Rancho Sahuarita CFD Meeting

RANCHO SAHUARITA 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 District Board of the Rancho Sahuarita 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 District 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 Town Council on any issue listed on the Consent Agenda or any topic that the Council 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, Council 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, Rancho Sahuarita Community Facilities District Meeting Minutes. 5. Discussion and Possible Action 5.a Resolution No. 2025-0034 RSCFD FY26 Final Budget Adoption Public hearing, discussion and possible adoption of Resolution No. 2025-0034, of the District Board of the Rancho Sahuarita Community Facilities District, a community facilities district of Arizona, approving a Final Budget for Fiscal Year 2026 in the amount of $9,233,410 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.  Rancho Sahuarita CFD Meeting Agenda 6. Adjournment The District Board may take action on any item listed on this agenda. The 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: Meetings of the Board are recorded both 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 18  Rancho Sahuarita CFD Board Staff Report DATE: June 23, 2025 TITLE: Approval Minutes SUBJECT: Approval of the May 27, 2025, Rancho Sahuarita Community Facilities District 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. 05-27-25 RSCFD Meeting Minutes Page 3 of 18 RANCHO SAHUARITA 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 Steven Gillespie, Board Member Kimberly Lisk, Board Member Edgar Lytle, 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 6:04 PM. 2. Roll Call The District Clerk Lisa Cole called the roll and confirmed that a quorum was present. 3. Call to the Public There were no speakers. 4. Consent Agenda MOTION was made to approve the Consent Agenda. MOVER: Vice Chairperson Kara Egbert SECONDER: Board Member Steven Gillespie AYES: (7): Chairperson Tom Murphy, Vice Chairperson Kara Egbert, Board Member Steven Gillespie, Board Member Kimberly Lisk, Board Member Edgar Lytle, Board Member Deborah Morales, and Board Member Diane Priolo RESULT: APPROVED (7 to 0) 4.a Approval Minutes 5. Discussion and Possible Action 5.a RSCFD 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 Rancho Sahuarita CFD Board Meeting Minutes 1 Page 4 of 18  Fiscal Year 2026 Tentative Budget in the amount of $9,233,410. 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. 2025-0033. MOVER: Vice Chairperson Kara Egbert SECONDER: Board Member Edgar Lytle AYES: (7): Chairperson Tom Murphy, Vice Chairperson Kara Egbert, Board Member Steven Gillespie, Board Member Kimberly Lisk, Board Member Edgar Lytle, Board Member Deborah Morales, and Board Member Diane Priolo RESULT: APPROVED (7 to 0) 6. Adjournment Chairperson Murphy adjourned the meeting at 6:18 PM. Rancho Sahuarita CFD Board Meeting Minutes 2 Page 5 of 18  Rancho Sahuarita Community Facilities District Board Staff Report DATE: June 23, 2025 TITLE: Resolution No. 2025-0034 RSCFD FY26 Final Budget Adoption SUBJECT: Public hearing, discussion and possible adoption of Resolution No. 2025-0034, of the District Board of the Rancho Sahuarita Community Facilities District, a community facilities district of Arizona, approving a Final Budget for Fiscal Year 2026 in the amount of $9,233,410 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: Adopts FY budget of $9,233,410 EXECUTIVE SUMMARY: This agenda item provides the District Board an opportunity to adopt a budget for fiscal year 2026 and to establish the property tax levy for the year. STAFF RECOMMENDATION: Staff recommends adoption of RSCFD Resolution No. 2025-0034. SUGGESTED MOTION : I move to adopt RSCFD Resolution No. 2025-0034. DISCUSSION: This resolution adopts the fiscal year 2025 budget for the Rancho Sahuarita Community Facilities District in the amount of $9,233,410 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. Page 6 of 18 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 $4.69 per $100 net taxable assessed valuation (NTAV). The District’s debt service levy rate has been $4.69/$100 NTAV since bonds were issued in 2018. 2) The O&M tax rate is capped at $0.30 per $100 NTAV. The District’s O&M levy rate has been $0.30/$100 NTAV since the District was formed. The proposed combined property tax rate levy for fiscal year 2026 is $4.99/$100 NTAV. This is expected to generate net collections of $1,502,110, including allowances for uncollectible amounts. Investment Income: Unspent bond proceeds and property tax collections are held in trust, earning interest income, until spent on infrastructure acquisition or paying debt service obligations. Developer Contributions: Pursuant to the Development Agreement, the Master Developer is required to make stand-by contribution payments to cover debt service obligations above what is collected in property taxes. Also, the Developer is required to cover O&M shortfalls, if any, up to $30 thousand annually. EXPENDITURES Current Expenditures This budget provides the capacity to pay for the following: 1) General administrative costs 2) District engineering costs 3) Street, right-of-way, and landscaping maintenance costs along public roads in the District Debt Service: After the current year's principal payments are made, the District will have $25.97 million of outstanding general obligation bonds. Annual debt service obligations include bond principal, interest, and other costs such as bank trust fees. The principal is paid once a year on July 15. Interest is paid semi-annually. Capital Outlay: During 2026, the District has the capacity to acquire infrastructure (roadways) from the Master Developer. Bond proceeds will be used to pay for the infrastructure. FUND BALANCES There are no ending balances as the District will consume all of its resources during the year. ATTACHMENTS: 1. RSCFD Resolution No. 2025-0034 Page 7 of 18  RANCHO SAHUARITA COMMUNITY FACILITIES DISTRICT RESOLUTION NO. 2025-0034 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 2026 IN THE AMOUNT OF $9,233,410 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 RSCFD Resolution No. 2025-0034 Page 1 of 3 Page 8 of 18 exceed thirty cents (30¢) per one hundred dollars ($100) of assessed valuation for operation and maintenance expenses of RSCFD; and WHEREAS, by Resolution No. 2025-0033, adopted on May 27, 2025, the District Board of RSCFD (a) approved a tentative budget for fiscal year 2026, (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 of June 23, 2025 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 RSCFD voted to adopt the final budget for fiscal year 2026 by this Resolution No. 2025-0034, 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 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 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] /// /// /// /// RSCFD Resolution No. 2025-0034 Page 2 of 3 Page 9 of 18  PASSED by the District Board of the Rancho Sahuarita Community Facilities District this 23rd day of June 2025. Approved: Tom Murphy Chairperson Rancho Sahuarita 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 Rancho Sahuarita Community Facilities District, Pima County, Arizona, certify that the foregoing resolution is a true, correct, and accurate copy of Resolution No. 2025-0034, passed and adopted at a Voting Meeting of the Rancho Sahuarita 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 Rancho Sahuarita Community Facilities District APPROVED AS TO FORM: Jon Paladini District Counsel Rancho Sahuarita Community Facilities District RSCFD Resolution No. 2025-0034 Page 3 of 3 Page 10 of 18  EXHIBIT “A” FISCAL YEAR 2026 FINAL BUDGET RANCHO SAHUARITA COMMUNITY FACILITIES DISTRICT BUDGET (See following page) Page 11 of 18 Page 12 of 18  EXHIBIT “B” FISCAL YEAR 2025/2026 TAX LEVY NET TAXABLE ASSESSED TAX RATE VALUATION (PER $100 JURISDICTION (NTAV) TAX LEVY NTAV) RANCHO SAHUARITA COMMUNITY FACILITIES DISTRICT Secondary $31,701,537 Debt Service $1,486,802 $4.6900 Maintenance and Operation $ 95,105 $0.3000 TOTAL SECONDARY $1,581,907 $4.9900 Page 13 of 18 Budget Adoption Fiscal Year 2026 Board Meeting June 23, 2025 Page 14 of 18  FY2026 Budget: $9,233,410 Balanced Sources: Uses: $9,233,410 $9,233,410 vs 2025 Budget 47% Page 15 of 18 District Revenues & Sources Total: $9,233,410 Contributions $310,810 3% Investments $136,610 2% Tax Rate: Property Taxes Beginning $4.99/ $100 NTAV $1,502,110 Balances 16% $7,283,880 Unchanged 79% Page 16 of 18 District Expenditures Total: $9,233,410 Operations • Administration $52,450 • District Engineer • Street/ROW Maintenance 1% Debt Service Capital $1,897,080 • Roads Outlay • RR crossing 20% $7,283,880 79% Page 17 of 18 Final Steps Public Hearing Board opportunity to make reductions or other changes Approve resolution  Adopt FY2026 Budget  Establishes Property Tax Levy Page 18 of 18