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HomeMy WebLinkAbout2026.0602.EMCFD.MINUTES.APPROVEDTOWN OF F�IJNTAIN HILLS MINUTES OF THE REGU�AR BaAR❑ M�ETING �F THE EAGLE MOUNTAIN C�MMIJNITY FACILITIES D15TRICT JUNE 2, 2�26 A Regular Meeting of the Fvuntain Hills Eagle Mauntain Cammunity Facilities ❑istri�t BQard was convened at 16705 E. A��nue of th� Fountains in ❑p�n and public session at 5:15 p.m. Mem�ers Present: Board Chairman Gerry Friedel; Board Vice Chairman Gayle Earle; Baard Member Brenda Kalivianakis; Board Member Ri�k Watts; Board Member Peggy McMahon; 6oard Member Allen 5killicvrn Board Member Hannah Larrabee attended by telephvne canference Gall Staff Pressnt: District Manager Racha�l Goodwin; ❑istrict Attorn�y Jennifer J. Wright; District Clerk Bevelyn J. Bender ��TAj��l o :� �� � �� , � G � �� �. ���1 n � ,] � �� r1 � . . �`� �f��hat is A��tia 7[1'J�1N UF FOUN'fAIN HI�LS lUNE :, 2�2C EAG� E M�Ur�Tl11N Cf3MMLiNlTY FACItIT1E5 DfSTRICT MEETr31tr h�lINUTES Post-Praduction File T�wn af Fountain Hills Eagle M�untain Commur►ity Facilities District Meeting Minutes June 2, 2DZ6 TransGriptian Pro�ided By: eScribers, LLC � * * * * Transcription is provided in ❑rder to faciiitate cammunicatian ac�essibility and may not be a totally verhatim recard of the proceedings. ***** Page 1 of 12 T[aWFI C7F FQUId7AIN HiLL5 Jt�NE 2, 2075 EAGLE M�LINTAIi�! COfNiJIUf�4lTY FACILIi'i�5 �15TRICT MEETiiVG MINUTFS BENDER: 6oard Member 5killicorn. SKILLICORN: Here. BEN��R: Board Member Kali�ianakis. KALIViANAK15: Here. BENDE�: Bflard Memher Watts. WA7r5: Here. BENDER: Board Member Larrabee. I had -- she's nat anline yet. And Bvard Member McMahon. MCMAHO�l: Here. SENDER: Chairman, you ha�e a quorum. CHAIRMAN FRIEDEL: Thank you. So we are gaing to be ha�ing consideratian and passible action regarding the minutes of the Eagle Mountain Maintenance District Board meeting of June 3rd. Are there any comment cards, Clerk? BENDER: No, Chairman. CHAIRMAN FRIEQEL: Thank you. Is there any Board dis�ussian? Can I get a motion far appro�al? EARLE: S❑ movec#. MCMAHON: 5ecor�d. CHAIRMAN FRIEQEL: We have a motion and a second. Can we g�t a�oll �ail �ote, please? BENDER: 6aard Member McMahon. MCMAHON: Aye. BENDER: Board Mem�er Vllatts. WATTS: Aye. BENDER: Board Memf�er Skillicorn. SKILLIC�RN: YeS. BENDER: Board Memt�er Kali�ianakis. Page 2 of 12 ra�v�v a� �o�n�rasN Hr��_� JUNF 2. 20E6 EAGLE �i�:.liViAlN COMIVIUNIiY FACiLiTltS D15TRiCT MEE7iNG P!l1�7LfTE� KALIVIANAKIS: Aye. BENdER: Vice Chair Earie. EARLE: Aye. BENbER: Chairman Friedel. CHAIRMAN FRIE��L: Aye. BENDER: Board Member Larrabee. Chairman, six-zero. CHAIRMAN FRIEC7EL: Thank you. And then the se�ond item we ha�e is cansideration of possible action regarding resolution EMC�DZfl26-�1, ciissal�ing the Eagle Mfluntain Facilities District. Racha�l. G�DDWIN: Yhank you, Chairman. Dur CF�, Pauf 5oldinger, is going to walk us through the -- the conversation and the details behind the dissoEving of this facilities district, if the Board so choases. With that, I'll hand it o�er to you, Paul. SQL�INGER: All right. Great. Thank you. Gaad evening. Chairman and Board ❑f the Eagle Mountain Community Facilities ❑istrict. Sa this �istrict is a special taxing district that has been in pla�� and formed in 1995, foasically to fund the -- and finance the infirastructure in the Eagle Mountain neighbarhvod. All the debt was fully paid off in 2021, and the ❑istrict has t�een inacti�e for five years naw. So under statute, the Baard is naw able to consider closure or dissolution af the District. We actually ha�e �aeh 5akas, our 5pecial ❑istricts Coun�il from Greeni�erg Traurig here to answer any specific questions you might ha�e. 6ut we ha�e about $200 in the fund that will be transferred to the Town if appraved. Also, the Town Council has a similar age�da item from the T�wn's perspe�tive. We pla�ed it an the consent agenda just simply because we're alr�ady talking abaut it here. Happy to talk a�aut, if need be at that point. 6ut one thing to Gonsider is two years ag�, when afl the Qasimyar liability issues Page 3 vf 12 7�}1fJ;12 pF FDEINTAIN HiLI.S JUVE 2, 2C26 EAGLE MOUNTAly COiVINEUNITY FAC�LlTIES blSTR�CT MEETiNG MINU7E5 happened at the �ounty level. As a reminder, that is a potential iiability related ta the Caunty that was sued by -- Maricapa C�unty was sued by a taxpayer. And what they found in the litigation was that some taxpayers overpaid their property taxes. 5a the Town had a liability. Eagle Mouniain did. The Town paid it off. Eagle Mountain, the C3istrict had never paid that 47,00� approximate liability off. Well, we dan't knaw if the liability still exists or nat. The County has not cammunicated anyihing to us. We tried t❑ reach ❑ut as-- �ach a�tually reached out. ❑id not receive a response. The County already paid the taxpayers back. But the key point in this discussion is if yau dissQlve t�e district today and tFre �own als❑ appro�es to dissol�e it under statute, the Town wauld take on any liabiliti�s ❑f the District. Sa if the County e�er does try to seek that repayment �r reimbursement fram the District, it wauld then go to the Town. At this point, we don't know if there's a liability, but I want t❑ make it �lear that there is the pass�bility af a liability in the future. 5❑ with that, that's all f have for yflu tanight, and I'd be happy to answer any questians. WATTS: Paul, is there samething similar to a statute of limitations on that liability? S�LDINGER: Could yvu answer that question? Yes, if you could. 5AKA5: Chairman. Board. Zach Sakas, 5pe�ial District, Council to the bistri�t. At this point, we're not aware af what the -- the limitation would be. We'll come back to the Council after some additional research an that. But flur general understanding is the County paid the taxpayers ba�k under the Qasimyar litigatian and its enforcement procedures related ta recouping those funds from the different political subdivisions are no longer ongoing. CHAIRMAI� FRIEDEL: So would it be your recommendatian, without a specific timeline, that we keep this open until we had a definitive answer an the statute of iimitations, where we no langer have that liability? 5AKA5: I think that's at the -- the District Board's discretian, whether the -- the amount ar the patential lia�ility that �ould transfer over to t�e Town is material ta -- to wait on dissolving the �istrict. WATTS: Paul, can I ga back ta yau and say, what's your opinion? Page 4 af 12 TUl1ltV �F FDUNT�1!!V N?L�5 JUiVE Y, 2G26 EAGiE f�1[]UNTA,IN CUMMUNITY FACl�lTIES G!il RICF M�ETING MiP3UTE5 SOLDINGER: This is a really tough one. I think at this point, my opinion -- it's hard to put your a#�inion out in the publiG purview for something like this because it's kind ❑f unclear. It's unknown. We'�e dane aur best to reach out to the County, and they'�e already paid off the Caxpayers. land to he completefy honest, $47,D�� ta Maricopa Caunty is a-- it's campletely immaterial. So it's �ery possible they wrate it aff and just ne�er notified us. And actualfy, at ane point, they -- they told us that they were writing it off, and then they, after further discussion, that wasn't the �ase. 5o the problem with keeping it ❑pen is we �ontinue t❑ have to allo�ate staff time to have these meetings. The Board would Frave tfl meet ea�h year. We'd have to apprave a k�udget. We'd have to pay for public posting notices, which �an range abaut 3�� to $5Q0 a year for a district that has na further need to be in existence. 5a 1 hesitate, but my recommendation would be to close it just because it doesn't seem like the �ounty is coming for that liability at this point. WATTS: Thank you. M�MAH�N: Paul, didn't we discuss this before about, yau know, resol�ing dissolution, so to speak? And that is what -- e�entually we were aiming to da? 50LDlNGER: Yes. Chair, Chairman, and Baard Member. We talked ahout it. 5o at the time -- we talked about a few times, we brought up tw❑ years ag❑ when it first happ�neci, and at the time, we had existing fund balance in the Town's coffers in a prior debt issuance to pay it ❑f� from the Town's perspective, but we did not ha�e the money from the distri�t's perspe�tive to da that. And so we -- I think we basically d�cided ❑r recommended ta hold off and see what happened. And -- and there was the chance that the County was going to forgi�e it because they did it for -- for example, I believe Rio Verde water district ar fire district, they did a similar actian. And the whole -- the wi�ole key ta that conversation was any existing speciaf Caxing district. S❑ not the Town, a special taxing districts like this ❑ne that was not continuing to levy pr�perty taxes. Sa it had no continuing taxing autharity becaus� there was n❑ debt. 5o we fit that �riteria perfectly for some reasan. The County changed its mind in Page 5 of 12 T�WN OF FJL�I�TAIi� H!�LS ILiiVE Z, 207.6 �AuEE MGFLIhTr11N CGUlMUNIfY FACitIT�ES �ISTRiCT MEETtf1iG MINUT�S that can�ersation. And so that's why we're here today. MCMAHOf�: So we cou3d dissol�e it. Right? I mean, there -- there's really no purpose. I'm going to go out on a limb and say, reaily n❑ purpose for it. Then it's ser�ed its purpase. S�LDINGER: Baard Member, yes, it served its purp�se. 6ut tfl the ❑ther -- the ather Board Members' paint, if we kept it open -- the canfusing thing about this is, as a spe�ial taxing district, it's legally separate from the Town. MCMAN�N: Uh-huh. SOLDINGER: Sa it's shielding the Town fr�m any liahilities. I� y�u dissal�e it, the Town would take on a pflssi�le liability. The problem is, it seems like there is no liability, but yau just never knaw. With the Caunty, they could change their mind and come ba�k to try ta seek tha# repayment. MCMAH�N: ❑kay. So maybe what -- before e�en like moving to dissol�e it or anything, look at the-- if there's an ap�licable statute of limitations and then came back. And if there isn't ar there is, then loak at what the optians might be ai that time when we da mare research ❑n it. SaLDINGER: We make that happen �y the next meeting? Or will we ha�e to have a special meeting? Called the �istrict Board again? ❑kay. That would be an option. Board Member we'd ha�e t❑ probably call a special meeting sometime in the summer to make that, because we're required to pass a budget, we just woufdn't be following the statutary requirements to pass the budget and things like that. So we'd be ❑ut of compliance with statute if we didn't kind of mo�e on this quickly. MCMAHDN: ❑kay. So then what would the best motion, ❑r gi�en what the discussion has been this evening? What is -- what is the 4��st motion or what we're going t❑ do with this tanight? SOLDINGER: I would say it's a reafly hard one. MCMAHDN: i know. SOLDINGER: I would -- my recammendatian would be to clase it, because it seems like Page fi of 1.Z i U'NiV flF FQLINTAI N H!!�5 IUAEE 2, 20Z6 E,�GlE �llf]JfVrAIiV �C}IVkMUPIfFY F��ILIT1�5 DIS�RiCT ME�TIiVG Mlf�LI7E5 the County has forgatten abaut this, and we're just not going t❑ keep seeking that answer from t�em. They ha�en't responded. They don't provide that information. They'�e already repaid the taxpayers. 7here's no reason for us ta at this point. It �ould happen. �t's like a -- MCPJIAH�N: Yeah. 50LbiNGER: -- it's a possibility kind of thing. MCMAH�N: Right. S�LbINGER: So my recommendation would be to close it, but it isn't -- MCMAHDN: Ta hald it or ta dissolve it? 50LbiNGER: Ta dissolve it -- MCMAHON: Okay. SOL�fNGER: -- is my recammendatian, yes. MCMAN�N: �kay. I'm for that. I'm good with that. I'I! make a mation to dissolve it. SKILLICDRf�: Thank yau, Mr. Chairman. Well, $3Dn in newspaper pasting fees is a lot lower than $47,��Q. I'm inciined t❑ table it until we knaw more. You knaw, I'm kind �f CUfIOUS If d15CiJ551pn, though, yflu know, what other peaple's apinions are. And yau know, maybe we can debate this and help make a de�isian befare we make any other motians. CHAIRMAN FRIEaEL: Yes, ma'am. EARLE: My well, I'd fike t� secand the motian af Peggy ta ga ahead and dissalve it. That's my take. CHAIRMAN FRIEaEI.: Counci€member Watts. WATTS: I think -- I think I'd like ta support CQuncilmemk�er SkilliGarn's fdea abaut tabiing, because $3�� a year, $5flg a year, is signifi�antly less than $47,000 in iia�ility. An� I wauld ask to pursue a letter of determination from the 5tate -- from the Maric�pa Caunty. 5o we hatf something can�rete that said w� were either relie�ed of liahility or it remains and we are n�t. But I think without knowing that, we're it's -- it's a lot wflrse than a tass-up. I w�uldn't tass a coin fflr $47,4�0. 5o I would support Cauncilman 5killicorn's suggestion t� table. Page 7 of 1Z rrawN oF �L;�rrrain� N���s JUNE 2, 2�2n EAGlE MGLLIR1TFl1[�i CUMidlil[1iITY FR�{Ll7�E5 U�STRICi' MEETIf�1G MlNUiE5 KALIVIANAlC15: 7hank you, Mr. Mayor. Yeah, I think tt�e liahilities, they're negligible t❑ nonexistent, and I would be willing to ga with the staff's suggestion that we ga ahead and dissol�e it. I dan't see this thing coming back. It's antiquated. It's been forgotten. it's just -- it's just a hausekeeping issue ta me. If we had a consent agenda, I'd put it on the consent agenda, but yeah, I'm for the Couneilmemt�er Earl and McMahon's motian to -- let's -- let's get rid of it. GDnDWIN: P�u�, I just ha�e a questian. Actually, it may be for you, Zach, because I know we have you here tonight, so your expertise is helpfuf. Thank you. If the Board �hose to leave this open and -- indefinitely until -- and the County came back and said, yep, we want our $47,aD�, is there a way for the Town to I��y that then to -- ta the Eagle Mountain CFD? I mean, wauld we he able to collect that money from them, or would the Town -- is there a mechanism ta get that funding, ❑r are we going to have to absorb that anyhow? SAKAS: Chairman, Board, responsive ta the District manager's question, the -- this ❑istrict ne�er le�ied a property tax to pay aperation and maintenance expenses for the ❑istrict. There are abilities to levy charges, �Fees, ather things t❑ praperty owners within the Distriet. It would not be a property tax, but there could be a potential way to le�y that, or not le�y because it's not a tax, but ta charge fees of some sart, or rates to property owners within the �istrict -- GOODWIN: ❑kay. SAICAS: -- to repay that. GO�DWIN: To co�er that liability. 5AKA5: If -- if the District is existing. G�D�WIN: Gatcha. Okay. Just wanted to make sure that we weren't going to -- 5AKA5: Yeah. G�O�WIN: -- essentialiy take that on one way or the other. 5AKA5� The -- the ability, the -- the trick we ran into, as Paul mentioned, was the property taxes were turned off be�ause there was no longer dek�t ot�tstanding, and the Page 8 of 12 ��WN QF F�UN�AI11'rIILLS IUNE 2, 2D25 EA�LE f'lIQ�LfN7Rlhl C�MMUNITY FA�II.ITIES �ISTRICT NkEETiNC', MINUTES only statutory authority to le�y thase praperty taxes was inherently connectec! t❑ the debt. 5o we could nat turn property taxes af any sort back an ta -- t❑ pay the patential amounts on the -- fram the qasimyar litigation. GD�dWIN: Okay. But there is a fee mechanism that we �ould use, or same other �harge? SAECAS: �otentially. Well, I don't want to use t�e ward assessment because in the C�❑ assessments there's -- it's a specific lien on �ats. And it wouldn't be that situation either. GQ�DWIN: Okay. Thank you. Sl{ILLlCaRN: Thank you, Mr. Chairman. I would be curious of the mechanism to collect that. Because i'm not exeited about the rest af the Tawn paying ❑ut $47,�00. I mean, how would -- how would Eagle Mountain reimburse the Town far that? SDL�INGER: So Chairpersan, Baard Member Skillicorn, it would be if -- if the ❑istrict is dissalved today, it would hecom� a potential I�ability ❑f the Tawn. 5o the Town would be res�ansible if the County came seeking that reimburser-nent. Right now, we have about 28 ar $29,��� still existing in t�rat debt fund that we use ta pay aff the pre�ious liafoility. 5fl the Council would ha�e to -- or under the Town Manager's authority wauld ha�e ta authorize payment, probably fram the gerrera4 fur�d ar anather unrestricted fund, to pay -- pay off that debt. SKILLIC�RN: Mr. May�r, CFO, but what is the mechanism that Eagle Mauntain wat�ld pay back the Town? 5AKA5: Chairman, Board. Ta the extent the bistriGt was dissalved, there wauld be n� me�hanism. But if the aistri�t was left intact with action ❑f the Distri�t Board and likely same public input fram prflperty ❑wners within the DistriGt, the bistrict cfluld levy charges, fees, other things for distri�t ser�i�es, which could include the amount potentialVy owed to the County. MCMAHON: 5o yau're saying that they cauld levy against the Caunty, but and then paul saying we have a certain amaunt of funds that if samething like this �ame up, we cauld use that as a negatiating �actor if there was any liability imposed ❑n the Town, And that's a big if. Page 9 of 1Z 7t]N'�7 OF FDIJN;AIN Hil�S Ji�M1JF. 2, 2Q2b E�'�GLE h�C1LiNTAiN CQMMLlNITY FACILITIES DISTRICT MEETING MINUTES S�LDINGER: S❑ I keep forgetting the terms. Board Member. If dissal�ed, then t�e Town would be responsibfe. That's when I was discussing the different furrds the Town eould pay. MCMAHON: Right. SOLDINGER: But our special District Council was discussing was if it was left intact, there could he a mechanism where it would be a-- not an assessment, but a fee basically charged to the homeowners or the landawners within the ❑istrict in the Eagle Mountain neighhorhoad to -- to pay off that debt. MCMAHQN: Okay. SOLDINGER: Am I saying that eorrectly, ❑r -- MCMAH�N: But you've been saying this has been sitting here for a while and it's remate. It seems like it wauld be a remote, if that e�en happened. S�L�INGER: It we'�e -- we'�e done our best ta seek that information. MCMAHON: Right. SOLDINGER: We'�e gotten no respanse. MCMAHON: Yeah. SOL�INGER: And I think that's the �hallenge, you know, attorney ta attorney communi�ations with no resp�nse. 5a that's we could with the option ❑f tabling an -- ❑n the Board, if that were t❑ be samething the B�ard wants to consider. We could try to seek stronger, you know -- MCMAHON: lih-huh. S�LDINGER: -- with stronger means ta get that information and we can do some things. But and we �ouid bring it back to the goard if that's the way that the Baard would like us to go. MCMAH�N: �kay. Thanks. Ail right. EARL�: 5econd. CHAIRMAN FRIEDEL: Any other discussian? EARLE: Haw about Hannah? CHAIRMAN FRIEDEL: HannaFr, do you have anything you want ta add? Page 10 vf 1Z T�rt�u�u oF FDl3N7a�1� H���s 7UNE 2, 202E E�GLE i1ll��li�TAl1r' C�NlMJN1TY FACIL9?I�5 d151'RiCT MEETiiVG N]ITJ[JTES LARRABEE: Na, Mayor. Thank you. CHAIRMAN FRIEDEL: Sa we ha�e a motion and a second. Are there any camment cards, Town Clerk? BENdER: No, Chairman. CHAIRMAN FRIE�EL: Can we get a roll call �ote, please? BENDER: Board Member 5killi��rn. SKILLIC�RN: Nn. 6EN�ER: Board Member Larrabee. LARRABEE: Aye. BENDER: Board Memb�r M�Mahon. MCMAHON: Aye. BENOER: Board Member Kalivianakis. KALIVIANAKfS� Aye. BENQER: Board Member Watts. WATTS: Nay. 6ENdER: Vice Chair Earle. EAR�E: Aye. BENdER: And Chair Friedel. CHAIRMAN FRIEDEL: Aye. BENbER: Chairman, five-two. CHAIRMAN FRIEDEL: Thankyau. Can I get a motion to adjourn this special meeting? KALIVIANAKIS: Motion to adjourn special meeting. CHAIRMA�V FRIEDEL: And we need a second. EARLE: 5econd. Fage 11 of 12 T�L'UIV �F FOL1NTAfN HIlLS J�1NE i, ZGZfi EAGLE MOU�dTRIN C�Mf��IUNITY FACILITiES Q157RiCT MEETiNG MINUTES Ha�ing n❑ further business, Chairman Gerry Friedef adjaurned the Regular 5essi�n of #he Eagle Mvuntain Community Facififies �istrict Board held on June 2, 24�6, at 5:34 p.m. APPROVED: � ��� GERRY FRIEDEL, CHAIRMAN ATTEST: �.�,�� V BEVELYN J. 6 NDER, D15TRICK CLERK CERTIFICATIDN I HEREBY CERTIFY THATTHE FOREG�ING MINUT�S ARE ATRLIE ANb CQRRECT COPY �F T1�E MINUTES ❑F 7HE EAGLE M011NTAIN COMMUNITY FACILITlES blSTRICT MEE7ING flF T1�E 60ARQ, TOWN ❑F FOIJNTAIN HILLS, ARIZONA, HEL.Q ON JUNE 2, 2a26. I FURTHER CERTIFY THAT THE MEETING WA5 QULY CALLEQ AND HEL❑ ANb TI�AT A QIJ�RIJM WA5 PRE5�N7. ���� BEVELYN J. BE pER, a15TRICT CLERK Page 12 vf 12