Quail Creek CFD Meeting

REVISED District Board Meeting Agenda Pursuant to A.R.S. § 38-431.02 notice is hereby given to the public that the District Board of the Quail Creek Community Facilities District will hold a meeting at the date and time specified below at the Sahuarita Council Chambers, 375 West Sahuarita Center Way, Sahuarita, AZ. Members of the Quail Creek Community District Board will attend either in person or by telephone conference call. To better serve our community, the Sahuarita Council Chambers is wheelchair accessible. Persons with a disability may request a reasonable accommodation, such as a sign language interpreter, by contacting the District Clerk’s Office at 520- 822-8801. Requests should be made no later than three (3) working days prior to the meeting to arrange the accommodation. June 8, 2020 REGULAR MEETING AGENDA AT OR AFTER 6:30 P.M. 1. Call to Order 2. Roll Call 3. Call to the Public At this time, any member of the public is invited to address the District Board on any issue which is on tonight’s Agenda or any issue which the District Board can lawfully act upon at a future meeting. Written comments regarding any item on the agenda or any issue which the District Board can lawfully act upon may be submitted prior to the beginning of the meeting for distribution to the District Board. Pursuant to the Arizona Open Meeting Laws, the District Board may not discuss the items, but individual members of the District Board may respond to criticism made by those who have addressed the District Board, may ask staff to review the matter, or may ask that the matter be placed on a future agenda. 4. Consent Agenda Action recommended: approve the consent agenda recommendations. A. Approval of the November 12, 2019 Quail Creek Community Facilities District Regular Meeting Minutes. 5. Presentation, discussion and possible adoption of Resolution No. 38, approving a tentative budget for Fiscal Year 2021 in the amount of $1,010,640.00 pursuant to Section 48-716, Arizona Revised Statutes, as amended; setting a public hearing date on said tentative budget; filing statements and estimates of the operation and maintenance expenses of the Quail Creek Community Facilities District, the costs of capital improvements to be financed by the approved ad valorem tax levy, and the amount of all other expenditures for public infrastructure and enhanced municipal services proposed to be paid from the tax levy and of the amount to be raised to pay general obligation bonds of the Quail Creek Community Facilities District, all of which shall be provided for by the levy and collection of ad valorem taxes on the assessed value of all the real and personal property in the Quail Creek Community Facilities District; providing for notice of Regular Meeting Agenda- June 8, 2020 Page 1 of 2  QUAIL CREEK COMMUNITY FACILITIES DISTRICT MEETING AGENDA filing the statements and estimates and notice of a public hearing on the portions of the statements and estimates not relating to debt service on general obligation bonds; and providing that this resolution shall be effective after its passage and approval according to law. Action recommended: adopt the resolution. 6. Adjournment Action may be taken by the District Board on any item listed on this agenda. The District Board may vote to go into executive session pursuant to A.R.S. § 38-431.03 (A) (3) for discussion or consultation for legal advice with the District Counsel concerning any matter listed on this agenda. Notice to parents: Meetings of the Mayor and Council are audio and video recorded. If you permit your child to participate in the Council Meeting, a recording will be made. You may exercise your right not to consent by not permitting your child to participate. You and your child may also leave the Council Meeting at any time. Regular Meeting Agenda- June 8, 2020 Page 2 of 2  4.A District Board Agenda Communication TO: Honorable Chairperson and District Board FROM: Lisa Cole MMC, District Clerk MEETING DATE: June 8, 2020 SUBJECT: Approval of the November 12, 2019 Quail Creek Community Facilities District Regular Meeting Minutes. FINANCIAL / BUDGET SUMMARY STAFF RECOMMENDATION Staff recommends approval of the attached minutes. SUGGESTED MOTION I move to approve the minutes as submitted (or amended). DISCUSSION Draft minutes submitted for District Board approval. ATTACHMENTS 1. November 12, 2020 Quail Creek CFD Meeting Minutes Packet Pg. 3  4.A.1 Attachment: November 12, 2020 Quail Creek CFD Meeting Minutes (Approval of Minutes - QCCFD November 12, 2019) District Board Meeting Minutes QUAIL CREEK COMMUNITY FACILITIES DISTRICT MEETING MINUTES November 12, 2019 The District Board of the Quail Creek Community Facilities District met in the Sahuarita Council Chambers, 375 West Sahuarita Center Way, Sahuarita, AZ on Tuesday, November 12, 2019. 1. Call to Order The meeting was called to order at 6:35 PM by Chairperson Tom Murphy. 2. Roll Call Attendee Name Title Status Arrived Tom Murphy Chairperson Present Kara Egbert Vice Chairperson Present Bill Bracco Board Member Present Erik Dahl Board Member Present Simon Davis Board Member Present Melissa Hicks Board Member Present Gil Lusk Board Member Present Also in attendance were District Manager L. Kelly Udall, District Counsel Dan Hochuli and District Clerk Lisa Cole 3. Call to the Public There were no speakers. Regular Meeting Minutes- November 12, 2019 Page 1 of 2 Packet Pg. 4  QUAIL CREEK COMMUNITY FACILITIES DISTRICT MEETING MINUTES 4.A.1 4. Consent Agenda MOTION was made to approve the consent agenda recommendations. Attachment: November 12, 2020 Quail Creek CFD Meeting Minutes (Approval of Minutes - QCCFD November 12, 2019) RESULT: APPROVED [UNANIMOUS] MOVER: Gil Lusk, Board Member SECONDER: Kara Egbert, Vice Chairperson AYES: Murphy, Egbert, Bracco, Dahl, Davis, Hicks, Lusk A. Approval of the June 10, 2019 Quail Creek Community Facilities District Regular Meeting Minutes. B. Approval of Amendment No. Four (4) to Contract No. 170031 with EPS Group, Inc., for engineer services, commencing October 11, 2019 and terminating October 10, 2020; in an amount not to exceed $300,000.00. 5. Adjournment Chairperson Murphy adjourned the meeting at 6:36 PM. ______________________________ Chairperson Tom Murphy ATTEST: ______________________ Lisa Cole, MMC District Clerk CERTIFICATION I hereby certify that the foregoing minutes are a true and correct copy of the minutes of the Meeting of the District Board of the Quail Creek Community Facilities District held on the 12th day of November, 2019. I further certify that the meeting was duly called and held and that a quorum was present. Dated this 8th day of June, 2020. __________________________________ Lisa Cole, MMC District Clerk Regular Meeting Minutes- November 12, 2019 Page 2 of 2 Packet Pg. 5  5 District Board Agenda Communication TO: Honorable Chairperson and District Board FROM: A.C. Marriotti, District Treasurer MEETING DATE: June 8, 2020 SUBJECT: Presentation, discussion and possible adoption of Resolution No. 38, approving a tentative budget for Fiscal Year 2021 in the amount of $1,010,640.00 pursuant to Section 48-716, Arizona Revised Statutes, as amended; setting a public hearing date on said tentative budget; filing statements and estimates of the operation and maintenance expenses of the Quail Creek Community Facilities District, the costs of capital improvements to be financed by the approved ad valorem tax levy, and the amount of all other expenditures for public infrastructure and enhanced municipal services proposed to be paid from the tax levy and of the amount to be raised to pay general obligation bonds of the Quail Creek Community Facilities District, all of which shall be provided for by the levy and collection of ad valorem taxes on the assessed value of all the real and personal property in the Quail Creek Community Facilities District; providing for notice of filing the statements and estimates and notice of a public hearing on the portions of the statements and estimates not relating to debt service on general obligation bonds; and providing that this resolution shall be effective after its passage and approval according to law. FINANCIAL / BUDGET SUMMARY Quail Creek CFD: Will establish 2021 tentative budget in the amount of $1,010,640.00. STAFF RECOMMENDATION Staff recommends adoption of Resolution No. 38. SUGGESTED MOTION I move to adopt Resolution No. 38. DISCUSSION Presented for your approval is the fiscal year 2021 Tentative Budget for the Quail Creek Community Facilities District. Staff will give a presentation on the 2021 Tentative Budget at the meeting. If the Tentative Budget is approved, a public hearing will be scheduled for the June 22nd Board Meeting at which point the Board may adopt the 2021 Budget and establish the property tax levy for the year. Public notices will be published in accordance with State law. Packet Pg. 6  5 Quail Creek Community Facilities District Agenda Communication Property Tax Levy The budget includes a total property tax levy of $3.30 per $100 of net assessed valuation on property located within the District’s boundaries, as follows: • $3.00 per $100 of net assessed valuation to pay for annual debt service obligations and • $0.30 per $100 of net assessed valuation to pay for District operating and maintenance costs. The proposed levy for next year is the same as the current year. ATTACHMENTS 1. Resolution No. 38 2. FY2021 QCCFD Tentative Budget Presentation Packet Pg. 7  5.1 QUAIL CREEK COMMUNITY FACILITIES DISTRICT Attachment: Resolution No. 38 (Resolution No. 38: FY2021 Tentative Budget Adoption) RESOLUTION NO. 38 A RESOLUTION OF THE DISTRICT BOARD OF THE QUAIL CREEK COMMUNITY FACILITIES DISTRICT, A COMMUNITY FACILITIES DISTRICT OF ARIZONA, APPROVING A TENTATIVE BUDGET FOR FISCAL YEAR 2021 IN THE AMOUNT OF $1,010,640 PURSUANT TO SECTION 48-716, ARIZONA REVISED STATUTES, AS AMENDED; SETTING A PUBLIC HEARING DATE ON SAID TENTATIVE BUDGET; FILING STATEMENTS AND ESTIMATES OF THE OPERATION AND MAINTENANCE EXPENSES OF THE QUAIL CREEK COMMUNITY FACILITIES DISTRICT, THE COSTS OF CAPITAL IMPROVEMENTS TO BE FINANCED BY THE APPROVED AD VALOREM TAX LEVY, AND THE AMOUNT OF ALL OTHER EXPENDITURES FOR PUBLIC INFRASTRUCTURE AND ENHANCED MUNICIPAL SERVICES PROPOSED TO BE PAID FROM THE TAX LEVY AND OF THE AMOUNT TO BE RAISED TO PAY GENERAL OBLIGATION BONDS OF THE QUAIL CREEK COMMUNITY FACILITIES DISTRICT, ALL OF WHICH SHALL BE PROVIDED FOR BY THE LEVY AND COLLECTION OF AD VALOREM TAXES ON THE ASSESSED VALUE OF ALL THE REAL AND PERSONAL PROPERTY IN THE QUAIL CREEK COMMUNITY FACILITIES DISTRICT; PROVIDING FOR NOTICE OF FILING THE STATEMENTS AND ESTIMATES AND NOTICE OF A PUBLIC HEARING ON THE PORTIONS OF THE STATEMENTS AND ESTIMATES NOT RELATING TO DEBT SERVICE ON GENERAL OBLIGATION BONDS; AND PROVIDING THAT THIS RESOLUTION SHALL BE EFFECTIVE AFTER ITS PASSAGE AND APPROVAL ACCORDING TO LAW. BE IT RESOLVED BY THE DISTRICT BOARD OF QUAIL CREEK COMMUNITY FACILITIES DISTRICT as follows: WHEREAS, on September 12, 2005, the Mayor and Council of the Town of Sahuarita, Arizona (the “Town”), adopted Resolution No. 1 forming Quail Creek Community Facilities District (“QCCFD”), a community facilities district in accordance with Section 48-701 et seq., Arizona Revised Statutes, as amended; and WHEREAS, QCCFD is a special purpose district for purposes of Article IX, Section 19, Constitution of Arizona, a tax-levying public improvement district for the purposes of Article XIII, Section 7, Constitution of Arizona, and a municipal corporation for all purposes of Title 35, Chapter 3, Articles 3, 3.1., 3.2, 4 and 5, Arizona Revised Statutes, as amended, and [except as otherwise provided in Section 48-708(B), Arizona Revised Statutes, as amended] is considered to Resolution No. 38 Quail Creek Community Facilities District Page 1 of 3 Packet Pg. 8  5.1 be a municipal corporation and political subdivision of the State of Arizona, separate and apart from the Town; and WHEREAS, a primary purpose for creating QCCFD was to finance certain public improvements needed for the development known as “Quail Creek” through assessment of ad valorem taxes on all real and personal property within QCCFD; and WHEREAS, in accordance with Sections 48-719 and 48-723, Arizona Revised Statutes, as amended, a special election was held on November 8, 2005, wherein the qualified electors of Attachment: Resolution No. 38 (Resolution No. 38: FY2021 Tentative Budget Adoption) QCCFD voted to issue general obligation bonds in the maximum amount of $30,000,000 to cover costs of public infrastructure purposes, and to levy and collect an annual ad valorem tax at a rate not to exceed thirty cents (30¢) per one hundred dollars ($100) of assessed valuation for operation and maintenance expenses of QCCFD; and WHEREAS, in accordance with Sections 48-716 and 48-723, Arizona Revised Statutes, as amended, the District Treasurer of QCCFD has submitted to the District Board of QCCFD a proposed budget for fiscal year 2021, which includes statements and estimates of the operation and maintenance expenses of QCCFD, the costs of capital improvements to be financed by the authorized ad valorem tax levy, and the amount of all other expenditures for public infrastructure and enhanced municipal services proposed to be paid from the tax levy and of the amount to be raised to pay general obligation bonds of QCCFD, all of which shall be provided for by the levy and collection of ad valorem taxes on the assessed value of all the real and personal property within QCCFD; and WHEREAS, the District Board of QCCFD desires now to approve said tentative budget for fiscal year 2021, to publish notice of having filed the required statements and estimates, and to set a date (and publish a notice thereof) for a public hearing to receive comment on the tentative budget and, particularly, on the portions of the statements and estimates not relating to debt service on general obligation bonds; and WHEREAS, after said public hearing (and on or before October 1), the District Board of QCCFD expects to adopt a final budget by resolution; and WHEREAS, on or before the third Monday in August, the District Board of QCCFD also expects to order the fixing, levying and assessment of required ad valorem taxes and to cause certified copies of the order to be delivered to the Pima County Board of Supervisors; NOW, THEREFORE, BE IT RESOLVED BY THE DISTRICT BOARD OF THE QUAIL CREEK COMMUNITY FACILITIES DISTRICT, AS FOLLOWS: 1. That certain proposed budget prepared by the District Treasurer of QCCFD for fiscal year 2021, attached hereto and expressly made a part hereof as Exhibit “A” is hereby tentatively approved. 2. The statements and estimates of the operation and maintenance expenses of QCCFD, the costs of capital improvements to be financed by the approved ad valorem tax levy, and the amount of all other expenditures for public infrastructure and enhanced municipal services Resolution No. 38 Quail Creek Community Facilities District Page 2 of 3 Packet Pg. 9  5.1 proposed to be paid from the tax levy and of the amount to be raised to pay general obligation bonds of QCCFD in fiscal year 2021 are hereby filed in accordance with Arizona Revised Statutes Section 48-723(C), as amended, and are attached hereto and expressly made a part hereof as Exhibit “A.” 3. A public hearing date of June 22, 2020, beginning at or after 6:30 p.m. at the Sahuarita Town Hall Council Chamber, 375 W. Sahuarita Center Way, Sahuarita, Arizona, is hereby set to consider said tentative budget (including, but expressly not limited to, consideration of those portions of the statements and estimates not relating to debt service on general obligation Attachment: Resolution No. 38 (Resolution No. 38: FY2021 Tentative Budget Adoption) bonds of QCCFD), and said notice (attached hereto and expressly made a part hereof as Exhibit “B”) shall be published once in the Sahuarita Sun no later than ten (10) days prior to said hearing date. 4. If any provision in this Resolution is held invalid by a court of competent jurisdiction, the remaining provisions shall not be affected but shall continue in full force and effect. 5. This Resolution shall be effective after its passage and approval according to law. PASSED by the District Board of the Quail Creek Community Facilities District this 8th day of June, 2020. Tom Murphy Chairperson Quail Creek Community Facilities District ATTEST: Lisa Cole, MMC District Clerk Quail Creek Community Facilities District APPROVED AS TO FORM: Daniel J. Hochuli District Attorney Quail Creek Community Facilities District Resolution No. 38 Quail Creek Community Facilities District Page 3 of 3 Packet Pg. 10  5.1 EXHIBIT “A” FISCAL YEAR 2021 QUAIL CREEK COMMUNITY FACILITIES DISTRICT BUDGET (QCCFD STATEMENTS AND ESTIMATES OF EXPENSES FOR FISCAL YEAR 2021) Attachment: Resolution No. 38 (Resolution No. 38: FY2021 Tentative Budget Adoption) Packet Pg. 11  5.1 QUAIL CREEK COMMUNITY FACILITIES DISTRICT SOURCES AND USES OF FUNDS 2020 2021 Adopted Amended Estimated Budget Budget Budget Actual Amount SOURCES Revenues: Taxes $ 709,690 $ 709,690 $ 709,690 $ 859,690 Investment Earnings 500 500 3,500 2,000 Developer Contributions 302,220 302,220 282,200 148,950 Subtotal: 1,012,410 1,012,410 995,390 1,010,640 Attachment: Resolution No. 38 (Resolution No. 38: FY2021 Tentative Budget Adoption) Beginning Fund Balance: Restricted for Debt Service ‐ ‐ 5,320 ‐ Subtotal: ‐ ‐ 5,320 ‐ TOTAL SOURCES $ 1,012,410 $ 1,012,410 $ 1,000,710 $ 1,010,640 USES Current Expenditures: General Government $ 800 $ 800 $ 350 $ 3,850 Streets 18,030 18,030 16,620 16,670 Parks and Recreation 38,000 38,000 27,960 34,900 Subtotal: 56,830 56,830 44,930 55,420 Debt Service: Principal 685,000 685,000 685,000 705,000 Interest 266,080 266,080 266,080 245,520 Other 4,500 4,500 4,700 4,700 Subtotal: 955,580 955,580 955,780 955,220 Subtotals Combined: 1,012,410 1,012,410 1,000,710 1,010,640 Ending Fund Balance: Restricted for Debt Service ‐ ‐ ‐ ‐ Subtotal: ‐ ‐ ‐ ‐ TOTAL USES $ 1,012,410 $ 1,012,410 $ 1,000,710 $ 1,010,640 Packet Pg. 12  5.1 EXHIBIT “B” FORM OF PUBLISHED NOTICE QUAIL CREEK COMMUNITY FACILITIES DISTRICT NOTICE OF FILING STATEMENTS AND ESTIMATES AND Attachment: Resolution No. 38 (Resolution No. 38: FY2021 Tentative Budget Adoption) NOTICE OF PUBLIC HEARING NOTICE OF FILING STATEMENTS AND ESTIMATES OF THE OPERATION AND MAINTENANCE EXPENSES OF THE QUAIL CREEK COMMUNITY FACILITIES DISTRICT, THE COSTS OF CAPITAL IMPROVEMENTS TO BE FINANCED BY THE AD VALOREM TAX LEVY, AND THE AMOUNT OF ALL OTHER EXPENDITURES FOR PUBLIC INFRASTRUCTURE AND ENHANCED MUNICIPAL SERVICES PROPOSED TO BE PAID FROM THE TAX LEVY AND OF THE AMOUNT TO BE RAISED TO PAY GENERAL OBLIGATION BONDS OF THE DISTRICT; AND NOTICE OF A PUBLIC HEARING ON THE PROPOSED FISCAL YEAR 2021 BUDGET OF THE DISTRICT IN THE AMOUNT OF $1,010,640 INCLUDING A HEARING ON THOSE PORTIONS OF THE STATEMENTS AND ESTIMATES NOT RELATING TO DEBT SERVICE ON GENERAL OBLIGATION BONDS. Notice is hereby given that statements and estimates have been filed in the Office of the District Clerk of the Quail Creek Community Facilities District of the operation and maintenance expenses of the District, the costs of capital improvements to be financed by the voter-approved ad valorem tax levy, and the amount of all other expenditures for public infrastructure and enhanced municipal services proposed to be paid from the tax levy and of the amount to be raised to pay general obligation bonds of the District, all of which shall be provided for by the levy and collection of ad valorem taxes on the assessed value of all the real and personal property in the District. Notice is further given of a public hearing on the proposed fiscal year 2021 budget of the District, including (but not limited to) a hearing on those portions of the statements and estimates not relating to debt service on general obligation bonds, all pursuant to Arizona Revised Statutes §§48-716 and 48-723. Such hearing will be held by the District Board on June 22, 2020, at or after 6:30 p.m. at the Sahuarita Town Hall Council Chambers, 375 W. Sahuarita Center Way, Sahuarita, Arizona. Copies of the budget are available from the Office of the District Clerk, 375 W. Sahuarita Center Way, Sahuarita, Arizona 85629, telephone number: (520) 822-8801; on the Town of Sahuarita website: www.sahuaritaaz.gov; and at the Pima County Library, Sahuarita Branch, 725 W. Via Rancho Sahuarita Boulevard, Building #2, Sahuarita, Arizona 85629. Dated this 8th day of June, 2020. /s/ L. Kelly Udall District Manager Quail Creek Community Facilities District Packet Pg. 13  5/26/2020 5.2 Attachment: FY2021 QCCFD Tentative Budget Presentation (Resolution No. 38: FY2021 Tentative Budget Adoption) Tentative Budget Adoption Fiscal Year 2021 Board Meeting June 8, 2020 The District Formed on September 12, 2005 1,192 acres, all within Sahuarita town limits  Planned build-out @ 2,600 residences Assessor’s Info 878 residences (34% built out)  147 (20%) more than last year  118 rental properties $26.72M total net assessed valuation  $4.66M (21%) more than last year Packet Pg. 14 1  5/26/2020 5.2 The District Attachment: FY2021 QCCFD Tentative Budget Presentation (Resolution No. 38: FY2021 Tentative Budget Adoption) Tax levying public improvement district Finance acquisition and maintenance of public infrastructure and facilities Bond election authorized $30M bond capacity and debt service property tax $12.66M GO bonds issued in 2006 (term 2030)  $8.07M outstanding principal The District Relationship to Town Legally separate entity Part of the Town’s financial reporting entity  Governmental Accounting Standards Board (GASB)  Blended component unit  Special Revenue Fund  Does not separately issue financial reports. Packet Pg. 15 2  5/26/2020 5.2 FY2021 Budget: $1,010,640 Attachment: FY2021 QCCFD Tentative Budget Presentation (Resolution No. 38: FY2021 Tentative Budget Adoption) Sources: Uses: $1,010,640 $1,010,640 Balanced District Revenues 2021 Budget: $1,010,640 Developer Investment Income $2,000 Contributions $148,950 Tax Rate Unchanged $3.30 / $100 Property Taxes NAV $859,690 Packet Pg. 16 3  5/26/2020 5.2 District Expenditures Attachment: FY2021 QCCFD Tentative Budget Presentation (Resolution No. 38: FY2021 Tentative Budget Adoption) 2021 Budget: $1,010,640 Operations $55,420 Debt Service, $955,220 Resolution Approves FY2021 Tentative Budget Tentative Budget filed and made available  District Clerk, library, and website Establishes a public hearing and notice for final budget adoption  June 22, 2020 Packet Pg. 17 4