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HomeMy WebLinkAbout2024 11.19 SVCDF 2 Cityof Apache Junction Arizona City Council Chambers 300 E Superstition Blvd Apache Junction,AZ 85119 Special Meeting Agenda apachejunctionaz.gov Superstition Vistas Community Ph:(480)982-8002 Facilities District No. 2 Doors are open to the public at least 15 minutes prior to the posted meeting start time. Tuesday, November 19,2024 6:00 PM City Council Chambers A. Call to Order B. Roll Call C. Agenda Items 1. 24- 22 Approval of minutes of special meeting of October 15, 2024. Attachments: SVCFD2MIN 2024 10 15 MINUTES DRAFT 2. 24-923 Conduct a public hearing on the feasibility report for a proposed project to be financed by the issuance of general obligations bonds of Superstition Vistas Community Facilities District No.2. Attachments: Final Feasibilit Re ort SVCFD No.2 GO 2024 3. 24-924 Presentation, discussion, and consideration of Resolution No. 2024-008 SVCFD No. 2, a resolution of the district board of Superstition Vistas Community Facilities District No. 2 approving the prior notice of a public hearing with respect to a feasibility report relating to the acquisition and financing of certain improvements benefitting Superstition Vistas Community Facilities District No. 2; approving the feasibility report; authorizing the issuance of the District's General Obligation Bonds, Taxable Series 2024; prescribing the terms of such bonds; delegating the determination of certain terms to the Chairman, District Manager and District Treasurer; levying an ad valorem tax on taxable property within the District; and authorizing the taking of other actions securing the payment of and relating to the bonds. Attachments: RESOLUTION NO. 2024-008-SVCFD NO. 2 D. District Manager Report E. District Director Report - Presentation and discussion of the following items: F. District Treasurer Report - Presentation and discussion City of Apache Junction,Arizona Page 1 Printed on 1111412024 Superstition Vistas Community Special Meeting Agenda November 19,2024 Facilities District No.2 G. Adjournment Copies of this agenda and additional information on any of the items listed above may be obtained from the office of the city clerk/district clerk, 300 E Superstition Blvd,Apache Junction,AZ 85119, Monday through Thursday, 7:00a to 6:00p, excluding holidays. The City of Apache Junction invites and welcomes people of all abilities to use our programs, sites and facilities. Specific requests may be made by contacting the Human Resources Office at(480)474-2617 or TDD(480)983-0095. Members of this board will attend either in person or by telephone, video or internet conferencing. City of Apache Junction,Arizona Page 2 Printed on 1111412024 City of Apache Junction, Arizona 300 E Superstition Boulevard Agenda Item Cover Sheet Apache Junction,AZ 85119 Agenda Item No. 1. File ID: 24-922 Sponsor: Agenda Date: 11/19/2024 Index: In Control: Superstition Vistas Community Facilit Approval of minutes of special meeting of October 15, 2024. City of Apache Junction,Arizona Pagel Printed on 1111412024 Cityof Apache Junction, Ari City Council Chambers paczona 300 E Superstition Blvd Apache Junction,AZ Special Meeting Minutes 85119 Superstition Vistas Communityapachejunctionaz.gov p Ph:(480)982-8002 Facilities District No. 2 Doors are open to the public at least 15 minutes prior to the posted meeting start time. Tuesday,October 15,2024 6:30 PM City Council Chambers A. Call to Order Chair Wilson called the meeting to order at 6:30 p.m. B. Roll Call Present 7- Chairperson Wilson, Boardmember Schroeder, Boardmember Heck, Boardmember Johnson, Boardmember Nesser, Boardmember Soller, and Boardmember Cross Staff in attendance: Bryant Powell, District Manager Evie McKinney, District Deputy Clerk Angelie Hawley, District Treasurer Connie Chow, District Controller Mike Loggins, District Director Rita Vineyard, District Administrative Assistant Stacey Ramirez, District Billing Supervisor Charles Briggs, District Project Manager Kayla Fulmer, District Communications/Marketing Director C. Agenda Items 1. 24-877 Approval of minutes of the Superstition Community Facilities District No. 2 special meeting of June 18, 2024. Chair Wilson called for a motion. Boardmember Schroeder moved,seconded by Boardmember Nesser that the minutes of the June 18,2024,special meeting be approved. Yes: 7- Chairperson Wilson, Boardmember Schroeder, Boardmember Heck, Boardmember Johnson, Boardmember Nesser, Boardmember Soller and Boardmember Cross No: 0 2. 24-878 Discussion and consideration of Resolution No. 2024-007, approving a corrected legal description of district boundaries in Superstition Vistas Community Facilities District No. 2, as set forth in an amended intergovernmental and development agreement. Chair Wilson called for a motion. Boardmember Heck moved,seconded by Boardmember Soller that Resolution No.2024-007 SVCFD No.2 be approved. City of Apache Junction,Arizona Pagel Superstition Vistas Community Special Meeting Minutes October 15,2024 Facilities District No.2 Yes: 7- Chairperson Wilson, Boardmember Schroeder, Boardmember Heck, Boardmember Johnson, Boardmember Nesser, Boardmember Soller and Boardmember Cross No: 0 Zach Sakas, Esq. of Greenberg Traurig, LLP, outside council for the Superstition Vistas Community Facilities District No. 2 presented the background for Resolution No. 2024-007. D. Public Hearing E. District Manager Report F. District Director Report - Presentation and discussion of the following items: G. District Treasurer Report - Presentation and discussion H. Adjournment Chair Wilson adjourned the meeting at 6:38 p.m. ACCEPTED THIS DAY OF 2024, BY THE CHAIR PERSON AND DISTRICT BOARD OF THE SUPERSTITION VISTAS COMMUNITY FACILITIES DISTRICT NO. 2 (CITY OF APACHE JUNCTION, ARIZONA). SIGNED AND ATTESTED TO THIS DAY OF 2024. WALTER"CHIP"WILSON Chairperson ATTEST: JENNIFER PENA District Clerk City of Apache Junction,Arizona Page 2 City of Apache Junction, Arizona 300 E Superstition Boulevard Agenda Item Cover Sheet Apache Junction,AZ 85119 Agenda Item No.2. File ID: 24-923 Sponsor: Agenda Date: 11/19/2024 Index: In Control: Superstition Vistas Community Facilit Conduct a public hearing on the feasibility report for a proposed project to be financed by the issuance of general obligations bonds of Superstition Vistas Community Facilities District No.2. City of Apache Junction,Arizona Pagel Printed on 1111412024 FEASIBILITY REPORT For The Issuance of Not to Exceed $35,000* Principal Amount OF SUPERSTITION VISTAS COMMUNITY FACILITIES DISTRICT NO. 2 GENERAL OBLIGATION BONDS, TAXABLE SERIES 2024 Public Hearing Date: November 19, 2024 Preliminary subject to change. TABLE OF CONTENTS SECTION Introduction; Purpose of Feasibility Report; General Description of District ONE Description of Public Infrastructure TWO Map of the District Showing Location of Public Infrastructure and Area to be Benefited THREE Estimate of Costs and Timetable for Acquisition of Public Infrastructure FOUR Plan of Finance FIVE APPENDIX Legal Description for Superstition Vistas Community Facilities District No. 2 A SECTION ONE INTRODUCTION; PURPOSE OF FEASIBILITY REPORT; GENERAL DESCRIPTION OF DISTRICT INTRODUCTION This Feasibility Report(this"Report")has been prepared for presentation to the Board of Directors of the Superstition Vistas Community Facilities District No. 2 (the "District") in connection with the proposed issuance by the District of its General Obligation Bonds, Taxable Series 2024 (the`Bonds")in a principal amount of not to exceed $35,000%pursuant to the Community Facilities District Act of 1988,Title 48, Chapter 4,Article 6 of Arizona Revised Statutes("A.R.S."). PURPOSE OF FEASIBILITY REPORT This Report has been prepared for consideration of the feasibility and benefits of the Public Infrastructure(as defined in A.R.S.Section 48-701)to be financed by the Bonds(the"Public Infrastructure") and of the plan for financing the Public Infrastructure in accordance with the provisions of A.R.S.Section 48- 715. Pursuant to A.R.S. Section 48-715, this Report includes (i) a description of the Public Infrastructure to be financed— Section Two; (ii) maps showing, in general, the location of the Public Infrastructure and the area to be benefited by the Public Infrastructure—Section Three; (iii)an estimate of the cost to acquire, operate and maintain the Public Infrastructure and timetable for the acquisition of the Public Infrastructure —Section Four; and(iv)a plan for financing the Public Infrastructure—Section Five. This Report has been prepared for the consideration of the Board of Directors of the District only. It is not intended or anticipated that this Report will be relied upon by other persons,including,but not limited to,purchasers of the Bonds. This Report does not attempt to address the quality of the Bonds as investments or the likelihood of repayment of the Bonds. In preparing this Report,financial advisors,appraisers,counsel, engineers, District staff, City (as defined herein) staff and other experts have been consulted as deemed appropriate. GENERAL DESCRIPTION OF THE DISTRICT Pursuant to the Community Facilities District Act of 1988,Title 48,Chapter 4,Article 6 A.R.S.,as amended,upon the petition of D.R.Horton,Inc., a corporation organized and existing pursuant to the laws of the State of Delaware ("D.R. Horton"), the City Council of the City of Apache Junction, Arizona (the "City"), adopted a resolution on October 5, 2021, which formed the District. Pursuant to the Purchase Agreement and Partial Assignment and Delegation of Rights Under Participation Contract,dated March 1.4, 2022 (the `Brookfield Purchase Agreement"), by and between D.R. Horton and Brookfield Homes Holdings LLC, a California limited liability company (`Brookfield Homes"), D.R. Horton agreed to sell and Brookfield Homes agreed to purchase the real property within the boundaries of the District.Brookfield Homes subsequently assigned to Brookfield ASLD 8500 LLC, a Delaware limited liability company (the "Developer"), all of Brookfield Homes' right, title and interest to acquire and develop the real property within the boundaries of the District pursuant to the Brookfield Purchase Agreement. The real property within the District boundaries consists of approximately 1,312 acres of a larger 2,783-acre project within the City, where the Developer was the successful bidder at the public auction conducted by Arizona State Land Department ("ASLD") and pursuant to the terms of the Certificate of Purchase 53-120190 executed November 12, 2020, as thereafter amended (the "Certificate of Purchase"). Pursuant to the Brookfield Purchase Agreement the Developer is now developing the mixed use, master planned community known as Blossom Rock on approximately 1,312 acres (the"Project"). The Project is located east of Ironwood Drive, west of South Dutchman Drive, south of Radiance Avenue and north of Ray Road.Construction of the Project commenced in November 2021,and the first home closings occurred Preliminary subject to change. ONE- 1 in May 2024. As of November 1, 2024, approximately 132 single family residential units have been sold within the District. Single family residential units represent approximately 1,170 acres within the Project.Non-residential development comprises approximately 142 acres within the Project and includes churches, government, police and fire stations, schools, civic and commercial uses and common area, and neighborhood open space. The following table characterizes the approximate acreage within the District. Approximate Total District District Acres Single Family Residential 1,170 Non-Residential(a) 142 Total 1,312 (a) Includes churches,police and fire stations, schools, civic and commercial uses and common area, and neighborhood open space. The District was created to assist with financing the acquisition of public infrastructure and public infrastructure purposes, including the Public Infrastructure,principally benefitting the real property within the boundaries of the District. See Section Two for a description of the Public Infrastructure to be financed with a portion of the proceeds of the Bonds. Maps of the District including the location, in general, of the Public Infrastructure, are included in Section Three. A legal description of the District is included as Appendix A. The proposed acquisition of the Public Infrastructure as defined in this Report is consistent with the approved General Plan for the District. ONE-2 SECTION TWO DESCRIPTION OF PUBLIC INFRASTRUCTURE DESCRIPTION OF PUBLIC INFRASTRUCTURE The Public Infrastructure subject to this Report has been publicly bid pursuant to State statutes and District guidelines and will be financed by the Bonds and/or subsequent bond issues and other sources, if necessary. It is expected that the Public Infrastructure listed below will be acquired from the Developer with estimated cost and construction timing as noted. Total Certified Paid by Eligible for Funding Estimated Engineer's Prior from Bonds and Completion Acquisition Project Description Cost Cost Bonds(a)* Future Bonds(a)* Date(b)* 1. Blossom Rock Trail — SVJOC-001.04W; $ 502,159 $ 502,159 $ 0 $502,159 January 2024 SVJOC-001.04R 1,710,623 1,710,623 1,440,835 269,788 Total $2,212,782 $2,212,782 $1,440,835 $771,947 (a) Includes acquisition costs from the District's prior special assessment bonds. (b) Completion represents the date by which the Public Infrastructure was constructed,which may differ by the date that it was accepted by the City or other governmental entities,as applicable. (c) Totals may not add due to rounding. The Public Infrastructure consists of construction of approximately 3,639 linear feet of full street surface improvements, including curb and detached sidewalk. The street improvements include two lanes in each direction and tying into existing Ray Avenue to the South and extending to the North. These improvements include 12-inch potable water and 8-inch water stubs, various sizes of storm drain, concrete curb and gutter, sidewalk, paving, striping, signage, streetlights and street sleeves. All improvements are shown on the plans sealed by Wood, Patel and Associates, on December 29, 2022, and approved by the City, which may be amended from time to time to allow for additional property uses adjacent to Blossom Rock Trail that are not yet known. Proceeds of the Bonds are reasonably expected to be used to finance the acquisition of all or a portion of the Public Infrastructure upon acceptance by the District and the City, or other governmental entities, as applicable, of such Public Infrastructure pursuant to the terms of the Amended and Restated District Development,Financing Participation,Waiver and Intergovernmental Agreement,recorded on October 11, 2022,at Fee No.2022-1.06816 in the records of Pinal.County,Arizona(the"County"),as thereafter amended by the First Amendment to Amended and Restated District Development,Financing Participation, Waiver and Intergovernmental Agreement, recorded on October 29, 2024, at Fee No. 2024-082869 in the records of the County (collectively, the "District Development Agreement"), and the terms and provisions of all applicable laws, ordinances, codes and rules. All interests in such. Public Infrastructure financed by the District will be dedicated or otherwise transferred to the City or other governmental entities, as applicable, after acceptance. Additional portions of public infrastructure,as contemplated by the District's formational documents, may be constructed and will be subject to administrative approval by the District before such. additional public infrastructure is eligible for funding from future bonds, if any. *Preliminary,subject to change. TWO- 1 SECTION THREE MAP OF THE DISTRICT SHOWING LOCATION OF PUBLIC INFRASTRUCTURE AND AREA TO BE BENEFITED The District ELLIOT AVENU .. ., .ter" �s CFD NO. 1 ,312 ACRES WARNER 'W ;yAVENUE .� RAY AVENUE THREE- 1 The Public Infrastructure in Context of the District ELLIOT AVENUE WARNER AVENUE s\ kp z s � � p � £ AYE,,-G» nFP.4R5 l,t fSa )aRR rfi 3{a liSUfr�F! ..4.i�}i4S k} 0.� t#!n..£...i�Y Jh, <Jff xN titt THREE-2 SECTION FOUR ESTIMATE OF COSTS AND TIMETABLE FOR ACQUISITION OF PUBLIC INFRASTRUCTURE ESTIMATE OF COSTS AND TIMETABLE FOR ACQUISITION OF PUBLIC INFRASTRUCTURE The table in Section Two outlines the cost estimate and completion dates for the construction of the Public Infrastructure. Proceeds of the Bonds, after payment of the costs of issuance,will be used to finance the acquisition of all or a portion of the Public Infrastructure projects listed in Section Two. Listed below is an estimated draw schedule of the proceeds of the Bonds for acquisition of the Public Infrastructure. Estimated Acquisition Public Infrastructure Price Completion Date(a) Funds Draw Date Blossom Rock Trail— January 2024 December 2024 SVJOC-001.04W; $502,159 SVJOC-001.04R; 1,710,623 Total $2,212,782 (a) Represents the date by which the Public Infrastructure was constructed,which may differ from the date that it was accepted by the City, or other governmental entities, as applicable. FOUR- 1 SECTION FIVE PLAN OF FINANCE PLAN OF FINANCE Below is a financing plan that describes the process for financing a portion of the Public Infrastructure benefiting the property within the District. This Plan of Finance is subject to modificationto accommodate market conditions at the time of the actual sale of the Bonds and to the extent necessary to comply with federal and State law. (i) Formation and Authorization. In response to a petition from D.R. Horton, as the then owner of land within the District, the City Council formed the District on October 5,2021. On February 2,2022,D.R.Horton,acting in accordance with its rights under the Certificate of Purchase,was the sole voter and authorized at an election (the "Election") general obligation bonded indebtedness of the District in an amount not to exceed $400,000,000, and the District will have an estimated$399,965,000* of such authorized amount remaining after issuance of the Bonds. Such amount is subject to reduction based on the use of net premium on the general obligation bonds of the District. The District has not previously issued general obligation bonds, and, therefore, the entire $400,000,000 is authorized but unissued as of the date of this Report. In addition to the above- described voter authorization, the Bonds will be issued in accordance with the provisions of the District Development Agreement. (ii) Proposed Bond Sale. The estimated debt service schedule for the Bonds is attached in this section as Table One. It is anticipated that the Bonds will be sold and delivered in December 2024. The amount shown on the cover of this Report is a not-to-exceed amount;the actual aggregate principal amount of the Bonds issued may be lower. It is currently estimated that the Bonds will have a final maturity of July 15,2025 and be structured to achieve generally level annual debt service. The Bonds will not be rated by any rating agency. (iii) Estimated Sources and Uses of Funds. The proceeds of the Bonds will be applied by the District to finance the acquisition of all or a portion of the Public Infrastructure listed in Section Two of this Report. The estimated sources and uses of funds related to the sale of the Bonds is: SOURCES: Principal Amount of Bonds* $35,000.00 Total $35,000.00 USES*: Cost of Public Infrastructure $28,500.00 Estimated Costs of Issuance 6,500.00 Total $35,000.00 Preliminary subject to change. FIVE- 1 ESTIMATED COSTS OF ISSUANCE* Bond Counsel $2,500.00 Financial Advisor 2,500.00 Publication/CUSIP/Misc. 1,500.00 Total $6,500.00 * Preliminary, subject to change. (iv) District Tax Rate and Operation and Maintenance of Public Infrastructure. All Public Infrastructure that may be acquired by the District with any proceeds of the Bonds will be dedicated to and accepted by the City,or other governmental entities,as applicable.The obligations pertaining to the operation and maintenance of the Public Infrastructure have been negotiated between the City(or other governmental entities,as applicable),the District and the Developer and are set forth in the various development agreements among the parties. The administrative costs of the District and those costs associated with the operation and maintenance of the Public Infrastructure which are not the obligation of the City will be provided by several sources of funds: the levy of a $0.30 per $100 of net assessed limited property valuation ad valorem tax in the District(the"O&M Tax"),Homeowner's Association ("HOA")fees and Developer contributions,if any. The HOA is responsible for the operation and maintenance costs of landscaping for the roadways,trails and open space within the District. All homeowners are required to participate in the HOA. Monthly fees for the HOA are currently approximately $125 per single family residence. In addition to the O&M Tax, the District will levy an ad valorem property tax to provide for debt service on the bonds issued by the District,including the Bonds. Beginning in Fiscal.Year 2024-25, the District will cause to be levied a combined ad valorem property tax rate for each year the Bonds are outstanding in the amount of up to $4.15 per $100 of net assessed limited property valuation on all taxable property within the boundaries of the District. This tax rate includes a $3.85 levy for debt service and a $0.30 levy for the O&M Tax. This amount is a "target" tax rate. Any general obligations bonds are, by law, to be paid from a property tax which is unlimited as to rate or amount. At the $4.15 tax rate level, assuming the approximate average parcel full cash valuation of $340,000 and an approximate net assessed limited property valuation of$15,000, the District portion of a tax bill for a homeowner will be approximately $50 per month or $600 annually. For purposes of the estimates in the foregoing sentence,certain information regarding full cash valuation and limited property valuation was only available on a bulk vacant acreage basis from the Pina1 County Assessor, and therefore tax year 2024 tax bills for single family residential units within the District were reviewed as well as full cash valuation and limited property valuation data for comparable single family residential units within the adjacent Superstition Vistas Community Facilities District No. 1. The estimates and assumptions of value in the first sentence of this paragraph are subject to change. A.R.S. Section 32-2181 et seq. requires the disclosure of all property taxes to be paid by a homeowner in the Arizona Department of Real Estate Subdivision Public Report (the "Public Report"). Prior to each initial home sale by a FIVE-2 homebuilder, each homeowner must be supplied the Public Report, and the homebuyer must acknowledge by signature that they have read and accepted the Public Report.In addition,each homebuyer will receive a form detailing the existence of the District, the tax rate and its financial impact. Receipt of this form will be acknowledged in writing by the homebuyer, and a signed copy will be kept on file with the District Clerk. (v) Other District Information. Shown in the tables on the following pages is the District's overlapping general obligation bonded indebtedness including a breakdown of each overlapping jurisdiction's applicable general obligation bonded indebtedness, the portion of such indebtedness applicable to the District, a comparison of net assessed limited property values and tax rates per $100 of net assessed limited property value. FIVE- 3 SUMMARY OF FULL CASH AND NET LIMITED PROPERTY VALUES The net limited assessed property values and estimated net full cash value for the District is in the table below. Net Limited Estimated Fiscal Assessed Net Full Cash Year Property Value Value (a)(b) 2024/25 $494,957 $21,626,321 (a) Estimated Net Full Cash Value is the total estimated market value of the property within the District as determined by the Arizona Department of Revenue,Division of Property and Special Taxes,less the estimated exempt property within the District. (b) Certain data from the County was not available for Fiscal Year 2023/24, provided that real property had been patented by the Developer from ASLD and portions of the real property was subject to property taxes in Fiscal Year 2023/24. OVERLAPPING GENERAL OBLIGATION BONDED INDEBTEDNESS & OVERLAPPING NET ASSESSED LIMITED PROPERTY VALUES Portion Applicable to the District(a) Total Tax 2024/25 General Proportion Applicable Rates Per$100 Net Assessed Obligation to the District(a) Net Assessed Limited Bonded Appro)dmate Net Debt Limited Property Overlapping Jurisdiction Property Value Debt(b) Percent Amount Property Value(c) State of Arizona $ 88,425,611,337 None 0.00% None None Pinal County 3,772,917,916 None 0.07 None 3.7628 (d) Pinal County Community College District 3,772,91.7,916 $ 51,445,000 0.07 $ 5,598 1.8128 Central Arizona Water Conservation District 3,772,917,916 None 0.07 None 0.1400 (d) East Valley Institute of Technology 937,089,484 None 0.29 None 0.0500 Apache Junction Unified School District No.43 579,814,797 6,825,000 0.47 4,832 3.6895 Superstition Fire&Medical District 563,075,279 1,338,000 0.49 976 3.8050 City of Apache Junction 214,344,520 None 1.27 None 0.0000 Superstition Vistas Community Facilities District No.2(e) 410,526 35,000* 100.00 35,000* 4.1500 $ 46,405* (a) For Tax Year 2024,portions of the land within the boundaries of the District were still owned by ASLD and therefore not subject to property taxes and assessed values were not assigned to such portions of the District. If the assessed value within the District increases at a faster rate than the overlapping jurisdictions, the amount of overlapping debt allocated for payment within the District will increase. (b) Includes total stated principal amount of general obligation bonds outstanding. Does not include outstanding principal amounts of certificates of participation or revenue obligations outstanding for the jurisdictions listed above. Also does not include outstanding principal amounts of bonds of various assessment districts or areas as the obligations of these districts or areas are presently being paid from special assessments against property within the various districts or areas. Does not include authorized but unissued general obligation bonds of such jurisdictions which may be issued in the future. * Preliminary, subject to change. FIVE-4 The following includes the District and jurisdictions which overlap the District and have the indicated authorized but unissued general obligation bonded debt available for future issuance: General Obligation Bonds Overlapping Jurisdiction Authorized but Unissued Apache Junction Unified School District No. 43 None(1) The District(f) $399,965,000* (1) On May 28,2024,the Governing Board of Apache Junction Unified School District No.43 voted to call a special bond election to be held on November 5,2024,to authorize the sale and issuance of$20,000,000 of general obligation bonds of the district. Also does not include the obligation of the Central Arizona Water Conservation District ("CAWCD") to the United States Department of the Interior the ("Department of the Interior"), for repayment of certain capital costs for construction of the Central Arizona Project("CAP"), a major reclamation project that has been substantially completed by U.S. Department of the Interior. In April of 2003, the United States and CAWCD agreed to settle litigation over the amount of the construction cost repayment obligation, the amount of the respective obligations for payment of the operation, maintenance and replacement costs and the application of certain revenues and credits against such obligations and costs. Under the agreement, CAWCD's obligation for substantially all of the CAP features that have been constructed so far will be set at $1.646 billion, which amount assumes (but does not mandate) that the United States will acquire a total of 667,724 acre-feet of CAP water for federal purposes. The United States will complete unfinished CAP construction work related to the water supply system and regulatory storage stages of CAP at no additional cost to CAWCD. Of the $1.646 billion repayment obligation, 73% will be interest bearing and the remaining 27% will be non-interest bearing. These percentages have been fixed for the entire 50-year repayment period, which commenced October 1, 1993. CAWCD is a multi-county water conservation district having boundaries coterminous with the exterior boundaries of Arizona's Maricopa, Pima and Pinal. Counties. The obligation is evidenced by a master contract between CAWCD and the Department of the Interior. CAWCD was formed for the express purpose of paying administrative costs and expenses of the CAP and to assist in the repayment to the United States' portion of the CAP capital costs. Repayment will be made from a combination of power revenues, subcontract revenues (i.e., agreements with municipal, industrial and agricultural water users for delivery of CAP water) and a tax levy against all taxable property within CAWCD's boundaries. At the date of this Report, the tax levy is limited to 1.4 cents per $100 of Net Assessed Limited Property value, of which 14 cents is currently being levied. (See Arizona Revised Statutes, Sections 48-3715 and 48-3715.02) There can be no assurance that such levy limit will not be increased or removed at any time during the life of the contract. (c) The combined tax rate includes the tax rate for debt service payments and the tax rate for all other purposes such as maintenance and operation and capital outlay. (d) The County's tax rate includes the $0.1693 tax rate of the Pinal County Flood Control District, the$0.091.3 tax rate of the Pinal.County Free Library,the$0.0522 tax rate for the contribution to the Pinal County Fire District Assistance and the $3.45 tax rate of the County. The State does not currently levy ad valorem taxes. The net assessed limited property value of the County Flood Control.District does not include the personal property assessed valuation within the County. The *Preliminary, subject to change. FIVE- 5 net assessed limited property value for the CAWCD reflects the assessed valuation located within the County only. The County is mandated to levy a tax annually in support of fire districts in the County. All levies for library districts,hospital districts, fire districts,technology districts,water conservation districts and flood control districts are levied on the net full cash assessed value. (e) Includes the Bonds. Does not include previously issued special assessment bonds or general obligation bonds expected to be issued by the District in the future. The District levied the O&M Tax and property taxes to pay anticipated general obligation bond debt service and to collect revenues from the portion of the land within the District boundaries patented by the Developer and no longer owned by ASLD. (f) Reflects reduction in authorization approved at Election caused by issuance of the Bonds. Source: Pinal County Assessor Department, the various entities, the Pinal County Finance Department and Property Tax Rates and Assessed Values, Arizona Tax Research Association. TABLE ONE ESTIMATED DEBT SERVICE SCHEDULE* Total Annual Period Ending Debt Service (July 15) Principal Interest(b) Requirements 2025 $ 35,000 $ 1,343 $ 36,343 $ 35,000 (a) Interest column reflects total interest payments for each fiscal year;interest will be paid on July 15,2025*. Interest is estimated at 6.25%. * Preliminary, subject to change. FIVE- 6 BROOtIzW.'% SLD 8500 LLC, a Delaware limited mpany By: Name: G J.'T"vras Title: vewsmcmv By: ��Z - Name: W. flea Me ybo#z4 Title: L [Feasibility Report Signature Page- Superstition Vistas CFD No.2 General Obligation Bonds, Taxable Series 2024] APPENDIX A LEGAL DESCRIPTION FOR SUPERSTITION VISTAS COMMUNITY FACILITIES DISTRICT NO. 2 LEGAL DESCRIPTION CFD DESCRIPTION THAT PORTION OF SECTION 17, SECTION 20, THE SOUTH HALF OF SECTION 18 AND THE NORTH HALF OF SECTION 19, TOWNSHIP 1 SOUTH, RANGE 8 EAST OF THE GILA AND SALT RIVER MERIDIAN, PINAL COUNTY; ARIZONA, MORE PARTICULARLY DESCRIBED AS FOLLOWS: BEGINNING AT A PINAL COUNTY PUBLIC WORKS DEPARTMENT BRASS CAP IN HAND HOLE MARKING THE WEST QUARTER CORNER OF SAID SECTION 20, FROM WHICH A PINAL COUNTY PUBLIC WORKS DEPARTMENT BRASS CAP IN HAND HOLE MARKING THE NORTHWEST CORNER THEREOF BEARS NORTH 0°17'35" WEST, A DISTANCE OF 264112 FEET; THENCE NORTH 0°17'35 WEST, ALONG THE WEST LINE OF THE NORTHWEST QUARTER OF SAID SECTION 20, A DISTANCE OF 2641.12 FEET TO SAID NORTHWEST CORNER; THENCE SOUTH 89°46'31" WEST, ALONG THE SOUTH LINE OF SECTION 18, A DISTANCE OF 500.00 FEET TO THE BEGINNING OF A CURVE TO THE LEFT HAVING A RADIUS OF 2500.00 FEET, A CENTRAL ANGLE OF 22°55'06", AND A CHORD THAT BEARS SOUTH 78°18'58" WEST, 993.35 FEET; ry THENCE ALONG SAID CURVE, A DISTANCE OF 1000.00 FEET; THENCE SOUTH 66'51'25" WEST, A DISTANCE OF 540.51 FEET TO THE BEGINNING OF A CURVE TO THE ry RIGHT HAVING A RADIUS OF 3000.00 FEET, A CENTRAL ANGLE OF 30`39'58", AND A CHORD THAT BEARS SOUTH 82°11'24" WEST, 1586.58 FEET; THENCE ALONG SAID CURVE, A DISTANCE OF 160568 FEET; THENCE NORTH 82°28'36" WEST, A DISTANCE OF 583.29 FEET; E THENCE NORTH 53°29'13" EAST, A DISTANCE OF 910.07 FEET TO A POINT ON THE SOUTH LINE OF SAID B SECTION 18 w THENCE NORTH 53°29'26" EAST; A DISTANCE OF 4200.33 FEET TO A POINT ON THE WEST LINE OF THE SOUTHWEST QUARTER OF SECTION 17; THENCE NORTH 0°17'10" WEST, ALONG SAID WEST LINE; A DISTANCE OF 155.64 FEET TO THE WEST QUARTER CORNER OF SAID SECTION 17 A THENCE NORTH 0'13'51" WEST, ALONG THE WEST LINE OF THE NORTHWEST QUARTER OF SAID SECTION 17, A DISTANCE OF 2639.88 FEET TO NORTHWEST CORNER THEREOF; y a THENCE NORTH 89'45'04" EAST, ALONG THE NORTH LINE OF THE NORTHWEST QUARTER OF SAID SECTION 17, A DISTANCE OF 2642.33 FEET TO THE NORTH QUARTER CORNER THEREOF; THENCE SOUTH 0°16'32" EAST, A DISTANCE OF 854.89 FEET; onrc s ° THENCE NORTH 53°27'53" EAST, A DISTANCE OF 1443.33 FEET f' TO A POINT ON THE NORTH LINE OF THE NORTHEAST QUARTER 388E RONcvic E. OF SAID SECTION 17; DORS fe8 f 25f 2424f - THENCE NORTH 89°47'06" EAST; ALONG SAID NORTH LINE, A DISTANCE OF 1480.06 FEET TO THE NORTHEAST CORNER Rlz N fj OF SAID SECTION 17; es THENCE SOUTH RTER7" EAST„ ALONG THE EAST LINE OF SAID NORTHEAST QUARTER, A DISTANCE OF 2641.2E FEET TO THE.EAST QUARTER CORNER OF SAID SECTION 17; 4DSUNRISE ENGINEERING 2045 SOUTH VINEYARD,SUITE 101 MESA,ARIZONA 85210 TEL 480.758.8600 SHEET 1 OF 5 www.sti�nrts�etsgcom APPENDIX A- 1 CFD DESCRIPTION THENCE SOUTH 0'17'38" EAST, ALONG THE EAST LINE OF THE SOUTHEAST QUARTER OF SAID SECTION 17, A DISTANCE OF 2641.38 FEET TO THE SOUTHEAST CORNER THEREOF; THENCE SOUTH 0`1625" EAST,;:ALONG THE EAST LINE OF THE NORTHEAST QUARTER OF SECTION 20, A DISTANCE OF 2640.89 FEET TO THE EAST QUARTER CORNER THEREOF; THENCE SOUTH 0`15'30" EAST, ALONG THE EAST LINE OF THE SOUTHEAST QUARTER OF SAID SECTION 20, A DISTANCE OF 2641.53 FEET TO THE SOUTHEAST CORNER OF SAID SECTION 20; THENCE SOUTH 89'46'59" WEST, ALONG THE SOUTH LINE OF SAID SOUTHEAST QUARTER, A DISTANCE OF 2643.37 FEET TO THE SOUTH QUARTER CORNER OF SAID SECTION 20; THENCE SOUTH 89'48'18" WEST, ALONG THE SOUTH LINE OF THE SOUTHWEST QUARTER OF SAID SECTION 20; A DISTANCE OF 2643.78 FEET TO THE SOUTHWEST CORNER THEREOF; THENCE NORTH 0'17'01 WEST, ALONG THE WEST LINE OF SAID SOUTHWEST QUARTER, A DISTANCE OF 2640.28 FEET TO THE POINT OF BEGINNING. N EXCEPT PARCEL "A" OF THE FINAL PLAT FOR PHASE 5 COMMERCIAL, RECORDED' ON FEE NUMBER 2024-061060, PINAL COUNTY RECORDS; EXCEPT PARCEL "A" OF THE FINAL PLAT FOR PHASE 3 COMMERCIAL, RECORDED' ON FEE NUMBER 2024-061061, FINAL COUNTY RECORDS; AND EXCEPT PARCEL "11, 12, 13 & 14" OF THE FINAL PLAT FOR BLOSSOM ROCK PHASE 1, RECORDED ON FEE NUMBER 2022-084918, PINAL COUNTY RECORDS. CONTAINS 57137910 SQUARE FEET OR 1311,7059 ACRES OF LAND, MORE OR LESS. SEE ATTACHED EXHIBIT "A" BY REFERENCE MADE A PART HERETO. S° 38862 RQIIKJiE i-; tf{f DORS \ nod E SUNRISE ENGINEERING 2045 SOUTH VINEYARD,..SUITE:101 MESA,ARIZONA 85210 TEL 4a0.768:8600 SHEET 2 OF 5 www.sunrise-engcom APPENDIX A-2 EXHIBIT"A" SEA.--- NORTHEAST CORNER f cry ca= o, SEC 17 T1S, R8E G&SRM a 8 2 FOUND 3" BRASS CAP FLUSH RONN�E E. } L STAMPED "LS 35306" DOR` zs 3oza; NORTHWEST CORNER: �a��.f� SEC 17 T1S, R8E G&SRM NORTHEAST CORNER FOUND PINAL COUNTY SEC 17 T1S, R8E G&SRM — HIGHWAY DEPARTMENT FOUND GLO 1914 BRASS CAP— BRASS CAP _ L8 L11 ELLIOT AVENUE {,, EAST 1 f4 CORNER (ALIGNMENT) SEC 17 T1 S, R8E G&SRM J WEST QUARTER CORNER FOUND 2" GLO 1914 SEC 17 T1S, R8E G&SRM BRASS CAP FLUSH FOUND BRASS CAP IN HAND HOLE SEC 18 T1S R8E L6 .. SEC 17 T1S R8E SOUTHEAST CORNER SOUTHWEST CORNER SEC 17 SEC 17 SOUTHEAST CORNER SEC 18 NORTHEAST CORNER NORTHWEST CORNER SEC 20 "2 SEC 20' T1S, R8E G&SRM —' T1S, R8E G&SRM FOUND PINAL COUNTY PWQ FOUND GLO 1914 BRASS CAP IN HAND HOLE j BRASS CAP FLUSH L4� C� L1 WARNER ROAD W E3 C2 N (ALIGNMENT) Z EAST 1 f4 CORNER SEC 20 m o C14 J T1S, R8E G&SRM FOUND GLO 1914 D BRASS CAP FLUSH s ..... SEC 19 T1S R8E SEC 20 T1S R8E 4 T POB w SOUTHEAST CORNER WEST QUARTER CORNER z SEC 20 T1S, R8E G&SRM O 0 J SEC 20 FOUND PINAL COUNTY PWD = T1S, R8E G&SRM FOUND GLO 1914 BRASS CAP IN HAND HOLE BRASS CAP FLUSH M RAY AVENUE L17 L16 4 SOUTH 1/4 CORNER SOUTHWEST CORNER SEC 20 SEC 20 T1S, R8E G&SRM T1S, R8E G&SRM FOUND PINAL COUNTY HIGHWAY DEPARTMENT BRASS CAP IN HAND HOLE FOUND' 2 1/2 GLO BRASS CAP SUNRISE ENGINEERING NOT TO SCALE. 2045 SOUTH VINEYARD,SUITE.101 MESA,ARIZONA 85210 TEL 480,768,8600 SHEET 3 OF 5 www.nnrige-eng.com APPENDIX A-3 EXHIBIT "A" L8 Lll LLIOT AVENUE (ALIGNMENT) SEC 18 TlS R8E SEC 17 TlS R8E L6 —Z L4 Cl Ll WARNER RdPb W L3 C2 m (ALIGNMENT) z C) r -j In 0 Q 0 W > Of s .............. SEC 19 TlS R8E Z SEC 20 Tl S R8E a 0 0 L2 0 RAY AVENUE L17 L16 EXCEPTION PARCEL "A", PHASE 5 COMMERCIAL LIAND fo�l FEE 2024-061060, PCR to 31811162 EXCEPTION RoNt�JE E. NOT TO SCALE t\'Q PARCEL "A", PHASE 3 COMMERCIAL DORS FEE 2024-061061, PCR 25 2024, EXCEPTION d. SUNRISE PARCEL 11, 12, 13 & 14 i W r-e V BLOSSOM ROCK PHASE 1 5 3 ENGINEERING FEE 2022-084918, PCR 2045 SOUTH VINEYARD,SUITE 101 MESA ARIZONA 85210 TEL 1�80.768;8600 SHEET 4 OF 5 wwwsunrise-eng.com— APPENDIX A-4 EXHIBIT"A" CURVE TABLE CURVE DELTA RADIUS LENGTH CHORD BEARING CHORD DIST Cl 22'55'06 2500,00 1000.00' S78'18'58"W 993.35' C2 30'39'58" 3000.00 1605.68' S82'11'24"W 1586.58' LINE TABLE LINE # DIRECTION LENGTH LEGEND L1 S89'46'31''W 500.00' SUBJECT BOUNDARY N — PLSS SECTION LINE L2 S66'51'25"W 540.51' PLSS SUB SECTION LINE L3 N82'28'36"W 583.29' L4 N53'29'13"E 910.07' L5 N53'29'26"E 4200.33' ABBREVIATIONS L6 NO'17'10"W 155.64' APN ASSESSOR PARCEL NUMBER E EAST L7 NO'13'51"W 2639.88' GLO GENERAL LAND OFFICE G&SRM GILA & SALT RIVER MERIDIAN L8 N89°45'04"E 2642.33' LS LAND SURVEYOR N NORTH L9 SO°16'32nE 854.89' PCR PINAL COUNTY RECORDS PLSS PUBLIC LAND SURVEY SYSTEM T L10 N5327'53"E 1443.33' POB POINT OF BEGINNING L11 N8947'06"E 1480.06' POC POINT OF COMMENCEMENT PWD PUBLIC WORKS DEPARTMENT L12 S0°17'17"E 2641.26' R RANGE S SOUTH T TOWNSHIP tp�°L L13 SO'17'38"E 2641.38' /�� ✓��F�eAr �,A W WEST j G4g �o 4 L14 SO'16'25"E 2640.89' 38862 RONNIE E. L15 SO'15'30"E 2641,53' i DORs t nd1 L16 S89°46'59''W 2643.37' �Af�/ L17 S89'48'18"W 2643.78' L18 NQ'17'01"W 1 2640.28' �'� SUNRISE iE {� EN�GJ'INEERIING 2045 SOUTH.VINEYARD,..SUITE.101 MESA,ARIZONA 85210 TEL 480.768,8600 SHEET 5 OF 5 Www.nnrige-eng.com APPENDIX A- 5 City of Apache Junction, Arizona 300 E Superstition Boulevard Agenda Item Cover Sheet Apache Junction,AZ 85119 Agenda Item No. 3. File ID: 24-924 Sponsor: Agenda Date: 11/19/2024 Index: In Control: Superstition Vistas Community Facilit Presentation, discussion, and consideration of Resolution No. 2024-008 SVCFD No. 2, a resolution of the district board of Superstition Vistas Community Facilities District No. 2 approving the prior notice of a public hearing with respect to a feasibility report relating to the acquisition and financing of certain improvements benefitting Superstition Vistas Community Facilities District No. 2; approving the feasibility report; authorizing the issuance of the District's General Obligation Bonds, Taxable Series 2024; prescribing the terms of such bonds; delegating the determination of certain terms to the Chairman, District Manager and District Treasurer; levying an ad valorem tax on taxable property within the District; and authorizing the taking of other actions securing the payment of and relating to the bonds. City of Apache Junction,Arizona Pagel Printed on 1111412024 RESOLUTION NO. 2024-008 SVCFD NO. 2 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE SOPERSTITION VISTAS COMMUNITY FACILITIES DISTRICT NO. 2 RATIFYING THE GIVING OF NOTICE OF A PUBLIC HEARING WITH RESPECT TO A FEASIBILITY REPORT RELATING TO THE ACQUISITION AND FINANCING OF CERTAIN IMPROVEMENTS BENEFITTING THE DISTRICT; APPROVING THE FEASIBILITY REPORT; AUTHORIZING THE ISSUANCE OF ITS GENERAL OBLIGATION BONDS, TAXABLE SERIES 2024; PRESCRIBING CERTAIN TERMS AND CONDITIONS OF SUCH BONDS INCLUDING MAKING CERTAIN FINDINGS, CERTIFICATIONS AND COVENANTS WITH RESPECT TO SUCH BONDS; AWARDING SUCH BONDS TO THE PURCHASER THEREOF; DELEGATING THE DETERMINATION OF CERTAIN TERMS OF SUCH BONDS AND MATTERS RELATED THERETO 'TO EACH OF THE CHAIRMAN, DISTRICT MANAGER AND DISTRICT TREASURER; LEVYING AN AD VALOREM TAX ON TAXABLE PROPERTY IN THE DISTRICT; AND AUTHORIZING THE TAKING OF OTHER ACTIONS SECURING THE PAYMENT OF AND RELATING TO THE BONDS, BE IT RESOLVED BY mE, BOARD OF DIRECTORS OF THE SUPERSTITION VISTAS COMMUNITY FACILITIES DI,3TRICT NO. 2, AS FOLLOWS: SECTION I FINDINGS A. Pursuant to Title 48, Chapter 4, Article 6, Arizona Revised Statutes, as amended (the "Enabling Act") , and a resolution adopted by the District Board, an eiection was ordered and calLed to submit to the qualified electors of the District or to those persons who were otherwise qualified to vote on February 2, 2022 (the "Election") the question of authorizing the District Board to ,issue general obligation bonds of the District to provide moneys Tsar certain public infrastructure purposes consistent wit-h the General Plan of the District . B. The District Board canvassed the Election and resolved that such general obligation bonds were authorized to be issued. C; Pursuant to the Enabling Act, the District Board has caused the preparation of a feasibility report dated November 19, 2024 (the "Feasibility Rej-)ort:") , of the feasibility and benefits of one or more projects relating to certain public infrastruct",ure and public infrastructure purposes (each as defined in the Enabling Act ) provided for in the Genel-al Plan of the District and to be financed with proceeds of the sale of a portion of the Distric:t' s general. obligation bonds as described in Exhibit A attached hereto RESOLUTION NO. 2024-008 SVCFD NO. 2 PAGE 1 OF 19 (collectively, the "Projec-t") , such Feasibility Report having been prepared by or on behalf of the District and including as description of certain public infrastructure and public infrastructure purposes to be acquired and other information useful to understand the Project, a map showing, in general., the location of the Project, the costs of constructing the Project, an estimate of the cost to acquire, operate and maintain the Project, as map or description of the area to be benefited by the Project, and as plan and expected method for financing the Project, including the nature and timing of the issuance of bonds, if any. A public hearing on the Feasibility Report was held on the date of adoption of this resolution, but prior thereto (hereinafter referred to as the "Rep)ort Hearing") , after publication of- notice not less than ten (10) days in advance of the date of tl-ie Report Hearing a--is provided by law (hereinafter referred to as the "Notic-e") . In accordance with A.R. S. § 48-715, the Clerk of the District (the "District Clerk") provided the Feasibility Report and the Notice to the governing body of the City of Apache Junction, Arizona (the "City") . D. Pursuant to A. R. S. § 48-715, as amended, this District Board hereby identifies the public infrastructure and pUbliC infrastructure purposes of the Project, the areas benefited, the expected method of financing, it the nature and timing of the issuance of the Bonds, and the system of providing revenues to operate and maintain the Project, all as identified and provided for in the Feasibility Report, for any and all purposes of the Enabling Act . Any portion of tf"ie costs of the Project not financed by the proceeds of the Bonds shall remain eligible to be financed through the sale of future bon(Js of the District should this District Board choose in its sole and absolute discretion to issue any future bonds . As applicable, this resolution constitutes as resolution of intent as described in A.R. S, § 48-701 . 14 . E. The District Board has determined, exercising its sole and absolute discretion, to authorize the issuance of the District' s General Obligation Bonds, Taxable Series 2024 ( the "Bonds") , to provide funds for all or a portion of the ptiblic infrastructure and public infrastructure purposes provided for in the Enabling Act, the Amended and Restated District Development, Financing Participation, Waiver and Intergovernmental Agreement for Superstition Vistas Communit,y Facilities District No. 2, by and among the City, the District , Brookfield Homes Holdings LLC ("Brookfield Horner""), a n cl Brookfield ASLD 8500 LLC (the "'Developer") dated as of October 10, 2022 the "A eras Development Agreement,"j as amended by the First Amendirient to RESOLUTION NO. 2024-008 SVCFD NO. 2 PAGE 2 OF 19 Amended and Restated District Development, Financing Participation, Waiver and Intergovernmental Agreement by and among the City, the District, Brookfield Paz es and the Developer, dcited as of January 25, 2024 (the "First Amendment" and the Amended Development Agreement, as amended by the First Ainendment, is hereinafter referred to as the "Development Agreement") , and the Feasibility Report, to the extent authorized in the Election. Fl. Upon issuance of the Bonds, the District Board shall (1) enter in its minutes a record of the Bonds sold and their numbers and dates and (2) levy and cause an ad vaiorem tax to be collected, at the same time and in the same manTier as other taxes are levied and collected on all t�:,axable property in the boundaries of the District sufficient, together with moneys frorn the sources described herein, to pay Debt. Service (as such term is defined in the Enabling Act) when due. G. Pursuant to the Enabling Act, the District may servc> as the bond registrar, paying agent and transfer agent for the Bonds, or may enter into an agreement with a financiai institution to serve as the bond registrar, paying agent and transfer agent for the Bonds (in either case of the District or a financial institution serving in such capacity, referred to herein as the "Registrar" arid the "Paying, Agent" as the case may be) . The .farm of the agreement with a financial institution (the "Paying Agent lRegistrar Contract") will include customary terms pertaining to the issuance, registration, transfer, and payment of the Bonds and be similar to agreements for such services previously entered into by the District in connection with other bond transactions . The District Board has determined by this resolution to authorize the issuance of the Bonds and, in order to provide terms for', to secure, and to provide for authentication and delivery of the Bonds by the Registrar, for the District to serve as Registrar or, alternatively, to authorize the execution and delivery of the Registrar/Paying Agent Contract . Ii. The Bonds may be soil directly to the Developer, or alternatively the Bonds may be sold to at financial institution or other investors. Piper Sandler & Co. (the "Financial Advisor") shail, assist the District to deteratine the best method of sale of the Bonds. To the extent the Bonds are not sold to the Developer, the District may enter into a placement agent agreement or bond purchase agreement similar to what the District has entered into previously, with customary terms pertaining to the purchase of the Bonds. The District may require the Developer or any other purchaser of the Bonds to execute and deliver to the District a RESOLUTION NO. 2024-008 SVCFD NO. 2 PAGE 3 OF 19 purchaser letter or investor letter customary for a direct sale or placement transaction. Documents entered into by the District in connection with the issuance and sale of the Bonds are referred to herein as the "Bond Documents. " I . The District Board hereby fiT-ids and determines that (1) the amount of indebtedness evidenced by the Bonds does not exceed the estimated cost of the public infrastructure improvements plus a11. costs connected with the public infrastructure purposes and issuance and sale of the Bonds to be financed therewith as indicated in the Feasibility Report and (2) the total aggregate outstanding amount of the general obligation bonds of the District, including the Bonds, does not exceed sixty percent (60%) of the aggregate of the estimated market value of the real, property and improvements in the District after the public infrastructure of the District is completed plus the value of the public infrastructure owned or to be acquired by the District with the proceeds of the Bonds, all as provided in the Enabling Act . SECTION II APPROVAL OF' NOTICE AND . FEASIBILITY REPORT A. The form of the Notice attached hereto and marked as the Exhibit B is hereby ratified in all respects as well as the publication of the Notice and mailing of the Feasibility Report to the governing body of the City. B. The preparation of the Feasibility Report is hereby ratified and confirined. (Upon completion of a draft of the Feasibility Report , the Feasibility Report, marked in a conspicuous fashion "DRAFT, "' was submitted to the District Board and the Developer for their review and comment. ) C. After review of the Feasibility Report and based on the Report Hearing and the mailing of the Feasibility Report to the governing body of the City, the Feasibility Report is hereby approved in the form submitted to the District Board, as required by A.R. S. § 48-715, and subje(.-t. to the provisions set forth in the Feasibility Report and the Development Agreement, all reasonable actions shall be taken as may be necessary to cause the results contemplated by and set forth in the Feasibility Report , including particularly the acquisition of the Project for the benefit of the areas described in the Feasibility Report and the consummation of the expected method of financing, and an appropriate system of providing revenues in the Feasibility Report, The Project will result in a beneficial use to land within the geographical limits RESOLUT'ION NO, 2024-008 SVCI.,'D 'NO. 2 PAGE 4 01:, 1.9 of the District . Such use is principally to such and and, in any case, at a minimum, is proportional . (Based on review of the Feasibility Report and the Report Hearing, the District hereby conclusively establishes that the Project will result in such use. ) SEC;` IONAPPROVAL OF ISSUANCE AND SALE OF BONDS A. The District Board hereby declares its intent to proceed with the financing of the ProJect in substantially the manner presented in the Feasibility Report . The Bonds are hereby authorized to be issued as a series of general obligation bonds of the District to be designated "Sul-wear stition Vistas Community Facilities District No. 2 General Obligation Bonds, Taxable Series 2024" in. an aggregate principal amount of not to exceed $35, 000 . The series designation of the Bonds may change if I.-he Bonds are sold in a later calendar year. Te n h h Bods sall be issued as a single bond and registered in the name of the entity with which the Bonds are placed (hereinafter referred to as the "Purchaser") and shall bear interest from their date to the maturity of the Bonds, payable semiannually on each January 15 and July 15 (each such date shall be referred to as an "Interest Payinent Date") during the term of the Bonds, commencing July 15, 2025# The interest rate on the Bonds shall not exceed eight percent (8 . 00%) , and the final maturity of t t r he Bonds shall be no lae than July 15, 2025 (or such later date as that is not greater than twenty-five (25) years frorn the issuance date of the Bonds) . B. The principal of and premium, if any, on the Bonds shall be payable upon surrender thereof cat the principal corporate trust office of the Paying Agent (to the extent the District is the Paying Agent, the Bonds shall be payable upon surrender at the offices of the District) . Interest due on the Bonds on each Interest Payment Date shall be payable by check mailed, when due, to the persons (the "Owners") in whose names the Bonds are registered by the Registrar at the ciose of business on the last day of the calendar month (other than a Saturday, a Sunday, or a legal holiday or equivalent (other than a moratorium) for banking institutions generally in the place of payment or in the city where the principal corporate trust office of the Paying Agent is loc,:,Ited (a "'Business Day") ) next preceding the applicable Interest Payment Date, or, if such day is not a Business Day, the previous Business Day (the "Record Date"") . C. In the event that interest is not paid on an interest Payment Date, the Registrar shall establish a specia.], record date for the payment of such interest, if and when funds for the payment RESOLUTION NO. 2024-008 SVCFD O. 2 PAGE 5 OF 19 of such interest have been re(:-eived. Notice of the speciai record date and of the scheduled payment date of the past due interest will be sent at least ten ( 10) days prior to the special record date, to the address of each Owner appearing on the Register, (as defined herein D. The Bonds shall have such additionai terms sand provisions as are set forth in the form of Bond attached hereto as E,xhibit C, which is attached hereto and made a part of this resolution . E. Neither the full faith and credit nor the generai taxing power of the City, the State of Arizona or any political subdivision thereof (other than the District) is pledged to the payment of the Bonds. The Bonds will be obligations of the District only. None of the City, the State of Arizona, or any political subdivision thereof (other than the District) will, have any obligation with respect, to Debt Service (as defined in the Enabling Act) for the Bonds . Fl. The District Manager and the District Treasurer are each hereby authorized to determine the method of saie of the Bonds to the Purchaser, and may consult with the Financial Advisor in connection with such determination. SECTION IV PRIOR REDEMPTION A 2ptjL,)na1_Rede-mption the B(,--)nds shall not be scab ec°tw to call for redemption prior to their stated maturity dates. B. Mandatory Redemption The Bonds shall not, be subject to mandatory redemption prior to their stated maturity dates . SECTION V FORM OF-BONDS The Bonds shall. be in substantially the or of Exhibit C, attached hereto and incorporated by reference herein, with such necessary and appropriate omissions, insertions and variations as are permitted or required hereby and are approved by those officers executing the Bonds and execution thereof by such officers shall constitute conclusive evidence of such approval . The Bonds may have notations, legends or endorsements required by law, securities exchange, rule or usage. Each Bond shall be dat-ed the date of its authentication and registration. RESOLUTION NO. 2024-008 SVCFD NO. 2 PAGE 6 OF 19 SEC,rION VI EXECUTION OF BONDS AND OTHER DOCUMENTS A. Execution of Bonds The Bonds shall be executed for and on behalf of the District by its Chairman and attested by the District Clerk by their manual or facsimile signatures. If the signatures are affixed or imprinted by facsimile, the Chairman and District Clerk shall execute a certificate adopting as their signatures the facsimile signatures appearing on the Bonds . If an officer whose signature is on a Bond no longer holds that office at the time the and is authenticated and registered, the Bond shall nevertheless be valid. A Bond shall riot be valid or binding until authenticated by the Trtanual signature of an authorized officer of the Registrar (which may be the signature of the District TreaSUrer, or tier designee, if the District is r-he Registrar) . The signature shall. be conclusive evidence that the Bond has been authenticated and issued under this resolution. B. Other Documents The District Board hereby approves the form and orders and directs the execution of the Bond Documents, each in substantially the fc')rm presented to the District Board. The Chairman, any member of the District Board, the District Manager or the District Treasurer are each hereby authorized and directed to determine and approve the actual dated date, maturity dates and amounts, interest rates, redemption provisions, and the purchase price to be paid by the Purchaser, and to execute and deliver the Bond Documents in substantially the form presented to the District Board with such necessary and appropriate ornissions, insertions and variations as are perinitted or required hereby and are approved by those officers executing such agreements on behalf of the District . Execution of the Bond Documents by such officers shall be conclusive evidence of such approval . The District C."Ierk is authorized and directed to attest such signatures. Where applicable, any of the foregoing officers may affix their signatures by manual, mechanical, or photographic means. SECTION VII MUTILATED, LOST OR DESTROYED BONDS In case any Bond becomes mutilated or destroyed or lost, the Registrar shall cause to be executed and delivered a new Bond of like date and tenor in exchange and siibstitution for and upon the cancellation of such mutilated Bond or in lieu of and in substitution for such Bond destroyed or lost, upon the Owner' s paying the reasonable expenses and charges of the District ward, as applicable, the Registrar, in connection therewith arid, in the case of the Bond destroyed or lost, filing with the District and, RESOLUTION NO. 2024-008 SVCFD NO. 2 PAGE 7 OF' 19 as af,)plicable, the Registrar, by the Owner evidence satisfactory to the District and, as applicable, the Registrar, that such Bond was destroyed or lost, and furnishing the District arid, as applicable, the Registrar', with a sufficient indemnity bond pursuant to A.R. S. § 47-8405, as amended. SECTION VIII ACCEPTANCE OF PROPOSAL The Bonds are hereby ordered to be sold to the Purchas(,,:>r. The actual terms of the Bonds shall be reviewed and approved by the Chairman, any member of the District Board, the District Manager or 'the District Treasurer (which approval shall be deemed conclusive by the execiftion and delivery of the Bonds by the Chairman, or Vice Chairman of the District and and attested by the District Clerk. The District Treasurer is hereby autf°iorized and directed to catise the Bonds to be delivered to or upon the order of the Purchaser upon receipt of payment therefor and satisfaction of the other conditions for delivery thereof in accordance with the terms of the sale (and to direct how such proceeds shall be deposited among the funds described in Section IX) . SECTION IX FUNDS AND ACCOUNTS A. The District Treasurer shall create the following funds and accounts which shall be held separate and apart and used only as provided herein: (i) Borid Fund, which shall include: (a) Principal Account; (b) Interest Account; and (C) Redemption Account . (ii) Acquisition Fund. (iii) Issuance and Expenses Fund. B. The money deposited to the various funds and aci-ou 'it s created hereby, together wd-th a 11 investments thereof and investment income therefrom, shall, be held in trust by the District and applied solely as herein provided. RESOLUTION NO. 2024-008 SVCF'D NO. 2 PAGE 8 OF 19 SECTION X DEPOSITS TO AND APPLICATION OF BOND FUND A. The District shall. deposil: or all cause, at the applicable times set forth below, to be immediately deposited from the tax levy described. in Section DIX hereof to the Bond Fund to the credit of the applicable accounts : (i) to the F.'rincipal and Interest Accounts, as applicable, on each January 1.4 and July 14 or, if either such data is not a Business Da.y, then the first Business Day irrffnediately preceding such date, all camounts collected by or remitted to the District from the collections of taxes levied pursuant, to this resolution; (ii) to the Principal and Interest Accounts, amounts transferred froin the Acquisition Fund and the Issuance arid Expenses and to the extent hereinafter provided; arid (iii) such other funds as the District shaii, from tirne to time, at its option deem advisable. B. The Principal , Interest and Redemption Accounts of the Bond Fund shall. be applied solely to pay principal of, interest on and the redemption price with respect to the Bonds, respectively. SECTION XI ACQUISITION FUND The District shall deposit to the A(:-quisitiori Fund Bond proceeds in the amount as determined by the District Treasurer to be availabie for eligible Project costs at the time of issuance of the Bonds. Amounts on deposit in the Acquisition Fund shall be applied by it'he District in the amounts and to the persons approved by the District to pay all items oE expense directly or indirectly relating to the cost of the Project and as described in the Feasibility Report upon acceptance of the Project by the District or the City pursuant to Article IV of the Development Agreement . Notwithstanding anything contained in this Section XI, any amounts remaining in the Acquisition Fund after six (6) months from the issuanc:e date of the BondS shall be transferred to the Principal and Interest Accounts of the Bond Fund and applied to pay the next scheduled Debt Service payment on the Bonds. RESOLUTION NO. 2024-008 SVCF'D NO. 2 PAGE 9 OF 19 SECTION XII ISSUANCE AND EXPENSES FUND The money deposited to the Issuance and Expenses Fund, together with all investments thereof arid investment income< therefrom, shall be held in trust by the District . The District shail deposit to the Issuance and Expenses Fund Bond proceeds in the amount determined by the District Treasurer at the time of issuance of the Bonds. Upon a request for disbursement, amounts on deposit in the Issuance and Expenses Fund shall be applied to pay all costs of the issuance and sale of the Bonds identified in a request signed by any of the Chairman of the District Board, the District Manager or the District Treasurer. After six (6) months from the issuance date of the Bonds, the Distri(st shall, -transfer any moneys in the Issuance and Expenses Fund to the Principal and Interest Accounts of the Bond Fund and apply such transferred moneys to pay the next scheduled Debt Service payment on the Bonds . SECTION XIII INVESTMENT OF AND SECURITY FOR FUNDS Money held for the credit of any fund or account herein created shall be invested pursuant. to A.R. S. § 35-323 . SECTION XIV REGISTRAR AND PAYING AGENT As applicable if the District is not serving as the Registrar, pursuant to the Registrar/Paying Agent Contract, the Registrar will maintain an office or agency where Bonds may be presented for registration of transfer and the Paying Agent will. maintain an office or agency where Bonds may be presented for payment . Tile District may appoint one or more co-registrars or one or more additional, paying agents . 'I'he Registrar and the Paying Agent may make reasonable rules and set reasonable requirements for -their respective functions wil:.h respect. to the Owners of the Bonds. The District may change the Registrar or the Paying Agent without notice to or consent of the Owners of the Bonds and the District may act in any such capacity. Each Paying Agent will be required to agree in writing that the amounts which are segregated by the District or deposited with the Paying Agent to pay the principal. of or interest on any Bonds becoming due on any due date shall, be held in trust for the benefit of the Owners of such Bonds . Amounts so segregated or deposited and held in trust shall constitute a separate trust fund for the benefit of the Owners of such Bonds entitled to such principal or interest, as the case may be. Amounts held by the District or the RESOLUTION NO. 2024-008 SVCFD NO. 2 PAGE 10 OF 19 Paying Agent for the payment of the principal of (and premium, if any) or interest on the Bonds need not be segregated from rather funds, except to the extent, required by law. The District may at any time direct any Paying Agent to pay to the District all money held by such Paying Agent, such amounts to be held by the District upon the same trusts as those> upon which such money was held by such Paying Agent, and, upon such payment by any Paying Agent to the District, such Paying Agent shall be released from all further liability with respect to such money. The Registrar may appoint an authenticating agent acceptable to the District to authenticate Bonds. An authenticating agent may authentic",ate Bonds whenever the Registrar may do so. Each reference herein to authentication by the Registrar includes authentication by an authenticating, agent acting on behalf and in the name of the Registrar and subject to the Registrar' s direction. As stated in Section VI, to the extent the District is the Registrar, the District Treasurer shall act as the authenticating agent and may authenticate the Bonds . The Registrar shall keep a register of the Bonds (the "Register") , the registered Owners of the Bonds and transfer of the Bonds. When Bonds are presented to the Registrar or a co-registrar with a request to register transfer, the Registrar will register the transfer on the Register if its requirements for transfer are met and will authenticate and deliver one or more Bonds registered in the name of the transferee of the same principal amount, maturity and rate of interest as the surrendered Bonds. Bonds presented to the Registrar for transfer after, the close of business on the Record Date and before the close of business on the next subsequent Interest Payment Date will be registered in the name of the transferee but the interest payment will be made to the registered Owners of the Bonds shown on the Register as of the close of business on the Record Date. The Registrar may but need not register the transfer of a Bond which has been selected for redemption and need not register the transfer of any Bond for a period of fifteen (15) days before a selection of Bonds to be redeemed; if the transfer of any Bond which has been called or selected for call for redemption in whole or in part is registered, any notice of redemption which has been given to the transferor will be binding upon the transferee and a copy of the notice of redemption will be delivered to the transferee along with the Bond or Bonds. RESOLUTION NO. 2024-008 SVCFD NO. 2 PAGE 11 OF 29 If the District, del-ermines to have restrictions on purchase or transfer of the Bonds, such restr ict ions may be eliminated after the Bonds receive certain ratings from rating agencies . Such restrictions and the elimination of such restrictions, if any, shall, be in the final form of the Registrar/Paying Agent Contract and the Bonds. The Registrar shall authenticate Bonds for original issue up to $35, 000 in aggregate principal amount upon the written request of the District Treasurer. The aggregate principal amount of Bonds outstanding at any time may not exceed that amount except for replacement Bonds as to which the requirements of the Registrar and the District are met . SECTION XV PAYMENT OF INDEBTEDNESS; SATISFACTION AND DISCHARGE OF RESOLUTION WHENEVER: A. all, Bonds theretofore authenticated and delivered have been canceled by the Registrar or delivered to the Registrar for cancellation, excluding, however: (i) Bonds for the payment of which money has theretofore been deposited in trust with the Paying Agent as provided in Section XIV; (i i) Bonds alleged to have been destroyed, lost, or stolen which have been replaced or paid as provided in Section VII, except for any such Bond which, prior to the satisfaction and discharge of this resolution, has been presented to the Registrar with a claim of ownership and enforceability by the Owner thereof and where enforceability has not been determined adversely against such Owner by a court of competent jurisdiction; (iii.) Bonds, other than those referred to in the foregoing clauses, for the payment or redemption (under arrangements satisfactory to the Registrar for the giving of notice of redemption by tie Registrar in the name and at the expense of the District) of which the District has deposited or caused to be deposited with the Paying Agent in trust, for such purpose an amount (to be irrunediately available for payment, except in the case of Bonds excepted from the foregoing clause (ii) prior to the tirne the ownership and enforceability of such Bonds has been established) sufficient to L)ay a ri d discharge the e n ti r e RESOLUTION NO. 2024-008 SVCFD NO. 2' PAGE 12 OF 19 indebtedness on the Bonds for, principal (and premium, if any) and interest to the date of maturity, thereof; and (iv) Bonds deemed no longer outstanding as a reSLII.t of the deposit or escrow of money or Governmental Obligations or both as described in Section XVI; and B$ the District has paid or caused to be paid all other sums payable hereunder by the District, then this resolution and the lien, rights, and interests created hereby shall cease, determine, and become null and void (except as to any surviving rights of transfer or excharige of Bonds herein or therein provided for) , and the Paying Agent and each co-paying agent and separate paying agent, if any, then acting as such shall pay, assign, transfer, and deliver to the District all cash, securities, and other personal property than held by it Notwithstanding the satisfaction and discharge of this resolution, the obligations of the District to pay the Registrar and the Paying Agent reasonable compensation tar its services rendered under the Registrar Paying Agent Contract shall survive. For purposes of this section, "Governmental Obligations" mearis (1) direct obligations of, or obligations the timely payment of principal of is fully and unconditionally guaranteed by, the United States of America or (2) obligations described in Section 103 (a) of the Internal Revenue Code of 1986,. as amended (the "Code") , provision for the payment of the principal of and premium, if any, and interest on which shall have been made by the irrevocable deposit with a bank or trust company acting as a trustee or escrow agent for holders of such obligations of securities described in clause (1) the maturing principal of and interest on which, when due and payable, will provide sufficient moneys to pay when due the principal of and premium, if any, and interest on such obligations, and which securities described in clause (1) are not avaiiable to satisfy any other claim, including any claim of the Paying Agent or escrow agent, or any clairn of one to whom the Paying Agent or escrow agent may be obligated which, at the time of deposit pursuant to Section XVI, have been assigned ratings in the highest rating categories of S&P Global Ratings, a division of Standard and Poor' s Financial Services LLC ("S&P"') and Moody' s Investors Service, Inc. ("Moody's") , but in the case of both clause (1) and clause (2) of this paragraph, for purposes of Section XVI, only if such obligations are non-callable prior to the maturity of the Bonds or (3) REFCORP STRIPS, which are defined as obligations, representing interest on obligations of the Resolution Funding RESOLUTION NO. 2024-008 SVCFD NO. 2 PAGE 13 OF 19 Corporation, the payment of such interest, if other, revenues are insufficient, is required to be paid from the Uni,ted States Treasury, which interest obligations are stripped by the Federal Reserve Bank of New York. Governmental Obligations also incit-ides for purposes other than Secti(:)n XVI, a "no load, " open-end managentent investment company or trust (mutual fund) , registered with the federal Securities and Exchange Commission ("SEC") , meeting the requirements of Rule 2a-7 and the Investment Company Act of 1940, and which money market fund invests in short term United States Treasury obligations, agencies guaranteed by the United States, and repurchase agreements secured by the same and which money market fund has a rating by S&P of AAAm- gip AA,Am; or 1%1km or better and a rating by Moody' s of "VMIG-1" or better . SECTION XVI DEFEASANCE Any Bond shall be deemed to be paid, defeased and no longer outstanding and shall have no clairn on ad valorem taxes levier-i on taxable property in the District when payment of the principal of such Bond, plus interest thereon to .the maturity thereof (whether such maturity be by reason of the stated maturity thereof or call for redemption, if notice of such call has been given or waived or irrevocable arrangements therefor satisfactory to the Paying Agent or an escrow 'trustee have been made) shall have been provided for by depositing for such payment from funds of the District under the terms provided in this Section ( 1) money sufficient to make such payment or (2) money and Governmental Obligations certified by an independent accountant of national reputation to mature as to principal and interest in such amounts and at such times as shall, without further investment or reinvestment of either the principal amount thereof or the interest earnings therefrom be sufficient to make such payment, provided that all. necessary and proper fees, compensation, and expenses of the Paying Agent or., an escrow, trustee pertaining to the Bonds with respect to which such deposit is made shall have been paid or the payment thereof provided for to the satisfaction of the Paying Agent or an escrow trustee. Any such deposit shall be made either with the Paying Agent or an escrow trustee or, if notice of such deposit is given to the Paying Agent or an escrow trustee, with a state or national,ly-chartered bank with a minimum combined capital. and surplus of $50, 000, 000, as escrow agent, with irrevocabie instructions to transfer the arriounts so deposited and investment income therefrom to the Paying Agent or an escrow trust-lee in the amounts and at the times required to pay principal of and interest on the Bonds with respect. to which such deposit is made at the maturity thereof and of such interest or the stated matuLity, as RESOLUTION NO. 2024-008 SVCFF) NO. 2 PAGE 14 OF 19 the case may be. In the Event such deposit is made with respect to sorne, but not all of the Bonds then outstanding, the outstanding Bonds shall be selected in the same manner as provided in Section XIV for the selection of Bonds to be redeemed. Notwithstanding anything faerein to the contrary however, no such deposit shall have the effect hereinabove described ( 1. ) if made during the existence of default hereunder of which the Paying Agent or an escrow trustee has received written notice unless made with respect to all of the Bonds then outstanding and (2) unless there shall be delivered to the Flaying Agent or an escrow trustee an opinion of a firm, of attorneys of national reputation, acceptable to the District and experienced in the field of municipal bonds whose opinions are generally accepted by purchasers of municipal bonds to the effect that such deposit shall, not adversely affect any exemption from federal income taxation of interest on any Borid (provided, however, that the District intends to issue the and on a taxable basis and therefore such opinion may not be required) . Any money and Governmental, Obligations deposited with the Paying Agent or an escrow trustee for such purpose shall be held by the Paying Agent or an escrow trustee in as segregated account in trust for the Owners of the Bonds with respect to which such deposit is made and together with any investment income therefrom, shall be disbursed solely to pay the principal of and interest on the Bonds when due. No money or Governmental Obligations so deposited pursuant to this Section sha'Ll be invested or reinvested unless in Governmental Obligations and unless such money not invested, such Governmental Obiigations not reinvested, and such new investments are together certified by an independent accountant of national reputation to be of such amounts, maturities, and interest payment dates and to bear such interest as will, without further investment or reinvestment of either the principal amount thereof or the interest earnings therefrom, be sufficient to make such payment . At such times as as and shall, be deemed to be paid hereunder, as aforesaid, it shall no longer be secured by or, entitled to the benefits of this resolution, except for purposes of any such payment from such money or Governmental Oblig)ations . SECTION XVII APPLICATION OF' DEPOSITED MONEY Money or Governmental Obligations deposited with the Paying Agent or an escrow trustee pursuant to Section XVI shall constitute a separate trust fund for the benefit of the persons entitled thereto. Such money or Governmental Obligations shall be applied by the Paying Agent or, an escrow trustee to the payment to the Owners entitled thereto of the principal (and premium, if any) and RESOLUTION NO. 2024-008 SVCFD NO, 2 PAGE 15 OF 19 interest for the payinent of which such money has been deposited with the Paying Agent or an escrow trustee. SECTION XVIII OTHER ACTIONS NECESSARY The Chairman (or any of member oi the District Board in the event the Chairman is absent or unable to timely take the desired action) , the District Manager, the District Treasurer, the District Clerk and the officers of the District shall take all action necessary or reasonably required to carry out, give effect to and consummate the transactions contemplated by the Bond Documents, including but without limitation, the execution and delivery of the closing and other documents required to be delivered in connection with the sale and delivery of the Bonds. SECTION XIX TAX LEVY A. For each year while an.y Bond is outstanding, the District Board shall annually levy and thereafter forward to Pinal County, Arizona (the "County") , for collection an ad valorem tax, at "Ehe same time and in the same manner as other taxes are levied and collected on all taxable property in the District, sufficient, together with any moneys from any sources authorized in the Enabling Act and provided for under the Bond Documents, to pay Debt Service when due. B. Moneys derived from the levy of the tax provided for in this Section when collected and allocated to the Bonds constitute funds to pay Debt Service and shall, be deposited in the Bond Ftend for the Bonds and shall be kept separately from other funds of the District . C. The District, Board shall make annual statements and estimates of the amount to be raised to pay Debt Service on the Bonds and such other costs of the District as are permitted under "public infrastructure purposes" as provided in the Enabling Act . The District Board shall file the annual statements and estimates with the Clerk of the City and shall publish a notice of the filing of the estimate. The District Board, on or before the date set by law for certifying the annual budget of the District, shall fix, levy and assess the amounts to be raised by ad valorem taxes of the District and shall cause certified copies of the order to be delivered to the County Board of Supervisors and to the Department of Revenue of the State of Arizona (the "State") . All, statutes relating to the levy and collection of State and County 'taxes, including the collection of delinquent taxes and sale of property RESOLUTION NO. 2024-008 SVCFD NO. 2 PAGE 16 OF 19 for nonpayment of taxes, apply to the taxes provided for by this Section. SECTION XX NO OBLIGATION OF CITY Neither the full faith and credit no the general taxing power of the City, the State, or any politi(,,,al subdivision thereof (ether than the District) is pledged to the payment of the Bonds . The Bonds will be obligations of the District only. None of the C.,ity, the State, or any political, subdivision thereof (other than the District ) will,, have any obligation with respect to Debt Service for the Bonds. SECTION XXI RATIFICATION OF' ACTIONS All actions of' the officers and agents of the District which conform to the purposes and intent hereof and which further the issuance and sale of the Bonds as contemplated hereby whether heretofore or hereafter taken shall be and are hereby ratified, confirmed and approved. The proper kofficers and. agents of the District are hereby authorized and directed to do all such acts and things and to execute and deliver, all such documents on behalf of the District as may be necessary to carry out the terms and intent of this resolution. SECTION XXII RESERVED SECTION XXIII RE.SERVED SECTION XXIV RESOLUTION A CONTRACT This resolution shall const-litute a contract between the Distri,ct and the registered Owners of the Bonds and shall riot be repealed or amended in any manner which would impair, impede or lessen the rights of the registered. Owners of the Bonds then outstanding. SECTION XXV SEVERABILITY AND WAIVER If any section, paragraph, clause or provision of this resolution shall for any reason be held to be invalid or unenforceable, the invalidity or unenforceability of such section, paragraph, clause or provision shall not affect any of .he< remaining provisions of this resolution. The District Board hereby declares that it. would have adopted this resolution and each and every other section, paragraph, subdivision, sentence, clause or phrase hereof and authorized the sale, issuance and delivery of the Bonds pursuant RESOLUTION NO. 2024-008 SV('FD NO. 2 PAGE 17 OF 19 hereto irrespective of the fact that., any one or more sections, paragraphs, subdivisions, sentences, clauses or phrases of this resolution may be held illegal, invalid or unenforceable. All ordinances, resolutions or parts thereof inconsistent herewith are hereby waived to the extent only of such inconsistency. This waiver shall not be construed as reviving any ordinance or resolution or any part thereof. SECTION XXVI CANCELLATION OF' AGREEMENT As applicable, the District hereby gives notice to the Registrar, the Paying Agent and the Purchaser that A.R. S. § 38-511, as amended, provides that, within three (3) years after execution of any agreement, the District may cancel such agreement without penalty or further obligation if any person significantly involved in initiating, negotiating, securing, drafting or creating the agreement on behalf of the District or any of its departments or agencies is at any time while the agreement or any extension of the agreement is in effect an employee or, agent of the Registrar, the Paying Agent or the Purchaser in any capacity or a consuitant to the Registrar, the Paying Agent or the Purchaser with respect to the subject matter of the agreement . SECTION XXVII EFFECTIVE DATE This resolution shalt be effective irninediatelY. RESOLUTION NO. 2024-008 SVCFD NO. 2 PAGE 18 OF 19 PASSED AND ADOPTED BY THE BOARD OF DIRECTORS OF THE SUPERSTITION VISTAS COMMUNITY FACFLITIES DISTRICT NO. 2, THIS DAY OF NOVEMBER, 2024 . SIGNED AND ATTESTED TO THIS DAY OF NOV EMBER, 2024 . WALTER "CHIP"' WILSON Chairman, Board of Directors ATTEST: JENNIFER PENA District Clerk APPROVED AS TO FORM: RIHART JOEL STERN District Counsel RESOLUTION NO. 2024-008 SVCFD NO. 2 PAGE 19 OF 19 EXHIBIT A DESCRIPTION OF PROJECT The Bonds will finance the acquisition iti on of all or a portion of the Project consisting of public infrastructure and public infrastructure purposes (as such germs are delfined in the Act ) described in the Report, including particularly the acquisition by the District of the following: DESCRIPTIM ESTIMATED OST O LETION7 Blossom Rock Trail january 2024 c,,VJOf.r_»s 0 s w t~14..F't. 1,710, 623 TOTAL: $2,212,7 2 Completion ion T.'E?present.,.. t 1h d.;x§.;;( t, a7II d C_& the e Developer EIXP ..Y:ed the public is infrastructure to be constructed, which may differ from the date Hat it. was or i,. accepted b, the City or o?'h+K.r governmental entities, as applicable. The roje : consists s of construction of approximately 3, 639 linear feet of full street surface -improvements, including curia and detached sidewalk. The street improvements include two lane in each direction and tying into existing Ray Avenue to the South and extending to the North. Mose improvements include i - nc'l` potable water and 8-inch water stubs, various i Of StOrin drain, n concrete curb and utter, sidewalk, paving, striping, signage, streetlights and street sic=>et;es. All improvements are shown on the plans sealed by Wood, Patel and Associates, can December 29, 202 and approved by the City, which may be amended from time to time to allow for additional property uses adjacent to Blossom Rock Trail that are not yet known. RESOLUTION ION NO. 2024-008 SVCF a NO. 2 EXHIBIT EXHXBXT B NOTICE OF PUBLIC HEARING TO THE GENERAL PUBLIC AND THE bWI-MERS OF THE BOARD OF DIRECTORS OF THE SUPERSTITION VISTAS COMMUNITY FACILITIES DISTRICT NO. 2 : NOTICE IS HEREBY GIVEN that the Board of Directors of the Superstition Vistas Community Facilities District No. 2 will meet on November 19, 2024, at 6: 00 p.m. , in the City Council Chambers, City of Apache Junction, 300 East Superstition Boulevard, Apache Junction, Arizona 85119, to conduct a public hearing on, and to consider and review a feasibility report relative to, a proposed project to be financed by the issuance of general obligation bonds of the, District . A copy of the feasibility report may be reviewed at the office of the City Cierk, 300 East Superstition Boulevard, Apache Junction, Arizona 85119. Publish ori(--e in the Arizona Business Gazette no later than 2024. RESOLI-JTION NO. 2024-008 SVCFD NO. 2 EXHIBIT B EXHIBIT C (INSERT TRANSFER RESTRICTIONS, INCLUDING THAT BONDS ARE NOT WITHOUTSUBJECT TO TRANSFER PRIOR WRITTENCONSENT DISTRICT] UNITED STATES " AMERIC t STATE OF ARIZONA SUPERSTITION VISTAS COMMUNITY C; DISTRICT 'a GENERAL OBLIGATION BOND TAXABLE SERIES 2024 Interest Maturity Original. Dated Rate Date Date July 15, 2024 [20251 REGISTERED OWNER: PRINCIPAL AMOUN,r: AND N01100 DOLLARSi� ) Superstition Vistas Community Facilities District No . 2 (the "'District") , a community facilities district formed by the City of Apache Junc:teion Arizona,, and duly organized and validly existing, pursuant to the Laws of the State of Arizona, for value received, hereby promises to pay or cause the; Paying Agent to pray to the "'Registered Owner"' specified above or registeredassigns (the "Owner") , can the "Maturity Date" specified above unless earlier redeemed as provided herein the "Principal Amount" specified above and to pay interest (calculated on the basis of "i 7_day year of twelve 2 -day months) on the unpaid portion thereof from the "Original Dated Rate,, specified above, or from the most recent "Interest Payment Date"' (as defined herein,) to which interest has been paid or duly provided for, until. such Principal Amount, is paid or the payment thereof is duly provided for at or in advance nce of the Maturity Date, semiannually on each January' 1 and Duly 15 commencing [July] 12, 20 [25] (each an "'Interest Payment Date"') , at the per annur "Interest Rate*' specified above. Principal, interest and any premium are ptayab. e in lawful money of the united States of America. RESOLUTION NO. 202 -tit VC;" 'D NO. 2 EXHIBIT PAGE 1 OF 7 Initially the District shall serve as the Registrar and the Paying Agent; provided, however, that the District may select a different Registrar or Paying Agent at any time without not-lice to, or consent of, the Owner. The "Record [)are" for this bond will be the close of business on rhe last day of the caiendar month (other than a Saturday, a Sunday, or a legal holiday or equivalent (other than a moratorium) for banking institutions generally in the place of payment or in the city where the principal. corporate trust office of the Registrar is It (a"business day") ) in the month preceding the applicable Interest Payment Date, or if such day is not a business day, the previous business day. If the specified date for any such payment shall be a Saturday, a Sunday, or a Legal holiday or equivalent tother than a moratorium) for banking institutions generally in the place of payment or in the city where the designated corporate trust office of the Paying Agent is located then such payment may be made on the next succeeding day which is not one of the foregoing days without additional interest and with the sarne force and effect as if made on the specified date for such payment, except thaIL" in the event of a moratorium for banking institutions generally at the place of payment or in the city wh�sre the principal corporate trust office of the Paying Agent is located, such payment may be made on such next succeeding day except that the Bonds on which such payment is due shall continue Lo accrue interest until such payment is made or duly provided for. This Bond is one of an issue of bonds of the District duly authorized to be issued by a resolution of the District" .9 Board of Directors adopted on November 2024 (the "Bond Resolution") , and having the designat' lon specified therein (the "Bonds") , issued and to be issued in one series under, and all equally and ratably secured, with the limitations described herein, by the Bond Resolution, to which Bond Resolution reference is hereby made for a description of the amounts thereby pledged and a,,,,3signed, the nature and extent of the lien and security, the respective rights thereunfler of the Owners of the Bonds, the Paying Agent, and the District, and the terms upon which the Bonds are, and are to be, authenticated and delivered and by this reference to the terms of which each Owner of this Bond hereby consents . The Bonds are issued .for., the purposes described in the Bond Resolution and in strict conformity with Title 48, Chapter, 4, Article 6, Arizona Revised Statutes, as amended (the "Enabling Act"') . RESOLUTION NO. 2024-008 SVCFD NO. 2 EXHIBIT C PAGE 2 OF' 7 The Bonds are payable, equally and ratably with such other obligations of thie District payable from such sources as may be outstanding from time tO tiTne and to the extent provided in the and Resolution, from the proceeds of an ad valorem tax, unlimited as to rate or amount, to be levied and collected at the same time and in the same manner as other taxes are levied and collected on all taxable property within the boundaries of the District sufficient together with any other moneys from sources available purSUant to the Enabling Act to pay Debt Service ,as defined in the Enabling Act ) on the Bonds when due. Notwithstanding any provisions hereof or of the Bond Resolution, however, the obligation of the District to make money available to pay this Boric! may be defeased by the deposit of money and/or certain direct or indirect Governmental Obligations sufficient for such purpose as described in the Bond Resolution. The Bonds are issuable as fully-registered bonds only in the denominations of $5, 000 of principal each and integral multiples of $5, 000 in excess th(,_ reof . Optional Redemption. The Bonds are not subject to maturity prior to their stated maturity dates. Mandatory Redemption. The Bonds are not subject to mandatory redemption prior to their stated maturity dates . The Owner of this Bond has no rigtit to enforce the provisions of the Bond Resolution, or, to institute action 'to enforce the pledge,> assignment or covenants made therein or to take any action with respect to an event of default described in the Bond Resolution or to institute, appear in, or defend any suit, action or other proceeding at law or in equity with respect thereto, except as provided in the Bond Resolution. The liability of the District and obligations of the District pursuant to the Bond Resolution with respect to all. or any portion of the Bonds may be discharged at or prior to the maturity or redemption of the Bonds upon the making of provision for the payment thereof an the terms and conditions set, forth in the Bond Resolution. No covenant or agreement contained in the Bonds or in the Bond Resolution shall be deemed to be the covenant or agreement of any elected or appointed official, officer, agent, servant or employee of the District in his or tier individual capacity or of any officer, director, agent, servant or employee of the Paying RESOLUTION NO. 2024-008 SVCFD NO. 2 EXHIBIT' C PAGE 3 OF' 7 Agent or Owner in his or her individual capacity, and neither the members of the governing body of the District no any official executing the Bonds, including any officer or employee of the Paying Agent, shall be liable personally on the Bonds or be subject to any personal liability or accountability by reason of the issuance thereof. Terms used, but riot defined, herein have the meanings set forth in the Bond Resolution. Copies of the Bond Resolution are on file at the designated office of the Paying Agent, and reference is made to those instruments for the provisions relating, among other things, to the terms and source of payment and security for the Bonds, the limited liability of the District, the custody and application of the proceeds of the Bonds, the right's and remedies of the owners of the Bonds, amendments, and the rights, duties and obligations of the District and the Paying Agent, to all, of wliich the Owner, hereof, by acceptance of this Bond, assents . The District, the Paying Agent, and any agent of eit,her of them may treat the person in who name this Bond is registered as the owner hereof for the purpose of receiving payment as herein provided and for all other purposes, whether or not this Bond be overdue, and none of the District, the Paying Agent, and any such agent shall be affected by notice to the contrary. NOTHING CONTAINED IN THE BOND RESOLUTION, THE BOND DOCUMENTS OR ANY OTHER INSTRUMENT SHALL BE CONSTRUED AS OBLIGATING THE CITY OF APACHE JUNCTION, ARIZONA, OR THE STATE OF ARTZONA OR ANY POLTTICAL SUBDIVISION OF' EITHER (OTHER THA14 THE DISTRICT) OR AS INCURRING A CHARGE UPON THE GENERAL CREDIT OF THE CITY OR THE STATE OR SHALL THE BREACH OF ANY AGREEMENT CONTAINED IN THE BOND RESOLUTION, THE BOND DOCUMENTS OR ANY OTHER INSTRUMENT OR DOCUMENTS EXECUTED IN CONNECTION THEREWITH IMPOSE ANY CHARGE UPON THE GENERAL CREDIT OF THE CITY OR THE STATE. Unless the Certificate of Authentication hereon has been executed by the Registrar, by manual signature, this Bond shall not be entitled to any benefit under the Bond Resolution or, be valid or obligatory for any purpose. It is hereby certifi(,�d, covenanted, and represented that all acts, conditions and tl-iings required to be performed, exist, and be done precedent to <:,)r, in the issuance of this Bond in or to render the same a legal-, valid, and binding general obligation of the District have been perforined, exist and have been done, in regular and due time, form, and manner, as required by law, and that issuance of the Bonds (Joel not exceed any constitutional or RESOLUTION NO. 2024-008 SVCFD NO, 2 EXHIBIT C PAGE 4 OF' 7 statutory limitation. In case any provision in this Bond or any application thereof shall be invalid, illegal, or unenforceable, the validity, legality, and enforceability of the remaining provisions and applications shall not: in any way be affected or impaired thereby. This on shall be construed in accordance with and governed by the laws of the State of Arizona and the federal laws of the United States of America. IN WITNESS WHEREOF, the District Nas caused this Boriel to be duly executed by the Chairman of its Board of Directors arid attested by its Distri(ft Clerk, is signatures may be manual or by facsimile signatures. SUPERSTITION VISTAS COMMUNITY FACILITIES DISTRICT NO. 2 By: Chairman, Board of Directors ATTEST: -6�lt r I�ct—C 1 e-r—k - Dated: 2024 . RESOLUTION O. 2024-008 SVCFD NO. 2 EXHIBIT C PAGE 5 OF 7 CERTIFICATE OF AUTHENTICATION This Bond is one of the Superstition Vistas Camnmiunity Facilities District No. 2 General Obligation Bonds, Taxable Series 2024, described in the Bond Resolution mentioned herein. Superstition Vistas Community Facilities District N . 2, as Registrar By____ District Treasurer Data: p 2024 The following abbreviations, when used in the inscription on the face of the within bond, shall, be construed as though they were written out Sri full according to applicable laws or regulations: TEN COM as tenants in common UN1F' GIrr/TRANS MIN ACT TEN ENT as tenants by the eat reties (Cust JT TEN as joint tenants with right, c,f Custodian for Minor) survivorship and not as tenants in c,,,xmTion Under Uniform Gifts/Transfers to Witior,; Acn,; cif (State) Additional abbreviations may also be used though not in the above list. ASSIGNMENT FOR VALUE RECEIVED the undersigned tiereby sells, assigns, and transfers unto (Print or typewrite name, address, and zip code of transferee: ) (Print or typewrite Social Security or other, identifying number of transferee: -...... ) the within Bond and all rights thereunder, and hereby irrevocably constitutes and appoints (Print or typewrite name of attorney) attorney, to transfer the within Bond on the books kept for registration thereof, with full power of substitution in the premises, RESOI,UTION NO. 2024-008 SVCF'D NO. 2 EXHIBrr c PAGE 6 OF 7 DATED _ SialnaL r. guarantee should be made by a Nt,rtla.E he signature(s) on this assignment must- guarantor insts.ttvtion participating in the correspond with the rtaame(s) of the:. Registered OarneL(s) Secl,arities Transfer Agents Medallion Prograana appearing on the face of the within Bond in every or in such other guarantee prograin acceptable particular. to tile Registrar. ALL FEES AND-TRANSFER COSTS SHALL BE PAID BY TEE TRANSFEROR RESOLUTION NO. 2 24-00 3 SVCFD NO. EXHIBIT . . PAGE 7 Off' 'SUPERSTITION VISTAS CFD NO 2. ROLL CALL 7� ?- Zt ,7 0 DATE: TIME: YES EXCl1SED I N 0 CHAIRPERSON WILSON V VICE CHAIRPERSON SCHROEDER V/— BOARDMEMBER CROSS BOARDMEMBER HECK V/ BOARDMEMBERJOHNSON BOARDMEMBER NESSER BOARDMEMBER SOLLER District Manager Bryant Powell Assistant District Manager Matt Busby Dist6c- ef pert. Deputy District Clerk Evie McKinney District Attorney Joel Stern District Director Mike Loggins District Controller Connie Chow District Administrative Assistant Rita Vineyard District Billing Supervisor Stacey Ramirez District Treasurer Angelie Hawley Utility Director Ted Wolff District Project Manager Charles Briggs District Comm/Mrktg.Director Kayla Fulmer Ei S:\Templates&Forms\Roll Call-SVCFD NO I and 2-Attendance.doc SUPERSTION VISTAS CFD NO 2, VOTE ® ROLL CALL NOTES. ITEM # MEETING OF MOTION BY: [4L4tA, ' 7 ) SECONDED BY: YES NO ABSTAINED BOARD MEMBERS: BOARDMEMBER SOLLER VICE CHAIRPERSON —� SCHROEDER BOARDMEMBER NESSER BOARDMEMBER CROSS BOARDMEMBER HECK BOARDMEMBER JOHNSON CHAIRPERSON WILSON TOTAL UNANIMOUS IN FAVOR OPPOSED ABSTAINED TOTAL. Vote sheet 1 s:\templates&forms\vote call-svcfd no 2.docx SUPERSTION VISTAS CFD NO 2. VOTE - ROLL CALL NOTES: 3 A-12 , ITEM MEETING OF ze;Z, MOTION BY: SECONDED BY: YES NO ABSTAINED BOARD MEMBERS: BOARDMEMBER NESSER L// BOARDMEMBER JOHNSON BOARDMEMBER CROSS BOARDMEMBER HECK BOARDMEMBER SOLLER VICE CHAIRPERSON SCHROEDER CHAIRPERSON WILSON TOTAL UNANIMOUS IN FAVOR OPPOSED ABSTAINED TOTAL Vote sheet 2 s:\templates&forms\vote call-svcfd no 2.docx CITY OF APACIE JUNCTION SUPERSTITION VISTAS COMMUNITY FACILITIES DISTRICT NO. 2 Tuesday, November 19, 2024 A. CALL_TO ORDER I would like to call the Superstition Vistas Community Facilities District No. 2 Special Meeting of November 19, 2024, to order and ask everyone to put their cell phones on silent. B. ROLL CALL. C. AGENDA 1. Consideration of approval of the minutes of the special meeting of October 1:5, 2024. Do I have a motion? wait for the motion and the end. Roll Call 2. PUBLIC IC HEARING on the feasibility report for Superstition Vistas Community Facilities District No. 2 Call on Zach Sakas, CFD Counsel I will now open the public hearing. public can speak for 5 min. Would anyone like to speak on these item Any discussion among the Board? - I will now close the public hearing. There is no motion can this item. 3. Presentation, discussion and consideration of Resolution No. 2424-008 S V C F D No. 2. Call can Za h Any discussion among the beard? Board can discuss.. Do I have a motion? Wait for the motion and second Roll Call D. DISTRICT MANAGER REPORT- none E. DISTRICT DIRECTOR REPORT- none F. DISTRICT TREASURER REPORT- none G. ADJOURNMENT Meeting Adjourned. 11/19/2024 MOTIONS ITEM NO. °I APPROVAL OF MINUTES I MOVE THAT the minutes of OCTOBER 15, 2024, special meeting BE: (approved) OR (denied). ITEM NO. 3 1 MOVE THAT RESOLUTION NO. 2 24-0 8 SVCFD NO. 2. A RESOLUTION OF THE district board of Superstition Vistas Community Facilities District No.. 2 approving the prior notice of a public hearing with respect to a feasibility report relating to the acquisition and financing of certain improvements benefiting Superstition Vistas Community Facilities district No. 2; approving the feasibility report; authorizing the issuance of the District's General Obligation Bonds; Taxable Series 2024; prescribing the terms of such bonds; delegating the determination of certain terms to the Chairman, District Manager and District Treasurer, levying an ad valorem tax on taxable property within the District; and authorizing the taking of other actions securing the payment of and relating to the bonds BE: (APPROVED) OR (DENIED).