Public Facilities Municipal Property Corporation

MINUTES OF THE BOARD OF DIRECTORS OF THE TOWN OF GILBERT, ARIZONA PUBLIC FACILITIES MUNICIPAL PROPERTY CORPORATION, ANNUAL MEETING, MONDAY, FEBRUARY 7, 2022, 3:00 P.M., VIRTUAL MEETING, GILBERT, ARIZONA MEMBERS PRESENT: Amber Coleman, President; Shane Cook, Secretary- Treasurer; Ken Starks, Director; Maggie Valentini, Director; and Jeffrey Wright, Director MEMBERS ABSENT: None COUNCIL LIAISON: Councilmember Laurin Hendrix TOWN STAFF PRESENT: Kelly Pfost, Management and Budget Director; Håkon Johanson, Finance and Management Services Director; Nicholas Baldelli, Finance and Management Services Accounting Supervisor; Sandra Spoon, Management and Budget Specialist; Monica D’Ortenzio, Council Aide OTHERS PRESENT: None CALL TO ORDER President Amber Coleman called the meeting to order at 3:03 p.m. OATHS OF OFFICE Management and Budget Director Kelly Pfost gave the Oath of Office to new board members, Maggie Valentini and Jeffrey Wright. ROLL CALL Management and Budget Specialist Sandra Spoon called roll and declared a quorum was present. COMMUNICATIONS FROM CITIZENS None received. AGENDA ITEMS 1. Welcome and introduction to Municipal Property Corporation (MPC) For the benefit of the new members, President Amber Coleman 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 common 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  Public Facilities Municipal Property Corporation February 7, 2022 Page 2 of 4 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. 2. ELECTION – nomination and election of officers for 2022. Amber Coleman was nominated to continue as the President and Shane Cook was nominated to continue as the Secretary-Treasurer. A MOTION was made by Secretary-Treasurer Shane Cook and seconded by Director Ken Starks for the above nomination. Motion carried 5 - 0 Jeff Wright was the nominated as Vice President and he accepted the nomination. A MOTION was made by Secretary-Treasurer Shane Cook and seconded by President Amber Coleman for the above nomination. Motion carried 5 - 0 3. MINUTES – approval of the minutes of the meeting of February 3, 2021. A MOTION was made by Secretary-Treasurer Shane Cook and seconded by Director Ken Starks to approve the minutes of the meeting of February 3, 2021 as written. Motion carried 5–0 4. AMENDMENT TO THE PUBLIC FACILITIES BYLAWS – Consider updating the PFMPC Bylaws to reflect the timing of the annual meeting to be held each year at a time and place designated by the board. Management and Budget Director Kelly Pfost briefed the current PFMPC Bylaw section reflecting the timeline of the annual meeting and made the recommendation to update the section to reflect the timing of the annual meeting so that it can be held each year at a time and place designated by the board. A MOTION was made by Vice President Jeff Wright and seconded by Director Maggie Valentini to approve the amendment to the bylaws as suggested. Motion carried 5 - 0 5. 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, 2021 and the interim report dated December 31, 2021. 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.  Public Facilities Municipal Property Corporation February 7, 2022 Page 3 of 4 Vice President Jeff Wright asked what investments does the PFMPC hold. Finance and Management Services Accounting Supervisor Nick Baldelli explained the investments are grouped together due to the way the Town of Gilbert pools the funds and resources together which then shares that fair market value of its portion of investments and cash. Mr. Baldelli also brought attention to the Town of Gilbert disposed of a parcel of land that was originally acquired in 2009 with 2009 Bonds (later refunded in 2017). Director Ken Starks then asked of the location for the parcel of land that was disposed of and Mr. Baldelli clarified that it was the area along Germann that was originally slated to be used for the Public Safety Training Facility. Director Ken Starks then followed up with a question regarding taking a loss from a sale of land and if this is associated with the Zinke land purchases. Management and Budget Director Kelly Pfost clarified that the land was not sold at a loss (a smaller parcel was sold because road easements, etc. were removed so the dollar amount was less than the original purchase amount). Pfost also clarified the accounting is more to do with the land moving off of the MPC books and that the proceeds from sale are in the Town’s General Fund. In conclusion, Mr. Baldelli pointed out that after July 1, 2021 the 2001 (2011 Refunding) and 2006 (2014 Refunding) issuances are now paid in full. A MOTION was made by Secretary-Treasurer Shane Cook and seconded by Vice President Jeff Wright to approve annual financial report as written. Motion carried 5 - 0 FUTURE AGENDA ITEMS/MEETINGS Identify future agenda items. Management and Budget Director Kelly Pfost recommended a full review and update of the PFMPC bylaws for the next annual meeting. COMMUNICATIONS From the PRESIDENT on current events. None received. From the BOARDMEMBERS on current events. None received. From the COUNCIL LIAISON on current events. None received. From the STAFF on current events.  Public Facilities Municipal Property Corporation February 7, 2022 Page 4 of 4 Management and Budget Director Kelly Pfost thanked the board members for their time and willingness to volunteer with the MPC Board. ADJOURN President Amber Coleman adjourned the meeting at 3:41 p.m. 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 7, 2022. 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