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HomeMy WebLinkAboutPackets - Budget and Finance Committee (36)       AGENDA  BUDGET AND FINANCE COMMISSION REGULAR SESSION JUNE 21, 2022 COUNCIL CHAMBERS 11000 N. LA CAÑADA DRIVE        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, 2022 REGULAR SESSION MEETING MINUTES   2.PRESENTATION AND POSSIBLE DISCUSSION OF THE TOWN'S FY 21/22 FINANCIAL UPDATE THROUGH APRIL 2022 (Please reference attachments)   3.PRESENTATION AND POSSIBLE DISCUSSION REGARDING THE TOWN'S FIVE-YEAR FINANCIAL FORECAST THROUGH FY 2027/28   4.PRESENTATION AND DISCUSSION OF THE TOWN FY2023 ADOPTED BUDGET   COUNCIL LIAISON COMMENTS   FUTURE AGENDA ITEMS   ADJOURNMENT   POSTED: 6/17/22 at 5 PM by D.T. 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  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 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.  If you wish to address the Commission 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 Recording Secretary. Please indicate on the 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 when completing the blue speaker card.  Please step forward to the podium when the Chair announces the item(s) on the agenda which you are interested in addressing. 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 the Commission. Please organize your speech, you will only be allowed to address the Commission once regarding the topic being discussed. 3. Please limit your comments to 3 minutes. 4. During “Call to Audience”, you may address the Commission on any issue you wish. 5. Any member of the public speaking must speak in a courteous and respectful manner to those present. 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:06/21/2022   Submitted By:Alison Cote, Legal SUBJECT: REVIEW AND APPROVAL OF THE MAY 17, 2022 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, 2022 regular session meeting minutes" Attachments Draft Minutes 5/17/22  D R A F T MINUTES BUDGET AND FINANCE COMMISSION REGULAR SESSION MAY 17, 2022 COUNCIL CHAMBERS 11000 N. LA CAÑADA DRIVE            REGULAR SESSION AT OR AFTER 4:00 PM   CALL TO ORDER - Chair Solverson called the meeting to order at 4:06 P.M.   ROLL CALL Present: Cathy Solverson, Chair Michael Mason, Vice Chair James Beasley, Commissioner, Attending via Zoom John Fortunato, Commissioner Jack Longley, Commissioner Staff Present:David Gephart, Chief Financial Officer Mary Jacobs, Town Manager Chris Hutchison, Senior Budget Analyst Tobin Sidles, Legal Services Director Attendees: Joseph Winfield, Town Council Liaison PLEDGE OF ALLEGIANCE - 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 reported on the following: - Town Staff is updating the town's 5 Year Forecast and 10 Year CIP. - Town Manager's budget will be presented to council on 6/1/22 and adopted on 6/15/22   REGULAR SESSION AGENDA   1.REVIEW AND APPROVAL OF THE APRIL 19, 2022 REGULAR SESSION MEETING MINUTES       Motion by Vice Chair Michael Mason, seconded by Commissioner John Fortunato to approve the April 19, 2022 meeting minutes as written.  Vote: 5 - 0 Carried   2.DISCUSSION OF TOWN MANAGER'S RECOMMENDED BUDGET FOR FY 22/23       Staff answered questions from Commissioners regarding Agenda Item #2.   3.PRESENTATION AND POSSIBLE DISCUSSION OF THE TOWN'S FY 21/22 FINANCIAL UPDATE THROUGH MARCH 2022 (Please reference attachments)       Chief Financial Officer David Gephart presented on Agenda Item #3. Discussion ensued amongst staff and commissioners.   COUNCIL LIAISON COMMENTS Mayor Joseph Winfield commented on the following: - Budget sessions were a success - The agenda items for the Town Council meeting the following night   FUTURE AGENDA ITEMS - Update on Steam Pump Ranch's future   ADJOURNMENT    Motion by Vice Chair Michael Mason, seconded by Commissioner, Attending via Zoom James Beasley to adjourn the meeting at 5:25 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 17 day of May, 2022. I further certify that the meeting was duly called and held and that a quorum was present. Dated this 19 day of May, 2022. ___________________________ Alison Cote Legal Secretary    Budget and Finance Commission 2. Meeting Date:06/21/2022   Submitted By:Christopher Hutchison, Finance SUBJECT: PRESENTATION AND POSSIBLE DISCUSSION OF THE TOWN'S FY 21/22 FINANCIAL UPDATE THROUGH APRIL 2022 (Please reference attachments) RECOMMENDATION: N/A EXECUTIVE SUMMARY: Please reference attachments BACKGROUND OR DETAILED INFORMATION: Please reference attachments FISCAL IMPACT: N/A SUGGESTED MOTION: N/A Attachments Council Memo - April 2022 Financial Update  Attachment A - General Fund  Attachment B - Highway Fund  Attachment C-1 - Community Center Fund  Attachment C-2 Golf Contractor P&L  Attachment D - Summary All Funds  Attachment E - Gen Fund Local Sales Tax  Attachment F - Gen Fund State Shared Revenues  April 2022 Presentation  Town Manager’s Office TOWN COUNCIL REPORT DATE: June 15, 2022 TO: Mayor and Council THRU: Mary Jacobs, Town Manager FROM: David Gephart, Chief Financial Officer SUBJECT: April 2022 Financial Update This financial update is intended to provide an overview and status of revenues and expenditures for the Town’s selected funds through April 2022 for fiscal year 2021/22. 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: With two months remaining of the fiscal year, revenues continue to significantly outperform budget expectations. In addition, expenditure savings are anticipated in the Town’s major funds. The General Fund and Community Center Fund in particular, should end the fiscal year with substantially higher fund balances than projected. Further details on revenues and expenditures are as follows. General Fund General Fund revenues and expenditures are trending better than expected through April (see attachment A). Revenues total $42.4 million or 90.1% of budget, while expenditures are at $46.7 million or 76.3% of the total budget. Highway Fund Highway Fund revenues and expenditures are trending better than expected through April (see attachment B). Revenues total $3.3 million or 89.6% of budget, while expenditures total $3.4 million or 82.8% of budget. Community Center Fund Revenues and expenditures for the Community Center Fund are trending better than expected through April (see attachment C-1 & C-2). Revenues total $8.4 million or 112.9% of budget while expenditures total $4.9 million or 63.0% 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: $53,270,162 Less: Expenditures: ($59,175,458) Preliminary Estimated Decrease in Fund Balance: ($5,905,296)* *Note that the budgeted decrease in fund balance for FY 21/22 is $14.2 million. General Fund Revenues • Local sales tax collections in the General Fund total $20.7 million or 98.0% of the budgeted amount of $21.2 million and are performing better than anticipated. Retail collections total $7.4 million, which is $830,749 or 12.6% higher than collections from the same time period last fiscal year. Both restaurant/bar collections as well as bed tax collections are up 40.4% and 162.3% respectively compared to collections from the same time period last fiscal year. Construction sales tax collections total $5.8 million through April 2022, which is $1,739,951 or 42.7% higher than collections from the same time period last fiscal year. Total local sales tax revenue in the General Fund is expected to come in $4.9 million above budget due to strong performance across most tax categories. Please see attachment E for detailed information on General Fund local sales tax collections. • License and permit revenues total $2.1 million or 115.5% of the budget amount of $1.8 million. Single Family Residential (SFR) permits issued through April total 173 and are a large portion of this revenue piece. This revenue category is expected to come in $532,500 or 28.8% over budget at this time due to commercial building activity and rebounding residential permit issuances over the past two months. • State shared revenues total $12.3 million or 89.2% of the budget amount of $13.7 million. These revenues sources are comprised of state shared sales taxes, state shared income taxes, auto-lieu fees, and Smart and Safe shared taxes. At this point in time, these revenues are forecasted to come in $542,000 or 3.9% over budget due to higher-than-expected collections. • Charges for services revenues total $2.2 million or 91.2% of the budget amount of $2.4 million. A large portion of these revenues are associated with Parks & Recreation program revenues, which are showing strong recovery. Charges for services are forecasted to come in over budget by $127,000, or 5.3%. General Fund Expenditures • General Fund expenditures are trending better than expected through April, with overall savings of $2.1 million, or 3.4% expected for the fiscal year. In General Administration, the Town has recorded a one-time, budgeted $10.0 million payment to PSPRS to pay down the unfunded liability. Personnel expenditures are expected to be approximately $628,000 less than budgeted due to various position vacancies. • Transfers out of the General Fund are expected to be $1.1 million less than budgeted due to the pension obligation bonds that were issued in July. The Town budgeted a full debt service payment; however, only an interest payment is due this year. The General Fund is expected to end the fiscal year with a total fund balance of $26.5 million, or 49.2% of budgeted expenditures. HIGHWAY FUND Highway Fund Revenues • State shared highway user funds total $3.2 million or 89.3% of the budget amount of $3.6 million. At this point in time, these revenues are projected to have a favorable budget variance of $255,000 or 7.1%. With positive trends in the fund’s other minor revenue sources, overall revenues are projected to come in at a favorable budget variance of $268,000 or 7.3%. Highway Fund Expenditures • Highway Fund expenditures though April are at $3.4 million or 82.8% of the adopted budget of $4.1 million. Capital projects and spending, including that for the pavement preservation program, are nearly complete for the fiscal year. Pavement preservation work is expected to complete the final phase for the year in May. Highway Fund expenditures are projected to come in about $21,000 or 0.5% below budget, due to slight savings in personnel costs. 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 contracted and Town-managed operations. Attachment C-2 shows the monthly line-item detail for the contractor-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 $8.4 million or 112.9% of the budget amount of $7.4 million. • Contracted operating revenues total about $4.1 million through April. This is approximately $790,000 or 23.5% higher than revenues from the same time period last fiscal year. At this time, contracted revenues are estimated to come in about $852,000 or 23.5% higher than budgeted due to anticipated, across-the-board outperformance compared to budget. • Town operating revenues for April are $1.1 million, a significant increase from the same time period last year due primarily to a recovery in recreation program revenue and member dues. Town operating revenues are expected to end the fiscal year with a favorable budget variance of $511,000 or 73.3%. • Local sales tax revenues for April total $2.9 million or 99.2% of the budget amount of $2.9 million. These collections are currently projected to have a favorable budget variance of nearly $500,000 or 17.0%. Community Center Fund Expenditures • Expenditures in the Community Center Fund total $4.9 million or 63.0% of the budgeted amount of $7.8 million. • Contracted operating expenditures total $3.8 million, or 80.9% of the budgeted amount of $4.7 million. Contracted expenditures are estimated to come in approximately $191,000 or 4.1% under budget, due to anticipated O&M and personnel savings. • Transfers out are expected to be $1.6 million less than budget. This is due to the Town having budgeted a full debt service payment for the newly issued Parks and Recreation bonds whereas only an interest payment is due this year. • At this time, the Community Center Fund is projected to end the fiscal year with a total fund balance of just over $5.9 million. With the most recent year-end projections provided by the golf contractor, the Town is not expecting any year-end sales tax support for golf operations. The projected net loss of $36,172 for contracted golf operations will be covered by $159,050 in outside HOA contributions, and approximately $83,000 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 attachment 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 20,740,860 21,157,707 98.0% 26,070,335 23.2% LICENSES & PERMITS 2,136,446 1,849,000 115.5% 2,381,500 28.8% FEDERAL GRANTS 3,554,330 5,990,290 59.3% 6,068,448 1.3% STATE GRANTS 59,366 75,000 79.2% 75,000 0.0% STATE/COUNTY SHARED 12,250,040 13,729,923 89.2% 14,271,621 3.9% OTHER INTERGOVERNMENTAL 1,085,833 1,344,500 80.8% 1,364,700 1.5% CHARGES FOR SERVICES 2,177,972 2,387,776 91.2% 2,514,733 5.3% FINES 109,970 125,000 88.0% 125,000 0.0% INTEREST INCOME 152,674 150,000 101.8% 150,000 0.0% MISCELLANEOUS 128,964 264,000 48.9%248,825 -5.7% TOTAL REVENUES 42,396,455 47,073,196 90.1% 53,270,162 13.2% % Actuals YE % Variance to Budget to Budget EXPENDITURES CLERK 300,249 383,833 78.2% 380,230 -0.9% COMMUNITY & ECON. DEV. 2,249,465 3,044,614 73.9% 2,974,807 -2.3% COUNCIL 168,480 188,720 89.3% 188,109 -0.3% FINANCE 756,533 979,655 77.2% 944,743 -3.6% GENERAL ADMINISTRATION 12,228,960 14,459,559 84.6% 14,079,934 -2.6% HUMAN RESOURCES 368,135 535,390 68.8% 472,390 -11.8% INNOVATION & TECHNOLOGY 3,336,767 4,346,583 76.8% 4,273,811 -1.7% LEGAL 694,540 902,754 76.9% 883,661 -2.1% MANAGER 866,436 1,115,224 77.7% 1,107,750 -0.7% PARKS & RECREATION 2,731,917 3,446,361 79.3% 3,423,479 -0.7% POLICE 13,620,778 18,171,000 75.0% 17,851,347 -1.8% PUBLIC WORKS 4,291,165 5,364,091 80.0% 5,539,578 3.3% TOWN COURT 685,004 914,796 74.9% 792,786 -13.3% TRANSFERS OUT 4,424,073 7,408,264 59.7%6,262,832 -15.5% TOTAL EXPENDITURES 46,722,501 61,260,844 76.3% 59,175,458 -3.4% CHANGE IN FUND BALANCE (4,326,046) (14,187,648) (5,905,296) BEGINNING FUND BALANCE 32,408,542 Plus: Surplus / (Use of Fund Balance)(5,905,296) ENDING FUND BALANCE **26,503,246 * Year-end estimates are subject to further revision ** Ending fund balance amounts are estimates and are subject to further revision FY 2021/2022 Year End Estimate * Budget Year End Estimate * Actuals thru 4/2022 Actuals thru 4/2022 Budget ATTACHMENT B April YTD Financial Status FY 2021/2022 % Budget Completion through April --- 83.3% Actuals thru 4/2022 Budget % Actuals to Budget Year End Estimate * YE % Variance to Budget REVENUES - LICENSES & PERMITS 24,776 25,000 99.1% 30,000 20.0% STATE/COUNTY SHARED 3,228,827 3,614,922 89.3% 3,870,000 7.1% INTEREST INCOME 9,545 6,000 159.1% 8,000 33.3% MISCELLANEOUS 5,620 2,000 281.0%8,000 300.0% TOTAL REVENUES 3,268,768 3,647,922 89.6% 3,916,000 7.3% Actuals thru 4/2022 Budget % Actuals to Budget Year End Estimate * YE % Variance to Budget EXPENDITURES TRANSPORTATION ENGINEERING 3,109,244 3,766,525 82.5% 3,745,678 -0.6% STREET MAINTENANCE 279,301 324,000 86.2%324,000 0.0% TOTAL EXPENDITURES 3,388,545 4,090,525 82.8% 4,069,678 -0.5% CHANGE IN FUND BALANCE (119,777) (442,603) (153,678) BEGINNING FUND BALANCE 1,242,978 Plus: Surplus / (Use of Fund Balance) (153,678) ENDING FUND BALANCE ** 1,089,300 * 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 2,333,502 1,966,245 118.7% 2,402,510 22.2% Member Dues 949,144 957,000 99.2% 1,123,086 17.4% Food & Beverage 567,119 473,465 119.8% 629,269 32.9% Merchandise & Other 298,964 225,675 132.5%319,464 41.6% 4,148,729 3,622,385 114.5% 4,474,329 23.5% TOWN OPERATING REVENUES Daily Drop-Ins 46,793 30,000 156.0% 53,500 78.3% Member Dues 593,680 526,480 112.8% 650,000 23.5% Recreation Programs 378,683 82,500 459.0% 420,000 409.1% Swim Team/Swim Lessons - 8,000 0.0% - -100.0% Facility Rental Income 74,978 50,500 148.5%85,000 68.3% 1,094,134 697,480 156.9% 1,208,500 73.3% OTHER REVENUES Local Sales Tax 2,908,238 2,932,798 99.2% 3,430,364 17.0% Real Property Rental Income 19,502 19,502 100.0% 19,502 0.0% Interest Income 14,082 1,000 1408.2% 15,594 1459.4% Miscellaneous 167,929 125,100 134.2%168,000 34.3% 3,109,751 3,078,400 101.0% 3,633,460 18.0% TOTAL REVENUES 8,352,614 7,398,265 112.9% 9,316,289 25.9% % Actuals YE % Variance to Budget to Budget EXPENDITURES CONTRACTED OPERATING EXPENDITURES Personnel 1,213,174 1,641,903 73.9% 1,541,284 -6.1% Food & Beverage 472,493 445,441 106.1% 510,292 14.6% Operations & Maintenance 1,971,786 2,429,634 81.2% 2,285,843 -5.9% Equipment Leases 144,528 184,550 78.3%173,082 -6.2% 3,801,981 4,701,528 80.9% 4,510,501 -4.1% TOWN OPERATING EXPENDITURES Personnel 649,687 875,291 74.2% 891,376 1.8% Operations & Maintenance 193,000 211,290 91.3%231,060 9.4% 842,687 1,086,581 77.6% 1,122,436 3.3% CAPITAL OUTLAY 92,782 132,500 70.0% 132,500 0.0% TRANSFERS OUT 168,519 1,868,519 9.0% 315,658 -83.1% TOTAL EXPENDITURES 4,905,969 7,789,128 63.0% 6,081,095 -21.9% CHANGE IN FUND BALANCE 3,446,645 (390,863) 3,235,194 BEGINNING FUND BALANCE 2,676,793 Plus: Surplus / (Use of Fund Balance)3,235,194 ENDING FUND BALANCE **5,911,987 * Year-end estimates are subject to further revision ** Ending fund balance amounts are estimates and are subject to further revision FY 2021/2022 Actuals thru 4/2022 Budget Year End Estimate * Community Center Fund Actuals thru 4/2022 Budget Year End Estimate * ATTACHMENT C-2 Budget Last Year Budget Last Year Actual Budget Variance Last Year Variance Actual Budget Variance Last Year Variance Rounds 3,542 3,000 542 3,591 (49)Rounds ‐ Member 29,493 23,200 6,293 27,750 1,743 1,294 580 714 574 720 Rounds ‐ Outing 6,980 3,580 3,400 3,203 3,777 5,916 4,625 1,291 5,698 218 Rounds ‐ Public 49,232 42,670 6,562 41,800 7,432 ==================================================================================================================================================================== 10,752 8,205 2,547 9,863 889 Total Rounds 85,705 69,450 16,255 72,753 12,952 Revenue 276,713 201,350 75,363 241,815 34,898 Green Fees 2,055,826 1,602,975 452,851 1,663,440 392,386 27,717 19,590 8,127 23,767 3,949 Cart Fees 238,333 194,135 44,198 212,476 25,858 3,339 4,000 (661)5,323 (1,984)Driving Range 39,342 43,500 (4,158)43,152 (3,810) 273 0 273 0 273 Golf Cards/Passes 19,758 0 19,758 0 19,758 37,327 18,600 18,727 27,458 9,869 Pro Shop Sales 211,610 174,600 37,010 194,457 17,153 47,439 31,400 16,039 28,154 19,285 Food (Food & Soft Drinks) 290,419 212,965 77,454 146,972 143,447 38,022 24,300 13,722 31,670 6,353 Beverages (Alcohol) 250,547 198,925 51,622 205,684 44,863 4,701 0 4,701 867 3,834 Other Food & Beverage Revenue 26,153 0 26,153 2,791 23,362 3,922 1,700 2,222 3,325 598 Other Golf Revenues (Club Rent, Handica 31,105 12,325 18,780 22,633 8,472 3,724 1,250 2,474 2,146 1,578 Clinic / School Revenue 26,906 9,250 17,656 20,625 6,281 101,228 82,000 19,228 94,466 6,761 Dues Income ‐ Monthly Dues 949,144 804,500 144,644 841,466 107,678 2,374 0 2,374 (712)3,086 Miscellaneous Income and Discounts 9,585 0 9,585 4,602 4,983 ================================================================================= ============================================================= ================ 546,778 384,190 162,588 458,278 88,500 Total Revenue 4,148,729 3,253,175 895,554 3,358,298 790,431 Cost of Sales 26,380 12,980 (13,400)19,847 (6,533)COGS ‐ Pro Shop 148,666 128,430 (20,236)134,420 (14,246) 12,903 8,943 (3,960)6,859 (6,045)COGS ‐ Food 83,510 57,045 (26,465)43,380 (40,131) 2,357 1,290 (1,067)1,523 (834)COGS ‐ Non‐Alcoholic Beverages 14,357 12,030 (2,327)11,957 (2,400) 13,105 7,290 (5,815)10,072 (3,033)COGS ‐ Alcohol 77,470 59,678 (17,793)60,930 (16,540) ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ 54,746 30,503 (24,243)38,301 (16,445)Total Cost of Sales 324,004 257,183 (66,821)250,687 (73,317) ================================================================================= ============================================================= ================ 492,033 353,687 138,346 419,978 72,055 GROSS INCOME 3,824,725 2,995,992 828,733 3,107,611 717,114 Labor 39,064 33,482 (5,582)27,779 (11,285)Golf Operation Labor 301,274 305,618 4,344 248,332 (52,941) 8,913 10,513 1,599 8,654 (260)General and Administrative 95,239 118,225 22,986 98,312 3,073 54,994 64,374 9,380 52,702 (2,292)Maintenance and Landscaping 582,276 651,571 69,294 561,455 (20,822) 26,370 20,603 (5,767)19,923 (6,448)F&B 226,449 182,334 (44,115)166,173 (60,276) 5,955 5,671 (283)6,268 313 Sales and Marketing 65,362 59,213 (6,150)63,689 (1,673) ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ 135,297 134,643 (654)115,326 (19,971)Total Direct Labor 1,270,600 1,316,960 46,360 1,137,961 (132,639) 12,181 12,791 611 9,907 (2,273)Total Payroll Taxes 101,943 125,111 23,168 103,320 1,377 11,958 12,500 542 9,850 (2,108)Total Medical/Health Benefits 84,801 125,000 40,199 103,563 18,762 2,693 2,080 (613)1,743 (950)Total Workmans Comp 23,409 20,700 (2,709)17,200 (6,209) ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ 26,831 27,371 540 21,500 (5,331)Total Payroll Burden 210,152 270,811 60,659 224,083 13,931 ================================================================================= ============================================================= ================ 162,128 162,014 (114)136,826 (25,302)Total Labor 1,480,752 1,587,771 107,019 1,362,044 (118,708) Other Operational Expenses 14,786 6,970 (7,816)4,414 (10,373)Golf Ops 82,370 52,330 (30,040)69,380 (12,990) 12,491 12,605 114 14,704 2,213 G&A 124,139 112,765 (11,374)145,836 21,697 32,678 26,350 (6,328)13,333 (19,346)Maintenance 506,375 455,450 (50,925)405,578 (100,797) 3,939 4,710 771 2,652 (1,287)F&B 29,577 52,200 22,623 24,768 (4,809) 1,346 2,850 1,504 3,993 2,647 Sales and Marketing 18,285 20,775 2,490 24,748 6,463 15,394 14,783 (611)13,041 (2,353)Golf Cart Leases 144,528 147,838 3,310 126,864 (17,664) 0 0 0 0 0 Equipment Leases 0 0 0 41,928 41,928 98,726 86,000 (12,726)88,512 (10,214)Utilities ‐ Maintenance 773,419 934,600 161,181 775,600 2,181 15,355 12,425 (2,930)18,909 3,554 Utilities ‐ G&A 153,626 137,880 (15,746)203,183 49,557 10,200 10,200 0 10,000 (200)Management Fees 102,000 102,000 0 100,000 (2,000) 4,000 3,300 (700)3,380 (620)Insurance ‐ P&C 38,122 33,000 (5,122)43,170 5,049 ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ 208,916 180,193 (28,723)172,939 (35,977)Total Other Operational Expenses 1,977,040 2,048,838 71,798 1,961,054 (15,986) ================================================================================= ============================================================= ================ 371,044 342,207 (28,837)309,765 (61,279)Total Expenses 3,457,792 3,636,609 178,818 3,323,098 (134,694) ================================================================================= ============================================================= ================ 120,989 11,480 109,509 110,212 10,776 EBITDAR 366,933 (640,617)1,007,550 (215,487)582,420 ================================================================================= ============================================================= ================ 120,989 11,480 109,509 110,212 10,776 EBITDA 366,933 (640,617)1,007,550 (215,487)582,420 Interest Expense/Dep&Amt 0 0 0 8,728 8,728 Other Expense (343)0 343 48,946 49,289 0 0 0 0 0 Capital Improvements/Cap Reserve 20,529 0 (20,529)0 (20,529) ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ 0 0 0 8,728 8,728 Total Interest Expense 20,186 0 (20,186)48,946 28,760 ================================================================================= ============================================================= ================ 120,989 11,480 109,509 101,484 19,504 Net Income 346,748 (640,617)987,365 (264,433)611,180 El Conquistador Golf Club For the Month Ending April 30th, 2022 April YTD ATTACHMENT DConsolidated Year-to-Date Financial Report through April 2022FY 2021/2022FundFY 21/22Beginning BalanceRevenueOther Fin Sources/TransfersTotal In Personnel O&M CapitalDebt ServiceCapital Leases /Transfer OutTotal OutLeft in Accounts Through Apr. 2022General Fund 32,408,542 42,396,454 42,396,454 23,645,835 18,257,205 395,388 4,424,073 46,722,501 28,082,495 Highway Fund 1,242,979 3,268,768 3,268,768 950,314 428,574 2,009,657 3,388,545 1,123,202 Grants and Contributions Fund - 147,030 147,030 26,079 40,625 66,704 80,326 Seizure & Forfeiture - Justice/State 266,810 89,051 89,051 123,461 123,461 232,400 Community Center Fund 2,676,793 8,352,614 8,352,614 1,862,861 2,637,279 92,782 313,047 4,905,969 6,123,438 Municipal Debt Service Fund 165,436 90,178 19,210,226 19,300,404 17,981,083 1,517,152 19,498,235 (32,395) Oracle Road Debt Service Fund 4,194 16 16 - 4,210 Water Resource System & Dev. Impact Fee Fund 18,744,638 1,135,057 1,135,057 75,000 1,411,762 319,207 1,805,969 18,073,726 Townwide Roadway Dev Impact Fee Fund 1,978,878 290,454 290,454 46,905 46,905 2,222,427 Parks & Recreation Impact Fee Fund 316,645 164,036 164,036 - 480,681 Police Impact Fee Fund 168,764 77,352 77,352 117,750 117,750 128,366 Capital Fund 2,504,029 911,531 28,844,742 29,756,273 84,998 367,932 3,476,081 3,929,011 28,331,291 PAG/RTA Fund 1,248,618 38,750 38,750 367,045 367,045 920,323 Water Utility 13,666,981 15,186,196 15,186,196 2,750,594 6,437,983 1,313,091 4,215,022 2,402 14,719,092 14,134,085 Stormwater Utility 1,001,740 1,293,972 1,293,972 681,418 253,549 934,967 1,360,745 Benefit Self Insurance Fund 2,379,019 3,228,342 3,228,342 2,589,663 2,589,663 3,017,698 Recreation In-Lieu Fee Fund 17,045 65 65 - 17,110 Total 78,791,110 76,669,866 48,054,968 124,724,834 29,976,020 49,177,808 9,153,336 6,051,381 4,857,272 99,215,817 104,300,127 ATTACHMENT EGeneral Fund Local Sales Tax Collections FY 2021/22CATEGORY JULYAUGSEPOCTNOVDECJANFEBMARAPRMAYJUNETOTALConstruction Sales Tax 441,038 419,552 651,924 906,165 509,231 436,821 829,833 525,234 491,178 601,856 479,663 273,391 5,812,832 Utility Sales Tax 321,489 383,548 329,545 323,173 285,048 238,499 253,620 474,092 115,418 252,114 251,434 268,457 2,976,546 Retail Sales Tax 675,726 647,693 641,711 682,029 727,762 814,794 1,015,258 701,089 686,381 818,648 760,456 733,343 7,411,091 Bed Tax 130,217 117,012 93,538 108,884 392,162 157,378 205,021 181,927 257,471 321,178 139,582 132,352 1,964,788 Restaurant & Bar Sales Tax 172,386 162,947 172,178 195,482 227,724 191,664 226,775 199,622 206,978 206,978 201,487 202,109 1,962,735 All Other Local Sales Tax *181,767 180,252 164,385 191,016 284,083 217,626 274,274 225,089 254,639 311,967 191,120 196,586 2,285,098 TOTAL 1,922,624$ 1,911,004$ 2,053,282$ 2,406,749$ 2,426,009$ 2,056,782$ 2,804,781$ 2,307,053$ 2,012,064$ 2,512,741$ 2,023,742$ 1,806,238$ 22,413,089$ FY 2020/21CATEGORY JULYAUGSEPOCTNOVDECJANFEBMARAPRMAYJUNETOTALConstruction Sales Tax 643,435 471,705 517,101 483,032 384,176 321,621 305,338 241,562 254,568 450,343 409,924 442,859 4,925,664 Utility Sales Tax 267,771 337,260 350,040 360,019 286,715 249,286 245,891 271,681 241,698 227,632 221,458 205,402 3,264,853 Retail Sales Tax 647,068 579,089 560,008 613,570 607,315 709,153 889,306 606,222 620,243 748,368 700,138 692,038 7,972,518 Bed Tax 42,564 33,546 32,879 38,003 170,718 105,673 36,242 40,721 99,686 148,989 144,442 130,433 1,023,896 Restaurant & Bar Sales Tax 127,814 114,578 118,223 130,147 158,913 137,151 142,356 130,977 154,257 183,628 167,142 191,389 1,756,575 All Other Local Sales Tax *117,419 174,520 141,653 120,588 200,416 200,756 183,337 164,894 171,734 218,085 193,522 201,188 2,088,112 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$ 1,836,626$ 1,863,309$ 21,031,618$ * Note: Does not include cable franchise fees or sales tax audit revenues ATTACHMENT FGeneral Fund State Shared RevenuesFY 2021/22CATEGORY JULYAUGSEPOCTNOVDECJANFEBMARAPRMAYJUNETOTALState Shared Income Tax 500,637 500,637 517,313 517,313 517,313 517,313 517,313 517,313 517,313 517,313 4,622,465 State Shared Sales Tax 291,674 534,620 464,795 538,626 428,064 680,044 569,532 458,855 555,746 671,412 4,521,956 County Auto Lieu 100,364 178,439 214,084 179,539 176,572 183,593 166,138 185,396 187,906 231,739 1,572,031 Smart and Safe- - - - - 113,051 - 59 15 - 113,125 TOTAL 892,675$ 1,213,696$ 1,196,192$ 1,235,478$ 1,121,949$ 1,494,001$ 1,252,983$ 1,161,623$ 1,260,980$ 1,420,464$ 12,250,040$ FY 2020/21CATEGORY JULYAUGSEPOCTNOVDECJANFEBMARAPRMAYJUNETOTALState Shared Income Tax 548,361 548,361 548,361 548,361 548,361 548,360 548,361 548,361 548,361 548,361 548,361 548,361 6,580,331 State Shared Sales Tax 243,577 413,638 354,744 490,371 357,106 523,608 454,947 376,182 433,435 572,504 533,021 709,210 5,462,343 County Auto Lieu 98,728 256,745 217,528 201,958 162,796 190,665 190,824 175,212 182,116 216,303 197,466 302,323 2,392,664 Smart and Safe- - - - - - - - - - - 47,246 47,246 TOTAL 890,666$ 1,218,744$ 1,120,633$ 1,240,690$ 1,068,263$ 1,262,633$ 1,194,132$ 1,099,755$ 1,163,912$ 1,337,168$ 1,278,848$ 1,607,140$ 14,482,584$ Fiscal Year 2021/22 Financial Update Through April 2022 June 21, 2022 GENERAL FUND REVENUES REVENUE SOURCE Budget Actuals Thru 4/2022 % of Budget Year-End Estimate Notes Local Sales Taxes $ 21,157,707 $ 20,740,860 98.0%$ 26,070,335 Trending higher than expected; continued growth and strong recovery in categories impacted by COVID State Shared Revenues 13,729,923 12,250,040 89.2%14,271,621 Trending higher than expected; new Smart & Safe funds received this year Charges for Services 2,387,776 2,177,972 91.2%2,514,733 Trending higher than expected; improvement in recreation revenue Licenses & Permits 1,849,000 2,136,446 115.5%2,381,500 Trending higher than budgeted due to several large commercial projects; SFR permits , which slowed considerably for first half of year, now picking up Grant Revenue 6,065,290 3,613,696 59.6%6,143,448 Year-end estimate includes amount of American Rescue Plan Act (ARPA) funds recognized this year All Other 1,883,500 1,477,441 78.4%1,888,525 Includes other intergovernmental revenue, interest income and miscellaneous revenue TOTAL GENERAL FUND REVENUES $ 47,073,196 $ 42,396,455 90.1%$ 53,270,162 Budget variance due to outperforming sales tax collections, state shared revenue and permit revenue GENERAL FUND EXPENDITURES EXPENDITURE CATEGORY Budget Actuals Thru 4/2022 % of Budget Year-End Estimate Notes Personnel $ 30,775,632 $ 23,645,835 76.8%$ 29,547,575 Year to date actuals are slightly below budget due to timing of payroll and vacancy savings. Reduced year-end estimate due to personnel vacancies in several departments. Operations & Maintenance 21,981,773 18,257,205 83.1%22,098,831 Includes $10M PSPRS payment from reserves. Added Smart & Safe funds to year-end estimate. Capital 1,095,175 395,388 36.1%666,219 Budget includes Westward Look improvements; IT needs and Parks & Recreation improvements. Added Smart & Safe funds to year-end estimate. Transfers Out 7,408,264 4,424,073 59.7%6,262,832 Actuals reflect a transfer for debt service and budgeted transfers to the Capital Fund. No principal payment due in FY 21/22 for pension obligation bonds. TOTAL GENERAL FUND EXPENDITURES $ 61,260,844 $ 46,722,501 76.3%$ 58,575,458 Budget variance mainly due to debt service transfer for pension obligation bonds Budgeted Use of Fund Balance: ($14.2M) Estimated Use of Fund Balance = ($5.9M) Estimated Ending Fund Balance: $26.5M 49.2% of budgeted expenditures Exceeds Council 25% Policy by $13.0M GENERAL FUND $41.3M $33.4M $42.4M $46.7M$47.1M $61.3M $M $10M $20M $30M $40M $50M $60M $70M Revenues Expenditures General Fund FY 21/22 Through April PY Actual CY Actual CY Budget HIGHWAY FUND REVENUES REVENUE SOURCE Budget Actuals Thru 4/2022 % of Budget Year-End Estimate Notes Licenses & Permits $ 25,000 $ 24,776 99.1%$ 30,000 Trending above budget at this time State Shared Revenues 3,614,922 3,228,827 89.3%3,870,000 Trending higher than expected All Other 8,000 15,165 189.6%16,000 Additional revenues attributable to insurance recoveries and interest income TOTAL HIGHWAY FUND REVENUES $ 3,647,922 $ 3,268,768 89.6%$ 3,916,000 Expected to exceed budget due to additional HURF revenues HIGHWAY FUND EXPENDITURES EXPENDITURE CATEGORY Budget Actuals Thru 4/2022 % of Budget Year-End Estimate Notes Personnel $ 1,208,870 $ 950,314 78.6%$ 1,188,023 Trending slightly lower than expected; % of budget reflects timing of payrolls; slight savings projected Operations & Maintenance 616,655 428,574 69.5%616,655 Trending as expected; larger line-items include striping, field supplies, electricity and traffic signal maintenance Capital 2,265,000 2,009,657 88.7%2,265,000 Trending as expected; timing of pavement preservation program TOTAL HIGHWAY FUND EXPENDITURES $ 4,090,525 $ 3,388,545 82.8%$ 4,069,678 Slight savings in personnel projected for year-end Budgeted Use of Fund Balance: ($443,000) Estimated Use of Fund Balance = ($154,000) Estimated Ending Fund Balance: $1.1M HIGHWAY FUND $3.1M $2.5M $3.3M $3.4M $3.6M $4.1M $.0M $.5M $1.0M $1.5M $2.0M $2.5M $3.0M $3.5M $4.0M $4.5M $5.0M Revenues Expenditures Highway Fund FY 21/22 Through April PY Actual CY Actual CY Budget COMMUNITY CENTER FUND REVENUES REVENUE SOURCE Budget Actuals Thru 4/2022 % of Budget Year-End Estimate Notes Contracted Operating Revenues $ 3,622,385 $ 4,148,729 114.5%$ 4,474,329 All revenues sources trending higher than expected. Strong performance particularly in golf revenues and member dues. Town Operating Revenues 697,480 1,094,134 156.9%1,208,500 Exceeding budget in member dues, recreation program revenue, facility rental income and daily drop-ins Other Revenues 3,078,400 3,109,751 101.0%3,633,460 Includes 1/2 cent sales tax revenues, HOA contributions, interest income and other miscellaneous revenues. Higher than expected local sales tax. TOTAL COMM. CENTER FUND REVENUES $ 7,398,265 $ 8,352,614 112.9%$ 9,316,289 Total revenues projected to exceed budget by $1.9 million or 25.9%, due to sales tax, fitness and recreation program revenue, and golf revenue. COMMUNITY CENTER FUND EXPENDITURES EXPENDITURE CATEGORY Budget Actuals Thru 4/2022 % of Budget Year-End Estimate Notes Contracted Operating Expenditures $ 4,701,528 $ 3,801,981 80.9%$ 4,510,501 Trending better than expected. O&M and personnel costs are expected to come in under budget by $144,000 and $101,000 respectively, per contractor. Town Operating Expenditures 1,086,581 842,687 77.6%1,122,436 Estimating higher than previously expected due to additional grounds maintenance costs Capital Outlay 132,500 92,782 70.0%132,500 Projected on budget at this time Transfers Out 1,868,519 168,519 9.0%315,658 Actuals reflect transfers for debt service. Interest only payment due on Parks & Rec bonds. TOTAL COMM. CENTER FUND EXPENDITURES $ 7,789,128 $ 4,905,969 63.0%$ 6,081,095 Budget savings of $1.6 million in transfers out. Outperformance in contracted operating expenditures. COMMUNITY CENTER FUND Budgeted Use of Fund Balance: ($0.4M) Estimated Surplus: $3.2M Estimated Ending Fund Balance: $5.9M $6.3M $4.5M $8.4M $4.9M $7.4M $7.8M $M $1M $2M $3M $4M $5M $6M $7M $8M $9M Revenues Expenditures Community Center Fund FY 21/22 Through April PY Actual CY Actual CY Budget MONTHLY FINANCIAL UPDATE QUESTIONS?    Budget and Finance Commission 3. Meeting Date:06/21/2022   Submitted By:Christopher Hutchison, Finance Department:Finance SUBJECT: PRESENTATION AND POSSIBLE DISCUSSION REGARDING THE TOWN'S FIVE-YEAR FINANCIAL FORECAST THROUGH FY 2027/28 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 2027/28 for the General Fund, Highway Fund, Capital 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 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 assumes conservative growth with no major economic downturns. The forecast models local sales tax growth using several data points. 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 growth of 3-5% in most local sales tax categories is anticipated. Construction sales tax is estimated to remain flat in the near term, then decline slightly in outer years due to reduced available land area for new development. State shared revenues will see an increase in FY 2022/23 due to the 2020 state income tax filing deadline extension. A statutory increase in Urban Revenue Sharing (URS; income taxes) from 15% to 18% will result in a sharp increase in FY 2023/24. Beginning FY 2024/25, statutory income tax rate reductions and a cap of 2.5% will reduce URS growth to about 2% per year. The forecast assumes robust residential development continues through FY 2024/25, with a steep decline thereafter. Single family residential permits are forecasted to fall below 100 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 2023/24, with a reduction expected thereafter due to funded status. The forecast assumes operations and maintenance (O&M) costs increase 5-6% per year in the near term due to inflation, before gradually reducing to 1.5% by FY 2027/28. No changes to service levels are assumed. Annual transfers to the Capital Fund for CIP projects are assumed at 5% of sales tax collections plus any remaining fund balance over the 25% reserve policy. The ending fund balance in the General Fund is maintained at the Town’s adopted policy requirement of 25% of expenditures each year, ranging from approximately $12.2 - $13.1 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 3.9% per year, with growth slowing to 3.7% in the outer years. Highway Fund expenditures reflect similar assumptions to 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 $1.9-$2.4 million each year. To fund needed roadway CIP projects, the forecast assumes annual transfers of $1-2 million from the Capital Fund in FYs 2023/24 through 2026/27.   Capital Fund The Capital Fund is primarily supported by transfers from the General Fund, with supplemental sources from annual vehicle reserves, CIP-related bond proceeds, and grant-funded CIP projects. Capital Fund expenditures consist primarily of the Town’s projected CIP projects, as well as personnel costs for two temporary CIP managers. The forecast excludes the cost of a new police station, as a revenue source has not yet been identified. Vehicle replacement costs are projected to grow 5-6% annually due to inflation. As noted above, to fund needed roadway CIP projects, the forecast assumes annual transfers of $1-2 million from the Capital Fund into the Highway Fund in FYs 2023/24 through FY 2026/27.   Community Center Fund Community Center Fund revenue consists of local sales tax, contracted golf revenues, HOA golf contributions through FY 2024/25, Parks and Rec program revenue, and fitness memberships. Local sales tax estimates follow the same growth projections as the General Fund for relevant categories. Contracted golf revenues are reduced in FY 2022/23 and flat in FY 2023/24 due to course closures for irrigation construction. The remaining recreation charges are conservatively forecasted to grow 1% annually, accounting for the potential impact high inflation may have on discretionary spending. Forecasted Town personnel and O&M figures reflect similar assumptions to the General Fund. Contracted expenditures related to golf operations, including the Pusch 9-hole course, assume annual cost increases of 1%. Upon completion of irrigation construction, it is assumed that contractor operations, play levels and revenues are consistent with FY 2020/21 and FY 2021/22. Capital outlay in the Community Center Fund reflects the 10-year CIP, with additional costs of $100,000 - $250,000 assumed annually for other operating capital needs and maintenance. Transfers out reflects debt service on the Parks and Recreation bonds and the 2016 Community Center energy efficiency bonds, as well as a $2.1 million transfer to the Capital Fund in FY 2022/23 for the golf course irrigation project. FISCAL IMPACT: N/A SUGGESTED MOTION: This item is for presentation and discussion. This item is for presentation and discussion. Attachments General Fund Forecast  General Fund Chart  General Fund Assumptions  Highway Fund Forecast  Highway Fund Chart  Highway Fund Assumptions  Capital Fund Forecast  Capital Fund Chart  Capital Fund Assumptions  Community Center Fund Forecast  Community Center Fund Chart  Community Center Fund Assumptions  Staff Presentation  Town of Oro Valley Five-Year Forecast FY 21/22 Estimated FY 22/23 Tentative FY 23/24 Projected FY 24/25 Projected FY 25/26 Projected FY 26/27 Projected FY 27/28 Projected SOURCES Taxes 26,070,335$ 25,270,959$ 26,590,131$ 27,519,371$ 28,241,563$ 28,925,823$ 29,643,113$ State Shared Revenue 14,271,621 17,605,693 20,316,178 19,734,694 20,348,199 20,941,110 21,545,758 Charges for Services 2,514,733 3,046,515 3,155,553 3,246,630 3,331,573 3,418,720 3,509,098 Licenses & Permits 2,197,500 2,223,824 2,352,884 2,427,924 2,359,413 1,896,287 1,871,813 Intergovernmental 1,364,700 1,613,000 1,628,480 1,644,115 1,659,906 1,675,855 1,691,964 Grants 6,143,448 455,000 459,550 464,146 468,787 473,475 478,210 Miscellaneous 248,825 249,000 261,450 271,908 282,784 294,096 305,860 Fines 125,000 125,000 131,250 132,563 133,888 135,227 136,579 Interest Income 150,000 150,000 151,500 153,015 154,545 157,636 160,789 Total Sources 53,086,162 50,738,991 55,046,975 55,594,365 56,980,658 57,918,228 59,343,182 USES Personnel 30,147,575 34,926,773 36,106,538 35,517,801 36,251,183 37,273,520 38,495,493 O&M 22,053,707 11,809,548 11,955,654 12,447,574 12,868,034 13,187,931 13,518,660 Capital Outlay 666,219 1,387,725 770,000 830,397 826,266 569,502 568,639 Transfers Out 6,262,832 16,446,977 6,539,074 6,807,698 6,747,747 6,615,909 6,372,430 Total Uses 59,130,333 64,571,023 55,371,266 55,603,470 56,693,230 57,646,861 58,955,222 Surplus/(Use of Fund Balance)(6,044,171) (13,832,032) (324,291) (9,105) 287,428 271,367 387,960 Beginning Fund Balance 32,408,542 26,364,371 12,532,339 12,208,048 12,198,943 12,486,370 12,757,738 Ending Fund Balance 26,364,371$ 12,532,339$ 12,208,048$ 12,198,943$ 12,486,370$ 12,757,738$ 13,145,698$ Reserve as % of Expenditures 44.6%26.0%25.0%25.0%25.0%25.0%25.0% GENERAL FUND $- $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 $65,000,000 $70,000,000 FY 21/22 Estimated FY 22/23 Tentative FY 23/24 Projected FY 24/25 Projected FY 25/26 Projected FY 26/27 Projected FY 27/28 Projected General Fund Sources, Uses and Fund Balance USES SOURCES FUND BALANCE Sources Assumptions Local Sales Taxes 1. No annexations or revenues from development at the Oro Valley Marketplace 2. 2% factored into forecast for impacts of inflation 3. No legislative changes to construction sales tax reporting 4. Modest economic growth with no major economic downturns in the five-year outlook 5. Slight decline in construction sales tax in outer years due to reduced available land area for new development 6.Return to pre-pandemic levels of hotel/bed tax in FY 22/23, modest 5% growth 7.Conservative levels of one-time, non-specific commercial development 8. 3-5% growth per year in retail, restaurant/bar, utility and other categories State Shared Revenues 1. Projections based on current reports from Joint Legislative Budget Committee and League of Cities and Towns 2. Growth projections range from 4-6%; higher estimates assumed for Smart and Safe revenue 3.Sharp increase in state shared income tax in FY 22/23 from the IRS delayed tax filing; drop off in the following year is offset by statutory increase in state shared revenue allocation from 15% to 18%; growth drops to 2% thereafter for statutory tax cuts 4.New Smart and Safe revenues expected to have explosive growth in the near term and sustained high growth thereafter, similar to observations of other western states with legalized recreational cannabis (Colorado, Oregon, Washington) 5. New opioid settlement funds to remain flat at $100,000 annually Charges for Services 1.3% growth rate in charges for services to enterprise funds 2.3-4% growth rate for Parks & Recreation related revenues 3.Development revenues tied to projected permitting activity Licenses & Permits 1. Conservative, yet healthy single family residential (SFR) permit activity in near term 2.Conservative commercial permitting activity forecast, with no specific permitting for the Oro Valley Marketplace 3. Slowing revenues and activity in outer years attributable to reduced available land area for new development SFR Building Permit Forecast: Intergovernmental 1.School resource officer funding kept flat at $65,000 2. Conservative growth in RTA transit reimbursement revenue 3.No animal control revenues (per new Pima County IGA) Grant Revenues/Fines 1.Police overtime grant revenues assumed at 1% growth per year 2. Fine revenues return to historical collections in FY 23/24; 1% growth per year thereafter Miscellaneous 1.Consists primarily of in-lieu bed tax income; 5% growth per year Interest Income 1. Flat earnings projection in near term; recovery in following years as interest rates are expected to increase 2. Subject to economic conditions and based on anticipated fund balance GENERAL FUND FORECAST ASSUMPTIONS FY 22/23 Tentative FY 23/24 Projected FY 24/25 Projected FY 25/26 Projected FY 26/27 Projected FY 27/28 Projected 170 232 328 210 84 78 GENERAL FUND FORECAST ASSUMPTIONS Uses Assumptions Salaries and Benefits 1. Police step increases included each year; merits included at 4.25% per year 2. Public safety pension rates kept flat at 41.65% until FY 24/25, with a 30% decrease expected in contributions 3. Health insurance premiums increase 3-4% per year 4. Capacity for approximately four new positions annually Operations & Maintenance 1. Ongoing inflation (5% increase in FY 23/24, 6% in FY 24/25, 3% in FY 25/26, 2% in FY26/27, 1.5% in FY 27/28) 2. Forecast assumes no new initiatives or changes to service levels 3. Gas prices assumed to remain high throughout the forecast period 4. Capital outlay reflects operating capital and one minor CIP project in FY 24/25 5. Increased O&M costs starting in FY 24/25 (6%) with completion of new Naranja park amenities CIP Funding 1.Shown as transfer out to Capital Fund 2.Annual amounts equal to 5% of projected sales tax collections, plus any remaining fund balance over the 25% reserve policy 3.ARPA funding reflected in the transfer out to the Capital Fund for FY 22/23 Debt Service Transfers 1. Transfer amounts include debt service on the pension obligation bonds 2. Police impact fees cover a portion of Series 2018 debt service for evidence facility and substation bond improvements Town of Oro Valley Five-Year Forecast FY 21/22 Estimated FY 22/23 Tentative FY 23/24 Projected FY 24/25 Projected FY 25/26 Projected FY 26/27 Projected FY 27/28 Projected SOURCES State Shared Revenue 3,870,000$ 4,127,100$ 4,296,797$ 4,470,613$ 4,646,900$ 4,822,363$ 5,001,122$ Licenses & Permits 30,000 25,000 25,250 25,275 25,781 26,296 26,822 Interest Income 8,000 8,000 8,080 8,161 8,242 8,407 8,575 Miscellaneous 5,069 3,000 3,150 3,276 3,407 3,543 3,685 Transfers from Capital Fund - - 1,000,000 2,000,000 2,000,000 2,000,000 - Total Sources 3,913,069 4,163,100 5,333,277 6,507,325 6,684,330 6,860,610 5,040,205 USES Personnel 1,188,023 1,190,057 1,284,923 1,305,219 1,324,846 1,350,863 1,377,232 O&M 616,655 823,615 824,796 874,283 900,512 918,522 932,300 Capital Outlay 2,265,000 2,626,000 2,940,000 4,835,000 4,383,000 4,744,000 2,207,000 Total Uses 4,069,678 4,639,672 5,049,719 7,014,502 6,608,358 7,013,385 4,516,532 Surplus/(Use of Fund Balance) (156,609) (476,572) 283,557 (507,178) 75,972 (152,775) 523,673 Beginning Fund Balance 1,242,978 1,086,369 609,797 893,354 386,177 462,149 309,374 Ending Fund Balance 1,086,369$ 609,797$ 893,354$ 386,177$ 462,149$ 309,374$ 833,046$ HIGHWAY FUND $- $1,000,000 $2,000,000 $3,000,000 $4,000,000 $5,000,000 $6,000,000 $7,000,000 $8,000,000 FY 21/22 Estimated FY 22/23 Tentative FY 23/24 Projected FY 24/25 Projected FY 25/26 Projected FY 26/27 Projected FY 27/28 Projected Highway Fund Sources, Uses and Fund Balance USES SOURCES FUND BALANCE Sources Assumptions Highway User Tax 1. Highway user revenues grow 3.7-3.9% per year 2. Forecast assumes no changes in state allocation of funds to cities and towns Miscellaneous 1.Low growth; minimal amount based on current trend Transfers In 1.Transfers from Capital Fund of $1-2 million annually from FY 23/24 through FY 26/27 to fund needed roadway projects Uses Assumptions Salaries and Benefits 1. Assumptions similar to General Fund for merits and benefit increases 2. Modest capacity for new positions Operations & Maintenance 1. Assumptions similar to General Fund for inflation 2. Assumes no changes to service levels Capital Outlay 1. Per 10-year CIP program; Capital Fund subsidizes projects in years when HURF revenues are not sufficient to cover costs Pavement Preservation 1. Assumes no significant increase in lane miles. $1.85 million base with 3% increases each year HIGHWAY FUND FORECAST ASSUMPTIONS Town of Oro Valley Five-Year Forecast FY 21/22 Estimated FY 22/23 Tentative FY 23/24 Projected FY 24/25 Projected FY 25/26 Projected FY 26/27 Projected FY 27/28 Projected SOURCES State Grants -$ 420,000$ -$ -$ -$ -$ -$ Bond Proceeds 25,367,224 - - - - - - Miscellaneous 255,227 225,000 227,250 229,523 231,818 236,454 241,183 Vehicle Reserves 741,010 820,010 892,061 908,073 925,046 942,529 960,361 Transfers from General Fund 5,216,277 13,500,000 4,257,431 4,528,518 4,469,314 4,648,750 4,548,945 Transfer from Community Center Fund - 2,057,314 - - - - - Total Sources 31,579,738 17,022,324 5,376,742 5,666,114 5,626,178 5,827,733 5,750,489 USES Personnel 111,824 261,962 269,862 134,931 134,931 - - Capital Outlay 5,379,649 28,673,613 14,300,542 6,153,763 2,315,154 4,126,676 5,397,937 Transfers to Highway Fund - - 1,000,000 2,000,000 2,000,000 2,000,000 - Total Uses 5,491,473 28,935,575 15,570,404 8,288,693 4,450,085 6,126,676 5,397,937 Surplus/(Use of Fund Balance) 26,088,265 (11,913,251) (10,193,662) (2,622,580) 1,176,092 (298,943) 352,552 Beginning Fund Balance 2,504,028 28,592,293 16,679,042 6,485,380 3,862,800 5,038,892 4,739,949 Ending Fund Balance 28,592,293$ 16,679,042$ 6,485,380$ 3,862,800$ 5,038,892$ 4,739,949$ 5,092,501$ CAPITAL FUND $- $5,000,000 $10,000,000 $15,000,000 $20,000,000 $25,000,000 $30,000,000 $35,000,000 FY 21/22 Estimated FY 22/23 Tentative FY 23/24 Projected FY 24/25 Projected FY 25/26 Projected FY 26/27 Projected FY 27/28 Projected Capital Fund Sources, Uses and Fund Balance USES SOURCES FUND BALANCE Sources Assumptions Vehicle Reserves 1. General Fund is charged the replacement value of new, non-enterprise fund vehicles over the useful life 2. Growth with assumed new vehicle purchases and inflation Miscellaneous 1.Reflects vehicle sales and insurance recoveries; low growth, based on current trend Transfers In 1.Transfers from General Fund consist of sales tax and excess General Fund reserves, per adopted financial policies 2 Transfer from Community Center Fund in FY 22/23 for golf irrigation project Uses Assumptions Salaries and Benefits 1. Assumptions similar to General Fund for merits and benefit increases 2. Two temporary CIP project manager positions through FY 23/24; one in FY 24/25 through FY 25/26 3. No personnel costs after FY 25/26 Capital Outlay 1.Capital outlay reflects 10-year CIP program 2.Forecast also includes capacity for new vehicles and unplanned vehicle losses Transfers Out 1. Transfers to the Highway Fund subsidize HURF revenue as needed for roadway projects CAPITAL FUND FORECAST ASSUMPTIONS Town of Oro Valley Five-Year Forecast FY 21/22 Estimated FY 22/23 Tentative FY 23/24 Projected FY 24/25 Projected FY 25/26 Projected FY 26/27 Projected FY 27/28 Projected SOURCES Taxes 3,430,364$ 3,477,236$ 3,658,752$ 3,786,613$ 3,885,985$ 3,980,138$ 4,078,836$ Charges for Services 5,396,499 4,868,049 4,968,794 4,996,194 5,662,211 5,774,272 5,873,771 Miscellaneous 177,981 162,050 170,153 176,959 25,037 26,038 27,080 Total Sources 9,004,844 8,507,335 8,797,698 8,959,766 9,573,234 9,780,449 9,979,687 USES Personnel 891,376 916,806 1,000,570 1,033,586 1,065,951 1,099,761 1,134,725 O&M 4,681,634 5,498,918 5,585,263 5,704,727 5,800,880 5,890,170 5,969,227 Capital Outlay 132,500 2,666,700 1,464,500 495,000 761,500 350,000 1,600,000 Transfers Out 315,658 4,085,380 1,717,203 1,717,149 1,716,268 1,717,435 1,711,661 Total Uses 6,021,168 13,167,804 9,767,536 8,950,462 9,344,599 9,057,366 10,415,613 Surplus/(Use of Fund Balance) 2,983,676 (4,660,469) (969,838) 9,304 228,635 723,083 (435,926) Beginning Fund Balance 2,676,793 5,660,469 1,000,000 30,162 39,466 268,101 991,183 Ending Fund Balance 5,660,469$ 1,000,000$ 30,162$ 39,466$ 268,101$ 991,183$ 555,257$ COMMUNITY CENTER FUND $- $2,000,000 $4,000,000 $6,000,000 $8,000,000 $10,000,000 $12,000,000 $14,000,000 FY 21/22 Estimated FY 22/23 Tentative FY 23/24 Projected FY 24/25 Projected FY 25/26 Projected FY 26/27 Projected FY 27/28 Projected Community Center Fund Sources, Uses and Fund Balance USES SOURCES FUND BALANCE Sources Assumptions Local Sales Taxes 1. Categories mirror General Fund forecast, where appropriate 2. Modest economic growth with no major economic downturns in the five-year outlook 3. 3-5% growth per year in retail, restaurant/bar, utility and other categories Charges for Services 1.1% growth rate for Parks & Recreation related revenues 2.1.5% growth rate in food and beverage revenue 3.1.5% - 2% growth rate for 36-hole golf revenue beyond FY 24/25 4.Operations assumed on 18 holes for six months of the year in FY 22/23 and FY 23/24 5.FY 24/25 and beyond reflect play levels and revenues similar to FY 20/21 and FY 21/22 7.Pusch Ridge golf revenue 2% growth on green fees, 1.5% in other categories Miscellaneous 1.Forecast assumes HOA contributions end after FY 24/25, upon completion of five-year contracts Uses Assumptions Salaries and Benefits 1.Assumptions similar to General Fund for merits and benefit increases Operations & Maintenance 1.Golf operating model remains consistent with FY 21/22 2.Full staffing levels 3.Assumptions similar to General Fund for inflation 4.1% growth rate for golf operations costs Capital Outlay 1.Capital outlay per 10-year CIP program 2.$100,000 - $250,000 annually for building improvements and minor assets 3.Vistoso Trails Nature Preserve maintenance at $100,000 per year after FY 23/24 4.$600,000 for design of Community Center renovations in FY 27/28 Transfers Out 1.Debt service on the Parks and Recreation bonds and the 2016 Community Center energy efficiency bonds 2.$2.1 million transfer to the Capital Fund in FY 2022/23 to fund golf course irrigation COMMUNITY CENTER FUND FORECAST ASSUMPTIONS FFive-Yearr Financiall ForecastJune 15, 2022 OOVERVIEWGeneral Fund, Highway Fund, Capital Fund, and Community Center FundSnapshot based upon known current informationServes as planning document for future budgetsForecast is updated annually as part of the budget processSources: University of Arizona, AZ Department of Revenue, Joint Legislative Budget Committee, AZ Department of Transportation, as well as the knowledge, expertise and professional judgment by Town management and staff GGENERALL FUNDD SOURCESS -ASSUMPTIONSAssumes continued economic recovery with no major economic downturnsAll revenue sources at or above pre-pandemic levelsContinued growth of 3-5% in most local sales tax categories Construction sales tax and permitting revenues reflect continued, stable activity in near term, with slight declines beginning FY 2026/27 due to reduced available land for new developmentConservative, status quo commercial permitting activity forecast Single family residential permits State shared revenuesOne-time increase in FY 2022/23 due to filing deadline extension in 2020 Increase in FY 2023/24 attributable to state allocation adjustment from 15% to 18%Income tax rate reduction and cap of 2.5% expected to affect FY 2024/25 onwardFY 22/23 TentativeFY 23/24 ProjectedFY 24/25 ProjectedFY 25/26 ProjectedFY 26/27 ProjectedFY 27/28 Projected171 232 328 210 84 78 GGENERAL FUND SOURCES -FORECASTTown of Oro ValleyFive-Year ForecastFY 21/22 EstimatedFY 22/23 TentativeFY 23/24 ProjectedFY 24/25 ProjectedFY 25/26 ProjectedFY 26/27 ProjectedFY 27/28 ProjectedSOURCESTaxes 26,070,335$ 25,270,959$ 26,590,131$ 27,519,371$ 28,241,563$ 28,925,823$ 29,643,113$ State Shared Revenue 14,271,621 17,605,693 20,316,178 19,734,694 20,348,199 20,941,110 21,545,758 Charges for Services 2,514,733 3,046,515 3,155,553 3,246,630 3,331,573 3,418,720 3,509,098 Licenses & Permits 2,197,500 2,223,824 2,352,884 2,427,924 2,359,413 1,896,287 1,871,813 Intergovernmental 1,364,700 1,613,000 1,628,480 1,644,115 1,659,906 1,675,855 1,691,964 Grants 6,143,448 455,000 459,550 464,146 468,787 473,475 478,210 Miscellaneous 248,825 249,000 261,450 271,908 282,784 294,096 305,860 Fines 125,000 125,000 131,250 132,563 133,888 135,227 136,579 Interest Income 150,000 150,000 151,500 153,015 154,545 157,636 160,789 Total Sources 53,086,162 50,738,991 55,046,975 55,594,365 56,980,658 57,918,228 59,343,182 GENERAL FUND GGENERALL FUNDD USESS -ASSUMPTIONSEmployee merit and Police step increases included in all years of forecastModest capacity for new FTEsContinued capacity for normal increases in employee-related personnel costs (ERE)Continuation of PSPRS payments at 41.65% until FY 24/25, with a 30% decrease expectedO&M assumes current service levels and ongoing inflation Transfers for CIP projects assumed at 5% of sales tax collections per Town Council financial policies, plus all fund balance over 25% reserve GGENERALL FUNDD USESS -FORECASTTown of Oro ValleyFive-Year ForecastFY 21/22 EstimatedFY 22/23 TentativeFY 23/24 ProjectedFY 24/25 ProjectedFY 25/26 ProjectedFY 26/27 ProjectedFY 27/28 ProjectedUSESPersonnel 30,147,575 34,926,773 36,106,538 35,517,801 36,251,183 37,273,520 38,495,493 O&M 22,053,707 11,809,548 11,955,654 12,447,574 12,868,034 13,187,931 13,518,660 Capital Outlay 666,219 1,387,725 770,000 830,397 826,266 569,502 568,639 Transfers Out 6,262,832 16,446,977 6,539,074 6,807,698 6,747,747 6,615,909 6,372,430 Total Uses 59,130,333 64,571,023 55,371,266 55,603,470 56,693,230 57,646,861 58,955,222 Surplus/(Use of Fund Balance) (6,044,171) (13,832,032) (324,291) (9,105) 287,428 271,367 387,960 Beginning Fund Balance 32,408,542 26,364,371 12,532,339 12,208,048 12,198,943 12,486,370 12,757,738 Ending Fund Balance 26,364,371$ 12,532,339$ 12,208,048$ 12,198,943$ 12,486,370$ 12,757,738$ 13,145,698$ Reserve as % of Expenditures44.6% 26.0% 25.0% 25.0% 25.0% 25.0% 25.0%GENERAL FUND GGENERAL FUND FORECAST $- $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 $65,000,000 $70,000,000FY 21/22EstimatedFY 22/23TentativeFY 23/24ProjectedFY 24/25ProjectedFY 25/26ProjectedFY 26/27ProjectedFY 27/28ProjectedGeneral FundSources, Uses and Fund BalanceUSESSOURCESFUND BALANCE HHIGHWAYY FUNDD SOURCESS -ASSUMPTIONSArizona Department of Transportation forecasts moderate growth, about 4%, in highway user gas tax (HURF) revenues Other revenue sources assume modest and incremental growthTransfers in from the Capital Fund supplement HURF revenues for roadway projects identified in the tentative, ten-year CIP First Avenue mill/overlay - $1.7 million La Cañada bridge deck repair - $2.3 millionTangerine Road mill/overlay - $2.6 million HHIGHWAY FUND SOURCES -FORECASTTown of Oro ValleyFive-Year ForecastFY 21/22 EstimatedFY 22/23 TentativeFY 23/24 ProjectedFY 24/25 ProjectedFY 25/26 ProjectedFY 26/27 ProjectedFY 27/28 ProjectedSOURCESState Shared Revenue 3,870,000$ 4,127,100$ 4,296,797$ 4,470,613$ 4,646,900$ 4,822,363$ 5,001,122$ Licenses & Permits 30,000 25,000 25,250 25,275 25,781 26,296 26,822 Interest Income 8,000 8,000 8,080 8,161 8,242 8,407 8,575 Miscellaneous 5,069 3,000 3,150 3,276 3,407 3,543 3,685 Transfers In from Capital Fund - - 1,000,000 2,000,000 2,000,000 2,000,000 - Total Sources 3,913,069 4,163,100 5,333,277 6,507,325 6,684,330 6,860,610 5,040,205HIGHWAY FUND HHIGHWAYY FUNDD USESS -ASSUMPTIONSPersonnel and O&M figures reflect similar assumptions to General FundPavement preservation funding is included at $1.9 – $2.4 million per yearCapital outlay reflects ten-year, tentative CIP schedule HHIGHWAY FUND USES -FORECASTTown of Oro ValleyFive-Year ForecastFY 21/22 EstimatedFY 22/23 TentativeFY 23/24 ProjectedFY 24/25 ProjectedFY 25/26 ProjectedFY 26/27 ProjectedFY 27/28 ProjectedUSESPersonnel 1,188,023 1,190,057 1,284,923 1,305,219 1,324,846 1,350,863 1,377,232O&M 616,655 823,615 824,796 874,283 900,512 918,522 932,300Capital Outlay 2,265,000 2,626,000 2,940,000 4,835,000 4,383,000 4,744,000 2,207,000Total Uses 4,069,678 4,639,672 5,049,719 7,014,502 6,608,358 7,013,385 4,516,532 Surplus/(Use of Fund Balance) (156,609) (476,572) 283,557 (507,178) 75,972 (152,775) 523,673Beginning Fund Balance 1,242,978 1,086,369 609,797 893,354 386,177 462,149 309,374 Ending Fund Balance 1,086,369$ 609,797$ 893,354$ 386,177$ 462,149$ 309,374$ 833,046$ HIGHWAY FUND HHIGHWAY FUND FORECAST $- $1,000,000 $2,000,000 $3,000,000 $4,000,000 $5,000,000 $6,000,000 $7,000,000 $8,000,000FY 21/22EstimatedFY 22/23TentativeFY 23/24ProjectedFY 24/25ProjectedFY 25/26ProjectedFY 26/27ProjectedFY 27/28ProjectedHighway FundSources, Uses and Fund BalanceUSESSOURCESFUND BALANCE CCAPITALL FUNDD SOURCESS -ASSUMPTIONSCapital fund is supported by General Fund transfers, vehicle reserves for fleet replacements, bond proceeds and grants1-2% growth for miscellaneous revenues, including sale of assets and insurance recoveriesNon-enterprise fund vehicle reserves charged to General Fund based on replacement cost of each vehicle over useful life and includes 5-6% cost inflationTransfers annually from the General Fund reflect 5% of sales tax and excess fund balance over 25% reserve$2.1 million transfer from the Community Center Fund in FY 22/23 for golf course irrigation CCAPITAL FUND SOURCES -FORECASTTown of Oro ValleyFive-Year ForecastFY 21/22 EstimatedFY 22/23 TentativeFY 23/24 ProjectedFY 24/25 ProjectedFY 25/26 ProjectedFY 26/27 ProjectedFY 27/28 ProjectedSOURCESState Grants -$ 420,000$ -$ -$ -$ -$ -$ Bond Proceeds 25,367,224 - - - - - - Miscellaneous 255,227 225,000 227,250 229,523 231,818 236,454 241,183 Vehicle Reserves 741,010 820,010 892,061 908,073 925,046 942,529 960,361 Transfers from General Fund 5,216,277 13,500,000 4,257,431 4,528,518 4,469,314 4,648,750 4,548,945 Transfer from Community Center Fund - 2,057,314 - - - - - Total Sources 31,579,738 17,022,324 5,376,742 5,666,114 5,626,178 5,827,733 5,750,489CAPITAL FUND CCAPITALL FUNDD USESS -ASSUMPTIONSTwo temporary CIP project managers through FY 23/24; one in FY 24/25 through FY 25/26; no personnel costs after FY 25/26Capital outlay reflects ten-year, tentative CIP schedule, excluding the new police station as specific funding has not yet been identifiedNew vehicle purchases (in addition to replacements) assumed at one patrol vehicle and two other vehicles annually5-6% inflation for vehicle replacements Transfers out to the Highway Fund for roadway CIP projects CCAPITAL FUND USES -FORECASTTown of Oro ValleyFive-Year ForecastFY 21/22 EstimatedFY 22/23 TentativeFY 23/24 ProjectedFY 24/25 ProjectedFY 25/26 ProjectedFY 26/27 ProjectedFY 27/28 ProjectedUSESPersonnel 111,824 261,962 269,862 134,931 134,931 - - Capital Outlay 5,379,649 28,673,613 14,300,542 6,153,763 2,315,154 4,126,676 5,397,937Transfers to Highway Fund - - 1,000,000 2,000,000 2,000,000 2,000,000 - Total Uses 5,491,473 28,935,575 15,570,404 8,288,693 4,450,085 6,126,676 5,397,937 Surplus/(Use of Fund Balance) 26,088,265 (11,913,251) (10,193,662) (2,622,580) 1,176,092 (298,943) 352,552Beginning Fund Balance 2,504,028 28,592,293 16,679,042 6,485,380 3,862,800 5,038,892 4,739,949 Ending Fund Balance 28,592,293$ 16,679,042$ 6,485,380$ 3,862,800$ 5,038,892$ 4,739,949$ 5,092,501$ CAPITAL FUND CCAPITAL FUND FORECAST $- $5,000,000 $10,000,000 $15,000,000 $20,000,000 $25,000,000 $30,000,000 $35,000,000FY 21/22EstimatedFY 22/23TentativeFY 23/24ProjectedFY 24/25ProjectedFY 25/26ProjectedFY 26/27ProjectedFY 27/28ProjectedCapital FundSources, Uses and Fund BalanceUSESSOURCESFUND BALANCE CCOMMUNITYY CENTERR FUNDD SOURCESS -ASSUMPTIONSLocal sales tax figures follow same growth as General Fund for relevant categoriesOperations assumed on 18 holes for six months of the year in FYs 2022/23 and 2023/24 for irrigation projectConservative 1% growth for Parks & Recreation related revenues to account for potential discretionary spending decreases as result of inflationHOA contributions end after FY 2024/25, upon completion of five-year contracts CCOMMUNITY CENTER FUND SOURCES -FORECASTTown of Oro ValleyFive-Year ForecastFY 21/22 EstimatedFY 22/23 TentativeFY 23/24 ProjectedFY 24/25 ProjectedFY 25/26 ProjectedFY 26/27 ProjectedFY 27/28 ProjectedSOURCESTaxes 3,430,364$ 3,477,236$ 3,658,752$ 3,786,613$ 3,885,985$ 3,980,138$ 4,078,836$ Charges for Services 5,396,499 4,868,049 4,968,794 4,996,194 5,662,211 5,774,272 5,873,771 Miscellaneous 177,981 162,050 170,153 176,959 25,037 26,038 27,080 Total Sources 9,004,844 8,507,335 8,797,698 8,959,766 9,573,234 9,780,449 9,979,687 COMMUNITY CENTER FUND CCOMMUNITYY CENTERR FUNDD USESS -ASSUMPTIONSPersonnel and O&M figures reflect similar assumptions to General FundContracted expenditures include Pusch 9-hole courseCapital outlay reflects ten-year, tentative CIP schedule$100K annually for Vistoso Trails Nature Preserve maintenance$100,00 - $250,000 annually for building improvements and minor assets (non-CIP)Debt service transfers for Parks and Recreation bonds and energy efficiency bonds$2.1 million transfer to the Capital Fund in FY 2022/23 to fund golf course irrigation CCOMMUNITY CENTER FUND USES –FORECASTTown of Oro ValleyFive-Year ForecastFY 21/22 EstimatedFY 22/23 TentativeFY 23/24 ProjectedFY 24/25 ProjectedFY 25/26 ProjectedFY 26/27 ProjectedFY 27/28 ProjectedUSESPersonnel 891,376 916,806 1,000,570 1,033,586 1,065,951 1,099,761 1,134,725 O&M 4,681,634 5,498,918 5,585,263 5,704,727 5,800,880 5,890,170 5,969,227 Capital Outlay 132,500 2,666,700 1,464,500 495,000 761,500 350,000 1,600,000 Transfers Out 315,658 4,085,380 1,717,203 1,717,149 1,716,268 1,717,435 1,711,661 Total Uses 6,021,168 13,167,804 9,767,536 8,950,462 9,344,599 9,057,366 10,415,613 Surplus/(Use of Fund Balance)2,983,676 (4,660,469) (969,838) 9,304 228,635 723,083 (435,926) Beginning Fund Balance 2,676,793 5,660,469 1,000,000 30,162 39,466 268,101 991,183 Ending Fund Balance 5,660,469$ 1,000,000$ 30,162$ 39,466$ 268,101$ 991,183$ 555,257$ COMMUNITY CENTER FUND CCOMMUNITYY CENTERR FUNDD FORECAST Questions?    Budget and Finance Commission 4. Meeting Date:06/21/2022   Submitted By:David Gephart, Finance SUBJECT: PRESENTATION AND DISCUSSION OF THE TOWN FY2023 ADOPTED BUDGET RECOMMENDATION: N/A EXECUTIVE SUMMARY: On June 1, 2022, Town Council approved the Town FY2023 Tentative budget in the amount of $147,704,287.  On June 15, 2022, Town Council adopted the Town FY2023 budget in the same amount. 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. Further, staff presented the FY 2022/23 Tentative Budget at the June 1, 2022 Town Council Meeting, which was adopted, setting the expenditure limitation at $147,704,287 next fiscal year. Finally, staff presented a FY 2022/23 Adopted Budget, in the same amount as the Tentative Budget, at the June 15, 2022 Town Council Meeting, which was also approved. Relevant details of the changes from the Town Manager's Recommended Budget to the Tentative and subsequently Adopted Budget for FY 2022/23 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 Adopted 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. FISCAL IMPACT: $147.7M SUGGESTED MOTION: N/A Attachments FY2023 Adopted Budget Presentation  10-Year CIP  FY2023 Adopted Budget  FY 2022/23 Final Adopted Budget June 21, 2022 FY 2022/23 FINAL BUDGET Town Manager’s Recommended Budget of $159,198,148 presented to Council on May 11th and May 12th Tentative Budget adopted on June 1, 2022 which set the expenditure limitation of $147,704,287 Final Budget Adopted on June 15, 2022 Per Council direction, final budget includes $2,057,314 transfer from of the Community Center Fund to the Capital Fund to be used for the golf course irrigation capital project, leaving a $1 million fund balance in the Community Center Fund Adoption of Final Budget includes approval of 10-Year Capital Improvement Program (CIP) Council has authority to amend budget throughout the fiscal year FY 2022/23 FINAL BUDGET CHANGES FROM RECOMMENDED Personnel (net $1,247,572 million increase) Additional capacity for class and compensation study and merits +$1,300,000 Refinement of personnel budget amounts -$52,428 O&M (net $299,882 increase) Additional capacity for gasoline +$346,400 Carryover for Rooney master plan study +$35,000 Removed animal control costs -$146,518 Increased capacity for maintenance to Vistoso Trails Nature Preserve +$55,000 Added capacity for Community Center and rec lounge outfitting +$10,000 Town Managers Recommended Budget $159,198,148 Final Adopted Budget $147,704,287 Change -$11,493,861 Capital Outlay (net $13,041,315 decrease) Adjustments to NWRRDS projects -$10,300,000 Moved part of golf irrigation project phase II costs out to FY 23/24 -$2,000,000 Refinement of CIP carry-forward and costs -$1,091,315 Moved Coronado K-8 Restroom Amphi Partnership CIP project up from FY 23/24 +$150,000 Added Pusch Ridge Roof Repair to CIP +$110,000 Added Pusch Ridge Golf Course Investments to CIP +$75,000 Added capacity for storage units for Community Center +$15,000 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 Town of Oro Valley 10-Year Capital Improvement ProgramCIP 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 252,000 140,000392,000Pusch 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 ProgramCIP 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 ProgramCIP 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 ProgramCIP 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 Official Budget Forms Town of Oro Valley Fiscal year 2023 3/22 Arizona Auditor General Official City/Town Budget Forms 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) 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 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 16,217,314 - 5,378,000 - 26,694,297 2023 Interfund Transfers (out) D1016,446,977 9,463,380 - 121,500 - 662,440 - 26,694,297 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 21,341,153 4,495,220 71,720,066 - 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******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.11Town 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.3/22 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 4,085,380 Total special revenue funds $ $ $ 898,012 $ 9,463,380 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 15,557,314 Total capital projects funds $ $ $ 16,217,314 $ 121,500 Enterprise funds Water Utility Fund $ $ $ 5,378,000 $ 662,440 Total enterprise funds $ $ $ 5,378,000 $ 662,440 Total all funds $ $ $ 26,694,297 $ 26,694,297 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 $ 39,140,350Special revenue fundsCapital projects fundsEnterprise fundsFundTown of Oro ValleyFull-time employees and personnel compensationFiscal year 2023General Fund3/22 Arizona Auditor General Schedule G Official City/Towns Budget Forms