Quail Creek CFD Meeting

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. May 10, 2021 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 October 26, 2020 Quail Creek Community Facilities District Regular Meeting Minutes. 5. Discussion and possible adoption of Resolution No. 40 of the District Board of the Quail Creek Community Facilities District, a Community Facilities District of Arizona, approving a tentative budget for Fiscal Year 2022 in the amount of $1,040,910 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 Regular Meeting Agenda- May 10, 2021 Page 1 of 2  QUAIL CREEK COMMUNITY FACILITIES DISTRICT MEETING AGENDA 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. 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 District Board are audio and video recorded. If you permit your child to participate in the 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 meeting at any time. Regular Meeting Agenda- May 10, 2021 Page 2 of 2  4.A District Board Agenda Communication TO: Honorable Chairperson and District Board FROM: Lisa Cole MMC, District Clerk MEETING DATE: May 10, 2021 SUBJECT: Approval of the October 26, 2020 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. October 26, 2020 QCCFD Meeting Minutes Packet Pg. 3  4.A.1 District Board Meeting Minutes Attachment: October 26, 2020 QCCFD Meeting Minutes [Revision 1] (Approval of Minutes) QUAIL CREEK COMMUNITY FACILITIES DISTRICT MEETING MINUTES October 26, 2020 The District Board of the Quail Creek Community Facilities District met in the Sahuarita Council Chambers, 375 West Sahuarita Center Way, Sahuarita, AZ on Monday, October 26, 2020. 1. Call to Order The meeting was called to order at 6:34 PM by Chairperson Tom Murphy. 2. Roll Call Attendee Name Title Status Arrived Tom Murphy Chairperson Present Kara Egbert Vice Chairperson Remote Bill Bracco Board Member Present Simon Davis Board Member Present Melissa Hicks Board Member Present Gil Lusk Board Member Present Deborah Morales Board Member Present Also in attendance were District Manager L. Kelly Udall, District Counsel Dan Hochuli and District Clerk Lisa Cole. Vice Chairperson Kara Egbert participated by phone. 3. Call to the Public There were no speakers. Regular Meeting Minutes- October 26, 2020 Page 1 of 2 Packet Pg. 4  QUAIL CREEK COMMUNITY FACILITIES DISTRICT MEETING MINUTES 4.A.1 4. Consent Agenda RESULT: APPROVED [UNANIMOUS] MOVER: Bill Bracco, Board Member SECONDER: Gil Lusk, Board Member AYES: Murphy, Egbert, Bracco, Davis, Hicks, Lusk, Morales A. Approval of the June 22, 2020 Quail Creek Community Facilities District Regular Meeting Attachment: October 26, 2020 QCCFD Meeting Minutes [Revision 1] (Approval of Minutes) Minutes. B. Approval of Amendment No. Five (5) to Contract No. 170031 with EPS Group, Inc., for engineer services, commencing October 11, 2020 and terminating October 10, 2021; in an amount not to exceed $300,000.00. 5. Adjournment Chairperson Tom Murphy adjourned the meeting at 6:35 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 26th day of October, 2020. I further certify that the meeting was duly called and held and that a quorum was present. Dated this 10th day of May, 2021. __________________________________ Lisa Cole, MMC District Clerk Regular Meeting Minutes- October 26, 2020 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: May 10, 2021 SUBJECT: Discussion and possible adoption of Resolution No. 40 of the District Board of the Quail Creek Community Facilities District, a Community Facilities District of Arizona, approving a tentative budget for Fiscal Year 2022 in the amount of $1,040,910 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 Tentative Budget: $1,040,910 STAFF RECOMMENDATION Staff recommends adoption of Resolution No. 40. SUGGESTED MOTION I move to adopt Resolution No. 40. DISCUSSION Presented for your approval is the fiscal year 2022 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 May 24th Board Meeting at which point the Board may adopt the 2022 Budget and establish the property tax levy for the year. Packet Pg. 6  5 Quail Creek Community Facilities District Agenda Communication Public notices will be published in accordance with State law. Property Tax Levy The budget includes a total property tax levy at a rate of $3.30 per $100 of net taxable 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. QCCFD Resolution No. 40 2. QCCFD Resolution No. 40 Exhibit A 3. FY2022 QCCFD Tentative Budget Presentation Packet Pg. 7  5.1 Attachment: QCCFD Resolution No. 40 [Revision 2] (QCCFD 2022 Tentative Budget Adoption) QUAIL CREEK COMMUNITY FACILITIES DISTRICT RESOLUTION NO. 40 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 2022 IN THE AMOUNT OF $1,040,910 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. 40 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 Attachment: QCCFD Resolution No. 40 [Revision 2] (QCCFD 2022 Tentative Budget Adoption) amended, a special election was held on November 8, 2005, wherein the qualified electors of 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 2022, 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 2022, 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 2022, 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. 40 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 2022 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 May 24, 2021, 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 Attachment: QCCFD Resolution No. 40 [Revision 2] (QCCFD 2022 Tentative Budget Adoption) of those portions of the statements and estimates not relating to debt service on general obligation 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 10th day of May, 2021. 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. 40 Quail Creek Community Facilities District Page 3 of 3 Packet Pg. 10  5.1 EXHIBIT “A” FISCAL YEAR 2022 QUAIL CREEK COMMUNITY FACILITIES DISTRICT BUDGET (QCCFD STATEMENTS AND ESTIMATES OF EXPENSES FOR FISCAL YEAR 2022) Attachment: QCCFD Resolution No. 40 [Revision 2] (QCCFD 2022 Tentative Budget Adoption) Packet Pg. 11  5.1 EXHIBIT “B” FORM OF PUBLISHED NOTICE QUAIL CREEK COMMUNITY FACILITIES DISTRICT NOTICE OF FILING STATEMENTS AND ESTIMATES Attachment: QCCFD Resolution No. 40 [Revision 2] (QCCFD 2022 Tentative Budget Adoption) AND 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 2022 BUDGET OF THE DISTRICT IN THE AMOUNT OF $1,040,910 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 2022 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 May 24, 2021, 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 10th day of May, 2021. /s/ L. Kelly Udall District Manager Quail Creek Community Facilities District Packet Pg. 12  QUAIL CREEK COMMUNITY FACILITIES DISTRICT 5.2 SPECIAL REVENUE FUND SOURCES AND USES OF FUNDS 2020 2021 2022 % Change Actual Adopted Amended Estimated Budget From From Amount Budget Budget Actual Amount Amended Estimated SOURCES Revenues: Taxes $ 727,439 $ 859,690 $ 859,690 $ 872,910 $ 1,006,910 17.1% 15.4% Investment Earnings 3,887 2,000 2,000 100 100 -95.0% 0.0% Developer Contributions 299,795 148,950 148,950 138,600 33,900 -77.2% -75.5% Attachment: QCCFD Resolution No. 40 Exhibit A (QCCFD 2022 Tentative Budget Adoption) Subtotal: 1,031,121 1,010,640 1,010,640 1,011,610 1,040,910 3.0% 2.9% Beginning Fund Balance: Restricted for Debt Service 5,318 - - 18,270 - - -100.0% Unassigned - - - (1,550) - - -100.0% Subtotal: 5,318 - - 16,720 - - -100.0% TOTAL SOURCES $ 1,036,439 $ 1,010,640 $ 1,010,640 $ 1,028,330 $ 1,040,910 3.0% 1.2% USES Current Expenditures: General Government $ 72 $ 3,850 $ 3,850 $ 1,760 $ 4,320 12.2% 145.5% Streets 12,157 16,670 16,670 14,830 18,790 12.7% 26.7% Parks and Recreation 51,728 34,900 34,900 56,520 63,730 82.6% 12.8% Subtotal: 63,957 55,420 55,420 73,110 86,840 56.7% 18.8% Debt Service: Principal 685,000 705,000 705,000 705,000 725,000 2.8% 2.8% Interest 266,061 245,520 245,520 245,520 224,370 -8.6% -8.6% Other 4,700 4,700 4,700 4,700 4,700 0.0% 0.0% Subtotal: 955,761 955,220 955,220 955,220 954,070 -0.1% -0.1% Subtotals Combined: 1,019,718 1,010,640 1,010,640 1,028,330 1,040,910 3.0% 1.2% Ending Fund Balance: Restricted for Debt Service 18,271 - - - - - - Unassigned (1,550) - - - - - - Subtotal: 16,721 - - - - - - TOTAL USES $ 1,036,439 $ 1,010,640 $ 1,010,640 $ 1,028,330 $ 1,040,910 3.0% 1.2% Packet Pg. 13  4/26/2021 5.3 Tentative Budget Adoption Attachment: FY2022 QCCFD Tentative Budget Presentation (QCCFD 2022 Tentative Budget Adoption) Fiscal Year 2021 Board Meeting May 10, 2021 1 The District Formed on September 12, 2005 1,192 acres, all within Sahuarita town limits  Planned build-out @ 2,600 residences County Assessor’s Info 993 residences (38% built out)  115 (13%) more than last year  179 rental properties $30.82M total net assessed valuation  $4.10M (15%) more than last year 2 Packet Pg. 14 1  4/26/2021 5.3 The District Tax levying public improvement district Attachment: FY2022 QCCFD Tentative Budget Presentation (QCCFD 2022 Tentative Budget Adoption) 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)  $7.37M outstanding principal 3 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. 4 Packet Pg. 15 2  4/26/2021 5.3 FY2022 Budget: $1,040,910 Attachment: FY2022 QCCFD Tentative Budget Presentation (QCCFD 2022 Tentative Budget Adoption) Sources: Uses: $1,040,910 $1,040,910 Balanced 5 District Revenues 2022 Budget: $1,040,910 Contributions $33,900 Tax Rate Property Taxes Unchanged 3% $1,006,910 Investments 97% $100 0% $3.30 / $100 NTAV 6 Packet Pg. 16 3  4/26/2021 5.3 District Expenditures 2022 Budget: $1,040,910 Attachment: FY2022 QCCFD Tentative Budget Presentation (QCCFD 2022 Tentative Budget Adoption) Operations Debt Service $86,840 $954,070 8% 92% 7 Resolution Approves FY2022 Tentative Budget Tentative Budget filed and made available  District Clerk and website Establishes a public hearing and notice for final budget adoption  May 24, 2021 8 Packet Pg. 17 4