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HomeMy WebLinkAboutPackets - Budget and Finance Committee (35)       AGENDA 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   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 APRIL 19, 2022 REGULAR SESSION MEETING MINUTES   2.DISCUSSION OF TOWN MANAGER'S RECOMMENDED BUDGET FOR FY 22/23   3.PRESENTATION AND POSSIBLE DISCUSSION OF THE TOWN'S FY 21/22 FINANCIAL UPDATE THROUGH MARCH 2022 (Please reference attachments)   COUNCIL LIAISON COMMENTS   FUTURE AGENDA ITEMS   ADJOURNMENT   POSTED: 5/12/22 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 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:05/17/2022   Submitted By:Alison Cote, Legal SUBJECT: REVIEW AND APPROVAL OF THE APRIL 19, 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 April 19, 2022 regular session meeting minutes. Attachments Draft Minutes - 4/19/22  D R A F T MINUTES BUDGET AND FINANCE COMMISSION REGULAR SESSION APRIL 19, 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 4:00 PM.   ROLL CALL Present: Cathy Solverson, Chair Michael Mason, Vice Chair James Beasley, Commissioner John Fortunato, Commissioner Staff Present:David Gephart, Chief Financial Officer Wendy Gomez, Finance and Budget Administrator 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 Manager's Recommended Budget will be distributed soon - the Town's Class and Compensation study will go before Town Council for approval on 5/18 - the performance of the Town's golf courses - Jack Longley is the newest member of the Budget and Finance Commission   REGULAR SESSION AGENDA   1.REVIEW AND APPROVAL OF THE MARCH 15, 2022 REGULAR SESSION MEETING MINUTES       Motion by Commissioner James Beasley, seconded by Vice Chair Michael Mason to approve the March 15, 2022 meeting minutes as written.  Vote: 4 - 0 Carried   2.DISCUSSION AND RECOMMENDATION OF DRAFT PSPRS PENSION FUNDING POLICY FOR FISCAL YEAR ENDING JUNE 30, 2023       Discussion ensued amongst staff and commissioners regarding Agenda Item #2.    Motion by Commissioner James Beasley, seconded by Vice Chair Michael Mason to recommend the PSPRS Pension Funding Policy with changes as outlined.  Vote: 4 - 0 Carried   3.PRESENTATION AND POSSIBLE DISCUSSION OF THE TOWN'S FY 21/22 FINANCIAL UPDATE THROUGH FEBRUARY 2022       Finance and Budget Administrator Wendy Gomez presented on Agenda Item #3. Discussion ensued amongst staff and commissioners.   COUNCIL LIAISON COMMENTS Mayor Joseph Winfield commented on the following: - The Town Council meeting the following night will include a presentation on an arts program and the PSPRS policy - Budget meetings scheduled for 5/11/22 and 5/12/22 in the Council Chambers at 5 P.M.   FUTURE AGENDA ITEMS - Debriefing on the new park property and its financial implications   ADJOURNMENT    Motion by Vice Chair Michael Mason, seconded by Commissioner James Beasley to adjourn the meeting at 4:40 P.M.  Vote: 4 - 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 19 day of April, 2022. I further certify that the meeting was duly called and held and that a quorum was present. Dated this 21 day of April, 2022. ___________________________ Alison Cote Legal Secretary    Budget and Finance Commission 2. Meeting Date:05/17/2022   Submitted By:David Gephart, Finance SUBJECT: DISCUSSION OF TOWN MANAGER'S RECOMMENDED BUDGET FOR FY 22/23 RECOMMENDATION: N/A EXECUTIVE SUMMARY: Staff will discuss the FY22/23 Town Manager's Recommended Budget and answer any additional budget questions. BACKGROUND OR DETAILED INFORMATION: Attached are questions and answers to Town Council one-on-one sessions where the Town Manager's Recommended Budget for FY22/23 was presented and discussed. FISCAL IMPACT: $159.2M SUGGESTED MOTION: N/A Attachments FY23 TMRB  Council one-on-one questions and responses  TOWN MANAGER’S RECOMMENDED BUDGET FY 2022-23 Photo by: John Byerly Town of Oro Valley Fiscal Year 2022-2023 Table of Contents Financial Overview Estimated Fund Balance Report ................................... 1 Fund Balances .................................................................... 2 Budget Summary by Fund General Fund ................................................................. 3 Highway Fund ............................................................... 4 Grants & Contributions Fund …………………..……..5 Seizures & Forfeitures ................................................ 6 Community Center Fund ........................................... 7 Municipal Debt Service Fund .................................. 8 Oracle Road Debt Service Fund ............................. 9 Water Resource and System Development Impact Fee Fund .......................... 10 Townwide Roadway Development Impact Fee Fund ...................................................... 11 PAG/RTA Fund .............................................................. 12 Parks & Recreation Impact Fee Fund ................... 13 Police Impact Fee Fund ............................................. 14 Capital Fund ................................................................... 15 Recreation In Lieu Fee Fund .................................... 16 Benefit Self Insurance Fund ..................................... 17 Water Utility Fund ........................................................ 18 Stormwater Utility Fund ............................................ 19 Revenue Summary ............................................................ 20 Revenue Schedule by Fund ........................................... 21 Personnel Schedule .......................................................... 29 Program Budgets Clerk ....................................................................................... 37 Community and Economic Development ............... 39 Council .................................................................................. 47 Court ...................................................................................... 48 Finance .................................................................................. 50 Human Resources ............................................................. 52 Innovation & Technology .............................................. 53 Legal ....................................................................................... 55 Town Manager’s Office .................................................. 56 Parks and Recreation ....................................................... 60 Police ..................................................................................... 70 Public Works ....................................................................... 76 Stormwater Utility ..................................................... 88 Water Utility ........................................................................ 90 Capital Improvement Program (CIP) Capital Improvement Program Overview ................. 95 10-Year Proposed CIP ...................................................... 96 CIP Project Descriptions .................................................. 100 i April 20, 2022 It is my privilege to present the Town of Oro Valley balanced budget for Fiscal Year (FY) 2022/2023. This budget totals $159.2 million, representing a decrease of $2.8 million, or 1.7 percent lower than the adopted FY 21/22 budget of $162 million. The General Fund budget totals $51.6 million, a 12% decrease from the FY 21/22 budget of $58.9 million. This budget reflects the removal of the one-time $27 million contribution to the Town’s Public Safety Personnel Retirement System (PSPRS) unfunded pension liability from last year’s budget, a policy decision made by the Town Council in April 2021 that resulted in the Town achieving 100 percent funding for its police pension program. It also reflects substantially higher sales taxes and state shared revenues explained in more detail below. The impact of the pandemic continues to be felt both individually and collectively across the region, nation and world. Coupled with the instability related to the Russian invasion of Ukraine and the growing concern of an economic recession in the future, the Town has been mindful to continue its conservative forecast of revenues, particularly in areas considered non-essential that are often the first things families reconsider when costs increase. Sales taxes for FY 22/23 are 19 percent higher than the current fiscal year budget, largely reflecting the results inflation is having on local purchases. This budget continues to provide the high levels of service our community has come to expect and enjoy, including exciting opportunities ahead with regard to significant additional recreational amenities that will expand offerings we can provide to both residents and visitors. The Recommended Budget reflects the following overarching themes, further explained later in this message: •Addressing notable cost increases in supplies, operations and maintenance across all departments. •Adding personnel to meet growing service demands. •Implementing a robust capital investment strategy utilizing Parks and Recreation $25 million bond proceeds and other one-time revenues. •Funding annual step and merit increases as well as planned changes to the Town’s classification and compensation pay plan to ensure the organization can continue to attract and retain quality employees. ii    The increased on-going costs in personnel and operations and maintenance (O&M) remain at levels staff feel can continue to be supported in the future, even if there is an economic downturn. LOCAL, STATE AND NATIONAL TRENDS The FY 22/23 economy looks strong, but the Town is remaining cautious due to potential unpredictable events that could have significant economic impacts moving forward. While unemployment is lower than at almost any other point in modern history and the economy has been growing at the fastest pace since 1984, the Federal Reserve Board has begun taking action to combat inflation by raising interest rates, which will likely create headwinds for future economic growth. In a report just issued by the U.S. Department of Labor, the nation’s inflation rate continues to rise at a record-setting pace and hit a 12-month rate of 8.5 percent in March. While the 8.5 percent rate is the U.S. overall average, Mountain West states that include Arizona, Colorado, Idaho, Montana, Nevada, New Mexico and Wyoming saw inflation increase at a nation- leading 10.4 percent. Economists widely believe that over the next year, we will continue to recover from the pandemic- induced slump of 2020. Consensus is that the economy will likely expand by somewhere between three and four percent during this time. While that would represent a slowdown from 2021, in the decade before the pandemic, the annual rate of growth never reached three percent, so it would represent overall strong economic conditions. Arizona continues to remain well-positioned to outpace most states in jobs, income, and population increases. The outlook for the state economy is positive, with the baseline forecast calling for strong job growth in 2022 and 2023, and continued solid population gains. In contrast to solid job and population gains, income and sales growth will likely decelerate throughout 2022, which reflects the end of federal income support related to the pandemic as well as the impact high inflation is having on the overall economy. Nominal gains will likely remain positive, but inflation-adjusted income and sales are expected to decline towards the end of the year. These figures indicate that much of the economic damage that the pandemic wreaked has been repaired, but also that there is still plenty of scope for further gains in the months and years ahead. The optimistic predictions for growth are based on extrapolations from recent experience—in this case, high levels of spending, strong hiring, and continued pent-up demand—with appropriate adjustment. The trends could be impacted by known variables including COVID-19, inflation, and world events impacting supply chain and availability of resources. While there are several areas of key consequence whose severity and duration are difficult to predict and which could have a major impact on economic performance, overall, the coming fiscal year is expected to be one of growth and good news for Oro Valley. However, the economic outlook depends in part on national economic performance. Arizona is generally expecting to see solid overall economic growth, while income and sales growth decelerate throughout 2022. iii    MAJOR BUDGET CHANGES EXPLAINED O&M Cost Increases The Recommended Budget reflects a decrease of 40 percent in O&M costs attributable largely to the removal of the one-time $27.6 million contribution to the Town’s Police PSPRS pension that was budgeted and funded in FY 21/22. However, inflation, supply chain delays, and the impact of overall supply/demand issues have been reflected in the Recommended Budget and are offsetting some of that overall decline. Departmental budgets include higher-than-usual annual increases in areas such as gasoline, public safety equipment, field supplies, technology, professional services and more across the organization. Capital Investments Costs for capital projects have been projected conservatively and are higher than predicted just a year ago. The Town’s experience, as well as that of our regional and state counterparts, is that availability of contractors and subcontractors is unpredictable and continues to significantly impact the cost of capital investments. The Recommended Budget includes additional project contingency funds budgeted in the Capital Fund, Water Utility Fund, and Community Center Fund to ensure capital projects can still move forward if the Town’s updated estimates do not align with future market conditions. In keeping with the Town Council’s financial policies, the Recommended Budget includes a transfer of $13 million in excess reserves to the Capital Fund to fund capital projects included in the current and future year budgets. The transfer includes $10 million in ARPA dollars that do not have restrictions but must be spent or otherwise encumbered no later than December 31, 2024. New Positions The Town has been very conservative in adding new personnel over the past five years, but workload increases have necessitated the addition of nine new full-time and four part-time positions. Public Safety – Most significant is in the Public Safety realm with a total of five full-time and one part-time position. The Town has been able to use State Smart and Safe funds generated from the legalization of marijuana ($325,000 in FY 22/23) and an estimated $100,000 from the recent national opioid settlement (per year for 18 years) to fund most of these positions. The Recommended Budget includes an additional two police officers in the Police Department and a civilian public information officer (PIO), which will then free up a sergeant position currently assigned to PIO duties to resume full-time policing work. An additional telecommunicator position has also been added. These four positions will allow the Police Chief to keep up with increases in calls for service in the community, help iv    support the new Pima Regional Critical Incident Team and academy counselors, reduce overtime use in telecommunications to reach minimum staffing levels, and maintain overall response rates. The recent changes in state law regarding marijuana use and other process changes at the Pima County Attorney’s Office have also resulted in an increase in misdemeanor cases getting processed through the Town Court. An additional prosecutor has been added to the Legal Services Department to ensure cases being referred by the Police to Town Court can be prosecuted in a timely fashion. There is also a new part-time probation compliance officer proposed in the Town Court to assist in addressing ongoing compliance-related requirements. Administration – The Recommended Budget includes a procurement specialist position to assist the two-member Procurement team with the considerable work required to support the large list of capital projects and more effectively search for vendors, shared contracts and other sources in a challenging and competitive market. In Innovation & Technology, an additional IT technician is necessary to support the growing use of technology in the organization’s operations, with special emphasis on the needs of the Police Department. Parks and Recreation – In Parks and Recreation, two new part-time positions (lifeguard supervisor and fitness instructor) will support increased hours and expanded fitness classes at the Aquatic Center, with costs offset by additional revenue. An additional parks maintenance worker has been added to provide the capacity to supervise another Department of Corrections inmate crew to cost effectively address maintenance needs in outlying areas, the trail system and landscaped public rights-of-way. An additional park monitor will help cover after hours and special events at Town parks as they continue to grow post-pandemic. Public Works – The Recommended Budget also includes an additional fleet mechanic that will more effectively utilize the renovated third maintenance bay, improving service and preventative maintenance on the Town’s fleet while reducing external contract costs. Staff Retention and Attraction The pandemic has impacted worker movement, salaries and benefits across many sectors. The “Great Resignation,” as it has come to be known, has resulted in 2021 holding the highest average number of workers who quit their jobs—almost four million across the nation. Oro Valley has not been immune to this trend, although the Town has fared better than other organizations. The state minimum wage laws and now the voter-approved City of Tucson minimum wage initiative have and will continue to increase wages for entry level workers in the region. Companies are out- bidding for talent across multiple industries. v    As a service-based organization, recruiting and retaining top talent is foundational to the Town’s ability to provide quality public services. As such, the Town is finalizing a comprehensive classification and compensation study that will adjust employee pay grades to remain competitive. The Recommended Budget includes $1.3 million in the General Fund set aside for the implementation of the final pay plan, which is expected to be brought before Council in two pieces beginning in May. The budget also includes funds to continue normal step increases and merit adjustments for all eligible Town employees. The Town continues to perform well in its employee health self-insurance fund. With an ongoing emphasis on wellness and early detection, Town employees and their dependents are not only well served with outstanding health plan choices, but they are taking steps to remain healthy. As a result, the Town will not need to increase employee-only health premiums for FY 22/23 for the third year in a row, an anomaly in the health benefit arena today. Dependent premiums are moving slowly to a universal 75 percent contribution by the Town, a process that will conclude next fiscal year. The Town’s benefit advisor has expressed that the self-insurance fund reserves remain very healthy and are more than adequate to address any unexpected claims. SUPPORTING THE TOWN COUNCIL FY 21/22 – FY 22/23 STRATEGIC LEADERSHIP PLAN Foundational to the work of Town staff and resources is the leadership direction of the Mayor and Town Council. In addition to the day-to-day work of good government like responding to emergency calls, conducting building inspections, processing business licenses, and ensuring residents and visitors have quality water, the elected body sets a robust number of two-year priorities for further emphasis. These priorities reflect the following overarching strategic focus areas:  Economic Vitality  Recreation and Culture  Public Safety  Roads, Water and Town Assets  Land Use and Design  Efficient and Effective Government  Financial Stability and Sustainability The Town of Oro Valley has a demonstrated history of responsible budgets, strong reserve funds, conservative financial projections and continuous improvement. The FY 22/23 Recommended Budget continues to build upon that foundation and is structurally balanced, meaning one-time revenues are used for one-time investments—not for supporting ongoing operations. Department directors continued their practice of being prudent in making budget requests necessary to support operations and collaborated fully to ensure the budget was balanced. vi    Strategic Investments The Recommended Budget includes funds that support the Council’s Strategic Leadership Plan priorities and focus areas. Economic Vitality –The recommended Community and Economic Development (CED) budget focuses on supporting the department’s shift from OVSafeSteps to OVNextSteps, amending Town Codes in response to emerging consumer buying habits and making Oro Valley more business friendly. The department will also be prioritizing actions that identify and recruit high-quality primary employer prospects, developing strategies to incentivize entrepreneurial opportunities for start-up and home-based businesses. The budget includes $25,000 to conduct a retail market assessment, which will help the Town target specific retailers in the future to help fill vacant spaces. In addition, the Town will continue to partner with the Oro Valley Chamber of Commerce to conduct the annual business summit. Starting January 1, 2021, the Town Manager transferred the tourism function to CED. With a recent vacancy, the Town has recruited a tourism specialist and will broaden its own attraction efforts to augment what Visit Tucson is doing as part of the Town’s annual destination marketing contract. Next year’s budget includes $75,000 to begin implementation of the newly developed Oro Valley-centric visitor attraction and marketing strategy. Recreation and Culture – The Recommended Budget continues to focus on (1) investing and maintaining high quality parks, recreation, and trail facilities, and (2) providing residents with multigenerational recreation and cultural programs and events. Of note is the robust investment in Naranja Park to begin implementation of the updated master plan, which includes additional multi-purpose fields, a splash pad, pickleball courts, a basketball court, skate park and pump track. With a groundbreaking scheduled for May 31, 2022, residents can expect to see significant grading taking place starting this summer, followed by construction of the next phase of amenities, which will be finalized this fall. The Town Council recently added a new objective to its Strategic Leadership Plan related to the planned transfer of the former Vistoso Golf Course from The Conservation Fund to the Town this summer. The Recommended Budget includes funds to make safety improvements to the property, reopen restrooms, and maintain the property year-round. Property master planning will also take place to include significant community input, which will be the foundation of future investment priorities. One of the most visited recreation properties, Steam Pump Ranch, will see additional investments in the coming fiscal year starting with the completion of the Garage renovation. The Recreation and Culture Division will move into the building shortly thereafter and begin expanding the programming for area residents, including targeted programs for seniors. Restoration of the BBQ and Bunk Houses, as well as the swimming vii    pool demolition, will also see further progress toward the eventual completion of the master plan and will facilitate expanded access for new programs and events. During the pandemic, the Aquatic Center was one of the only public pools open in the region and the facility enjoyed more and more users. As programs expand, the additional part-time staff will support the pre-pandemic operating hours and facilitate an increase in aquatic fitness classes, offset by additional revenues. The Town has gradually been making lifecycle replacements to the facility, and the Recommended Budget includes funds to add upgraded filtration and sanitization systems that will have an overall improved water quality for swimmers while at the same time reduce chemical usage. The Town is projecting that the golf operation will end the fiscal year virtually break even for the first time since the Town acquired the property. As resources in the Community Center Fund are freed up, the fund can now accommodate needed repairs and upgrades to the golf courses, tennis courts and buildings. The Recommended Budget includes the completion of the Conquistador irrigation replacement and the start of the Cañada Course, with the final $2 million planned for FY 23/24. Also included are some additional post- irrigation Conquistador Golf Course improvements, such as changing the greens from bent grass to Bermuda grass, turf reduction around the greens, and lifecycle replacement of bunker sand as well as re-grassing the driving range floor. ADA improvements to both the Community Center and Pusch Ridge tennis/golf building are also budgeted, as well as the 10-year resurfacing of the Pusch Ridge tennis courts. Public Safety – The Recommended Budget continues to prioritize funding for the health, wellness, and safety of the Town’s first responders. Safety for the community and staff includes additional training and up-to-date equipment. Looking to the future, succession planning is also a priority, which involves training and recruitment. The Police Chief continues to make minor organizational changes to increase efficiencies and focus policing resources on data-driven needs, including Pima Regional Critical Incident Team and academy needs. Part of the overall public safety ecosystem includes the Town Court and Legal Services. The additional personnel investments in these two departments will help ensure the Town follows up with the prosecution of crimes that the Pima County Attorney opts not to accept, further contributing to the overall safety of the community. The Recommended Budget also includes $200,000 to design building improvements at the Town Court to address lobby deficiencies and space constraints for confidential discussions among prosecutors and defense attorneys that will improve the overall efficiency of the Court operations. Once designed, improvements will be budgeted in FY 23/24. Roads, Water and Town Assets – The Recommended Budget includes resources to continue funding the Town’s highly successful pavement management program at $1.8 million to ensure the Town continues to maintain its overall pavement condition (OCI) index of 76. As roads continue to age, these investments are crucial to managing long- viii    term pavement investments. Several major road repairs are included, which are noted below under the capital overview. The Recommended Budget for the Water Utility operating fund increased by 19 percent from FY 21/22. This increase is primarily due to increases in Central Arizona Project (CAP) water resource costs related to the Colorado River Tier 1 shortage and the construction of the Northwest Recharge, Recovery and Delivery System (NWRRDS), a partnership with the Town of Marana and Metro Water District. The NWRRDS project is a multi-year project that, when completed, will allow the Utility to increase utilization of the Town’s CAP water allocations in the future. In total, for FY 22/23 the Water Utility has budgeted $4.6 million for CAP water and $12 million for the NWRRDS project. Of the $12 million budgeted for the NWRRDS project, $7.2 million is funded from Water impact fees. In addition, maintaining Town facilities remains a continuing priority. The Facilities Division of Public Works includes $450,000 for a variety of smaller projects not included in the Capital Fund, such as roof repairs, facility painting, ADA improvements and flooring replacement. These projects are tasks identified in the Facilities 10-year Maintenance and ADA Plan. There are three bridges that require deck surface improvements, one of which was in the FY 21/22 budget; however, due to the unprecedented increased construction costs, and since the deck issues are more aesthetic and maintenance-related than structural, the bridge resurfacing will be deferred. Staff will pursue regional funds via the Bipartisan Infrastructure Law, which includes funds for the Bridge Formula Program. This competitive program requires detailed information; hence the Town will perform design concept reports that will address the deck issues and recent cost estimates in preparation for the upcoming applications. In the meantime, the Recommended Budget includes $60,000 for ongoing maintenance of the three bridges until a more permanent solution is identified. The Grant Fund has $1.6 million in additional capacity included for potential grants of this nature, and other opportunities that may come up during the year. Also in the Grant Fund is a placeholder for a potential $3.3 million grant for the Arizona Broadband Development Grant project. If the Town is awarded the grant, this project will establish a fiber optic network owned and managed by the Town of Oro Valley that encourages competition by private internet service providers to improve services to residents and business while connecting Town assets. This project will establish 26 miles of fiber to improve competition and connectivity in the Town targeting areas that are unserved or underserved. The Recommended Budget includes a transfer of $1 million in excess reserves to serve as a fund balance for future grant matches, allowing the Town to pursue unplanned grants during the fiscal year. Land Use and Design – From a land use perspective, the Recommended Budget includes funding for studies related to housing, code amendments, recreation amenity requirements, and other topics related to community development. Staff will complete an ix    analysis of Town codes and ordinances to ensure the design standards maintain the unique character of Oro Valley while also providing for a variety of architectural concepts that integrate with and enhance the community. In addition, a Housing Study will help determine the types of residential opportunities necessary to successfully promote a thriving and diverse economic base. Staff will review the Town’s outdoor lighting code for potential improvements. Staff will also conduct an analysis of recreation amenity requirements for residential subdivisions and recommend updates that will prioritize larger neighborhood area parks and amenities as outlined in the Parks and Recreation needs assessment. Finally, the budget includes funds to complete the Rooney Property Master Plan that considers opportunities for economic growth, retention of open space, and potential future municipal uses. Efficient and Effective Government – The Town continues to gain momentum applying Peak Performance process improvement tools to daily tasks and projects. These tools, training, and methodologies touch all Town departments. Resources are again budgeted to continue the highly effective OV Peak Performance process improvement initiative for FY 22/23. So far in FY 21/22, Peak Performance implemented 16 process improvements across the organization resulting in a $97,404 savings in ongoing time and materials. All employees are challenged to look at existing processes within their own individual or team scope as well as the organization as a whole. By utilizing process improvement tools, teams throughout the Town can set goals and daily targets for their work, track and measure successes and opportunities, and generate ideas for improvement. Town employees are learning to be aware of how current job processes affect the value that is delivered to both internal and external customers. Their focus is on how to improve the processes they work with every day and in turn, employees are encouraged to consistently try to improve value through innovative new ideas. As of April 2022, the Peak Performance initiative has implemented 16 process improvement projects across the organization in FY 21/22, which will result in a projected annual savings of $97,404 in ongoing time and materials. Financial Stability and Sustainability – As noted earlier, the Recommended Budget includes a transfer of $13 million in excess reserves to the Capital Fund, giving that fund a healthy balance to fund Council priorities as well as normal maintenance and replacement projects. As part of the Town’s continued strong record of financial management, the Recommended Budget also includes a transfer of $5.4 million in federal American Rescue and Recovery Act (ARPA) funds to the Water Utility for use toward the NWRRDS project. This portion of the Town’s allocation has restrictions for use, and the NWRRDS project qualifies. By using these resources for the project, the Utility will avoid the considerable costs associated with borrowing funds for the project. The Town Manager will present a formal action to the Council post budget adoption to memorialize the agreement, which will include a payback schedule to the Capital Fund. Staff will also complete the buildout analysis with financial projections next fiscal year as a joint project between Finance and Community and Economic Development. x    Other Regional Partnerships The Recommended Budget includes funds to continue the Town’s partnerships with the Oro Valley Chamber of Commerce ($42,500), the Oro Valley Children’s Museum ($75,000), the Southern Arizona Arts and Cultural Alliance ($25,000) and the University of Arizona Center for Innovation at Oro Valley ($30,000). Funding for the Town’s destination marketing organization, Visit Tucson, has been budgeted at a continued $410,000 in FY 22/23, reflecting higher bed tax collections since the annexation of the Westward Look resort last year. In addition, the Recommended Budget also includes funding from the Stormwater Utility Fund to support regional floodplain management activities related to wash improvements. Specifically, the Mutterer Wash area near Greenock Drive and Oracle Road as the wash makes its way into the Cañada Del Oro Wash. The confluence of several washes meets at this location with the Pima County Regional Flood Control District managing the Rooney and Cañada Del Oro Washes. In partnership with the Federal Emergency Management Agency (FEMA) and Pima County, the Stormwater Utility has funds budgeted to develop a set of alternatives to alleviate the continued maintenance and management of this area. The Stormwater Utility capital budget is set to decrease by 32 percent as the Utility continues to leverage partnership opportunities to perform floodplain maintenance and repair projects. With the Town’s partnership with the Regional Transportation Authority (RTA), the Recommended Budget provides the necessary local match to acquire five replacement busses for the Sun Shuttle Dial-a-Ride system. The transit system ridership is experiencing significant growth, and the $98,000 match will facilitate the purchase of more than $491,000 worth of vehicles through the ADOT grant program. An increased reimbursement rate from the recently passed IGA will offset the increase in transit wages that pays for the increase in drive pay to reflect the market and address driver recruitment, resulting in a continuation of a program that delivers high-quality transit mobility to our community. CAPITAL INVESTMENTS Capital Fund With more than $250 million in Town assets, continuing investments in existing infrastructure is vital. The Town Council’s financial policies include a requirement that the Town set aside at least five percent of sales tax revenues for the Capital Fund annually, which is projected at approximately $1.3 million for FY 22/23. The Recommended Budget also includes a transfer of $10 million in ARPA funds from the General Fund to the Capital Fund. Expenditures in the Capital Fund total $32.1 million for FY 22/23, which includes a substantial portion of the $25 million in bond proceeds approved by the Town Council in September 2021 for investments in Naranja Park, exterior improvements to the Community Center, and multi-use paths. The following descriptions are highlights of some of the Capital Fund projects. Those that are part of the bond are noted with a plus (+) and those that include carryover from the current budget xi    are noted with an asterisk (*). Some of the carryover projects may be adjusted downward prior to the final budget adoption as work continues to progress over the next two months. The rest of the capital projects can be found in the Capital Improvement Program (CIP) section of the Recommended Budget. Naranja Park Improvements+ $10 million Partial implementation of the updated master plan Tennis/Pickleball Courts+ $2.2 million Completion of improvements to courts at Community Center Community Center Parking Lot+ $200,000 Initial phase of parking lot expansion and reconfiguration Golf Course Irrigation Replacement+ $6,980,000 Completion of Conquistador course; half of La Cañada Course Multi-use Paths+ $1,350,000 Installation of La Cañada MUP; design of Naranja Drive MUP Aquatic Center Improvements $846,000 Replacement of competition equipment and pump room upgrades ADA Improvements $242,000 At JDK park and at Pusch tennis/golf facility Steam Pump Ranch* $1,213,408 Carryover for Garage, plus renovation of BBQ and Bunk House; demo/repurpose of pool area Town Court Expansion $200,000 Design only Public Works Laydown Yard $325,000 Improvements to relocated yard from Naranja Park Emergency Generators* $724,900 Replacement generators and one new one at 680 Calle Concordia Community Center Elevator $750,000 Installation of elevator The Capital Fund has a contingency of $5 million budgeted this year to ensure there is capacity to respond to the uncertain construction market and still allow planned projects to move forward. Even with this robust list of projects and the contingency in the Recommended Budget, the Capital Fund will still have a balance of $6 million for future years’ capital projects. xii    Community Center Fund Of note this year is the healthy Community Center Fund balance due to the availability of other resources to fund the irrigation replacement project and the tremendous performance of both the golf courses and Community Center. With the Town Council policy change on broadening the use of the fund for other parks and recreation projects, the healthy balance has allowed for the placement of capital projects in this fund that would otherwise be paid out of the Capital Fund. With the expected transfer of the former Vistoso Golf Course to the Town, use of the Community Center Fund for capital investments and ongoing maintenance of the property will help keep the strain off the General Fund and ensure the Town is prepared to take on the additional ongoing costs of maintaining the new bond-funded infrastructure investments in the future. The following are highlights of capital projects recommended for funding from the Community Center Fund. The rest can be found in the CIP section of the budget. Conquistador Cart Path $276,000 Repaving of the golf cart path Driving Range/Conquistador Course $200,000 Re-grassing of Conquistador greens, driving range; turf reduction, bunker replacement Equipment Lifecycle Replacement $150,000 Fitness equipment replacement Pusch Tennis Court Resurfacing $120,000 10-year maintenance treatment Former Vistoso Course Repairs $350,000 Safety improvements to paths, access, and Signage and restrooms; start of master planning Community Center ADA $750,000 Project on hold for potential additional costs for elevator installation The Community Center Fund also includes several necessary operating capital projects for the Community Center building, which are in the O&M portion of the budget. These projects include the fire alarm system upgrade, replacing the flooring and subfloor of the Overlook Restaurant, and design of ADA compliant interior tennis restroom spaces at the Pusch Ridge facility. Transportation and Drainage Infrastructure The Recommended Budget includes funding for several road projects in addition to the $1,850,000 million in the Highway Fund for pavement preservation, which has increased by $250,000 since last fiscal year due to the significant surge in material costs. The other projects xiii    are funded in the PAG/RTA Fund, Roadway Impact Fund, HURF Fund, Stormwater Utility Fund and one project from the Capital Fund. These projects include improvements to the Rancho Vistoso and Woodburne intersection, the repaving of Shannon Road, a potential HAWK signalized crossing on Naranja Drive at Ironwood Ridge High School, the mill/overlay of La Cañada Drive from Tangerine Road to Moore Road, Catalina Ridge Drainage Improvements and Sierra Wash Drainage Improvements. Detail can be found in the CIP section of the budget. Fleet The FY 22/23 Recommended Budget continues to include funding for routine fleet replacements at nearly $1.8 million, which includes eight carryover vehicles that could not be purchased this fiscal year due to supply chain issues. These replacements include $1.1 million for the replacement and outfitting of 18 police vehicles, $12,000 for heavy equipment, and $110,000 as part of Town’s portion to replace five public transit vans. The Town funds a healthy vehicle reserve in the Capital Fund in addition to the required five percent of sales tax revenues to ensure fleet replacements can continue on schedule annually. Water Utility The Water Utility’s Capital program includes seven existing system improvement projects totaling $1.1 million, and four growth-related projects totaling $13 million. Of the total CIP budget of $14.1 million, $8.2 million is funded with water impact fees. This year’s total CIP budget is a $6.9 million, or 97 percent increase from the adopted FY21/22 budget. Most of the increase is due to the expenses associated with the construction of the Northwest Recharge Recovery and Delivery System (NWRRDS) slated to start FY 22/23. Details can be found in the CIP section. xiv    FINANCIAL OVERVIEW Below are two charts depicting the total FY 22/23 Recommended Budget of $159.2 million by category and fund. Personnel $40.5M 25% O&M $34.4M 22% Capital $59.5M 37%Debt Service $9.3M 6% Contingency Reserves $15.5M 10% FY 2022/23 Recommended Budget by Category xv General Fund The General Fund budget totals $51.6 million (including contingency reserves of $5 million and excluding interfund transfers of $15.9 million), and overall is $7.2 million or 12 percent less than the current year budget of $58.9 million. The General Fund has a planned use of excess reserves to fund identified one-time projects and initiatives. The following are key revenue provisions included in the General Fund budget: • In total, FY 22/23 General Fund revenues are $1.1 million or 2.4 percent higher than FY 21/22 budgeted General Fund revenues. • FY 22/23 local sales tax collections in the General Fund are $4.1 million or 19.4 percent higher than FY 21/22 budget figures, which is due largely to price inflation and the economic recovery from the pandemic. • State-shared revenues are overall $1.2 million or 8.9 percent higher than FY 21/22 amounts. These revenue sources are dependent on population figures and revenue collections by the state. • Licenses and permit revenues are $375,000 or 20.3 percent higher than the adopted FY 21/22 budget due to commercial building activity projected for the coming year. • Charges for Services are $659,000 or 27.6 percent higher than the adopted FY 21/22. Primary drivers for this increase are a recovery of Parks and Recreation related revenues as well as increased administrative support charges to the Town’s enterprise funds. $51.6M $37.1M $20.5M $15.2M $11.7M $5.8M $4.8M $4.4M $4.3M $2.3M $1.2M $0.2M General Fund Capital Fund Water Utility Fund Impact Fee Funds Community Center Fund Grants & Contributions Highway Fund Debt Service Funds Benefit Self Insurance Fund Stormwater Utility Fund PAG/RTA Fund Misc Funds $0 $20 $40 $60 MillionsFY 2022/23 Recommended Budget by Fund xvi    The following are key expenditure provisions included in the General Fund budget:  Budgeted personnel costs for FY 22/23 total $33.6 million. This figure includes step increases for sworn Police positions as well as 2.5 to 3 percent merit increases for all eligible Town positions. Additionally, the FY 22/23 personnel budget includes capacity for all recommended staffing changes noted earlier, as well as $1.3 million reserved for job class pay rate adjustments expected from a classification and compensation study to be finalized in the coming months.  For FY 21/22, department O&M budget figures represented spending slightly below pre- pandemic levels. For FY 22/23, department O&M budgets increased $1 million or 12.4 percent, a combination of returning to pre-pandemic operational expenditures, as well as increased prices for gasoline, technology, insurance and vehicle maintenance.  There is a budgeted transfer of $13.0 million to the Capital Fund. This amount includes five percent of estimated General Fund sales tax collections per Town policy, as well as $10 million in unrestricted ARPA funds.  Transfers out include approximately $1.3 million for debt service on the $17 million issuance of pension obligation bonds in FY 21/22. The estimated year-end reserve balance in the General Fund (excluding contingency) for FY 22/23 is $12.6 million or 27.0 percent of the expenditure budget. The Town’s adopted policy level is 25 percent. Water Utility Fund Revenues for the Water Utility Fund are estimated at $18.7 million, which is a $1.4 million or 8 percent increase from the adopted FY 21/22 budget due to a projected increase in water sales, including a proposed five percent increase in potable water rates. Expenses for the Water Utility Fund are budgeted at $24.8 million, which is a $4 million, or 19 percent increase from the adopted FY 21/22 budget. This increase is primarily due to increased water resource costs and the construction of the NWRRDS project. Capital expenses are detailed in the CIP section of the Recommended Budget document. 10-Year Capital Improvement Program (CIP) Town Council financial policies require the development of a 10-year Capital Improvement Program, which is reviewed and modified every year based upon needs and projected funding. The full 10-year plan projects a need for $346.6 million in funding through FY 31/32. Total funding allocated to CIP projects for FY 22/23 is $56.1 million, $5.2 million of which is funding carried forward from the prior year for ongoing budgeted projects. Highlights of the 10-year CIP plan include $62.8 million for potential new municipal facilities, $51.6 million for Parks and Recreation related amenities, $23.2 million for the Water Utility NWRRDS project, $22.3 million in continued pavement management and preservation, $17.3 million for Lambert Lane widening, and $9.4 million for road reconstruction and/or improvements. Additional details regarding CIP projects and project funding are included in the CIP section. xvii    CONCLUSION The past two years have been challenging in many ways. Through it all, under the leadership of the Mayor and Town Council, the Town government has continued delivering quality services and has planned and begun implementation of initiatives and capital investments that will significantly benefit the Oro Valley community for generations to come. I am very proud to present a FY 22/23 Recommended Budget that will continue that trajectory in the coming fiscal year. I would like to recognize and acknowledge the exceptional level of collaboration among staff from all Town departments in the development of this year’s budget, and for their diligence in responding to the Town Council’s strategic direction. I especially want to recognize my budget team for their extraordinary work and countless hours in preparing the budget: Senior Budget Analyst Christopher Hutchison, Finance and Budget Administrator Wendy Gomez, Chief Financial Officer David Gephart, Chief Information Officer Chuck Boyer and Assistant Town Manager Chris Cornelison. Respectfully submitted, Mary Jacobs Town Manager Updated: April 15, 2022 BUDGETED BEGINNING FUND BALANCE REVENUE TRANSFERS IN TOTAL PERSONNEL O&M CAPITAL TRANSFERS OUT DEBT SERVICE CONTINGENCY TOTAL GENERAL FUND 19,390,147 48,180,302 - 67,570,449 33,614,681 11,621,066 1,387,725 15,946,977 - 5,000,000 67,570,449 HIGHWAY FUND900,980 3,935,191 - 4,836,171 1,186,556 823,615 2,626,000 - - 200,000 4,836,171 GRANTS & CONTRIBUTIONS99,950 10,221,097 898,012 11,219,059 - 2,179,750 3,561,309 5,378,000 - 100,000 11,219,059 SEIZURES & FORFEITURES 98,000 102,000 - 200,000 - 100,000 - - - 100,000 200,000 COMMUNITY CENTER FUND5,196,155 8,507,335 - 13,703,490 916,806 5,433,918 2,324,700 2,028,066 - 3,000,000 13,703,490 MUNICIPAL DEBT SVC FUND109,500 130,588 4,200,971 4,441,059 - 10,000 - - 4,331,059 100,000 4,441,059 WRSDIF FUND7,805,659 1,251,346 4,780,000 13,837,005 - 214,000 13,035,688 - 337,317 250,000 13,837,005 TWDIF FUND775,795 392,300 - 1,168,095 - 15,000 903,095 - - 250,000 1,168,095 PAG/RTA FUND83,875 1,099,699 - 1,183,574 - 200,000 983,574 - - - 1,183,574 PARKS & REC IMPACT FEE FUND- 168,520 - 168,520 - 7,000 - - - 161,520 168,520 POLICE IMPACT FEE FUND115,300 58,200 - 173,500 - 2,000 - 121,500 - 50,000 173,500 CAPITAL FUND22,594,684 1,465,010 13,000,000 37,059,694 330,861 - 31,728,833 - - 5,000,000 37,059,694 REC IN LIEU FEE FUND16,560 - - 16,560 - - - - - 16,560 16,560 BENEFIT SELF INSURANCE FUND500,000 3,764,477 - 4,264,477 - 3,764,477 - - - 500,000 4,264,477 WATER UTILITY FUND1,187,833 18,707,000 5,378,000 25,272,833 3,623,587 9,649,261 2,074,290 4,782,440 4,643,255 500,000 25,272,833 STORMWATER UTILITY FUND846,645 1,494,000 - 2,340,645 820,287 385,845 884,513 - - 250,000 2,340,645 59,721,083 99,477,065 28,256,983 187,455,131 40,492,778 34,405,932 59,509,727 28,256,983 9,311,631 15,478,080 187,455,131 (28,256,983) (28,256,983) 159,198,148$ 159,198,148$ FY 2022/23 BUDGETFY 2022/23 BUDGETDoes not include non cash outlays for depreciation or amortizationFund Balance ReportFY 22/23 MANAGER'S RECOMMENDED BUDGETREVENUESEXPENDITURESLess Transfers InLess Transfers OutTown of Oro Valley2022-2023 Town Manager's Recommended Budget1 Fiscal Year 2022-2023 Special Capital Internal General Revenue Enterprise Project Service Debt Service 2022-2023 Fund Funds Funds Funds Fund Funds Total Revenues and Other Sources Taxes 25,270,959$ 3,477,236$ -$ -$ -$ -$ 28,748,195$ Licenses and Permits 2,223,824 25,000 - - - - 2,248,824 Fines 125,000 - - - - - 125,000 Water Sales - - 15,383,000 - - - 15,383,000 Charges for Services 3,046,515 4,868,049 4,716,500 28,125 - - 12,659,189 State Shared Revenue 14,952,004 3,899,191 - - - - 18,851,195 Intergovernmental 1,708,000 - - - - - 1,708,000 Grants 455,000 8,721,047 - 1,491,574 - 30,088 10,697,709 Seizures & Forfeitures - 100,000 - - - - 100,000 Impact Fees - - - 1,712,866 - - 1,712,866 Interest Income 150,000 10,050 101,500 157,500 - 500 419,550 Miscellaneous 249,000 1,665,050 - 1,045,010 3,764,477 100,000 6,823,537 Other Financing Sources - 898,012 5,378,000 17,780,000 - 4,200,971 28,256,983 Total 48,180,302$ 23,663,635$ 25,579,000$ 22,215,075$ 3,764,477$ 4,331,559$ 127,734,048$ Expenditures and Other Uses General Government Town Council 199,145$ -$ -$ -$ -$ -$ 199,145$ Town Manager's Office 1,151,222 - - - - - 1,151,222 Clerk 420,087 - - - - - 420,087 Human Resources 569,112 - - - - - 569,112 Finance 1,033,216 - - - - - 1,033,216 Innovation & Technology 4,782,971 - - - - - 4,782,971 Legal 1,011,342 - - - - - 1,011,342 Town Court 1,053,081 - - - - - 1,053,081 General Administration 4,339,433 5,210,000 - 24,000 3,764,477 10,000 13,347,910 Debt Service - - - - - 4,331,059 4,331,059 Capital Projects - - - 31,728,833 - - 31,728,833 Comm. & Econ Dev.3,256,140 - - - - - 3,256,140 Parks & Recreation 3,760,556 8,715,424 - - - - 12,475,980 Police 19,148,173 453,750 - - - - 19,601,923 Public Works 5,898,994 4,773,480 2,090,645 330,861 - - 13,093,980 Water Utility - - 15,347,138 13,249,688 - - 28,596,826 Water Utility Debt Service Principal - - 4,229,099 333,327 - - 4,562,426 Interest - - 414,156 3,990 - - 418,146 Roadway Improvements - - - 2,086,669 - - 2,086,669 Other Financing Uses 15,946,977 7,406,066 4,782,440 121,500 - - 28,256,983 Total 62,570,449$ 26,558,720$ 26,863,478$ 47,878,868$ 3,764,477$ 4,341,059$ 171,977,051$ Increase/(Decrease)(14,390,147) (2,895,085) (1,284,478) (25,663,793) - (9,500) (44,243,003) Beginning Fund Balance 26,960,826$ 6,912,989$ 11,499,146$ 51,464,177$ 2,404,515$ 163,661$ 99,405,314$ Ending Fund Balance 12,570,679$ 4,017,904$ 10,214,668$ 25,800,384$ 2,404,515$ 154,161$ 55,162,311$ (1) The General Fund is planned to decrease by $14,390,147 due to a $13 million transfer of fund balance to the Capital Fund. (2) Special Revenue Funds are planned to decrease $2,895,085 for planned capital projects. (3) Enterprise Funds are planned to decrease by $1,284,478 due to one-time capital projects. (4) Capital Project Funds are planned to decrease by $25,663,793 due to one-time capital projects and equipment. (5) The Debt Service Funds are planned to decrease by $9,500 for debt service payments and associated administrative costs. Fund Balances This table depicts the estimated beginning fund balance at July 1, 2022, the budgeted revenues and expenditures for FY 2022/23 and the projected ending fund balance at June 30, 2023. (1)(2)(3)(4)(5) Town of Oro Valley 2022-2023 Town Manager's Recommended Budget 2 Fiscal Year 2022-2023 General Fund Fund Summary FY 2022 FY 2022 FY 2023 Variance with Variance with Budget Projected Budget Budget ($) Budget (%) Revenues and Other Sources Local Taxes 21,157,707 26,070,335 25,270,959 4,113,252 19.4% Licenses and Permits 1,849,000 2,197,500 2,223,824 374,824 20.3% Federal Grants 5,990,290 6,068,448 380,000 (5,610,290) -93.7% State Grants 75,000 75,000 75,000 - 0.0% State Shared Revenues 13,729,923 14,271,621 14,952,004 1,222,081 8.9% Intergovernmental 1,344,500 1,364,700 1,708,000 363,500 27.0% Charges for Services 2,387,776 2,514,733 3,046,515 658,739 27.6% Fines 125,000 125,000 125,000 - 0.0% Interest Income 150,000 150,000 150,000 - 0.0% Miscellaneous 264,000 248,825 249,000 (15,000) -5.7% Total 47,073,196$ 53,086,162$ 48,180,302$ 1,107,106$ 2.4% Expenditures and Other Uses Personnel 30,775,632 29,547,575 33,614,681 2,839,049 9.2% Operations & Maintenance 21,981,773 22,057,252 11,621,066 (10,360,707) -47.1% Capital Outlay 1,095,175 666,219 1,387,725 292,550 26.7% Transfer to Capital Fund 5,216,277 5,216,277 13,000,000 7,783,723 149.2% Transfer to Grants Fund 100,000 100,000 898,012 798,012 798.0% Transfer to Debt Service Fund 2,091,987 946,555 2,048,965 (43,022) -2.1% Total 61,260,844$ 58,533,878$ 62,570,449$ 1,309,605$ 2.1% Increase/(Decrease)(14,187,648)$ (5,447,716)$ (14,390,147)$ Beginning Fund Balance 26,960,826 Total Ending Fund Balance 12,570,679 25% Coverage 11,655,868 Town of Oro Valley 2022-2023 Town Manager's Recommended Budget 3 Fiscal Year 2022-2023 Highway Fund Fund Summary FY 2022 FY 2022 FY 2023 Variance with Variance with Budget Projected Budget Budget ($) Budget (%) Revenues and Other Sources Licenses and Permits 25,000 30,000 25,000 - 0.0% State Shared Revenues 3,614,922 3,870,000 3,899,191 284,269 7.9% Interest Income 6,000 8,000 8,000 2,000 33.3% Miscellaneous 2,000 5,069 3,000 1,000 50.0% Total 3,647,922$ 3,913,069$ 3,935,191$ 287,269$ 7.9% Expenditures and Other Uses Personnel 1,208,870 1,188,023 1,186,556 (22,314) -1.8% Operations & Maintenance 616,655 616,655 823,615 206,960 33.6% Capital Outlay 2,265,000 2,265,000 2,626,000 361,000 15.9% Total 4,090,525$ 4,069,678$ 4,636,171$ 545,646$ 13.3% Increase/(Decrease)(442,603)$ (156,609)$ (700,980)$ Beginning Fund Balance Committed 1,086,369$ Ending Fund Balance Committed 385,389$ Town of Oro Valley 2022-2023 Town Manager's Recommended Budget 4 Fiscal Year 2022-2023 Grants & Contributions Fund Fund Summary FY 2022 FY 2022 FY 2023 Variance with Variance with Budget Projected Budget Budget ($) Budget (%) Revenues and Other Sources Federal Grants 312,250 383,519 8,542,000 8,229,750 2635.6% State Grants 142,000 158,000 179,047 37,047 26.1% Interest Income - 45 50 50 0.0% Miscellaneous 1,500,000 - 1,500,000 - 0.0% Transfer from General Fund 100,000 100,000 898,012 798,012 798.0% Total 2,054,250$ 641,564$ 11,119,109$ 10,064,859$ 954.7% Expenditures and Other Uses Operations & Maintenance 1,612,250 50,000 2,179,750 567,500 35.2% Capital Outlay 342,000 40,625 3,561,309 3,219,309 941.3% Transfer to Water Utility Fund - - 5,378,000 5,378,000 0.0% Total 1,954,250$ 90,625$ 11,119,059$ 10,164,809$ 1065.2% Increase/(Decrease)100,000$ 550,939$ 50$ Beginning Fund Balance Committed 550,939$ Ending Fund Balance Committed 550,989$ Town of Oro Valley 2022-2023 Town Manager's Recommended Budget 5 Fiscal Year 2022-2023 Seizures & Forfeitures Fund Fund Summary FY 2022 FY 2022 FY 2023 Variance with Variance with Budget Projected Budget Budget ($) Budget (%) Revenues and Other Sources Seizures and Forfeitures 325,000 21,801 100,000 (225,000) -69.2% Interest Income 2,000 1,000 2,000 - 0.0% Total 327,000$ 22,801$ 102,000$ (225,000)$ -68.8% Expenditures and Other Uses Operations & Maintenance 98,000 123,460 100,000 2,000 2.0% Total 98,000$ 123,460$ 100,000$ 1,805$ 1.8% Increase/(Decrease)229,000$ (100,659)$ 2,000$ Beginning Fund Balance Restricted 166,151$ Ending Fund Balance Restricted 168,151$ Town of Oro Valley 2022-2023 Town Manager's Recommended Budget 6 Fiscal Year 2022-2023 Community Center Fund Fund Summary FY 2022 FY 2022 FY 2023 Variance with Variance with Budget Projected Budget Budget ($) Budget (%) Revenues and Other Sources Local Sales Tax 2,932,798 3,430,364 3,477,236 544,438 18.6% Charges for Services 4,339,367 5,396,499 4,868,049 528,682 12.2% Miscellaneous 126,100 177,981 162,050 35,950 28.5% Total 7,398,265$ 9,004,844$ 8,507,335$ 1,109,070$ 15.0% Expenditures and Other Uses Personnel 875,291 891,376 916,806 41,515 4.7% Operations & Maintenance 4,761,868 4,508,552 5,231,236 469,368 9.9% Equipment Leases 150,950 173,082 202,682 51,732 34.3% Capital Outlay 132,500 132,500 2,324,700 2,192,200 1654.5% Transfer to Debt Service Fund 1,868,519 315,658 2,028,066 159,547 8.5% Total 7,789,128$ 6,021,168$ 10,703,490$ 2,914,362$ 37.4% Increase/(Decrease)(390,863)$ 2,983,676$ (2,196,155)$ Beginning Fund Balance Committed 5,660,469$ Ending Fund Balance Restricted 3,464,314$ Town of Oro Valley 2022-2023 Town Manager's Recommended Budget 7 Fiscal Year 2022-2023 Municipal Debt Service Fund Fund Summary FY 2022 FY 2022 FY 2023 Variance with Variance with Budget Projected Budget Budget ($) Budget (%) Revenues and Other Sources Federal Subsidy 34,787 34,787 30,088 (4,699) -13.5% Interest Income 5,000 100 500 (4,500) -90.0% Miscellaneous 100,000 100,000 100,000 - 0.0% Bond Proceeds 17,000,000 17,975,000 - (17,000,000) -100.0% Transfer from General Fund 2,091,987 946,555 2,048,965 (43,022) -2.1% Transfer from Police Impact Fee Fund 117,750 117,750 121,500 3,750 3.2% Transfer from ORID Debt Fund 6,841 4,209 - (6,841) -100.0% Transfer from Comm Center Fund 1,868,519 315,658 2,028,066 159,547 8.5% Transfer from Water Utility Fund 2,402 2,402 2,440 38 1.6% Total 21,227,286$ 19,496,461$ 4,331,559$ (15,195,727)$ -77.8% Expenditures and Other Uses Operations & Maintenance 17,010,000 17,981,084 10,000 (17,000,000) -99.9% Debt Service 4,215,445 1,517,152 4,331,059 115,614 2.7% Total 21,225,445$ 19,498,236$ 4,341,059$ (15,184,386)$ -77.8% Increase/(Decrease)1,841$ (1,775)$ (9,500)$ Beginning Fund Balance Restricted 163,661$ Ending Fund Balance Restricted 154,161$ Town of Oro Valley 2022-2023 Town Manager's Recommended Budget 8 Fiscal Year 2022-2023 Oracle Road Improvement District Debt Service Fund Fund Summary FY 2022 FY 2022 FY 2023 Variance with Variance with Budget Projected Budget Budget ($) Budget (%) Revenues and Other Sources Interest Repayments - 15 - - 0.0% Total -$ 15$ -$ -$ 0.0% - Expenditures and Other Uses - Transfer to Debt Service Funds 6,841 4,209 - (6,841) -100.0% Total -$ 4,209$ -$ -$ 0.0% Increase/(Decrease)-$ (4,194)$ -$ Beginning Fund Balance Restricted -$ Ending Fund Balance Restricted -$ Town of Oro Valley 2022-2023 Town Manager's Recommended Budget 9 Fiscal Year 2022-2023 Water Resource and System Development Impact Fee Fund Fund Summary FY 2022 FY 2022 FY 2023 Variance with Variance with Budget Projected Budget Budget ($) Budget (%) Revenues and Other Sources Impact Fees 2,059,396 1,207,865 1,101,346 (958,050) -46.5% Interest Income 200,000 115,000 150,000 (50,000) -25.0% Transfer From Water Utility Fund 1,760,000 1,760,000 4,780,000 3,020,000 171.6% Total 4,019,396$ 3,082,865$ 6,031,346$ 2,011,950$ 50.1% Expenditures and Other Uses Operations & Maintenance 150,000 150,000 214,000 64,000 42.7% Debt Service 359,369 359,369 337,317 (22,052) -6.1% Capital Outlay 6,150,000 2,264,312 13,035,688 6,885,688 112.0% Total 6,659,369$ 2,773,681$ 13,587,005$ 6,927,636$ 104.0% Increase/(Decrease)(2,639,973)$ 309,184$ (7,555,659)$ Beginning Fund Balance 19,053,822$ Ending Fund Balance 11,498,163$ Town of Oro Valley 2022-2023 Town Manager's Recommended Budget 10 Fiscal Year 2022-2023 Townwide Roadway Development Impact Fee Fund Fund Summary FY 2022 FY 2022 FY 2023 Variance with Variance with Budget Projected Budget Budget ($) Budget (%) Revenues and Other Sources Interest Income 30,000 3,000 4,000 (26,000) -86.7% Impact Fees 327,190 378,494 388,300 61,110 18.7% Total 357,190$ 381,494$ 392,300$ 35,110$ 9.8% Expenditures and Other Uses Operations & Maintenance - - 15,000 15,000 0.0% Capital Outlay 200,000 46,905 903,095 703,095 351.5% Total 200,000$ 46,905$ 918,095$ 718,095$ 359.0% Increase/(Decrease)157,190$ 334,589$ (525,795)$ Beginning Fund Balance Restricted 2,313,467$ Ending Fund Balance Restricted 1,787,672$ Town of Oro Valley 2022-2023 Town Manager's Recommended Budget 11 Fiscal Year 2022-2023 PAG/RTA Fund Fund Summary FY 2022 FY 2022 FY 2023 Variance with Variance with Budget Projected Budget Budget ($) Budget (%) Revenues and Other Sources State Grants 675,000 - 1,071,574 396,574 58.8% Charges for Services 28,125 28,125 28,125 - 0.0% Miscellaneous - 1,000 - - 0.0% Total 703,125$ 29,125$ 1,099,699$ 396,574 56.4% Expenditures and Other Uses Operations & Maintenance 100,000 - 200,000 100,000 100.0% Capital Outlay 1,375,000 354,425 983,574 (391,426) -28.5% Total 1,475,000$ 354,425$ 1,183,574$ (291,426) -19.8% Increase/(Decrease)(771,875) (325,300) (83,875) Beginning Fund Balance Restricted 923,318$ Ending Fund Balance Restricted 839,443$ Town of Oro Valley 2022-2023 Town Manager's Recommended Budget 12 Fiscal Year 2022-2023 Parks and Recreation Impact Fee Fund Fund Summary FY 2022 FY 2022 FY 2023 Variance with Variance with Budget Projected Budget Budget ($) Budget (%) Revenues and Other Sources Impact Fees 280,442 139,528 165,520 (114,922) -41.0% Interest Income 5,000 1,500 3,000 (2,000) -40.0% Total 285,442$ 141,028$ 168,520$ (116,922)$ -41.0% Expenditures and Other Uses Operations & Maintenance - - 7,000 7,000 0.0% Total -$ -$ 7,000$ 7,000$ 0.0% Increase/(Decrease)285,442$ 141,028$ 161,520$ Beginning Fund Balance Restricted 457,673$ Ending Fund Balance Restricted 619,193$ Town of Oro Valley 2022-2023 Town Manager's Recommended Budget 13 Fiscal Year 2022-2023 Police Impact Fee Fund Fund Summary FY 2022 FY 2022 FY 2023 Variance with Variance with Budget Projected Budget Budget ($) Budget (%) Revenues and Other Sources Impact Fees 82,925 55,530 57,700 (25,225) -30.4% Interest Income 500 500 500 - 0.0% Total 83,425$ 56,030$ 58,200$ (25,225) -30.2% Expenditures and Other Uses Operations & Maintenance - - 2,000 2,000 0.0% Transfer to Debt Service Fund 117,750 117,750 121,500 3,750 3.2% Total 117,750$ 117,750$ 123,500$ 5,750 4.9% Increase/(Decrease)(34,325)$ (61,720)$ (65,300)$ Beginning Fund Balance Restricted 107,044$ Ending Fund Balance Restricted 41,744$ Town of Oro Valley 2022-2023 Town Manager's Recommended Budget 14 Fiscal Year 2022-2023 Capital Fund Fund Summary FY 2022 FY 2022 FY 2023 Variance with Variance with Budget Projected Budget Budget ($) Budget (%) Revenues and Other Sources Transfer from General Fund 5,216,277 5,216,277 13,000,000 7,783,723 149.2% State Grants - - 420,000 420,000 0.0% Bond Proceeds 25,000,000 25,367,224 - (25,000,000) -100.0% Miscellaneous 50,000 255,227 225,000 175,000 350.0% Vehicle Reserves 741,010 741,010 820,010 79,000 10.7% Total 31,007,287$ 31,579,738$ 14,465,010$ 8,457,723 140.8% Expenditures and Other Uses Personnel 215,146 111,824 330,861 115,715 53.8% Capital Outlay 32,864,456 5,379,649 31,728,833 (1,135,623) -3.5% Total 33,079,602$ 5,491,473$ 32,059,694$ 25,673,204 402.0% Increase/(Decrease)(2,072,315)$ 26,088,265$ (17,594,684)$ Beginning Fund Balance Assigned 28,592,293 Ending Fund Balance Assigned 10,997,609$ Town of Oro Valley 2022-2023 Town Manager's Recommended Budget 15 Fiscal Year 2022-2023 Recreation In Lieu Fee Fund Fund Summary FY 2022 FY 2022 FY 2023 Variance with Variance with Budget Projected Budget Budget ($) Budget (%) Revenues and Other Sources Miscellaneous - 150 - - 0.0% Total -$ 150$ -$ - 0.0% Expenditures and Other Uses Capital Outlay - - - - 0.0% Total -$ -$ -$ - 0.0% Increase/(Decrease)-$ 150$ -$ Beginning Fund Balance Restricted 16,560 Ending Fund Balance Restricted 16,560$ Town of Oro Valley 2022-2023 Town Manager's Recommended Budget 16 Fiscal Year 2022-2023 Benefit Self Insurance Fund Fund Summary FY 2022 FY 2022 FY 2023 Variance with Variance with Budget Projected Budget Budget ($) Budget (%) Revenues and Other Sources Self Ins Premiums - Employer 2,995,907 2,800,000 2,820,956 (174,951) -5.8% Self Ins Premiums - Employee 633,018 635,000 636,173 3,155 0.5% COBRA Premiums 50,000 23,000 25,000 (25,000) -50.0% Retiree Premiums 50,000 46,000 46,000 (4,000) -8.0% UHC Wellness Program 20,000 20,000 20,000 - 0.0% Interest Income - 5,000 5,000 5,000 0.0% Miscellaneous 245,392 289,492 211,348 (34,044) -13.9% Total 3,994,317$ 3,818,492$ 3,764,477$ (229,840)$ -5.8% Expenditures and Other Uses Outside Professional Services 846,129 846,129 784,128 (62,001) -7.3% Wellness Program 40,000 38,283 40,000 - 0.0% Claim Settlement 3,108,188 2,908,584 2,940,349 (167,839) -5.4% Total 3,994,317$ 3,792,996$ 3,764,477$ (229,840)$ -5.8% Increase/(Decrease)-$ 25,496$ -$ Beginning Fund Balance 2,404,515$ Ending Fund Balance 2,404,515$ Town of Oro Valley 2022-2023 Town Manager's Recommended Budget 17 Fiscal Year 2022-2023 Water Utility Fund Fund Summary FY 2022 FY 2022 FY 2023 Variance with Variance with Budget Projected Budget Budget ($) Budget (%) Revenues and Other Sources Charges for Services 3,255,000 3,112,299 3,224,000 (31,000) -1.0% Interest Income 100,000 40,000 100,000 - 0.0% Miscellaneous - 663,389 - - 0.0% Water Sales 13,974,000 13,913,500 15,383,000 1,409,000 10.1% Transfer from Grants Fund - - 5,378,000 5,378,000 0.0% Total 17,329,000$ 17,729,188$ 24,085,000$ 6,756,000 39.0% Expenses and Other Uses Personnel 3,662,217 3,662,217 3,623,587 (38,630) -1.1% Operations & Maintenance 12,181,862 12,181,862 13,383,261 1,201,399 9.9% Capital Outlay 1,751,650 1,643,500 2,074,290 322,640 18.4% Debt Service 4,932,909 4,932,909 4,643,255 (289,654) -5.9% Transfer to Debt Service Fund 2,402 2,402 2,440 38 1.6% Transfer to Impact Fee Fund 1,760,000 1,760,000 4,780,000 3,020,000 171.6% Total 24,291,040$ 24,182,890$ 28,506,833$ 4,205,793 17.3% Cash Total * 20,757,040$ 20,648,890$ 24,772,833$ 4,005,793 19.3% Increase/(Decrease)(3,428,040)$ (2,919,702)$ (687,833)$ Beginning Fund Balance 10,320,708 Ending Fund Balance 9,632,875$ * Total expenses less non-cash outlays for depreciation & amortization Town of Oro Valley 2022-2023 Town Manager's Recommended Budget 18 Fiscal Year 2022-2023 Stormwater Utility Fund Fund Summary FY 2022 FY 2022 FY 2023 Variance with Variance with Budget Projected Budget Budget ($) Budget (%) Revenues and Other Sources Charges for Services 1,440,100 1,476,130 1,492,500 52,400 3.6% State Grants 300,000 16,906 - (300,000) -100.0% Interest Income 1,500 2,000 1,500 - 0.0% Total 1,741,600$ 1,495,036$ 1,494,000$ (247,600) -14.2% Expenses and Other Uses Personnel 862,098 859,402 820,287 (41,811) -4.8% Operations & Maintenance 617,935 617,935 562,845 (55,090) -8.9% Capital Outlay 857,374 18,000 884,513 27,139 3.2% Total 2,337,407$ 1,495,337$ 2,267,645$ (69,762) -3.0% Cash Total *2,160,407$ 1,318,337$ 2,090,645$ (69,762) -3.2% Increase/(Decrease)(418,807)$ 176,699$ (596,645)$ Beginning Fund Balance 1,178,438 Ending Fund Balance 581,793$ * Total expenses less non-cash outlays for depreciation & amortization Town of Oro Valley 2022-2023 Town Manager's Recommended Budget 19 Revenue for FY 22/23 is estimated to total $99,477,065. In comparison to the FY 21/22 budget, revenue is projected to decrease by approximately $30.6 million, or 23.5%. This decrease is attributable to one-time bond proceeds of $42 million in the prior year. These bond proceeds paid down the public safety pension liability and will continue to fund parks & recreation projects in the upcoming fiscal year. Adjusting for the overall change of bond proceeds, the Town has budgeted significant increases in local tax revenue, charges for services, state shared revenue, and grant related revenues. FY 21/22 revenue were budgeted conservatively, projecting cautiously optimistic growth as global, national, and regional economies were dealing with the effects caused by the COVID-19 pandemic. Over the course of the year, retail, construction, and charges for services exceeded expectations and showed significant revenue growth beyond pre- pandemic levels with retail tax collections in particular expected to exceed budget by 13.5%. However, the nation is also experiencing substantial price inflation, reaching 7.9% in February 2022, a 40-year high. The Town is mindful of inflation as price increases may affect spending behavior reducing overall sales tax collections for the Town as well as increasing the cost of services and capital projects. Revenue sources for FY 22/23 are expected to show gains over the FY 21/22 budget, but remain relatively flat with FY 21/22 actual revenue. Local sales tax collections are forecasted to rise $4.7 million or 19.3% compared to FY 21/22 budget figures. Continued growth in retail sales, combined with recoveries in restaurant and hotel related taxes make up the bulk of these increases. Revenues associated with residential development are projected to decrease in the upcoming fiscal year. The Town is projecting 170 single family residential (SFR) permits for FY 22/23, compared to the 275 SFR permits budgeted for FY 21/22. Commercial development revenues are expected to increase based on projected building activity. Overall, Town-wide state shared revenues are anticipated to increase approximately $1,506,350 or 8.7% from the previous fiscal year. Depending on the particular revenue source, estimates are based on susceptibility to economic factors, current performance, economic drivers and indicators, and information received from State reports and other sources. The Town receives a variety of other funding sources to finance operations. Refer to the Revenue Schedule by Fund for detailed changes in revenue from budget year to budget year. 29% 19% 16% 13% 12% 7% 2% 2% Sales Taxes State Shared Revenue Water Sales Charges for Services Outside Funding Sources Miscellaneous Fines, Licenses & Permits Impact Fees $0 $5 $10 $15 $20 $25 $30 MillionsFY 22/23 Budgeted Revenue Sources Revenue Summary Town of Oro Valley 2022-2023 Town Manager's Recommended Budget 20 Revenue Schedule by Fund FY 2020 FY 2021 FY 2023 % Major Revenue Accounts Actual Actual Budget Projected Budget to Budget General Fund Local Sales Tax: Local Sales Tax 19,862,393 20,968,411 20,542,707 25,320,335 24,505,959 19.3% Cable Franchise Fees 662,048 722,700 615,000 750,000 765,000 24.4% Total Local Sales Tax 20,524,441 21,691,111 21,157,707 26,070,335 25,270,959 19.4% License & Permit Fees: Business Licenses & Permits 193,932 201,157 202,500 205,000 202,500 0.0% Residential Building Permits 1,413,734 2,110,300 1,222,500 1,200,000 1,023,494 -16.3% Commercial Building Permits 544,597 715,612 242,500 636,500 816,330 236.6% Sign Permits 20,166 20,995 20,000 23,000 20,000 0.0% Special Inspection Fees 7,670 5,460 8,000 10,000 8,000 0.0% Grading Permit Fees 94,537 183,924 84,500 50,000 84,500 0.0% Road Permits 30,802 50 - - - 0.0% Floodplain Use Permits 4,190 3,700 4,000 3,000 4,000 0.0% Fire Permits & Fees 91,219 84,628 65,000 70,000 65,000 0.0% Total License & Permit Fees 2,400,847 3,325,826 1,849,000 2,197,500 2,223,824 20.3% Federal Grants: DEA Overtime Reimbursement 27,230 32,875 60,000 60,000 40,000 -33.3% Miscellaneous Federal Grants 164,457 9,619,409 5,493,395 5,571,553 - -100.0% HIDTA-DEA 104,356 116,830 82,825 82,825 80,000 -3.4% GOHS 81,279 186,936 35,000 35,000 45,000 28.6% Homeland Security 115,803 139,768 319,070 319,070 215,000 -32.6% Joint Terrorism Task Force 14,897 - - - - 0.0% Total Federal Grants 508,022 10,095,818 5,990,290 6,068,448 380,000 -93.7% State Grants: Misc State Grants 52,717 214,154 75,000 75,000 75,000 0.0% Total State Grants 52,717 214,154 75,000 75,000 75,000 0.0% State/County Shared: State Income 5,870,231 6,580,331 6,007,636 6,174,404 6,431,230 7.1% State Sales 4,694,491 5,462,343 5,406,272 5,638,540 5,780,575 6.9% Vehicle License Tax 2,073,426 2,392,664 2,316,015 2,200,000 2,315,524 0.0% Smart & Safe - 47,246 - 225,000 324,675 0.0% Opioid Settlement - - - 33,677 100,000 0.0% Total State/County Shared 12,638,148 14,482,584 13,729,923 14,271,621 14,952,004 8.9% Other Intergovernmental: School Resource Officers 81,139 65,000 65,000 65,000 65,000 0.0% RTA Reimbursements 1,223,125 1,150,233 1,166,500 1,241,500 1,530,000 31.2% PCLD Reimbursements 25,684 8,260 18,000 8,200 18,000 0.0% Animal Control Revenues 103,191 104,830 95,000 50,000 95,000 0.0% Total Other Intergovernmental 1,433,139 1,328,323 1,344,500 1,364,700 1,708,000 27.0% Charges for Services: Court Costs 117,381 140,218 135,000 135,000 135,000 0.0% Public Defender Fees 3,035 2,416 2,400 350 2,400 0.0% Zoning & Subdivision Fees 138,306 121,973 135,000 55,000 65,000 -51.9% User Fees - Swimming Pool 346,172 405,834 395,000 529,000 496,000 25.6% User Fees - Fields & Courts 105,370 109,137 66,125 135,000 122,032 84.5% User Fees - Miscellaneous 99,823 71,443 92,400 170,000 159,000 72.1% Copy Services 2,172 523 2,000 300 350 -82.5% General Government Other 3,914 3,719 2,500 7,000 7,000 180.0% Police Report Copying 7,059 5,652 6,500 6,000 6,500 0.0% Police Other 4,190 15,071 8,000 4,000 5,000 -37.5% Engineer Plan Review Fees 54,047 24,800 51,000 25,000 51,000 0.0% Fare Box 110,310 463 72,410 - 80,000 10.5% FY 2022 Town of Oro Valley 2022-2023 Town Manager's Recommended Budget 21 Revenue Schedule by Fund FY 2020 FY 2021 FY 2023 % Major Revenue Accounts Actual Actual Budget Projected Budget to Budget FY 2022 Administrative Services 729,048 729,048 1,284,677 1,284,677 1,718,960 33.8% Financial Services 197,076 197,952 - - - 0.0% Real Property Rental Income 97,617 102,691 87,414 102,426 101,223 15.8% Maps40 80 250 30 250 0.0% Impound Processing 12,000 22,950 15,000 19,000 19,000 26.7% Pawn Slips 300 750 600 300 300 -50.0% Police Fingerprinting 10,900 1,650 4,000 8,000 9,000 125.0% Concession Sales 11,195 82 5,000 350 - -100.0% Public Record Request Fees 1,917 1,412 2,500 1,300 1,500 -40.0% Parks Cancellation Fees 36 - - - - 0.0% Court Security Fee 18,333 20,000 20,000 20,000 57,000 185.0% Facility Maintenance Services - 14,024 - 12,000 10,000 0.0% Total Charges for Services 2,070,241 1,991,888 2,387,776 2,514,733 3,046,515 27.6% Fines: Fines 111,611 153,547 125,000 125,000 125,000 0.0% Total Fines 111,611 153,547 125,000 125,000 125,000 0.0% Interest Income: Interest - Investments 807,580 123,041 150,000 150,000 150,000 0.0% Total Interest Income 807,580 123,041 150,000 150,000 150,000 0.0% Miscellaneous: Donations - 11,648 - 6,825 - 0.0% Miscellaneous 18,315 28,161 5,000 11,000 15,000 200.0% Special Events 1,200 370 4,000 1,000 4,000 0.0% Insurance Recoveries 34,146 4,849 - - - 0.0% In-Lieu Income 231,624 220,921 245,000 220,000 220,000 -10.2% Sale of Assets 26,621 16,241 10,000 10,000 10,000 0.0% Total Miscellaneous 311,906 282,190 264,000 248,825 249,000 -5.7% TOTAL GENERAL FUND 40,858,653 53,688,482 47,073,196 53,086,162 48,180,302 2.4% Highway Fund License & Permit Fees: Road Permits 50 37,108 25,000 30,000 25,000 0.0% Total License & Permit Fees 50 37,108 25,000 30,000 25,000 0.0% State Grants: RTA Reimbursements 259,121 16,588 - - - 0.0% Total State Grants 259,121 16,588 - - - 0.0% State/County Shared: Highway User 3,694,044 3,714,572 3,614,922 3,870,000 3,899,191 7.9% Total State/County Shared 3,694,044 3,714,572 3,614,922 3,870,000 3,899,191 7.9% Interest Income: Interest - Investments 23,560 1,022 6,000 8,000 8,000 33.3% Total Interest Income 23,560 1,022 6,000 8,000 8,000 33.3% Miscellaneous: Miscellaneous 12,028 2,658 2,000 1,000 2,000 0.0% Insurance Recoveries 74,940 4,696 - 4,069 1,000 0.0% Sale of Assets - 188 - - - 0.0% Total Miscellaneous 86,968 7,542 2,000 5,069 3,000 50.0% TOTAL HIGHWAY FUND 4,063,743 3,776,832 3,647,922 3,913,069 3,935,191 7.9% Town of Oro Valley 2022-2023 Town Manager's Recommended Budget 22 Revenue Schedule by Fund FY 2020 FY 2021 FY 2023 % Major Revenue Accounts Actual Actual Budget Projected Budget to Budget FY 2022 Grants & Contributions Fund Federal Grants GOHS - - 27,500 27,500 130,000 372.7% Miscellaneous Federal Grants - - 284,750 98,000 8,277,000 2806.8% Homeland Security - 245,519 135,000 0.0% Total Federal Grants - - 312,250 371,019 8,542,000 2635.6% State Grants: Miscellaneous State Grants - - 142,000 158,000 179,047 26.1% Total State Grants - - 142,000 158,000 179,047 26.1% Interest Income: Interest - Investments - - - 45 50 0.0% Total Interest Income - - - 45 50 0.0% Miscellaneous: Miscellaneous - - 1,500,000 - 1,500,000 0.0% Total Miscellaneous - - 1,500,000 - 1,500,000 0.0% TOTAL GRANTS & CONTRIBUTIONS FUND - - 1,954,250 529,064 10,221,097 423.0% Seizures & Forfeitures Funds Interest Income: Interest - Investments 7,773 2,610 2,000 1,000 2,000 0.0% Total Interest Income 7,773 2,610 2,000 1,000 2,000 0.0% Miscellaneous: Forfeitures 71,771 97,784 325,000 21,801 100,000 -69.2% Total Miscellaneous 71,771 97,784 325,000 21,801 100,000 -69.2% TOTAL SEIZURES & FORFEITURES FUNDS 79,544 100,394 327,000 22,801 102,000 -68.8% Community Center Fund Local Sales Tax: Local Sales Tax 2,584,916 2,947,420 2,932,798 3,430,364 3,477,236 18.6% Total Local Sales Tax 2,584,916 2,947,420 2,932,798 3,430,364 3,477,236 18.6% Charges for Services: User Fees - Daily Drop-In 27,691 27,691 30,000 49,000 30,000 0.0% User Fees - Member Dues 511,339 343,629 526,480 620,500 620,500 17.9% User Fees - Recreation Programs 77,456 86,696 82,500 240,000 170,000 106.1% User Fees - Swimming Pools 3,713 - 8,000 - - -100.0% Rental Income 73,659 70,717 70,002 94,502 67,300 -3.9% Concession Sales 156 129 100 100 100 0.0% Management Contract Revenues 3,246,050 3,970,865 3,622,385 4,392,397 3,980,149 9.9% Total Charges for Services 3,940,064 4,499,727 4,339,467 5,396,499 4,868,049 12.2% Interest Income: Interest - Investments 30,159 4,454 1,000 15,594 3,000 200.0% Total Interest Income 30,159 4,454 1,000 15,594 3,000 200.0% Miscellaneous: Donations - 5,200 - - - 0.0% Miscellaneous - 125,000 125,000 160,532 159,050 27.2% Sale of Assets - 2,060 - - - 0.0% Insurance Recoveries - - - 1,855 - 0.0% Total Miscellaneous - 132,260 125,000 162,387 159,050 27.2% TOTAL COMMUNITY CENTER FUND 6,555,139 7,583,861 7,398,265 9,004,844 8,507,335 15.0% Town of Oro Valley 2022-2023 Town Manager's Recommended Budget 23 Revenue Schedule by Fund FY 2020 FY 2021 FY 2023 % Major Revenue Accounts Actual Actual Budget Projected Budget to Budget FY 2022 Municipal Debt Service Fund Interest Income: Interest 20,651 89 5,000 100 500 -90.0% Total Interest Income 20,651 89 5,000 100 500 -90.0% Federal Grants: Miscellaneous Grants 38,043 43,773 34,787 34,787 30,088 -13.5% Total Federal Grants 38,043 43,773 34,787 34,787 30,088 -13.5% Miscellaneous: Bond Proceeds - - 17,000,000 17,975,000 - -100.0% Miscellaneous 80,505 97,536 100,000 100,000 100,000 0.0% Total Miscellaneous 80,505 97,536 17,100,000 18,075,000 100,000 -99.4% TOTAL MUNICIPAL DEBT SERVICE FUND 139,199 141,398 17,139,787 18,109,887 130,588 -99.2% Oracle Road Debt Service Fund Interest Income: Special Assessments 11,851 4,340 - 15 - 0.0% Penalties 530 387 - - - 0.0% Total Interest Income 12,381 4,727 - 15 - 0.0% Principal Repayments: Principal Repayments 163,499 168,464 - - - 0.0% Total Principal Repayments 163,499 168,464 - - - 0.0% TOTAL ORACLE RD DEBT SERVICE FUND 175,880 173,191 - 15 - 0.0% Townwide Roadway Development Impact Fee Fund Impact Fees: Residential Impact Fees 540,980 505,460 305,440 324,370 338,300 10.8% Commercial Impact Fees 103,206 161,651 21,750 54,215 50,000 129.9% Total Impact Fees 644,186 667,111 327,190 378,585 388,300 18.7% Interest Income: Interest - Investments 97,540 (7,068) 30,000 3,000 4,000 -86.7% Total Interest Income 97,540 (7,068) 30,000 3,000 4,000 -86.7% TOTAL ROADWAY IMPACT FEE FUND 741,726 660,043 357,190 381,585 392,300 9.8% Town of Oro Valley 2022-2023 Town Manager's Recommended Budget 24 Revenue Schedule by Fund FY 2020 FY 2021 FY 2023 % Major Revenue Accounts Actual Actual Budget Projected Budget to Budget FY 2022 PAG/RTA Fund State Grants: PAG Reimbursements 8,000 - 575,000 - 971,574 69.0% RTA Reimbursements 12,113,864 1,947,977 100,000 - 100,000 0.0% Total State Grants 12,121,864 1,947,977 675,000 - 1,071,574 58.8% Interest Income: Interest - Investments - 12,556 - 1,000 - 0.0% Total Interest Income - 12,556 - 1,000 - 0.0% Miscellaneous: Miscellaneous 885,799 216,069 - - - 0.0% Total Miscellaneous 885,799 216,069 - - - 0.0% Charges for Services: Real Property Rental Income 28,125 28,125 28,125 28,125 28,125 0.0% Total Charges for Services 28,125 28,125 28,125 28,125 28,125 0.0% TOTAL PAG/RTA FUND 13,035,788 2,204,727 703,125 29,125 1,099,699 56.4% Parks & Recreation Development Impact Fee Fund Impact Fees: Residential Impact Fees 234,260 423,720 280,442 139,528 165,520 -41.0% Total Impact Fees 234,260 423,720 280,442 139,528 165,520 -41.0% Interest Income: Interest - Investments 23,110 (5,940) 5,000 1,500 3,000 -40.0% Total Interest Income 23,110 (5,940) 5,000 1,500 3,000 -40.0% TOTAL PARKS IMPACT FEE FUND 257,370 417,780 285,442 141,028 168,520 -41.0% Police Development Impact Fee Fund Impact Fees: Residential Impact Fees 84,978 153,450 77,825 50,530 52,700 -32.3% Commercial Impact Fees 16,877 12,145 5,100 5,000 5,000 -2.0% Total Impact Fees 101,855 165,595 82,925 55,530 57,700 -30.4% Interest Income: Interest - Investments 2,091 (229) 500 500 500 0.0% Total Interest Income 2,091 (229) 500 500 500 0.0% TOTAL POLICE IMPACT FEE FUND 103,946 165,366 83,425 56,030 58,200 -30.2% Town of Oro Valley 2022-2023 Town Manager's Recommended Budget 25 Revenue Schedule by Fund FY 2020 FY 2021 FY 2023 % Major Revenue Accounts Actual Actual Budget Projected Budget to Budget FY 2022 Capital Fund State Grants: Misc State Grants 88,116 119,868 - - 420,000 0.0% Total State Grants 88,116 119,868 - - 420,000 0.0% Federal Grants: Misc Federal Grants 111,694 - - - - 0.0% Total Federal Grants 111,694 - - - - 0.0% Other Financing Sources: Bond Proceeds - - 25,000,000 25,367,224 - -100.0% Total Other Financing Sources - - 25,000,000 25,367,224 - -100.0% Interest Income: Interest - Investments 85,269 1,444 10,000 15,000 25,000 150.0% Total Interest Income 85,269 1,444 10,000 15,000 25,000 150.0% Miscellaneous: Vehicle Reserves 536,904 633,012 741,010 741,010 820,010 10.7% Insurance Recoveries 58,313 37,417 - 16,000 30,000 0.0% Miscellaneous 427,364 256,090 40,000 241,310 170,000 325.0% Total Miscellaneous 1,022,581 926,519 781,010 998,320 1,020,010 30.6% TOTAL CAPITAL FUND 1,307,660 1,047,831 25,791,010 26,380,544 1,465,010 -94.3% Benefit Self Insurance Fund Interest Income: Interest - Investments 65,514 4,416 - 5,000 5,000 0.0% Total Interest Income 65,514 4,416 - 5,000 5,000 0.0% Miscellaneous: Self Insurance Premiums - Employer 2,772,668 2,831,442 2,995,907 2,800,000 2,820,956 -5.8% Self Insurance Premiums - Employee 667,860 586,627 633,018 635,000 636,173 0.5% COBRA Premiums 20,052 31,611 50,000 23,000 25,000 -50.0% Retiree Premiums 40,375 53,469 50,000 46,000 46,000 -8.0% UHC Wellness Program 20,000 20,000 20,000 20,000 20,000 0.0% Miscellaneous 66,102 193,903 245,392 289,492 211,348 -13.9% Total Miscellaneous 3,587,057 3,717,052 3,994,317 3,813,492 3,759,477 -5.9% TOTAL BENEFIT SELF INSURANCE FUND 3,652,571 3,721,468 3,994,317 3,818,492 3,764,477 -5.8% Town of Oro Valley 2022-2023 Town Manager's Recommended Budget 26 Revenue Schedule by Fund FY 2020 FY 2021 FY 2023 % Major Revenue Accounts Actual Actual Budget Projected Budget to Budget FY 2022 Water Utility Fund Water Sales: Residential Water Sales 9,798,411 10,394,919 10,193,000 10,000,000 11,300,000 10.9% Commercial Water Sales 925,233 902,536 949,000 930,000 1,000,000 5.4% Irrigation Water Sales 1,258,430 1,579,055 1,264,000 1,365,000 1,465,000 15.9% Turf Related Water Sales 1,428,692 1,565,038 1,384,000 1,280,000 1,384,000 0.0% Construction Water Sales 353,936 237,525 184,000 338,500 234,000 27.2% Total Water Sales 13,764,702 14,679,073 13,974,000 13,913,500 15,383,000 10.1% Charges for Services: Engineer Plan Review Fees 5,594 1,186 5,000 593 5,000 0.0% Construction Inspection Fees 46,890 6,056 20,000 44,798 20,000 0.0% Misc Service Revenue 28,239 26,358 25,000 25,000 25,000 0.0% Backflow-Install Permit Fee 6,132 2,847 4,000 1,885 3,000 -25.0% Sewer Fees 373,608 381,534 380,000 360,000 390,000 2.6% Late Fees 64,428 43,765 90,000 90,000 90,000 0.0% NSF Fees 2,426 2,146 2,000 2,000 2,000 0.0% Rain Sensors 8 23 - 23 - 0.0% Meter Income 92,390 164,917 99,000 48,000 55,000 -44.4% New Service Establish Fees 92,134 112,055 100,000 100,000 100,000 0.0% Reconnect Fees 25,225 12,328 32,000 18,000 16,000 -50.0% Groundwater Preservation Fee 2,389,953 2,617,452 2,380,000 2,302,000 2,400,000 0.8% Other 117,037 119,254 118,000 120,000 118,000 0.0% Total Charges for Services 3,244,064 3,489,921 3,255,000 3,112,299 3,224,000 -1.0% Interest Income: Interest - Investments 378,089 (14,911) 100,000 40,000 100,000 0.0% Total Interest Income 378,089 (14,911) 100,000 40,000 100,000 0.0% Miscellaneous: Miscellaneous 5,018 19,029 - 660,269 - 0.0% Insurance Recoveries 11,805 20,744 - 3,120 - 0.0% Sale of Assets 50 4,555 - - - 0.0% Total Miscellaneous 16,873 44,328 - 663,389 - 0.0% Other Financing Sources: Bond Proceeds - - - - - 0.0% NWRRDS Funding 754,995 - - - - 0.0% Total Other Financing Sources 754,995 - - - - 0.0% TOTAL WATER UTILITY FUND 18,158,723 18,198,411 17,329,000 17,729,188 18,707,000 8.0% Alternative Water Resources Development Impact Fee Fund Impact Fees: Residential Impact Fees 1,202,278 - - - - 0.0% Commercial Impact Fees 425,157 - - - - 0.0% Total Impact Fees 1,627,435 - - - - 0.0% Interest Income: Interest - Investments 337,732 - - - - 0.0% Total Interest Income 337,732 - - - - 0.0% TOTAL AWRDIF FUND 1,965,167 - - - - 0.0% Town of Oro Valley 2022-2023 Town Manager's Recommended Budget 27 Revenue Schedule by Fund FY 2020 FY 2021 FY 2023 % Major Revenue Accounts Actual Actual Budget Projected Budget to Budget FY 2022 Potable Water System Development Impact Fee Fund Impact Fees: Single Family Connections 553,493 - - - - 0.0% Multi-Family Connections 39,971 - - - - 0.0% Commercial Connections 104,706 - - - - 0.0% Irrigation Connections 112,519 - - - - 0.0% Total Impact Fees 810,689 - - - - 0.0% Interest Income: Interest - Investments 171,951 - - - - 0.0% Total Interest Income 171,951 - - - - 0.0% TOTAL PWSDIF FUND 982,640 - - - - 0.0% Water Resources Development Impact Fee Fund Impact Fees: Residential Impact Fees - 3,746,803 1,916,100 1,150,000 958,050 -50.0% Non-Residential Impact Fees - 353,753 143,296 57,865 143,296 0.0% Total Impact Fees - 4,100,556 2,059,396 1,207,865 1,101,346 -46.5% Interest Income: Interest - Investments - 13,700 200,000 115,000 150,000 -25.0% Total Interest Income - 13,700 200,000 115,000 150,000 -25.0% TOTAL WRSDIF FUND - 4,114,256 2,259,396 1,322,865 1,251,346 -44.6% Stormwater Utility Fund State Grants: Miscellaneous State Grants - 152,152 300,000 16,906 - -100.0% Total State Grants - 152,152 300,000 16,906 - -100.0% Charges for Services: Late Fees 910 635 - 1,130 - 0.0% Stormwater Utility Fee 1,442,666 1,473,177 1,440,100 1,475,000 1,492,500 3.6% Total Charges for Services 1,443,576 1,473,812 1,440,100 1,476,130 1,492,500 3.6% Interest Income: Interest - Investments 23,148 1,270 1,500 2,000 1,500 0.0% Total Interest Income 23,148 1,270 1,500 2,000 1,500 0.0% Miscellaneous: Miscellaneous 40 8,734 - - - 0.0% Total Miscellaneous 40 8,734 - - - 0.0% TOTAL STORMWATER UTILITY FUND 1,466,764 1,635,968 1,741,600 1,495,036 1,494,000 -14.2% Recreation In Lieu Fee Fund Charges for Services: Recreation In Lieu Fees - 712 - - - 0.0% Total Charges for Services - 712 - - - 0.0% Miscellaneous: Miscellaneous 382 232 - 150 - 0.0% Total Miscellaneous 382 232 - 150 - 0.0% TOTAL REC IN LIEU FEE FUND 382 944 - 150 - 0.0% TOTAL REVENUE - ALL FUNDS 93,544,895$ 97,630,952 130,084,925$ 136,019,885$ 99,477,065$ -23.5% Note: Does not include Interfund Transfers or Carry-Forward Balances Town of Oro Valley 2022-2023 Town Manager's Recommended Budget 28 Personnel Schedule FY 2020 FY 2021 FY2023 +/- Actual Actual Budget Projected Budget to Budget Administrative Services Admin. Svcs. Director/Chief Financial Officer 1.00 - - - - - Chief Procurement Officer 1.00 - - - - - Finance Manager 1.00 - - - - - Senior Budget Analyst 1.00 - - - - - Senior Accountant 1.00 - - - - - Accounting Specialist 1.00 - - - - - Human Resource Director 1.00 - - - - - Human Resource Analyst 2.00 - - - - - Chief Information Officer 1.00 - - - - - Network Administrator 2.00 - - - - - Systems Analyst 2.00 - - - - - Data Base Analyst 1.00 - - - - - Senior GIS Administrator 1.00 - - - - - GIS Analyst 1.00 - - - - - IT Analyst 1.00 - - - - - Procurement Specialist 1.00 - - - - - Senior Office Specialist 1.00 - - - - - Human Resource Assistant 1.00 - - - - - Total Administrative Services 21.00 - - - - - Full-time employees:- Part-time employees:- Clerk Town Clerk 1.00 1.00 1.00 1.00 1.00 - Deputy Town Clerk 1.00 1.00 1.00 1.00 1.00 - Senior Office Specialist 1.00 1.00 1.00 1.00 1.00 - Office Assistant 1.48 1.48 1.48 1.48 0.73 (0.75) Communications Intern 0.25 0.25 0.25 0.25 - (0.25) Total Clerk 4.73 4.73 4.73 4.73 3.73 (1.00) Full-time employees:3 Part-time employees:2 FY 2022 Town of Oro Valley 2022-2023 Town Manager's Recommended Budget 29 Personnel Schedule FY 2020 FY 2021 FY2023 +/- Actual Actual Budget Projected Budget to Budget FY 2022 Community and Economic Development (CED) CED Director 1.00 1.00 1.00 1.00 1.00 - Division Manager, Permitting 1.00 1.00 1.00 1.00 1.00 - Division Manager, Planning 1.00 1.00 1.00 1.00 1.00 - Div Mgr, Inspect. & Comp./Bldg Official 1.00 1.00 1.00 1.00 1.00 - Senior Civil Engineer 1.00 1.00 1.00 1.00 1.00 - Principal Planner 2.00 2.00 2.00 2.00 2.00 - Senior Planner 1.00 1.00 1.00 1.00 1.00 - Planner 1.00 1.00 1.00 1.00 1.00 - Economic Development Specialist 1.00 1.00 1.00 1.00 1.00 - Senior Planning Technician 1.00 1.00 1.00 1.00 1.00 - Engineering Design Reviewer 1.00 1.00 1.00 1.00 1.00 - Plans Examiner II 2.00 2.00 2.00 2.00 2.00 - Building Inspector II 4.00 4.00 4.00 4.00 4.00 - Building Inspector I 1.00 1.00 1.00 1.00 1.00 - Plans Examiner I 1.00 1.00 1.00 1.00 1.00 - Management Analyst - - - 1.00 1.00 1.00 Code Compliance Specialist 1.00 1.00 1.00 1.00 1.00 - Zoning Technician 1.00 1.00 1.00 1.00 1.00 - Building Permit Technician 2.00 2.00 2.00 2.00 2.00 - Senior Office Specialist 1.00 1.00 2.00 1.00 1.00 (1.00) Office Specialist 0.48 0.48 0.48 0.48 0.48 - Senior Office Assistant 1.00 1.00 1.00 1.00 1.00 - Office Assistant 1.00 1.00 - 1.00 1.00 1.00 Intern 0.30 0.30 0.30 0.30 0.30 - Total CED 27.78 27.78 27.78 28.78 28.78 1.00 Full-time employees:28 Part-time employees:2 Council Mayor 1.00 1.00 1.00 1.00 1.00 - Council Member 6.00 6.00 6.00 6.00 6.00 - Total Council 7.00 7.00 7.00 7.00 7.00 - Full-time employees:- Part-time employees:7 Finance Chief Financial Officer - 1.00 1.00 1.00 1.00 - Finance and Budget Administrator - 1.00 1.00 1.00 1.00 - Senior Budget Analyst - 1.00 1.00 1.00 1.00 - Senior Accountant - 1.00 2.00 2.00 2.00 - Chief Procurement Officer - 1.00 1.00 1.00 1.00 - Contract Specialist - - 1.00 1.00 1.00 - Procurement Specialist - 1.00 - - 1.00 1.00 Accounting Specialist - 1.00 1.00 1.00 1.00 - Senior Office Specialist - 0.20 0.20 0.20 0.20 - Total Finance - 7.20 8.20 8.20 9.20 1.00 Full-time employees:9 Part-time employees:- Town of Oro Valley 2022-2023 Town Manager's Recommended Budget 30 Personnel Schedule FY 2020 FY 2021 FY2023 +/- Actual Actual Budget Projected Budget to Budget FY 2022 Human Resources Human Resources Director - 1.00 1.00 1.00 1.00 - Human Resources Analyst - 2.00 3.00 3.00 3.00 - Human Resources Assistant - 1.00 - - - - Total Human Resources - 4.00 4.00 4.00 4.00 - Full-time employees:4 Part-time employees:- Innovation & Technology Chief Information Officer - 1.00 1.00 1.00 1.00 - NetOps Supervisor - 1.00 1.00 1.00 1.00 - Applications Supervisor - 1.00 1.00 1.00 1.00 - Network Administrator - 1.00 1.00 2.00 2.00 1.00 Systems Analyst - 2.00 3.00 2.00 2.00 (1.00) IT Analyst - 1.00 1.00 1.00 1.00 - Database Analyst - 1.00 1.00 1.00 1.00 - Senior GIS Administrator - 1.00 1.00 1.00 1.00 - GIS Analyst - 1.00 1.00 1.00 1.00 - IT Technican - 1.00 1.00 2.00 2.00 1.00 Strategic Initiatives Manager - 1.00 1.00 - - (1.00) Management Analyst - - - 1.00 1.00 1.00 Constituent Services Coordinator - 1.00 1.00 1.00 1.00 - Emergency Mgmt & Safety Coordinator - 1.00 1.00 1.00 1.00 - Senior Office Specialist - 0.80 0.80 0.80 0.80 - Total Innovation & Technology - 14.80 15.80 16.80 16.80 1.00 Full-time employees:17 Part-time employees:- Legal Legal Services Director 1.00 1.00 1.00 1.00 1.00 - Chief Civil Deputy Attorney 1.00 1.00 1.00 1.00 1.00 - Assistant Town Prosecutor 1.00 1.00 1.00 1.00 2.00 1.00 Senior Paralegal 1.00 1.00 1.00 1.00 1.00 - Paralegal I 1.00 1.00 1.00 1.00 1.00 - Legal Secretary 1.00 1.00 1.00 1.00 1.00 - Total Legal 6.00 6.00 6.00 6.00 7.00 1.00 Full-time employees:7 Part-time employees:- Town of Oro Valley 2022-2023 Town Manager's Recommended Budget 31 Personnel Schedule FY 2020 FY 2021 FY2023 +/- Actual Actual Budget Projected Budget to Budget FY 2022 Town Court Magistrate Judge1.00 1.00 1.00 1.00 1.00 - Court Administrator 1.00 1.00 1.00 2.00 2.00 1.00 Deputy Court Administrator - - 1.00 - - (1.00) Courtroom Clerk 1.00 1.00 1.00 1.00 1.00 - Senior Court Clerk 3.00 3.00 3.00 1.00 1.00 (2.00) Court Clerk 1.48 1.48 1.00 3.00 3.00 2.00 Probation Compliance Officer - - - - 0.48 0.48 Court Security Officer - 1.00 - - - - Court Security Coordinator - - 0.50 0.50 0.50 - Bailiff 1.00 - - - - - Total Town Court 8.48 8.48 8.50 8.50 8.98 0.48 Full-time employees:8 Part-time employees:2 Town Manager's Office Town Manager 1.00 1.00 1.00 1.00 1.00 - Assistant Town Manager 1.00 1.00 1.00 1.00 1.00 - Executive Assistant 1.00 1.00 1.00 1.00 1.00 - Senior Office Specialist 1.00 - - - - - Management Analyst - 1.00 1.00 1.00 1.00 - Management Intern 0.38 0.38 0.38 0.38 0.38 - Strategic Initiatives Manager 1.00 - - - - - Communications Administrator 1.00 1.00 1.00 1.00 1.00 - New Media Developer 1.00 - - - - - Digital Content Specialist - 1.00 1.00 1.00 1.00 - Marketing & Communications Specialist 1.00 1.00 1.00 1.00 1.00 - Constituent Services Coordinator 1.00 - - - - - Public Information Officer 1.00 1.00 1.00 1.00 1.00 - Total Town Manager's Office 10.38 8.38 8.38 8.38 8.38 - Full-time employees:8 Part-time employees:1 Town of Oro Valley 2022-2023 Town Manager's Recommended Budget 32 Personnel Schedule FY 2020 FY 2021 FY2023 +/- Actual Actual Budget Projected Budget to Budget FY 2022 Parks and Recreation Parks & Recreation Director 1.00 1.00 1.00 1.00 1.00 - Deputy Parks & Recreation Director 1.00 1.00 1.00 1.00 1.00 - Recreation & Culture Manager 1.00 1.00 1.00 1.00 1.00 - Recreation Facility Manager 1.00 1.00 1.00 1.00 1.00 - Multimodal Planner 1.00 - - - - - Parks Maintenance Superintendent 1.00 1.00 1.00 1.00 1.00 - Parks Maintenance Supervisor 1.00 1.00 1.00 1.00 1.00 - Parks Maintenance Crew Leader 1.00 - - - - - Parks Maintenance Worker III - 1.00 1.00 1.00 1.00 - Parks Maintenance Worker II 1.00 2.00 2.00 2.00 2.00 - Parks Maintenance Worker I 5.00 5.00 5.00 5.00 6.00 1.00 Park Monitor 0.96 0.96 0.96 0.96 1.44 0.48 Senior Office Specialist 2.00 2.00 2.00 2.00 2.00 - Office Specialist 1.00 1.00 1.00 1.00 1.00 - Office Assistant 1.00 - - - - - Assistant Recreation Manager 2.00 3.00 3.00 3.00 3.00 - Recreation Leader 2.91 2.91 2.91 2.91 2.91 - Aquatics Manager 1.00 1.00 1.00 1.00 1.00 - Assistant Aquatics Manager 1.00 1.00 1.00 1.00 1.00 - Lifeguard Supervisor - 2.25 2.25 2.25 3.00 0.75 Aquatics Facility Supervisor 2.25 - - - - - Aquatics Shift Leader 2.54 2.54 2.54 2.54 2.54 - Aquatics Facility Attendant 4.80 4.80 4.80 5.00 5.12 0.32 Custodian 0.48 0.48 0.48 0.48 0.48 - Recreation Supervisor - 0.75 0.75 0.75 0.75 - Facility Attendant 5.00 4.25 4.25 4.25 4.72 0.47 Recreation Aide 6.63 6.63 6.63 6.63 6.63 - Fitness Instructor 2.00 2.00 2.00 2.48 2.96 0.96 Lifeguard/Swim Instructor 13.53 13.53 13.53 13.53 13.53 - Total Parks and Recreation 63.10 63.10 63.10 63.78 67.08 3.98 Full-time employees:23 (not including seasonal employees)Part-time employees:37 Town of Oro Valley 2022-2023 Town Manager's Recommended Budget 33 Personnel Schedule FY 2020 FY 2021 FY2023 +/- Actual Actual Budget Projected Budget to Budget FY 2022 Police Chief of Police 1.00 1.00 1.00 1.00 1.00 - Deputy Chief of Police 1.00 1.00 1.00 1.00 1.00 - Commander 2.00 2.00 2.00 2.00 2.00 - Lieutenant 5.00 5.00 5.00 5.00 5.00 - Sergeant 13.00 13.00 13.00 13.00 13.00 - Public Relations Sergeant 1.00 1.00 1.00 - - (1.00) Public Information Officer - - - 1.00 1.00 1.00 Detective 7.00 7.00 7.00 8.00 9.00 2.00 Patrol Officer 54.00 56.00 56.00 59.00 62.00 6.00 Traffic Investigator - 1.00 1.00 1.00 1.00 - Motorcycle Officer 6.00 4.00 4.00 1.00 1.00 (3.00) School Resource Officer 9.00 8.00 7.00 7.00 7.00 - K-9 Officer 3.00 3.00 3.00 2.00 2.00 (1.00) DUI Officer 2.00 2.00 2.00 1.00 1.00 (1.00) Training Officer 1.00 1.00 1.00 1.00 1.00 - Reserve Officer 2.88 2.88 - - - - Systems Analyst 1.00 - - - - - Police Telecommunications Manager 1.00 1.00 1.00 1.00 1.00 - Telecommunications Supervisor 2.00 2.00 2.00 2.00 2.00 - Public Safety Telecommunicator 10.00 10.00 11.00 10.00 12.00 1.00 Police Workforce Specialist - - 0.48 0.48 0.48 - Records Supervisor 1.00 1.00 1.00 1.00 1.00 - Records Specialist 5.00 5.00 5.00 5.00 5.00 - Crime Scene Technician Supervisor 1.00 1.00 1.00 1.00 1.00 - Crime Scene Technician 2.00 2.00 3.00 3.00 3.00 - Administrative Services Manager 1.00 1.00 1.00 1.00 1.00 - Crime Analyst 1.00 1.00 1.00 1.00 1.00 - Emergency Mgmt & Safety Coordinator 1.00 - - - - - Senior Office Specialist 2.00 3.00 3.00 3.00 3.00 - Office Specialist 1.00 - - - - - Office Assistant 1.25 1.25 1.25 1.25 1.25 - Total Police 138.13 136.13 134.73 132.73 138.73 4.00 Full-time employees:136 Part-time employees:3 Town of Oro Valley 2022-2023 Town Manager's Recommended Budget 34 Personnel Schedule FY 2020 FY 2021 FY2023 +/- Actual Actual Budget Projected Budget to Budget FY 2022 Public Works Public Works Director & Town Engineer 1.00 1.00 1.00 1.00 1.00 - Assistant Public Works Director 1.00 1.00 1.00 1.00 1.00 - Engineering Division Manager 1.00 1.00 1.00 1.00 1.00 - Operations Division Manager 1.00 1.00 1.00 1.00 1.00 - Senior Civil Engineer 1.00 1.00 1.00 1.00 1.00 - Senior Stormwater Civil Engineer 1.00 1.00 1.00 1.00 1.00 - Civil Engineer 1.00 1.00 1.00 1.00 1.00 - CIP Project Manager - - 2.00 2.00 3.00 1.00 Stormwater Utility Division Manager 1.00 1.00 1.00 1.00 1.00 - Stormwater Utility Project Manager 1.00 1.00 1.00 1.00 - (1.00) Streets and Drainage Operations Supervisor - 1.00 1.00 1.00 1.00 - Stormwater Field Superintendent 1.00 - - - - - GIS Stormwater Intern - - 0.48 0.48 0.48 - Senior Transit Crew Leader 1.00 1.00 1.00 1.00 1.00 - Transit Crew Leader 1.00 1.00 1.00 1.00 1.00 - Civil Engineering Designer 1.00 1.00 1.00 1.00 1.00 - Senior Civil Engineering Tech 3.00 3.00 3.00 3.00 3.00 - Streets & Drainage Op. Superintendent - 1.00 1.00 1.00 1.00 - Streets Maintenance Superintendent 1.00 - - - - - Senior Traffic Technician 1.00 1.00 1.00 1.00 1.00 - Construction Inspector 3.00 3.00 - - - - Administrative Coordinator 1.00 1.00 1.00 1.00 1.00 - Stormwater Utility Analyst 1.00 1.00 1.00 1.00 1.00 - Stormwater Inspector Designer 1.00 1.00 1.00 1.00 1.00 - Fleet and Facility Manager - 1.00 1.00 1.00 1.00 - Facilities Maintenance Crew Leader 1.00 - - - - - Fleet Maintenance Supervisor - 1.00 1.00 1.00 1.00 - Fleet Maintenance Mechanic III 1.00 1.00 1.00 2.00 3.00 2.00 Fleet Control Specialist 1.00 1.00 1.00 - - (1.00) Fleet Attendant - - 1.00 1.00 1.00 - Traffic Signs/Markings Crew Leader 1.00 1.00 1.00 1.00 1.00 - Traffic Signs/Markings Worker 1.00 1.00 1.00 1.00 1.00 - Streets & Drainage Crew Leader 2.00 2.00 2.00 2.00 2.00 - Traffic Technician 1.00 1.00 1.00 1.00 1.00 - Facilities Maintenance Technician 3.00 3.00 3.00 3.00 3.00 - Heavy Equipment Operator III 1.00 - - - - - Heavy Equipment Operator II 7.00 8.00 8.00 8.00 8.00 - Heavy Equipment Operator I 1.00 - - - - - Senior Office Specialist 1.00 2.00 2.00 2.00 2.00 - Office Specialist 1.00 1.00 1.00 1.00 1.00 - Transit Specialist 1.11 1.11 1.11 1.11 1.10 (0.01) Transit Dispatcher 2.11 2.11 2.11 2.11 2.58 0.47 Office Assistant 1.96 0.96 0.96 0.96 0.95 (0.01) Transit Driver 19.71 19.71 19.71 19.71 22.60 2.89 Total Public Works 70.89 70.89 71.37 71.37 75.71 4.34 Full-time employees:50 Part-time employees:61 Town of Oro Valley 2022-2023 Town Manager's Recommended Budget 35 Personnel Schedule FY 2020 FY 2021 FY2023 +/- Actual Actual Budget Projected Budget to Budget FY 2022 Water Utility Water Utility Director 1.00 1.00 1.00 1.00 1.00 - Engineering & Planning Manager 1.00 1.00 1.00 1.00 1.00 - Water Utility Administrator 1.00 1.00 1.00 1.00 1.00 - Water Operations Manager 1.00 1.00 1.00 1.00 1.00 - Water Distribution Superintendent 1.00 1.00 1.00 1.00 1.00 - Water Engineer Project Manager 1.00 - - - - - CIP Project Manager - - - 1.00 1.00 1.00 Water Production & Meter Ops. Superint.1.00 1.00 1.00 1.00 1.00 - Senior Engineering Associate - 2.00 2.00 1.00 1.00 (1.00) Meter Operations Supervisor 1.00 1.00 1.00 1.00 1.00 - Engineering Design Reviewer 1.00 - - - - - Water Conservation Specialist 1.00 1.00 1.00 1.00 1.00 - Lead Water Utility Operator 3.00 3.00 3.00 3.00 3.00 - Construction Inspector 2.00 2.00 2.00 2.00 2.00 - Water Control Systems Supervisor - 1.00 1.00 1.00 1.00 - Electric and Control Technician 1.00 - - - - - Instrumentation & Control Technican - 1.00 1.00 1.00 1.00 - Civil Engineer Tech 1.00 1.00 1.00 1.00 1.00 - Water Utility Operator III 8.00 7.00 7.00 7.00 7.00 - Water Utility Operator II 4.00 5.00 5.00 5.00 5.00 - Senior Office Specialist 1.00 1.00 1.00 1.00 1.00 - Water Utility Analyst - 1.00 1.00 1.00 1.00 - Customer Service Supervisor 1.00 - - - - - Water Utility Operator I 4.00 4.00 4.00 4.00 4.00 - Customer Service Specialist 4.00 4.00 4.00 4.00 4.00 - Customer Service Representative 0.48 0.48 0.48 0.48 0.48 - Total Water Utility 39.48 40.48 40.48 40.48 40.48 - Full-time employees:40 Part-time employees:1 Total Personnel 396.97 398.97 400.07 400.75 415.87 15.80 Full-time employees:333 Part-time employees:116 Town of Oro Valley 2022-2023 Town Manager's Recommended Budget 36 Clerk _______________________________________________   OVERVIEW The Clerk's Office is the centralized information distribution point for our citizens, Town Council and staff. Responsibilities include preserving the legislative history of the Town, maintaining public records of the Town and conducting fair and impartial elections. The Clerk's Office provides staff support to Town Council; public records and information; business licensing; records management; elections; voter registration; and notary services. Functions of the Clerk's Office are performed in accordance with Arizona Revised Statutes, Oro Valley Town Code and the administrative policies and objectives of the Town. 2021-2022 MAJOR ACCOMPLISHMENTS  Implemented a solution to obtain electronic signatures on oaths of office resulting in reduced processing times and a reduction in paper costs.  Added 2,492 documents consisting of 4,272 pages to the Town’s electronic document database.  Transitioned public meetings back to in-person and implemented a new Administrative Directive to allow for public participation of Public Hearings via Zoom for meetings held in the Council Chambers.  Received and processed 285 public record requests from 7/1/21 to 3/10/22, resulting in a total of 321 staff hours to process.  Analyzed and assisted in transitioning the business licensing function to the Community and Economic Development Department to capitalize on efficiencies in the department’s new permitting software system and connect businesses to the Town’s economic development professionals. Town of Oro Valley 2022-2023 Town Manager's Recommended Budget 37 Clerk _______________________________________________   Expenditure and Staffing Changes Operations & Maintenance: O&M increased 281% due to costs related to primary and general elections FY 2021 FY 2022 FY 2022 FY 2023 Variance Personnel Actual Budget Projected Budget to Budget Town Clerk 1.00 1.00 1.00 1.00 - Deputy Town Clerk 1.00 1.00 1.00 1.00 - Senior Office Specialist 1.00 1.00 1.00 1.00 - Office Assistant 1.48 1.48 1.48 0.73 (0.75) Communications Intern 0.25 0.25 0.25 - (0.25) Total FTEs 4.73 4.73 4.73 3.73 (1.00) FY 2021 FY 2022 FY 2022 FY 2023 Variance Expenditures Actual Budget Projected Budget to Budget Personnel 340,492$ 358,733$ 357,777$ 324,487$ -9.5% Operations & Maintenance 59,853 25,100 22,453 95,600 280.9% Total Expenditures 400,345$ 383,833$ 380,230$ 420,087$ 9.4% FY 2021 FY 2022 FY 2022 FY 2023 Variance Actual Budget Projected Budget to Budget Business Licenses & Permits 201,157$ 202,500$ 202,500$ 202,500$ 0.0% Public Record Request Fees 1,412 2,500 1,300 1,500 -40.0% Total Revenues 202,569$ 205,000$ 203,800$ 204,000$ -0.5% Revenue Sources Town of Oro Valley 2022-2023 Town Manager's Recommended Budget 38 Community & Economic Development (CED) _____         OVERVIEW The Community and Economic Development (CED) Department supports and welcomes new and expanded business and residential development in the Town of Oro Valley. The department provides excellent customer service in coordinating all facets of economic development, planning, permitting, and inspection and compliance related to horizontal and vertical construction within the community. The team is dedicated to ensuring that development proceeds in a safe and efficient manner that meets today’s business needs. The department encourages the use of best practices in both community and economic development, including planning for growth and development that supports a sustainable economy, diverse employment and housing opportunities, and expanded education and cultural experiences for local residents. 2021-2022 MAJOR ACCOMPLISHMENTS ADMINISTRATION  Completed work plans aligned with the Town Council Strategic Leadership Plan and the comprehensive economic development strategy.   Continued to implement remote work strategies that maintained a high level of customer service for all divisions, including remote pre-application and pre-construction meetings and remote customer service front desk options.  PERMITTING  As of the end of February 2022, issued 1,550 permits (2,325 projected for end of FY 2021/22), including 111 single family residential permits, 21 grading permits, 29 commercial building permits, 298 photovoltaic permits and 126 pool permits.  As of end of February 2022, issued permits representing over $1.1 million in plan review and permit fees representing more than $80 million in work valuation for new private construction.   Issued commercial building permits for projects such as Icon Golf Superstore, Crumbl Cookies, AZ MediQuip, Oncology Institute of Hope & Innovation, Sherwin Williams, Mali Thai, Hoppy Vine, Snooze AM Eatery. Issued Type 2 grading permits for Linda Vista Luxury Rentals, Stone Canyon VIII (Phase V) and Victory Church parking lot expansion/Como Drive improvements (phase 1).  As of the end of February 2022, completed the majority of setup for the new SmartGov permitting system, with a go-live anticipated prior to the end of FY 2021/22.  COMMUNITY AND ECONOMIC DEVELOPMENT Department Director ADMINISTRATION PERMITTING PLANNING INSPECTION AND COMPLIANCE ECONOMIC DEVELOPMENT Town of Oro Valley 2022-2023 Town Manager's Recommended Budget 39 Community & Economic Development (CED) _____     PLANNING  Completed of parking code updates and developed potential sign and development review requirement amendments for future consideration   Launched Community Academy with a record number of participants.   Completed planning review comments within time standards for all development applications.  Comprehensively evaluated Your Voice, Our Future general plan action item implementation and updated the Planning work plan accordingly.  Implemented OVprojects.com website customer improvements.  Updated customer process guides published on Town website.  Instituted internal efficiency improvements including refined review checklists and technological enhancements  Senior Planner achieved American Institute of Certified Planners status INSPECTION & COMPLIANCE  Performed 23,527 inspections at approximately 8,645 locations. Some high-profile projects include Roche Tissue Diagnostics building expansions, F45 Fitness, and TMC One.  As of April 1, 2022, staff investigated a total of 233 violations/complaints recorded. Of those recorded, 23 complaints did not lead to a violation.  Worked with several businesses and property owners to achieve voluntary compliance related to zoning  violations, including for Caliber Collision, who has submitted plans for site improvements to ensure vehicles  under repair are screened, and for Stone Canyon, where a property was being used as scrap materials storage,  but now has been cleared with the property owner moving forward with proposal for development.  ECONOMIC DEVELOPMENT  Completed an entrepreneurial needs study to determine how to support start up and small businesses.  Transitioned OVSafeSteps to OVNextSteps, which includes enhanced business retention and expansion efforts, semi-annual surveys to determine business needs, continued direct visits with businesses, and additional small business support programming.  Regularly added net new primary employer business projects into the active business expansion and attraction pipeline.  Leonardo Electronics USA purchased 12 acres in Innovation Park to build a new state-of-the-art semiconductor laser manufacturing facility and will move their existing operations that currently employ 200 and add an additional 170 jobs over five years. The total capital investment will be approximately $100 million, resulting in a total economic impact of $374 million over the next 10 years.  Partnered with the Communications Division to develop a new economic development website with plans to go live in April 2022.  Partnered with the Oro Valley Chamber and hosted the first annual business summit at the Westward Look with 90 participants.  Business visits resumed in June 2021 after being discontinued during the height of the pandemic. The mayor; Town councilmembers; Oro Valley Chamber President, Dave Perry; and Town staff met with 58 businesses in- person and 27 more were conducted virtually.  The COVID-19 business resources link on the Town’s website was updated when needed to provide accurate information for local businesses.  32 store front businesses opened in 2021. Town of Oro Valley 2022-2023 Town Manager's Recommended Budget 40 Community & Economic Development (CED) _____     FY 2021 FY 2023 Actual Budget Projected Budget 27.78 27.78 28.78 28.78 FY 2021 FY 2023 Variance Actual Budget Projected Budget to Budget Administration 191,781$ 297,878$ 287,898$ 224,875$ -24.5% Permitting 1,004,137 1,064,595 1,078,643 1,085,061 1.9% Planning 557,259 661,959 604,073 739,568 11.7% Inspection and Compliance 860,442 865,853 854,828 811,255 -6.3% Economic Development 82,631 154,329 149,365 395,381 156.2% 2,696,250$ 3,044,614$ 2,974,807$ 3,256,140$ 6.9% FY 2021 FY 2023 Variance Actual Budget Projected Budget to Budget Residential Building Permits 2,110,300$ 1,222,500$ 1,200,000$ 1,023,494$ -16.3% Commercial Building Permits 715,612 242,500 636,500 816,330 236.6% Special Inspection Fees 5,460 8,000 10,000 8,000 0.0% Zoning and Subdivision Fees 121,973 135,000 55,000 65,000 -51.9% Sign Permits 20,995 20,000 23,000 20,000 0.0% Grading Permit Fees 183,924 84,500 50,000 84,500 0.0% Engineer Plan Review Fees 24,800 51,000 25,000 51,000 0.0% Fire Permits and Fees 84,628 65,000 70,000 65,000 0.0% 3,267,692$ 1,828,500$ 2,069,500$ 2,133,324$ 16.7% Revenue Sources FY 2022 Total FTEs FY 2022 Expenditures by Division FY 2022 Town of Oro Valley 2022-2023 Town Manager's Recommended Budget 41 CED – Administration _____________________________     OVERVIEW The primary function of the Community and Economic Development Director is to ensure harmonious growth as well as the health, safety and welfare of the public in the built environment. The director, with support of the division managers and administrators, provides leadership, direction and support to the department's staff. Responsibilities include establishing departmental policy; leadership direction and support of the department's staff; preparation and management of the department's operating and capital budget; code interpretation and enforcement; revisions to the Town Code; Council support; Town Manager's Executive Leadership Team; customer service including effective public outreach and communication; and resolution of personnel and legal issues. Expenditure and Staffing Changes Personnel: Personnel increased by one staff member due to the mid-year transfer of a Management Analyst to the department, replacing a vacant Senior Office Specialist position. Operations & Maintenance: O&M decreased 75% due to one-time consulting costs related to consultant for property donation in the prior year. FY 2021 FY 2022 FY 2022 FY 2023 Variance Personnel Actual Budget Projected Budget to Budget CED Director 1.00 1.00 1.00 1.00 - Senior Office Specialist 1.00 1.00 - - (1.00) Office Assistant - - 1.00 1.00 1.00 Total FTEs 2.00 2.00 2.00 2.00 - FY 2021 FY 2022 FY 2022 FY 2023 Variance Expenditures Actual Budget Projected Budget to Budget Personnel 174,989$ $237,478 227,498$ 209,475$ -11.8% Operations & Maintenance 16,792 60,400 60,400 15,400 -74.5% Total Expenditures 191,781$ 297,878$ 287,898$ 224,875$ -24.5% Town of Oro Valley 2022-2023 Town Manager's Recommended Budget 42 CED – Permitting _________________________________     OVERVIEW The Permitting division coordinates all facets of plan review for permitting and development by assessing compliance with the codes and ordinances adopted by the Town. Plan review and coordination of projects include conceptual and final site plans, improvement plans, grading, building, walls, pools, spas, signs, equipment and miscellaneous projects for both residential and commercial development.           FY 2021 FY 2022 FY 2022 FY 2023 Variance Personnel Actual Budget Projected Budget to Budget Division Mgr, Permitting 1.00 1.00 1.00 1.00 - Senior Civil Engineer 1.00 1.00 1.00 1.00 - Engineering Design Reviewer 1.00 1.00 1.00 1.00 - Plans Examiner II 2.00 2.00 2.00 2.00 - Plans Examiner I 1.00 1.00 1.00 1.00 - Senior Planning Technician 1.00 1.00 1.00 1.00 - Building Permit Tech 2.00 2.00 2.00 2.00 - Office Specialist 0.48 0.48 0.48 0.48 - Total FTEs 9.48 9.48 9.48 9.48 - FY 2021 FY 2022 FY 2022 FY 2023 Variance Expenditures Actual Budget Projected Budget to Budget Personnel 925,626$ $951,170 965,218$ 969,186$ 1.9% Operations & Maintenance 78,511 113,425 113,425 115,875 2.2% Total Expenditures 1,004,137$ 1,064,595$ 1,078,643$ 1,085,061$ 1.9% Town of Oro Valley 2022-2023 Town Manager's Recommended Budget 43 CED – Planning ___________________________________     OVERVIEW The Planning division administers the General Plan and Zoning Code for the harmonious growth of the town. The division is responsible for providing planning and zoning services to the community, Town Council, Planning and Zoning Commission, Board of Adjustment and project teams. The division's current work plan focuses on updates to the sign code, zoning code, general plan and associated guidelines and standards.   Expenditure and Staffing Changes Personnel: Personnel increased 13% due to the mid-year transfer of the Code Compliance Specialist from the department’s Inspection & Compliance Division. FY 2021 FY 2022 FY 2022 FY 2023 Variance Personnel Actual Budget Projected Budget to Budget Division Mgr, Planning 1.00 1.00 1.00 1.00 - Principal Planner 2.00 2.00 2.00 2.00 - Senior Planner 1.00 1.00 1.00 1.00 - Planner 1.00 1.00 1.00 1.00 - Code Compliance Specialist - - 1.00 1.00 1.00 Senior Office Specialist 1.00 1.00 1.00 1.00 - Intern 0.30 0.30 0.30 0.30 - Total FTEs 6.30 6.30 7.30 7.30 1.00 FY 2021 FY 2022 FY 2022 FY 2023 Variance Expenditures Actual Budget Projected Budget to Budget Personnel 533,781$ $576,049 575,163$ 653,503$ 13.4% Operations & Maintenance 23,478 85,910 28,910 86,065 0.2% Total Expenditures 557,259$ 661,959$ 604,073$ 739,568$ 11.7% Town of Oro Valley 2022-2023 Town Manager's Recommended Budget 44 CED – Inspection & Compliance __________________     OVERVIEW The Inspection and Compliance division is responsible for inspecting all new and altered, commercial and residential, vertical and horizontal construction within the town to assess their compliance with the codes and ordinances adopted by the Town. The division is also responsible for the monitoring and enforcement of the zoning, building and Town codes and ordinances, including all construction, plant salvage, landscape, signage and development performance standards. Expenditure and Staffing Changes Personnel: Personnel decreased 7% due to the mid-year transfer of the Code Compliance Specialist to the department’s Planning Division. Operations & Maintenance: O&M increased 50% due to costs related to training for building inspectors         FY 2021 FY 2022 FY 2022 FY 2023 Variance Personnel Actual Budget Projected Budget to Budget Division Mgr, Insp. & Comp.1.00 1.00 1.00 1.00 - Building Inspector II 4.00 4.00 4.00 4.00 - Building Inspector I 1.00 1.00 1.00 1.00 - Code Compliance Specialist 1.00 1.00 - - (1.00) Zoning Technician 1.00 1.00 1.00 1.00 - Senior Office Assistant 1.00 1.00 1.00 1.00 - Total FTEs 9.00 9.00 8.00 8.00 (1.00) FY 2021 FY 2022 FY 2022 FY 2023 Variance Expenditures Actual Budget Projected Budget to Budget Personnel 857,325$ $854,008 842,983$ 793,435$ -7.1% Operations & Maintenance 3,117 11,845 11,845 17,820 50.4% Total Expenditures 860,442$ 865,853$ 854,828$ 811,255$ -6.3% Town of Oro Valley 2022-2023 Town Manager's Recommended Budget 45 CED – Economic Development ____________________     OVERVIEW Beginning FY 2019, Economic Development was a new General Fund division within the Community and Economic Development Department. These costs were previously budgeted in the Bed Tax Fund. Economic Development is responsible for business recruitment, retention, and expansion. Expenditure and Staffing Changes Operations & Maintenance: O&M increased 187% due to costs related to tourism moved from General Administration       FY 2021 FY 2022 FY 2022 FY 2023 Variance Personnel Actual Budget Projected Budget to Budget Economic Dev. Specialist 1.00 1.00 1.00 1.00 - Management Analyst - - 1.00 1.00 1.00 Total FTEs 1.00 1.00 2.00 2.00 1.00 FY 2021 FY 2022 FY 2022 FY 2023 Variance Expenditures Actual Budget Projected Budget to Budget Personnel 80,138$ $83,478 83,514$ 192,025$ 130.0% Operations & Maintenance 2,493 70,851 65,851 203,356 187.0% Total Expenditures 82,631 154,329 149,365 395,381$ 156.2% Town of Oro Valley 2022-2023 Town Manager's Recommended Budget 46 Council ____________________________________________   OVERVIEW Town Council consists of seven officials elected by residents of the town. The Mayor is directly elected by the citizens while the Vice Mayor is selected by the Council annually. Councilmembers serve four-year overlapping terms in the manner prescribed by state law. The Mayor and Councilmembers of Oro Valley are committed to high quality municipal services and responsible development. Through the Town Manager, the Town Council provides policy direction by adopting rules, regulations and procedures to meet community needs. The Mayor and Councilmembers remain accountable and accessible to the residents through their commitment to full, honest and timely communication and exchange promoting responsive, accountable governance. 2021-2022 MAJOR ACCOMPLISHMENTS  Provided direction to the Town Manager and Town Attorney to finalize a settlement agreement that led to the purchase of the former Vistoso Golf Course by The Conservation Fund and the eventual transfer of the 202 acres to the Town in the summer of 2022.  Approved the issuance of $25 million in parks and recreation bonds to fund priority amenities identified in the Parks and Recreation Master Plan, including fields, splash pad, pickleball and basketball courts at Naranja Park; multi use paths; and replacement irrigation systems for the El Conquistador and Canada golf courses.  Approved an amendment to the Purchase and Sales Agreement with HSL that removed a provision providing for the potential private operation of the Canada golf course should the Town cease to operate it in the future.  Completed and reopened the renovated Town Council chambers that allows for greater in person attendance, improved sound and presentation technology, upgrade ADA access and the ability to hold dual in- person/Zoom meetings.  Collaborated with staff to launch Keep OV Beautiful, a community beautification program that brings all of the Town’s beautification programs and opportunities under one umbrella, making it easier than ever for residents to participate in our collective efforts to keep our roads, trails and paths clean and beautiful.   FY 2021 FY 2022 FY 2022 FY 2023 Variance Personnel Actual Budget Projected Budget to Budget Mayor 1.00 1.00 1.00 1.00 - Councilmember 6.00 6.00 6.00 6.00 - Total FTEs 7.00 7.00 7.00 7.00 - FY 2021 FY 2022 FY 2022 FY 2023 Variance Expenditures Actual Budget Projected Budget to Budget Personnel 78,862$ $78,820 78,820$ 78,822$ 0.0% Operations & Maintenance 83,039 109,900 109,289 120,323 9.5% Total Expenditures 161,901$ 188,720$ 188,109$ 199,145$ 5.5% Town of Oro Valley 2022-2023 Town Manager's Recommended Budget 47 Town Court ________________________________________   OVERVIEW The Oro Valley Town Court is charged with the processing and adjudication by trial, hearing or otherwise, of all cases filed in the Court. This includes misdemeanor criminal and traffic cases, civil traffic cases and Town Code violations. The Court is also responsible for the collection of fines, surcharges, restitution, and other fees. Issuing domestic violence orders of protection and injunctions against harassment, taking applications for and issuing marriage licenses. Services rendered by the Court are governed by rules set by the Arizona Supreme Court, statutes and/or ordinances enacted by the Arizona Legislature and/or the Oro Valley Town Council. 2021-2022 ACCOMPLISHMENTS  Completed a conversion to a complete paperless environment, and in doing so, made court information more accessible to Court users and reduced office supply costs.  Proposed revisions to the Town Code which were approved by Council that updated the ordinances governing the operation of the Court.  Reviewed with the assistance of the Town Prosecutor hundreds of outstanding cases and completed final disposition.  Resumed normal Court operations, including in-person hearings, and jury trials.  Worked with Police Department and Prosecutor’s Office to establish a consistent court calendar.  Initiated and oversaw the purchase and installation of a fingerprint machine at the police station.  Completed a remodel of existing Court office space, including the removal of all physical files. Opened the staff area and allowed for the installation of cubicles.  Trained all staff to function as a Courtroom Clerk, improving efficiency in the event of a staff absence.  Updated internal procedures to reflect changes in legislation. This was especially important as it related to Proposition 207 and the new process of expunging records.   Town of Oro Valley 2022-2023 Town Manager's Recommended Budget 48 Town Court ________________________________________   Expenditure and Staffing Changes Operations & Maintenance: O&M increased 53% due to court appointed attorney fees   Capital Outlay: Capital outlay is related to equipment replacement  FY 2021 FY 2022 FY 2022 FY 2023 Variance Personnel Actual Budget Projected Budget to Budget Magistrate Judge 1.00 1.00 1.00 1.00 - Court Administrator 1.00 1.00 2.00 2.00 1.00 Deputy Court Administrator - 1.00 - - (1.00) Courtroom Clerk 1.00 1.00 1.00 1.00 - Senior Court Clerk 3.00 3.00 1.00 1.00 (2.00) Court Clerk 1.48 1.00 3.00 3.00 2.00 Probation Compliance Officer - - - 0.48 0.48 Court Security Officer 1.00 - - - - Court Security Coordinator - 0.50 0.50 0.50 - Total FTEs 8.48 8.50 8.50 8.98 0.48 FY 2021 FY 2022 FY 2022 FY 2023 Variance Expenditures Actual Budget Projected Budget to Budget Personnel 677,617$ 748,880$ 626,870$ 759,950$ 1.5% Operations & Maintenance 124,506 165,916 165,916 254,131 53.2% Capital Outlay - - 29,329 39,000 100.0% Total Expenditures 802,123$ 914,796$ 822,115$ 1,053,081$ 15.1% FY 2021 FY 2022 FY 2022 FY 2023 Variance Actual Budget Projected Budget to Budget Court Costs 140,218$ 135,000$ 130,000$ 135,000$ 0.0% Court Security Fee 20,000 20,000 20,000 57,000 0.0% Public Defender Fees 2,416 2,400 350 2,400 0.0% Fines 153,547 125,000 125,000 125,000 0.0% Total Revenues 316,181$ 282,400$ 275,350$ 319,400$ 13.1% Revenue Sources Town of Oro Valley 2022-2023 Town Manager's Recommended Budget 49 Finance ____________________________________________ OVERVIEW Finance is responsible for Town financial activities, including accounting, payroll and accounts payable processing, budget development, coordination and analysis, financial statement preparation, audit coordination, debt management, managerial reporting, sales tax compliance and participation in a variety of other administrative and special projects. Finance also coordinates the development of the Town’s Capital Improvement Program and provides procurement administration for the Town. 2021-2022 MAJOR ACCOMPLISHMENTS  Received the Distinguished Budget Presentation award from the Government Finance Officers Association (GFOA) for the 14th consecutive year, with special performance measures recognition.  Received the Certificate of Achievement for Financial Reporting Excellence from GFOA for the 29th consecutive year.   Received the Popular Annual Financial Reporting award from GFOA for the 11th consecutive year.   Received an unmodified “clean” audit opinion for the Town’s annual financial statements.   Facilitated the contribution of $27.6 million toward the Town’s outstanding liability in the Public Safety Pension Retirement System, through a combination of $10 million in Town reserve funds and $17.6 million in pension obligation bonds.    Issued excise tax bonds to provide $25 million in funding for parks and recreation amenities and improvements, including Naranja Park improvements, Community Center and golf course irrigation improvements, and multi- use paths.    Successfully contracted for a number of significant Town infrastructure and capital improvements, including the Naranja Park expansion and golf course irrigation improvements.    Successfully contracted for a new employee deferred compensation services provider, intended to improve employee planning and return on retirement investment options.    Due to conservative budgeting practices and prudent fiscal management, the Town is expected to significantly outperform financial expectations in the General Fund and across nearly all funds for the fiscal year.   Town of Oro Valley 2022-2023 Town Manager's Recommended Budget 50 Finance ____________________________________________ Expenditure and Staffing Changes Personnel: Personnel increased 6.5% due to a new procurement specialist position in FY 2023  FY 2021 FY 2022 FY 2022 FY 2023 Variance Personnel Actual Budget Projected Budget to Budget Chief Financial Officer 1.00 1.00 1.00 1.00 - Finance & Budget Administrator 1.00 1.00 1.00 1.00 - Chief Procurement Officer 1.00 1.00 1.00 1.00 - Contract Specialist - 1.00 1.00 1.00 - Procurement Specialist 1.00 - - 1.00 1.00 Senior Budget Analyst 1.00 1.00 1.00 1.00 - Senior Accountant 1.00 2.00 2.00 2.00 - Accounting Specialist 1.00 1.00 1.00 1.00 - Senior Office Specialist 0.20 0.20 0.20 0.20 - Total FTEs 7.20 8.20 8.20 9.20 1.00 FY 2021 FY 2022 FY 2022 FY 2023 Variance Expenditures Actual Budget Projected Budget to Budget Personnel 757,682$ 881,824$ 874,402$ 939,135$ 6.5% Operations & Maintenance 78,931 97,831 70,341 94,081 -3.8% Total Expenditures 836,613$ 979,655$ 944,743$ 1,033,216$ 5.5% Town of Oro Valley 2022-2023 Town Manager's Recommended Budget 51 Human Resources   OVERVIEW Human Resources (HR) provides services and support in the following areas: policy and procedure; administration and compliance; compensation and benefits; hiring, development and retention; employee and labor relations; and performance management. 2021-2022 MAJOR ACCOMPLISHMENTS  Developed and distributed an employee survey to 240 benefit-eligible employees to determine satisfaction of Town benefit offerings and well-being programs, as well as work environment and organizational issues, obtaining a 73% participation rate. Key finding that 84% of employees would recommend the Town of Oro Valley as a place of employment to family and friends.   Selected via competitive solicitation an experienced consultant to conduct a classification and compensation study for all Town employees   Created and made available streamlined templates on a variety of employee relations and performance management issues for supervisors and managers to easily access.   Re-constituted the quarterly employee recognition program to include opportunities to recognize recently promoted and welcome recently hired employees.   Broadened and customized recruitment outreach efforts to ensure Town departments received quality candidates. In the first nine months of the fiscal year, recruited for and hired 82 positions, processing over 1,000 applications.   Conducted annual employee recognition where 54 employees who reached the 5, 10, 15, 20, 25, and 30 year marks were honored for over 695 combined years of service.    FY 2021 FY 2022 FY 2022 FY 2023 Variance Personnel Actual Budget Projected Budget to Budget Human Resource Director 1.00 1.00 1.00 1.00 - Human Resource Analyst 2.00 3.00 3.00 3.00 - Human Resource Assistant 1.00 - - - - Total FTEs 4.00 4.00 4.00 4.00 - FY 2021 FY 2022 FY 2022 FY 2023 Variance Expenditures Actual Budget Projected Budget to Budget Personnel 383,866$ 401,410$ 348,410$ 426,987$ 6.4% Operations & Maintenance 53,484 133,980 123,980 142,125 6.1% Total Expenditures 437,350$ 535,390$ 472,390$ 569,112$ 6.3% Town of Oro Valley 2022-2023 Town Manager's Recommended Budget 52 Innovation & Technology _________________________   OVERVIEW The Innovation & Technology Department (I&T) is committed to providing secure, proven, innovative technologies that enhance operational efficiencies while providing convenient access to government information and services for employees, citizens, visitors and businesses. I&T is comprised of two divisions: Innovation and Strategy, and Information Technology. The Innovation and Strategy division manages the Council Strategic Leadership Plan, OV Peak Performance (continuous improvement activities dedicated to delivering better value to customers, internally and externally, by eliminating waste), annexations, special events, emergency management, safety, constituent services and tourism. Emergency Management programs ensure disaster preparedness, education and information is made available to staff and to community stakeholders. Constituent Services, through phone calls and AskOV, addresses concerns, complaints, inquiries and referrals with excellent customer service and a commonsense approach. The Information Technology Division (ITD) identifies, implements and supports technology for all Town departments to support their business needs. Responsibilities include management and security of the Town's computer and telephony networks, Geographic Information System (GIS), technology acquisition, application and database support. ITD strategizes its work through five focus areas: service delivery Improvement; cyber security; application lifecycles;  business continuity; and ITD as a strategic partner. 2021-2022 ACCOMPLISHMENTS  Upgraded enterprise ERP system to latest version and implemented their latest forms engine for better control of key forms like purchase orders and business licenses.  Continued implementation of electronic forms for various processes throughout the Town.    Coordinated updated cybersecurity training courses for employees twice per year along with ongoing phishing testing campaign with remedial training to help mitigate against potential breaches.  Updated audio and video equipment and services in the new council chambers. This included the ability to support simultaneous virtual and in-person meetings.    Updated mobile device management solution for better asset tracking, security, and management.    Updated multifactor authentication platform within the Town.  Refreshed all police department body cameras.   Won an award from Arizona Geographic Information Council for best application with the consolidated Adopt- a-road/trail website that is integrated with the Town’s asset management system.   Continued Peak Performance training to all full-time employees and expanded Lean Green Belt training to 45 employees, broadening the use of process improvement across the organization.   As of January 2022, realized a cost savings of $163,405 related to Peak Improvement projects.  Revised Town safety program to reflect current practices and regulations.    Participated with Pima County in updating the multi-jurisdictional hazard mitigation plan.  Worked with Pima County on training the Town senior management team in emergency operations and conducted an emergency management exercise.     Town of Oro Valley 2022-2023 Town Manager's Recommended Budget 53 Innovation & Technology _________________________   FY 2021 FY 2022 FY 2022 FY 2023 Variance Personnel Actual Budget Projected Budget to Budget Chief Information Officer (CIO)1.00 1.00 1.00 1.00 - NetOps Supervisor 1.00 1.00 1.00 1.00 - Applications Supervisor 1.00 1.00 1.00 1.00 - Network Administrator 1.00 1.00 2.00 2.00 1.00 Systems Analyst 2.00 3.00 2.00 2.00 (1.00) Database Analyst 1.00 1.00 1.00 1.00 - Senior GIS Administrator 1.00 1.00 1.00 1.00 - GIS Analyst 1.00 1.00 1.00 1.00 - IT Analyst 1.00 1.00 1.00 1.00 - IT Technician 1.00 1.00 2.00 2.00 1.00 Strategic Initatives Manager 1.00 1.00 - - (1.00) Management Analyst - - 1.00 1.00 1.00 Constituent Services Coord.1.00 1.00 1.00 1.00 - Emergency Mgmt & Safety 1.00 1.00 1.00 1.00 - Senior Office Specialist 0.80 0.80 0.80 0.80 - Total FTEs 14.80 15.80 16.80 16.80 1.00 FY 2021 FY 2022 FY 2022 FY 2023 Variance Expenditures Actual Budget Projected Budget to Budget Personnel 1,497,005$ 1,665,903$ 1,593,131$ 1,728,071$ 3.7% Operations & Maintenance 1,812,141 2,412,880 2,412,880 2,705,600 12.1% Capital Outlay 269,522 267,800 267,800 349,300 30.4% Total Expenditures 3,578,668$ 4,346,583$ 4,273,811$ 4,782,971$ 10.0% Expenditure and Staffing Changes Personnel: Personnel increased by one IT technician, a mid-year FTE transfer from CED Operations & Maintenance: O&M increased 12% due to increased software maintenance costs and licensing Capital Outlay: Capital outlay increased 30% due to increased costs for virtual hosting and police mobile computer  (MDC) replacements  Town of Oro Valley 2022-2023 Town Manager's Recommended Budget 54 Legal   OVERVIEW The Legal Services Department is managed by the Legal Services Director. A contract attorney is hired by the Mayor and Council to act as their chief legal advisor. The Legal Services Department is committed to providing the highest quality representation possible to meet the present and future needs of the Town in an efficient and effective manner. 2021-2022 MAJOR ACCOMPLISHMENTS  Continued to hold court cases telephonically throughout the COVID-19 pandemic, switching to in-person.  Provided statewide training on Ethics, Advanced DUI, Drugged Driving and Criminal Year Updates to police officers and prosecutors.  Provided support staff for various Boards and Commission meetings.   Responded to legal claims against the Town.  Reviewed contracts, policies and ordinances; and provided legal advice.  Tried the State v. Bell case, a case with national attention, and received a conviction.  FY 2021 FY 2022 FY 2022 FY 2023 Variance Personnel Actual Budget Projected Budget to Budget Legal Services Director 1.00 1.00 1.00 1.00 - Chief Civil Deputy Attorney 1.00 1.00 1.00 1.00 - Assistant Town Prosecutor 1.00 1.00 1.00 2.00 1.00 Senior Paralegal 1.00 1.00 1.00 1.00 - Paralegal I 1.00 1.00 1.00 1.00 - Legal Secretary 1.00 1.00 1.00 1.00 - Total FTEs 6.00 6.00 6.00 7.00 1.00 FY 2021 FY 2022 FY 2022 FY 2023 Variance Expenditures Actual Budget Projected Budget to Budget Personnel 723,286$ 751,078$ 756,985$ 836,397$ 11.4% Operations & Maintenance 140,497 151,676 126,676 162,945 7.4% Capital Outlay - - - 12,000 0.0% Total Expenditures 863,783$ 902,754$ 883,661$ 1,011,342$ 12.0% Expenditure and Staffing Changes Personnel: Personnel costs increased 11% due to a new assistant Town prosecutor position in FY 2023  Town of Oro Valley 2022-2023 Town Manager's Recommended Budget 55 Town Manager’s Office ____________________________   OVERVIEW The Town Manager is responsible for the proper management and administration of the Town and serves as the Chief Administrative Officer of the government under the direction of the Town Council. The Town Manager is further responsible for tourism promotion, intergovernmental programs, communications and for coordination of the administrative functions of the various departments, divisions, boards and services of the Town government. The Town of Oro Valley is made up of the following departments and/or offices: Town Manager; Town Clerk; Finance; Human Resources; Information Technology; Legal Services; Police; Water Utility; Community and Economic Development; Public Works; Parks and Recreation; and Town Court. 2021-2022 MAJOR ACCOMPLISHMENTS  Negotiated and finalized a settlement agreement with the owner of the former Vistoso golf course, The Conservation Fund, and a local developer that led to the purchase of 202 acres of the property for permanent open space and passive recreation.  Maintained a AA+ bond rating from Standard and Poor’s in advance of the issuance of $25 million in park and recreation bonds.  Led the review and subsequent solicitation process to evaluate and select a new 457 deferred compensation provider for a voluntary supplemental retirement savings program that enhances financial well-being opportunities for employees.  Collaborated with the Friends of Pusch Ridge Golf for the successful reopening of the Pusch 9 Course in November.  Created and hosted 13 “This is Oro Valley” podcasts to highlight Town and community operations, including topics such as Police school resource officers and K-9s, public art, Golder Ranch Fire District, Steam Pump Ranch and more, with increasing interest from the community as demonstrated by the 250% increase in downloads for the most recent podcast compared to the feature’s initial launch.  Negotiated an economic development agreement that contributed to Leonardo Electronics US Inc. to choose Oro Valley for its future relocation and estimated $100 million investment, 170 net new jobs and regional economic impact of $374 million over the next 10 years.  In response to the continuing pandemic, successfully adapted operations and created and implemented a variety of new protocols and policies that resulted in limited impacts on Town services to the community and a safe working environment.     Town Manager ADMINISTRATION COMMUNICATIONS Town of Oro Valley 2022-2023 Town Manager's Recommended Budget 56 Town Manager’s Office ____________________________   2021-2022 MAJOR ACCOMPLISHMENTS (continued)    The Communications Division led the development of two new micro websites within the orovalleyaz.gov website to meet the organization’s growing needs/challenges: a more interactive and content-rich site to better support site selectors, major employers and other economic development needs; and a Police recruitment site that better aligns with the process and clearly conveys the unique culture at OVPD.  Developed and presented a Tourism Strategy to the Town Council in November 21 that provides the foundation for additional creative attraction strategies, including the development of a six-part tourism video series with CGI Communications to highlight Oro Valley attractions and amenities.         FY 2021 FY 2023 Actual Budget Projected Budget 8.38 8.38 8.38 8.38 FY 2021 FY 2023 Variance Actual Budget Projected Budget to Budget Administration 517,377$ 611,135$ 616,947$ 651,942$ 6.7% Communications 429,240 504,089 490,803 499,280 -1.0% 946,617$ 1,115,224$ 1,107,750$ 1,151,222$ 3.2% Total FTEs FY 2022 Expenditures by Program FY 2022 Town of Oro Valley 2022-2023 Town Manager's Recommended Budget 57 Town Manager’s Office – Administration __________   OVERVIEW The Town Manager’s office is responsible for the fiscal health of the Town government, and for direction and coordination of the administrative functions of the various departments, divisions, boards and services of the Town Government. The Town Manager’s office provides staff support to the Town Council, handles media relations, promotes the Town’s legislative agenda through intergovernmental programs, promotes tourism, and seeks opportunities for partnerships and financial assistance at the county, state and federal levels through grants, legislation and federal appropriation requests. The Town Manager’s office also maintains citizen and community relations, as well as Oro Valley representation on regional boards and quasi-governmental councils to keep the Town's needs and interests considered in regional decision–making. Expenditure and Staffing Changes Operations & Maintenance: O&M increased 93% due to budgeting for a bi-annual Council strategic planning consultant in outside professional services and travel & training increases.  FY 2021 FY 2022 FY 2022 FY 2023 Variance Personnel Actual Budget Projected Budget to Budget Town Manager 1.00 1.00 1.00 1.00 - Assistant Town Manager 1.00 1.00 1.00 1.00 - Management Analyst 1.00 1.00 1.00 1.00 - Executive Assistant 1.00 1.00 1.00 1.00 - Management Intern 0.38 0.38 0.38 0.38 - Total FTEs 4.38 4.38 4.38 4.38 - FY 2021 FY 2022 FY 2022 FY 2023 Variance Expenditures Actual Budget Projected Budget to Budget Personnel 492,852$ 588,109$ 593,921$ 607,575$ 3.3% Operations & Maintenance 24,525 23,026 23,026 44,367 92.7% Total Expenditures 517,377$ 611,135$ 616,947$ 651,942$ 6.7% Town of Oro Valley 2022-2023 Town Manager's Recommended Budget 58 Town Manager’s Office – Communications _______   OVERVIEW The Communications Administrator manages and facilitates all media relations on behalf of the Town (with the exception of the Police Department, which has a designated public information officer). The Communications Division is responsible for internal and external communications and publications, the Town’s website and employee intranet, oversight of the Town’s social media accounts, graphic design and photography. Additionally, the Communications Division, in partnership with Economic Development, manages and facilitates the Town’s marketing and advertising efforts. The division also plans, develops and produces publications and services designed to facilitate communication between Town leadership and residents in order to keep residents informed about Town services, activities and programs.       FY 2021 FY 2022 FY 2022 FY 2023 Variance Personnel Actual Budget Projected Budget to Budget Communications Administrator 1.00 1.00 1.00 1.00 - New Media Developer 1.00 1.00 1.00 1.00 - Marketing & Comm. Specialist 1.00 1.00 1.00 1.00 - Public Information Officer 1.00 1.00 1.00 1.00 - Total FTEs 4.00 4.00 4.00 4.00 - FY 2021 FY 2022 FY 2022 FY 2023 Variance Expenditures Actual Budget Projected Budget to Budget Personnel 331,743$ 379,619$ 366,333$ 380,693$ 0.3% Operations & Maintenance 95,297 124,470 124,470 118,587 -4.7% Capital Outlay 2,200 - - - 0.0% Total Expenditures 429,240$ 504,089$ 490,803$ 499,280$ -1.0% Town of Oro Valley 2022-2023 Town Manager's Recommended Budget 59 Parks and Recreation ______________________________     OVERVIEW The Parks and Recreation Department is comprised of the following divisions: Administration, Parks Management, Recreation and Culture, Aquatics and Community Center/Golf Fund. The department is further responsible for providing staff support to the Parks and Recreation Advisory Board and the Historic Preservation Commission. The Mission of the Department is Inspire Connection through Recreation 2021-2022 MAJOR ACCOMPLISHMENTS ADMINISTRATION  Began implementation of the Parks & Recreation Master Plan through the Town Council approved parks bond that included securing design/construction teams for Naranja Park. Started construction at Naranja Park, Community Center tennis courts and the Conquistador irrigation projects.  Worked with the Sonoran Desert Flyer (remote control aircraft organization) to identify a permanent airfield location.    Managed the Indigo Sports golf contract resulting in year-over-year improved financials for golf and food & beverage; successfully opened the Pusch Ridge Golf Course and worked with the Disc Golf community to identify a brand-new recreation program that will launch in fall 2022.  PARKS MANAGEMENT  Installed new pedestrian lighting around the walking path at Riverfront Park  Installed new (lifecycle replacement) playground structures at James D. Kriegh Park    Installed a third dog park area at Naranja Park for vulnerable dogs to use   RECREATION & CULTURE  Through the Oro Valley Historic Preservation Commission, the first Historic Home was recognized in Oro Valley and a process was established to review and designate future homes for this recognition. Assistance was provided by University of Arizona graduate students.   Construction began on the garage building at Steam Pump Ranch, upon its completion it will house the Recreation and Culture Division and provide a staff presence and programming on site six days a week.      PARKS AND RECREATION Department Director ADMINISTRATION PARKS MANAGEMENT RECREATION & CULTURE AQUATICS COMMUNITY CENTER Town of Oro Valley 2022-2023 Town Manager's Recommended Budget 60 Parks and Recreation ______________________________   2021-2022 MAJOR ACCOMPLISHMENTS (continued)  Completed MOU with Oro Valley Historical Society identifying uses and future planning of use at the Steam Pump Ranch property.  AQUATICS  Oversaw membership increase from 252 pre-pandemic membership to over 420 currently, a 66% increase.   Installed a new secondary sanitization system and oxygen system on the Olympic pool body of water. This will provide increased water quality for users as well as decrease the amount of chemicals needed, thus decreasing costs as well.   Increased lifeguard certification offerings to attract more staff to the Town to assist with operations, as well as classes for swim coach education.   Added aqua aerobics classes to facility programming, increasing offerings to the public.  COMMUNITY CENTER  Oversaw member return to pre-pandemic levels, currently there are 2107 memberships compared to 2,144 pre-pandemic and a low of 450 during the pandemic.  Purchased new treadmills to replace old, outdated models. New treadmills include individual screens and personalized settings and access to make the experience specific for each user.   Increased pickleball programs and courts through use of temporary tape and volunteer assistance. This program was non-existent two years ago and now provides opportunities seven days a week to an active user group of over 200 participants.   Added additional security cameras to the recreation facility to ensure safety at the facility.    Offered a new December event, SnOV, to the community that was well received (2,000 participants) and will become an annual holiday event.  Town of Oro Valley 2022-2023 Town Manager's Recommended Budget 61 Parks and Recreation ______________________________   FY 2021 FY 2023 Actual Budget Projected Budget 63.10 63.10 63.58 67.08 FY 2021 FY 2023 Variance Actual Budget Projected Budget to Budget General Fund 2,072,575$ 3,446,361$ 3,423,479$ 3,760,556$ 9.1% Community Center Fund 5,725,830 7,789,128 6,021,168 11,453,490 47.0% 7,798,405$ 11,235,489$ 9,444,647$ 15,214,046$ 35.4% FY 2021 FY 2023 Variance Actual Budget Projected Budget to Budget General Fund 586,496$ 558,525$ 834,350$ 777,032$ 39.1% Community Center Fund 7,583,861 7,398,265 9,004,844 8,505,335 15.0% 8,170,357$ 7,956,790$ 9,839,194$ 9,282,367$ 16.7% Revenues by Fund FY 2022 Total FTEs FY 2022 Expenditures by Fund FY 2022 Town of Oro Valley 2022-2023 Town Manager's Recommended Budget 62 Parks and Recreation – General Fund   FY 2021 FY 2023 Actual Budget Projected Budget 41.55 41.55 42.03 44.31 FY 2021 FY 2023 Variance Actual Budget Projected Budget to Budget Administration 415,441$ 441,380$ 433,744$ 473,669$ 7.3% Parks Management 1,268,364 1,369,531 1,366,614 1,489,697 8.8% Recreation and Culture 388,770 498,834 493,332 573,638 15.0% Aquatics 1,136,616 1,129,789 1,223,552 7.6% 2,072,575$ 3,446,361$ 3,423,479$ 3,760,556$ 9.1% FY 2021 FY 2023 Variance Actual Budget Projected Budget to Budget Aquatics User Fees 405,834$ 395,000$ 529,000$ 496,000$ 25.6% Concession Sales 82 5,000 350 - -100.0% Fields & Courts User Fees 109,137 66,125 135,000 122,032 84.5% Miscellaneous User Fees 71,443 92,400 170,000 159,000 72.1% 586,496$ 558,525$ 834,350$ 777,032$ 39.1% FY 2022 Total FTEs FY 2022 Expenditures by Division FY 2022 Revenue Sources Town of Oro Valley 2022-2023 Town Manager's Recommended Budget 63 Parks and Recreation – General Fund Administration   OVERVIEW The Parks and Recreation Administration Division is responsible for program registrations, processing fees and making deposits, coordinating facility reservations, grant writing and management for the department, responding to all phone, walk-in and email inquiries, and clerical and organizational support to the entire department. Additionally, this division provides administrative support to the Parks and Recreation Advisory Board. Expenditure and Staffing Changes Operations & Maintenance Operations & Maintenance increased 40% due to increased costs for general liability costs, and travel & training FY 2021 FY 2022 FY 2022 FY 2023 Variance Personnel Actual Budget Projected Budget to Budget Parks & Recreation Director 1.00 1.00 1.00 1.00 - Deputy Parks & Rec. Director 1.00 1.00 1.00 1.00 - Office Specialist 1.00 1.00 1.00 1.00 - Total FTEs 3.00 3.00 3.00 3.00 - FY 2021 FY 2022 FY 2022 FY 2023 Variance Expenditures Actual Budget Projected Budget to Budget Personnel 350,107$ 347,834$ 340,198$ 342,478$ -1.5% Operations & Maintenance 65,334 93,546 93,546 131,191 40.2% Total Expenditures 415,441$ 441,380$ 433,744$ 473,669$ 7.3% Town of Oro Valley 2022-2023 Town Manager's Recommended Budget 64 Parks and Recreation – General Fund Parks Management   OVERVIEW The Parks Maintenance Division is responsible for janitorial services, turf management, landscape maintenance and property upkeep for all parks, natural trails, and bicycle/pedestrian oasis facilities. Parks Maintenance is also responsible for the landscape maintenance at the Town Hall campus. Expenditure and Staffing Changes Personnel Personnel increased 9.8% due to a new parks maintenance worker I and a new part-time park monitor in FY 2023 Capital Outlay Capital outlay increased 25.1% due to new one-time equipment purchases FY 2021 FY 2022 FY 2022 FY 2023 Variance Personnel Actual Budget Projected Budget to Budget Parks Maint Superintendent 1.00 1.00 1.00 1.00 - Parks Maintenance Supervisor 1.00 1.00 1.00 1.00 - Parks Maintenance Worker III 1.00 1.00 1.00 1.00 - Parks Maintenance Worker II 2.00 2.00 2.00 2.00 - Parks Maintenance Worker I 5.00 5.00 5.00 6.00 1.00 Park Monitor 0.96 0.96 0.96 1.44 0.48 Total FTEs 10.96 10.96 10.96 12.44 1.48 FY 2021 FY 2022 FY 2022 FY 2023 Variance Expenditures Actual Budget Projected Budget to Budget Personnel 519,602$ 630,281$ 627,364$ 692,147$ 9.8% Operations & Maintenance 607,995 633,750 633,750 665,550 5.0% Capital Outlay 140,767 105,500 105,500 132,000 25.1% Total Expenditures 1,268,364$ 1,369,531$ 1,366,614$ 1,489,697$ 8.8% Town of Oro Valley 2022-2023 Town Manager's Recommended Budget 65 Parks and Recreation – General Fund Recreation & Culture   OVERVIEW The Recreation and Culture Division is a consolidation of the previous Recreation and Cultural Resources Divisions. The Recreation and Culture Division is responsible for providing recreational programs, activities, classes, hikes, and special events for all ages, as well as ball field management and contracts. It is also responsible for management of all town historic and cultural properties, such as Steam Pump Ranch. Additionally, this division is responsible for implementation and follow-through of master plans for town historic sites and cultural resources.   Expenditure and Staffing Changes Operations & Maintenance Operations & Maintenance increased 56.8% due to increase in contract programming and instructors, grant funded outside professional services, and special event expenditures FY 2021 FY 2022 FY 2022 FY 2023 Variance Personnel Actual Budget Projected Budget to Budget Recreation & Culture Manager 1.00 1.00 1.00 1.00 - Assistant Recreation Manager 2.00 2.00 2.00 2.00 - Recreation Leader 1.95 1.95 1.95 1.95 - Recreation Aide 1.75 1.75 1.75 1.75 - Total FTEs 6.70 6.70 6.70 6.70 - FY 2021 FY 2022 FY 2022 FY 2023 Variance Expenditures Actual Budget Projected Budget to Budget Personnel 338,240$ 389,684$ 384,182$ 387,488$ -0.6% Operations & Maintenance 47,029 109,150 109,150 171,150 56.8% Capital 3,501 - - 15,000 100.0% Total Expenditures 388,770$ 498,834$ 493,332$ 573,638$ 15.0% Town of Oro Valley 2022-2023 Town Manager's Recommended Budget 66 Parks and Recreation – General Fund Aquatics   OVERVIEW The Aquatics Division is responsible for the safe operation, maintenance, and management of the Oro Valley Aquatic Center. This facility includes an Olympic-sized swimming pool, a 25-yard pool, a splash pad for children and other family- friendly amenities. The facility serves as one of Southern Arizona's premier, competition-level facilities. Expenditure and Staffing Changes Personnel Personnel increased 7.4% due to new part-time facility attendants and fitness instructors Operations & Maintenance Operations & maintenance increased 18.6% due to increase in utilities, inflationary increases, and contracted programming   FY 2021 FY 2022 FY 2022 FY 2023 Variance Personnel Actual Budget Projected Budget to Budget Aquatics Manager 1.00 1.00 1.00 1.00 - Assistant Aquatics Manager 1.00 1.00 1.00 1.00 - Senior Office Specialist 1.00 1.00 1.00 1.00 - Facility Supervisor 2.25 2.25 2.25 2.25 - Shift Leader 0.96 0.96 0.96 0.96 - Facility Attendant 4.80 4.80 4.80 5.12 0.32 Fitness Instructor - - 0.48 0.96 0.96 Lifeguard/Swim Instructor 9.88 9.88 9.88 9.88 - Total FTEs 20.89 20.89 21.37 22.17 1.28 FY 2021 FY 2022 FY 2022 FY 2023 Variance Expenditures Actual Budget Projected Budget to Budget Personnel 716,851$ 821,566$ 814,739$ 882,552$ 7.4% Operations & Maintenance 355,412 280,050 280,050 332,000 18.6% Capital Outlay 5,526 35,000 35,000 9,000 -74.3% Total Expenditures 1,077,789$ 1,136,616$ 1,129,789$ 1,223,552$ 7.6% Town of Oro Valley 2022-2023 Town Manager's Recommended Budget 67 Community Center Fund __________________________   OVERVIEW This fund is used to manage the operations of the Town’s Community Center, golf, food & beverage, and tennis facilities. Revenues include a dedicated 0.5% sales tax, as well as revenues from golf, tennis, food and beverage, fitness, and recreation activities. Expenditures include personnel, operating and capital improvement costs for the facilities. Golf, as well as food and beverage, are managed by an outside contractor. FY 2021 FY 2022 FY 2022 FY 2023 Variance Personnel Actual Budget Projected Budget to Budget Recreation Facility Manager 1.00 1.00 1.00 1.00 - Assistant Recreation Manager 1.00 1.00 1.00 1.00 - Senior Office Specialist 1.00 1.00 1.00 1.00 - Facility Supervisor 0.75 0.75 0.75 0.75 - Custodian 0.48 0.48 0.48 0.48 - Facility Attendant 4.25 4.25 4.25 4.72 0.47 Aquatics Shift Leader 1.58 1.58 1.58 1.58 - Lifeguard Supervisor - - - 0.75 0.75 Lifeguard 3.65 3.65 3.65 3.65 - Recreation Leader 0.96 0.96 0.96 0.96 - Recreation Aide 4.88 4.88 4.88 4.88 - Fitness Instructor 2.00 2.00 2.00 2.00 - Total FTEs 21.55 21.55 21.55 22.77 1.22 FY 2021 FY 2022 FY 2022 FY 2023 Variance Expenditures Actual Budget Projected Budget to Budget Personnel 711,610$ 875,291$ 891,376$ 916,806$ 4.7% Operations & Maintenance 4,671,485 4,912,818 4,681,634 5,433,918 10.6% Capital Outlay 193,529 132,500 132,500 3,074,700 2220.53% Other Financing Uses 149,206 1,868,519 315,658 2,028,066 0.0% Total Expenditures 5,725,830$ 7,789,128$ 6,021,168$ 11,453,490$ 47.0% FY 2021 FY 2022 FY 2022 FY 2023 Variance Actual Budget Projected Budget to Budget Local Sales Taxes 2,947,420$ 2,932,798$ 3,430,364$ 3,477,236$ 18.6% Charges for Services 4,499,727 4,339,467 5,396,499 4,866,049 12.1% Miscellaneous 136,715 126,000 177,981 162,050 28.6% Total Revenues 7,583,861$ 7,398,265$ 9,004,844$ 8,505,335$ 15.0% Revenue Sources Town of Oro Valley 2022-2023 Town Manager's Recommended Budget 68 Community Center Fund __________________________   Expenditure and Staffing Changes Operations & Maintenance: O&M increased 11% due to costs related to the planned maintenance of the former Vistoso golf course and necessary building repair and maintenance to the Community Center and La Canada golf facility. Capital Outlay Capital Outlay is related to various improvements to the community center and capital projects such as the elevator and ADA improvements, the golf cart path repaving project and the former Vistoso golf course safety improvements. Town of Oro Valley 2022-2023 Town Manager's Recommended Budget 69 Police ______________________________________________     OVERVIEW The men and women of this agency are dedicated to serving this community with integrity, compassion, and fairness. The Oro Valley Police Department continues to make community engagement and community policing a top priority. We strive to be the most respected and highly motivated police agency in Arizona. ADMINISTRATION Chief of Police Deputy Chief of Police COMMUNITY SERVICES PROPERTY/ID RECORDS INVESTIGATIVE SERVICES SCHOOL RESOURCE OFFICERS COMMUNICATIONS CRIMINAL INVESTIGATIONS TASK FORCE COMMUNITY RESOURCES PATROL SERVICES TRAFFIC & SPECIAL OPS. SUPPORT SERVICES FIELD SERVICES PATROL MOTOR/TRAFFICCOMMUNITY ACTION TEAM K-9 UNIT DUI REGIONAL SWAT Town of Oro Valley 2022-2023 Town Manager's Recommended Budget 70 Police ______________________________________________   2021-2022 MAJOR ACCOMPLISHMENTS  Multiple vendors use various matrix criteria to identify “The Safest Cities in Arizona.” Oro Valley was identified as: o #2 by Homesnacks.com o #4 by Safewise.com o #7 by Safeatlast.co  Participated with the Pima Regional Critical Incident Team (PRCIT) consisting of Tucson Police, Pima County Sheriff’s, Marana Police, Sahuarita Police, University of Arizona Police, Tucson Airport Authority, South Tucson Police, Pima Community College Police and Pasqua Yaqui Police Department. PRCIT is an investigative team made up of law enforcement agencies in Pima County that will respond to conduct criminal investigations related to officer-involved shootings, in-custody deaths, and other critical incidents.  Continued to promote traffic safety through various strategies to include Oro Valley’s High Visibility Enforcement (HiVE) deployments and participating in the Southern Arizona DUI Taskforce operations.  Awarded funding in the amount of $133,948 from the Governor’s Office of Highway Safety for overtime and equipment, to include the purchase of a Ford Explorer to support DUI enforcement, hazardous moving violation enforcement and participation during Southern Arizona DUI Taskforce Operations.  Awarded funding in the amount of $159,070 from Operation Stonegarden for equipment, overtime, and mileage to combat illegal contraband / human smuggling and apprehend terrorists entering the country.  AZ CART invited the Town of Oro Valley to participate in the Arizona Child Abduction Response Team Intergovernmental Agreement. AZ CART provides a pool of specialized investigators which are available to focus dedicated and intensive investigative, and general law enforcement efforts primarily with regard to cases involving abducted children. OVPD serves as the southern AZ CART coordinator.  Maintained consistent level of service to the community in the midst of challenging Covid-19 circumstances and impacts  Implemented a three-prong approach (mental, physical, and nutrition) to the Department’s Health & Wellness program. The program allows working out on duty, education on nutrition and Blue Key project, which is anonymous counseling.  Completed 1,000 hours of supervisor management training to strengthen succession planning in the department.  Completed more than 3300 hours of Advanced Officer Training. Officers were trained on CPR, Firearms, Drivers Training, Defensive Tactics, Red Dot System, fire extinguisher and building searches.  OVPD members have instructed 11 Active Shooter trainings to the community. Town of Oro Valley 2022-2023 Town Manager's Recommended Budget 71 Police ______________________________________________   FY 2021 FY 2023 Actual Budget Projected Budget 136.13 134.73 132.73 138.73 FY 2021 FY 2023 Variance Actual Budget Projected Budget to Budget Administration 1,717,569$ 2,228,353$ 2,201,872$ 2,436,930$ 9.4% Support Services 6,976,312 7,246,546 6,864,758 7,928,347 9.4% Field Services 7,908,215 8,696,101 8,143,138 8,782,896 1.0% 16,602,096$ 18,171,000$ 17,209,768$ 19,148,173$ 5.4% FY 2021 FY 2023 Variance Actual Budget Projected Budget to Budget Federal Grants 381,218$ 496,895$ 690,448$ 380,000$ -23.5% Intergovernmental 65,000 65,000 65,000 65,000 0.0% State Grants 214,154 75,000 75,000 75,000 0.0% Seizures & Forfeitures 100,394 327,000 22,801 102,000 -68.8% Fingerprinting 1,650 4,000 8,000 9,000 125.0% Report Copying 5,652 6,500 6,000 6,500 0.0% Impound Processing 22,950 15,000 19,000 19,000 26.7% Other 15,071 8,000 4,000 5,000 -37.5% 806,089$ 997,395$ 890,249$ 661,500$ -33.7% FY 2022 Total FTEs FY 2022 Expenditures by Division FY 2022 Revenue Sources Town of Oro Valley 2022-2023 Town Manager's Recommended Budget 72 Police - Administration ____________________________   OVERVIEW The Oro Valley Police Department (OVPD) embodies a community policing philosophy and guides all staff toward embracing this throughout the entire organization. Personnel are trained to deliver a high level of service that meet our community’s expectations. OVPD allows our staff to uphold professional certifications and focuses on developing the skills, abilities, knowledge, and talents to maintain exceptional services. OVPD thoroughly investigates all complaints against its employees in order to preserve public confidence in our willingness to oversee and control the actions of our employees. In Oro Valley, community policing is considered one of our pillars that underlies all programs and initiatives. Expenditure and Staffing Changes Personnel Personnel increased 5% due to normal merit and step increases. A new public information officer in FY 2023 will replace the current acting public information sergeant. Operations & Maintenance: O&M budget increased 15% due to insurance costs and department wide training Capital Outlay: Capital outlay is related to furniture needs FY 2021 FY 2022 FY 2022 FY 2023 Variance Personnel Actual Budget Projected Budget to Budget Police Chief 1.00 1.00 1.00 1.00 - Deputy Police Chief 1.00 1.00 1.00 1.00 - Lieutenant 1.00 1.00 1.00 1.00 - Sergeant 2.00 2.00 2.00 2.00 - Public Info. Officer - Sergeant 1.00 1.00 - - (1.00) Public Information Officer - - 1.00 1.00 1.00 Training Officer 1.00 1.00 1.00 1.00 - Police Workforce Specialist - 0.48 - 0.48 - Reserve Officer 0.48 - 0.48 - - Administrative Services Manager 1.00 1.00 1.00 1.00 - Senior Office Specialist - - 1.00 1.00 1.00 Total FTEs 8.48 8.48 9.48 9.48 1.00 FY 2021 FY 2022 FY 2022 FY 2023 Variance Expenditures Actual Budget Projected Budget to Budget Personnel 1,330,566$ 1,433,966$ 1,434,908$ 1,506,343$ 5.0% Operations & Maintenance 387,003 794,387 766,964 915,587 15.3% Capital Outlay - - - 15,000 100.0% Total Expenditures 1,717,569$ 2,228,353$ 2,201,872$ 2,436,930$ 9.4% Town of Oro Valley 2022-2023 Town Manager's Recommended Budget 73 Police – Support Services __________________________   OVERVIEW The Support Services Division is comprised of Criminal Investigations Unit, Community Action Team, Crime Analyst, Task Force Operations, Property and I.D., School Resource Officers, Community Resources, Citizen Volunteer Assistants Program, Records, and the Communications Bureau. Support Services focuses on and analyzes crime trends, efficient resource allocation and technological solutions. Expenditure and Staffing Changes Personnel: Personnel increased 9% due to a new telecommunicator position in FY 2023 as well as six positions shifted from Field services and one from Administration Operations & Maintenance: O&M increased 31% due to increased equipment needs FY 2021 FY 2022 FY 2022 FY 2023 Variance Personnel Actual Budget Projected Budget to Budget Commander 1.00 1.00 1.00 1.00 - Lieutenant 2.00 2.00 2.00 2.00 - Sergeant 3.00 4.00 4.00 4.00 - School Resource Officer 9.00 7.00 7.00 7.00 - Detective 7.00 7.00 8.00 9.00 2.00 Lead Officer - 1.00 1.00 1.00 - Officer 6.00 5.00 11.00 11.00 6.00 Officer/Special Events Coord.1.00 1.00 - - (1.00) Telecommunications Manager 1.00 1.00 1.00 1.00 - Telecommunications Supervisor 2.00 2.00 2.00 2.00 - Telecommunicator 10.00 11.00 10.00 12.00 1.00 Records Supervisor 1.00 1.00 1.00 1.00 - Records Specialist 5.00 5.00 5.00 5.00 - Office Assistant 1.25 1.25 1.25 1.25 - Crime Analyst 1.00 1.00 1.00 1.00 - Crime Scene Tech Supervisor 1.00 1.00 1.00 1.00 - Crime Scene Technician 2.00 3.00 3.00 3.00 - Senior Office Specialist 1.00 1.00 1.00 1.00 - Reserve Officer 0.96 - - - - Total FTEs 55.21 55.25 60.25 63.25 8.00 FY 2021 FY 2022 FY 2022 FY 2023 Variance Expenditures Actual Budget Projected Budget to Budget Personnel 6,419,930$ 6,940,805$ 6,559,017$ 7,535,040$ 8.6% Operations & Maintenance 338,875 265,741 265,741 348,307 31.1% Capital Outlay 217,507 40,000 40,000 45,000 12.5% Total Expenditures 6,976,312$ 7,246,546$ 6,864,758$ 7,928,347$ 9.4% Town of Oro Valley 2022-2023 Town Manager's Recommended Budget 74 Police – Field Services _____________________________   OVERVIEW The Field Services Division is comprised of Patrol, Traffic Unit, K-9 and Pima Regional assignments. Field Services is responsible for the uniformed patrol functions of the Department, including 24-hour response to the initial investigation of crimes and incidents, traffic enforcement and control, crash investigations, community policing programs and specialized operations such as SWAT and K-9. Expenditure and Staffing Changes Operations & Maintenance: O&M budget increased 20% due to uniform and safety equipment costs Capital Outlay: Capital outlay is related to K9 equipment expenditures   FY 2021 FY 2022 FY 2022 FY 2023 Variance Personnel Actual Budget Projected Budget to Budget Commander 1.00 1.00 1.00 1.00 - Lieutenant 2.00 2.00 2.00 2.00 - Sergeant 8.00 7.00 7.00 7.00 - Lead Officer 9.00 7.00 6.00 6.00 (1.00) K-9 Officer 2.00 2.00 2.00 2.00 - Traffic Investigator 1.00 1.00 1.00 1.00 - DUI Officer 2.00 2.00 1.00 1.00 (1.00) Motorcycle Officer 3.00 4.00 1.00 1.00 (3.00) Officer 41.00 43.00 41.00 44.00 1.00 Reserve Officer 1.44 - - - - Senior Office Specialist 2.00 2.00 1.00 1.00 (1.00) Total FTEs 72.44 71.00 63.00 66.00 (5.00) FY 2021 FY 2022 FY 2022 FY 2023 Variance Expenditures Actual Budget Projected Budget to Budget Personnel 7,882,198$ 8,627,421$ 8,074,458$ 8,689,996$ 0.7% Operations & Maintenance 24,538 68,680 68,680 82,900 20.7% Capital Outlay 1,479 - - 10,000 100.0% Total Expenditures 7,908,215$ 8,696,101$ 8,143,138$ 8,782,896$ 1.0% Town of Oro Valley 2022-2023 Town Manager's Recommended Budget 75 Public Works   OVERVIEW The Public Works Department is organized into five functional areas: Administration, Highway Fund, Fleet and Facility Management, Stormwater, and Transit. Administration manages all the department’s activities, non-fund specific capital projects and capital project management/support to other departments as needed. Highway Fund, which includes Transportation Engineering and Street Maintenance divisions, are responsible for road related construction projects as well as routine maintenance. Fleet and Facility Management is responsible for Town facility maintenance, including repairs and minor renovations, and fleet maintenance for vehicles and equipment. Stormwater is responsible for management and operation of the Town's Stormwater Utility. Transit is responsible for management and operation of the Sun Shuttle Dial-a-Ride public transit service under contract with the Regional Transportation Authority (RTA).       PUBLIC WORKS DEPARTMENT Department Director Assistant Director ADMINISTRATION HIGHWAY FUND STORMWATER UTILITY STREET MAINTENANCE TRANSPORTATION ENGINEERING TRANSITFLEET AND FACILITY MANAGEMENT Town of Oro Valley 2022-2023 Town Manager's Recommended Budget 76 Public Works                FY 2021 FY 2023 Actual Budget Projected Budget 70.89 71.37 71.37 75.71 FY 2021 FY 2023 Variance Actual Budget Projected Budget to Budget General/Capital Fund 2,802,584$ 5,579,237$ 5,657,792$ 6,229,858$ 11.7% Highway Fund 3,352,816 4,090,525 4,069,678 4,636,171 13.3% Stormwater Utility Fund 1,199,472 2,128,816 1,318,337 2,090,649 -1.8% 7,354,872$ 11,798,578$ 11,045,807$ 12,956,678$ 9.8% ** Does not include the PAG/RTA Fund or the Roadway Impact Fee Fund FY 2021 FY 2023 Variance Actual Budget Projected Budget to Budget General Fund 1,260,543$ 1,238,910$ 1,241,500$ 1,610,000$ 30.0% Highway Fund 3,776,832 3,647,922 3,913,069 3,935,191 7.9% Stormwater Utility Fund 1,635,969 1,741,600 1,495,036 1,494,000 -14.2% 6,673,344$ 6,628,432$ 6,649,605$ 7,039,191$ 6.2% ** Does not include the PAG/RTA Fund or the Roadway Impact Fee Fund FY 2022 Total FTEs FY 2022 Expenditures by Fund FY 2022 Revenues by Fund Divisions/programs supported by the General Fund include Fleet Maintenance, Facilities Maintenance, Transit and Administration. Capital Fund supports capacity for two temporary CIP Project Manager positions. ** ** Town of Oro Valley 2022-2023 Town Manager's Recommended Budget 77 Public Works – Administration   OVERVIEW Administration is responsible for department management and oversight, funding and program implementation, contract management, and obtaining reimbursement of outside funding for projects from Pima Association of Governments, the Arizona Department of Transportation and the Federal Emergency Management Agency. Administrative staff responsibilities include clerical duties, maintaining the public works department website, records management, and logistical support. In addition, streets maintenance operations staff are located within Administration and funded by the General Fund to provide working flexibility for involvement with non-highway related projects, such as the Naranja Park playground construction. 2021-2022 MAJOR ACCOMPLISHMENTS  Provided oversight, project management and administration to over 80 projects and YTD 7,691 service tasks and plans. This includes project management of physical building projects such as the renovation of the 680 Calle Concordia office administration building and garage expansion. It also includes managing the $25M parks bond projects and the Steam Pump Ranch historic renovation construction.  Standard operating procedures (SOP) analysis and updates o Developed and implemented SOP 01-13 for standardization of public work files and naming conventions o Development and implementation of SOP 01-15 for implementation of service request procedures within our Operating Management System o Updated and improved our SOP 30-01 on-call facilities to improve process and deliver of service during non-regular work hours o Updated and implemented 80-14 SOP for time off request within our transit division to improve Town wide notification of related time off events     Town of Oro Valley 2022-2023 Town Manager's Recommended Budget 78 Public Works – Administration       Expenditure and Staffing Changes Personnel Personnel budget increased 15% due to moving a project manager position from Stormwater to allow flexibility to manage non-Stormwater projects Operations & Maintenance O&M budget increased 11% principally due to insurance increases   FY 2021 FY 2022 FY 2022 FY 2023 Variance Personnel Actual Budget Projected Budget to Budget PW Director & Town Engineer 1.00 1.00 1.00 1.00 - Assistant Public Works Director 0.75 0.75 0.75 0.75 - Fllet & Facilities Manager 1.00 1.00 1.00 1.00 Streets & Drainage Op. Super.1.00 1.00 1.00 1.00 - Streets & Drainage Crew Leader 2.00 2.00 2.00 2.00 - CIP Project Manager - 2.00 2.00 3.00 1.00 Heavy Equipment Operator II 5.00 5.00 5.00 5.00 - Administrative Coordinator 1.00 1.00 1.00 1.00 - Office Specialist 1.00 1.00 1.00 1.00 - Total FTEs 12.75 14.75 14.75 15.75 1.00 FY 2021 FY 2022 FY 2022 FY 2023 Variance Expenditures Actual Budget Projected Budget to Budget Personnel 1,152,453$ 1,431,879$ 1,328,573$ 1,643,828$ 14.8% Operations & Maintenance 112,810 185,456 185,456 206,342 11.3% Total Expenditures 1,265,263$ 1,617,335$ 1,514,029$ 1,850,170$ 14.4% Town of Oro Valley 2022-2023 Town Manager's Recommended Budget 79 Public Works – Fleet & Facility Management _____   OVERVIEW Fleet & Facility Maintenance are programs within the Fleet & Facilities Management Division of the Public Works Department. Facility Maintenance is responsible for building maintenance repairs, energy management, heating, ventilation and air conditioning services, minor renovations, project management, and contract administration for all the Town’s buildings and facilities. Fleet Maintenance is responsible for preventative maintenance and repair of the Town's fleet of vehicles and heavy equipment. This is accomplished through the combination of service contracts and staff. Fleet costs for the Town's Water Utility and Stormwater Utility are budgeted in the Enterprise Funds. 2021-2022 MAJOR ACCOMPLISHMENTS Fleet and Facilities expects to have completed over 5,000 tasks and projects by the end of the fiscal year. Notable tasks completed include: 500 Magee Police Substation   Addition of automation and remote monitoring hardware and connections for the HVAC system    680 Calle Concordia   Design and construction of the maintenance facility 3rd bay and offices and the office building interior remodel   Exterior Paint and stucco repair   Replacement of ¾” steel water line with 2” PEX, from Calle Concordia to the office building    Aquatic Center (OVAC)   Installed an entry gate lockdown button for front desk staff to secure the facility    Community and Recreation Center (CRC)   Replaced two deep fryer units in the Overlook restaurant kitchen  Installed temporary flooring to support kitchen operations until the floor can be replaced in FY 22/23  Upgraded an existing walk-in cooler with modern refrigeration components  Replaced two water fountains in the fitness area with newer fountains that have a bottle filler station  Replaced the rear entrance doors of the fitness facility and added badge reader access control  Replaced the lighting control module in the overlook restaurant  Replacement of the heater booster for the dishwasher  Repair of the vandalized sauna and rebuilt the heater    Municipal Operations Center (MOC)   Exterior painting and stucco repair  Shoring and leveling of Water Utility modular building floors and adjustment of interior walls and doors  Install of Ice machine for transit division    Pusch Ridge Tennis/Golf Facility   Replaced the rear entrance door of the tennis shop and repaired the rear deck and skirting  Renovated the golf shop interior to support reopening of the facility    Tangerine Police Substation   Replaced carpeting in two offices and painted interior walls throughout Town of Oro Valley 2022-2023 Town Manager's Recommended Budget 80 Public Works – Fleet & Facility Management _____   2021-2022 MAJOR ACCOMPLISHMENTS (continued)  Town Hall   Exterior window and door security screen install  Converted light timers to photo electric cells   addition of an HVAC balancing thermostat to refine control of temperatures in the administrative offices    Exterior painting and stucco repair at the Water Utility building, CED/Public Works building and the Courts building   Interior lighting upgraded to LED, interior painting of doors and frames on the west side of the facility   Interior Painting, booking area flooring to match the rest of the facility, north lobby flooring changed to polished cement, front lobby ADA improvements, front lobby restrooms renovation, replacement and expansion of kitchenette/breakroom cabinetry at the Police headquarters    Water Reclamation Facility  Replaced two pumps in the sanitary sewer lift station Fleet Division  Establishment of Fleet Division priorities for fleet vehicle maintenance: safety and compliance, operational readiness, reliability, efficiency, appearance Expenditure and Staffing Changes Personnel Personnel increased 7% due to the addition of a new Fleet Maintenance Mechanic III position for FY 2023 Capital Outlay Capital outlay reflects projects associated with the Town’s facility maintenance program   FY 2021 FY 2022 FY 2022 FY 2023 Variance Personnel Actual Budget Projected Budget to Budget Facilities Maintenance Super. 1.00 1.00 1.00 1.00 - Facilities Maint Technician 3.00 3.00 3.00 3.00 - Fllet Maint Supvervisor 1.00 1.00 1.00 1.00 - Fleet Maint Mechanic III 1.00 1.00 2.00 3.00 2.00 Fleet Control Specialist 1.00 1.00 - - (1.00) Fleet Attendant - 1.00 1.00 1.00 - Total FTEs 7.00 8.00 8.00 9.00 1.00 FY 2021 FY 2022 FY 2022 FY 2023 Variance Expenditures Actual Budget Projected Budget to Budget Personnel 389,767$ 626,397$ 580,316$ 667,302$ 6.5% Operations & Maintenance 1,478,396 2,048,750 2,199,400 2,043,700 -0.2% Capital Outlay 3,313 - 33,390 170,000 0.0% Total Expenditures 1,871,476$ 2,675,147$ 2,813,106$ 2,881,002$ 7.7% Town of Oro Valley 2022-2023 Town Manager's Recommended Budget 81 Public Works – Highway Fund   OVERVIEW Within the Highway Fund, Public Works is responsible for managing the design and construction of roadway projects, issuing right-of-way permits, developing annual and long-term schedules for surface treatments on town streets, as well as maintaining and operating the Town's traffic signs, striping, intersection signals and lights. In addition, Public Works is responsible for street maintenance, including landscape maintenance, pavement repair, storm readiness and clean-up. The personnel for this work responsibility is located within Administration, however all materials, equipment and consumables are located within this fund/area. 2021-2022 MAJOR ACCOMPLISHMENTS Between transportation and streets maintenance, over 2,370 tasks were completed, including:  Lambert Lane Paved Shoulders, MUP, and Overlay from West Lambert Park to La Cholla Blvd.  Moore Road Overlay - La Cañada Drive to La Cholla Blvd  Started First Ave Bridge Deck Rehabilitation   Mercado De Rio sidewalk connectivity between Trail Head Parking Lot and CDO Lineal Path  Annual main line striping.  Pavement Management: applied various pavement preservation treatments to 79 lane miles  Overall condition index (OCI) of 77.  Annual neighborhood and arterial sweeping.  Completion of more than 35 pavement repairs  Completion of more than 50 sidewalk repairs  Over 20 miles of crack sealing surface treatments  Maintained essential service levels for street repair through the continued COVID-19 pandemic with loss of two Arizona Department of Corrections crews, equivalent to 8 full-time employees.  Addressed all non-ADA compliant parking signs within the Town’s parking lots. Town of Oro Valley 2022-2023 Town Manager's Recommended Budget 82 Public Works – Highway Fund   FY 2021 FY 2023 Actual Budget Projected Budget 27.75 12.00 12.00 12.00 FY 2021 FY 2023 Variance Actual Budget Projected Budget to Budget Transportation Engineering 3,046,525 3,766,525 3,745,678 4,176,071 10.9% Street Maintenance 306,291 324,000 324,000 460,100 42.0% 3,352,816$ 4,090,525$ 4,069,678$ 4,636,171$ 13.3% FY 2021 FY 2023 Variance Actual Budget Projected Budget to Budget HURF Gas Taxes 3,714,572$ 3,614,922$ 3,870,000$ 3,899,191$ 7.9% Licenses and Permits 37,108 25,000 30,000 25,000 0.0% State Grants 16,588 - - - 0.0% Interest Income 1,022 6,000 8,000 8,000 33.3% Miscellaneous 7,542 2,000 5,069 3,000 50.0% 3,776,832$ 3,647,922$ 3,913,069$ 3,935,191$ 7.9% Revenue Sources FY 2022 Total FTEs FY 2022 Expenditures by Program FY 2022 Town of Oro Valley 2022-2023 Town Manager's Recommended Budget 83 Public Works – Transportation Engineering   OVERVIEW Transportation Engineering is responsible for managing the design and construction of roadway projects. While most large projects are designed by consultants, Public Works has a small, in-house design team for smaller projects. Transportation Engineering also issues permits for all activity within the Town's right-of-way, develops annual and long- term schedules for surface treatments on Town streets, and maintains and operates the Town's traffic signals, roadway signs and pavement markings. Expenditure and Staffing Changes Operations & Maintenance O&M costs increased by 27% due to increased field supplies and street striping Capital Outlay Capital costs increased 16% due to an increased pavement preservation program for FY2023 FY 2021 FY 2022 FY 2022 FY 2023 Variance Personnel Actual Budget Projected Budget to Budget Engineering Division Manager 1.00 1.00 1.00 1.00 - Senior Civil Engineer 1.00 1.00 1.00 1.00 - Senior Civil Engineer Tech 3.00 3.00 3.00 3.00 - Civil Engineer/Project Manager 1.00 1.00 1.00 1.00 - Civil Engineer Designer 1.00 1.00 1.00 1.00 - Senior Traffic Technician 1.00 1.00 1.00 1.00 - Traffic Technician 1.00 1.00 1.00 1.00 - Traffic Signs/Markings Crew Leader 1.00 1.00 1.00 1.00 - Traffic Signs/Markings Worker 1.00 1.00 1.00 1.00 - Construction Inspector 3.00 - - - - Senior Office Specialist 1.00 1.00 1.00 1.00 - Total FTEs 15.00 12.00 12.00 12.00 - FY 2021 FY 2022 FY 2022 FY 2023 Variance Expenditures Actual Budget Projected Budget to Budget Personnel 1,203,687$ 1,208,870$ 1,188,023$ 1,186,556$ -1.8% Operations & Maintenance 293,486 292,655 292,655 370,515 26.6% Capital Outlay 1,549,352 2,265,000 2,265,000 2,619,000 15.6% Total Expenditures 3,046,525$ 3,766,525$ 3,745,678$ 4,176,071$ 10.9% Town of Oro Valley 2022-2023 Town Manager's Recommended Budget 84 Public Works – Street Maintenance   OVERVIEW Street maintenance is responsible for maintaining the Town's streets and drainage ways. Personnel associated with this division are budgeted in administration. Expenditure and Staffing Changes Operations & Maintenance O&M increased by 40% due to increased street maintenance materials costs Capital Outlay Capital costs are to install lockers for heavy equipment operators FY 2021 FY 2022 FY 2022 FY 2023 Variance Expenditures Actual Budget Projected Budget to Budget Operations & Maintenance 298,030 324,000 324,000 453,100 39.8% Capital Outlay 8,261 - - 7,000 100.0% Total Expenditures 306,291$ 324,000$ 324,000$ 460,100$ 42.0% Town of Oro Valley 2022-2023 Town Manager's Recommended Budget 85 Public Works – Transit Services ____________________   OVERVIEW Transit Services facilitates partnerships and coordinates transportation services among public and private agencies, serving Oro Valley to improve mobility for community residents. Transit Services has developed a long-term partnership with the Regional Transportation Authority (RTA) to improve the transportation network and maximize transportation options available to the community at the lowest possible cost. Transit Services is proud to operate the regional Sun Shuttle Dial-a-Ride service under contract with the RTA and is committed to providing high quality transit alternatives and planning for the future. 2021-2022 MAJOR ACCOMPLISHMENTS  Over 50,000 ridership expected by year’s end  Successfully increased transit service ridership to pre COVID-19 levels.    Developed and implemented service plans to deal with operator shortages and continued impacts of COVID on staffing levels.   Renegotiated new Intergovernmental Agreement with the Regional Transportation Authority to cover increasing costs and driver wages. New agreement will last through 6/30/2026, the expiration date of the current RTA plan.    The Town of Oro Valley’s Transit division presented their “accident prevention training” to the Arizona Transit Association & Arizona Department of Transportation Conference in April.  With the support of the Innovation & Technology Department, began the plan to improve passenger on-line capabilities with the scheduled acquisition of the Passenger Portal module of TripSpark. Town of Oro Valley 2022-2023 Town Manager's Recommended Budget 86 Public Works – Transit Services ____________________         Expenditure and Staffing Changes Personnel Personnel increased 18.1% due to increased hours and wage rate increases for transit drivers per the intergovernmental agreement (IGA) with the RTA   FY 2021 FY 2022 FY 2022 FY 2023 Variance Personnel Actual Budget Projected Budget to Budget Senior Transit Crew Leader 1.00 1.00 1.00 1.00 - Transit Crew Leader 1.00 1.00 1.00 1.00 - Transit Specialist 1.11 1.11 1.11 1.10 (0.01) Dispatcher 2.11 2.11 2.11 2.58 0.47 Driver 19.71 19.71 19.71 22.60 2.89 Office Assistant 0.96 0.96 0.96 0.95 (0.01) Total FTEs 25.89 25.89 25.89 29.23 3.34 FY 2021 FY 2022 FY 2022 FY 2023 Variance Expenditures Actual Budget Projected Budget to Budget Personnel 900,015$ 1,184,386$ 1,231,009$ 1,398,630$ 18.1% Operations & Maintenance 30,671 75,569 75,569 78,256 3.6% Capital Outlay 422 26,800 24,079 21,800 -18.7% Total Expenditures 931,108$ 1,286,755$ 1,330,657$ 1,498,686$ 16.5% FY 2021 FY 2022 FY 2022 FY 2023 Variance Actual Budget Projected Budget to Budget RTA Reimbursement 1,150,233$ 1,166,500$ 1,241,500$ 1,530,000$ 31.2% Farebox 110,310 72,410 - 80,000 10.5% Total Revenues 1,260,543$ 1,238,910$ 1,241,500$ 1,610,000$ 30.0% Revenue Sources Town of Oro Valley 2022-2023 Town Manager's Recommended Budget 87 Public Works - Stormwater Utility   OVERVIEW The Stormwater Utility enterprise is a division within the Public Works Department. The Stormwater Utility is responsible for federally mandated compliance with the Clean Water Act, meeting all surface water flow quality and quantity issues, including the Town's stormwater management plan, floodplain and erosion hazard management and support of all other Town programs that are impacted by storm events. The Stormwater Utility also coordinates with federal, state and local government agencies with regard to floodplain issues and storm preparedness of this community. 2021-2022 MAJOR ACCOMPLISHMENTS  Filed Notice of Intent from the Arizona Department of Environmental Quality for new five-year Phase 2 Municipal Separate Storm Sewer System (MS4) permit for the Town of Oro Valley. Modifications to the Oro Valley Stormwater Management Plan to meet the new permit requirements are underway.    Updated Town Code Chapter 17, Floodplain and Erosion Hazard Management to reflect changes to the Arizona State Floodplain Model Ordinance and changes to the Oro Valley Drainage Criteria Manual.    Launched updates to the 2010 Oro Valley Drainage Criteria Manual to reflect modeling and techniques used in the Tucson Region, providing a level of consistency for our customers.   Town of Oro Valley 2022-2023 Town Manager's Recommended Budget 88 Public Works - Stormwater Utility           Expenditure and Staffing Changes Operations & Maintenance: O&M decreased 13% due to decrease in outside professional services in FY 2023   FY 2021 FY 2022 FY 2022 FY 2023 Variance Personnel Actual Budget Projected Budget to Budget Assistant Public Works Director 0.25 0.25 0.25 0.25 - Stormwater Utility Division Mgr 1.00 1.00 1.00 1.00 - Senior Stormwater Engineer 1.00 1.00 1.00 1.00 - Streets & Drainage Op. Supervisor 1.00 1.00 1.00 1.00 - Stormwater Utility Project Manager 1.00 1.00 1.00 - (1.00) Stormwater Inspector Designer 1.00 1.00 1.00 1.00 - Stormwater Utility Analyst 1.00 1.00 1.00 1.00 - Heavy Equipment Operator II 3.00 3.00 3.00 3.00 - Senior Office Specialist 1.00 1.00 1.00 1.00 - Stormwater Intern - 0.48 0.48 0.48 - Total FTEs 10.25 10.73 10.73 9.73 (1.00) FY 2021 FY 2022 FY 2022 FY 2023 Variance Expenditures Actual Budget Projected Budget to Budget Personnel 809,684$ 830,507$ 859,402$ 820,291$ -1.2% Operations & Maintenance 388,209 440,935 440,935 385,845 -12.5% Capital Outlay 1,579 857,374 18,000 884,513 3.2% Total Expenditures 1,199,472$ 2,128,816$ 1,318,337$ 2,090,649$ -1.8% FY 2021 FY 2022 FY 2022 FY 2023 Variance Actual Budget Projected Budget to Budget Charges for Services 1,473,813$ 1,440,100$ 1,476,130$ 1,492,500$ 3.6% State Grants 152,152 300,000 16,906 - 0.0% Miscellaneous 8,734 - - - 0.0% Interest Income 1,270 1,500 2,000 1,500 0.0% Total Revenues 1,635,969$ 1,741,600$ 1,495,036$ 1,494,000$ -14.2% Revenue Sources Town of Oro Valley 2022-2023 Town Manager's Recommended Budget 89 Water Utility _______________________________________       OVERVIEW The primary function of the Water Utility is the protection of public health and safety through the production and efficient delivery of water that meets and/or exceeds water quality standards. Responsibilities include: regulatory compliance, customer service, promoting water conservation, generating customer billings, collection of utility revenues, efficient use of available water resources, planning for future water resource requirements, and coordination with the development community. 2021-2022 MAJOR ACCOMPLISHMENTS  Delivered a combined total of 3.13 billion gallons of water to customers.  48% of the total deliveries were water supplies other than groundwater, including: o 870 million gallons of CAP water o 628 million gallons of reclaimed water o 1.63 billion gallons of groundwater  Utilized full allocation of 10,305 acre feet of CAP water for potable use and recharge.  Took 2,704 water quality samples with all results meeting regulatory requirements.  Added 150 new metered connections for an estimated total customer base of 21,116 connections.  Developed and delivered four quarterly customer newsletters titled Behind the Meter.  Completed the Potable Water Advanced Metering Infrastructure Data Analytics Evaluation Model which will allow the utility to better measure and monitor conservation initiatives to improve outcomes in the future.  The WaterSmart customer portal has 6,700 registered users and has provided over 8,000 leak alerts directly to our customers.  Rehabilitated three groundwater production wells.  Implemented a new Customer Information System.  Began construction of the partnered Northwest Recharge Recovery and Delivery System (NWRRDS)   Completed self-performed design, permitting and construction of water system improvements for Steam Pump Ranch and Naranja Park.  WATER UTILITY DIRECTOR ADMINISTRATION ENGINEERING & PLANNING OPERATIONS Town of Oro Valley 2022-2023 Town Manager's Recommended Budget 90 Water Utility _______________________________________   FY 2021 FY 2023 Actual Budget Projected Budget 40.48 40.48 40.48 40.48 FY 2021 FY 2023 Variance Actual Budget Projected Budget to Budget Administration 14,881,856$ 16,730,679$ 16,730,679$ 20,299,126$ 21.3% Engineering and Planning 770,136 1,874,737 1,874,737 1,910,289 1.9% Operations 5,136,559 5,685,624 5,577,474 6,297,418 10.8% 20,788,551$ 24,291,040$ 24,182,890$ 28,506,833$ 17.4% FY 2021 FY 2023 Variance Actual Budget Projected Budget to Budget Charges for Services 3,489,921$ 3,255,000$ 3,112,299$ 3,224,000$ -1.0% Interest Income (14,911) 100,000 40,000 100,000 0.0% Miscellaneous 44,328 - 663,389 - 0.0% Water Sales 14,679,073 13,974,000 13,913,500 15,383,000 10.1% 18,198,411$ 17,329,000$ 17,729,188$ 18,707,000$ 8.0% FY 2022 Total FTEs FY 2022 Expenditures by Division FY 2022 Revenue Sources Town of Oro Valley 2022-2023 Town Manager's Recommended Budget 91 Water Utility – Administration _____________________   OVERVIEW The Administration Division is responsible for the overall management of the Utility, including customer service, water utility billings, collection of water revenues, administration of the department's budget, implementation of water rates, fees and charges, water conservation, water resource planning and strategic planning. Expenditure and Staffing Changes Operations & Maintenance O&M costs increased 11% primarily due to Town-wide indirect cost allocations of supporting services Other Financing Uses Other Financing Uses increased 171% due to budgeted transfers between the Water and Water Impact Fee funds FY 2021 FY 2022 FY 2022 FY 2023 Variance Personnel Actual Budget Projected Budget to Budget Water Utility Director 1.00 1.00 1.00 1.00 - Water Utility Administrator 1.00 1.00 1.00 1.00 - Senior Office Specialist 1.00 1.00 1.00 1.00 - Water Utility Analyst 1.00 1.00 1.00 1.00 - Customer Service Specialist 4.00 4.00 4.00 4.00 - Customer Service Representative 0.48 0.48 0.48 0.48 - Water Conservation Specialist 1.00 1.00 1.00 1.00 - Total FTEs 9.48 9.48 9.48 9.48 - FY 2021 FY 2022 FY 2022 FY 2023 Variance Expenditures Actual Budget Projected Budget to Budget Personnel 844,638$ 866,369$ 866,369$ 879,373$ 1.5% Operations & Maintenance 8,088,543 9,018,999 9,018,999 9,975,418 10.6% Capital Outlay 1,323 150,000 150,000 18,640 0.0% Debt Service 4,814,336 4,932,909 4,932,909 4,643,255 -5.9% Other Financing Uses 1,133,016 1,762,402 1,762,402 4,782,440 171.4% Total Expenditures 14,881,856$ 16,730,679$ 16,730,679$ 20,299,126$ 21.3% Town of Oro Valley 2022-2023 Town Manager's Recommended Budget 92 Water Utility – Engineering and Planning _________   OVERVIEW The Engineering and Planning Division is responsible for providing engineering support for the Operations Division as well as managing the capital improvement program. Additional responsibilities include new development plan review, construction inspection and regulatory compliance, and the maintenance and updating of GIS.   Expenditure and Staffing Changes Personnel Personnel increased 5.1% due to normal merit increases and the reallocation of a vacant position to a project manager position Operations & Maintenance O&M costs decreased 45.6% as Town-wide indirect cost allocations of supporting services were shifted to administration Capital Outlay Capital increased 9.5% due to planned CIP projects for FY 2023   FY 2021 FY 2022 FY 2022 FY 2023 Variance Personnel Actual Budget Projected Budget to Budget Engineering & Planning Manager 1.00 1.00 1.00 1.00 - Project Manager 1.00 - 1.00 1.00 1.00 Senior Engineering Associate - 2.00 1.00 1.00 (1.00) Engineering Design Reviewer 1.00 - - - - Construction Inspector 2.00 2.00 2.00 2.00 - Civil Engineering Technician 1.00 1.00 1.00 1.00 - Total FTEs 6.00 6.00 6.00 6.00 - FY 2021 FY 2022 FY 2022 FY 2023 Variance Expenditures Actual Budget Projected Budget to Budget Personnel 505,906$ 615,286$ 615,286$ 646,372$ 5.1% Operations & Maintenance 162,735 209,451 209,451 113,917 -45.6% Capital Outlay 101,495 1,050,000 1,050,000 1,150,000 9.5% Total Expenditures 770,136$ 1,874,737$ 1,874,737$ 1,910,289$ 1.9% Town of Oro Valley 2022-2023 Town Manager's Recommended Budget 93 Water Utility – Operations _________________________   OVERVIEW The Operations Division oversees the operation and maintenance of all potable and reclaimed water production and distribution facilities, to include wells, boosters, reservoirs, metering stations, water mains, fire hydrants and valves. Additional responsibilities include meter installations, commercial meter testing, water quality testing, backflow prevention, construction of minor water main projects and oversight of the Advanced Metering Infrastructure system, disinfection systems and security systems. Expenditure and Staffing Changes Personnel Personnel decreased 3.8% due to turnover of the lead water utility operator position Operations & Maintenance O&M costs increased 11.5% due to CAP water delivery and wheeling costs, and capacity for emergency repair and maintenance Capital Outlay Capital increased 64.2% due to the purchase of a valve truck as well as increased meter purchases FY 2021 FY 2022 FY 2022 FY 2023 Variance Personnel Actual Budget Projected Budget to Budget Water Operations Manager 1.00 1.00 1.00 1.00 - Water Distribution Superintendent 1.00 1.00 1.00 1.00 - Water Control Systems Super.1.00 1.00 1.00 1.00 - Prod. & Meter Ops. Superint.1.00 1.00 1.00 1.00 - Lead Water Utility Operator 3.00 3.00 3.00 3.00 - Instrumentation & Control Tech.1.00 1.00 1.00 1.00 - Meter Operations Supervisor 1.00 1.00 1.00 1.00 - Water Utility Operator III 7.00 7.00 7.00 7.00 - Water Utility Operator II 5.00 5.00 5.00 5.00 - Water Utility Operator I 4.00 4.00 4.00 4.00 - Total FTEs 25.00 25.00 25.00 25.00 - FY 2021 FY 2022 FY 2022 FY 2023 Variance Expenditures Actual Budget Projected Budget to Budget Personnel 1,979,544$ 2,180,562$ 2,180,562$ 2,097,842$ -3.8% Operations & Maintenance 2,893,162 2,953,412 2,953,412 3,293,926 11.5% Capital Outlay 263,853 551,650 443,500 905,650 64.2% Total Expenditures 5,136,559$ 5,685,624$ 5,577,474$ 6,297,418$ 10.8% Town of Oro Valley 2022-2023 Town Manager's Recommended Budget 94 Capital Improvement Program (CIP) Overview Overview Providing infrastructure is a primary function of local governments. Maintaining public safety, Town services, parks and recreation facilities, adequate transportation systems, and the community’s quality of life are all heavily dependent on how the Town handles infrastructure issues. The Capital Improvement Program (CIP) is a comprehensive, ten-year plan of capital projects that will support the continued growth and development of the town. The CIP is used in implementing the General Plan and supporting the Town’s adopted Strategic Leadership Plan by developing a prioritized schedule of short-range and long-range community capital needs, evaluating projects, and analyzing the community’s ability and willingness to pay for them in the most cost-effective way. The Town uses the CIP as its method in determining future infrastructure requirements and planning the financing of facilities and equipment to maintain the service levels provided to town citizens. The Town identifies capital projects as those which:  Cost $50,000 or more;  Have an expected useful life of five or more years; and  Becomes, or preserves, an asset of the Town Although facility repair and maintenance, as well as fleet replacements, do not meet the definition of a capital project, they are a significant expense for the Town, and thus are included in the CIP for planning purposes. The Town uses the Capital Improvement Program as an avenue of communication to the public. Through the CIP document, residents and businesses are provided with an accurate and concise view of the Town’s long-term direction for capital investment and the Town’s need for stable revenue sources to fund large multi-year capital projects. CIP projects funded in FY 2022-23 total $58,126,467. The table below shows this breakdown by Fund: Fund Amount General Fund $1,002,625 Capital Fund $29,438,673 Highway Fund $2,562,000 Community Center Fund $2,099,200 PAG/RTA Fund $971,574 Roadway Development Impact Fee Fund $903,095 Grants & Contributions Fund $3,386,309 Stormwater Utility Fund $660,513 Water Utility Fund $2,066,790 Water Impact Fee Fund $13,035,688 Total All Funds $56,126,467 Please refer to the comprehensive ten-year CIP schedules and the project descriptions for additional detail on all projects. Town of Oro Valley 2022-2023 Town Manager's Recommended Budget 95 Town of Oro Valley 10-Year Capital Improvement Program - Town Manager's Recommended BudgetCIP Project Listing by Funding SourceFiscal 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 Fund1,002,625 450,000 491,197 476,890 515,000 87,550 541,780 655,636 636,540 285,000 5,142,218Facility Maintenance Program463,000 450,000 491,197 476,890 515,000 87,550 541,780 655,636 636,540 285,0004,602,593Westward 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 - Roadways1,850,000 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 Fund2,099,200 1,149,500 345,000 511,500 100,000 1,350,000 100,000 3,100,000 4,700,000 220,000 13,675,200Artificial Turf Installation at Community Center Entrance82,50082,500Canada Golf Course Cart Path Repaving300,000300,000CC Men's Jacuzzi to Outdoor Accessed Restroom30,000 150,000180,000Community Center Fire Alarm System Upgrade25,000 270,000295,000Community Center flat roof surface replacement1,600,0001,600,000Conquistador Golf Course Cart Path Repaving276,000276,000Conquistador Greens and Driving Range Floor Re-Grassing95,00095,000CRC ADA Improvements750,000750,000CRC Pool Deck and Equipment Renovation100,000100,000CRC Renovation and Construction600,0003,000,000 3,000,0006,600,000Equipment Replacement (Golf Maintenance)159,000 192,000 145,000 81,500577,500Former Vistoso Golf Course Safety Improvements350,000 50,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,0001,200,000Improved Landscape and Gathering Area at Aquatic Center330,000330,000Life Cycle Equipment Replacement CRC150,000150,000Life Cycle Replacement (Bunkers and Turf Reduction)105,000 105,000210,000Pusch Ridge Tennis Court Lighting Replacement300,000300,000Pusch Ridge Tennis Court Resurfacing120,000120,000240,000Pusch Ridge Tennis Landscape Improvements250,000250,000Pusch Ridge Tennis Renovations Bleachers/Pad/Storage100,000100,000Vehicle Replacement Program*39,20039,200Capital Fund29,438,673 21,209,160 64,152,635 3,549,994 5,400,309 6,762,453 5,074,603 5,616,236 5,366,133 5,030,377 151,600,571680 Admin Building Remodel121,752121,752680 Maintenance Bay147,638147,638680 Maintenance Yard Back-up Generator155,000155,000680 Renovation for removal of Fleet and Ops - adding P&R220,000220,000Admin Restroom ADA Remodel170,000170,000Administration Building Efficiency Renovation500,000500,000CC Parking Lot Reconstruction & Expansion200,000 1,200,0001,400,000Community Center Elevator750,000750,000Community Center Tennis / Pickleball Court Improvements2,200,0002,200,000Coronado K-8 Restroom Amphi Partnership150,000150,000Equipment Replacement Program175,000 255,000 648,000 289,500 260,500 368,000 418,500 403,000 204,000 178,5003,200,000Golf Course Irrigation Phase 1 (Conquistador Course)4,630,0004,630,000Golf Course Irrigation Phase 2 (La Cañada Course)2,350,000 2,000,0004,350,000Greenock Trail Paving56,00056,000James D Kreigh Park Improvements*21,50021,500James D Kriegh Park - Egleston Road Connection Parking lot60,000 750,000810,000James D Kriegh Park - Field Lighting Replacement1,000,0001,000,000James D Kriegh Park - North Area Improvements78,000 975,0001,053,000Town of Oro Valley2022-2023 Town Manager's Recommended Budget96 Town of Oro Valley 10-Year Capital Improvement Program - Town Manager's Recommended BudgetCIP Project Listing by Funding SourceFiscal 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 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 replacement70,00070,000Moore Rd. Asphalt Overlay - La Cholla to La Canada537,838537,838MUP – 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 Implementation10,000,000 5,000,00015,000,000Network Storage50,00050,00050,000150,000OVAC Competition Equipment Replacement136,000136,000OVAC Diving Board and Dive Block Replacement136,000136,000OVAC Olympic Pool Heater Replacement500,000500,000OVAC Pool Replastering200,000200,000OVAC Pump Room Upgrades710,000710,000Park system sidewalk repair and ADA required improvements100,000100,000Pavement Preservation - Non Roadways97,000 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)90,00090,000Phone System Refresh300,000300,000600,000Proctor/Lieber House Renovation1,500,0001,500,000Public Works Operations Laydown Yard325,000325,000Pusch Ridge Facility ADA and Code Compliance142,000142,000Pusch Ridge Facility ADA and Code Compliance Design140,000140,000Riverfront 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 Lighting1,000,0001,000,000Rooney Ranch Municipal Facilities5,500,000 57,300,00062,800,000Server OS Refresh60,00060,000120,000Shannon Road Pavement Reconstruct and Overlay791,000791,000Staff Learning Management System (LMS)100,000100,000Steam Pump Ranch - New Northern Entry by Panhandle Stables/Event Space1,500,0001,500,000Steam Pump Ranch - Tack Building50,000500,000550,000Steam Pump Ranch ADA Walkways and Patio120,000120,000Steam Pump Ranch BBQ & Bunk House Renovations*552,500552,500Steam Pump Ranch Garage*610,908610,908Steam Pump Ranch Park Site Lighting75,000 750,000825,000Steam Pump Ranch Pool Demo and landscape Restoration50,00050,000Town Court Expansion200,000 2,200,0002,400,000Town Hall Data Center Migration*240,000240,000Town Hall Emergency Generator Replacements*569,900569,900Townwide IT Security Enhancements50,000 50,000100,000Traffic Camera Video Recording System60,00060,000Upgrade Desktop Operating Systems200,000200,000400,000Upgrade of the Existing Farmer's Market Structure100,000100,000Vehicle Replacement Program*1,709,637 2,549,250 2,625,728 2,704,499 2,785,634 2,869,203 2,955,279 3,043,938 3,135,256 3,229,31427,607,738Town of Oro Valley2022-2023 Town Manager's Recommended Budget97 Town of Oro Valley 10-Year Capital Improvement Program - Town Manager's Recommended BudgetCIP Project Listing by Funding SourceFiscal 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/RTA971,574 2,000,000 2,700,000 19,572,000 17,246,000 15,303,000 8,015,000 65,807,574First Avenue Bridge Deck Repair2,000,0002,000,000HAWK Signalized Crossing from Naranja Drive at IRHS400,000400,000Lambert 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*496,574496,574Shannon Road Widening - Lambert Lane to Tangerine Road12,784,00012,784,000Transportation Art by Youth (TABY) Grant*75,00075,000Impact Fee/ GPF13,035,688 11,750,000 4,600,000200,000 1,000,00030,585,688Forebay reservoir at Shannon & Naranja300,000 600,000 600,0001,500,000La Canada Booster Station Expansion200,000 2,000,0002,200,000La Posada Replacement Well*585,688585,688NWRRDS Booster Station Construction (2,500 gpm = 4000 acft / year)1,000,000 1,000,0002,000,000NWRRDS D-Zone Blending Water Interconnection to Shannon50,000 200,000250,000NWRRDS E-Zone interconnect to Tangerine500,000 300,000800,000NWRRDS E-Zone interconnection to Naranja400,000 100,000500,000NWRRDS 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 OVWU300,000 600,000 600,0001,500,000Steam 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 tasks1,200,000 400,0001,600,000Roadway Impact Fee Fund903,0955,100,000 17,280,000 750,00024,033,095La Cholla Blvd Widening153,095153,095Lambert 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 Intersection750,000750,000Shannon Rd, Tangerine Rd-Naranja Dr4,200,0004,200,000Water Utility Fund2,066,790 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 Trailer85,00085,000Booster Station HP Tank Replacement150,000 150,000 150,000 150,000 150,000 150,000 150,000 150,000 150,000 150,0001,500,000Booster Station Rehabilitation200,000 200,000 400,000 50,000 50,000 250,000 250,000 250,000 250,000 250,0002,150,000El Con/El Camino Diestro main and valve replacement250,000250,000Instrumentation Replacement200,000 200,000 200,000 500,000 500,000 700,000 700,000 700,000 700,000 700,0005,100,000Palisades Area Supply Redundancy50,000 250,000 250,000550,000Reservoir Relining200,000 200,000 200,000200,000 200,000 225,000 225,000 225,000 225,000 225,0002,125,000SCADA Equipment IT300,000300,000Utility 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 Vehicle70,00070,000Water 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)150,000 150,000 220,000 220,000 220,000 220,000 220,000 220,000 220,000 220,0002,060,000Town of Oro Valley2022-2023 Town Manager's Recommended Budget98 Town of Oro Valley 10-Year Capital Improvement Program - Town Manager's Recommended BudgetCIP Project Listing by Funding SourceFiscal 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 Improvements149,513149,513Pomegranate Drive - Drainage Improvement and Roadway Stabilization183,420183,420Sierra Wash @ Glover Road Culvert and Apron Rehabilitation386,445386,445Sierra Wash @ Via Mandarina Culvert and Apron Rehabilitation386,445386,445Sierra Wash Drainage Improvements*511,000511,000Town-Wide Drainage Study100,000100,000Grants Fund3,386,3093,386,309ABDG Fiber Project3,310,0003,310,000TripSpark Passenger Portal Enhancement76,30976,309Grand Total56,126,467 39,004,710 78,750,828 10,806,074 15,078,701 37,664,578 46,041,174 14,909,917 30,303,010 17,920,044 346,605,503Town of Oro Valley2022-2023 Town Manager's Recommended Budget99 CIP Project Descriptions General Fund and Capital Fund Related Projects PROJECT TITLE:680 Admin Building Remodel FY 22-23 PROJECT BUDGET: $121,752 PRIMARY FUNDING: General Fund - $121,752 ADDITIONAL FUNDING: N/A PROJECT DESCRIPTION: Remodeling of interior administration building to support the Public Works operations staff PROJECT JUSTIFICATION: ANNUAL OPERATING IMPACT: No changes in operating costs anticipated PROJECT TITLE: 680 Maintenance Bay FY 22-23 PROJECT BUDGET: $147,638 PRIMARY FUNDING: General Fund - $147,638 ADDITIONAL FUNDING: N/A PROJECT DESCRIPTION: PROJECT JUSTIFICATION: ANNUAL OPERATING IMPACT: Anticipated reduction of future ongoing operating costs PROJECT TITLE: 680 Maintenance Yard Back-Up Generator FY 22-23 PROJECT BUDGET: $155,000 PRIMARY FUNDING: General Fund - $155,000 ADDITIONAL FUNDING: N/A PROJECT DESCRIPTION: Install a back-up generator to power the maintenance yard PROJECT JUSTIFICATION: ANNUAL OPERATING IMPACT: Anticipated reduction of future ongoing operating costs The following are detailed descriptions of all of the recommended CIP projects for Fiscal Year 2022-2023. Discussion includes potential operating impact to the Town (if known and identifiable at this time) as well as indicating any additional funding the Town will receive to complete the project. Project will be done in tandem with the addition of a third maintenance bay. Currently operations staff work from the third bay area. This remodel will allow staff to continue to have access to office space after a third maintenance bay is created Reconfigure the third maintenance bay at 680 from office spaces into a drive-through work bay Reconfiguring the bay will enable the Town to perform more preventive maintenance activities internally which will increase quality of inspections and decrease ongoing costs Installing a back-up generator will allow maintenance operations to continue during power outages and mitigate interruption of Town services Town of Oro Valley 2022-2023 Town Manager's Recommended Budget 100 CIP Project Descriptions PROJECT TITLE:Community Center Elevator FY 22-23 PROJECT BUDGET: $750,000 PRIMARY FUNDING: General Fund - $750,000 ADDITIONAL FUNDING: N/A PROJECT DESCRIPTION: Design and construction of an elevator at the Town's Community Center PROJECT JUSTIFICATION: to increase ADA accessibility to the facility ANNUAL OPERATING IMPACT: Unknown until final designs are complete PROJECT TITLE: Community Center Parking Lot Reconstruction and Expansion FY 22-23 PROJECT BUDGET: $200,000 PRIMARY FUNDING:Parks bond funds - $200,000 ADDITIONAL FUNDING: N/A PROJECT DESCRIPTION: Resurface and redesign of the Community Center parking lot for increased capacity PROJECT JUSTIFICATION: ANNUAL OPERATING IMPACT: None anticipated PROJECT TITLE: Community Center Tennis and Pickleball Court Improvements FY 22-23 PROJECT BUDGET: $2,200,000 PRIMARY FUNDING: Parks bond funds - $2,000,000 ADDITIONAL FUNDING: N/A PROJECT DESCRIPTION: Reconstruction of Tennis and Pickleball courts using post-tension concreate PROJECT JUSTIFICATION: Will provide more durable, long-lasting play surfaces ANNUAL OPERATING IMPACT: Anticipate savings on annual resurfacing cost PROJECT TITLE: Equipment Replacement Program FY 22-23 PROJECT BUDGET: $175,000 PRIMARY FUNDING: General Fund - $175,000 ADDITIONAL FUNDING: N/A PROJECT DESCRIPTION: Replacement of aging Town equipment PROJECT JUSTIFICATION: Current equipment is near end of life ANNUAL OPERATING IMPACT: Decreased costs associated with equipment maintenance This project will maintain the parking and increase parking capacity to accommodate more visitors Town of Oro Valley 2022-2023 Town Manager's Recommended Budget 101 CIP Project Descriptions PROJECT TITLE:Facility Maintenance Program FY 22-23 PROJECT BUDGET: $463,000 PRIMARY FUNDING: General Fund - $463,000 ADDITIONAL FUNDING: N/A PROJECT DESCRIPTION: Maintenance and rehabilitation of Town owned facilities PROJECT JUSTIFICATION: ANNUAL OPERATING IMPACT: No changes in operating costs anticipated PROJECT TITLE:Golf Course Irrigation - Phase I (El Conquistador Course) FY 22-23 PROJECT BUDGET: $4,630,000 PRIMARY FUNDING: Parks bond funds - $4,011,000 ADDITIONAL FUNDING: ARPA funds - $619,000 PROJECT DESCRIPTION: Irrigation system improvements to the 18-hole Conquistador golf course PROJECT JUSTIFICATION: Council direction to improve golf course irrigation ANNUAL OPERATING IMPACT: Decrease in annual irrigation costs PROJECT TITLE:Golf Course Irrigation - Phase II ( La Canada Course) FY 22-23 PROJECT BUDGET: $2,350,000 PRIMARY FUNDING: ARPA funded - $2,350,000 ADDITIONAL FUNDING: N/A PROJECT DESCRIPTION: PROJECT JUSTIFICATION: Council direction to improve golf course irrigation ANNUAL OPERATING IMPACT: Decrease in annual irrigation costs PROJECT TITLE: Greenock Trail Paving FY 22-23 PROJECT BUDGET: $56,000 PRIMARY FUNDING:General Fund - $56,000 ADDITIONAL FUNDING: N/A PROJECT DESCRIPTION: Create a trail connection from the Canada del Oro Pedestrian Bridge to Greenock Drive PROJECT JUSTIFICATION: Commitment to neighboring properties ANNUAL OPERATING IMPACT: None anticipated Annual repair and maintenance of Town owned facilities and assets are crucial to maintain and extend the useful life of the asset Irrigation system improvements to the 18-hole La Canada golf course. Construction to take place over two fiscal years. Town of Oro Valley 2022-2023 Town Manager's Recommended Budget 102 CIP Project Descriptions PROJECT TITLE:James D. Kreigh Park Improvements (rollover) FY 22-23 PROJECT BUDGET: $21,500 PRIMARY FUNDING:General Fund - $21,500 ADDITIONAL FUNDING: N/A PROJECT DESCRIPTION: Improves and updates existing playground as well as adds accessibility and landscaping PROJECT JUSTIFICATION: Existing structures are over twenty years old. Project will improve safety and accessibility ANNUAL OPERATING IMPACT: None anticipated PROJECT TITLE: Moore Road Asphalt Overlay - La Cholla Boulevard to La Canada Drive FY 22-23 PROJECT BUDGET: $537,838 PRIMARY FUNDING: General Fund - $537,838 ADDITIONAL FUNDING: N/A PROJECT DESCRIPTION: PROJECT JUSTIFICATION: ANNUAL OPERATING IMPACT: None anticipated PROJECT TITLE:Multi Use Path - Phase I - La Canada Drive (Lambert Lane to Naranja Drive) FY 22-23 PROJECT BUDGET: $1,300,000 PRIMARY FUNDING:Parks bond funded - $1,300,000 ADDITIONAL FUNDING: N/A PROJECT DESCRIPTION: Construct approx. 1 mile of multi-use path along La Canada Drive from Lambert Lane to Naranja Drive PROJECT JUSTIFICATION: Council direction regarding bond funded projects ANNUAL OPERATING IMPACT: None anticipated Increase roadway width by adding four-foot wide paver shoulders and applying a two-inch asphalt overlay Current pavement edges have fractured due to inadequate paved shoulder and lateral support. Entire roadway will receive a two-inch overlay Town of Oro Valley 2022-2023 Town Manager's Recommended Budget 103 CIP Project Descriptions PROJECT TITLE:Multi Use Path - Phase II - Naranja Drive (La Canada Dr to Naranja Park entrance) FY 22-23 PROJECT BUDGET: $50,000 PRIMARY FUNDING:Parks bond funded - $50,000 ADDITIONAL FUNDING: N/A PROJECT DESCRIPTION: PROJECT JUSTIFICATION: Council direction regarding bond funded projects ANNUAL OPERATING IMPACT: None anticipated PROJECT TITLE: Naranja Park Master Plan Implementation FY 22-23 PROJECT BUDGET: $10,000,000 PRIMARY FUNDING:Parks bond funded - $10,000,000 ADDITIONAL FUNDING: General Fund - $0 PROJECT DESCRIPTION: PROJECT JUSTIFICATION: ANNUAL OPERATING IMPACT: Unknown at this time PROJECT TITLE:Oro Valley Aquatic Center Competition Equipment Replacement FY 22-23 PROJECT BUDGET: $136,000 PRIMARY FUNDING: General Fund - $136,000 ADDITIONAL FUNDING: N/A PROJECT DESCRIPTION:This project replaces four diving boards and twenty dive blocks at the Oro Valley Aquatic Center PROJECT JUSTIFICATION: ANNUAL OPERATING IMPACT: None anticipated The diving boards and dive blocks have reached the end of their useful life and need to be replaced for safety Construct approx. 0.7 mile of multi-use path along W. Naranja Drive from La Canada to the Naranja Park entrance Multi-year project covering Earthwork, Two oversized multi-use fields, splash pad, basketball courts, pickleball courts, restrooms, parking, entry road, paths and landscape Council direction for bond-funded improvements and addresses priorities identified in the Parks and Recreation Master Plan Town of Oro Valley 2022-2023 Town Manager's Recommended Budget 104 CIP Project Descriptions PROJECT TITLE:Oro Valley Aquatic Center Pump Room Upgrades FY 22-23 PROJECT BUDGET: $710,000 PRIMARY FUNDING: General Fund - $710,000 ADDITIONAL FUNDING: N/A PROJECT DESCRIPTION: PROJECT JUSTIFICATION: ANNUAL OPERATING IMPACT: Anticipated reduction in pool maintenance costs PROJECT TITLE: Park System Sidewalk Repair and Americans with Disabilities Act (ADA) Improvements FY 22-23 PROJECT BUDGET: $100,000 PRIMARY FUNDING: General Fund - $100,000 ADDITIONAL FUNDING: N/A PROJECT DESCRIPTION: PROJECT JUSTIFICATION: Project will improve safety and accessibility ANNUAL OPERATING IMPACT: None anticipated PROJECT TITLE: Pavement Preservation Non-Roads FY 22-23 PROJECT BUDGET: $97,000 PRIMARY FUNDING:General Fund - $97,000 ADDITIONAL FUNDING: N/A PROJECT DESCRIPTION: Surface treatment to Town parking lot facilities and multi-use paths PROJECT JUSTIFICATION: Project will preserve the Town's assets and extend useful life ANNUAL OPERATING IMPACT: None anticipated This project replaces and upgrades the pool filter system for both the Olympic and Recreation pools at the Oro Valley Aquatic Center as well as sanitary improvements and new heater for the Recreation pool This project repairs broken and raised sidewalks and constructs ADA connections at James D. Kreigh and Riverfront Parks Replacement of current water treatment systems will result in a higher water quality for users as well as reduce the cost for chemicals and maintenance Town of Oro Valley 2022-2023 Town Manager's Recommended Budget 105 CIP Project Descriptions PROJECT TITLE:Telephone System Refresh FY 22-23 PROJECT BUDGET: $300,000 PRIMARY FUNDING:General Fund - $300,000 ADDITIONAL FUNDING: N/A PROJECT DESCRIPTION: Replace the existing telephone system with an updated system PROJECT JUSTIFICATION: ANNUAL OPERATING IMPACT: Unknown at this time PROJECT TITLE:Public Works Operations Laydown Yard FY 22-23 PROJECT BUDGET: $325,000 PRIMARY FUNDING:General Fund - $325,000 ADDITIONAL FUNDING: N/A PROJECT DESCRIPTION: PROJECT JUSTIFICATION: ANNUAL OPERATING IMPACT: None anticipated PROJECT TITLE:Pusch Ridge Facility Americans with Disabilities Act (ADA) and Code Compliance FY 22-23 PROJECT BUDGET: $142,000 PRIMARY FUNDING: General Fund - $142,000 ADDITIONAL FUNDING: N/A PROJECT DESCRIPTION: PROJECT JUSTIFICATION: ANNUAL OPERATING IMPACT: Unknown at this time This project will bring the Pusch Ridge Facility entrances and interiors into ADA and code compliance Building a public works operational storage yard for street maintenance Road Maintenance currently operates out of three facilities, one of these being at Naranja Park. The expansion of Naranja Park will occupy the space used by operations requiring operations to relocate Replacing the current telephone system would leverage newer technologies including cloud services for telephone service Reconfiguration of the Pusch Ridge facility parking and pedestrian approach to meet ADA code requirements and resurfacing of roof, replacing roof drains Town of Oro Valley 2022-2023 Town Manager's Recommended Budget 106 CIP Project Descriptions PROJECT TITLE:Shannon Road Pavement Reconstruct and Overlay FY 22-23 PROJECT BUDGET: $791,000 PRIMARY FUNDING: General Fund - $791,000 ADDITIONAL FUNDING: N/A PROJECT DESCRIPTION: Remove and replace fatigued asphalt pavement sections and applying a two-inch asphalt overlay PROJECT JUSTIFICATION: The asphalt pavement has reached the end of lifecycle and needs to be replaced ANNUAL OPERATING IMPACT: None anticipated PROJECT TITLE: Staff Learning Management System (LMS) FY 22-23 PROJECT BUDGET: $100,000 PRIMARY FUNDING: General Fund - $100,000 ADDITIONAL FUNDING: N/A PROJECT DESCRIPTION: Implement a Town-wide Learning Management System PROJECT JUSTIFICATION: ANNUAL OPERATING IMPACT: Decrease in HR and managerial time monitoring training PROJECT TITLE:Steam Pump Ranch Barbeque and Bunk House Renovation FY 22-23 PROJECT BUDGET: $552,500 PRIMARY FUNDING: General Fund - $552,500 ADDITIONAL FUNDING: N/A PROJECT DESCRIPTION: Preservation and restoration of Barbeque and Bunk House building on Steam Pump Ranch property PROJECT JUSTIFICATION: Preserve and restore two buildings in need of repair ANNUAL OPERATING IMPACT: Potential for reduced maintenance costs as buildings are repaired PROJECT TITLE:Steam Pump Ranch Garage FY 22-23 PROJECT BUDGET: $610,908 PRIMARY FUNDING: General Fund - $610,908 ADDITIONAL FUNDING: N/A PROJECT DESCRIPTION: Restoration of historically significant building at Steam Pump Ranch PROJECT JUSTIFICATION: ANNUAL OPERATING IMPACT: Slight increases to annual operating costs This project would provide one location for all employee training, training records and content. The system would allow for tracking of mandatory and elective training Project will allow Recreation & Culture division to move to Steam Pump Ranch and allow facility to be open six days a week. Project will add indoor recreation space Town of Oro Valley 2022-2023 Town Manager's Recommended Budget 107 CIP Project Descriptions PROJECT TITLE:Steam Pump Ranch Pool Demolition and Landscape Restoration FY 22-23 PROJECT BUDGET: $50,000 PRIMARY FUNDING:General Fund - $50,000 ADDITIONAL FUNDING: N/A PROJECT DESCRIPTION: PROJECT JUSTIFICATION: Recommended by the Steam Pump Ranch master Plan ANNUAL OPERATING IMPACT: None anticipated PROJECT TITLE: Town Court Expansion FY 22-23 PROJECT BUDGET: $200,000 PRIMARY FUNDING: General Fund - $200,000 ADDITIONAL FUNDING: N/A PROJECT DESCRIPTION: Design for the Magistrate Court expansion PROJECT JUSTIFICATION: The current court building is too small to accommodate current needs ANNUAL OPERATING IMPACT: Minimal utility and maintenance cost increases with expanded building PROJECT TITLE:Town Hall Data Center Migration FY 22-23 PROJECT BUDGET: $240,000 PRIMARY FUNDING: General Fund - $240,000 ADDITIONAL FUNDING: N/A PROJECT DESCRIPTION: Migrate the Town data center and facilities to the Police facility building PROJECT JUSTIFICATION: Data center at the Police facility is more appropriate from a security and reliability perspective ANNUAL OPERATING IMPACT: None anticipated PROJECT TITLE: Town Hall Emergency Generator Replacements FY 22-23 PROJECT BUDGET: $569,900 PRIMARY FUNDING: General Fund - $569,900 ADDITIONAL FUNDING: N/A PROJECT DESCRIPTION: Replace aging backup generators PROJECT JUSTIFICATION: ANNUAL OPERATING IMPACT: None anticipated The Steam Pump ranch swimming pool and surrounding decking/walls will be demolished. The area will be rehabilitated as outdoor performance and event space. Current generators at Town Hall have questionable reliability in the event of prolonged power outages. Replacement will allow town to maintain continuity of operations when power is interrupted Town of Oro Valley 2022-2023 Town Manager's Recommended Budget 108 CIP Project Descriptions PROJECT TITLE:Town wide Information Technology Security Enhancements FY 22-23 PROJECT BUDGET: $50,000 PRIMARY FUNDING:General Fund - $50,000 ADDITIONAL FUNDING: N/A PROJECT DESCRIPTION: Continued security enhancements, access control, camera monitoring and storage of data PROJECT JUSTIFICATION: Improved IT security is needed to ensure safety and continuity of operations ANNUAL OPERATING IMPACT: None anticipated PROJECT TITLE:Traffic Camera Video Recording System FY 22-23 PROJECT BUDGET: $60,000 PRIMARY FUNDING:General Fund - $60,000 ADDITIONAL FUNDING: N/A PROJECT DESCRIPTION: Establish a recording server for the Town of Oro Valley signalized intersections PROJECT JUSTIFICATION: ANNUAL OPERATING IMPACT: None anticipated PROJECT TITLE: Vehicle Replacement Program FY 22-23 PROJECT BUDGET: $1,783,837 PRIMARY FUNDING:General Fund - $1,709,637 ADDITIONAL FUNDING: Community Center Fund - $39,200 Water Utility Fund - $35,000 PROJECT DESCRIPTION: Annual replacement of vehicles across Town departments PROJECT JUSTIFICATION: ANNUAL OPERATING IMPACT: Reduced maintenance costs as aging vehicles are replaced PROJECT TITLE: Westward Look Drive Improvements FY 22-23 PROJECT BUDGET: $539,625 PRIMARY FUNDING: General Fund - $539,625 ADDITIONAL FUNDING: N/A PROJECT DESCRIPTION: Pavement replacement and landscape improvements along Westward Look Drive PROJECT JUSTIFICATION: ANNUAL OPERATING IMPACT: None anticipated Current asphalt does not meet Town standards and reconstruction is listed as part of annexation agreement with Westward Look Resort By establishing our own recording server we can improve the reliability and accessibility to these cameras Replacement of aging fleet helps control vehicle repair and maintenance costs. Vehicle reserves are set aside annually to fund replacements Town of Oro Valley 2022-2023 Town Manager's Recommended Budget 109 CIP Project Descriptions Community Center Projects PROJECT TITLE:Community Center Jacuzzi to Outdoor Accessed Restroom FY 22-23 PROJECT BUDGET: $30,000 PRIMARY FUNDING: Community Center Fund - $30,000 ADDITIONAL FUNDING: N/A PROJECT DESCRIPTION: Two year design/construction project for outdoor restroom PROJECT JUSTIFICATION: ANNUAL OPERATING IMPACT: None anticipated PROJECT TITLE: Community Center Fire Alarm System Upgrade FY 22-23 PROJECT BUDGET: $25,000 PRIMARY FUNDING: Community Center Fund - $25,000 ADDITIONAL FUNDING: N/A PROJECT DESCRIPTION: Upgrade the fire alarm system at the Community and Recreation Center PROJECT JUSTIFICATION: The current fire alarm system is obsolete and requires replacement ANNUAL OPERATING IMPACT: None anticipated PROJECT TITLE:Conquistador Golf Course Cart Path Repaving FY 22-23 PROJECT BUDGET: $276,000 PRIMARY FUNDING: Community Center Fund - $276,000 ADDITIONAL FUNDING: N/A PROJECT DESCRIPTION: Crack repair and repaving of the Conquistador Golf Course Cart Path PROJECT JUSTIFICATION: The current path is cracked and uneven and in need of replacement ANNUAL OPERATING IMPACT: None anticipated Converting unused and boarded up Men's locker room jacuzzi into an outdoor restroom will benefit community center users Town of Oro Valley 2022-2023 Town Manager's Recommended Budget 110 CIP Project Descriptions PROJECT TITLE:Conquistador Greens and Driving Range Floor Re-grassing FY 22-23 PROJECT BUDGET: $95,000 PRIMARY FUNDING: Community Center Fund - $95,000 ADDITIONAL FUNDING: N/A PROJECT DESCRIPTION: The existing bent-grass greens will be removed and replaced with Bermuda grass PROJECT JUSTIFICATION: ANNUAL OPERATING IMPACT: None anticipated PROJECT TITLE: Community Center ADA Improvements FY 22-23 PROJECT BUDGET: $750,000 PRIMARY FUNDING:Community Center Fund - $750,000 ADDITIONAL FUNDING: N/A PROJECT DESCRIPTION: Various accessibility modifications and improvements to the community center PROJECT JUSTIFICATION: ANNUAL OPERATING IMPACT: None anticipated PROJECT TITLE: Former Vistoso Golf Course Safety Improvements FY 22-23 PROJECT BUDGET: $350,000 PRIMARY FUNDING: Community Center Fund - $350,000 ADDITIONAL FUNDING: N/A PROJECT DESCRIPTION: PROJECT JUSTIFICATION: Significant work is required to ensure public safety and access to this golf course ANNUAL OPERATING IMPACT: None anticipated Initial site clean up including weed, invasive grasses and dead tree removal, trail accessibility and restoring restrooms to working condition Bermuda grass uses less water and fertilizer than existing bent-grass greens. Bermuda grass on the driving range will reduce dust levels To comply with the Americans with Disabilities Act (ADA) by making the center more accessible to individuals with disabilities Town of Oro Valley 2022-2023 Town Manager's Recommended Budget 111 CIP Project Descriptions PROJECT TITLE:Golf Maintenance Equipment Replacement FY 22-23 PROJECT BUDGET: $159,000 PRIMARY FUNDING: Community Center Fund - $159,000 ADDITIONAL FUNDING: N/A PROJECT DESCRIPTION: Replace eight Workman vehicles PROJECT JUSTIFICATION: ANNUAL OPERATING IMPACT: Reduced maintenance costs of golf maintenance equipment PROJECT TITLE: Life Cycle Replacement (Bunkers and Turf Reduction) FY 22-23 PROJECT BUDGET: $105,000 PRIMARY FUNDING: Community Center Fund - $159,000 ADDITIONAL FUNDING: N/A PROJECT DESCRIPTION: PROJECT JUSTIFICATION: ANNUAL OPERATING IMPACT: Reduced water costs PROJECT TITLE: Life Cycle Equipment Replacement CRC FY 22-23 PROJECT BUDGET: $150,000 PRIMARY FUNDING: Community Center Fund - $150,000 ADDITIONAL FUNDING: N/A PROJECT DESCRIPTION: Replace current out-of-date circuit strength equipment with new, modern equipment PROJECT JUSTIFICATION: ANNUAL OPERATING IMPACT: Reduced maintenance costs Turf reduction will remove existing turf around tree boxes and some fairways and replace with native grass/hydroseed. Bunker sand will be added to existing bunkers The workman vehicles currently used to transport materials throughout the golf course have reached the end of their useful lives Condition of bunkers is the top comment from members and guests. Adding bunker sand will increase playability. Hydroseeding the areas where turf will be reduced will enhance these areas of the course Updating the center's circuit strength training equipment would help retain current members and attract prospective new members. The quality of the fitness equipment plays a role in the decision to join a facility Town of Oro Valley 2022-2023 Town Manager's Recommended Budget 112 CIP Project Descriptions PROJECT TITLE:Pusch Ridge Tennis Court Resurfacing FY 22-23 PROJECT BUDGET: $120,000 PRIMARY FUNDING: Community Center Fund - $120,000 ADDITIONAL FUNDING: N/A PROJECT DESCRIPTION: Crack repair, resurfacing and repainting of asphalt tennis courts at the Pusch Ridge Tennis Courts PROJECT JUSTIFICATION: ANNUAL OPERATING IMPACT: Avoidance of future costly reconstruction and potential liability Completion of this project will ensure a high quality and consistent play surface for members and residents as well as regional and national tournaments that use the facility Town of Oro Valley 2022-2023 Town Manager's Recommended Budget 113 CIP Project Descriptions Grants Fund Projects PROJECT TITLE:Arizona Broadband Development Grant (ABDG) Fiber Project FY 22-23 PROJECT BUDGET: $3,310,000 PRIMARY FUNDING:ABSG grant - $2,860,000 ADDITIONAL FUNDING: Genral Fund - $450,000 PROJECT DESCRIPTION: Establish a fiber optic network to expand broadband services in the Town PROJECT JUSTIFICATION: ANNUAL OPERATING IMPACT: None anticipated PROJECT TITLE: TripSpark Passenger Portal Enhancement FY 22-23 PROJECT BUDGET: $76,309 PRIMARY FUNDING: ADOT grant - $61,047 ADDITIONAL FUNDING: General Fund - $15,262 PROJECT DESCRIPTION: Purchase TripSpark Passenger Portal PROJECT JUSTIFICATION: ANNUAL OPERATING IMPACT: Unknown at this time A fast and affordable internet network is critical to Oro Valley's ability to attract, grow and retain primary employers and expand job opportunities TripSpark Passenger Portal will allow for community riders to interface with a web-based application to schedule and manage their rides Town of Oro Valley 2022-2023 Town Manager's Recommended Budget 114 CIP Project Descriptions Highway Fund Projects PROJECT TITLE:La Canada Mill/Overlay (Tangerine Road to Moore Road) FY 22-23 PROJECT BUDGET: $712,000 PRIMARY FUNDING: Highway Fund - $712,000 ADDITIONAL FUNDING: N/A PROJECT DESCRIPTION: Mill the upper two inches of asphalt rubber pavement and repave with conventional asphalt pavement PROJECT JUSTIFICATION: The asphalt rubber wearing course has reached the end of lifecycle ANNUAL OPERATING IMPACT: None anticipated PROJECT TITLE: Pavement Preservation Program FY 22-23 PROJECT BUDGET: $1,850,000 PRIMARY FUNDING: Highway Fund - $1,850,000 ADDITIONAL FUNDING: N/A PROJECT DESCRIPTION: Perform annual roadway and multi-use path surface treatments per the Town's pavement preservation and management program PROJECT JUSTIFICATION: Enhances and improves the roadway system, maintains current overall condition index (OCI) rating, meeting key elements of the General and Strategic Plans ANNUAL OPERATING IMPACT: Maintaining adequate funding for this program prevents future costly roadway reconstruction and rehabilitation Town of Oro Valley 2022-2023 Town Manager's Recommended Budget 115 CIP Project Descriptions Impact Fee/GPF Related Projects PROJECT TITLE:Forebay Reservoir at Shannon Road and Naranja Road FY 22-23 PROJECT BUDGET: $300,000 PRIMARY FUNDING: Water Impact Fees - $300,000 ADDITIONAL FUNDING: Water Utility Fund PROJECT DESCRIPTION: Reservoir to store and blend Central Arizona Project (CAP) water and "D" Zone water prior to delivery to La Canada reservoir and booster station PROJECT JUSTIFICATION: Capital investment to deliver an additional four-thousand acres per foot a year of recovered Central Arizona Project (CAP) water to the Oro Valley Water Utility service area ANNUAL OPERATING IMPACT: None anticipated PROJECT TITLE: La Canada Booster Station Expansion FY 22-23 PROJECT BUDGET: $200,000 PRIMARY FUNDING: Water Impact Fees - $200,000 ADDITIONAL FUNDING: Water Utility Fund PROJECT DESCRIPTION: Construct a sixteen-inch water main from the Shannon Road booster station to Naranja Road to serve "E" Zone PROJECT JUSTIFICATION: Capital investment to deliver an additional four-thousand acres per foot a year of recovered Central Arizona Project (CAP) water to the Oro Valley Water Utility service area ANNUAL OPERATING IMPACT: None anticipated PROJECT TITLE:La Posada Replacement Well FY 22-23 PROJECT BUDGET: $585,688 PRIMARY FUNDING: Water Impact Fees - $585,688 ADDITIONAL FUNDING: Water Utility Fund PROJECT DESCRIPTION: PROJECT JUSTIFICATION: ANNUAL OPERATING IMPACT: None anticipated Complete the equipping of the new well at the La Posada development at First Avenue and Lambert Lane Replace lost well capacity; maintain healthy groundwater capacity during periods of increased summer demand and in the event of CAP water outage as a redundant system Town of Oro Valley 2022-2023 Town Manager's Recommended Budget 116 CIP Project Descriptions PROJECT TITLE:Northwest Recharge Recovery & Delivery System Booster Station Construction FY 22-23 PROJECT BUDGET: $1,000,000 PRIMARY FUNDING: Water Impact Fees - $1,000,000 ADDITIONAL FUNDING: Water Utility Fund PROJECT DESCRIPTION: Oro Valley Water Utility independent booster from partnered forebay reservoir at Shannon Road PROJECT JUSTIFICATION: ANNUAL OPERATING IMPACT: None anticipated PROJECT TITLE: Northwest Recharge Recovery & Delivery System D-Zone Blending Water Interconnection to Shannon road FY 22-23 PROJECT BUDGET: $50,000 PRIMARY FUNDING: Water Impact Fees - $50,000 ADDITIONAL FUNDING: Water Utility Fund PROJECT DESCRIPTION: PROJECT JUSTIFICATION: System preservation of groundwater and quality ANNUAL OPERATING IMPACT: None anticipated PROJECT TITLE: Northwest Recharge Recovery & Delivery System Forebay/Reservoir Construction FY 22-23 PROJECT BUDGET: $3,000,000 PRIMARY FUNDING: Water Impact Fees - $3,000,000 ADDITIONAL FUNDING: Water Utility Fund PROJECT DESCRIPTION: PROJECT JUSTIFICATION: ANNUAL OPERATING IMPACT: Unknown at this time until construction is near completion Design and build a "D" zone water line into Shannon Road reservoir/forebay prior to sending to La Canada reservoir and "E" zone Partnered forebay reservoir construction to supply Central Arizona Project (CAP) water to the Northwest Recharge Recovery and Delivery System booster station Capital investment to deliver an additional four-thousand acres per foot a year of recovered Central Arizona Project (CAP) water to the Oro Valley Water Utility service area Capital investment to deliver an additional four-thousand acres per foot a year of recovered Central Arizona Project (CAP) water to the Oro Valley Water Utility service area Town of Oro Valley 2022-2023 Town Manager's Recommended Budget 117 CIP Project Descriptions PROJECT TITLE:Northwest Recharge Recovery & Delivery System Pipeline Construction FY 22-23 PROJECT BUDGET: $2,100,000 PRIMARY FUNDING: Water Impact Fees - $2,100,000 ADDITIONAL FUNDING: Water Utility Fund PROJECT DESCRIPTION: PROJECT JUSTIFICATION: ANNUAL OPERATING IMPACT: Unknow at this time until construction is near completion PROJECT TITLE: Pipeline Construction Northwest Recharge Recovery and Delivery System to La Canada Reservoir FY 22-23 PROJECT BUDGET: $4,000,000 PRIMARY FUNDING: Water Impact Fees - $4,000,000 ADDITIONAL FUNDING: Water Utility Fund PROJECT DESCRIPTION: Oro Valley Water Utility portion of pipeline from partnered forebay to intermediate forebay and to La Canada reservoir to deliver water to "F" and "G" zones PROJECT JUSTIFICATION: ANNUAL OPERATING IMPACT: Unknow at this time until construction is near completion PROJECT TITLE:Shannon Road Boosters - Northwest Recharge Recovery and Delivery System Oro Valley Water Utility FY 22-23 PROJECT BUDGET: $300,000 PRIMARY FUNDING: Water Impact Fees - $300,000 ADDITIONAL FUNDING: Water Utility Fund PROJECT DESCRIPTION: Construction of boosters to deliver water into "E" zone and to La Canada reservoir for delivery to "F" and "G" zones PROJECT JUSTIFICATION: Groundwater preservation and system reliability ANNUAL OPERATING IMPACT: Unknown at this time Construction of nine miles of twenty-inch and twenty-four-inch transmission main to deliver recovered Central Arizona Project (CAP) water to partnered forebay reservoir prior to delivery to Oro Valley service area Capital investment to deliver an additional four-thousand acres per foot a year of recovered Central Arizona Project (CAP) water to the Oro Valley Water Utility service area Capital investment to deliver an additional four-thousand acres per foot a year of recovered Central Arizona Project (CAP) water to the Oro Valley Water Utility service area Town of Oro Valley 2022-2023 Town Manager's Recommended Budget 118 CIP Project Descriptions PROJECT TITLE:Steam Pump Well Drill and Construction FY 22-23 PROJECT BUDGET: $300,000 PRIMARY FUNDING: Water Impact Fees - $300,000 ADDITIONAL FUNDING: Water Utility Fund PROJECT DESCRIPTION: Well equipping and system tie-in for replacement of retiring wells PROJECT JUSTIFICATION: Capital Investment of water infrastructure for system reliability ANNUAL OPERATING IMPACT: Replacement well; none anticipated PROJECT TITLE: Well Equipping - TRICO Power to Sites FY 22-23 PROJECT BUDGET: $1,200,000 PRIMARY FUNDING: Water Impact Fees - $1,200,000 ADDITIONAL FUNDING: Water Utility Fund PROJECT DESCRIPTION: Equipping wells in Lower Santa Cruz basin to recover recharged Central Arizona Project (CAP) water to delver to Oro Valley Water Utility service area. Work includes power supply infrastructure and construction of well equipping site PROJECT JUSTIFICATION: ANNUAL OPERATING IMPACT: Unknown at this time Capital investment to deliver an additional four-thousand acres per foot a year of recovered Central Arizona Project (CAP) water to the Oro Valley Water Utility service area Town of Oro Valley 2022-2023 Town Manager's Recommended Budget 119 CIP Project Descriptions PAG/RTA Related Projects PROJECT TITLE:HAWK Signalized Crossing from Naranja Drive at Ironwood Ridge High School FY 22-23 PROJECT BUDGET: $400,000 PRIMARY FUNDING:PAG/RTA Fund - $400,000 ADDITIONAL FUNDING: N/A PROJECT DESCRIPTION: PROJECT JUSTIFICATION: Will further increase the safety of students crossing the street as it provides both a vehicular traffic stop a ANNUAL OPERATING IMPACT: None anticipated at this time PROJECT TITLE:RTA Wildlife Fencing FY 22-23 PROJECT BUDGET: $496,574 PRIMARY FUNDING:PAG/RTA Fund - $496,574 ADDITIONAL FUNDING: N/A PROJECT DESCRIPTION: Install wildlife fencing near the SR 77 right-of-way to funnel wildlife to the crossings previously built PROJECT JUSTIFICATION: ANNUAL OPERATING IMPACT: Unknown at this time PROJECT TITLE:Transportation Art by Youth (TABY) Project FY 22-23 PROJECT BUDGET: $75,000 PRIMARY FUNDING:TABY/PAG Grant - $75,000 ADDITIONAL FUNDING: N/A PROJECT DESCRIPTION: Design and construct public art with the Town's right-of-way by local youth PROJECT JUSTIFICATION: ANNUAL OPERATING IMPACT: Unknown at this time Additional fencing is needed at strategic locations along the corridor to funnel wildlife to the crossing structures Oro Valley has an ongoing commitment to create beautiful surroundings that enhance the quality of life for all who live, work and play in the town. This program allows us to use outside funding to support our public art program Currently warrants are being evaluated to determine whether the installation of a HAWK pedestrian signal meets warrants and therefore could be installed to provide a controlled crossing for students of Ironwood Ridge High School. Town of Oro Valley 2022-2023 Town Manager's Recommended Budget 120 CIP Project Descriptions Roadway Development Impact Fee Projects PROJECT TITLE:La Cholla Boulevard Widening FY 22-23 PROJECT BUDGET: $153,095 PRIMARY FUNDING: Road Impact Fees - $153,095 ADDITIONAL FUNDING: N/A PROJECT DESCRIPTION: Add final pavement seal and landscape establishment to La Cholla PROJECT JUSTIFICATION: A final seal after the pavement has had time to settle is needed to preserve useful life ANNUAL OPERATING IMPACT: None at this time PROJECT TITLE: Rancho Vistoso Boulevard and Woodburne Avenue Intersection FY 22-23 PROJECT BUDGET: $750,000 PRIMARY FUNDING: Road Impact Fees - $750,000 ADDITIONAL FUNDING: N/A PROJECT DESCRIPTION: PROJECT JUSTIFICATION: ANNUAL OPERATING IMPACT: Unknown at this time This intersection is identified in the Town’s Infrastructure Improvement Plan (IIP) as one of the projects used to determine growth development fee rates. As such, it is eligible to receive its share of collected development impact fees. A developer may be reconstructing this problematic intersection. Since it is eligible to receive up to $750,000 in impact fees, a portion of this amount will be derived through issuing Impact Fee Credits to the developer. However those credits will not cover the entire development impact fund contribution. So the Town will contribute the difference toward the construction of the intersection up to Town’s Infrastructure Improvement Plan (IIP) Town of Oro Valley 2022-2023 Town Manager's Recommended Budget 121 CIP Project Descriptions Stormwater Related Projects PROJECT TITLE:Catalina Ridge Drainage Improvements FY 22-23 PROJECT BUDGET: $149,513 PRIMARY FUNDING:Stormwater Fund - $149,513 ADDITIONAL FUNDING: N/A PROJECT DESCRIPTION: PROJECT JUSTIFICATION: The drainage channel is experiencing significant erosion which could impact the roadway ANNUAL OPERATING IMPACT: None at this time PROJECT TITLE: Sierra Wash at Naranja Drive Drainage Improvements FY 22-23 PROJECT BUDGET: $511,000 PRIMARY FUNDING:Stormwater Fund - $511,000 ADDITIONAL FUNDING: N/A PROJECT DESCRIPTION: Reconstruction of riprap apron extension at the outlet of Naranja Drive conveying Sierra Wash PROJECT JUSTIFICATION: Current erosion at this location is placing the roadway and utilities at risk for failure ANNUAL OPERATING IMPACT: None at this time Drainage improvements to a portion of the Catalina Ridge drainageway north of Lambert Lane including armoring of the channel bottom, grade control and toe down structure to arrest erosion Town of Oro Valley 2022-2023 Town Manager's Recommended Budget 122 CIP Project Descriptions Water Related Projects PROJECT TITLE:Arizona Department of Corrections Program (ADC) Truck and Trailer FY 22-23 PROJECT BUDGET: $85,000 PRIMARY FUNDING: Water Utility Fund - $85,000 ADDITIONAL FUNDING: N/A PROJECT DESCRIPTION: PROJECT JUSTIFICATION: ANNUAL OPERATING IMPACT: Unknown at this time PROJECT TITLE: Booster Station Hydropneumatic Tank Replacement FY 22-23 PROJECT BUDGET: $150,000 PRIMARY FUNDING: Water Utility Fund - $150,000 ADDITIONAL FUNDING: N/A PROJECT DESCRIPTION: PROJECT JUSTIFICATION: Capital infrastructure investment for a more reliable and efficient distribution system ANNUAL OPERATING IMPACT: Decrease in maintenance costs with new tank PROJECT TITLE:Booster Station Rehabilitation FY 22-23 PROJECT BUDGET: $200,000 PRIMARY FUNDING:Water Utility Fund - $200,000 ADDITIONAL FUNDING: N/A PROJECT DESCRIPTION: and maintain system reliability PROJECT JUSTIFICATION: Capital infrastructure investment for a more reliable and efficient distribution system ANNUAL OPERATING IMPACT: None anticipated Purchase and outfitting of a new vehicle for Oro Valley Water Utility's planned implementation of an ADC program Rehabilitate select booster stations to return the boosters to optimum operational efficiency New Five-thousand gallon tank to meet all American Society of Mechanical Engineers (ASME) certifications and standards Allows for skilled water professionals to focus on core functions associated with maintaining the existing infrastructure Town of Oro Valley 2022-2023 Town Manager's Recommended Budget 123 CIP Project Descriptions PROJECT TITLE:El Con and Camino Diestro Main and Valve Replacement FY 22-23 PROJECT BUDGET: $250,000 PRIMARY FUNDING: Water Utility Fund - $250,000 ADDITIONAL FUNDING: N/A PROJECT DESCRIPTION: Design and build a redundant water line for system reliability PROJECT JUSTIFICATION: Capital infrastructure investment for a more reliable and efficient distribution system ANNUAL OPERATING IMPACT: None anticipated PROJECT TITLE:Instrumentation Replacement FY 22-23 PROJECT BUDGET: $200,000 PRIMARY FUNDING: Water Utility Fund - $200,000 ADDITIONAL FUNDING: N/A PROJECT DESCRIPTION: PROJECT JUSTIFICATION: Capital infrastructure investment for a more reliable and efficient distribution system ANNUAL OPERATING IMPACT: None anticipated PROJECT TITLE:Palisades Area Supply Redundancy FY 22-23 PROJECT BUDGET: $50,000 PRIMARY FUNDING: Water Utility Fund - $50,000 ADDITIONAL FUNDING: N/A PROJECT DESCRIPTION: PROJECT JUSTIFICATION: Capital infrastructure investment for a more reliable and efficient distribution system ANNUAL OPERATING IMPACT: None anticipated PROJECT TITLE: Reservoir Relining FY 22-23 PROJECT BUDGET: $200,000 PRIMARY FUNDING: Water Utility Fund - $200,000 ADDITIONAL FUNDING: N/A PROJECT DESCRIPTION: PROJECT JUSTIFICATION: Capital infrastructure investment for a more reliable and efficient distribution system ANNUAL OPERATING IMPACT: None anticipated Replacing aging instrumentation that is no longer compatible with newer Supervisory Control and Data Acquisition (SCADA) equipment Reservoir relining will include draining the reservoir, removing the existing lining, cleaning, applying the lining, disinfecting, filling and returning reservoir to service Design and build a redundant connection to the Palisades area for improved reliability Town of Oro Valley 2022-2023 Town Manager's Recommended Budget 124 CIP Project Descriptions PROJECT TITLE:Supervisory Control and Data Acquisition (SCADA) IT Equipment FY 22-23 PROJECT BUDGET: $300,000 PRIMARY FUNDING: Water Utility Fund - $300,000 ADDITIONAL FUNDING: N/A PROJECT DESCRIPTION: Replace aging and outdated hardware PROJECT JUSTIFICATION: Allow Water Utility to maintain SCADA control and maintain system reliability and efficiency ANNUAL OPERATING IMPACT: None anticipated PROJECT TITLE: Utility Billing Software FY 22-23 PROJECT BUDGET: $18,640 PRIMARY FUNDING: Water Utility Fund - $18,640 ADDITIONAL FUNDING: N/A PROJECT DESCRIPTION: Procurement and implementation of a new water utility billing software PROJECT JUSTIFICATION: ANNUAL OPERATING IMPACT: $90,000 annual software cost PROJECT TITLE:Water Control Systems Operations New Vehicle FY 22-23 PROJECT BUDGET: $70,000 PRIMARY FUNDING: Water Utility Fund - $70,000 ADDITIONAL FUNDING: N/A PROJECT DESCRIPTION: Purchase and outfitting of a new vehicle for the Utility's Instrumentation and Control section PROJECT JUSTIFICATION: Ability to maintain our facilities using more efficient equipment ANNUAL OPERATING IMPACT: Reduced maintenance costs with a new vehicle PROJECT TITLE:Water Meters - New Connections FY 22-23 PROJECT BUDGET: $208,150 PRIMARY FUNDING:Water Utility Fund - $208,150 ADDITIONAL FUNDING: N/A PROJECT DESCRIPTION: PROJECT JUSTIFICATION: Ensure accurate water usage metering ANNUAL OPERATING IMPACT: None anticipated Purchase and implementation of a new water billing software to expand business module and customer account information Purchase meters for new water system connections based on two-hundred and ten meters per year Town of Oro Valley 2022-2023 Town Manager's Recommended Budget 125 CIP Project Descriptions PROJECT TITLE:Well Hydropneumatic Tank Replacement FY 22-23 PROJECT BUDGET: $150,000 PRIMARY FUNDING: Water Utility Fund - $150,000 ADDITIONAL FUNDING: N/A PROJECT DESCRIPTION: PROJECT JUSTIFICATION: Capital infrastructure investment for a more reliable and efficient distribution system ANNUAL OPERATING IMPACT: Decrease in maintenance costs with new tank PROJECT TITLE: Well Rehabilitation FY 22-23 PROJECT BUDGET: $150,000 PRIMARY FUNDING: Water Utility Fund- $150,000 ADDITIONAL FUNDING: N/A PROJECT DESCRIPTION: Remove existing pumping unit, rehabilitate the existing well casing and install new pumping unit PROJECT JUSTIFICATION: Capital infrastructure investment for a more reliable and efficient distribution system ANNUAL OPERATING IMPACT: None anticipated New 5,000 gallon tank to meet all American Society of Mechanical Engineers (ASME) certifications and standards Town of Oro Valley 2022-2023 Town Manager's Recommended Budget 126 1 FY 2022/23 Recommended Budget Town Council Questions/Responses from Budget Briefings General: Revenues, Funds, Financials Q. What kind of data do we get for sales tax revenue? Are we provided details on source of growth? What is the most real-time data provided? A. Staff reviews a variety of information, including data and projections from the Joint Legislative Budget Committee, University of Arizona Eller Economic and Business Research Center, national economic indicators, and other available data. The Town receives confidential, detailed monthly tax files from the Arizona Department of Revenue on actual collections and activity , which is thoroughly analyzed for any trends in collections. There is always about a two-month lag between when taxes are remitted and when they are reported to the Town by the State. Q. At one point, ARPA funding was identified as FY 21/22 income in the General Fund. Why are we showing $5.4 million of ARPA revenue in FY 22/23? A. The Town’s total ARPA allotment is $15.4 million. Per the Federal Treasury Final Rule issued in January 2022, up to $10 million is “unfenced” with no specific criteria for spending and will be recognized as revenue in the General Fund. The FY 22/23 Recommended Budget then proposes a transfer of these funds to the Capital Fund per the Town’s financial policy to direct excess fund balance reserves towards capital investment. The remaining deferred $5.4 million of the Town’s total ARPA allotment must comply with certain criteria per the Final Rule. These funds are included in the FY 22/23 budget as revenue in the Grants Fund, which will be transferred to the Water Utility Fund to be spent on the NWRRDS project. Q. Are the ARPA funds Included in the $48 million total General Fund revenue for FY 22/23? A. No, $5.4 million of the $15.4 million of ARPA funds is recognized in the Grants Fund for FY22/23; the balance of $10 million was recognized in Fiscal Years 20/21 and 21/22. Staff is recommending a transfer of the $5.4 million in ARPA funds to the Water Fund to be used for the NWRRDS project. All ARPA funds need to be encumbered or spent by December 31, 2024. Q. Please provide a breakdown of ARPA expenses/allocations. A. $10 million of ARPA funds are being recommended for transfer into the Capital Fund in FY 22/23 to be used toward budgeted capital projects for FY22/23 and FY23/24, as that portion of the allocation is unrestricted. The receipt of these funds enabled the Town to apply $10 million in excess reserves to the PSPRS pension liability. The remaining $5.4 million will be used for the Water Utility NWRRDS project. All ARPA funds must be spent or encumbered by December 31, 2024 or the Town risks returning the dollars. Q. Please provide a breakdown of CARES Act expenses/allocations. A. CARES Act funds were spent exclusively on Public Safety wages and related eligible benefits in accordance with the requirements specified by the State of Arizona at the time of distribution . 2 Capacity freed up from the CARES revenues was then subsequently invested during FY 20/21 and is reflected below and compared to the FY 20/21 budgeted allocations. Q. What are Smart & Safe funds? A. The Smart & Safe funds consist of state sales tax levied on recreational marijuana sales, which are allocated to local governments. Estimated at $325,000 for next fiscal year, the funds are required to be used on public safety personnel per the proposition approved by voters and are therefore, budgeted to fund the new Police positions. Q. Why are General Fund revenues expected to go down from a projected $53 million in FY 21/22 to $48 million in FY22/23? A. Staff is projecting a $5.6 million reduction in federal grant revenues tied to the ARPA funds. Q. How much of the General Fund revenue is considered one-time revenue? What about construction sales tax? A. An estimated 5% of General Fund revenues are typically one-time. Construction sales tax is composed of both one-time and ongoing revenue. One-time revenue would be tax from large commercial projects and unusually high single family permit activity. Remaining construction sales tax is ongoing. 3 Q. If we have General Fund reserves and we move $13 million to the Capital Fund, which would get us close to the 25% General Fund reserve policy, we are depending on us not having a deficit, correct? A. The FY22/23 budget first starts on a foundation of conservative revenue projections, a practice that has served the Town well for the past decade+ and has resulted in the 25% fund balance never needing to be touched, even during the Great Recession. In addition, the Capital and operating budgets include robust contingencies beyond the 25% reserve that are expected to mitigate against any unexpected revenue losses and expenditure increases. If, however, economic conditions are worse than predicted, the Town always has the option of lowering the amount of the Capital Fund transfer during the course of the year. Q. Is there value in keeping more fund balance in the General Fund reserves? A. Last year, the Budget and Finance Commission reviewed the Town Council’s financial policies, including the 25% General Fund reserve policy. With robust discussion, the BFC recommended, and the Town Council subsequently reaffirmed, that 25% is a healthy re serve balance. Excess fund balance is only used for one-time expenditures, so any funds maintained over the emergency reserve should have an identified use in the General Fund. The 25% reserve balance has not been breached since its inception, including during the Great Recession. However, the Council always has the option of changing the policy or utilizing the fund balance of the Capital Fund for other priorities if needed. Q. If we leave the $13 million transfer to the Capital Fund in the General Fund, will we reduce the size of the budget? A. Transfers between funds do not affect the total budgeted expenditures, only individual fund balances. Therefore, the transfer is not part of the $159.2 million total budgeted expenditures. Q. If the main reason for capital expenditures going up is from the bond funds received , why are we doing a $13 million transfer to the Capital Fund? A. The Town Council’s financial policies require that excess fund balance over the 25% reserve must be applied toward the reduction of the Town’s PSPRS unfunded liability or used for capital. Now that the PSPRS liability is fully funded, excess reserves belong in the Capital Fund and can be held for future capital projects, since that is the only allowable use per Council policy . The fund balance of the Capital Fund remains part of the Town’s overall reserves. Q. Didn’t the 43% PSPRS contribution rate come down? A. The PSPRS contribution rate came down very slightly for FY23 (.1%). An updated actuarial report will be released in December 2022, which will update the Town’s unfunded liability for the additional payments made in July of this fiscal year per the PSPRS funding policy; staff expects a lower rate for next fiscal year. Q. What is happening to PSPRS as the stock market goes down? Are they going to come back to us for more money? A. Staff will continue to monitor the earnings as well as continue to approach this issue in a very conservative manner. With the Town Council’s PSPRS funding policy requiring ongoing contributions to remain at the current 42% level until the funding ratio exceeds 110%, staff does not expect to have to make any contributions beyond what is already planned. The Town will not 4 know the impact of the lump sum and pension obligation bond liability payments on the Town’s PSPRS fund until the next actuarial report, expected in December 2022. Q. 32 store front businesses opened in 2021, how many closed? A. CED attempts to track store closings, but this has proven difficult as most businesses do not send the Town a notice before closing. Often, staff is alerted to store closures when a permit for tenant improvements for that space comes in, sometimes through social media. There are instances such as Best Buy closing that the Town can track. Additionally, some businesses like Salted Pig go out of business and/or are bought and sold and reopen under new ownership, but the Town doesn't count this as new storefront businesses opening. Oro Valley Chamber of Commerce experiences the same challenge and might only find out that a business has closed or transitioned to new ownership when membership dues are payable. Currently, this information is incomplete. Q. How are we planning for a potential recession in next year’s budget? What options do we have available if we begin to see a turndown in the economy or a decrease in revenues? A. The FY 22/23 budget continues the practice of using conservative estimates for revenues and expenditures. The Recommended Budget includes $5 million of contingency in the General Fund that could be utilized, if needed, to maintain services, although this i s unlikely. Similar to the actions successfully taken by the Town Manager at the start of the pandemic, if trends appear concerning, she can immediately institute a hiring freeze, direct departments to reduce purchases, and place capital projects on hold. Staff will continue to monitor the state, national, and global economy for any economic downturn/recession. Current expert consensus suggests a mild downturn. Q. Total debt service for all funds decreased so where is the debt service for the bond issuance and pension obligation bonds? A. Full principal and interest payments were budgeted for both in FY 21/22, so there will be no impact in comparison to the FY 22/23 budget. The slight decrease in debt service is attributable to a Water Utility debt refinancing in FY 20/21. Q. Do we expect to see a decrease in consumer spending due to higher price inflation? A. Staff is projecting stable revenues with the current year. We will be closely monitoring revenues more closely tied to “discretionary” spending, such as Community Center memberships. Capital Projects and Funding Q. What is the projected ending fund balance for the Capital Fund? A. The projected ending fund balance for the Capital Fund per the Recommended Budget is approximately $11 million. As final calculations are made for carryover projects, etc., there may be some additional adjustments to the Capital Fund recommended for the Tentative Budget. Q. Why are we delaying the bridge repair? Was this a financial decision? A. See response to similar question below. 5 Q. Page viii in the Budget Message states “There are three bridges that require deck surface improvements, one of which was in the FY 21/22 budget; however, due to the unprecedented increased construction costs, and since the deck issues are more aesthetic and maintenance- related than structural, the bridge resurfacing will be deferred.” Which bridge are we referring to where we elected to defer maintenance (at least some of which appears structural) in FY 21/22? A. The reference is the First Avenue Bridge deck top replacement that was scheduled to be performed this current fiscal year. The bridge repair is not considered an imminent safety threat and Public Works is evaluating the options. There are no signs of pro blems with its other bridge elements, including the bridge girders, abutments, and piers. The bottom of the deck was observed to be in good condition. It is the upper portion of the concrete bridge deck that has widespread deterioration (shrinkage, cracking, delamination and spalling). The common repair recommendation is to remove the upper 2 ½ inches of the concrete deck and replace it with microsilica modified concrete. This is not a structural issue. Presently it is only a cosmetic and ride quality issue, which is why an alternate treatment due to the high bid costs is being pursued pending review and potential receipt of federal infrastructure dollars. Bids for bridge work have come in unreasonably high, and federal funding specifically for bridges is available as part of the Biden Infrastructure Bill and could be a possible solution. Design analysis costs of $40K have been added to the FY 22/23 budget to determine a more cost -effective solution. Maintenance costs of $60K ($20K per bridge – 1st Ave, La Cañada, Rancho Vistoso Big Wash) have also been added to the FY 22/23 budget. In conjunction, staff will be preparing a package for federal bridge monies as they become available. Q. What are the costs associated with generator replacements? How many generators are included? A. The proposed generator replacements include one at Town Hall and one at 680 Calle Concordia building totaling $725,000. The Town Hall generator is a carryover project as it has been difficult to procure a cost-effective generator in the current fiscal year. Q. What is the official number for the cost of the golf course irrigation at El Conquistador and La Cañada? A. The $7 million included in the FY22/23 TMRB reflects just what is budgeted next fiscal year. This amount does not include the amount projected to be spent this year or the amount projected for FY 23/24 to complete the Canada course. Total project cost for both courses is approximately $8.37 million, not including a 10% contingency included in the Capital Fund. Staff will reevaluate budgeted carryforward for FY22/23 in the coming weeks to account for current year spend and will update the amount prior to tentative budget adoption. Q. If we already bought the piping for the golf irrigation, how much did that cost, and how does that impact the overall project? How much did we budget this year (FY 21/22) for the golf irrigation? If we already purchased the supplies, won’t that reduce the budget in FY 22/23? A. The cost of purchased pipe and material spent to date is $574,476 for the Conquistador course, purchased by the contractor. The pipe and materials for the Canada course have not yet been purchased. The contractor is presently working on securing these materials. The budget includes $7 million for FY22/23, which could go down at the tentative budget adoption pending updated carryover estimates from staff. 6 Q. Is the Pusch House alarm system at Steam Pump Ranch budgeted? A. The funding for this work is included in the Steam Pump Ranch Garage CIP project in FY 21/22 and is expected to happen in the coming months. There is rollover capacity in FY 22/23 in case the work is not completed before June 30, 2022. Q. If we move a project back a year, do we ever do a project analysis of the effect on cost? A. For larger projects, department staff and the Town’s procurement professionals look at projections, reach out to vendors, and evaluate market conditions as part of an analysis prior to making a decision on whether to proceed or postpone a project. Every project has its own unique characteristics and circumstances that must be considered as part of this analysis. Q. With the Police Department capital requests, were they given everything asked for or was anything denied? They didn’t request Spillman. A. The FY23/24 budget includes all capital requests, including the usual replacement of vehicles for the department; Spillman is slated to occur in FY23/24. Q. Are we still doing the La Cholla and Moore intersection? A. The Town is only responsible for two legs of the La Cholla/Moore intersection, so investments would need to be made in partnership with Pima County. The intersection and Moore Road widening has been submitted to the RTA as a potential RTA Next project. In the meantime, staff will continue reach out to Pima County to see if they have any interest/funding to look at the intersection earlier. Q. I would like to see the Coronado restroom capital project in next year’s budget rather than the following year. A. Staff can adjust the project from FY 23/24 to FY 22/23 in the Tentative Budget. Q. Do we know how our partners in the NWRRDS project are doing? Do they have the resources to make it work? A. The Town Council was alerted on 5/9 that the partners decided to postpone the NWRRDS project. The latest bid came in significantly higher than the engineer’s estimate. Mr. Abraham will have more details at the upcoming budget study session. Q. How did we go from “Develop a Master Plan for the Rooney property that takes into consideration opportunities for economic growth, retention of open space and potential future municipal uses.” in the SLP, to The Rooney Ranch Municipal Facilities in CIP for $63M without Council input? A. The 10-year capital plan serves as a placeholder for future capital investments and is used each year to develop essentially “year 1” of the plan annually. The 10-year plan did not receive a final detailed review prior to the issuance of the Recommended B udget but is largely the same from what was presented to the Town Council during the February retreat. Staff plans to adjust that line to generically refer to a future police station for the Tentative Budget, rather than assume specific investments at the Rooney Ranch property, until Council has more discussion. Pending other Council input on this matter during the budget study sessions, this line item in the long-term capital plan will be adjusted, or can be removed altogether. 7 Q. What tasks are included in the Rooney Ranch Municipal Facilities FY 23/24 and FY 24/25 estimates? What are the anticipated source(s) of funds that will be used to finance the FY 23/24 and FY 24/25 estimates for Rooney Ranch Municipal Facilities? Has a cal culation been done to determine that adequate General Fund reserves (25% of expenditures) will remain on June 30, 2025 should the Rooney Ranch Municipal Facilities Capital Project in fact consume $57,300,000 in FY 24/25? The FY 25/26 CIP total estimate is $3,549,994 (see page 98 of Recommended Budget for reference). This includes $0 for Rooney Ranch Municipal Facilities. Does Staff currently estimate that the entire Rooney Ranch Municipal Facilities Project will be completed by the end of FY 24/25? A. See response to related question above. The 10-Year CIP is not restricted or based on all available revenues but is evaluated every year for priority capital projects, which are then included in the balanced Recommended Budget annually. At the February 2022 retreat with the Town Council, the Town Manager explained that the development of the Rooney property and construction of a new police station is not possible without an additional revenue source. The number in the CIP document was a rough estimate for full buildout of the property, but significant work would need to be done in order to refine the number, all pending Council direction. The 25% General Fund reserve is not planned for use, but rather is held for extenuating circumstances where its use could assist the municipality in addressing an emergency or offsetting revenue losses or expense increases temporarily in order to sustain service levels to the community. Operations Q. Why will the Procurement specialist help in FY22/23? A. Due to the volume of projects the Town is currently undertaking (parks bond, water utility, etc.) there are additional demands for procurement services. There are only two employees performing the work, so the high workload has been at a sustained level for some time. An additional person will add a higher level of quality control and help the team perform better by assisting in researching lowest cost vendors and analyzing contracts. This is especially important with the high inflation, continuing supply chain issues and overall competitive environment that exists. Q. Is the procurement specialist a temporary position? A. The position will be advertised as temporary with an expected two-year commitment to assist with supporting the division’s extensive work related to the robust capital workload. It will be reassessed at that time to determine whether it needs to continue . Q. How far in advance are we setting up contracts? Could that lock us into unfavorable agreements if market prices go down from the agreed cost? A. This is dependent on the project. In most cases, given the current market, contractors typically will not hold costs for more than 30 days. However, on some of the larger projects, cost escalation terms have been included that follow market material trends. Q. Are there any other employees that aren’t getting a merit increase besides Council? 8 A. Employees without a successful performance evaluation are not eligible for merit increases, nor are employees at the top of their pay range. Otherwise, only Council is exempted from merit increases. State law dictates the process Council must follow when changing the salaries/stipend for the elected body. Q. Licensing and software costs increase every year; is it conceivable that we would skip a year of upgrades? A. According to the Chief Information Officer, skipping upgrades would put the Town behind on security upgrades and leave the organization vulnerable to cyber-attacks. The Town’s insurance coverage could also be affected if software licensing is not kept up to date. Q. Given the prior investments already made to the courtroom, how will the potential improvements to the court building be evaluated for need vs. preference in order to keep costs down ? What room is used now for the jury room? A. The prior judge had requested to expand the lobby and build a new jury room in previous fiscal years, but the project was outcompeted by other critical CIP projects that ranked higher in priority. Staff will work with Judge Hazel and the architect to ensure the proposed changes are modest, while meeting the operational needs of the Court. Currently the Court uses the Hopi conference room and the Council Chambers for jury trial operations. Q. Does the police department have the ability to move/change positions based on needs? A. Yes, and Chief Riley does. Q. It was mentioned that the FTE change for the Aquatic Center gets us up to pre-pandemic hours, what does that mean? Did we cut hours for the pandemic? By adding these positions are we going back to pre-pandemic level or is it going beyond that? A. Aquatic Center hours of operation were reduced and adjusted through the pandemic. This included mid-day closures as well as closing earlier in the evenings. This request will bring the operation back to pre-pandemic hours. Q. What analysis has been done on the sustainability of the new hires proposed in the Recommended Budget? Please show the sustainability of added staffing levels. A. The budget is structurally balanced and even if there was a downturn, there are discretionary areas that could be reduced and attrition that could be implemented to ensure the Town stays within its allotted budget. Every position is evaluated for justification, cost reductions/savings, and service level needs in order to provide quality services to the community. The new positions in the Police Department will be fully funded by Smart & Safe state shared revenues, which are ongoing tax revenues, as well as opioid settlement funds, which will be approximately $100,000 annually over the next 18 years. The new assistant town prosecutor position will be mostly funded by the opioid settlement funds as well. Transit positions are billable to the RTA. The remaining ongoing cost impact of new positions is approximately $445,000, which will be more than supported by growth in local sales tax and state shared reve nue. A full evaluation of the ability of the Town to support these positions long term will be demonstrated in the 5 -year forecast, which is being finalized and will be presented at the Town Council’s June 1 meeting. 9 Q. 72% of budgeted General Fund expenditures is personnel, is there a threshold we try to stay in? Will the percentage be a concern if it continues to use more of the General Fund expenditures? A. There is not a percentage threshold for personnel set as a benchmark for municipal governments because the amount of capital and other one-time expenditures included in a given budget can vary significantly from year to year based on revenues, grants, etc. What is more useful to look at is the personnel cost compared to prior years and the Town’s ongoing revenues. As a matter of policy, all new staff positions must be funded by ongoing revenues and staffing levels are evaluated individually based on operational needs, efficiency, desired service levels, and potential cost savings. Q. What is the typical percentage of personnel as a percentage of total General Fund expenditures in prior years? A. FY 21/22: 57% (due to large O&M budget for the $27 million PSPRS payment) FY 20/21: 69% FY 19/20: 73% FY 18/19: 73% FY 17/18: 75% Q. How much does the IGA offset the personnel costs for transit? A. The IGA with the RTA not only covers personnel, but it also covers operations, maintenance, and capital as well. The Town generally covers 10% of the overall cost for everything. The RTA and the State cover the remaining 90%. Q. Have we done an analysis for the fleet maintenance positions? Can we contract it out? A. Staff has been contracting out for a variety of fleet services, which is what precipitated an analysis of these expenditures versus adding an additional mechanic. The analysis showed that adding the mechanic and bringing certain contracted services in-house saves money. Staff also expects an improvement on the preventative maintenance program and better customer service , including quicker turnarounds, especially for police vehicles. Q. Fitness instructors contract with the facility; is there an opportunity to instead hire a Town employee to open it up to contracted providers? A. The Town utilizes both contractors and employees to provide fitness classes. Some instructors don’t want to manage their own business and enjoy the simplicity of being a Town employee. Others are specialized and offer their services at multiple locations via their own business model. Q. In the first nine months of the fiscal year, we recruited and hired 82 positions. Do we have how many part-time people were hired, and full -time positions hired during the current fiscal year? A. To date (July 1, 2021 - May 6, 2022), the Town has hired a total of 114 people - 46 full time, 68 part time. During this time, there have been 106 people who terminated employment with the Town – 45 full time, 61 part-time. Q. What additional revenue is going to offset the cost of a new assistant town prosecutor? A. The opioid settlement funding, estimated at $100K per year for 18 years, will largely offset the cost of this new position. 10 Q. Can we use Pima County’s dark sky rules/ordinance for our dark sky code updates? A. Staff will be including Pima County’s updated rules/ordinances in their evaluation of the Town’s codes when this project starts. Q. Have we gotten our police and regular personnel compensation studies? A. Staff recently met with representatives of the police union to review the results of the study for the officers and sergeants. The Town is currently in negotiations per the terms of the existing MOU. Once finalized, those changes will be placed on the Town Council agenda. The consultant is expected to submit for staff review the results of the remainder of the Town’s classification/compensation evaluation by early June. As soon as those are reviewed and finalized, they will also be placed on the Town Council’s agenda for approval. Q. Do we have a chart of Town FTEs over time showing population and land area? A. These charts are typically provided in the adopted budget book. Below is the FTEs per thousand Town population chart in advance of the final budget. An annexation history map will also be included in the adopted budget book. Q. What is the rate of turnover for permanent staff? A. The turnover rate for permanent staff in FY21/22 to date is 11.9%. Q. Is there a recurring theme on staff turnover? A. The Town experienced several retirements over the past year, but no specific trends of note . Heavy equipment operators had some turnover as these positions compete with the private sector. The classification and compensation study will help evaluate the competitiveness of the Town pay rates and we expect the changes to ensure the Town remains competitive in the future. Q. Please show FTE for the past 10 years A. Actual FTEs for the past 10 years and year-over-year changes in parentheses are as follows: 11 Fiscal Year 2021-2022: 400.07 (+1.07, 0.3%) Fiscal year 2020-2021: 398.97 (+1.99, 0.5%) Fiscal Year 2019-2020: 396.97 (+5.49, 1.4%) Fiscal Year 2018-2019: 391.49 (+8.88, 2.3%) Fiscal Year 2017-2018: 382.61 (+4.95, 1.3%) Fiscal Year 2016-2017: 377.66 (+16.23, 4.5%) Fiscal Year 2015-2016: 361.43 (+19.43, 5.7%) Fiscal Year 2014-2015: 342.00 (+2.50, 0.7%) Fiscal Year 2013-2014: 339.50 (+11.94, 3.6%) Fiscal Year 2012-2013: 327.56 Q. How does the budgeted personnel costs for FY 22/23 total of $33.6M compare to FY 19/20, FY 20/21, FY 21/22? A. The budgeted personnel costs in the General Fund for the past three years and year -over-year changes in parentheses are as follows: FY 22/23: $33,614,618 (+$2,838,986, +9%) FY 21/22: $30,775,632 (+$1,798,822, +6%) FY 20/21: $28,976,810 (-$169,823, -1%) FY 19/20: $29,146,633 (+$2,110,283, +8%) Q. How does our compensation compare with surrounding jurisdictions? A. Historically Oro Valley has been competitive, if not higher, than the Southern Arizona region. The Town has retained a professional HR consulting firm, HRKnow, to study this topic. Results will be presented to Mayor and Council in the near future. Q. How do our benefits compare with surrounding jurisdictions? A. This topic has not been studied thoroughly. However, in reviewing the League of Arizona Cities and Towns most recent data regarding this issue for 2022, Oro Valley’s medical benefits and leave benefits are competitive with jurisdictions in the region. Q. What other departments have provided internship opportunities in addition to Clerk and CED? Are these internships high school and college? A. The Stormwater Division and Town Manager’s Office also provide annual internship opportunities. These are high school and college interns. Q. What is the plan to reduce the tax subsidy for the Aquatic Center? A. There is no specific plan to reduce the tax subsidy for the Aquatic Center. The subsidy changes each year based on the cost of expenses and the revenues collected. Reducing staff hours and facility availability does lower some costs, but it also impacts revenues. F ixed costs such as chlorine, water, electricity and other supplies continue to go up each year , as do personnel costs. Staff is continuously looking at ways in which to bring in additional revenues, with creative ideas having already been implemented. What is left is increasing fees: daily and membership rates; charges to swim teams; etc. Q. What is the liability insurance like for Police? 12 A. The Town is part of the Arizona Municipal Risk Retention Pool (AMRRP). The budget includes an increase of 10% for insurance premiums in FY23, but the coverage for Police is combined with the Town’s overall policy. Q. How do we measure the impact of Visit Tucson in dollars? A. Staff first uses the measurement of sales tax revenue from bed taxes as a primary indicator. The CED Director is currently working with Visit Tucson to incorporate better metrics in the upcoming FY22/23 agreement with Visit Tucson and will review some of the information at the budget study session. Q. Do we have any feedback from the Historical Society on Steam Pump Ranch? A. The Historical Society has provided input on various master plan evaluations, and most recently has expressed its strongest interest in the renovation of the Tack house for its continued use. Staff hired a structural engineer, who performed a structural assessment on the building, submitting a report concluding the structure is unsafe for habitable use. The engineer further indicated that investment in the building was not recommended due to a variety of building deficiencies (e.g. truss, foundation and overall building integrity problems). The Town is evaluating how to proceed given the structural issues, with the Building Official and Town Engineer recommending razing and reconstruction. The Tack House is not for public use but for the Historic Society to partially use for archiving, and storage for Town uses. It is not a historical building requiring reinvestment . The Town Council recently approved an MOU with the Historical Society that committed to the future use of a portion of the Tack House, pending the Society’s appropriate contribution to meet state Gift Clause requirements. The FY22/23 budget does includ e a combined total of $1.2 million in investments at Steam Pump Ranch, but the Tack House is not among the investments at this time. A plan will be developed in the coming fiscal year, to include discussions with the Historical Society, and will be presented for a future budget. Community Center Fund Q. The Community Center Fund O&M for FY 22/23 is $5.4 million, and it was $4.9 million in FY21/22, so it is increasing? A. The increase is in-line with projected revenues for next fiscal year and is attributable primarily to maintenance of the former Vistoso golf course ($275,000), as well as capital investments and building repair and maintenance costs that were previously budgeted in the General Fund or Capital Fund. Due to the strong performance of the Community Center Fund, it now is able absorb these costs in the upcoming fiscal year. Other increases include general liability insurance and software maintenance & licensing. Q. Does Indigo have any performance ince ntive fees? Would that be included in the Community Center fund in O&M? A. Yes, there are incentive fees, which are a maximum of 30% of the management fee. Yes, they would be recorded in O&M. Q. RE: Budget message page viii “Equipment Lifecycle Replacement $150,000.” On what date was our exercise equipment in the Community Center originally purchased? What is the maximum percentage of our Community Center gym equipment that has been inoperable at any one time? Do we have evidence that our exercise equipment is no l onger under factory warranty? 13 How many Community Center memberships do we expect to add because of new fitness equipment? A. The equipment to be replaced was acquired when the Town purchased the property; no warranties of that equipment were provided to the Town at acquisition. Staff have been told by former employees that the equipment is 15- 20 years old (depending on the unit). Staff does not track percentage of time equipment is inoperable at any one time. Staff does not project a notable increase to membership as a result of the replacement of the equipment, but does expect an increased level of satisfaction from current membership in maintaining the equipment. Q. RE: golf courses. What area of the driving range is proposed grass replacement as a capital expense taking place? If the replacement is in the driving range tee areas, why are golfers currently teeing off of grass while the astroturf mats are staked off? A. The entire floor of the driving range is proposed for grass replacement. Of main concern is the amount of dust intake that employees and equipment are experiencing daily while picking up range balls. The dust intake on the driving range unit is excessive and causes the range unit to break down several times per month. Additionally, from an overall facility experience, the re - grassing of the range floor promotes a better practice experience for golfers and is part of a normal maintenance upkeep responsibility for any golf course. The range tee is rotated daily between the upper level and the lower level. The mats are used on Mondays and Fridays to provide relief for the turf and aid in recovery. The driving range tee is scheduled for replacement as part of the overall irrigation project. Q. How many documented complaints regarding the condition of the bunkers at Conquistador and Canada can we share with Council? Will the proposed replacement sand be of a different grade than what we have? A. Going back to July 2020, Indigo staff have had hundred s of conversations with the members at El Conquistador regarding the conditions of the bunker sand and it has been a discussion point at a majority of the Grounds Committee meetings. While there is no specific data portal, Indigo does have recent survey comments regarding conditions of the bunkers from non -member play. The Golf Course Superintendent’s Association recommends bunker sand replacement every 5 -7 years as a normal lifecycle replacement for golf courses. Regarding the replacement sand, staff are investigating different options with similar properties to the current sand grade and options for a better grade of sand which will hold on the faces of the bunkers better than the current grade. Part of this project would include rock removal from current bunkers and removing any contaminated sand to provide a better golf experience. Q. RE: golf courses. What is total amount of the $1,200,000 loan to the Community Center Fund remaining to be paid back to the General Fund? Will a $120,000 loan repayment form the Community Center Fund be made to the General Fund in FY 22/23? A. A $120,000 loan repayment from the Community Center Fund to the General Fund is not included in either the FY21/22 adopted budget or the FY22/23 Recommended Budget. See response to similar question below. Q. What is the $120,000 loan payment to the General Fund from the Community Center Fund? A. When the Community Center was acquired, a transfer of $1.2 million was made from the General Fund to the Community Center Fund, to be paid back over a ten -year period. Four payments of $120K each were made from the Community Center Fund to the General Fund . Last year, Council 14 broadened the use of the Community Center fund to cover any Parks and Recreation projects , superseding the prior Council’s action to restrict the fund for just the Community Center and golf courses. Council further directed staff to use the fund to pay the debt service for a bond issuance the fund could reasonably support. As stated on the June 2, 2021 Council Tentative Budget adoption agenda item, staff noted that the $120,000 loan payment would be removed to provide for as much bond funding as possible. Council then adopted the budget, also superseding the prior Council’s action. A legal review noted that a current Council is not bound to the actions of a prior Council and therefore does not have to follow a specific prior policy. Council chose instead to honor the payback by moving projects that would otherwise have been paid from the General Fund into the Community Center Fund instead of moving cash to the General Fund. Q. Do we have a plan in FY22/23 budget for the $5 million surplus in the Community Center fund? A. The Recommended Budget estimates a FY22/23 ending fund balance of $3.2 million because part of the projected FY21/22 year-end surplus is indeed being recommended for one-time projects related to the Community Center and golf operations/facilities, as well as the capital investments for the former Vistoso golf course. The debt service for the parks bond is also paid out of the Community Center Fund which is a new ongoing expense. The $3.2 million ending fund balance will provide a cushion in the fund for potential revenue reductions in both golf and fitness/tennis memberships during capital investments if there is a serious recession, if the monsoon is dry and water costs increase, etc. Q. What is the cost for the maintenance on the former Vistoso golf course? A. $350,000 is included in the Recommended Budget for capital investments (paths, signage, safety, restrooms) and $275,000 is budgeted for ongoing maintenance costs. A contractor will be utilized for maintenance next fiscal year and likely into th e future until the property condition stabilizes, at which time the use of contract vs. staff will be reevaluated. Maintenance to be provided includes cutting back brush, clearing the pathways of overgrown plants and debris, and cleaning up the trash. Q. How old is the Community Center? Will its age present issues for renovations? A. The Community and Recreation Center facility, formerly the El Conquistador Country Club, was built in the mid 1980’s, so it is approximately 40 years old. The structure of the building is solid as was assessed at the time the Town acquired it. The architect will perform an architectural assessment to evaluate options for installation of the budgeted elevator and any proposed ADA improvements in the Community Center. Further investments in the building would need to be designed by a qualified architect. Q. Is there anything in the budget related to Pusch Ridge 9? A. There is $142,000 included in the Recommended Budget for ADA improvements around the parking lot, a walking path, and design improvements to bring the tennis center restroom bathroom into ADA compliance. The budget also includes $120,000 for tennis court resurfacing at that facility, an investment needed every ten years. Since the Recommended Budget was presented, staff have recommended $110,000 be added to the Tentative budget to resurface the roof at the Pusch Ridge facility and repair or replace the roof drains. This will be included in the expected changes. Q. What is the estimated cost for tee box improvements and treating the “fungus” observed in the greens for Pusch Ridge GC? 15 A. The Pusch Ridge Golf greens do not have fungus, but rather two potential issues. Greens • Poa Annua on the greens. Poa Annua is actually Blue Grass which is primarily a cool season grass which occurs in fall and winter. This grass does not tolerate hot temperatures and will die off later this summer. Because Poa Annua is usually found to contain many different strains, it causes bumpy putting surfaces as it produces large seed heads and becomes more prevalent later in the day after absorbing sunlight. The plan is to more aggressively treat the greens this fall, winter and next spring to reduce the likelihood of germination. Treatment will be every 2 weeks at an approximate chemical cost of $5,000 which is included in the O&M budget. • Fairy Ring. Three greens at Pusch Ridge show signs of this disease. It is more cosmetic in nature and produces dark green rings and is common on golf courses and athletic fields. The plan is to increase vertical mowing and aerification, top dress with sand and chemically treat the greens to try to neutralize the nitrogen levels at an estimated cost of $5,000 which is included in the O&M budget. Tees There is approximately 1 acre of tee box space at the Pusch Ridge Course. Over time, tee boxes become uneven due to sand build up and some minor soil shifting. The grass conditions on the tees this first season would be categorize d as average – some were good and some did not hold up well to the increased play levels. The recommended approach to improvement would be to remove any grass on the tee surface along with the top several inches of soil, add new sand and organic material, reshape the tees, sprig with Bermuda 419 grass, and then fertilize and water to grow in. Another option would be to sod the tee boxes with the same Bermuda 419 grass. The first option would be approximately $56,000, and the second approximately $75,000 a ssuming work is done in-house. There are several challenges to the tee box project. The first is that the irrigation system is currently not ideal for growing. The age and design have head placement too far apart and reduces coverage. Additionally, the wiring of the system has multiple heads turning on when only one may be needed and as a result a full, successful grow -in may not be achievable. Second, summer 2022 projects will be taxing the current Indigo maintenance team. Hiring temporary specialized labor for this task given the staff shortages is highly unlikely. Finally, material availability in this current market is of concern. The February 2021 Council direction did not include capital and/or major course improvements during the first three years of operation. However, if Council decides to proceed with course improvements, this work can be planned for summer of 2023. Q. What is the anticipated tax subsidy needed for the 36 holes in FY 22/23? A. The FY22/23 budget anticipates a tax subsidy of $563,974 in FY 22/23 due to expected reduced revenue resulting from the planned course closures for the irrigation installation.    Budget and Finance Commission 3. Meeting Date:05/17/2022   Requested by: David Gephart, Finance Submitted By:Wendy Gomez, Finance SUBJECT: PRESENTATION AND POSSIBLE DISCUSSION OF THE TOWN'S FY 21/22 FINANCIAL UPDATE THROUGH MARCH 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 Attachment A - General Fund  Council Memo - March 2022 Financial Update  Attachment B - Highway Fund  Attachment C-1 - Community Center Fund  Attachment C-2 Cash Flow  Attachment D - Summary All Funds  Attachment E - Gen Fund Local Sales Tax  Attachment F - Gen Fund State Shared Revenues  March 2022 Presentation  ATTACHMENT A March YTD Financial Status General Fund % Budget Completion through March --- 75% % Actuals YE % Variance to Budget to Budget REVENUES ` LOCAL SALES TAX 19,736,016 21,157,707 93.3% 26,070,335 23.2% LICENSES & PERMITS 1,930,126 1,849,000 104.4% 2,197,500 18.8% FEDERAL GRANTS 3,537,789 5,990,290 59.1% 6,068,448 1.3% STATE GRANTS 53,183 75,000 70.9% 75,000 0.0% STATE/COUNTY SHARED 10,829,576 13,729,923 78.9% 14,271,621 3.9% OTHER INTERGOVERNMENTAL 1,076,658 1,344,500 80.1% 1,364,700 1.5% CHARGES FOR SERVICES 1,891,862 2,387,776 79.2% 2,514,733 5.3% FINES 97,316 125,000 77.9% 125,000 0.0% INTEREST INCOME 34,805 150,000 23.2% 150,000 0.0% MISCELLANEOUS 126,149 264,000 47.8%248,825 -5.7% TOTAL REVENUES 39,313,480 47,073,196 83.5% 53,086,162 12.8% % Actuals YE % Variance to Budget to Budget EXPENDITURES CLERK 258,264 383,833 67.3% 380,230 -0.9% COMMUNITY & ECON. DEV. 1,944,088 3,044,614 63.9% 2,974,807 -2.3% COUNCIL 165,854 188,720 87.9% 188,109 -0.3% FINANCE 653,094 979,655 66.7% 944,743 -3.6% GENERAL ADMINISTRATION 11,918,873 14,459,559 82.4% 14,079,934 -2.6% HUMAN RESOURCES 309,962 535,390 57.9% 472,390 -11.8% INNOVATION & TECHNOLOGY 3,022,167 4,346,583 69.5% 4,273,811 -1.7% LEGAL 599,557 902,754 66.4% 883,661 -2.1% MANAGER 757,937 1,115,224 68.0% 1,107,750 -0.7% PARKS & RECREATION 2,369,848 3,446,361 68.8% 3,423,479 -0.7% POLICE 11,621,698 18,171,000 64.0% 17,206,223 -5.3% PUBLIC WORKS 3,770,920 5,364,091 70.3% 5,539,578 3.3% TOWN COURT 588,856 914,796 64.4% 792,786 -13.3% TRANSFERS OUT 4,424,073 7,408,264 59.7%6,262,832 -15.5% TOTAL EXPENDITURES 42,405,191 61,260,844 69.2% 58,530,333 -4.5% SURPLUS / (DEFICIT) (3,091,711) (14,187,648) (5,444,171) BEGINNING FUND BALANCE 32,408,542 Plus: Surplus / (Deficit)(5,444,171) ENDING FUND BALANCE **26,964,371 * 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 3/2022 Actuals thru 3/2022 Budget Town Manager’s Office TOWN COUNCIL REPORT DATE: May 18, 2022 TO: Mayor and Council THRU: Mary Jacobs, Town Manager FROM: David Gephart, Chief Financial Officer SUBJECT: March 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 March 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 the Town now three quarters of the way through 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 March (see attachment A). Revenues total $39.3 million or 83.5% of budget, while expenditures are at $42.4 million or 69.2% of the total budget. Highway Fund Highway Fund revenues and expenditures are trending better than expected through March (see attachment B). Revenues total $2.9 million or 79.7% of budget, while expenditures total $3.2 million or 78.3% of budget. Community Center Fund Revenues and expenditures for the Community Center Fund are trending better than expected through March (see attachment C-1 & C-2). Revenues total $7.1 million or 96.4% of budget while expenditures total $4.4 million or 56.2% of budget. BACKGROUND AND DETAILED INFORMATION: GENERAL FUND Attachment A shows General Fund revenues and expenditures through March, as well as year-end estimates for each category. The estimated year-end projections in the General Fund are as follows: Revenues: $53,086,162 Less: Expenditures: ($58,530,333) Preliminary Estimated Decrease in Fund Balance: ($5,444,171)* *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 $19.7 million or 93.3% of the budgeted amount of $21.2 million and are performing better than anticipated. Retail collections total $6.6 million, which is $760,469 or 13.3% higher than collections from the same time period last fiscal year. Both restaurant/bar collections as well as bed tax collections are up 44.6% and 173.9% respectively compared to collections from the same time period last fiscal year. Construction sales tax collections total $5.2 million through March 2022, which is $1,588,438 or 43.8% 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 $1.9 million or 104.4% of the budget amount of $1.8 million. Single Family Residential (SFR) permits issued through March total 143 and are a large portion of this revenue piece. This revenue category is expected to come in $349,000 or 18.8% over budget at this time due to commercial building activity.  State shared revenues total $10.8 million or 78.9% 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 $1.9 million or 79.2% 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 March, with overall savings of $2.7 million, or 4.5% 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 $1.2 million 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 $27.0 million, or 50.1% of budgeted expenditures. HIGHWAY FUND Highway Fund Revenues  State shared highway user funds total $2.9 million or 79.6% of the budget amount of $3.6 million. At this point in time, these revenues are projected 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 $265,000 or 7.3%. Highway Fund Expenditures  Highway Fund expenditures though March are at $3.2 million or 78.4% 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. 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 March total $7.1 million or 96.4% of the budget amount of $7.4 million.  Contracted operating revenues total about $3.6 million through March. This is approximately $702,000 or 24.2% higher than revenues from the same time period last fiscal year. At this time, contracted revenues are estimated to come in about $770,000 or 21.3% higher than budgeted due to anticipated, across-the-board outperformance compared to budget.  Town operating revenues for March are $808,000, 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 end the fiscal year with a favorable budget variance of $287,000 or 41.2%.  Local sales tax revenues for March total $2.6 million or 87.8% 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 $4.4 million or 56.2% of the budgeted amount of $7.8 million.  Contracted operating expenditures total $3.4 million, or 71.8% of the budgeted amount of $4.7 million. Contracted expenditures are estimated to come in approximately $231,000 or 4.9% 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 nearly $5.7 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 $77,947 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 B March YTD Financial Status FY 2021/2022 % Budget Completion through March --- 75% Actuals thru 3/2022 Budget % Actuals to Budget Year End Estimate * YE % Variance to Budget REVENUES - LICENSES & PERMITS 22,852 25,000 91.4% 30,000 20.0% STATE/COUNTY SHARED 2,876,605 3,614,922 79.6% 3,870,000 7.1% INTEREST INCOME 5,333 6,000 88.9% 8,000 33.3% MISCELLANEOUS 4,171 2,000 208.6%5,069 153.5% TOTAL REVENUES 2,908,961 3,647,922 79.7% 3,913,069 7.3% Actuals thru 3/2022 Budget % Actuals to Budget Year End Estimate * YE % Variance to Budget EXPENDITURES TRANSPORTATION ENGINEERING 2,948,803 3,766,525 78.3% 3,745,678 -0.6% STREET MAINTENANCE 255,897 324,000 79.0%324,000 0.0% TOTAL EXPENDITURES 3,204,700 4,090,525 78.3% 4,069,678 -0.5% SURPLUS / (DEFICIT) (295,739) (442,603) (156,609) BEGINNING FUND BALANCE 1,242,978 Plus: Surplus / (Deficit) (156,609) ENDING FUND BALANCE ** 1,086,369 * 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 March YTD Financial Status % Budget Completion through March --- 75% % Actuals YE % Variance to Budget to Budget REVENUES CONTRACTED OPERATING REVENUES Golf Revenues, Trail and Cart Fees 2,025,732 1,966,245 103.0% 2,402,510 22.2% Member Dues 847,917 957,000 88.6% 1,123,086 17.4% Food & Beverage 476,957 473,465 100.7% 585,480 23.7% Merchandise & Other 251,344 225,675 111.4%281,321 24.7% 3,601,950 3,622,385 99.4% 4,392,397 21.3% TOWN OPERATING REVENUES Daily Drop-Ins 41,138 30,000 137.1% 49,000 63.3% Member Dues 536,143 526,480 101.8% 620,500 17.9% Recreation Programs 160,984 82,500 195.1% 240,000 190.9% Swim Team/Swim Lessons - 8,000 0.0% - -100.0% Facility Rental Income 69,555 50,500 137.7%75,000 48.5% 807,820 697,480 115.8% 984,500 41.2% OTHER REVENUES Local Sales Tax 2,574,808 2,932,798 87.8% 3,430,364 17.0% Real Property Rental Income 19,502 19,502 100.0% 19,502 0.0% Interest Income (8,842) 1,000 -884.2% 15,594 1459.4% Miscellaneous 137,508 125,100 109.9%162,487 29.9% 2,722,976 3,078,400 88.5% 3,627,947 17.9% TOTAL REVENUES 7,132,746 7,398,265 96.4% 9,004,844 21.7% % Actuals YE % Variance to Budget to Budget EXPENDITURES CONTRACTED OPERATING EXPENDITURES Personnel 1,083,495 1,641,903 66.0% 1,541,284 -6.1% Food & Beverage 407,740 445,441 91.5% 470,135 5.5% Operations & Maintenance 1,755,822 2,429,634 72.3% 2,285,843 -5.9% Equipment Leases 129,134 184,550 70.0%173,082 -6.2% 3,376,191 4,701,528 71.8% 4,470,344 -4.9% TOWN OPERATING EXPENDITURES Personnel 563,417 875,291 64.4% 891,376 1.8% Operations & Maintenance 175,219 211,290 82.9%211,290 0.0% 738,636 1,086,581 68.0% 1,102,666 1.5% 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 4,376,128 7,789,128 56.2% 6,021,168 -22.7% SURPLUS / (DEFICIT) 2,756,618 (390,863) 2,983,676 BEGINNING FUND BALANCE 2,676,793 Plus: Surplus / (Deficit)2,983,676 ENDING FUND BALANCE **5,660,469 * 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 3/2022 Budget Year End Estimate * Community Center Fund Actuals thru 3/2022 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 4,270 2,450 1,820 3,836 434 Rounds ‐ Member 25,951 20,200 5,751 24,159 1,792 770 480 290 313 457 Rounds ‐ Outing 5,686 3,000 2,686 2,629 3,057 8,432 6,485 1,947 5,810 2,622 Rounds ‐ Public 43,316 38,045 5,271 36,102 7,214 ==================================================================================================================================================================== 13,472 9,415 4,057 9,959 3,513 Total Rounds 74,953 61,245 13,708 62,890 12,063 Revenue 391,461 266,225 125,236 269,410 122,051 Green Fees 1,779,113 1,401,625 377,488 1,421,625 357,487 25,893 19,590 6,303 23,626 2,267 Cart Fees 210,617 174,545 36,072 188,709 21,908 4,697 5,000 (303)4,907 (210)Driving Range 36,003 39,500 (3,497)37,828 (1,826) 4,954 0 4,954 0 4,954 Golf Cards/Passes 19,485 0 19,485 0 19,485 30,475 24,600 5,875 35,312 (4,836)Pro Shop Sales 174,283 156,000 18,283 166,999 7,284 36,270 36,400 (130)23,257 13,013 Food (Food & Soft Drinks) 242,980 181,565 61,415 118,817 124,162 32,131 28,600 3,531 29,696 2,435 Beverages (Alcohol) 212,524 174,625 37,899 174,014 38,511 819 0 819 (412)1,230 Other Food & Beverage Revenue 21,453 0 21,453 1,925 19,528 6,273 1,900 4,373 3,582 2,690 Other Golf Revenues (Club Rent, Handica 27,183 10,625 16,558 19,309 7,874 3,584 1,500 2,084 2,878 706 Clinic / School Revenue 23,182 8,000 15,182 18,479 4,703 99,830 82,500 17,330 93,616 6,214 Dues Income ‐ Monthly Dues 847,917 722,500 125,417 747,000 100,917 749 0 749 1,193 (443)Miscellaneous Income and Discounts 7,212 0 7,212 5,314 1,898 ================================================================================= ============================================================= ================ 637,137 466,315 170,822 487,065 150,072 Total Revenue 3,601,950 2,868,985 732,965 2,900,019 701,931 Cost of Sales 17,159 17,180 21 23,458 6,300 COGS ‐ Pro Shop 122,286 115,450 (6,836)114,573 (7,713) 10,855 10,593 (262)6,090 (4,765)COGS ‐ Food 70,607 48,102 (22,505)36,521 (34,086) 2,176 1,290 (886)1,028 (1,149)COGS ‐ Non‐Alcoholic Beverages 12,000 10,740 (1,260)10,434 (1,566) 9,149 8,580 (569)8,367 (782)COGS ‐ Alcohol 64,365 52,388 (11,978)50,858 (13,507) ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ 39,339 37,643 (1,696)38,943 (396)Total Cost of Sales 269,258 226,680 (42,578)212,386 (56,872) ================================================================================= ============================================================= ================ 597,798 428,672 169,126 448,122 149,676 GROSS INCOME 3,332,692 2,642,305 690,387 2,687,633 645,059 Labor 39,130 38,559 (571)28,038 (11,092)Golf Operation Labor 262,209 272,136 9,927 220,553 (41,656) 9,211 14,513 5,302 9,347 137 General and Administrative 86,325 107,713 21,387 89,658 3,333 55,652 68,040 12,388 58,131 2,479 Maintenance and Landscaping 527,283 587,197 59,914 508,752 (18,530) 23,247 20,803 (2,443)18,613 (4,634)F&B 200,078 161,731 (38,348)146,250 (53,828) 4,316 6,671 2,355 6,227 1,911 Sales and Marketing 59,408 53,541 (5,867)57,421 (1,987) ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ 131,555 148,586 17,031 120,356 (11,199)Total Direct Labor 1,135,303 1,182,317 47,014 1,022,635 (112,668) 9,797 14,116 4,319 11,125 1,328 Total Payroll Taxes 89,762 112,320 22,558 93,413 3,650 10,155 12,500 2,345 9,980 (174)Total Medical/Health Benefits 72,843 112,500 39,657 93,713 20,870 2,639 2,080 (559)1,789 (850)Total Workmans Comp 20,716 18,620 (2,096)15,457 (5,259) ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ 22,591 28,696 6,105 22,895 304 Total Payroll Burden 183,321 243,440 60,119 202,582 19,262 ================================================================================= ============================================================= ================ 154,146 177,282 23,136 143,251 (10,895)Total Labor 1,318,624 1,425,757 107,133 1,225,218 (93,407) Other Operational Expenses 8,767 2,920 (5,847)7,201 (1,565)Golf Ops 67,583 45,360 (22,223)64,966 (2,618) 16,764 13,510 (3,254)16,165 (599)G&A 111,648 100,160 (11,488)131,132 19,483 36,723 26,050 (10,673)25,264 (11,459)Maintenance 473,697 429,100 (44,597)392,246 (81,452) 3,384 4,710 1,326 2,283 (1,101)F&B 25,638 47,490 21,852 22,116 (3,523) 1,650 1,050 (600)1,105 (545)Sales and Marketing 16,938 17,925 987 20,754 3,816 15,394 14,783 (611)13,041 (2,353)Golf Cart Leases 129,134 133,055 3,921 113,823 (15,311) 0 0 0 0 0 Equipment Leases 0 0 0 41,928 41,928 72,374 68,200 (4,174)61,633 (10,741)Utilities ‐ Maintenance 674,693 848,600 173,908 687,087 12,395 14,070 13,500 (570)19,051 4,981 Utilities ‐ G&A 138,271 125,455 (12,816)184,273 46,003 10,200 10,200 0 10,000 (200)Management Fees 91,800 91,800 0 90,000 (1,800) 4,039 3,300 (739)3,812 (227)Insurance ‐ P&C 34,122 29,700 (4,422)39,790 5,669 ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ 183,365 158,223 (25,142)159,556 (23,810)Total Other Operational Expenses 1,768,123 1,868,645 100,522 1,788,115 19,991 ================================================================================= ============================================================= ================ 337,511 335,505 (2,007)302,807 (34,704)Total Expenses 3,086,748 3,294,402 207,655 3,013,332 (73,416) ================================================================================= ============================================================= ================ 260,286 93,167 167,119 145,315 114,971 EBITDAR 245,945 (652,097)898,042 (325,699)571,644 ================================================================================= ============================================================= ================ 260,286 93,167 167,119 145,315 114,971 EBITDA 245,945 (652,097)898,042 (325,699)571,644 Interest Expense/Dep&Amt 0 0 0 20,930 20,930 Other Expense (343)0 343 40,218 40,561 0 0 0 0 0 Capital Improvements/Cap Reserve 20,529 0 (20,529)0 (20,529) ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ 0 0 0 20,930 20,930 Total Interest Expense 20,186 0 (20,186)40,218 20,032 ================================================================================= ============================================================= ================ 260,286 93,167 167,119 124,386 135,901 Net Income 225,759 (652,097)877,856 (365,917)591,676 El Conquistador Golf Club For the Month Ending March 31st, 2022 March YTD ATTACHMENT DConsolidated Year-to-Date Financial Report through March 2022FY 2021/2022FundFY 21/22Beginning BalanceRevenueOther Fin Sources/TransfersTotal In Personnel O&M CapitalDebt ServiceCapital Leases /Transfer OutTotal OutLeft in Accounts Through Mar. 2022General Fund 32,408,542 39,313,480 39,313,480 20,225,647 17,391,436 364,035 4,424,073 42,405,191 29,316,831 Highway Fund 1,242,979 2,908,961 2,908,961 816,752 396,254 1,991,694 3,204,700 947,240 Grants and Contributions Fund - 146,696 146,696 26,079 40,625 66,704 79,992 Seizure & Forfeiture - Justice/State 266,810 88,378 88,378 123,461 123,461 231,727 Community Center Fund 2,676,793 7,132,746 7,132,746 1,646,912 2,338,781 92,782 297,653 4,376,128 5,433,411 Municipal Debt Service Fund 165,436 90,168 19,210,226 19,300,394 17,981,083 1,517,152 19,498,235 (32,405) Oracle Road Debt Service Fund 4,194 (1) (1) - 4,193 Water Resource System & Dev. Impact Fee Fund 18,744,638 972,973 972,973 75,000 1,098,567 319,207 1,492,774 18,224,837 Townwide Roadway Dev Impact Fee Fund 1,978,878 259,450 259,450 46,905 46,905 2,191,423 Parks & Recreation Impact Fee Fund 316,645 137,240 137,240 - 453,885 Police Impact Fee Fund 168,764 67,873 67,873 117,750 117,750 118,887 Capital Fund 2,504,029 796,330 28,844,742 29,641,072 70,377 367,932 2,279,187 2,717,496 29,427,605 PAG/RTA Fund 1,248,618 21,426 21,426 364,782 364,782 905,262 Water Utility 13,666,981 14,180,728 14,180,728 2,367,523 5,822,494 1,042,159 4,215,022 2,402 13,449,600 14,398,109 Stormwater Utility 1,001,740 1,135,781 1,135,781 586,124 225,680 811,804 1,325,717 Benefit Self Insurance Fund 2,379,019 2,869,013 2,869,013 2,346,743 2,346,743 2,901,289 Recreation In-Lieu Fee Fund 17,045 (5) (5) - 17,040 Total 78,791,110 70,121,237 48,054,968 118,176,205 25,713,335 47,094,943 7,320,736 6,051,381 4,841,878 91,022,273 105,945,042 ATTACHMENT EGeneral Fund Local Sales Tax Collections FY 2021/22CATEGORY JULYAUGSEPOCTNOVDECJANFEBMARAPRMAYJUNETOTALConstruction Sales Tax 441,038 419,552 651,924 906,165 509,231 436,821 829,833 525,234 491,178 260,125 479,663 273,391 5,210,976 Utility Sales Tax 321,489 383,548 329,545 323,173 285,048 238,499 253,620 474,092 115,418 249,837 251,434 268,457 2,724,432 Retail Sales Tax 675,726 647,693 641,711 682,029 727,762 814,794 1,015,258 701,089 686,381 790,586 760,456 733,343 6,592,443 Bed Tax 130,217 117,012 93,538 108,884 392,162 157,378 205,021 181,927 257,471 138,885 139,582 132,352 2,054,429 Restaurant & Bar Sales Tax 172,386 162,947 172,178 195,482 227,724 191,664 226,775 199,622 206,978 200,866 201,487 202,109 1,755,757 All Other Local Sales Tax *181,767 180,252 164,385 191,016 284,083 217,626 274,274 225,089 254,639 194,255 191,120 196,586 1,973,130 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$ 1,834,554$ 2,023,742$ 1,806,238$ 19,900,348$ 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 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 4,521,956 County Auto Lieu 100,364 178,439 214,084 179,539 176,572 183,593 166,138 185,396 187,906 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$ 10,829,576$ 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 March 2022 May 17, 2022 GENERAL FUND REVENUES REVENUE SOURCE Budget Actuals Thru 3/2022 % of Budget Year-End Estimate Notes Local Sales Taxes $ 21,157,707 $ 19,736,016 93.3%$ 26,070,335 Trending higher than expected; continued growth and strong recovery in categories impacted by COVID State Shared Revenues 13,729,923 10,829,576 78.9%14,271,621 Trending higher than expected; new Smart & Safe funds received this year Charges for Services 2,387,776 1,891,862 79.2%2,514,733 Trending higher than expected; improvement in recreation revenue Licenses & Permits 1,849,000 1,930,126 104.4%2,197,500 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 3,590,972 59.2%6,143,448 Year-end estimate includes amount of American Rescue Plan Act (ARPA) funds recognized this year All Other 1,883,500 1,334,928 70.9%1,888,525 Includes other intergovernmental revenue, interest income and miscellaneous revenue TOTAL GENERAL FUND REVENUES $ 47,073,196 $ 39,313,480 83.5%$ 53,086,162 Budget variance due to outperforming sales tax collections, state shared revenue and permit revenue GENERAL FUND EXPENDITURES EXPENDITURE CATEGORY Budget Actuals Thru 3/2022 % of Budget Year-End Estimate Notes Personnel $ 30,775,632 $ 20,225,646 65.7% $ 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 17,391,437 79.1% 22,053,707 Includes $10M PSPRS payment from reserves. Added Smart & Safe funds to year-end estimate. Capital 1,095,175 364,035 33.2% 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 $ 42,405,191 69.2% $ 58,530,333 Budget variance mainly due to debt service transfer for pension obligation bonds Budgeted Deficit/Use of Fund Balance: ($14.2M) Estimated Deficit/Use of Fund Balance = ($5.4M) Estimated Ending Fund Balance: $27.0M 50.1% of budgeted expenditures Exceeds Council 25% Policy by $13.5M GENERAL FUND HIGHWAY FUND REVENUES REVENUE SOURCE Budget Actuals Thru 3/2022 % of Budget Year-End Estimate Notes Licenses & Permits $ 25,000 $ 22,852 91.4%$ 30,000 Trending above budget at this time State Shared Revenues 3,614,922 2,876,605 79.6%3,870,000 Trending higher than expected All Other 8,000 9,504 118.8%13,069 Additional revenues attributable to insurance recoveries and interest income TOTAL HIGHWAY FUND REVENUES $ 3,647,922 $ 2,908,961 79.7%$ 3,913,069 Expected to exceed budget due to additional HURF revenues HIGHWAY FUND EXPENDITURES EXPENDITURE CATEGORY Budget Actuals Thru 3/2022 % of Budget Year-End Estimate Notes Personnel $ 1,208,870 $ 816,752 67.6% $ 1,188,023 Trending slightly lower than expected; % of budget reflects timing of payrolls; slight savings projected Operations & Maintenance 616,655 396,254 64.3% 616,655 Trending as expected; larger line-items include striping, field supplies, electricity and traffic signal maintenance Capital 2,265,000 1,991,694 87.9% 2,265,000 Trending as expected; timing of pavement preservation program TOTAL HIGHWAY FUND EXPENDITURES $ 4,090,525 $ 3,204,700 78.3% $ 4,069,678 Slight savings in personnel projected for year-end Budgeted Deficit/Use of Fund Balance: ($443,000) Estimated Deficit/Use of Fund Balance = ($157,000) Estimated Ending Fund Balance: $1.1M HIGHWAY FUND COMMUNITY CENTER FUND REVENUES REVENUE SOURCE Budget Actuals Thru3/2022 % of Budget Year-End Estimate Notes Contracted Operating Revenues $ 3,622,385 $ 3,601,950 99.4%$ 4,392,397 All revenues sources trending higher than expected. Strong performance particularly in golf revenues and member dues. Town Operating Revenues 697,480 807,820 115.8%984,500 Exceeding budget in member dues, recreation program revenue, facility rental income and daily drop-ins Other Revenues 3,078,400 2,722,976 88.5%3,627,947 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 $ 7,132,746 96.4%$ 9,004,844 Total revenues projected to exceed budget by $1.6 million or 21.7%, due to sales tax, fitness and recreation program revenue, and golf revenue. COMMUNITY CENTER FUND EXPENDITURES EXPENDITURE CATEGORY Budget Actuals Thru 3/2022 % of Budget Year-End Estimate Notes Contracted Operating Expenditures $ 4,701,528 $ 3,376,191 71.8% $ 4,470,344 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 1,086,581 738,636 68.0% 1,102,666 Trending as expected 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 $ 4,376,128 56.2% $ 6,021,168 Budget savings of $1.6 million in transfers out. Outperformance in contracted operating expenditures. COMMUNITY CENTER FUND Budgeted Deficit/Use of Fund Balance: ($0.4M) Estimated Surplus: $3.0M Estimated Ending Fund Balance: $5.7M MONTHLY FINANCIAL UPDATE QUESTIONS?