt service component will go away entirely.

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And the tax rate will just stay 30 cents in perpetuity to pay for operations and maintenance

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of infrastructure that was acquired. We've programmed in $5,000 for potential interest earnings.

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And that's mostly from property tax collections that will sit in a trust account.

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And then our beginning fund balances rounded off at $13,300. And that's collections in the current

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year that are going to carry forward to next year to be used to make future debt service payments.

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This slide provides a composition of the district's expenditures. As you can see, the vast majority

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86% and $153,000 goes towards making debt principal and interest payments as well as some banking fees.

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And then operations only makes up 14% or $154,000 of the total budget.

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That operating budget will pay for district administration, street and right-of-way maintenance,

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and will pay for a portion of the costs for the Quill Creek Veterans Municipal Park.

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There are no ending fund balances here because the district is expected to consume all of its resources during the year.

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So with that, the resolution that you have before you, if you adopt it, would approve the fiscal year

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2026 tentative budget. It requires us to file the budget with the district clerk and make it available on the website.

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And the resolution also establishes a public hearing and notice for a final budget adoption on June 23, 2025.

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Thank you, Chairman. Appreciate it. Any questions for our district treasurer?

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Seeing none, I will open that up for a motion, please.

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Mr. Mayor, I moved to adopt the resolution number of 49.

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We have a motion in a second, any further discussion? All those in favor signify by aye. Aye. Any opposed?

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Motion carries unanimously. Having no more further business of the Quill Creek Facilities District,

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we're adjourned and returned to our regular-