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ITEM 8.b. TOWN OF FOUNTAIN HILLS STAFF REPORT Meeting Date: 6/2/2026 Meeting Type: Town Council Regular and Special 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: Approving Resolution 2026-12, the Dissolution of the Eagle Mountain Community Facilities District. Staff Summary (background) On February 16, 1995, the Town Council adopted Resolution 1995-04, forming the Eagle Mountain Community Facilities District (the District). The District Board issued various series of general obligation bonds to finance and refinance the acquisition of public infrastructure benefiting the land within the boundaries of the District (Eagle Mountain neighborhood). All the long-term debt was paid off by July 2021, and the District has been inactive for 5 years and serves no further purpose. Therefore, in accordance with Arizona law, the Board of Directors considered closure of the District earlier tonight during the District Board meeting considering Resolution EMCFD 2026-01. With closure of the District, the Town will receive any infrastructure not already conveyed to the Town, and will take on any potential liabilities of the District. In this case, the District may still have an outstanding liability related to the previous Qasimyar lawsuit, impacting local governments and special taxing districts in Maricopa County. The Qasimyar litigation resulted from a court ruling that Maricopa County incorrectly calculated certain residential property values when properties changed between owner-occupied and rental/non-primary classifications. The ruling required recalculation of affected property values and refunds to eligible taxpayers, with the resulting financial impacts allocated among affected property- taxing jurisdictions. The Maricopa County Treasurer's Office last reported that the outstanding liability related to repayments made to impacted residents in the District amounted to about $47,000. The Treasurer's Office already processed those repayments to those impacted residents, but the District has not paid the County regarding this issue. The District's counsel, Greenberg Traurig, requested an update from the Maricopa County Treasurer's Office regarding the potential liability, with no response from the County. Therefore, there is a possibility that the County will seek repayment in the future, and with closure of the District, the Town may be responsible for the outstanding liability. With the dissolution of the District, staff would transfer any remaining fund balance to the Town's funds, and transfer any infrastructure not already conveyed to the Town. This Resolution 2026-12 is presented for the Town Council's consideration to approve the dissolution of the District. All remaining legal and required steps to close the District will take place after tonight's meeting by Town staff and the Town's Special Districts Counsel, Greenberg Traurig. Related Ordinance, Policy or Guiding Principle A.R.S. § 48-724 Risk Analysis Without dissolving the District, staff will be required to administer the District budget and the Board will continue to meet each year for an inactive community facilities district that no longer serves a purpose. Recommendation(s) by Board(s) or Commission(s) N/A Staff Recommendation(s) Staff recommends approval of Resolution 2026-12, approving the dissolution of Eagle Mountain Community Facilities District. Suggested Motion MOVE TO APPROVE Resolution 2026-12, approving the Dissolution of Eagle Mountain Community Facilities District, and all necessary steps including transferring remaining funds and infrastructure to the Town FISCAL IMPACT Fiscal Impact: N/A Budget Reference: N/A Funding Source: N/A ATTACHMENTS 1. Resolution 2026-12 2. Presentation