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Preserve fund plan lists trailhead projects and shows large land‑debt balance; staff outlines defeasance timing
Summary
Budget Review Commission staff presented a five‑year preserve fund plan and a list of trailhead projects while city finance staff reviewed the preserve land debt; staff said the debt’s outstanding principal is about $149.4 million and the make‑whole call amount is roughly $164.3 million, with the earliest allowed call in fiscal year 2027–28.
Budget staff and preserve management briefed the Budget Review Commission on proposed capital projects funded from the parks and preserve funds and on the outstanding debt tied to land purchases for the McDowell Sonoran Preserve.
City financial staff said the preserve fund includes two voter‑approved sales taxes and projected 0.15 tax revenue of about $25.2 million for the coming year. City Treasurer Sonya Andrews and staff presented the preserve fund five‑year plan and explained the preserve land debt outstanding: principal around $149.4 million and total remaining interest obligations that make the make‑whole call amount about $164.3 million. Staff said the debt cannot be called until the 2027–28 fiscal year, and that if council elects to retire the debt early it would be done through an escrow/defeasance process.
Treasurer Andrews said the fund balance at June 30 of the current year is projected at roughly $159.8 million, and staff showed scenarios where the city would still carry significant balances even after proposed capital transfers. “If we don't collect any more money this fiscal year, we would have a hundred and 59,800,000 at the end of this fiscal year,” Andrews said. Staff told commissioners that, based on the current proposed 5‑year plan and scheduled transfers to capital, the preserve fund would still carry a modest balance after paying scheduled debt service and funding trailhead projects.
Capital project presenter Croix (staff) described roughly $65 million of multi‑year trailhead and preserve projects, covering older southern trailheads (Lost Dog Wash, Gateway, Sunrise) needing amenity upgrades and “hardening” of parking surfaces, and northern trailhead completion items such as water/sewer hookups at Tom’s Thumb and Frye/Fries field. Croix said many of the projects are community‑driven, were developed with user groups (equestrians, mountain bikers, hikers, conservancy), and range from small amenity and safety work to more expensive completion projects. The Rio Verde Drive wildlife crossing appears as the single largest line in the five‑year list and is subject to the feasibility conversation recorded elsewhere in the meeting.
Commissioners asked for clarity about how the preserve charter language and the 2018 voter guidance constrain uses of preserve funds. City attorney staff attended and noted that certain charter language governs allowable uses; staff said exceptions exist for approved trailhead parking facility completion and other items explicitly listed in the charter, but that legal staff would provide detailed advice to council if needed.
No formal action was approved at the meeting; staff said the proposed capital lists and the debt schedule would be included in the budget materials presented to council and would be tracked in separate funds per the ordinance and the city treasurer’s reporting requirements.
