Yeah.

Okay.

Well, and it's that we can't do it.

We don't know how that's a good thing.

Right.

I think I'm like, well, it's certainly right.

Yeah.

No.

Uh Mr.

Wright, we uh good to go.

All right, thank you, sir.

All right, ladies and gentlemen.

We'd like to call this meeting to order.

Councilmember of Adaska.

Present.

Councilmember Curtis.

Here, Vice Mayor Terengo.

Here.

Councilmember Schneider.

Here.

Councilmember Garcia.

Present.

Councilmember Galindo.

Here.

Mayor Sutton.

Here.

Okay, at this time, I'd like everybody to rise for a moment of silence and the Pledge of Allegiance.

The moment of silence today.

So I'd ask you all to keep them in your thoughts.

And that will be followed by the Pledge of Allegiance, led by Councilwoman Glindo.

Just state your name and tell us where you live.

My name is Donna Keeler.

I live at 1045.

1056 North Fairway Drive in UA at the village of Grand Valley Ranch.

I just wanted to thank the mayor and council member for visiting our village on August 28th.

You were both listening to vote.

Listen to our concern.

And help us out.

And going to be done here to make you like a better place to live.

I'd like to thank you again for coming to see it and hope that we can continue having the time with that with that.

Thank you.

You're welcome.

It was our pleasure, absolutely.

Yep, thank you.

Very low.

Okay, that'll bring us to our scheduled public appearance right now.

A presentation and discussing regarding the capital financing options, including revitalization district and community finance district.

And debt issuance by Nick Dodd, Zachary, and Zach Zachis.

Hello, Brian.

Good evening, Mr.

Mayor, members of the council and the public.

He's our financial advisor.

He's with Raymond James, and then Zach Sakis.

He's the uh our bond attorney, and he's with Greenberg Trawridge.

Uh they're they're here tonight to present counsel and do a presentation on really it's the issuance of debt like debt 101.

Um during this process, um presentation.

Uh Nick and Zach will talk about different financing options for the city.

Who knows?

Sorry.

Test all right, is that better?

Uh the they'll go through different uh financing options, you know, when it relates to capital projects.

Um issuing uh debt allows the city to secure funding up front for critical projects while we're paying those obligations over time through revenue sources like utility revenues, excise taxes, or HERF.

Um, and and also with property taxes.

So you'll see through this presentation some of these different funding mechanisms.

One uh the ones that he'll he'll mention tonight is like uh an excise obligation, excise tax obligation.

Well, we have two of those already.

One was back in 17 was used to build the city hall in 2021.

We had an excise tax obligation to build the police department.

Uh we'll he'll talk so show and talk about uh like revenue bonds um with that.

Those are forms of revenues of kind of like the utilities, water, wastewater.

Um we'll mention things with the property taxes, you know, advantages, disadvantages.

Um another one is other financing sources.

We'll talk about a little bit about GATA, which is a greater um infrastructure development authority or WIFA, uh, which is the water infrastructure finance authority.

We actually have seven of those loans through WIFA.

We have four through water and uh three through the wastewater.

Um USDA is another one that uh we'll be mentioned tonight.

Uh we do have one USD alone, and that was done back in about 2005 uh for the some wastewater expansion uh sewer lines in the Toltec area.

So we'll he'll we'll talk uh they'll talk a little bit about that, but then they're gonna focus on uh some other financing options, which is called community facilities district CFDs.

Uh we all the city has a policy on that.

We've actually had over the past 20 years we've had two CFD applications, but through the once the application was submitted with the developer, things just fell through with the developer.

They they didn't come to a um fruition on those uh CFDs, but we do have a uh CFD policy.

Um the CFD policy is actually being currently reviewed by Zach and Nick and updating that because it needs to be updated with current language because legislation the legislators always change the CFDs, so we need to update that.

So in the next few months, you'll probably see the CFD policy being back or being brought to council for an updated uh language inversion on that.

Uh the other one that will be mentioned tonight is the revitalization this revitalization district.

Um, or we call it RDs.

Um they'll talk about that and what's what is the difference between a CFD and an RD.

That will be talked about and uh informed the council tonight.

We do have a uh RD policy that will also is then be updated and be brought forth to council.

We do have one RD application um that has been presented to the city, and staff's been reviewing that.

So that's kind of going back and forth with the the applicant on that at this time.

Um but uh the other one uh that's gonna be talked about tonight.

That's uh the staff is really uh considering for some uh water and wastewater projects, they're called utility obligations, and those are funded through water and rate increases, which we just uh brought forth the council.

A lot of those are for like the new growth areas that things that maybe what WIFA or GOTA can't fund, but um we're really gonna dive into those, and we feel that uh that's a pretty vital.

That's a really good source for us to look at um for some of our projects.

So they're gonna mention and talk about those advantages with that.

So um at this time, Zach is still on his way.

Uh he's held up, he should be here in the next couple minutes.

Well, he just is here, so suck in.

But uh, I'm gonna bring Nick up, Nick's gonna start this.

So I'll turn the presentation over to Nick and then Zach will come up.

But uh bring up Nick.

Thanks, Brian.

Uh good evening, Mr.

Mayor and uh members of the council.

Nick Dodd with Raymond James.

Uh, it's a pleasure to be here this evening.

As Brian mentioned, um you've done debt twice in the last eight years.

We were in both Zach and myself and Brian were involved in that for City Hall and the uh police station.

Uh and so from time to time we meet with Dave, Brian in response to any number of things, questions help the city strategize.

So that's kind of your financing team.

Work with another a number of other communities in Penal County, Casagran, Coolidge, and some other jurisdictions in the area, too.

So we're gonna talk tonight about capital financing options and what this really is in this this page here, page four, is kind of an overview of really everything we're gonna talk about, and and the most commonly used financing tools um that are available to cities and towns.

Cities and towns probably have some of the most flexibility in Arizona with regards to what you use to finance capital projects and the types of debt you can issue.

For example, school districts really can only do general obligation bonds, and we're gonna talk about pros and cons of different types of of debt you can do.

So you can see we're gonna go through geobonds, different types of revenue bonds, um, and then some other debt options that are available, and then we'll conclude with special districts.

The way we set up the presentation was we're gonna go fairly quick through probably the first half of it, because either the city's done that in the past, or I think staff believes at this time those aren't maybe things they're looking to bring to in the near term, such as a geobond that requires voter approval.

I think the desire is to focus on the utility pledge revenue obligations because that could be something that's on the much more near horizon, as well as special taxing districts, which are really tools to help pay for growth.

Um, and typically brought forth by a request of a developer.

This this is kind of a grid that covers everything you just saw on the other page, geo bonds, HERF, excise tax, ID stands for an improvement district.

That's a municipal improvement district.

So the city's on the hook for that.

CFD, those are special taxing districts, lease purchase or cops.

That's essentially a promise to pay with a mortgage on the property.

And then utility revenue bonds and WIFA.

As Brian mentioned, WIFA is a state agency, the cities utilize their pros and cons to WIFA.

We'll try to cover some of those.

Uh GATA is another state agency that um has some pros and cons to, and then USDA.

Um USDA is obviously a federal program that's been around for rural communities for a number of years.

Uh, that program has a lot of stress right now because of things going on at the federal level.

All right, so geobonds, the biggest advantages, it has a built-in repayment source.

It's the only type of debt that comes with that.

The con is it requires an election.

So you have to go to the voters and ask for approval for a specific project or a set of projects, and you spell out what you would finance, how long you'd finance it for, and what the cost is the property owners.

If your community votes yes, then you get to fund the capital project, and the residents have essentially said we'll tax ourselves for 10, 15, 20 years for that project to repay the debt.

So great option, it's probably your your most cost effective or your lowest interest rate, but requires voter approval.

And I would generally tell you if you're thinking about a geo bond election, you probably need to think about it and call for an election almost a year in advance.

Um and you can now only call elections in November of every year.

So you obviously too late for this year.

If you wanted to do something for next year in 2026, you'd really need to start in Q1 of 2026 when you think about the timing of that.

So kind of a long lead time.

If you could get approval, um excise tax bonds, this is state shared revenue and your local sales tax.

So the local sales tax generated within your community that you levy, and then the revenues you get from the state, which are both state shared sales tax and state income tax, as well as some cities will include some of their VLT sharing.

This for the most part is the money you guys operate on.

You you run your city on it, it's what the primary source of funding is for your budget.

And so obviously, when cities use sales tax bonds to fund a capital project, it means you're comfortable that you have surplus sales tax revenues on an annual basis to pay that debt service.

Um advantage, no election required, just city council approval.

So staff would bring you a project and say we think this is important.

We've identified sales tax and believe we have the budget capacity.

In some cases, we've seen cities approve or levy a special tax on their community.

Uh, this could be a hotel motel tax, an increase to a restaurant and bar tax.

Um, and a lot of times when you see those those types of taxes approved, it's then dedicated for a very specific project, i.e.

to improve roads or to build a community park that had support.

Um, one of the pros of an excise tax is people from outside the community who pay your sales tax, also then help pay for that project.

Um obviously, disadvantages requires use of your monies that you operate the city on.

Uh, it does have a slightly higher interest rate than a geo bond because it's a less good or less secure credit because of the lack of the property tax.

Um, and also there can sometimes be depending on your your credit quality restrictions by investors who lend you the money put on for future debt debt issuances, such as a limit on how much additional debt you could have in the future.

And I apologize.

I'm going a little quick on some of these first slides.

If there are questions, please just stop me.

I'd be happy to answer those as we're going through them.

Highway user revenue bonds, we call them HERF.

Um biggest advantages, it accelerates road projects.

Disadvantages are um, well, HERF revenue has been declining for a number of years because of EV.

Uh, the state hasn't raised the gas tax for I think 40 years, almost 35 years.

Um, and so that pool of money is kind of dwindling.

Uh, it also is money you use on a year-in-year-out basis for kind of pay as you go capital improvements to your street program.

A lot of not very many issuers utilize HERF bonds anymore.

They used to be much more popular when the gas tax was just growing like crazy every year, but we've really seen a decline.

Um, to be honest with you, I can't think of in the last 10 years of a city or a county that's issued new money her bonds.

But it is available if there was a desire, uh, but you don't control the revenues that as y'all know the state does.

Utility revenue bonds, these are uh water, wastewater.

Uh if you ran an electric utility, um, also I think probably maybe uh solid waste would fall into this category potentially.

Um, does require uh for utility revenue bonds under state law, it requires a voter election for these types of bonds to be issued, and then you can secure those bonds with your water or wastewater revenues that are generated from the enterprise fund.

And it's this is an important distinction because when we get to the pledge revenue obligations, we're that don't require an election.

So utility revenue bonds have been available to the city for a long time under state law, but require a voter election.

WIFA, who has funded some of your projects has limits, and if you fall under their population limit, you can get a loan from WIFA because you're below that limit, which is how Eloy has utilized WIFA in the past.

If you were to sell revenue, utility revenue bonds into the bond market, it would require the election.

So that's one of the that's those are a couple of really key distinctions to keep in mind.

Certificates of participation or lease purchase agreements.

The best analogy for this is kind of like your home mortgage.

You put a lien, let's say you use that for this building, you would have a lien on this property.

Right now, you don't.

Um, if you use a COP, you would put a lien on this property, and you would basically say to investors, whatever we can find to pay, we will.

If we have to empty out our pockets at the end of every budget cycle, shake Brian up and down, or whatever you need to do to get the money, you'll do it.

Um, it's probably your worst possible credit because you don't identify a specific revenue source, nothing's pledged.

And at the end of the day, if you don't pay your debt, the investors only recourse is to repossess City Hall.

And most investors in New York don't want to own a city hall in Eloy, they want to just get their debt repaid over the 20-year term that you repaid it.

So this is this is used kind of in situations where you might have a specific project or or not an identified repayment source.

Um doesn't require an election.

Um, and typically it's only for a single project or building a very specific project.

So these are some alternatives to the city doing debt on your own.

Uh Brian mentioned this, the cities used these in the past.

Uh, Greater Arizona Development Authority or GATA is really a tool for rural communities that don't have a good credit on their own.

Your credit is an A plus as a standalone city, and then we've been able to get bond insurance when you've sold debt, which gets you to the double-A category.

That's a really pretty cost-effective strategy that we've utilized.

There's some cities that wouldn't have those kind of ratings and and therefore couldn't get that.

And GATA might be a really good option for them.

They typically require your sales tax to be pledged, so it acts very much like a city sales tax bond, typically just for really very small rural communities that don't have much credit.

Uh WIFA, very highly triple A rated, but very specifically focused only on water and wastewater.

Um they will subsidize your interest rates.

That's a good thing.

And I'm getting a little bit ahead on pros and cons.

Some of the bad things, they require Davis Wacon, Davis Bacon wage, they require Build America.

Some of those can add increases to your costs.

Um they also don't have a lot of flexibility around structure.

They typically will only do 20 years level debt service.

So if you wanted some grace period where you didn't have debt coming due, they typically aren't very interested in that.

Um, so it's very much kind of if the project you're doing works for them and works for you, it works.

They will not fund growth, like growth as a standalone, they will not fund.

If you want to improve your system and maybe enhance a line as part of that process, they'll do that.

But if you wanted to just build a new line that takes water to a brand new subdivision, so that subdivision can be built, they're really not interested in that.

And that's because of the federal statutes that govern their operations.

USDA, we've talked about and then uh IDAs, I'll just hit on that real quick.

That's typically for like private colleges, charter schools, hospitals would use what are called industrial development authorities.

The county has one, some cities have them typically used for you know, 501c3 not-for-profit borrowing.

Uh, and then special districts, community facilities district or a CFD that is a typically used for large master plan.

Um, the best example in this kind of neck of the woods would be uh Mission Royale in Casa Grand or Villago on the north end of Casagran.

Those are both large master plan communities that have CFDs.

Uh ropes and ranch would be an example of a master plan that could have had a special taxing district, but the developer chose not to seek that as a tool for investment uh infrastructure reimbursement.

And it's purely at the developer's kind of request to the municipality with which they're in as to whether or not they seek one or not.

Revitalization districts act at a lot like CFDs.

There's some nuances which we'll get into between the two of them.

And then improvement districts have been used for a long time in Arizona.

Um also funds a very specific infrastructure project that benefits the land in the area.

The difference with an ID is the city is on the hook.

So if those landowners don't pay their special assessments, you as the city would actually backstop them.

On the CFD or the RD, that's not the case.

Those districts stand on their own with no municipal support.

Talked about got a little bit advantages for lesser credits.

You can get some economies of scale and get a slightly better interest rate.

Disadvantages you're on their time schedule.

They typically come to market once, maybe twice a year.

So your schedule has to match up with their schedule, or you can be waiting for them.

There is not an election required, which is a benefit, but neither is there for your own local sales tax.

Here's here's some of the WIFA stuff.

I won't hit too much on that.

We've talked a lot about it in the cities used with in the past, and staff is very familiar with it.

So I think there's some pros and cons to that in a project by project may or may not make sense.

All right, this is where I'll probably let my partner in crime come up and talk to you for a couple minutes about um utility pledged revenue obligations.

Um there's some legal nuance in here, and and then I'll probably jump back in in a minute.

But at a high level, these are obligations that would fund water and wastewater projects, and you would specifically pledge the water or wastewater revenues generated from your enterprise system.

It works very much like your sales tax, which is an excise tax revenue obligation, but you're just using a different revenue source that's specifically identified and pledge to that.

Um, these obligations have become much more popular in recent years.

Cities who used to seek voter approval, Mesa, Pima County are two big ones that have big utility systems that used to constantly be going to the voters asking for voter approval for revenue bonds.

They switched and went to this method because it was just frankly easier for them to plan their long-term capital programs.

And if the voters say no, you kind of hit a roadblock that is hard to come around.

And so this is a way for cities to plan for the long term and utilize that same enterprise revenue.

But I'll let Zach kind of give you some insight as to how you're able to do that.

Mayor Council, Zach Sakas, I'm a bond attorney at Greenberg Troor.

Um, usually before I speak, I just want to make sure if anybody needs a coffee break or a Red Bull before a bond lawyer speaks.

That's you know, pretty common request, but I'll try to keep it pretty light.

Um so it's kind of interesting throughout the history of Arizona because the pledged revenue utility obligations was all the rage in the 1930s following the Great Depression.

And then there were many, there were at the time citizen challenges to that.

So then they changed the statute where you could alternatively do an election for utility revenue bonds.

And then now we've seen the pendulum kind of swing back over the past 20 years where the pledge revenue obligations is just an easier tool to use for most Arizona municipalities for the reasons Nick mentioned.

Um, no election, easier to plan your capital improvement needs on a long-term basis, and easier to be responsive.

You know, maybe you have a new large user coming to the market, and you have to tweak your utility service to to address that new user.

Um, and you don't have time to do an election and get there.

You still, of course, have transparency to the voters and the citizens through the rate setting process on an annual basis.

So I want to make sure that's a question that we often get.

Even though there is no election on the specific debt, there is still public notice and public input during the rate setting process.

Um again, we talked about bonds which require an election.

In this case, we're talking about a pledged revenue obligation.

You're relying on the city's ability to enter into contractual agreements and purchase the uh utility improvements over time with a payment agreement.

None of the utility improvements, it's not like um a lease purchase or a uh certificate of participation that Nick was describing before.

There is no lien on the water line or the wastewater lines.

There's no risk of upon some you know unanticipated event of default, which I know the city would never do, but there's no risk that somebody shows up with a shovel and starts, you know, digging things out of the ground as their collateral security.

It's just a revenue pledge.

Um, and in addition, there's no the other question I get is is there some sort of third-party trustee or somebody else that's managing your system if these are outstanding?

And the answer is no, you own your utility infrastructure, you manage it, um, business continues as usual as you're doing today.

Um, and then it's really just a contractual sort of back and forth where the payments that the city owes to a corporate trustee match up with the payments that corporate trustee owes to the investors in the obligations.

Um so again, you know, the trend the past 20, 25 years has been to move away from voter authorized utility bonds and toward the non-voter authorized pledged revenue utility revenue obligations.

Um let's see.

Yeah, we're using a special fund.

If I if you really want to go in the weeds, I'll try to if I see I eyelids start dropping, I'll stop.

But the uh Phoenix in the 60s finance their convention center using a special fund revenue pledge.

And Arizona Supreme Court said that's great.

We've done all sorts of special fund um pledges like that since then, relying on that case law.

So there's no statutory authority for either an excise tax pledge revenue obligation or the type of utility systems um pledge revenue obligation we're chatting about now.

All of this comes from your ability as a municipality to enter into contracts, and then the case law that has said this is a valid way to do these financing.

Then there's you know, billions of dollars outstanding, it's how we did the police station a couple years ago, it's how many um Arizona municipalities finance their infrastructure.

So, in no way the other question I guess if we're considering this, are we the first to do it?

Or have other people done this before?

And the answer is yes.

Many, many, many other Arizona cities have done this.

Um, and have it's been useful for them.

Um, it does not count against your constitutional debt capacity.

So under Arizona law, you have a six percent and a 20% uh debt capacity based on your full cash assessed value.

These obligations are payment obligations, they do not count as debt for your Arizona constitutional um capacity.

There are constraints on them that again you agree to contractually, where you say, okay, we'll only so long as our system is producing a certain amount of revenues, then that would permit us to possibly issue additional obligations to continue paying for infrastructure.

Uh we chatted about the the use of the contractual um, let's see here.

These are this is more on excise tax selection.

It's um again, you the special fund revenue pledge can either be a utility stream, right?

A utility revenue stream or the excise tax revenue stream.

So the the two types of financing, although we have different revenues pledged, work essentially the same way.

So the same way that we did the police station a few years ago, it would feel very similar should the city uh ultimately decide to use pledge revenue utility system revenue obligations.

Uh you identify a source of repayment.

Um that source repayment in this case would be utility revenues.

You can some cities that have multiple utility systems choose to do a combined system pledge, so all revenues, and that's a you know, discussion for another day with city staff on on what's the most appropriate tool and way to structure it for the city of Eloy if you decide to do this.

Um other cities likewise enjoy having their enterprise funds separate for whatever reason.

Um, and so they have water pledged revenue obligations and wastewater pledged revenue obligations, and they're separate.

Um you can always repay these from another source just because you've pledged utility system revenues.

If there's other forms or other sources of revenue that you want to possibly impact fees or other one-time fees the city receives, one-time revenues, you could always choose to deploy those to repay these.

Um, but the the source of repayment that you've told investors um that will be made available would be the pledge of utility system revenues.

And that's the same with any of your debt.

Um, and so some cities strategically, for example, um, go to the voters, get general obligation bond authorization, but they always know you know it's a tourism-related project, or for example, they know that they're gonna repay it from tourism, sort of the extra sales taxes generated from some of the tourism related activities.

Um happy to answer any questions on the pledged revenue obligations.

Um, and then Nick, if you want to chat about special districts, or I can do a quick introduction.

Anybody on the council have questions?

All right.

Go ahead.

I have a question, but it's per Nick in the first part of his presentation.

Um, on the uh one of your beginning slides on excise tax bonds, you mentioned that um sometimes a special tax was levied for a certain project, like uh for restaurant and bar or hotel motel.

So what happened when that project is complete?

Is that tax supposed to go away, or can it just stay, or how does that work?

I'll answer first and then Zach will correct me, I'm sure.

Uh because that there's nuance there.

I I think the short answer is when the council approves that special tax, they will typically say upon the repayment of this debt, the tax goes away.

And or you could say we're gonna levy a restaurant bar tax, we're gonna sell bonds, it's gonna be paid for by that.

And then once the bonds are paid, you could leave it in place, or the council could take an action and say we're gonna that's paid off, we're gonna remove it.

So when you put the tax in place, you as the council, I think would have the ability to say it's either in perpetuity or it falls off after a debt's gone.

A really good example was um City of Prescott implemented a tax, and they wanted to pay off their their pension obligation for firefighters because of the terrible tragedy that happened up there with the firefighters.

And they were the only city in the state that had a dedicated source of repayment for their pension, and it was it they took it to the voters, and when the voters approved it, they said once our pension obligation is fully funded, this special tax will go away.

And once they got PSPRS to 100% funded, the tax went away.

So in that case, it was a voter and uh driven initiative to pay off the fire obligation.

In other cities and towns' jurisdictions, there's been just council action, and I think you have a lot of flexibility with how you handle that.

Yeah.

He got it.

I don't have no corrections.

So you can you can choose to have a sunset clause when you um authorize a special excise tax, or sometimes they're just put in place without a sunset clause.

Uh just for uh comparison, an excise tax revenue bond issued.

Is that similar to what they've done with the recently approved uh the Arizona Dimeback Stadium?

I I think they're taking uh the sales tax.

Um so good lawyer answer of kind of sorta, um, but not but not really.

Um so for a municipal excise tax transactions, right?

Y'all have local city sales taxes, maybe you have um fines, fees, you know, folks maybe pay to rent a Romata at um local city park, for example, plus you have your state shared revenue.

So you get that distribution of state share of state income taxes, and then you also get a chunk of um state state sales taxes that are levied.

So those are sort of the that's the pool of money that a city would pledge um as a source of repayment for an excise tax obligation transaction for the diamondbacks, they create a special theme park district in and around the stadium where um when you go to buy a $20 beer, you know, the there's additional taxes on top of that um at the stadium, and that's those taxes are kept separate, the sales tax portion of it.

And instead of that being, you know, going its usual course through ADOR and then being distributed, it's sort of pulled out and set aside and then can be pledged towards possible stadium, you know, um repairs or whatever they choose to do with it.

Was that responsive to your question?

Yeah, thank you.

Sure.

I have a quick question before they move on.

Well, it's probably for Brian.

Um you said that a lot of uh a lot of approval for going for a lot of these bonds is based on your grade, what your city grade level is.

What level is the city of Eloy in?

And I know we've paid off or we're near paying off the bonds for this for the city hall in the uh police department.

Does that increase our our level to maybe a so Mr.

Mayor and Custom Glinda?

Are you talking about our bond rating?

Oh, yeah, our bond rating is an A plus, and that's by uh uh standards and poor moody.

So I mean that is set by our financial um how our finances are, our policies, our obligations, how we made things, they set them based upon our our financial statement.

So it's not a when we pay things off.

I mean, we we have to do certain requirements on an annual basis for our excise tax bonds, but they set that um you guys can clarify me, clarify it, but they set it up based upon the rating of our financial um status, and if we're how we look and and uh if we have any risks that they see that can jeopardize you know the payment and on your history, that's how your bond rating is is set a little bit on that.

So, but we are an A plus on it.

And then I had another quick question about like where is it when you say that that uh we uh apply for a bond and maybe gets approved for an increase in tax.

Are we talking sales taxes?

Or is it a specific like the RTA was specifically for um for merchandise that was purchased within the county?

I mean, it does it have to be specific to that, especially if it's like a sunset uh bond that once it's paid off, it goes away.

If I uh understand your question, um on our taxes, when it comes to excise tax, it's like what Nick said, it's sales tax and our state shared revenue and stuff like that.

Um we don't have any taxes that have sunset clauses.

Um if that if we did have one, that council would have passed that tax increase specifically for something and dedicated the sunset clause um in the in the resolution when we're increasing a tax.

So we don't have anything like that.

And when it comes to our utilities, we don't have any sunset clauses, anything of that for any of our our utilities or taxes.

So I'm not sure if I answered your question as a whole or not on that.

Thanks, Brian.

And Mr.

Mayor, members of the council, I'll probably just add a couple things on the credit rating.

Um, and specifically to your question on city hall.

You're almost 10 years through it.

Um, so you've you have about another 10 years left.

Um, you'll also be coming up on what we call a call date.

So there was a 10-year period where you couldn't call or pre-pay the debt.

You're you're gonna be getting pretty close to that in the next year or so.

So you may have an opportunity to refinance your debt.

Um, we'll work with Brian and and the city manager on that and see if it makes sense.

You could also, if you chose and had surplus cash, you could say we're just gonna pay it off or start paying it off early.

That'd be an option you have with all of your debt, including with a um the credit rating.

So uh Brian's correct A plus is your your standalone credit rating based on your city's credit worthiness, and then we got bond insurance, which got you to the double A.

And that's pretty standard for a city with an A plus rating.

There's I always say there's things you can control, and there's things you can't control with regards to your credit rating.

It's kind of like, well, I guess most people's credit score, they control most of the factors that go into it.

Um, the finances and how the cities run are the things you can control, and and your staff's done an excellent job over many years of keeping your budget in line and and building reserves and and paying debt timely.

The the things you can't control are there's demographics.

So Scottsdale has a dramatically different tax base and resident base and wealth levels than Eloy.

And there's nothing you can do about that, right?

Um, another thing on a sales tax credit that you can't control, but you get state shared revenues based on that.

You have prisons, and and so that helps you, but from a credit perspective, there's also risk there, right?

Because the prisons could close, they could, or they could get full more full in the current environment, maybe.

Um yeah, they could lose their contracts with certain federal agencies that have been filling them.

Um the state could change the state law around distribution of state shared and and not allow for that kind of essentially generous, you know, uh over funding, if you will, to cities that have those.

So the the credit rating agencies factor that in.

And once again, that's a lot of things you can't control.

Um, and when but they factor all those things in the things you control and the things you don't when they come to that rating.

Um, unless the city went crazy and sold a bunch of debt.

I think over time you can expect your credit rating will gradually probably increase as the city grows, your tax base grows, you pay off debt.

Maybe you maybe some employers move to town, those types of things positive.

Typically, downward pressure is more you you either just have too much debt or some really adverse event happened that potentially was outside of your control.

Yep.

Now we're gonna jump into special districts.

We've kind of hit at a high level.

The three we're gonna talk mostly about, we're gonna focus primarily on CFDs and RDs.

As Brian mentioned over the years, the city has been approached to use special districts.

They're typically tools used by developers or preferred by developers.

And I think just at a really high level, what you should understand for special districts is they are a tool to pay for infrastructure that pay helps helps facilitate growth.

And you can either do that by taking the money out of your pocket today.

That gets passed on to the growth in some form.

Higher home prices, you know, or in this case, the special taxing district says, okay, you don't have to pay for it today.

We will fund this from a bond and let the next 20 years residents in that master plan community pay for those streets, the parks.

In some cities and towns, they're used as a tool to facilitate growth or encourage growth ahead of when growth would otherwise come naturally.

In smaller rural communities, I'd argue Casa Grand might have formed Mission Royal and Villago to do that 20 years ago.

Florence has certainly used CFDs as a tool to encourage growth into Merrill Ranch, an area that wouldn't have otherwise been developed when it was.

The other reason you see special taxing districts be done, this is maybe more like Scottsdale.

People want to live in Scottsdale.

What Scottsdale used it for was a tool to have a very highly amenitized community.

If you've ever been to DC Ranch, it's probably the best example of those crazy bridges and the supermarkets that are hidden.

And you know, that was all done with the CFD and the developer, he just had really nice amenities, but the residents paid for that nice amenities that they got to drive on every day and see every day when they live there.

So that's kind of why districts exist and why developers propose them.

Uh but that's why Zach's here and he'll kick me if I say anything really bad.

Um, you know, the statutes were approved in the late 1980s.

There was a handful of developers, primarily on the west side of Phoenix who were pushing for growth in kind of the Goodyear Buckeye area.

And these tools were used in California primarily, is what our statutes mostly modeled after as a tool to help pay for that growth.

Um statutes have been amended a number of times since they were originally approved.

Uh by count up there, there's six.

Um basically a CFD, the developer comes to you with a petition says, I want to form this special taxing district.

In most cases, you would act as the governing board.

So you're almost think about it like you're creating a city within a city, and that city has that little sub city, if you will, has special powers to tax their residents for both operations and maintenance as well as to pay for debt.

Um to date, uh 24 cities and towns and one county, Pima has um formed CFDs over the years.

Um CFDs can do both general obligation bonds, so general property taxes, which do require approval, uh, or special assessments, which are more lot specific, individual property owners have the responsibility to pay those.

Historically, 65% of the bonds have been general obligation or general property taxes, and about 35% have been special assessments.

CFDs can finance public infrastructure, they cannot finance schools.

That was a specific carve out.

Uh the legislature didn't want CFDs to become a tool that essentially shifted school funding away from school districts.

So you couldn't do school districts, you can't even do streets leading up to school districts, basically.

Uh, but public safety, city buildings, roads, water, sewer, parks, landscaping, kind of just the general public stuff that people can drive on.

Uh, people can use a city park, people can walk on the water sewer system.

Just to give you a sense, we're talking about water and sewer for the city.

If a CFD finances water and sewer improvements, they will then deed it to you, the city, give it to you, and the residents who benefit from that over the next 20 years pay for it.

Uh, so from your perspective, either the developer pays for it, you pay for it, or in this case, the CFD pays for it.

So some cities really like that idea or concept.

How do other how do the residents pay for it?

Is it in their property tax just for those residents?

Um, Mr.

Mayor, members of the council, uh, council member Curtis.

Short answer is yeah, if you're in a CFD, there's a special line item.

And so in Casa Grand, it would say Mission Royale CFD.

And depending on the tax rate, I think in Mission Royale, it's about $300 a year.

And so the residents there pay for those streets.

Theoretically, they're the ones who benefit from it because they drive on those streets or use those parks, have those nice amenities, but you could go use the park as well, and you don't have to pay for it.

It is important to note CFDs can be used to finance infrastructure outside of their district boundaries.

That gets a little bit politically um challenging because you have residents paying for infrastructure that is outside their boundaries.

Uh, you don't really see that much, but it's it is not prohibited, I guess is what I would say.

But in most cases, it's infrastructure in the area that people there pay for it in their property taxes, typically over about 20 years.

Some people refer to that as intergenerational equity as a concept.

I you know, you can decide if you buy that or not.

Um CFDs advantages, disadvantages.

So you know, it it allows growth to pay for itself.

That's probably the single biggest benefit of a CFD.

It also preserves a city's general credit quality and and kind of tax dollars that are limited to pay for other maybe more citywide projects.

Um and and so um it's it's really about growth paying for itself.

Disadvantages, I will tell you the process to set up a CFD is is a long time.

Typically, it's 12 months.

And then typically once the CFD is approved and created by the city council, it can take years before it ever actually reimburses a developer.

In most cases, the developers have to front the money, pay for the infrastructure, allow the growth to come, and then as the growth comes and the property values increase, the revenues generated from that increased tax rate will then start to pay back the developer through the sale of those bonds.

Um is the uh CFD ever go away?

Uh I mean, at what point in time you know as growth occurs and they're generating money and the developers put money in, and he's getting paid back.

It would seem that you over time would start maybe develop a positive cash flow.

Yeah, so I'll answer the debt side.

Uh the debt will eventually go away.

Um, and then there's an OM tax that could live on forever, and there's obviously just the reality that you've got this sub city, if you will, within your city, and you all sit as the governing board and would have to set a budget and meet for 30 years, and Zach will tell you if that can ever go away.

Mayor council.

So typically it's um it's a policy choice of the municipality that form the CFD.

So I have some cities that strategically they want the CFDs to exist in perpetuity.

Um for two reasons.

Number one, the developers done being reimbursed for the infrastructure they constructed, but at the time of formation, maybe let's say they thought it'd be 100 million dollars of project costs, they'll authorize 200 million of bonds.

And so there's a an amount of bonding authority that's left over to you know go and fix streets within that designated area, and the residents are already paying the property taxes to continue paying for that.

So that's one reason.

The other one is Nick mentioned the there's an operation and maintenance tax um that's relatively small, but still provides an additional source of revenue, um, maybe to do some street crack sealing or maybe a parks department personnel taking care of some of the facilities.

Um, so that's a reason to keep them existing in perpetuity.

I have other cities where they formed CFDs maybe in the mid-90s, and so all the bonds are now paid off.

It's been about 30 years.

Um, and they are starting to, as a policy choice, that city says, okay, we're done with these projects, we're done with why these districts were formed, we'd like to dissolve them.

And so that's it's it's what the city determines appropriate for itself.

I'll do the next one if that's okay.

So the the question I get most often, so I've been doing the CFD work for about 20 years.

Um, the 2021 amendments that Nick referenced.

Nick Nick's too modest, but I'm not um we helped write them, and you know, so the governor gave me a little pen and all that stuff.

Um so the question we get most often on forming CFDs is what's in it for the city?

Because you're doing a huge favor for developers, allowing them to potentially levy additional property taxes or special assessments and get paid for infrastructure that otherwise, if they didn't have a special taxing district, would be built into the finished home price.

So the benefits potentially to the city are can be an economic development tool.

As Nick mentioned, it can attract maybe um projects of a greater scope than might otherwise be interested in developing.

You can potentially have enhanced amenities or additional features within one of these communities.

Um there's the potential for accelerated completion of infrastructure.

So instead of five different home builders coming in and taking up chunks of land and then the streets sort of you can attack it all with entitlements and a CFD structure at one time for how that area is built out and possibly get a regional amenity where if the five different home builders were on their own, they'd maybe each build a little neighborhood pocket park.

But if you have the sort of more comprehensive structure, you can end up with a more regional park, possibly as with this structure.

Nick and I have both done them for commercial projects as well, but where we see them the most in Arizona is for large residential projects.

Typically, they haven't been as widely used in more rural communities, and that is a factor of the absorption rate.

So if a home builder in a larger metropolitan area can sell 500 homes a year, you know that 18 months after those homes are done with construction, they all pop onto the tax roll at one time and you see the assessed valuation tick up quickly.

If you're selling 25 homes a year, it just takes much longer to build up that assessed valuation to what then make it worthwhile for bonding authority.

Um the risks that we always want to make sure you're aware of, to the extent the city of Eloy ever wanted to pursue a general obligation bond election.

So that's all voters in the city voting for a property tax increase to pay for infrastructure.

What we've seen in other cities is folks that are living within a CFD say, you know what, my taxes are high enough.

I don't want, you know, so I'm gonna vote no on a city bond because my taxes within my community are already high enough.

So you see situations where maybe within that res you know residential area within the CFD, they have a nice new park.

Maybe they have a nice new library.

And when the city wants to finance other new parks or other libraries citywide, if there's a significant enough voting block in that CFD, it can be challenging to pass citywide general obligation bond elections.

And so that's one where you you want to kind of go in eyes wide open of the potential impact um in the future.

Um the next one, this one to the extent something ever went wrong or sideways with the CFD financing, it's unclear if there could be an impact on the city's ability to borrow.

Um sometimes the they are conflated or misconstrued that the CFD is part of the city.

It is a separate political subdivision with its own budget.

Um, nevertheless, we've seen both cases where there was one particular city where a special taxing district things did not go well, and that city faced uh you know, paid a higher interest rate on its next city financing.

And then we've seen the opposite where things have gone poorly.

Um, and then that city when when it went to borrow the next time, there was no impact on it.

Um, so that is I can't quantify or um you know the that what that potential risk is or the you know guarantee any particular outcome because we've seen both outcomes, so it's something to be potentially aware of.

Um then the the most important one, I think, is the impact on city staff and city resources.

Um Dave, Brian, Steven, they'd all get a second job without a second paycheck because now they're running an additional political subdivision.

Um, and it is time consuming, and it's a lot of work um to make the to run these districts.

And so we do get developer cash contributions and other things for district expenses that are intended to reimburse the time when city staff is wearing their CFD hat instead of their Eloy hat.

Um y'all would function as the board of the CFD, so it's additional time for you.

And so that one is another point where we always want to make sure up front, if you ever considered one of these, know that it is an administrative burden for the city and its staff.

Um pick up the pace.

Um you can do general obligation bonds, which we chatted about, same thing, repaid with property taxes just like a city one, but instead of taxing the whole city, you're just taxing the part that's within the CFD boundaries.

Special assessment bonds are a lien on individual lots, revenue bonds, rarely use.

I have a few CFDs that own and operate um utility revenue systems.

Um, and so those are based on they they issue bonds that are repaid with those utility revenues.

House is money paid.

Let's say a city would create a CFD.

And a builder comes in.

What how's that money collected?

In other words, there's no homes sold yet.

You just got vacant lots.

The infrastructure needs to be put in, and there's money gotta be spent.

And what happens if that builder pulls out the economy tanks and he doesn't go forward?

What happens to that obligation for that bond?

Mayor, uh counsel.

This question warms my heart because this is exactly the advice we try.

So you can use a CFD bond either way.

You can do a construction bond where the bonds are sold up front, and then you take that money and go build the project, or we can put all of the construction risk on the home builder or developer.

They have to finish the project to Eloy's standards, and Eloy says, okay, this project is done.

Now it's eligible for CFD financing.

So in that case, the bonds are only sold after the infrastructure's in the ground.

And so Nick and I have had great fortune.

98% of the deals we do in Arizona are this second type, this acquisition or reimbursement, keep the construction risk off the city's books or away from the city for exactly the reason because you don't want some zombie district out there with huge debt.

Another developer doesn't want to step in because there's a huge, you know, a tax obligation in place for half-finished projects.

Um so the way that we structure that is contractually up front.

If the developer, you know, they go through what they plan to build, and we say, okay, you need to go figure out how to build it, and then after you're done building it, um, then the CFD will be prepared to issue bonds.

Great question.

So just to add on to that question, so then the infrastructure, the city uses its own resources to put in the infrastructure, and then once it's completed and they receive the bond money, then they reimburse themselves for the cost of putting the infrastructure.

So not the city.

The city isn't building the streets.

The the home builder or developer that requested formation of the CFD, they're gonna spend their money, whether that's a loan from Wells Fargo that they got to build, you know, have construction financing, or maybe they raised equity, however, they choose to do it.

And then when they're done building the street to the city's standards, then they deed it over to the city and it's eligible for the CFD to then sell bonds and then take the bond proceeds and pay the developer for what they've built.

Is that um this one's a comparison of the different financing types?

The only thing I'd mentioned, a lot of times we do assessment bonds up front because our assessed valuation hasn't risen quickly enough for property tax-backed bonds.

So you can do a lien earlier in the process, and then we transition over time into doing general obligation bonds.

Um if you can't sleep tonight, please, these slides will be made available to you.

Um general advantages.

Um the CFD property tax pledge in Arizona is extremely powerful.

To the extent you will have a developer approach um the city, they're gonna say, Well, we don't do this in Colorado, we don't do this in Florida, we don't do this in Texas.

We and it's because our laws are different.

And so we are very we advise you to be very guarded and control and manage that tax rate, and you can do that with different contractual agreements and upfront, sort of setting the rules of the road for how property taxes will be levied within a special taxing district and if and when bonds will be sold.

Um, because others, anyway, so that's one thing.

But in ultimately, the pledge is taxes unlimited as to rater amount.

Um, but so again, we only let them sell bonds when there's capacity to do so within set parameters.

Um the terms and interest rates um can sometimes be better than them the developer getting private financing.

Um there can be you know voter input um to the extent they go out.

There are elections to authorize bonds up front.

Often, if there's three or four landowners, you sort of know how that election will turn out.

But I have seen them uh district in these special district districts go back for additional authority and and conduct elections.

Um the bond process takes about 90 to 120 days.

Um the one thing you know, you can never guarantee success of one of these communities.

So you can hope that the developer would deliver what they said they were gonna do, but there is always a risk that absorption will be slower or will just take longer to build out the project.

Um, or that there will be some sort of you know macroeconomic event that impacts um the district's you know financial wherewithal.

We've been very fortunate of the yeah.

So I'd say in 20 years, I've had I've had one property where they failed to pay their assessment on time and they actually had to foreclose on it.

Um others, even when the developer declared bankruptcy, the property taxes got paid.

You want to do it?

I'll keep rocking.

Okay.

Municipal improvement district, very similar special assessments against individual lots where an engineer has determined the project benefits that particular lot, the difference from a municipal improvement district versus CFD.

Nick mentioned it earlier, contingent liability of the city for a municipal improvement district.

So if somebody doesn't pay their assessments in a CFD, there's a foreclosure process where you can foreclose on that lien.

If no buyers show up at that foreclosure auction, that's a risk that the bondholders took to potentially have capital losses when they bought the bonds and they knew it.

In the case of a municipal improvement district, if an assessed property owner doesn't pay their assessment, um you same thing, a foreclosure process.

If nobody shows up at the municipal improvement district foreclosure auction, the city has to step in.

And the city can either just pay the debt service that's due at that time, the city can actually buy that property.

Um, but in any event, the city has contingent liability on its balance sheet in the event there are property owner delinquencies.

Um, and then broad authority to finance all types of projects.

Mostly we we see these for streets, um, but we've used them for other things in the past as well.

No voter authorization required, but there is a substantial um public input process where folks you kind of get to both say you don't object to it, and then you also sign a petition that you want to be into in it.

Um and then during the project, you can say, well, it doesn't, we thought it was going to benefit my property, but it doesn't, so now I want out.

There's there's all sorts of because that's the other question of are citizens trapped or are we forcing them into something where their property's been leaned?

And there's a variety of public hearing, public notice, review of you know, is this project actually benefiting individual lots?

And that it's not a one-time thing, it happens throughout the process when you do one of these.

The advantage is um just relative to a CFD assessment transaction, you get a much lower interest rate on municipal improvement district.

Um, again, but the trade-off is you're getting that because the city's on the hook in the event of non-payment by the property owners.

Revitalization district is one of our newer tools in the toolbox.

It was statutorily enacted in about 2010.

Um main difference, revitalization district, no general obligation bonds.

So no property tax-backed repayment of bonds.

It can do assessment bonds and it can do revenue bonds.

Um, the other main difference is y'all do not sit as the board of a revitalization district.

It is a landowner-controlled board.

So once the city approves formation of a revitalization district, it is then a landowner board separate and apart from the city.

You no longer have the level of control that you would have with a CFD where you are you know sitting as the board of that entity.

Um we've seen a few of them formed in Arizona.

Um is issued assessment bonds.

Um, and typically on these to your earlier question, council member, they the ones that have been formed and sold bonds, it was used for a construction financing.

So that was one where that develop particular development group decided to sell the bonds first and then use that bond money to then go build the project as opposed to the the way we usually prefer.

Now that is something that is negotiable at the time of formation with a landowner group if they were to ever come to the city and approach them, approach the city with respect to formation of an RD.

Um, there is an election with respect to what's the highest interest rate that can be levied on assessments within an RD, but no election for general obligation bonds, similar to CFD because there's no general obligation bonds.

Um, same thing, broad list of types of projects that can be financed, um, streets, water improvements, flood control, um, no professional sports facilities.

Um this is a helpful comparison of you know what they can do or not do.

Um, and so you'll see, you know, improvement districts, very powerful, only special assessments, but again, the city's on the hook.

CFDs, flexibility, city's not on the hook, but the city still has control because mayor and council said ex officio is the board, and then RD, um, more limited ways they can finance projects.

Um, but again, that landowner board is something that you need to consider from a policy perspective if the city can get comfortable with that um at the time of formation.

So all you know, reasonable tools and different ways we finance infrastructure, and these are really the ones that match up as Nick mentioned, where development pays for for itself because only the land benefited specifically is you know incorporated and has additional taxes or assessments.

Everybody stayed awake, which I appreciate.

Thank you.

Nick's more fun.

Council?

Anything from council.

Can a CFD involve more than one builder?

CFD is it related to a one developer, or can there be multiple developers as part of the CFD?

Mayor council, a CFD can have a number of landowners or developers, and we've seen a variety of structures.

So I'd say the most common is usually there's one primary developer, but I definitely had it where there's multiple owners, um, and then they they work out who gets you know who's doing what infrastructure and who gets to apply for bond proceeds at different times.

Um what we typically advise in that situation is give us one primary developer, and if they have side agreements where then it's not our business, right?

And so that way we're not in any sort of disputes or squabbles that developers sometimes seem to have.

Um, and they can figure out where the money's supposed to go as projects get completed.

When I when I saw RD, there I looked first thing up my mind was an HOA.

Almost like uh an early HOA controlling what's happening with the uh development in the uh community.

Okay, just yeah, please any more anything from council.

Mr.

Mayor, can I just add something real quick?

Um to council member Snyder's question about you know, and Zach said it warmed his heart because we're conservative.

I just I'm gonna give you an analogy, but also it gives you some perspective in the financial crisis of 08 in Florida, which uses uh special taxing districts routinely, almost half of their districts were in some form of default during the financial crisis because the developers control them and they're they were much more aggressive.

And in Arizona during that time period, we didn't have a single district going to default because in Arizona, the districts because of the reimbursement requirement and mechanisms much more conservative.

And I share that with you because as you think about CFTs and you think about RDs and the city manager and the finance director of your city know this because they've met with developers.

Developers want tools that are aggressive, and and that means construction, not reimbursement.

And and there is definitely a push in Arizona to be more aggressive, not as conservative as we've been historically, which has served the districts very well.

So as policies come forward, just keep that in mind.

Um, these tools are different.

There's push and pull from both sides.

Um historically, I think Arizona's in a really good job, but there is a lot of kind of pressure to have our districts be used in a slightly more liberal fashion.

So I think when you see policies come forward, we try to balance that if we can.

So it's a tool that works for both you and the development community.

I would really like to thank you guys.

You really made that digestible, easy to understand, not only to us here in the council, but I think to our audience as well.

And it gives us a lot to look at between the CFDs, the bonding, and whatnot.

It gives us it just lets us know what tools are in our toolbox, and we we greatly appreciate that.

Mr.

Wright.

Yeah, Mr.

Mayor, members of council, just to wrap it up, is that uh you'll see us.

Um, Nick and Zach will probably be back.

We'll we'll bring up uh some policy updates on our CFD policy and RD policies coming up here in the near future just to strengthen our policies for the city and get them more up to date with the current rules and regulations.

So appreciate everything tonight and hope it was uh good knowledge for you.

Yeah, I believe so.

I believe we all agree on that.

Okay, next we're gonna move on.

We did start early tonight.

Anyone else want any unscheduled announcements or anything they like to bring to council?

No, okay, hearing and seeing nothing.

We will go to section six reports and announcements.

And we know we got mayor announcements.

There's always mayor announcements on Wednesday the 28th.

On Wednesday the 28th, council staff, council and staff attended the chamber luncheon at Robeson Ranch, where we heard from the AD DOT and the new exceptional community hospital.

AZ DOT shared updates on the Arizona passenger rail study.

And this is a passenger rail study between Tucson and Phoenix.

I'm not holding my breath.

And we also heard from a spokesperson from the hospital, the exceptional health hospital, which we'll get more on that in a moment.

Then on the 28th, Councilmember Bod Rosker and I had the pleasure of visiting our friends and neighbors in Green Valley Ranch.

We had a great QA session, and I look forward to doing that again real soon.

On the 29th, it was game night at Santa Cruz High School, where our very own Dust Devils took down the Globe Tigers.

The night also included a special dedication.

The running track was officially named after Nap Lawrence, a Santa Cruz Hall of Famer and philanthropist and an interesting man all around.

And I highly suggest look this man up, see what he's done for our community.

It's quite a bit.

And it is nice to see his name now adorned on the running track.

On Saturday the 30th, I put on my Eloy Police volunteer uniform and helped with the water drive for the police department.

We had a great turnout over there at the Tumbleweed, and the event was a real success.

Uh breakfast we had there.

And lastly, today we toured the new hospital.

The team at Exceptional Health rolled out the red carpet for us.

This facility is going to improve the quality of life in Eloy by providing excellent health care close to home.

I think most people who went to the tour today were really impressed at this facility and what it looked like.

And I'd like to tell any members of the public would like to go out and tour this facility on the 12th.

You can go there.

It's going to be open.

And I believe Monday.

Monday, 6 a.m.

They are certified to start taking people in the event you have the need to be there, and I hope you never do.

But the place is absolutely amazing.

So with that, we're going to pass on to council member announcements on my left.

I think you've already mentioned everything.

The Pinell Partnership breakfast was amazing, and Eloy got great kudos.

McKinsey got um shouted out for what a great person he is to work with and and bringing development into Eloy, and that was really great to hear from someone as prestigious and such a big developer in Arizona.

Um congratulations to you, McKenzie.

As much as I would love to take all the credit for that, it's economic development and bringing these kind of groups to Eloy as a team sport.

So I mean that's credit to everybody on our team from our public work staff to community development, and then obviously with Dave, our city manager.

So but thank you.

Yes, but he did shout out you.

Okay, and then of course, um, the Eloy Chamber.

Um, I was able to speak about the Fiesta Spatrias that are coming to Eloy on Friday and Saturday.

But encourage everybody to attend.

There's gonna be great entertainment, there's gonna be great fruit food available.

Um, there's lots of activities for the kids.

Um, if you just want to spend the day out there, um, it's one of the premier uh tourist attractions in Eloy.

It's one of the premier events in Eloy.

Um but on Saturday, which is which is my big concern, is that uh we'll have the parade.

And if I could encourage anybody to participate in any part of their fiestas, come on down and watch the parade.

We're really excited this year because not only is exceptional health agreed to be in the parade, but waste management as well.

Um, along with all the other wonderful people that come down to Eloy.

And we may have some other elected officials that are interested in writing in the parade as well.

But it's a great time whether you come on Saturday or whether you come on Sunday.

Please come and support the Fiesta Spatias.

Thank you.

Thank you.

Yeah.

I'd like to go back to uh Pinel Partnership.

Uh two takeaways that I had there.

And one of them reminded me when I was still my other career, that um uh the need for speed.

And the uh panel, all almost all of them talked about the importance of the developers and the speed of uh the planning process and how how uh time is money, and so they all seemed to focus on that.

I picked that up that uh uh they sometimes get hung up in the planning process and being able to get things approved, but it also picked up the fact that uh it wasn't because it was being deliberate.

A lot of times that they didn't fully understand what the process was or what was needed, and so I think uh I'd encourage our planning development department to kind of look at our processes and see if we can state streamline those or uh some way to enable the uh prospective client to understand what's needed so we can increase that time.

The other thing that came up was something that I remember years ago we used to call them quality circles, where uh we'd get all the stakeholders together of a new project, whether it be manufacturing, whether it be electrician, a plumber, uh, when something is being proposed, and everybody was part of the act, so everybody knew what was coming down the pike.

And they also this panel brought that up.

The fact it'd be good to have stakeholders uh for developer, developers get together, talk about infrastructure, talk about the water systems, talk about the the uh power systems, APSED4, and have people get together on a regular basis on what the city's facing, and maybe as a collective group, they can kind of share and come up with some ideas.

I think I'd like to see the city uh I'd like to encourage the city to maybe start looking at doing something like that, having some shareholder meetings with developers that uh are interested in the city or are talking about uh moving forward, but yet have some obstacles and maybe uh just kick it around.

You you never know what might come out of it.

So those are two takeaways like come up that I think were were very uh interesting things.

Thank you, council member.

And to your point, one of the logic developers uh did bring up the uh processes here in Eloy, and they were very happy.

He brought that up in public, he said they were very happy with what they went through, and that that made us all feel good.

It really did.

And on my right.

Go ahead.

Um, I've just got a couple of things um to tag on to what Joanne said about Fiestas Patriots for the parade.

We're going to be having two skydivers jump into the parade, so make sure they're there at 9 a.m.

sharp if you want to see the Mexico flag and the US flag, old glory, come in.

Um, but I'm recovering from a stem cell procedure, so I I won't be there for you guys this time.

But we do have two great Eloy locals jumping the flags.

And then also in other skydiving news, right now this week going on is the World Cup of Canopy Piloting that's taking place at Skydive Arizona.

And just to let you know what that is, it's a competition of people landing really fast parachutes over the pond.

So skimming across water, um, doing it for time, doing it for speed, doing it for accuracy, and also freestyle, which is kind of like tricks and stuff like that.

So if you're interested in coming out and watching that and seeing athletes from all over the world compete against each other, um, it starts at 6 a.m.

each day and will probably go until Thursday or Friday, unless there's some bad weather, it could spill over until Saturday or Sunday.

But most likely it'll be done in the first part of the week.

Um and it starts early before the winds kick up in the afternoon.

Oh, and just to tag on to what Dan said about Penell Partnership, um, I really liked his second point about the stakeholder meeting.

I thought that was a really important point by the developers, and I think it was a process that worked really well for us when we were doing the solar ordinances.

Yeah, that was lengthy, but when people um got together and we understood what they wanted, we kind of got something down on paper and it made everything clear for stuff coming down the pipes.

And if I'm not mistaken, Dan Seimer also did get a shout out at that meeting.

Thank you, Councilwoman.

Anybody else?

Sure.

Okay, that will bring us to item C, City Manager announcements.

Thank you, Mayor, members of council.

Just a couple of updates before we invite the chief up for his uh monthly council briefing.

Uh, first off, let's kick off with some good news.

We received notification at the end of August that we were awarded the Transportation Alternatives grant for our Batagalia sidewalk project.

Uh, that's a 2.6 million dollar project with our local match at 151,600.

So very excited for that.

They're gonna start design first, should be completed this fiscal year before they move into construction.

Um, anticipated to be completed by FY28, and actually ADOT will be doing this.

So they're gonna be handling all the construction of the project.

But Matt and his team are really excited that we got awarded that.

Looking forward to continuing our connectivity in our in our city and making it easier for kids and adults and folks to get around town.

So that's exciting news.

As another reminder, uh the public hearing for the APS power line poll project was today.

That was uh between one and five.

I was unfortunately not able to make it, but that was what we had talked about last time at the city council meeting.

So the other one from last week was related to a solar project.

So SWCA, who's managing the public outreach for APS is doing other projects, and there was a confusion between the two projects.

This one was the public hearing for the transmission lines.

Yeah, September 8th, one to five.

As our yeah, our tour of exceptional health.

One or the other.

Well, this is this one we've been keeping pretty close tabs on.

So Dan and his team have provided some good input on where these lines should go so they don't interfere too much with development over there east of 87.

Next up, speaking of Mr.

Simer and his team, the air park master plan kickoff is this week.

So, as you recall, we wrapped up the airport master plan, and that was to figure out what the airport looks like in the next 20 years or so.

This is the air park master plan, which is a business park industrial use plan of what the uses around the airport are gonna be.

So, this is that next key component to what the airport looks like in growth.

So we're really excited to get that going.

That's been on Dan's top priority as well.

And last on my list, before we move to the chief, is just uh thank you all for providing input on any of the issues that we dealt with in the coax.

Um, that when I sent the agenda out, there were council members that reached out either phone or email to say, hey, we're looking for more information.

I don't understand this.

That's a great way to do it.

So I encourage all council members when the agendas go out.

If you have any questions, feel free to email me directly or give me a call and I'll help answer those questions, get answers from staff, and make sure that it's not just the one person that called up like I did this last time.

I'll put together a blanket email, BCCing all of city council so that you guys are aware of what was being said.

So please encourage that all the time.

Thank you so much for being engaged in the process.

That concludes all my announcements, Mayor, Council.

Next up is our chief of police.

Okay, this is all right.

Good evening, Mr.

Mayor, Vice Mayor, City Council, our assistant city manager, city attorney, city manager, and our city clerk.

And to those here in the public from the public and sitting out here from the community, welcome as well.

Those who joining us online.

For those of you haven't heard this before, I do this monthly brief on the first council meeting of each month.

And the purpose of this briefing is to highlight the outstanding work being done by our officers of the Eloy Police Department and staff to ensure the safety of the city of Eloy.

And also to reaffirm our commitment to transparency, communicating, communication, and community collaboration.

The following is a recap of the Eloy Police Department activity for the month of August 2025, which was a very um busy month for us.

You guys will see what some of the stats at the end of the presentation.

We're very busy.

Um the presentation will cover three main areas.

We'll be covering internal department updates, community engagement activities, and lastly, notable enforcement activity and key statistics.

We'll start with internal department updates.

Um, on August 14th, police officer recruit Stephen Lindsay graduated from the Gilbert Regional Academy, and now he's with the police department full time and in the field training officer program, aka the FTO program, and he'll most likely be in that program for four to six months before he's certified as a solo patrol officer to be out by himself.

Also, we hired another police and fire communications dispatcher, Audra Calkins, who rejoins us, who was at the Eloy Police Department before, and she joined us on August 20th.

Um, with awesome report about her with her experience and uh limited training that she really needed to get back on in the communication and dispatcher seat.

Um, she's already working in the solo capacity.

She's only been with us, I believe, for two and a half weeks.

So, I mean, that that's that's very notable.

Um, with that, we are also hiring for one dispatcher, um, additional dispatcher, and we also have one other dispatcher that's currently in training as well.

And then lastly, we have a police officer recruit, Tad Mendez that began the police academy today at the Gilbert Regional Academy.

So I'm sure he had a stressful day today.

But it was but uh it's all gonna be good.

Six month academy, and then he'll be back here for the FDO program.

Secondly, we'll talk about community engagement.

As we all know, community engagement is essential to building trust and legitimacy by fostering open dialogue and collaboration.

We strengthen our relationship with the public and reinforce a shared responsibility for community safety.

The month of August, Eloy Police Department participated and attended, participated in or attended the following.

On August 11th, I met with the Santa Cruz Union High School principal and superintendent Crystal Reyes to discuss school safety and police department cooperation and collaboration, talked about lockdown drills, talked about physical security, also talked about our adoptive school program to make sure that we're on the same page, and then that I opened those lines of communications for any things they may need throughout their school year.

August 20th, I met with the Toll Tech superintendent, Dr.

Poppen discussed school safety and police department cooperation, collaboration as well.

Talked about lockdown drills, talked about the adoptive school program and how we could be a good partner with them.

I also went on September 5th and um I believe I'm sorry, September 4th, and participated in a lockdown exercise with Toltec Elementary.

So they did a really good job, and uh they just love that open lines of communication with us that they always have us as a resource.

Also, uh mayor already mentioned this.

We participated in the water drive for public safety organized by Tumbleweed Inn.

So a special thanks to Cheryl Padigo of Tumbleweed End for your continued support of police and fire and having these these drives.

We may be looking at a copy with the cop in the future, uh, the near future, and they may be tumbleweed and may be a venue to have that event in the future as well.

Moving on to notable enforcement activity.

This is also from the month of August.

Just kind of goes back to having those relationships with our schools.

August 1st, school staff at Santa Cruz High School observed a student on campus with what appeared to be a weapon.

Staff acted quickly and safely by notifying school administration and law enforcement.

School officials confiscated the item, which was a BB gun, but resembled a real weapon.

Eloy PD took custody of the student and the BB gun.

Nobody was threatened or hurt during this incident.

Uh quick response, they called us.

The school staff did a great job of keeping everybody uh controlled there and getting control of the item that was brought on campus.

We were on scene within a minute or so after we were notified.

So everything turned out good.

August 8th, officers responded to Eloy Junior High again.

Uh, our relationships with the school reference a report of a student making threats to bring a gun to school.

Incident was investigated and not substantiated.

Eloy PD provided extra police presence the following day at school.

August 14th, officers responded to the area of Estrella and Hannah for a report of street racing.

And uh recently we've been getting a lot of reports of street racing and reports, and I understand some of our neighboring jurisdictions have been having the same issues.

Two vehicles were located on the side of the road, one vehicle was disabled.

Investigation was conducted by responding officers, and both drivers were arrested for street racing, and both vehicles were impounded.

August 19th, officer responded to the 600 block of north 11-mile corner for a report of a trespass.

Investigator revealed that three subjects had entered the abandoned commercial building and were stealing large amounts of copper wire.

Three suspects were arrested for burglary and numerous other violations.

We have one traffic investigator in that unit right now.

And uh one of the big misses was not just enforcement but also education as well.

Um so one of the things we also want to focus on was the commercial um enforcement of commercial vehicles in the city.

As you guys know, there's a lot of commercial vehicles in and around Eloy, not just off the off ramps, but driving through the city as well.

With the week Labor Day weekend that just recently passed, uh traffic unit organized a uh DUI and speed enforcement detail that went from August 29th through September 4th.

I'm sorry, through September 1st.

It was a four-day detail, which included four officers, and then a total of 118 hours dedicated to that detail.

During that detail, there was a total of 112 enforcement stops.

158 citations were issued, and 21 arrest.

Some of those citations that were written were for aggravated DUI, misdemeanor, misdemeanor DUI with drugs, under 21 DUIs, distracted driving, seatbelt violations, child safety, seat violations, criminal speed, reckless and aggressive driving, civil speed, and miscellaneous arrest.

Going back to the traffic unit during the month of August, the traffic unit also focused on commercial vehicle inspections, which I've asked to be part of the traffic enforcement program.

Traffic investigator, Corporal Tyler Gordon completed 21 commercial vehicle inspections.

And if anybody knows anything about commercial vehicle inspections, they usually take about an hour for each vehicle.

During those inspections, he noted and/or wrote citations for 88 violations during this time.

And I believe three or four trucks were actually taken out of service.

So that just speaks to the safety of the community.

As you see, these 18 wheelers and big semis driving through the community.

Um that quite often there are violations that they know of or don't know of due to you know lack of inspections of the vehicles and maintaining the vehicles.

During that month as well, traffic unit made eleven arrests, and also um issued seven warnings and wrote 168.

Um, excuse me, 166 traffic citations.

So with that, that is a recap of the police department's activity in August.

I'm happy to answer any questions that you guys might have.

Thank you, Mayor.

Thank you, Chief Benales.

You're welcome.

That's why you're here.

Um for the longest time, we really had nothing happening, and I really appreciate it, knowing that you have officers that are willing to go out there, especially a traffic unit.

Um, because I one of my questions was gonna be, you know, who's writing all those citations?

And I had an idea, but um because we know some officers don't like to write tickets, but um, and I get it.

Um, but whether we write citations or not, it's important to know that our citizens are safe, um, especially those semi-trucks, because we know we see some of those fatal accidents on the news, you know.

Um, because it's unfortunate that we have people driving those size vehicles that are impaired.

And um, I'm very thankful that you guys are out there doing that job.

Um, it's a lot of work, but um your work doesn't go unnoticed, and I appreciate you and all the officers that are working hard doing that.

Thank you.

Uh, one thing I'll add real quickly on the commercial vehicle enforcement.

Um, we we we want to take a stance of being proactive and in the educational part of it.

Um, Corporal Gordon for our traffic unit has reached out to numerous businesses within Eloy that have um commercial vehicle fleets and has volunteered and offered services to go out and do inspections of their fleet.

Um, by doing so, um, we ensure we're hoping to ensure that trucks do not leave those yards unsafe, and that we can point out there are uh those violations and give them opportunity to fix them before those trucks hit the road.

But in the commercial trucking world, I imagine the word will get around.

Don't go to Eloy if you're not yeah, don't be riding dirty.

I think it already is.

That's gonna be the bottom line.

And thank you for those numbers.

Those are just tremendous numbers.

They really are.

Thank you, sir.

Anyone else?

Yep.

I just want to thank the Eloy PD for their support and their uh the reserves as well for offering to uh volunteer at the Fiesta's parade.

I did we meet with um Gottley and Gauntly, Guantley, thank you.

Um, and and we've got everything straightened out.

We've got the skydivers set up so they can safely land on Main Street, and we've got the roads secured and somebody leading us in the parade, and you know, along with with other services that they're providing throughout the fiestas.

But you know, I'm the parade girls, so I'm just concerned about the parade.

And I want to give a shout out to the Arizona Rangers organization for helping us with security at all these special events as well.

They play a big role in keeping the community safe as well.

Thank you.

Anyone else on council?

Thank you, sir.

Thank you, sir.

Thank you very much.

Thank you.

All right, moving on, we'll go to section number seven consent agenda.

All items listed with an asterisk are considered to be routine matters and will be enacted by one motion and one roll call.

Vote of the council.

There will be no separate discussion on these items unless a council member show request in which event the item will be removed from the consent agenda and considered in its normal sequence on the agenda.

At this time, are there any council members who wish to have anything pulled?

Mr.

Mayor McKenzie and David are gonna love me.

I'd like to pull out of my absolutely, sir.

Anybody else?

Okay, at this time I'm looking for a motion to approve the consent agenda, except for item I.

Do I have a motion to approve?

So moved.

Do I have a second?

Second.

Madam Clerk.

Councilmember Garcia.

Yes.

Councilmember Galindo.

Yes.

Council member Councilmember Vajraska?

Yes.

Councilmember Curtis.

Yes.

Vice Mayor Tarango.

Yes.

Councilmember Schneider.

Yes.

Mayor Sutton.

Yes.

Thank you.

Okay, that leads us to item I.

That would be Mr.

Mallowitz.

Thank you, Mr.

Mary, members of council.

I will actually defer the credit to assistant city manager, Mr.

McKenzie, since he's been head of this project for so long.

I don't know how my name got there.

Thank you, David Mallowitz, or esteemed city manager for giving me the privilege.

Um, so yeah, the water tower, obviously, the gift that keeps giving the the never-ending story.

Hopefully, if this is approved tonight, this will be the conclusion of this essentially two-year project.

Uh, as you all know, last year in 2024, a substantial amount of work was done out at the water, uh, the water tower facility, including the replacement of all of the LED lighting on the water tower legs, uh, as well as the APS polar location and then trenching and conduit work by Ellison Mills.

Uh, when you look at the total overall cost impact of that project, it totaled to about $30,000 that it was invested in the water tower last year.

Uh, at that time when HLC came out and investigated the tower, what they ended up finding was that there was significant penetration in the system that we had installed that basically illuminates the tower, uh, the tower head where you see the Eloy script.

Um, after they kind of investigated that, they found that the IP65 rating that we have, which is basically the penetration index, wasn't high enough to where we are still getting penetration from water with you.

Obviously, you guys know with the monsoons and things that come through the city.

When there's high winds with the rain activity, it pushes the water diagonally, and when that hits the lights, it it forces it to penetrate into the lighting system.

Uh, from that, they were able to find that we had about 16 lights, almost half of the system that had failed uh after their previous inspection.

So from that point on, we either had the option to reinstall those faulty lights, those IP65s, and we made the administrative kind of decision at that point that instead of going with the faulty light system, we'd rather move it over to the next year into our CIP program to get the upgraded lighting system that has a higher rating to basically withstand that water density, and that's going to be penetrating in.

Uh with the new system we have right now, if it's installed and approved, uh, we would no longer have that issue.

Uh also has a five-year warranty, which our previous lighting system did not.

So if these lights happen to fail during that time, HLC will come out and basically reinstall the uh the backup lights for that.

Uh, as you can see with the cost associated with this project, you're looking at a total cost of about 26,950.

We did include a budget capacity, basically contingency of an address, an additional two thousand and fifty dollars for an amount not to exceed 29,000.

Uh 20,000 of that amount was allocated in the capital improvement program, and the additional funding would come out of our basically our water tower maintenance fund, which we allocate 20,000 to every year for just reoccurring maintenance.

Uh that could happen at the water tower.

So, yeah, hopefully, if this is approved tonight, uh it will allow for the RGBW enhanced fixtures to be installed.

They're tentatively scheduled for October 16th if it's approved tonight.

So they'd be installed ready in time for our APS light parade and all the festivities that we have during that time.

So highly recommend to get this approved tonight.

But obviously, if council wants any information on if we were to go with the more cost effect, not cost effective, but the basically lower grade the system that we had before.

We could, you know, go with that system, but again, we couldn't guarantee that it's not gonna have the same issues that we haven't had in the past.

Uh the difference is about $8,000, so it is substantial, but you get what you pay for.

So uh staff's recommendation is to go with this higher grade model.

And I'd be happy to answer any questions.

Well, thank you for the explanation.

That's basic basically what I was after.

I was confused on weather because we don't have a lot of rain, you know, just why do we have a problem?

And but you explained that when that was not obvious before.

Uh I would like this maybe as a as a future reporting at council.

If we go back to day one when we first approved the lighting, it was I can't remember 160,000 or something like that.

And maybe go back and put together a total of what we've spent with the you know, we changed a uh location of a pool and did some other lot of work, but maybe just uh come back what was the total amount we have spent on the tower now to this point because I remember we were thinking we're gonna spend 200,000 back in.

We had some.

I don't remember if anybody Jose, were you on council then?

I was on council.

I can't remember if I voted for it or not.

Well, you remember there was a lot a lot of discussion on whether we were gonna do it or not, and so we thought it was pretty uh not a lot of expensive for what we're gonna get out of it, but uh hasn't necessarily turned out that way because we probably cut some corners we shouldn't have cut on it.

So but appreciate that uh response.

With that, I would uh before you decide to go that way.

I know one of the things we often ask and always ask our residents to do is to follow our ordinances and have a question related to our dark skies ordinances.

Does this tower fall into that or is it exceeding the light output from that ordinance?

Because we as a city should be setting the example and not being the exception.

Great question, Councilmember Garcia.

Um I I don't know if Dan's covering his face, so I don't call him up to the podium, but I would defer that question potentially to Dan Seimer if he's willing to.

Sorry, Mayor members of council.

In due honesty, I'd rather like to get back to you on that because I do know that we copied this the flagstaff ordinance and I rewrote the flagstaff orders before I got here.

And I can tell you under that ordinance, the answer is no.

But we're not identical to it.

But I think there is an exception, but I uh if you don't mind if I can get back to the council through a separate email.

Yes.

I got a I don't know if this is a question or maybe a comment related to this um topic with the dark sky.

I I don't I can't remember if David said something about this or if we just sort of had discussions, but um there was talk at one point in time about maybe having the lights be turned off at certain hours of the night.

So either you know, if there's a big festival or something going on, cool, put them on.

Otherwise, they go off at a certain time and they come back on at a certain time.

I I know sometimes I'm driving to work at two in the morning and they're blazing.

And I I think that there was um some talk with um some of the people interested in nesting birds and stuff like that, that this was a disturbance to them.

It also I know council member Garcia has mentioned that it's a disturbance to residents who live right there, which of which he is one.

Um so I think we love the water tower and what it looks like when we're all having a party on the street and all on all that good stuff, but maybe there's a um a possible schedule of a shut-off times that we could consider.

The the answer to that there there is.

I just don't know exactly if the tower is exempt.

It's 11 o'clock.

Yeah, much like the signs on the highway, the big billboards, yeah.

They they shut off all at a certain time.

Yeah, and that's dictated by state statute, uh, the freeways, but uh I would like to get back and just re I I know the answer, but I don't want to misquote it because I don't know the exact language.

One of the uh driving factors when we decided to put the lights on the tower was the to notarize where downtown Eli is.

You know, uh I don't know how other people are.

I'm sometimes driving down the interstate and I see this sign that says Eloy, next so many exits.

And you look and where is it?

Or I could be driving driving any place else and say, Oh, I'm gonna get gas, there's gas the next stop, and you get off, and all of a sudden there's no town here.

Where's where is this town?

And so one of the drivers was we wanted to do to bring some notoriety to Eloy to have something visible from the interstate, and that's why that was done.

But I also think that we ought to look of what time period is it on, because it's one thing you could have it on in the early part of the evening and say you cut it off at uh 11 o'clock or midnight or something like that, and it's still visible because the you know the people in interstate after that hour are not necessarily the people who want to drive to Eloy anyway.

And so uh yeah, I think we could compromise both ways there.

If nobody else is with that said, uh I'll take uh some of the uh Mackenzie out of his misery here, and uh I'll make a motion we approve item I.

Do I have a second?

I'll second.

Madam Clerk.

Councilmember Schneider.

Yes, Councilmember Garcia.

The light pollution is too much.

No.

Councilmember Galindo.

Yes.

Councilmember Valdraska.

Yes, Councilmember Curtis.

Yes.

Um, not making a caveat on my yes, but I would like to reinforce that we do look at those times as we go forward with the light tower.

Vice Mayor Tarango.

Yes, Mayor Sutton.

Yes.

Thank you.

Thank you.

Okay, now we go into section number eight.

Business possible discussions and all actions on the following.

Item A, adopt resolution number two five one six three one, approving case number CUP 2025-005, Desert Septic, a request by George Allen, property owner for a conditional use permit for outdoor storage on the property located at 4650 and 4712 North Tumbleweed Road.

And they've been waiting here patiently all night, those people.

Mr.

Simon.

Thank you, Mayor.

Members of the council.

Yeah, I am before you as the mayor indicated it is a conditional use permit for outdoor storage.

It is for Desert Septic, which will be locating their business here in the city on two parcels.

Um they are requesting outdoor storage for their equipment, and they will also be locating their uh one of their smaller offices on the site.

Uh the use permit is necessary because of this in the Iowa district.

It is almost across the street from the RV kind of park that's there right now.

Uh the planning commission did recommend approval of a 6-0 vote.

And uh staff also recommended approval subject to detached stipulations.

The applicant is here for any questions that you may have, and I'll be happy to turn it over back to the mayor.

Okay, anybody on council have any questions for Mr.

Simon or the applicant?

Go ahead.

Is there gonna be any smell?

We offload our trucks at the end of the day.

We do not store any waste on the facility.

Just our trucks will park there.

Most of them are construction trucks, like one-ton trucks with a tractor that go out daily, and we have one service pump truck that goes out, and we offload at the city of Cas Grand at the end of the day before we come back.

Just your name for the record.

What's that?

Your name for the record.

Oh, George Allen.

Sorry.

Thanks, George.

One more question.

Um, what kind of amounts of and weight of or heaviness of trucks are gonna be going up and down the road?

How often?

Our work trucks are one-ton trucks like F-450, F 350, um, two to three a day leave for the day, and then we come back at the end of the day and park them.

We have one pump truck that leaves daily, Monday through Friday, and then we get a delivery usually every other Friday, which is like a one-ton truck on a flatbed trailer with plastic septic tanks and pipe.

Thank you.

Go ahead, Joe.

So um I'm looking at the map, and I see that there is a neighborhood community right across the street on Tumbleweed.

Have as you reached out to your neighbors, have you talked to anybody that residents in that area?

I have not spoke to any residents there.

I have spoke with um the hills at the at the airport in length about what we were doing and and stuff like that, but I have not spoken to anybody across the street there.

So um the type of equipment that that you're looking to store in that area, it's not gonna obscure views and stuff, is it?

No, we're gonna do a seven-foot-tall fence, and our stuff's it's not like large construction equipment like you're seeing over at the airport right now, it's more mini excavators.

We do residential type work, not commercial work.

Thank you.

Um you guys got anything?

Oh no, sir.

You good?

Are you guys good?

Okay.

Do I hear a motion to read by title adoption of resolution 25-1631?

Mayor, I'll make a motion to read by title only.

Do we have a second?

Second.

All in favor say aye.

Aye.

Any opposed?

Motion carries.

Madam Clerk.

Resolution number 251635.

Conditional use permit to allow outdoor storage on the properties located at four excuse me.

A resolution of the mayor and city council of the city of Eloy, Arizona, approving a conditional use permit to allow outdoor storage on the properties located at four four six five zero and four seven one two North Tumbleweed Road, Eloy, Arizona, and consisting of approximately one point eight four acres.

Okay, do I have a motion to approve resolution number two five dash one six three one as presented?

Mayor, I'll make a motion to approve resolution the one you read.

I already forgot the number.

Do I have it?

Second roll call, Madam Clerk.

Councilmember Garcia?

Yes.

Councilmember Galindo?

Yes.

Councilmember Valdraska?

Yes.

Councilmember Curtis?

Yes.

Vice Mayor Tarango?

Yes.

Councilmember Schneider?

Yes.

Yes.

Mayor Sutton.

Yes.

Good luck, guys.

Thank you for thank you for investing in Eloy.

We really appreciate it.

Thank you for that.

Good luck up there.

Appreciate it.

Okay, there will be no executive session tonight, so that brings us to our favorite portion of the evening.

Do we have a motion to adjourn?

I'll make that motion.

Do I have a second?

Second.

All in favor say aye.

Aye.

Thank you, everybody.

Have a safe trip home.