Rancho Sahuarita 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 Rancho 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 Rancho Sahuarita District Board will attend either in person or by telephone conference call. To better serve our community, the 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 24, 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 May 10, 2021 Rancho Sahuarita Community Facilities District Meeting Minutes. 5. Public hearing, discussion and adoption of Resolution No. 2021-0020, of the District Board of the Rancho Sahuarita Community Facilities District, a community facilities district of Arizona, approving a Final Budget for Fiscal Year 2022 in the amount of $20,456,500 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. Regular Meeting Agenda- May 24, 2021 Page 1 of 2  Rancho Sahuarita Community Facilities District MEETING Agenda 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 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 24, 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 24, 2021 SUBJECT: Approval of the May 10, 2021 Rancho Sahuarita Community Facilities District 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. May 10, 2021 RSCFD Meeting Minutes Packet Pg. 3  4.A.1 District Board Meeting Minutes RANCHO SAHUARITA COMMUNITY FACILITIES DISTRICT MEETING MINUTES MAY 10, 2021 Attachment: May 10, 2021 RSCFD Meeting Minutes [Revision 1] (Approval of Minutes) The District Board of the Rancho Sahuarita Community Facilities District met in the Sahuarita Council Chambers, 375 West Sahuarita Center Way, Sahuarita, AZ on May 10, 2021. 1. Call to Order The meeting was called to order at 6:31 PM by Chairperson Tom Murphy. 2. Roll Call Attendee Name Title Status Arrived Deborah Morales Board Member Present Tom Murphy Chairperson Present Kara Egbert Vice Chairperson Remote Bill Bracco Board Member Absent 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. Vice Chairperson Kara Egbert participated by phone. 3. Call to the Public There were no speakers. Regular Meeting Minutes- May 10, 2021 Page 1 of 3 Packet Pg. 4  Rancho Sahuarita Community Facilities District MEETING Minutes 4.A.1 4. Consent Agenda MOTION was made to approve the consent agenda recommendations. RESULT: APPROVED [UNANIMOUS] MOVER: Melissa Hicks, Board Member SECONDER: Simon Davis, Board Member AYES: Morales, Murphy, Egbert, Davis, Hicks, Lusk ABSENT: Bill Bracco Attachment: May 10, 2021 RSCFD Meeting Minutes [Revision 1] (Approval of Minutes) A. Approval of the February 22, 2021 Rancho Sahuarita Community Facilities District Meeting Minutes. 5. Discussion and possible adoption of Resolution No. 2021-0019 of the District Board of the Rancho Sahuarita Community Facilities District, a Community Facilities District of Arizona, approving a tentative budget for Fiscal Year 2022 in the amount of $20,456,500.00 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 Rancho Sahuarita 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 Rancho Sahuarita 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 Rancho Sahuarita 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. District Treasurer A.C. Marriotti provided an overview of the proposed tentative budget for Fiscal Year 2022, in the amount of $20,456,500.00, and responded to questions from Council. Furthermore, Mr. Marriotti announced that a public hearing and final budget adoption were scheduled for the District Board meeting on May 24, 2021. MOTION was made to adopt Resolution No. 2021-0019. RESULT: ADOPTED [UNANIMOUS] MOVER: Melissa Hicks, Board Member SECONDER: Gil Lusk, Board Member AYES: Morales, Murphy, Egbert, Davis, Hicks, Lusk ABSENT: Bill Bracco Regular Meeting Minutes- May 10, 2021 Page 2 of 3 Packet Pg. 5  Rancho Sahuarita Community Facilities District MEETING Minutes 4.A.1 6. Adjournment Chairperson Tom Murphy adjourned the meeting at 6:45 PM. ______________________________ Chairperson Tom Murphy ATTEST: Attachment: May 10, 2021 RSCFD Meeting Minutes [Revision 1] (Approval of Minutes) ______________________ 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 Rancho Sahuarita Community Facilities District held on the 10th day of May, 2021. I further certify that the meeting was duly called and held and that a quorum was present. Dated this 24th day of May, 2021. __________________________________ Lisa Cole, MMC District Clerk Regular Meeting Minutes- May 10, 2021 Page 3 of 3 Packet Pg. 6  5 District Board Agenda Communication TO: Honorable Chairperson and District Board FROM: A.C. Marriotti, District Treasurer MEETING DATE: May 24, 2021 SUBJECT: Public hearing, discussion and adoption of Resolution No. 2021-0020, of the District Board of the Rancho Sahuarita Community Facilities District, a community facilities district of Arizona, approving a Final Budget for Fiscal Year 2022 in the amount of $20,456,500 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. FINANCIAL / BUDGET SUMMARY Budget: $20,456,500 STAFF RECOMMENDATION Staff recommends approval of Resolution No. 2021-0020. SUGGESTED MOTION I move to adopt Resolution No. 2021-0020. DISCUSSION This resolution adopts the fiscal year 2022 budget for the Rancho Sahuarita Community Facilities District in the amount of $20,456,500 and establishes a tax levy rate of $4.99 per $100 of net taxable 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. There have been no changes to the Tentative Budget, which was presented and approved at the May 10th Board meeting. Staff will provide the District Board and the public with a brief presentation of the final budget at the meeting. Packet Pg. 7  5 Rancho Sahuarita Community Facilities District Agenda Communication Property Tax Levy The District’s property tax rate has to components: • $4.69 per $100 of net taxable valuation to pay for annual debt service obligations and • $0.30 per $100 of net taxable valuation to pay for District administration and operating & maintenance costs. The proposed tax rate for next year is the same as the current year. ATTACHMENTS 1. Resolution No. 2021-0020 2. Exhibit A - RSCFD Budget Resolution Exhibit 3. FY2022 RSCFD Final Budget Presentation Packet Pg. 8  5.1 RANCHO SAHUARITA COMMUNITY FACILITIES DISTRICT Attachment: Resolution No. 2021-0020 [Revision 2] (RSCFD 2022 Final Budget Adoption) RESOLUTION NO. 2021-0020 A RESOLUTION OF THE DISTRICT BOARD OF THE RANCHO SAHUARITA COMMUNITY FACILITIES DISTRICT, A COMMUNITY FACILITIES DISTRICT OF ARIZONA, APPROVING A FINAL BUDGET FOR FISCAL YEAR 2022 IN THE AMOUNT OF $20,456,500 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 March 24, 2014, the Rancho Sahuarita Community Facilities District (“RSCFD”) was formed, a community facilities district in accordance with Section 48-701 et seq., Arizona Revised Statutes, as amended; and WHEREAS, RSCFD 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 RSCFD was to finance certain public infrastructure needed for the development known as “Rancho Sahuarita” through assessment of ad valorem taxes on all real and personal property within RSCFD; and WHEREAS, in accordance with Sections 48-719 and 48-723, Arizona Revised Statutes, as amended, a special election was held on August 12, 2014, wherein the qualified electors of RSCFD voted to issue general obligation bonds in the maximum amount of $60,000,000 to cover costs of public infrastructure purposes and to levy and collect an annual ad valorem tax at a rate not to Resolution No. 2021-0020 Page 1 of 3 Rancho Sahuarita Community Facilities District Packet Pg. 9  5.1 exceed thirty cents (30¢) per one hundred dollars ($100) of assessed valuation for operation and maintenance expenses of RSCFD; and WHEREAS, by Resolution No. 2021-0019, adopted on May 10, 2021, the District Board of RSCFD (a) approved a tentative budget for fiscal year 2022, (b) filed required statements and estimates of operation and maintenance expenses of RSCFD, 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 RSCFD, (c) set a date for a public Attachment: Resolution No. 2021-0020 [Revision 2] (RSCFD 2022 Final Budget Adoption) 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 RSCFD voted to adopt the final budget for fiscal year 2022 by this Resolution No. 2021-0020, 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 RANCHO SAHUARITA COMMUNITY FACILITIES DISTRICT AS FOLLOWS: 1. That certain proposed budget prepared by the RSCFD Treasurer for fiscal year 2022, attached hereto and expressly made a part hereof as Exhibit “A”, is hereby finally adopted. 2. It is hereby ORDERED that, in fiscal year 2022, an ad valorem tax be fixed, levied and assessed on the assessed value of all the real and personal property within the boundaries of RSCFD 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] /// /// /// /// Resolution No. 2021-0020 Page 2 of 3 Rancho Sahuarita Community Facilities District Packet Pg. 10  5.1 PASSED by the District Board of the Rancho Sahuarita Community Facilities District this 24th day of May, 2021. Tom Murphy Chairperson Rancho Sahuarita Community Facilities District ATTEST: Attachment: Resolution No. 2021-0020 [Revision 2] (RSCFD 2022 Final Budget Adoption) Lisa Cole, MMC District Clerk Rancho Sahuarita Community Facilities District APPROVED AS TO FORM: Daniel J. Hochuli District Counsel Rancho Sahuarita Community Facilities District Resolution No. 2021-0020 Page 3 of 3 Rancho Sahuarita Community Facilities District Packet Pg. 11  5.1 EXHIBIT “A” FISCAL YEAR 2022 FINAL BUDGET RANCHO SAHUARITA COMMUNITY FACILITIES DISTRICT BUDGET Attachment: Resolution No. 2021-0020 [Revision 2] (RSCFD 2022 Final Budget Adoption) Packet Pg. 12  5.1 EXHIBIT “B” FISCAL YEAR 2021/2022 TAX LEVY NET TAXABLE TAX RATE VALUATION (PER $100 Attachment: Resolution No. 2021-0020 [Revision 2] (RSCFD 2022 Final Budget Adoption) JURISDICTION (NTV) TAX LEVY NTV) RANCHO SAHUARITA COMMUNITY FACILITIES DISTRICT Secondary $6,950,902 Debt Service $325,997 $4.6900 Maintenance and Operation $ 20,853 $0.3000 TOTAL SECONDARY $346,850 $4.9900 Packet Pg. 13  RANCHO SAHUARITA 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: Attachment: Exhibit A - RSCFD Budget Resolution Exhibit [Revision 1] (RSCFD 2022 Final Budget Adoption) Taxes $ 77,506 $ 155,590 $ 155,590 $ 155,590 $ 338,180 117.4% 117.4% Investment Earnings 6,153 5,000 5,000 350 250 -95.0% -28.6% Developer Contributions 65,872 491,920 491,920 452,460 1,033,070 110.0% 128.3% Subtotal: 149,531 652,510 652,510 608,400 1,371,500 110.2% 125.4% Other Sources: Face Amount Debt 3,475,000 - - - 15,958,000 - - Subtotal: 3,475,000 - - - 15,958,000 - - Beginning Fund Balance: Restricted for Capital Acquisition - 3,127,000 3,127,000 3,127,040 3,127,000 0.0% 0.0% Restricted for Debt Service 303,691 - - 26,630 - - -100.0% Unassigned - - - 3,090 - - -100.0% Subtotal: 303,691 3,127,000 3,127,000 3,156,760 3,127,000 0.0% -0.9% TOTAL SOURCES $ 3,928,222 $ 3,779,510 $ 3,779,510 $ 3,765,160 $ 20,456,500 441.2% 443.3% USES Current Expenditures: General Government $ 1,634 $ 3,320 $ 3,320 $ 1,120 $ 1,670 -49.7% 49.1% Streets 189 18,850 18,850 6,700 18,700 -0.8% 179.1% Subtotal: 1,823 22,170 22,170 7,820 20,370 -8.1% 160.5% Debt Service: Principal 129,000 201,000 201,000 201,000 242,000 20.4% 20.4% Interest 291,890 424,340 424,340 424,340 1,104,130 160.2% 160.2% Other 1,500 5,000 5,000 5,000 5,000 0.0% 0.0% Debt Issuance Costs 347,250 - - - 650,000 - - Subtotal: 769,640 630,340 630,340 630,340 2,001,130 217.5% 217.5% Capital Outlay: Infrastructure - 3,127,000 3,127,000 - 8,463,000 170.6% - Subtotal: - 3,127,000 3,127,000 - 8,463,000 170.6% - Subtotals Combined: 771,463 3,779,510 3,779,510 638,160 10,484,500 177.4% 1542.9% Ending Fund Balance: Restricted for Capital Acquisition 3,127,046 - - 3,127,000 9,972,000 - 218.9% Restricted for Debt Service 26,628 - - - - - - Unassigned 3,085 - - - - - - Subtotal: 3,156,759 - - 3,127,000 9,972,000 - 218.9% TOTAL USES $ 3,928,222 $ 3,779,510 $ 3,779,510 $ 3,765,160 $ 20,456,500 441.2% 443.3% Packet Pg. 14  5/11/2021 5.3 Budget Adoption Fiscal Year 2022 Attachment: FY2022 RSCFD Final Budget Presentation (RSCFD 2022 Final Budget Adoption) Board Meeting May 24, 2021 1 FY2022 Budget: $20,456,500 Sources: Uses: $20,456,500 $20,456,500 Balanced 2 Packet Pg. 15 1  5/11/2021 5.3 District Revenues & Sources 2022 Budget: $20,456,500 Attachment: FY2022 RSCFD Final Budget Presentation (RSCFD 2022 Final Budget Adoption) Contributions $1,033,070 5% Debt Proceeds Tax Rate Investments $15,958,000 Unchanged $250 0% 78% $4.99 / $100 Property Taxes $338,180 Beginning NTAV 2% Balances $3,127,000 15% 3 District Expenditures & Uses 2022 Budget: $20,456,500 Capital Outlay $8,463,000 41% Debt Service $2,001,130 10% Operations $20,370 0% Ending Balances $9,972,000 49% 4 Packet Pg. 16 2  5/11/2021 5.3 Resolution • Public hearing • Board opportunity to make reductions or other changes Attachment: FY2022 RSCFD Final Budget Presentation (RSCFD 2022 Final Budget Adoption) • Resolution • Adopts FY2022 Budget: $20,456,500 • Establishes Tax Levy Rate @ $4.99/$100 NTAV • Same as current year 5 Packet Pg. 17 3