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AGENDA ORO VALLEY
BUDGET AND FINANCE COMMISSION
REGULAR SESSION
JUNE 15, 2021
ONLINE ZOOM MEETING
https://orovalley.zoom.us/j/94262873731?pwd=cy9UbVpEc1MrRGphdm9UU0V1blFydz09
To attend via phone only, dial 1-253-215-8782, then enter meeting ID: 942 6287 3731 and enter
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REGULAR SESSION AT OR AFTER 4:00 PM
CALL TO ORDER
ROLL CALL
PLEDGE OF ALLEGIANCE
CALL TO AUDIENCE - at this time, any member of the public is allowed to address the Commission on any
issue not listed on today’s agenda. Pursuant to the Arizona open meeting law, individual Commission
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 Commission 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.
STAFF LIAISON REPORT
REGULAR SESSION AGENDA
1.REVIEW AND APPROVAL OF THE MAY 17, 2021 REGULAR SESSION MEETING MINUTES
2.PRESENTATION AND POSSIBLE DISCUSSION OF THE TOWN'S FY 20/21 FINANCIAL UPDATE
THROUGH APRIL 2021
3.PRESENTATION AND POSSIBLE DISCUSSION OF THE FIVE-YEAR FINANCIAL FORECAST
THROUGH FY 2026/27
COUNCIL LIAISON COMMENTS
FUTURE AGENDA ITEMS
ADJOURNMENT
POSTED: 6/11/21 at 5 P.M. by P.P.
POSTED: 6/11/21 at 5 P.M. by P.P.
When possible, a packet of agenda materials as listed above is available for public inspection at least 24 hours
prior to the Commission meeting in the Town Clerk's Office 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 Commission
meeting at 229-4700.
INSTRUCTIONS TO SPEAKERS
Members of the public have the right to speak during any posted Public Hearing. However, those items
not listed as a Public Hearing are for consideration and action by the Budget and Finance Commission
during the course of their business meeting. Members of the public may be allowed to speak on these
topics at the discretion of the Chair.
In accordance with Amendment #2 of the Mayoral Proclamation of Emergency issued on March 27, 2020, the
following restrictions have been placed on all public meetings until further notice:
1. In-person attendance by members of the public is prohibited.
2. Members of the public can either watch the public meeting
online https://www.orovalleyaz.gov/town/departments/town-clerk/meetings-and-agendas or, if they would like to
participate in the meeting (e.g. speak at Call to Audience or speak on a Regular Agenda item), they can attend the
meeting and participate via the on-line meeting application,
Zoom, https://orovalley.zoom.us/j/94262873731?pwd=cy9UbVpEc1MrRGphdm9UU0V1blFydz09 , or may
participate telephonically only by dialing 1-253-215-8782 then enter Meeting ID: 942 6287 3731, then enter
Passcode: 778397 prior to or during the posted meeting.
3. If a member of the public would like to speak at either Call to Audience or on a Regular Agenda item, please
"raise your hand" during the meeting when the Chair announces that it is the appropriate time to do so. For those
participating in the meeting through Zoom, place your cursor towards the bottom, middle of the page and look for
the "Raise Hand" icon and click on it to "Raise Your Hand" to speak. For those participating via phone only, press
*9 to "Raise Your Hand".
4. All members of the public who participate in the Zoom meeting either with video or telephonically will enter the
meeting with microphones muted. For those participating via computer/tablet/phone device, you may choose
whether to turn your video on or not. Those participating via computer/tablet/phone device can click the “Raise
Your Hand” button during the Call to the Public or Regular Agenda item, and the Chair will call on you in order.
For those participating by phone, you can press *9, which will show the Chair that your hand is raised. When you
are recognized at the meeting by the Chair, your microphone will be unmuted by a member of staff and you will
have three minutes to speak before your microphone is again muted.
5. If a member of the public would like to submit written comments to the Budget and Finance Commission for their
consideration prior to the meeting, please email those comments to acote@orovalleyaz.gov, no later than sixty
minutes before the public meeting. Those comments will then be electronically distributed to the public body prior
to the meeting. If you have questions, please contact Alison Cote, at 520-229-4760 or email at
acote@orovalleyaz.gov
Thank you for your cooperation.
“Notice of Possible Quorum of the Oro Valley Town Council, Boards, Commissions and Committees: In accordance
with Chapter 3, Title 38, Arizona Revised Statutes and Section 2-4-4 of the Oro Valley Town Code, a majority of the
Town Council, Board of Adjustment, Historic Preservation Commission, Parks and Recreation Advisory Board,
Stormwater Utility Commission, and Water Utility Commission may attend the above referenced meeting as a
member of the audience only.”
Budget and Finance Commission 1.
Meeting Date:06/15/2021
Submitted By:Alison Cote, Legal
SUBJECT:
REVIEW AND APPROVAL OF THE MAY 17, 2021 REGULAR SESSION MEETING MINUTES
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 changes) the May 17, 2021 regular session meeting minutes"
Attachments
Draft Minutes - 5/17/21
D R A F T
MINUTES
BUDGET AND FINANCE COMMISSION
REGULAR SESSION
MAY 17, 2021
ONLINE ZOOM MEETING
REGULAR SESSION AT OR AFTER 4:00 PM
CALL TO ORDER - Chair Latchford called the meeting to order at 4:00 P.M.
ROLL CALL
Present: John Latchford, Chairman
Cathy Solverson, Vice Chair
Michael Mason, Commissioner
David Newell, Commissioner - arrived at 5:21 p.m.
James Beasley, Commissioner
Staff Present:Mary Jacobs, Town Manager
David Gephart, Chief Financial Officer
Tobin Sidles, Legal Services Director
Wendy Gomez, Finance and Budget Administrator
Michael Dyckman, Senior Budget Analyst
PLEDGE OF ALLEGIANCE - Vice Chair Solverson led the group in the Pledge of Allegiance.
CALL TO AUDIENCE - No comments were received.
STAFF LIAISON REPORT
Chief Financial Officer David Gephart discussed the following:
-the town is moving forward with PSPRS bond issuance and this matter will be taken to council on June 2, 2021.
-Henry and Horne have been selected as the new auditing firm, and they will be onsite in September for
fieldwork.
REGULAR SESSION AGENDA
1.REVIEW AND APPROVAL OF THE APRIL 20, 2021 REGULAR SESSION MEETING MINUTES
Motion by Commissioner James Beasley, seconded by Commissioner Michael Mason to approve the
April 20, 2021 minutes as written.
Vote: 4 - 0 Carried
Vote: 4 - 0 Carried
2.PRESENTATION AND POSSIBLE DISCUSSION OF THE TOWN'S FY 20/21 FINANCIAL UPDATE
THROUGH MARCH 2021
Finance and Budget Administrator Wendy Gomez presented on the Town's FY 2020/2021 Financial
Update through March 2021.
Discussion ensued amongst staff and commissioners regarding Agenda Item #2.
3.DISCUSSION OF TOWN MANAGER'S FY 21/22 RECOMMENDED BUDGET
Chief Financial Officer David Gephart led discussion amongst the staff and commissioners regarding
Agenda Item #3.
Chair Latchford thanked staff for their hard work on the budget.
COUNCIL LIAISON COMMENTS
The council liaison was not present.
FUTURE AGENDA ITEMS
No future agenda items were discussed.
ADJOURNMENT
Motion by Vice Chair Cathy Solverson, seconded by Commissioner Michael Mason to adjourn the
meeting at 5:41 P.M.
Vote: 5 - 0 Carried
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 Budget and Finance Commission of Oro Valley, Arizona held on the 17th day of May, 2021. I
further certify that the meeting was duly called and held and that a quorum was present.
Dated this 19th day of May, 2021.
___________________________
Alison Cote
Legal Secretary
Budget and Finance Commission 2.
Meeting Date:06/15/2021
Submitted By:Michael Dyckman, Finance
SUBJECT:
PRESENTATION AND POSSIBLE DISCUSSION OF THE TOWN'S FY 20/21 FINANCIAL UPDATE THROUGH
APRIL 2021
RECOMMENDATION:
N/A
EXECUTIVE SUMMARY:
This financial report is intended to provide an overview and status of revenues and expenditures for the Town’s
selected funds through April 2021. Funds included in this financial update are the General Fund, Highway Fund and
Community Center Fund. All amounts are preliminary, unaudited and subject to change based upon adjusting
entries, as necessary.
EXECUTIVE SUMMARY:
The Town has successfully navigated the challenges posed by the COVID-19 pandemic. Staff is pleased to report
that financial performance across all funds has exceeded expectations. Revenues are strong, especially for
single-family residential permits and construction sales taxes due to a strong housing market, as well as retail and
online sales tax collections. There are also indications of improvement in restaurant/bar and bed tax collections.
With much of the fiscal year complete, budgeted projects and programs that were temporarily deferred due to the
uncertainty with revenues collections are underway and progressing as the market allows.
General Fund
Overall, General Fund revenues and expenditures continue to trend better than anticipated through April (See
Attachment A). Due to strong local sales tax and permit fee collections, revenues total $41.3 million or 95.2% of
budget, while expenditures are below budget at $33.4 million or 75.0% of the total budget.
Highway Fund
Revenues and expenditures for the Highway Fund are trending as expected through April (See Attachment B).
Revenues total approximately $3.1 million or 82.5% of budget while expenditures total $2.5 million or 65.6% of
budget.
Community Center Fund
Current revenues and expenditures for the Community Center Fund are largely as anticipated through April (See
Attachment C-1 & C-2). Revenues total $6.3 million or 88.9% of budget, while expenditures total $4.5 million or
65.1% of budget.
BACKGROUND OR DETAILED INFORMATION:
BACKGROUND AND DETAILED INFORMATION:
BACKGROUND AND DETAILED INFORMATION:
GENERAL FUND
Attachment A shows General Fund revenues and expenditures through April, as well as year-end estimates for
each category. The estimated year-end projections in the General Fund are as follows:
Revenues: $53,667,998
Less:
Expenditures: ($42,407,932)
Preliminary Estimated Change in Fund Balance: $11,260,066 *
*The adopted fiscal year 2020/21 budgeted change in fund balance is $(1,225,025)
General Fund Revenues
Local sales tax collections in the General Fund total $17.7 million or 97.5% of the budget amount of $18.1
million and are higher than anticipated. Construction sales tax collections total $4.1 million through April,
compared to the budget amount of $3.4 million. Retail collections in the General Fund total $6.6 million
through April and are $516,000 or 8.5% higher than collections through the same period last fiscal year.
Restaurant/bar collections and bed tax collections are down 8.7% and 25.0% respectively, compared to
collections through the same period last fiscal year. Due to strong collections in construction, retail and
remote collections, General Fund sales taxes are estimated to end the year $2.9 million, or 15.9% over
budget. Please see Attachment E for detailed information on General Fund local sales tax collections.
License and permit revenues total $2.8 million or 177.2% of the budget amount of $1.6 million through April.
Single Family Residential (SFR) permits issued through April total 385 and are a large portion of this revenue
piece. For reference, through April of last fiscal year, the Town had issued 232 SFR permits. Commercial
permit revenue is another main portion of this category and includes large one-time permit revenues. In total,
this revenue category is expected to come in over budget by approximately $1.6 million.
State shared revenues, which include shared sales tax, income tax and auto-lieu fees, total $11.9 million or
89.8% of the budget amount of $13.2 million. Through April, state shared sales taxes and auto-lieu fees are
trending above budget. Overall, this revenue category is anticipated to end the fiscal year $917,000 or 7.0%
over budget. Please see Attachment F for detailed information on General Fund state shared revenue
collections.
Other intergovernmental revenues include RTA reimbursements for transit services, school resource officers,
and animal control revenues. Actuals through April total $839,000 or 50.2% of budget, and are anticipated to
end the fiscal year $700,000 or 41.9% below budget. This is mainly due to reduced ridership demand as a
result of COVID-19, which caused reductions in RTA transit reimbursements.
Charges for services revenues total $1.6 million or 70.9% of the budget amount of $2.2 million. A large
portion of these revenues are associated with Parks & Recreation programming and farebox revenues. As
anticipated, these revenues sources are lagging due to COVID-19. At this point in time, these revenues are
anticipated to end the fiscal year 11.9% or $265,000 below budget.
Federal grant revenues include the Town’s allotted $5.3 million of AZ Cares funding, which was received
earlier in the fiscal year. Year-end estimates also include $5.5 million in anticipated revenues associated with
the American Rescue Plan Act, the first of two anticipated payments. The second payment will be received in
FY 21/22.
General Fund Expenditures
General Fund expenditures are trending below budget through April and are estimated to come in under
budget by about $2.2 million, or 4.9%. This is due to personnel savings from position vacancies, estimated
O&M savings from departments and one-time operating projects, as well as project carry-over into next fiscal
year.
The General Fund is expected to end the fiscal year with a total fund balance of $32.2 million, or 72.1% of budgeted
expenditures.
HIGHWAY FUND
Highway Fund Revenues
State shared highway user funds total $3.0 million or 86.9% of the budget amount of $3.5 million. At this point
in time, these revenues are estimated to come in above budget by $121,000 or 3.5%, based on current
trends.
State grant revenues are reimbursable costs by the RTA related to the La Cholla Road widening project. As
this project is substantially complete, there are no additional reimbursements expected at this time.
Transportation Engineering expenditures have been reduced accordingly.
All other revenue sources for the Highway Fund are expected to end the fiscal year near budgeted levels.
Highway Fund Expenditures
Highway Fund expenditures are currently $2.5 million or 65.6% of the adopted budget of $3.9 million. These
costs will increase when the second phase of the Pavement Preservation Program is officially recorded later
in the Spring.
Highway Fund expenditures are estimated to come in under budget by $533,000 due to reimbursable costs
related to the La Cholla Road widening project, as well as anticipated project carry-over for the Lambert Lane
Overlay CIP project.
The Highway Fund is expected to end the fiscal year with a fund balance of approximately $1.1 million.
COMMUNITY CENTER FUND
Attachment C-1 shows the consolidated financial status of the Community Center Fund with all revenues and
expenditures from the golf operator and Town-managed operations.
Attachment C-2 shows the monthly line item detail for the contract managed operations, specifically revenues and
expenditures associated with the golf, food and beverage operations. The totals in the revenue and expenditure
categories in Attachment C-2 tie to the contracted operating revenues and expenditures in Attachment C-1.
Community Center Fund Revenues
Revenues in the Community Center Fund through April total $6.3 million or 88.9% of the budget amount of
$7.1 million.
Contracted operating revenues from the golf operator total $3.4 million. This is approximately $607,000 or
22.1% higher than revenues through the same period last fiscal year. Contracted revenues are estimated to
come in over budget by approximately $349,000 or 10.0%, primarily due to increased golf, trail and cart
revenues.
Due to facility closures and reduced patronage due to COVID-19, Town operating revenues through April
total $380,000 or 39.8% of budget. This revenue source is expected to end the fiscal year approximately
46.4% or $443,000 below budget. Savings in Town operating costs are expected to partially cover this
shortfall.
Local sales tax revenues through April total $2.4 million or 96.5% of the budget amount of $2.5 million. Due
to strong retail and remote collections, this category is expected to come in over budget by approximately
$404,000 or 16.2%.
Community Center Fund Expenditures
Expenditures in the Community Center Fund total $4.5 million or 65.1% of the budget amount of $6.9 million.
Contracted operating expenditures from the golf operator total $3.7 million, or 81.9% of the budgeted amount
of $4.5 million. Contracted expenditures are estimated to come in under budget by approximately $50,000 or
1.1%, due to personnel and equipment lease savings.
Budgeted capital outlay is comprised of several minor capital items, in addition to $1.1 million for the golf
course irrigation project. As construction for the irrigation project is on hold, the bulk of this year’s budgeted
project cost will not be spent.
Overall, expenditures for the fund are estimated to come in under budget by $1.2 million or 17.8% due to a
combination of anticipated personnel, O&M, and capital outlay savings. At this time, the Community Center
Fund is projected to end the fiscal year with a total fund balance of about $2.6 million.
The year-end sales tax support for golf operations is estimated to be $383,770. This figure includes a projected
($591,846) for contracted golf operations, $125,000 in outside HOA contributions, and $83,076 in local sales taxes
generated from golf-related operations.
Please see Attachments A and B for additional details on the General Fund and Highway Fund. See Attachments
C-1 and C-2 for additional details on the Community Center Fund. See Attachment D for a fiscal year-to-date
consolidated summary of all Town Funds. See attachments E and F for a breakdown of monthly local sales tax
collections and state shared revenue collections for the General Fund.
FISCAL IMPACT:
N/A
SUGGESTED MOTION:
N/A
Attachments
Council Memo
Attachment A - General Fund
Attachment B - Highway Fund
Attachment C1 - Community Center Fund
Attachment C2 - Cash Flow Statement
Attachment D - Summary All Funds
Attachment E - General Fund Sales Tax
Attachment F - General Fund State Shared Revenues
Oro Valley, it’s in our nature.
www.orovalleyaz.gov
11000 N. La Cañada Drive • Oro Valley, Arizona 85737
phone: (520) 229-4700 • fax: (520) 229-0428
Town Manager’s Office
M E M O R A N D U M
TO: Mayor and Councilmembers
FROM: Mary Jacobs, Town Manager
David Gephart, Chief Financial Officer
DATE: June 16, 2021
SUBJECT: April 2021 Financial Update
This financial report is intended to provide an overview and status of revenues and expenditures
for the Town’s selected funds through April 2021. Funds included in this financial update are the
General Fund, Highway Fund and Community Center Fund. All amounts are preliminary, un-
audited and subject to change based upon adjusting entries, as necessary.
EXECUTIVE SUMMARY:
The Town has successfully navigated the challenges posed by the COVID-19 pandemic. Staff is
pleased to report that financial performance across all funds has exceeded expectations.
Revenues are strong, especially for single-family residential permits and construction sales taxes
due to a strong housing market, as well as retail and online sales tax collections. There are also
indications of improvement in restaurant/bar and bed tax collections. With much of the fiscal year
complete, budgeted projects and programs that were temporarily deferred due to the uncertainty
with revenues collections are underway and progressing as the market allows.
General Fund
Overall, General Fund revenues and expenditures continue to trend better than anticipated
through April (See Attachment A). Due to strong local sales tax and permit fee collections,
revenues total $41.3 million or 95.2% of budget, while expenditures are below budget at $33.4
million or 75.0% of the total budget.
Highway Fund
Revenues and expenditures for the Highway Fund are trending as expected through April (See
Attachment B). Revenues total approximately $3.1 million or 82.5% of budget while expenditures
total $2.5 million or 65.6% of budget.
Community Center Fund
Current revenues and expenditures for the Community Center Fund are largely as anticipated
through April (See Attachment C-1 & C-2). Revenues total $6.3 million or 88.9% of budget, while
expenditures total $4.5 million or 65.1% of budget.
BACKGROUND AND DETAILED INFORMATION:
GENERAL FUND
Attachment A shows General Fund revenues and expenditures through April, as well as year-end
estimates for each category. The estimated year-end projections in the General Fund are as
follows:
Revenues: $53,667,998
Less:
Expenditures: ($42,407,932)
Preliminary Estimated Change in Fund Balance: $11,260,066 *
*The adopted fiscal year 2020/21 budgeted change in fund balance is $(1,225,025)
General Fund Revenues
• Local sales tax collections in the General Fund total $17.7 million or 97.5% of the budget
amount of $18.1 million and are higher than anticipated. Construction sales tax collections
total $4.1 million through April, compared to the budget amount of $3.4 million. Retail
collections in the General Fund total $6.6 million through April and are $516,000 or 8.5%
higher than collections through the same period last fiscal year. Restaurant/bar collections
and bed tax collections are down 8.7% and 25.0% respectively, compared to collections
through the same period last fiscal year. Due to strong collections in construction, retail
and remote collections, General Fund sales taxes are estimated to end the year $2.9
million, or 15.9% over budget. Please see Attachment E for detailed information on
General Fund local sales tax collections.
• License and permit revenues total $2.8 million or 177.2% of the budget amount of $1.6
million through April. Single Family Residential (SFR) permits issued through April total
385 and are a large portion of this revenue piece. For reference, through April of last fiscal
year, the Town had issued 232 SFR permits. Commercial permit revenue is another main
portion of this category and includes large one-time permit revenues. In total, this revenue
category is expected to come in over budget by approximately $1.6 million.
• State shared revenues, which include shared sales tax, income tax and auto-lieu fees,
total $11.9 million or 89.8% of the budget amount of $13.2 million. Through April, state
shared sales taxes and auto-lieu fees are trending above budget. Overall, this revenue
category is anticipated to end the fiscal year $917,000 or 7.0% over budget. Please see
Attachment F for detailed information on General Fund state shared revenue collections.
• Other intergovernmental revenues include RTA reimbursements for transit services,
school resource officers, and animal control revenues. Actuals through April total
$839,000 or 50.2% of budget, and are anticipated to end the fiscal year $700,000 or 41.9%
below budget. This is mainly due to reduced ridership demand as a result of COVID-19,
which caused reductions in RTA transit reimbursements.
• Charges for services revenues total $1.6 million or 70.9% of the budget amount of $2.2
million. A large portion of these revenues are associated with Parks & Recreation
programming and farebox revenues. As anticipated, these revenues sources are lagging
due to COVID-19. At this point in time, these revenues are anticipated to end the fiscal
year 11.9% or $265,000 below budget.
• Federal grant revenues include the Town’s allotted $5.3 million of AZ Cares funding, which
was received earlier in the fiscal year. Year-end estimates also include $5.5 million in
anticipated revenues associated with the American Rescue Plan Act, the first of two
anticipated payments. The second payment will be received in FY 21/22.
General Fund Expenditures
• General Fund expenditures are trending below budget through April and are estimated to
come in under budget by about $2.2 million, or 4.9%. This is due to personnel savings
from position vacancies, estimated O&M savings from departments and one-time
operating projects, as well as project carry-over into next fiscal year.
The General Fund is expected to end the fiscal year with a total fund balance of $32.2 million,
or 72.1% of budgeted expenditures.
HIGHWAY FUND
Highway Fund Revenues
• State shared highway user funds total $3.0 million or 86.9% of the budget amount of $3.5
million. At this point in time, these revenues are estimated to come in above budget by
$121,000 or 3.5%, based on current trends.
• State grant revenues are reimbursable costs by the RTA related to the La Cholla Road
widening project. As this project is substantially complete, there are no additional
reimbursements expected at this time. Transportation Engineering expenditures have
been reduced accordingly.
• All other revenue sources for the Highway Fund are expected to end the fiscal year near
budgeted levels.
Highway Fund Expenditures
• Highway Fund expenditures are currently $2.5 million or 65.6% of the adopted budget of
$3.9 million. These costs will increase when the second phase of the Pavement
Preservation Program is officially recorded later in the Spring.
• Highway Fund expenditures are estimated to come in under budget by $533,000 due to
reimbursable costs related to the La Cholla Road widening project, as well as anticipated
project carry-over for the Lambert Lane Overlay CIP project.
The Highway Fund is expected to end the fiscal year with a fund balance of approximately $1.1
million.
COMMUNITY CENTER FUND
Attachment C-1 shows the consolidated financial status of the Community Center Fund with all
revenues and expenditures from the golf operator and Town-managed operations.
Attachment C-2 shows the monthly line item detail for the contract managed operations,
specifically revenues and expenditures associated with the golf, food and beverage operations.
The totals in the revenue and expenditure categories in Attachment C-2 tie to the contracted
operating revenues and expenditures in Attachment C-1.
Community Center Fund Revenues
• Revenues in the Community Center Fund through April total $6.3 million or 88.9% of the
budget amount of $7.1 million.
• Contracted operating revenues from the golf operator total $3.4 million. This is
approximately $607,000 or 22.1% higher than revenues through the same period last
fiscal year. Contracted revenues are estimated to come in over budget by approximately
$349,000 or 10.0%, primarily due to increased golf, trail and cart revenues.
• Due to facility closures and reduced patronage due to COVID-19, Town operating
revenues through April total $380,000 or 39.8% of budget. This revenue source is
expected to end the fiscal year approximately 46.4% or $443,000 below budget. Savings
in Town operating costs are expected to partially cover this shortfall.
• Local sales tax revenues through April total $2.4 million or 96.5% of the budget amount of
$2.5 million. Due to strong retail and remote collections, this category is expected to come
in over budget by approximately $404,000 or 16.2%.
Community Center Fund Expenditures
• Expenditures in the Community Center Fund total $4.5 million or 65.1% of the budget
amount of $6.9 million.
• Contracted operating expenditures from the golf operator total $3.7 million, or 81.9% of
the budgeted amount of $4.5 million. Contracted expenditures are estimated to come in
under budget by approximately $50,000 or 1.1%, due to personnel and equipment lease
savings.
• Budgeted capital outlay is comprised of several minor capital items, in addition to $1.1
million for the golf course irrigation project. As construction for the irrigation project is on
hold, the bulk of this year’s budgeted project cost will not be spent.
• Overall, expenditures for the fund are estimated to come in under budget by $1.2 million
or 17.8% due to a combination of anticipated personnel, O&M, and capital outlay savings.
At this time, the Community Center Fund is projected to end the fiscal year with a total
fund balance of about $2.6 million.
The year-end sales tax support for golf operations is estimated to be $383,770. This figure
includes a projected ($591,846) for contracted golf operations, $125,000 in outside HOA
contributions, and $83,076 in local sales taxes generated from golf related operations.
Please see Attachments A and B for additional details on the General Fund and Highway Fund.
See Attachments C-1 and C-2 for additional details on the Community Center Fund. See
Attachment D for a fiscal year-to-date consolidated summary of all Town Funds. See attachments
E and F for a breakdown of monthly local sales tax collections and state shared revenue
collections for the General Fund.
ATTACHMENT A
April YTD Financial Status
General Fund
% Budget Completion through April --- 83.3%
% Actuals YE % Variance
to Budget to Budget
REVENUES:`
LOCAL SALES TAX 17,682,276 18,128,304 97.5%21,019,519 15.9%
LICENSES & PERMITS 2,822,569 1,592,500 177.2%3,236,053 103.2%
FEDERAL GRANTS 5,666,749 5,790,969 97.9%11,276,198 94.7%
STATE GRANTS 90,635 75,000 120.8%100,000 33.3%
STATE/COUNTY SHARED 11,854,905 13,194,438 89.8%14,111,628 7.0%
OTHER INTERGOVERNMENTAL 839,427 1,672,000 50.2%971,199 -41.9%
CHARGES FOR SERVICES 1,587,271 2,239,675 70.9%1,974,234 -11.9%
FINES 107,960 125,000 86.4%125,000 0.0%
INTEREST INCOME 408,341 150,000 272.2%468,341 212.2%
MISCELLANEOUS 220,427 262,500 84.0%265,826 1.3%
TRANSFERS IN - 120,000 0.0%120,000 0.0%
TOTAL REVENUES 41,280,560 43,350,386 95.2%53,667,998 23.8%
% Actuals YE % Variance
to Budget to Budget
EXPENDITURES:
CLERK 330,076 428,524 77.0%425,000 -0.8%
COMMUNITY & ECON. DEV.2,182,916 2,779,661 78.5%2,717,473 -2.2%
COUNCIL 143,987 197,019 73.1%189,927 -3.6%
FINANCE 679,846 832,888 81.6%832,888 0.0%
GENERAL ADMINISTRATION 3,893,702 5,251,466 74.1%5,068,966 -3.5%
HUMAN RESOURCES 352,554 457,347 77.1%446,567 -2.4%
INNOVATION & TECHNOLOGY 2,897,312 3,944,198 73.5%3,808,143 -3.4%
LEGAL 694,015 870,592 79.7%842,861 -3.2%
MAGISTRATE COURT 609,656 864,826 70.5%863,762 -0.1%
MANAGER 746,908 1,028,734 72.6%973,874 -5.3%
PARKS & RECREATION 2,441,618 3,478,517 70.2%3,271,787 -5.9%
POLICE 13,324,883 16,953,228 78.6%16,122,078 -4.9%
PUBLIC WORKS 3,152,365 4,898,891 64.3%4,255,085 -13.1%
TRANSFERS OUT 1,996,139 2,589,520 77.1%2,589,520 0.0%
TOTAL EXPENDITURES 33,445,977 44,575,411 75.0%42,407,932 -4.9%
SURPLUS / (DEFICIT)7,834,583 (1,225,025) 11,260,066
BEGINNING FUND BALANCE 20,899,548
Plus: Surplus / (Deficit)11,260,066
ENDING FUND BALANCE **32,159,614
* Year-end estimates are subject to further revision
** Ending fund balance amounts are estimates and are subject to further revision
FY 2020/2021
Year End
Estimate *
Budget Year End
Estimate *
Actuals
thru 04/2021
Actuals
thru 04/2021
Budget
ATTACHMENT B
April YTD Financial Status FY 2020/2021
% Budget Completion through April --- 83.3%
Actuals
thru 04/2021 Budget % Actuals
to Budget
Year End
Estimate *
YE % Variance
to Budget
REVENUES:
LICENSES & PERMITS 29,335 25,000 117.3%30,050 20.2%
STATE GRANTS - 210,000 0.0%- -100.0%
STATE/COUNTY SHARED 3,004,848 3,458,929 86.9%3,579,849 3.5%
INTEREST INCOME 12,832 5,000 256.6%14,855 197.1%
MISCELLANEOUS 6,033 2,000 301.7%6,500 225.0%
TOTAL REVENUES 3,053,048 3,700,929 82.5%3,631,254 -1.9%
Actuals
thru 04/2021 Budget % Actuals
to Budget
Year End
Estimate *
YE % Variance
to Budget
EXPENDITURES:
TRANSPORTATION ENGINEERING 2,292,648 3,512,881 65.3%2,998,064 -14.7%
STREET MAINTENANCE 239,904 348,220 68.9%330,461 -5.1%
TOTAL EXPENDITURES 2,532,552 3,861,101 65.6%3,328,524 -13.8%
SURPLUS / (DEFICIT)520,496 (160,172) 302,730
BEGINNING FUND BALANCE 818,962
Plus: Surplus / (Deficit)302,730
ENDING FUND BALANCE **1,121,692
* Year-end estimates are subject to further revision
** Ending fund balance amounts are estimates and are subject to further revision
-
Highway Fund
ATTACHMENT C-1
April YTD Financial Status
% Budget Completion through April --- 83.3%
% Actuals YE % Variance
to Budget to Budget
REVENUES:
CONTRACTED OPERATING REVENUES
Golf Revenues, Trail and Cart Fees 1,983,511 1,567,840 126.5%2,251,831 43.6%
Member Dues 841,466 850,000 99.0%1,007,806 18.6%
Food & Beverage 355,445 760,776 46.7%393,768 -48.2%
Merchandise & Other 177,877 325,933 54.6%200,416 -38.5%
3,358,299 3,504,548 95.8%3,853,821 10.0%
TOWN OPERATING REVENUES
Daily Drop-Ins 25,021 30,000 83.4%29,000 -3.3%
Member Dues 273,198 707,000 38.6%355,000 -49.8%
Recreation Programs 47,212 160,000 29.5%75,000 -53.1%
Swim Team/Swim Lessons - 8,000 0.0%8,000 0.0%
Facility Rental Income 34,866 50,500 69.0%45,000 -10.9%
Concession Sales 126 100 126.0%126 26.0%
380,423 955,600 39.8%512,126 -46.4%
OTHER REVENUES
Local Sales Tax 2,405,675 2,492,960 96.5%2,897,241 16.2%
Real Property Rental Income 19,502 19,502 100.0%19,502 0.0%
Interest Income 16,953 1,000 1695.3%19,945 1894.5%
Miscellaneous 127,060 125,000 0.0%127,060 1.6%
2,569,190 2,638,462 97.4%3,063,748 16.1%
TOTAL REVENUES 6,307,912 7,098,610 88.9%7,429,695 4.7%
% Actuals YE % Variance
to Budget to Budget
EXPENDITURES:
CONTRACTED OPERATING EXPENDITURES
Personnel 1,176,865 1,687,606 69.7%1,477,872 -12.4%
Operations & Maintenance 2,277,071 2,513,430 90.6%2,718,873 8.2%
Capital Equipment Purchases 53,873 - 0.0%53,873 0.0%
Equipment Leases 174,017 294,792 59.0%195,049 -33.8%
3,681,826 4,495,828 81.9%4,445,667 -1.1%
TOWN OPERATING EXPENDITURES
Personnel 497,838 762,713 65.3%682,957 -10.5%
Operations & Maintenance 90,612 216,037 41.9%182,767 -15.4%
588,450 978,750 60.1%865,725 -11.5%
CAPITAL OUTLAY 46,438 1,124,500 4.1%60,390 -94.6%
TRANSFERS OUT 158,302 278,302 56.9%278,302 0.0%
TOTAL EXPENDITURES 4,475,016 6,877,380 65.1%5,650,084 -17.8%
SURPLUS / (DEFICIT)1,832,897 221,230 1,779,611
BEGINNING FUND BALANCE 862,818
Plus: Surplus / (Deficit)1,779,611
ENDING FUND BALANCE **2,642,429
* Year-end estimates are subject to further revision
** Ending fund balance amounts are estimates and are subject to further revision
FY 2020/2021
Actuals
thru 04/2021 Budget Year End
Estimate *
Community Center Fund
Actuals
thru 04/2021 Budget Year End
Estimate *
ATTACHMENT C-2
July 2020 Aug. 2020 Sept. 2020 Oct. 2020 Nov. 2020 Dec. 2020 Jan.2021 Feb. 2021 Mar. 2021 April 2021 May 2021 June 2021 YTD FY 2021 FY 2021
Actual Actual Actual Actual Actual Actual Actual Actual Actual Actual Actual Actual Actual Budget Forecast
REVENUES:
Green Fees 104,791 105,899 122,143 93,295 171,862 161,787 162,631 229,807 269,410 241,815 1,663,440 1,333,602 1,863,440
Cart Fees 18,898 19,444 19,752 20,236 19,956 20,761 21,970 24,066 23,626 23,767 212,476 234,237 248,042
Driving Range 1,644 2,670 4,685 5,054 4,366 3,876 3,846 6,781 4,907 5,323 43,152 65,695 46,973
Golf Cards/Passes (709) - 709 - - - - - - - - - -
Pro Shop Sales 11,834 10,009 10,825 8,276 14,099 21,293 16,957 17,213 35,312 27,457 173,275 222,238 194,250
Other Golf Rev.4,015 3,186 4,282 2,300 9,313 6,704 4,985 2,124 3,582 3,325 43,816 3,000 70,435
Clinic/School Rev.360 1,243 1,184 864 1,927 2,089 4,302 3,634 2,878 2,146 20,627 15,000 22,941
Monthly Dues 74,950 82,272 75,649 77,485 79,933 87,318 84,558 91,219 93,616 94,466 841,466 850,000 1,007,806
Misc. & Discounts (642) 323 133 951 (448) 1,375 1,140 1,289 1,193 (712) 4,602 20,000 6,166
Food & Beverage 24,734 22,371 23,461 22,740 36,582 34,969 33,510 43,846 52,541 60,691 355,445 760,776 393,768
TOTAL REVENUES:239,875 247,417 262,823 231,201 337,590 340,172 333,899 419,979 487,065 458,278 - - 3,358,299 3,504,548 3,853,821
COST OF SALES:
Pro Shop 9,815 8,835 10,735 5,880 11,797 21,621 10,803 11,629 23,458 19,847 134,420 144,454 154,097
Lessons & Group Services - - - - - - - - - - 13,350 -
Food & Beverage 8,569 7,784 8,471 9,529 12,831 12,235 9,909 13,001 15,485 18,454 116,268 256,095 131,274
TOTAL COST OF SALES:18,384 16,619 19,206 15,409 24,628 33,856 20,712 24,630 38,943 38,301 - - 250,688 413,899 285,371
GROSS INCOME:221,491 230,798 243,617 215,792 312,962 306,316 313,187 395,349 448,122 419,977 - - 3,107,611 3,090,649 3,568,450
EXPENDITURES:
Personnel 93,134 127,987 105,158 119,665 114,075 136,159 128,485 115,287 122,195 114,720 1,176,865 1,687,606 1,477,872
Golf Operations 5,503 1,778 2,224 6,329 17,209 8,906 3,681 12,133 7,201 4,414 69,378 30,900 81,277
G&A 20,792 52,369 24,364 12,231 22,577 30,873 72,503 28,926 35,216 33,613 333,464 135,509 390,553
Maintenance 148,148 151,140 221,930 219,568 118,088 67,554 12,972 68,592 86,897 101,845 1,196,734 1,524,660 1,439,825
Sales & Marketing 1,284 2,415 2,083 3,515 1,691 910 6,580 1,172 1,105 3,993 24,748 42,100 26,750
Food & Beverage 18,238 17,444 16,756 17,386 24,209 23,907 23,370 20,536 23,339 24,758 209,943 241,362 244,657
Management Fees 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 100,000 120,000 120,000
Golf Cart Leases 13,041 13,041 13,041 13,041 18,092 13,041 13,041 13,041 13,041 13,041 135,460 156,488 156,492
Equipment Leases 19,277 19,280 - - - - - - - - 38,557 138,304 38,557
Capital Equipment Purchases - - - - - - - - 53,873 53,873 - 53,873
Other Expenses 12,590 - - - - 450 6,248 - 20,930 8,728 48,946 3,000 72,250
Insurance - P&C 3,300 3,300 3,300 3,300 9,115 4,463 4,600 4,600 3,812 3,380 43,170 2,000 58,190
TOTAL EXPENDITURES:345,306 398,754 398,856 405,035 335,056 296,263 281,480 274,287 323,736 372,365 - - 3,431,138 4,081,929 4,160,296
NET INCOME:(123,815) (167,956) (155,239) (189,243) (22,094) 10,053 31,707 121,062 124,386 47,612 - - (323,527) (991,280) (591,846)
El Conquistador Cash Flow Statement
ATTACHMENT D
Consolidated Year-to-Date Financial Report through April 2021 FY 2020/2021
FY 20/21 Capital Leases/Left in Accounts
Begin Bal.Transfer Out Thru Apr. 2021
General Fund 20,899,548 41,280,560 41,280,560 1,996,139 22,316,470 8,419,332 714,036 33,445,977 28,734,131
Highway Fund 818,962 3,053,048 3,053,048 982,812 363,030 1,186,710 2,532,552 1,339,458
Seizure & Forfeiture - Justice/State 244,194 46,462 46,462 - 48,766 22,715 71,481 219,175
Community Center Fund 862,818 6,307,912 6,307,912 332,319 1,674,703 2,421,556 46,438 4,475,016 2,695,714
Municipal Debt Service Fund 169,721 100,372 1,076,200 1,176,572 6,438 1,215,445 1,221,883 124,410
Oracle Road Debt Service Fund 6,841 173,120 173,120 1,800 174,038 175,838 4,123
Water Resource System & Dev. Impact Fee Fund 16,545,872 3,506,600 3,506,600 40,500 2,324,154 298,074 2,662,728 17,389,744
Townwide Roadway Dev Impact Fee Fund 2,966,188 450,022 450,022 1,647,354 1,647,354 1,768,856
Parks & Recreation Impact Fee Fund 779,573 321,629 321,629 849,932 849,932 251,270
Police Impact Fee Fund 103,398 141,973 141,973 100,000 100,000 145,371
Capital Fund 2,410,736 757,975 1,180,762 1,938,737 1,698,868 1,698,868 2,650,605
PAG/RTA Fund 382,519 2,195,306 2,195,306 1,099,609 1,099,609 1,478,216
Water Utility 14,101,448 15,118,835 860,279 15,979,114 2,521 2,731,550 6,036,820 2,253,290 4,319,531 15,343,712 14,736,850
Stormwater Utility 628,026 1,260,076 1,260,076 650,921 272,892 51,743 975,556 912,546
Benefit Self Insurance Fund 2,088,823 3,203,042 3,203,042 2,914,873 2,914,873 2,376,992
Recreation In-Lieu Fee Fund 16,100 933 933 - 17,033
Total 63,024,767 77,917,865 3,117,241 81,035,106 2,430,979 28,356,456 20,526,007 11,894,849 - 6,007,088 69,215,379 74,844,494
Fund Revenue Other Fin Sources/
Tfrs Total In Debt Service Total OutPersonnelO&M Capital Contingency
ATTACHMENT E
General Fund Local Sales Tax Collections
FY 2020/21
CATEGORY JULY AUG SEP OCT NOV DEC JAN FEB MAR APR MAY JUNE TOTAL
Construction Sales Tax 643,435 471,705 517,101 483,032 384,176 321,621 305,338 241,562 254,568 450,343 4,072,881
Utility Sales Tax 267,771 337,260 350,040 360,019 286,715 249,286 245,891 271,681 241,698 227,632 2,837,993
Retail Sales Tax 647,068 579,089 560,008 613,570 607,315 709,153 889,306 606,222 620,243 748,368 6,580,342
Bed Tax 42,564 33,546 32,879 38,003 170,718 105,673 36,242 40,721 99,686 148,989 749,021
Restaurant & Bar Sales Tax 127,814 114,578 118,223 130,147 158,913 137,151 142,356 130,977 154,257 183,628 1,398,044
All Other Local Sales Tax *117,419 174,520 141,653 120,588 200,416 200,756 183,337 164,894 171,734 218,085 1,693,402
TOTAL 1,846,071$ 1,710,698$ 1,719,904$ 1,745,360$ 1,808,253$ 1,723,640$ 1,802,470$ 1,456,056$ 1,542,186$ 1,977,045$ 17,331,683$
FY 2019/20
CATEGORY JULY AUG SEP OCT NOV DEC JAN FEB MAR APR MAY JUNE TOTAL
Construction Sales Tax 517,637 462,244 615,858 617,534 412,787 459,531 281,257 380,036 315,236 504,767 492,156 511,642 5,570,685
Utility Sales Tax 234,537 311,362 320,239 325,272 244,544 210,285 218,262 264,950 224,019 198,472 192,478 226,165 2,970,585
Retail Sales Tax 555,057 542,964 524,735 491,087 630,262 661,184 892,958 582,264 553,726 630,299 560,570 634,962 7,260,068
Bed Tax 54,830 91,322 99,278 104,342 120,624 123,846 109,383 142,745 100,338 51,680 14,780 21,154 1,034,323
Restaurant & Bar Sales Tax 142,433 139,049 154,388 151,118 150,996 176,520 173,479 175,764 138,125 129,206 93,589 119,171 1,743,839
All Other Local Sales Tax *46,762 59,797 66,191 63,774 119,804 155,857 181,405 158,895 123,624 111,669 101,265 108,652 1,297,696
TOTAL 1,551,256$ 1,606,738$ 1,780,689$ 1,753,127$ 1,679,017$ 1,787,223$ 1,856,744$ 1,704,654$ 1,455,069$ 1,626,093$ 1,454,838$ 1,621,747$ 19,877,196$
* Note: Does not include cable franchise fees or sales tax audit revenues
ATTACHMENT F
General Fund State Shared Revenues
FY 2020/21
CATEGORY JULY AUG SEP OCT NOV DEC JAN FEB MAR APR MAY JUNE TOTAL
State Shared Income Tax 548,361 548,361 548,361 548,361 548,361 548,361 548,361 548,361 548,361 548,361 5,483,610
State Shared Sales Tax 243,577 416,638 351,744 490,371 615,415 523,608 454,947 376,182 433,435 572,504 4,478,421
County Auto Lieu 98,728 256,745 217,528 201,958 162,796 190,665 190,824 175,212 182,116 216,303 1,892,875
TOTAL 890,666$ 1,221,744$ 1,117,633$ 1,240,690$ 1,326,572$ 1,262,634$ 1,194,132$ 1,099,755$ 1,163,912$ 1,337,168$ 11,854,906$
FY 2019/20
CATEGORY JULY AUG SEP OCT NOV DEC JAN FEB MAR APR MAY JUNE TOTAL
State Shared Income Tax 489,186 489,186 489,186 489,186 489,186 489,186 489,186 489,186 489,186 489,186 489,186 489,186 5,870,232
State Shared Sales Tax 367,929 418,577 314,216 381,361 447,490 322,597 408,444 563,756 324,864 540,907 349,280 255,070 4,694,491
County Auto Lieu 89,556 184,257 174,793 173,529 183,209 157,268 177,671 183,502 159,026 80,587 138,405 371,622 2,073,425
TOTAL 946,671$ 1,092,020$ 978,195$ 1,044,076$ 1,119,885$ 969,051$ 1,075,301$ 1,236,444$ 973,076$ 1,110,680$ 976,871$ 1,115,878$ 12,638,148$
Budget and Finance Commission 3.
Meeting Date:06/15/2021
Submitted By:Michael Dyckman, Finance
SUBJECT:
PRESENTATION AND POSSIBLE DISCUSSION OF THE FIVE-YEAR FINANCIAL FORECAST THROUGH FY
2026/27
RECOMMENDATION:
This item is for presentation and discussion.
EXECUTIVE SUMMARY:
The Town's adopted financial policies provide "as a part of the annual Town budget preparation cycle, the Finance
Department shall prepare a minimum five-year financial forecast of projected revenues and expenditures to
measure the financial sustainability of the Town's operations and service levels." As such, staff will present the
five-year financial forecast through FY 2026/27 for the General Fund, Highway Fund, and Community Center Fund.
The forecast assumptions were compiled by referencing several sources of data, including the University of
Arizona, Joint Legislative Budget Committee (JLBC), State Finance Advisory Committee, Arizona Department of
Revenue, and the Arizona Department of Transportation. Staff also incorporated Town historical trend data and
professional judgment into the formulation of this forecast.
BACKGROUND OR DETAILED INFORMATION:
General Fund
The General Fund forecast demonstrates modest and reasonable growth in revenues over the next five years and
is balanced with expenditure levels that sustain current levels of programs and services, continued capital
investments, and continue the commitment to reasonable employee compensation and benefits.
The forecast for the General Fund assumes continued economic recovery with no further downturns caused by the
COVID-19 pandemic. All revenues sources are at or above pre-pandemic levels by FY 2022/23. The forecast
models local sales tax growth using several datapoints. Figures are provided by JLBC, the University of Arizona,
and the Arizona Department of Revenue. These are then combined with the Town’s analysis and trend data to form
the baseline forecast.
Continued improvement in most local sales tax categories is anticipated. Construction sales taxes remain high in
the near term, but decline beginning in FY 2024/25 as the Town approaches buildout. A modest decline in online
collections is forecasted in FY 2022/23, as some demand shifts from online activity back to traditional brick and
mortar.
The forecast assumes strong residential development continues through FY 2023/24, with a gradual decline
thereafter. Single-family residential permits are forecasted to fall below 175 per year by FY 2026/27.
Forecasted personnel expenditures in the General Fund reflect merit and step increases for employees, as well as
historical increases for insurance coverage and other employee-related costs. The General Fund forecast also
includes modest capacity for new positions. The forecast assumes the Town will continue to make PSPRS
contributions at a rate of 41.65% through FY 2026/27.
The forecast assumes operations and maintenance (O&M) costs increase on average 2% per year in most areas to
account for inflation. No changes to service levels are assumed. Annual transfers to the capital fund for CIP projects
are assumed at 5% of sales tax collections.
The ending fund balance in the General Fund is maintained at or above the Town’s adopted policy requirement of
25% of expenditures each year, ranging from approximately $10.4 - $15.1 million.
Highway Fund
Highway Fund revenues are composed primarily of State-shared highway user (gas tax) revenues. The
State-shared highway user revenue projections are provided by the Arizona Department of Transportation and are
projected to grow an average of 2.5% per year, with growth slowing to 1.5% in the outer years.
Highway Fund expenditures reflect similar assumptions as those included in the General Fund forecast for
personnel and O&M costs. Funding for the pavement preservation program is included in the forecast at $1.6-$1.9
million each year. In order to fund needed roadway CIP projects, the forecast assumes $3 million of American
Rescue Plan funds will be transferred into the Highway Fund in FY 2022/23.
Community Center Fund
Operating revenues and expenditures for the Community Center Fund largely mirror the five-year forecast that was
presented to Council on May 5th. Minor changes were made to address increased revenue impacts from the
Westward Look Resort annexation and the deferment of the golf course irrigation project.
When layering in forecasted CIP projects, the Community Center Fund exhausts its fund balance by FY 24/25. The
forecast assumes the Community Center parking lot project begins in FY 23/24, and major improvements to the
Community Center facility begin in FY 24/25. A specific funding source for these projects has not yet been
identified.
FISCAL IMPACT:
N/A
SUGGESTED MOTION:
This item is for presentation and discussion.
Attachments
Five-Year Financial Forecast
Town of Oro ValleyFive-Year ForecastFY 20/21 EstimatedFY 21/22 ProjectedFY 22/23 ProjectedFY 23/24 ProjectedFY 24/25 ProjectedFY 25/26 ProjectedFY 26/27 ProjectedBeginning Fund Balance 20,899,554 29,266,643 15,078,995 10,419,138 10,710,858 11,002,895 11,378,526REVENUESTaxes 20,365,240 21,157,707 22,858,40724,220,402 24,984,860 25,004,611 25,764,060State Shared Revenue 13,595,332 13,729,92315,005,986 14,893,105 15,506,669 16,046,479 16,709,550Charges for Services 1,964,885 2,387,7762,697,245 2,758,418 2,833,665 2,872,014 2,913,881Licenses & Permits 2,767,613 1,849,0002,543,700 2,276,554 1,961,884 1,865,616 1,781,720Grants 11,397,198 6,065,290 303,265 309,330 315,516 321,827 328,263Miscellaneous 224,700 264,000 303,600 321,816 337,907 354,802 372,542Fines 125,000 125,000 128,125 130,687 131,994 133,314 134,647Interest Income 295,445 150,000 105,000 120,750 132,825 143,451 150,624Transfers In 120,000 - - - - - - Total Revenues 51,750,413 47,073,196 45,370,753 46,482,340 47,681,584 48,245,234 49,685,786 GENERAL FUND
Town of Oro ValleyFive-Year ForecastFY 20/21 EstimatedFY 21/22 ProjectedFY 22/23 ProjectedFY 23/24 ProjectedFY 24/25 ProjectedFY 25/26 ProjectedFY 26/27 ProjectedGENERAL FUNDEXPENDITURESPersonnel 28,294,772 30,775,632 31,100,685 31,895,913 32,435,304 33,098,965 34,006,251 O&M 11,038,824 21,981,773 10,474,720 10,693,310 10,940,379 11,238,543 11,567,659 Capital Outlay 1,460,202 1,095,175 101,500 210,000 590,000 105,000 80,000 Transfers Out 2,589,520 7,408,264 8,353,705 3,391,397 3,423,864 3,427,095 3,116,331 Total Expenditures 43,383,318 61,260,844 50,030,610 46,190,620 47,389,547 47,869,603 48,770,241 Surplus/Deficit 8,367,095 (14,187,648) (4,659,857) 291,720 292,037 375,631 915,545 Ending Fund Balance 29,266,643 15,078,995 10,419,138 10,710,858 11,002,895 11,378,526 12,294,071 Reserve as % of Expenditures67.5% 28.0% 25.0% 25.0% 25.0% 25.6% 26.9%
$- $5,000,000 $10,000,000 $15,000,000 $20,000,000 $25,000,000 $30,000,000 $35,000,000 $40,000,000 $45,000,000 $50,000,000 $55,000,000 $60,000,000 $65,000,000FY 20/21EstimatedFY 21/22ProjectedFY 22/23ProjectedFY 23/24ProjectedFY 24/25ProjectedFY 25/26ProjectedFY 26/27ProjectedGeneral FundRevenues, Expenditures and Fund BalanceEXPENDITURESREVENUESFUND BALANCE
Category Assumptions
Local Sales Taxes
No annexations assumed
Assumes continued economic recovery and growth with no downturns in the 5-year forecast
All local revenue collections are at or above pre-pandemic levels by FY 2022/23
Slowing revenues in outer years of the forecast are attributable to anticipated build-out within the Town boundaries
-All categories except 3-5% growth per year in retail, restaurant/bar, utility and other categories. Overall, growth levels similar to pre-pandemic
hotel/accommodation Current forecast does not factor in possible revenues from development at Westward Look or Oro Valley Village Center
& construction Anticipated reduction in online collections as some demand shifts back to brick and mortar
-Hotel/Bed Tax
Modest growth in years three through five
- Construction Continued strong growth (4%-15%) then declines beginning in FY 2024/25 as town approaches buildout
Forecast assumes conservative levels of one-time non-specific commercial development
Overall collections begin to decline in FY 2024/25 as buildable space within the Town decreases
Assumes no further legislative changes to construction sales tax reporting
State Shared Revenues
Projections based on Joint Legislative Budget Committee report (April 2021)
Growth projections range from 1-9%
Due to delayed tax filing in CY 2020, FY 2022/23 assumes a one-time increase to state shared income taxes
Forecast assumes no changes in state income tax rate/distribution amounts to cities & towns
Charges for Services
Growth of 1-3% per year in outer years with 10% growth in first year as revenues recover
Forecast assumes a recovery of Parks & Recreation related revenues
Development revenues tied to projected permitting activity
Charges for services provided to enterprise funds increases with anticipated cost growth
Licenses & Permits
Forecast conservative, yet healthy SFR permit activity for next three fiscal years
Conservative commercial permitting activity forecast, with no specific permitting regarding the Oro Valley Village Center or
Westward Look
Slowing revenues in outer years of the forecast are attributable to anticipated build-out within current Town boundaries
Residential Building Permits -
Single Family Residential (SFR) Forecast:
FY 2021/22 - 275 (budget)
FY 2022/23 - 255
FY 2023/24 - 222
FY 2024/25 - 243
FY 2025/26 - 209
FY 2026/27 - 168
Intergovernmental
RTA transit reimbursement revenue assumptions recovery in FY 2022/23 and conservative growth thereafter
School resource officer funding kept flat at $65,000
Minimal growth in Animal Control revenues and Pima County reimbursement of Library building & maintenance costs
Coupled with the Westward Look Resort annexation, strong growth in year one (120%) and year two (7%) as sector recovers from
pandemic
GENERAL FUND FORECAST
REVENUE ASSUMPTIONS
Grant Revenues
No future stimulus funding beyond ARPA is assumed
With creation of Grants & Contributions fund in FY 2021/22, only Police overtime grant revenues are assumed in General Fund
Fines
Low growth forecast based on observed collections
Miscellaneous
Conservative growth forecast subject to economic condition and based on historic collections
Interest Income
Conservative earnings projection subject to economic condition and based on anticipated fund balance
GENERAL FUND FORECAST
EXPENDITURE ASSUMPTIONS
Expenditure Category Assumptions
Salaries and Benefits
Police step increases included each year; merits at 2.5-3% for all years in forecast
Public safety pension rates are kept at 41.65%
Health insurance premiums assume gradual increases each year of 3-4%, Other employee related expenses assumed at 1-4%
Modest capacity for new positions
Operations & Maintenance
Operating costs reflect moderate inflation and historical trends for cost increases
Forecast assumes no changes to service levels or new initiatives
Capital Outlay amounts reflect operating capital and one minor CIP project in FY 2024/25
CIP Funding
Shown as transfer out to capital projects
Annual amounts equal to roughly 5% of projected sales tax collections
Second portion of ARPA funding included as a transfer out for capital in FY 2022/23
Debt Service Transfers
Ongoing (Series 2012, 2015, 2017, 2018 and Clean Renewable Energy Bonds)
Police impact fees cover a portion of Series 2018 debt service for evidence facility and substation bond improvements
Includes current estimate of $1.3 million debt service payment for pension obligation bonds
Town of Oro ValleyFive-Year ForecastFY 20/21 EstimatedFY 21/22 ProjectedFY 22/23 ProjectedFY 23/24 ProjectedFY 24/25 ProjectedFY 25/26 ProjectedFY 26/27 ProjectedBeginning Fund Balance818,962 1,055,369 612,766 1,887,004 1,146,630 785,191 674,527 REVENUESState Shared Revenue3,560,200 3,614,922 3,759,519 3,834,709 3,853,883 3,915,545 4,001,687Licenses & Permits 28,050 25,000 26,000 26,260 26,260 26,785 27,321Interest Income 8,800 6,000 4,200 4,830 5,313 5,738 6,025Miscellaneous 2,353 2,000 2,300 2,438 2,560 2,688 2,822Transfers In - - 3,000,000 - - - - Total Revenues 3,599,403 3,647,922 6,792,019 3,868,237 3,888,016 3,950,756 4,037,855 EXPENDITURES Personnel 1,238,755 1,208,870 1,272,068 1,294,542 1,317,060 1,343,239 1,370,019 O&M 598,741 616,655 628,989 641,569 653,115 662,915 676,173 Capital Outlay1,525,500 2,265,000 3,616,724 2,672,500 2,279,280 2,055,266 1,625,000 Total Expenditures 3,362,996 4,090,525 5,517,781 4,608,611 4,249,455 4,061,420 3,671,192 Surplus/Deficit 236,407 (442,603) 1,274,238 (740,374) (361,439) (110,664) 366,663 Ending Fund Balance 1,055,369 612,766 1,887,004 1,146,630 785,191 674,527 1,041,190 HIGHWAY FUND
$- $1,000,000 $2,000,000 $3,000,000 $4,000,000 $5,000,000 $6,000,000 $7,000,000 $8,000,000FY 20/21EstimatedFY 21/22ProjectedFY 22/23ProjectedFY 23/24ProjectedFY 24/25ProjectedFY 25/26ProjectedFY 26/27ProjectedHighway FundRevenues, Expenditures and Fund BalanceEXPENDITURESREVENUESFUND BALANCE
Category Assumptions
Highway User Tax
Highway user revenues average 2.5% growth in first three fiscal years with growth slowing to 1.5% in outer years
Forecast assumes no changes in state allocation of funds to cities and towns
Miscellaneous
Low growth; minimal amount based on current trend
Transfers In
To maintain a positive fund balance, a one-time transfer of ARPA funds is forecasted in FY 2022/23
Category Assumptions
Salaries and Benefits
Merits at 2.5-3% for all years in forecast, and same increases to health and other employee expenses as General Fund
Modest capacity for new positions
Operations & Maintenance
Operating costs reflect moderate inflation and historical trends for cost increases
Assumes no changes to service levels
CIP Funding
Capital outlay is tied to 10-year CIP program. Current roadway projects exceed HURF revenues
Pavement Preservation
Assumes no significant increase in lane miles. $1.6 million base with 2-5% price increases each year
HIGHWAY FUND FORECAST
REVENUE ASSUMPTIONS
HIGHWAY FUND FORECAST
EXPENDITURE ASSUMPTIONS
FY 20/21 EstimatedFY 21/22 ProjectedFY 22/23 ProjectedFY 23/24 ProjectedFY 24/25 ProjectedFY 25/26 ProjectedFY 26/27 Projected862,818 1,896,404 1,505,541 1,445,331 1,198,116 (938,871) (2,663,324) 2,767,485 2,932,798 2,936,025 3,024,106 3,114,829 3,208,274 3,295,6743,925,182 4,339,467 4,663,787 4,777,988 4,895,350 5,125,761 5,296,965 Town of Oro Valley Five-Year Forecast Beginning Fund BalanceREVENUESTaxesCharges for Services Miscellaneous135,510 126,000 144,900 153,594 161,274 169,337 177,804Total Revenues6,828,177 7,398,265 7,744,712 7,955,688 8,171,453 8,503,372 8,770,443EXPENDITURES Personnel683,157 875,291 888,257 901,969 915,838 934,627 953,809 O&M4,548,632 4,912,818 5,064,149 5,118,531 5,200,378 5,485,230 5,736,905 Capital Outlay284,500 132,500 170,000 490,000 2,490,000 2,095,00024,000Transfers Out278,302 1,868,519 1,682,516 1,692,403 1,702,224 1,712,968 1,721,702Total Expenditures5,794,591 7,789,128 7,804,922 8,202,903 10,308,440 10,227,825 8,436,416 Surplus/Deficit1,033,586 (390,863) (60,210) (247,215) (2,136,987) (1,724,453) 334,027 Ending Fund Balance1,896,404 1,505,541 1,445,331 1,198,116 (938,871) (2,663,324) (2,329,297) COMMUNITY CENTER FUND
$(4,000,000) $(2,000,000) $- $2,000,000 $4,000,000 $6,000,000 $8,000,000 $10,000,000 $12,000,000FY 20/21EstimatedFY 21/22ProjectedFY 22/23ProjectedFY 23/24ProjectedFY 24/25ProjectedFY 25/26ProjectedFY 26/27ProjectedCommunity Center FundRevenues, Expenditures and Fund BalanceEXPENDITURESREVENUESFUND BALANCE
Category Assumptions
Local Sales Taxes
Categories mirror General Fund forecast, where appropriate
Assumes continued economic recovery and growth with no downturns in the 5-year forecast
3-5% growth per year in retail, restaurant/bar and other categories. Overall, growth levels similar to pre-pandemic
Current forecast does not factor in possible revenues from development at Westward Look or Oro valley Village Center
Anticipated reduction in online collections as some demand shifts back to brick and mortar
Half cent collections do not include utility, construction or bed taxes
Charges for Services
Growth levels largely mirror forecast presented to Council in May
Forecast assumes a recovery of Parks & Recreation related revenues
Golf related revenues are directly related to Pro Forma
Figures assume revenues from the Pusch course
Miscellaneous
Conservative growth forecast subject to economic condition and based on historic collections
Assumes $125,000 HOA contribution each year
EXPENDITURE ASSUMPTIONS
Expenditure Category Assumptions
Salaries and Benefits
Merits at 2.5-3% for all years in forecast, and same increases to health and other employee expenses as General Fund
Assumes no new positions
Operations & Maintenance
Operating costs at similar levels presented to Council in May
Most O&M areas include 1.5-2% increases per year.
Forecast includes Pusch course
CIP Funding
Capital outlay is tied to 10-year CIP program
Assumes $790,000 over two years (FY23/24 - FY24/25) for community center parking lot
Assumes $4 million over two years (FY24/25 - FY25/26) for community center improvements
Debt Service Transfers
Transfers out are for ongoing and future debt service payments
Includes current estimate of $1.7 million debt service payment for $25 million of parks related bonding,
to be paid from half-cent collections
COMMUNITY CENTER FUND FORECAST
REVENUE ASSUMPTIONS
COMMUNITY CENTER FUND FORECAST