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Home My WebLink AboutPackets - Council Packets (1713)Town Council Budget Study Session May 11, 2022 Police Department FY 22/23 Budget Recommendations FY21/22 Major Accomplishments and Highlights “The Safest City in Arizona” #1 by Elite Personal Finance #2 by Homesnacks.com #4 by Safewise.com #7 by Safeatlast.co The Department joined other law enforcement agencies to establish the Pima Regional Critical Incident Team OVPD serves as the southern coordinator for Arizona Child Abduction Response Team The Department applied and was awarded over $330,000 in grants from Stonegarden, Governor’s Office of Highway Safety and the Arizona Criminal Justice Commission FY21/22 Major Accomplishments and Highlights Implemented a three-prong approach (mental, physical and nutrition) to the Department’s Health and Wellness program OVPD Public Safety Telecommunicators exceeded national quality assurance expectations, with a yearly average score of 97.47% OVPD Members attended 4,300 hours of training for succession planning and advanced officer trainings Created a Public Safety Announcement with Parks and Recreation and Golder Ranch Fire District for Mental Health Awareness Departmental Approach, Future Goals Policing with a purpose Statistically driven deployment Staffing to meet community needs Recruitment and Retention Police Recruit Trainee Utilize other academies Use Smart & Safe Funds for new FTE’s Use Arizona Opioid Settlement to assist with law enforcement, legal and court efforts Police Department FY22/23 Department Budgets FY 21/22 Adopted FY 22/23 Recommended Variance Personnel $17,002,192 $17,731,379 $729,187 O&M 1,128,808 1,346,794 217,986 Capital 40,000 70,000 30,000 Total $18,171,000 $19,148,173 $977,173 Police Department (1)Merit and step increases, and four new positions in FY 22/23 (2) Insurance cost increases,department-wide training, and equipment/supply cost increases (3)Radio equipment, furniture needs, and K9 equipment (1) (2) (3) TOWN COUNCIL FOCUS AREA 3: Goal 3A Strategic Plan and Public Safety Support strategies that continue to ensure Oro Valley’s standing as one of the safest communities in Arizona. Utilize data to enhance deployment strategies for High Visibility Enforcement (HiVE) in high collision areas to address the increasing volume of traffic and associate issues in and around Oro Valley roadways Allocate and deploy officers to efficiently and effectively manage and reduce crime utilizing current crime trends Develop an outreach and marketing campaign to effectively recruit diverse and qualified officers, to include partnering with local educational institutions Develop and implement ways to expand drug free awareness education and programming to area youth TOWN COUNCIL FOCUS AREA 3: Goal 3B Strategic Plan and Public Safety Support actions that maintain and enhance the community’s trust in the Oro Valley Police Department. Work with local and regional partners to educate and address the impacts mental health issues are having on public safety and the entire community Complete the Arizona Law Enforcement Accreditation Program Police Department FY 22/23 Budget Recommendations Questions? Parks & Recreation Inspire Connection Through Recreation FY 22/23 Budget Recommendations Began Master Plan implementation –Conquistador Irrigation and Tennis Court construction have started, and Naranja Groundbreaking will be May 31 Indigo Golf significant year-over-year financial improvement, successfully opened Pusch Ridge Golf and welcomed several Disc Golf events Park Management installed a new playground structure at James D. Kriegh Park, installed pedestrian lighting at Riverfront Park, and three staff earned their National Playground Safety Inspector Certification Recreation/Culture recognized its first “Historic Home” designation in Oro Valley, Steam Pump Garage restoration started, and special event participation back to pre-pandemic attendance Aquatics membership saw a 66% increase, the sanitization and oxygen system in the Olympic pool was installed, and increased lifeguard certification classes Community Center membership returned to pre-pandemic numbers, upgraded treadmills and reconfigured the facility for better flow, and coordinated the new SnOVevent with real snow Current Year Accomplishments FY2022/2023 Objectives Implementation of Parks Bond Open the former Vistoso Golf Course and Master Planning Recreation and Culture move to Steam Pump Ranch Aquatics implementation of new fitness programming Park Management updating park standards and implementing ADC program Community Center focus on member retention and facility improvement projects Golf management continue focus on member retention and introduction of Disc Golf FY22/23 Department Budgets FY 21/22 Adopted FY 22/23 Recommended Variance Personnel $2,189,365 $2,304,665 $115,300 O&M 1,116,496 1,299,891 183,395 Capital 140,500 156,000 15,500 Total $3,446,361 $3,760,556 $314,195 Parks & Recreation –General Fund (1) New parks maintenance worker I, part-time park monitor, part-time facility attendants, and fitness instructors (2)Increased general liability costs, travel & training, contract programming and instructors (with offsetting revenue), grant funded outside professional services; inflationary special event expenditures, utilities, and contracted programming (3)One-time equipment purchases (2) (3) (1) FY22/23 Department Budgets FY 21/22 Adopted FY 22/23 Recommended Variance Personnel $875,291 $916,806 $41,515 O&M 4,912,818 5,433,918 521,100 Capital 132,500 2,324,700 2,192,200 Other Financing Uses 1,868,519 2,028,066 159,547 Total $7,789,128 $10,703,490 $3,664,362 Parks & Recreation –Community Center Fund (1)New lifeguard supervisor position, more facility attendant hours, and normal merit increases (2)Planned maintenance of the former Vistoso golf course and necessary building repair and maintenance to the Community Center, Pusch facility and La Cañada golf facility (3)Various improvements to the community center and capital projects such as ADA improvement capacity, the golf cart path repaving project and the former Vistoso golf course safety improvements (4) Transfer to debt service series 2016 energy efficiency & series 2021 parks bond (1) (2) (3) (4) Divisions Parks & Recreation Department Administration Aquatics Community Center Park Management Recreation and Cultural Golf Administration Division Former Vistoso Golf Course oversight Amphitheater School partnership Parks Bond implementation Strategic Plan Focus •Goal 2A •Goal 2B Aquatics Division Lifeguard recruitment and retention New group fitness programming Facility improvement projects Strategic Plan Focus •Goal 2A •Goal 2B Community Center Facility improvements Recreation lounge Mirrors and murals on walls Stretching zone A/V for the Sunset Room Strategic Plan Goals •Goal 2A •Goal 2B Park Management Restroom improvements at Honeybee Canyon and James D. Kriegh Park New maintenance equipment Upgrading fall zone at Riverfront Playground Implementation of ADC program Strategic Plan Goals •Goal 2A Recreation and Culture Strategic Plan Goals •Goal 2A •Goal 2B Community events Local Historic Registry Steam Pump Ranch programming Recreation/Culture Division moving to Steam Pump Ranch Indigo Golf Partners Strategic Plan Goals •Goal 2A & 2B Operational focus on 45-holes of golf Retain loyalty base (membership and mobile app) Continue Junior Golf Opportunities (Operation 36) Disc Golf Opportunities at Pusch Ridge Continued support of community outreach events El Conquistador 36-holes 36 Hole Course Open November 1, 2022, through April 30, 2023 Irrigation Project Conquistador Course closed May 2022 through October 2022 Cañada Course closed May 2023 through June 2023 (with continuation to FY23/24) Membership Levels remain stable at 325 Full Time Golf Memberships Demand for golf remains consistent with current year trends during months of November 2022 through April 2023 Increase in labor to match minimum wage model and addition of key personnel in golf operations and golf maintenance. Budget assumes fully staffed golf maintenance department El Conquistador Golf (36-hole) Revenue El Conquistador -36 hole FY20/21 FY21/22 FY 22/23 FY22/23 Actual Forecast Pro Forma Budget Rounds 86,706 76,255 61,658 64,875 Green Fee Revenue $1,916,178 $1,809,000 $1,415,368 $1,434,500 Cart Fees $258,027 $279,827 $248,599 $264,800 Driving Range $50,432 $42,840 $69,723 $43,500 Pro Shop Sales $218,420 $182,172 $240,557 $172,110 Other Revenue (club rental, locker)$25,404 $60,150 $3,121 $55,845 Clinic / School Revenue $26,839 $28,639 $15,606 $20,225 Membership Fees $1,021,503 $1,114,775 $884,340 $1,092,000 Other Amenities $5.278 ($4,961)$20,808 $1,200 Total Revenue $3,522,082 $3,513,340 $2,898,122 $3,084,180 Cost of Goods Sold $152,276 $150,948 $170,252 $143,735 Gross Income (Rev-COGS)$3,369,806 $3,362,392 $2,727,870 $2,940,445 El Conquistador Golf (36-hole) Expenses El Conquistador -36 hole FY20/21 FY21/22 FY 22/23 FY21/22 Actual Forecast Pro Forma Budget Golf Ops Labor $304,492 $307,791 $372,499 $341,479 General and Administrative Labor $132,708 $129,251 $172,045 $131,500 Golf Course Maintenance Labor $687,148 $657,287 $677,299 $794,086 Sales and Marketing Labor $74,297 $75,850 $30,544 $78,975 Total Direct Labor $1,198,646 $1,170,179 $1,252,387 $1,346,040 Payroll Burden (Taxes, Benefits, WC)$226,455 $197,377 $250,107 $261,894 Total Labor Expense $1,425,100 $1,367,556 $1,502,494 $1,607,934 Golf Operations Expense $83,747 $91,814 $31,521 $51,807 General & Administrative Expense $209,578 $131,478 $138,232 $166,653 Golf Course Maintenance Expense $485,704 $485,736 $417,621 $527,660 Sales and Marketing Expense $26,902 $21,733 $42,946 $23,175 Management Fees $120,000 $122,400 $120,000 $124,848 Leases $194,874 $154,410 $246,900 $134,446 Utilities $1,087,253 $1,014,505 $1,077,338 $1,028,350 Insurance -P and C $51,418 $46,237 $2,040 $47,623 Total Other Operational Expenses $2,337,838 $2,072,912 $2,076,598 $2,104,562 Total Expenses $3,762,939 $3,440,468 $3,579,496 $3,712,496 EBITDAR ($393,133)($78,076)($851,222)($772,051) Food and Beverage Restaurant operating hours same as FY 2021/2022 Anticipate overall reduction in revenue from Conquistador Course closure (2022) and Cañada (2023) Staffing model remains the same Projecting increase in Kids Summer Camp lunches; also increases labor Food and Beverage –Revenue and Expenses Food and Beverage FY20/21 FY21/22 FY 22/23 FY22/23 Actual Forecast Pro Forma Budget Projected F&B Revenue $448,782 $592,933 $807,107 $538,775 Expenses F&B Payroll $203,395 $256,636 $333,569 $245,589 F&B Benefits and Payroll Taxes $41,575 $46,025 $56,987 $38.931 Total F&B Labor $244,970 $302,661 $390,556 $284,520 F&B Operating Expenses $47,830 $34,139 $68,818 $33,885 Cost of Sales $147,582 $191,641 $271,691 $169.458 Capital $0 $0 Projected Expenses $195,682 $225,780 $340,509 $203,343 EBITDA $8,400 $64,492 $76,042 $50,912 Pusch Ridge 9-holes Open November 1, 2022 –April 30, 2023 Assume 60 rounds per day based on cart fleet of 28 carts Addition of Disc Golf –daily play, leagues, events Personnel added for FY 2022/2023 as play levels have far exceeded initial pro forma and to increase programming (clinics, junior golf) Pusch Ridge Golf (9-hole) Revenue Pusch Ridge -9 Hole FY21/22 FY 21/22 FY 22/23 FY21/22 Pro Forma Forecast Pro Forma Budget Rounds 6,675 15,350 7,351 12,275 Green Fee Revenue $164.475 $321,751 $181,331 $258,675 Pro Shop Sales $3,600 $13,542 $3,978 $9,500 Other Revenue (club rental, Disc Golf)$3,475 $5,849 $3,545 $11,900 Membership Fees $0 $11,675 $0 $10,500 Food and Beverage $1,800 $4,725 $2,754 $7,575 Misc. Income $0 $41,902 $0 $21,200 Total Revenue $173,350 $399,934 $188,395 $311,000 Cost of Goods Sold $2,820 $7,352 $3,213 $8,923 Gross Income (Rev-COGS)$170,530 $392,582 $188,395 $302,077 Pusch Ridge Golf (9-hole) Expenses Pusch Ridge -9 Hole FY21/22 FY 21/22 FY 22/23 FY22/23 Pro Forma Forecast Pro Forma Budget Golf Ops Labor $33,900 $37,442 $36,239 $63,822 Golf Course Maintenance Labor $45,062 $44,162 $45,513 $46,150 Total Direct Labor $78,962 $81,604 $81,782 $109.983 Payroll Burden (Taxes, Benefits, WC)$7,951 $7,027 $8,241 $10,218 Total Labor Expense $86,913 $88,631 $90,023 $120,201 Golf Operations / G & A Expense $6,600 $15,190 $20,806 $16,050 Golf Course Maintenance Expense $47,466 $36,640 $51,430 $45,716 Sales and Marketing Expense $0 $2,000 $0 $2,000 Leases $20,004 $21,101 $20,004 $28,236 Utilities $146,960 $159,575 $146,960 $158,400 Total Other Operational Expenses $221,030 $234,506 $239,200 $250,402 Total Expenses $307,943 $323,137 $329.223 $370,603 EBITDAR ($144,963)$69,445 ($140,828)($68,526) Parks & Recreation Inspire Connection Through Recreation FY 22/23 Budget Recommendations Questions? Public Works FY 22/23 Budget Recommendations Accomplishments Current Budget Pavement Preservation and OCI Lambert Lane overlay Moore Road pavement overlay Mercado De Rio sidewalk ADA connectivity 680 Maintenance Bay remodel 680 Administration Building remodel Facilities $450K building repair and maintenance Managing the $25M Parks Bond and starting Irrigation, Tennis and Naranja Park construction Town Hall Campus security New Library Patio area Finished Council Chambers renovation Exterior Campus Painting Asset Preservation of Town Hall and MOC Renovation of Pusch Ridge Tennis/Golf Facility Main Police Station Lobby and Public Restroom remodel and ADA compliance Record ridership on the Sun Shuttle DAR Recognized by the Arizona Transit Association of our Transit Accident Prevention Training Program Updated Town Code Chapter 17, Floodplain and Erosion Hazard Management and issued the new Drainage Criteria Manual Highlights over the past year Current Budget O&M goals met in most areas Pavement Management: applied various pavement preservation treatments to 79 lane miles Overall street condition index (OCI) of 77 Annual neighborhood and arterial sweeping Completion of more than 35 pavement repairs Completion of more than 50 sidewalk repairs Street Operations: Over 1,400 completed tasks and projects Fleet and Facilities: Over 5,000 tasks and projects Regional financial support Renegotiated new Intergovernmental Agreement with the Regional Transportation Authority to cover increasing transit cost through 6/30/2026, the end of RTA plan Continuing relationships with PAG, RTA, PCRFCD, DEMA, FEMA and ADOT -for instance, the additional funding for the Bond MUP Highlights over the past year Current Budget Challenges Construction costs escalation and contractor availability issues Project estimating and budget performance Some basic materials were periodically not available – asphalt/concrete Cost inflation of utilities and fuel Cost inflation of goods and services Aging facilities in need of small repairs and compliance improvements Aging street network Driver shortages Staff retention issues Finding and hiring qualified staff FY23 Budget Objectives General Continue ADA improvements Greenock Trail improvements New Operations Laydown Yard Expansion and future facility planning and design Continued vehicle and equipment replacement program Recreation & Community Center Finish detail design of Naranja Park, complete mass grading, construct fields and splash pad Finish irrigation for Conquistador Course and Tennis Renovations construction Start irrigation construction for Cañada Course CC Parking Lot design and bid Present ADA improvement solutions to Council and design and construction Construct external ADA improvements to Pusch facilities MUP construction FY23 Budget Objectives Roadway and Safety Improvements Continue routine Pavement Preservation $1.85M and will increase over time to maintain the street OCI of 76+ Rancho Vistoso Boulevard and Woodburne Avenue Intersection Shannon Road pavement replacement and reconstruction La Cañada Drive pavement replacement and reconstruction HAWK Signalized Crossing at Ironwood Ridge High School Stormwater Maintain the MS4 Permit compliance status Catalina Ridge Drainage Improvement Sierra Wash at Naranja Drainage Improvement Fleet Vehicle Replacement Program Increased cost with safety focused maintenance Internalize standard maintenance activities Challenges Manage the currently identified challenges stated previously Facilities Maintenance Design / Build approach –over 500K to ensure project success 22 repair or rehabilitation small projects for facility maintenance FY23 Budget Objectives Project Administration and Implementation Realigning Project Management staff to evenly distribute the project workload 50 PROJECTS SCHEDULED FOR FY 2023 Transportation Art by Youth (TABY) Grant TripSpark Passenger Portal Enhancement RTA Wildlife Fencing HAWK Signalized Crossing for Naranja Drive @ IRHS Rancho Vistoso & Woodbourne Intersection Wildlife Linkages Consultants CC Parking Lot Reconstruction & Expansion (Design) Community Center Tennis / Pickleball Court Improvements La Cañada Mill/Overlay (Tangerine Rd to Moore Rd) MUP –Phase I -La Cañada Dr. (Lambert Lane to Naranja Dr) Sierra Wash: Phase I Naranja Construction Catalina Ridge Drainage Improvements Mutterer's Wash Design Sierra Wash: Phase II W. Via Mandarina Sierra Wash: Phase III W. Via Glover Highland Wash Drainage Improvements Greenock Trail Landscaping -Improvements Golf Course Irrigation Phase 1 (Conquistador Course) Golf Course Irrigation Phase 2 (La Cañada Course) Conquistador Golf Course Cart Path Repaving Westward Look Improvements MUP –Phase II -Naranja Dr. (La Cañada Dr to Naranja Park entrance) Shannon Road Pavement Reconstruct and Overlay Pavement Preservation -Roadways Pavement Preservation -Non-Roadways Town Court Expansion (Design) OV Preserves Upgrades (former Rancho Vistoso) FY22/23 DEPARTMENT BUDGETS FY 21/22 Adopted FY 22/23 Recommended Variance Personnel $3,242,662 $3,709,760 $467,098 O&M 2,309,775 2,328,298 18,523 Capital 26,800 191,800 165,000 Total $5,579,237 $6,229,858 $650,621 Public Works –General Fund/Capital Fund (1)New fleet maintenance mechanic III position, new transit driver positions and hours, and two positions moved from other departments/funds (2)Insurance cost increase (3) Town -wide facility maintenance program (2) (1) (3) FY22/23 DEPARTMENT BUDGETS FY 21/22 Adopted FY 22/23 Recommended Variance Personnel 1,208,870 1,186,556 (22,314) O&M 616,655 823,615 206,960 Capital 2,265,000 2,626,000 361,000 Total $4,090,525 $4,636,171 545,646 Public Works –Highway Fund (1)Normal staff turnover (2)Increased field supplies, street striping, street maintenance and materials costs (3)Increased pavement preservation program costs for FY 22/23 (1) (2) (3) FY22/23 DEPARTMENT BUDGETS FY 21/22 Adopted FY 22/23 Recommended Variance Personnel $830,507 $820,287 $(10,220) O&M*440,935 385,845 (55,090) Capital 857,374 884,513 27,139 Total $2,128,816 $2,090,645 $(38,171) Public Works –Stormwater Utility (1)Stormwater project manager position transitioned to Public Works –Administration in the General Fund to allow flexibility in managing non-stormwater projects (2)Decrease in outside professional services in FY 22/23 (3)Drainage improvements projects, Sierra Wash project carryover (2) (3) (1) * amount excludes depreciation and amortization Public Works FY 22/23 Budget Recommendations Questions? Capital Improvement Program (CIP) FY 22/23 Budget Recommendations CIP Overview Ten -year plan Year one (1) is budgeted in the FY 22/23 Recommended Budget Years two (2) through 10 are placeholders Fluid document subject to shifts, changes, deletions and additions Projects included in the plan reflect the goals and strategies of the Council-adopted Strategic Leadership Plan $5M contingency due to uncertain construction market $6M balance for future years’ capital projects FY22/23 Recommended CIP: $56,126,467 $24.5 $15.0 $7.8 $4.7 $1.8 $1.4 $0.7 $0.2 - 5 10 15 20 25 30 Parks & Recreation Water System Streets/Roads Other Public Facilities Vehicle Replacement Technology Stormwater Public Safety Millions FY22/23 Recommended CIP Funding Sources:$56,126,467 $29.4 $13.0 $3.4 $2.6 $2.1 $2.1 $1.0 $1.0 $0.9 $0.7 - 5 10 15 20 25 30 35 Capital Fund Water Impact Fee Fund Ground Water Fee Highway Fund Community Center Fund Water Utility Fund General Fund PAG/RTA Fund Roadway Impact Fee Fund Stormwater Utility Fund Millions 10 Year Recommended CIP: $346,605,503 $127.4 $63.3 $58.4 $49.6 $28.6 $15.3 $2.4 $1.5 - 10 20 30 40 50 60 70 80 90 100 110 120 130 140 Streets/Roads Public Safety Parks & Recreation Water System Vehicle Replacement Other Public Facilities Technology Stormwater Millions Streets and Roads Shannon Road Pavement Reconstruct and Overlay $791,000 Asphalt overlay with 5-foot paved shoulders and MUP on south side Pavement Preservation Program $1.85M Annual program to maintain current OCI rating La Cañada Mill/Overlay (Tangerine Road to Moore Road) $712,000 Mill and replace with conventional asphalt pavement HAWK Signalized Crossing (Naranja Drive at IRHS) $400,000 Allow students to cross more safely across Naranja Drive Water and Stormwater Infrastructure Northwest Recharge Recovery Delivery System (NWRRDS) $12M ($7.2M funded from water impact fees) Easement acquisition, transmission main, reservoir, and booster station Forebay reservoir at Shannon & Naranja $300,000 Storage for Central Arizona Project (CAP) water and “D” Zone water La Cañada Booster Station Expansion $200,000 Construct 16-inch main Well Equipping -TRICO Power to Sites $1.2M Equip wells to recover recharged CAP water Catalina Ridge Drainage Improvements $150,000 Armoring drainage channel Parks and Recreation Naranja Park Master Plan Implementation $10M Earthwork, 2 oversized multiuse fields, splash pad, basketball/pickleball courts, etc. Tennis/Pickleball Courts $2.2M Reconstruction of tennis and pickleball courts Steam Pump Ranch –Garage, BBQ and Bunk House Renovation and pool $1.2M Preservation and restoration of Garage, BBQ and Bunk House, and pool rehabilitation Aquatic Center Improvements $846,000 Replacement of competition equipment and pump room upgrades Community Center Elevator and ADA Improvements $1.5M Installation of elevator and other accessibility modifications/improvements Public Safety, Technology, Public Facilities and Other Arizona Broadband Development Grant Fiber Project $3.3M Establish a fiber optic network to expand broadband services in the Town Emergency Generators $725,000 680 new generator and Town Hall replacements Facility Maintenance Program $463,000 Annual repair and maintenance of Town owned facilities and assets Planned Vehicle Replacements $1,784,000 Annual replacement across Town Departments ANTICIPATED PROJECT CARRYOVER Project Name Carryover Source Projected Carryover Amt. Total FY22/23 Project Budget 680 Admin Building Remodel Capital Fund $86,752 $121,752 680 Maintenance Bay Capital Fund $97,638 $147,638 James D Kreigh Park Improvements Capital Fund $21,500 $21,500 La Cholla Blvd Widening Roadway Impact Fees $153,095 $153,095 Moore Rd. Asphalt Overlay -La Cholla to La Canada Capital Fund $527,000 $537,838 RTA Wildlife Fencing PAG/RTA Fund $496,574 $496,574 Sierra Wash Drainage Improvements Stormwater Utility Fund $386,000 $511,000 Steam Pump Ranch BBQ & Bunk House Renovations Capital Fund $552,500 $552,500 Steam Pump Ranch Garage Capital Fund $398,284 $610,908 Town Hall Emergency Generator Replacements Capital Fund $219,900 $569,900 ANTICIPATED PROJECT CARRYOVER Project Name Carryover Source Projected Carryover Amt. Total FY22/23 Project Budget Town Hall Data Center Migration Capital Fund $240,000 $240,000 Transportation Art by Youth (TABY) Grant PAG/RTA Fund $75,000 $75,000 La Posada Replacement Well Water Impact Fees $585,688 $586,688 Steam Pump Well Drill and Construction Water Impact Fees $300,000 $300,000 Utility Billing Software Water Utility Fund $18,640 $18,640 Vehicle Replacement Program Vehicle Reserves $574,397 $1,783,837 Westward Look Drive Improvements General Fund $539,625 $539,625 Capital Improvement Program (CIP) FY 22/23 Budget Recommendations Questions? Town Council Budget Study Session May 12, 2022 Oro Valley Water Utility FY 22/23 Recommended Budget The Oro Valley Water Utility 58 Our Mission The Oro Valley Water Utility is committed to the long-term sustainable production and delivery of water resources that meets or exceeds all water quality standards in a cost-effective environmentally responsible manner The Water Utility is an Enterprise Fund Funded solely from water sales, fees and charges Not dependent on the Town’s General Fund Administrative services provided by the Town are paid to the General Fund Fiscal Year 2021/22 Accomplishments 59 100% utilization of the Utility’s CAP allocation 2,671 AF used for CAP Delivery 4,997 AF used for aquifer recharge 2,637 AF saved in aquifer storage facilities Collected 2,704 water quality samples All federal and state safe drinking water standards met Expanded customer communications Added “Discover Our Water” program to serve Fourth and Fifth Grade students Increased customer participation in the WaterSmart Program. Infrastructure reinvestments Well, reservoir & booster station rehabilitations Fiscal Year 2022/23 Objectives 60 Water Resources Water Quality Conservation Infrastructure Rehabilitation FY22/23 Department Budgets FY 21/22 Adopted FY 22/23 Recommended Variance Personnel $3,662,217 $3,623,587 $(38,630) O&M*8,647,862 9,649,261 1,001,399 Capital 1,751,650 2,074,290 322,640 Debt Service 4,932,909 4,643,255 (289,654) Other Financing Uses 1,762,402 4,782,440 3,020,038 Total $20,757,040 $24,772,833 $4,015,793 Water Utility (1)Normal staff turnover adjustments (2)Increase in indirect cost allocation due to additional IT costs and evaluation of methodology (3) Planned CIP projects for FY 22/23 (4) Debt refinancing in 2021 (5)Transfers between the Water and Water Impact Fee funds for the NWRRDS project (1) (2) (3) (4) (5) * amount excludes depreciation and amortization Operating Fund Budget 62 Operation and Maintenance Expenses 63 Capital Projects and Impact Fee Fund 64 Oro Valley Water Utility FY 22/23 Recommended Budget Questions? Community and Economic Development Department FY 22/23 Budget Recommendations Community and Economic Development (CED) Department Implementing the Your Voice, Our Future General Plan Planning,permitting, inspections and monitoring of construction projects Protection of property and public health via review, approval, and inspection processes Business retention, expansion and attraction programs Creation of new primary and secondary employment opportunities Expansion of sales tax base to generate new financial resources for the community Development and Implementation of an OV-centric tourism strategy Essential functions for Oro Valley CED Major Accomplishments Westward Look Annexation OVSafeSteps transition to OVNextSteps chooseorovalley.com EC/DEV website launch First Annual Business Summit Tourism Strategies Plan completion FY21 YTD: 173 SFR, 2,070 permits;82 zoning related applications, and 26,754 inspections. FY21 YTD: 11 neighborhood meetings and 5 project videos CED Primary Employer, Business, and Tourism Investments $10,000 $95,000$8,000 Specific and Digital Marketing, Outreach Studies and Classes Site Selector Trips and Recruitment $60,000 Tourism and Events Oro Valley Economic Development Objectives Goal 1A: Implement actions to support and assist local businesses in navigating the current and projected economic conditions. •Transition to OVNextSteps o $2,500 for translation services o $7,500 for Business Startup/Small Business Development Courses Goal 1B: Implement strategies to attract, grow and retain primary employers and expand local job opportunities •$25,000 hi-tech talent attraction study •$3,000 to support digital marketing strategies •$25,000 Housing Assessment (Goal 5A) Oro Valley Economic Development Objectives Goal 1C: Implement strategies to attract and retain retail, restaurant and hospitality investment and expansion in commercial centers. •$2,500 sponsorship of Oro Valley Chamber of Commerce Annual Business Summit •$25,000 Retail Strategies Study Goal 1D: Identify strategies to entice area residents and visitors to choose Oro Valley as a premiere place to dine, shop, play and stay. •$75,000 Targeted Tourism Attraction •$20,000 Tourism Sponsorships CED Budget Major Requests: Planning Division •$10,000 Dark Sky Code Updates •$12,000 Design Standards Updates CED Budget Major Requests: Permitting Division •Outside Plan Reviews: $8,000 •TIA Reviews: $2,000 •Credit Card Fees: $45,000 •2nd Party Reviews: COMM $50,000 CED Budget Major Requests: Inspections and Code Compliance •Printing and Binding: $3,000 •Uniforms: $2,925 •Field Supplies: $1,000 •OVERTIME: $10,000 Community & Economic Development FY Increase Summary FY 21/22 Adopted FY 22/23 Recommended Variance Personnel $2,702,183 $2,817,624 $115,441 O&M 342,431 438,516 96,085 Total $3,044,614 $3,256,140 $211,526 (1) Normal merit increases (2)O&M increased due to costs related to tourism moved from General Administration (1) (2) Community and Economic Development Department FY 22/23 Budget Recommendations Questions? Oro Valley Town Court FY 22/23 Budget Recommendations FY 21/22 Accomplishments Town Court •Converted all files to digital format and now operate in a paperless environment •Resumed normal Court operations, including in-person hearings •Reviewed and closed over 500 outstanding cases with the assistance of the Town Prosecutor •Worked with Police Department and Prosecutor’s Office to establish a consistent Court calendar •On May 1, implemented new fees approved by Town Council including Court Enhancement Fee that will help offset costs of Court operations •Successfully held the first Jury Trial in over 3 years •Established a process with OVPD to allow officers to connect with Judge for remote Initial Appearances 24/7 FY 22/23 Objectives Town Court •Begin design phase of court expansion •Hire part-time Probation Compliance Officer •Continue to seek grant funding for Court projects •Update Court accounting policies and procedures to ensure compliance with Supreme Court Standards •Continue to implement security measures to become compliant with the Court Security Standards established by the Supreme Court FY22/23 Department Budgets FY 21/22 Adopted FY 22/23 Recommended Variance Personnel $748,880 $759,950 $11,070 O&M 165,916 254,131 88,215 Capital -39,000 39,000 Total $914,796 $1,053,081 $138,285 Town Court (1)Court appointed attorney fees (2)Capital outlay is related to equipment replacement (1) (2) Oro Valley Town Court FY 22/23 Budget Recommendations Questions? Town Administration FY 22/23 Budget Recommendations 82 83 Administration Departments/Functions Town Manager’s Office Town Council Town Clerk Finance and Procurement Legal Services Human Resources Innovation and Technology General Administration FY 21/22 Major Accomplishments –Administration Finalized negotiations and related agreements for former Vistoso Golf Course Issued $25M in Parks and Recreation bonds, maintaining the Town’s AA+ bond rating Implemented Council direction to fully fund PSPRS Unfunded Liability through combination of reserve and pension obligation bond issuance Successfully contracted for a new deferred compensation services provider for employees Obtained a 73% participation rate on an Employee Benefit Survey meant to determine satisfaction of Town benefit offerings Selected an experienced consultant to undertake a classification/compensation study for the Town Transitioned public meetings back to in-person, while still facilitating public participation via Zoom for meetings held in Council Chambers 84 Major Accomplishments –Administration Tried the State v. Bell case with national attention, receiving a conviction Adopted new policies with the Court and Police department to handle policy changes from the Pima County Attorney’s Office Collaborated with the Friends of Pusch Ridge Golf for the successful reopening of the Pusch 9 Course in November '21 Created and hosted 13 “This is Oro Valley” podcasts to highlight Town and community operations 85 Major Accomplishments –Administration Expanded Peak Performance Lean Green Belt training to 45 employees Realized cost savings of $97,404 through January ‘22 related to Peak Improvement Projects Updated cybersecurity training courses for employees twice/year Updated multifactor authentication platform within the Town Received an award from Arizona Geographic Information Council for best application with the consolidated Adopt-a-road/trail website that is integrated with the Town’s asset management system Partnered with Pima County Office of Emergency Management to train SMT on using the National Incident Management System Updated Oro Valley's portion of the Pima County Multi-Jurisdictional Hazard Mitigation Plan 86 Budget Comparison -Administrative Departments Department FY 21/22 Budget FY 22/23 Recommended Variance Town Clerk $383,833 $420,087 +36,254 Finance $979,655 $1,033,216 +53,561 Human Resources $535,390 $569,112 +33,722 Innovation &Technology $4,346,583 $4,782,971 +436,388 Town Manager’s Office $1,115,224 $1,151,222 +35,998 Town Council $188,720 $199,145 $10,425 Legal Services $902,754 $1,011,342 +108,588 Total $8,452,159 $9,167,095 +714,936 Budget Comparison by Category CATEGORY FY 21/22 Budget FY 22/23 Recommended Variance Personnel $5,105,496 $5,322,167 +216,671 Operations & Maintenance $3,078,863 $3,483,628 +404,765 Capital $267,800 $361,300 +93,500 Total $8,452,159 $9,167,095 +714,936 Highlights of Budget Changes -Administration Personnel –4.24% Increase Merits New positions Operations & Maintenance –13.15% Increase Primary & General elections Travel & Training Software & Licensing Bi-annual Strategic Planning Capital –34.91% Increase Virtual Hosting MDCs Office/cubicle costs 89 Budget Comparison -General Administration * Includes contingency and transfer amounts Department FY 21/22 Budget FY 22/23 Recommended Variance General Administration *$26,867,823 $23,986,410 (2,881,413) 90 Accounts for overhead, non-departmental costs, community partnerships and transfers to other funds General Administration Budget highlights Children’s Museum support -$75,000 Retail market assessment -$25,000 Visit Tucson -$410,000 Greater Oro Valley Chamber of Commerce -$42,500 SAACA -$25,000 UA Center for Innovation -$30,000 Class/Comp Implementation -$1,300,000 91 General Administration Budget Highlights (cont.) ADOR -$120,000 Pima County jail costs -$125,000 Pima Animal Care Center -$146,518 Health Clinic -$122,716 Property and Casualty Insurance -$300,564 Vehicle reserve -$820,010 Debt service transfers -$2,048,965 Budgeted contingency remains at $5 million in FY 22/23, same as FY21/22 Transfer of $13M to capital fund per Council financial policies 92 Self-funded Medical (United Healthcare) –PPO and HDHP Self Insurance Benefit Fund reserves projected for FY22 -$3.7M No Premium Increase for employees, dependent care at 75/25 split for PPO, moving toward for HDHP Dental (Delta Dental) –Low and High plan Slight overall rate increase of 5% Town Benefits Overview Employee On-Site Clinic Provided OVPD COVID 19 Antibody testing, providing OV employee/family COVID 19 antigen testing Healthcare for employees and dependents participating in TOV plans Total of 1,873 encounters for FY2021 Value on investment of $1.66 for every $1 invested in the clinic 93 Identify potential new partnership opportunities with governmental entities Pursue priority annexations Robust visitor attraction and marketing strategy Complete existing, and work with Council to generate updated Strategic Leadership Plan Major Initiatives for FY22/23 -Administration Update Town Personnel Policies Develop organization-wide supervisory training program Maintain 100% PSPRS funding ratio Complete Town build-out analysis and model Successfully conduct the Primary Election and General Election, if necessary 94 Continue Peak Performance training, projects, and highlight efforts Implement Town-wide Learning Management System Upgrade SCADA software and infrastructure Upgrade Town primary datacenter with improved security Continue server upgrades to Windows 2019 Implement Multifactor Authentication Complete Water Utility customer information system Town safety program enhancements Major Initiatives for FY22/23 (CON'T) 95 Town Administration FY 22/23 Budget Recommendations Questions? 96