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HomeMy WebLinkAbout101917PA The Town of Fountain Hills endeavors to make all public meetings accessible to persons with disabilities. Please call 480-816-5100 (voice) or 1-800-367-8939 (TDD) 48 hours prior to the meeting to request a reasonable accommodation to participate in this meeting. POST ACTION AGENDA NOTICE NOTICE OF MEETING BOARD OF DIRECTORS OF THE TOWN OF FOUNTAIN HILLS MUNICIPAL PROPERTY CORPORATION WHEN: THURSDAY, OCTOBER 19, 2017 TIME: 9:00 A.M. WHERE: TOWN HALL, FOUNTAIN CONFERENCE ROOM 16705 EAST AVENUE OF THE FOUNTAINS FOUNTAIN HILLS, ARIZONA A majority of the Council members may be in attendance. No official action will be taken. Municipal Property Corporation Board of Directors will attend either in person or by telephone conference call PROCEDURE FOR ADDRESSING THE BOARD Anyone wishing to speak before the Board of Directors must fill out a speaker’s card and submit it to the Executive Assistant prior to Board of Directors discussion of that Agenda item. Speaker Cards are located in the Fountain Conference Room. Speakers will be called in the order in which the speaker cards were received either by the Executive Assistant or the Board Chair. Speakers are asked to state their name and whether or not they reside in Fountain Hills (do not provide a home address) prior to commenting and to direct their comments to the Presiding Officer and not to individual Board members. Speakers’ statements should not be repetitive. If a speaker chooses not to speak when called, the speaker will be deemed to have waived his or her opportunity to speak on the matter. Speakers may not (i) reserve a portion of their time for a later time or (ii) transfer any portion of their time to another speaker. If there is a Public Hearing, please submit the speaker card to speak to that issue during the Public Hearing. Notice is hereby given that pursuant to A.R.S. §1-602.A.9 , subject to certain specified statutory exceptions, parents have a right to consent before the State or any of its political subdivisions make a video or audio recording of a minor child. Meetings of the Town Council are audio and/or video recorded, and, as a result, proceedings in which children are present may be subject to such recording. Parents in order to exercise their rights may either file written consent with the Town Clerk to such recording, or take personal action to ensure that their child or children are not present when a recording may be made. If a child is present at the time a recording is made, the Town will assume that the rights afforded parents pursuant to A.R.S. §1-602.A.9 have been waived. AGENDA: 1. CALL TO ORDER @ 9:02 a.m. 2. ROLL CALL 3. CALL to the PUBLIC a. Pursuant to A.R.S. §38-431-01(G), public comment is permitted (not required) on matters not listed on the agenda. Any such comment (i) must be within the jurisdiction of the Commission and (ii) is subject to reasonable time, place, and manner restrictions. The Commission will not discuss or take legal action on matters raised during “Call to the Public” unless the matters are properly noticed for discussion and legal action. At the conclusion of the call to the public, individual Commissioner may (i) respond to criticism, (ii) ask staff to review a matter or (iii) ask that the matter be placed on a future Commission agenda. 4. CONSIDERATION of Approving the October 20, 2016 meeting minutes APPROVED 5. CONSIDERATION of Electing Officers APPROVED; ROGER RIGGERT APPOINTED PRESIDENT, CHESTER YON APPOINTED SECRETARY /TREASURER 6. FINANCIAL REPORT for year ending June 30, 2017 NO ACTION TAKEN 7. ADJOURNMENT@ 9:07 a.m. The Town of Fountain Hills endeavors to make all public meetings accessible to persons with disabilities. Please call 480-816-5100 (voice) or 1-800- 367-8939 (TDD) 48 hours prior to the meeting to request a reasonable accommodation to participate in this meeting. DATED This 2nd day of October, 2017 By: _________________________ Nancy Walter, Executive Assistant The Town of Fountain Hills endeavors to make all public meetings accessible to persons with disabilities. Please call 480-816-5100 (voice) or 1-800-367-8939 (TDD) 48 hours prior to the meeting to request a reasonable accommodation to participate in this meeting. NOTICE OF MEETING BOARD OF DIRECTORS OF THE TOWN OF FOUNTAIN HILLS MUNICIPAL PROPERTY CORPORATION WHEN: THURSDAY, OCTOBER 19, 2017 TIME: 9:00 A.M. WHERE: TOWN HALL, FOUNTAIN CONFERENCE ROOM 16705 EAST AVENUE OF THE FOUNTAINS FOUNTAIN HILLS, ARIZONA A majority of the Council members may be in attendance. No official action will be taken. Municipal Property Corporation Board of Directors will attend either in person or by telephone conference call PROCEDURE FOR ADDRESSING THE BOARD Anyone wishing to speak before the Board of Directors must fill out a speaker’s card and submit it to the Executive Assistant prior to Board of Directors discussion of that Agenda item. Speaker Cards are located in the Fountain Conference Room. Speakers will be called in the order in which the speaker cards were received either by the Executive Assistant or the Board Chair. Speakers are asked to state their name and whether or not they reside in Fountain Hills (do not provide a home address) prior to commenting and to direct their comments to the Presiding Officer and not to individual Board members. Speakers’ statements should not be repetitive. If a speaker chooses not to speak when called, the speaker will be deemed to have waived his or her opportunity to speak on the matter. Speakers may not (i) reserve a portion of their time for a later time or (ii) transfer any portion of their time to another speaker. If there is a Public Hearing, please submit the speaker card to speak to that issue during the Public Hearing. Notice is hereby given that pursuant to A.R.S. §1-602.A.9 , subject to certain specified statutory exceptions, parents have a right to consent before the State or any of its political subdivisions make a video or audio recording of a minor child. Meetings of the Town Council are audio and/or video recorded, and, as a result, proceedings in which children are present may be subject to such recording. Parents in order to exercise their rights may either file written consent with the Town Clerk to such recording, or take personal action to ensure that their child or children are not present when a recording may be made. If a child is present at the time a recording is made, the Town will assume that the rights afforded parents pursuant to A.R.S. §1-602.A.9 have been waived. AGENDA: 1. CALL TO ORDER 2. ROLL CALL 3. CALL to the PUBLIC a. Pursuant to A.R.S. §38-431-01(G), public comment is permitted (not required) on matters not listed on the agenda. Any such comment (i) must be within the jurisdiction of the Commission and (ii) is subject to reasonable time, place, and manner restrictions. The Commission will not discuss or take legal action on matters raised during “Call to the Public” unless the matters are properly noticed for discussion and legal action. At the conclusion of the call to the public, individual Commissioner may (i) respond to criticism, (ii) ask staff to review a matter or (iii) ask that the matter be placed on a future Commission agenda. 4. CONSIDERATION of Approving the October 20, 2016 meeting minutes 5. CONSIDERATION of Electing Officers 6. FINANCIAL REPORT for year ending June 30, 2017 7. ADJOURNMENT DATED This 2nd day of October, 2017 By: _________________________ Nancy Walter, Executive Assistant Municipal Property Corp Debt Service Fund ASSETS Cash and Investments 169,563$ Intergovernmental Receivable - Total Assets 169,563$ LIABILITIES AND FUND BALANCE Liabilities: Accounts Payable -$ Total Liabilities - Fund Balance: Restricted 169,563 Total Fund Balance 169,563 Total Liabilities and Fund Balance 169,563$ TOWN OF FOUNTAIN HILLS MUNICIPAL PROPERTY CORPORATION Balance Sheet - Governmental Funds As of June 30, 2017 FY15-16 Actual FY15-16 Budget REVENUES Excise Tax -$ -$ Investment Earnings 2,315 300 Total Revenues 2,315 300 EXPENDITURES Debt Service: Principal 370,000 370,000 Interest 22,680 22,680 Fiscal Charges 1,010 10 Total Expenditures 393,690 392,690 Excess (Deficiency) of Revenues Over/(Under) Expenditures (391,375) (392,390) OTHER FINANCING SOURCES (USES) Transfer in 249,055 249,055 Total Other Financing Sources (Uses)249,055 249,055 Net Change in Fund Balance (142,320) (143,335) Fund Balance, Beginning of Year 311,883 1,760,662 Fund Balance, End of Year 169,563$ 1,617,327$ TOWN OF FOUNTAIN HILLS MUNICIPAL PROPERTY CORPORATION Statement of Revenues, Expenditures and Changes in Fund Balance for Fiscal Year Ended June 30, 2017 Fiscal Year 2017/18 Wedbush Securities MUNICIPAL PROPERTY CORPORATION BONDS Summary 25 Fiscal Year 2017/18 Wedbush Securities DESCRIPTION OF MUNICIPAL PROPERTY CORPORATION BONDS Description Municipal Property Corporation (“MPC”) is a non-profit corporation created by the Town as a financing mechanism for the purpose of financing the construction or acquisition of Town capital improvement projects. The MPC is governed by a board of directors consisting of citizens from the community appointed by the Town Council. MPC bonds are secured by excise taxes or other undesignated general fund revenues. These bonds may be issued without a vote of the citizens and without limitation as to interest rate or amount. Most municipalities in Arizona, including the Town of Fountain Hills, have utilized non-profit corporations to finance major public projects. A significant advantage of the MPC structure is that certain municipal capital needs can be financed without regard to, or effect on, statutory municipal bonding approvals. Under this method of financing, the Town acquires the desired facilities from the non-profit corporation by means of a lease-purchase contract. In order to obtain the funds necessary for the construction of the facilities, the MPC issues its own bonds. The facility financed with the MPC bonds is then leased to the Town for lease-rental payments which mirror the semi-annual interest and annual principal payments on the MPC bonds. Under this arrangement, the Town pledges certain of the its unrestricted fines and forfeitures, license and permit fees, transaction privilege taxes, other transaction privilege, excise and business taxes, franchise fees and taxes, lease and rental payments and recreation and community program fees which the Town now or in the future imposes and collects, and all State shared sales taxes and all State shared income taxes collected and allocated or apportioned, now or hereafter, to the Town by the State of Arizona or any political subdivision thereof, or by any other governmental unit or agency and which are not required by State of Arizona law, rule or regulation to be expended for other purposes, such as motor vehicle fuel, donations, miscellaneous and sponsorships. The use of ad valorem (property) taxes for this purpose is specifically prohibited. Similar to Revenue bonds, MPC bonds would pay slightly higher interest rates than a GO bond issue. Debt Limitation Although there is no statutory limitation as to the amount of bonds the MPC may issue, there are legal limitations through the covenants in the trust indenture. 26 Maturity Total Date Principal (July 1) Principal Coupon Outstanding 2018 $360,000 %4.00% $360,000 2019 370,000 %4.00%370,000 2020 300,000 %4.00%300,000 $1,030,000 $1,030,000 Callable: (1) All MPC Bonds are secured by a pledge of certain of the Town's Excise Taxes. Non-Callable Revenue Refunding Bonds, Series 2015 Dated: 6/4/15 $1,880,000 Municipal Facilities SUMMARY OF OUTSTANDING DEBT BY ISSUE (1) Fiscal Year 2017/18 Wedbush Securities 27 Revenue Source 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17 Town TPT 7,798,027$ 7,869,821$ 8,309,100$ 8,874,453$ 9,095,347$ 9,052,183$ Charges for Services 258,999 162,084 161,376 176,541 188,469 359,614 Licenses and Permits 387,742 416,437 554,691 919,397 1,279,572 1,200,838 Franchise Fees 332,130 334,668 349,414 352,673 360,320 367,119 Fines and Forfeitures 203,350 173,024 154,024 167,491 185,279 211,190 Lease Rental Payments 206,018 213,870 252,585 269,754 255,024 284,090 Other 154,034 89,969 67,779 45,501 47,504 54,516 State Shared Sales Taxes 1,757,297 1,840,766 1,957,505 2,055,241 2,131,484 2,192,044 State Shared Income Taxes 1,898,088 2,297,203 2,506,685 2,722,433 2,707,673 2,923,870 Total 12,995,685$ 13,397,842$ 14,313,158$ 15,583,484$ 16,250,673$ 16,645,464$ HISTORICAL EXCISE TAX COLLECTIONS Excise Tax Collections Fiscal Year 2017/18 Wedbush Securities $- $2,000,000 $4,000,000 $6,000,000 $8,000,000 $10,000,000 $12,000,000 $14,000,000 $16,000,000 $18,000,000 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17 Fiscal Year 28 Fiscal Year 2017/18 Wedbush Securities MUNICIPAL PROPERTY CORPORATION BONDS Bond Sale Summary and Debt Service Requirements 29 Fiscal Year 2017/18 Wedbush Securities BOND SALE SUMMARY $1,880,000 TOWN OF FOUNTAIN HILLS, ARIZONA MUNICIPAL PROPERTY CORPORATION EXCISE TAX REVENUE REFUNDING BOND, SERIES 2015 (PRIVATE PLACEMENT) Purpose of Financing: The Bonds were issued to refund prior bonds as follows: Maturity Principal Amount Date Amount Being Redemption Redemption Refunded Issue (July 1) Outstanding Refunded Date Price Series 2005 Refunding Bonds 2015 $995,000 $995,000 N/A N/A 2016 445,000 445,000 7/1/15 100.00% 2017 345,000 345,000 7/1/15 100.00 2018 340,000 340,000 7/1/15 100.00 2019 360,000 360,000 7/1/15 100.00 2020 295,000 295,000 7/1/15 100.00 $2,780,000 Dated Date: June 4, 2015 Closing Date: June 4, 2015 Maturity Range: July 1, 2016 to July 1, 2020 Average Bond Life: 2.884 years Early Redemption: The Bonds are not subject to early redemption. Bond Yield: 1.62% Bond Ratings: Bond ratings not applied for. Current Bond Registrar and Paying Agent: Zions First National Bank Bond Counsel: Gust Rosenfeld P.L.C. Purchaser: J.P. Morgan Chase Bank 30 $1,880,000 Town of Fountain Hills, Arizona Municipal Property Corporation, Municipal Facilities Revenue Refunding Bonds, Series 2015 Debt Service Schedule Date Principal Coupon Interest Total P+I Fiscal Total 07/01/2017 ----- 01/01/2018 --8,343.00 8,343.00 - 07/01/2018 360,000.00 1.620%8,343.00 368,343.00 376,686.00 01/01/2019 --5,427.00 5,427.00 - 07/01/2019 370,000.00 1.620%5,427.00 375,427.00 380,854.00 01/01/2020 --2,430.00 2,430.00 - 07/01/2020 300,000.00 1.620%2,430.00 302,430.00 304,860.00 Total $1,030,000.00 -$32,400.00 $1,062,400.00 - Fiscal Year 2017/18 Wedbush Securities 31 Fiscal Year 2017/18 Wedbush Securities MUNICIPAL PROPERTY CORPORATION BONDS Allocation Breakouts 32 $1,880,000 Town of Fountain Hills, Arizona MPC, Municipal Facilities Revenue Refunding Bonds, Series 2015 - Civic Center I Portion Debt Service Schedule Date Principal Coupon Interest Total P+I Fiscal Total 07/01/2017 ----- 01/01/2018 --8,343.00 8,343.00 - 07/01/2018 360,000.00 1.620%8,343.00 368,343.00 376,686.00 01/01/2019 --5,427.00 5,427.00 - 07/01/2019 370,000.00 1.620%5,427.00 375,427.00 380,854.00 01/01/2020 --2,430.00 2,430.00 - 07/01/2020 300,000.00 1.620%2,430.00 302,430.00 304,860.00 Total $1,030,000.00 -$32,400.00 $1,062,400.00 - Fiscal Year 2017/18 Wedbush Securities 33