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Home My WebLink AboutPackets - Council Packets (1718) *AMENDED (5/31/22, 4:30 PM) AGENDA ORO VALLEY TOWN COUNCIL REGULAR SESSION JUNE 1, 2022 ORO VALLEY COUNCIL CHAMBERS 11000 N. LA CAÑADA DRIVE The Town has modified its public comment procedures in the newly renovated town council chambers. For more details, please see the instructions for in person and/or virtual speakers at the end of the agenda. To watch and/or listen to the public meeting online, please visit https://www.orovalleyaz.gov/town/departments/town-clerk/meetings-and-agendas Executive Sessions – Upon a vote of the majority of the Town Council, the Council may enter into Executive Sessions pursuant to Arizona Revised Statutes §38-431.03 (A)(3) to obtain legal advice on matters listed on the Agenda. REGULAR SESSION AT OR AFTER 6:00 PM CALL TO ORDER ROLL CALL PLEDGE OF ALLEGIANCE UPCOMING MEETING ANNOUNCEMENTS MAYOR AND COUNCIL REPORTS ON CURRENT EVENTS TOWN MANAGER'S REPORT ON CURRENT EVENTS ORDER OF BUSINESS: MAYOR WILL REVIEW THE ORDER OF THE MEETING INFORMATIONAL ITEMS CALL TO AUDIENCE – At this time, any member of the public is allowed to address the Mayor and Town Council on any issue not listed on today’s agenda. Pursuant to the Arizona Open Meeting Law, individual Council Members may ask Town Staff to review the matter, ask that the matter be placed on a future agenda, or respond to criticism made by speakers. However, the Mayor and Council may not discuss or take legal action on matters raised during “Call to Audience.” In order to speak during “Call to Audience” please specify what you wish to discuss when completing the blue speaker card. PRESENTATIONS 1.Proclamation - Men's Health Month CONSENT AGENDA (Consideration and/or possible action) A.Minutes - May 11, May 12, and May 18, 2022 B.Resolution No. (R)22-24, approving an Intergovernmental Agreement (IGA) between the Town of Oro Valley and Pima County for animal control services C.Request for Final Plat approval of a 21-lot residential subdivision known as Rivers Edge, located at the northeast corner of Lambert Lane and Shore Cliff Drive D.Resolution No. (R)22-25, authorizing and approving an Intergovernmental Agreement (IGA) between the City of Phoenix Police Department / Internet Crimes Against Children Task Force and the Town of Oro Valley Police Department for the participation in the Arizona Internet Crimes Against Children Task Force REGULAR AGENDA 1.PUBLIC HEARING: RESOLUTION NO. (R)22-26, AUTHORIZING AND APPROVING AN INCREASE TO THE POTABLE WATER BASE RATES AND INCREASE TO THE POTABLE WATER COMMODITY RATES FOR THE TOWN OF ORO VALLEY WATER UTILITY 2.PUBLIC HEARING: RESOLUTION NO. (R)22-27, DISCUSSION AND POSSIBLE ACTION REGARDING THE ADOPTION OF THE TENTATIVE BUDGET FOR FY 2022/23 AND SETTING THE LOCAL ALTERNATIVE EXPENDITURE LIMITATION FOR FY 2022/23 3.DISCUSSION AND POSSIBLE ACTION REGARDING A PROPOSED CONCEPTUAL SITE PLAN AND CONCEPTUAL LANDSCAPE PLAN FOR AN 18-UNIT RESIDENTIAL SUBDIVISION LOCATED ON THE EAST CORNER OF RANCHO VISTOSO BLVD AND MORNING VISTA DRIVE INTERSECTION (CASE NO. 2102029) 4.DISCUSSION AND POSSIBLE DIRECTION REGARDING A REQUEST FROM THE NORTHERN HEIGHTS HOA TO DEDICATE THEIR PRIVATE STREETS TO THE TOWN AS PUBLIC STREETS 5.STAFF REPORT AND POSSIBLE DISCUSSION ON THE OPTIONS AVAILABLE TO ALLEVIATE REPORTED TRAFFIC CONGESTION AND PEDESTRIAN SAFETY ISSUES AT LEMAN ACADEMY 6.PRESENTATION AND DISCUSSION REGARDING WHAT ACTIONS WOULD NEED TO BE TAKEN AND THE PROJECTED COSTS OF THESE ACTIONS REQUIRED TO BRING RECLAIMED WATER TO EACH TOWN FACILITY THAT CURRENTLY USES POTABLE WATER FOR IRRIGATION. THESE FACILITIES INCLUDE THE PUSCH RIDGE GOLF COURSE AND ANY OTHER TOWN FACILITIES WHICH CURRENTLY IRRIGATE WITH POTABLE WATER 7.*DISCUSSION AND POSSIBLE ACTION REGARDING THE NEED AND SCHEDULE OF COSTS FOR A NEW POLICE STATION FUTURE AGENDA ITEMS (The Council may bring forth general topics for future meeting agendas. Council may not discuss, deliberate or take any action on the topics presented pursuant to ARS 38-431.02H) ADJOURNMENT The Mayor and Council may, at the discretion of the meeting chairperson, discuss any Agenda item. POSTED: 5/25/22 at 5:00 p.m. by dt POSTED: 5/25/22 at 5:00 p.m. by dt AMENDED AGENDA POSTED: 5/31/22 at 5:00 p.m. by dt When possible, a packet of agenda materials as listed above is available for public inspection at least 24 hours prior to the Council meeting in the office of the Town Clerk between the hours of 8:00 a.m. – 5:00 p.m. The Town of Oro Valley complies with the Americans with Disabilities Act (ADA). If any person with a disability needs any type of accommodation, please notify the Town Clerk’s Office at least five days prior to the Council meeting at 229-4700. PUBLIC COMMENT ON AGENDA ITEMS The Town has modified its public comment procedures for its public bodies to allow for limited remote/virtual comment via Zoom. The public may provide comments remotely only on items posted as required Public Hearings, provided the speaker registers 24 hours prior to the meeting. For all other items, the public may complete a blue speaker card to be recognized in person by the Mayor, according to all other rules and procedures. Written comments can also be emailed to Town Clerk Michael Standish at mstandish@orovalleyaz.gov for distribution to the Town Council prior to the meeting. Further instructions to speakers are noted below. INSTRUCTIONS TO IN-PERSON SPEAKERS Members of the public shall be allowed to speak on posted public hearings and during Call to Audience when attending the meeting in person. The public may be allowed to speak on other posted items on the agenda at the discretion of the Mayor. If you wish to address the Town Council on any item(s) on this agenda, please complete a blue speaker card located on the Agenda table at the back of the room and give it to the Town Clerk. Please indicate on the blue speaker card which item number and topic you wish to speak on, or, if you wish to speak during Call to Audience, please specify what you wish to discuss. Please step forward to the podium when the Mayor calls on you to address the Council. 1. For the record, please state your name and whether or not you are a Town resident. 2. Speak only on the issue currently being discussed by Council. You will only be allowed to address the Council one time regarding the topic being discussed. 3. Please limit your comments to 3 minutes. 4. During Call to Audience, you may address the Council on any matter that is not on the agenda. 5. Any member of the public speaking must speak in a courteous and respectful manner to those present. INSTRUCTIONS TO VIRTUAL SPEAKERS FOR PUBLIC HEARINGS Members of the public may attend the meeting virtually and request to speak virtually on any agenda item that is listed as a Public Hearing. If you wish to address the Town Council virtually during any listed Public Hearing, please complete the online speaker form by clicking here https://forms.orovalleyaz.gov/forms/bluecard at least 24 hours prior to the start of the meeting. You must provide a valid email address in order to register. Town Staff will email you a link to the Zoom meeting the day of the meeting. After being recognized by the Mayor, staff will unmute your microphone access and you will have 3 minutes to address the Council. Further instructions regarding remote participation will be included in the email. Thank you for your cooperation. Town Council Regular Session 1. Meeting Date:06/01/2022 Proclamation - Men's Health Month Subject Proclamation - Men's Health Month Summary Attachments Proclamation Town Council Regular Session A. Meeting Date:06/01/2022 Requested by: Mike Standish Submitted By:Michelle Stine, Town Clerk's Office Department:Town Clerk's Office SUBJECT: Minutes - May 11, May 12, and May 18, 2022 RECOMMENDATION: Staff recommends approval. EXECUTIVE SUMMARY: N/A BACKGROUND OR DETAILED INFORMATION: N/A FISCAL IMPACT: N/A SUGGESTED MOTION: I MOVE to approve (approve with the following changes) the May 11, May 12 and May 18, 2022, minutes. Attachments 5-11-22 Draft Study Session Minutes 5-12-22 Draft Study Session Minutes 5-18-22 Draft Minutes D R A F T AGENDA ORO VALLEY TOWN COUNCIL BUDGET STUDY SESSION MAY 11, 2022 ORO VALLEY COUNCIL CHAMBERS 11000 N. LA CAÑADA DRIVE BUDGET STUDY SESSION AT OR AFTER 5:00 PM CALL TO ORDER Mayor Winfield called the meeting to order at 5:01 p.m. ROLL CALL Present: Joseph C. Winfield, Mayor Melanie Barrett, Vice Mayor Tim Bohen, Councilmember Harry Greene, Councilmember Joyce Jones-Ivey, Councilmember Steve Solomon, Councilmember Absent: Josh Nicolson, Councilmember BUDGET STUDY SESSION AGENDA 1.PRESENTATION AND DISCUSSION OF THE FY22/23 TOWN MANAGER'S RECOMMENDED BUDGET Town Manager Mary Jacobs provided a brief overview of item #1 and introduced Chief Financial Officer Dave Gephart. Mr. Gephart presented the following information: FY 22/23 Budget Overview - All Funds FY 22/23 General Fund Overview Police Department Police Chief Kara Riley gave an overview of the proposed FY 22/23 Police Department budget that included the following: FY 21/22 Major Accomplishments and Highlights Departmental Approach, Future Goals FY 22/23 Department Budgets Strategic Plan and Public Safety 5-11-22 Minutes, Town Council Budget Study Session 1 Questions and comments from Council regarding the proposed Police Department budget were received after Chief Riley's presentation. Parks & Recreation Department Including the Community Center Parks & Recreation Deputy Director Matt Jankowski gave an overview of the proposed FY 22/23 Parks & Recreation budget that included the following: Current Year Accomplishments FY 2022/2023 Objectives FY 22/23 Department Budgets Parks & Recreation Department Administration Division Aquatics Division Community Center Park Management Recreation and Culture Indigo Golf Partners El Conquistador 36-holes El Conquistador Golf (36-hole) Revenue El Conquistador Golf (36-hole) Expenses Food and Beverage Food and Beverage - Revenue and Expenses Pusch Ridge 9-holes Pusch Ridge Golf (9-hole) Revenue Pusch Ridge Golf (9-hole) Expenses Mayor Winfield recessed the meeting at 6:22 p.m. Mayor Winfield reconvened the meeting at 6:33 p.m. Questions and comments from Council regarding the proposed Parks & Recreation budget were received after Mr. Jankowski's presentation. Public Works Public Works Director and Town Engineer Paul Keesler gave an overview of the proposed FY 22/23 Public Works budget that included the following: Current Budget Accomplishments Current Budget Highlights over the past year FY 23 Budget Objectives FY 22/23 Department Budgets Public Works - General Fund/Capital Fund Public Works - Highway Fund Public Works - Stormwater Utility Councilmember Nicolson joined the meeting at 8:07 p.m. Mayor Winfield recessed the meeting at 8:23 p.m. Mayor Winfield reconvened the meeting at 8:35 p.m. Questions and comments from Council regarding the proposed Public Works budget were received after Mr. Keesler's presentation. 5-11-22 Minutes, Town Council Budget Study Session 2 Capital Improvement Projects (CIP) Assistant Town Manager Chris Cornelison gave an overview of the proposed FY 22/23 Capital Improvement Projects budget that included the following: CIP Overview FY 22/23 Recommended CIP: $56,126,467 FY 22/23 Recommended CIP Funding Sources; $56,126,467 10 Year Recommended CIP: $346,605,503 Streets and Roads Water and Stormwater Infrastructure Parks and Recreation Public Safety, Technology, Public Facilities and Other Anticipated Project Carryover Questions and comments from Council regarding the proposed Capital Improvement budget were received after Mr. Cornelison's presentation. ADJOURNMENT Mayor Winfield adjourned the Study Session at 10:02 p.m. _____________________________________________ Michelle Stine, MMC Deputy Town Clerk I hereby certify that the foregoing minutes are a true and correct copy of the minutes of the budget study session of the Town of Oro Valley Council of Oro Valley, Arizona held on the 11th day of May 2022. I further certify that the meeting was duly called and held and that a quorum was present. ____________________________________________ Michael Standish, CMC Town Clerk 5-11-22 Minutes, Town Council Budget Study Session 3 D R A F T AGENDA ORO VALLEY TOWN COUNCIL BUDGET STUDY SESSION May 12, 2022 ORO VALLEY COUNCIL CHAMBERS 11000 N. LA CAÑADA DRIVE BUDGET STUDY SESSION AT OR AFTER 5:00 PM CALL TO ORDER Mayor Winfield called the meeting to order at 5:02 p.m. ROLL CALL Present: Joseph C. Winfield, Mayor Tim Bohen, Councilmember Harry Greene, Councilmember Joyce Jones-Ivey, Councilmember (attended via Zoom) Josh Nicolson, Councilmember Steve Solomon, Councilmember Absent: Melanie Barrett, Vice Mayor BUDGET STUDY SESSION AGENDA 1.PRESENTATION AND DISCUSSION OF THE FY22/23 TOWN MANAGER'S RECOMMENDED BUDGET Capital Improvement Projects (this item was continued from the May 11, 2022, Budget Study Session) Questions and comments from Council regarding the proposed Capital Improvement budget continued from the May 11, 2022, presentation. Water Utility Water Utility Director Peter Abraham gave an overview of the proposed FY 22/23 Water Utility Department budget that included the following: The Oro Valley Water Utility Fiscal Year 2021/22 Accomplishments Fiscal Year 2022/23 Objectives Fiscal Year 22/23 Department Budgets Operating Fund Budget 5-12-22 Minutes, Town Council Budget Study Session 1 Operation and Maintenance Expenses Capital Projects and Impact Fee Fund Questions and comments from Council regarding the proposed Water Utility Department budget were received after Mr. Abraham's presentation. Community and Economic Development Department (CED) Community and Economic Development Department Director Paul Melcher gave an overview of the proposed FY 22/23 Community and Economic Development Department budget that included the following: Community and Economic Development Department Essential functions for Oro Valley CED Major Accomplishments CED Primary Employer, Business, and Tourism Investments Oro Valley Economic Development Objectives CED Budget Major Requests: Planning Division CED Budget Major Requests: Permitting Division CED Budget Major Requests: Inspections and Code Compliance Community & Economic Development FY Increase Summary Questions and comments from Council regarding the proposed Community and Economic Development Department budget were received after Mr. Melcher's presentation. Town Court Town Magistrate Judge James Hazel provided a brief overview of the proposed Town Court budget. Court Administrator Brittany Kimball presented the proposed FY 22/23 Town Court budget that included the following: Town Court FY 21/22 Accomplishments FY 22/23 Objectives FY 22/23 Department Budgets Questions and comments from Council regarding the proposed Town Court budget were received after Ms. Kimball's presentation. Town Administration Chief Financial Officer David Gephart and Chief Information Officer Chuck Boyer gave an overview of the proposed FY 22/23 Town Administration budget that included the following: Administration Departments/Functions Major Accomplishments - Administration Budget Comparison - Administrative Departments Budget Comparison by Category Highlights of Budget Changes - Administration Budget Comparison - General Administration General Administration Town Benefits Overview Major Initiatives for FY 22/23 - Administration Major Initiatives for FY 22/23 Questions and comments from Council regarding the proposed Town Administration budget were received after the presentation. 5-12-22 Minutes, Town Council Budget Study Session 2 Councilmember Nicolson left the meeting at 9:20 p.m. ADJOURNMENT Mayor Winfield adjourned the meeting at 9:40 p.m. _______________________________ Michelle Stine, MMC Deputy Town Clerk I hereby certify that the foregoing minutes are a true and correct copy of the minutes of the budget study session of the Town of Oro Valley Council of Oro Valley, Arizona held on the 12th day of May 2022. I further certify that the meeting was duly called and held and that a quorum was present. ______________________________________________ Michael Standish, CMC Town Clerk 5-12-22 Minutes, Town Council Budget Study Session 3 D R A F T MINUTES ORO VALLEY TOWN COUNCIL REGULAR SESSION MAY 18, 2022 ORO VALLEY COUNCIL CHAMBERS 11000 N. LA CAÑADA DRIVE REGULAR SESSION AT OR AFTER 6:00 PM CALL TO ORDER Mayor Winfield called the meeting to order at 6:00 p.m. ROLL CALL Present: Joseph C. Winfield, Mayor Melanie Barrett, Vice-Mayor Tim Bohen, Councilmember Harry Greene, Councilmember Joyce Jones-Ivey, Councilmember Josh Nicolson, Councilmember Steve Solomon, Councilmember PLEDGE OF ALLEGIANCE Mayor Winfield led the audience in the Pledge of Allegiance. UPCOMING MEETING ANNOUNCEMENTS Town Clerk Mike Standish announced the upcoming Town meetings. MAYOR AND COUNCIL REPORTS ON CURRENT EVENT Councilmember Jones-Ivey recognized Bansri Modi, a kindergartner at Basis Oro Valley, for her academic excellence. Mayor Winfield congratulated Oro Valley High School graduates and numerous Oro Valley student athletes and coaches for their accomplishments. Councilmember Bohen explained why he requests certain Council reports. 5-18-22 Minutes, Town Council Regular and Study Session 1 TOWN MANAGER'S REPORT ON CURRENT EVENTS Town Manager Mary Jacobs reported the following: Provided an update on the new mural at River Front Park Recognized the Oro Valley Public Works Department for National Public Works Week, held May 15 - 21, 2022 A Public Hearing regarding the Town Managers Recommended Budget will be held on June 1st and again on June 15, 2022, during the Town Council's Regular Session meetings Congratulated Oro Valley High School Graduates and College Graduates on their accomplishments ORDER OF BUSINESS Mayor Winfield reorganized the agenda by moving Regular Agenda item #6 as the first item, with Regular Agenda item #1 to follow. The remaining agenda items would remain as posted. INFORMATIONAL ITEMS There were no informational items. CALL TO AUDIENCE Oro Valley resident Chris Collins spoke in support of the proposed Oro Valley Church of the Nazarene rezoning request. Oro Valley resident Karen Steinbronn voiced her concerns regarding the proposed Oro Valley Church of the Nazarene rezoning request. Oro Valley resident Ed Clary voiced his concerns regarding the proposed Oro Valley Church of the Nazarene rezoning request. Oro Valley resident David Deivert voiced his concerns regarding the proposed Oro Valley Church of the Nazarene rezoning request. Oro Valley resident Doug Dalby voiced his concerns regarding the proposed Oro Valley Church of the Nazarene rezoning request. PRESENTATIONS 1.Presentation by the Southern Arizona Arts & Cultural Alliance (SAACA) of the winners of the Oro Valley Photography Contest Executive Director of the Southern Arizona Arts and Cultural Alliance, Kate Maquez, presented item #1 and included the following: People 1st Place: Paul Richardson 2nd Place: Paul Richardson 5-18-22 Minutes, Town Council Regular and Study Session 2 3rd Place: Rhonda Royce Animals & Wildlife 1st Place: Melissa Harnish 2nd Place: Dianne Slotten 3rd Place: John Amato 2.Proclamation - Kids to Parks Day Mayor Winfield proclaimed May 21, 2022 as Kids to Parks Day in Oro Valley. Oro Valley Parks and Recreation Director Kristy Diaz-Trahan accepted the proclamation. 3.Presentation and possible discussion of the Town's FY 21/22 Financial Update through March 2022 Chief Financial Officer David Gephart presented the Town's Fiscal Year 21/22 Financial Update through March 2022 and included the following: General Fund Revenues General Fund Expenditures General Fund Highway Fund Revenues Highway Fund Expenditures Highway Fund Community Center Fund Revenues Community Center Fund Expenditures Community Center Fund Discussion ensued amongst Council and Staff regarding Presentation item #3. CONSENT AGENDA A.Minutes - May 4, 2022 B.Resolution No. (R)22-19, approving the Agenda Committee assignment for the period of June 1, 2022 to August 31, 2022 C.Resolution No. (R)22-20, adopting the Public Safety Personnel Retirement System (PSPRS) pension funding policy and accepting the Town's share of assets and liabilities under the PSPRS actuarial valuation report D.Resolution No. (R)22-21, authorizing and approving an amendment to an Intergovernmental Agreement (IGA) between the Regional Transportation Authority (RTA) of Pima County and the Town of Oro Valley, to increase the amount of funding provided by the RTA for construction of improvements to Oracle Road wildlife fencing Motion by Mayor Joseph C. Winfield, seconded by Councilmember Josh Nicolson to approve Consent items (A) through (D). Vote: 7 - 0 Carried 5-18-22 Minutes, Town Council Regular and Study Session 3 Vote: 7 - 0 Carried REGULAR AGENDA 1.RESOLUTION NO. (R)22-23, APPROVING A MEMORANDUM OF UNDERSTANDING BETWEEN PUBLIC SAFETY EMPLOYEES AND THE TOWN OF ORO VALLEY PURSUANT TO CHAPTER 4, SECTION 4-1-8 OF THE TOWN CODE, PUBLIC SAFETY EMPLOYEE RELATIONS AND PROCESSES, SUCH AGREEMENT TO BE EFFECTIVE STARTING ON JUNE 19, 2022 AND ENDING JUNE 30, 2025, AND AUTHORIZING T E TOWN MANAGER AND HER DESIGNEES TO ASSIGN RETROACTIVE PAY TO JANUARY 2, 2022 Assistant Town Manager Chris Cornelison presented Regular Agenda item #1. The following individuals spoke in support of item #1. Oro Valley resident Janae Toone Oro Valley resident Richard Tracy President and CEO of the Oro Valley Chamber of Commerce and Oro Valley resident Dave Perry President of the Oro Valley Police Officers Association Kristopher Knapp Discussion ensued amongst Council and staff regarding Regular Agenda item #1. Motion by Councilmember Steve Solomon, seconded by Councilmember Harry Greene to approve (R)22-23, approving a Memorandum of Understanding between Public Safety Employees and the Town of Oro Valley pursuant to Chapter 4, Section 4-1-8, of the Town Code, Public Safety Employee Relations and Processes, such agreement to be effective June 19, 2022 through June 30, 2025; and authorizing the Town Manager and her designees to assign retroactive pay from January 2, 2022. Discussion continued amongst Council and staff regarding item #1. Motion by Councilmember Steve Solomon, seconded by Councilmember Harry Greene to approve (R)22-23, approving a Memorandum of Understanding between Public Safety Employees and the Town of Oro Valley pursuant to Chapter 4, Section 4-1-8, of the Town Code, Public Safety Employee Relations and Processes, such agreement to be effective June 19, 2022 through June 30, 2025; and authorizing the Town Manager and her designees to assign retroactive pay from January 2, 2022. Vote: 7 - 0 Carried 2.DISCUSSION AND POSSIBLE ACTION TO SELECT THE NEW NAME OF THE FORMER VISTOSO GOLF COURSE PROPERTY AND ANNOUNCE THE WINNER OF THE NAMING CONTEST Mayor Winfield presented Regular Agenda item #2 and expressed gratitude to those who had participated in the acquisition and the naming contest for the former Vistoso Golf Course Property. Discussion ensued amongst Council and staff regarding item #2. Motion by Mayor Joseph C. Winfield, seconded by Councilmember Josh Nicolson to recommend that the Mayor and Town Council select the new name of the former Vistoso golf course property to be Vistoso Trails Nature Preserve. Discussion continued amongst Council and staff regarding item #2. Motion by Mayor Joseph C. Winfield, seconded by Councilmember Josh Nicolson to recommend that 5-18-22 Minutes, Town Council Regular and Study Session 4 Motion by Mayor Joseph C. Winfield, seconded by Councilmember Josh Nicolson to recommend that the Mayor and Town Council select the new name of the former Vistoso golf course property to be Vistoso Trails Nature Preserve. Vote: 6 - 1 Carried OPPOSED: Councilmember Joyce Jones-Ivey Mike Ford with The Conservation Fund spoke regarding item #2. 3.DISCUSSION AND POSSIBLE ACTION REGARDING A PROPOSED ZONING CODE AMENDMENT TO THE SIGN STANDARDS FOR BANNER AND WINDOW SIGNS (SECTION 28) AND OTHER RELATED SECTIONS INCLUDING DEFINITIONS (CHAPTER 31) A. RESOLUTION NO. (R)22-22, DECLARING THE PROPOSED ZONING AMENDMENTS TO THE ORO VALLEY ZONING CODE RELATED TO THE BANNER AND WINDOW SIGN STANDARDS IN ATTACHMENT 1 AND FILED WITH THE TOWN CLERK, A PUBLIC RECORD B. PUBLIC HEARING: ORDINANCE NO. (O)22-06 AMENDING BANNER SIGNS SECTION 28.6.B.1, WINDOW SIGNS SECTION 28.5.14, DEFINITIONS SECTION 28.4 AND CHAPTER 31, AND OTHER RELATED SECTIONS (ATTACHMENT 2) Motion by Mayor Joseph C. Winfield, seconded by Vice-Mayor Melanie Barrett to approve Resolution No. (R)22-22, declaring the proposed amendments to the Oro Valley zoning code related to the banner and window sign standards in Attachment 1 and filed with the Town Clerk, a public record. Vote: 7 - 0 Carried Senior Planning Technician Patty Hayes presented item #3B and included the following; Purpose - Address New Items Banner Signs Banner Photos to Satisfy Attachment 4 Condition Window Sign Safety Summary Mayor Winfield opened the public hearing. The following individual spoke in support of item #3B. President and CEO of the Oro Valley Chamber of Commerce and Oro Valley resident Dave Perry Mayor Winfield closed the public hearing. Discussion ensued amongst Council and staff regarding agenda item #3B. Councilmember Greene requested that Council receive a staff report next quarter, outlining any issues or concerns that had occurred as a direct result of the code amendment changes pertaining to banners and window signs. Councilmember Greene left the meeting at 7:53 p.m. Motion by Vice-Mayor Melanie Barrett, seconded by Councilmember Steve Solomon to approve 5-18-22 Minutes, Town Council Regular and Study Session 5 Motion by Vice-Mayor Melanie Barrett, seconded by Councilmember Steve Solomon to approve Ordinance No. (O)22-06, (Attachment 2), amending zoning standards for banner signs, window signs, definitions, and other sign related sections subject to the condition in Attachment 4, based on finding it is in compliance with the General Plan. Attachment 4, Condition of approval; The Planning and Zoning Administrator is delegated the authority to supplement the code with photographic examples of banners and A-frame signs that illustrate compliance with the following standard: The sign appearance shall be professional, neat and legible. Vote: 6 - 0 Carried Mayor Winfield recessed the meeting at 7:54 p.m. Mayor Winfield reconvened the meeting at 8:10 p.m. Councilmember Greene rejoined the meeting when it reconvened at 8:10 p.m. 4.UPDATE ON THE VIDEO RECORDING OF BOARD/COMMISSION MEETINGS AND OPTIONS FOR POTENTIAL DIGITAL INVOLVEMENT IN NEIGHBORHOOD MEETINGS Vice Mayor Barrett and Mayor Winfield requested item #4. Vice Mayor Barrett requested that staff provide an update regarding board/commission meetings and options for potential digital involvement in neighborhood meetings. Town Clerk Mike Standish provided an update regarding board/commission meetings. Community and Economic Development Director Paul Melcher provided an update on the status of options for potential digital involvement in neighborhood meetings. Mr. Melcher reported that he had recently been made aware of an existing Standard Operating Procedure (SOP) document regarding neighborhood meetings. Mr. Melcher requested time to review the SOP and then be able to return to Council at a future meeting date with options for potential digital involvement in neighborhood meetings. 5.DISCUSSION AND POSSIBLE ACTION REQUIRING ALL COST ESTIMATES FOR THE PROPOSED NARANJA PARK IMPROVEMENTS AND THEIR ANNUAL MAINTENANCE BE PRESENTED TO AND REVIEWED BY COUNCIL PRIOR TO ANY GROUND BREAKING FOR THOSE IMPROVEMENTS Councilmember Solomon and Councilmember Greene requested this agenda item. Councilmember Solomon clarified the reason for this request. Discussion ensued amongst Council and staff regarding item #5. Motion by Councilmember Steve Solomon, seconded by Councilmember Harry Greene to require all cost estimates for the proposed Naranja Park improvements and their annual maintenance expenses be presented to and reviewed by Council prior to any groundbreaking for those improvements. Discussion continued amongst Council and staff regarding item #5. Councilmember Solomon requested to amend the main motion to require all cost estimates for the proposed Naranja Park improvements and their annual maintenance expenses be presented to and reviewed by Council prior to any groundbreaking for those improvements excluding the design and 5-18-22 Minutes, Town Council Regular and Study Session 6 grading components as currently under contract. No second received. Councilmember Greene left the meeting at 8:38 p.m. Discussion continued amongst Council and staff regarding item #5. Vice Mayor Barrett requested to Call the Question, seconded by Councilmember Bohen. Motion by Councilmember Steve Solomon, seconded by Councilmember Harry Greene to require all cost estimates for the proposed Naranja Park improvements and their annual maintenance expenses be presented to and reviewed by Council prior to any groundbreaking for those improvements with the amendment that excludes the design and grading work. Vote: 1 - 5 Failed OPPOSED: Mayor Joseph C. Winfield Vice-Mayor Melanie Barrett Councilmember Tim Bohen Councilmember Joyce Jones-Ivey Councilmember Josh Nicolson ABSENT: Councilmember Greene 6.DISCUSSION AND POSSIBLE ACTION REGARDING THE EXTENSION OF THE TOWN'S RECLAIMED WATER PIPELINE AND PRIORITIZATION OF THIS PROJECT Councilmember Solomon and Councilmember Greene requested this agenda item. Councilmember Solomon clarified the reason for his request. Motion by Councilmember Steve Solomon, to request that staff study the possibility of extending our reclaimed water line and report back at the June 1, 2022 Council meeting for discussion and possible action on this item. No second was received. Motion failed as a result of no second. Discussion continued amongst Council regarding item #6. Councilmember Greene returned to the meeting at 8:43 p.m. FUTURE AGENDA ITEMS Councilmember Solomon requested a future agenda item be added for discussion and possible action regarding the repayment of a 2015 Community Center loan from the General Fund. Seconded by Councilmember Bohen. Councilmember Solomon requested a future agenda item be added to the June 1st Council Regular Session meeting for discussion and possible action regarding the need, schedule, and cost of a new police station, Seconded by Councilmember Greene. ADJOURNMENT OF THE REGULAR SESSION 5-18-22 Minutes, Town Council Regular and Study Session 7 Motion by Mayor Joseph C. Winfield, seconded by Vice-Mayor Melanie Barrett to adjourn the Regular Session at 8:44 p.m. Vote: 7 - 0 Carried STUDY SESSION CALL TO ORDER Mayor Winfield called the Study Session to order at 8:45 p.m. STUDY SESSION AGENDA 1.REVIEW AND DISCUSSION OF AN UPDATED CONCEPT FOR THE ORO VALLEY MARKETPLACE Keri Silvyn with Lazarus & Silvyn, P.C., representing the applicant, presented Study Session item #1, which included two updated site plan proposals for review and discussion. Discussion ensued amongst Council, staff, and Ms. Silvyn regarding the updated site plan proposals. The applicant will return to Council, at a future meeting, with an updated site plan proposal that represents the Council's direction as discussed during the Study Session presentation. ADJOURNMENT OF THE STUDY SESSION Mayor Winfield adjourned the Study Session at 9:16 p.m. _____________________________________ Michelle Stine, MMC Deputy Town Clerk I hereby certify that the foregoing minutes are a true and correct copy of the minutes of the regular session of the Town of Oro Valley Council of Oro Valley, Arizona held on the 18th day of May 2022. I further certify that the meeting was duly called and held and that a quorum was present. _________________________________________ Michael Standish, CMC Town Clerk 5-18-22 Minutes, Town Council Regular and Study Session 8 Town Council Regular Session B. Meeting Date:06/01/2022 Submitted By:Karl Shaddock, Finance Department:Finance SUBJECT: Resolution No. (R)22-24, approving an Intergovernmental Agreement (IGA) between the Town of Oro Valley and Pima County for animal control services RECOMMENDATION: Staff recommends approval. EXECUTIVE SUMMARY: The current intergovernmental agreement (IGA) for the provision of animal control services (Attachment 2) between the Town of Oro Valley and Pima County ends June 30, 2022. The proposed IGA for animal control services (Attachment 3) would become effective July 1, 2022 and go through June 30, 2025. The proposed IGA for animal control services updates the funding model, which zeroes out the net cost the Town of Oro Valley currently pays Pima County without a change in current services or coverage area. BACKGROUND OR DETAILED INFORMATION: The Town of Oro Valley has authorized the continuous provision of animal care and enforcement services in Oro Valley by Pima County through the use of Intergovernmental Agreements (IGAs). In these agreements, Pima County is specifically delegated the ability to enforce Oro Valley Town Code Chapter 18 Animal Control Code as it relates to domestic companion animals and inclusive of rabies control and vaccination, dog licensing, leash laws, and sheltering and humane care of domestic animals. Part of the cost has been offset by animal license, adoption and other fees that Pima County has collected on behalf of the Town of Oro Valley. Over the years, as a result of regular and ongoing communications between participating jurisdictions and Pima Animal Care Center (PACC), a joint vision regarding the level of care provided and a commitment to an operational model focused on care, foster and adoption has consolidated. To further this regional model of care, Pima County has proposed an updated funding model for the provision of companion animal sheltering, veterinary, enforcement and related animal care services. This funding model would decrease the funding provided to the County for PACC by jurisdictional partners, such as Oro Valley, to the amount collected in licensing fees. Under the proposed IGA, Pima County would retain licensing fee revenues to offset licensing and related enforcement expenses. The remaining balance of services including sheltering, veterinary care and community programming would be funded through a direct general fund appropriation by Pima County. The table below notes the actual costs billed to Oro Valley (which is paid to the County) and the License Fees (collected by the County and paid to Oro Valley) for Fiscal Year 2020/21, the most recent full year of implementation under the current IGA. Table 1. Summary of PACC IGA Financial Status, FY 20/21 REVENUES FY 20/21 License Fees (Payments Made by Pima County)92,364.00 TOTAL REVENUES 92,364.00 EXPENDITURES FY 20/21 Billed Costs (Payments Made to Pima County)139,337.00 TOTAL EXPENDITURES 139,337.00 DIFFERENCE (Town Net Cost)$46,973.00 Using FY 20/21 actuals, the budgetary impact of the updated IGA for Oro Valley would be a decrease in revenues by approximately $93,000 and a corresponding decrease in expenditures of approximately $140,000. The net impact on the fund balance is estimated to be an increase of approximately $47,000. This change has been included in the updated FY22/23 Tentative Budget adoption. Approval of the proposed IGA (Attachment 3) will authorize the continued provision of animal control services in Oro Valley by Pima County relating to licensing, enforcement of leash law ordinances, biting dog ordinances, animal cruelty ordinances and the provision of impoundment and sheltering of strays. FISCAL IMPACT: Under the proposed IGA, the Town will forego payment of license fees from Pima County of approximately $95,000, annually. In doing so, the Town will no longer pay Pima County an annual fee for animal control services. Under the current IGA, the annual fee would be approximately $144,966 for FY 22/23. The proposed IGA will result in annual savings of approximately $45,000 - $50,000 for the Town of Oro Valley. SUGGESTED MOTION: I MOVE to APPROVE Resolution No. (R)22-24, approving an intergovernmental agreement for the continued provision of animal control services between the Town of Oro Valley and Pima County. Attachments (R)22-24 PACC Resolution 2019 PACC IGA 2022 PACC IGA C:\Users\DESTIN~2\AppData\Local\Temp\BCL Technologies\easyPDF 8\@BCL@500F7CF8\@BCL@500F7CF8.doc RESOLUTION NO. (R)22-24 A RESOLUTION OF THE MAYOR AND COUNCIL OF THE TOWN OF ORO VALLEY, ARIZONA, AUTHORIZING AND APPROVING AN INTERGOVERNMENTAL AGREEMENT BETWEEN THE TOWN OF ORO VALLEY AND PIMA COUNTY FOR ANIMAL CONTROL SERVICES; AND DIRECTING THE TOWN MANAGER, TOWN CLERK, TOWN LEGAL SERVICES DIRECTOR, OR THEIR DULY AUTHORIZED OFFICERS AND AGENTS TO TAKE ALL STEPS NECESSARY TO CARY OUT THE PURPOSES AND INTENT OF THIS RESOLUTION WHEREAS, pursuant to A.R.S. § 11-952, the Town of Oro Valley (the Town) is authorized to enter into or renew agreements for joint and cooperative action with other public agencies and WHEREAS, the Town is authorized to establish and maintain the Oro Valley Police Department, pursuant to A.R.S. § 9-240 (B)(12); and WHEREAS, on July 19, 2019, the Mayor and Council approved Resolution No. (R) 19- 32 authorizing an Intergovernmental Agreement (IGA) between the Town and Pima County Animal Control Services for a three-year period which terminates on June 30, 2022; and WHEREAS, the Town and Pima County desire to enter the new IGA for animal control services for an additional three (3) years, beginning July 1, 2022 and ending on June 30, 2025; and WHEREAS, it is in the best interest of the Town to approve the IGA between the Town and Pima County in order to continue providing enforcement of leash law ordinances, biting dog ordinances, animal cruelty ordinances and to provide for the impoundment and sheltering of stray animals within the Town’s boundaries. NOW, THEREFORE, BE IT RESOLVED by the Mayor and Council of the Town of Oro Valley, that: SECTION 1. The Intergovernmental Agreement between the Town of Oro Valley and Pima County for animal control services, attached hereto as Exhibit “A” and incorporated herein by this reference, is hereby authorized and approved. SECTION 2. The Mayor, Chief of Police and other administrative officials of the Town of Oro Valley are hereby authorized to take such steps as necessary to execute and implement the terms of the Intergovernmental Agreement. C:\Users\DESTIN~2\AppData\Local\Temp\BCL Technologies\easyPDF 8\@BCL@500F7CF8\@BCL@500F7CF8.doc SECTION 3. The Town Manager, Town Clerk, Town Legal Services Director, or their duly authorized officers and agents to take all steps necessary to carry out the purposes and intent of this resolution. SECTION 4. If any section, subsection, sentence, clause, phrase or portion of this Resolution, or the Intergovernmental Agreement attached hereto as Exhibit “A”, is for any reason held to be invalid or unconstitutional by the decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions thereof. SECTION 5. All Oro Valley Resolutions, or Motions and parts of Resolutions or Motions of the Council in conflict with the provisions of this Resolution are hereby repealed. PASSED AND ADOPTED by the Mayor and Town Council of the Town of Oro Valley, Arizona, this 1st day of June, 2022. TOWN OF ORO VALLEY Joseph C. Winfield, Mayor ATTEST: APPROVED AS TO FORM: Michael Standish, Town Clerk Tobin Sidles, Legal Services Director Date: Date: C:\Users\DESTIN~2\AppData\Local\Temp\BCL Technologies\easyPDF 8\@BCL@500F7CF8\@BCL@500F7CF8.doc EXHIBIT “A” Contract No:elw-/'/e-a-o0/Adment No: Thi.number must appear on all correspondence and documents pert g to this contract INTERGOVERNMENTAL AGREEMENT BETWEEN PIMA COUNTY AND THE TOWN OF ORO VALLEY FOR ANIMAL CARE AND ENFORCEMENT SERVICES This Intergovernmental Agreement(hereinafter"Agreement")is entered into pursuant to A.R.S.§ 11-952 by and between the Town of Oro Valley(hereinafter"the Town"),a body politic and corporate of the State of Arizona,and Pima County(hereinafter"the County"), a political subdivision of the State of Arizona. RECITALS WHEREAS,the Town desires to enter into an agreement with the County for the provision of animal control services within the geographical jurisdiction of the Town relating to enforcement of the Oro Valley Town Code Chapter 18 Animal Control Code(hereinafter Town Animal Control Ordinances),as amended from time to time,and having to do with rabies vaccination and dog licensing requirements,dog license fees,leash laws,sheltering and humane care of surrendered and stray animals,animal cruelty and neglect,dangerous animals,diseased animals,biting animals, animal waste,and excessive noise;and WHEREAS,pursuant to A.R.S.§11-1013,the County operates the Pima Animal Care Center for the intake and sheltering of stray and surrendered animals;and WHEREAS,the County has the experience and expertise to enforce Town Animal Control Ordinances,and is engaged in certain activities relating to vaccination and licensing activities, rabies control,stray and surrendered animal intake;and WHEREAS,the Town and the County may contract for services and enter into agreements with one another for joint and cooperative action pursuant to A.R.S.§11-951,et seq. NOW,THEREFORE,the Town of Oro Valley and the County,pursuant to the above and in consideration of the matters and things set forth herein,do mutually agree as follows: AGREEMENT 1.0 Purpose.The purpose of this Agreement is to set forth the responsibilities of the parties for the provision of animal control services within the geographical jurisdiction of the Town relating to enforcement of the Town Animal Control Ordinances,as amended from time to time,and having to do with rabies vaccination and dog licensing requirements,dog license fees,leash laws,sheltering and humane care of surrendered and stray animals,animal cruelty and neglect, dangerous animals, diseased animals, biting animals, animal waste, and excessive noise. 2.0 Term/Effective Date. This Agreement is effective for three(3)years from July 1,2019 through June 30,2022.The Parties shall have the option to extend this Agreement for up to IGA Pima County and Oro Valley for PACC Services Page 1 of 10 one(1)additional two(2)year period or any portion thereof.Any modification,termination, or extension shall be made by formal written amendment executed by the Parties. 3.0 Scope of Services. 3.1 The County Enforcement Agent,herein before designated by the Pima County Board of Supervisors to be Pima Animal Care Center(PACC),and all employees thereunder, shall be referred to as"Town Enforcement Agents"for the purpose of this Agreement. The Town Enforcement Agents shall,but are not limited to: 3.1.1 Administer and enforce the provisions of the Town Animal Control Ordinances and State and County law, and all services related thereunder, including amendments to said laws as may be passed from time to time. 3.1.2 Pursuant to this Agreement,be granted limited police powers necessary from time to time to carry out duties imposed by this Agreement,together with any and all such further powers as may be necessary for such agents to engage in vaccination, licensing, seizure of stray, dangerous, neglected, diseased or abused animals, and other activities arising from their duties as Town Enforcement Agents. 3.1.3 Collect such fees as may be rendered applicable by the Town Animal Control Ordinances. All fees collected by the Town Enforcement Agents as a result of this Agreement shall be retained by Town. 3.2 The Oro Valley Town Attorney shall prosecute and the Oro Valley Magistrate Court shall handle criminal and civil matters arising out of the enforcement of the Town Animal Control Ordinances pursuant to this Agreement. All fines collected by the Court as a result of enforcement of the Town Animal Control Ordinances shall be retained by Town. 3.3 Field Enforcement Within Jurisdiction 3.3.1 Complete field services shall be provided from 6:00 a.m.to 9:00 p.m.by two full shifts of Animal Care Officers operating seven days per week,holidays included. Emergency enforcement response services will be provided by a minimum of one Animal Care Officer from 9:00 p.m.to 6:00 a.m.daily, holidays included. 3.3.2 The County shall provide staffing levels,administrative support,materials, supplies,and equipment sufficient to ensure the provision of animal control services in the Town. 3.3.3 Dead animal pickup services shall be provided during one shift operating seven days per week,holidays included. IGA Pima County and Oro Valley for PACC Services Page 2 of 10 3.4 Licensing of Animals 3.4.1 The County shall provide staffing levels,administrative support,materials, supplies,and equipment sufficient to ensure the provision of licensing services in the Town. 3.4.2 The Pima Animal Care Center shall maximize the number of dogs vaccinated and licensed within the geographical jurisdiction of the Town.Dog vaccination requirements and spay/neutering information shall be distributed to all owners of licensed dogs and other interested parties upon request. 3.4.3 License applications shall be processed and returned,electronically or via mail, to the applicant within ten(10)working days. A licensing reminder program shall be conducted to improve compliance with license regulations. 3.4.4 Should Pima Animal Care Center outsource the licensing functions to take advantage of online registration via the Internet,Pima Animal Care Center shall ensure that day-to-day licensing and registration operations, including telephone services,remain equivalent to those currently provided by the Center. 3.5 Pima Animal Care Center Shelter 3.5.1 The County shall staff,equip,furnish,support and maintain the Pima Animal Care Center,and provide all facilities and vehicles,including replacements, maintenance,repair,gasoline,and oil as necessary for the operation of the Pima Animal Care Center. 3.5.2 Humane treatment of all animals housed at the Pima Animal Care Center shall be provided,including provision of adequate food,water,shelter,and timely and appropriate veterinary care in accordance with nationally accepted shelter care standards. The Pima Animal Care Center shall develop a strategy and procedures to further reduce euthanasia of saveable animals through effective adoption and rescue programs.If necessary,animals shall be euthanized in such a manner that provides for humane treatment of the animal and in accordance with the standards set forth by the American Veterinary Medical Association Guidelines for the Euthanasia of Animals:2013 Edition. Effort shall be made to decrease shelter intake through but not limited to owner education and community wide spay/neuter programs. 3.5.3 Animal Welfare Community Outreach.The Pima Animal Care Center shall refine and increase outreach and educational efforts at schools,neighborhood association meetings,etc.in order to increase public awareness of health and safety issues related to animals,to promote responsible ownership/companion animal guardianship,including compliance with licensing and other Town Animal Control Codes,and to disseminate information regarding vaccination clinics,spaying and neutering,and care of animals. IGA Pima County and Oro Valley for PACC Services Page 3 of 10 4.0 Payment. 4.1 The Town will pay the County$136,605 for Fiscal Year 2019-2020,$139,337 for Fiscal Year 2020-2021,and$142,124 for Fiscal Year 2021-2022(the"Service Charge"),to be billed monthly in 12 equal amounts. 4.2 If this Agreement is extended pursuant to Section 2.0,the Service Charge will continue to increase by 2.0%each fiscal year,except that if there is a variance of 10% or more between the Service Charge and actual costs incurred by County in any fiscal year for services provided under this Agreement,either party may request that the Service Charge for future years be renegotiated. 4.3 All payments received from constituents on behalf of the Town will be deposited regularly with the Pima County Treasurer's Office into a separate account.The County will submit a statement to the Town monthly for actual costs incurred on behalf of the Town,and will instruct the Pima County Treasurer's Office to remit to Town all revenues collected on behalf of the Town on a monthly basis. Any interest earned on the Account shall be credited to the Town. 5.0 Reporting. 5.1 The County will provide the Town the following information: 5.1.1 Monthly Reporting: 5.1.1.1 Monthly'Data Summary and Animal Services Report'relecting total PACC statistical volumes 5.1.2 Bi-Annual Reporting: 5.1.2.1 By jurisdiction, a statement of period-end and year-to-date financials 5.1.2.2 PACC Statistical Volumes by Jurisdiction: 5.1.2.2.1 Shelter Statistics:Number of animals processed at the shelter,number of animals adopted and/or fostered,; number and type of education and outreach activities in the community 5.1.2.2.2 Veterinary Statistics: Number and type of surgeries performed on PACC pets and at PACC, number of surgeries performed in the community, number of animal spayed and neutered,number of animals that were euthanized or died in the shelter 5.1.2.2.3 Enforcement Statistics:Number of calls that resulted in a response from PACC, number and types of dog licenses issued,Dates of dispatched enforcement calls, IGA Pima County and Oro Valley for PACC Services Page 4 of 10 Activity types of dispatched enforcement calls (e.g., leash law,stray) 5.1.2.2.4 Licensing Statistics:Types of licenses issued,Dates of issuance of licenses,Payment received for each license issued,and associated data extract containing detailed information regarding records of requests and revenue attributed to the Town. 5.1.2.3 The Town will designate a representative to attend bi-annual meetings with representatives from Pima County Administration, Pima Animal Care Center and each jurisdiction with which the County has an Intergovernmental Agreement to provide PACC services. 5.1.3 Fiscal Year End:The County shall prepare a final financial report for each Fiscal Year that includes the following information: 5.1.3.1 By jurisdiction, a statement of period-end and year-to-end financials. 5.1.3.2.PACC Statistical Volumes by Jurisdiction Year End Report: 5.1.3.2.1 Shelter Statistics:Number of animals processed at the shelter,number of animals adopted and/or fostered,; number and type of education and outreach activities in the community 5.1.3.2.2 Veterinary Statistics: Number and type of surgeries performed on PACC pets at PACC,number of surgeries performed in the community,number of animal spayed and neutered,number of animals that were euthanized or died in the shelter 5.1.3.2.3 Enforcement Statistics:Number of calls that resulted in a response from PACC, number and types of dog licenses issued,Dates of dispatched enforcement calls, Activity types of dispatched enforcement calls (e.g., leash law,stray) 5.1.3.2.4 Licensing Statistics:Types of licenses issued,Dates of issuance of licenses,Payment received for each license issued,and associated data extract containing detailed information regarding records of requests and revenue attributed to the Town. 5.1.3.3 Other ad-hoc reporting determined necessary by either Town or County 6.0 Legal Jurisdiction. Nothing in this Agreement shall be construed as either limiting or extending the legal jurisdiction of the Town or the County. This Agreement and all IGA Pima County and Oro Valley for PACC Services Page 5 of 10 obligations upon the Town or County arising therefrom shall be subject to any limitations of budget law or other applicable local law or regulations. 7.0 Audit. The parties shall have the right to audit the books of the other relating to the Pima Animal Care Center and to the collection of licensing fees and other fines and fees. 8.0 Termination. Either party may terminate this Agreement by giving written notice to the other party not less than six(6)months prior to the termination date. In the event of termination,each party shall be liable for its proportionate share of the costs and expenses incurred or arising out of performance of activities required by this Agreement occurring prior to the termination date. Termination of this Agreement shall not relieve either party from liabilities or costs already incurred under this Agreement. 9.0 Assignment of Rights. Neither party to this Agreement shall assign its rights under this Agreement to any other party without written permission from the other party to this Agreement. 10.0 Construction of Agreement. 10.1 Construction and interpretation. All provisions of this Agreement shall be construed to be consistent with the intention of the parties as expressed in the Recitals hereof. 10.2 Captions and headings.The headings used in this Agreement are for convenience only and are not intended to affect the meaning of any provision of this Agreement. 11.0 Conflict of Interest.This Agreement is subject to the provisions of A.R.S.§38-511,the pertinent provisions of which are incorporated herein by reference. 12.0 Severability.In the event that any provision of this Agreement or the application thereof is declared invalid or void by statute or judicial decision,such action shall have no effect on other provisions and their application,which can be given effect without the invalid or void provision or application,and to this extent the provisions of the Agreement are severable. In the event that any provision of this Agreement is declared invalid or void,the parties agree to meet promptly upon request of the other party in an attempt to reach an agreement on a substitute provision. 13.0 No Joint Venture. It is not intended by this Agreement to,and nothing contained in this Agreement shall be construed to,create any partnership,joint venture,or employment relationship between the parties or create any employer-employee relationship between the Town and any County employees or between the County and any Town employees.Neither party shall be liable for any debts,accounts,obligations or other liabilities whatsoever of the other,including(without limitation)the other party's obligation to withhold Social Security and income taxes for itself or any of its employees. 14.0 No Third Party Beneficiaries. Nothing in the provisions of this Agreement is intended to create duties or obligations to or rights in third parties not parties to this Agreement or to affect the legal liability of either party to the Agreement by imposing any standard of care different from the standard of care imposed by law. IGA Pima County and Oro Valley for PACC Services Page 6 of 10 15.0 Compliance with Laws.The parties shall comply with all applicable federal,state,and local laws, rules, regulations, standards, and executive orders, without limitation to those designated within this Agreement. 15.1 Anti-Discrimination. The provisions of A.R.S. § 41-1463 and Executive Order Number 2009-09 issued by the Governor of the State of Arizona are incorporated by this reference as a part of this Agreement. 15.2 Americans with Disabilities Act.This Agreement is subject to all applicable provisions of the Americans with Disabilities Act(Public Law 101-336,42 U.S.C.12101-12213) and all applicable federal regulations under the Act,including 28 CFR Parts 35 and 36. 16.0 Workers'Compensation.An employee of either party shall be deemed to be an"employee" ofboth public agencies,while performing pursuant to this Agreement,for purposes of A.R.S. 23-1022 and the Arizona Workers'Compensation laws. The primary employer shall be solely liable for any workers'compensation benefits,which may accrue. Each party shall post a notice pursuant to the provisions of A.R.S.§23-906 in substantially the following form: 16.1 All employees are hereby further notified that they maybe required to work under the jurisdiction or control or within the jurisdictional boundaries of another public agency,pursuant to an intergovernmental agreement or contract,and under such circumstances they are deemed by the laws of Arizona to be employees of both public agencies for the purposes of workers'compensation. 17.0 Non-Waiver.The failure of either Party to insist upon the complete performance of any of the terms and provisions of this Agreement to be performed on the part of the other,or to take any action permitted as a result thereof,shall not constitute a waiver or relinquishment of the right to insist upon full and complete performance of the same,or any other covenant or condition,either in the past or in the future. The acceptance by either Party of sums less than may be due and owing it at any time shall not constitute an accord and satisfaction. 18.0 Force Majeure. A party shall not be in default under this Agreement if it does not fulfill any of its obligations under this Agreement because it is prevented or delayed in doing so by reason of uncontrollable forces.The term"uncontrollable forces"shall mean,for the purpose of this Agreement,any cause beyond the control of the party affected,including but not limited to,failure of facilities,breakage or accident to machinery or transmission facilities, weather conditions,flood,earthquake,lightning,fire,epidemic,war,riot,civil disturbance, sabotage,strike,lockout,labor dispute,boycott,material or energy shortage,casualty loss, acts of God,or action or non-action by governmental bodies in approving or failing to act upon applications for approvals or permits which are not due to the negligence or willful action of the parties,order of any government officer or court(excluding orders promulgated by the parties themselves),and declared local,state,or national emergency,which,by exercise of due diligence and foresight,such party could not reasonably have been expected to avoid. Either party rendered unable to fulfill any obligations by reason of uncontrollable forces shall exercise due diligence to remove such inability with all reasonable dispatch. IGA Pima County and Oro Valley for PACC Services Page 7 of 10 19.0 Notification.All notices or demands upon any party to this Agreement shall be in writing, unless other forms are designated elsewhere,and shall be delivered in person or sent by mail addressed as follows: Pima County: Town of Oro Valley: Francisco Garcia,MD,MPH Town Manager Pima County Assistant County Administrator 11000 North La Canada Drive 130 W.Congress Oro Valley,Arizona 85737 Tucson,Arizona 85701 Kristen Hassen-Auerbach Assistant Town Manager Pima Animal Care Center Director 11000 North La Canada Drive 4000 N.Silverbell Road Oro Valley,Arizona 85737 Tucson,Arizona 85745 20.0 Remedies.Either party may pursue any remedies provided by law for the breach of this Agreement.No right or remedy is intended to be exclusive of any other right or remedy and each shall be cumulative and in addition to any other right or remedy existing at law or in equity or by virtue of this Agreement. 21.0 Indemnification. Each party(as"indemnitor")agrees to indemnify,defend and hold harmless,the other party(as"indemnitee")from and against any and all claims,losses, liability,costs or expenses(including reasonable attorney's fees)(hereinafter collectively referred to as"claims")arising out of the bodily injury of any person(including death)or property damage,but only to the extent that such claims,which result in vicarious/derivative liability to the indemnitee,and are caused by the act,omission,negligence,misconduct,or other fault of the indemnitor,its officers,officials,agents,employees or volunteers. 22.0 Counterparts.This Agreement maybe executed in two or more counterparts,each of which shall be deemed an original,but all of which together shall constitute one and the same instrument. The signature pages from one or more counterpart may be removed from such counterpart and attached to a single instrument. 23.0 Legal Arizona Workers Act. 23.1 Town hereby warrants that it will at all times during the term of this Contract comply with all federal immigration laws applicable to Town's employment of its employees, and with the requirements of A.R.S.§23-214(A)(together the"State and Federal Immigration Laws").Town shall further ensure that each subcontractor who performs any work for Town under this Contract likewise complies with the State and Federal Immigration Laws. 23.2 County shall have the right at any time to inspect the books and records of Town and any subcontractor in order to verify such party's compliance with the State and Federal Immigration Laws. 23.3 Any breach of Town's or any subcontractor's warranty of compliance with the State IGA Pima County and Oro Valley for PACC Services Page 8 of 10 and Federal Immigration Laws,or of any other provision of this section,shall be deemed to be a material breach of this Contract subjecting Town to penalties up to and including suspension or termination of this Contract.If the breach is by a subcontractor, and the subcontract is suspended or terminated as a result,Town shall be required to take such steps as may be necessary to either self-perform the services that would have been provided under the subcontract or retain a replacement subcontractor,as soon as possible so as not to delay project completion. 23.4 Town shall advise each subcontractor of County's rights,and the subcontractor's obligations, under this Article by including a provision in each subcontract substantially in the following form: Subcontractor hereby warrants that it will at all times during the term of this Contract comply with all federal immigration laws applicable to Subcontractor's employees,and with the requirements of A.R.S.§23-214(A).Subcontractor further agrees that County may inspect the Subcontractor's books and records to insure that Subcontractor is in compliance with these requirements. Any breach of this paragraph by Subcontractor will be deemed to be a material breach of this Contract subjecting Subcontractor to penalties up to and including suspension or termination of this contract." 24.0 Entire agreement. This instrument constitutes the entire agreement between the parties pertaining to the subject matter hereof,and all prior or contemporaneous agreements and understandings,oral or written,are hereby superseded and merged herein. Any exhibits to this Agreement are incorporated herein by this reference. IGA Pima County and Oro Valley for PACC Services Page 9 of 10 IN WITNESS WHEREOF,the County has caused this Agreement to be executed by the Pima County Board of Supervisors,as attested to by the Clerk of the Board,and the Town of Oro Valley has caused this Agreement to be executed by the Mayor of the Town of Oro Valley,upon resolution of the Mayor and Council,as attested to by the Town Clerk. PIMA CO NTY: TOWN OF ORO VALLEY: AO1P AU6 062019 C air,Board of Sup- ors Date Joseph C.Winfield, Mayor Date ATTEST ATTEST AU6 0 6 2019 Cler of the Board Date Michael Standish,Town Clerk Date P'ROVED AS TO CONTENT a k Depa designee Date ATTORNEY CERTIFICATION The foregoing Agreement between Pima County and the Town of Oro Valley has been reviewed pursuant to A.R.S.§11-952 by the undersigned who have determined that it is in proper form and is within the powers and authority granted under the laws of the State of Arizona to those t,e Agreement. Akb 7/is/li Depu y County Attorney Date Tobin Sidles,Legal Services Director Date IGA Pima County and Oro Valley for PACC Services Page 10 of 10 IN WITNESS WHEREOF,the County has caused this Agreement to be executed by the Pima County Board of Supervisors,as attested to by the Clerk of the Board,and the Town of Oro Valley has caused this Agreement to be executed by the Mayor of the Town of Oro Valley,upon resolution of the Mayor and Council,as attested to by the Town Clerk. PIMA COUNTY: TOWN OF ORO VALLEY: 772 Chair,Board of Supervisors Date To n Mayor Da e ATTEST ATTEST 7/d5 '9 Clerk of the Board Date Town Clerk Date APPROVED AS TO CONTENT 00/Department Direc or or designee Date ATTORNEY CERTIFICATION The foregoing Agreement between Pima County and the Town of Oro Valley has been reviewed pursuant to A.R.S.§11-952 by the undersigned who have determined that it is in proper form and is within the powers and authority granted under the laws of the State of Arizona to those parties to the Agreement. t1 3_qh7U- Dep y County Attorney Date Town Attorney Date IGA Pima County and Oro Valley for PACC Services Page 10 of 10 . IGA Pima County and Tucson for PACC Services Page 1 of 9 INTERGOVERNMENTAL AGREEMENT BETWEEN PIMA COUNTY AND THE TOWN OF ORO VALLEY FOR ANIMAL CARE AND ENFORCEMENT SERVICES This Intergovernmental Agreement (hereinafter "Agreement") is entered into pursuant to A.R.S. § 11-952 by and between the Town of Oro Valley (hereinafter “the Town”), a body politic and corporate of the State of Arizona and Pima County (hereinafter “the County”), a political subdivision of the State of Arizona. RECITALS WHEREAS, the Town desires to enter into an agreement with the County for the provision of animal control services within the geographical jurisdiction of the Town relating to enforcement of the Oro Valley Town Code Chapter 18 Animal Control Code (hereinafter Town Animal Control Ordinances), as amended from time to time, and having to do with rabies vaccination and dog licensing requirements, dog license fees, leash laws, sheltering and humane care of domestic animals; and WHEREAS, pursuant to A.R.S. § 11-1013, the County operates the Pima Animal Care Center for the intake and sheltering of stray and surrendered animals; and WHEREAS, the County has the experience and expertise to enforce Town Animal Control Ordinances, and is engaged in certain activities relating to vaccination and licensing activities, rabies control, stray and surrendered animal intake; and WHEREAS, the County operates in accordance to the principals of community centered sheltering that priotizes shelter resources to those pets who are sick or injured, neglected or abused, or need specilized help in finding behaviorally compatible homes; engages the community to keep pets out of the shelter and in their homes; and provides community members support and resources to assist community cats, healthy, friendly loose dogs, pets with minor medical needs, and re- homing of owned pets; and WHEREAS, the Town and the County may contract for services and enter into agreements with one another for joint and cooperative action pursuant to A.R.S. § 11-951, et seq. NOW, THEREFORE, the Town of Oro Valley and the County, pursuant to the above and in consideration of the matters and things set forth herein, do mutually agree as follows: AGREEMENT 1.0 Purpose. The purpose of this Agreement is to set forth the responsibilities of the parties for the provision of animal control services within the geographical jurisdiction of the Town relating to enforcement of the Town Animal Control Ordinances, as amended from time to time, and having to do with rabies vaccination and dog licensing requirements, dog license fees, leash laws, sheltering and humane care of surrendered and stray animals, animal cruelty IGA Pima County and Town of Oro Valley for PACC Services Page 2 of 9 and neglect, dangerous animals, diseased animals, biting animals, animal waste, and excessive noise. 2.0 Term/Effective Date. This Agreement is effective for three (3) years from July 1, 2022 through June 30, 2025. The Parties shall have the option to extend this Agreement for up to one (1) additional two (2) year period or any portion thereof. Any modification, termination, or extension shall be made by formal written amendment executed by the Parties. 3.0 Scope of Services. 3.1 The County Enforcement Agent, herein before designated by the Pima County Board of Supervisors to be Pima Animal Care Center (PACC), and all employees thereunder, shall be referred to as “Town Enforcement Agents” for the purpose of this Agreement. The Town Enforcement Agents shall, but are not limited to: 3.1.1 Administer and enforce the provisions of the Town Animal Control Ordinances and State and County law with respect to domestic animals as defined in A.R.S. A.R.S. § 13-2910(H)(4), and all services related thereunder, including amendments to said laws as may be passed from time to time. 3.1.2 Pursuant to this Agreement, be granted limited police powers necessary from time to time to carry out duties imposed by this Agreement, together with any and all such further powers as may be necessary for such agents to engage in vaccination, licensing, seizure of stray, dangerous, neglected, diseased or abused animals, and other activities arising from their duties as Town Enforcement Agents. 3.1.3 Collect such fees as may be rendered applicable by the Town Animal Control Ordinances. All fees collected by the Town Enforcement Agents shall be retained by the County to defray its costs in providing licensing and related services under this Agreement. 3.2 The Oro Valley Town Attorney shall prosecute and the Oro Valley Magistrate Court shall handle criminal and civil matters arising out of the enforcement of the Town Animal Control Ordinances pursuant to this Agreement. All fines collected by the Court as a result of enforcement of the Town Animal Control Ordinances shall be retained by Town. 3.3 Field Enforcement Within Jurisdiction 3.3.1 Complete field services shall be provided from 6:00 a.m. to 9:00 p.m. by two full shifts of Animal Care Officers operating seven days per week, holidays included. Emergency enforcement response services will be provided by a minimum of one Animal Care Officer from 9:00 p.m. to 6:00 a.m. daily, holidays included. 3.3.2 The County shall provide staffing levels, administrative support, materials, supplies, and equipment sufficient to ensure the provision of animal control services in the Town. IGA Pima County and Town of Oro Valley for PACC Services Page 3 of 9 3.3.3 Dead animal pickup services shall be provided during one shift operating seven days per week, holidays included. 3.4 Licensing of Animals 3.4.1 The County shall provide staffing levels, administrative support, materials, supplies, and equipment sufficient to ensure the provision of licensing services in the Town. 3.4.2 The Pima Animal Care Center shall maximize the number of dogs vaccinated and licensed within the geographical jurisdiction of the Town. Dog vaccination requirements and spay/neutering information shall be distributed to all owners of licensed dogs and other interested parties upon request. 3.4.3 License applications shall be processed and returned, electronically or via mail, to the applicant within ten (10) working days. A licensing reminder program shall be conducted to improve compliance with license regulations. 3.4.4 Should Pima Animal Care Center outsource the licensing functions to take advantage of online registration via the Internet, Pima Animal Care Center shall ensure that day-to-day licensing and registration operations, including telephone services, remain equivalent to those currently provided by the Center. 3.5 Pima Animal Care Center Shelter 3.5.1 The County shall staff, equip, furnish, support and maintain the Pima Animal Care Center, and provide all facilities and vehicles, including replacements, maintenance, repair, gasoline, and oil as necessary for the operation of the Pima Animal Care Center. 3.5.2 Humane treatment of all animals housed at the Pima Animal Care Center shall be provided, including provision of adequate food, water, shelter, and timely and appropriate veterinary care in accordance with nationally accepted shelter care standards. The Pima Animal Care Center shall develop a strategy and procedures to further reduce euthanasia of savable animals through effective adoption and rescue programs. If necessary, animals shall be euthanized in such a manner that provides for humane treatment of the animal and in accordance with the standards set forth by the American Veterinary Medical Association Guidelines for the Euthanasia of Animals: 2013 Edition. Effort shall be made to decrease shelter intake through but not limited to owner education and community wide spay/neuter programs. 3.5.3 Animal Welfare Community Outreach. The Pima Animal Care Center shall refine and increase outreach and educational efforts at schools, neighborhood association meetings, etc. in order to increase public awareness of health and safety issues related to animals, to promote responsible ownership/companion animal guardianship, including compliance with licensing and other Town Animal Control Codes, and to disseminate information regarding vaccination clinics, spaying and neutering, and care of animals. IGA Pima County and Town of Oro Valley for PACC Services Page 4 of 9 4.0 Reporting. 4.1 The County will provide the Town the following information: 4.1.1 Bi-Annual Reporting: 4.1.1.1 PACC Statistical Volumes by Jurisdiction: 4.1.1.1.1 Shelter Statistics: Number of animals processed at the shelter, number of animals adopted and / or fostered,; number and type of education and outreach activities in the community 4.1.1.1.2 Veterinary Statistics: Number and type of surgeries performed on PACC pets and at PACC, number of surgeries performed in the community, number of animal spayed and neutered, number of animals that were euthanized or died in the shelter 4.1.1.1.3 Enforcement Statistics: Number of calls that resulted in a response from PACC, number and types of dog licenses issued, Dates of dispatched enforcement calls, Activity types of dispatched enforcement calls (e.g., leash law, stray) 4.1.1.1.4 Licensing Statistics: Types of licenses issued, Dates of issuance of licenses, Payment received for each license issued, and associated data extract containing detailed information regarding records of requests and revenue attributed to the Town. 4.1.1.2 The Town will designate a representative to attend bi-annual meetings with representatives from Pima County Administration, Pima Animal Care Center and each jurisdiction with which the County has an Intergovernmental Agreement to provide PACC services. 5.0 Legal Jurisdiction. Nothing in this Agreement shall be construed as either limiting or extending the legal jurisdiction of the Town or the County. This Agreement and all obligations upon the Town or County arising therefrom shall be subject to any limitations of budget law or other applicable local law or regulations. 6.0 Audit. The parties shall have the right to audit the books of the other relating to the Pima Animal Care Center and to the collection of licensing fees and other fines and fees. 7.0 Termination. Either party may terminate this Agreement by giving written notice to the other party not less than six (6) months prior to the termination date. In the event of termination, each party shall be liable for its proportionate share of the costs and expenses incurred or arising out of performance of activities required by this Agreement occurring IGA Pima County and Town of Oro Valley for PACC Services Page 5 of 9 prior to the termination date. Termination of this Agreement shall not relieve either party from liabilities or costs already incurred under this Agreement. 8.0 Assignment of Rights. Neither party to this Agreement shall assign its rights under this Agreement to any other party without written permission from the other party to this Agreement. 9.0 Construction of Agreement. 9.1 Construction and interpretation. All provisions of this Agreement shall be construed to be consistent with the intention of the parties as expressed in the Recitals hereof. 9.2 Captions and headings. The headings used in this Agreement are for convenience only and are not intended to affect the meaning of any provision of this Agreement. 10.0 Conflict of Interest. This Agreement is subject to the provisions of A.R.S. § 38-511, the pertinent provisions of which are incorporated herein by reference. 11.0 Severability. In the event that any provision of this Agreement or the application thereof is declared invalid or void by statute or judicial decision, such action shall have no effect on other provisions and their application, which can be given effect without the invalid or void provision or application, and to this extent the provisions of the Agreement are severable. In the event that any provision of this Agreement is declared invalid or void, the parties agree to meet promptly upon request of the other party in an attempt to reach an agreement on a substitute provision. 12.0 No Joint Venture. It is not intended by this Agreement to, and nothing contained in this Agreement shall be construed to, create any partnership, joint venture, or employment relationship between the parties or create any employer-employee relationship between the Town and any County employees or between the County and any Town employees. Neither party shall be liable for any debts, accounts, obligations or other liabilities whatsoever of the other, including (without limitation) the other party’s obligation to withhold Social Security and income taxes for itself or any of its employees. 13.0 No Third Party Beneficiaries. Nothing in the provisions of this Agreement is intended to create duties or obligations to or rights in third parties not parties to this Agreement or to affect the legal liability of either party to the Agreement by imposing any standard of care different from the standard of care imposed by law. 14.0 Compliance with Laws. The parties shall comply with all applicable federal, state, and local laws, rules, regulations, standards, and executive orders, without limitation to those designated within this Agreement. 14.1 Anti-Discrimination. The provisions of A.R.S. § 41-1463 and Executive Order Number 2009-09 issued by the Governor of the State of Arizona are incorporated by this reference as a part of this Agreement. 14.2 Americans with Disabilities Act. This Agreement is subject to all applicable provisions of the Americans with Disabilities Act (Public Law 101-336, 42 U.S.C. 12101-12213) and all applicable federal regulations under the Act, including 28 CFR Parts 35 and 36. IGA Pima County and Town of Oro Valley for PACC Services Page 6 of 9 15.0 Workers’ Compensation. An employee of either party shall be deemed to be an "employee" of both public agencies, while performing pursuant to this Agreement, for purposes of A.R.S. § 23-1022 and the Arizona Workers' Compensation laws. The primary employer shall be solely liable for any workers' compensation benefits, which may accrue. Each party shall post a notice pursuant to the provisions of A.R.S. § 23-906 in substantially the following form: 15.1 All employees are hereby further notified that they may be required to work under the jurisdiction or control or within the jurisdictional boundaries of another public agency, pursuant to an intergovernmental agreement or contract, and under such circumstances they are deemed by the laws of Arizona to be employees of both public agencies for the purposes of workers' compensation. 16.0 Non-Waiver. The failure of either Party to insist upon the complete performance of any of the terms and provisions of this Agreement to be performed on the part of the other, or to take any action permitted as a result thereof, shall not constitute a waiver or relinquishment of the right to insist upon full and complete performance of the same, or any other covenant or condition, either in the past or in the future. The acceptance by either Party of s ums less than may be due and owing it at any time shall not constitute an accord and satisfaction. 17.0 Force Majeure. A party shall not be in default under this Agreement if it does not fulfill any of its obligations under this Agreement because it is prevented or delayed in doing so by reason of uncontrollable forces. The term "uncontrollable forces" shall mean, for the purpose of this Agreement, any cause beyond the control of the party affected, including but not limited to, failure of facilities, breakage or accident to machinery or transmission facilities, weather conditions, flood, earthquake, lightning, fire, epidemic, war, riot, civil disturbance, sabotage, strike, lockout, labor dispute, boycott, material or energy shortage, casualty loss, acts of God, or action or non-action by governmental bodies in approving or failing to act upon applications for approvals or permits which are not due to the negligence or willful action of the parties, order of any government officer or court (excluding orders promulgated by the parties themselves), and declared local, state, or national emergency, which, by exercise of due diligence and foresight, such party could not reasonably have been expected to avoid. Either party rendered unable to fulfill any obligations by reason of uncontrollable forces shall exercise due diligence to remove such inability with all reasonable dispatch. 18.0 Notification. All notices or demands upon any party to this Agreement shall be in writing, unless other forms are designated elsewhere, and shall be delivered in person or sent by mail addressed as follows: Pima County: Town of Oro Valley: Francisco Garcia, MD, MPH Town Manager Pima County Assistant County Administrator 11000 North La Cañada Drive 130 W. Congress Oro Valley, Arizona 85737 Tucson, Arizona 85701 Monica Dangler Assistant Town Manager IGA Pima County and Town of Oro Valley for PACC Services Page 7 of 9 Pima Animal Care Center Director 11000 North La Cañada Drive 4000 N. Silverbell Road Oro Valley, Arizona 85737 Tucson, Arizona 85745 19.0 Remedies. Either party may pursue any remedies provided by law for the breach of this Agreement. No right or remedy is intended to be exclusive of any other right or remedy and each shall be cumulative and in addition to any other right or remedy existing at law or in equity or by virtue of this Agreement. 20.0 Indemnification. Each party (as “indemnitor”) agrees to indemnify, defend and hold harmless, the other party (as “indemnitee”) from and against any and all claims, losses, liability, costs or expenses (including reasonable attorney’s fees) (hereinafter collectively referred to as “claims”) arising out of the bodily injury of any person (including death) or property damage, but only to the extent that such claims, which result in vicarious/derivative liability to the indemnitee, and are caused by the act, omission, negligence, misconduct, or other fault of the indemnitor, its officers, officials, agents, employees or volunteers. 21.0 Counterparts. This Agreement may be executed in two or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. The signature pages from one or more counterpart may be removed from such counterpart and attached to a single instrument. 22.0 Legal Arizona Workers Act. 22.1 Town hereby warrants that it will at all times during the term of this Contract comply with all federal immigration laws applicable to Town’s employment of its employees, and with the requirements of A.R.S. § 23-214 (A) (together the “State and Federal Immigration Laws”). Town shall further ensure that each subcontractor who performs any work for Town under this Contract likewise complies with the State and Federal Immigration Laws. 22.2 County shall have the right at any time to inspect the books and records of Town and any subcontractor in order to verify such party’s compliance with the State and Federal Immigration Laws. 22.3 Any breach of Town’s or any subcontractor’s warranty of compliance with the State and Federal Immigration Laws, or of any other provision of this section, shall be deemed to be a material breach of this Contract subjecting Town to penalties up to and including suspension or termination of this Contract. If the breach is by a subcontractor, and the subcontract is suspended or terminated as a result, Town shall be required to take such steps as may be necessary to either self-perform the services that would have been provided under the subcontract or retain a replacement subcontractor, as soon as possible so as not to delay project completion. 22.4 Town shall advise each subcontractor of County’s rights, and the subcontractor’s obligations, under this Article by including a provision in each subcontract substantially in the following form: IGA Pima County and Town of Oro Valley for PACC Services Page 8 of 9 “Subcontractor hereby warrants that it will at all times during the term of this Contract comply with all federal immigration laws applicable to Subcontractor’s employees, and with the requirements of A.R.S. § 23-214 (A). Subcontractor further agrees that County may inspect the Subcontractor’s books and records to insure that Subcontractor is in compliance with these requirements. Any breach of this paragraph by S ubcontractor will be deemed to be a material breach of this Contract subjecting Subcontractor to penalties up to and including suspension or termination of this contract.” 23.0 Entire agreement. This instrument constitutes the entire agreement between the parties pertaining to the subject matter hereof, and all prior or contemporaneous agreements and understandings, oral or written, are hereby superseded and merged herein. Any exhibits to this Agreement are incorporated herein by this reference. IGA Pima County and Town of Oro Valley for PACC Services Page 9 of 9 IN WITNESS WHEREOF, the County has caused this Agreement to be executed by the Pima County Board of Supervisors, as attested to by the Clerk of the Board, and the Town of Oro Valley has caused this Agreement to be executed by the Mayor of the Town of Oro Valley, upon resolution of the Mayor and Council, as attested to by the Town Clerk.. PIMA COUNTY: ____________________________ _______ Chair, Board of Supervisors Date ATTEST ____________________________ _______ Clerk of the Board Date APPROVED AS TO CONTENT ____________________________ _______ Department Director or designee Date TOWN OF ORO VALLEY: ____________________________ _______ Mayor ATTEST ____________________________ _______ Town Clerk Date APPROVED AS TO CONTENT ____________________________ _______ Department Director or designee Date ATTORNEY CERTIFICATION The foregoing Agreement between Pima County and the Town of Oro Valley has been reviewed pursuant to A.R.S. § 11-952 by the undersigned who have determined that it is in proper form and is within the powers and authority granted under the laws of the State of Arizona to those parties to the Agreement. ____________________________ _______ Deputy County Attorney Date ____________________________ _______ Legal Services Director Date Town Council Regular Session C. Meeting Date:06/01/2022 Requested by: Bayer Vella, Community and Economic Development Submitted By:Hannah Oden, Community and Economic Development Case Number: 1901060 SUBJECT: Request for Final Plat approval of a 21-lot residential subdivision known as Rivers Edge, located at the northeast corner of Lambert Lane and Shore Cliff Drive RECOMMENDATION: The Conceptual Site Plan for this subdivision was approved by Town Council in 2019. Staff recommends approval. The Final Plat complies with the design previously approved by Town Council and is compliant with all Zoning Code standards. EXECUTIVE SUMMARY: The purpose of this request is to consider a Final Plat (Attachment 1) for a 21-lot residential subdivision located within the River's Edge Planned Area Development (PAD) on the northeast corner of Lambert Lane and Shore Cliff Drive as shown on the map to the right with the subdivision outlined in yellow. Final Plat approval is a ministerial function as the design was previously reviewed and approved by Town Council as a Conceptual Site Plan (Attachment 2). The Town must approve a code compliant final plat. The proposed Final Plat consists of 21 residential lots subdivided on 6.46 acres with a density of 3.25 dwellings per acre. The residential design provides one main access point from Shore Cliff Drive and preserves sloped areas along the northern property boundary as natural open space. BACKGROUND OR DETAILED INFORMATION: The Final Plat requires Town Council approval prior to being officially recorded with Pima County. In 2019, the Town Council reviewed and approved the Conceptual Site Plan for residential uses, landscaped areas and open space common areas (Attachment 2). The Final Plat has been reviewed by staff and conforms to the approved site design and all development standards including building height, setbacks, and lot sizes. Proposed Improvements: 6.46 acres subdivided into 21 residential lots (3.25 homes per acre) Average lot size: 7,276 square feet Minimum lot size: 6,000 square feet Maximum lot size: 10,300 square feet One access point off Shore Cliff Drive Maximum permitted building height is 24 feet and two-stories Buffer yards abutting public roadways Previous Approvals: 1994 - Annexed as part of the River's Edge Planned Area Development 2019 - Conceptual Site Plan approved by Town Council 2020 - Final Site Plan approved by Town staff FISCAL IMPACT: N/A SUGGESTED MOTION: I MOVE to APPROVE the Final Plat for the proposed subdivision, River's Edge, based on the finding that it meets Town requirements. OR I MOVE to DENY the Final Plat for the proposed subdivision, River's Edge, based on the finding that ___________________. Attachments Rivers Edge Final Plat Approved Conceptual Site Plan DATE ASSURED WATER SUPPLY CERTIFIES IN WRITING TO SUPPLY WATER TO THIS SUBDIVISION RESOURCES AS HAVING AN ASSURED WATER SUPPLY, PURSUANT TO ARS 45-576 AND HEREBY THE TOWN OF ORO VALLEY HAS BEEN DESIGNATED BY THE ARIZONA DEPARTMENT OF WATER WATER UTILITY DIRECTOR BY: NOTARY PUBLICMY COMMISSION EXPIRES STATE OF ARIZONA COUNTY OF PIMA SS.} ACKNOWLEDGEMENT ASSURANCES BY: MAYOR - TOWN OF ORO VALLEY DATE CIVIL ENGINEER bpaton@rickengineering.com ATTN: BRUCE PATON PHONE: (520) 795-1000 TUCSON, AZ 85712 3945 EAST FORT LOWELL ROAD, SUITE 111 RICK ENGINEERING COMPANY, INC. R.L.S. 17479 CERTIFICATION OF FLOODPLAIN SHOWN ON THIS PLAT WERE PREPARED BY ME OR UNDER MY DIRECTION. I HEREBY CERTIFY THAT THE FLOODPRONE LIMITS AND/OR EROSION HAZARD SETBACKS P.E. 28674BRUCE M PATON BENEFICIARY BASIS OF BEARING N00°17'57''W 13 EAST AS SHOWN IN BOOK 58 OF MAPS AND PLATS AT PAGE 70. SAID BEARING BEING THE EAST LINE OF THE SOUTHEAST QUARTER SECTION 12, TOWNSHIP 12 SOUTH, RANGE GENERAL NOTES DATE BY: RECORDS OF SAID TRUST IS: BENEFICIARY OF TRUST NO. 201941-S, DESCRIBED ABOVE AS DISCLOSED BY THE * PURSUANT TO A.R.S. SECTION 33-404(B), THE NAME AND ADDRESS OF THE SOLE PHONE: (480) 699-4687 PHOENIX, AZ 85054 6930 EAST CHAUNCEY LANE, SUITE 135 MELCOR DEVELOPMENTS, ARIZONA, INC. LIST OF COMMON AREAS (R) (M) (C) (RAD) 23 1314 24 23 14 13 SECTION CORNER RECORD MEASURED CALCULATED QUARTER SECTION CORNER INDICATES BEARING IS RADIAL LOT NUMBER EASEMENT BOUNDARY CENTERLINE LOT LINE SUBDIVISION BOUNDARY SECTION LINE BUILDING SETBACK LINE BUFFERYARD LIMITS LEGEND EXIST R/W EXIST SURVEY MONUMENT AS NOTED SYMBOL ITEM CONSTRUCTION (SEE GENERAL NOTE X) LOT CORNER TO BE SET BY RLS FOLLOWING COMPLETION OF COMPLETION CONSTRUCTION 2" BRASS CAP SURVEY MONUMENT TO BE STAMPED BY RLS FOLLOWING FOUND SURVEY MONUMENT AS NOTED 1N/A RIVERS EDGE 1901060 FINAL PLAT FOR DEDICATION PAD DISTRICT SCALE: NTS CR-2 SR CR-5 CR-5 CR-5 CR-5 TR CB-2 CR-5 DATE OF , 2022. PLAT WAS APPROVED BY THE MAYOR AND COUNCIL OF THE TOWN OF ORO VALLEY ON THE DAY I, , CLERK OF THE TOWN OF ORO VALLEY HEREBY CERTIFY THAT THIS APPROVALS CLERK, TOWN OF ORO VALLEY TOWN ENGINEER PIMA COUNTY REGIONAL WASTEWATER RECLAMATION DEPARTMENT DATE DATE DATEPLANNING AND ZONING ADMINISTRATOR DATEWATER UTILITY DIRECTOR RECORDING } STATE OF ARIZONA COUNTY OF PIMA SS. I HEREBY CERTIFY THAT THE INSTRUMENT WAS FILED FOR RECORD AT THE REQUEST OF RICK ENGINEERING COMPANY, INC. DATE TIME WITNESS MY HAND AND OFFICIAL SEAL DAY AND YEAR ABOVE WRITTEN BY: SEQ: #2022 FEE: ACCESS LOCATION DOUGLAS E. SCHNEIDER CERTIFICATION OF SURVEY PREPARED UNDER MY DIRECTION. MARKERS SHOWN ARE CORRECTLY DESCRIBED. I FURTHER CERTIFY THAT THIS PLAT WAS UNDER MY DIRECTION AND THAT ALL EXISTING OR PROPOSED SURVEY MONUMENTS AND I HEREBY CERTIFY THAT THE BOUNDARY SURVEY AS SHOWN ON THIS PLAT WAS PERFORMED DEPUTY FOR PIMA COUNTY RECORDER DATE DEVELOPER EMAIL: HBLANCO@MELCOR.CA ATTN: HUGO BLANCO PHONE: (480) 699-4687 PHOENIX, AZ 85054 6930 EAST CHAUNCEY LANE, SUITE 135 MELCOR DEVELOPMENTS, ARIZONA, INC. OWNER TUCSON, ARIZONA 85715 6390 EAST TANQUE VERDE ROAD TRUST NO. 201941-S, COMPANY, AS TRUSTEE UNDER A DELAWARE LIMITED LIABILITY TITLE SECURITY AGENCY, L.L.C., SEE SHEET 2 FOR CONTINUATION: OF THIS SUBDIVISION IN THE EVENT THE PROJECT IS ABANDONED. HAVE BEEN PROVIDED TO GUARANTEE THE RESEEDINGAGENCY, L.L.C., IN THE AMOUNT OF ASSURANCES IN THE FORM OF THIRD PARTY TRUST NO. 201941-S, FROM TITLE SECURITY IMPROVEMENTS (ELECTRIC, TELEPHONE, GAS, SEWER, WATER) IN THIS SUBDIVISION. GUARANTEE DRAINAGE AND STREET IMPROVEMENTS (INCLUDING MONUMENTS) AND UTILITY HAS BEEN PROVIDED TO AGENCY, L.L.C. AS RECORDED IN SEQ # ASSURANCE IN THE FORM OF A THIRD PARTY TRUST NO. 201941-S, FROM TITLE SECURITY 60,519, AS TRUSTEE ONLY AND NOT IN ITS CORPORATE CAPACITY. FIDELITY NATIONAL TITLE AGENCY, AN ARIZONA CORPORATION, AS TRUSTEE UNDER TRUST NO. DRAINAGEWAYS AND COMMON AREAS WITHIN THIS SUBDIVISION, AS SHOWN HEREON. ALL RESPONSIBILITY FOR THE CONTROL, MAINTENANCE, SAFETY AND LIABILITY OF THE PRIVATE OWNER WITHIN THE SUBDIVISION SHALL BE A MEMBER OF THE ASSOCIATION, WHICH WILL ACCEPT # IN THE OFFICE OF THE PIMA COUNTY RECORDER. EACH AND EVERY LOT OWNERS AS ESTABLISHED BY COVENANTS, CONDITIONS AND RESTRICTIONS IN SEQUENCE DRAINAGEWAYS AND COMMON AREAS SHALL BE VESTED IN AN ASSOCIATION OF INDIVIDUAL LOT MAINTENANCE OF UNDERGROUND UTILITIES AND SEWERS. TITLE TO THE LAND OF ALL PRIVATE GUESTS AND INVITEES, AND (EXCEPT FOR DRAINAGEWAYS), FOR THE INSTALLATION AND PRIVATE USE AND CONVENIENCE OF ALL OWNERS OF PROPERTY WITHIN THIS SUBDIVISION, THEIR PRIVATE DRAINAGEWAYS AND COMMON AREAS, AS SHOWN HEREON, ARE RESERVED FOR THE OBSTRUCTED WITHOUT THE APPROVAL OF THE ORO VALLEY TOWN COUNCIL. SURFACE FLOOD, OR RAINFALL. NATURAL DRAINAGE SHALL NOT BE ALTERED, DISTURBED, OR FUTURE BY REASON OF FLOODING, FLOWAGE, EROSION, OR DAMAGE CAUSED BY WATER, WHETHER AND ALL CLAIMS FOR DAMAGES RELATED TO THE USE OF THESE LANDS NOW AND IN THE VALLEY, ITS SUCCESSORS AND ASSIGNS, EMPLOYEES, OFFICERS, AND AGENTS HARMLESS FROM ANY I, THE UNDERSIGNED, MY SUCCESSORS AND ASSIGNS, DO HEREBY SAVE THE TOWN OF ORO PLAT. DEDICATED TO THE TOWN OF ORO VALLEY FOR THE PURPOSE OR PURPOSES NOTED ON THIS ACCESS CONTROL TO ADJACENT RIGHTS-OF-WAY. OTHER EASEMENTS SHOWN ON THIS PLAT ARE SHOWN ON THIS PLAT ARE DEDICATED TO THE TOWN OF ORO VALLEY FOR THE PURPOSE OF ACCESS TO, PUBLIC AND PRIVATE UTILITIES AND PUBLIC SEWERS. NO ACCESS EASEMENTS PRIVATE UTILITY COMPANIES FOR THE PURPOSE OF INSTALLATION AND MAINTENANCE OF, AND SHOWN ON THIS PLAT ARE DEDICATED TO THE TOWN OF ORO VALLEY AND ALL PUBLIC AND DRAINAGEWAYS, AND EASEMENTS, INCLUDING NO ACCESS EASEMENTS. UTILITY EASEMENTS AS ASSIGNS, ALL RIGHTS-OF-WAY SHOWN ON THIS PLAT, INCLUDING ALL STREETS, ALLEYS, I, THE UNDERSIGNED HEREBY DEDICATE TO THE TOWN OF ORO VALLEY, ITS SUCCESSORS AND THIS LAND IN THE MANNER SHOWN ON THIS PLAT. TITLE INTEREST IN THE LAND SHOWN ON THIS PLAT, AND I CONSENT TO THE SUBDIVISION OF I, THE UNDERSIGNED, HEREBY WARRANT THAT I AM ALL AND THE ONLY PARTY HAVING ANY FEE EXECUTED THE FOREGOING INSTRUMENT FOR THE PURPOSE THEREIN. NATIONAL TITLE AGENCY, TRUST NO. 60,519, AND BEING AUTHORIZED SO TO DO, RACHEL TURNIPSEED WHO ACKNOWLEDGED TO BE THE TRUST OFFICIAL OF FIDELITY ON THIS DAY OF , 2022, BEFORE ME PERSONALLY APPEARED RACHEL TURNIPSEED, TRUST OFFICER RELEASE OF EASEMENTS DOCKET 5944, PAGE 956.LYING WITHIN THIS PLAT. PAGE 483 AND ALL RIGHTS-OF-WAY OR EASEMENTS EXCEPTED FROM THE ABANDONMENT IN RELEASES THE PERPETUAL RIGHT OF WAY, PRIVILEGE AND EASEMENT GRANTED IN DOCKET 4827, ONLY EXISTING UTILITY WITHIN THE SUBJECT PROPERTY, THE TOWN OF ORO VALLEY DOES HEREBY WITH THE RECORDING OF THIS PLAT AND SUBSEQUENT REMOVAL OF THE EXISTING WATERLINE, THE ADMINISTRATIVE ADDRESS 10750 NORTH SHORE CLIFF DRIVE GABRIELLA CAZARES-KELLY, COUNTY RECORDER COMMON AREAS "B-3": UNDISTURBED NATURAL OPEN SPACE - 5,757 SF COMMON AREAS "B-2": UNDISTURBED NATURAL OPEN SPACE - 1,743 SF COMMON AREAS "B-1": UNDISTURBED NATURAL OPEN SPACE - 2,395 SF COMMON AREA "A": LANDSCAPE BUFFERYARD, GRADING & DRAINAGE - 76,020 SF A RECORD OF SURVEY SHALL BE RECORDED IN ACCORDANCE WITH THE STATE STATUTES. REPLACEMENT SURVEYOR SHALL SET MONUMENTS WITH HIS/HER IDENTIFYING NUMBER AND INTERIOR CORNER MONUMENTS, SUBSEQUENT TO THE RECORDING OF THE FINAL PLAT, THE THE SURVEYOR OF RECORD IS NOT AVAILABLE TO SUPERVISE THE SETTING OF THE BE UNDER THE DIRECT SUPERVISION OF THE SURVEYOR OF RECORD. IF FOR ANY REASON OF SURVEY SHALL BE FILED SHOWING THOSE DIFFERENCES. ALL MONUMENTS SET SHALL MONUMENTS SHOULD DIFFER FROM THE TYPE DESCRIBED ON THE FINAL PLAT, A RECORD THE INFRASTRUCTURE AND IMPROVEMENTS MAKE IT PRACTICAL TO DO SO. IF SUCH INTERIOR PROPERTY CORNERS SHALL BE MONUMENTED AS SOON AS COMPLETION OF 17. 90 DAYS AND 3) MAINTAIN THE IRRIGATION SYSTEM IN PROPER WORKING ORDER. WEED FREE, TRASH FREE CONDITION, 2) REPLACE ANY DEAD PLANT MATERIALS WITHIN ASSOCIATION AGREES TO 1) KEEP ALL REQUIRED LANDSCAPED AREAS MAINTAINED IN A THE PROPERTY OWNER, HIS SUCCESSORS, ASSIGNS OR A DESIGNATED HOMEOWNERS 16. BEFORE THE RELEASE OF ASSURANCES. AND FUNCTION OF ALL PUBLIC AND PRIVATE ROADWAYS AND DRAINAGE STRUCTURES THE PROFESSIONAL ENGINEER OF RECORD SHALL CERTIFY AS TO THE FORM, LINE 15. OF THE HOMEOWNERS ASSOCIATION. MAINTENANCE OF ALL EASEMENTS & COMMON AREAS SHALL BE THE RESPONSIBILITY 14. ORO VALLEY WATER UTILITY SHALL BE THE WATER SERVICE PROVIDER.13. THE WRITTEN APPROVAL OF THE ORO VALLEY TOWN COUNCIL. NO FURTHER SUBDIVISION OF ANY LOT OR PARCEL SHOWN WILL BE DONE WITHOUT 12. AN IN-LIEU FEE. RECREATION AREA REQUIREMENTS SATISFIED BY PROXIMITY TO OTHER PARKS AND 11. TOTAL PROVIDED = 84 SPACES 2 PER DRIVEWAY = 42 SPACES 2 PER GARAGE = 42 SPACE 10. PARKING SPACES PROVIDED/REQUIRED: REAR YARD - AS REQUIRED BY BUILDING CODE SIDE YARD - AS REQUIRED BY BUILDING CODES FRONT YARD - 20 FEET TO GARAGE, WITH 20-FOOT ON-SITE DRIVEWAY PROVIDED INTERNAL BUILDING SETBACKS: 0 FEET OR AS REQUIRED BY BUILDING CODES REQUIRED INTERNAL BUILDING SETBACKS PER CR-5: REAR YARD - 10 FEET SIDE YARD - 10 FEET FRONT YARD - 20 FEET REQUIRED PERIMETER/SITE SETBACKS PER CR-5:9. STORIES PER THE FSP. MAXIMUM BUILDING ALLOWED AND PROVIDED HEIGHT: 24 FEET AND TWO8. AVERAGE SIZE LOT: 7,276 SF. MAXIMUM LOT SIZE: 10,300 SF7. PROVIDED: 6,533 SF ALLOWED: 6,000 SF OR 2,000 SF WITH TOWN COUNCIL APPROVAL. MINIMUM LOT SIZE: 6. TOTAL MILES OF NEW PUBLIC STREETS ARE 0.2.5. PERCENTAGE OF SITE WHICH IS UNDISTURBED OPEN SPACE: 3.56% TOTAL AREA OF UNDISTURBED OPEN SPACE: 0.227 AC - 9,895 SF.4. RAC. DENSITY: 3.25 UTILIZES CR-5 STANDARDS. ALLOWED DENSITY: 21.7 RAC, PROPOSED EXISTING ZONING IS MELCOR/RIVERS EDGE PAD, PROPOSED DEVELOPMENT 3. THE TOTAL NUMBER OF LOTS IS 21.2. THE GROSS AREA OF THIS SUBDIVISION IS 6.46 AC.1. FINAL PLAT FOR \\cp.rickeng.com\projects\T_TUC_F\4191_River's_Edge\Civil\TUC CorpStds 2005.dscript \\cp.rickeng.com\projects\T_TUC_F\4191_River's_Edge\Civil\4191fp01.dgn 12-APR-2022 09:20c2022Rick Engineering CompanySHEET OF 2 RIVERS EDGE LOTS 121-141 & COMMON AREAS "A" & "B-1" - "B-3" CONTOR INTERVAL: N/ASCALE: 1"= SEQUENCE #2022 SEQUENCE #2022COMMON AREAS "B-1" - "B-3": UNDISTURBED NATURAL OPEN SPACE COMMON AREA "A": LANDSCAPE BUFFERYARD, GRADING & DRAINAGE 1901060 J-4191 REF:OV1600944, OV12-03-20, OV1801921, RIVERS EDGE (MELCOR) PAD #7 SOUTH, RANGE 13 EASTGILA & SALT RIVER MERIDIAN, PIMA COUNTY, ARIZONA. BEING A PORTION OF THE SOUTHEAST QUARTER OFSECTION 12, TOWNSHIP 12 DATE: APRIL 11, 2022 LOCATION MAP PROJECT THIS SCALE: 3" = 1 MILE 0712 13 18 LANE LAMBERT CANADA DEL ORO WASH47-41 46-32 59-71 15-21 53-96 59-28 51-7656-1162-37 58-70 55-99 12-15 47-58 #20182190002SEQ25-79PIMA COUNTY DATUM LAT 32°24' 09" LONG -110°58'00" TOWN OF ORO VALLEY, PIMA COUNTY, ARIZONA G & SRM SECTION 12, T 12 S, R 13 E1STAVENUE BOOK 47, PAGE 58 (70-102) RIVERS EDGE BOOK 46, PAGE 32 (1-69) RIVERS EDGE BOOK 58, PAGE 70 (1-33) PUSCH RIDGE VISTAS II BOOK 62, PAGE 37 (1-45) DEL ORO ESTATES RIVERS EDGE/CANADA 1 2 5.0 0' 2 5.0 0' 1 1 25.00'25.00' 1 25.00' 25.00' 7 5. 0 0' 7 5. 0 0' E LAMBERT LANE 805.GP ,2339 .TKD "LS 36914" 2" BRASS DISK BASIS OF BEARINGSE JASPER COURT (PUBLIC STREET) (PUBLIC STREET) RLS 37639 1/2" REBAR RLS 19852 1/2" REBAR RLS 35545 1/2" REBAR RLS 35545 1/2" REBAR RLS 37933 1/2" REBAR RLS 35545 1/2" REBAR RLS 37933 1/2" REBAR RLS 37933 1/2" REBAR BUFFERYARD "C" 12.5' LANDSCAPE SITE SETBACK 10' PERIMETER/ SITE SETBACK 10' PERIMETER/ SITE SETBACK 20' PERIMETER/ SITE SETBACK 10' PERIMETER/ 40' B K 59, P G 71 (PUBLIC STREET) BUFFERYARD "C" 12.5' LANDSCAPE N S H O RE CLIFF D RIVE 2 3 3 SCALE: 1"= 40' 0'20'40'80' N36°38'14"W 230.28' 2 4 4 4 4 AND SCENIC ROUTES PLAN COUNTY MAJOR STREETS 30' SETBACK PER PIMA GENERAL NOTES - CONTINUED 74 73 72 71 70 22 23 24 3 4 5 6 7 8 9 75 CA "B" CA "B" CA "B" CA "A" CURVE TABLE CURVE # C1 C2 C3 C4 C5 C6 C7 C8 C9 C10 C11 C12 C13 C14 C15 C16 C17 C18 C19 C20 C21 C22 C23 C24 C25 C26 C27 C28 C29 C30 C31 C32 C33 C34 C35 C36 C37 LENGTH 69.22' 150.65' 46.18' 31.33' 44.86' 78.58' 153.12' 30.01' 45.96' 217.39' 31.60' 139.85' 31.60' 148.18' 59.87' 32.72' 32.68' 55.01' 55.01' 10.41' 21.94' 8.08' 9.75' 58.64' 32.78' 38.54' 37.21' 36.44' 4.03' 27.07' 46.64' 44.39' 21.74' 2.69' RADIUS 185.00' 1525.00' 775.00' 775.00' 25.00' 210.00' 1550.00' 25.00' 41.00' 51.00' 41.00' 51.00' 41.00' 1500.00' 160.00' 25.00' 1550.00' 1550.00' 1550.00' 1550.00' 25.00' 25.00' 51.00' 51.00' 51.00' 51.00' 51.00' 51.00' 51.01' 51.00' 51.00' 51.00' 51.00' 1500.00' DELTA 21°26'20" 5°39'36" 3°24'50" 2°18'59" 102°48'42" 21°26'20" 5°39'36" 68°47'16" 64°13'43" 244°13'43" 44°09'38" 157°06'32" 44°09'38" 5°39'36" 21°26'20" 75°00'00" 1°12'29" 2°02'01" 2°02'01" 0°23'06" 50°16'26" 18°30'51" 10°57'32" 65°52'27" 36°49'40" 43°17'38" 41°48'09" 40°56'22" 4°31'53" 30°24'53" 52°24'01" 49°52'26" 24°25'12" 0°06'10" CURVE TABLE CURVE # C38 C39 C40 C41 C42 LENGTH 59.57' 59.35' 26.57' 40.84' 19.02' RADIUS 1500.00' 1500.00' 1500.00' 160.00' 160.00' DELTA 2°16'31" 2°16'02" 1°00'53" 14°37'35" 6°48'45" LINE TABLE LINE # L1 L2 L3 L4 L5 L6 L7 L8 L9 L10 L11 L12 L13 L14 L15 L16 L17 L18 L19 L20 L21 L22 L23 L24 L25 L26 L27 L28 L29 L30 L31 L32 L33 L34 L35 L36 LENGTH 26.00' 17.65' 34.74' 23.22' 24.70' 13.20' 12.62' 11.98' 9.69' 11.74' 13.85' 27.56' 15.37' 27.90' 16.79' 27.24' 6.82' 10.05' 35.79' 24.68' 11.94' 19.60' 18.84' 21.01' 4.94' 14.42' 13.88' 18.19' 14.14' 22.79' 54.37' 19.04' 53.67' 5.83' 25.30' DIRECTION S86°37'21"W N83°04'54"E N34°43'17"E N22°17'31"E N19°42'42"W S75°40'04"E N85°33'00"E N56°08'19"E N36°57'14"E N08°00'58"W N31°41'40"E N07°15'20"W N62°02'53"E N06°53'15"E S48°42'16"E S36°26'52"E S51°00'14"E N83°10'03"E N79°23'20"E N62°04'34"E N57°18'55"E N35°23'44"E N34°18'52"E N04°36'38"E N29°30'18"W S16°53'23"W N73°06'37"W S52°40'52"E S28°40'04"W N42°56'19"W S85°48'34"W S01°46'22"E S41°05'21"W N44°23'48"W S40°20'27"W SE COR SEC 12 "PC DOT" 2" BRASS DISK DKT 10030, PG 648 AFFECTED BY RELEASE DKT 9332, PG 508 & AS DKT 9161, PG 258 & RE-RECORDED 20' SLOPE EASEMENT LS17479 RESET1/2" REBAR BENT NO I.D. 1/2" REBAR 92.64' BOOK 59, PAGE 71 (1-50) RIVERS EDGE II (RAD) CORNER, NOTHING FOUND CALCULATED CENTER 1/4 0712 13 18 12 07 NOT USED NOT USED NOT USED NOT USED VACATION IS TO OCCUR BEFORE THE ISSUANCE OF BUILDING PERMITS. SHOULD AN EASEMENT BE IN CONFLICT WITH ANY PROPOSED BUILDING LOCATION, 25. EASEMENT. FRONT YARD LANDSCAPING MAY NOT INTERFERE WITH ANY PUBLIC UTILITY 24. 60% OF THE TOTAL LOT COUNT WITHIN THE DEVELOPMENT. THE SAME STREET. TWO- STORY HOMES SHALL BE LIMITED TO NO MORE THAN NO MORE THAN 2 TWO- STORY HOMES H=SHALL BE LOCATED SIDE BY SIDE ON 23. HOMES IMMEDIATELY ACROSS THE STREET FROM ONE ANOTHER -HOMES ADJACENT TO ONE ANOTHER FOLLOWING CONDITIONS: THE SAME ELEVATION AND COLOR SCHEME MAY NOT BE REPEATED FOR THE 22. ANTICIPATED ANNUAL COSTS OF MAINTENANCE AND REPAIR. PROBABLE MAINTENANCE NEEDS FOR THE NEXT 5-YEAR PERIOD, INCLUDING MADE AVAILABLE TO THE TOWN UPON REQUEST. THE REPORT SHALL IDENTIFY THE INSPECTION REPORTS SHALL BE KEPT BY THE HOMEOWNER'S ASSOCIATION AND PROCEDURES IN THE APPROVED DRAINAGE REPORT. COPIES OF THE 5-YEAR ENGINEER A MINIMUM OF ONCE EACH FIVE YEARS IN ACCORDANCE WITH THE DAMAGE, AND A SUMMARY REPORT PREPARED BY AN ARIZONA REGISTERED CIVIL ALL DRAINAGE STRUCTURES SHALL BE INSPECTED FOR OBSTRUCTION AND 21. ASSOCIATION AND MADE AVAILABLE TO THE TOWN UPON REQUEST. OF THE ANNUAL INSPECTION REPORTS SHALL BE KEPT BY THE HOMEOWNER'S ACCORDANCE WITH THE PROCEDURES IN THE APPROVED DRAINAGE REPORT. COPIES DAMAGE, AND A SUMMARY REPORT PREPARED A MINIMUM OF ONCE EACH YEAR IN 20. ALL DRAINAGE STRUCTURES SHALL BE INSPECTED FOR OBSTRUCTIONS AND LINE TO PROPERTY LINE. ON THE LOT IS COMPLETE AND SIDEWALKS HAVE BEEN INSTALLED, PROPERTY APPROVED UNTIL A BUILDING CODES OFFICIAL HAS VERIFIED THAT CONSTRUCTION 19. NO FINAL INSPECTION FOR ANY LOT WITHIN THIS SUBDIVISION SHALL BE SHOWN ON THIS PLAT. PERMITTED, PLACED OR MAINTAINED WITHIN THE SIGHT VISABILITY TRIANGLES WITH THE PURPOSE AND INTENT OF THE SIGHT VISABILITY TRIANGLES SHALL BE HEIGHT RELATIVE TO THE ADJACENT PAAL/ROADWAY WHICH MIGHT INTERFERE NO IMPROVEMENTS BETWEEN THIRTY (30) AND SEVENTY -TWO (72) INCHES IN 18. 76,020 SF CA "A" CA "A" 76,020 SF CA "A" 76,020 SF CR-5 TR CB-2 CR-5 CR-5 CR-5 CR-2 CR-5 S36°16'12"E 343.50' 194.75'S80°00'43"W 37.32'334.96'N15°01'47"E 3.51' 141.01' THIS PROJECT. APPROVAL OF THE NEW WATER LINE FOR VALLEY AFTER CONSTRUCTION AND RELEASED BY THE TOWN OF ORO EASEMENT DKT 4827, PG 843. TO BE WAY, WATER MAIN, MUNICIPAL SERVICES EXIST 30' SEWER, UTILITY, DRAINAGE THIS PROJECT. PPROVAL OF THE NEW WATER LINE FOR ORO VALLEY AFTER CONSTRUCTION AND 956. TO BE RELEASED BY THE TOWN OF WATER LINE, RESERVED IN DKT 5944, PG RESERVED EASEMENT FOR EXISTING THE MAXIMUM LOT COVERAGE IS FIFTY (50) PERCENTFOR MAIN BUILDINGS.27. ENVIRONMENTAL DESIGN (CPTED). LOTS 123-125MUST HAVE VIEW FENCING TO COMPLY WITH CRIMEPREVENTION 26. FINAL PLAT FOR \\cp.rickeng.com\projects\T_TUC_F\4191_River's_Edge\Civil\TUC CorpStds 2005.dscript \\cp.rickeng.com\projects\T_TUC_F\4191_River's_Edge\Civil\4191fp02.dgn 12-APR-2022 09:20c2022Rick Engineering CompanySHEET OF 2 RIVERS EDGE LOTS 121-141 & COMMON AREAS "A" & "B-1" - "B-3" CONTOR INTERVAL: N/ASCALE: 1"= SEQUENCE #2022 SEQUENCE #2022COMMON AREAS "B-1" - "B-3": UNDISTURBED NATURAL OPEN SPACE COMMON AREA "A": LANDSCAPE BUFFERYARD, GRADING & DRAINAGE 1901060 J-4191 REF:OV1600944, OV12-03-20, OV1801921, RIVERS EDGE (MELCOR) PAD #7 SOUTH, RANGE 13 EASTGILA & SALT RIVER MERIDIAN, PIMA COUNTY, ARIZONA. BEING A PORTION OF THE SOUTHEAST QUARTER OFSECTION 12, TOWNSHIP 12 DATE: APRIL 11, 2022 CA "A" 76,020 SF R=25.0' |=88°27'49" L=38.60'(R) R=25.0' |=88°24'30" L=38.58'(C) L=77.46'(R) R=775.0' |=05°43'35" L=77.51'(M) R=775.0' |=05°43'49" 121 122 123 124 125 126 127 128 129 130 131 132 133 134 135 136 137 138 139 140 141 CA "B-3" CA "A"CA "B-2"CA "B-1"7,076 SF 7,029 SF 7,107 SF 7,237 SF 7,225 SF 6,942 SF 6,533 SF 8,174 SF 7,032 SF 7,194 SF 6,798 SF 7,897 SF 7,717 SF 5,757 SF 7,365 SF 7,266 SF 7,424 SF 6,592 SF 6,694 SF 6,627 SF 6,567 SF1,743 SF2,395 SFN56°41'58"E55.08'N3 0°14'5 9"W 12 8.4 6' C7 8 .1 2 'C8 C193 4 .3 1 'C18 C15C17 60.44' C16 108.99'C1 4 C12 C13 C11C10 N3 8 °1 8 '4 1 "E4 6 .8 0 '56.01'C4C9 C5 N59°45'01"E 100.00' N65°24'37"E 124.53' L2 L590.31' L3 N3 9 °3 7 '4 1"E 5 2 .9 8 'L4L6L 7L9 L8 L12L10L13L15L18 L11L14 L23L16 L19 L22 L20 L17 L21 L24L25L26 22.39' 77.61' C21 C20 C23 C22 C25C 24 7.22'48.80'C29 C26C2 7 C30C28C 3 1 C32 55.00'50.97'C33 3.02' C35 C34C36 52.31'8.13' C37 C38 C39 C40 S 2 7°0 0'2 9" E 12 0.0 9' 55.00' 14.60' S 2 7°0 0'2 9" E 110.7 3' C41 C42 30.40' S73°40'04"W 131.42' S 2 7°0 0'2 9" E 12 1.2 3' (RAD) S60°47'14"W 145.11'L27S 2 7°0 0'2 9" E 114.3 1' S73°40'04"W 130.14'L28S73°40'04"W 145.29' S 2 7°0 0'2 9" E 9 7.0 3' S73°40'04"W 107.07' S73°40'04"W 94.31'L30S38°22'46"E 59.34' L29S16°19'56"E45.00'L32 L31 L33S69°35'47"W 97.80' L34 N8°30'35"E 116.08'N10°50'08"W 229.49'L35 N2 1° 5 1' 4 7 "W 8 4. 4 3'N3 0°14'5 9"W 12 6.2 0'N3 0°14'5 9"W 12 7.15'N2 9°14'0 5"W 12 7.2 4' ( R AD)N2 4 ° 3 5' 2 3 "W 1 0 4.3 7'N2 4 ° 3 5' 2 3 "W 1 2 6.3 7'N2 6°5 8'0 4"W 12 7.0 9' (RAD)N2 4 ° 3 5' 2 3 "W 1 2 6.0 6'N54°43'23"W 134.09' (RAD) S86°37'21"W 117.06' S86°37'21"W 120.16' S86°37'21"W 134.40' S69°35'47"W 105.00' S86°37'21"W 127.20' L 36 45.03' 5 5.9 7' 55.04' 45.03'4 1.0 6'48.82'55.47'3 4. 7 4'55.47'4 9. 6 9' 51.00'55.47'N22°23'38"E51.00'14.26'N86°37'21"E N42°27'43"E51.00'S19°34'15"W51.00'45.07' 26.03' 10.04' C6 79.38'136.49'79.59'35.47'76.28'204.97'85.30' 63.59'143.47'2 5 .9 0 'N33°21'10"E (RAD) S0°39'06"E (RAD) S80°46'23"E (RAD) S43°56'43"E (RAD) S41°09'06"W (RAD) S82°05'24"W (RAD) S72°52'36"W (RAD) S24°58 '28"E (RAD) N4°50'57"W (RAD) S24°41'33"E (RAD) S29°02'29"E (RAD) S44°52'34"E (RAD) N60°04'14"E54.71' N58°23'16"E55.02' N61°44'33"E54.32'N63°24'30"E54.31'N65°05'04"E55.00' N70°21'33"E55.35' N66°46'18"E55.02'N68°27'36"E55.08'N31°37'36"E 466.34'N3°22'39"E 173.09'76,020 SF 10,300 SF 220.41')R('51.165=L "53'92°71=| '59.7381=R )C('00.165=L "91'92°71=| '59.7381=R ++KEYNOTES 1 2 20' GARAGE SETBACK TEP BY THIS PLAT 10' ELECTRIC STRIP EASEMENT GRANTED TO TEP BY THIS PLAT 10'X10' ELECTRIC EASEMENT GRANTED TO PUBLIC UTILITY COMPANIES BY THIS PLAT 10' PUBLIC UTILITY EASEMENT GRANTED TO ALL 3 4 CONCEPTUAL SITE PLAN FORRIVERS EDGELOTS 103-123, COMMON AREA "A"OV1801921CONCEPTUAL SITE PLAN FORRIVERS EDGELOTS 103-123OWNER/DEVELOPERENGINEERLOCATION MAPSITE PLANPAD DISTRICTPROJECT SITERIVERS EDGE PADUNDERLYING ZONING DISTRICTSBASIS OF BEARINGBENCHMARKORO VALLEY GENERAL NOTES:ORO VALLEY GENERAL NOTES (CONTINUED):xxxxxxxxxx CONCEPTUAL SITE PLAN FORRIVERS EDGELOTS 103-123LEGENDABBREVIATIONS CONCEPTUAL SITE PLAN FORRIVERS EDGELOTS 103-123” ” Town Council Regular Session D. Meeting Date:06/01/2022 Requested by: Zach Young Submitted By:Catherine Hendrix, Police Department Department:Police Department SUBJECT: Resolution No. (R)22-25, authorizing and approving an Intergovernmental Agreement (IGA) between the City of Phoenix Police Department / Internet Crimes Against Children Task Force and the Town of Oro Valley Police Department for the participation in the Arizona Internet Crimes Against Children Task Force RECOMMENDATION: Staff recommends approval. EXECUTIVE SUMMARY: The Town of Oro Valley Police Department is interested in continuing the relationship as an affiliate agency with the Arizona Internet Crimes Against Children Task Force. The Oro Valley Police Department has been a partner agency with the Arizona Internet Crimes Against Children Task Force and has utilized the services and expertise of other partner agencies in past child exploitation cases. The Phoenix Police Department is the primary recipient of the federal grant issued by the United States Department of Justice and the Office of Juvenile Justice and Delinquency Prevention. The Internet Crimes Against Children Task Force utilizes the grant, and funding from the Arizona Attorney General's Office, for the purpose of administering and operating in Arizona. BACKGROUND OR DETAILED INFORMATION: The goals of the Arizona Internet Crimes Against Children (ICAC) Task Force are similar to the national policy objectives for the national level of ICAC, which are to: increase investigative capabilities of law enforcement officers in the detection and investigation of qualifying offenses and the apprehension of offenders; increase the number of ICAC qualifying offenses being prosecuted; create a multi-agency task force response to ICAC offenses; and develop and deliver ICAC public awareness and prevention programs. Furthermore, this task force will work to train police to investigate, prosecute, and deter the activities surrounding the exploitation of minors and the utilization of the internet to seek child victims for the purpose of sexual crimes against children. FISCAL IMPACT: There is no fiscal impact. Any expenditures made will be reimbursed with grant funding. SUGGESTED MOTION: I MOVE to approve Resolution No. (R)22-25, authorizing and approving an Intergovernmental Agreement between the City of Phoenix Police Department / Internet Crimes Against Children Task Force and the Town of Oro Valley Police Department for the participation in the Arizona Internet Crimes Against Children Task Force. Attachments (R)22-25 Resolution AZICAC Task Force IGA C:\Users\DESTIN~2\AppData\Local\Temp\BCL Technologies\easyPDF 8\@BCL@384C4CFF\@BCL@384C4CFF.doc RESOLUTION NO. (R)22-25 A RESOLUTION OF THE MAYOR AND COUNCIL OF THE TOWN OF ORO VALLEY, AUTHORIZING AND APPROVING AN INTERGOVERNMENTAL AGREEMENT BETWEEN THE CITY OF PHOENIX POLICE DEPARTMENT/INTERNET CRIMES AGAINST CHILDREN TASK FORCE AND THE TOWN OF ORO VALLEY POLICE DEPARTMENT FOR THE PARTICIPATION IN THE ARIZONA INTERNET CRIMES AGAINST CHILDREN TASK FORCE; AND DIRECTING THE TOWN MANAGER, TOWN CLERK, TOWN LEGAL SERVICES DIRECTOR, OR THEIR DULY AUTHORIZED OFFICERS AND AGENTS TO TAKE ALL STEPS NECESSARY TO CARRY OUT THE PURPOSES AND INTENT OF THIS RESOLUTION WHEREAS, pursuant to A.R.S. § 11-952, the Town of Oro Valley is authorized to enter into or renew agreements for joint and cooperative action with other public agencies and WHEREAS, the Town is authorized to establish and maintain the Oro Valley Police Department, pursuant to A.R.S. § 9-240 (B)(12); and WHEREAS, the Town wishes to enter into an Intergovernmental Agreement with the Phoenix Police Department to assist in the Arizona Internet Crimes Against Children (ICAC) task force to help promote a multi-agency response to ICAC; and WHEREAS, the Arizona ICAC task force will work to investigate, prosecute, and deter the activities surrounding the exploitation of minors and the utilization of the internet to seek child victims for the purpose of sexual crimes against children; and WHEREAS, it is in the best interest of the Town to enter into the Intergovernmental Agreement, attached hereto as Exhibit “A” and incorporated herein by this reference, in order to set forth the terms and conditions to provide for the health, safety and welfare of the residents of the Town of Oro Valley and the State of Arizona. NOW, THEREFORE, BE IT RESOLVED by the Mayor and Council of the Town of Oro Valley, that: SECTION 1. The Intergovernmental Agreement attached hereto as Exhibit “A” and incorporated herein by this reference, between the City of Phoenix Police Department/Internet Crimes Against Children and the Town of Oro Valley Police Department for participate in the Arizona Internet Crimes Against Children Task Force is hereby authorized and approved. C:\Users\DESTIN~2\AppData\Local\Temp\BCL Technologies\easyPDF 8\@BCL@384C4CFF\@BCL@384C4CFF.doc SECTION 2. The Chief of Police and other administrative officials of the Town of Oro Valley are hereby authorized to take such steps as necessary to execute and implement the terms of the Intergovernmental Agreement. SECTION 3. The Town Manager, Town Clerk, Town Legal Services Director, or their duly authorized officers and agents to take all steps necessary to carry out the purposes and intent of this resolution. SECTION 4. If any section, subsection, sentence, clause, phrase or portion of this Resolution, or the Intergovernmental Agreement attached hereto as Exhibit “A”, is for any reason held to be invalid or unconstitutional by the decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions thereof. SECTION 5. All Oro Valley Resolutions, or Motions and parts of Resolutions or Motions of the Council in conflict with the provisions of this Resolution are hereby repealed. PASSED AND ADOPTED by the Mayor and Town Council of the Town of Oro Valley, Arizona, this 1st day of June, 2022. TOWN OF ORO VALLEY Joseph C. Winfield, Mayor ATTEST: APPROVED AS TO FORM: Michael Standish, Town Clerk Tobin Sidles, Legal Services Director Date: Date: C:\Users\DESTIN~2\AppData\Local\Temp\BCL Technologies\easyPDF 8\@BCL@384C4CFF\@BCL@384C4CFF.doc EXHIBIT “A” 1 Updated 01.12.2022 ARIZONA INTERNET CRIMES AGAINST CHILDREN TASK FORCE Intergovernmental Agreement Between Phoenix Police Department (Primary Grantee) / Arizona ICAC Task Force Lead Agency and Oro Valley Police Department THIS Intergovernmental Agreement (“IGA”) is entered into between the City of Phoenix, Arizona, through the Phoenix Police Department (“PPD” or “Primary Grantee”), and the Town of Oro Valley, Arizona, through the Oro Valley Police Department (“Affiliate Agency”). I. RECITALS 1.1 Whereas public agencies are authorized and empowered to enter into intergovernmental agreements for the provision of services or for joint or cooperative action pursuant to Arizona Revised Statutes (A.R.S.) §11-952. The City of Phoenix is also authorized and empowered pursuant to Chapter 2, Section 2 (i), of the Charter of the City of Phoenix. 1.2 Whereas the Phoenix Police Department / Arizona Internet Crimes Against Children Task Force (“ICAC Task Force”) Lead Agency, is the recipient of the United States Department of Justice (“DOJ”), Office of Juvenile Justice and Delinquency Prevention (“OJJDP”) grant regarding Internet Crimes Against Children (“ICAC”). The Task Force utilizes the grant, and funding from the Arizona Attorney General’s Office, for the purpose of administering and operating an ICAC Task Force in Arizona. PPD is the primary grantee for the ICAC Task Force. Agencies affiliated through this IGA are known as “Affiliate Agencies”. 1.3 Whereas the PPD / ICAC Task Force agrees to work with the affiliates to support and advance the goals of the Internet Crimes Against Children Task Force, a DOJ initiative. Phoenix PD / ICAC Task Force may be able to provide financial assistance to the Affiliate Agency, on a reimbursable basis, through various funding sources. 1.4 Whereas the OJJDP administers the ICAC Task Force Program, which is a national network of state and local law enforcement investigative units. The national ICAC program assists state and local law enforcement agencies in the 2 Updated 01.12.2022 development of an effective response to cases involving images depicting the sexual exploitation of minors and the sexual assault and abuse of children facilitated by technology. Due in large part to the technological aspects of these cases, the ICAC Task Force Program promotes a multi-jurisdictional, multi-agency approach to investigating and prosecuting ICAC cases. ICAC’s goals are to increase the investigations and prosecutions of Internet crimes against children offenses, and to increase public awareness and prevention of ICAC offenses. 1.5 Whereas the national policy objectives for ICACs are to: (1) Increase the investigative capabilities, including effectiveness and efficiency, of law enforcement officers in the detection, investigation of qualifying offenses and the apprehension of offenders; (2) Increase the number of ICAC-qualifying (state and federal) offenses being prosecuted; (3) Create a multi-agency task force response to ICAC offenses; (4) Enhance the nationwide response to ICAC offenses; and (5) Develop and deliver ICAC public awareness and prevention programs. NOW, THEREFORE, in consideration of the mutual promises set forth herein, the parties hereby agree to the following terms and conditions: II. PURPOSE 2.1 The purpose of this IGA is to provide funding for the Affiliate Agency, on a reimbursable basis, to support their efforts to investigate, prosecute, and deter the possession, production, and distribution of unlawful images depicting the sexual exploitation of minors and the utilization of the Internet to seek children as sexual victims. 2.2 The purpose of this IGA is to memorialize parties’ agreement to work together to assist the ICAC Task Force in its efforts to investigate, prosecute, and deter the possession, production, and distribution of unlawful images depicting the sexual exploitation of minors and the utilization of the Internet to seek children as sexual victims. 2.3 Additionally, this IGA defines the responsibilities of the Affiliate Agency with the ICAC Task Force. III. RESPONSIBILITIES 3.1 Affiliated ICAC Task Forces may include investigators, supervisors, or prosecutors from various local, state, and federal law enforcement agencies who provide assistance, subject to availability. 3.2 Affiliated ICAC Task Forces should identify and investigate individuals who exploit children for sexual purposes through the use of technology and/or who obtain, distribute, and/or produce child pornography. 3 Updated 01.12.2022 3.3 Affiliated ICAC Task Forces should be focused on presenting evidence of criminal activity to prosecutors, which then leads to the successful prosecution of individuals who have committed coercion/enticement or unlawful image offenses. 3.4 Affiliated ICAC Task Forces may, subject to availability, sponsor community education efforts regarding the prevention of Internet crimes against children and provide ICAC training to other state and local law enforcement officials. 3.5 Affiliated ICAC Task Forces may, subject to availability: (1) Conduct undercover ICAC investigations; and (2) Conduct reactive investigations for which venue lies within the agency’s jurisdiction(s), including investigations of unlawful images depicting the sexual exploitation of minors, CyberTip referrals from the National Center of Missing and Exploited Children (NCMEC), Internet Service Provider and law enforcement referrals, other ICAC-related investigations, and other sources. 3.6 The Affiliated ICAC Task Force will ensure that: (1) Only sworn law enforcement personnel will conduct undercover ICAC investigations; (2) Each investigator involved with undercover operations has received ICAC training prior to initiating investigations; and (3) ICAC investigations shall also be governed by the national ICAC program’s Standard Operating Procedures (Attachment A). 3.7 Where investigations reveal that the safety of a child is at risk, it is of paramount importance that the safety and well-being of the child clearly outweigh any consideration being given to the continued investigation. 3.8 ICAC Task Forces have a substantial number of matters to investigate which requires prioritization of these matters. The Affiliate Agency agrees to use the guidelines in the ICAC Standard Operating Procedures (Attachment A) to prioritize cases. 3.9 An additional secondary role of the Affiliate Agency is to educate, as time and resources permit, both children and parents regarding online dangers, and empower them with information so they may visit the Internet in safety. Task force personnel may conduct education and prevention programs to foster awareness and provide practical, relevant guidance to the community about Internet child safety issues. IV. DURATION AND TERMINATION 4.1 This IGA shall become effective upon the date of the last signature of the executing parties and will supersede any pre-existing agreements between the Affiliate Agency and the Arizona ICAC Task Force. This IGA will remain in effect 4 Updated 01.12.2022 for five (5) years after the IGA becomes effective, unless the agreement is terminated in writing by either party upon thirty (30) day notice. 4.2 Violation of the ICAC Standard Operating Procedures (Attachment A) is considered a material breach of this agreement and cause for cancellation of Affiliate Agency’s affiliation with the Arizona ICAC Task Force. Upon discovering a violation and notifying the Affiliate Agency, the Primary Party may cancel the contract and rescind any funding under this agreement. V. GENERAL PROVISIONS 5.1 Conflict of Interest. This Agreement is subject to cancellation pursuant to the provisions of A.R.S. § 38-511. 5.2 Immigration law compliance and warranty. As required by A.R.S. § 41- 4401, each party hereby warrants its compliance with all federal immigration laws and regulations that relate to its employees and A.R.S. § 23-214(A). Each party further warrants that after hiring an employee, it verifies the employment eligibility of the employee through the E-Verify program. If either party uses any subcontractors in performance of the IGA, subcontractors shall warrant their compliance with all federal immigration laws and regulations that relate to its employees and A.R.S. § 23-214(A), and subcontractors shall further warrant that after hiring an employee, such subcontractor verifies the employment eligibility of the employee through the E-Verify program. A breach of this warranty shall be deemed a material breach of the IGA, subject to penalties up to, and including, termination. A party shall not be deemed in material breach if it and/or its subcontractors establish compliance with the employment verification provisions of Sections 274A and 274B of the federal Immigration and Nationality Act and the E-Verify requirements contained in A.R.S. § 23-214(A). Each party retains the legal right to inspect the papers of the other party and/or its subcontractor engaged in performance of this IGA to ensure that the other party and/or its subcontractor is complying with the warranty. Any inspection will be conducted after reasonable notice and at reasonable times. If state law is amended, the parties may modify this paragraph consistent with state law. 5.3 Communication between state and local government agencies and federal immigration authorities; compliance. As required by 8 U.S.C. § 1373, each party hereby agrees that, notwithstanding any other provision of federal, state, or local law, it will not prohibit, or in any way restrict, any government entity or official from sending to, or receiving from, federal immigration authorities, including US Immigration and Customs Enforcement (ICE), US Customs and Border Protection (CBP), or US Citizenship and Immigration Services (USCIS), information regarding the citizenship or immigration status, lawful or unlawful, of any individual. 5.4 Indemnification. To the extent permitted by law, each party will indemnify and save the other party harmless, including any of the parties’ departments, agencies, officers, employees, elected officials or agents, from and against all loss, 5 Updated 01.12.2022 expense, damage or claim of any nature whatsoever which is caused by any activity, condition or event arising out of the performance or non-performance by the indemnifying party of any of the provisions of this IGA. Each party, in all instances, shall be indemnified against all liability, losses, and damages of any nature for, or on account of, any injuries or death of persons or damages to or destruction of property arising out of or in any way connected with the performance or non-performance of this IGA by the other party, except such injury or damage as shall have been occasioned by the negligence of that other party. The damages incurred by the other party, their department, agencies, officers, employees, elected officers, or agents shall include in the event of any action, court costs, expenses for litigation and reasonable attorneys’ fees. The parties are responsible and liable for the acts and omissions of their own officers, agents, or employees in connection with the performance of their official duties under this IGA. This agreement does not relieve either agency of its official duties and shall not be construed as limiting or expanding the statutory responsibilities of the parties. 5.5 Binding effect. All terms, provisions, and conditions hereof shall be binding upon and inure to the benefit of all parties hereto and their respective heirs, personal representatives, successors, and assigns. 5.6 Severability. In the event any term or provision of this IGA is held to be invalid or unenforceable, the validity of the other provisions shall not be affected, and the IGA shall be construed and enforced as if it did not contain the particular term or provision that is deemed to be invalid or unenforceable. 5.7 Governing law. This IGA will be governed by the laws of the State of Arizona, both as to interpretation and performance. 5.8 Modification. This IGA may be modified only by mutual written agreement of the parties. VI. SPECIAL PROVISIONS 6.1 Goals for cases prosecuted. Various County Attorneys’ Offices throughout the State of Arizona have successfully prosecuted many cases investigated by the ICAC Task Force and its affiliated agencies. Cases investigated by the ICAC Task Force may be prosecuted in Federal or State Court. The affiliated agency agrees that the criteria for determining whether to prosecute a particular violation in state or federal court will be determined based upon the forum in which the greatest overall benefit to the public will be achieved. The parties agree that the greatest overall benefit to the public and victims will be achieved in the forum in which the purposes of punishment will be accomplished 6 Updated 01.12.2022 to the greatest possible extent. The parties agree that the sentences in ICAC cases should, to the greatest possible extent: (1) Reflect the seriousness of the offense; (2) Promote respect for the law; (3) Provide just punishment for the offense; (4) Afford adequate deterrence to criminal conduct; (5) Protect the public from further crimes of the defendant; and (6) To provide the defendant with needed educational or vocational training, medical care, or other correctional treatment in the most effective manner. Given these goals and the research regarding the typical hands-on offense histories of those convicted as on-line predators and child pornography offenders, incarceration is a desired outcome in ICAC cases. 6.2 Reporting statistics. The Affiliate Agency will provide monthly reports to the Phoenix PD / ICAC Task Force in the prescribed format, no later than ten (10) days after the end of the preceding month. If statistics are not provided by the deadline, any funding will be suspended until the reporting requirement is met. 6.3 Training. The affiliated agency may make investigators available for applicable specialized training provided through the national ICAC program and other appropriate training programs. 6.4 Media. Media outreach on cases should be coordinated with the prosecutor to whom the case has been, or will be, referred in order to ensure compliance with applicable bar rules. All lawful efforts will be made to protect ongoing undercover operations from media publication. Member agencies will refrain from unnecessarily releasing ongoing investigative techniques and ongoing undercover identities, including screen names, age or sex of undercover personas, unless authorized and mandated by public record law, or when the information is revealed pursuant to lawful discovery or at trial. 6.5 Confidentiality. It is understood that any confidential information pertaining to investigations of ICAC will be held in the strictest confidence, and will only be shared with participating ICAC Task Force members or other law enforcement agencies where necessary, or as otherwise permitted by federal and/or state law. 6.6 Text messaging while driving. Pursuant to Executive Order 13513, “Federal Leadership on Reducing Text Messaging While Driving,” 74 Fed. Reg. 51225 (October 1, 2009), the Department encourages recipients and sub recipients to adopt and enforce policies banning employees from text messaging while driving any vehicle during the course of performing work funded by this IGA, and to establish workplace safety policies and conduct education, awareness, and other outreach to decrease crashes caused by distracted drivers. 7 Updated 01.12.2022 6.7 Data protection. All data, regardless of form, including originals, images and reproductions, prepared by, obtained by, or transmitted to affiliate agencies in connection with this agreement is to be kept confidential. Except as specifically provided in this IGA, the affiliate agencies shall not disclose data generated in the performance of the service to any third person without the prior written consent of all affiliate agencies, unless required by law. Personal identifying information, financial account information, or restricted information, whether electronic format or hard copy, must be secured and protected at all times to avoid unauthorized access. At a minimum, affiliate agencies must encrypt and/or password protect electronic files. This includes data saved to laptop computers, computerized devices or removable storage devices. Unless contrary to law, which includes Arizona State Records Retention statutes, when personal identifying information, financial account information or restricted information, regardless of its format, is no longer necessary, the information must be redacted, destroyed or secured through appropriate and secure methods that ensure the information cannot be viewed, accessed or reconstructed. In the event that data collected or obtained by the affiliate agencies in connection with this IGA is believed to have been compromised, affiliate agencies shall notify all other agencies in writing within ten (10) business days. Affiliate agencies agree that the requirements of this section shall be incorporated into all relevant subcontractor/subconsultant agreements entered into by the affiliate agencies. A violation of this section may result in immediate termination of the IGA. The obligations of affiliate agencies under this section shall survive the termination of this agreement. 6.8 Consistency. No local agreement can be inconsistent with any provision herein or impair achievement of any provision herein. 6.9 Return of Proceeds of Sale or Auction. Affiliate agencies are prohibited from retaining the proceeds from the sale or auction of any equipment purchased with funding provided pursuant to this IGA. In the event that an affiliate agency sells or auctions any equipment purchased with funding provided pursuant to this IGA, the affiliate agency shall return the proceeds from the sale or auction of equipment to the City of Phoenix. The City of Phoenix shall remit the proceeds returned to the original funding source. The City of Phoenix shall have the authority to audit the records of an affiliate agency as shall be deemed proper to ensure that the proceeds from the sale or auction of any equipment purchased with funding provided pursuant to this IGA have been accounted for and returned pursuant to this section. 6.10 Affiliate Agency must abide by all federal, state, and local grant regulations. 8 Updated 01.12.2022 IN WITNESS WHEREOF, the parties enter into this Agreement: City of Phoenix, Arizona Town of Oro Valley, Arizona An Arizona Municipal Corporation An Arizona Municipal Corporation (Primary Grantee) (Affiliate) __________________________ __________________________ Jeri L. Williams (Authorized Signature) Police Chief Phoenix Police Department __________________________ Printed Name, Title __________________________ __________________________ Date Date ATTEST: ATTEST: __________________________ __________________________ City Clerk Town Clerk APPROVED AS TO FORM: APPROVED AS TO FORM: __________________________ __________________________ Acting City Attorney Town Attorney 9 Updated 01.12.2022 INTERGOVERNMENTAL AGREEMENT DETERMINATION In accordance with the requirements of A.R.S. § 11-952 (D), each of the undersigned attorneys Acknowledge: (1) that they have reviewed the above IGA on behalf of their respective clients; and, (2) that, as to their respective clients only, each attorney has determined that this IGA is in proper form and is within the powers and authority granted under the laws of the State of Arizona. City of Phoenix (Primary Grantee) Town of Oro Valley (Affiliate) __________________________ __________________________ Sandra Hunter (Authorized Signature) Asst. Chief Counsel __________________________ Printed Name, Title __________________________ __________________________ Date Date Town Council Regular Session 1. Meeting Date:06/01/2022 Requested by: Peter Abraham Submitted By:Mary Rallis, Water Department:Water SUBJECT: PUBLIC HEARING: RESOLUTION NO. (R)22-26, AUTHORIZING AND APPROVING AN INCREASE TO THE POTABLE WATER BASE RATES AND INCREASE TO THE POTABLE WATER COMMODITY RATES FOR THE TOWN OF ORO VALLEY WATER UTILITY RECOMMENDATION: On February 15, 2022, the Water Utility Commission voted to recommend Council approval of the water rates identified in and supported by the Water Rate Study and Long-Term Financial Plan prepared by Willdan Consultants. Staff recommendation is to increase the potable water base rates and increase the potable water commodity rates. EXECUTIVE SUMMARY: Pursuant to A.R.S. § 9-511.01, the Council adopted a Notice of Intent to increase water rates on March 2, 2022. The Notice of Intent established a public hearing date for June 1, 2022. The Water Rate Study and Long-Term Financial Plan prepared by Willdan Consultants was made available for public review and was posted on the Town’s website on March 3, 2022. The Notice of Intent was published in the Daily Territorial on March 29, 2022, thereby completing the statutory requirements. The Water Rate Study and Long-Term Financial Plan prepared by Willdan Consultants proposes an increase to the potable water base rates and an increase to the potable water commodity rates. The financial impact of the proposed potable base and commodity rate increases for a customer with a 5/8-inch meter using 7,000 gallons is $1.79 per month. If approved, the proposed water rate increases would become effective on August 1, 2022. BACKGROUND OR DETAILED INFORMATION: Town Code Section 15-2-6 states the Oro Valley Water Utility shall be a self-supporting utility funded solely from revenue generated from utility operations. Revenues include water sales, service fees and interest income. The Utility does not receive any funds from the Town’s General Fund. In accordance with the Mayor and Town Council Water Policies, Water Utility staff review water rates and charges on an annual basis. The Oro Valley Water Utility Commission evaluates staff recommendations based on the water rate analysis to ensure the recommendations meet Town policies and bond covenants. The Commission voted to recommend the Water Rate Study and Long-Term Financial Plan prepared by Willdan Consultants on February 15, 2022. The Proposed Water Rate Study and Long-Term Financial Plan includes financial projections for a 10-year period; however, the water rates are only approved for the first year of this 10-year projection period. The Proposed Water Rate Study and Long-Term Financial Plan evaluates the impact of future costs and the revenue sources that will be required to meet those costs. The proposed water rates will meet revenue and cash reserve requirements, meet debt service coverage requirements and ensure revenue stability. The recommended water rate changes for FY 2022/23 are as follows: Increase the potable water base rates Increase the potable water commodity rates The financial impact of the proposed potable base and commodity rate increases for a customer with a 5/8-inch meter using 7,000 gallons is $1.79 per month. If approved, the proposed water rate increase would become effective on August 1, 2022. FISCAL IMPACT: The proposed increases to the potable water base rates and potable water commodity rates will generate revenue sufficient to maintain the overall financial health of the Town’s Water Utility. SUGGESTED MOTION: I MOVE to (Approve or Deny) Resolution No. (R)22-26, authorizing and approving an increase to the potable water base rates and an increase to the potable water commodity rates. Attachments (R)22-26 Rate Increase 2022 Rate Report Staff Presentation RESOLUTION NO. (R)22-26 A RESOLUTION OF THE MAYOR AND COUNCIL OF THE TOWN OF ORO VALLEY, ARIZONA, AUTHORIZING AND APPROVING AN INCREASE TO THE POTABLE WATER BASE RATES AND INCREASE TO THE POTABLE WATER COMMODITY RATE FOR THE TOWN OF ORO VALLEY WATER UTILITY; AND DIRECTING THE TOWN MANAGER, TOWN CLERK, TOWN LEGAL SERVICES DIRECTOR, OR THEIR DULY AUTHORIZED OFFICERS AND AGENTS TO TAKE ALL STEPS NECESSARY TO CARRY OUT THE PURPOSES AND INTENT OF THIS RESOLUTION WHEREAS, pursuant to ARS § 9-511, et seq., the Town has the requisite statutory authority to acquire, own and maintain a water utility for the benefit of the residents within and without the Town’s corporate boundaries; and WHEREAS, pursuant to ARS § 9-511, et seq., the Town finds it necessary to increase the potable water base rates and increase the potable water commodity rates for the Oro Valley Water Utility, which is described in Exhibit “A” attached hereto; and WHEREAS, on March 2, 2022, Mayor and Council approved Resolution 22-09, providing Notice of Intent to increase water rates; and WHEREAS, on June 1, 2022, Mayor and Council held a Public Hearing to deliberate and vote on the proposed water rate increases. NOW, THEREFORE, BE IT RESOLVED by the Mayor and Council of the Town of Oro Valley, Arizona, that: SECTION 1. The Oro Valley Water Utility increases in water rates, as described in Exhibit “A” attached hereto and incorporated herein by this reference, are hereby authorized and approved. SECTION 2. The Mayor and other administrative officials of the Town of Oro Valley are hereby authorized to take such steps as are necessary to implement the increases in water rates . SECTION 3. The Town Manager, Town Clerk, Town Legal Services Director, or their duly authorized officers and agents are hereby authorized and directed to take all steps necessary to carry out the purposes and intent of this resolution. SECTION 4. If any section, subsection, sentence, clause, phrase or portion of this Resolution is for any reason held to be invalid or unconstitutional by the decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions thereof. SECTION 5. All Oro Valley Resolutions, or Motions and parts of Resolutions or Motions of the Council in conflict with the provisions of this Resolution are hereby repealed. PASSED AND ADOPTED by the Mayor and Council of the Town of Oro Valley, Arizona, this 1st day of June, 2022. TOWN OF ORO VALLEY Joseph C. Winfield, Mayor ATTEST: APPROVED AS TO FORM: Michael Standish, Town Clerk Tobin Sidles, Legal Services Director Date: Date: EXHIBIT “A” Potable Water Base Rates: Cost per month Potable Water Commodity Rates: Per 1,000 gallons March 2022 Water Rates Analysis Report Town of Oro Valley Water Utility Summary of proposed water rate increases This Water Rate Study and Long-Term Financial plan prepared by Willdan Consultants contains detailed information on the Operating Fund. Funds are analyzed annually to project revenue and revenue requirements. As an enterprise fund of the Town, the Water Utility generates revenue from rates, fees and service charges and does not receive revenue from taxes or other monies from the General Fund. Additionally, revenue generated by the Water Utility does not fund operating costs of any other Town department. In accordance with policy, the water rates analysis is prepared annually based on the most up- to-date information available for a five-year projection period. Willdan Consultants has provided both a five-year and ten-year projection. Although the analysis looks ahead several years, any rate increase considered would be approved only for the first year in the multi-year projection period. The Water Utility Commission has made a recommendation on water rates as detailed in the Water Rate Study and Long-Term Financial Plan prepared by Willdan Consultants. Under the proposed financial scenario, the Operating Fund is projected to have a cash balance of $5,724,041 at the end of the five-year projection period. This exceeds the cash reserve requirement. In addition, the debt service coverage ratio of 1.3 is exceeded each year. Operational needs and capital improvements are included in the analysis. The proposed water rates demonstrate a strategic balance between incurring new debt and a planned use of cash reserves to finance capital projects. The Water Utility Commission and Water Utility staff have made the following recommendations on water rates in the proposed financial scenario for Fiscal Year 2022/23: A. Increase to the potable water base rates B. Increase to the potable water commodity rates C. No change to reclaimed water base rates and commodity rate D. No change to potable and reclaimed groundwater preservation fees A. The current and proposed monthly base rates for potable water are shown in Table 1 below: Table 1 Cost per month B. The current and proposed commodity rates for potable water usage are shown in Table 2 below: Table 2 Cost per 1,000 gallons The financial impact of the proposed base and commodity rate increase for a customer with a 5/8-inch meter using 7,000 gallons is $1.79 per month. Customers with a 5/8-inch meter represent 87 percent of the total customer base and include residential, commercial and irrigation classifications with the vast majority of those being residential. The base rate increase would be $0.95 per month for all customers with this meter size. The proposed commodity rate increase for customers in Tier 1 would be $0.12 per 1,000 gallons used per month. The Water Utility staff presents this Water Rate Study and Long-Term Financial Plan prepared by Willdan Consultants in support of the recommended rates discussed above. The Oro Valley Water Utility Commission and Water Utility staff respectfully recommend the proposed increase to the potable base rates and increase to the potable commodity rates. Town of Oro Valley 2022 Water Rate Study and Long-Term Financial Plan Town of Oro Valley 2022 Water Rate Study – FINAL Page: 1 TOWN OF ORO VALLEY, ARIZONA 2022 WATER RATE STUDY TABLE OF CONTENTS Executive Summary .......................................................................................................................... 3 Introduction and Demographic Profile ............................................................................................. 11 Background ......................................................................................................................... 11 Report Organization ............................................................................................................. 11 Community Overview ........................................................................................................... 12 Current Water Rates ............................................................................................................ 13 Water Rate Comparison ....................................................................................................... 14 Water Test Year and Forecast Volumes ........................................................................................... 16 Water Customers and Meters – Test Year & Ten-Year Forecast ............................................... 16 Historical and Forecast Water Consumption ........................................................................... 18 Peaking Factors ................................................................................................................... 19 Water Forecast Revenue Requirement ............................................................................................ 21 Operating Expenses and Capital Outlays – Test Year.............................................................. 22 Cost of Service – Ten Year Forecast...................................................................................... 23 Capital Improvement Plan ..................................................................................................... 24 Existing and Forecast Debt Service ....................................................................................... 26 Non-Rate Revenues ............................................................................................................. 27 Net Revenue Requirement .................................................................................................... 28 Water Utility Cost Functionalization ........................................................................................ 29 Water Utility Cost Classification ............................................................................................. 30 Water Utility Cost Allocation .................................................................................................. 31 Water Rate Design ........................................................................................................................... 32 Proposed Rate Plan ............................................................................................................. 33 Notes on Rate Recommendations ......................................................................................... 36 Appendix A – Water Rate Model – Proposed Rate Plan Town of Oro Valley 2022 Water Rate Study – FINAL Page: 2 Acknowledgements During the course of this rate study, several Town of Oro Valley employees expended considerable time and effort in assisting the project team. These employees included the Mayor and Council, Mr. Peter Abraham, and Ms. Mary Rallis. The project team owes a debt of gratitude to the hard work, dedication and professionalism of these and other staff members, without whom this project would not have been successfully completed. The project team has relied upon the extensive data supplied by the Town of Oro Valley. Thus, the integrity of the study is largely dependent upon the accuracy of this financial and customer data. Every effort has been made by the project team to validate and confirm the information contained herein prior to the preparation of the final study documents. This report presents no assurance or guarantee that the forecast contained herein will be consistent with actual results or performances . These represent forecasts based on a series of assumptions about future behavior and are not guarantees. Any changes in assumptions or actual events may result in significant revisions to the forecast and its conclusions. The cash flow projections and debt service coverage calculations are not intended to present overall financial positions, results of operations, and/or cash flows for the periods indicated, which is in conformity with guidelines for presentation of a forecast established by the American In stitute of Certified Public Accountants. Executive Summary Town of Oro Valley 2022 Water Rate Study – FINAL Page: 3 Executive Summary Background In June 2021, the Town of Oro Valley, Arizona (the “Town”) engaged Willdan Financial Services to conduct a water rate study and long-term financial plan. The Town was interested in developing an updated comprehensive water rate plan for FY 2022 and beyond. The objective is to develop a long-term rate plan that will enable the Town to recover sufficient funds to meet operating expenses, capital outlays, debt service and coverage requirements, while at the same time minimizing the impact on ratepayers. The Town identified numerous objectives for this study, including but not limited to the following: • A comprehensive analysis and evaluation of the water systems’ current cost of service and revenue requirements. • A forecast of operating expenses over the next decade, taking into consideration salient factors such as cost of water treatment, inflation, system growth, and increases in staffing levels. • A thorough review of the water systems’ known capital improvement needs, as well as a determination of the need for funding capital requirements, such as, through rate revenues (Pay-As- You-Go) and the issuance of long-term debt for the existing identified capital improvements. • An estimate of current and forecast accounts, volumes, and billing units for the ten-year forecast period. • An analysis of alternative rate structures for water rates that will recover sufficient revenues and will distribute costs equitably. • A detailed analysis and comparison of the Town’s current and proposed rates to rates in other surrounding communities. • Work with the Town to achieve compliance with Arizona Revised Statutes 9-511.01 requirements for any changes in its current rates. Figure-1 https://www.facebook.com/shoporovalleymarketplace/photos/a.36689918335 5223/2376581572386964 Town of Oro Valley 2022 Water Rate Study – FINAL Page: 4 Water Rate Comparison Tables ES-1 compares Oro Valley’s current monthly water charges to those of nearby cities in the region. A billing volume of 7,000 gallons for water was used for the residential comparison as it represents typical usage levels for an average household in the Town. The rate data is based on published rates and ordinances posted by each municipality on their websites as of October 2021 and Arizona Water and Wastewater Rates Dashboard (prepared by UNC). These rates do not include sales tax, activation or other charges beyond the basic minimum and volume charges. The table reveals that the Town’s rates are among the lowest when compared to most other cities in the region. TABLE ES-1 Water Customers and Meters – Test Year & Forecast The majority of the water accounts served by Oro Valley are residential accounts. Table ES-2 presents total water connections (customers) by customer class for the Town for the test year and forecast period. As shown, overall water accounts are forecast to increase from 21,331 in the test year (FY 2022) to 22,887 in FY 2031, an average annual increase of 0.79%. The addition of these new connections will result in both non-recurring connection fees and increasing monthly water revenues. TOWN OF ORO VALLEY AZ Water Oro Valley 5/8" Meter 35.79$ Marana 40.08 Tucson 39.80 Phoenix 8.37 Anway Manville Water Co.54.50 Arizona Water Co. (Oracle)64.26 Metro-main Metro-Hub 43.55 Pima County 46.97 Mammoth 33.73 Flowing Wells Irr. District 29.15 Flagstaff 54.44 Sample Average 40.97$ State Survey Median 41.61$ MONTHLY RESIDENTIAL CHARGES -- 7,000 GALLONS WATER Source: Citys' Website; and Arizona Water and Wastewater Rates Dashboard (prepared by UNC) Town of Oro Valley 2022 Water Rate Study – FINAL Page: 5 TABLE ES-2 Net Revenue Requirement Table ES-3 presents the Town’s forecast Net Revenue Requirement for the ten-year period FY 2022 through FY 2031. The table reveals that the total net revenue requirement is expected to remain relatively constant over the ten-year forecast period. The total net revenue requirement is expected to decrease from $17,387,509 in FY 2022 to $16,781,235 in FY 2031. Detailed calculations are presented in the rate model contained in Appendix A of this report. In most part, the decrease in revenue requirement forecast over the next ten years is a result of debt retirement without a need for new debt. These net revenue requirements must be raised from rates in the test year FY 2022 and the forecast period. TABLE ES-3 TOWN OF ORO VALLEY AZ Residential & Irrigation 5/8" Residential & Irrigation 3/4" Residential & Irrigation 1" Residential & Irrigation 1.5" Residential & Irrigation 2" Residential & Irrigation 3" Residential & Irrigation 4" Commercial, Turf & Multifamily Construction Reclaimed Water Total WATER Total Customers FY 2019 17,525 1,429 549 52 73 2 5 544 31 6 20,216 FY 2020 17,666 1,529 568 54 73 2 5 555 27 6 20,485 FY 2021 17,933 1,743 587 53 73 2 5 561 30 12 20,999 TY 2022 18,221 1,771 596 54 74 2 5 565 30 12 21,331 FY 2023 18,476 1,796 605 55 75 2 5 569 30 12 21,625 FY 2024 18,665 1,814 611 55 76 2 5 573 30 12 21,844 FY 2025 18,793 1,827 615 56 77 2 5 577 30 12 21,993 FY 2026 18,920 1,839 619 56 77 2 5 581 30 12 22,142 FY 2027 19,048 1,851 623 56 78 2 5 585 30 12 22,291 FY 2028 19,175 1,864 628 57 78 2 5 589 30 12 22,440 FY 2029 19,303 1,876 632 57 79 2 5 593 30 12 22,589 FY 2030 19,430 1,889 636 57 79 2 5 597 30 12 22,738 FY 2031 19,558 1,901 640 58 80 2 5 601 30 12 22,887 WATER Annual New Customers FY 2020 141 100 19 2 - 262 FY 2021 267 214 19 (1) - - - 6 3 6 514 TY 2022 288 28 9 1 1 0 0 4 - - 332 FY 2023 255 25 8 1 1 0 0 4 - - 294 FY 2024 189 18 6 1 1 0 0 4 - - 219 FY 2025 127 12 4 0 1 0 0 4 - - 149 FY 2026 127 12 4 0 1 0 0 4 - - 149 FY 2027 127 12 4 0 1 0 0 4 - - 149 FY 2028 127 12 4 0 1 0 0 4 - - 149 FY 2029 127 12 4 0 1 0 0 4 - - 149 FY 2030 127 12 4 0 1 0 0 4 - - 149 FY 2031 127 12 4 0 1 0 0 4 - - 149 FORECAST TOTAL CUSTOMERS WATER Customer Classes TOWN OF ORO VALLEY AZ SCENARIO:2022 02 18 -- Equal Percent Adjustments Operating Expenses Capital Outlays Debt Service Cost of Service Non-Rate Revenues Revenue Requirement TOTAL Revenue Requirement TY 2022 12,310,079$ 3,511,650$ 4,935,311$ 20,757,039$ 3,369,530$ 17,387,509$ FY 2023 12,796,184 1,670,650 5,380,668 19,847,502 3,396,614 16,450,888 FY 2024 13,420,608 3,250,650 4,279,034 20,950,293 3,415,149 17,535,144 FY 2025 13,265,139 3,250,650 4,026,510 20,542,299 3,427,650 17,114,650 FY 2026 13,733,851 3,250,650 4,027,705 21,012,205 3,440,150 17,572,056 FY 2027 14,097,050 3,250,650 3,878,868 21,226,568 3,452,650 17,773,918 FY 2028 14,527,577 3,250,650 2,234,774 20,013,001 3,465,151 16,547,850 FY 2029 14,973,661 3,250,650 1,951,588 20,175,900 3,477,651 16,698,249 FY 2030 15,435,727 3,250,650 1,224,556 19,910,933 3,490,151 16,420,782 FY 2031 15,919,371 3,250,650 1,113,865 20,283,887 3,502,652 16,781,235 CURRENT AND FORECAST NET REVENUE REQUIREMENT Town of Oro Valley 2022 Water Rate Study – FINAL Page: 6 One of the key assumptions used in the development of the long -term revenue requirement is the Town’s Capital Improvement Plan. The Town’s CIP assumptions are summarized in Table ES-4. The table reveals that the Town’s CIP over the next five years is estimated to be $6,941,000 for the water system Operating Fund Projects. TABLE ES-3 It should be noted that if the Town materially revises its CIP, the rate plan may be subject to potentially significant revision. TOWN OF ORO VALLEY AZ SCENARIO:2022 02 18 -- Equal Percent Adjustments HP Tank Replacement ( 1-Tank & 1 Booster tank/Year)1,350,000$ Well Rehab. (2-Wells per year)930,000 Booster Rehab (2-Boosters- Study/Design/Construct)870,000 Reservoir Relining (4 Reservoirs)700,000 Palisades Area Supply Redundancy (Design & Const.)520,000 SCADA Equipment 500,000 Instrumentation Replacement 500,000 Water Meters for New Connections 375,000 El Con/Cmo Diestro Main & Valve Replacement 200,000 Vehicle Replacements 331,000 Well D8 Replacement Design 100,000 Other Future Projects 565,000 Total Operating Fund Projects 6,941,000$ OPERATING FUND PROJECTS CAPITAL IMPROVEMENT PLAN FOR EXISTING SYSTEM IMPROVEMENTS FY 2022 - FY 2026 Town of Oro Valley 2022 Water Rate Study – FINAL Page: 7 Water Rate Design The water rates developed in this study are designed to recover the test year and forecast revenue requirement while providing funding for the current identified capital, transfers, and debt service. The following is notable regarding this rate proposal: • While the rate model presents a forecast of rates for ten years, the project team recommends that the Town adopt a rate plan for FY 2022/2023, with rates to be implemented on July 1, 2022. • One of the most significant impacts on rates will be the cost of the Central Arizona Project water. Should the Central Arizona Project make material changes to its rate forecasts, the Town should undertake an immediate review of its rate plan. • Another significant impact on rates will be debt issued to fund the CIP. The initial cost of service and rate proposal assumes that the utility rate adjustments will fund debt on a stand-alone basis, whereby debt service will be fully funded through rates. If the Town issues additional debt not currently anticipated, the Town should undertake an immediate review of its rate plan to confirm the debt costs will be fully funded through rates. • The rate plan also assumes that Ground Preservation Fees and Operating Fund revenues as well as debt will be used to fund the current 5-year Capital Improvement Plan. • Uniform adjustments are applied to the existing base and volumetric rates for each rate class. There is no change to the basic rate structure other than the uniform annual adjustments in the base case rate plan. The rate plan and forecast revenues and expenses under this scenario is presented in Appendix A. Table ES-5 presents a summary of the rate plan proposed for the majority of the Town’s Residential customers. Table ES-6 presents a summary of the rate plan proposed for residential customers using 2, 3, or 4 inch meter sizes and Table ES-7 is the proposed rate plan for commercial, multifamily, turf, and reclaimed water customers. These tables present the rate plan selected by the Town out of three alternatives developed by the project team. Table ES-8 presents the customer rate impact assuming the proposed rate structure is adopted by Town Council. The schedules show the proposed rate plan and the forecast rates for subsequent years. Town of Oro Valley 2022 Water Rate Study – FINAL Page: 8 TABLE ES-5 TABLE ES-6 TOWN OF ORO VALLEY AZ Proposed Current Jul-21 Jul-22 Jul-23 Jul-24 Jul-25 Jul-26 Residential & Irrigation 5/8" Monthly Base Charge 5/8"18.99$ 18.99$ 19.94$ 20.94$ 21.98$ 23.08$ 24.01$ Commodity Rate/1,000 Gal Tier 1 1 7,000 2.40 2.40 2.52 2.65 2.78 2.92 3.03 Tier 2 7,001 16,000 3.35 3.35 3.52 3.69 3.88 4.07 4.23 Tier 3 16,001 32,000 4.80 4.80 5.04 5.29 5.56 5.83 6.07 Tier 4 32,001 Above 6.70 6.70 7.04 7.39 7.76 8.14 8.47 Residential & Irrigation 3/4" Monthly Base Charge 3/4"28.48$ 28.48$ 29.90$ 31.39$ 32.96$ 34.61$ 36.00$ Commodity Rate/1,000 Gal Tier 1 1 10,000 2.40 2.40 2.52 2.65 2.78 2.92 3.03 Tier 2 10,001 24,000 3.35 3.35 3.52 3.69 3.88 4.07 4.23 Tier 3 24,001 48,000 4.80 4.80 5.04 5.29 5.56 5.83 6.07 Tier 4 48,001 Above 6.70 6.70 7.04 7.39 7.76 8.14 8.47 Residential & Irrigation 1" Monthly Base Charge 1"47.46$ 47.46$ 49.83$ 52.32$ 54.94$ 57.68$ 59.99$ Commodity Rate/1,000 Gal Tier 1 1 17,000 2.40 2.40 2.52 2.65 2.78 2.92 3.03 Tier 2 17,001 40,000 3.35 3.35 3.52 3.69 3.88 4.07 4.23 Tier 3 40,001 80,000 4.80 4.80 5.04 5.29 5.56 5.83 6.07 Tier 4 80,001 Above 6.70 6.70 7.04 7.39 7.76 8.14 8.47 Residential & Irrigation 1.5" Monthly Base Charge 1.5"94.91$ 94.91$ 99.66$ 104.64$ 109.87$ 115.36$ 119.98$ Commodity Rate/1,000 Gal Tier 1 1 35,000 2.40 2.40 2.52 2.65 2.78 2.92 3.03 Tier 2 35,001 80,000 3.35 3.35 3.52 3.69 3.88 4.07 4.23 Tier 3 80,001 160,000 4.80 4.80 5.04 5.29 5.56 5.83 6.07 Tier 4 160,001 Above 6.70 6.70 7.04 7.39 7.76 8.14 8.47 Forecast TOWN OF ORO VALLEY AZ Proposed Current Jul-21 Jul-22 Jul-23 Jul-24 Jul-25 Jul-26 Residential & Irrigation 2" Monthly Base Charge 2"151.87$ 151.87$ 159.46$ 167.44$ 175.81$ 184.60$ 191.98$ Commodity Rate/1,000 Gal Tier 1 1 56,000 2.40 2.40 2.52 2.65 2.78 2.92 3.03 Tier 2 56,001 128,000 3.35 3.35 3.52 3.69 3.88 4.07 4.23 Tier 3 128,001 256,000 4.80 4.80 5.04 5.29 5.56 5.83 6.07 Tier 4 256,001 Above 6.70 6.70 7.04 7.39 7.76 8.14 8.47 Residential & Irrigation 3" Monthly Base Charge 3"303.71$ 303.71$ 318.90$ 334.84$ 351.58$ 369.16$ 383.93$ Commodity Rate/1,000 Gal Tier 1 1 112,000 2.40 2.40 2.52 2.65 2.78 2.92 3.03 Tier 2 112,001 256,000 3.35 3.35 3.52 3.69 3.88 4.07 4.23 Tier 3 256,001 512,000 4.80 4.80 5.04 5.29 5.56 5.83 6.07 Tier 4 512,001 Above 6.70 6.70 7.04 7.39 7.76 8.14 8.47 Residential & Irrigation 4" Monthly Base Charge 4"474.56$ 474.56$ 498.29$ 523.21$ 549.37$ 576.83$ 599.91$ Commodity Rate/1,000 Gal Tier 1 1 175,000 2.40 2.40 2.52 2.65 2.78 2.92 3.03 Tier 2 175,001 400,000 3.35 3.35 3.52 3.69 3.88 4.07 4.23 Tier 3 400,001 800,000 4.80 4.80 5.04 5.29 5.56 5.83 6.07 Tier 4 800,001 Above 6.70 6.70 7.04 7.39 7.76 8.14 8.47 Forecast Town of Oro Valley 2022 Water Rate Study – FINAL Page: 9 TABLE ES-7 TOWN OF ORO VALLEY AZ Proposed Current Jul-21 Jul-22 Jul-23 Jul-24 Jul-25 Jul-26 Commercial, Turf & Multifamily Monthly Base Charge 5/8"18.99$ 18.99$ 19.94$ 20.94$ 21.98$ 23.08$ 24.01$ 3/4"28.48 28.48 29.90 31.39 32.96 34.61 36.00 1"47.46 47.46 49.83 52.32 54.94 57.68 59.99 1 1/2"94.91 94.91 99.66 104.64 109.87 115.36 119.98 2"151.87 151.87 159.46 167.44 175.81 184.60 191.98 3"303.71 303.71 318.90 334.84 351.58 369.16 383.93 4"474.56 474.56 498.29 523.21 549.37 576.83 599.91 6"949.12 949.12 996.58 1,046.41 1,098.73 1,153.67 1,199.81 8"1,518.60 1,518.60 1,594.53 1,674.25 1,757.97 1,845.86 1,919.70 Commodity Rate/1,000 Gal 1 Above 2.40 2.40 2.52 2.65 2.78 2.92 3.03 Construction Rate/1,000 Gal 1 Above 7.29 7.29 7.65 8.04 8.44 8.86 9.22 W9 Construction Monthly Base Charge 5/8"18.99$ 18.99$ 19.94$ 20.94$ 21.98$ 23.08$ 24.01$ 3/4"28.48 28.48 29.90 31.39 32.96 34.61 36.00 1"47.46 47.46 49.83 52.32 54.94 57.68 59.99 1 1/2"94.91 94.91 99.66 104.64 109.87 115.36 119.98 2"151.87 151.87 159.46 167.44 175.81 184.60 191.98 3"303.71 303.71 318.90 334.84 351.58 369.16 383.93 4"474.56 474.56 498.29 523.21 549.37 576.83 599.91 6"949.12 949.12 996.58 1,046.41 1,098.73 1,153.67 1,199.81 8"1,518.60 1,518.60 1,594.53 1,674.25 1,757.97 1,845.86 1,919.70 Commodity Rate/1,000 Gal 1 Above 7.29 7.29 7.65 8.04 8.44 8.86 9.22 W10 Reclaimed Water Monthly Base Charge 5/8"14.62$ 14.62$ 14.62$ 14.62$ 14.62$ 14.62$ 14.62$ 3/4"21.93 21.93 21.93 21.93 21.93 21.93 21.93 1"36.54 36.54 36.54 36.54 36.54 36.54 36.54 1 1/2"73.08 73.08 73.08 73.08 73.08 73.08 73.08 2"116.94 116.94 116.94 116.94 116.94 116.94 116.94 3"233.86 233.86 233.86 233.86 233.86 233.86 233.86 4"365.41 365.41 365.41 365.41 365.41 365.41 365.41 6"730.83 730.83 730.83 730.83 730.83 730.83 730.83 8"1,169.32 1,169.32 1,169.32 1,169.32 1,169.32 1,169.32 1,169.32 Commodity Rate/1,000 Gal 1,001 Above 2.25 2.25 2.25 2.25 2.25 2.25 2.25 Forecast Town of Oro Valley 2022 Water Rate Study – FINAL Page: 10 TABLE ES-8 TOWN OF ORO VALLEY AZ Proposed Jul-21 Jul-22 Jul-23 Jul-24 Jul-25 Jul-26 Residential Monthly Charges - 5/8" 7,000 Water 35.79$ 35.79$ 37.58$ 39.46$ 41.43$ 43.50$ 45.24$ Increase -- $- 1.79 1.88 1.97 2.07 1.74 Increase -- %0.0%5.0%5.0%5.0%5.0%4.0% 10,000 Water 45.84 45.84 48.13 50.54 53.07 55.72 57.95 Increase -- $- 2.29 2.41 2.53 2.65 2.23 Increase -- %0.0%5.0%5.0%5.0%5.0%4.0% Commercial Monthly Charge -- 2" 50,000 Water 271.87 271.87 285.46 299.74 314.72 330.46 343.68 Increase -- $- 13.59 14.27 14.99 15.74 13.22 Increase -- %0.0%5.0%5.0%5.0%5.0%4.0% Forecast Section I Town of Oro Valley 2022 Water Rate Study – FINAL Page: 11 SECTION I Introduction and Demographic Profile Background In June 2021, the Town of Oro Valley, Arizona (the “Town”) engaged Willdan Financial Services to conduct a water rate study and long-term financial plan. The Town was interested in developing an updated comprehensive water rate plan for FY 2021/2022 and beyond. The objective of this study is to develop a long- term rate plan that will enable the Town to recover sufficient funds to meet operating expenses, capital outlays, debt service and coverage requirements, while at the same time to the best extent possible minimizing the impact of any adjustments on ratepayers. The Town identified numerous objectives for this study, including but not limited to the following: • A comprehensive analysis and evaluation of the water systems’ current cost of service and revenue requirements. • A forecast of operating expenses over the next decade, taking into consideration such factors as inflation, system growth, and increases in staffing levels. • A thorough review of the water systems’ known capital improvement needs, as well as a determination of the need for funding capital requirements, such as, through rate revenues (Pay-As- You-Go) and the issuance of long-term debt for the existing identified capital improvements. • An estimate of current and forecast accounts, volumes, and billing units for the ten-year forecast period. • An analysis of alternative multi-year water rate plans that will distribute costs equitably. • A detailed analysis and comparison of the Town’s current and proposed rates to rates in other surrounding communities. • Work with the Town to achieve compliance with Arizona Revised Statutes 9-511.01 requirements for any changes in its current rates. Report Organization This report is organized into the following sections: Town of Oro Valley 2022 Water Rate Study – FINAL Page: 12 Section I – Introduction and Demographic Profile - outlines the background, objectives and scope of this rate study and long-term financial plan. It also presents the Town’s current rate structure and a community profile of the Town of Oro Valley. This includes a comparison of the Town’s water charges with other local cities. Section II – Water Test Year and Forecast Volumes – analyzes the Town’s customer base, total accounts and current volumes of treated water. This section presents totals for the current year and a forecast ten years into the future. Section III – Water Test Year and Forecast Revenue Requirement – outlines the process of analyzing the Town’s current water utility cost structure. The total current or “test year” revenue requirements are developed, and costs are functionalized between treatment, distribution/collection, administration, and customer billing. Using the test year as a basis, costs are forecast for a ten-year period. Section IV – Water Rate Design – presents rate recommendations for the Town of Oro Valley Town Council and Staff to consider which would enable it to meet its revenue requirements over the next decade. This section also presents an analysis of the impact of the proposed plan. Appendix A – presents a hard copy printout of the interactive Microsoft Excel spreadsheet model summary developed for the Town of Oro Valley to calculate water current and future revenue requirements. The model automatically generates all calculations based on a set of defined user inputs and has an executive dashboard for users to develop real-time “what-if” scenarios. Community Overview The Town of Oro Valley, Arizona is located approximately 6 miles north of Tucson, Arizona. The Town is approximately 34.991 square miles and has an estimated January 1, 2021, population of 47,502 2. The Town is located in Pima County. The Town of Oro Valley has a Council-Manager form of government in which the elected Mayor and City Council Members establish policy. Those policies are then implemented by the Town Manager who is appointed by, and reports to, the Town Council. The Oro Valley Town Council consists of five Council Members, a Vice Mayor and a Mayor. The Town Manager operates in much the same way as a Chief Executive Officer of a corporation. The Town Manager's Office is responsible for the day-to-day administration of Oro Valley's Town government, including managing the Town's budget, the Town's departments and operations, and programs for communicating with residents and employees. 1 Wikipedia - https://en.wikipedia.org/wiki/Oro_Valley,_Arizona 2 https://worldpopulationreview.com/us-cities/oro-valley-az-population Figure 2 - https://www.realtor.com/realestateandhomes- detail/6602-Mediterranean- Dr_McKinney_TX_75071_M86649-91383 Town of Oro Valley 2022 Water Rate Study – FINAL Page: 13 Current Water Rates Table I-1 summarizes the Town of Oro Valley’s current water rate structure. TABLE I-1 The Town of Oro Valley last adjusted its rates effective with the July 2021 billing cycle. The water rate structure assesses a base charge that varies by meter size for all rate classes. The Commercial and Irrigation customers have a base charge that increases based on meter size. For Residential and Irrigation customers, TOWN OF ORO VALLEY AZ Base Charge 5/8"18.99$ Commodity Rate (per 1,000 Gallons) 3/4"28.48 Tier 1 2.40 1"47.46 Tier 2 3.35 1 1/2"94.91 Tier 3 4.80 2"151.87 Tier 4 6.70 3"303.71 4"474.56 6"949.12 Commodity Rate (per 1,000 Gallons) 8"1,518.60 Tier 1 2.40 Tier 2 3.35 Tier 3 4.80 Commodity Rate (per 1,000 Gallons)Tier 4 6.70 Tier 1 2.40$ Tier 2 3.35 Tier 3 4.80 Commodity Rate (per 1,000 Gallons) Tier 4 6.70 Tier 1 2.40 Tier 2 3.35 Tier 3 4.80 Commodity Rate (per 1,000 Gallons)Tier 4 6.70 Tier 1 2.40$ Tier 2 3.35 Tier 3 4.80 Commodity Rate (per 1,000 Gallons) Tier 4 6.70 Tier 1 2.40 Tier 2 3.35 Tier 3 4.80 Commodity Rate (per 1,000 Gallons)Tier 4 6.70 Tier 1 2.40$ Tier 2 3.35 Commercial, Turf & MF ($/1k Gal)2.40 Tier 3 4.80 Tier 4 6.70 Construction ($/1,000 Gal.)7.29 CURRENT WATER RATES Potable Water Meter Base Charge Water Rates Residential & Irrigation 3/4" Residential & Irrigation 1" Residential & Irrigation 5/8" Residential & Irrigation 1.5" Residential & Irrigation 2" Residential & Irrigation 3" Residential & Irrigation 4" Town of Oro Valley 2022 Water Rate Study – FINAL Page: 14 volume is billed based on tiered rates per 1,000 gallons. Commercial and Municipal customers are billed a uniform rate per 1,000 gallons for all metered water. Chart I-2 presents the percentage rate adjustments implemented by the Town since 2010. While the average water and wastewater utility across the USA has implemented adjustments of as much as 5.0% -- 6.0% annually, the chart reveals that the Town’s adjustments have been much more moderate over the past decade. Chart I-2 Water Rate Comparison Chart I-3 and Table I-4 compare the Town’s monthly water charges to surrounding cities in Arizona. Volumes of 7,000 gallons for water were used for the residential comparison as it represents typical usage levels for an average household. The comparison is based on residential rates for households with a 5/8’’ meter size. The rate data is based on published rates and ordinances posted by each municipality on their website and the 2021 TML water rate survey. These rates do not include sales tax, activation or other charges beyond the basic minimum and volume charges. The following points are also notable: • Many cities do not assess rates that recover the full cost of service, choosing instead to subsidize their water utilities with other revenues or to defer needed repairs and maintenance at the expense of system reliability and integrity. • Some cities use tax bonds to fund water system construction. This results in lower rates but higher ad valorem taxes. Town of Oro Valley 2022 Water Rate Study – FINAL Page: 15 CHART I-3 TABLE I-4 TOWN OF ORO VALLEY AZ Water Oro Valley 5/8" Meter 35.79$ Marana 40.08 Tucson 39.80 Phoenix 8.37 Anway Manville Water Co.54.50 Arizona Water Co. (Oracle)64.26 Metro-main Metro-Hub 43.55 Pima County 46.97 Mammoth 33.73 Flowing Wells Irr. District 29.15 Flagstaff 54.44 Sample Average 40.97$ State Survey Median 41.61$ MONTHLY RESIDENTIAL CHARGES -- 7,000 GALLONS WATER Source: Citys' Website; and Arizona Water and Wastewater Rates Dashboard (prepared by UNC) Section II Town of Oro Valley 2022 Water Rate Study – FINAL Page: 16 SECTION II Water Test Year and Forecast Volumes In order to accurately forecast future revenues and expenses, it is necessary to examine current water utility conditions. The first step in developing cost of service rates is to analyze patterns of usage, both for the system as a whole, and for specified customer classes. For the Town of Oro Valley, monthly water records were reviewed for the period July 2005 through June 2021. These records provided summary information on the monthly water volumes distributed system wide as well as the number of accounts for each period by defined customer class and the associated revenues. According to standard utility ratemaking methodology, in order to allocate revenue requirements equitably among system users, customers must be classified into relatively homogeneous groups with similar usage characteristics or service demands. Costs are then allocated to the customer classes in proportion to the usage characteristics of each class. For the water system, costs are typically allocated to customers based on their average and peak water demands. After thoroughly examining volume and customer data, the project team made no revisions to the Town’s existing rate classifications. The project team finds these customer class distinctions to be reasonable and appropriate, meeting the criteria of homogenous groups with similar usage patterns. In this section, the Town’s functional customer classes and test year usage patterns will be thoroughly analyzed. A ten-year projection of customers and usage will also be presented. These forecasts, along with the revenue requirements, will form the basis of the proposed rate designs. Water Customers and Meters – Test Year & Ten-Year Forecast The majority of the water accounts served by Oro Valley are residential accounts, with the balance being split between commercial, turf and multifamily, construction, and reclaimed water. Table II-1 and Chart II-2 present total water accounts for the Town for the test year and forecast period. Figure 3 - https://www.55places.com/arizona/communities/sun-city-oro- valley Town of Oro Valley 2022 Water Rate Study – FINAL Page: 17 TABLE II-1 CHART II-2 TOWN OF ORO VALLEY AZ Residential & Irrigation 5/8" Residential & Irrigation 3/4" Residential & Irrigation 1" Residential & Irrigation 1.5" Residential & Irrigation 2" Residential & Irrigation 3" Residential & Irrigation 4" Commercial, Turf & Multifamily Construction Reclaimed Water Total WATER Total Customers FY 2019 17,525 1,429 549 52 73 2 5 544 31 6 20,216 FY 2020 17,666 1,529 568 54 73 2 5 555 27 6 20,485 FY 2021 17,933 1,743 587 53 73 2 5 561 30 12 20,999 TY 2022 18,221 1,771 596 54 74 2 5 565 30 12 21,331 FY 2023 18,476 1,796 605 55 75 2 5 569 30 12 21,625 FY 2024 18,665 1,814 611 55 76 2 5 573 30 12 21,844 FY 2025 18,793 1,827 615 56 77 2 5 577 30 12 21,993 FY 2026 18,920 1,839 619 56 77 2 5 581 30 12 22,142 FY 2027 19,048 1,851 623 56 78 2 5 585 30 12 22,291 FY 2028 19,175 1,864 628 57 78 2 5 589 30 12 22,440 FY 2029 19,303 1,876 632 57 79 2 5 593 30 12 22,589 FY 2030 19,430 1,889 636 57 79 2 5 597 30 12 22,738 FY 2031 19,558 1,901 640 58 80 2 5 601 30 12 22,887 WATER Annual New Customers FY 2020 141 100 19 2 - 262 FY 2021 267 214 19 (1) - - - 6 3 6 514 TY 2022 288 28 9 1 1 0 0 4 - - 332 FY 2023 255 25 8 1 1 0 0 4 - - 294 FY 2024 189 18 6 1 1 0 0 4 - - 219 FY 2025 127 12 4 0 1 0 0 4 - - 149 FY 2026 127 12 4 0 1 0 0 4 - - 149 FY 2027 127 12 4 0 1 0 0 4 - - 149 FY 2028 127 12 4 0 1 0 0 4 - - 149 FY 2029 127 12 4 0 1 0 0 4 - - 149 FY 2030 127 12 4 0 1 0 0 4 - - 149 FY 2031 127 12 4 0 1 0 0 4 - - 149 FORECAST TOTAL CUSTOMERS WATER Customer Classes 20,216 21,331 22,291 22,887 - 5,000 10,000 15,000 20,000 25,000 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 Town of Oro Valley AZ Actual and Forecast Water Accounts Town of Oro Valley 2022 Water Rate Study – FINAL Page: 18 For each of the historical years, the average number of accounts for the year is shown and the growth reflects the difference from one fiscal year end to the next. Overall water accounts (potable and reclaimed) are forecast to increase from 21,331 in the test year to 22,887 in FY 2031, an average annual increase of 0.79% for all customer classes. Historical and Forecast Water Consumption Total water system consumption data was analyzed over the same time period as customer data. A combination of consumption over the past 12 months and historical trends was used as the basis for the development of the forecast water usage within the rate model. The project team prepared a ten-year forecast of water usage based on the same principles on which customer accounts were projected. The results of this forecast for water usage are presented in Table II-5. Chart II-6 presents the same water usage forecast in chart form and includes a three-year history of usage (FY 2019 – 2021). FY 2021 was a dry year which created a significant increase in water usage. Working with the Town staff, the project team determined that FY 2020 water usage was a more appropriate starting base for the rate study forecast. With these adjustments water usage is expected to increase at an average annual rate of approximately 0.68% over the next decade. By FY 2031 water usage is expected to reach 2,498,376,903 gallons. TABLE II-5 TOWN OF ORO VALLEY AZ Residential & Irrigation 5/8" Residential & Irrigation 3/4" Residential & Irrigation 1" Residential & Irrigation 1.5" Residential & Irrigation 2" Residential & Irrigation 3" Residential & Irrigation 4" Commercial, Turf & Multifamily Construction Total TY 2022 1,444,476,233 188,922,762 152,687,088 38,938,765 93,165,025 16,881,063 50,041,170 327,014,495 38,337,280 2,350,463,880 FY 2023 1,464,689,421 191,566,441 154,823,705 39,483,652 94,468,724 17,117,287 50,741,418 329,329,642 38,337,280 2,380,557,569 FY 2024 1,479,675,060 193,526,410 156,407,749 39,887,620 95,435,259 17,292,418 51,260,567 329,329,642 38,337,280 2,401,152,005 FY 2025 1,489,781,654 194,848,249 157,476,057 40,160,064 96,087,109 17,410,530 51,610,691 329,329,642 38,337,280 2,415,041,276 FY 2026 1,499,888,248 196,170,089 158,544,366 40,432,507 96,738,958 17,528,642 51,960,815 329,329,642 38,337,280 2,428,930,547 FY 2027 1,509,994,842 197,491,928 159,612,675 40,704,951 97,390,808 17,646,754 52,310,939 329,329,642 38,337,280 2,442,819,819 FY 2028 1,520,101,436 198,813,767 160,680,983 40,977,395 98,042,657 17,764,867 52,661,063 329,329,642 38,337,280 2,456,709,090 FY 2029 1,530,208,030 200,135,607 161,749,292 41,249,838 98,694,507 17,882,979 53,011,187 329,329,642 38,337,280 2,470,598,361 FY 2030 1,540,314,624 201,457,446 162,817,600 41,522,282 99,346,356 18,001,091 53,361,311 329,329,642 38,337,280 2,484,487,632 FY 2031 1,550,421,218 202,779,286 163,885,909 41,794,725 99,998,206 18,119,203 53,711,435 329,329,642 38,337,280 2,498,376,903 FY 2023 20,213,188 2,643,679 2,136,617 544,887 1,303,699 236,224 700,248 2,315,147 - 30,093,689 FY 2024 14,985,639 1,959,969 1,584,044 403,968 966,535 175,132 519,149 - - 20,594,437 FY 2025 10,106,594 1,321,839 1,068,309 272,444 651,849 118,112 350,124 - - 13,889,271 FY 2026 10,106,594 1,321,839 1,068,309 272,444 651,849 118,112 350,124 - - 13,889,271 FY 2027 10,106,594 1,321,839 1,068,309 272,444 651,849 118,112 350,124 - - 13,889,271 FY 2028 10,106,594 1,321,839 1,068,309 272,444 651,849 118,112 350,124 - - 13,889,271 FY 2029 10,106,594 1,321,839 1,068,309 272,444 651,849 118,112 350,124 - - 13,889,271 FY 2030 10,106,594 1,321,839 1,068,309 272,444 651,849 118,112 350,124 - - 13,889,271 FY 2031 10,106,594 1,321,839 1,068,309 272,444 651,849 118,112 350,124 - - 13,889,271 FORECAST BILLED POTABLE WATER CONSUMPTION WATER Customer Classes WATER Annual Consumption WATER Increase/(Decrease) from Prior Year Town of Oro Valley 2022 Water Rate Study – FINAL Page: 19 CHART II-6 Peaking Factors The cost of providing water to customers depends not only on the amount of water each class uses, but also on how that usage occurs over time. The maximum-day and maximum-hour peaking requirements of a water utility’s customers are an important influence on the utility’s costs. Because water utilities attempt to meet all of the demands of their customers, water systems are sized to meet customers’ peak requirements. Therefore, during off-peak periods, there are usually significant costs associated with the unused capacity of the system. These costs must be allocated to customers in proportion to the contribution of each customer class to the system peak, in order to develop equitable cost-based rates. Thus, it is necessary to determine the peak rate of use relative to the average rate of use for each class. This ratio is called a Peaking Factor. The calculation of peaking factors for individual classes relies on available pumping and consumption information as well as professional judgment. If customer meters could record daily flow rates for each customer, more refined information could be obtained on peaking factors. This is not feasible because of the enormous cost that would be imposed on the utility. Therefore, it is accepted practice in the water industry to develop peaking factor estimates based on standard formulas using system peak day information and monthly customer class usage records. This is a conservative methodology, since customer class peaking factors based on peak months will inevitably be lower than the system-wide peaking factor, which is based on the peak day. Based on AWWA guidelines, the customer class peaking factors calculated in this study are for non - coincidental peaks. The peaking factors developed for this analysis are based on the annualized water consumption by customer class for FY 2022. The calculations of the peaking factors by class are presented graphically in Chart II-7. Town of Oro Valley 2022 Water Rate Study – FINAL Page: 20 CHART II-7 Section III Town of Oro Valley 2022 Water Rate Study – FINAL Page: 21 SECTION III Water Forecast Revenue Requirement In this section of the water rate study and long- term financial plan, the Town of Oro Valley’s test year and forecast water utility revenue requirements are developed. The test year consists of the town’s fiscal year, July 1, 2021, through June 30, 2022. The estimates presented in this section are based on the Town’s proposed budget for FY 2022. The calculation of a revenue requirement differs from a utility’s budget in that it represents only that amount that must be raised through the Town’s user rates. This means that non-rate revenue (such as reconnection fees, late payment charges and interest) must be subtracted from the budgeted operating and capital expenditures to determine the net revenue requirement to be raised from rates. As is typical for publicly owned utilities, the Town of Oro Valley’s system revenue requirements were developed using the cash basis of ratemaking. Under the cash basis, as defined by the AWWA Manual M-1, system revenue requirements consist of cash expenditures and other financial commitments (such as debt service cover age or reserves) that must be met through system operating revenues and other revenue sources. All data used in the development of the revenue requirements was obtained from the financial statements, budgets, and other information provided by the Town. Detailed calculations are presented in the rate model contained in Appendix A of this report. For rate design purposes, revenue requirements are developed separately for the water system. The assumptions utilized in this expense forecast will be thoroughly detailed in this section of the report. These assumptions are critical to the development of both the revenue requirement and the ultimate rate recommendation. The project team reviewed these assumptions with the Town staff and considers all to be consistent with staff recommendations. In this section, current and forecast Operating Costs, Capital Outlays, Transfers, and Debt Service will be examined first. Non-rate revenues will be subtracted from the total to yield the Net Revenue Requirement. Figure 4 - https://www.gouldturner.com/portfolio- posts/northwest-medical-center-oro-valley/ Town of Oro Valley 2022 Water Rate Study – FINAL Page: 22 Operating Expenses and Capital Outlays – Test Year Table III-1 on the following page summarizes the test year FY 2022 water system operating expenses and capital outlays in detail by expense category item. The following is noteworthy about Table III-1: • There are nine (9) divisions within the Town’s Water Operating Fund: Administration, Customer, Conservation, Water Resources, Engineering, Capital Improvement, Construction Inspection, Operations, and Control Systems. • These divisions include the following expense categories: o Personnel, which includes all personnel costs, such as salary and benefit expenses, and payroll taxes. o Operation/Maintenance, which captures the primary operating expenses associated with the day-to-day management and maintenance of the water production and distribution operations. o CAP Fees, a 336 mile system that brings Colorado River water to central and southern Arizona. CAP is the state’s single largest renewable water supply and serves 80% of the state’s population. o Supplies, which includes postage, office equipment and supplies, IT costs, chemicals, etc. o Capital Improvements funded through the water utility budget. o Contractual or Miscellaneous, these expenses include such items as utility (electricity, gas, etc.) expense, fuels, small tools, maintenance supplies and contractual services . o Reclaimed operating and equipment costs. Table III-1 shows, total operating expenses, transfers, and capital outlays in the test year are $15,821,729 TABLE III-1 TOWN OF ORO VALLEY AZ SCENARIO:2022 02 18 -- Equal Percent Adjustments Net Budget Production Distribution Admin Customer Billing Reclaimed Water Operating & Maintenance Personnel 3,662,217$ 563,573$ 525,742$ 1,675,531$ 656,778$ 240,593$ Central Arizona Project 4,062,888 4,062,888 - - - - Operations & Maintenance 2,580,788 520,975 338,610 1,407,608 313,595 - Administrative Expense 205,116 - - 188,128 - 16,988 Utilities 850,000 850,000 - - - - Reclaimed Water 949,070 - - - - 949,070 Northwest Recharge, Recovery & Delivery System 0 0 - - - - Total Operating & Maintenance 12,310,079 5,997,436 864,352 3,271,266 970,373 1,206,652 Contingencies & Transfers - - - - - - Capital Outlays 3,511,650 2,500 3,351,000 150,000 8,150 - Total WATER Operating Expenses, Transfers and Capital Outlays 15,821,729 5,999,936 4,215,352 3,421,266 978,523 1,206,652 WATER Operating Expenses, Transfers and Capital Outlays Town of Oro Valley 2022 Water Rate Study – FINAL Page: 23 Cost of Service – Ten Year Forecast Table III-3 presents the water utility operating expense and capital outlay forecast for the ten-year period FY 2022 – FY 2031. Details behind these calculations can be found in the rate model contained in Appendix A. This forecast is based on the following set of assumptions: • Most operating costs are expected to increase at an annual rate of 2.0%, which is used by the Town in its Water Rates Analysis Report (March 2021). • Certain expenses will increase at above-inflation rates, to reflect the rapid rate of increase of these costs. These expenses include chemicals, workers compensation, Medicare, and insurance. • CAP water and delivery cost is one of the largest items in operating expenses. These costs are $4.1 million in FY 2022 and estimated to increase to $5.7 by FY 2031. TABLE III-3 TOWN OF ORO VALLEY AZ SCENARIO: 2022 02 18 -- Equal Percent Adjustments Operating Expense Capital Outlays Total TY 2022 12,310,079$ 3,511,650$ 15,821,729$ FY 2023 12,796,184 1,670,650 14,466,834 FY 2024 13,420,608 3,250,650 16,671,258 FY 2025 13,265,139 3,250,650 16,515,789 FY 2026 13,733,851 3,250,650 16,984,501 FY 2027 14,097,050 3,250,650 17,347,700 FY 2028 14,527,577 3,250,650 17,778,227 FY 2029 14,973,661 3,250,650 18,224,311 FY 2030 15,435,727 3,250,650 18,686,377 FY 2031 15,919,371 3,250,650 19,170,021 FORECAST OPERATING EXP. AND CAPITAL OUTLAYS Water Town of Oro Valley 2022 Water Rate Study – FINAL Page: 24 Capital Improvement Plan The Town has developed a comprehensive long-term capital improvements plan for the next five years. The purpose of the CIP is to rehabilitate and maintain the existing system, expand the system and to service new growth. In addition, the project team consulted with Town Staff to forecast CIP through the end of the rate plan period. The capital improvement plan is an integral part of any long-term rate and financing plan. The Town finances its capital improvements through a combination of GPF3 and Operating Fund revenue (Pay-as-You-Go) and revenue-funded long-term debt. Chart III-4 and Table III-5 summarize the Town’s CIP. The CIP involves repairs and upgrades to pumps and distribution system and construction of pump stations. The tables reveal that the Town’s CIP over the next five years is estimated to be $6,941,000 for the operating fund projects and $26,000,000 for the Northwest Recharge, Recovery and Delivery System (NWRRDS). The NWRRDS is a Central Arizona Project (CAP) water transmission/delivery system under construction that, when completed in FY 2025 – 2026, will be capable of delivering up to an additional 4,000 acre feet per year of CAP water into the Town’s water service area. The Town intends to fund the existing system improvements’ CIP through the direct contributions from rates/operating fund. CHART III-4 3 Groundwater Preservation Fees (GPF) funds are restricted to costs related to renewable water resources, infrastructure, and associated debt. Town of Oro Valley 2022 Water Rate Study – FINAL Page: 25 TABLE III-5 Town of Oro Valley 2022 Water Rate Study – FINAL Page: 26 Existing and Forecast Debt Service Table III-6 presents current and forecast debt service. Central to this forecast is the assumption that the Town issues new $8,000,000 in water bonds in FY 2022 - 2023 to fund a portion of the NWRRDS CIP. The Town currently has eight water bond issues outstanding in the Test Year that were issued to fund the water system improvements. Debt service on these issues is currently being paid from Utility System Revenue. For FY 2022 forward, it is projected that bonds will be repaid entirely with utility system revenues. The FY 2022 - 2023 debt is assumed to have a 20-year term, 4.0% interest rate and level principal and interest payments. These assumptions are preliminary in nature and subject to change. Should the Town Council choose to issue more or less revenue debt than assumed in this study or should different financing terms be available at the time the debt is issued, then the rate plans contained in this study may require revision. It is important to note that the water system debt service will be decreasing significantly over the next ten years. This is a result of debt retirements starting in FY 2027 decreasing debt service by almost 80% in FY 2031. Currently, the Town does not plan to issue any new debt other than t he $8 million that will be issued in FY 2023. TABLE III-6 TOWN OF ORO VALLEY AZ SCENARIO:2022 02 18 -- Equal Percent Adjustments Year Current Forecast Total TY 2022 4,935,311$ -$ 4,935,311$ FY 2023 4,780,241 600,427 5,380,668 FY 2024 3,678,607 600,427 4,279,034 FY 2025 3,426,083 600,427 4,026,510 FY 2026 3,427,277 600,427 4,027,705 FY 2027 3,278,441 600,427 3,878,868 FY 2028 1,634,346 600,427 2,234,774 FY 2029 1,351,161 600,427 1,951,588 FY 2030 624,129 600,427 1,224,556 FY 2031 513,438 600,427 1,113,865 Water Debt Service CURRENT AND FORECAST DEBT SERVICE Town of Oro Valley 2022 Water Rate Study – FINAL Page: 27 Non-Rate Revenues Although sales revenues constitute the majority of the revenue received by the Town of Oro Valley for water service, a certain amount of revenue is accrued from non-rate sources. These revenues include other general revenues, miscellaneous charges, and contractual receipts. It also includes the forecast GPF surcharge revenue. This is a fixed fee per 1,000 gallons charged to all potable and reclaimed customers. The potable customer’s charge is different from the fee charged reclaimed customers. Neither fee is forecast to change during the rate planning period. Increases in annual revenue represents growth in water usage. These non-rate revenues are subtracted from the overall budget to determine the revenue requirement to be raised from rates. Non-rate revenues are conservatively forecasted not to increase during the next ten years. Annual non-rate revenue totals are presented in Table III-7. TABLE III-7 TOWN OF ORO VALLEY AZ SCENARIO: 2022 02 18 -- Equal Percent Adjustments Water GPF Revenue Total Water & GPF TY 2022 975,000$ 2,394,530$ 3,369,530$ FY 2023 975,000 2,421,614 3,396,614 FY 2024 975,000 2,440,149 3,415,149 FY 2025 975,000 2,452,650 3,427,650 FY 2026 975,000 2,465,150 3,440,150 FY 2027 975,000 2,477,650 3,452,650 FY 2028 975,000 2,490,151 3,465,151 FY 2029 975,000 2,502,651 3,477,651 FY 2030 975,000 2,515,151 3,490,151 FY 2031 975,000 2,527,652 3,502,652 FORECAST NON-RATE REVENUES Town of Oro Valley 2022 Water Rate Study – FINAL Page: 28 Net Revenue Requirement Table III-8 and Chart III-9 presents the test year and ten-year forecast for the Town’s net revenue requirement to be raised from rates for the water utility for the test year 2022 and forecast period. The water net revenue requirement is expected to decrease from $17,387,509 in FY 2022 to $16,781,235 in FY 2031. TABLE III-8 CHART III-9 TOWN OF ORO VALLEY AZ SCENARIO:2022 02 18 -- Equal Percent Adjustments Operating Expenses Capital Outlays Debt Service Cost of Service Non-Rate Revenues Revenue Requirement TOTAL Revenue Requirement TY 2022 12,310,079$ 3,511,650$ 4,935,311$ 20,757,039$ 3,369,530$ 17,387,509$ FY 2023 12,796,184 1,670,650 5,380,668 19,847,502 3,396,614 16,450,888 FY 2024 13,420,608 3,250,650 4,279,034 20,950,293 3,415,149 17,535,144 FY 2025 13,265,139 3,250,650 4,026,510 20,542,299 3,427,650 17,114,650 FY 2026 13,733,851 3,250,650 4,027,705 21,012,205 3,440,150 17,572,056 FY 2027 14,097,050 3,250,650 3,878,868 21,226,568 3,452,650 17,773,918 FY 2028 14,527,577 3,250,650 2,234,774 20,013,001 3,465,151 16,547,850 FY 2029 14,973,661 3,250,650 1,951,588 20,175,900 3,477,651 16,698,249 FY 2030 15,435,727 3,250,650 1,224,556 19,910,933 3,490,151 16,420,782 FY 2031 15,919,371 3,250,650 1,113,865 20,283,887 3,502,652 16,781,235 CURRENT AND FORECAST NET REVENUE REQUIREMENT $17,387,509 16,781,235 $15,500,000 $16,000,000 $16,500,000 $17,000,000 $17,500,000 $18,000,000 TY 2022 FY 2023 FY 2024 FY 2025 FY 2026 FY 2027 FY 2028 FY 2029 FY 2030 FY 2031 Town of Oro Valley WATER Revenue Requirement Town of Oro Valley 2022 Water Rate Study – FINAL Page: 29 Water Utility Cost Functionalization Once the total water system costs have been identified, the next step in the rate development process is to isolate the costs associated with each system function. Some of these expenditures are a function of base water demand; others are based on the peak demands placed on the system. Certain costs are associated with serving customers regardless of the volume of water use. The basic steps used to allocate the Town’s water revenue requirements include the following: 1. Each system’s costs (revenue requirements) are categorized by utility function (i.e., treatment, distribution, administrative, customer). This process is known as functionalization. 2. Functionalized costs are classified based on the service characteristics or the types of demand served by the utility (base and maximum day). This process is known as classification. 3. Costs by service characteristic are allocated to customer classes in prop ortion to the service demands demonstrated by each class. The approaches described in this section follow standard industry practices. Water system costs are allocated to the following functions: Production – the process by which water is produced. Distribution – the lines that carry water to individual customers’ properties. Administration – miscellaneous overhead and other non-operating costs. Customer Billing – the processes involved in billing and providing other services to customers. The project team allocated operating budget line-item expenses individually to system functions based on general guidelines, specific research, and input from the Town of Oro Valley staff. The results of the allocation process for the test year are summarized in Table III-10. The revenue requirement includes costs allocated to reclaimed water. Reclaimed water rates was not part of this rate study, however, it was necessary to include the reclaimed water costs to confirm all water utility costs are allocated equitably. TABLE III-10 TOWN OF ORO VALLEY AZ SCENARIO:2022 02 18 -- Equal Percent Adjustments Revenue Function Requirement Percent Production 6,894,057$ 39.6% Distribution 5,797,116 33.3% Administration 2,865,886 16.5% Customer 819,677 4.7% Reclaimed Water 1,010,774 5.8% Total 17,387,509 100.0% TEST YEAR WATER COST FUNCTIONALIZATION Town of Oro Valley 2022 Water Rate Study – FINAL Page: 30 Water Utility Cost Classification The allocation of functionalized water system costs to service characteristics follows the base -extra capacity cost allocation method recommended by AWWA. Using this method, costs are segregated into the following categories: Base costs – capital costs and O&M expenses associated with service to customers under average demand conditions. This category does not include any costs attributable to variations in water use resulting from peaks in demand. Base costs tend to vary directly with the total quantity of water used. Maximum Day/Extra Capacity costs – costs attributable to facilities that are designed to meet peaking requirements. These costs include capital and operating charges for additional plant and system capacity beyond that required for average usage. Customer Billing costs – costs associated with any aspect of customer service, including billing, accounting, and meter services. These costs are independent of the amount of water used and the size of the customer’s meter and are not subject to peaking factors. According to AWWA Manual M-1, in the base-extra capacity method, care must be taken in separating costs between those devoted to base capacity and those devoted to extra capacity. The peak to average factor is calculated by dividing the volume on the peak day of the year by the average daily volume. Facilities designed to meet maximum-day requirements, such as the treatment and distribution functions, are allocated 67% (1/1.50) to base, and 33% to extra capacity (Max Day). This means that facilities designed to meet maximum- day requirements, such as the treatment and distribution functions, are allocated 67% to base, and 33% to extra capacity. All customer service-related costs are allocated 100% to customer billing. Administration costs are generally not directly assignable to individual classifications. Therefore, it is standard rate-making practice to allocate these costs on an indirect basis to service characteristics. The system-wide costs by service characteristic are shown in Table III-11. As with cost functionalization, these percentages are not expected to change significantly in the forecast period. TABLE III-11 TOWN OF ORO VALLEY AZ SCENARIO:2022 02 18 -- Equal Percent Adjustments Revenue Function Requirement Percent Base 10,894,456$ 62.66% Maximum Day 5,447,228 31.33% Customer 1,045,825 6.01% Total 17,387,509 100.0% TEST YEAR WATER COST CLASSIFICATION Town of Oro Valley 2022 Water Rate Study – FINAL Page: 31 Water Utility Cost Allocation Allocation of costs by service characteristic to customer classes is based on the proportionate use levels of each characteristic by each class. The total water utility costs by customer class for the test year are summarized in Table III-12 and for the ten-year forecast period in Table III-13. TABLE III-12 TABLE III-13 TOWN OF ORO VALLEY AZ SCENARIO: 2022 02 18 -- Equal Percent Adjustments Revenue Function Requirement Percent Residential & Irrigation 5/8"10,151,012$ 58.4% Residential & Irrigation 3/4"1,319,530 7.6% Residential & Irrigation 1"1,100,798 6.3% Residential & Irrigation 1.5"362,450 2.1% Residential & Irrigation 2"802,695 4.6% Residential & Irrigation 3"187,284 1.1% Residential & Irrigation 4"441,466 2.5% Commercial, Turf & Multifamily 1,658,752 9.5% Construction 156,324 0.9% Reclaimed Water 1,207,199 6.9% Total 17,387,509 100.0% TEST YEAR WATER COST ALLOCATION TOWN OF ORO VALLEY AZ SCENARIO:2022 02 18 -- Equal Percent Adjustments Year Residential & Irrigation 5/8" Residential & Irrigation 3/4" Residential & Irrigation 1" Residential & Irrigation 2" Commercial, Turf & Multifamily Construction Reclaimed Water Total TY 2022 10,151,012$ 1,319,530$ 1,100,798$ 802,695$ 1,658,752$ 156,324$ 1,207,199$ 17,387,509$ FY 2023 9,539,029 1,239,984 1,034,423 754,228 1,548,459 144,931 1,258,515 16,450,888 FY 2024 10,189,062 1,324,497 1,104,914 805,541 1,637,883 153,321 1,325,293 17,535,144 FY 2025 9,944,803 1,292,756 1,078,430 786,178 1,588,260 148,684 1,304,843 17,114,650 FY 2026 10,208,845 1,327,091 1,107,067 807,000 1,619,935 151,656 1,354,086 17,572,056 FY 2027 10,319,665 1,341,508 1,119,088 815,709 1,627,049 152,329 1,391,472 17,773,918 FY 2028 9,525,763 1,238,314 1,032,999 752,908 1,492,338 139,723 1,436,269 16,547,850 FY 2029 9,597,860 1,247,696 1,040,821 758,559 1,494,144 139,899 1,482,783 16,698,249 FY 2030 9,398,816 1,221,831 1,019,239 742,783 1,453,984 136,144 1,531,002 16,420,782 FY 2031 9,600,872 1,248,107 1,041,154 758,705 1,475,989 138,210 1,581,585 16,781,235 FORECAST WATER COST ALLOCATION Town of Oro Valley 2022 Water Rate Study – FINAL Page: 32 SECTION IV Water Rate Design Rate design involves determining charges for each class of customers that will generate a desired level of revenue in accordance with AWWA and other industry cost of service rate- making principles. The water rates developed in this section are designed to recover the test year and forecast revenue requirements while providing funding for the identified capital improvements and existing debt service. The following is notable regarding the rate plan proposed in this study: • Town staff, the Finance Subcommittee and the Water Utility Commission evaluated numerous alternative rate plans before ultimately recommending the rate plan presented in this study. The general consensus was that this pla n was the most fair, just and reasonable alternative presented. • While the rate model presents a forecast of rates for ten years, the project team recommends that the Town adopt a rate plan for FY 2022/2023, with rates to be implemented on July 1, 2022. • One of the most significant impacts on rates will be the cost of the Central Arizona Project water. Should the Central Arizona Project make material changes to its rate forecasts, the Town should undertake an immediate review of its rate plan. • Another significant impact on rates will be debt issued to fund the CIP. If the Town issues additional debt not currently anticipated, the Town should undertake an immediate review of its rate plan to confirm the debt costs will be fully funded through rates. • Uniform adjustments are applied to the existing base and volumetric rates for each rate class. There is no change to the basic rate structure other than the uniform annual adjustments in the base case rate plan. The rate plan and forecast revenues and expenses un der this scenario is presented in Appendix A. Town of Oro Valley 2022 Water Rate Study – FINAL Page: 33 Proposed Rate Plan Table IV-1 presents a summary of the rate plan proposed for the majority of the Town’s Residential customers. Table IV-2 presents a summary of the rate plan proposed for residential customers using 2, 3, or 4 inch meter sizes and Table IV-3 is the proposed rate plan for commercial, multifamily, turf, and reclaimed water customers. These tables present the rate plan (“Alternative C”) recommended by the Water Utility Commission out of three alternatives developed by the project team. Table IV-4 presents the customer rate impact assuming the proposed rate structure is adopted by Town Council. TABLE IV-1 TOWN OF ORO VALLEY AZ Proposed Current Jul-21 Jul-22 Jul-23 Jul-24 Jul-25 Jul-26 Residential & Irrigation 5/8" Monthly Base Charge 5/8"18.99$ 18.99$ 19.94$ 20.94$ 21.98$ 23.08$ 24.01$ Commodity Rate/1,000 Gal Tier 1 1 7,000 2.40 2.40 2.52 2.65 2.78 2.92 3.03 Tier 2 7,001 16,000 3.35 3.35 3.52 3.69 3.88 4.07 4.23 Tier 3 16,001 32,000 4.80 4.80 5.04 5.29 5.56 5.83 6.07 Tier 4 32,001 Above 6.70 6.70 7.04 7.39 7.76 8.14 8.47 Residential & Irrigation 3/4" Monthly Base Charge 3/4"28.48$ 28.48$ 29.90$ 31.39$ 32.96$ 34.61$ 36.00$ Commodity Rate/1,000 Gal Tier 1 1 10,000 2.40 2.40 2.52 2.65 2.78 2.92 3.03 Tier 2 10,001 24,000 3.35 3.35 3.52 3.69 3.88 4.07 4.23 Tier 3 24,001 48,000 4.80 4.80 5.04 5.29 5.56 5.83 6.07 Tier 4 48,001 Above 6.70 6.70 7.04 7.39 7.76 8.14 8.47 Residential & Irrigation 1" Monthly Base Charge 1"47.46$ 47.46$ 49.83$ 52.32$ 54.94$ 57.68$ 59.99$ Commodity Rate/1,000 Gal Tier 1 1 17,000 2.40 2.40 2.52 2.65 2.78 2.92 3.03 Tier 2 17,001 40,000 3.35 3.35 3.52 3.69 3.88 4.07 4.23 Tier 3 40,001 80,000 4.80 4.80 5.04 5.29 5.56 5.83 6.07 Tier 4 80,001 Above 6.70 6.70 7.04 7.39 7.76 8.14 8.47 Residential & Irrigation 1.5" Monthly Base Charge 1.5"94.91$ 94.91$ 99.66$ 104.64$ 109.87$ 115.36$ 119.98$ Commodity Rate/1,000 Gal Tier 1 1 35,000 2.40 2.40 2.52 2.65 2.78 2.92 3.03 Tier 2 35,001 80,000 3.35 3.35 3.52 3.69 3.88 4.07 4.23 Tier 3 80,001 160,000 4.80 4.80 5.04 5.29 5.56 5.83 6.07 Tier 4 160,001 Above 6.70 6.70 7.04 7.39 7.76 8.14 8.47 Forecast Town of Oro Valley 2022 Water Rate Study – FINAL Page: 34 TABLE IV-2 TOWN OF ORO VALLEY AZ Proposed Current Jul-21 Jul-22 Jul-23 Jul-24 Jul-25 Jul-26 Residential & Irrigation 2" Monthly Base Charge 2"151.87$ 151.87$ 159.46$ 167.44$ 175.81$ 184.60$ 191.98$ Commodity Rate/1,000 Gal Tier 1 1 56,000 2.40 2.40 2.52 2.65 2.78 2.92 3.03 Tier 2 56,001 128,000 3.35 3.35 3.52 3.69 3.88 4.07 4.23 Tier 3 128,001 256,000 4.80 4.80 5.04 5.29 5.56 5.83 6.07 Tier 4 256,001 Above 6.70 6.70 7.04 7.39 7.76 8.14 8.47 Residential & Irrigation 3" Monthly Base Charge 3"303.71$ 303.71$ 318.90$ 334.84$ 351.58$ 369.16$ 383.93$ Commodity Rate/1,000 Gal Tier 1 1 112,000 2.40 2.40 2.52 2.65 2.78 2.92 3.03 Tier 2 112,001 256,000 3.35 3.35 3.52 3.69 3.88 4.07 4.23 Tier 3 256,001 512,000 4.80 4.80 5.04 5.29 5.56 5.83 6.07 Tier 4 512,001 Above 6.70 6.70 7.04 7.39 7.76 8.14 8.47 Residential & Irrigation 4" Monthly Base Charge 4"474.56$ 474.56$ 498.29$ 523.21$ 549.37$ 576.83$ 599.91$ Commodity Rate/1,000 Gal Tier 1 1 175,000 2.40 2.40 2.52 2.65 2.78 2.92 3.03 Tier 2 175,001 400,000 3.35 3.35 3.52 3.69 3.88 4.07 4.23 Tier 3 400,001 800,000 4.80 4.80 5.04 5.29 5.56 5.83 6.07 Tier 4 800,001 Above 6.70 6.70 7.04 7.39 7.76 8.14 8.47 Forecast Town of Oro Valley 2022 Water Rate Study – FINAL Page: 35 TABLE IV-3 TABLE IV-4 TOWN OF ORO VALLEY AZ Proposed Current Jul-21 Jul-22 Jul-23 Jul-24 Jul-25 Jul-26 Commercial, Turf & Multifamily Monthly Base Charge 5/8"18.99$ 18.99$ 19.94$ 20.94$ 21.98$ 23.08$ 24.01$ 3/4"28.48 28.48 29.90 31.39 32.96 34.61 36.00 1"47.46 47.46 49.83 52.32 54.94 57.68 59.99 1 1/2"94.91 94.91 99.66 104.64 109.87 115.36 119.98 2"151.87 151.87 159.46 167.44 175.81 184.60 191.98 3"303.71 303.71 318.90 334.84 351.58 369.16 383.93 4"474.56 474.56 498.29 523.21 549.37 576.83 599.91 6"949.12 949.12 996.58 1,046.41 1,098.73 1,153.67 1,199.81 8"1,518.60 1,518.60 1,594.53 1,674.25 1,757.97 1,845.86 1,919.70 Commodity Rate/1,000 Gal 1 Above 2.40 2.40 2.52 2.65 2.78 2.92 3.03 Construction Rate/1,000 Gal 1 Above 7.29 7.29 7.65 8.04 8.44 8.86 9.22 W9 Construction Monthly Base Charge 5/8"18.99$ 18.99$ 19.94$ 20.94$ 21.98$ 23.08$ 24.01$ 3/4"28.48 28.48 29.90 31.39 32.96 34.61 36.00 1"47.46 47.46 49.83 52.32 54.94 57.68 59.99 1 1/2"94.91 94.91 99.66 104.64 109.87 115.36 119.98 2"151.87 151.87 159.46 167.44 175.81 184.60 191.98 3"303.71 303.71 318.90 334.84 351.58 369.16 383.93 4"474.56 474.56 498.29 523.21 549.37 576.83 599.91 6"949.12 949.12 996.58 1,046.41 1,098.73 1,153.67 1,199.81 8"1,518.60 1,518.60 1,594.53 1,674.25 1,757.97 1,845.86 1,919.70 Commodity Rate/1,000 Gal 1 Above 7.29 7.29 7.65 8.04 8.44 8.86 9.22 W10 Reclaimed Water Monthly Base Charge 5/8"14.62$ 14.62$ 14.62$ 14.62$ 14.62$ 14.62$ 14.62$ 3/4"21.93 21.93 21.93 21.93 21.93 21.93 21.93 1"36.54 36.54 36.54 36.54 36.54 36.54 36.54 1 1/2"73.08 73.08 73.08 73.08 73.08 73.08 73.08 2"116.94 116.94 116.94 116.94 116.94 116.94 116.94 3"233.86 233.86 233.86 233.86 233.86 233.86 233.86 4"365.41 365.41 365.41 365.41 365.41 365.41 365.41 6"730.83 730.83 730.83 730.83 730.83 730.83 730.83 8"1,169.32 1,169.32 1,169.32 1,169.32 1,169.32 1,169.32 1,169.32 Commodity Rate/1,000 Gal 1,001 Above 2.25 2.25 2.25 2.25 2.25 2.25 2.25 Forecast TOWN OF ORO VALLEY AZ Proposed Jul-21 Jul-22 Jul-23 Jul-24 Jul-25 Jul-26 Residential Monthly Charges - 5/8" 7,000 Water 35.79$ 35.79$ 37.58$ 39.46$ 41.43$ 43.50$ 45.24$ Increase -- $- 1.79 1.88 1.97 2.07 1.74 Increase -- %0.0%5.0%5.0%5.0%5.0%4.0% 10,000 Water 45.84 45.84 48.13 50.54 53.07 55.72 57.95 Increase -- $- 2.29 2.41 2.53 2.65 2.23 Increase -- %0.0%5.0%5.0%5.0%5.0%4.0% Commercial Monthly Charge -- 2" 50,000 Water 271.87 271.87 285.46 299.74 314.72 330.46 343.68 Increase -- $- 13.59 14.27 14.99 15.74 13.22 Increase -- %0.0%5.0%5.0%5.0%5.0%4.0% Forecast Town of Oro Valley 2022 Water Rate Study – FINAL Page: 36 The projected rate revenues developed are forecast to be sufficient to fund all operating and current scheduled capital obligations in each of the next ten years (FY 20 22 through FY 2031). Rate revenues are sufficient to fund the water existing debt service and future debt service over the forecast period. Forecast rate revenues by year are presented in Appendix A. Notes on Rate Recommendations The forecast and recommendations presented in this study represent a combination of the best information available from the Town of Oro Valley and the project team’s expertise. However, this forecast relies in part on assumptions about future events and events beyond the control of the project team (such as account growth rates within the Town). The forecast and recommendations contained in this study may be subject to revision if any of the following events occurs: • Actual growth in accounts and consumed volumes is less than (or significantly greater than) forecast. • Capital improvement plan funding costs increase significantly due to the rising cost of materials or other factors such as NWRRDS costs. • An unforeseen event impacts the Town, such as an extended recession, natural catastrophe, or terrorist attack. • Significant and long-lasting changes in weather patterns. • Increases or decreases in interest rates, coverage requirements, or reserve requirements for long - term debt. • The Town of Oro Valley budget levels or priorities change significantly from those forecast in this study. It should be noted that none of these events are foreseen by the project team or the Town of Oro Valley at this time. If any of these events occur, the Town may be compelled to consider further adjustments to its water rates. Appendix A Date: 2/18/2022 2022 02 18 Oro Valley AZ Rate Model Presentation Version Main Dashboard Future Debt Term Alternative Proposed 2022 8,000,000$ 2023 -$ 2024 -$ 2025 -$ 2026 -$ 2027 -$ 2028 -$ 2029 -$ 2030 -$ 2031 -$ Alternative Proposed 2022 -$ 2023 -$ 2024 -$ 2025 -$ 2026 -$ 2027 -$ 2028 -$ 2029 -$ 2030 -$ 2031 -$ 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 Water Rate Adjustments Meter Charge 0.00%5.00%5.00%5.00%5.00%4.00%0.00%2.00%0.00%2.00% Volume Charge 0.00%5.00%5.00%5.00%5.00%4.00%0.00%2.00%0.00%2.00% Water Future Bond Issues Sewer Future Bond Issues Utility System Dashboard Customer Class ` $- $5.00 $10.00 $15.00 $20.00 $25.00 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031MillionsTotal Revenues $- $1.00 $2.00 $3.00 $4.00 $5.00 $6.00 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031MillionsDebt Service Current Future $(3.00) $(2.00) $(1.00) $- $1.00 $2.00 $3.00 $4.00 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031MillionsNet Revenues Available for Contingency - 1.00 2.00 3.00 4.00 5.00 6.00 7.00 8.00 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 Debt Coverage (Excise Tax Debt = 1.0x) Required Debt Coverage Water Projections Town of Oro Valley Ten Year Rate Analysis and Pro Forma Fiscal Years Years 2022 -2031 Date: 2/18/2022 2022 02 18 Oro Valley AZ Rate Model Presentation Version City Rate Plan Effective Effective Effective Effective Effective Effective Effective Effective Effective Effective Current Jul-21 Jul-22 Jul-23 Jul-24 Jul-25 Jul-26 Jul-27 Jul-28 Jul-29 Jul-30 Water Summary ` Scen:2022 02 18 -- Equal Percent Adjustments 1 Water Monthly Rates and Charges CITY Water Rate and Charges W1 Residential & Irrigation 5/8" Monthly Minimum Charge 3/4"18.99 18.99 19.94 20.94 21.98 23.08 24.01 24.01 24.49 24.49 24.98 Volume Rate/1,000 Gal 1 7,000 2.40 2.40 2.52 2.65 2.78 2.92 3.03 3.03 3.09 3.09 3.16 7,001 16,000 3.35 3.35 3.52 3.69 3.88 4.07 4.23 4.23 4.32 4.32 4.41 16,001 32,000 4.80 4.80 5.04 5.29 5.56 5.83 6.07 6.07 6.19 6.19 6.31 32,001 Above 6.70 6.70 7.04 7.39 7.76 8.14 8.47 8.47 8.64 8.64 8.81 W2 Residential & Irrigation 3/4" Monthly Minimum Charge 3/4"28.48 28.48 29.90 31.39 32.96 34.61 36.00 36.00 36.72 36.72 37.45 Volume Rate/1,000 Gal 1 10,000 2.40 2.40 2.52 2.65 2.78 2.92 3.03 3.03 3.09 3.09 3.16 10,001 24,000 3.35 3.35 3.52 3.69 3.88 4.07 4.23 4.23 4.32 4.32 4.41 24,001 48,000 4.80 4.80 5.04 5.29 5.56 5.83 6.07 6.07 6.19 6.19 6.31 48,001 Above 6.70 6.70 7.04 7.39 7.76 8.14 8.47 8.47 8.64 8.64 8.81 TOWN OF ORO VALLEY AZ WATER COST OF SERVICE MODEL Intellectual Property of Economists.com, LLC / Willdan Group Inc. - Not to be used without express written permission Page: 2 Date: 2/18/2022 2022 02 18 Oro Valley AZ Rate Model Presentation Version City Rate Plan Effective Effective Effective Effective Effective Effective Effective Effective Effective Effective Current Jul-21 Jul-22 Jul-23 Jul-24 Jul-25 Jul-26 Jul-27 Jul-28 Jul-29 Jul-30 Water Summary ` Scen:2022 02 18 -- Equal Percent Adjustments TOWN OF ORO VALLEY AZ WATER COST OF SERVICE MODEL W3 Residential & Irrigation 1" Monthly Minimum Charge 1"47.46 47.46 49.83 52.32 54.94 57.68 59.99 59.99 61.19 61.19 62.41 Volume Rate/1,000 Gal 1 17,000 2.40 2.40 2.52 2.65 2.78 2.92 3.03 3.03 3.09 3.09 3.16 17,001 40,000 3.35 3.35 3.52 3.69 3.88 4.07 4.23 4.23 4.32 4.32 4.41 40,001 80,000 4.80 4.80 5.04 5.29 5.56 5.83 6.07 6.07 6.19 6.19 6.31 80,001 Above 6.70 6.70 7.04 7.39 7.76 8.14 8.47 8.47 8.64 8.64 8.81 W4 Residential & Irrigation 1.5" Monthly Minimum Charge 1 1/2"94.91 94.91 99.66 104.64 109.87 115.36 119.98 119.98 122.38 122.38 124.83 Volume Rate/1,000 Gal 1 35,000 2.40 2.40 2.52 2.65 2.78 2.92 3.03 3.03 3.09 3.09 3.16 35,001 80,000 3.35 3.35 3.52 3.69 3.88 4.07 4.23 4.23 4.32 4.32 4.41 80,001 160,000 4.80 4.80 5.04 5.29 5.56 5.83 6.07 6.07 6.19 6.19 6.31 160,001 Above 6.70 6.70 7.04 7.39 7.76 8.14 8.47 8.47 8.64 8.64 8.81 W5 Residential & Irrigation 2" Monthly Minimum Charge 2"151.87 151.87 159.46 167.44 175.81 184.60 191.98 191.98 195.82 195.82 199.74 Volume Rate/1,000 Gal 1 56,000 2.40 2.40 2.52 2.65 2.78 2.92 3.03 3.03 3.09 3.09 3.16 56,001 128,000 3.35 3.35 3.52 3.69 3.88 4.07 4.23 4.23 4.32 4.32 4.41 128,001 256,000 4.80 4.80 5.04 5.29 5.56 5.83 6.07 6.07 6.19 6.19 6.31 256,001 Above 6.70 6.70 7.04 7.39 7.76 8.14 8.47 8.47 8.64 8.64 8.81 Intellectual Property of Economists.com, LLC / Willdan Group Inc. - Not to be used without express written permission Page: 3 Date: 2/18/2022 2022 02 18 Oro Valley AZ Rate Model Presentation Version City Rate Plan Effective Effective Effective Effective Effective Effective Effective Effective Effective Effective Current Jul-21 Jul-22 Jul-23 Jul-24 Jul-25 Jul-26 Jul-27 Jul-28 Jul-29 Jul-30 Water Summary ` Scen:2022 02 18 -- Equal Percent Adjustments TOWN OF ORO VALLEY AZ WATER COST OF SERVICE MODEL W6 Residential & Irrigation 3" Monthly Minimum Charge 3"303.71 303.71 318.90 334.84 351.58 369.16 383.93 383.93 391.61 391.61 399.44 Volume Rate/1,000 Gal 1 112,000 2.40 2.40 2.52 2.65 2.78 2.92 3.03 3.03 3.09 3.09 3.16 112,001 256,000 3.35 3.35 3.52 3.69 3.88 4.07 4.23 4.23 4.32 4.32 4.41 256,001 512,000 4.80 4.80 5.04 5.29 5.56 5.83 6.07 6.07 6.19 6.19 6.31 512,001 Above 6.70 6.70 7.04 7.39 7.76 8.14 8.47 8.47 8.64 8.64 8.81 W7 Residential & Irrigation 4" Monthly Minimum Charge 4"474.56 474.56 498.29 523.21 549.37 576.83 599.91 599.91 611.91 611.91 624.14 Volume Rate/1,000 Gal 1 175,000 2.40 2.40 2.52 2.65 2.78 2.92 3.03 3.03 3.09 3.09 3.16 175,001 400,000 3.35 3.35 3.52 3.69 3.88 4.07 4.23 4.23 4.32 4.32 4.41 400,001 800,000 4.80 4.80 5.04 5.29 5.56 5.83 6.07 6.07 6.19 6.19 6.31 800,001 Above 6.70 6.70 7.04 7.39 7.76 8.14 8.47 8.47 8.64 8.64 8.81 W8 Commercial, Turf & Multifamily Monthly Minimum Charge 5/8"18.99$ 18.99$ 19.94$ 20.94$ 21.98$ 23.08$ 24.01$ 24.01$ 24.49$ 24.49$ 24.98$ 3/4"28.48 28.48 29.90 31.39 32.96 34.61 36.00 36.00 36.72 36.72 37.45 1"47.46 47.46 49.83 52.32 54.94 57.68 59.99 59.99 61.19 61.19 62.41 1 1/2"94.91 94.91 99.66 104.64 109.87 115.36 119.98 119.98 122.38 122.38 124.83 2"151.87 151.87 159.46 167.44 175.81 184.60 191.98 191.98 195.82 195.82 199.74 3"303.71 303.71 318.90 334.84 351.58 369.16 383.93 383.93 391.61 391.61 399.44 4"474.56 474.56 498.29 523.21 549.37 576.83 599.91 599.91 611.91 611.91 624.14 6"949.12 949.12 996.58 1,046.41 1,098.73 1,153.67 1,199.81 1,199.81 1,223.81 1,223.81 1,248.29 8"1,518.60 1,518.60 1,594.53 1,674.25 1,757.97 1,845.86 1,919.70 1,919.70 1,958.09 1,958.09 1,997.26 Volume Rate/1,000 Gal 1 Above 2.40 2.40 2.52 2.65 2.78 2.92 3.03 3.03 3.09 3.09 3.16 Intellectual Property of Economists.com, LLC / Willdan Group Inc. - Not to be used without express written permission Page: 4 Date: 2/18/2022 2022 02 18 Oro Valley AZ Rate Model Presentation Version City Rate Plan Effective Effective Effective Effective Effective Effective Effective Effective Effective Effective Current Jul-21 Jul-22 Jul-23 Jul-24 Jul-25 Jul-26 Jul-27 Jul-28 Jul-29 Jul-30 Water Summary ` Scen:2022 02 18 -- Equal Percent Adjustments TOWN OF ORO VALLEY AZ WATER COST OF SERVICE MODEL W9 Construction Monthly Minimum Charge 5/8"18.99$ 18.99$ 19.94$ 20.94$ 21.98$ 23.08$ 24.01$ 24.01$ 24.49$ 24.49$ 24.98$ 3/4"28.48 28.48 29.90 31.39 32.96 34.61 36.00 36.00 36.72 36.72 37.45 1"47.46 47.46 49.83 52.32 54.94 57.68 59.99 59.99 61.19 61.19 62.41 1 1/2"94.91 94.91 99.66 104.64 109.87 115.36 119.98 119.98 122.38 122.38 124.83 2"151.87 151.87 159.46 167.44 175.81 184.60 191.98 191.98 195.82 195.82 199.74 3"303.71 303.71 318.90 334.84 351.58 369.16 383.93 383.93 391.61 391.61 399.44 4"474.56 474.56 498.29 523.21 549.37 576.83 599.91 599.91 611.91 611.91 624.14 6"949.12 949.12 996.58 1,046.41 1,098.73 1,153.67 1,199.81 1,199.81 1,223.81 1,223.81 1,248.29 8"1,518.60 1,518.60 1,594.53 1,674.25 1,757.97 1,845.86 1,919.70 1,919.70 1,958.09 1,958.09 1,997.26 Volume Rate/1,000 Gal 1 Above 7.29 7.29 7.65 8.04 8.44 8.86 9.22 9.22 9.40 9.40 9.59 W10 Reclaimed Water Monthly Minimum Charge 5/8"14.62$ 14.62$ 14.62$ 14.62$ 14.62$ 14.62$ 14.62$ 14.62$ 14.62$ 14.62$ 14.62$ 3/4"21.93 21.93 21.93 21.93 21.93 21.93 21.93 21.93 21.93 21.93 21.93 1"36.54 36.54 36.54 36.54 36.54 36.54 36.54 36.54 36.54 36.54 36.54 1 1/2"73.08 73.08 73.08 73.08 73.08 73.08 73.08 73.08 73.08 73.08 73.08 2"116.94 116.94 116.94 116.94 116.94 116.94 116.94 116.94 116.94 116.94 116.94 3"233.86 233.86 233.86 233.86 233.86 233.86 233.86 233.86 233.86 233.86 233.86 4"365.41 365.41 365.41 365.41 365.41 365.41 365.41 365.41 365.41 365.41 365.41 6"730.83 730.83 730.83 730.83 730.83 730.83 730.83 730.83 730.83 730.83 730.83 8"1,169.32 1,169.32 1,169.32 1,169.32 1,169.32 1,169.32 1,169.32 1,169.32 1,169.32 1,169.32 1,169.32 Volume Rate/1,000 Gal 1,001 Above 2.25 2.25 2.25 2.25 2.25 2.25 2.25 2.25 2.25 2.25 2.25 Intellectual Property of Economists.com, LLC / Willdan Group Inc. - Not to be used without express written permission Page: 5 Date: 2/18/2022 2022 02 18 Oro Valley AZ Rate Model Presentation Version City Rate Plan Effective Effective Effective Effective Effective Effective Effective Effective Effective Effective Current Jul-21 Jul-22 Jul-23 Jul-24 Jul-25 Jul-26 Jul-27 Jul-28 Jul-29 Jul-30 Water Summary ` Scen:2022 02 18 -- Equal Percent Adjustments TOWN OF ORO VALLEY AZ WATER COST OF SERVICE MODEL 3 Residential Monthly Charges -- 5/8" Meter 7,000 Gallons City Total 35.79$ 35.79$ 37.58$ 39.46$ 41.43$ 43.50$ 45.24$ 45.24$ 46.15$ 46.15$ 47.07$ Dollar Inc - 1.79 1.88 1.97 2.07 1.74 - 0.90 - 0.92 Percent Inc 0.0%5.0%5.0%5.0%5.0%4.0%0.0%2.0%0.0%2.0% 10,000 Gallons City Total 45.84 45.84 48.13 50.54 53.07 55.72 57.95 57.95 59.11 59.11 60.29 Dollar Inc - 2.29 2.41 2.53 2.65 2.23 - 1.16 - 1.18 Percent Inc 0.0%5.0%5.0%5.0%5.0%4.0%0.0%2.0%0.0%2.0% 20,000 Gallons City Total 85.14 85.14 89.40 93.87 98.56 103.49 107.63 107.63 109.78 109.78 111.98 Dollar Inc - 4.26 4.47 4.69 4.93 4.14 - 2.15 - 2.20 Percent Inc 0.0%5.0%5.0%5.0%5.0%4.0%0.0%2.0%0.0%2.0% 30,000 Gallons City Total 133.14 133.14 139.80 146.79 154.13 161.83 168.31 168.31 171.67 171.67 175.11 Dollar Inc - 6.66 6.99 7.34 7.71 6.47 - 3.37 - 3.43 Percent Inc 0.0%5.0%5.0%5.0%5.0%4.0%0.0%2.0%0.0%2.0% 4 Commercial Monthly Charges -- WATER 20,000 Gallons City -- 2" Meter Total 199.87 199.87 209.86 220.36 231.38 242.94 252.66 252.66 257.72 257.72 262.87 Dollar Inc - 9.99 10.49 11.02 11.57 9.72 - 5.05 - 5.15 Percent Inc 0.0%5.0%5.0%5.0%5.0%4.0%0.0%2.0%0.0%2.0% 50,000 Gallons City -- 2" Meter Total 271.87 271.87 285.46 299.74 314.72 330.46 343.68 343.68 350.55 350.55 357.56 Dollar Inc - 13.59 14.27 14.99 15.74 13.22 - 6.87 - 7.01 Percent Inc 0.0%5.0%5.0%5.0%5.0%4.0%0.0%2.0%0.0%2.0% Intellectual Property of Economists.com, LLC / Willdan Group Inc. - Not to be used without express written permission Page: 10 Date: 2/18/2022 2022 02 18 Oro Valley AZ Rate Model Presentation Version Revenue Expense Summary Current 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 Forecast Summary Scenario:2022 02 18 -- Equal Percent Adjustments 3 Fund Balance, Revenues and Expenses Beginning of TY Operating Fund Balance 9,639,036$ Beginning of TY GPF Fund Balance 3,587,830$ Revised Beginning Combined Fund Balance 13,226,866$ 10,572,626$ 9,643,527$ 8,471,244$ 8,565,085$ 9,094,337$ 10,209,788$ 12,715,032$ 15,502,798$ 18,707,290$ Revenues and Expenses Water Rate Revenues (Includes Reclaimed Water Revenue)14,733,270 15,521,789 16,362,860 17,208,491 18,101,308 18,889,369 19,053,093 19,486,015 19,625,273 20,070,875 Ground Protection Fees 2,394,530 2,421,614 2,440,149 2,452,650 2,465,150 2,477,650 2,490,151 2,502,651 2,515,151 2,527,652 Non-Rate Revenues 975,000 975,000 975,000 975,000 975,000 975,000 975,000 975,000 975,000 975,000 Total Revenues 18,102,800 18,918,403 19,778,009 20,636,141 21,541,457 22,342,019 22,518,244 22,963,666 23,115,425 23,573,527 Operating Expenses P Personnel 3,662,217 3,726,253 3,791,571 3,858,194 3,926,150 3,995,464 4,066,166 4,138,281 4,211,838 4,286,867 CAP Central Arizona Project 4,062,888 4,354,865 4,619,187 4,097,405 4,193,347 4,317,860 4,501,943 4,693,510 4,892,653 5,104,623 O&M Operations & Maintenance 2,580,788 2,641,478 2,703,964 2,768,320 2,834,625 2,902,961 2,973,414 3,046,077 3,121,045 3,198,423 A Administrative Expense 205,116 209,218 213,403 217,671 222,024 226,465 230,994 235,614 240,326 245,133 U Utilities 850,000 892,500 937,125 983,981 1,033,180 1,084,839 1,139,081 1,196,035 1,255,837 1,318,629 REC Reclaimed Water 949,070 971,870 995,360 1,019,568 1,044,524 1,070,261 1,096,811 1,124,210 1,152,494 1,181,703 NWWRRDS Northwest Recharge, Recovery & Delivery System 0 0 160,000 320,000 480,000 499,200 519,168 539,935 561,532 583,994 0 Total 12,310,079 12,796,184 13,420,608 13,265,139 13,733,851 14,097,050 14,527,577 14,973,661 15,435,727 15,919,371 Net Revenues for Transfers,Capital Outlays and Debt Service 5,792,721 6,122,219 6,357,401 7,371,002 7,807,606 8,244,969 7,990,667 7,990,005 7,679,698 7,654,155 Capital Outlays 3,511,650 1,670,650 3,250,650 3,250,650 3,250,650 3,250,650 3,250,650 3,250,650 3,250,650 3,250,650 Net Revenues Available for Debt Service 2,281,071 4,451,569 3,106,751 4,120,352 4,556,956 4,994,319 4,740,017 4,739,355 4,429,048 4,403,505 Current Debt Service 4,935,311 4,780,241 3,678,607 3,426,083 3,427,277 3,278,441 1,634,346 1,351,161 624,129 513,438 Future Debt Service - 600,427 600,427 600,427 600,427 600,427 600,427 600,427 600,427 600,427 Total Debt Service 4,935,311 5,380,668 4,279,034 4,026,510 4,027,705 3,878,868 2,234,774 1,951,588 1,224,556 1,113,865 Net Revenues for Contingencies and Transfers (2,654,240) (929,099) (1,172,283) 93,841 529,252 1,115,451 2,505,243 2,787,766 3,204,492 3,289,640 Contingency/Reserve - - - - - - - - - - Other Miscelaneous Transfers - - - - - - - - - - Total Contingencies & Transfers - - - - - - - - - - Total Cost of Service 20,757,039 19,847,502 20,950,293 20,542,299 21,012,205 21,226,568 20,013,001 20,175,900 19,910,933 20,283,887 Net Revenues (2,654,240) (929,099) (1,172,283) 93,841 529,252 1,115,451 2,505,243 2,787,766 3,204,492 3,289,640 Percent of COS -12.8%-4.7%-5.6%0.5%2.5%5.3%12.5%13.8%16.1%16.2% TOWN OF ORO VALLEY AZ WATER COST OF SERVICE MODEL Intellectual Property of Economists.com, LLC / Willdan Group Inc. - Not to be used without express written permission 12 Date: 2/18/2022 2022 02 18 Oro Valley AZ Rate Model Presentation Version Revenue Expense Summary Current 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 Forecast Summary Scenario:2022 02 18 -- Equal Percent Adjustments TOWN OF ORO VALLEY AZ WATER COST OF SERVICE MODEL Ending Water Combined Fund Balance 10,572,626$ 9,643,527$ 8,471,244$ 8,565,085$ 9,094,337$ 10,209,788$ 12,715,032$ 15,502,798$ 18,707,290$ 21,996,930$ Ending Operating Fund Balance 8,041,966$ 6,426,377$ 5,483,871$ 4,099,453$ 3,125,164$ 2,721,906$ 3,699,812$ 4,776,422$ 6,043,208$ 7,320,199$ Ending GPF Fund Balance 2,530,660$ 3,217,149$ 2,987,372$ 4,465,632$ 5,969,173$ 7,487,883$ 9,015,220$ 10,726,376$ 12,664,082$ 14,676,731$ Revenue Adequacy Tests Total Exp (Budgetary Basis)20,757,039 19,847,502 20,950,293 20,542,299 21,012,205 21,226,568 20,013,001 20,175,900 19,910,933 20,283,887 Expenses per Day 56,869 54,377 57,398 56,280 57,568 58,155 54,830 55,276 54,551 55,572 Working Capital as % of Tot Exp.51%49%40%42%43%48%64%77%94%108% Number of Working Capital Days 186 177 148 152 158 176 232 280 343 396 All In Debt Coverage (include Excise Tax Debt)1.17 1.14 1.49 1.83 1.94 2.13 3.58 4.09 6.27 6.87 Goal is 1.30 (excludes Capital Outlays and Transfers) Debt Coverage Less Excise Tax Debt (Excise Tax debt = 1.0x Coverage)1.27 1.21 1.84 2.50 2.69 2.95 3.58 4.09 6.27 6.87 Goal is 1.30 (excludes Capital Outlays and Transfers) Fund Balance Reserve Requirement Minimum Requirement (20% O&M plus Debt Service)987,062$ 1,076,134$ 855,807$ 805,302$ 805,541$ 775,774$ 446,955$ 390,318$ 244,911$ 222,773$ Fund Ratio to Requirement (1.0 Meets Requirement)10.71 8.96 9.90 10.64 11.29 13.16 28.45 39.72 76.38 98.74 Intellectual Property of Economists.com, LLC / Willdan Group Inc. - Not to be used without express written permission 13 Date: 2/18/2022 2022 02 18 Oro Valley AZ Rate Model Presentation Version Water Summary Current 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 Water Summary Scen:2022 02 18 -- Equal Percent Adjustments 1 Water Monthly Rates and Charges Residential and Irrigation Monthly Minimum Charge 5/8"18.99$ 18.99$ 19.94$ 20.94$ 21.98$ 23.08$ 24.01$ 24.01$ 24.49$ 24.49$ 24.98$ 3/4"28.48 28.48 29.90 31.39 32.96 34.61 36.00 36.00 36.72 36.72 37.45 1"47.46 47.46 49.83 52.32 54.94 57.68 59.99 59.99 61.19 61.19 62.41 1 1/2"94.91 94.91 99.66 104.64 109.87 115.36 119.98 119.98 122.38 122.38 124.83 2"151.87 151.87 159.46 167.44 175.81 184.60 191.98 191.98 195.82 195.82 199.74 3"303.71 303.71 318.90 334.84 351.58 369.16 383.93 383.93 391.61 391.61 399.44 Volume Rate/1,000 Gal 1 7,000 2.40 2.40 2.52 2.65 2.78 2.92 3.03 3.03 3.09 3.09 3.16 7,001 16,000 3.35 3.35 3.52 3.69 3.88 4.07 4.23 4.23 4.32 4.32 4.41 16,001 32,000 4.80 4.80 5.04 5.29 5.56 5.83 6.07 6.07 6.19 6.19 6.31 32,001 Above 6.70 6.70 7.04 7.39 7.76 8.14 8.47 8.47 8.64 8.64 8.81 - - 6.70 6.70 7.04 7.39 7.76 8.14 8.47 8.47 8.64 8.64 8.81 Commercial Monthly Minimum Charge 5/8"18.99$ 18.99$ 19.94$ 20.94$ 21.98$ 23.08$ 24.01$ 24.01$ 24.49$ 24.49$ 24.98$ 3/4"28.48 28.48 29.90 31.39 32.96 34.61 36.00 36.00 36.72 36.72 37.45 1"47.46 47.46 49.83 52.32 54.94 57.68 59.99 59.99 61.19 61.19 62.41 1 1/2"94.91 94.91 99.66 104.64 109.87 115.36 119.98 119.98 122.38 122.38 124.83 2"151.87 151.87 159.46 167.44 175.81 184.60 191.98 191.98 195.82 195.82 199.74 3"303.71 303.71 318.90 334.84 351.58 369.16 383.93 383.93 391.61 391.61 399.44 4"474.56 474.56 498.29 523.21 549.37 576.83 599.91 599.91 611.91 611.91 624.14 6"949.12 949.12 996.58 1,046.41 1,098.73 1,153.67 1,199.81 1,199.81 1,223.81 1,223.81 1,248.29 Volume Rate Per 1,000 Gal - Commercial Volume Charge 2.40$ 2.40$ 2.52$ 2.65$ 2.78$ 2.92$ 3.03$ 3.03$ 3.09$ 3.09$ 3.16$ 2.1 Residential Monthly Bill -- 5/8" 5,000 Gallons Total 30.99$ 30.99$ 32.54$ 34.17$ 35.88$ 37.67$ 39.18$ 39.18$ 39.96$ 39.96$ 40.76$ Dollar Inc - 1.55 1.63 1.71 1.79 1.51 - 0.78 - 0.80 Percent Inc 0.0%5.0%5.0%5.0%5.0%4.0%0.0%2.0%0.0%2.0% 10,000 Gallons Total 45.84 45.84 48.13 50.54 53.07 55.72 57.95 57.95 59.11 59.11 60.29 Dollar Inc - 2.29 2.41 2.53 2.65 2.23 - 1.16 - 1.18 Percent Inc 0.0%5.0%5.0%5.0%5.0%4.0%0.0%2.0%0.0%2.0% 20,000 Gallons Total 85.14 85.14 89.40 93.87 98.56 103.49 107.63 107.63 109.78 109.78 111.98 Dollar Inc - 4.26 4.47 4.69 4.93 4.14 - 2.15 - 2.20 Percent Inc 0.0%5.0%5.0%5.0%5.0%4.0%0.0%2.0%0.0%2.0% TOWN OF ORO VALLEY AZ WATER COST OF SERVICE MODEL 14 Date: 2/18/2022 2022 02 18 Oro Valley AZ Rate Model Presentation Version Water Summary Current 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 Water Summary Scen:2022 02 18 -- Equal Percent Adjustments TOWN OF ORO VALLEY AZ WATER COST OF SERVICE MODEL 2.2 Commercial Monthly Bill -- 20,000 Gallons 3/4"66.99$ 66.99$ 70.34$ 73.86$ 77.55$ 81.43$ 84.68$ 84.68$ 86.38$ 86.38$ 88.11$ 1"76.48 76.48 80.30 84.31 88.53 92.96 96.67 96.67 98.61 98.61 100.58 1 1/2"95.46 95.46 100.23 105.24 110.50 116.03 120.67 120.67 123.08 123.08 125.54 2"142.91 142.91 150.06 157.56 165.44 173.71 180.66 180.66 184.27 184.27 187.96 3"199.87 199.87 209.86 220.36 231.38 242.94 252.66 252.66 257.72 257.72 262.87 4"351.71 351.71 369.30 387.76 407.15 427.51 444.61 444.61 453.50 453.50 462.57 6"522.56 522.56 548.69 576.13 604.93 635.18 660.58 660.58 673.80 673.80 687.27 8"997.12 997.12 1,046.98 1,099.33 1,154.30 1,212.01 1,260.49 1,260.49 1,285.70 1,285.70 1,311.42 50,000 Gallons 3/4"138.99$ 138.99$ 145.94$ 153.24$ 160.90$ 168.94$ 175.70$ 175.70$ 179.22$ 179.22$ 182.80$ 1"148.48 148.48 155.90 163.69 171.88 180.47 187.69 187.69 191.45 191.45 195.27 1 1/2"167.46 167.46 175.83 184.62 193.85 203.54 211.68 211.68 215.92 215.92 220.24 2"214.91 214.91 225.66 236.94 248.79 261.22 271.67 271.67 277.11 277.11 282.65 3"271.87 271.87 285.46 299.74 314.72 330.46 343.68 343.68 350.55 350.55 357.56 4"423.71 423.71 444.90 467.14 490.50 515.02 535.62 535.62 546.34 546.34 557.26 6"594.56 594.56 624.29 655.51 688.28 722.69 751.60 751.60 766.63 766.63 781.97 8"1,069.12 1,069.12 1,122.58 1,178.71 1,237.65 1,299.53 1,351.51 1,351.51 1,378.54 1,378.54 1,406.11 3 Total Accounts Total Accounts 21,331 21,625 21,844 21,993 22,142 22,291 22,440 22,589 22,738 22,887 New Accounts 294 219 149 149 149 149 149 149 149 Avg. Annual Growth Rate 1.38%1.01%0.68%0.68%0.67%0.67%0.66%0.66%0.66% 15 Date: 2/18/2022 2022 02 18 Oro Valley AZ Rate Model Presentation Version Water Summary Current 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 Water Summary Scen:2022 02 18 -- Equal Percent Adjustments TOWN OF ORO VALLEY AZ WATER COST OF SERVICE MODEL 4 Annual Water Consumption W.1 Residential & Irrigation 5/8"1,444,476,233 1,464,689,421 1,479,675,060 1,489,781,654 1,499,888,248 1,509,994,842 1,520,101,436 1,530,208,030 1,540,314,624 1,550,421,218 W.2 Residential & Irrigation 3/4"188,922,762 191,566,441 193,526,410 194,848,249 196,170,089 197,491,928 198,813,767 200,135,607 201,457,446 202,779,286 W.3 Residential & Irrigation 1"152,687,088 154,823,705 156,407,749 157,476,057 158,544,366 159,612,675 160,680,983 161,749,292 162,817,600 163,885,909 W.4 Residential & Irrigation 1.5"38,938,765 39,483,652 39,887,620 40,160,064 40,432,507 40,704,951 40,977,395 41,249,838 41,522,282 41,794,725 W.5 Residential & Irrigation 2"93,165,025 94,468,724 95,435,259 96,087,109 96,738,958 97,390,808 98,042,657 98,694,507 99,346,356 99,998,206 W.6 Residential & Irrigation 3"16,881,063 17,117,287 17,292,418 17,410,530 17,528,642 17,646,754 17,764,867 17,882,979 18,001,091 18,119,203 W.7 Residential & Irrigation 4"50,041,170 50,741,418 51,260,567 51,610,691 51,960,815 52,310,939 52,661,063 53,011,187 53,361,311 53,711,435 W.8 Commercial, Turf & Multifamily 327,014,495 329,329,642 329,329,642 329,329,642 329,329,642 329,329,642 329,329,642 329,329,642 329,329,642 329,329,642 W.9 Construction 38,337,280 38,337,280 38,337,280 38,337,280 38,337,280 38,337,280 38,337,280 38,337,280 38,337,280 38,337,280 Sub-Total 2,350,463,880 2,380,557,569 2,401,152,005 2,415,041,276 2,428,930,547 2,442,819,819 2,456,709,090 2,470,598,361 2,484,487,632 2,498,376,903 W.10 Reclaimed Water 593,856,096 593,856,096 593,856,096 593,856,096 593,856,096 593,856,096 593,856,096 593,856,096 593,856,096 593,856,096 Total System 2,944,319,976 2,974,413,665 2,995,008,101 3,008,897,372 3,022,786,643 3,036,675,915 3,050,565,186 3,064,454,457 3,078,343,728 3,092,232,999 5 Revenues and Expenses -- CASH BASIS Water Revenues Water Rate Revenue W.1 Residential & Irrigation 5/8"8,514,696$ 9,029,564$ 9,578,045$ 10,125,639$ 10,704,048$ 11,215,808$ 11,327,182$ 11,611,538$ 11,707,358$ 12,000,218$ W.2 Residential & Irrigation 3/4"1,175,712 1,246,805 1,322,540 1,398,152 1,478,018 1,548,682 1,564,061 1,603,325 1,616,556 1,656,994 W.3 Residential & Irrigation 1"826,340 876,307 929,537 982,680 1,038,814 1,088,480 1,099,288 1,126,885 1,136,184 1,164,606 W.4 Residential & Irrigation 1.5"185,451 196,665 208,611 220,538 233,135 244,282 246,707 252,901 254,988 261,366 W.5 Residential & Irrigation 2"432,142 458,273 486,110 513,902 543,257 569,230 574,883 589,315 594,178 609,041 W.6 Residential & Irrigation 3"66,448 70,466 74,746 79,019 83,533 87,527 88,396 90,615 91,363 93,648 W.7 Residential & Irrigation 4"166,795 176,881 187,625 198,352 209,682 219,707 221,889 227,459 229,336 235,073 W.8 Commercial, Turf & Multifamily 1,565,097 1,648,419 1,736,906 1,830,121 1,928,315 2,013,944 2,027,403 2,071,683 2,082,196 2,127,623 W.9 Construction 388,815 406,635 426,967 448,316 470,731 489,936 491,511 500,522 501,341 510,533 W.10 Reclaimed Water FY22 Budget 1,411,773 1,411,773 1,411,773 1,411,773 1,411,773 1,411,773 1,411,773 1,411,773 1,411,773 1,411,773 13,974,000$ 14,733,270 15,521,789 16,362,860 17,208,491 18,101,308 18,889,369 19,053,093 19,486,015 19,625,273 20,070,875 Ground Protection Fees 2,380,000$ 2,394,530 2,421,614 2,440,149 2,452,650 2,465,150 2,477,650 2,490,151 2,502,651 2,515,151 2,527,652 Non-Rate Revenues 975,000 975,000 975,000 975,000 975,000 975,000 975,000 975,000 975,000 975,000 Total Non-Rate Revenues 3,369,530 3,396,614 3,415,149 3,427,650 3,440,150 3,452,650 3,465,151 3,477,651 3,490,151 3,502,652 Total Revenues 18,102,800 18,918,403 19,778,009 20,636,141 21,541,457 22,342,019 22,518,244 22,963,666 23,115,425 23,573,527 16 Date: 2/18/2022 2022 02 18 Oro Valley AZ Rate Model Presentation Version Water Summary Current 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 Water Summary Scen:2022 02 18 -- Equal Percent Adjustments TOWN OF ORO VALLEY AZ WATER COST OF SERVICE MODEL Water Cost of Service Budget Code P Personnel 3,662,217$ 3,726,253$ 3,791,571$ 3,858,194$ 3,926,150$ 3,995,464$ 4,066,166$ 4,138,281$ 4,211,838$ 4,286,867$ CAP Central Arizona Project 4,062,888 4,354,865 4,619,187 4,097,405 4,193,347 4,317,860 4,501,943 4,693,510 4,892,653 5,104,623 O&M Operations & Maintenance 2,580,788 2,641,478 2,703,964 2,768,320 2,834,625 2,902,961 2,973,414 3,046,077 3,121,045 3,198,423 A Administrative Expense 205,116 209,218 213,403 217,671 222,024 226,465 230,994 235,614 240,326 245,133 U Utilities 850,000 892,500 937,125 983,981 1,033,180 1,084,839 1,139,081 1,196,035 1,255,837 1,318,629 REC Reclaimed Water 949,070 971,870 995,360 1,019,568 1,044,524 1,070,261 1,096,811 1,124,210 1,152,494 1,181,703 NWWRRDSNorthwest Recharge, Recovery & Delivery System 0 0 160,000 320,000 480,000 499,200 519,168 539,935 561,532 583,994 Total 12,310,079 12,796,184 13,420,608 13,265,139 13,733,851 14,097,050 14,527,577 14,973,661 15,435,727 15,919,371 Department Code W Water Department 7,298,121$ 7,469,450$ 7,646,062$ 7,828,166$ 8,015,979$ 8,209,729$ 8,409,655$ 8,616,006$ 8,829,047$ 9,049,052$ REC Reclaimed Water 949,070 971,870 995,360 1,019,568 1,044,524 1,070,261 1,096,811 1,124,210 1,152,494 1,181,703 CAP Central Arizona Project 4,062,888 4,354,865 4,619,187 4,097,405 4,193,347 4,317,860 4,501,943 4,693,510 4,892,653 5,104,623 NWWRRDSNorthwest Recharge, Recovery & Delivery System 0 0 160,000 320,000 480,000 499,200 519,168 539,935 561,532 583,994 Total 12,310,079 12,796,184 13,420,608 13,265,139 13,733,851 14,097,050 14,527,577 14,973,661 15,435,727 15,919,371 Total Operating Expenses 12,310,079 12,796,184 13,420,608 13,265,139 13,733,851 14,097,050 14,527,577 14,973,661 15,435,727 15,919,371 Net Revenues for Transfers,Capital Outlays and Debt Service 5,792,721 6,122,219 6,357,401 7,371,002 7,807,606 8,244,969 7,990,667 7,990,005 7,679,698 7,654,155 Capital Outlays 3,511,650 1,670,650 3,250,650 3,250,650 3,250,650 3,250,650 3,250,650 3,250,650 3,250,650 3,250,650 Debt Service Debt Service -- Current 4,935,311 4,780,241 3,678,607 3,426,083 3,427,277 3,278,441 1,634,346 1,351,161 624,129 513,438 Debt Service -- Future - 600,427 600,427 600,427 600,427 600,427 600,427 600,427 600,427 600,427 Total Debt Service 4,935,311 5,380,668 4,279,034 4,026,510 4,027,705 3,878,868 2,234,774 1,951,588 1,224,556 1,113,865 Net Revenues for Contingencies & Transfers (2,654,240) (929,099) (1,172,283) 93,841 529,252 1,115,451 2,505,243 2,787,766 3,204,492 3,289,640 Contingencies & Transfers Total Contingencies & Transfers - - - - - - - - - - Total Cost of Service 20,757,039 19,847,502 20,950,293 20,542,299 21,012,205 21,226,568 20,013,001 20,175,900 19,910,933 20,283,887 Net Revenues (2,654,240) (929,099) (1,172,283) 93,841 529,252 1,115,451 2,505,243 2,787,766 3,204,492 3,289,640 Percent of COS -14.7%-4.9%-5.9%0.5%2.5%5.0%11.1%12.1%13.9%14.0% All In Debt Coverage (include Excise Tax Debt)1.17 1.14 1.49 1.83 1.94 2.13 3.58 4.09 6.27 6.87 Goal is 1.30 (excludes Capital Outlays and Transfers) Debt Coverage Less Excise Tax Debt (Excise Tax debt = 1.0x Coverage)1.27 1.21 1.84 2.50 2.69 2.95 3.58 4.09 6.27 6.87 17 Date: 2/18/2022 2022 02 18 Oro Valley AZ Rate Model Presentation Version Test Year W1 Test Year 2022 Net Supply/Customer Reclaimed Budget Treatment Distribution Admin Billing Water Test Year W 1.0 -- WATER Service Cost Functionalization Scenario:2022 02 18 -- Equal Percent Adjustments NON-RATE REVENUES 0 0 0 6000000 WTR-CHARGES FOR SERVICES -$ na na na na na NR 0 CS 3057 ENGINEER PLAN REV 5,000 na na na na na NR 0 CS 3058 CONSTRUCT INSPECT 20,000 na na na na na NR 0 CS 3070 MISC SERVICE REVE 25,000 na na na na na NR 0 CS 3071 BACKFLOW-INSTALL 4,000 na na na na na NR 0 MII 3074 SEWER FEES 380,000 na na na na na NR 0 PI 3075 LATE FEES 90,000 na na na na na NR 0 PI 3076 NSF FEES 2,000 na na na na na NR 0 CS 3086 METER INCOME 99,000 na na na na na NR 0 CS 3087 NEW SERV ESTABLIS 100,000 na na na na na NR 0 PI 3088 RECONNECT FEES 32,000 na na na na na NR 0 MII 3089 RECHARGE-KAI FARM 48,000 na na na na na NR 0 MII 3094 GROUNDWATER PRESE 2,394,530 na na na na na NR 0 MII 3098 STORMWATER FEES 70,000 na na na na na NR 0 II 3099 INTEREST-INVESTME 100,000 na na na na na 0 0 0 3063 RESIDENTIAL WATER - na na na na na 0 0 0 3064 COMMERICAL WATER - na na na na na 0 0 0 3065 IRRIGATION WATER - na na na na na 0 0 0 3066 IRRIGATION-RECLAI - na na na na na 0 0 0 3067 TURF RELATED WATE - na na na na na 0 0 0 3068 TURF-RECLAIMED - na na na na na 0 0 0 3069 CONSTRUCTION WATE - na na na na na 0 0 0 3079 RECLAIMED CONSTRU - na na na na na 0 0 0 0 0 - na na na na na 0 0 0 0 0 - na na na na na 0 0 0 0 0 - na na na na na 0 0 0 0 0 - na na na na na 0 0 0 0 Last - na na na na na Total Non-Rate Revenues 3,369,530$ TOWN OF ORO VALLEY AZ WATER COST OF SERVICE MODEL Intellectual Property of Economists.com, LLC / Willdan Group Inc. - Not to be used without express written permission 18 Date: 2/18/2022 2022 02 18 Oro Valley AZ Rate Model Presentation Version Test Year W1 Test Year 2022 Net Supply/Customer Reclaimed Budget Treatment Distribution Admin Billing Water Test Year W 1.0 -- WATER Service Cost Functionalization Scenario:2022 02 18 -- Equal Percent Adjustments TOWN OF ORO VALLEY AZ WATER COST OF SERVICE MODEL OPERATING EXPENSES Department Code1 Budget Code 2 Expense Net Budget 3 Supply/Treatment Distribution Admin Customer Billing Irrigation 4 0 0 0 6088000 WTR-ADMIN-PERSONNEL - - - - - - W 0 P 5001 REGULAR EMPLOYEES 305,501 - - 280,198 - 25,303 W 0 P 5006 GROUP INSURANCE 36,139 - - 33,146 - 2,993 W 0 P 5007 SOCIAL SECURITY/M 22,883 - - 20,988 - 1,895 W 0 P 5009 ASRS CONTRIBUTION 37,913 - - 34,773 - 3,140 W 0 P 5011 WORKERS' COMPENSA 588 - - 539 - 49 W 0 P 5012 OTHER EMPLOYEE BE 1,454 - - 1,334 - 120 0 0 0 0 0 - - - - - - 0 0 0 6088010 WTR-ADMIN-O&M - - - - - - W 0 O&M 6005 OUTSIDE PROFESSIO 94,839 - - 94,839 - - W 0 O&M 6014 WATER & SEWAGE 436 - - 436 - - W 0 O&M 6018 VEHICLE REPAIR &36,688 - - 36,688 - - W 0 O&M 6019 EQUIPMENT REPAIR 5,279 - - 5,279 - - W 0 O&M 6026 INSURANCE 80,222 - - 80,222 - - W 0 O&M 6031 PRINTING & BINDING 500 - - 500 - - W 0 O&M 6034 TRAVEL & TRAINING 4,500 - - 4,500 - - W 0 O&M 6035 MEMBERSHIPS & SUB 10,950 - - 10,950 - - W 0 O&M 6037 OFFICE SUPPLIES 13,700 - - 13,700 - - W 0 O&M 6038 NATURAL GAS & ELE 6,512 - - 6,512 - - W 0 O&M 6039 GASOLINE 68,790 - - 68,790 - - W 0 O&M 6046 DEPRECIATION - - - - - - W 0 O&M 6047 OFFICE LEASE 60,168 - - 60,168 - - W 0 O&M 6048 AMORTIZATION - - - - - - W 0 O&M 6051 REGULATORY EXPENS 11,575 - - 11,575 - - W 0 O&M 6054 WATER UTILITY COM 1,240 - - 1,240 - - W 0 O&M 6094 ADMIN & FINANCIAL 995,267 - - 995,267 - - W 0 0 0 0 - - - - - - 0 0 0 6088020 WTR-ADMIN-CAPITAL - - - - - - W 0 CO 9024 EQUIPMENT - - - - - - 0 0 0 0 0 - - - - - - 0 0 0 6088025 WTR-ADMIN-DEBT SERVICE - - - - - - T 0 T 9051 PRINCIPAL PAYMENT - - - - - - T 0 T 9052 INTEREST PAYMENTS - - - - - - 0 0 0 0 0 - - - - - - 0 0 0 6088026 WTR-ADMIN-OTHER FIN USES - - - - - - T 0 T 9078 TRANSFER TO DEBT - - - - - - T 0 T 9079 TRANSFER TO CAPIT - - - - - - 0 0 0 0 0 - - - - - - 0 0 0 6088027 WTR-ADMIN-CONTINGENCY - - - - - - T 0 T 9090 CONTINGENCY/RESER - - - - - - 0 0 0 0 0 - - - - - - 0 0 0 6088030 WTR-CUSTOMER SVC-PERSONNEL - - - - - - W 0 P 5001 REGULAR EMPLOYEES 254,662 - - - 254,662 - W 0 P 5002 OVERTIME PAY 100 - - - 100 - W 0 P 5006 GROUP INSURANCE 58,364 - - - 58,364 - W 0 P 5007 SOCIAL SECURITY/M 18,248 - - - 18,248 - W 0 P 5009 ASRS CONTRIBUTION 29,488 - - - 29,488 - W 0 P 5011 WORKERS' COMPENSA 493 - - - 493 - 0 0 0 0 0 - - - - - - 0 0 0 6088040 WTR-CUST SERVICE-O&M - - - - - - W 0 O&M 6005 OUTSIDE PROFESSIO 154,100 - - - 154,100 - W 0 O&M 6029 POSTAGE 112,500 - - - 112,500 - W 0 O&M 6031 PRINTING & BINDIN 9,000 - - - 9,000 - W 0 O&M 6034 TRAVEL & TRAINING 2,500 - - - 2,500 - W 0 O&M 6040 NON-CAPITALIZED E 3,000 - - - 3,000 - W 0 O&M 6043 BAD DEBT EXPENSE 13,000 - - - 13,000 - Intellectual Property of Economists.com, LLC / Willdan Group Inc. - Not to be used without express written permission 19 Date: 2/18/2022 2022 02 18 Oro Valley AZ Rate Model Presentation Version Test Year W1 Test Year 2022 Net Supply/Customer Reclaimed Budget Treatment Distribution Admin Billing Water Test Year W 1.0 -- WATER Service Cost Functionalization Scenario:2022 02 18 -- Equal Percent Adjustments TOWN OF ORO VALLEY AZ WATER COST OF SERVICE MODEL 0 0 0 0 0 - - - - - - 0 0 0 6088060 WTR-CONSERV-PERSONNEL - - - - - - W 0 P 5001 REGULAR EMPLOYEES 72,535 36,268 36,268 - - - W 0 P 5006 GROUP INSURANCE 11,677 5,839 5,839 - - - W 0 P 5007 SOCIAL SECURITY/M 5,305 2,653 2,653 - - - W 0 P 5009 ASRS CONTRIBUTION 9,002 4,501 4,501 - - - W 0 P 5011 WORKERS' COMPENSA 2,017 1,009 1,009 - - - 0 0 0 0 0 - - - - - - 0 0 0 6088070 WTR-CONSERV-O&M - - - - - - Intellectual Property of Economists.com, LLC / Willdan Group Inc. - Not to be used without express written permission 20 Date: 2/18/2022 2022 02 18 Oro Valley AZ Rate Model Presentation Version Test Year W1 Test Year 2022 Net Supply/Customer Reclaimed Budget Treatment Distribution Admin Billing Water Test Year W 1.0 -- WATER Service Cost Functionalization Scenario:2022 02 18 -- Equal Percent Adjustments TOWN OF ORO VALLEY AZ WATER COST OF SERVICE MODEL W 0 O&M 6005 OUTSIDE PROFESSIO 45,900 22,950 22,950 - - - W 0 O&M 6031 PRINTING & BINDIN 11,200 5,600 5,600 - - - W 0 O&M 6034 TRAVEL & TRAINING 600 300 300 - - - W 0 O&M 6035 MEMBERSHIPS & SUB 3,045 1,523 1,523 - - - W 0 O&M 6040 NON-CAPITALIZED E 300 150 150 - - - W 0 O&M 6041 UNIFORMS 500 250 250 - - - W 0 O&M 6044 FIELD SUPPLIES 300 150 150 - - - W 0 O&M 6084 CONSERVATION 500 250 250 - - - 0 0 0 0 0 - - - - - - 0 0 0 6088090 WTR-WTR RES-O&M - - - - - - W 0 O&M 6005 OUTSIDE PROFESSIO 125,000 125,000 - - - - CAP 0 CAP 6010 CAP WATER CAPITAL 376,208 376,208 - - - - CAP 0 CAP 6011 CAP WATER DELIVER 1,813,680 1,813,680 - - - - W 0 O&M 6051 81301 REGULATORY E 50,000 50,000 - - - - CAP 0 CAP 6082 CAP WATER WHEELIN 1,873,000 1,873,000 - - - - 0 0 0 0 0 - - - - - - 0 0 0 6088100 WTR-ENG ADMIN-PERSONNEL - - - - - - W 0 P 5001 REGULAR EMPLOYEES 325,934 - - 298,939 - 26,995 W 0 P 5006 GROUP INSURANCE 40,268 - - 36,933 - 3,335 W 0 P 5007 SOCIAL SECURITY/M 24,263 - - 22,253 - 2,010 W 0 P 5009 ASRS CONTRIBUTION 40,448 - - 37,098 - 3,350 W 0 P 5011 WORKERS' COMPENSA 4,476 - - 4,105 - 371 0 0 0 0 0 - - - - - - 0 0 0 6088110 WTR-ENG ADMIN-O&M - - - - - - W 0 A 6005 OUTSIDE PROFESSIO 102,000 - - 93,552 - 8,448 W 0 A 6031 PRINTING & BINDIN 2,000 - - 1,834 - 166 W 0 A 6034 TRAVEL & TRAINING 4,700 - - 4,311 - 389 W 0 A 6035 MEMBERSHIPS & SUB 717 - - 658 - 59 W 0 A 6051 REGULATORY EXPENS 100 - - 92 - 8 W 0 A 6064 SAFETY COMPLIANCE 300 - - 275 - 25 W 0 A 6094 ADMINISTRATIVE SE 95,299 - - 87,406 - 7,893 0 0 0 0 0 - - - - - - 0 0 0 6088150 WTR-CAPITAL IMPROV-CAPITAL - - - - - - W 0 CO 9007 82153 WELLS - - - - - - W 0 CO 9007 82191 WELLS - - - - - - W 0 CO 9008 82171 BOOSTER STAT - - - - - - W 0 CO 9008 WT011 BOOSTER STAT - - - - - - W 0 CO 9008 WT012 BOOSTER STAT - - - - - - W 0 CO 9009 TRANSMISSION/DIST - - - - - - W 0 CO 9009 WT003 TRANSMISSION - - - - - - W 0 CO 9009 WT010 TRANSMISSION - - - - - - W 0 CO 9010 WT007 RESERVOIRS - - - - - - W 0 CO 9012 82185 STRUCTURES - - - - - - 0 0 0 0 0 - - - - - - 0 0 0 6088160 WTR-CONST INSP-PERSONNEL - - - - - - W 0 P 5001 REGULAR EMPLOYEES 129,349 - - 118,636 - 10,713 W 0 P 5002 OVERTIME PAY 500 - - 459 - 41 W 0 P 5006 GROUP INSURANCE 20,788 - - 19,066 - 1,722 W 0 P 5007 SOCIAL SECURITY/M 9,536 - - 8,746 - 790 W 0 P 5009 ASRS CONTRIBUTION 16,114 - - 14,779 - 1,335 W 0 P 5011 WORKERS' COMPENSA 3,610 - - 3,311 - 299 0 0 0 0 0 - - - - - - 0 0 0 6088170 WTR-CONST INSP-O&M - - - - - - W 0 O&M 6034 TRAVEL & TRAINING 250 125 125 - - - W 0 O&M 6036 TESTING 1,000 500 500 - - - W 0 O&M 6040 NON-CAPITALIZED E 775 388 388 - - - W 0 O&M 6041 UNIFORMS 1,100 550 550 - - - W 0 O&M 6044 FIELD SUPPLIES 600 300 300 - - - W 0 O&M 6051 REGULATORY EXPENS 150 75 75 - - - Intellectual Property of Economists.com, LLC / Willdan Group Inc. - Not to be used without express written permission 21 Date: 2/18/2022 2022 02 18 Oro Valley AZ Rate Model Presentation Version Test Year W1 Test Year 2022 Net Supply/Customer Reclaimed Budget Treatment Distribution Admin Billing Water Test Year W 1.0 -- WATER Service Cost Functionalization Scenario:2022 02 18 -- Equal Percent Adjustments TOWN OF ORO VALLEY AZ WATER COST OF SERVICE MODEL W 0 O&M 6064 SAFETY COMPLIANCE 460 230 230 - - - 0 0 0 0 0 - - - - - - 0 0 0 6088220 WTR-OPS PRODUCTION-PERSONNEL - - - - - - W 0 P 5001 REGULAR EMPLOYEES 369,211 338,632 - - - 30,579 W 0 P 5002 OVERTIME PAY 18,000 16,509 - - - 1,491 W 0 P 5006 GROUP INSURANCE 75,688 69,419 - - - 6,269 W 0 P 5007 SOCIAL SECURITY/M 28,725 26,346 - - - 2,379 W 0 P 5009 ASRS CONTRIBUTION 49,046 44,984 - - - 4,062 W 0 P 5011 WORKERS' COMPENSA 10,988 10,078 - - - 910 W 0 P 5018 SPECIAL PAY NON P 8,000 7,337 - - - 663 0 0 0 0 0 - - - - - - 0 0 0 6088230 WTR-OPS PRODUCTION-O&M - - - - - - W 0 O&M 6005 OUTSIDE PROFESSIO 496 496 - - - - W 0 U 6012 POWER PURCHASED F 850,000 850,000 - - - - W 0 O&M 6015 WASTE DISPOSAL FE 1,082 1,082 - - - - W 0 O&M 6019 EQUIPMENT REPAIR 8,048 8,048 - - - - W 0 O&M 6020 BUILDING REPAIR &2,596 2,596 - - - - Intellectual Property of Economists.com, LLC / Willdan Group Inc. - Not to be used without express written permission 22 Date: 2/18/2022 2022 02 18 Oro Valley AZ Rate Model Presentation Version Test Year W1 Test Year 2022 Net Supply/Customer Reclaimed Budget Treatment Distribution Admin Billing Water Test Year W 1.0 -- WATER Service Cost Functionalization Scenario:2022 02 18 -- Equal Percent Adjustments TOWN OF ORO VALLEY AZ WATER COST OF SERVICE MODEL W 0 O&M 6021 GROUNDS REPAIR &6,317 6,317 - - - - W 0 O&M 6024 CHEMICALS 60,000 60,000 - - - - W 0 O&M 6025 RENTALS 500 500 - - - - W 0 O&M 6034 TRAVEL & TRAINING 3,118 3,118 - - - - W 0 O&M 6036 TESTING 2,077 2,077 - - - - W 0 O&M 6040 NON-CAPITALIZED E 2,752 2,752 - - - - W 0 O&M 6041 UNIFORMS 8,568 8,568 - - - - W 0 O&M 6044 FIELD SUPPLIES 4,403 4,403 - - - - W 0 O&M 6051 REGULATORY EXPENS 3,613 3,613 - - - - W 0 O&M 6055 EQUIP. R&M-WELLS 21,000 21,000 - - - - W 0 O&M 6056 EQUIP. R&M-BOOSTE 18,500 18,500 - - - - W 0 O&M 6058 EQUIP. R&M-RESERV 23,000 23,000 - - - - W 0 O&M 6061 EQUIPMENT R&M - M 2,000 2,000 - - - - W 0 O&M 6064 SAFETY COMPLIANCE 2,110 2,110 - - - - W 0 O&M 6085 EQUIP. R&M-DISINF 14,000 14,000 - - - - NWWRRDS 0 NWWRRDS 0 Nortwest Recharge, Recovery & Delivery System (NWRRDS)0 0 - - - - 0 0 0 6088260 WTR-OPS PROD-RECLAIM-O&M - - - - - - REC 0 REC 6004 EFFLUENT SHORTAGE 30,000 - - - - 30,000 REC 0 REC 6005 OUTSIDE PROFESSIO 7,197 - - - - 7,197 REC 0 REC 6012 POWER PURCHASED F 55,000 - - - - 55,000 REC 0 REC 6014 WATER & SEWAGE 39 - - - - 39 REC 0 REC 6015 WASTE DISPOSAL FE 168 - - - - 168 REC 0 REC 6018 VEHICLE REPAIR &3,312 - - - - 3,312 REC 0 REC 6019 EQUIPMENT REPAIR 2,073 - - - - 2,073 REC 0 REC 6020 BUILDING REPAIR &404 - - - - 404 REC 0 REC 6021 GROUNDS REPAIR &982 - - - - 982 REC 0 REC 6024 CHEMICALS 20,000 - - - - 20,000 REC 0 REC 6026 INSURANCE 16,805 - - - - 16,805 REC 0 REC 6034 TRAVEL & TRAINING 713 - - - - 713 REC 0 REC 6036 TESTING 323 - - - - 323 REC 0 REC 6038 NATURAL GAS & ELE 588 - - - - 588 REC 0 REC 6039 GASOLINE 6,210 - - - - 6,210 REC 0 REC 6040 NON-CAPITALIZED E 414 - - - - 414 REC 0 REC 6041 UNIFORMS 960 - - - - 960 REC 0 REC 6044 FIELD SUPPLIES 496 - - - - 496 REC 0 REC 6046 DEPRECIATION - - - - - - REC 0 REC 6047 OFFICE LEASE 5,432 - - - - 5,432 REC 0 REC 6051 REGULATORY EXPENS 3,182 - - - - 3,182 REC 0 REC 6054 WATER UTILITY COM 260 - - - - 260 REC 0 REC 6056 EQUIP. R&M-BOOSTE 3,460 - - - - 3,460 REC 0 REC 6057 EQUIP. R&M-MAINS 5,000 - - - - 5,000 REC 0 REC 6058 EQUIP. R&M-RESERV 250 - - - - 250 REC 0 REC 6059 EQUIP. R&M-SERVIC 500 - - - - 500 REC 0 REC 6060 EQUIP. R&M-HYDRAN 500 - - - - 500 REC 0 REC 6061 EQUIPMENT R&M - M 4,000 - - - - 4,000 REC 0 REC 6062 BLUESTAKE 1,153 - - - - 1,153 REC 0 REC 6064 SAFETY COMPLIANCE 314 - - - - 314 REC 0 REC 6085 EQUIP. R&M-DISINF 2,024 - - - - 2,024 REC 0 REC 6094 ADMIN & FINANCIAL 98,451 - - - - 98,451 REC 0 REC 6099 RECLAIMED WATER F 678,860 - - - - 678,860 0 0 0 0 0 - - - - - - 0 0 0 6088280 WTR-OPS DISTRIBUTION-PERSONNEL - - - - - - W 0 P 5001 REGULAR EMPLOYEES 334,670 - 306,952 - - 27,718 W 0 P 5002 OVERTIME PAY 20,000 - 18,344 - - 1,656 W 0 P 5006 GROUP INSURANCE 78,748 - 72,226 - - 6,522 W 0 P 5007 SOCIAL SECURITY/M 25,933 - 23,785 - - 2,148 W 0 P 5009 ASRS CONTRIBUTION 44,573 - 40,881 - - 3,692 W 0 P 5011 WORKERS' COMPENSA 9,986 - 9,159 - - 827 W 0 P 5018 SPECIAL PAY NON P 4,500 - 4,127 - - 373 Intellectual Property of Economists.com, LLC / Willdan Group Inc. - Not to be used without express written permission 23 Date: 2/18/2022 2022 02 18 Oro Valley AZ Rate Model Presentation Version Test Year W1 Test Year 2022 Net Supply/Customer Reclaimed Budget Treatment Distribution Admin Billing Water Test Year W 1.0 -- WATER Service Cost Functionalization Scenario:2022 02 18 -- Equal Percent Adjustments TOWN OF ORO VALLEY AZ WATER COST OF SERVICE MODEL 0 0 0 0 0 - - - - - - 0 0 0 6088290 WTR-OPS DISTRIBUTION-O&M - - - - - - W 0 O&M 6005 OUTSIDE PROFESSIO 750 - 750 - - - W 0 O&M 6015 WASTE DISPOSAL FE 709 - 709 - - - W 0 O&M 6019 EQUIPMENT REPAIR 5,360 - 5,360 - - - W 0 O&M 6034 TRAVEL & TRAINING 5,505 - 5,505 - - - W 0 O&M 6040 NON-CAPITALIZED E 5,000 - 5,000 - - - W 0 O&M 6041 UNIFORMS 4,200 - 4,200 - - - W 0 O&M 6044 FIELD SUPPLIES 4,500 - 4,500 - - - W 0 O&M 6051 REGULATORY EXPENS 350 - 350 - - - W 0 O&M 6057 EQUIP. R&M-MAINS 98,000 - 98,000 - - - W 0 O&M 6059 EQUIP. R&M-SERVIC 10,000 - 10,000 - - - W 0 O&M 6060 EQUIP. R&M-HYDRAN 30,500 - 30,500 - - - W 0 O&M 6062 BLUESTAKE 6,091 - 6,091 - - - W 0 O&M 6064 SAFETY COMPLIANCE 5,850 - 5,850 - - - 0 0 0 0 0 - - - - - - 0 0 0 6088300 WTR-OPS DISTRIBUTION-CAPITAL - - - - - - W 0 CO 9020 VEHICLES - - - - - - 0 0 0 0 0 - - - - - - 0 0 0 6088310 WTR-OPS WATER QUALITY-PERS - - - - - - W 0 P 5001 REGULAR EMPLOYEES 172,091 - - 157,838 - 14,253 W 0 P 5002 OVERTIME PAY 300 - - 275 - 25 W 0 P 5006 GROUP INSURANCE 43,771 - - 40,146 - 3,625 W 0 P 5007 SOCIAL SECURITY/M 12,269 - - 11,253 - 1,016 Intellectual Property of Economists.com, LLC / Willdan Group Inc. - Not to be used without express written permission 24 Date: 2/18/2022 2022 02 18 Oro Valley AZ Rate Model Presentation Version Test Year W1 Test Year 2022 Net Supply/Customer Reclaimed Budget Treatment Distribution Admin Billing Water Test Year W 1.0 -- WATER Service Cost Functionalization Scenario:2022 02 18 -- Equal Percent Adjustments TOWN OF ORO VALLEY AZ WATER COST OF SERVICE MODEL W 0 P 5009 ASRS CONTRIBUTION 21,394 - - 19,622 - 1,772 W 0 P 5011 WORKERS' COMPENSA 4,793 - - 4,396 - 397 0 0 0 0 0 - - - - - - 0 0 0 6088320 WTR-OPS WATER QUALITY-O&M - - - - - - W 0 O&M 6005 OUTSIDE PROFESSIO 1,250 625 625 - - - W 0 O&M 6029 POSTAGE 3,800 1,900 1,900 - - - W 0 O&M 6031 PRINTING & BINDIN 3,150 1,575 1,575 - - - W 0 O&M 6034 TRAVEL & TRAINING 2,445 1,223 1,223 - - - W 0 O&M 6035 MEMBERSHIPS & SUB 310 155 155 - - - W 0 O&M 6036 TESTING 120,000 60,000 60,000 - - - W 0 O&M 6040 NON-CAPITALIZED E 1,800 900 900 - - - W 0 O&M 6041 UNIFORMS 2,100 1,050 1,050 - - - W 0 O&M 6044 FIELD SUPPLIES 5,000 2,500 2,500 - - - W 0 O&M 6051 REGULATORY EXPENS 1,300 650 650 - - - W 0 O&M 6064 SAFETY COMPLIANCE 400 200 200 - - - W 0 O&M 6088 EQUIP. R&M-BACKFL 12,500 6,250 6,250 - - - 0 0 0 0 0 - - - - - - 0 0 0 6088330 WTR-OPS WATER QUALITY-CAPITAL - - - - - - W 0 CO 9002 MINOR ASSETS - - - - - - 0 0 0 0 0 - - - - - - 0 0 0 6088340 WTR-OPS ADMIN-PERSONNEL - - - - - - W 0 P 5001 REGULAR EMPLOYEES 277,007 - - 254,064 - 22,943 W 0 P 5006 GROUP INSURANCE 25,850 - - 23,709 - 2,141 W 0 P 5007 SOCIAL SECURITY/M 20,722 - - 19,006 - 1,716 W 0 P 5009 ASRS CONTRIBUTION 34,377 - - 31,530 - 2,847 W 0 P 5011 WORKERS' COMPENSA 7,702 - - 7,064 - 638 0 0 0 0 0 - - - - - - 0 0 0 6088350 WTR-OPS ADMIN-O&M - - - - - - W 0 O&M 6034 TRAVEL & TRAINING 2,790 - - 2,790 - - W 0 O&M 6035 MEMBERSHIPS & SUB 1,914 - - 1,914 - - W 0 O&M 6037 OFFICE SUPPLIES 8,138 - - 8,138 - - W 0 O&M 6040 NON-CAPITALIZED E 1,000 - - 1,000 - - W 0 O&M 6041 UNIFORMS 2,100 - - 2,100 - - W 0 O&M 6051 REGULATORY EXPENS 600 - - 600 - - W 0 O&M 6064 SAFETY COMPLIANCE 400 - - 400 - - 0 0 0 0 0 - - - - - - 0 0 0 6088370 WTR-OPS METERS-PERSONNEL - - - - - - W 0 P 5001 REGULAR EMPLOYEES 192,612 - - - 192,612 - W 0 P 5002 OVERTIME PAY 5,000 - - - 5,000 - W 0 P 5006 GROUP INSURANCE 49,791 - - - 49,791 - W 0 P 5007 SOCIAL SECURITY/M 14,316 - - - 14,316 - W 0 P 5009 ASRS CONTRIBUTION 24,921 - - - 24,921 - W 0 P 5011 WORKERS' COMPENSA 5,583 - - - 5,583 - W 0 P 5018 SPECIAL PAY NON P 3,200 - - - 3,200 - 0 0 0 0 0 - - - - - - 0 0 0 6088380 WTR-OPS METERS-O&M - - - - - - W 0 O&M 6019 EQUIPMENT REPAIR 1,200 - - - 1,200 - W 0 O&M 6021 GROUNDS REPAIR &1,650 - - - 1,650 - W 0 O&M 6034 TRAVEL & TRAINING 2,445 - - - 2,445 - W 0 O&M 6040 NON-CAPITALIZED E 750 - - - 750 - W 0 O&M 6041 UNIFORMS 3,500 - - - 3,500 - W 0 O&M 6044 FIELD SUPPLIES 2,000 - - - 2,000 - W 0 O&M 6051 REGULATORY EXPENS 1,000 - - - 1,000 - W 0 O&M 6059 EQUIP. R&M-SERVIC 2,500 - - - 2,500 - Intellectual Property of Economists.com, LLC / Willdan Group Inc. - Not to be used without express written permission 25 Date: 2/18/2022 2022 02 18 Oro Valley AZ Rate Model Presentation Version Test Year W1 Test Year 2022 Net Supply/Customer Reclaimed Budget Treatment Distribution Admin Billing Water Test Year W 1.0 -- WATER Service Cost Functionalization Scenario:2022 02 18 -- Equal Percent Adjustments TOWN OF ORO VALLEY AZ WATER COST OF SERVICE MODEL W 0 O&M 6061 EQUIPMENT R&M - M 4,000 - - - 4,000 - W 0 O&M 6064 SAFETY COMPLIANCE 450 - - - 450 - 0 0 0 0 0 - - - - - - 0 0 0 6088390 WTR-OPS METERS-CAPITAL - - - - - - W 0 CO 9006 METERS - - - - - - 0 0 0 0 0 - - - - - - 0 0 0 60583310 WATER CONTROL SYSTMS PERSONNEL- - - - - - W 0 P 5001 REGULAR EMPLOYEES 135,533 - - 124,308 - 11,225 W 0 P 5006 GROUP INSURANCE 20,714 - - 18,998 - 1,716 W 0 P 5007 SOCIAL SECURITY/M 9,960 - - 9,135 - 825 W 0 P 5009 ASRS CONTRIBUTION 16,820 - - 15,427 - 1,393 W 0 P 5011 WORKERS' COMPENSA 3,768 - - 3,456 - 312 0 0 0 0 0 - - - - - - 0 0 0 60583320 WATER CONTROL SYSTMS O&M - - - - - - W 0 O&M 6005 OUTSIDE PROFESSIO 4,134 2,067 2,067 - - - W 0 O&M 6034 TRAVEL & TRAINING 4,769 2,385 2,385 - - - W 0 O&M 6040 NON-CAPITALIZED E 1,834 917 917 - - - W 0 O&M 6041 UNIFORMS 2,064 1,032 1,032 - - - W 0 O&M 6044 FIELD SUPPLIES 1,101 551 551 - - - W 0 O&M 6055 EQUIP. R&M-WELLS 35,000 17,500 17,500 - - - W 0 O&M 6056 EQUIP. R&M-BOOSTE 38,000 19,000 19,000 - - - W 0 O&M 6058 EQUIP. R&M-RESERV 5,500 2,750 2,750 - - - W 0 O&M 6064 SAFETY COMPLIANCE 1,376 688 688 - - - W 0 O&M 6074 EQUIP. R&M-TELEME 9,077 4,539 4,539 - - - 0 0 0 0 0 - - - - - - 0 0 0 60583330 WATER CONTROL SYSTMS CAPITAL - - - - - - W 0 CO 9024 WT008 EQUIPMENT - - - - - - 0 0 0 0 0 - - - - - - 0 0 0 0 0 - - - - - - Intellectual Property of Economists.com, LLC / Willdan Group Inc. - Not to be used without express written permission 26 Date: 2/18/2022 2022 02 18 Oro Valley AZ Rate Model Presentation Version Test Year W1 Test Year 2022 Net Supply/Customer Reclaimed Budget Treatment Distribution Admin Billing Water Test Year W 1.0 -- WATER Service Cost Functionalization Scenario:2022 02 18 -- Equal Percent Adjustments TOWN OF ORO VALLEY AZ WATER COST OF SERVICE MODEL P Personnel 3,662,217$ 563,573$ 525,742$ 1,675,531$ 656,778$ 240,593$ CAP Central Arizona Project 4,062,888 4,062,888 - - - - O&M Operations & Maintenance 2,580,788 520,975 338,610 1,407,608 313,595 - A Administrative Expense 205,116 - - 188,128 - 16,988 U Utilities 850,000 850,000 - - - - REC Reclaimed Water 949,070 - - - - 949,070 NWWRRDS Northwest Recharge, Recovery & Delivery System 0 0 - - - - #N/A - - - - - - #N/A - - - - - - #N/A - - - - - - #N/A - - - - - - #N/A - - - - - - - - - - - - - - - - - - Total 12,310,079 5,997,436 864,352 3,271,266 970,373 1,206,652 TRUE TRUE FALSE TRUE TRUE TRUE W Water Department 7,298,121$ 1,934,548$ 864,352$ 3,271,266$ 970,373$ 257,582$ 26.5%11.8%44.8%13.3%3.5% REC Reclaimed Water 949,070$ -$ -$ -$ -$ 949,070$ 0.0%0.0%0.0%0.0%100.0% CAP Central Arizona Project 4,062,888$ 4,062,888$ -$ -$ -$ -$ 100.0%0.0%0.0%0.0%0.0% NWWRRDS Northwest Recharge, Recovery & Delivery System 0$ 0$ -$ -$ -$ -$ 100.0%0.0%0.0%0.0%0.0% #N/A -$ -$ -$ -$ -$ -$ 0.0%0.0%0.0%0.0%0.0% #N/A -$ -$ -$ -$ -$ -$ 0.0%0.0%0.0%0.0%0.0% #N/A -$ -$ -$ -$ -$ -$ 0.0%0.0%0.0%0.0%0.0% #N/A -$ -$ -$ -$ -$ -$ 0.0%0.0%0.0%0.0%0.0% #N/A -$ -$ -$ -$ -$ -$ 0.0%0.0%0.0%0.0%0.0% #N/A -$ -$ -$ -$ -$ -$ 0.0%0.0%0.0%0.0%0.0% Total Operating Expenses (No Personnel)8,647,862$ 5,433,863$ 338,610$ 1,595,736$ 313,595$ 966,058$ 100.0%62.8%3.9%18.5%3.6%11.2% Total Water Department 12,310,079$ 5,997,436$ 864,352$ 3,271,266$ 970,373$ 1,206,652$ 100.0%48.7%7.0%26.6%7.9%9.8% TOTAL WATER SYSTEM EXPENDITURES 12,310,079$ 5,997,436$ 864,352$ 3,271,266$ 970,373$ 1,206,652$ Percent 100.0%48.7%7.0%26.6%7.9%9.8% TRUE TRUE TRUE TRUE TRUE TRUE Budget Code Department Code Intellectual Property of Economists.com, LLC / Willdan Group Inc. - Not to be used without express written permission 28 Date: 2/18/2022 2022 02 18 Oro Valley AZ Rate Model Presentation Version Test Year W1 Test Year 2022 Net Supply/Customer Reclaimed Budget Treatment Distribution Admin Billing Water Test Year W 1.0 -- WATER Service Cost Functionalization Scenario:2022 02 18 -- Equal Percent Adjustments TOWN OF ORO VALLEY AZ WATER COST OF SERVICE MODEL CAPITAL OUTLAYS (Major) Total Capital Outlays 3,511,650$ 2,500$ 3,351,000$ 150,000$ 8,150$ -$ Percent 100.0%0.1%95.4%4.3%0.2%0.0% TOTAL OPERATING/CAPITAL OUTLAYS 15,821,729$ 5,999,936$ 4,215,352$ 3,421,266$ 978,523$ 1,206,652$ Percent 100.0%37.9%26.6%21.6%6.2%7.6% Contingencies & TRANSFERS T Contingencies & Transfers -$ -$ -$ -$ -$ -$ 0.0%0.0%0.0%0.0%0.0% CURRENT DEBT SERVICE Water Debt Service Principal & Interest 4,251,864$ na na na na na Other 683,447 na na na na na Reserve - na na na na na TOTAL CURRENT DEBT SERVICE -- WATER 4,935,311$ 2,230,122$ 2,705,189$ -$ -$ -$ 100.0%45.2%54.8%0.0%0.0%0.0% FUTURE DEBT SERVICE Water Debt Service Principal & Interest -$ -$ -$ -$ -$ -$ Other - - - - - - Reserve - - - - - - TOTAL FUTURE DEBT SERVICE -- WATER -$ -$ -$ -$ -$ -$ 0.0%0.0%0.0%0.0%0.0%0.0% TOTAL COST OF SERVICE TOTAL COST OF SERVICE 20,757,039$ 8,230,058$ 6,920,541$ 3,421,266$ 978,523$ 1,206,652$ 100.0%39.6%33.3%16.5%4.7%5.8% NON RATE REVENUES TOTAL NON-RATE REVENUES 3,369,530$ 1,336,001$ 1,123,425$ 555,381$ 158,846$ 195,878$ 100.0%39.6%33.3%16.5%4.7%5.8% TOTAL REVENUE REQUIREMENT TOTAL REVENUE REQUIREMENT 17,387,509$ 6,894,057$ 5,797,116$ 2,865,886$ 819,677$ 1,010,774$ 0.0%0.0%0.0%0.0%0.0%0.0% Intellectual Property of Economists.com, LLC / Willdan Group Inc. - Not to be used without express written permission 29 Date: 2/18/2022 2022 02 18 Oro Valley AZ Rate Model Presentation Version Test Year W2 Test Year 2022 Test Year Test Year Max Day Test Year Test Year Annual Daily Capacity Total Extra Water Wastewater Use Average Factor Capacity Capacity Bills Bills Test Year W 2.0 -- WATER Cost Allocations to Defined Customer Class Units Scenario:2022 02 18 -- Equal Percent Adjustments Customer Class Units -- Test Year Volume W1 Residential & Irrigation 5/8"1,444,476,233 3,957,469 130 5,126,296 1,168,827 218,657 - W2 Residential & Irrigation 3/4"188,922,762 517,597 131 677,963 160,366 21,252 - W3 Residential & Irrigation 1"152,687,088 418,321 138 575,342 157,021 7,157 - W4 Residential & Irrigation 1.5"38,938,765 106,682 168 179,342 72,661 646 - W5 Residential & Irrigation 2"93,165,025 255,247 159 405,633 150,386 890 - W6 Residential & Irrigation 3"16,881,063 46,249 194 89,527 43,277 24 - W7 Residential & Irrigation 4"50,041,170 137,099 162 222,380 85,281 61 - W8 Commercial, Turf & Multifamily 327,014,495 895,930 109 980,096 84,165 6,780 - W9 Construction 38,337,280 105,034 96 101,096 (3,938) 360 - Total Potable 2,350,463,880 6,439,627 8,357,674 1,918,047 255,828 W10 Reclaimed Water 593,856,096 1,627,003 177 2,880,427 1,253,424 144 - Total System 2,944,319,976 8,066,630 177 11,238,101 3,171,471 255,972 - Peaking Factor 1.39 Allocation Factors Base 100.00% Maximum Day 66.67%33.33% Customer Class Units -- Percent of Annual Volumes W1 Residential & Irrigation 5/8"61.45%60.94%85.42%0.00% W2 Residential & Irrigation 3/4"8.04%8.36%8.30%0.00% W3 Residential & Irrigation 1"6.50%8.19%2.80%0.00% W4 Residential & Irrigation 1.5"1.66%3.79%0.25%0.00% W5 Residential & Irrigation 2"3.96%7.84%0.35%0.00% W6 Residential & Irrigation 3"0.72%2.26%0.01%0.00% W7 Residential & Irrigation 4"2.13%4.45%0.02%0.00% W8 Commercial, Turf & Multifamily 13.91%4.39%2.65%0.00% W9 Construction 1.63%-0.21%0.14%0.00% Total Potable Sytem 100.00%100.00% W10 Reclaimed Water 0.06%0.00% Total System 100.00%0.00% SOURCE: Volume Input spreadsheet TOWN OF ORO VALLEY AZ WATER COST OF SERVICE MODEL 30 Date: 2/18/2022 2022 02 18 Oro Valley AZ Rate Model Presentation Version Test Year W3 Test Year 2022 Max Cust Total Max Cust Base Day Billing Water Base Day Billing Test Year W 3.0 -- Water Cost Functionalization Scenario:2022 02 18 -- Equal Percent Adjustments OPERATING EXPENSES/CAPITAL OUTLAYS Treatment Water Department 66.67%33.33%0.00%5,997,436$ 3,998,291$ 1,999,145$ -$ Capital Outlays 66.67%33.33%0.00%2,500 1,667 833 - Total Treatment 5,999,936$ 3,999,957$ 1,999,979$ -$ Distribution Water Department 66.67%33.33%0.00%864,352$ 576,234$ 288,117$ -$ Capital Outlays 66.67%33.33%0.00%3,351,000 2,234,000 1,117,000 - Total Distribution 4,215,352$ 2,810,234$ 1,405,117$ -$ Reclaimed Water Water Department 66.67%33.33%0.00%1,206,652$ 804,434$ 402,217$ -$ Capital Outlays 66.67%33.33%0.00%- - - - Total Flood Irrigation 1,206,652$ 804,434$ 402,217$ -$ Customer Billing Water Department 0.00%0.0%100.0%970,373$ -$ -$ 970,373$ Capital Outlays 0.00%0.0%100.0%8,150 - - 8,150 Total Customer Billing 978,523$ -$ -$ 978,523$ Sub-Total 12,400,462$ 7,614,626$ 3,807,313$ 978,523$ Percentage 100.00%61.41%30.70%7.89% Administration Water Department 61.41%30.70%7.89%3,271,266$ 2,008,753 1,004,377 258,136 Capital Outlays 61.41%30.70%7.89%150,000 92,109 46,054 11,837 Total Administration 3,421,266$ 2,100,862$ 1,050,431$ 269,973$ Total Operating/Cap Outlays 15,821,729$ 9,715,489$ 4,857,744$ 1,248,496$ TRANSFERS Water Department 66.67%33.33%0.00%-$ -$ -$ -$ Total Transfers -$ -$ -$ -$ DEBT SERVICE Current Debt Service 66.67%33.33%0.00%4,935,311$ 3,290,207$ 1,645,104$ -$ Future Debt Service 66.67%33.33%0.00%- - - - Total Debt Service 4,935,311$ 3,290,207$ 1,645,104$ -$ Sub-Total 20,757,039$ 13,005,696$ 6,502,848$ 1,248,496$ Sub-Total Percentage 100.00%62.66%31.33%6.01% NON-RATE REVENUES Non-Rate Revenues 62.66%31.33%6.01%3,369,530 2,111,239 1,055,620 202,671 TOTAL COST OF SERVICE Total Water Cost Classification 17,387,509$ 10,894,456$ 5,447,228$ 1,045,825$ TOWN OF ORO VALLEY AZ WATER COST OF SERVICE MODEL Intellectual Property of Economists.com, LLC / Willdan Group Inc. - Not to be used without express written permission 31 Date: 2/18/2022 2022 02 18 Oro Valley AZ Rate Model Presentation Version Forecast W4 10 Year Forecast 2022 - 2031 Test Year Forecast 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 Forecast W 4.0 -- WATER Service Revenue Requirement Raised from Rates Scenario:2022 02 18 -- Equal Percent Adjustments NON-RATE REVENUES 0 0 0 6000000 WTR-CHARGES FOR SERVICES -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ NR 0 CS 3057 ENGINEER PLAN REV 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 NR 0 CS 3058 CONSTRUCT INSPECT 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 NR 0 CS 3070 MISC SERVICE REVE 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 NR 0 CS 3071 BACKFLOW-INSTALL 4,000 4,000 4,000 4,000 4,000 4,000 4,000 4,000 4,000 4,000 NR 0 MII 3074 SEWER FEES 380,000 380,000 380,000 380,000 380,000 380,000 380,000 380,000 380,000 380,000 NR 0 PI 3075 LATE FEES 90,000 90,000 90,000 90,000 90,000 90,000 90,000 90,000 90,000 90,000 NR 0 PI 3076 NSF FEES 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 NR 0 CS 3086 METER INCOME 99,000 99,000 99,000 99,000 99,000 99,000 99,000 99,000 99,000 99,000 NR 0 CS 3087 NEW SERV ESTABLIS 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 NR 0 PI 3088 RECONNECT FEES 32,000 32,000 32,000 32,000 32,000 32,000 32,000 32,000 32,000 32,000 NR 0 MII 3089 RECHARGE-KAI FARM 48,000 48,000 48,000 48,000 48,000 48,000 48,000 48,000 48,000 48,000 NR 0 MII 3094 GROUNDWATER PRESE 2,394,530 2,421,614 2,440,149 2,452,650 2,465,150 2,477,650 2,490,151 2,502,651 2,515,151 2,527,652 NR 0 MII 3098 STORMWATER FEES 70,000 70,000 70,000 70,000 70,000 70,000 70,000 70,000 70,000 70,000 NR 0 II 3099 INTEREST-INVESTME 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 0 0 0 3063 RESIDENTIAL WATER - - - - - - - - - - 0 0 0 3064 COMMERICAL WATER - - - - - - - - - - 0 0 0 3065 IRRIGATION WATER - - - - - - - - - - 0 0 0 3066 IRRIGATION-RECLAI - - - - - - - - - - 0 0 0 3067 TURF RELATED WATE - - - - - - - - - - 0 0 0 3068 TURF-RECLAIMED - - - - - - - - - - 0 0 0 3069 CONSTRUCTION WATE - - - - - - - - - - 0 0 0 3079 RECLAIMED CONSTRU - - - - - - - - - - 0 0 0 0 0 - - - - - - - - - - 0 0 0 0 0 - - - - - - - - - - 0 0 0 0 0 - - - - - - - - - - 0 0 0 0 0 - - - - - - - - - - 0 0 0 0 Last - - - - - - - - - - Total Non-Rate Revenues 3,369,530$ 3,396,614$ 3,415,149$ 3,427,650$ 3,440,150$ 3,452,650$ 3,465,151$ 3,477,651$ 3,490,151$ 3,502,652$ TOWN OF ORO VALLEY AZ WATER COST OF SERVICE MODEL Intellectual Property of Economists.com, LLC / Willdan Group Inc. - Not to be used without express written permission 32 Date: 2/18/2022 2022 02 18 Oro Valley AZ Rate Model Presentation Version Forecast W4 10 Year Forecast 2022 - 2031 Test Year Forecast 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 Forecast W 4.0 -- WATER Service Revenue Requirement Raised from Rates Scenario:2022 02 18 -- Equal Percent Adjustments TOWN OF ORO VALLEY AZ WATER COST OF SERVICE MODEL OPERATING EXPENSES Department Code 1 Budget Code2 Expense 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 0 0 6088000 WTR-ADMIN-PERSONNEL - - - - - - - - - - W 0 P 5001 REGULAR EMPLOYEES 305,501 311,611 317,843 324,200 330,684 337,298 344,044 350,925 357,943 365,102 W 0 P 5006 GROUP INSURANCE 36,139 36,141 36,143 36,144 36,146 36,148 36,150 36,152 36,153 36,155 W 0 P 5007 SOCIAL SECURITY/M 22,883 23,341 23,807 24,284 24,769 25,265 25,770 26,285 26,811 27,347 W 0 P 5009 ASRS CONTRIBUTION 37,913 38,671 39,445 40,234 41,038 41,859 42,696 43,550 44,421 45,310 W 0 P 5011 WORKERS' COMPENSA 588 600 612 624 636 649 662 675 689 703 W 0 P 5012 OTHER EMPLOYEE BE 1,454 1,483 1,513 1,543 1,574 1,605 1,637 1,670 1,704 1,738 0 0 0 0 0 - - - - - - - - - - 0 0 0 6088010 WTR-ADMIN-O&M - - - - - - - - - - W 0 O&M 6005 OUTSIDE PROFESSIO 94,839 96,736 98,670 100,644 102,657 104,710 106,804 108,940 111,119 113,341 W 0 O&M 6014 WATER & SEWAGE 436 445 454 463 472 481 491 501 511 521 W 0 O&M 6018 VEHICLE REPAIR &36,688 37,422 38,170 38,934 39,712 40,507 41,317 42,143 42,986 43,846 W 0 O&M 6019 EQUIPMENT REPAIR 5,279 5,385 5,492 5,602 5,714 5,828 5,945 6,064 6,185 6,309 W 0 O&M 6026 INSURANCE 80,222 84,233 88,445 92,867 97,510 102,386 107,505 112,880 118,524 124,451 W 0 O&M 6031 PRINTING & BINDING 500 510 520 531 541 552 563 574 586 598 W 0 O&M 6034 TRAVEL & TRAINING 4,500 4,590 4,682 4,775 4,871 4,968 5,068 5,169 5,272 5,378 W 0 O&M 6035 MEMBERSHIPS & SUB 10,950 11,169 11,392 11,620 11,853 12,090 12,331 12,578 12,830 13,086 W 0 O&M 6037 OFFICE SUPPLIES 13,700 13,974 14,253 14,539 14,829 15,126 15,428 15,737 16,052 16,373 W 0 O&M 6038 NATURAL GAS & ELE 6,512 6,838 7,179 7,538 7,915 8,311 8,727 9,163 9,621 10,102 W 0 O&M 6039 GASOLINE 68,790 73,605 78,758 84,271 90,170 96,482 103,235 110,462 118,194 126,468 W 0 O&M 6046 DEPRECIATION - - - - - - - - - - W 0 O&M 6047 OFFICE LEASE 60,168 61,371 62,599 63,851 65,128 66,430 67,759 69,114 70,496 71,906 W 0 O&M 6048 AMORTIZATION - - - - - - - - - - W 0 O&M 6051 REGULATORY EXPENS 11,575 11,807 12,043 12,283 12,529 12,780 13,035 13,296 13,562 13,833 W 0 O&M 6054 WATER UTILITY COM 1,240 1,265 1,290 1,316 1,342 1,369 1,396 1,424 1,453 1,482 W 0 O&M 6094 ADMIN & FINANCIAL 995,267 1,015,172 1,035,476 1,056,185 1,077,309 1,098,855 1,120,832 1,143,249 1,166,114 1,189,436 W 0 0 0 0 - - - - - - - - - - 0 0 0 6088020 WTR-ADMIN-CAPITAL - - - - - - - - - - W 0 CO 9024 EQUIPMENT - - - - - - - - - - 0 0 0 0 0 - - - - - - - - - - 0 0 0 6088025 WTR-ADMIN-DEBT SERVICE - - - - - - - - - - T 0 T 9051 PRINCIPAL PAYMENT - - - - - - - - - - T 0 T 9052 INTEREST PAYMENTS - - - - - - - - - - 0 0 0 0 0 - - - - - - - - - - 0 0 0 6088026 WTR-ADMIN-OTHER FIN USES - - - - - - - - - - T 0 T 9078 TRANSFER TO DEBT - - - - - - - - - - T 0 T 9079 TRANSFER TO CAPIT - - - - - - - - - - 0 0 0 0 0 - - - - - - - - - - 0 0 0 6088027 WTR-ADMIN-CONTINGENCY - - - - - - - - - - T 0 T 9090 CONTINGENCY/RESER - - - - - - - - - - 0 0 0 0 0 - - - - - - - - - - 0 0 0 6088030 WTR-CUSTOMER SVC-PERSONNEL - - - - - - - - - - W 0 P 5001 REGULAR EMPLOYEES 254,662 259,755 264,950 270,249 275,654 281,167 286,791 292,527 298,377 304,345 W 0 P 5002 OVERTIME PAY 100 107 114 123 131 140 150 161 172 184 W 0 P 5006 GROUP INSURANCE 58,364 58,367 58,370 58,373 58,376 58,379 58,382 58,384 58,387 58,390 W 0 P 5007 SOCIAL SECURITY/M 18,248 18,613 18,985 19,365 19,752 20,147 20,550 20,961 21,380 21,808 W 0 P 5009 ASRS CONTRIBUTION 29,488 30,078 30,679 31,293 31,919 32,557 33,208 33,872 34,550 35,241 W 0 P 5011 WORKERS' COMPENSA 493 503 513 523 534 544 555 566 578 589 0 0 0 0 0 - - - - - - - - - - 0 0 0 6088040 WTR-CUST SERVICE-O&M - - - - - - - - - - W 0 O&M 6005 OUTSIDE PROFESSIO 154,100 157,182 160,326 163,532 166,803 170,139 173,542 177,012 180,553 184,164 W 0 O&M 6029 POSTAGE 112,500 114,750 117,045 119,386 121,774 124,209 126,693 129,227 131,812 134,448 Intellectual Property of Economists.com, LLC / Willdan Group Inc. - Not to be used without express written permission 33 Date: 2/18/2022 2022 02 18 Oro Valley AZ Rate Model Presentation Version Forecast W4 10 Year Forecast 2022 - 2031 Test Year Forecast 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 Forecast W 4.0 -- WATER Service Revenue Requirement Raised from Rates Scenario:2022 02 18 -- Equal Percent Adjustments TOWN OF ORO VALLEY AZ WATER COST OF SERVICE MODEL W 0 O&M 6031 PRINTING & BINDIN 9,000 9,180 9,364 9,551 9,742 9,937 10,135 10,338 10,545 10,756 W 0 O&M 6034 TRAVEL & TRAINING 2,500 2,550 2,601 2,653 2,706 2,760 2,815 2,872 2,929 2,988 W 0 O&M 6040 NON-CAPITALIZED E 3,000 3,060 3,121 3,184 3,247 3,312 3,378 3,446 3,515 3,585 W 0 O&M 6043 BAD DEBT EXPENSE 13,000 13,260 13,525 13,796 14,072 14,353 14,640 14,933 15,232 15,536 0 0 0 0 0 - - - - - - - - - - 0 0 0 6088060 WTR-CONSERV-PERSONNEL - - - - - - - - - - W 0 P 5001 REGULAR EMPLOYEES 72,535 73,986 75,465 76,975 78,514 80,085 81,686 83,320 84,986 86,686 W 0 P 5006 GROUP INSURANCE 11,677 11,678 11,678 11,679 11,679 11,680 11,681 11,681 11,682 11,682 Intellectual Property of Economists.com, LLC / Willdan Group Inc. - Not to be used without express written permission 34 Date: 2/18/2022 2022 02 18 Oro Valley AZ Rate Model Presentation Version Forecast W4 10 Year Forecast 2022 - 2031 Test Year Forecast 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 Forecast W 4.0 -- WATER Service Revenue Requirement Raised from Rates Scenario:2022 02 18 -- Equal Percent Adjustments TOWN OF ORO VALLEY AZ WATER COST OF SERVICE MODEL W 0 P 5007 SOCIAL SECURITY/M 5,305 5,411 5,519 5,630 5,742 5,857 5,974 6,094 6,216 6,340 W 0 P 5009 ASRS CONTRIBUTION 9,002 9,182 9,366 9,553 9,744 9,939 10,138 10,340 10,547 10,758 W 0 P 5011 WORKERS' COMPENSA 2,017 2,057 2,098 2,140 2,183 2,227 2,271 2,317 2,363 2,411 0 0 0 0 0 - - - - - - - - - - 0 0 0 6088070 WTR-CONSERV-O&M - - - - - - - - - - W 0 O&M 6005 OUTSIDE PROFESSIO 45,900 46,818 47,754 48,709 49,684 50,677 51,691 52,725 53,779 54,855 W 0 O&M 6031 PRINTING & BINDIN 11,200 11,424 11,652 11,886 12,123 12,366 12,613 12,865 13,123 13,385 W 0 O&M 6034 TRAVEL & TRAINING 600 612 624 637 649 662 676 689 703 717 W 0 O&M 6035 MEMBERSHIPS & SUB 3,045 3,106 3,168 3,231 3,296 3,362 3,429 3,498 3,568 3,639 W 0 O&M 6040 NON-CAPITALIZED E 300 306 312 318 325 331 338 345 351 359 W 0 O&M 6041 UNIFORMS 500 510 520 531 541 552 563 574 586 598 W 0 O&M 6044 FIELD SUPPLIES 300 306 312 318 325 331 338 345 351 359 W 0 O&M 6084 CONSERVATION 500 510 520 531 541 552 563 574 586 598 0 0 0 0 0 - - - - - - - - - - 0 0 0 6088090 WTR-WTR RES-O&M - - - - - - - - - - W 0 O&M 6005 OUTSIDE PROFESSIO 125,000 127,500 130,050 132,651 135,304 138,010 140,770 143,586 146,457 149,387 CAP 0 CAP 6010 CAP WATER CAPITAL 376,208 387,165 460,215 504,045 489,435 485,783 493,088 500,393 507,698 515,003 CAP 0 CAP 6011 CAP WATER DELIVER 1,813,680 2,019,780 2,133,135 2,246,490 2,303,168 2,375,303 2,493,810 2,617,470 2,746,283 2,885,400 W 0 O&M 6051 81301 REGULATORY E 50,000 51,000 52,020 53,060 54,122 55,204 56,308 57,434 58,583 59,755 CAP 0 CAP 6082 CAP WATER WHEELIN 1,873,000 1,947,920 2,025,837 1,346,870 1,400,745 1,456,775 1,515,046 1,575,647 1,638,673 1,704,220 0 0 0 0 0 - - - - - - - - - - 0 0 0 6088100 WTR-ENG ADMIN-PERSONNEL - - - - - - - - - - W 0 P 5001 REGULAR EMPLOYEES 325,934 332,453 339,102 345,884 352,801 359,857 367,055 374,396 381,884 389,521 W 0 P 5006 GROUP INSURANCE 40,268 40,270 40,272 40,274 40,276 40,278 40,280 40,282 40,284 40,286 W 0 P 5007 SOCIAL SECURITY/M 24,263 24,748 25,243 25,748 26,263 26,788 27,324 27,871 28,428 28,997 W 0 P 5009 ASRS CONTRIBUTION 40,448 41,257 42,082 42,924 43,782 44,658 45,551 46,462 47,391 48,339 W 0 P 5011 WORKERS' COMPENSA 4,476 4,566 4,657 4,750 4,845 4,942 5,041 5,142 5,244 5,349 0 0 0 0 0 - - - - - - - - - - 0 0 0 6088110 WTR-ENG ADMIN-O&M - - - - - - - - - - W 0 A 6005 OUTSIDE PROFESSIO 102,000 104,040 106,121 108,243 110,408 112,616 114,869 117,166 119,509 121,899 W 0 A 6031 PRINTING & BINDIN 2,000 2,040 2,081 2,122 2,165 2,208 2,252 2,297 2,343 2,390 W 0 A 6034 TRAVEL & TRAINING 4,700 4,794 4,890 4,988 5,087 5,189 5,293 5,399 5,507 5,617 W 0 A 6035 MEMBERSHIPS & SUB 717 731 746 761 776 792 807 824 840 857 W 0 A 6051 REGULATORY EXPENS 100 102 104 106 108 110 113 115 117 120 W 0 A 6064 SAFETY COMPLIANCE 300 306 312 318 325 331 338 345 351 359 W 0 A 6094 ADMINISTRATIVE SE 95,299 97,205 99,149 101,132 103,155 105,218 107,322 109,469 111,658 113,891 0 0 0 0 0 - - - - - - - - - - 0 0 0 6088150 WTR-CAPITAL IMPROV-CAPITAL - - - - - - - - - - W 0 CO 9007 82153 WELLS - - - - - - - - - - W 0 CO 9007 82191 WELLS - - - - - - - - - - W 0 CO 9008 82171 BOOSTER STAT - - - - - - - - - - W 0 CO 9008 WT011 BOOSTER STAT - - - - - - - - - - W 0 CO 9008 WT012 BOOSTER STAT - - - - - - - - - - W 0 CO 9009 TRANSMISSION/DIST - - - - - - - - - - W 0 CO 9009 WT003 TRANSMISSION - - - - - - - - - - W 0 CO 9009 WT010 TRANSMISSION - - - - - - - - - - W 0 CO 9010 WT007 RESERVOIRS - - - - - - - - - - W 0 CO 9012 82185 STRUCTURES - - - - - - - - - - 0 0 0 0 0 - - - - - - - - - - 0 0 0 6088160 WTR-CONST INSP-PERSONNEL - - - - - - - - - - W 0 P 5001 REGULAR EMPLOYEES 129,349 131,936 134,575 137,266 140,012 142,812 145,668 148,581 151,553 154,584 W 0 P 5002 OVERTIME PAY 500 510 520 531 541 552 563 574 586 598 W 0 P 5006 GROUP INSURANCE 20,788 20,789 20,790 20,791 20,792 20,793 20,794 20,795 20,796 20,797 W 0 P 5007 SOCIAL SECURITY/M 9,536 9,727 9,921 10,120 10,322 10,529 10,739 10,954 11,173 11,396 Intellectual Property of Economists.com, LLC / Willdan Group Inc. - Not to be used without express written permission 35 Date: 2/18/2022 2022 02 18 Oro Valley AZ Rate Model Presentation Version Forecast W4 10 Year Forecast 2022 - 2031 Test Year Forecast 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 Forecast W 4.0 -- WATER Service Revenue Requirement Raised from Rates Scenario:2022 02 18 -- Equal Percent Adjustments TOWN OF ORO VALLEY AZ WATER COST OF SERVICE MODEL W 0 P 5009 ASRS CONTRIBUTION 16,114 16,436 16,765 17,100 17,442 17,791 18,147 18,510 18,880 19,258 W 0 P 5011 WORKERS' COMPENSA 3,610 3,682 3,756 3,831 3,908 3,986 4,065 4,147 4,230 4,314 0 0 0 0 0 - - - - - - - - - - 0 0 0 6088170 WTR-CONST INSP-O&M - - - - - - - - - - W 0 O&M 6034 TRAVEL & TRAINING 250 255 260 265 271 276 282 287 293 299 W 0 O&M 6036 TESTING 1,000 1,020 1,040 1,061 1,082 1,104 1,126 1,149 1,172 1,195 W 0 O&M 6040 NON-CAPITALIZED E 775 791 806 822 839 856 873 890 908 926 W 0 O&M 6041 UNIFORMS 1,100 1,122 1,144 1,167 1,191 1,214 1,239 1,264 1,289 1,315 W 0 O&M 6044 FIELD SUPPLIES 600 612 624 637 649 662 676 689 703 717 W 0 O&M 6051 REGULATORY EXPENS 150 153 156 159 162 166 169 172 176 179 W 0 O&M 6064 SAFETY COMPLIANCE 460 469 479 488 498 508 518 528 539 550 0 0 0 0 0 - - - - - - - - - - 0 0 0 6088220 WTR-OPS PRODUCTION-PERSONNEL - - - - - - - - - - W 0 P 5001 REGULAR EMPLOYEES 369,211 376,595 384,127 391,810 399,646 407,639 415,792 424,107 432,590 441,241 W 0 P 5002 OVERTIME PAY 18,000 18,360 18,727 19,102 19,484 19,873 20,271 20,676 21,090 21,512 W 0 P 5006 GROUP INSURANCE 75,688 75,692 75,696 75,699 75,703 75,707 75,711 75,714 75,718 75,722 W 0 P 5007 SOCIAL SECURITY/M 28,725 29,300 29,885 30,483 31,093 31,715 32,349 32,996 33,656 34,329 W 0 P 5009 ASRS CONTRIBUTION 49,046 50,027 51,027 52,048 53,089 54,151 55,234 56,338 57,465 58,615 W 0 P 5011 WORKERS' COMPENSA 10,988 11,208 11,432 11,661 11,894 12,132 12,374 12,622 12,874 13,132 W 0 P 5018 SPECIAL PAY NON P 8,000 8,160 8,323 8,490 8,659 8,833 9,009 9,189 9,373 9,561 0 0 0 0 0 - - - - - - - - - - 0 0 0 6088230 WTR-OPS PRODUCTION-O&M - - - - - - - - - - W 0 O&M 6005 OUTSIDE PROFESSIO 496 506 516 526 537 548 559 570 581 593 W 0 U 6012 POWER PURCHASED F 850,000 892,500 937,125 983,981 1,033,180 1,084,839 1,139,081 1,196,035 1,255,837 1,318,629 Intellectual Property of Economists.com, LLC / Willdan Group Inc. - Not to be used without express written permission 36 Date: 2/18/2022 2022 02 18 Oro Valley AZ Rate Model Presentation Version Forecast W4 10 Year Forecast 2022 - 2031 Test Year Forecast 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 Forecast W 4.0 -- WATER Service Revenue Requirement Raised from Rates Scenario:2022 02 18 -- Equal Percent Adjustments TOWN OF ORO VALLEY AZ WATER COST OF SERVICE MODEL W 0 O&M 6015 WASTE DISPOSAL FE 1,082 1,136 1,193 1,253 1,315 1,381 1,450 1,522 1,599 1,679 W 0 O&M 6019 EQUIPMENT REPAIR 8,048 8,209 8,373 8,541 8,711 8,886 9,063 9,245 9,430 9,618 W 0 O&M 6020 BUILDING REPAIR &2,596 2,648 2,701 2,755 2,810 2,866 2,924 2,982 3,042 3,102 W 0 O&M 6021 GROUNDS REPAIR &6,317 6,443 6,572 6,704 6,838 6,974 7,114 7,256 7,401 7,549 W 0 O&M 6024 CHEMICALS 60,000 64,200 68,694 73,503 78,648 84,153 90,044 96,347 103,091 110,308 W 0 O&M 6025 RENTALS 500 510 520 531 541 552 563 574 586 598 W 0 O&M 6034 TRAVEL & TRAINING 3,118 3,180 3,244 3,309 3,375 3,443 3,511 3,582 3,653 3,726 W 0 O&M 6036 TESTING 2,077 2,119 2,161 2,204 2,248 2,293 2,339 2,386 2,434 2,482 W 0 O&M 6040 NON-CAPITALIZED E 2,752 2,807 2,863 2,920 2,979 3,038 3,099 3,161 3,224 3,289 W 0 O&M 6041 UNIFORMS 8,568 8,739 8,914 9,092 9,274 9,460 9,649 9,842 10,039 10,240 W 0 O&M 6044 FIELD SUPPLIES 4,403 4,491 4,581 4,672 4,766 4,861 4,958 5,058 5,159 5,262 W 0 O&M 6051 REGULATORY EXPENS 3,613 3,685 3,759 3,834 3,911 3,989 4,069 4,150 4,233 4,318 W 0 O&M 6055 EQUIP. R&M-WELLS 21,000 21,420 21,848 22,285 22,731 23,186 23,649 24,122 24,605 25,097 W 0 O&M 6056 EQUIP. R&M-BOOSTE 18,500 18,870 19,247 19,632 20,025 20,425 20,834 21,251 21,676 22,109 W 0 O&M 6058 EQUIP. R&M-RESERV 23,000 23,460 23,929 24,408 24,896 25,394 25,902 26,420 26,948 27,487 W 0 O&M 6061 EQUIPMENT R&M - M 2,000 2,040 2,081 2,122 2,165 2,208 2,252 2,297 2,343 2,390 W 0 O&M 6064 SAFETY COMPLIANCE 2,110 2,152 2,195 2,239 2,284 2,330 2,376 2,424 2,472 2,522 W 0 O&M 6085 EQUIP. R&M-DISINF 14,000 14,280 14,566 14,857 15,154 15,457 15,766 16,082 16,403 16,731 NWWRRDS 0 NWWRRDS 0 Nortwest Recharge, Recovery & Delivery System (NWRRDS)0 0 160,000 320,000 480,000 499,200 519,168 539,935 561,532 583,994 0 0 0 6088260 WTR-OPS PROD-RECLAIM-O&M - - - - - - - - - - REC 0 REC 6004 EFFLUENT SHORTAGE 30,000 30,600 31,212 31,836 32,473 33,122 33,785 34,461 35,150 35,853 REC 0 REC 6005 OUTSIDE PROFESSIO 7,197 7,341 7,488 7,638 7,790 7,946 8,105 8,267 8,432 8,601 REC 0 REC 6012 POWER PURCHASED F 55,000 57,750 60,638 63,669 66,853 70,195 73,705 77,391 81,260 85,323 REC 0 REC 6014 WATER & SEWAGE 39 40 41 41 42 43 44 45 46 47 REC 0 REC 6015 WASTE DISPOSAL FE 168 171 175 178 182 185 189 193 197 201 REC 0 REC 6018 VEHICLE REPAIR &3,312 3,378 3,446 3,515 3,585 3,657 3,730 3,804 3,881 3,958 REC 0 REC 6019 EQUIPMENT REPAIR 2,073 2,114 2,157 2,200 2,244 2,289 2,335 2,381 2,429 2,477 REC 0 REC 6020 BUILDING REPAIR &404 412 420 429 437 446 455 464 473 483 REC 0 REC 6021 GROUNDS REPAIR &982 1,002 1,022 1,042 1,063 1,084 1,106 1,128 1,151 1,174 REC 0 REC 6024 CHEMICALS 20,000 21,400 22,898 24,501 26,216 28,051 30,015 32,116 34,364 36,769 REC 0 REC 6026 INSURANCE 16,805 17,981 19,240 20,587 22,028 23,570 25,220 26,985 28,874 30,895 REC 0 REC 6034 TRAVEL & TRAINING 713 727 742 757 772 787 803 819 835 852 REC 0 REC 6036 TESTING 323 329 336 343 350 357 364 371 378 386 REC 0 REC 6038 NATURAL GAS & ELE 588 617 648 681 715 750 788 827 869 912 REC 0 REC 6039 GASOLINE 6,210 6,645 7,110 7,608 8,140 8,710 9,320 9,972 10,670 11,417 REC 0 REC 6040 NON-CAPITALIZED E 414 422 431 439 448 457 466 476 485 495 REC 0 REC 6041 UNIFORMS 960 979 999 1,019 1,039 1,060 1,081 1,103 1,125 1,147 REC 0 REC 6044 FIELD SUPPLIES 496 506 516 526 537 548 559 570 581 593 REC 0 REC 6046 DEPRECIATION - - - - - - - - - - REC 0 REC 6047 OFFICE LEASE 5,432 5,541 5,651 5,764 5,880 5,997 6,117 6,240 6,364 6,492 REC 0 REC 6051 REGULATORY EXPENS 3,182 3,246 3,311 3,377 3,444 3,513 3,583 3,655 3,728 3,803 REC 0 REC 6054 WATER UTILITY COM 260 265 271 276 281 287 293 299 305 311 REC 0 REC 6056 EQUIP. R&M-BOOSTE 3,460 3,529 3,600 3,672 3,745 3,820 3,897 3,974 4,054 4,135 REC 0 REC 6057 EQUIP. R&M-MAINS 5,000 5,100 5,202 5,306 5,412 5,520 5,631 5,743 5,858 5,975 REC 0 REC 6058 EQUIP. R&M-RESERV 250 255 260 265 271 276 282 287 293 299 REC 0 REC 6059 EQUIP. R&M-SERVIC 500 510 520 531 541 552 563 574 586 598 REC 0 REC 6060 EQUIP. R&M-HYDRAN 500 510 520 531 541 552 563 574 586 598 REC 0 REC 6061 EQUIPMENT R&M - M 4,000 4,080 4,162 4,245 4,330 4,416 4,505 4,595 4,687 4,780 REC 0 REC 6062 BLUESTAKE 1,153 1,176 1,200 1,224 1,248 1,273 1,298 1,324 1,351 1,378 REC 0 REC 6064 SAFETY COMPLIANCE 314 320 327 333 340 347 354 361 368 375 REC 0 REC 6085 EQUIP. R&M-DISINF 2,024 2,064 2,106 2,148 2,191 2,235 2,279 2,325 2,371 2,419 REC 0 REC 6094 ADMIN & FINANCIAL 98,451 100,420 102,428 104,477 106,567 108,698 110,872 113,089 115,351 117,658 REC 0 REC 6099 RECLAIMED WATER F 678,860 692,437 706,286 720,412 734,820 749,516 764,507 779,797 795,393 811,301 0 0 0 0 0 - - - - - - - - - - Intellectual Property of Economists.com, LLC / Willdan Group Inc. - Not to be used without express written permission 37 Date: 2/18/2022 2022 02 18 Oro Valley AZ Rate Model Presentation Version Forecast W4 10 Year Forecast 2022 - 2031 Test Year Forecast 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 Forecast W 4.0 -- WATER Service Revenue Requirement Raised from Rates Scenario:2022 02 18 -- Equal Percent Adjustments TOWN OF ORO VALLEY AZ WATER COST OF SERVICE MODEL 0 0 0 6088280 WTR-OPS DISTRIBUTION-PERSONNEL - - - - - - - - - - W 0 P 5001 REGULAR EMPLOYEES 334,670 341,363 348,191 355,154 362,258 369,503 376,893 384,431 392,119 399,962 W 0 P 5002 OVERTIME PAY 20,000 20,400 20,808 21,224 21,649 22,082 22,523 22,974 23,433 23,902 W 0 P 5006 GROUP INSURANCE 78,748 78,752 78,756 78,760 78,764 78,768 78,772 78,776 78,780 78,783 W 0 P 5007 SOCIAL SECURITY/M 25,933 26,452 26,981 27,520 28,071 28,632 29,205 29,789 30,385 30,992 W 0 P 5009 ASRS CONTRIBUTION 44,573 45,464 46,374 47,301 48,247 49,212 50,196 51,200 52,224 53,269 W 0 P 5011 WORKERS' COMPENSA 9,986 10,186 10,389 10,597 10,809 11,025 11,246 11,471 11,700 11,934 W 0 P 5018 SPECIAL PAY NON P 4,500 4,590 4,682 4,775 4,871 4,968 5,068 5,169 5,272 5,378 0 0 0 0 0 - - - - - - - - - - 0 0 0 6088290 WTR-OPS DISTRIBUTION-O&M - - - - - - - - - - W 0 O&M 6005 OUTSIDE PROFESSIO 750 765 780 796 812 828 845 862 879 896 W 0 O&M 6015 WASTE DISPOSAL FE 709 723 738 752 767 783 798 814 831 847 W 0 O&M 6019 EQUIPMENT REPAIR 5,360 5,467 5,577 5,688 5,802 5,918 6,036 6,157 6,280 6,406 W 0 O&M 6034 TRAVEL & TRAINING 5,505 5,615 5,727 5,842 5,959 6,078 6,200 6,324 6,450 6,579 W 0 O&M 6040 NON-CAPITALIZED E 5,000 5,100 5,202 5,306 5,412 5,520 5,631 5,743 5,858 5,975 W 0 O&M 6041 UNIFORMS 4,200 4,284 4,370 4,457 4,546 4,637 4,730 4,824 4,921 5,019 W 0 O&M 6044 FIELD SUPPLIES 4,500 4,590 4,682 4,775 4,871 4,968 5,068 5,169 5,272 5,378 W 0 O&M 6051 REGULATORY EXPENS 350 357 364 371 379 386 394 402 410 418 W 0 O&M 6057 EQUIP. R&M-MAINS 98,000 99,960 101,959 103,998 106,078 108,200 110,364 112,571 114,823 117,119 W 0 O&M 6059 EQUIP. R&M-SERVIC 10,000 10,200 10,404 10,612 10,824 11,041 11,262 11,487 11,717 11,951 W 0 O&M 6060 EQUIP. R&M-HYDRAN 30,500 31,110 31,732 32,367 33,014 33,674 34,348 35,035 35,736 36,450 Intellectual Property of Economists.com, LLC / Willdan Group Inc. - Not to be used without express written permission 38 Date: 2/18/2022 2022 02 18 Oro Valley AZ Rate Model Presentation Version Forecast W4 10 Year Forecast 2022 - 2031 Test Year Forecast 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 Forecast W 4.0 -- WATER Service Revenue Requirement Raised from Rates Scenario:2022 02 18 -- Equal Percent Adjustments TOWN OF ORO VALLEY AZ WATER COST OF SERVICE MODEL P Personnel 3,662,217$ 3,726,253$ 3,791,571$ 3,858,194$ 3,926,150$ 3,995,464$ 4,066,166$ 4,138,281$ 4,211,838$ 4,286,867$ CAP Central Arizona Project 4,062,888 4,354,865 4,619,187 4,097,405 4,193,347 4,317,860 4,501,943 4,693,510 4,892,653 5,104,623 O&M Operations & Maintenance 2,580,788 2,641,478 2,703,964 2,768,320 2,834,625 2,902,961 2,973,414 3,046,077 3,121,045 3,198,423 A Administrative Expense 205,116 209,218 213,403 217,671 222,024 226,465 230,994 235,614 240,326 245,133 U Utilities 850,000 892,500 937,125 983,981 1,033,180 1,084,839 1,139,081 1,196,035 1,255,837 1,318,629 REC Reclaimed Water 949,070 971,870 995,360 1,019,568 1,044,524 1,070,261 1,096,811 1,124,210 1,152,494 1,181,703 NWWRRDS Northwest Recharge, Recovery & Delivery System 0 0 160,000 320,000 480,000 499,200 519,168 539,935 561,532 583,994 #N/A - - - - - - - - - - #N/A - - - - - - - - - - #N/A - - - - - - - - - - #N/A - - - - - - - - - - #N/A - - - - - - - - - - #N/A - - - - - - - - - - #N/A - - - - - - - - - - Total 12,310,079 12,796,184 13,420,608 13,265,139 13,733,851 14,097,050 14,527,577 14,973,661 15,435,727 15,919,371 TRUE TRUE TRUE TRUE TRUE TRUE TRUE TRUE TRUE TRUE W Water Department 7,298,121 7,469,450 7,646,062 7,828,166 8,015,979 8,209,729 8,409,655 8,616,006 8,829,047 9,049,052 REC Reclaimed Water 949,070 971,870 995,360 1,019,568 1,044,524 1,070,261 1,096,811 1,124,210 1,152,494 1,181,703 CAP Central Arizona Project 4,062,888 4,354,865 4,619,187 4,097,405 4,193,347 4,317,860 4,501,943 4,693,510 4,892,653 5,104,623 NWWRRDS Northwest Recharge, Recovery & Delivery System 0 0 160,000 320,000 480,000 499,200 519,168 539,935 561,532 583,994 #N/A - - - - - - - - - - #N/A - - - - - - - - - - #N/A - - - - - - - - - - #N/A - - - - - - - - - - #N/A - - - - - - - - - - #N/A - - - - - - - - - - Total Operating Exp & Contingencies 12,310,079$ 12,796,184$ 13,420,608$ 13,265,139$ 13,733,851$ 14,097,050$ 14,527,577$ 14,973,661$ 15,435,727$ 15,919,371$ TRUE TRUE TRUE TRUE TRUE TRUE TRUE TRUE TRUE TRUE Budget Code Department Code Intellectual Property of Economists.com, LLC / Willdan Group Inc. - Not to be used without express written permission 41 Date: 2/18/2022 2022 02 18 Oro Valley AZ Rate Model Presentation Version Forecast W4 10 Year Forecast 2022 - 2031 Test Year Forecast 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 Forecast W 4.0 -- WATER Service Revenue Requirement Raised from Rates Scenario:2022 02 18 -- Equal Percent Adjustments TOWN OF ORO VALLEY AZ WATER COST OF SERVICE MODEL CAPITAL OUTLAYS Treatment 2,500$ 2,500$ 2,500$ 2,500$ 2,500$ 2,500$ 2,500$ 2,500$ 2,500$ 2,500$ Distribution 3,351,000 1,510,000 3,090,000 3,090,000 3,090,000 3,090,000 3,090,000 3,090,000 3,090,000 3,090,000 Administration 150,000 150,000 150,000 150,000 150,000 150,000 150,000 150,000 150,000 150,000 Customer 8,150 8,150 8,150 8,150 8,150 8,150 8,150 8,150 8,150 8,150 Flood Irrigation - - - - - - - - - - TOTAL WATER CAPITAL OUTLAYS 3,511,650$ 1,670,650$ 3,250,650$ 3,250,650$ 3,250,650$ 3,250,650$ 3,250,650$ 3,250,650$ 3,250,650$ 3,250,650$ CONTINGENCIES & TRANSFERS T Contingencies & Transfers -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ CURRENT DEBT SERVICE - WATER Water Debt Service Principal & Interest 4,251,864$ 4,229,100$ 3,300,830$ 3,116,988$ 3,188,042$ 3,109,592$ 1,516,368$ 1,263,409$ 558,245$ 462,000$ Other 683,447 551,141 377,778 309,095 239,236 168,849 117,979 87,752 65,884 51,438 Reserve - - - - - - - - - - TOTAL CURRENT DEBT SERVICE -- WATER 4,935,311$ 4,780,241$ 3,678,607$ 3,426,083$ 3,427,277$ 3,278,441$ 1,634,346$ 1,351,161$ 624,129$ 513,438$ FUTURE DEBT SERVICE - WATER Water Debt Service Principal -$ 274,027$ 284,988$ 296,388$ 308,243$ 320,573$ 333,396$ 346,732$ 360,601$ 375,025$ Interest - 326,400 315,439 304,039 292,184 279,854 267,031 253,695 239,826 225,402 Reserve - - - - - - - - - - TOTAL FUTURE DEBT SERVICE -- WATER -$ 600,427$ 600,427$ 600,427$ 600,427$ 600,427$ 600,427$ 600,427$ 600,427$ 600,427$ TOTAL COST OF SERVICE TOTAL COST OF SERVICE - WATER 20,757,039$ 19,847,502$ 20,950,293$ 20,542,299$ 21,012,205$ 21,226,568$ 20,013,001$ 20,175,900$ 19,910,933$ 20,283,887$ NON RATE REVENUES TOTAL WATER NON-RATE REVENUES 3,369,530$ 3,396,614$ 3,415,149$ 3,427,650$ 3,440,150$ 3,452,650$ 3,465,151$ 3,477,651$ 3,490,151$ 3,502,652$ TOTAL REVENUE REQUIREMENT TOTAL WATER REVENUE REQUIREMENT 17,387,509$ 16,450,888$ 17,535,144$ 17,114,650$ 17,572,056$ 17,773,918$ 16,547,850$ 16,698,249$ 16,420,782$ 16,781,235$ Intellectual Property of Economists.com, LLC / Willdan Group Inc. - Not to be used without express written permission 42 Date: 2/18/2022 2022 02 18 Oro Valley AZ Rate Model Presentation Version Forecast W5 10 Year Forecast 2022 - 2031 Test Year Forecast 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 Forecast W 5.0 -- WATER Service Cost Functionalization Scenario:2022 02 18 -- Equal Percent Adjustments OPERATING EXPENSES Water Personnel Services Allocation Factor Treatment 15.4%15.4%15.4%15.4%15.4%15.4%15.4%15.4%15.4%15.4% Distribution 14.4%14.4%14.4%14.4%14.4%14.4%14.4%14.4%14.4%14.4% Administration 45.8%45.8%45.8%45.8%45.8%45.8%45.8%45.8%45.8%45.8% Customer 17.9%17.9%17.9%17.9%17.9%17.9%17.9%17.9%17.9%17.9% Reclaimed Water 6.6%6.6%6.6%6.6%6.6%6.6%6.6%6.6%6.6%6.6% Total 100.0%100.0%100.0%100.0%100.0%100.0%100.0%100.0%100.0%100.0% Total Cost Treatment 563,573$ 573,428$ 583,479$ 593,732$ 604,190$ 614,856$ 625,736$ 636,834$ 648,154$ 659,700$ Distribution 525,742 534,935 544,311 553,876 563,631 573,582 583,732 594,085 604,644 615,415 Administration 1,675,531 1,704,829 1,734,712 1,765,194 1,796,285 1,827,997 1,860,344 1,893,338 1,926,992 1,961,319 Customer 656,778 668,262 679,976 691,924 704,111 716,542 729,222 742,155 755,346 768,802 Reclaimed Water 240,593 244,800 249,091 253,468 257,933 262,486 267,131 271,869 276,701 281,630 Total 3,662,217$ 3,726,253$ 3,791,571$ 3,858,194$ 3,926,150$ 3,995,464$ 4,066,166$ 4,138,281$ 4,211,838$ 4,286,867$ Total Operating/Contingencies Allocation Factor Treatment 62.8%62.8%62.8%62.8%62.8%62.8%62.8%62.8%62.8%62.8% Distribution 3.9%3.9%3.9%3.9%3.9%3.9%3.9%3.9%3.9%3.9% Administration 18.5%18.5%18.5%18.5%18.5%18.5%18.5%18.5%18.5%18.5% Customer 3.6%3.6%3.6%3.6%3.6%3.6%3.6%3.6%3.6%3.6% Reclaimed Water 11.2%11.2%11.2%11.2%11.2%11.2%11.2%11.2%11.2%11.2% Total 100.0%100.0%100.0%100.0%100.0%100.0%100.0%100.0%100.0%100.0% Total Cost Treatment 5,433,863$ 5,699,069$ 6050382.294 5,910,831$ 6,162,645$ 6,347,306$ 6,573,402$ 6,808,385$ 7,052,503$ 7,309,256$ Distribution 338,610 355,136 377,028 368,332 384,024 395,531 409,620 424,263 439,475 455,475 Administration 1,595,736 1,673,617 1,776,786 1,735,805 1,809,754 1,863,982 1,930,379 1,999,385 2,071,074 2,146,473 Customer 313,595 328,900 349,175 341,121 355,654 366,311 379,359 392,920 407,009 421,826 Reclaimed Water 966,058 1,013,208 1,075,666 1,050,856 1,095,625 1,128,455 1,168,651 1,210,428 1,253,828 1,299,475 Total 8,647,862$ 9,069,931$ 9,629,038$ 9,406,945$ 9,807,701$ 10,101,585$ 10,461,412$ 10,835,380$ 11,223,889$ 11,632,504$ Total Water Operating Expenses 12,310,079$ 12,796,184$ 13,420,608$ 13,265,139$ 13,733,851$ 14,097,050$ 14,527,577$ 14,973,661$ 15,435,727$ 15,919,371$ TRUE TRUE TRUE TRUE TRUE TRUE TRUE TRUE TRUE TRUE TOWN OF ORO VALLEY AZ WATER COST OF SERVICE MODEL Intellectual Property of Economists.com, LLC / Willdan Group Inc. - Not to be used without express written permission 43 Date: 2/18/2022 2022 02 18 Oro Valley AZ Rate Model Presentation Version Forecast W5 10 Year Forecast 2022 - 2031 Test Year Forecast 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 Forecast W 5.0 -- WATER Service Cost Functionalization Scenario:2022 02 18 -- Equal Percent Adjustments TOWN OF ORO VALLEY AZ WATER COST OF SERVICE MODEL CAPITAL OUTLAYS Water Capital Outlays Treatment 2,500$ 2,500$ 2,500$ 2,500$ 2,500$ 2,500$ 2,500$ 2,500$ 2,500$ 2,500$ Distribution 3,351,000 1,510,000 3,090,000 3,090,000 3,090,000 3,090,000 3,090,000 3,090,000 3,090,000 3,090,000 Administration 150,000 150,000 150,000 150,000 150,000 150,000 150,000 150,000 150,000 150,000 Customer 8,150 8,150 8,150 8,150 8,150 8,150 8,150 8,150 8,150 8,150 Reclaimed Water - - - - - - - - - - Total Water Capital Outlays 3,511,650$ 1,670,650$ 3,250,650$ 3,250,650$ 3,250,650$ 3,250,650$ 3,250,650$ 3,250,650$ 3,250,650$ 3,250,650$ TRANSFERS Water Allocated Transfers Treatment 0.00%-$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Distribution 0.00%- - - - - - - - - - Administration 0.00%- - - - - - - - - - Customer 0.00%- - - - - - - - - - Reclaimed Water 0.00%- - - - - - - - - - Total Water Transfers -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ CURRENT DEBT SERVICE Water Debt Service Treatment 2,230,122$ 2,168,964$ 1,259,009$ 1,053,340$ 1,055,341$ 1,056,448$ 1,052,036$ 821,132$ 346,938$ 256,719$ Distribution 2,705,189 2,611,277 2,419,599 2,372,743 2,371,936 2,221,993 582,310 530,029 277,191 256,719 Administration - - - - - - - - - - Customer - - - - - - - - - - Reclaimed Water - - - - - - - - - - Total Current Water Debt Service 4,935,311$ 4,780,241$ 3,678,607$ 3,426,083$ 3,427,277$ 3,278,441$ 1,634,346$ 1,351,161$ 624,129$ 513,438$ FUTURE DEBT SERVICE Water Debt Service Treatment -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Distribution - 600,427 600,427 600,427 600,427 600,427 600,427 600,427 600,427 600,427 Administration - - - - - - - - - - Customer - - - - - - - - - - Reclaimed Water - - - - - - - - - - Total Future Water Debt Service -$ 600,427$ 600,427$ 600,427$ 600,427$ 600,427$ 600,427$ 600,427$ 600,427$ 600,427$ Intellectual Property of Economists.com, LLC / Willdan Group Inc. - Not to be used without express written permission 44 Date: 2/18/2022 2022 02 18 Oro Valley AZ Rate Model Presentation Version Forecast W5 10 Year Forecast 2022 - 2031 Test Year Forecast 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 Forecast W 5.0 -- WATER Service Cost Functionalization Scenario:2022 02 18 -- Equal Percent Adjustments TOWN OF ORO VALLEY AZ WATER COST OF SERVICE MODEL TOTAL COST OF SERVICE Total Water COS Treatment 8,230,058$ 8,443,961$ 7,895,370$ 7,560,403$ 7,824,676$ 8,021,111$ 8,253,675$ 8,268,851$ 8,050,095$ 8,228,174$ Distribution 6,920,541 5,611,775 7,031,366 6,985,378 7,010,019 6,881,533 5,266,089 5,238,804 5,011,737 5,018,036 Administration 3,421,266 3,528,446 3,661,498 3,650,998 3,756,038 3,841,980 3,940,723 4,042,723 4,148,066 4,257,792 Customer 978,523 1,005,313 1,037,301 1,041,196 1,067,915 1,091,003 1,116,731 1,143,225 1,170,505 1,198,778 Reclaimed Water 1,206,652 1,258,008 1,324,758 1,304,324 1,353,558 1,390,941 1,435,782 1,482,296 1,530,529 1,581,105 Total 20,757,039$ 19,847,502$ 20,950,293$ 20,542,299$ 21,012,205$ 21,226,568$ 20,013,001$ 20,175,900$ 19,910,933$ 20,283,887$ Intellectual Property of Economists.com, LLC / Willdan Group Inc. - Not to be used without express written permission 45 Date: 2/18/2022 2022 02 18 Oro Valley AZ Rate Model Presentation Version Forecast W6 10 Year Forecast 2022 - 2031 Allocation %2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 Forecast W 6.0 -- Water Cost Classification Scenario:2022 02 18 -- Equal Percent Adjustments Total Water Costs Treatment 8,230,058$ 8,443,961$ 7,895,370$ 7,560,403$ 7,824,676$ 8,021,111$ 8,253,675$ 8,268,851$ 8,050,095$ 8,228,174$ Distribution 6,920,541 5,611,775 7,031,366 6,985,378 7,010,019 6,881,533 5,266,089 5,238,804 5,011,737 5,018,036 Admin 3,421,266 3,528,446 3,661,498 3,650,998 3,756,038 3,841,980 3,940,723 4,042,723 4,148,066 4,257,792 Customer 978,523 1,005,313 1,037,301 1,041,196 1,067,915 1,091,003 1,116,731 1,143,225 1,170,505 1,198,778 Potable Water Costs 19,550,388 18,589,494 19,625,535 19,237,975 19,658,648 19,835,627 18,577,218 18,693,603 18,380,404 18,702,781 Reclaimed Water 1,206,652 1,258,008 1,324,758 1,304,324 1,353,558 1,390,941 1,435,782 1,482,296 1,530,529 1,581,105 Total Water System Costs 20,757,039 19,847,502 20,950,293 20,542,299 21,012,205 21,226,568 20,013,001 20,175,900 19,910,933 20,283,887 Water Cost Classification: POTABLE WATER Base 62.66%12,249,646 11,647,581 12,296,731 12,053,899 12,317,479 12,428,368 11,639,890 11,712,813 11,516,572 11,718,564 Max Day/Extra Capacity 31.33%6,124,823 5,823,791 6,148,366 6,026,949 6,158,739 6,214,184 5,819,945 5,856,406 5,758,286 5,859,282 Customer Billing 6.01%1,175,918 1,118,122 1,180,438 1,157,127 1,182,430 1,193,075 1,117,384 1,124,384 1,105,546 1,124,936 Sub-Total 100.00%19,550,388 18,589,494 19,625,535 19,237,975 19,658,648 19,835,627 18,577,218 18,693,603 18,380,404 18,702,781 Less Non-Rate Revenues Base 62.66%2,111,239 2,128,210 2,139,823 2,147,655 2,155,488 2,163,320 2,171,152 2,178,985 2,186,817 2,194,649 Max Day/Extra Capacity 31.33%1,055,620 1,064,105 1,069,912 1,073,828 1,077,744 1,081,660 1,085,576 1,089,492 1,093,408 1,097,325 Customer Billing 6.01%202,671 204,300 205,415 206,166 206,918 207,670 208,422 209,174 209,926 210,678 Sub-Total 100.00%3,369,530 3,396,614 3,415,149 3,427,650 3,440,150 3,452,650 3,465,151 3,477,651 3,490,151 3,502,652 Net Water Cost Classification Base 10,138,407 9,519,372 10,156,908 9,906,243 10,161,991 10,265,048 9,468,737 9,533,828 9,329,755 9,523,914 Max Day/Extra Capacity 5,069,203 4,759,686 5,078,454 4,953,122 5,080,996 5,132,524 4,734,369 4,766,914 4,664,877 4,761,957 Customer Billing 973,247 913,822 975,023 950,961 975,511 985,404 908,962 915,210 895,620 914,258 Total 16,180,858 15,192,880 16,210,386 15,810,325 16,218,498 16,382,976 15,112,068 15,215,952 14,890,252 15,200,130 TOWN OF ORO VALLEY AZ WATER COST OF SERVICE MODEL Intellectual Property of Economists.com, LLC / Willdan Group Inc. - Not to be used without express written permission 46 Date: 2/18/2022 2022 02 18 Oro Valley AZ Rate Model Presentation Version Forecast W7 10 Year Forecast 2022 - 2031 Test Year Forecast 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 Forecast W 7.0 -- Customer and Volume Totals Scenario:2022 02 18 -- Equal Percent Adjustments WATER VOLUMES Customer Class Units -- Base Annual Usage W1 Residential & Irrigation 5/8"1,444,476,233 1,464,689,421 1,479,675,060 1,489,781,654 1,499,888,248 1,509,994,842 1,520,101,436 1,530,208,030 1,540,314,624 1,550,421,218 W2 Residential & Irrigation 3/4"188,922,762 191,566,441 193,526,410 194,848,249 196,170,089 197,491,928 198,813,767 200,135,607 201,457,446 202,779,286 W3 Residential & Irrigation 1"152,687,088 154,823,705 156,407,749 157,476,057 158,544,366 159,612,675 160,680,983 161,749,292 162,817,600 163,885,909 W4 Residential & Irrigation 1.5"38,938,765 39,483,652 39,887,620 40,160,064 40,432,507 40,704,951 40,977,395 41,249,838 41,522,282 41,794,725 W5 Residential & Irrigation 2"93,165,025 94,468,724 95,435,259 96,087,109 96,738,958 97,390,808 98,042,657 98,694,507 99,346,356 99,998,206 W6 Residential & Irrigation 3"16,881,063 17,117,287 17,292,418 17,410,530 17,528,642 17,646,754 17,764,867 17,882,979 18,001,091 18,119,203 W7 Residential & Irrigation 4"50,041,170 50,741,418 51,260,567 51,610,691 51,960,815 52,310,939 52,661,063 53,011,187 53,361,311 53,711,435 W8 Commercial, Turf & Multifamily 327,014,495 329,329,642 329,329,642 329,329,642 329,329,642 329,329,642 329,329,642 329,329,642 329,329,642 329,329,642 W9 Construction 38,337,280 38,337,280 38,337,280 38,337,280 38,337,280 38,337,280 38,337,280 38,337,280 38,337,280 38,337,280 Total Potable 2,350,463,880 2,380,557,569 2,401,152,005 2,415,041,276 2,428,930,547 2,442,819,819 2,456,709,090 2,470,598,361 2,484,487,632 2,498,376,903 W10 Reclaimed Water 593,856,096 593,856,096 593,856,096 593,856,096 593,856,096 593,856,096 593,856,096 593,856,096 593,856,096 593,856,096 Total System 2,944,319,976 2,974,413,665 2,995,008,101 3,008,897,372 3,022,786,643 3,036,675,915 3,050,565,186 3,064,454,457 3,078,343,728 3,092,232,999 Percent of Total W1 Residential & Irrigation 5/8"61.45%61.53%61.62%61.69%61.75%61.81%61.88%61.94%62.00%62.06% W2 Residential & Irrigation 3/4"8.04%8.05%8.06%8.07%8.08%8.08%8.09%8.10%8.11%8.12% W3 Residential & Irrigation 1"6.50%6.50%6.51%6.52%6.53%6.53%6.54%6.55%6.55%6.56% W4 Residential & Irrigation 1.5"1.66%1.66%1.66%1.66%1.66%1.67%1.67%1.67%1.67%1.67% W5 Residential & Irrigation 2"3.96%3.97%3.97%3.98%3.98%3.99%3.99%3.99%4.00%4.00% W6 Residential & Irrigation 3"0.72%0.72%0.72%0.72%0.72%0.72%0.72%0.72%0.72%0.73% W7 Residential & Irrigation 4"2.13%2.13%2.13%2.14%2.14%2.14%2.14%2.15%2.15%2.15% W8 Commercial, Turf & Multifamily 13.91%13.83%13.72%13.64%13.56%13.48%13.41%13.33%13.26%13.18% W9 Construction 1.63%1.61%1.60%1.59%1.58%1.57%1.56%1.55%1.54%1.53% Total Potable Water 100.00%100.00%100.00%100.00%100.00%100.00%100.00%100.00%100.00%100.00% W10 Reclaimed Water na na na na na na na na na na Net Annual Volume after Minimum: W1 Residential & Irrigation 5/8"1,444,476,233 1,464,689,421 1,479,675,060 1,489,781,654 1,499,888,248 1,509,994,842 1,520,101,436 1,530,208,030 1,540,314,624 1,550,421,218 W2 Residential & Irrigation 3/4"188,922,762 191,566,441 193,526,410 194,848,249 196,170,089 197,491,928 198,813,767 200,135,607 201,457,446 202,779,286 W3 Residential & Irrigation 1"152,687,088 154,823,705 156,407,749 157,476,057 158,544,366 159,612,675 160,680,983 161,749,292 162,817,600 163,885,909 W4 Residential & Irrigation 1.5"38,938,765 39,483,652 39,887,620 40,160,064 40,432,507 40,704,951 40,977,395 41,249,838 41,522,282 41,794,725 W5 Residential & Irrigation 2"93,165,025 94,468,724 95,435,259 96,087,109 96,738,958 97,390,808 98,042,657 98,694,507 99,346,356 99,998,206 W6 Residential & Irrigation 3"16,881,063 17,117,287 17,292,418 17,410,530 17,528,642 17,646,754 17,764,867 17,882,979 18,001,091 18,119,203 W7 Residential & Irrigation 4"50,041,170 50,741,418 51,260,567 51,610,691 51,960,815 52,310,939 52,661,063 53,011,187 53,361,311 53,711,435 W8 Commercial, Turf & Multifamily 327,014,495 329,329,642 329,329,642 329,329,642 329,329,642 329,329,642 329,329,642 329,329,642 329,329,642 329,329,642 W9 Construction 38,337,280 38,337,280 38,337,280 38,337,280 38,337,280 38,337,280 38,337,280 38,337,280 38,337,280 38,337,280 Total Potable Water 2,350,463,880 2,380,557,569 2,401,152,005 2,415,041,276 2,428,930,547 2,442,819,819 2,456,709,090 2,470,598,361 2,484,487,632 2,498,376,903 W10 Reclaimed Water 593,856,096 593,856,096 593,856,096 593,856,096 593,856,096 593,856,096 593,856,096 593,856,096 593,856,096 593,856,096 Total System 2,944,319,976 2,974,413,665 2,995,008,101 3,008,897,372 3,022,786,643 3,036,675,915 3,050,565,186 3,064,454,457 3,078,343,728 3,092,232,999 TOWN OF ORO VALLEY AZ WATER COST OF SERVICE MODEL Intellectual Property of Economists.com, LLC / Willdan Group Inc. - Not to be used without express written permission 47 Date: 2/18/2022 2022 02 18 Oro Valley AZ Rate Model Presentation Version Forecast W7 10 Year Forecast 2022 - 2031 Test Year Forecast 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 Forecast W 7.0 -- Customer and Volume Totals Scenario:2022 02 18 -- Equal Percent Adjustments TOWN OF ORO VALLEY AZ WATER COST OF SERVICE MODEL Customer Class Units -- Base Daily Average W1 Residential & Irrigation 5/8"3,957,469 4,012,848 4,053,904 4,081,594 4,109,283 4,136,972 4,164,661 4,192,351 4,220,040 4,247,729 W2 Residential & Irrigation 3/4"517,596.61 524,840 530,209 533,831 537,452 541,074 544,695 548,317 551,938 555,560 W3 Residential & Irrigation 1"418,321 424,175 428,514 431,441 434,368 437,295 440,222 443,149 446,076 449,002 W4 Residential & Irrigation 1.5"106,682 108,174 109,281 110,028 110,774 111,520 112,267 113,013 113,760 114,506 W5 Residential & Irrigation 2"255,247 258,818 261,466 263,252 265,038 266,824 268,610 270,396 272,182 273,968 W6 Residential & Irrigation 3"46,249 46,897 47,376 47,700 48,024 48,347 48,671 48,994 49,318 49,642 W7 Residential & Irrigation 4"137,099 139,018 140,440 141,399 142,358 143,318 144,277 145,236 146,195 147,155 W8 Commercial, Turf & Multifamily 895,930 902,273 902,273 902,273 902,273 902,273 902,273 902,273 902,273 902,273 W9 Construction 105,034 105,034 105,034 105,034 105,034 105,034 105,034 105,034 105,034 105,034 Total Potable Water 6,439,627 6,522,076 6,578,499 6,616,551 6,654,604 6,692,657 6,730,710 6,768,763 6,806,815 6,844,868 W10 Reclaimed Water 1,627,003 1,627,003 1,627,003 1,627,003 1,627,003 1,627,003 1,627,003 1,627,003 1,627,003 1,627,003 Total System 8,066,630 8,149,079 8,205,502 8,243,554 8,281,607 8,319,660 8,357,713 8,395,766 8,433,818 8,471,871 Customer Class Units -- Capacity Factor W1 Residential & Irrigation 5/8"130 130 130 130 130 130 130 130 130 130 W2 Residential & Irrigation 3/4"131 131 131 131 131 131 131 131 131 131 W3 Residential & Irrigation 1"138 138 138 138 138 138 138 138 138 138 W4 Residential & Irrigation 1.5"168 168 168 168 168 168 168 168 168 168 W5 Residential & Irrigation 2"159 159 159 159 159 159 159 159 159 159 W6 Residential & Irrigation 3"194 194 194 194 194 194 194 194 194 194 W7 Residential & Irrigation 4"162 162 162 162 162 162 162 162 162 162 W8 Commercial, Turf & Multifamily 109 109 109 109 109 109 109 109 109 109 W9 Construction 96 96 96 96 96 96 96 96 96 96 W10 Reclaimed Water 177 177 177 177 177 177 177 177 177 177 Intellectual Property of Economists.com, LLC / Willdan Group Inc. - Not to be used without express written permission 48 Date: 2/18/2022 2022 02 18 Oro Valley AZ Rate Model Presentation Version Forecast W7 10 Year Forecast 2022 - 2031 Test Year Forecast 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 Forecast W 7.0 -- Customer and Volume Totals Scenario:2022 02 18 -- Equal Percent Adjustments TOWN OF ORO VALLEY AZ WATER COST OF SERVICE MODEL Customer Class Units -- Total Capacity W1 Residential & Irrigation 5/8"5,126,296 5,198,030 5,251,213 5,287,080 5,322,947 5,358,815 5,394,682 5,430,549 5,466,416 5,502,284 W2 Residential & Irrigation 3/4"677,963 687,450 694,484 699,227 703,971 708,714 713,458 718,201 722,945 727,688 W3 Residential & Irrigation 1"575,342 583,393 589,361 593,387 597,412 601,438 605,463 609,489 613,514 617,540 W4 Residential & Irrigation 1.5"179,342 181,852 183,713 184,967 186,222 187,477 188,732 189,987 191,242 192,496 W5 Residential & Irrigation 2"405,633 411,309 415,517 418,355 421,193 424,032 426,870 429,708 432,546 435,384 W6 Residential & Irrigation 3"89,527 90,779 91,708 92,334 92,961 93,587 94,214 94,840 95,466 96,093 W7 Residential & Irrigation 4"222,380 225,492 227,799 229,355 230,911 232,467 234,023 235,578 237,134 238,690 W8 Commercial, Turf & Multifamily 980,096 987,034 987,034 987,034 987,034 987,034 987,034 987,034 987,034 987,034 W9 Construction 101,096 101,096 101,096 101,096 101,096 101,096 101,096 101,096 101,096 101,096 Total Portable Water 8,357,674 8,466,435 8,541,925 8,592,836 8,643,748 8,694,659 8,745,571 8,796,482 8,847,394 8,898,305 W10 Reclaimed Water 2,880,427 2,880,427 2,880,427 2,880,427 2,880,427 2,880,427 2,880,427 2,880,427 2,880,427 2,880,427 Total System 11,238,101 11,346,863 11,422,352 11,473,264 11,524,175 11,575,087 11,625,998 11,676,910 11,727,821 11,778,733 Customer Class Units -- Extra Capacity W1 Residential & Irrigation 5/8"1,168,827 1,185,183 1,197,309 1,205,486 1,213,664 1,221,842 1,230,020 1,238,198 1,246,376 1,254,554 W2 Residential & Irrigation 3/4"160,366 162,611 164,274 165,396 166,518 167,640 168,762 169,884 171,006 172,128 W3 Residential & Irrigation 1"157,021 159,218 160,847 161,946 163,044 164,143 165,242 166,340 167,439 168,537 W4 Residential & Irrigation 1.5"72,661 73,678 74,432 74,940 75,448 75,957 76,465 76,973 77,482 77,990 W5 Residential & Irrigation 2"150,386 152,491 154,051 155,103 156,155 157,207 158,260 159,312 160,364 161,416 W6 Residential & Irrigation 3"43,277 43,883 44,332 44,634 44,937 45,240 45,543 45,846 46,148 46,451 W7 Residential & Irrigation 4"85,281 86,474 87,359 87,956 88,552 89,149 89,746 90,342 90,939 91,536 W8 Commercial, Turf & Multifamily 84,165 84,761 84,761 84,761 84,761 84,761 84,761 84,761 84,761 84,761 W9 Construction (3,938) (3,938) (3,938) (3,938) (3,938) (3,938) (3,938) (3,938) (3,938) (3,938) Total Potable Water 1,918,047 1,944,360 1,963,426 1,976,285 1,989,144 2,002,002 2,014,861 2,027,720 2,040,578 2,053,437 W10 Reclaimed Water 1,253,424 1,253,424 1,253,424 1,253,424 1,253,424 1,253,424 1,253,424 1,253,424 1,253,424 1,253,424 Total System 3,171,471 3,197,784 3,216,851 3,229,709 3,242,568 3,255,427 3,268,285 3,281,144 3,294,003 3,306,862 Percent of Total W1 Residential & Irrigation 5/8"60.94%60.95%60.98%61.00%61.01%61.03%61.05%61.06%61.08%61.10% W2 Residential & Irrigation 3/4"8.36%8.36%8.37%8.37%8.37%8.37%8.38%8.38%8.38%8.38% W3 Residential & Irrigation 1"8.19%8.19%8.19%8.19%8.20%8.20%8.20%8.20%8.21%8.21% W4 Residential & Irrigation 1.5"3.79%3.79%3.79%3.79%3.79%3.79%3.80%3.80%3.80%3.80% W5 Residential & Irrigation 2"7.84%7.84%7.85%7.85%7.85%7.85%7.85%7.86%7.86%7.86% W6 Residential & Irrigation 3"2.26%2.26%2.26%2.26%2.26%2.26%2.26%2.26%2.26%2.26% W7 Residential & Irrigation 4"4.45%4.45%4.45%4.45%4.45%4.45%4.45%4.46%4.46%4.46% W8 Commercial, Turf & Multifamily 4.39%4.36%4.32%4.29%4.26%4.23%4.21%4.18%4.15%4.13% W9 Construction -0.21%-0.20%-0.20%-0.20%-0.20%-0.20%-0.20%-0.19%-0.19%-0.19% Total Potable Water 100.00%100.00%100.00%100.00%100.00%100.00%100.00%100.00%100.00%100.00% W10 Reclaimed Water na na na na na na na na na na Intellectual Property of Economists.com, LLC / Willdan Group Inc. - Not to be used without express written permission 49 Date: 2/18/2022 2022 02 18 Oro Valley AZ Rate Model Presentation Version Forecast W7 10 Year Forecast 2022 - 2031 Test Year Forecast 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 Forecast W 7.0 -- Customer and Volume Totals Scenario:2022 02 18 -- Equal Percent Adjustments TOWN OF ORO VALLEY AZ WATER COST OF SERVICE MODEL Customer Class Units -- Annual Bills Total Bills W1 Residential & Irrigation 5/8"218,657 221,716 223,985 225,515 227,045 228,575 230,104 231,634 233,164 234,694 W2 Residential & Irrigation 3/4"21,252 21,550 21,770 21,919 22,068 22,216 22,365 22,514 22,662 22,811 W3 Residential & Irrigation 1"7,157 7,257 7,332 7,382 7,432 7,482 7,532 7,582 7,632 7,682 W4 Residential & Irrigation 1.5"646 655 662 666 671 676 680 685 689 694 W5 Residential & Irrigation 2"890 903 912 918 924 930 937 943 949 955 W6 Residential & Irrigation 3"24 25 25 25 25 25 26 26 26 26 W7 Residential & Irrigation 4"61 62 62 63 63 64 64 65 65 65 W8 Commercial, Turf & Multifamily 6,780 6,828 6,876 6,924 6,972 7,020 7,068 7,116 7,164 7,212 W9 Construction 360 360 360 360 360 360 360 360 360 360 W10 Reclaimed Water 144 144 144 144 144 144 144 144 144 144 Total System 255,972 259,500 262,128 263,916 265,704 267,492 269,280 271,068 272,856 274,644 Percentage of Total W1 Residential & Irrigation 5/8"85.42%85.44%85.45%85.45%85.45%85.45%85.45%85.45%85.45%85.45% W2 Residential & Irrigation 3/4"8.30%8.30%8.31%8.31%8.31%8.31%8.31%8.31%8.31%8.31% W3 Residential & Irrigation 1"2.80%2.80%2.80%2.80%2.80%2.80%2.80%2.80%2.80%2.80% W4 Residential & Irrigation 1.5"0.25%0.25%0.25%0.25%0.25%0.25%0.25%0.25%0.25%0.25% W5 Residential & Irrigation 2"0.35%0.35%0.35%0.35%0.35%0.35%0.35%0.35%0.35%0.35% W6 Residential & Irrigation 3"0.01%0.01%0.01%0.01%0.01%0.01%0.01%0.01%0.01%0.01% W7 Residential & Irrigation 4"0.02%0.02%0.02%0.02%0.02%0.02%0.02%0.02%0.02%0.02% W8 Commercial, Turf & Multifamily 2.65%2.63%2.62%2.62%2.62%2.62%2.62%2.63%2.63%2.63% W9 Construction 0.14%0.14%0.14%0.14%0.14%0.13%0.13%0.13%0.13%0.13% W10 Reclaimed Water 0.06%0.06%0.05%0.05%0.05%0.05%0.05%0.05%0.05%0.05% Total System 100.00%100.00%100.00%100.00%100.00%100.00%100.00%100.00%100.00%100.00% Total Customers W1 Residential & Irrigation 5/8"18,221 18,476 18,665 18,793 18,920 19,048 19,175 19,303 19,430 19,558 W2 Residential & Irrigation 3/4"1,771 1,796 1,814 1,827 1,839 1,851 1,864 1,876 1,889 1,901 W3 Residential & Irrigation 1"596 605 611 615 619 623 628 632 636 640 W4 Residential & Irrigation 1.5"54 55 55 56 56 56 57 57 57 58 W5 Residential & Irrigation 2"74 75 76 77 77 78 78 79 79 80 W6 Residential & Irrigation 3"2 2 2 2 2 2 2 2 2 2 W7 Residential & Irrigation 4"5 5 5 5 5 5 5 5 5 5 W8 Commercial, Turf & Multifamily 565 569 573 577 581 585 589 593 597 601 W9 Construction 30 30 30 30 30 30 30 30 30 30 W10 Reclaimed Water 12 12 12 12 12 12 12 12 12 12 Total System 21,331 21,625 21,844 21,993 22,142 22,291 22,440 22,589 22,738 22,887 Intellectual Property of Economists.com, LLC / Willdan Group Inc. - Not to be used without express written permission 50 Date: 2/18/2022 2022 02 18 Oro Valley AZ Rate Model Presentation Version Forecast W7 10 Year Forecast 2022 - 2031 Test Year Forecast 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 Forecast W 7.0 -- Customer and Volume Totals Scenario:2022 02 18 -- Equal Percent Adjustments TOWN OF ORO VALLEY AZ WATER COST OF SERVICE MODEL NEW Customers W1 Residential & Irrigation 5/8"255 189 127 127 127 127 127 127 127 W2 Residential & Irrigation 3/4"25 18 12 12 12 12 12 12 12 W3 Residential & Irrigation 1"8 6 4 4 4 4 4 4 4 W4 Residential & Irrigation 1.5"1 1 0 0 0 0 0 0 0 W5 Residential & Irrigation 2"1 1 1 1 1 1 1 1 1 W6 Residential & Irrigation 3"0 0 0 0 0 0 0 0 0 W7 Residential & Irrigation 4"0 0 0 0 0 0 0 0 0 W8 Commercial, Turf & Multifamily 4 4 4 4 4 4 4 4 4 W9 Construction - - - - - - - - - W10 Reclaimed Water - - - - - - - - - Total System 294 219 149 149 149 149 149 149 149 Monthly Volume Per Meter W1 Residential & Irrigation 5/8"6,606 6,606 6,606 6,606 6,606 6,606 6,606 6,606 6,606 6,606 W2 Residential & Irrigation 3/4"8,889 8,889 8,889 8,889 8,889 8,889 8,889 8,889 8,889 8,889 W3 Residential & Irrigation 1"21,333 21,333 21,333 21,333 21,333 21,333 21,333 21,333 21,333 21,333 W4 Residential & Irrigation 1.5"60,255 60,255 60,255 60,255 60,255 60,255 60,255 60,255 60,255 60,255 W5 Residential & Irrigation 2"104,670 104,670 104,670 104,670 104,670 104,670 104,670 104,670 104,670 104,670 W6 Residential & Irrigation 3"692,245 692,245 692,245 692,245 692,245 692,245 692,245 692,245 692,245 692,245 W7 Residential & Irrigation 4"820,819 820,819 820,819 820,819 820,819 820,819 820,819 820,819 820,819 820,819 W8 Commercial, Turf & Multifamily 48,232 48,232 47,896 47,563 47,236 46,913 46,594 46,280 45,970 45,664 W9 Construction 106,492 106,492 106,492 106,492 106,492 106,492 106,492 106,492 106,492 106,492 W10 Reclaimed Water 4,124,001 4,124,001 4,124,001 4,124,001 4,124,001 4,124,001 4,124,001 4,124,001 4,124,001 4,124,001 Total System 11,503 11,462 11,426 11,401 11,377 11,352 11,329 11,305 11,282 11,259 Intellectual Property of Economists.com, LLC / Willdan Group Inc. - Not to be used without express written permission 51 Date: 2/18/2022 2022 02 18 Oro Valley AZ Rate Model Presentation Version Forecast W8 10 Year Forecast 2022 - 2031 Test Year Forecast 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 Forecast W 8.0 -- WATER Cost of Service by Customer Class Scenario:2022 02 18 -- Equal Percent Adjustments Total Cost of Service Base 10,138,407$ 9,519,372$ 10,156,908$ 9,906,243$ 10,161,991$ 10,265,048$ 9,468,737$ 9,533,828$ 9,329,755$ 9,523,914$ Max Day/Extra Capacity 5,069,203 4,759,686 5,078,454 4,953,122 5,080,996 5,132,524 4,734,369 4,766,914 4,664,877 4,761,957 Sub-Total Non Customer 15,207,610 14,279,058 15,235,363 14,859,365 15,242,987 15,397,572 14,203,106 14,300,742 13,994,632 14,285,871 Customer 973,247 913,822 975,023 950,961 975,511 985,404 908,962 915,210 895,620 914,258 Total Potable Water Cost of Service 16,180,858 15,192,880 16,210,386 15,810,325 16,218,498 16,382,976 15,112,068 15,215,952 14,890,252 15,200,130 Reclaimed Water Cost of Service 1,206,652 1,258,008 1,324,758 1,304,324 1,353,558 1,390,941 1,435,782 1,482,296 1,530,529 1,581,105 Total Cost of Service/Net Revenue Requirement 17,387,509 16,450,888 17,535,144 17,114,650 17,572,056 17,773,918 16,547,850 16,698,249 16,420,782 16,781,235 TRUE TRUE TRUE TRUE TRUE TRUE TRUE TRUE TRUE TRUE Customer Class Allocation Factors: Base Residential & Irrigation 5/8"61.45%61.53%61.62%61.69%61.75%61.81%61.88%61.94%62.00%62.06% Residential & Irrigation 3/4"8.04%8.05%8.06%8.07%8.08%8.08%8.09%8.10%8.11%8.12% Residential & Irrigation 1"6.50%6.50%6.51%6.52%6.53%6.53%6.54%6.55%6.55%6.56% Residential & Irrigation 1.5"1.66%1.66%1.66%1.66%1.66%1.67%1.67%1.67%1.67%1.67% Residential & Irrigation 2"3.96%3.97%3.97%3.98%3.98%3.99%3.99%3.99%4.00%4.00% Residential & Irrigation 3"0.72%0.72%0.72%0.72%0.72%0.72%0.72%0.72%0.72%0.73% Residential & Irrigation 4"2.13%2.13%2.13%2.14%2.14%2.14%2.14%2.15%2.15%2.15% Commercial, Turf & Multifamily 13.91%13.83%13.72%13.64%13.56%13.48%13.41%13.33%13.26%13.18% Construction 1.63%1.61%1.60%1.59%1.58%1.57%1.56%1.55%1.54%1.53% Toal Potable Water 100.00%100.00%100.00%100.00%100.00%100.00%100.00%100.00%100.00%100.00% Reclaimed Water na na na na na na na na na na Max Day/Extra Capacity Residential & Irrigation 5/8"60.94%60.95%60.98%61.00%61.01%61.03%61.05%61.06%61.08%61.10% Residential & Irrigation 3/4"8.36%8.36%8.37%8.37%8.37%8.37%8.38%8.38%8.38%8.38% Residential & Irrigation 1"8.19%8.19%8.19%8.19%8.20%8.20%8.20%8.20%8.21%8.21% Residential & Irrigation 1.5"3.79%3.79%3.79%3.79%3.79%3.79%3.80%3.80%3.80%3.80% Residential & Irrigation 2"7.84%7.84%7.85%7.85%7.85%7.85%7.85%7.86%7.86%7.86% Residential & Irrigation 3"2.26%2.26%2.26%2.26%2.26%2.26%2.26%2.26%2.26%2.26% Residential & Irrigation 4"4.45%4.45%4.45%4.45%4.45%4.45%4.45%4.46%4.46%4.46% Commercial, Turf & Multifamily 4.39%4.36%4.32%4.29%4.26%4.23%4.21%4.18%4.15%4.13% Construction -0.21%-0.20%-0.20%-0.20%-0.20%-0.20%-0.20%-0.19%-0.19%-0.19% Toal Potable Water 100.00%100.00%100.00%100.00%100.00%100.00%100.00%100.00%100.00%100.00% Reclaimed Water na na na na na na na na na na TOWN OF ORO VALLEY AZ WATER COST OF SERVICE MODEL Intellectual Property of Economists.com, LLC / Willdan Group Inc. - Not to be used without express written permission 52 Date: 2/18/2022 2022 02 18 Oro Valley AZ Rate Model Presentation Version Forecast W8 10 Year Forecast 2022 - 2031 Test Year Forecast 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 Forecast W 8.0 -- WATER Cost of Service by Customer Class Scenario:2022 02 18 -- Equal Percent Adjustments TOWN OF ORO VALLEY AZ WATER COST OF SERVICE MODEL Customer Residential & Irrigation 5/8"85.42%85.44%85.45%85.45%85.45%85.45%85.45%85.45%85.45%85.45% Residential & Irrigation 3/4"8.30%8.30%8.31%8.31%8.31%8.31%8.31%8.31%8.31%8.31% Residential & Irrigation 1"2.80%2.80%2.80%2.80%2.80%2.80%2.80%2.80%2.80%2.80% Residential & Irrigation 1.5"0.25%0.25%0.25%0.25%0.25%0.25%0.25%0.25%0.25%0.25% Residential & Irrigation 2"0.35%0.35%0.35%0.35%0.35%0.35%0.35%0.35%0.35%0.35% Residential & Irrigation 3"0.01%0.01%0.01%0.01%0.01%0.01%0.01%0.01%0.01%0.01% Residential & Irrigation 4"0.02%0.02%0.02%0.02%0.02%0.02%0.02%0.02%0.02%0.02% Commercial, Turf & Multifamily 2.65%2.63%2.62%2.62%2.62%2.62%2.62%2.63%2.63%2.63% Construction 0.14%0.14%0.14%0.14%0.14%0.13%0.13%0.13%0.13%0.13% Reclaimed Water 0.06%0.06%0.05%0.05%0.05%0.05%0.05%0.05%0.05%0.05% Intellectual Property of Economists.com, LLC / Willdan Group Inc. - Not to be used without express written permission 53 Date: 2/18/2022 2022 02 18 Oro Valley AZ Rate Model Presentation Version Forecast W8 10 Year Forecast 2022 - 2031 Test Year Forecast 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 Forecast W 8.0 -- WATER Cost of Service by Customer Class Scenario:2022 02 18 -- Equal Percent Adjustments TOWN OF ORO VALLEY AZ WATER COST OF SERVICE MODEL Total Cost by Customer Class Residential & Irrigation 5/8" Base 6,230,552$ 5,856,999$ 6,259,047$ 6,110,926$ 6,275,128$ 6,345,196$ 5,858,830$ 5,904,942$ 5,784,194$ 5,910,269$ Max Day/Extra Capacity 3,089,091 2,901,262 3,096,870 3,021,286 3,100,140 3,132,432 2,890,209 2,910,848 2,849,286 2,909,333 Customer 831,368 780,769 833,145 812,591 833,577 842,038 776,723 782,070 765,336 781,270 Total Cost of Service 10,151,012$ 9,539,029$ 10,189,062$ 9,944,803$ 10,208,845$ 10,319,665$ 9,525,763$ 9,597,860$ 9,398,816$ 9,600,872$ Calculation of Customer Costs/Bill Total Customer Costs 831,368$ 780,769$ 833,145$ 812,591$ 833,577$ 842,038$ 776,723$ 782,070$ 765,336$ 781,270$ Total Bills 218,657 221,716 223,985 225,515 227,045 228,575 230,104 231,634 233,164 234,694 Customer Cost/Bill 3.80$ 3.52$ 3.72$ 3.60$ 3.67$ 3.68$ 3.38$ 3.38$ 3.28$ 3.33$ Calculation of Non-Customer Charge Total Non-Customer Costs 9,319,643$ 8,758,261$ 9,355,918$ 9,132,212$ 9,375,268$ 9,477,627$ 8,749,039$ 8,815,791$ 8,633,480$ 8,819,602$ Total Volume 1,444,476,233 1,464,689,421 1,479,675,060 1,489,781,654 1,499,888,248 1,509,994,842 1,520,101,436 1,530,208,030 1,540,314,624 1,550,421,218 Total Non-Customer Cost 6.45$ 5.98$ 6.32$ 6.13$ 6.25$ 6.28$ 5.76$ 5.76$ 5.61$ 5.69$ Calculation of Minimum Charge Monthly Minimum Volume - - - - - - - - - - Non-Customer Charge/1,000 Gallons 6.45$ 5.98$ 6.32$ 6.13$ 6.25$ 6.28$ 5.76$ 5.76$ 5.61$ 5.69$ Monthly Non-Customer Charge -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Monthly Customer Charge 3.80$ 3.52$ 3.72$ 3.60$ 3.67$ 3.68$ 3.38$ 3.38$ 3.28$ 3.33$ Monthly Minimum Charge 3.80$ 3.52$ 3.72$ 3.60$ 3.67$ 3.68$ 3.38$ 3.38$ 3.28$ 3.33$ Calculation of Volumetric Charge Monthly Minimum Charge 3.80$ 3.52$ 3.72$ 3.60$ 3.67$ 3.68$ 3.38$ 3.38$ 3.28$ 3.33$ Total Bills 218,657 221,716 223,985 225,515 227,045 228,575 230,104 231,634 233,164 234,694 Revenue from Minimum Charge 831,368$ 780,769$ 833,145$ 812,591$ 833,577$ 842,038$ 776,723$ 782,070$ 765,336$ 781,270$ Total Cost of Service 10,151,012$ 9,539,029$ 10,189,062$ 9,944,803$ 10,208,845$ 10,319,665$ 9,525,763$ 9,597,860$ 9,398,816$ 9,600,872$ Net Cost of Service 9,319,643$ 8,758,261$ 9,355,918$ 9,132,212$ 9,375,268$ 9,477,627$ 8,749,039$ 8,815,791$ 8,633,480$ 8,819,602$ Test Year Annual Volume after Minimum 1,444,476,233 1,464,689,421 1,479,675,060 1,489,781,654 1,499,888,248 1,509,994,842 1,520,101,436 1,530,208,030 1,540,314,624 1,550,421,218 Net Volumetric Charge 6.45$ 5.98$ 6.32$ 6.13$ 6.25$ 6.28$ 5.76$ 5.76$ 5.61$ 5.69$ Intellectual Property of Economists.com, LLC / Willdan Group Inc. - Not to be used without express written permission 54 Date: 2/18/2022 2022 02 18 Oro Valley AZ Rate Model Presentation Version Forecast W8 10 Year Forecast 2022 - 2031 Test Year Forecast 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 Forecast W 8.0 -- WATER Cost of Service by Customer Class Scenario:2022 02 18 -- Equal Percent Adjustments TOWN OF ORO VALLEY AZ WATER COST OF SERVICE MODEL Residential & Irrigation 3/4" Base 814,893$ 766,036$ 818,620$ 799,247$ 820,723$ 829,887$ 766,275$ 772,306$ 756,514$ 773,003$ Max Day/Extra Capacity 423,832 398,062 424,900 414,529 425,348 429,779 396,545 399,377 390,930 399,169 Customer 80,805 75,887 80,978 78,980 81,020 81,842 75,494 76,013 74,387 75,936 Total Cost of Service 1,319,530$ 1,239,984$ 1,324,497$ 1,292,756$ 1,327,091$ 1,341,508$ 1,238,314$ 1,247,696$ 1,221,831$ 1,248,107$ Calculation of Customer Costs/Bill Total Customer Costs 80,805$ 75,887$ 80,978$ 78,980$ 81,020$ 81,842$ 75,494$ 76,013$ 74,387$ 75,936$ Total Bills 21,252 21,550 21,770 21,919 22,068 22,216 22,365 22,514 22,662 22,811 Customer Cost/Bill 3.80$ 3.52$ 3.72$ 3.60$ 3.67$ 3.68$ 3.38$ 3.38$ 3.28$ 3.33$ Calculation of Non-Customer Charge Total Non-Customer Costs 1,238,725$ 1,164,097$ 1,243,519$ 1,213,776$ 1,246,071$ 1,259,666$ 1,162,820$ 1,171,683$ 1,147,444$ 1,172,172$ Total Volume 188,922,762 191,566,441 193,526,410 194,848,249 196,170,089 197,491,928 198,813,767 200,135,607 201,457,446 202,779,286 Total Non-Customer Cost 6.56$ 6.08$ 6.43$ 6.23$ 6.35$ 6.38$ 5.85$ 5.85$ 5.70$ 5.78$ Calculation of Minimum Charge Monthly Minimum Volume - - - - - - - - - - Non-Customer Charge/1,000 Gallons 6.56$ 6.08$ 6.43$ 6.23$ 6.35$ 6.38$ 5.85$ 5.85$ 5.70$ 5.78$ Monthly Non-Customer Charge -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Monthly Customer Charge 3.80$ 3.52$ 3.72$ 3.60$ 3.67$ 3.68$ 3.38$ 3.38$ 3.28$ 3.33$ Monthly Minimum Charge 3.80$ 3.52$ 3.72$ 3.60$ 3.67$ 3.68$ 3.38$ 3.38$ 3.28$ 3.33$ Calculation of Volumetric Charge Monthly Minimum Charge 3.80$ 3.52$ 3.72$ 3.60$ 3.67$ 3.68$ 3.38$ 3.38$ 3.28$ 3.33$ Total Bills 21,252 21,550 21,770 21,919 22,068 22,216 22,365 22,514 22,662 22,811 Revenue from Minimum Charge 80,805$ 75,887$ 80,978$ 78,980$ 81,020$ 81,842$ 75,494$ 76,013$ 74,387$ 75,936$ Total Cost of Service 1,319,530$ 1,239,984$ 1,324,497$ 1,292,756$ 1,327,091$ 1,341,508$ 1,238,314$ 1,247,696$ 1,221,831$ 1,248,107$ Net Cost of Service 1,238,725$ 1,164,097$ 1,243,519$ 1,213,776$ 1,246,071$ 1,259,666$ 1,162,820$ 1,171,683$ 1,147,444$ 1,172,172$ Test Year Annual Volume after Minimum 188,922,762 191,566,441 193,526,410 194,848,249 196,170,089 197,491,928 198,813,767 200,135,607 201,457,446 202,779,286 Net Volumetric Charge 6.56$ 6.08$ 6.43$ 6.23$ 6.35$ 6.38$ 5.85$ 5.85$ 5.70$ 5.78$ Intellectual Property of Economists.com, LLC / Willdan Group Inc. - Not to be used without express written permission 55 Date: 2/18/2022 2022 02 18 Oro Valley AZ Rate Model Presentation Version Forecast W8 10 Year Forecast 2022 - 2031 Test Year Forecast 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 Forecast W 8.0 -- WATER Cost of Service by Customer Class Scenario:2022 02 18 -- Equal Percent Adjustments TOWN OF ORO VALLEY AZ WATER COST OF SERVICE MODEL Residential & Irrigation 1" Base 658,595$ 619,109$ 661,607$ 645,950$ 663,307$ 670,713$ 619,302$ 624,177$ 611,413$ 624,740$ Max Day/Extra Capacity 414,990 389,757 416,035 405,881 416,474 420,813 388,272 391,045 382,775 390,841 Customer 27,213 25,557 27,271 26,598 27,285 27,562 25,424 25,599 25,052 25,573 Total Cost of Service 1,100,798$ 1,034,423$ 1,104,914$ 1,078,430$ 1,107,067$ 1,119,088$ 1,032,999$ 1,040,821$ 1,019,239$ 1,041,154$ Calculation of Customer Costs/Bill Total Customer Costs 27,213$ 25,557$ 27,271$ 26,598$ 27,285$ 27,562$ 25,424$ 25,599$ 25,052$ 25,573$ Total Bills 7,157 7,257 7,332 7,382 7,432 7,482 7,532 7,582 7,632 7,682 Customer Cost/Bill 3.80$ 3.52$ 3.72$ 3.60$ 3.67$ 3.68$ 3.38$ 3.38$ 3.28$ 3.33$ Calculation of Non-Customer Charge Total Non-Customer Costs 1,073,585$ 1,008,866$ 1,077,642$ 1,051,831$ 1,079,781$ 1,091,526$ 1,007,575$ 1,015,222$ 994,188$ 1,015,581$ Total Volume 152,687,088 154,823,705 156,407,749 157,476,057 158,544,366 159,612,675 160,680,983 161,749,292 162,817,600 163,885,909 Total Non-Customer Cost 7.03$ 6.52$ 6.89$ 6.68$ 6.81$ 6.84$ 6.27$ 6.28$ 6.11$ 6.20$ Calculation of Minimum Charge Monthly Minimum Volume - - - - - - - - - - Non-Customer Charge/1,000 Gallons 7.03$ 6.52$ 6.89$ 6.68$ 6.81$ 6.84$ 6.27$ 6.28$ 6.11$ 6.20$ Monthly Non-Customer Charge -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Monthly Customer Charge 3.80$ 3.52$ 3.72$ 3.60$ 3.67$ 3.68$ 3.38$ 3.38$ 3.28$ 3.33$ Monthly Minimum Charge 3.80$ 3.52$ 3.72$ 3.60$ 3.67$ 3.68$ 3.38$ 3.38$ 3.28$ 3.33$ Calculation of Volumetric Charge Monthly Minimum Charge 3.80$ 3.52$ 3.72$ 3.60$ 3.67$ 3.68$ 3.38$ 3.38$ 3.28$ 3.33$ Total Bills 7,157 7,257 7,332 7,382 7,432 7,482 7,532 7,582 7,632 7,682 Revenue from Minimum Charge 27,213$ 25,557$ 27,271$ 26,598$ 27,285$ 27,562$ 25,424$ 25,599$ 25,052$ 25,573$ Total Cost of Service 1,100,798$ 1,034,423$ 1,104,914$ 1,078,430$ 1,107,067$ 1,119,088$ 1,032,999$ 1,040,821$ 1,019,239$ 1,041,154$ Net Cost of Service 1,073,585$ 1,008,866$ 1,077,642$ 1,051,831$ 1,079,781$ 1,091,526$ 1,007,575$ 1,015,222$ 994,188$ 1,015,581$ Test Year Annual Volume after Minimum 152,687,088 154,823,705 156,407,749 157,476,057 158,544,366 159,612,675 160,680,983 161,749,292 162,817,600 163,885,909 Net Volumetric Charge 7.03$ 6.52$ 6.89$ 6.68$ 6.81$ 6.84$ 6.27$ 6.28$ 6.11$ 6.20$ Intellectual Property of Economists.com, LLC / Willdan Group Inc. - Not to be used without express written permission 56 Date: 2/18/2022 2022 02 18 Oro Valley AZ Rate Model Presentation Version Forecast W8 10 Year Forecast 2022 - 2031 Test Year Forecast 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 Forecast W 8.0 -- WATER Cost of Service by Customer Class Scenario:2022 02 18 -- Equal Percent Adjustments TOWN OF ORO VALLEY AZ WATER COST OF SERVICE MODEL Residential & Irrigation 1.5" Base 167,957$ 157,887$ 168,725$ 164,732$ 169,159$ 171,048$ 157,937$ 159,180$ 155,925$ 159,323$ Max Day/Extra Capacity 192,035 180,359 192,519 187,820 192,722 194,730 179,672 180,955 177,128 180,861 Customer 2,457 2,308 2,462 2,402 2,464 2,489 2,296 2,311 2,262 2,309 Total Cost of Service 362,450$ 340,554$ 363,707$ 354,954$ 364,345$ 368,266$ 339,904$ 342,446$ 335,314$ 342,493$ Calculation of Customer Costs/Bill Total Customer Costs 2,457$ 2,308$ 2,462$ 2,402$ 2,464$ 2,489$ 2,296$ 2,311$ 2,262$ 2,309$ Total Bills 646 655 662 666 671 676 680 685 689 694 Customer Cost/Bill 3.80$ 3.52$ 3.72$ 3.60$ 3.67$ 3.68$ 3.38$ 3.38$ 3.28$ 3.33$ Calculation of Non-Customer Charge Total Non-Customer Costs 359,993$ 338,246$ 361,244$ 352,553$ 361,881$ 365,777$ 337,608$ 340,135$ 333,052$ 340,184$ Total Volume 38,938,765 39,483,652 39,887,620 40,160,064 40,432,507 40,704,951 40,977,395 41,249,838 41,522,282 41,794,725 Total Non-Customer Cost 9.25$ 8.57$ 9.06$ 8.78$ 8.95$ 8.99$ 8.24$ 8.25$ 8.02$ 8.14$ Calculation of Minimum Charge Monthly Minimum Volume - - - - - - - - - - Non-Customer Charge/1,000 Gallons 9.25$ 8.57$ 9.06$ 8.78$ 8.95$ 8.99$ 8.24$ 8.25$ 8.02$ 8.14$ Monthly Non-Customer Charge -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Monthly Customer Charge 3.80$ 3.52$ 3.72$ 3.60$ 3.67$ 3.68$ 3.38$ 3.38$ 3.28$ 3.33$ Monthly Minimum Charge 3.80$ 3.52$ 3.72$ 3.60$ 3.67$ 3.68$ 3.38$ 3.38$ 3.28$ 3.33$ Calculation of Volumetric Charge Monthly Minimum Charge 3.80$ 3.52$ 3.72$ 3.60$ 3.67$ 3.68$ 3.38$ 3.38$ 3.28$ 3.33$ Total Bills 646 655 662 666 671 676 680 685 689 694 Revenue from Minimum Charge 2,457$ 2,308$ 2,462$ 2,402$ 2,464$ 2,489$ 2,296$ 2,311$ 2,262$ 2,309$ Total Cost of Service 362,450$ 340,554$ 363,707$ 354,954$ 364,345$ 368,266$ 339,904$ 342,446$ 335,314$ 342,493$ Net Cost of Service 359,993$ 338,246$ 361,244$ 352,553$ 361,881$ 365,777$ 337,608$ 340,135$ 333,052$ 340,184$ Test Year Annual Volume after Minimum 38,938,765 39,483,652 39,887,620 40,160,064 40,432,507 40,704,951 40,977,395 41,249,838 41,522,282 41,794,725 Net Volumetric Charge 9.25$ 8.57$ 9.06$ 8.78$ 8.95$ 8.99$ 8.24$ 8.25$ 8.02$ 8.14$ Intellectual Property of Economists.com, LLC / Willdan Group Inc. - Not to be used without express written permission 57 Date: 2/18/2022 2022 02 18 Oro Valley AZ Rate Model Presentation Version Forecast W8 10 Year Forecast 2022 - 2031 Test Year Forecast 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 Forecast W 8.0 -- WATER Cost of Service by Customer Class Scenario:2022 02 18 -- Equal Percent Adjustments TOWN OF ORO VALLEY AZ WATER COST OF SERVICE MODEL Residential & Irrigation 2" Base 401,855$ 377,761$ 403,693$ 394,139$ 404,730$ 409,249$ 377,880$ 380,854$ 373,066$ 381,197$ Max Day/Extra Capacity 397,456 373,289 398,457 388,732 398,877 403,032 371,867 374,522 366,601 374,327 Customer 3,384 3,178 3,391 3,308 3,393 3,428 3,162 3,184 3,115 3,180 Total Cost of Service 802,695$ 754,228$ 805,541$ 786,178$ 807,000$ 815,709$ 752,908$ 758,559$ 742,783$ 758,705$ Calculation of Customer Costs/Bill Total Customer Costs 3,384$ 3,178$ 3,391$ 3,308$ 3,393$ 3,428$ 3,162$ 3,184$ 3,115$ 3,180$ Total Bills 890 903 912 918 924 930 937 943 949 955 Customer Cost/Bill 3.80$ 3.52$ 3.72$ 3.60$ 3.67$ 3.68$ 3.38$ 3.38$ 3.28$ 3.33$ Calculation of Non-Customer Charge Total Non-Customer Costs 799,310$ 751,050$ 802,149$ 782,871$ 803,607$ 812,281$ 749,746$ 755,376$ 739,667$ 755,524$ Total Volume 93,165,025 94,468,724 95,435,259 96,087,109 96,738,958 97,390,808 98,042,657 98,694,507 99,346,356 99,998,206 Total Non-Customer Cost 8.58$ 7.95$ 8.41$ 8.15$ 8.31$ 8.34$ 7.65$ 7.65$ 7.45$ 7.56$ Calculation of Minimum Charge Monthly Minimum Volume - - - - - - - - - - Non-Customer Charge/1,000 Gallons 8.58$ 7.95$ 8.41$ 8.15$ 8.31$ 8.34$ 7.65$ 7.65$ 7.45$ 7.56$ Monthly Non-Customer Charge -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Monthly Customer Charge 3.80$ 3.52$ 3.72$ 3.60$ 3.67$ 3.68$ 3.38$ 3.38$ 3.28$ 3.33$ Monthly Minimum Charge 3.80$ 3.52$ 3.72$ 3.60$ 3.67$ 3.68$ 3.38$ 3.38$ 3.28$ 3.33$ Calculation of Volumetric Charge Monthly Minimum Charge 3.80$ 3.52$ 3.72$ 3.60$ 3.67$ 3.68$ 3.38$ 3.38$ 3.28$ 3.33$ Total Bills 890 903 912 918 924 930 937 943 949 955 Revenue from Minimum Charge 3,384$ 3,178$ 3,391$ 3,308$ 3,393$ 3,428$ 3,162$ 3,184$ 3,115$ 3,180$ Total Cost of Service 802,695$ 754,228$ 805,541$ 786,178$ 807,000$ 815,709$ 752,908$ 758,559$ 742,783$ 758,705$ Net Cost of Service 799,310$ 751,050$ 802,149$ 782,871$ 803,607$ 812,281$ 749,746$ 755,376$ 739,667$ 755,524$ Test Year Annual Volume after Minimum 93,165,025 94,468,724 95,435,259 96,087,109 96,738,958 97,390,808 98,042,657 98,694,507 99,346,356 99,998,206 Net Volumetric Charge 8.58$ 7.95$ 8.41$ 8.15$ 8.31$ 8.34$ 7.65$ 7.65$ 7.45$ 7.56$ Intellectual Property of Economists.com, LLC / Willdan Group Inc. - Not to be used without express written permission 58 Date: 2/18/2022 2022 02 18 Oro Valley AZ Rate Model Presentation Version Forecast W8 10 Year Forecast 2022 - 2031 Test Year Forecast 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 Forecast W 8.0 -- WATER Cost of Service by Customer Class Scenario:2022 02 18 -- Equal Percent Adjustments TOWN OF ORO VALLEY AZ WATER COST OF SERVICE MODEL Residential & Irrigation 3" Base 72,814$ 68,449$ 73,147$ 71,416$ 73,335$ 74,154$ 68,470$ 69,009$ 67,598$ 69,071$ Max Day/Extra Capacity 114,377 107,422 114,665 111,866 114,786 115,982 107,013 107,777 105,498 107,721 Customer 93 87 93 91 93 94 87 87 85 87 Total Cost of Service 187,284$ 175,958$ 187,905$ 183,373$ 188,214$ 190,229$ 175,570$ 176,873$ 173,181$ 176,879$ Calculation of Customer Costs/Bill Total Customer Costs 93$ 87$ 93$ 91$ 93$ 94$ 87$ 87$ 85$ 87$ Total Bills 24 25 25 25 25 25 26 26 26 26 Customer Cost/Bill 3.80$ 3.52$ 3.72$ 3.60$ 3.67$ 3.68$ 3.38$ 3.38$ 3.28$ 3.33$ Calculation of Non-Customer Charge Total Non-Customer Costs 187,191$ 175,871$ 187,812$ 183,282$ 188,121$ 190,136$ 175,483$ 176,786$ 173,096$ 176,792$ Total Volume 16,881,063 17,117,287 17,292,418 17,410,530 17,528,642 17,646,754 17,764,867 17,882,979 18,001,091 18,119,203 Total Non-Customer Cost 11.09$ 10.27$ 10.86$ 10.53$ 10.73$ 10.77$ 9.88$ 9.89$ 9.62$ 9.76$ Calculation of Minimum Charge Monthly Minimum Volume - - - - - - - - - - Non-Customer Charge/1,000 Gallons 11.09$ 10.27$ 10.86$ 10.53$ 10.73$ 10.77$ 9.88$ 9.89$ 9.62$ 9.76$ Monthly Non-Customer Charge -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Monthly Customer Charge 3.80$ 3.52$ 3.72$ 3.60$ 3.67$ 3.68$ 3.38$ 3.38$ 3.28$ 3.33$ Monthly Minimum Charge 3.80$ 3.52$ 3.72$ 3.60$ 3.67$ 3.68$ 3.38$ 3.38$ 3.28$ 3.33$ Calculation of Volumetric Charge Monthly Minimum Charge 3.80$ 3.52$ 3.72$ 3.60$ 3.67$ 3.68$ 3.38$ 3.38$ 3.28$ 3.33$ Total Bills 24 25 25 25 25 25 26 26 26 26 Revenue from Minimum Charge 93$ 87$ 93$ 91$ 93$ 94$ 87$ 87$ 85$ 87$ Total Cost of Service 187,284$ 175,958$ 187,905$ 183,373$ 188,214$ 190,229$ 175,570$ 176,873$ 173,181$ 176,879$ Net Cost of Service 187,191$ 175,871$ 187,812$ 183,282$ 188,121$ 190,136$ 175,483$ 176,786$ 173,096$ 176,792$ Test Year Annual Volume after Minimum 16,881,063 17,117,287 17,292,418 17,410,530 17,528,642 17,646,754 17,764,867 17,882,979 18,001,091 18,119,203 Net Volumetric Charge 11.09$ 10.27$ 10.86$ 10.53$ 10.73$ 10.77$ 9.88$ 9.89$ 9.62$ 9.76$ Intellectual Property of Economists.com, LLC / Willdan Group Inc. - Not to be used without express written permission 59 Date: 2/18/2022 2022 02 18 Oro Valley AZ Rate Model Presentation Version Forecast W8 10 Year Forecast 2022 - 2031 Test Year Forecast 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 Forecast W 8.0 -- WATER Cost of Service by Customer Class Scenario:2022 02 18 -- Equal Percent Adjustments TOWN OF ORO VALLEY AZ WATER COST OF SERVICE MODEL Residential & Irrigation 4" Base 215,846$ 202,905$ 216,833$ 211,702$ 217,390$ 219,817$ 202,968$ 204,566$ 200,383$ 204,750$ Max Day/Extra Capacity 225,389 211,684 225,956 220,441 226,195 228,551 210,878 212,383 207,892 212,273 Customer 232 218 232 227 232 235 217 218 213 218 Total Cost of Service 441,466$ 414,806$ 443,021$ 432,369$ 443,817$ 448,603$ 414,062$ 417,167$ 408,488$ 417,241$ Calculation of Customer Costs/Bill Total Customer Costs 232$ 218$ 232$ 227$ 232$ 235$ 217$ 218$ 213$ 218$ Total Bills 61 62 62 63 63 64 64 65 65 65 Customer Cost/Bill 3.80$ 3.52$ 3.72$ 3.60$ 3.67$ 3.68$ 3.38$ 3.38$ 3.28$ 3.33$ Calculation of Non-Customer Charge Total Non-Customer Costs 441,234$ 414,589$ 442,789$ 432,143$ 443,585$ 448,368$ 413,846$ 416,949$ 408,274$ 417,023$ Total Volume 50,041,170 50,741,418 51,260,567 51,610,691 51,960,815 52,310,939 52,661,063 53,011,187 53,361,311 53,711,435 Total Non-Customer Cost 8.82$ 8.17$ 8.64$ 8.37$ 8.54$ 8.57$ 7.86$ 7.87$ 7.65$ 7.76$ Calculation of Minimum Charge Monthly Minimum Volume - - - - - - - - - - Non-Customer Charge/1,000 Gallons 8.82$ 8.17$ 8.64$ 8.37$ 8.54$ 8.57$ 7.86$ 7.87$ 7.65$ 7.76$ Monthly Non-Customer Charge -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Monthly Customer Charge 3.80$ 3.52$ 3.72$ 3.60$ 3.67$ 3.68$ 3.38$ 3.38$ 3.28$ 3.33$ Monthly Minimum Charge 3.80$ 3.52$ 3.72$ 3.60$ 3.67$ 3.68$ 3.38$ 3.38$ 3.28$ 3.33$ Calculation of Volumetric Charge Monthly Minimum Charge 3.80$ 3.52$ 3.72$ 3.60$ 3.67$ 3.68$ 3.38$ 3.38$ 3.28$ 3.33$ Total Bills 61 62 62 63 63 64 64 65 65 65 Revenue from Minimum Charge 232$ 218$ 232$ 227$ 232$ 235$ 217$ 218$ 213$ 218$ Total Cost of Service 441,466$ 414,806$ 443,021$ 432,369$ 443,817$ 448,603$ 414,062$ 417,167$ 408,488$ 417,241$ Net Cost of Service 441,234$ 414,589$ 442,789$ 432,143$ 443,585$ 448,368$ 413,846$ 416,949$ 408,274$ 417,023$ Test Year Annual Volume after Minimum 50,041,170 50,741,418 51,260,567 51,610,691 51,960,815 52,310,939 52,661,063 53,011,187 53,361,311 53,711,435 Net Volumetric Charge 8.82$ 8.17$ 8.64$ 8.37$ 8.54$ 8.57$ 7.86$ 7.87$ 7.65$ 7.76$ Intellectual Property of Economists.com, LLC / Willdan Group Inc. - Not to be used without express written permission 60 Date: 2/18/2022 2022 02 18 Oro Valley AZ Rate Model Presentation Version Forecast W8 10 Year Forecast 2022 - 2031 Test Year Forecast 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 Forecast W 8.0 -- WATER Cost of Service by Customer Class Scenario:2022 02 18 -- Equal Percent Adjustments TOWN OF ORO VALLEY AZ WATER COST OF SERVICE MODEL Commercial, Turf & Multifamily Base 1,410,533$ 1,316,923$ 1,393,069$ 1,350,875$ 1,377,827$ 1,383,886$ 1,269,314$ 1,270,855$ 1,236,700$ 1,255,418$ Max Day/Extra Capacity 222,441 207,491 219,237 212,435 216,511 217,302 199,166 199,263 193,769 196,563 Customer 25,779 24,045 25,576 24,949 25,597 25,861 23,858 24,026 23,515 24,008 Total Cost of Service 1,658,752$ 1,548,459$ 1,637,883$ 1,588,260$ 1,619,935$ 1,627,049$ 1,492,338$ 1,494,144$ 1,453,984$ 1,475,989$ Calculation of Customer Costs/Bill Total Customer Costs 25,779$ 24,045$ 25,576$ 24,949$ 25,597$ 25,861$ 23,858$ 24,026$ 23,515$ 24,008$ Total Bills 6,780 6,828 6,876 6,924 6,972 7,020 7,068 7,116 7,164 7,212 Customer Cost/Bill 3.80$ 3.52$ 3.72$ 3.60$ 3.67$ 3.68$ 3.38$ 3.38$ 3.28$ 3.33$ Calculation of Non-Customer Charge Total Non-Customer Costs 1,632,973$ 1,524,414$ 1,612,307$ 1,563,311$ 1,594,338$ 1,601,188$ 1,468,480$ 1,470,118$ 1,430,469$ 1,451,981$ Total Volume 327,014,495 329,329,642 329,329,642 329,329,642 329,329,642 329,329,642 329,329,642 329,329,642 329,329,642 329,329,642 Total Non-Customer Cost 4.99$ 4.63$ 4.90$ 4.75$ 4.84$ 4.86$ 4.46$ 4.46$ 4.34$ 4.41$ Calculation of Minimum Charge Monthly Minimum Volume - - - - - - - - - - Non-Customer Charge/1,000 Gallons 4.99$ 4.63$ 4.90$ 4.75$ 4.84$ 4.86$ 4.46$ 4.46$ 4.34$ 4.41$ Monthly Non-Customer Charge -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Monthly Customer Charge 3.80$ 3.52$ 3.72$ 3.60$ 3.67$ 3.68$ 3.38$ 3.38$ 3.28$ 3.33$ Monthly Minimum Charge 3.80$ 3.52$ 3.72$ 3.60$ 3.67$ 3.68$ 3.38$ 3.38$ 3.28$ 3.33$ Calculation of Volumetric Charge Monthly Minimum Charge 3.80$ 3.52$ 3.72$ 3.60$ 3.67$ 3.68$ 3.38$ 3.38$ 3.28$ 3.33$ Total Bills 6,780 6,828 6,876 6,924 6,972 7,020 7,068 7,116 7,164 7,212 Revenue from Minimum Charge 25,779$ 24,045$ 25,576$ 24,949$ 25,597$ 25,861$ 23,858$ 24,026$ 23,515$ 24,008$ Total Cost of Service 1,658,752$ 1,548,459$ 1,637,883$ 1,588,260$ 1,619,935$ 1,627,049$ 1,492,338$ 1,494,144$ 1,453,984$ 1,475,989$ Net Cost of Service 1,632,973$ 1,524,414$ 1,612,307$ 1,563,311$ 1,594,338$ 1,601,188$ 1,468,480$ 1,470,118$ 1,430,469$ 1,451,981$ Test Year Annual Volume after Minimum 327,014,495 329,329,642 329,329,642 329,329,642 329,329,642 329,329,642 329,329,642 329,329,642 329,329,642 329,329,642 Net Volumetric Charge 4.99$ 4.63$ 4.90$ 4.75$ 4.84$ 4.86$ 4.46$ 4.46$ 4.34$ 4.41$ Intellectual Property of Economists.com, LLC / Willdan Group Inc. - Not to be used without express written permission 61 Date: 2/18/2022 2022 02 18 Oro Valley AZ Rate Model Presentation Version Forecast W8 10 Year Forecast 2022 - 2031 Test Year Forecast 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 Forecast W 8.0 -- WATER Cost of Service by Customer Class Scenario:2022 02 18 -- Equal Percent Adjustments TOWN OF ORO VALLEY AZ WATER COST OF SERVICE MODEL Construction Base 165,363$ 153,303$ 162,167$ 157,255$ 160,393$ 161,098$ 147,761$ 147,940$ 143,964$ 146,143$ Max Day/Extra Capacity (10,407) (9,639) (10,185) (9,869) (10,058) (10,095) (9,253) (9,257) (9,002) (9,132) Customer 1,369 1,268 1,339 1,297 1,322 1,326 1,215 1,215 1,182 1,198 Total Cost of Service 156,324$ 144,931$ 153,321$ 148,684$ 151,656$ 152,329$ 139,723$ 139,899$ 136,144$ 138,210$ Calculation of Customer Costs/Bill Total Customer Costs 1,369$ 1,268$ 1,339$ 1,297$ 1,322$ 1,326$ 1,215$ 1,215$ 1,182$ 1,198$ Total Bills 360 360 360 360 360 360 360 360 360 360 Customer Cost/Bill 3.80$ 3.52$ 3.72$ 3.60$ 3.67$ 3.68$ 3.38$ 3.38$ 3.28$ 3.33$ Calculation of Non-Customer Charge Total Non-Customer Costs 154,956$ 143,664$ 151,982$ 147,386$ 150,334$ 151,003$ 138,508$ 138,683$ 134,962$ 137,012$ Total Volume 38,337,280 38,337,280 38,337,280 38,337,280 38,337,280 38,337,280 38,337,280 38,337,280 38,337,280 38,337,280 Total Non-Customer Cost 4.04$ 3.75$ 3.96$ 3.84$ 3.92$ 3.94$ 3.61$ 3.62$ 3.52$ 3.57$ Calculation of Minimum Charge Monthly Minimum Volume - - - - - - - - - - Non-Customer Charge/1,000 Gallons 4.04$ 3.75$ 3.96$ 3.84$ 3.92$ 3.94$ 3.61$ 3.62$ 3.52$ 3.57$ Monthly Non-Customer Charge -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Monthly Customer Charge 3.80$ 3.52$ 3.72$ 3.60$ 3.67$ 3.68$ 3.38$ 3.38$ 3.28$ 3.33$ Monthly Minimum Charge 3.80$ 3.52$ 3.72$ 3.60$ 3.67$ 3.68$ 3.38$ 3.38$ 3.28$ 3.33$ Calculation of Volumetric Charge Monthly Minimum Charge 3.80$ 3.52$ 3.72$ 3.60$ 3.67$ 3.68$ 3.38$ 3.38$ 3.28$ 3.33$ Total Bills 360 360 360 360 360 360 360 360 360 360 Revenue from Minimum Charge 1,369$ 1,268$ 1,339$ 1,297$ 1,322$ 1,326$ 1,215$ 1,215$ 1,182$ 1,198$ Total Cost of Service 156,324$ 144,931$ 153,321$ 148,684$ 151,656$ 152,329$ 139,723$ 139,899$ 136,144$ 138,210$ Net Cost of Service 154,956$ 143,664$ 151,982$ 147,386$ 150,334$ 151,003$ 138,508$ 138,683$ 134,962$ 137,012$ Test Year Annual Volume after Minimum 38,337,280 38,337,280 38,337,280 38,337,280 38,337,280 38,337,280 38,337,280 38,337,280 38,337,280 38,337,280 Net Volumetric Charge 4.04$ 3.75$ 3.96$ 3.84$ 3.92$ 3.94$ 3.61$ 3.62$ 3.52$ 3.57$ Intellectual Property of Economists.com, LLC / Willdan Group Inc. - Not to be used without express written permission 62 Date: 2/18/2022 2022 02 18 Oro Valley AZ Rate Model Presentation Version Forecast W8 10 Year Forecast 2022 - 2031 Test Year Forecast 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 Forecast W 8.0 -- WATER Cost of Service by Customer Class Scenario:2022 02 18 -- Equal Percent Adjustments TOWN OF ORO VALLEY AZ WATER COST OF SERVICE MODEL Reclaimed Water Revenue Requirement Allocation 1,206,652$ 1,258,008$ 1,324,758$ 1,304,324$ 1,353,558$ 1,390,941$ 1,435,782$ 1,482,296$ 1,530,529$ 1,581,105$ Customer 548 507 536 519 529 530 486 486 473 479 Total Cost of Service 1,207,199$ 1,258,515$ 1,325,293$ 1,304,843$ 1,354,086$ 1,391,472$ 1,436,269$ 1,482,783$ 1,531,002$ 1,581,585$ Calculation of Customer Costs/Bill Total Customer Costs 548$ 507$ 536$ 519$ 529$ 530$ 486$ 486$ 473$ 479$ Total Bills 144 144 144 144 144 144 144 144 144 144 Customer Cost/Bill 3.80$ 3.52$ 3.72$ 3.60$ 3.67$ 3.68$ 3.38$ 3.38$ 3.28$ 3.33$ Calculation of Non-Customer Charge Total Non-Customer Costs 1,206,652$ 1,258,008$ 1,324,758$ 1,304,324$ 1,353,558$ 1,390,941$ 1,435,782$ 1,482,296$ 1,530,529$ 1,581,105$ Total Volume 593,856,096 593,856,096 593,856,096 593,856,096 593,856,096 593,856,096 593,856,096 593,856,096 593,856,096 593,856,096 Total Non-Customer Cost 2.03$ 2.12$ 2.23$ 2.20$ 2.28$ 2.34$ 2.42$ 2.50$ 2.58$ 2.66$ Calculation of Minimum Charge Monthly Minimum Volume - - - - - - - - - - Non-Customer Charge/1,000 Gallons 2.03$ 2.12$ 2.23$ 2.20$ 2.28$ 2.34$ 2.42$ 2.50$ 2.58$ 2.66$ Monthly Non-Customer Charge -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Monthly Customer Charge 3.80$ 3.52$ 3.72$ 3.60$ 3.67$ 3.68$ 3.38$ 3.38$ 3.28$ 3.33$ Monthly Minimum Charge 3.80$ 3.52$ 3.72$ 3.60$ 3.67$ 3.68$ 3.38$ 3.38$ 3.28$ 3.33$ Calculation of Volumetric Charge Monthly Minimum Charge 3.80$ 3.52$ 3.72$ 3.60$ 3.67$ 3.68$ 3.38$ 3.38$ 3.28$ 3.33$ Total Bills 144 144 144 144 144 144 144 144 144 144 Revenue from Minimum Charge 548$ 507$ 536$ 519$ 529$ 530$ 486$ 486$ 473$ 479$ Total Cost of Service 1,207,199$ 1,258,515$ 1,325,293$ 1,304,843$ 1,354,086$ 1,391,472$ 1,436,269$ 1,482,783$ 1,531,002$ 1,581,585$ Net Cost of Service 1,206,652$ 1,258,008$ 1,324,758$ 1,304,324$ 1,353,558$ 1,390,941$ 1,435,782$ 1,482,296$ 1,530,529$ 1,581,105$ Test Year Annual Volume after Minimum 593,856,096 593,856,096 593,856,096 593,856,096 593,856,096 593,856,096 593,856,096 593,856,096 593,856,096 593,856,096 Net Volumetric Charge 2.03$ 2.12$ 2.23$ 2.20$ 2.28$ 2.34$ 2.42$ 2.50$ 2.58$ 2.66$ Intellectual Property of Economists.com, LLC / Willdan Group Inc. - Not to be used without express written permission 63 5500 Democracy Drive, Suite 130 Plano, TX 75024 972.378.6588 www.willdan.com Water Rate Study and Long-Term Financial Plan June 2022 Public Hearing 2 Public Hearing: Adoption of Proposed Water Rates Background on Rates 3 Facts about Water Rates in the 21st Century o Average utility has been increasing rates 5-6% per year, trend expected to continue o AWWA forecasts that water rates across the U.S. will triple in the next 15 years o Rate adjustments are primarily due to reasons beyond a utility’s control – inflation, Capital Improvement Plans, etc. o 30-40% of utilities charge rates that do not cover their costs 4 Current Water Rate Structure –July 2021 Base Charge 5/8"18.99$ Commodity Rate (per 1,000 Gallons) 3/4"28.48 Tier 1 2.40 1"47.46 Tier 2 3.35 1 1/2"94.91 Tier 3 4.80 2"151.87 Tier 4 6.70 3"303.71 4"474.56 6"949.12 Commodity Rate (per 1,000 Gallons) 8"1,518.60 Tier 1 2.40 Tier 2 3.35 Tier 3 4.80 Commodity Rate (per 1,000 Gallons)Tier 4 6.70 Tier 1 2.40$ Tier 2 3.35 Tier 3 4.80 Commodity Rate (per 1,000 Gallons) Tier 4 6.70 Tier 1 2.40 Tier 2 3.35 Tier 3 4.80 Commodity Rate (per 1,000 Gallons)Tier 4 6.70 Tier 1 2.40$ Tier 2 3.35 Tier 3 4.80 Commodity Rate (per 1,000 Gallons) Tier 4 6.70 Tier 1 2.40 Tier 2 3.35 Tier 3 4.80 Commodity Rate (per 1,000 Gallons)Tier 4 6.70 Tier 1 2.40$ Tier 2 3.35 Commercial, Turf & MF ($/1k Gal)2.40 Tier 3 4.80 Tier 4 6.70 Construction ($/1,000 Gal.)7.29 Potable Water Meter Base Charge Residential & Irrigation 3/4" Residential & Irrigation 1" Residential & Irrigation 5/8" Residential & Irrigation 1.5" Residential & Irrigation 2" Residential & Irrigation 3" Residential & Irrigation 4" 5 Historical Rate Increases (%) Calendar Year 6 Monthly Residential Charge Comparison 7,000 Gallons Water $35.79 $39.80 $41.61 $64.26 $0 $10 $20 $30 $40 $50 $60 $70 Oro Valley 5/8"MeterPhoenixFlowing Wells Irr.DistrictMammothTucsonMaranaState SurveyMedianMetro-mainMetro-HubPima CountyFlagstaffAnway ManvilleWater Co.Arizona WaterCo. (Oracle) 7 Public Hearing: Adoption of Proposed Water Rates Water Customers and Volumes 8 Actual and Forecast Potable Water Accounts Annual Growth ≈ 0.8%, 150 –330 Accounts 9 Actual and Forecast Potable Water Billed Consumption 2,218,076,000 2,350,463,880 2,498,376,903 2,000,000,000 2,100,000,000 2,200,000,000 2,300,000,000 2,400,000,000 2,500,000,000 2,600,000,000 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 10 Public Hearing: Adoption of Proposed Water Rates Water Current and Forecast Cost of Service 11 Key Assumptions Driving Forecast Financial and Rate Plan o Most personnel and operating expenses increase 2% per year o Certain expenses increase at higher rates and/or are tied to increases in accounts and volumes o Biggest impacts on rate plan: •Central Arizona Project Annual Costs •Funding of $18.8 million CIP over next five years 12 Capital Improvement Plan: FY 2022 –FY 2026 Total = $18,881,000 $- $2,000,000 $4,000,000 $6,000,000 $8,000,000 $10,000,000 $12,000,000 Water NWRRDS $6,941,000 $11,940,000 13 Forecast Cost of Service and Net Revenue Requirement Total Operating Capital Debt Transfers &Cost of Expenses Outlays Service Contingencies Service POTABLE WATER Revenue Requirement TY 2022 12,310,079$ 3,511,650$ 4,935,311$ -$ 20,757,039$ FY 2023 12,796,184 1,670,650 5,380,668 - 19,847,502 FY 2024 13,420,608 3,250,650 4,279,034 - 20,950,293 FY 2025 13,265,139 3,250,650 4,026,510 - 20,542,299 FY 2026 13,733,851 3,250,650 4,027,705 - 21,012,205 FY 2027 14,097,050 3,250,650 3,878,868 - 21,226,568 FY 2028 14,527,577 3,250,650 2,234,774 - 20,013,001 FY 2029 14,973,661 3,250,650 1,951,588 - 20,175,900 FY 2030 15,435,727 3,250,650 1,224,556 - 19,910,933 FY 2031 15,919,371 3,250,650 1,113,865 - 20,283,887 $17,387,509 16,781,235 $15,500,000 $16,000,000 $16,500,000 $17,000,000 $17,500,000 $18,000,000 TY 2022 FY 2023 FY 2024 FY 2025 FY 2026 FY 2027 FY 2028 FY 2029 FY 2030 FY 2031 POTABLE WATER Revenue Requirement 14 Public Hearing: Adoption of Proposed Water Rates Proposed Water Rate Plan 15 Notes on Rate Proposal –Potable Water Rates o Many alternative rate plans evaluated by staff, finance sub committee and Water Utility Commission o Assumes no change in rate structure; uniform percentage adjustments for base and volume charges o Rates assumed effective July 1 o Plan forecasts additional rate adjustments required in 2023 --2026 o Beyond 2026, debt retirements forecast to free up cash flow, which would allow for either limited additional rate adjustments or greater capital investment 16 Water Rate Plan –Potable Water Rates FY 2023 –FY 2027 Effective Forecast Forecast Forecast Forecast Current Jul-22 Jul-23 Jul-24 Jul-25 Jul-26 Residential & Irrigation 5/8" Monthly Base Charge 5/8"18.99$ 19.94$ 20.94$ 21.98$ 23.08$ 24.01$ Commodity Rate/1,000 Gal Tier 1 1 7,000 2.40 2.52 2.65 2.78 2.92 3.03 Tier 2 7,001 16,000 3.35 3.52 3.69 3.88 4.07 4.23 Tier 3 16,001 32,000 4.80 5.04 5.29 5.56 5.83 6.07 Tier 4 32,001 Above 6.70 7.04 7.39 7.76 8.14 8.47 Residential & Irrigation 3/4" Monthly Base Charge 3/4"28.48$ 29.90$ 31.39$ 32.96$ 34.61$ 36.00$ Commodity Rate/1,000 Gal Tier 1 1 10,000 2.40 2.52 2.65 2.78 2.92 3.03 Tier 2 10,001 24,000 3.35 3.52 3.69 3.88 4.07 4.23 Tier 3 24,001 48,000 4.80 5.04 5.29 5.56 5.83 6.07 Tier 4 48,001 Above 6.70 7.04 7.39 7.76 8.14 8.47 Residential & Irrigation 1" Monthly Base Charge 1"47.46$ 49.83$ 52.32$ 54.94$ 57.68$ 59.99$ Commodity Rate/1,000 Gal Tier 1 1 17,000 2.40 2.52 2.65 2.78 2.92 3.03 Tier 2 17,001 40,000 3.35 3.52 3.69 3.88 4.07 4.23 Tier 3 40,001 80,000 4.80 5.04 5.29 5.56 5.83 6.07 Tier 4 80,001 Above 6.70 7.04 7.39 7.76 8.14 8.47 17 Water Rate Plan –Potable Water Rates FY 2023 –FY 2027 Effective Forecast Forecast Forecast Forecast Current Jul-22 Jul-23 Jul-24 Jul-25 Jul-26 Residential & Irrigation 1.5" Monthly Base Charge 1.5"94.91$ 99.66$ 104.64$ 109.87$ 115.36$ 119.98$ Commodity Rate/1,000 Gal Tier 1 1 35,000 2.40 2.52 2.65 2.78 2.92 3.03 Tier 2 35,001 80,000 3.35 3.52 3.69 3.88 4.07 4.23 Tier 3 80,001 160,000 4.80 5.04 5.29 5.56 5.83 6.07 Tier 4 160,001 Above 6.70 7.04 7.39 7.76 8.14 8.47 Residential & Irrigation 2" Monthly Base Charge 2"151.87$ 159.46$ 167.44$ 175.81$ 184.60$ 191.98$ Commodity Rate/1,000 Gal Tier 1 1 56,000 2.40 2.52 2.65 2.78 2.92 3.03 Tier 2 56,001 128,000 3.35 3.52 3.69 3.88 4.07 4.23 Tier 3 128,001 256,000 4.80 5.04 5.29 5.56 5.83 6.07 Tier 4 256,001 Above 6.70 7.04 7.39 7.76 8.14 8.47 Residential & Irrigation 3" Monthly Base Charge 3"303.71$ 318.90$ 334.84$ 351.58$ 369.16$ 383.93$ Commodity Rate/1,000 Gal Tier 1 1 112,000 2.40 2.52 2.65 2.78 2.92 3.03 Tier 2 112,001 256,000 3.35 3.52 3.69 3.88 4.07 4.23 Tier 3 256,001 512,000 4.80 5.04 5.29 5.56 5.83 6.07 Tier 4 512,001 Above 6.70 7.04 7.39 7.76 8.14 8.47 Residential & Irrigation 4" Monthly Base Charge 4"474.56$ 498.29$ 523.21$ 549.37$ 576.83$ 599.91$ Commodity Rate/1,000 Gal Tier 1 1 175,000 2.40 2.52 2.65 2.78 2.92 3.03 Tier 2 175,001 400,000 3.35 3.52 3.69 3.88 4.07 4.23 Tier 3 400,001 800,000 4.80 5.04 5.29 5.56 5.83 6.07 Tier 4 800,001 Above 6.70 7.04 7.39 7.76 8.14 8.47 18 Water Rate Plan –Potable Water Rates FY 2023 –FY 2027 Effective Forecast Forecast Forecast Forecast Current Jul-22 Jul-23 Jul-24 Jul-25 Jul-26 Commercial, Turf & Multifamily Monthly Base Charge 5/8"18.99$ 19.94$ 20.94$ 21.98$ 23.08$ 24.01$ 3/4"28.48 29.90 31.39 32.96 34.61 36.00 1"47.46 49.83 52.32 54.94 57.68 59.99 1 1/2"94.91 99.66 104.64 109.87 115.36 119.98 2"151.87 159.46 167.44 175.81 184.60 191.98 3"303.71 318.90 334.84 351.58 369.16 383.93 4"474.56 498.29 523.21 549.37 576.83 599.91 6"949.12 996.58 1,046.41 1,098.73 1,153.67 1,199.81 8"1,518.60 1,594.53 1,674.25 1,757.97 1,845.86 1,919.70 Commodity Rate/1,000 Gal 1 Above 2.40 2.52 2.65 2.78 2.92 3.03 Construction Rate/1,000 Gal 1 Above 7.29 7.65 8.04 8.44 8.86 9.22 19 Rate Plan --Impact on Monthly Bills FY 2023 –FY 2027 Effective Forecast Forecast Forecast Forecast Jul-22 Jul-23 Jul-24 Jul-25 Jul-26 Residential Monthly Charges - 5/8" 7,000 Water 35.79$ 37.58$ 39.46$ 41.43$ 43.50$ 45.24$ Increase -- $1.79 1.88 1.97 2.07 1.74 Increase -- %5.0%5.0%5.0%5.0%4.0% 10,000 Water 45.84 48.13 50.54 53.07 55.72 57.95 Increase -- $2.29 2.41 2.53 2.65 2.23 Increase -- %5.0%5.0%5.0%5.0%4.0% Commercial Monthly Charge -- 2" 50,000 Water 271.87 285.46 299.74 314.72 330.46 343.68 Increase -- $13.59 14.27 14.99 15.74 13.22 Increase -- %5.0%5.0%5.0%5.0%4.0% 20 Presentation Summary Why is Rate Plan Beneficial to Oro Valley? o Will enable utility to continue operating on a stand-alone basis and independent of general fund assistance o Will result in financially-healthy utility that has ability to fund operations and capital needs o Ensures that ratepayers pay only what it costs to provide water service o Will allow $18.8 million of capital investment to improve quality of service and provide a well-functioning system for future generations Other water rates and fees 21 No change is recommended for: Groundwater preservation fees for potable & reclaimed water Reclaimed water base & commodity rate 22 Public Hearing: Adoption of Proposed Water Rates Questions and Discussion Town Council Regular Session 2. Meeting Date:06/01/2022 Requested by: Wendy Gomez Submitted By:Christopher Hutchison, Finance Department:Finance SUBJECT: PUBLIC HEARING: RESOLUTION NO. (R)22-27, DISCUSSION AND POSSIBLE ACTION REGARDING THE ADOPTION OF THE TENTATIVE BUDGET FOR FY 2022/23 AND SETTING THE LOCAL ALTERNATIVE EXPENDITURE LIMITATION FOR FY 2022/23 RECOMMENDATION: Staff recommends approval of the Tentative Budget for FY 2022/23. EXECUTIVE SUMMARY: This item is for Council consideration and adoption of the Town's Tentative Budget for FY 2022/23 in the amount of $147,704,287. Adoption of this resolution will also set the maximum local expenditure limitation for FY 2022/23. Once the limitation is set, expenditures for the year may not exceed that amount. The Council has the authority to make changes to the budget prior to the final budget adoption scheduled for June 15, 2022. However, the total amount of the final budget may not exceed the expenditure limitation set this evening. The Council also has the authority to modify the budget throughout the fiscal year. BACKGROUND OR DETAILED INFORMATION: Staff presented the FY 2022/23 Manager's Recommended Budget in the amount of $159,198,148 at the May 11 and May 12 Town Council budget study sessions. The full copy of the Recommended Budget has been posted on the Town's website, www.orovalleyaz.gov. The Town’s Tentative Budget for FY 2022/23 is presented for approval in the amount of $147,704,287, a decrease of $11,493,861 from the Manager's Recommended Budget. The decrease, as well as relevant changes in the budget, are explained below: General Fund: Revenues: The General Fund for FY 2022/23 now includes $2,653,689 in additional state shared income tax revenue based on the latest estimate provided by ADOR and the League of Arizona Cities & Towns. The large increase is due primarily to the filing deadline extension granted in 2020 due to COVID-19. The Town received the state estimates well after the Recommended Budget was presented to the Town Council. The income tax portion of the state shared revenues is an actual rather than estimated number. Therefore, staff is confident in presenting the increased revenue to Council for the FY2022/23 budget. However, since a notable portion of the increased revenue is attributable to an extension, and there are income tax cuts on the horizon, not all the additional revenue is being recommended for ongoing expenses. Animal control revenues of $95,000 were removed due to the proposed intergovernmental agreement between the Town of Oro Valley and Pima County, also on the June 1 Town Council agenda. Expenditures: General Fund personnel costs have been increased $1.3 million to provide additional capacity for implementation of the classification and compensation study currently being performed by an outside firm, as well as a slight increase to staff merit increases for next FY to 4.25%. The General Fund Recommended Budget included $1.2 million for full implementation of the classification and compensation study; however, the cost for police officers at the rank of Sergeant and below for FY 22/23 totals $1.25 million, necessitating an increase in capacity to allow for implementation of adjustments to remaining Town personnel. In addition, the change in merit increases for non-union personnel will fairly equalize the increases being received by officers to other employees. This slight increase from 3% also recognizes the impact inflation is having on all employees. The additional cost for the increased merits is approximately $175,000 of the $1.3 million. Operations and maintenance costs increased $188,482 from the Manager’s Recommended Budget. Budgeted gasoline costs have been increased $300,000 to provide capacity for sustained high gasoline prices, and $35,000 was added for carryover of the Rooney Master plan study. These increases are further offset by the reduction of animal control fees of $146,518 per the proposed intergovernmental agreement between the Town of Oro Valley and Pima County. With changes to revenues and expenditures, as well as the increase of an interfund transfer to the Capital Fund, the budgeted use of fund balance in the General Fund is now $13,832,032, which represents a $558,115 favorable increase from the Manager’s Recommended Budget. Highway Fund: Revenues: The Highway Fund for FY 2022/23 now includes $227,909 in additional state shared highway user revenue (HURF) based on the latest estimate provided by ADOT and the League of Arizona Cities and Towns. Community Center Fund: Expenditures: Capital outlay increased $342,000 due to a combination of moving the Pusch Ridge Facility ADA/Code Compliance project from the Capital Fund ($142,000), adding the Pusch Ridge Roof Repair project ($110,000), adding additional Pusch Ridge Golf Course investments ($75,000), and adding capacity for storage units ($15,000). Operations and maintenance costs increased $65,000 for increased capacity for the maintenance of Vistoso Trails Nature Preserve ($55,000, which is above the budgeted $220,000 contract cost already in the budget) and furnishings for the planned recreation lounge ($10,000). PAG/RTA Fund: Revenues: RTA revenues increased $125,000 due to the revised budget for the wildlife fencing project. State grant revenue of $400,000 for the HAWK crossing at Ironwood Ridge High School was removed, as this project will instead utilize available reserves in the PAG/RTA Fund. Expenditures: Expenditures increased by $125,000 for the wildlife fencing project due to the revised budget from the RTA. Roadway Impact Fee Fund: Capital outlay was reduced by $153,095 due to refinement of project carry forward amounts. Water Resource Impact Fee Fund: Capital outlay was reduced by $10.3 million due to adjustments to the NWRRDS project. The partnered portions of the project were pushed out to future years. Capital Fund: Personnel costs decreased $68,899 from shifting the contract specialist position back to the General Fund. Capital outlay costs decreased by $3,055,220. The net decrease is attributable to the following items: The Steam Pump Ranch garage project cost was refined, increasing the project budget by approximately $284,000. The Coronado K-8 Restroom Amphi Partnership CIP project with a budget of $150,000 was moved up a year from FY 2023/24 to FY 2022/23. The Pusch Ridge Facility ADA/Code Compliance project was moved to the Community Center Fund, a $142,000 reduction. $1,361,504 was removed across several CIP projects to accurately reflect project costs and revised carry forward amounts. These projects include Moore Rd. asphalt overlay (completed), 680 maintenance bay (completed), vehicle replacements, Steam Pump Ranch BBQ & bunk house restoration, and the golf course irrigation project. Stormwater Utility Fund: Budgeted gasoline costs increased $10,400 to provide capacity for sustained high gasoline prices. Water Utility Fund: Budgeted gasoline costs increased $36,000 to provide capacity for sustained high gasoline prices. A matrix summary of all expenditure changes from the Recommended Budget to the Tentative Budget is shown below: FY 22/23 Manager's Recommended Budget $159,198,148 General Fund Additional capacity for class/comp study implementation and merits 1,300,000 Additional capacity for gasoline 300,000 Moved personnel position from the Capital Fund 68,899 Carryover for Rooney master plan study 35,000 Refinement of personnel budget amounts (56,807) Removed animal control expenditures to be taken on by Pima County (146,518) Highway Fund Refinement of personnel budget amounts 3,501 Community Center Fund Moved Pusch Ridge Facility ADA/Code Compliance project from Capital Fund 142,000 Added Pusch Ridge Roof Repair 110,000 Added Pusch Ridge Golf Course Investments 75,000 Increased capacity for maintenance of Vistoso Trails Nature Preserve 55,000 Added capacity for storage units for Community Center and rec lounge outfitting 25,000 PAG/RTA Fund Adjusted budget from RTA for Wildlife Fencing 125,000 Roadway Impact Fee Fund Refinement of project carry-forward amounts (153,095) Water Resource Impact Fee Fund Adjustment to NWRRDS Projects (10,300,000) Capital Fund Refinement of project cost amounts for Steam Pump Ranch Garage 298,284 Moved Coronado K-8 Restroom Amphi Partnership CIP project up from FY 23/24 150,000 Moved position to the General Fund (68,899) Moved Pusch Ridge Facility ADA/Code Compliance project to the Community Center Fund (142,000) Refinement of project carry-forward and cost amounts (1,361,504) Moved part of golf irrigation project phase II costs out to FY 23/24 (2,000,000) Stormwater Utility Fund Additional capacity for gasoline 10,400 Water Utility Fund Additional capacity for gasoline 36,000 Refinement of personnel budget amounts 878 FY 22/23 Tentative Budget Amount $147,704,287 The Budget and Finance Commission met and reviewed the Manager's Recommended Budget on May 17, 2022. Official Auditor General budget forms for the FY 2022/23 Tentative Budget are included. This agenda item is a public hearing and approval of the resolution to adopt the FY 2022/23 Tentative Budget. Once approved, the Auditor General Budget forms with the approved budget amounts will be published for two consecutive weeks prior to the next public hearing for Final Budget approval scheduled for June 15, 2022. FISCAL IMPACT: The proposed Tentative Budget for FY22/23 sets an alternative expenditure limitation of $147,704,287 for the fiscal year. SUGGESTED MOTION: I MOVE to approve Resolution No. (R)22-27, adopting the Tentative Budget for Fiscal Year 2022/23, and setting the local alternative expenditure limitation for Fiscal Year 2022/23 at $147,704,287. Attachments (R)22-27 Tentative Adopt Resolution Fund Summaries Tentative CIP Program Auditor General Schedules - Tentative Staff Presentation RESOLUTION NO. (R)22-27 A RESOLUTION OF THE MAYOR AND TOWN COUNCIL OF THE TOWN OF ORO VALLEY, ARIZONA, ADOPTING ESTIMATES OF THE AMOUNTS REQUIRED FOR THE FISCAL YEAR 2022/2023 AS A TENTATIVE BUDGET; SETTING FORTH THE RECEIPTS AND EXPENDITURES/EXPENSES FOR THE FISCAL YEAR 2022/2023; GIVING NOTICE OF THE TIME FOR THE FINAL PUBLIC HEARING FOR ADOPTING THE BUDGET FOR THE FISCAL YEAR 2022/2023; PROVIDING FOR CONTINGENCIES; PROVIDING FOR THE USE OF FUNDS; SETTING THE LOCAL ALTERNATIVE EXPENDITURE LIMITATION FOR FISCAL YEAR 2022/2023 WHEREAS, the A.R.S. 42-17101 requires that cities and towns in Arizona adopt a tentative budget by the third Monday in July of each year; and WHEREAS, the Town Council and staff held Council Budget Study Sessions on May 11, 2022, and May 12, 2022, to establish and review the proposed budget; and WHEREAS, adoption of the budget will allow the Town of Oro Valley local government to provide the necessary public services for the health, welfare and safety of its citizenry. NOW, THEREFORE, BE IT RESOLVED by the Mayor and Town Council of the Town of Oro Valley, Arizona that: SECTION 1. The statements and schedules of the tentative budget for the fiscal year 2022/2023 accompany and be included as part of this Resolution as attached hereto. SECTION 2. The statements and schedules herein contained be adopted for the purpose as hereafter set forth as the tentative budget for the Town of Oro Valley, Arizona for the fiscal year 2022/2023 SECTION 3. The statements setting forth the receipts, expenditures/expenses and amounts collectible for the fiscal year 2022/2023 accompany and be included as part of this resolution. SECTION 4 The local alternative expenditure limitation as noted on the Summary Schedule of Estimated Revenues and Expenditures/Expenses for the fiscal year 2022/2023 be included as part of this resolution. SECTION 4. The Town Clerk is hereby authorized and directed to publish in the manner prescribed by law, the estimates of expenditures/expenses, as hereinafter set forth, together with a notice that the Town Council will meet for the purpose of final public hearing and for adoption of the budget for fiscal year 2022/2023 for the Town of Oro Valley, Arizona on the 15th of June 2022. SECTION 5. The money from any fund may be used for any of the appropriations except money specifically restricted by State Law or by Town Ordinance or Resolution. SECTION 6. The various Town officers and employees are hereby directed to perform all acts necessary or desirable to give effect to this resolution. PASSED AND ADOPTED by the Mayor and Town Council of the Town of Oro Valley, Arizona, this 1st of June 2022. TOWN OF ORO VALLEY ___ Joseph C. Winfield, Mayor ATTEST: APPROVED AS TO FORM: ____________________________ Michael Standish, Town Clerk Tobin Sidles, Legal Services Director Date:_______________________ Date:_____________________ Updated: May 20, 2022 BUDGETED BEGINNING FUND BALANCE REVENUE TRANSFERS IN TOTAL PERSONNEL O&M CAPITAL TRANSFERS OUT DEBT SERVICE CONTINGENCY TOTAL GENERAL FUND 18,832,032 50,738,991 - 69,571,023 34,926,773 11,809,548 1,387,725 16,446,977 - 5,000,000 69,571,023 HIGHWAY FUND 676,572 4,163,100 - 4,839,672 1,190,057 823,615 2,626,000 - - 200,000 4,839,672 GRANTS & CONTRIBUTIONS 99,950 10,221,097 898,012 11,219,059 - 2,179,750 3,561,309 5,378,000 - 100,000 11,219,059 SEIZURES & FORFEITURES 98,000 102,000 - 200,000 - 100,000 - - - 100,000 200,000 COMMUNITY CENTER FUND 5,603,155 8,507,335 - 14,110,490 916,806 5,498,918 2,666,700 2,028,066 - 3,000,000 14,110,490 MUNICIPAL DEBT SVC FUND 109,500 130,588 4,200,971 4,441,059 - 10,000 - - 4,331,059 100,000 4,441,059 WRSDIF FUND 1,625,659 1,251,346 660,000 3,537,005 - 214,000 2,735,688 - 337,317 250,000 3,537,005 TWDIF FUND 622,700 392,300 - 1,015,000 - 15,000 750,000 - - 250,000 1,015,000 PAG/RTA FUND 483,875 824,699 - 1,308,574 - 200,000 1,108,574 - - - 1,308,574 PARKS & REC IMPACT FEE FUND- 168,520 - 168,520 - 7,000 - - - 161,520 168,520 POLICE IMPACT FEE FUND115,300 58,200 - 173,500 - 2,000 - 121,500 - 50,000 173,500 CAPITAL FUND 18,970,565 1,465,010 13,500,000 33,935,575 261,962 - 28,673,613 - - 5,000,000 33,935,575 REC IN LIEU FEE FUND 16,560 - - 16,560 - - - - - 16,560 16,560 BENEFIT SELF INSURANCE FUND500,000 3,764,477 - 4,264,477 - 3,764,477 - - - 500,000 4,264,477 WATER UTILITY FUND (2,895,289) 18,707,000 5,378,000 21,189,711 3,624,465 9,685,261 2,074,290 662,440 4,643,255 500,000 21,189,711 STORMWATER UTILITY FUND 857,045 1,494,000 - 2,351,045 820,287 396,245 884,513 - - 250,000 2,351,045 45,715,624 101,988,663 24,636,983 172,341,270 41,740,350 34,705,814 46,468,412 24,636,983 9,311,631 15,478,080 172,341,270 (24,636,983) (24,636,983) 147,704,287$ 147,704,287$ FY 2022/23 BUDGETFY 2022/23 BUDGETDoes not include non cash outlays for depreciation or amortizationFund Balance ReportFY 22/23 TENTATIVE BUDGETREVENUES EXPENDITURESLess Transfers InLess Transfers Out Fiscal Year 2022-2023 Special Capital Internal General Revenue Enterprise Project Service Debt Service 2022-2023 Fund Funds Funds Funds Fund Funds Total Revenues and Other Sources Taxes 25,270,959$ 3,477,236$ -$ -$ -$ -$ 28,748,195$ Licenses and Permits 2,223,824 25,000 - - - - 2,248,824 Fines 125,000 - - - - - 125,000 Water Sales - - 15,383,000 - - - 15,383,000 Charges for Services 3,046,515 4,868,049 4,716,500 28,125 - - 12,659,189 State Shared Revenue 17,605,693 4,127,100 - - - - 21,732,793 Intergovernmental 1,613,000 - - - - - 1,613,000 Grants 455,000 8,721,047 - 1,216,574 - 30,088 10,422,709 Seizures & Forfeitures - 100,000 - - - - 100,000 Impact Fees - - - 1,712,866 - - 1,712,866 Interest Income 150,000 10,050 101,500 157,500 - 500 419,550 Miscellaneous 249,000 1,665,050 - 1,045,010 3,764,477 100,000 6,823,537 Other Financing Sources - 898,012 5,378,000 14,160,000 - 4,200,971 24,636,983 Total 50,738,991$ 23,891,544$ 25,579,000$ 18,320,075$ 3,764,477$ 4,331,559$ 126,625,646$ Expenditures and Other Uses General Government Town Council 199,145$ -$ -$ -$ -$ -$ 199,145$ Town Manager's Office 1,151,222 - - - - - 1,151,222 Clerk 420,087 - - - - - 420,087 Human Resources 569,112 - - - - - 569,112 Finance 1,102,115 - - - - - 1,102,115 Innovation & Technology 4,782,971 - - - - - 4,782,971 Legal 1,011,342 - - - - - 1,011,342 Town Court 1,053,081 - - - - - 1,053,081 General Administration 4,276,177 5,210,000 - 24,000 3,764,477 10,000 13,284,654 Debt Service - - - - - 4,331,059 4,331,059 Capital Projects - - - 28,673,613 - - 28,673,613 Comm. & Econ Dev. 3,256,140 - - - - - 3,256,140 Parks & Recreation 3,762,492 9,122,424 - - - - 12,884,916 Police 20,365,331 453,750 - - - - 20,819,081 Public Works 6,174,831 4,776,981 2,101,045 261,962 - - 13,314,819 Water Utility - - 15,384,016 2,949,688 - - 18,333,704 Water Utility Debt Service Principal - - 4,229,099 333,327 - - 4,562,426 Interest - - 414,156 3,990 - - 418,146 Roadway Improvements - - - 2,058,574 - - 2,058,574 Other Financing Uses 16,446,977 7,406,066 662,440 121,500 - - 24,636,983 Total 64,571,023$ 26,969,221$ 22,790,756$ 34,426,654$ 3,764,477$ 4,341,059$ 156,863,190$ Increase/(Decrease) (13,832,032) (3,077,677) 2,788,244 (16,106,579) - (9,500) (30,237,544) Beginning Fund Balance 26,364,371$ 6,912,989$ 11,499,146$ 51,464,177$ 2,404,515$ 163,661$ 98,808,859$ Ending Fund Balance 12,532,339$ 3,835,312$ 14,287,390$ 35,357,598$ 2,404,515$ 154,161$ 68,571,316$ (1) The General Fund is planned to decrease by $13,832,032 due to a $13.5 million transfer of fund balance to the Capital Fund. (2) Special Revenue Funds are planned to decrease $3,077,677 for planned capital projects. (3) Enterprise Funds are planned to increase by $2,788,244 due to a $5.4 million transfer of ARPA funding from the Grants Fund. (4) Capital Project Funds are planned to decrease by $16,106,579 due to one-time capital projects and equipment. (5) The Debt Service Funds are planned to decrease by $9,500 for debt service payments and associated administrative costs. Fund Balances This table depicts the estimated beginning fund balance at July 1, 2022, the budgeted revenues and expenditures for FY 2022/23 and the projected ending fund balance at June 30, 2023. (1)(2)(3)(4)(5) Fiscal Year 2022-2023 General Fund Fund Summary FY 2022 FY 2022 FY 2023 Variance with Variance with Budget Projected Budget Budget ($) Budget (%) Revenues and Other Sources Local Taxes 21,157,707 26,070,335 25,270,959 4,113,252 19.4% Licenses and Permits 1,849,000 2,197,500 2,223,824 374,824 20.3% Federal Grants 5,990,290 6,068,448 380,000 (5,610,290) -93.7% State Grants 75,000 75,000 75,000 - 0.0% State Shared Revenues 13,729,923 14,271,621 17,605,693 3,875,770 28.2% Intergovernmental 1,344,500 1,364,700 1,613,000 268,500 20.0% Charges for Services 2,387,776 2,514,733 3,046,515 658,739 27.6% Fines 125,000 125,000 125,000 - 0.0% Interest Income 150,000 150,000 150,000 - 0.0% Miscellaneous 264,000 248,825 249,000 (15,000) -5.7% Total 47,073,196$ 53,086,162$ 50,738,991$ 3,665,795$ 7.8% Expenditures and Other Uses Personnel 30,775,632 30,147,575 34,926,773 4,151,141 13.5% Operations & Maintenance 21,981,773 22,053,707 11,809,548 (10,172,225) -46.3% Capital Outlay 1,095,175 666,219 1,387,725 292,550 26.7% Transfer to Capital Fund 5,216,277 5,216,277 13,500,000 8,283,723 158.8% Transfer to Grants Fund 100,000 100,000 898,012 798,012 798.0% Transfer to Debt Service Fund 2,091,987 946,555 2,048,965 (43,022) -2.1% Total 61,260,844$ 59,130,333$ 64,571,023$ 3,310,179$ 5.4% Increase/(Decrease) (14,187,648)$ (6,044,171)$ (13,832,032)$ Beginning Fund Balance 26,364,371 Total Ending Fund Balance 12,532,339 25% Coverage 12,031,012 Fiscal Year 2022-2023 Highway Fund Fund Summary FY 2022 FY 2022 FY 2023 Variance with Variance with Budget Projected Budget Budget ($) Budget (%) Revenues and Other Sources Licenses and Permits 25,000 30,000 25,000 - 0.0% State Shared Revenues 3,614,922 3,870,000 4,127,100 512,178 14.2% Interest Income 6,000 8,000 8,000 2,000 33.3% Miscellaneous 2,000 5,069 3,000 1,000 50.0% Total 3,647,922$ 3,913,069$ 4,163,100$ 515,178$ 14.1% Expenditures and Other Uses Personnel 1,208,870 1,188,023 1,190,057 (18,813) -1.6% Operations & Maintenance 616,655 616,655 823,615 206,960 33.6% Capital Outlay 2,265,000 2,265,000 2,626,000 361,000 15.9% Total 4,090,525$ 4,069,678$ 4,639,672$ 549,147$ 13.4% Increase/(Decrease) (442,603)$ (156,609)$ (476,572)$ Beginning Fund Balance 1,086,369$ Ending Fund Balance 609,797$ Fiscal Year 2022-2023 Community Center Fund Fund Summary FY 2022 FY 2022 FY 2023 Variance with Variance with Budget Projected Budget Budget ($) Budget (%) Revenues and Other Sources Local Sales Tax 2,932,798 3,430,364 3,477,236 544,438 18.6% Charges for Services 4,339,367 5,396,499 4,868,049 528,682 12.2% Miscellaneous 126,100 177,981 162,050 35,950 28.5% Total 7,398,265$ 9,004,844$ 8,507,335$ 1,109,070$ 15.0% Expenditures and Other Uses Personnel 875,291 891,376 916,806 41,515 4.7% Operations & Maintenance 4,761,868 4,508,552 5,296,236 534,368 11.2% Equipment Leases 150,950 173,082 202,682 51,732 34.3% Capital Outlay 132,500 132,500 2,666,700 2,534,200 1912.6% Transfer to Debt Service Fund 1,868,519 315,658 2,028,066 159,547 8.5% Total 7,789,128$ 6,021,168$ 11,110,490$ 3,321,362$ 42.6% Increase/(Decrease) (390,863)$ 2,983,676$ (2,603,155)$ Beginning Fund Balance 5,660,469$ Ending Fund Balance 3,057,314$ Fiscal Year 2022-2023 Capital Fund Fund Summary FY 2022 FY 2022 FY 2023 Variance with Variance with Budget Projected Budget Budget ($) Budget (%) Revenues and Other Sources Transfer from General Fund 5,216,277 5,216,277 13,500,000 8,283,723 158.8% State Grants - - 420,000 420,000 0.0% Bond Proceeds 25,000,000 25,367,224 - (25,000,000) -100.0% Miscellaneous 50,000 255,227 225,000 175,000 350.0% Vehicle Reserves 741,010 741,010 820,010 79,000 10.7% Total 31,007,287$ 31,579,738$ 14,965,010$ 8,957,723 149.1% Expenditures and Other Uses Personnel 215,146 111,824 261,962 46,816 21.8% Capital Outlay 32,864,456 5,379,649 28,673,613 (4,190,843) -12.8% Total 33,079,602$ 5,491,473$ 28,935,575$ 22,549,085 353.1% Increase/(Decrease) (2,072,315)$ 26,088,265$ (13,970,565)$ Beginning Fund Balance 28,592,293 Ending Fund Balance 14,621,728$ Fiscal Year 2022-2023 PAG/RTA Fund Fund Summary FY 2022 FY 2022 FY 2023 Variance with Variance with Budget Projected Budget Budget ($) Budget (%) Revenues and Other Sources State Grants 675,000 - 796,574 121,574 18.0% Charges for Services 28,125 28,125 28,125 - 0.0% Miscellaneous - 1,000 - - 0.0% Total 703,125$ 29,125$ 824,699$ 121,574 17.3% Expenditures and Other Uses Operations & Maintenance 100,000 - 200,000 100,000 100.0% Capital Outlay 1,375,000 354,425 1,108,574 (266,426) -19.4% Total 1,475,000$ 354,425$ 1,308,574$ (166,426) -11.3% Increase/(Decrease) (771,875) (325,300) (483,875) Beginning Fund Balance 923,318$ Ending Fund Balance 439,443$ Fiscal Year 2022-2023 Townwide Roadway Development Impact Fee Fund Fund Summary FY 2022 FY 2022 FY 2023 Variance with Variance with Budget Projected Budget Budget ($) Budget (%) Revenues and Other Sources Interest Income 30,000 3,000 4,000 (26,000) -86.7% Impact Fees 327,190 378,494 388,300 61,110 18.7% Total 357,190$ 381,494$ 392,300$ 35,110$ 9.8% Expenditures and Other Uses Operations & Maintenance - - 15,000 15,000 0.0% Capital Outlay 200,000 46,905 750,000 550,000 275.0% Total 200,000$ 46,905$ 765,000$ 565,000$ 282.5% Increase/(Decrease) 157,190$ 334,589$ (372,700)$ Beginning Fund Balance 2,313,467$ Ending Fund Balance 1,940,767$ Fiscal Year 2022-2023 Water Utility Fund Fund Summary FY 2022 FY 2022 FY 2023 Variance with Variance with Budget Projected Budget Budget ($) Budget (%) Revenues and Other Sources Charges for Services 3,255,000 3,112,299 3,224,000 (31,000) -1.0% Interest Income 100,000 40,000 100,000 - 0.0% Miscellaneous - 663,389 - - 0.0% Water Sales 13,974,000 13,913,500 15,383,000 1,409,000 10.1% Transfer from Grants Fund - - 5,378,000 5,378,000 0.0% Total 17,329,000$ 17,729,188$ 24,085,000$ 6,756,000 39.0% Expenses and Other Uses Personnel 3,662,217 3,662,217 3,624,465 (37,752) -1.0% Operations & Maintenance 12,181,862 12,181,862 13,419,261 1,237,399 10.2% Capital Outlay 1,751,650 1,643,500 2,074,290 322,640 18.4% Debt Service 4,932,909 4,932,909 4,643,255 (289,654) -5.9% Transfer to Debt Service Fund 2,402 2,402 2,440 38 1.6% Transfer to Impact Fee Fund 1,760,000 1,760,000 660,000 (1,100,000) -62.5% Total 24,291,040$ 24,182,890$ 24,423,711$ 122,671 0.5% Cash Total * 20,757,040$ 20,648,890$ 20,689,711$ (77,329) -0.4% Increase/(Decrease) (3,428,040)$ (2,919,702)$ 3,395,289$ Beginning Fund Balance 10,320,708 Ending Fund Balance 13,715,997$ * Total expenses less non-cash outlays for depreciation & amortization Fiscal Year 2022-2023 Stormwater Utility Fund Fund Summary FY 2022 FY 2022 FY 2023 Variance with Variance with Budget Projected Budget Budget ($) Budget (%) Revenues and Other Sources Charges for Services 1,440,100 1,476,130 1,492,500 52,400 3.6% State Grants 300,000 16,906 - (300,000) -100.0% Interest Income 1,500 2,000 1,500 - 0.0% Total 1,741,600$ 1,495,036$ 1,494,000$ (247,600) -14.2% Expenses and Other Uses Personnel 862,098 859,402 820,287 (41,811) -4.8% Operations & Maintenance 617,935 617,935 573,245 (44,690) -7.2% Capital Outlay 857,374 18,000 884,513 27,139 3.2% Total 2,337,407$ 1,495,337$ 2,278,045$ (59,362) -2.5% Cash Total * 2,160,407$ 1,318,337$ 2,101,045$ (59,362) -2.7% Increase/(Decrease) (418,807)$ 176,699$ (607,045)$ Beginning Fund Balance 1,178,438 Ending Fund Balance 571,393$ * Total expenses less non-cash outlays for depreciation & amortization Fiscal Year 2022-2023 Water Resource and System Development Impact Fee Fund Fund Summary FY 2022 FY 2022 FY 2023 Variance with Variance with Budget Projected Budget Budget ($) Budget (%) Revenues and Other Sources Impact Fees 2,059,396 1,207,865 1,101,346 (958,050) -46.5% Interest Income 200,000 115,000 150,000 (50,000) -25.0% Transfer From Water Utility Fund 1,760,000 1,760,000 660,000 (1,100,000) -62.5% Total 4,019,396$ 3,082,865$ 1,911,346$ (2,108,050)$ -52.4% Expenditures and Other Uses Operations & Maintenance 150,000 150,000 214,000 64,000 42.7% Debt Service 359,369 359,369 337,317 (22,052) -6.1% Capital Outlay 6,150,000 2,264,312 2,735,688 (3,414,312) -55.5% Total 6,659,369$ 2,773,681$ 3,287,005$ (3,372,364)$ -50.6% Increase/(Decrease) (2,639,973)$ 309,184$ (1,375,659)$ Beginning Fund Balance 19,053,822$ Ending Fund Balance 17,678,163$ Town of Oro Valley 10-Year Capital Improvement Program - Tentative BudgetCIP Project Listing by Funding Source Fiscal Year* Denotes a project with caryforward funding from the prior yearFY 22/23 FY 23/24 FY 24/25 FY 25/26 FY 26/27 FY 27/28 FY 28/29 FY 29/30 FY 30/31 FY 31/32 Grand TotalGeneral Fund1,002,625 450,000 491,197 476,890 213,138 206,930 200,903 195,052 189,371 285,000 3,711,106Facility Maintenance Program 463,000 450,000 491,197 476,890 213,138 206,930 200,903 195,052 189,371 285,0003,171,481Westward Look Drive Improvements* 539,625539,625Highway Fund2,562,000 2,880,000 4,775,000 4,323,000 4,684,000 2,147,000 2,212,000 2,280,000 2,348,000 2,419,000 30,630,000First Avenue Mill /Overlay (CDO Bridge to Tangerine Rd.) 1,695,0001,695,000Illuminated Street Signs60,50060,500La Cañada Mill/Overlay (Tangerine Rd to Moore Rd) 712,000712,000La Cañada Bridge Deck Repair2,300,0002,300,000La Cañada Drive (CDO Bridge to Lambert Lane) 526,000526,000La Cañada Drive Phase III (Naranja Dr. to Tangerine Rd.) 678,000678,000Lambert Lane Reconstruction (La Cholla to west Town Limits) 388,000388,000Pavement Preservation - Roadways 1,850,000 1,905,500 1,964,000 2,023,000 2,084,000 2,147,000 2,212,000 2,280,000 2,348,000 2,419,00021,232,500Sun City Light Circuit (last circuit)438,000438,000Tangerine Road Mill/Overlay (La Cañada Dr. to Oracle Rd.)2,600,0002,600,000Community Center Fund 2,426,200 1,364,500 345,000 511,500 100,000 1,350,000 100,000 3,100,000 4,700,000 220,000 14,217,200Artificial Turf Installation at Community Center Entrance 82,50082,500Canada Golf Course Cart Path Repaving 300,000300,000CC Men's Jacuzzi to Outdoor Accessed Restroom 30,000 150,000180,000Community Center Fire Alarm System Upgrade 25,000 270,000295,000Community Center flat roof surface replacement1,600,0001,600,000Conquistador Golf Course Cart Path Repaving 276,000276,000Conquistador Greens and Driving Range Floor Re-Grassing 95,00095,000CRC ADA Improvements 750,000750,000CRC Pool Deck and Equipment Renovation100,000100,000CRC Renovation and Construction600,000 3,000,000 3,000,0006,600,000Equipment Replacement (Golf Maintenance) 159,000 192,000 145,000 81,500577,500Improved Landscape and Gathering Area at Aquatic Center330,000330,000Life Cycle Equipment Replacement CRC 150,000150,000Life Cycle Replacement (Bunkers and Turf Reduction) 105,000 105,000210,000Pusch Ridge Course Investments 75,00075,000Pusch Ridge Facility ADA and Code Compliance 142,000 140,000282,000Pusch Ridge Facility Roof Resurface and Roof Drain Repair 110,000110,000Pusch Ridge Golf Cart Path Resurfacing 75,00075,000Pusch Ridge Tennis Court Lighting Replacement300,000300,000Pusch Ridge Tennis Court Resurfacing 120,000120,000240,000Pusch Ridge Tennis Landscape Improvements250,000250,000Pusch Ridge Tennis Renovations Bleachers/Pad/Storage 100,000100,000Vehicle Replacement Program* 39,20039,200Vistoso Trails Nature Preserve Safety Improvements 350,000 50,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,0001,200,000Capital Fund28,395,113 14,140,417 9,984,030 20,140,330 21,948,355 5,216,941 3,034,225 4,029,647 3,731,946 3,347,165 113,968,170680 Admin Building Remodel* 121,752121,752680 Maintenance Yard Back-up Generator 155,000155,000680 Renovation for removal of Fleet and Ops - adding P&R220,000220,000Admin Restroom ADA Remodel170,000170,000Administration Building Efficiency Renovation 500,000500,000CC Parking Lot Reconstruction & Expansion 200,000 1,200,0001,400,000Community Center Elevator 750,000750,000Community Center Tennis / Pickleball Court Improvements 2,200,0002,200,000Coronado K-8 Restroom Amphi Partnership 150,000150,000Equipment Replacement Program 175,000 255,000 648,000 289,500 260,500 368,000 418,500 403,000 204,000 178,5003,200,000Future Police Station4,000,000 18,000,000 18,000,00040,000,000Golf Course Irrigation Phase 1 (Conquistador Course) 4,055,5254,055,525Golf Course Irrigation Phase 2 (La Cañada Course) 2,350,000 2,000,0004,350,000Greenock Trail Improvements 56,00056,000 Town of Oro Valley 10-Year Capital Improvement Program - Tentative BudgetCIP Project Listing by Funding Source Fiscal Year* Denotes a project with caryforward funding from the prior yearFY 22/23 FY 23/24 FY 24/25 FY 25/26 FY 26/27 FY 27/28 FY 28/29 FY 29/30 FY 30/31 FY 31/32 Grand TotalCapital Fund (continued)James D Kreigh Park Improvements* 21,50021,500James D Kriegh Park - Egleston Road Connection Parking lot60,000 750,000810,000James D Kriegh Park - Field Lighting Replacement 1,000,0001,000,000James D Kriegh Park - North Area Improvements78,000 975,0001,053,000James D Kriegh Park - North Parking Lot Improvements375,000375,000James D Kriegh Park - Racquetball/Basketball Court Conversion22,800 285,000 250,000557,800MOC Decommissioning50,00050,000MOC Water and Transit flat roof surface replacement70,00070,000MUP – Phase I - La Cañada Dr. (Lambert Lane to Naranja Dr) 1,300,0001,300,000MUP – Phase II - Naranja Dr. (La Cañada Dr to Naranja Park entrance) 50,000 950,0001,000,000MUP - Phase III – Alignment (CDO wash to James D. Kriegh Park) 1,500,0001,500,000MUP Big Wash Trailhead Improvements250,000250,000Naranja Park Archery Range - Paved Parking, Lights, Landscape44,000 550,000594,000Naranja Park Entry Site Improvements36,000 450,000486,000Naranja Park Master Plan Implementation 10,000,000 5,000,00015,000,000Network Storage50,000 50,000 50,000150,000OVAC Competition Equipment Replacement 136,000136,000OVAC Diving Board and Dive Block Replacement136,000136,000OVAC Olympic Pool Heater Replacement500,000500,000OVAC Pool Replastering200,000200,000OVAC Pump Room Upgrades 710,000710,000Park system sidewalk repair and ADA required improvements 100,000100,000Pavement Preservation - Non Roadways 97,000 99,910 102,907 105,995 109,174 112,450 115,823 119,298 122,877 126,5631,111,996PD Full Spectrum Imaging System (FSIS)90,00090,000Permitting Software Replacement* 111,787111,787Phone System Refresh 300,000300,000600,000Proctor/Lieber House Renovation1,500,0001,500,000Public Works Operations Laydown Yard 325,000325,000Riverfront Park - Field Lighting Replacement1,000,0001,000,000Riverfront Park - Parking Lot Expansion60,000 750,000810,000Riverfront Park - Playground Renovation500,000500,000Riverfront Park - ramada over sports courts22,000 275,000297,000Riverfront Park - Sports Lighting1,000,0001,000,000Server OS Refresh60,000 60,000120,000Shannon Road Pavement Reconstruct and Overlay 791,000791,000Staff Learning Management System (LMS) 100,000100,000Steam Pump Ranch - New Northern Entry by Panhandle Stables/Event Space1,500,0001,500,000Steam Pump Ranch - Tack Building50,000 500,000550,000Steam Pump Ranch ADA Walkways and Patio 120,000120,000Steam Pump Ranch BBQ & Bunk House Renovations* 512,500512,500Steam Pump Ranch Garage* 909,192909,192Steam Pump Ranch Park Site Lighting 75,000 750,000825,000Steam Pump Ranch Pool Demo and landscape Restoration 50,00050,000Town Court Expansion 200,000 2,200,0002,400,000Town Hall Data Center Migration* 180,631180,631Town Hall Emergency Generator Replacements* 569,900569,900Townwide IT Security Enhancements 50,000 50,000100,000Traffic Camera Video Recording System 60,00060,000Upgrade Desktop Operating Systems 200,000 200,000400,000Upgrade of the Existing Farmer's Market Structure 100,000100,000Vehicle Replacement Program* 1,607,326 1,220,507 1,257,122 1,294,836 1,333,681 1,373,691 1,414,902 1,457,349 1,501,070 1,546,10214,006,586 Town of Oro Valley 10-Year Capital Improvement Program - Tentative BudgetCIP Project Listing by Funding Source Fiscal Year* Denotes a project with caryforward funding from the prior yearFY 22/23 FY 23/24 FY 24/25 FY 25/26 FY 26/27 FY 27/28 FY 28/29 FY 29/30 FY 30/31 FY 31/32 Grand TotalPAG/RTA1,096,574 2,000,000 2,700,000 19,572,000 17,246,000 15,303,000 8,015,000 65,932,574First Avenue Bridge Deck Repair2,000,0002,000,000HAWK Signalized Crossing from Naranja Drive at IRHS 400,000400,000Lambert Lane Widening ( Shannon Rd to Rancho Sonora Dr)17,246,00017,246,000Linda Vista Blvd Safety (Calle Buena Vista to Oracle Rd)3,121,0003,121,000Moore Road Widen (La Cholla Blvd to La Cañada Drive)9,417,0009,417,000Naranja Dr. Widening ( La Cholla Bl. to 1st Ave.)3,394,0003,394,000Naranja Drive II Widening (Shannon Rd to Ironwood Ridge High School)6,788,0006,788,000Palisades Road Widening (1st Ave to 1 mile east)5,886,0005,886,000Rancho Vistoso Blvd Bridge Deck Repair2,700,0002,700,000Rancho Vistoso Blvd Mill/Overlay (Moore Rd to Tangerine Rd)1,500,0001,500,000RTA Wildlife Fencing* 621,574621,574Shannon Road Widening - Lambert Lane to Tangerine Road12,784,00012,784,000Transportation Art by Youth (TABY) Grant* 75,00075,000Impact Fee/ GPF2,735,688 4,600,000 11,700,000 7,450,000 3,000,000 200,000 1,000,000 30,685,688Forebay reservoir at Shannon & Naranja 775,000 725,0001,500,000La Canada Booster Station Expansion* 200,000 2,000,0002,200,000La Posada Replacement Well* 585,688585,688NWRRDS Booster Station Construction (2,500 gpm = 4000 acft / year) 775,000 775,0001,550,000NWRRDS D-Zone Blending Water Interconnection to Shannon 50,000 200,000250,000NWRRDS E-Zone interconnect to Tangerine 500,000 300,000800,000NWRRDS E-Zone interconnection to Naranja 400,000 100,000500,000NWRRDS Forebay, reservoir construction3,000,000 1,000,0004,000,000NWRRDS Pipeline construction (recovered water & Transmission) 2,100,000 1,050,000 1,000,0004,150,000Pipeline Construction (NWRRDS Booster Station to La Canada Reservoir) 4,000,000 4,000,000 2,000,00010,000,000Shannon Road Boosters NWRRDS OVWU 50,000 1,000,000 1,000,0002,050,000Steam Pump Well Drill and Construction* 300,000300,000Water Plant 14 Booster Capacity Expansion (Design/Construction)200,000 1,000,0001,200,000Well Equipping, TRICO power to sites and associated tasks 1,200,000 400,0001,600,000Roadway Impact Fee Fund 750,000 5,100,000 17,280,000 750,000 23,880,000Lambert Ln, 0.5 mi. E of Shannon-Rancho Sonora17,280,00017,280,000Moore Rd La Cholla Blvd Intersection900,000900,000Oracle Rd & Rams Field Intersection750,000750,000Rancho Vistoso & Woodburne Intersection 750,000750,000Shannon Rd, Tangerine Rd-Naranja Dr4,200,0004,200,000Water Utility Fund 2,066,790 1,566,050 1,817,132 1,558,245 1,679,393 2,445,575 2,486,792 2,508,046 1,949,337 1,950,667 20,028,026ADC Truck and Trailer 85,00085,000Booster Station HP Tank Replacement 150,000 150,000 150,000 150,000 150,000 150,000 150,000 150,000 150,000 150,0001,500,000Booster Station Rehabilitation 200,000 200,000 400,000 50,000 50,000 250,000 250,000 250,000 250,000 250,0002,150,000El Con/El Camino Diestro main and valve replacement* 250,000250,000Instrumentation Replacement 200,000 200,000 200,000 500,000 500,000 700,000 700,000 700,000 700,000 700,0005,100,000Palisades Area Supply Redundancy 50,000 250,000 250,000550,000Reservoir Relining200,000 200,000 200,000 200,000 200,000 225,000 225,000 225,000 225,000 225,0002,125,000SCADA Equipment IT 300,000300,000Utility Billing Software* 18,64018,640Vehicle Replacement Program* 35,000 116,050 77,132 118,245 139,393 80,575 121,792 143,046 84,337 85,6671,001,236Water Control System Operations New Vehicle 70,00070,000Water Meters- New Connections (based on 210 meters per year) 208,150 150,000 150,000 150,000 150,000 150,000 150,000 150,000 150,000 150,0001,558,150Well D-8 Replacement (Design/Permit/Construction/ Equipping)100,000 500,000 500,000 500,0001,600,000Well HP Tank Replacement (1 Tank per year) 150,000 150,000 170,000 170,000 170,000 170,000 170,000 170,000 170,000 170,0001,660,000Well Rehabilitation (2 wells per year) 150,000 150,000 220,000 220,000 220,000 220,000 220,000 220,000 220,000 220,0002,060,000 Town of Oro Valley 10-Year Capital Improvement Program - Tentative BudgetCIP Project Listing by Funding Source Fiscal Year* Denotes a project with caryforward funding from the prior yearFY 22/23 FY 23/24 FY 24/25 FY 25/26 FY 26/27 FY 27/28 FY 28/29 FY 29/30 FY 30/31 FY 31/32 Grand TotalStormwater Utility Fund660,513 569,865 386,445 100,000 1,716,823Catalina Ridge Drainage Improvements 149,513149,513Pomegranate Drive - Drainage Improvement and Roadway Stabilization 183,420183,420Sierra Wash @ Glover Road Culvert and Apron Rehabilitation386,445386,445Sierra Wash @ Via Mandarina Culvert and Apron Rehabilitation 386,445386,445Sierra Wash Drainage Improvements* 511,000511,000Town-Wide Drainage Study100,000100,000Grants Fund3,386,3093,386,309ABDG Fiber Project 3,310,0003,310,000TripSpark Passenger Portal Enhancement 76,30976,309Grand Total45,081,812 25,000,967 31,682,223 34,846,411 34,324,886 36,238,446 43,659,920 12,862,744 28,221,654 16,236,832 308,155,896 Town of Oro Valley Table of Contents Fiscal year 2023 Resolution for the adoption of the budget Schedule A—Summary Schedule of estimated revenues and expenditures/expenses Schedule B—Tax levy and tax rate information Schedule G—Full-time employees and personnel compensation Schedule C—Revenues other than property taxes Schedule D—Other financing sources/(uses) and interfund transfers Schedule E—Expenditures/expenses by fund Schedule F—Expenditures/expenses by department (as applicable) 3/22 Arizona Auditor General Official City/Town Budget Forms Fiscal yearGeneral FundSpecial Revenue Fund Debt Service FundCapital Projects Fund Permanent FundEnterprise Funds AvailableInternal Service Funds Total all funds2022 Adopted/adjusted budgeted expenditures/expenses* E158,852,580 12,863,384 21,325,445 42,515,738 - 21,905,045 4,494,317 161,956,509 2022 Actual expenditures/expenses** E252,867,501 9,989,273 19,498,251 8,666,484 - 20,204,825 3,792,996 115,019,330 2023Beginning fund balance/(deficit) or net position/(deficit) at July 1*** 326,364,371 6,912,989 163,661 51,464,177 - 11,499,146 2,404,515 98,808,859 2023 Primary property tax levyB4- - - - - - - 2023 Secondary property tax levy B5- - - - - - - 2023 Estimated revenues other than property taxes C650,738,991 22,993,532 130,588 4,160,075 - 20,201,000 3,764,477 101,988,663 2023 Other financing sources D7- - - - - - - - 2023 Other financing (uses) D8- - - - - - - - 2023 Interfund transfers in D9- 898,012 4,200,971 14,160,000 - 5,378,000 - 24,636,983 2023 Interfund Transfers (out) D1016,446,977 7,406,066 - 121,500 - 662,440 - 24,636,983 2023Line 11: Reduction for fund balance reserved for future budget year expenditures Maintained for future debt retirement Maintained for future capital projects Maintained for future financial stability2023 Total financial resources available1260,656,385 23,398,467 4,495,220 69,662,752 - 36,415,706 6,168,992 200,797,522 2023Budgeted expenditures/expensesE1353,124,046 22,963,155 4,441,059 40,033,234 - 22,878,316 4,264,477 147,704,287 Expenditure limitation comparison2022 20231Budgeted expenditures/expenses161,956,509$ 147,704,287$ 2Add/subtract: estimated net reconciling items3Budgeted expenditures/expenses adjusted for reconciling items 161,956,509 147,704,287 4Less: estimated exclusions5Amount subject to the expenditure limitation161,956,509$ 147,704,287$ 6EEC expenditure limitation$ $ X******Town of Oro ValleySummary Schedule of estimated revenues and expenditures/expensesFiscal year 2023Includes actual amounts as of the date the proposed budget was prepared, adjusted for estimated activity for the remainder of the fiscal year.Amounts on this line represent beginning fund balance/(deficit) or net position/(deficit) amounts except for nonspendable amounts (e.g., prepaids and inventories) or amounts legally or contractually required to be maintained intact (e.g., principal of a permanent fund).SchFundsIncludes expenditure/expense adjustments approved in the current year from Schedule E. The city/town does not levy property taxes and does not have special assessment districts for which property taxes are levied. Therefore, Schedule B has been omitted.113/22 Arizona Auditor GeneralSchedule AOfficial City/Town Budget Forms Estimated revenues Actual revenues* Estimated revenues 2022 2022 2023 General Fund Local taxes Local Sales Tax $ 20,542,707 $ 25,320,335 $ 24,505,959 Cable Franchise Tax 615,000 750,000 765,000 Licenses and permits Licenses 202,500 205,000 202,500 Permits 1,489,000 1,862,500 1,863,824 Fees 157,500 130,000 157,500 Intergovernmental State/County Shared 13,729,923 14,271,621 17,605,693 State Grants 75,000 75,000 75,000 Federal Grants 5,990,290 6,068,448 380,000 Reimbursements 1,249,500 1,314,700 1,613,000 Other 95,000 50,000 Charges for services Reimbursements 157,400 155,350 194,400 Fees 854,285 952,280 1,012,932 Other 1,376,091 1,407,103 1,839,183 Fines and forfeits Fines 125,000 125,000 125,000 Interest on investments Interest Income 150,000 150,000 150,000 Miscellaneous Miscellaneous 264,000 248,825 249,000 Total General Fund $ 47,073,196 $ 53,086,162 $ 50,738,991 * Town of Oro Valley Revenues other than property taxes Fiscal Year 2023 Includes actual revenues recognized on the modified accrual or accrual basis as of the date the proposed budget was prepared, plus estimated revenues for the remainder of the fiscal year. Source of revenues 3/22 Arizona Auditor General Schedule C Official City/Town Budget Forms Estimated revenues Actual revenues* Estimated revenues 2022 2022 2023 Town of Oro Valley Revenues other than property taxes Fiscal Year 2023 Source of revenues Special revenue funds Highway User Revenue Fund Highway User Fuel Tax $ 3,614,922 $ 3,870,000 $ 4,127,100 Permits 25,000 30,000 25,000 Interest Income 6,000 8,000 8,000 Other 2,000 5,069 3,000 $ 3,647,922 $ 3,913,069 $ 4,163,100 Grants and Contributions Fund Federal Grants $ 312,250 $ 383,519 $ 8,542,000 State Grants 142,000 158,000 179,047 Interest Income 45 50 Miscellaneous 1,500,000 1,500,000 $ 1,954,250 $ 541,564 $ 10,221,097 Services and Forfeitures Seizures and Forfeitures $ 325,000 $ 21,801 $ 100,000 Interest Income 2,000 1,000 2,000 $ 327,000 $ 22,801 $ 102,000 Community Center Fund Local Sales Tax $ 2,932,798 $ 3,430,364 $ 3,477,236 Charges for Services 4,339,467 5,396,499 4,868,049 Other 126,000 177,981 162,050 $ 7,398,265 $ 9,004,844 $ 8,507,335 Total special revenue funds $ 13,327,437 $ 13,482,278 $ 22,993,532 * Includes actual revenues recognized on the modified accrual or accrual basis as of the date the proposed budget was prepared, plus estimated revenues for the remainder of the fiscal year. 3/22 Arizona Auditor General Schedule C Official City/Town Budget Forms Estimated revenues Actual revenues* Estimated revenues 2022 2022 2023 Town of Oro Valley Revenues other than property taxes Fiscal Year 2023 Source of revenues Debt service funds Municipal Debt Service Fund Federal Grants $ 34,787 $ 34,787 $ 30,088 Interest Income 5,000 100 500 Miscellaneous 100,000 100,000 100,000 $ 139,787 $ 134,887 $ 130,588 Oracle Road Improvement District Special Assessments $ $ 15 $ $$15$ Total debt service funds $ 139,787 $ 134,902 $ 130,588 Capital projects funds Water Rescources Development Impact Fee Fund Development Impact Fees $ 2,059,396 $ 1,207,865 $ 1,101,346 Interest Income 200,000 115,000 150,000 $ 2,259,396 $ 1,322,865 $ 1,251,346 Townwide Roadway Development Impact Fee Fund Development Impact Fees $ 327,190 $ 378,585 $ 388,300 Interest Income 30,000 3,000 4,000 $ 357,190 $ 381,585 $ 392,300 Parks and Recreation Impact Fee Fund Development Impact Fees $ 280,442 $ 139,528 $ 165,520 Interest Income 5,000 1,500 3,000 $ 285,442 $ 141,028 $ 168,520 Police Impact Fee Fund Development Impact Fees $ 82,925 $ 55,530 $ 57,700 Interest Income 500 500 500 $ 83,425 $ 56,030 $ 58,200 Capital Fund Miscellaneous $ 791,010 $ 996,237 $ 1,045,010 State Grants 420,000 $ 791,010 $ 996,237 $ 1,465,010 PAG/RTA Fund State Grants $ 675,000 $ $ 796,574 Other 28,125 28,125 28,125 Interest Income 1,000 $ 703,125 $ 29,125 $ 824,699 Recreation in Lieu Fee Fund Miscellaneous $ $ 150 $ $ $ 150 $ Total capital projects funds $ 4,479,588 $ 2,927,020 $ 4,160,075 * Includes actual revenues recognized on the modified accrual or accrual basis as of the date the proposed budget was prepared, plus estimated revenues for the remainder of the fiscal year. 3/22 Arizona Auditor General Schedule C Official City/Town Budget Forms Estimated revenues Actual revenues* Estimated revenues 2022 2022 2023 Town of Oro Valley Revenues other than property taxes Fiscal Year 2023 Source of revenues Enterprise funds Water Utility Fund Water Sales $ 13,974,000 $ 13,913,500 $ 15,383,000 Charges for Services 3,255,000 3,112,299 3,224,000 Interest Income 100,000 40,000 100,000 Miscellaneous 663,389 $ 17,329,000 $ 17,729,188 $ 18,707,000 Stormwater Utility Fund Charges for Services $ 1,440,100 $ 1,476,130 $ 1,492,500 Interest Income 1,500 2,000 1,500 State Grants 300,000 16,906 Miscellaneous $ 1,741,600 $ 1,495,036 $ 1,494,000 Total enterprise funds $ 19,070,600 $ 19,224,224 $ 20,201,000 * Includes actual revenues recognized on the modified accrual or accrual basis as of the date the proposed budget was prepared, plus estimated revenues for the remainder of the fiscal year. 3/22 Arizona Auditor General Schedule C Official City/Town Budget Forms Estimated revenues Actual revenues* Estimated revenues 2022 2022 2023 Town of Oro Valley Revenues other than property taxes Fiscal Year 2023 Source of revenues Internal service funds Benefit Self Insurance Fund Interest Income $ $ 5,000 $ 5,000 Miscellaneous 3,994,317 3,813,492 3,759,477 $ 3,994,317 $ 3,818,492 $ 3,764,477 Total internal service funds $ 3,994,317 $ 3,818,492 $ 3,764,477 Total all funds $ 88,084,925 $ 92,673,078 $ 101,988,663 * Includes actual revenues recognized on the modified accrual or accrual basis as of the date the proposed budget was prepared, plus estimated revenues for the remainder of the fiscal year. 3/22 Arizona Auditor General Schedule C Official City/Town Budget Forms Fund Sources (Uses)In (Out) General Fund Transfer to Capital Fund $ $ $ $ 13,500,000 Transfer to Grants Fund 898,012 Transfer to Debt Service Fund 2,048,965 Total General Fund $ $ $ $ 16,446,977 Special revenue funds Grants and Contributions Fund $ $ $ 898,012 $ 5,378,000 Community Center Fund 2,028,066 Total special revenue funds $ $ $ 898,012 $ 7,406,066 Debt service funds Municipal Debt Service Fund $ $ $ 4,200,971 $ Total debt service funds $ $ $ 4,200,971 $ Capital projects funds Water Resource Impact Fee Fund $ $ $ 660,000 $ Police Impact Fee Fund 121,500 Capital Fund 13,500,000 Total capital projects funds $ $ $ 14,160,000 $ 121,500 Enterprise funds Water Utility Fund $ $ $ 5,378,000 $ 662,440 Total enterprise funds $ $ $ 5,378,000 $ 662,440 Total all funds $ $ $ 24,636,983 $ 24,636,983 2023 2023 Town of Oro Valley Other financing sources/(uses) and interfund transfers Fiscal year 2023 Other financing Interfund transfers 3/22 Arizona Auditor General Schedule D Official City/Town Budget Forms Adopted budgeted expenditures/ expenses Expenditure/ expense adjustments approved Actual expenditures/ expenses* Budgeted expenditures/ expenses Fund/Department 2022 2022 2022 2023 General Fund Council $ 188,720 $ $ 188,109 $ 199,145 Clerk 383,833 380,230 420,087 Town Manager's Office 1,115,224 1,107,750 1,151,222 Human Resources 535,390 472,390 569,112 Finance 979,655 944,743 1,102,115 Innovation & Technology 4,346,583 4,273,811 4,782,971 General Administration 14,459,559 14,079,934 4,276,177 Legal 902,754 883,661 1,011,342 Community & Economic Development 3,044,614 2,974,807 3,256,140 Parks & Recreation 3,446,361 3,423,479 3,762,492 Police 18,171,000 17,806,223 20,365,331 Town Court 914,796 792,786 1,053,081 Public Works 5,364,091 5,539,578 6,174,831 Contingency Reserve 5,000,000 5,000,000 Total General Fund $ 58,852,580 $ $ 52,867,501 $ 53,124,046 Special revenue funds Highway User Revenue Fund $ 4,290,525 $ $ 4,069,678 $ 4,839,672 Grants and Contributions Fund 2,054,250 90,625 5,841,059 Seizures and Forfeitures 348,000 123,460 200,000 Community Center Fund 6,170,609 5,705,510 12,082,424 Total special revenue funds $ 12,863,384 $ $ 9,989,273 $ 22,963,155 Debt service funds Municipal Debt Service Fund $ 21,325,445 $ $ 19,498,236 $ 4,441,059 Oracle Rd. Improvement District Fund 15 Total debt service funds $ 21,325,445 $ $ 19,498,251 $ 4,441,059 Capital projects funds Water Resources Dev Impact Fee Fund $ 6,909,369 $ $ 2,773,681 $ 3,537,005 Townwide Roadway Impact Fee Fund 450,000 46,905 1,015,000 Parks and Recreation Impact Fee Fund 285,442 168,520 Police Impact Fee Fund 50,000 52,000 Recreation in Lieu Fee Fund 16,325 16,560 Capital Fund 33,329,602 5,491,473 33,935,575 PAG/RTA Fund 1,475,000 354,425 1,308,574 Total capital projects funds $ 42,515,738 $ $ 8,666,484 $ 40,033,234 Enterprise funds Water Utility Enterprise Fund $ 19,494,638 $ $ 18,886,488 $ 20,527,271 Stormwater Utility Enterprise Fund 2,410,407 1,318,337 2,351,045 Total enterprise funds $ 21,905,045 $ $ 20,204,825 $ 22,878,316 Internal service funds Benefit Self Insurance Fund $ 4,494,317 $ $ 3,792,996 $ 4,264,477 Total internal service funds $ 4,494,317 $ $ 3,792,996 $ 4,264,477 Total all funds $ 161,956,509 $ $ 115,019,330 $ 147,704,287 * Expenditures/expenses by fund Fiscal year 2023 Town of Oro Valley Includes actual expenditures/expenses recognized on the modified accrual or accrual basis as of the date the proposed budget was prepared, plus estimated expenditures/expenses for the remainder of the fiscal year. 3/22 Arizona Auditor General Schedule E Official City/Town Budget Forms Adopted budgeted expenditures/ expenses Expenditure/ expense adjustments approved Actual expenditures/ expenses* Budgeted expenditures/ expenses 2022 2022 2022 2023 Council General Fund $ 188,720 $ $ 188,109 $ 199,145 Department total $ 188,720 $ $ 188,109 $ 199,145 Clerk General Fund $ 383,833 $ $ 380,230 $ 420,087 Department total $ 383,833 $ $ 380,230 $ 420,087 Town Manager General Fund $ 1,115,224 $ $ 1,107,750 $ 1,151,222 Department total $ 1,115,224 $ $ 1,107,750 $ 1,151,222 Human Resources General Fund $ 535,390 $ $ 472,390 $ 569,112 Department total $ 535,390 $ $ 472,390 $ 569,112 Finance General Fund $ 979,655 $ $ 944,743 $ 1,102,115 Department total $ 979,655 $ $ 944,743 $ 1,102,115 Innovation and Technology General Fund $ 4,346,583 $ $ 4,273,811 $ 4,782,971 Department total $ 4,346,583 $ $ 4,273,811 $ 4,782,971 GeneralAdministration General Fund $ 14,459,559 $ $ 14,079,934 $ 4,276,177 General Fund - Contingency Reserve 5,000,000 5,000,000 Grants & Contributions Fund 1,600,000 50,000 5,487,309 Municipal Debt Service Fund 21,325,445 19,498,236 4,441,059 Oracle Rd. Improvement District Fund 15 Benefits Self Insurance Fund 4,494,317 3,792,996 4,264,477 Capital Fund 33,114,456 5,379,649 33,673,613 Department total $ 79,993,777 $ $ 42,800,830 $ 57,142,635 Legal General Fund $ 902,754 $ $ 883,661 $ 1,011,342 Department total $ 902,754 $ $ 883,661 $ 1,011,342 Community and Economic Development General Fund $ 3,044,614 $ $ 2,974,807 $ 3,256,140 Department total $ 3,044,614 $ $ 2,974,807 $ 3,256,140 Parks and Recreation General Fund $ 3,446,361 $ $ 3,423,479 $ 3,762,492 Parks & Recreation Impact Fee Fund 285,442 168,520 Recreation in Lieu Fee Fund 16,325 16,560 Community Center Fund 6,170,609 5,705,510 12,082,424 Department total $ 9,918,737 $ $ 9,128,989 $ 16,029,996 Police General Fund $ 18,171,000 $ $ 17,806,223 $ 20,365,331 Grants & Contributions Fund 454,250 40,625 353,750 Seizures and Forfeitures 348,000 123,460 200,000 Police Impact Fee Fund 50,000 52,000 Department total $ 19,023,250 $ $ 17,970,308 $ 20,971,081 Town Court General Fund $ 914,796 $ $ 792,786 $ 1,053,081 Department total $ 914,796 $ $ 792,786 $ 1,053,081 Public Works General Fund $ 5,364,091 $ $ 5,539,578 $ 6,174,831 Highway Fund 4,290,525 4,069,678 4,839,672 Stormwater Utility Fund 2,410,407 1,318,337 2,351,045 PAG/RTA Fund 1,475,000 354,425 1,308,574 Townwide Roadway Impact Fee Fund 450,000 46,905 1,015,000 Capital Fund 215,146 111,824 261,962 Department total $ 14,205,169 $ $ 11,440,747 $ 15,951,084 Water Utility Water Utility Fund $ 19,494,638 $ $ 18,886,488 $ 20,527,271 Water Resources Dev Impact Fee Fund 6,909,369 2,773,681 3,537,005 Department total $ 26,404,007 $ $ 21,660,169 $ 24,064,276 * Expenditures/expenses by department Fiscal year 2023 Town of Oro Valley Includes actual expenditures/expenses recognized on the modified accrual or accrual basis as of the date the proposed budget was prepared, plus estimated expenditures/expenses for the remainder of the fiscal year. Department/Fund 3/22 Arizona Auditor General Schedule F Official City/Town Budget Forms Full-time equivalent (FTE)Employee salaries and hourly costs Retirement costs Healthcare costs Other benefit costsTotal estimated personnel compensation2023 2023 2023 2023 2023 2023328.89 $ 21,905,206 $ 5,280,911 $ 2,796,804 $ 2,343,852 $ 32,326,773Highway Fund 12.00 $ 893,303 $ 108,715 $ 96,324 $ 91,715 $ 1,190,057Community Center Fund 22.77 787,569 24,812 37,235 67,189 916,805Total special revenue funds34.77 $ 1,680,872 $ 133,527 $ 133,559 $ 158,904 $ 2,106,862Capital Fund 2.00 $ 190,000 $ 23,123 $ 34,230 $ 14,610 $ 261,963Total capital projects funds2.00 $ 190,000 $ 23,123 $ 34,230 $ 14,610 $ 261,963Water Utility Fund 40.48 $ 2,626,327 $ 317,470 $ 425,240 $ 255,428 $ 3,624,465Stormwater Utility Fund 9.73 600,129 71,340 86,533 62,285 820,287Total enterprise funds50.21 $ 3,226,456 $ 388,810 $ 511,773 $ 317,713 $ 4,444,752Total all funds415.87 $ 27,002,534 $ 5,826,371 $ 3,476,366 $ 2,835,079 $ 39,140,350FundTown of Oro ValleyFull-time employees and personnel compensationFiscal year 2023General FundSpecial revenue fundsCapital projects fundsEnterprise funds3/22 Arizona Auditor General Schedule G Official City/Towns Budget Forms FY 2022/23 Tentative Budget Adoption June 1, 2022 FY 2022/23 TENTATIVE BUDGET Tentative Budget brings forward all changes from Manager’s Recommended Budget as outlined in the Council communication, including: Updated and revised CIP budget figures Full implementation of classification and compensation study Increased budget for gasoline costs If approved, Tentative Budget establishes the overall expenditure limitation Structurally balanced budget reflects the careful allocation of available resources FY 2022/23 REVENUE SOURCES: $147.7M $45.7M, 31% $28.7M, 19% $21.7M, 15% $15.4M, 10% $12.7M, 9% $12.1M, 8% $7.2M, 5% $2.4M, 2% Use of Fund Balance Sales Taxes State Shared Revenue Water Sales Charges for Services Outside Funding Sources Miscellaneous Fines, Licenses & Permits - 10 20 30 40 50 Millions FY 2022/23 EXPENDITURE SOURCES: $147.7M $46.5M, 31.5% $41.7M, 28.3% $34.7M, 23.5% $15.5M, 10.5% $9.3M, 6.3% Capital Personnel O&M Contingency Reserves Debt Service - 10 20 30 40 50 Millions FY 2022/23 CAPITAL IMPROVEMENT PROGRAM (CIP): $45.1M $24.4M, 54% $7.2M, 16% $4.7M, 11% $4.7M, 11% $1.7M, 4% $1.5M, 3% $0.7M, 1% $0.2M, 0% - 5 10 15 20 25 30 Parks & Recreation Streets/Roads Water System Other Public Facilities Vehicle Replacement Technology Stormwater Public Safety Millions FY 2022/23 GENERAL FUND OVERVIEW $34.9M, 72.6% $11.8M, 24.5% $1.4M, 10.4% - 5 10 15 20 25 30 35 40 Personnel O&M CapitalMillionsGeneral Fund Expenditures: $48.1 Million * Excludes budgeted contingency of $5.0M $25.3M, 49.8% $17.6M, 34.7% $3M, 6% $2.2M, 4.4% $1.6M, 3.2% $1M, 1.9% 0 5 10 15 20 25 30 35 40 MillionsGeneral Fund Revenue: $50.7 Million FINAL NOTES AND NEXT STEPS Tentative Budget adoption sets the maximum spending ceiling at $147,704,287 Expenditure authority may only be reallocated or reduced Council has authority to amend budget throughout the fiscal year Publish Tentative Budget for two consecutive weeks Final Budget approval and public hearing set for June 15th regular session Questions? Town Council Regular Session 3. Meeting Date:06/01/2022 Requested by: Bayer Vella, Community and Economic Development Submitted By:Kyle Packer, Community and Economic Development Case Number: 2102029 SUBJECT: DISCUSSION AND POSSIBLE ACTION REGARDING A PROPOSED CONCEPTUAL SITE PLAN AND CONCEPTUAL LANDSCAPE PLAN FOR AN 18-UNIT RESIDENTIAL SUBDIVISION LOCATED ON THE EAST CORNER OF RANCHO VISTOSO BLVD AND MORNING VISTA DRIVE INTERSECTION (CASE NO. 2102029) RECOMMENDATION: The Planning and Zoning Commission recommends approval "with the condition agreed to by the applicant that driveways for lots 14 through 17 are to be widened, and/or the distance of the buildings to the rear property line shall be reduced to the minimum setback to better accommodate a standard vehicle." The condition above has been addressed by the applicant. EXECUTIVE SUMMARY: The applicant is proposing an 18-lot residential subdivision on approximately 3.5 acres located on the east corner of the Rancho Vistoso Blvd and Morning Vista Drive intersection as shown on the map to the right. The subject parcel is outlined in blue. The applicant is requesting approval of a Conceptual Site Plan and Conceptual Landscape Plan (Attachment 1) for this development. Key Information: The proposed subdivision includes 16 attached and 2 detached dwellings. The property is zoned Rancho Vistoso Planned Area Development (PAD) High-Density Residential (HDR), which establishes the house types as permitted uses. A minor encroachment (less than 5% of the gradable area) into the sloped area on site has been administratively approved with a meaningful trade area provided as permitted in the Rancho Vistoso PAD. The design goes beyond code requirements through the following: Provides landscaped buffer yards along the north and east perimeter to further screen it from adjacent neighbors. Provides more than the required amount of parking spaces. Reoriented lot 18 to provide more space and landscaping between it and adjacent homes. The application is in conformance with the Zoning Code, including the applicable Design Principles and Standards. The application is in conformance with the Zoning Code, including the applicable Design Principles and Standards. Although the proposed design is code compliant, the Planning and Zoning Commission had concerns with guest parking on lots 14 through 17, which have shorter driveways. Per code, the subject property requires 37 spaces and has provided 41 spaces. The Commission recommended conditional approval of the CSP and CLP "with the condition agreed to by the applicant, that driveways for lots 14 through 17 are to be widened, and/or the distance of the buildings to the rear property line shall be reduced to the minimum setback to better accommodate a standard vehicle." In response, the applicant has gone above code requirements and increased the size of the driveways for lots 14 through 17 to accommodate parallel parking, shifted the homes toward the rear property line, and added another guest space in shared common areas. Staff finds this condition has been met. BACKGROUND OR DETAILED INFORMATION: A. EXISTING CONDITIONS AND CONTEXT Land Use Context: The subject property is identified as Medium Density Residential in the Your Voice, Our Future General Plan and is zoned Rancho Vistoso PAD High-Density Residential (HDR). Attached and detached dwelling units are a permitted use on the subject parcel and the site design meets the requirements of the Zoning Code. Surrounding uses are single-family residential, HDR zoned properties to the north, east, and south, and Low-Density Residential (LDR) across Rancho Vistoso Blvd to the west. Site Conditions Total area of subject parcel: Approximately 3.5 acres Partially graded and vacant Slopes greater than 25% are present along the north-eastern portion of the property Proposed Improvements Eight attached structures and two detached structures (totaling 18 units) 18 lots and landscaped common area including a shared community pool recreation space One access point from Morning Vista Drive B. DISCUSSION/ANALYSIS An analysis of the Conceptual Design package's adherence to the Town's Design Principles, design standards, and zoning code is provided below. The focus of the Town Council during conceptual design review is on conformance with the Town Design Principles and Standards. Conceptual Site Plan The Conceptual Site Plan (Attachment 1) is for an 18-unit residential subdivision on approximately 3.5 acres. The overall design and layout of the subdivision is consistent with the Your Voice, Our Future General Plan and the Rancho Vistoso PAD. The table below provides a summary of the zoning standards: Standards Allowed Proposed Total Lots:60 18 Max. Building Height 34 feet 16 feet Perimeter Front Setback 20 feet 20 feet Building Side Setback 0-5 feet 0-5 feet Perimeter Rear Setback 5 feet 9-10 feet Open Space Per the applicable Rancho Vistoso PAD High-Density Residential standards, this subdivision must provide 30% of the gross land area as meaningful open space. The applicant is providing 31% of the site as open space through a mixture of natural open space as well as landscaped and recreational common areas. Hillside Development and Allowed Encroachment Related to the discussion of open space, staff has administratively approved the applicant's request for encroachment into a sloped area on the property. Per Rancho Vistoso PAD Section 1.3.J, development in areas in the Rancho Vistoso PAD that have naturally occurring slopes 25% and greater is generally prohibited, but limited encroachment may be allowed. As specified in the PAD (Section 1.3.J.4), minor encroachments of up to 5% of the gradable area are allowed, with a trade area, by the Planning and Zoning Administrator. The trade area provided to offset encroachments into 25% and greater sloped areas must be at least a 1:1 ratio and contain meaningful open space, here defined as open space that reduces fragmentation, has recreational value, improves overall subdivision design, or creates buffers along environmentally sensitive areas. Staff administratively approved a 4,922 square foot encroachment (3.45% of the gradable area on-site, highlighted in yellow on the figure to the right) into the protected slope on site, for which the applicant has provided a 16,271 square foot trade area (highlighted in blue on the figure to the right) with meaningful open space that reduces fragmentation and creates buffers along environmentally sensitive areas. The green area in the figure is the pre-existing slope area that is being preserved. Conceptual Site Design Principles, Section 22.9.D.5.a The Conceptual Site Plan is in conformance with applicable conceptual site design principles. Following are applicable design principles (in italics ) followed by staff analysis. Building Orientation: the location, orientation, and size of structures shall promote a complementary relationship of structures to one another. Lots have been arranged to support the privacy of existing homeowners as well as those on the project site. Lots are arranged so that no proposed rear yards face a neighboring front yard or cause privacy concerns. Lot 18 has also been separated from adjacent neighbors beyond the requirements of code. Drainage/grading: site grading shall minimize impacts on natural grade and landforms and provide for subtle transitions of architectural elements to grade. Significant cuts and fills in relation to natural grade shall be avoided or minimized to the extent practical given property constraints. The applicant has worked with Town staff to minimize the impacts on natural grade and landforms through their site design. The existing slopes are largely maintained as the applicant has focused development on the previously graded portion of the site. Lots 14 through 18 are located to minimize encroachment and preserve the drainage area. Connectivity: strengthen the usability and connectivity of the pedestrian environment internally and externally by enhancing access to the public street system, transit, adjoining development and pedestrian and bicycle transportation routes. Buildings and uses should provide access to adjacent open space and recreational areas where appropriate. Sidewalks are provided throughout the project internally and connect to the larger Rancho Vistoso pedestrian / multi-use path system. Additionally, the site design removes an existing extraneous curb cut, reducing the number of possible conflict points for pedestrians and vehicles. Design Standards Analysis (Addendum A of OVZCR) The proposed conceptual site plan has been reviewed for conformance with the conceptual site design standards. Following are key design standards (in italics ) followed by staff's commentary. Section 3.1.B.1: Street character should be diverse in residential areas. Diverse is defined as providing safety, interest and variety while maintaining a harmonious context. The applicant will use landscaping designs tied to the three architectural styles for the model home architecture to ensure the street character is varied, diverse, and harmonious within this project site. Section 3.1.G.1: Natural features, including drainage corridors, vegetation and habitat, shall be preserved to the greatest extent possible. The project conserves the headwater of a drainage corridor, as well as adjacent vegetation and habitat on the development plan, ensuring the area is conserved as open space moving forward. Conceptual Landscape Plan The conceptual landscape plan is in conformance with the applicable Zoning Code requirements. 25 foot Type B bufferyard is provided along Rancho Vistoso Boulevard. 15 foot Type A bufferyard is provided along Morning Vista Drive. No bufferyard is required between this project and the homes to the north or east because this project and the adjacent homes are all zoned High-Density Residential. However, to soften the transition to existing homes, the applicant exceeded code requirements and provided buffer yards along these edges, with plantings and natural open space where appropriate. C. PUBLIC PARTICIPATION An Informational Video was posted online on May 4, 2021, and two neighborhood meetings were held for this proposal. The first meeting was held online via Zoom on May 20, 2021. Key concerns during this meeting were: Privacy Opportunities to move lots away from existing homes Grading and drainage Encroachment into the 25% slope area Construction timeline and regulations Traffic generation and access A second neighborhood meeting was held in person on March 30, 2022. Continued concerns regarding the location of Lot 18 were raised by residents. Based on these concerns and meetings with the neighbors adjacent to the lot, the applicant revised the site plan to significantly shift the arrangement of Lot 18 to provide additional landscaping and buffers between it and the adjacent residents. Neighborhood meeting summaries can be found in Attachment 2. Furthermore, fourteen email correspondences received over the course of the project's review are included in Attachment 3. Planning and Zoning Commission This item was considered at the May 3, 2022, Planning and Zoning Commission regular session (draft minutes, Attachment 4). Commissioners raised concerns about the potential for homeowners or guests to periodically park on Lots 14-17 driveways instead of using the 2 car garages. Because the driveways were previously designed to be 16 feet wide and 10 feet long, the primary concern was that residents may park in the driveway on occasion and vehicles would overhang into the sidewalk. The following was noted: Blocking a sidewalk violates Town Code. The purpose of the 10-foot driveway length is to ensure conservation of adjacent slopes and a drainage area. Furthermore, it provides requested distance from adjacent neighbors to the north. The zoning code requires a minimum of 37 spaces. 41 spaces were provided. After extensive discussion, the Commission recommended approval of the Conceptual Site Plan and Landscape Plan, "with the condition agreed to by the applicant, that driveways for lots 14 through 17 are to be widened, and/or the distance of the buildings to the rear property line shall be reduced to the minimum setback to better accommodate a standard vehicle ." As a result, the applicant has updated the site design to increase the width and length (18' x 11') of the lot 14-17 driveways to enable an average vehicle to parallel park and more guest parking spaces were added. The current plan includes 36 regular spaces and 5 guest spaces, exceeding the zoning requirement by 4. Further information has been provided by the applicant in Attachment 5. Additionally, the Planning and Zoning Commission approved Conceptual Model Home Architecture for this project. Summary of Public Notice Public notice has been provided: Affected Homeowners Association mailing Posting on property Post at Town Hall and on OVprojects.com Postcard to all property owners within 600 feet D. SUMMARY AND RECOMMENDATION Per the Rancho Vistoso PAD, attached and detached dwellings are a permitted use on the subject parcel and a code compliant site design must ultimately be approved by the Town. Staff has reviewed the proposed site design and landscape plan for compliance with the Zoning Code and PAD and find the requests meet all Zoning Code requirements and are in conformance with the Design Principles and applicable Design Standards. The Planning and Zoning Commission recommended conditional approval, "with the condition agreed to by the applicant, that driveways for lots 14 through 17 are to be widened, and/or the distance of the buildings to the rear property line shall be reduced to the minimum setback to better accommodate a standard vehicle." Since the Commission meeting, the applicant revised their design to increase the size of these driveways. The proposed design goes beyond code by providing more than the required amount of parking spaces, buffer yards along the north and east side of the property, and additional plantings next to lot 18. Therefore, staff finds the Commission's condition has been met. FISCAL IMPACT: N/A SUGGESTED MOTION: Town Council may consider the following suggested motions: I MOVE to approve the conceptual site plan and conceptual landscape plan for the proposed 18-unit residential subdivision located on the east corner of the Rancho Vistoso Boulevard and Morning Vista Drive intersection based on the finding that the proposal complies with the Oro Valley Zoning Code Design Principles and applicable design standards. OR I MOVE to deny the conceptual site plan and conceptual landscape plan for the proposed 18-unit residential subdivision located on the east corner of the Rancho Vistoso Boulevard and Morning Vista Drive intersection based on the finding that __________________. Attachments Attachment 1 - Site and Landscape Plan Attachment 2 - Neighborhood Meeting Summaries Attachment 3 -Neighbor Correspondence Attachment 4 - Draft PZC Minutes 5-3-22 Attachment 5 - Applicant Parking Narrative Staff Presentation EEEW8''WWW W W GW12''W12''SSSSEEEEEEPOOL234567891415121316171810111CA "C"CA "C"CA "C"CA "C"CA "C"CA "A"ACTIVEREC. AREACA "B"CA "C" LOTS 1 - 18 AND COMMON AREAS "A" THROUGH "C"A PORTION OF THE SW QTR. SECTION 24, T-11-S,R-13-E G&SRB&M, TOWN OF ORO VALLEY, PIMACOUNTY, ARIZONA 85755of3RESIDENCES ATMORNING VISTAREF.: 200307511COVER SHEET LOTS 1 - 18 AND COMMON AREAS "A" THROUGH "C"A PORTION OF THE SW QTR. SECTION 24, T-11-S,R-13-E G&SRB&M, TOWN OF ORO VALLEY, PIMACOUNTY, ARIZONA 85755of3RESIDENCES ATMORNING VISTAREF.: 200307522NOTES EEEEEEEEW8''W8''W8''WWWWWWWWWWGGW16''W16''W16''W16''W16''W8''CCRWRWRWRWRWRWRWRWRWWWW12''W12''W12''W12''W12''EEEEEEEEEPOOL2345678914151213161710111CA "C"CA "C"CA "A"CA "A"CA "C"CA "C"CA "C"SSSSSSSSSSSS LOTS 1 - 18 AND COMMON AREAS "A" THROUGH "C"A PORTION OF THE SW QTR. SECTION 24, T-11-S,R-13-E G&SRB&M, TOWN OF ORO VALLEY, PIMACOUNTY, ARIZONA 85755of3RESIDENCES ATMORNING VISTAREF.: 200307533CONCEPTUAL SITE PLAN