Public Facilities Municipal Property Corporation

MINUTES OF THE BOARD OF DIRECTORS OF THE TOWN OF GILBERT, ARIZONA PUBLIC FACILITIES MUNICIPAL PROPERTY CORPORATION, ANNUAL MEETING, WEDNESDAY, FEBRUARY 3, 2021, 5:00 P.M., VIRTUAL MEETING, GILBERT, ARIZONA MEMBERS PRESENT: President Roy Schmidt, Vice President Shane Cook, Director Steve Bentz, Director Amber Coleman MEMBERS ABSENT: Secretary-Treasurer Ken Starks COUNCIL LIAISON: Councilmember Laurin Hendrix TOWN STAFF PRESENT: Kelly Pfost, Management and Budget Director; Håkon Johanson, Finance and Management Services Director; Tanya Wright, Finance and Management Services Accounting Manager; Nicholas Baldelli, Finance and Management Services Accounting Supervisor; Heidy Comish, Management and Budget Analyst; Patti Hageman, Management and Budget Specialist; Monica D’Ortenzio, Council Aide OTHERS PRESENT: None CALL TO ORDER President Roy Schmidt called the meeting to order at 5:03 p.m. OATHS OF OFFICE Council Liaison Laurin Hendrix gave the Oath of Office to new board member, Amber Coleman. ROLL CALL Management and Budget Specialist Patti Hageman called roll and declared a quorum was present. For the benefit of the new members, President Roy Schmidt and Management and Budget Director Kelly Pfost gave a quick overview of the purpose and function of the Public Facilities Municipal Property Corporation (PFMPC). When the Town decides to take on debt via bonds, there are two ways to do it. The bond request can be put on the ballot for voter approval or brought to one of the Municipal Property Corporations (MPC) to issue. When bonds are issued via general election on a ballot, they are considered general obligation bonds which are repaid from property tax money. If the request is brought to the MPC, the MPC would look at the business case for the bond and give recommendations to Council which would then decide whether to approve or disapprove the indebtedness. If bonds are issued through the MPC, the bond is repaid with other Town money, usually system development fees which are collected from new businesses or new resident homes because of their impact on the system and the infrastructure needed to support them. Currently there are two MPCs with the Town. There is the Water Resources Municipal Property Corporation (WRMPC) which handles water or  Public Facilities Municipal Property Corporation February 3, 2021 Page 2 of 4 wastewater infrastructure and the PFMPC which handles any other infrastructure the Town may need. Director Steve Bentz concluded by pointing out that if the bond is approved, the MPC owns the asset of whatever is built, and the Town makes rent payments to the MPC for the life of the bond. Once the bond is paid in full, the ownership of the asset transfers to the Town. COMMUNICATIONS FROM CITIZENS None received. AGENDA ITEMS 1. ELECTION – nomination and election of officers for 2021. Amber Coleman was nominated as President. A MOTION was made by Director Roy Schmidt seconded by Director Steve Bentz for the above nomination. Motion carried 4 - 0 Steve Bentz was the nominated as Vice President. A MOTION was made by Director Roy Schmidt seconded by Director Shane Cook for the above nomination. Motion carried 4 - 0 Shane Cook was nominated as the Secretary-Treasurer. A MOTION was made by Vice President Steve Bentz seconded by Director Roy Schmidt for the above nomination. Motion carried 4 - 0 2. MINUTES – approval of the minutes of the meeting of February 5, 2020. A MOTION was made by President Amber Coleman seconded by Vice President Steve Bentz to approve the minutes of the meeting of February 5, 2020 as written. Motion carried 4-0 3. ANNUAL REPORT– approval of the annual financial report Finance and Management Services Accounting Supervisor Nick Baldelli briefly reviewed the annual financial report dated June 30, 2020 and the interim report dated December 31, 2020. The Statement of Revenues, Expenses, and Changes in Net Position, which is equivalent to an income statement for the fiscal year, shows the Corporation’s revenues and expenses, and allows one to see the data for the Corporation in total. At the end of the financial statement, there is a report showing the individual issuances and their activity separate from the corporation as a whole. Director Roy Schmidt asked if there was any plan to do refunding again on the bond to get a better interest rate. Budget Director Kelly Pfost explained that there is currently no plan to  Public Facilities Municipal Property Corporation February 3, 2021 Page 3 of 4 do a refunding as a refinance is only allowed once at non-taxable rates so if the bond were to be refinanced again, it would have to be done at taxable rates which are higher. Vice President Steve Bentz asked what happens to the unspent bond proceeds of $410,837 listed on the Statement of Net Position dated June 30, 2020 (footnote B). Nick stated that the unspent bond proceeds will be used to pay down bond debt service in the future. Pfost noted that the unspent bond proceed amount was the result of the fire station project coming in under budget. In conclusion, Nick pointed out that after July 1, 2021 the 2001 (2011 Refunding) and 2006 (2014 Refunding) issuances will be paid in full. A MOTION was made by President Amber Coleman seconded by Secretary-Treasurer Shane Cook to approve annual financial report as written. Motion carried 4 - 0 FUTURE AGENDA ITEMS/MEETINGS 4. Identify future agenda items. None received. COMMUNICATIONS 5. From the PRESIDENT on current events. None received. 6. From the BOARDMEMBERS on current events. None received. 7. From the COUNCIL LIAISON on current events. None received. 8. From the STAFF on current events. Budget Director Kelly Pfost announced that from the Town’s perspective there is no plan to issue any PFMPC bonds for the upcoming year, so unless something changes the PFMPC board will not meet again until next year. ADJOURN A MOTION was made by President Amber Coleman seconded by Director Roy Schmidt to adjourn the meeting. Motion carried 4 - 0 The meeting was adjourned at 5:41 p.m.  Public Facilities Municipal Property Corporation February 3, 2021 Page 4 of 4 ATTEST: _____________________________ ________________________________ Amber Coleman, President Shane Cook, Secretary-Treasurer CERTIFICATION I hereby certify that the foregoing minutes are a true and correct copy of the minutes of the Annual Meeting of the Town of Gilbert, Arizona Public Facilities Municipal Property Corporation held on February 3, 2021. I further certify that the meeting was duly called and held and that a quorum was present. Dated this ________ day of ________, ______. ________________________________ Shane Cook, Secretary-Treasurer