[This transcript was generated automatically from audio using AI and hasn't been reviewed by a person -- it can contain mistakes, including plausible-sounding sentences that were never actually said. Treat it as a starting point, not a verbatim record.]

[0:00] For those who are online, for those who are with us, welcome to the Crossroads Public Infrastructure District meeting. My name is Ben Hart. I serve as the chair of this PID, and we are going to go ahead and start this meeting. I apologize for those who are expecting this to start at 2 p.m.
[0:24] We had a busy agenda. Thank you to our in-lamp board for sticking with us. All right.
[0:30] So we will go ahead and the first order of business we are going to administer the oath of office to Mr. Jerry Stevenson, and I believe Carol is going to we lost
[0:46] Carol.
[0:48] You did? No, you're in. That's probably sufficient.
[0:57] I'm, Larry, if it's my discretion, I'm going to bump that item down along with the approval
[1:04] of minutes until Senator Stevenson is sworn in, and I'm going to jump to item number four,
[1:10] which is the Crossroads PID budget hearing fiscal year 2027 presented by, it says deputy
[1:17] director.
[1:18] However, Ariane actually serves as the executive director of the Crossroads PID and have
[1:24] her give us that presentation.
[1:37] Okay. Give me just one minute. I am sharing my screen with you.
[1:45] Let's do the hearing first or the area's presentation. I'll do it right after that. Thank you,
[1:51] Carol.
[1:54] Okay. I think that's pulling up.
[2:00] Great.
[2:04] Thank you, Mr. Chair. Attached here is the
[2:14] some revisions for the fiscal year 26 and the fiscal year 27. If you're looking at the
[2:19] document, the first column shows fiscal year 25 actuals. Then we have the fiscal year 26
[2:27] previously approved budget. That third column is the estimated actuals that are projected through
[2:34] here at the end of June. And then we have the fiscal year 26 proposed revised budget
[2:40] and the fiscal year 27 proposed budget.
[2:44] So those are the two columns on the far right
[2:47] that you are going to be approving.
[2:54] Overall, for the Crossroads Public Infrastructure District,
[2:58] the only revenues we really see are the interest earnings
[3:01] of the money sitting in the trust accounts,
[3:04] mostly held in the public treasure's investment fund.
[3:08] We do have a little bit
[3:09] from the Reserve Accounts invested outside of that and with interest rates going down but also
[3:17] as spending the project funds, we anticipate the interest revenues to be decreasing this next year
[3:25] and they did decrease this year which is why we've adjusted down the interest earnings revenue
[3:31] in the fiscal year 27 budget. If you're looking at the expenditures, we are main expenditures,
[3:39] are going to be the infrastructure and improvements.
[3:43] If you're looking to prior year, we only had about $4 million.
[3:47] That's because we just had acquired the landfill in February and
[3:50] we started remediation in May and June of last year.
[3:55] And so we really didn't have a whole lot of expenditures.
[3:58] As we've moved through this fiscal year, we had budgeted $18 million.
[4:02] However, we're anticipating it will come in, maybe closer to $16 million.
[4:07] We're still working through those final invoices and so we're just inventing the budget down a little bit closer to what we think the actual will be for fiscal year 26 and then for next fiscal year.
[4:21] Working with our remediation partner, we're able to determine that we'll be spending about 12 million 12 to 15 million on the remediation efforts and then with the infrastructure needs for development.
[4:36] and we'll have another 12 million.
[4:40] So that's getting us to the 21 million you see there
[4:43] that we're anticipating over next fiscal year.
[4:49] And then, sorry, that is, I said that in correctly,
[4:56] the capital outlay line is for that,
[4:59] for the infrastructure improvements,
[5:03] the 21 million is just for the remediation efforts.
[5:05] I apologize. The bond that service were still in the interest only period on the bond and so we will be paying a $6.5 million interest only payment. We don't have any principal payments. Those will start I think in 2032.
[5:22] and so overall we're just going to be utilizing down the proceeds that we have still in the bond fund available for this remediation project and any other development needs in the area.
[5:44] Any questions?
[5:47] Can I ask procedurally about PIDs?
[5:52] I see the change in the fund balance is that it's going to decrease by 31 million.
[5:59] Is that to be expected in a PID or is there a certain amount of fund balance we need to
[6:03] maintain so that bonding can continue with good ratings like in cities?
[6:09] Is there – can you just explain to me how that fund balance operates in a PID as opposed
[6:15] to like a municipality?
[6:17] Yeah, so this public infrastructure district was set up initially bond was issued for $150 million to do some other types of infrastructure needs in the Northwest quadrant.
[6:28] However, last year when we acquired the landfill most of the proceeds had not been utilized and so we are using them for this very important project.
[6:40] We don't really have like new revenues come in.
[6:43] What happens is we get the money from Salt Lake County.
[6:48] And then there is a 40% pledge of those tax increment dollars that we have to send over to the PID from the Inland Port Authority.
[6:58] And then whatever's necessary to make the debt service payments is utilized.
[7:04] A lot of money has been sitting there.
[7:06] And so it's been earning interest and so we've usually gotten about $4 million back to the inland port because it wasn't necessary to make those payments.
[7:17] So this pit is a little different because it is a blended component unit of the port, so it kind of just folds up into us.
[7:26] But if you're talking about PIDs in general, they are intended to be separate, they're not usually rated entities, and so they're really just they're there to get a project done.
[7:39] There may be one or two issuances that you're looking at in order to get all the infrastructure needs done in a project, but the intention is you're pledging that future tax increment that you're going to receive over 25 plus years.
[7:53] And you're getting that money up front now to put in the infrastructure and then you're paying it back over time.
[7:59] So there's not really an intention to hang on to that money.
[8:03] You're wanting to spend it down in an ideal situation.
[8:07] It would have been spent down in three years.
[8:08] That's kind of the IRS rules and requirements.
[8:12] So we are beyond that and so we are having our bond council do tax arbitration calculations.
[8:19] but for many years we were earning less than we were paying an interest and so they look at the aggregated time period, so we last year did not have a payment that we have to make to the IRS because we were making too much an interest and I anticipate probably the same for this year.
[8:40] But in future years, that may come up that we have to rebate that back.
[8:46] So I know that was beyond what you were asking, but I hope that addressed it.
[8:51] Yeah, you addressed the function of unbalanced.
[8:54] Thank you.
[8:56] My question.
[9:00] Okay.
[9:00] And that is just a different, certainly a different thing that we're seeking.
[9:06] Yes.
[9:11] Yes, for many years, it was a positive.
[9:14] I think the bonds at four and a quarter is what we're paying an interest, and for a
[9:20] couple of years there, I know just at the PTIF, we were earning over five percent.
[9:25] So there is a time period that we were earning more, but there was also a decent time period
[9:31] where we weren't.
[9:32] And so they go back to the beginning of time for those calculations, and that's a weighted
[9:39] daily type of calculation that they do to determine if you earn too much interest, then you
[9:44] have to pay the IRS a portion of that, not all of it.
[9:47] And so if we earn more interest than we paid, it's not a bad thing.
[9:52] We give a little bit to the IRS, but then we're, you know, somewhat able to use those funds
[9:57] unrestricted.
[9:58] It's probably a good thing.
[10:00] So the conclusion, Mike, of the recall.
[10:03] Yeah, I've had my question answered.
[10:07] But I was just in the arbitrage differences.
[10:09] Thank you.
[10:10] Yes.
[10:13] All right.
[10:13] Any other questions from hit board members?
[10:17] Seen none.
[10:18] Let's go back up and capture item number two.
[10:21] Carol.
[10:22] Would you mind coming up to administer the oath of office to sender students
[10:26] and who's probably taking about a hundred of these different oaths?
[10:28] You want me to come down there? Do you want to come up here?
[10:32] We're fine. Whatever, whatever you want to do. I'm doing it.
[10:40] Jerry, would you please stand?
[10:43] Raise your right hand and repeat after me. I state your name.
[10:47] I, Jerry Stevens.
[10:48] Do solemnly swear. Do solemnly swear.
[10:51] And I will support obey and defend.
[10:53] And I will support obey and defend.
[10:55] The Constitution of the United States.
[10:57] The Constitution of the United States.
[10:59] And the Constitution of the state of Utah.
[11:01] And the Constitution, the best state of Utah, and that I will discharge the duties of my office with fidelity and that I will discharge the duties of my office with fidelity. Thank you very much. Welcome to board.
[11:14] Thank you, Carol. Thank you, Senator, for your service.
[11:18] With that, we'll go to approval of minutes for the June 26th, 2025 meeting. Can I get a motion in a second on that?
[11:33] I would make that motion.
[11:36] Thank you, Senator, do we have a second?
[11:40] All right.
[11:41] And Victoria will note your vote online as well.
[11:44] All those in favor please say aye.
[11:46] Aye.
[11:47] Any opposed?
[11:51] All right.
[11:52] We will now go ahead into the public comment portion of the meeting.
[11:57] If there is anybody who would like to make a public comment,
[12:00] you are welcome to let us know.
[12:03] and we're happy to hear from you.
[12:05] Is there anyone that wants to make a public comment?
[12:11] I'm going to say no. No, we do not have anyone that's interested
[12:15] in making a public comment, so that will end our public comment period,
[12:19] which now leads us to our action items.
[12:22] We have just one item before us.
[12:25] And I don't mean to be presumptuous, but I'll go ahead and make a motion or read a motion, not make it.
[12:31] The motion would be to adopt a resolution number 2026-1,
[12:36] adopting fiscal year 2026 amended in fiscal year 2027 tentative budgets we
[12:47] have a
[12:47] first from Amy thank you Amy do we have a second we have a second from
[12:52] Senator Stevenson all right with a first and a second all those in favor please
[12:57] say aye is there anyone who is opposed all right seeing none we roll the motion
[13:06] passes unanimously and that is our agenda for today does someone want to make a
[13:11] final motion.
[13:13] Welcome to a term.
[13:15] Beautiful.
[13:15] We're done.
[13:16] Thank you, Senator.
[13:17] Appreciate it.