PURSUANT TO A.R.S. 38-431.01 and A.R.S. 38-431.02

May 31, 2024, 3:00

The Lambert residence

2051 S Sheriff’s Posse Trail, Prescott, AZ 86303


1) Meeting was called to order at 3:01 P.M.  Randy Loemker, Laura Lambert, and Shanen Lacy along with two members of the public were in attendance.


Randy informed the Board that he had a conversation with Dan Brutinel of Arizona Earth Crafters and Dan has agreed to do our snow clearing for the 2024-2025 snow season.


Randy also told the Board that following up with a question from the May 14 meeting regarding interest being received on our operating and reserve accounts--they are accruing interest in the 4-5% range in various investments that Yavapai County uses for Special District accounts.  He intends to have more detailed conversations with the County to obtain a more complete picture of our investment options.


2) Kenny from Earth Resources then joined the meeting by conference call and provided his thoughts on appropriate maintenance options to economically extend the life of our road system.  He commented that our roads are in reasonably good shape and generally not exhibiting the “alligator cracking” phenomenon that indicates failure.  His opinion is that a chipseal and fog coat process would be appropriate in the near future and every 6 to eight years thereafter with a fog seal only at the halfway point between each chipseal.  He feels that if we follow this process, the road will last a long time before needing a full re-pavement.  In response to questions, Kenny clarified that the material used for the chipseal is more viscous than the fog coat, and that chipseal provides a more durable resurfacing with better traction characteristics.  He also stated that crack repair would occur in advance of chipseal.  He is going to provide a quote for the chipseal process for our road system early next week.


3) The Board held a general discussion on the proposed budget for FY2025.  The admin expense line was increased to $500 to align with expected future expenses.  Randy moved and Laura seconded that we transfer $22,000  cash from the Operating account to the Reserve account as it is his understanding that there are more interest-bearing options in that account.  The motion passed unanimously.


Randy then presented a look at a long term budget “pro-forma” which assumed chipseal every eight years and intermediate fog seal--per Kenny’s recommendation--along with an assumption of increasing the tax levy for the District for inflation only and an assumption of a full paving process in 2041 (assumed to be $300K in 2024 dollars)  The result was an estimated $166K shortfall (again, 2024 dollars) at the time of future paving that would have to be paid as a special one-time levy for property owners in 2041. While we need to have more information in the form of quotes for current and future major work, the Board’s initial reaction is that this strikes a reasonable balance between owners who funded the original paving project and feel they should not be burdened with funding the future repaving as well, while avoiding a situation at the time of future re-pavement in which a one-time special assessment is so large as to create an undue burden to owners at that future date and complicate the process of properly completing the needed work.


Since we are still awaiting quotes from Earth Resources, the Board agreed to meet again on Wednesday June 5 at 3:30 P,M at the residence of Shanen Lacy: 2625 W Bentley Dr, Prescott, AZ 86303  for a budget adoption meeting.


4) Randy moved that the May 13, 2024 minutes (item 6) be changed to correct the date from March 29 to May 29 (a typographical error).  Laura seconded and the motion passed unanimously.


5) No items were raised from public attendees.


6) Randy moved to adjourn the meeting, Laura seconded, and the Board unanimously agreed to adjourn at 3:50.