Quail Creek CFD Meeting

QUAIL CREEK CFD MEETING AGENDA Monday, June 23, 2025 6:00 PM Sahuarita Town Hall 375 W. Sahuarita Center Way, Sahuarita, AZ 85629 In accordance with A.R.S. § 38-431.02, notice is hereby given to the public that the Quail Creek Community Facilities District will hold a meeting on the date, time, and location specified above. Members of the District Board will attend either in person or virtually. To better serve our community, the Sahuarita Council Chambers is wheelchair accessible. Individuals with disabilities may request reasonable accommodations, such as a sign language interpreter, by contacting the Town Clerk’s Office at 520-822-8801. Requests should be made no later than three working days prior to the meeting to allow for proper arrangements. All attendees are expected to observe rules of propriety, decorum, and good conduct. Unauthorized comments from the audience, signs, and disruptive behavior will not be tolerated in the Sahuarita Council Chambers. Violations may result in being banned from this and future meetings. Please remember to turn off or silence all electronic devices during the meeting. 1. Call to Order 2. Roll Call 3. Call to the Public The public is invited to address the District Board on any issue listed on the Consent Agenda or any topic that the Board can legally discuss at a future meeting. Each speaker will have a maximum of three minutes to speak. For groups of ten or more attendees, a designated spokesperson may be appointed, and that person will be allowed ten minutes to speak. Written comments on agenda items may be submitted before the meeting for distribution. According to Arizona Open Meeting Laws, Board Members cannot discuss these items during the meeting, but they can respond to public criticism, request staff review, or suggest future agenda items. 4. Consent Agenda 4.a Approval Minutes Approval of the May 27, 2025 Quail Creek CFD Meeting Minutes 5. Discussion and Possible Action 5.a Resolution No. 50 QCCFD FY2026 Final Budget Adoption Public hearing, discussion and possible adoption of Resolution No. 50 of the District Board of the Quail Creek Community Facilities District, a community facilities district of Arizona, approving a Final Budget for Fiscal Year 2026 in the amount of $1,107,640 pursuant to Section 48-716, Arizona Revised Statutes, as amended; ordering that an ad valorem tax be fixed, levied and assessed on the assessed value of all the real and personal property within the boundaries of the District in amounts specified in the filed statements and estimates; providing for certified copies of this Resolution and order to be delivered to the Pima County Board of Supervisors and the Arizona Department of Revenue; and providing that this Resolution shall be effective after its passage and approval according to law.  Town Council Meeting Agenda 6. Adjournment The District Board may take action on any item listed on this agenda. The District Board may vote to enter an executive session under A.R.S. § 38-431.03 (A) (3) for discussion or consultation with the District Counsel regarding any matters on the agenda. Notice to Parents: The District Board meetings are recorded in audio and video. If you allow your child to participate in the Board Meeting, a recording will be made. You have the right to decline consent by not permitting your child to participate. You and your child may also leave the Board Meeting at any time. Page 2 of 19  Quail Creek CFD Board Staff Report DATE: June 23, 2025 TITLE: Approval Minutes SUBJECT: Approval of the May 27, 2025 Quail Creek CFD Meeting Minutes FROM: Lisa Cole MMC, District Clerk FINANCIAL / BUDGET SUMMARY: None. EXECUTIVE SUMMARY: State law (A.R.S. §38-431.01) requires public bodies to provide and publish meeting minutes to document discussions and legal action taken by the District Board. The Board can make the corrections needed to the meeting minutes before approval. STAFF RECOMMENDATION: Staff recommends approval of minutes. SUGGESTED MOTION : I move to approve the minutes of May 27, 2025. DISCUSSION: Draft Minutes submitted for District Board approval. ATTACHMENTS: 1. 05-27-2025 QCCFD Meeting Minutes Page 3 of 19 QUAIL CREEK CFD MEETING MINUTES May 27, 2025 6:00 PM Sahuarita Town Hall 375 W. Sahuarita Center Way, Sahuarita, AZ 85629 Members Present: Chairperson Tom Murphy, Vice Chairperson Kara Egbert, Board Member Kimberly Lisk, Board Member Edgar Lytle, Board Member Steven Gillespie, Board Member Deborah Morales, Board Member Diane Priolo Also in Attendance: District Counsel Jon Paladini, District Clerk Lisa Cole _____________________________________________________________________ 1. Call to Order The meeting was called to order by Chairperson Tom Murphy at 6:18 PM. 2. Roll Call The Board Clerk Lisa Cole confirmed that a quorum was present. 3. Call to the Public There were no speakers. 4. Consent Agenda MOVER: Vice Chairperson Kara Egbert SECONDER: Board Member Steven Gillespie AYES: (7): Chairperson Tom Murphy, Vice Chairperson Kara Egbert, Board Member Kimberly Lisk, Board Member Edgar Lytle, Board Member Steven Gillespie, Board Member Deborah Morales, and Board Member Diane Priolo RESULT: APPROVED (7 to 0) 4.a Approval of Minutes 5. Discussion and Possible Action 5.a QCCFD 2026 Tentative Budget Approval District Treasurer A.C. Marriotti provided a summary of the district revenues and sources, expenditures, and uses for funding sources for the Fiscal Year 2026 Tentative Budget in the amount of $1,107,640. Quail Creek CFD Board Meeting Minutes 1 Page 4 of 19  Additionally, Mr. Marriotti announced that a public hearing and final budget adoption were scheduled for the District Board meeting on June 23, 2025. MOTION was made to adopt Resolution No. 49. MOVER: Board Member Steven Gillespie SECONDER: Board Member Diane Priolo AYES: (7): Chairperson Tom Murphy, Vice Chairperson Kara Egbert, Board Member Kimberly Lisk, Board Member Edgar Lytle, Board Member Steven Gillespie, Board Member Deborah Morales, and Board Member Diane Priolo RESULT: APPROVED (7 to 0) 6. Adjournment Chairperson Murphy adjourned the meeting at 6:31 PM. Quail Creek CFD Board Meeting Minutes 2 Page 5 of 19  Quail Creek Community Facilities District Board Staff Report DATE: June 23, 2025 TITLE: Resolution No. 50 QCCFD FY2026 Final Budget Adoption SUBJECT: Public hearing, discussion and possible adoption of Resolution No. 50 of the District Board of the Quail Creek Community Facilities District, a community facilities district of Arizona, approving a Final Budget for Fiscal Year 2026 in the amount of $1,107,640 pursuant to Section 48-716, Arizona Revised Statutes, as amended; ordering that an ad valorem tax be fixed, levied and assessed on the assessed value of all the real and personal property within the boundaries of the District in amounts specified in the filed statements and estimates; providing for certified copies of this Resolution and order to be delivered to the Pima County Board of Supervisors and the Arizona Department of Revenue; and providing that this Resolution shall be effective after its passage and approval according to law. FROM: A.C. Marriotti, District Treasurer FINANCIAL / BUDGET SUMMARY: Establish 2026 Budget: $1,107,640 EXECUTIVE SUMMARY: This agenda item provides the District Board an opportunity to adopt the Budget for fiscal year 2026 and to establish the property tax levy for the year. STAFF RECOMMENDATION: Staff recommends adoption of QCCFD Resolution No. 50 SUGGESTED MOTION : I move to adopt QCCFD Resolution No. 50. DISCUSSION: This resolution adopts the fiscal year 2026 budget for the Quail Creek Community Facilities District in the amount of $1,107,640 and establishes a tax levy rate of $2.2576 per $100 of net taxable assessed valuation on property within the District. A public hearing must be held before the Board may adopt the budget. Notice of this public hearing has been posted and published according to State statutes. Page 6 of 19 There have been no changes to the Tentative Budget, which was presented and approved at the May 27th Board meeting. Staff will provide the District Board and the public with a brief presentation of the final budget at the meeting. REVENUES Property Taxes The District levies a property tax to (1) pay for debt service obligations and (2) pay for operations and maintenance (O&M) costs. 1) The debt service tax rate is determined by calculation based on the assessed valuation of property within the District. Pursuant to the Development Agreement, however, this rate is capped at $3.00 per $100 net taxable assessed valuation (NTAV). The District’s debt service levy rate is currently $2.0976/$100 NTAV. However, based on the County Assessor’s final assessments for fiscal year 2025, the tax rate to cover debt service may be reduced to a rate of $1.9576/$100 NTAV. This rate will continue to decline as the District builds out and property values increase. Outstanding bonds will be paid off in 2030, at which point this levy will cease unless additional bonds are issued. 2) The O&M tax rate is capped at $0.30/$100 NTAV. The District has levied a rate of $0.30/$100 NTAV since the District was formed. The proposed combined property tax rate levy for fiscal year 2026 is $2.2576/$100 NTAV. This is expected to generate net collections of $1,089,060, including allowances for uncollectible amounts. Investment Income: Property tax collections are held in trust, earning interest income, until debt service obligations are paid. Developer Contributions: No developer contributions are budgeted. As property valuations are sufficient to cover debt service obligations, the Master Developer’s stand-by contribution payment is no longer needed. EXPENDITURES Current Expenditures This budget provides the capacity to pay for the following: 1) General administrative costs 2) Street, right-of-way, and landscaping maintenance costs along public roads in the District 3) A portion of the Quail Creek Veterans Municipal Park maintenance costs (remaining costs are paid for out of the Town of Sahuarita General Fund) Debt Service These costs include bond principal and interest, and other costs such as bank trust fees. The principal is paid once a year. Interest is paid semi-annually. Page 7 of 19 In 2006, the District issued $12.66 million in bonds to pay for roadways, portions of the Quail Creek Veterans Municipal Park, wash crossings, landscaping, and sewer lines. After the current year principal payment is made, $4.33 million of outstanding principal will remain. The bonds will be paid off in 2030. FUND BALANCES There are no ending fund balances budgeted for 2026. The District is expected to consume all its resources during the year. ATTACHMENTS: 1. QCCFD Resolution No. 50 2. FY2026 QCCFD Budget Adoption Presentation Page 8 of 19  QUAIL CREEK COMMUNITY FACILITIES DISTRICT RESOLUTION NO. 50 A RESOLUTION OF THE DISTRICT BOARD OF THE QUAIL CREEK COMMUNITY FACILITIES DISTRICT, A COMMUNITY FACILITIES DISTRICT OF ARIZONA, APPROVING A FINAL BUDGET FOR FISCAL YEAR 2026 IN THE AMOUNT OF $1,107,640 PURSUANT TO SECTION 48-716, ARIZONA REVISED STATUTES, AS AMENDED; ORDERING THAT AN AD VALOREM TAX BE FIXED, LEVIED AND ASSESSED ON THE ASSESSED VALUE OF ALL THE REAL AND PERSONAL PROPERTY WITHIN THE BOUNDARIES OF THE DISTRICT IN AMOUNTS SPECIFIED IN THE FILED STATEMENTS AND ESTIMATES; PROVIDING FOR CERTIFIED COPIES OF THIS RESOLUTION AND ORDER TO BE DELIVERED TO THE PIMA COUNTY BOARD OF SUPERVISORS AND THE ARIZONA DEPARTMENT OF REVENUE; AND PROVIDING THAT THIS RESOLUTION SHALL BE EFFECTIVE AFTER ITS PASSAGE AND APPROVAL ACCORDING TO LAW. 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 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 infrastructure 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 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 QCCFD Resolution No. 50 Page 1 of 3 Page 9 of 19 not to exceed thirty cents (30¢) per one hundred dollars ($100) of assessed valuation for operation and maintenance expenses of QCCFD; and WHEREAS, by Resolution No. 49, adopted on May 27, 2025, the District Board of QCCFD (a) approved a tentative budget for fiscal year 2026, (b) filed required statements and estimates of 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, (c) set a date of June 24, 2024, for a public hearing on the tentative budget and particularly, on the portions of the statements and estimates not relating to debt service on general obligation bonds, and (d) provided for notice of the filing and of the public hearing date; and WHEREAS, at the conclusion of the public hearing, the District Board of QCCFD voted to adopt the final budget for fiscal year 2026 by this Resolution No. 50, and ordered the fixing, levying and assessment of the amounts to be raised by ad valorem taxes. 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 QCCFD Treasurer for fiscal year 2026, attached hereto and expressly made a part hereof as Exhibit “A”, is hereby finally adopted. 2. It is hereby ORDERED that, in fiscal year 2026, an ad valorem tax be fixed, levied and assessed on the assessed value of all the real and personal property within the boundaries of QCCFD in the amounts set forth in the statements and estimates attached hereto and expressly made a part hereof as Exhibit “B”. 3. Certified copies of the Resolution and Order shall be delivered to Pima County (inasmuch as the tax levy must be filed by the Pima County Board of Supervisors on or before the third Monday in August). 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. [SEE NEXT PAGE FOR SIGNATURES] /// /// /// /// QCCFD Resolution No. 50 Page 2 of 3 Page 10 of 19  PASSED by the District Board of the Quail Creek Community Facilities District this 23rd day of June 2025. Approved: Tom Murphy Chairperson Quail Creek Community Facilities District CERTIFICATION OF RECORDING OFFICER State of Arizona ) County of Pima ) ss. I, the undersigned, Lisa Cole, MMC, being the duly appointed, qualified District Clerk of the Quail Creek Community Facilities District, Pima County, Arizona, certify that the foregoing resolution is a true, correct, and accurate copy of Resolution No. 50, passed and adopted at a Voting Meeting of the Quail Creek Community Facilities District, Pima County, Arizona, held on the 23rd day of June 2025, at which a quorum was present, and by a _____ vote, _____ voted in favor of said resolution. Given under my hand this 23rd day of June 2025. Lisa Cole District Clerk Quail Creek Community Facilities District APPROVED AS TO FORM: Jon Paladini District Counsel Quail Creek Community Facilities District QCCFD Resolution No. 50 Page 3 of 3 Page 11 of 19  EXHIBIT “A” FISCAL YEAR 2026 QUAIL CREEK COMMUNITY FACILITIES DISTRICT BUDGET [See following page.] Page 12 of 19 Page 13 of 19  EXHIBIT “B” FISCAL YEAR 2025/2026 TAX LEVY NET TAXABLE ASSESSED TAX RATE VALUATION TAX (PER $100 JURISDICTION (NTAV) LEVY NTAV) QUAIL CREEK COMMUNITY FACILITIES DISTRICT Secondary $52,360,545 Debt Service $1,025,010 $1.9576 Maintenance and Operation $ 157,082 $0.3000 TOTAL SECONDARY $1,182,092 $2.2576 Page 14 of 19 Budget Adoption Fiscal Year 2026 Board Meeting June 23, 2025 Page 15 of 19  FY2026 Budget: $1,107,640 Balanced Sources: Uses: $1,107,640 $1,107,640 vs 2025 Budget 0.2% Page 16 of 19 District Revenues & Sources Total: $1,107,640 Investments $5,280 Fund Balances 1% $13,300 1% Property Taxes O&M $149,040 13% Tax Rate: $2.26/$100 NTAV Lower by: $0.14/$100 NTAV Property Taxes Debt Svc $940,020 85% Page 17 of 19 District Expenditures Total: $1,104,650 Debt Service Operations • Administration $953,320 $154,320 • Street/ROW Maintenance 86% 14% • QCVM Park Page 18 of 19 Final Steps Public Hearing Board opportunity to make reductions or other changes Approve resolution  Adopt FY2026 Budget  Establishes Property Tax Levy Page 19 of 19