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ITEM 9.a.
TOWN OF FOUNTAIN HILLS
STAFF REPORT
Meeting Date:
9/15/2026
Meeting Type:
Town Council Regular Meeting
Submitting Department:
Administration / Finance
Prepared by:
Paul Soldinger, Chief Financial Officer
Staff Contact Information: Phone: 480-816-5160
Email: psoldinger@fountainhillsaz.gov
Request to Town Council Regular Meeting (Agenda Language)
CONSIDERATION AND POSSIBLE ACTION: Regarding Resolution 2026-21,
Authorizing the Dissolution of the Municipal Property Corporation (MPC) and a Funding
Transfer of the remaining MPC Fund balance into the General Fund.
Staff Summary (background)
The Town of Fountain Hills, Arizona Municipal Property Corporation ("MPC") was
incorporated in 1998 as an Arizona nonprofit corporation to assist the Town with financing
municipal facilities and property. The MPC was used to finance or refinance construction of
the Town's Community Center and Civic Center and to acquire approximately 200 acres of
land for mountain preserve purposes.
All bonds previously issued through the MPC have been fully repaid. The final principal
payment was made on July 1, 2018, and neither the Town nor the MPC presently intends to
use the MPC to issue additional bonds. Additionally, the MPC Board approved Resolution
MPC 2026-01 on August 27, 2026, to authorize the dissolution, subject to subsequent Town
Council approval. Resolution 2026-21 would authorize the winding down and dissolution of
the MPC.
Municipal property corporations were historically used by Arizona municipalities as part of
certain tax-exempt financing structures, but changes to federal Treasury regulations reduced
the need for an MPC structure for these types of municipal financings. The Fountain Hills
MPC has not had outstanding bond debt since 2018. Maintaining the nonprofit corporation
nevertheless requires continued administrative and compliance activity. Because the MPC's
outstanding financings have been retired and there is no current intention to use the MPC for
future financing transactions, dissolution is being recommended.
Following Town Council approval and completion of the necessary due-diligence and wind-
down activities, the authorized representatives of the MPC will proceed with required tax
filings, transfer of any remaining assets, and filing of the Articles of Dissolution with the
Arizona Corporation Commission. The existing fund balance within the MPC Fund of about
$13,100 will be transferred into the General Fund upon the MPC dissolution.
Related Ordinance, Policy or Guiding Principle
A.R.S. § 10-11401
Risk Analysis
Without approving the dissolution of the MPC, Town staff will continue spending
administrative efforts complying with relevant requirements over financial reporting and
registration for an MPC that has not been active since 2018, and with no legal need to
maintain the MPC's active status.
Recommendation(s) by Board(s) or Commission(s)
N/A
Staff Recommendation(s)
Staff recommends approval of Resolution 2026-21, authorizing the dissolution of the
Municipal Property Corporation (MPC)
Suggested Motion
MOVE TO APPROVE Resolution 2026-21, Authorizing the Dissolution of the Municipal
Property Corporation (MPC), and Funding Transfer of the remaining MPC Fund balance into
the General Fund.
FISCAL IMPACT
Fiscal Impact: N/A
Budget Reference: N/A
Funding Source: N/A
ATTACHMENTS
1.
Resolution 2026-21
2.
Presentation
3.
Greenberg Traurig Presentation