HomeMy WebLinkAboutPackets - Budget and Finance Committee (40)
AGENDA ORO VALLEY
BUDGET AND FINANCE COMMISSION
REGULAR SESSION
NOVEMBER 15, 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 OCTOBER 18, 2022 REGULAR SESSION MEETING MINUTES
2.REVIEW, DISCUSSION AND POSSIBLE ACTION ON PROPOSED FINANCIAL AND BUDGETARY
POLICIES
3.PRESENTATION AND POSSIBLE DISCUSSION OF THE TOWN'S FY 22/23 FINANCIAL UPDATE
THROUGH SEPTEMBER 2022 (Please reference attachments)
4.PRESENTATION OF STATUS UPDATE ON VARIOUS PROJECTS
5.DISCUSSION REGARDING OPPORTUNITIES FOR THE COMMISSION TO PARTICIPATE IN THE
NEXT 10-YEAR GENERAL PLAN UPDATE.
COUNCIL LIAISON COMMENTS
FUTURE AGENDA ITEMS
ADJOURNMENT
POSTED: 11/9/22 at 5 P.M. by D.T.
POSTED: 11/9/22 at 5 P.M. 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:11/15/2022
Submitted By:Alison Cote, Legal
SUBJECT:
REVIEW AND APPROVAL OF THE OCTOBER 18, 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 October 18, 2022 regular session meeting minutes."
Attachments
Draft Minutes - 10/18/22
D R A F T
MINUTES
BUDGET AND FINANCE COMMISSION
REGULAR SESSION
OCTOBER 18, 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 4:05 P.M.
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, Deputy Finance Director
Tobin Sidles, Legal Services Director
Joseph Winfield, Mayor
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:
- Council tabled the General Fund to Water Fund loan. Staff expects to bring this back for Council consideration
in December.
- Establishing an additional Commission for Health Benefits Trust.
REGULAR SESSION AGENDA
1.REVIEW AND APPROVAL OF THE SEPTEMBER 20, 2022 REGULAR SESSION MEETING MINUTES
Motion by Commissioner James Beasley, seconded by Vice Chair Michael Mason to approve the
September 20, 2022, regular session meeting minutes as written.
Vote: 4 - 0 Carried
2.REVIEW, DISCUSSION AND POSSIBLE ACTION ON PROPOSED TOWN FINANCIAL AND
2.REVIEW, DISCUSSION AND POSSIBLE ACTION ON PROPOSED TOWN FINANCIAL AND
BUDGETARY POLICIES
Discussion ensued amongst Chief Financial Officer David Gephart and Commissioners on proposed
Town Financial and Budgetary policies.
Determination is that Finance will bring back Proposed Town Financial and Budgetary Policies after
edits.
3.PRESENTATION AND POSSIBLE DISCUSSION OF THE TOWN'S FY 22/23 FINANCIAL UPDATE
THROUGH AUGUST 2022 (Please reference attachments)
Deputy Finance Director Wendy Gomez presented on Agenda Item #3.
Discussion ensued amongst staff and commissioners.
COUNCIL LIAISON COMMENTS
Mayor Joseph Winfield commented on the following:
- Town Manager Mary Jacobs submitted resignation on September 23, 2022.
- Deputy Town Manager Chris Cornelison is the Acting Town Manager.
- Human Resources began the process for securing an Executive Search Firm.
- Naranja Park update
- Ribbon cutting for Golf/Tennis court on October 26, 2022.
- State of the Town is on October 27, 2022.
FUTURE AGENDA ITEMS
None at this time.
ADJOURNMENT
Motion by Commissioner James Beasley, seconded by Vice Chair Michael Mason to adjourn the
meeting at 5:15 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 18 day of October, 2022. I
further certify that the meeting was duly called and held and that a quorum was present.
Dated this 7 day of November, 2022.
___________________________
Andrea Sirois
Executive Assistant to Town Manager, Mayor and Council
Budget and Finance Commission 2.
Meeting Date:11/15/2022
Submitted By:David Gephart, Finance
SUBJECT:
REVIEW, DISCUSSION AND POSSIBLE ACTION ON PROPOSED FINANCIAL AND BUDGETARY POLICIES
RECOMMENDATION:
Approve draft financial and budgetary policies as presented
-or-
Approve draft financial and budgetary policies as amended
EXECUTIVE SUMMARY:
Proposed changes from the last meeting are as follows:
1) Policy 1-4 Banking and Investments: 6.10 - clarification has been added that money market mutual funds that are
treasury-based are priced at $1/share.
2) Policy 1-9 Debt: 2.0 - a statement has been added that non-enterprise fund debt will only be considered should
excise taxes exceed 3x the annual debt service requirements of existing and proposed debt.
3) Policy 1-10 Fund Balance: 1.0 - the target committed fund balance has been reduced to 30%.
4) Policy 1-10 Fund Balance: 2.0 - the target unassigned fund balance is a positive balance.
BACKGROUND OR DETAILED INFORMATION:
At the last Budget and Finance Commission meeting, staff reviewed proposed changes to Town Financial and
Budgetary policies and received feedback from commissioners. That feedback has resulted in the following
changes to the proposed policies:
1) Policy 1-4 Banking and Investments: 6.10 - clarification has been added that money market mutual funds that are
treasury-based are priced at $1/share.
2) Policy 1-9 Debt: 2.0 - a statement has been added that non-enterprise fund debt will only be considered should
excise taxes exceed 3x the annual debt service requirements of existing and proposed debt.
3) Policy 1-10 Fund Balance: 1.0 - the target committed fund balance has been reduced to 30%.
4) Policy 1-10 Fund Balance: 2.0 - the target unassigned fund balance is a positive balance.
FISCAL IMPACT:
N/A
SUGGESTED MOTION:
Move to approve recommending draft Town financial and budgetary policies to Town Council as presented.
-or-
Move to approve recommending draft Town financial and budgetary policies to Town Council as amended.
Attachments
Draft Policies
1
Town of Oro Valley, Arizona
Financial and Budgetary Policies
Guiding Principles:
The Town of Oro Valley has an important responsibility to its residents to carefully account for
public funds, manage its finances prudently and plan for the adequate funding of services desired
by the public. Sound financial policies help ensure the Town’s capability to adequately fund and
provide government services desired by the community. The policies contained herein are
designed to foster and support the continued financial strength and stability of the Town of Oro
Valley. Following these policies enhances the Town’s financial health as well as its image and
reputation with residents, the general public, bond and credit rating agencies and investors. The
policies serve as guidelines for the Town’s overall fiscal planning and management. In addition,
both the Government Finance Officers Association (GFOA) and the National Advisory Council on
State and Local Budgeting (NACSLB) recommend formal adoption of financial policies by the
jurisdiction’s governing board. The most recent Town Council amendment and re-adoption of
the policies occurred on July 7, 2021 per Resolution (R)21-37.
2
Table of Contents
1-1 Annual Budget Process 3
1-2 Strategic Long-Range Financial Planning 6
1-3 Fiscal Monitoring & Reporting 7
1-4 Banking and Investments 8
1-5 Capital Expenditures and Improvements 14
1-6 PSPRS Pension Funding 17
1-7 Revenues 21
1-8 Expenditures 23
1-9 Debt 25
1-10 Fund Balance 27
1-11 Internal Controls 30
1-12 Grants 31
1-13 Accounting, Auditing, and Financial Reporting 32
3
Town of Oro Valley Policy
Annual Budget Process
1-1
Last Review Review Month
2021 July
Responsible for maintaining & applying this policy: Finance
Next Review:
______________________________________________________________________________
Purpose: To establish policy for setting guidelines for budgeting to help ensure a financially
sound, accountable, and transparent process.
Scope: All personnel
Definitions:
Appropriations: The legal authority to spend money granted through an adopted budget.
Balanced budget: A financial plan in which all resources are equal to all requirements.
Budget: A financial plan estimating revenues and expenditures over a set period of time, which
is usually one fiscal year.
Capital budget: A financial plan specific to procurement of durable, higher value purchases which
satisfy requirements of the capital threshold of the Town, along with the resources necessary to
fund the capital purchases.
Contingency: Planned financial reserves in a fund that are not dedicated to a particular function,
department or activity, whose purpose is to mitigate uncertainty inherent in cost estimates, as
well as unpredictable risk exposure.
Fiscal year: A year utilized for financial reporting and budgeting purposes. For the Town, the
fiscal year begins July 1 and ends June 30.
Fund: A fiscal and accounting entity with a self -balancing set of accounts.
One-time revenues: Revenues which are expected to only be received once, and do not provide
an ongoing inflow of monies to the Town.
Operating budget: A financial plan of current annual spending, along with the resources
necessary to pay for it.
4
Recurring expenditures: Expenditures which are expected to be incurred regularly and routinely
required by Town operations.
Recurring revenues: Revenues which are expected to provide an ongoing inflow of monies to the
Town.
Structurally balanced budget: A budget in which all recurring revenues are equal to all recurring
expenditures.
Policy:
1.0 Operating Budget and Capital Budget – The operating budget and capital budget shall
serve as the annual financial plan of the Town. The budget shall provide staff with the
resources necessary to accomplish the Town Council’s determined service levels, and will
serve as the policy documents of the Town Council for implementing its Strategic
Leadership Plan and other plans as periodically adopted by the elected body or voted on
by the community.
2.0 Budget Timelines – The Town Manager shall annually prepare and present a Town
Manager’s Recommended Budget to Town Council at least two months prior to the
beginning of a new fiscal year. Based upon feedback from Town Council, a Tentative
Budget shall be developed and approved by Town Council prior to the beginning of a new
fiscal year establishing the maximum level of spending for the new fiscal year. The final
budget shall be adopted by Town Council no later than July 31. The Town Manager shall
meet all budget requirements specified in State Law.
3.0 Balanced Budget – The proposed budget will be balanced for the ensuing fiscal year.
Deferrals, short-term loans, or one-time revenue sources will be avoided as budget
balancing techniques.
4.0 Contingency – The budget shall include contingency appropriation to provide for
unanticipated increases in service delivery costs, emergencies, and needs that may arise
through the fiscal year. The contingency appropriation may only be expended upon Town
Council approval.
5.0 Current Funding Basis – The Town shall budget and operate on a current funding basis.
Expenditures shall be budgeted and controlled so as not to exceed expected current
revenues. The Town shall strive to achieve a structurally balanced budget whereby
recurring expenditures are funded exclusively with recurring revenues.
6.0 Budget Development – The Town will use strategic, multi-year fiscal planning,
conservative revenue forecasts and a program/performance-based budgeting method.
This method requires each department to establish fiscal year goals and objectives that
will be evaluated to determine the effectiveness and efficiency of both department and
Town resources, such process and procedure to be up to the Town Manager . Utilization
of the program/performance budget format will provide a basis for evaluation of service
and other impacts of potential increases or decreases in funding. The budget will
incorporate the best available estimates of revenues and expenditures.
5
7.0 Budget Management – The Town Council shall delegate authority to the Town Manager
in managing the budget after it is formally adopted, including transfer of funds within
programs, categories, and departments. The Town Manager may further delegate levels
of authority for the daily operation of the budget.
8.0 Level of Budget Adoption – The annual budget shall be adopted at the fund level, except
in the General Fund where it shall be adopted at the department level. To provide
sufficient control and accountability, budgets shall be prepared and monitored by major
expenditure categories (personnel, operations and maintenance, capital outlay, debt
service).
9.0 Appropriations – All appropriations shall lapse at the end of the fiscal year. There is no
carryover of appropriations from year to year.
6
Town of Oro Valley Policy Strategic Long-Range Financial Planning
1-2
Last Review Review Month
2021 July
Responsible for maintaining & applying this policy: Finance
Next Review:
______________________________________________________________________________
Purpose: To establish policy for long-range forecasting and planning to help ensure a
financially sound, accountable, and transparent Town.
Scope: All personnel
Definitions: None
Policy:
1.0 Five-year Forecast of Revenues and Expenditures – A five-year forecast of revenues and
expenditures, to include a discussion of major trends affecting the Town’s financial
position, shall be prepared in anticipation of the annual budget process. The forecast
shall also examine critical issues facing the Town, economic conditions, and the outlook
for the upcoming budget year.
7
Town of Oro Valley Policy Fiscal Monitoring & Reporting
1-3
Last Review Review Month
2021 July
Responsible for maintaining & applying this policy: Finance
Next Review:
______________________________________________________________________________
Purpose: To establish policy for preparing and presenting regular reports that analyze,
evaluate, and forecast the Town’s financial performance and economic condition .
Scope: All personnel
Definitions: None
Policy:
1.0 Financial Status and Performance Reports – Monthly reports comparing expenditures and
revenues to current budget, noting the status of fund balances to include dollar amounts
and percentages, and outlining any remedial actions necessary to maintain the Town’s
financial position shall be prepared for review by the Town Manager and Town Council.
The monthly reports shall also contain forecasts, updated on a quarterly basis, projecting
expenditures and revenues through the end of the fiscal year .
2.0 Status Report on Capital Projects – A summary report on the contracts awarded, capital
projects completed, and the status of the Town’s various capital programs will be
prepared at least quarterly and presented to the Town Manager and Town Council.
3.0 Compliance with Financial Policy Statements – Financial policies will be reviewed annually
by the Town Council and updated, revised or refined as deemed necessary. Policy
statements adopted by the Council are guidelines and occasionally exceptions may be
appropriate and required. However, exceptions to stated policies will be specifically
identified and the need for the exception will be documented and fully explained.
8
Town of Oro Valley Policy Banking and Investments
1-4
Last Review Review Month
2021 July
Responsible for maintaining & applying this policy: Finance
Next Review:
______________________________________________________________________________
Purpose: To establish policy for investing Town cash and investments to ensure its safety,
provide for necessary liquidity, and optimize yield.
Scope: All personnel
Definitions:
Credit risk: The risk of loss due to the failure of the security or backer and/or banks.
Interest rate risk: The risk that the market value of securities will fall or rise due to changes in
market interest rates.
Policy:
1.0 Objective – While conforming to federal, state, and other legal requirements the
primary objectives of the Town of Oro Valley investment activities shall be: Safety,
Liquidity and Yield. These objectives shall be achieved through mitigating credit risk
and interest rate risk.
1.1 Safety – The principal goal of the investment program is the preservation and
safety of the capital of all Town Funds. Each investment transacti on shall seek
to first ensure that capital losses are avoided, whether they are from security
defaults or erosion of market value.
1.2 Liquidity – The Town’s investment portfolio shall remain sufficiently liquid in
order to meet the operati ng requirements that may be reasonably foreseen.
The investment portfolio should be composed in such a way that securities
mature concurrent with cash needs to meet required demands . Furthermore,
since all possible cash demand cannot be anticipated, the portfolio should
consist largely of securities with active secondary or resale markets
(dynamic liquidity). Alternati vely, a portion of the portfolio may be placed in
money market mutual funds or local government investment pools which
offer same-day liquidity for short-term funds.
9
1.3 Yield – The Town’s investment portfolio shall attain the highest rate of yield
through budgetary and economi c cycles taking into account the constraints
imposed by its safety objectives, cash flow considerations and state laws that
restrict the placement of certain public funds. Yield on investment is of
secondary importance compared to the safety and liquidity objectives above.
The investments are limited to relatively low risk securities in anticipation of
earning a fair yield relative to the risk being assumed. Securities shall generally
be held until maturity with the following exceptions:
1.3.1 A security with declining credit may be sold early to minimize loss of
principal.
1.3.2 A security swap that would improve the quality, expected return, or target
duration in the portfolio.
1.3.3 Liquidity needs of the portfolio require that the security be sold .
1.4 Credit risk – The Town will minimize credit risk by:
1.4.1 Limiting investments to the types of securities listed in this investment
policy.
1.4.2 Pre-qualifying financial institutions, brokers/dealers, intermediaries, and
advisors with which the Town will do business in accordance to this policy.
1.4.3 Diversifying the investment portfolio so that the impact of potential losses
from any one type of security or from any one individual issuer will be
minimized.
1.5 Interest rate risk – The Town will minimize interest rate risk by:
1.5.1 Structuring the investment portfolio so that securities mature to meet cash
requirements for ongoing operations, thereby avoiding the need to sell
securities on the open market prior to maturity.
1.5.2 Investing operating funds primarily in shorter-term securities, money
market mutual funds or similar investment pools limiting the average
maturity in the portfolio in accordance with this policy.
2.0 Delegation of Authority – Authority to manage the investment program is granted to the
Town Finance Director/CFO, under the supervision of the Town Manager. Responsibility
of the operation of the daily investment program is delegated to the Finance
Director/CFO , who shall carry out the operation of the investment program
consistent with this investment policy. No employee may engage in an investment
transaction except as provided under the terms of this policy and the procedures
established by the Finance Director/CFO.
3.0 Prudence – The standard of prudence to be used by the Finance Director/CFO shall be
the "prudent person" standard and shall be applied in the context of managing the
overall portfolio . The Finance Director/CFO, shall exercise due diligence and not be
liable for losses . The "prudent person" standard with respect to Town Investments
shall be the exercise of judgment and care, with prudence , discretion and intelligence
that a person would exercise in their own affairs, not for speculation, but for
investment, considering the primary objectives set forth in Section 1-1 of this policy.
10
4.0 Ethics and Conflicts of Interest – Employees involved in the investment process will
refrain from conducting personal business activity that could conflict with the proper
execution and management of the investment program, or that could impair their ability
to make impartial decisions. Employees will disclose any material interests in financial
institutions with which they conduct business. They will disclose any personal
financial/investment positions that could be related to the performance of the
investment portfolio. Employees shall refrain from undertaking personal investment
transactions with the same individual that conducts business with the Town.
5.0 Safekeeping and Custody – To protect against potential fraud or embezzlement, the
investments of the Town shall be secured through third-party custody and safekeeping
procedures. Ownership shall be protected through third-party custodial safekeeping.
The Town’s external auditor shall review safekeeping procedures annually.
5.1 Internal Controls – The Finance Director/CFO is responsible for establishing and
maintaining an internal control structure designed to ensure that the assets of the
Town are protected from loss, theft or misuse. The controls shall be designed to
prevent the loss of public funds arising from fraud, employee error, third party
misrepresentation, unanticipated changes in financial markets or imprudent
actions by employees and officers of the Town.
5.2 Independent Financial Institution - The Town shall contract with a single,
independent financial institution for custodial and safekeeping services for the
Town’s investment portfolio.
5.3 Delivery vs. Payment – All trades of marketable securities will be executed by
delivery vs. payment (DVP) to ensure that securities are deposited in an eligible
financial institution simultaneously to the release of funds.
5.4 Authorized Financial Dealers and Institutions – The Finance Director/CFO will
review the financial condition and registration of qualified bidders. Financial
institutions and broker/dealers who would like to become qualified bidders
for investment transactions with the Town must supply the following:
• Audited financial statements
• Proof of National Association of Securities Dealers (NASD) certification
• Proof of stated registration
• Certification of having read and understood and agreeing to comply
with the Town’s investment policy
• Evidence of adequate insurance coverage
An annual review of the financial condition and registration of all qualified
financial institutions and broker/dealers wi ll be conducted by the Finance
Director/CFO. If the Town utilizes an external investment advisor, the advisor may
be authorized to transact with its own Approved Broker/Dealer List on behalf of
the Town. If the investment advisor utilizes its own Broker/Dealer List, the advisor
will perform due diligence for the brokers/dealers on its Approved List.
6.0 Investment Types – Suitable and authorized investments include the following:
11
6.1 Authorized investments for the debt service reserve funds shall be consistent with
those set forth in the trust indentures or the long-term debt issuances.
6.2 Fully insured or collateralized certificates of deposit (CD) that are FDIC-insured
in eligible depositories if the interest rate bid is 103% or more of the equivalent
bond yield of the offer side of treasury bills.
6.3 Interest bearing savings accounts in qualified banks and savings and loan
institutions which are FDIC insured.
6.4 Repurchase agreements with maximum maturity of 180 days.
6.5 The pooled investment funds established by the State Treasurer pursuant to
A.R.S. 35-326.
6.6 Bond or other evidence of indebtedness of the United States or any of its agencies
or instrumentalities when the obligations are guaranteed as to principal and
interest by the United States or by any agency or instrumentality of the United
States.
6.7 Bonds or other evidences of indebtedness of this State, any county, city, town,
or school district. Ratings of these investments must be AAA or equivalent.
6.8 Bonds, notes or evidences of indebtedness of any county or municipal district
within this State which are payable from revenues or earnings specifically pledged
for the payment of the principal and interest on the obligations, if they meet
certain criteria as specified in A.R.S .35-323. Ratings of these investments must be
AAA or equivalent.
6.9 Bonds, notes or other evidences of indebtedness issued by any municipal
improvement district in this State to finance local improvements authorized by
law, if the principal and the interest of the obligations are payable from
assessments on real property within the local improvement district. Ratings of
these investments must be AAA or equivalent.
6.10 Money market mutual funds regulated by the Securities and Exchange Commission
and whose portfolios consist of dollar-denominated securities. Money market
mutual funds that are treasury-based funds must always be priced at $1/share.
6.11 Commercial paper, rated in the highest tier (e.g., A-1, P-1, F-1, or D-1 or higher) by
a nationally recognized rating agency.
6.12 Bonds, debentures, notes or other evidences of indebtedness that are
denominated in United States dollars and that carry at a minimum an “A” or better
rating at the time of purchase, from at least two nationally recognized rating
agencies.
6.13 Bonds, debentures, notes or other evidences of indebtedness that are
denominated in United States dollars and that carry at a minimum an “A” or better
rating at the time of purchase, from at least two nationally recognized rating
agencies.
6.14 Negotiable or brokered certificates of deposit issued by a nationally or state-
chartered bank or savings and loan association. Callable securities are not
permitted.
12
6.15 Collateralization of 102% will be required on two types of Town investments:
certificates of deposit and repurchase agreements.
7.0 Investment Parameters – Investment parameters include the following:
7.1 Diversification - The investments shall be diversified by:
7.1.1 Limiting investments to avoid over-concentration in securities from a
specific issuer or business sector (excluding U.S. Treasury securities)
7.1.2 Limiting investment in securities that have higher credit risks
7.1.3 Investing in securities with varying maturities
7.1.4 Investing a portion of the portfolio in readily available funds such as local
government investment pools (LGIP’s), overnight repurchase agreements,
or other overnight accounts to ensure that appropriate liquidity is
maintained in order to meet ongoing obligations
7.2 Maturities - Reserve funds are subject to different requirements on maximum
maturities than those for other Town funds according to the terms and
provisions as outlined in the trust indenture of the long-term debt issuances. To
ensure liquidity the Town shall attempt to match its investments with
anticipated cash flow requirements . As all possible cash demands cannot be
anticipated, a portion should consist of securities with active secondary and
resale markets. The Town will not invest in securities with maximum
maturities greater than those allowed under A.R.S. 35-323, Investment of
Public Monies. Currently, maximum maturities are:
7.2.1 Securities and deposits: 5 years
7.2.2 Repurchase agreements: 30/180 days in accordance with A.R.S 35-323.
7.3 Competitive Procurement Process/Use of Cooperative Contract - Before the
Town invests any public funds, a competitive procurement process should be
conducted for the necessary services or investment instruments. If a specific
maturity date is required, either for cash flow purposes or in order to conform
to maturity guidelines, bids will be requested for instruments which meet the
maturity requirement. If no specific maturity is required, a market trend (yield
curve) analysis will be conducted to determine which maturities would be most
advantageous. The competitive process will follow the policies and procedures
outlined in the Town’s Procurement Code and comply with A.R.S. 35 -323. The
Town may also choose to use an existing cooperative contract provided the
contract meets all requirements of the Town’s Procurement Standards.
8.0 Shock Test – The purpose of the shock test is to analyze the impact of changes in market
interest rates on the potential value of the portfolio. The investment portfolio shall be
shock tested quarterly by the safekeeping agent as part of their contract responsibility.
At a minimum, the stress test will value the portfolio assuming interest rates rise or fall
by up to 300 basis points across the entire yield curve. Information obtained from the
stress test combined with current economic and interest rate forecasts will assist in
determining appropriate maturities for new investments considering risks.
13
9.0 Benchmarks – The investment portfolio held by authorized financial institutions will be
managed in accordance with the parameters specified within this policy. The portfolio
should obtain a market average rate of return of stable interest rates which are equal
to or exceed that obtained through investing in the State of Arizona Local Government
Investment Pool (LGIP), which is managed by the State Treasurer. Performance will be
monitored quarterly.
10.0 Banking Services – The Town will execute a contract with its financial depository which
shall designate the requirements of serving as a depository for the Town, including
collateralization of Town funds invested at such depository and the related safekeeping
requirements of the pledged securities. The Town will evaluate and request bids on
banking services every five years.
14
Town of Oro Valley Policy Capital Expenditures and Improvements
1-5
Last Review Review Month
2021 July
Responsible for maintaining & applying this policy: Finance
Next Review:
______________________________________________________________________________
Purpose: To establish policy for annually reviewing and monitoring the state of the Town’s
capital equipment and infrastructure, setting priorities for its replacement and renovation based
on needs, funding alternatives, and availability of resources.
Scope: All personnel
Definitions:
Capital asset: Any item with an acquisition cost of $5,000 or more, and an estimated useful life
of two or more years.
Capital improvement program (CIP): A planning document comprised of capital projects
expected to be funded over the next 10 years. The purpose of the CIP is to systematically identify,
plan, schedule, finance, track and monitor capital projects to ensure cost effectiveness as well as
conformance to established policies and Council goals and priorities.
Capital project: A project expected with an estimated cost of $50,000 or more, and expected to
have a useful life of five or more years.
Minor assets: Assets with an acquisition cost of $1,000 or more, but less than $5,000, and an
estimated useful life of two or more years.
Lease: A contract that conveys control of the right to use another entity’s nonfinancial asset (the
underlying asset) as specified in the contract for a period of time in an exchange or exchange-like
transaction.
Lessor: The party to a lease contract who conveys the right to use its nonfinancial asset(s) to
another entity (i.e., landlord).
Lessee: The party to a lease contract who acquires the right to use another entity’s nonfinancial
asset(s) (i.e., tenant)
15
Policy:
1.0 Capital Improvements – The Town shall annually review the needs for capital
improvements, including the current status of the Town infrastructure, replacement and
renovation needs, and potential new projects. All projects, both ongoing and proposed,
shall be prioritized based on an analysis of current needs and resource availab ility at the
direction of the Town Manager. For every proposed capital project, all operation,
maintenance, and replacement costs shall be fully costed . Proposed capital projects will
not be authorized or awarded until a funding source is identified.
2.0 Capital Assets – Capital assets shall be depreciated over their estimated useful lives
utilizing the straight-line method and shall be included in the operating budget.
3.0 Leases – Leased assets subject to GASB Statement No.87 shall be amortized over the
shorter of the lease term or the asset useful life. The threshold for capitalizing lessor
leases shall be $125,000. The threshold for capitalizing lessee leases shall be $75,000.
4.0 Capital Projects – Capital projects shall be depreciated over their estimated useful lives
utilizing the straight-line method and shall be included in both the capital improvement
program (CIP) and capital budget.
5.0 Capital Improvement Program (CIP) – A minimum ten-year capital improvement program
will be developed and updated annually, encompassing both anticipated funding sources
and any estimated operating expenditures. Estimated operating expenditures associated
with capital projects will be included in the operating budget. Estimated first-year capital
expenditures in the CIP shall be included in the Capital Fund budget. A quarterly status
report will be prepared for Council to facilitate monitoring of each project’s progress and
identify any significant issues.
6.0 Prioritization – Prioritization shall occur first at the department level, and then at the
Town-wide level by a cross-departmental capital project team. Financing sources will
then be identified for the projects ranking the highest based on evaluation criteria and
available resources.
7.0 Minimum Funding Level – In order for the Town to provide sustainable funding for capital
improvements and asset repair/maintenance needs each year, the annual budget shall
include the allocation of a minimum of 5% of the Town ’s General Fund estimated sales
tax revenues (not including state-shared revenues) to fund these needs, subject to
Council approval and funding availability. These funds will be accounted for in a separate
Capital Fund.
8.0 Capital Expenditure Financing – The Town recognizes that there are three basic methods
of paying for capital requirements. It can budget the funds from current resources (pay
as you go), it can take the funds from fund balance as allowed by the Fund Balance Policy
(another pay as you go method), or it can borrow money through debt. Debt financing
includes general obligation bonds, revenue bonds, lease/purchase agreements,
certificates of participation, and other debt instruments permitted under Arizona law.
Guidelines for incurring debt are set forth in the Debt Policy Statements.
9.0 Audits – The Finance Department shall be responsible for verifying the actual physical
existence of capital and minor assets and the accuracy of the Town’s asset database. The
16
process will be monitored through asset audits of Town departments and divisions. Any
significant irregularities will be reported to the Town Manager. The Town shall strive to
perform a complete inventory of capital items at least every two years.
17
Town of Oro Valley Policy PSPRS Pension Funding
1-6
Last Review Review Month
2022 May
Responsible for maintaining & applying this policy: Finance
Next Review:
______________________________________________________________________________
Purpose: The intent of this policy is to clearly communicate the Town Council’s pension
funding objectives, its commitment to employees and the sound financial management of the
Town of Oro Valley, and maintain compliance with statutory requirements of ARS 38-863.01. The
Council shall annually assess the status of the Town’s PSPRS trust fund and take formal action to
update this policy in concert with the final annual budget approval. This policy shall also apply
to the Town’s participation in the Correction Officer Retirement Plan (CORP).
Scope: The Town’s sworn police employees who are regularly assigned hazardous duty
participate in the PSPRS. Selected individuals who serve as dispatchers in the Oro Valley Police
Department participate in the CORP plan, which is also administered by PSPRS.
Definitions:
Unfunded actuarial accrued liability (UAAL): The difference between trust assets and the
estimated future cost of pensions earned by employees. This UAAL results from actual results
(investment income, member mortality, disability rates, payroll increases, etc.) being different
from the assumptions used in previous actuarial valuations.
Annual required contribution (ARC): The annual amount required to pay into the pension funds,
as determined through annual actuarial valuations. It is comprised of two primary components:
normal pension cost - which is the estimated cost of pension benefits earned by employees in
the current year; and amortization of UAAL - which is the cost needed to cover the unfunded
portion of pensions earned by employees in previous years. The UAAL is collected over a period
of time referred to as the amortization period. The ARC is a percentage of the current payroll.
Funded ratio: A ratio of fund assets to actuarial accrued liability. The higher the ratio, the better
funded the pension is, with 100% being fully funded based on current actuarial valuations.
Intergenerational equity: A concept meant describe the policy expectation that no generation is
burdened by substantially more or less pension costs than past or future generations.
18
Policy:
1.0 Public Safety Personnel Retirement System (PSPRS)
1.1 PSPRS is administered as an agent multiple-employer pension plan. An agent
multiple-employer plan has two main functions:
1.1.1 To comingle assets of all plans under its administration, thus achieving
economy of scale for more cost-efficient investments, and invest those
assets for the benefit of all members under its administration .
1.1.2 To serve as the statewide uniform administrator for the distribution of
benefits.
1.2 Under an agent multiple-employer plan, each agency participating in the plan has
an individual trust fund reflecting that agencies’ assets and liabilities. Under this
plan all contributions are deposited to and distributions are made from that fund’s
assets, each fund has its own funded ratio and contribution rate, and each fund
has a unique annual actuarial valuation. The Town of Oro Valley has one trust
fund for police employees. The Town also contributes to the Correction Officer
Retirement Plan (CORP), administered by the Public Safety Personnel Retirement
System, on behalf of selected individuals who serve as dispatchers in the Oro
Valley Police Department. CORP maintains one trust fund for dispatchers.
1.3 Oro Valley Town Council formally accepts the assets, liabilities, and current
funding ratio of the Town’s PSPRS and CORP trust funds from the June 30, 2021
actuarial valuations specified below.
Trust Fund Assets Accrued Liability
Unfunded Actuarial
Accrued Liability
Funded
Ratio
Oro Valley Police $46,773,089 $70,792,554 $24,019,465 66.1%
Oro Valley Dispatchers $ 1,649,829 $ 3,551,295 $ 1,901,466 46.5%
Note: The Town of Oro Valley funded the PSPRS pension plan with $27.6M in July
2021, after the June 30, 2021 actuarial report was prepared. At this time, it is
expected the plan is 100% funded.
1.4 PSPRS and CORP Funding Goal – Pensions that are less than fully funded place the
cost of service provided in earlier periods (amortization of UAAL) on current
taxpayers. Fully funded pension plans are the best way to achieve taxpayer and
member intergenerational equity.
1.5 The Council’s PSPRS and CORP funding ratio goal is 100% (fully funded) by June
30, 2036 and beyond. Council establishes this goal for the following reasons:
1.5.1 The PSPRS and CORP trust funds represent only the Town of Oro Valley’s
liability.
1.5.2 The fluctuating cost of an UAAL causes strain on the Town’s budget,
affecting the Town’s ability to provide services.
1.5.3 A fully funded pension is the best way to achieve taxpayer and member
intergenerational equity.
1.6 Council has determined that in order to achieve the 100% funding ratio goal, the
following actions will be taken:
19
1.6.1 Maintain ARC payment from operating revenues – Council is committed to
maintaining the full ARC payment (normal cost and UAAL amortization)
from operating funds. The estimated combined ARC for FY21/22 is
estimated at $2.9 million for PSPRS and at $183,000 for CORP and shall be
paid from operating funds.
1.6.2 At such time the ARC is projected to be reduced, the Town should
endeavor to continue paying the ARC at the higher rate (currently 43.47%
for Police), to maintain the funding ratio goal of 100%. This is due to
historically poor investment performance in the Plan and should assist in
mitigating risk should it continue.
1.6.3 Retain the 20-year amortization of unfunded liability.
1.6.4 Review Local board practices annually.
1.6.5 Periodically engage consultants to review actual results and recommend
possible adjustments or corrections as necessary.
1.7 Payments to PSPRS will be as follows:
1.7.1 In FY22, the Town will make approximately $2.9M in payments based upon
a 43.57% contribution rate.
1.7.2 In FY23, the Town will make approximately $2.9M in payments based upon
a 43.47% contribution rate.
1.7.3 In FY24 and subsequent years, the Town will continue maintaining a 100%
funding ratio. If the funding ratio grows to over 110%, the Town Manager
through the budget process, may recommend applying funding to other
Town priorities. If the funding ratio falls below 100%, future additional
payments will be made to restore the funding ratio back to 100%.
1.8 It is hereby the Town Council’s intent to achieve its goal of 100% funding by June
30, 2036, in accordance with the amortization timeline set forth by the PSPRS and
CORP June 30, 2021 Actuarial Valuation.
1.9 The following shows the historical performance of the unfunded actuarial accrued
liability:
Unfunded
Accrued Actuarial Accrued Funded
Year Trust Fund Assets Liability Asset/(Liability) Ratio
2014 Oro Valley Police $23,567,852 $36,122,643 $(12,554,791) 65%
2014 Oro Valley Dispatchers $ 1,216,956 $ 2,269,744 $ (1,052,788) 54%
2015 Oro Valley Police $26,200,389 $40,452,911 $(14,252,522) 65%
2015 Oro Valley Dispatchers $ 1,205,067 $ 2,362,604 $ (1,157,537) 51%
2016 Oro Valley Police $29,296,195 $48,414,270 $(19,118,075) 61%
2016 Oro Valley Dispatchers $ 1,163,258 $ 2,524,360 $ (1,361,102) 46%
20
2017 Oro Valley Police $31,882,797 $53,037,566 $(21,154,769) 60%
2017 Oro Valley Dispatchers $ 1,260,798 $ 3,077,649 $ (1,816,851) 41%
2018 Oro Valley Police $34,172,618 $57,022,056 $(22,849,438) 60%
2018 Oro Valley Dispatchers $ 1,337,558 $ 2,945,307 $ (1,607,749) 45%
2019 Oro Valley Police $37,842,906 $62,278,853 $(24,435,947) 61%
2019 Oro Valley Dispatchers $ 1,424,947 $ 3,240,399 $ (1,815,452) 44%
2020 Oro Valley Police $41,498,361 $67,240,526 $(25,742,165) 62%
2020 Oro Valley Dispatchers $ 1,504,732 $ 3,374,933 $ (1,870,201) 45%
2021 Oro Valley Police $46,773,089 $70,792,554 $(24,019,465) 66%
2021 Oro Valley Dispatchers $ 1,649,829 $ 3,551,295 $ (1,901,466) 46%
Source: Town Annual Comprehensive Financial Report for June 30, 2021 – Note 15.
21
Town of Oro Valley Policy Revenues
1-7
Last Review Review Month
2021 July
Responsible for maintaining & applying this policy: Finance
Next Review:
______________________________________________________________________________
Purpose: To establish policy for designating, maintaining, and administering a revenue
system that assures a reliable, equitable, diversified, and sufficient revenue stream to support
desired Town services.
Scope: All Personnel
Definitions: None
Policy:
1.0 Balance and Diversification in Revenue Sources – The Town shall strive to maintain a
balanced and diversified revenue system to protect it from fluctuations in any one source
due to changes in local economic conditions which adversely impact that source.
2.0 User Fees and Charges – For services that benefit specific users, the Town shall establish
and collect fees to recover the costs of those services. The Town Council shall determine
the appropriate cost recovery level and establish the fees. Where feasible and desirable,
the Town shall seek to recover full direct and indirect costs. Material user fees shall be
reviewed on an annual basis to calculate their full cost recovery levels, to compare them
to the current fee structure, and to recommend adjustments where necessary.
3.0 Development Impact Fees – Development impact fees for capital expenses attributable
to new development will be reviewed periodically to ensure the fees recover all direct
and indirect development-related expenses and be approve by Town Council.
4.0 Enterprise Revenues – The Town will establish rates and fees at levels to fully cover the
total direct and indirect costs, including operations, capital outlay, debt service, debt
coverage requirements and unrestricted cash reserve balances. Enterprise funds will not
be used to subsidize operations of other funds. Interfund charges will be assessed for the
administrative support of enterprise fund activities.
5.0 Revenue Estimates for Budgeting – To maintain a stable level of services, the Town shall
use a conservative, objective and analytical approach when preparing revenue estimates.
The process shall include analysis of probable economic changes and their impacts on
revenues, historical collection rates, and trends in revenues. This approach should reduce
22
the likelihood of actual revenues falling short of budget estimates during the year and
should avoid mid-year service reductions.
6.0 Revenue Collection and Administration – The Town shall maintain high collection rates
for all revenues by keeping the revenue system as simple as possible to facilitate payment.
In addition, because revenue should exceed the cost of producing it, the Town shall strive
to control and reduce administrative costs. The Town shall pursue to the full extent
allowed by state law all delinquent taxpayers and others overdue in payments to the
Town.
7.0 Write-off of Uncollectible Accounts – The Town shall monitor payments due the Town
(accounts receivable) and the Town Manager or designee shall periodically write-off
accounts where collection efforts have been exhausted and/or collections efforts are not
feasible or cost-effective.
8.0 Use of One-time Revenues – The Town shall discourage the use of one-time revenues for
ongoing expenditures.
9.0 Use of Unpredictable Revenues – The Town shall exercise caution with the use of
unpredictable revenues for ongoing expenditures.
23
Town of Oro Valley Policy Expenditures
1-8
Last Review Review Month
2021 July
Responsible for maintaining & applying this policy: Finance
Next Review:
______________________________________________________________________________
Purpose: To establish policy for identifying priority services, establish appropriate service
levels, and administer the expenditure of available resources to assure fiscal stability and the
effective and efficient delivery of Town services.
Scope: All Personnel
Definitions: None
Policy:
1.0 Current Funding Basis – The Town shall operate on a current funding basis. Expenditures
shall be budgeted and controlled so as to not exceed current revenues plus the planned
use of fund balance accumulated through prior year savings. (The use of fund ba lance
shall be guided by the Fund Balance Policy Statements).
2.0 Avoidance of Operating Deficits (Governmental Funds) – The Town Manager shall take
immediate corrective actions if, at any time during the fiscal year, expenditure and
revenue re-estimates are such that an operating deficit (projected expenditures in excess
of projected revenues) is projected at year-end. Corrective actions may include a hiring
freeze, employee reductions, expenditure reductions, fee increases, use of fund balance
within the Fund Balance Policy or other actions that may be deemed necessary and
appropriate. Expenditure deferrals into the following fiscal year, short-term loans or use
of one-time revenue sources shall be avoided in attempt to achieve fiscal structural
balance. Corrective actions referenced above shall be presented to Town Council at the
earliest possible time for approval.
3.0 Maintenance of Capital Assets – Within the resources available each fiscal year, the Town
shall maintain capital assets and infrastructure at a sufficient level to protect the Town’s
investment, to minimize future replacement and maintenance costs, and to continue
service levels.
4.0 Periodic Program Reviews – The Town Manager shall undertake periodic staff and third -
party reviews of Town programs for both efficiency and effectiveness. Privatization and
contracting with other governmental agencies will be evaluated as alternative
24
approaches to service delivery. Programs which are determined to be inefficient and/or
ineffective shall be reduced in scope or eliminated.
5.0 Purchasing – The Town shall conduct its purchasing and procurement functions efficiently
and effectively, fully complying with applicable Federal and State laws, and the Town
Procurement Code. Staff shall make every effort to maximize any discounts offered by
creditors/vendors. Staff shall also utilize competitive bidding or cooperative purchasing
agreements to attain the best possible price on goods and services. Procurement policy
and procedures are found in Town AD 2-2.
6.0 Uniform Expenditure Reporting System – The Arizona Constitution imposes a limit on the
expenditures of local jurisdictions. The Town will comply with these expenditure
limitations and submit an audited expenditure limitation report, audited financial
statements, and audited reconciliation report as defined by the Uniform Expenditure
Reporting System to the State Auditor General within prescribed timelines in accordance
with A.R.S. 41-1279.07.
7.0 Budget Amendments and Transfers – To provide flexibility in the management of
department budgets for major expenditures (personnel, operations & maintenance,
capital outlay, and debt service) the following amendment and transfer provisions shall
apply:
7.1 Transfers of budget capacity between funds shall require the recommendation of
the Town Manager and formal action by the Town Council.
7.2 Transfers of budget capacity between line items within each major expenditure
category shall be permitted upon recommendation of the Department Head and
approval by the Town Manager.
7.3 Transfers of budget capacity between line items or major expenditure categories
to fund additional personnel or increased expenditures as a re sult of personnel
reclassifications shall require the recommendation of the Town Manager and
formal action by the Town Council.
7.4 Transfers of budget capacity that reduce or eliminate funding for items designated
in the adopted Capital Improvement Program shall require the recommendation
of the Town Manager and approval of the Town Council.
7.5 Transfers of budget capacity that reduce or eliminate funding for debt service shall
require the recommendation of the Town Manager and approval of the Town
Council.
25
Town of Oro Valley Policy Debt
1-9
Last Review Review Month
2021 July
Responsible for maintaining & applying this policy: Finance
Next Review:
______________________________________________________________________________
Purpose: To establish policy for establishing guidelines for debt financing that provides
needed capital equipment and infrastructure improvements while minimizing the impact of debt
payments on current revenues.
Scope: All Personnel
Definitions:
Excise Tax: Excise taxes for purposes of debt repayment include Town Sales and Franchise Fees,
Licenses and Permits, Fines, State-shared Sales Tax, and State-shared Income Tax revenues.
Policy:
1.0 Use of Debt Financing – Debt financing, to include general obligation bonds, certificates
of participation, lease/purchase agreements, and other obligations permitted to be
issued or incurred under Arizona law, shall only be used to purchase capital assets that
cannot be prudently acquired from either current revenues or fund balance. The useful
life of the asset or project shall exceed the repayment schedule of any debt the Town
assumes. The Town shall not use long-term debt to finance current operations.
2.0 Future Bond Proposals – Future bond proposals will be accompanied by an analysis
showing how the new issue, combined with current debt, impacts th e Town’s debt
capacity and conformance with Town debt policies. The Town shall only issue additional
non-enterprise fund debt should its excise taxes equal or exceed three times the annual
debt service requirement of all its current and proposed annual de bt obligations.
3.0 Bond Rating – The Town will seek to maintain, and if possible, improve current bond
ratings in order to minimize borrowing costs and preserve access to credit. The Town will
encourage and maintain good relations with financial bond rating agencies and will follow
a policy of full and open disclosure.
4.0 Utilization of Bond Proceeds – Proceeds from bonded debt will be used in accordance
with the purpose of the issuance. Funds remaining after the project is completed will be
26
used in accordance with the provisions stated in the bond ordinance that authorized the
issuance of the debt.
5.0 Arbitrage Rebate – The Town shall comply with Internal Revenue Service arbitrage rebate
requirements for bonded debt.
6.0 Interest Earnings on Bond Proceeds – Interest earnings on bond proceeds will be limited
to 1) funding or acquiring the improvement(s), or 2) payment of debt service on the
bonds.
7.0 Bond Project Eligibility – All projects funded with bonded debt must be included in the
Town’s Capital Improvement Program.
8.0 Bond Refunding – When considering refunding any outstanding bonded debt, either the
Town or its financial advisor will perform a cost benefit analysis to determine if the cost
savings of refunding will be greater than the cost to refund. Considerations will be made
with regard to existing bond covenants when refunding any bonded debt.
9.0 Pledging of Utility Revenues – When utility revenues are pledged as debt service
payments, the Town will strive to maintain a 1.3 times debt service coverage ratio to
ensure debt coverage in times of revenue fluctuation. This will be in addition to the
required ratio of the bond indenture.
10.0 Debt Limit – Article IX, Section 8 of the Arizona Constitution limits the Town’s bonded
debt capacity (outstanding principal) to a certain percentage of the Town’s secondary
assessed valuation by the type of project to be constructed. The limit for general purpose
municipal projects is 6%. For water, light, sewer, open space, public safety, park, law
enforcement, fire and emergency services, and streets and transportation facilities
projects, the limit is 20%.
11.0 Post-Issuance Compliance – The Town will comply with all post-issuance compliance
requirements in conformance with federal tax laws.
12.0 Bonded Indebtedness Report – In accordance with A.R.S. 35-501 and 35-502, new bond
and securities issuances will be reported to the State Treasurer within 60 days of issuance.
Further, the Town will produce an annual bonded indebtedness report to the Arizona
Department of Administration.
27
Town of Oro Valley Policy Fund Balance
1-10
Last Review Review Month
2021 July
Responsible for maintaining & applying this policy: Finance
Next Review:
______________________________________________________________________________
Purpose: To establish policy for maintaining the fund balance of various operating funds at
sufficient levels to protect the creditworthiness of the Town as well as its financial position for
emergencies.
Scope: All Personnel
Definitions:
Nonspendable Fund Balance: That portion of a fund balance that includes amounts that cannot
be spent because they are either (a) not in spendable form, such as prepaid items, supplies
inventory, or loans receivable; or (b) legally or contractually required to be maintained intact,
such as the principal portion of an endowment.
Restricted Fund Balance: That portion of a fund balance that reflects constraints placed on the
use of resources (other than nonspendable items) that are either (a) externally imposed by
creditors, such as debt covenants, grantors, contributors, or laws or regulations of other
governments; or (b) imposed by law through constitutional provisions or enabling legislation.
Committed Fund Balance: That portion of a fund balance that includes amounts that can only be
used for specific purposes pursuant to constraints imposed by formal action of the government’s
highest level of decision-making authority and remain binding unless removed in the same
manner. Town Council action must be taken on or before June 30 of the applicable fiscal year.
Assigned Fund Balance: That portion of a fund balance that includes amounts that are
constrained by the government’s intent to be used for specific purposes, but that are neither
restricted nor committed. Such intent needs to be established at either the highest level of
decision making, or by the Town Manager.
Unassigned Fund Balance: That portion of a fund balance that includes amounts which do not
fall into one of the above four categories. The General Fund is the only fund that should report
this category of fund balance.
28
Policy:
1.0 Committed Fund Balance – The Town shall strive to maintain the General Fund balance
at 30% of regular General Fund operating expenditures. After completion of the annual
audit, if the fund balance exceeds 30%, the excess must be specifically designated for
capital project funding and/or reducing the Town’s Public Saf ety Personnel Retirement
System (PSPRS) unfunded actuarial accrued liability (UAAL).
2.0 Unassigned Fund Balance – The Town shall strive to always maintain a positive unassigned
fund balance.
3.0 Use of Fund Balance – Fund Balance shall be used only for emergencies, non-recurring
expenditures or major capital purchases that cannot be accommodated through current
year savings. Should such use reduce the balance below the appropriate level set as the
objective for that fund, restoration recommendations will accompany the decision to
utilize said balance.
4.0 Governmental Accounting Standards Board (GASB) Statement No.54 – In accordance with
GASB Statement No.54, fund balances will be classified in the following components:
4.1 Nonspendable Fund Balance
4.2 Restricted Fund Balance
4.3 Committed Fund Balance
4.4 Assigned Fund Balance
4.5 Unassigned Fund Balance
The following matrix depicts to which classification fund balances of Town governmental
funds will be applied:
Fund Restricted Committed Assigned Unassigned Comments
State & Justice Seizure Funds X Restricted by State Statute
Municipal Debt Service Fund X Restricted by Debt Covenants
Oracle Road Improvement District Fund X Restricted by Debt Covenants
Townwide Roadway Impact Fee Fund X Restricted by State Statute
Parks & Recreation Impact Fee Fund X Restricted by State Statute
Police Impact Fee Fund X Restricted by State Statute
Highway Fund X Restricted by State Constitution & Statute
PAG/RTA Fund X Restricted by PAG/RTA
Grant/Contracts Fund X Restricted by Grantor/Donor
Community Center Fund X Committed by Town Council
Capital Fund X
General Fund
Council 30% Reserve Policy on Contingency X Committed by Town Council
Planned Use of Fund Balance/Budget Deficit X
Bed Tax Collections X
Compensated Absences X
Unemployment Claims X
5.0 Town Council Authorization – Fund balance reserves may only be appropriated by
authorization of the Town Council.
6.0 Utilization Priority – When multiple categories of fund balance reserves are available for
expenditure (i.e. a construction project is being funded partly by a grant, funds set aside
by Town Council and unassigned fund balance) the Town will start with the most
29
restricted category – spending those funds first – before moving down to the next
category with available funds.
7.0 Water Enterprise Fund – The Water Enterprise Fund shall maintain a cash reserve in the
operating fund of not less than 20% of the combined total of the annual budgeted
amounts for personnel, operations and maintenance, and debt service. This cash reserve
amount specifically excludes budgeted amounts for capital projects, depreciation,
amortization and contingency. No cash reserve is required for the Water Utility Impact
Fee Funds.
8.0 Annual Review – All Town budgetary fund designations and reserves will be evaluated
annually for long-term adequacy and use requirements in conjunction with development
of the Town’s long-term financial forecast.
30
Town of Oro Valley Policy Internal Controls
1-11
Last Review Review Month
2021 July
Responsible for maintaining & applying this policy: Finance
Next Review:
______________________________________________________________________________
Purpose: To establish policy for maintaining an internal control structure designed to
provide reasonable assurance that Town assets are safeguarded and that the possibilities for
material errors in the Town’s financial records are minimized .
Scope: All Personnel
Definitions: None
Policy:
1.0 Proper Authorizations – Procedures shall be designed, implemented, and maintained to
ensure that financial transactions and activities are properly monitored, reviewed, and
authorized.
2.0 Separation of Duties – Job duties will be adequately separated to reduce to an acceptable
level the opportunities for any person to be able to both perpetrate and conceal errors or
irregularities in the normal course of assigned duties.
3.0 Proper Recording – Procedures shall be developed and maintained that will ensure
financial transactions and events are properly recorded and that all financial reports may
be relied upon as accurate, complete and current.
4.0 Access to Assets and Records – Procedures shall be designed and maintained to ensure
that adequate safeguards exist over access to and use of financial assets and records.
5.0 Independent Checks – Independent checks and audits will be made on staff performance
to ensure compliance with established procedures and proper valuation of recorded
amounts.
6.0 Costs and Benefits – Internal control systems and procedures must have an apparent
benefit in terms of reducing and/or preventing losses. The cost of implementing and
maintaining any control system will be evaluated against the expected benefits to be
derived from that system.
7.0 Information Technology – The Town will follow policies and procedures outlined in AD4-
1 Information Security and Computer Usage to minimize risk associated with electronic
financial records being compromised.
31
Town of Oro Valley Policy Grants
1-12
Last Review Review Month
2021 July
Responsible for maintaining & applying this policy: Finance
Next Review:
______________________________________________________________________________
Purpose: To establish policy for seeking, applying for and effectively administering federal,
state and foundation grants which address Town priorities and policy objectives.
Scope: All Personnel
Definitions: None
Policy:
1.0 Grant Guidelines – The Town shall apply for only those grants consistent with the
objectives and high priority needs previously identified by the Town Council. The
potential for incurring ongoing costs, to include the assumption of support for grant-
funded positions from operating revenues, will be considered prior to applying for a grant.
2.0 Indirect Costs – The Town shall attempt to recover full indirect costs unless the funding
agency does not allow it to do so. The Town may waive or reduce indirect costs if it is
deemed to be advantageous to the Town.
3.0 Grant Review – Anticipated grant requests will be evaluated by the Town Budget
Committee. Federal or State grant requests less than $15,000 will not be considered. All
grant submittals shall be reviewed for their cash match requirements, their potential
impact on the operating budget, and the extent to which they meet Town policy
objectives. If there are cash match requirements, the source of funding shall be identified
prior to application submittal.
4.0 Grant Program Termination – The Town shall terminate grant-funded programs and
associated positions when grant funds are no longer available unless alternate ongoing
funding is identified.
32
Town of Oro Valley Policy Accounting, Auditing, and Financial Reporting
1-13
Last Review Review Month
2021 July
Responsible for maintaining & applying this policy: Finance
Next Review:
______________________________________________________________________________
Purpose: To establish policy for complying with prevailing federal, state and local statutes
and regulations, as well as current professional standards, principles and practices.
Scope: All Personnel
Definitions: None
Policy:
1.0 Conformance to Accounting Principles and Recommended Practices – The Town
accounting practices and financial reporting shall conform to generally accepted
accounting principles (GAAP) as promulgated by the Governmental Accounting Standards
Board (GASB), and best practices recommended by the American Institute of Certified
Public Accountants (AICPA) and the Government Finance Officers Association (GFOA).
2.0 Selection of Auditors – The Town shall request proposals from qualified, independent
certified public accounting firms every five years, including the current auditors if their
past performance has been satisfactory. The audit firm selected shall perform an annual
audit of the books of account, records and transactions, opining on the Basic Financial
Statements and Single Audit Report (if necessary).
3.0 Audit Completion – The Town shall strive to have its Annual Comprehensive Financial
Report (ACFR), Alternative Expenditure Limitation Report, and Single Audit Report (if
necessary) completed and available within 180 days, 270 days, and 270 days, respectively,
after the close of its previous fiscal year ending June 30.
4.0 Report Submission to GFOA – The Town shall annually submit its budget to the GFOA
Distinguished Budget Presentation Program. Further, the Town shall also annually submit
its ACFR to the GFOA Certificate of Achievement for Excellence in Financial Reporting
program.
Budget and Finance Commission 3.
Meeting Date:11/15/2022
Submitted By:Christopher Hutchison, Finance
SUBJECT:
PRESENTATION AND POSSIBLE DISCUSSION OF THE TOWN'S FY 22/23 FINANCIAL UPDATE THROUGH
SEPTEMBER 2022 (Please reference attachments)
RECOMMENDATION:
N/A
EXECUTIVE SUMMARY:
Please reference attachments.
BACKGROUND OR DETAILED INFORMATION:
Please reference attachments
FISCAL IMPACT:
N/A
SUGGESTED MOTION:
N/A
Attachments
Council Memo - September 2022 Financial Update
Attachment A - General Fund
Attachment B - Highway Fund
Attachment C-1 - Community Center Fund
Attachment C-2 Golf Contractor P&L
Attachment D - Summary All Funds
Attachment E - Gen Fund Local Sales Tax
Attachment F - Gen Fund State Shared Revenues
Staff Presentation
Town Manager’s Office
TOWN COUNCIL REPORT
DATE: November 16, 2022
TO: Mayor and Council
THRU: Chris Cornelison, Interim Town Manager
FROM: David Gephart, Chief Financial Officer
SUBJECT: September 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 September 2022 for fiscal year 2022/23. 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. Estimates reflected in monthly financial updates may not include
adjusting audit entries required at year-end.
EXECUTIVE SUMMARY:
Revenues are performing well compared to budget, and expenditures are trending as expected. Further
details on revenues and expenditures are as follows.
General Fund
In the General Fund (see attachment A), revenues total $12.4 million or 24.5% of budget, while
expenditures are at $12.4 million or 19.2% of the total budget.
Highway Fund
In the Highway Fund (see attachment B), revenues total $999,152 or 24.0% of budget, while expenditures
total $438,049 or 9.4% of budget.
Community Center Fund
In the Community Center Fund (see attachment C-1 & C-2), revenues total $1.8 million or 20.8% of budget,
while expenditures total $3.7 million or 28.2% of budget.
BACKGROUND AND DETAILED INFORMATION:
GENERAL FUND
Attachment A shows General Fund revenues and expenditures through September, as well as year-end
estimates for each category. The estimated year-end projections in the General Fund are as follows:
Revenues: $53,161,516
Less:
Expenditures: ($49,106,823)
Other Financing Uses ($16,446,977)
Preliminary Estimated Decrease in Fund Balance: ($12,392,284)*
*The estimated decrease in fund balance is due to a budgeted transfer of $13.5 million of fund balance to
the Capital Fund for CIP projects.
General Fund Revenues
• Local sales tax collections in the General Fund total $6.4 million or 25.3% of the budgeted amount
of $25.3 million and are performing better than anticipated. Retail collections total $2.1 million,
which is $122,844 or 6.3% higher than the same time period last fiscal year. Both restaurant/bar
collections and bed tax collections are up 11.6% and 14.2% respectively, compared to the same
time period last fiscal year. Construction sales tax collections total $1.7 million through September,
which is $189,830 or 12.6% higher than collections from the same time period last fiscal year,
primarily driven by higher commercial building activity. Total local sales tax revenue is expected to
come in nearly $1.3 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 $421,839 or 19.0% of the budget amount of $2.2 million. Single
Family Residential (SFR) permits issued through September total 46 and are a large portion of this
revenue piece. License and permit revenues are expected to come in $260,000 over budget, due
to revised permitting estimates from expected commercial development activity.
• State shared revenues total $4.1 million or 23.3% of the budget amount of $17.6 million. These
revenue 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 $641,000 over budget due to higher than expected state sales tax collections.
• Charges for services revenues total $751,672 or 24.7% of the budget amount of $3.0 million. Cost
allocation charges to the Town’s enterprise funds for services provided, as well as Parks &
Recreation fees, make up the bulk of this revenue category. Charges for services are forecasted
to come in $93,000 under budget at this time, due primarily to farebox revenues as fee waivers are
expected to continue through the end of the fiscal year.
• Miscellaneous revenue are forecast to come in $340,000 over budget due primarily to a rebate
received from the Arizona Municipal Risk Retention Pool (AMRRP).
General Fund Expenditures
• General Fund expenditures total $12.4 million or 19.2% of budget through September.
• Please note that the $885,000 Vistoso Trails Nature Preserve settlement payment is included in
the year-end estimates for General Administration. Strong revenue performance, combined with
other areas of expenditure savings, are expected to make up for the payment. Staff will continue to
closely monitor this and keep Council apprised.
• Transfers out of the General Fund are expected to end the fiscal year on budget. Note that actuals
through September reflect the budgeted transfer to debt service.
The General Fund is expected to end the fiscal year with a total fund balance of $18 million, or 37.4% of
budgeted expenditures, exceeding Council policy by nearly $6 million.
HIGHWAY FUND
Highway Fund Revenues
• State shared highway user funds total $968,170 or 23.5% of the budget amount of $4.1 million.
These revenues are projected to come in on budget at this time. Other minor revenue sources in
the Highway Fund are expected to come in at a favorable budget variance of $4,000 or 0.1% due
to a vendor refund of prior year invoice credits that was owed to the Town.
Highway Fund Expenditures
• Highway Fund expenditures though September are at $438,049 or 9.4% of the adopted budget of
$4.7 million. Capital projects and spending, including that for the pavement preservation program,
began in October. Highway Fund expenditures are projected to come in on budget at this time.
The Highway Fund is expected to end the fiscal year with a fund balance of $721,897.
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 golf, and 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 September total $1.8 million or 20.8% of the
budget amount of $8.5 million.
• Contracted operating revenues total $755,148 through September. This is approximately $14,000
or 1.8% less than revenues from the same time period last fiscal year. At this time, contracted
revenues are estimated to be on budget. Contractor revenues are expected to be less than the
prior year due to planned course closures for the irrigation project.
• Town operating revenues for September are $187,033 or 21.1% of the budget amount of $887,800.
Town operating revenues are expected to end the fiscal year on budget at this time.
• Local sales tax revenues for September total $815,747 or 23.5% of the budget amount of $3.5
million. These collections are currently projected to come in $127,000 over budget, due to positive
trends in retail, remote seller and restaurant/bar collections.
Community Center Fund Expenditures
• Expenditures in the Community Center Fund total $3.7 million or 28.2% of the budgeted amount
of $13.2 million.
• Contracted operating expenditures total $1.1 million, or 23.3% of the budgeted amount of $4.7
million. Contracted expenditures are currently estimated to come in on budget.
• Transfers out are expected to end the year about $323,000, or 7.9% higher than budget due to the
Council directive to transfer all fund balance in excess of $1 million to the Capital Fund to be used
for the golf irrigation project. Note that actuals through September reflect the budgeted transfer out
to debt service.
• At this time, the Community Center Fund is projected to end the fiscal year with a total fund balance
of $1 million.
The year-end sales tax support for golf operations is estimated to be $464,419. This figure includes a
budgeted $743,469 loss for contracted golf operations, offset by $159,050 in outside HOA contributions
and approximately $120,000 in local sales taxes generated from golf related operations.
Please see attachments A and B for additional details on the General Fund and Highway Fund. See
attachments C-1 and C-2 for additional details on the Community Center Fund. See attachment D for a
fiscal year-to-date consolidated summary of all Town Funds. See attachment E and F for a breakdown of
monthly local sales tax collections and state shared revenue collections for the General Fund.
ATTACHMENT A
September YTD Financial Status
General Fund
% Budget Completion through September --- 25%
% Actuals YE % Variance
to Budget to Budget
REVENUES `
LOCAL SALES TAX 6,404,411 25,270,959 25.3% 26,528,407 5.0%
LICENSES & PERMITS 421,839 2,223,824 19.0% 2,483,824 11.7%
FEDERAL GRANTS 110,239 380,000 29.0% 397,000 4.5%
STATE GRANTS 17,145 75,000 22.9% 75,000 0.0%
STATE/COUNTY SHARED 4,095,624 17,605,693 23.3% 18,246,957 3.6%
OTHER INTERGOVERNMENTAL 146,673 1,613,000 9.1% 1,613,000 0.0%
CHARGES FOR SERVICES 751,672 3,046,515 24.7% 2,953,483 -3.1%
FINES 23,740 125,000 19.0% 125,000 0.0%
INTEREST INCOME 97,822 150,000 65.2% 150,000 0.0%
MISCELLANEOUS 346,640 249,000 139.2%588,845 136.5%
TOTAL REVENUES 12,415,805 50,738,991 24.5% 53,161,516 4.8%
% Actuals YE % Variance
to Budget to Budget
EXPENDITURES
CLERK 111,466 422,705 26.4% 422,705 0.0%
COMMUNITY & ECON. DEV. 789,841 3,280,764 24.1% 3,397,472 3.6%
COUNCIL 90,220 199,145 45.3% 199,145 0.0%
FINANCE 239,114 1,111,460 21.5% 1,083,460 -2.5%
GENERAL ADMINISTRATION 1,303,884 4,077,234 32.0% 4,924,234 20.8%
HUMAN RESOURCES 137,939 569,905 24.2% 569,905 0.0%
INNOVATION & TECHNOLOGY 1,041,494 4,797,809 21.7% 4,797,809 0.0%
LEGAL 216,962 1,015,753 21.4% 1,015,753 0.0%
MANAGER 264,276 1,160,173 22.8% 1,281,805 10.5%
PARKS & RECREATION 817,101 3,775,162 21.6% 3,775,162 0.0%
POLICE 3,956,260 20,403,472 19.4% 20,403,472 0.0%
PUBLIC WORKS 1,144,267 6,200,227 18.5% 6,176,227 -0.4%
TOWN COURT 207,756 1,059,674 19.6% 1,059,674 0.0%
TRANSFERS OUT 2,048,965 16,446,977 12.5%16,446,977 0.0%
TOTAL EXPENDITURES 12,369,545 64,520,460 19.2% 65,553,800 1.6%
CHANGE IN FUND BALANCE 46,259 (13,781,469) (12,392,284)
BEGINNING FUND BALANCE 30,390,425
Plus: Surplus / (Use of Fund Balance)(12,392,284)
ENDING FUND BALANCE **17,998,141
* Year-end estimates are subject to further revision
** Ending fund balance amounts are estimates and are subject to further revision
FY 2022/2023
Year End
Estimate *
Budget Year End
Estimate *
Actuals
thru 9/2022
Actuals
thru 9/2022
Budget
ATTACHMENT B
September YTD Financial Status FY 2022/2023
% Budget Completion through September --- 25%
Actuals
thru 9/2022 Budget % Actuals
to Budget
Year End
Estimate *
YE % Variance
to Budget
REVENUES -
LICENSES & PERMITS 8,548 25,000 34.2% 25,000 0.0%
STATE/COUNTY SHARED 968,170 4,127,100 23.5% 4,127,100 0.0%
INTEREST INCOME 16,532 8,000 206.7% 8,000 0.0%
MISCELLANEOUS 5,902 3,000 196.7%7,000 133.3%
TOTAL REVENUES 999,152 4,163,100 24.0% 4,167,100 0.1%
Actuals
thru 9/2022 Budget % Actuals
to Budget
Year End
Estimate *
YE % Variance
to Budget
EXPENDITURES
TRANSPORTATION ENGINEERING 298,371 4,192,089 7.1% 4,192,089 0.0%
STREET MAINTENANCE 139,678 460,100 30.4%460,100 0.0%
TOTAL EXPENDITURES 438,049 4,652,189 9.4% 4,652,189 0.0%
CHANGE IN FUND BALANCE 561,103 (489,089) (485,089)
BEGINNING FUND BALANCE 1,206,986
Plus: Surplus / (Use of Fund Balance) (485,089)
ENDING FUND BALANCE ** 721,897
* 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
September YTD Financial Status
% Budget Completion through September --- 25%
% Actuals YE % Variance
to Budget to Budget
REVENUES
CONTRACTED OPERATING REVENUES
Golf Revenues, Trail and Cart Fees 294,078 2,060,519 14.3% 2,060,519 0.0%
Member Dues 291,256 1,102,500 26.4% 1,102,500 0.0%
Food & Beverage 120,758 546,350 22.1% 546,350 0.0%
Merchandise & Other 49,056 270,780 18.1%270,780 0.0%
755,148 3,980,149 19.0% 3,980,149 0.0%
TOWN OPERATING REVENUES
Daily Drop-Ins 7,309 30,000 24.4% 30,000 0.0%
Member Dues 138,724 620,500 22.4% 620,500 0.0%
Recreation Programs 29,233 170,000 17.2% 170,000 0.0%
Facility Rental Income 11,767 67,300 17.5%67,300 0.0%
187,033 887,800 21.1% 887,800 0.0%
OTHER REVENUES
Local Sales Tax 815,747 3,477,236 23.5% 3,603,855 3.6%
Interest Income 14,455 3,000 481.8% 3,000 0.0%
Miscellaneous 15 159,150 0.0%159,150 0.0%
830,217 3,639,386 22.8% 3,766,005 3.5%
TOTAL REVENUES 1,772,399 8,507,335 20.8% 8,633,954 1.5%
% Actuals YE % Variance
to Budget to Budget
EXPENDITURES
CONTRACTED OPERATING EXPENDITURES
Personnel 354,558 1,728,134 20.5% 1,728,134 0.0%
Food & Beverage 115,815 487,863 23.7% 487,863 0.0%
Operations & Maintenance 602,810 2,344,939 25.7% 2,344,939 0.0%
Equipment Leases 28,870 162,682 17.7%162,682 0.0%
1,102,054 4,723,618 23.3% 4,723,618 0.0%
TOWN OPERATING EXPENDITURES
Personnel 248,764 920,274 27.0% 920,274 0.0%
Operations & Maintenance 112,805 775,299 14.5%775,299 0.0%
361,569 1,695,573 21.3% 1,695,573 0.0%
CAPITAL OUTLAY 220,615 2,666,700 8.3% 2,666,700 0.0%
TRANSFERS OUT 2,028,066 4,085,380 49.6% 4,408,520 7.9%
TOTAL EXPENDITURES 3,712,304 13,171,271 28.2% 13,494,411 2.5%
CHANGE IN FUND BALANCE (1,939,905) (4,663,936) (4,860,457)
BEGINNING FUND BALANCE 5,860,458
Plus: Surplus / (Use of Fund Balance)(4,860,457)
ENDING FUND BALANCE **1,000,000
* Year-end estimates are subject to further revision
** Ending fund balance amounts are estimates and are subject to further revision
FY 2022/2023
Actuals
thru 9/2022 Budget Year End
Estimate *
Community Center Fund
Actuals
thru 9/2022 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
2,829 1,600 1,229 2,235 594 Rounds ‐ Member 7,950 4,800 3,150 5,937 2,013
255 150 105 232 23 Rounds ‐ Outing 670 450 220 871 (201)
2,525 1,000 1,525 2,817 (292)Rounds ‐ Public 6,896 2,800 4,096 9,122 (2,226)
====================================================================================================================================================================
5,609 2,750 2,859 5,284 325 Total Rounds 15,516 8,050 7,466 15,930 (414)
Revenue
97,788 27,500 70,288 99,302 (1,515)Green Fees 220,690 71,500 149,190 270,036 (49,345)
23,746 21,050 2,696 21,948 1,799 Cart Fees 70,249 63,150 7,099 65,256 4,993
442 1,750 (1,308)2,452 (2,011)Driving Range 3,139 4,500 (1,361)8,063 (4,924)
0 0 0 0 0 Golf Cards/Passes 0 0 0 0 0
10,937 11,075 (138)13,191 (2,254)Pro Shop Sales 32,956 31,075 1,881 37,252 (4,296)
20,988 16,900 4,088 22,276 (1,288)Food (Food & Soft Drinks) 65,761 53,850 11,911 62,376 3,385
20,375 14,710 5,665 15,933 4,442 Beverages (Alcohol) 52,929 45,430 7,499 50,580 2,349
924 0 924 (463)1,386 Other Food & Beverage Revenue 2,068 265 1,803 (187)2,255
1,670 1,225 445 1,551 119 Other Golf Revenues (Club Rent, Handica 3,931 2,750 1,181 3,510 421
4,598 550 4,048 960 3,638 Clinic / School Revenue 7,544 2,550 4,994 3,591 3,954
97,437 88,500 8,937 90,924 6,513 Dues Income ‐ Monthly Dues 291,256 265,500 25,756 267,959 23,297
2,416 100 2,316 (148)2,565 Miscellaneous Income and Discounts 4,624 300 4,324 553 4,072
================================================================================= ============================================================= ================
281,320 183,360 97,960 267,927 13,393 Total Revenue 755,148 540,870 214,278 768,987 (13,839)
Cost of Sales
8,959 7,753 (1,206)10,020 1,061 COGS ‐ Pro Shop 29,581 21,753 (7,829)26,591 (2,990)
6,278 4,818 (1,460)6,617 338 COGS ‐ Food 20,516 15,263 (5,254)17,118 (3,398)
2,629 736 (1,893)843 (1,786)COGS ‐ Non‐Alcoholic Beverages 4,222 2,432 (1,790)2,862 (1,360)
5,213 4,477 (736)5,091 (123)COGS ‐ Alcohol 14,176 13,818 (359)15,945 1,769
‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐
23,080 17,784 (5,296)22,570 (509)Total Cost of Sales 68,496 53,265 (15,232)62,517 (5,979)
================================================================================= ============================================================= ================
258,241 165,576 92,664 245,357 12,884 GROSS INCOME 686,652 487,605 199,046 706,470 (19,818)
Labor
28,817 24,791 (4,027)23,750 (5,068)Golf Operation Labor 85,537 75,325 (10,213)69,266 (16,271)
10,483 9,250 (1,233)8,913 (1,570)General and Administrative 30,328 27,750 (2,578)27,324 (3,003)
64,789 67,820 3,030 61,693 (3,097)Maintenance and Landscaping 173,954 203,259 29,305 173,241 (713)
18,894 17,951 (943)17,769 (1,125)F&B 55,768 54,163 (1,605)54,499 (1,269)
2,229 5,917 3,688 6,240 4,011 Sales and Marketing 13,790 17,150 3,360 16,371 2,581
‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐
125,213 125,728 515 118,365 (6,848)Total Direct Labor 359,376 377,646 18,270 340,700 (18,676)
10,007 11,529 1,522 8,274 (1,733)Total Payroll Taxes 27,477 34,636 7,159 25,683 (1,794)
9,927 11,153 1,226 10,123 196 Total Medical/Health Benefits 30,235 32,464 2,229 29,375 (859)
1,735 1,490 (245)1,776 41 Total Workmans Comp 5,493 4,989 (504)5,991 498
‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐
21,669 24,172 2,503 20,173 (1,496)Total Payroll Burden 63,204 72,089 8,884 61,049 (2,155)
================================================================================= ============================================================= ================
146,882 149,900 3,018 138,538 (8,344)Total Labor 422,580 449,735 27,155 401,750 (20,831)
Other Operational Expenses
4,560 4,118 (442)8,676 4,116 Golf Ops 8,950 8,777 (173)21,758 12,808
13,330 7,074 (6,256)7,310 (6,020)G&A 32,656 23,306 (9,350)26,436 (6,220)
126,899 132,648 5,749 131,692 4,793 Maintenance 177,011 226,414 49,403 200,170 23,159
2,899 2,355 (544)2,352 (547)F&B 8,878 6,890 (1,988)6,975 (1,902)
2,212 2,475 264 1,397 (814)Sales and Marketing 6,341 5,525 (816)5,703 (638)
1,757 13,557 11,800 13,041 11,284 Golf Cart Leases 28,870 40,671 11,801 39,123 10,253
596 0 (596)0 (596)Equipment Leases 596 0 (596)0 (596)
74,164 112,625 38,461 89,059 14,895 Utilities ‐ Maintenance 217,543 311,750 94,207 250,011 32,468
14,858 15,825 967 16,181 1,323 Utilities ‐ G&A 48,036 47,950 (86)48,699 663
10,404 10,404 0 10,200 (204)Management Fees 31,212 31,212 0 30,600 (612)
6,668 3,846 (2,822)3,846 (2,822)Insurance ‐ P&C 23,383 11,530 (11,853)11,530 (11,853)
‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐
258,345 304,927 46,582 283,754 25,408 Total Other Operational Expenses 583,477 714,025 130,548 641,006 57,529
================================================================================= ============================================================= ================
405,227 454,827 49,600 422,292 17,064 Total Expenses 1,006,057 1,163,760 157,703 1,042,755 36,698
================================================================================= ============================================================= ================
(146,987)(289,251)142,264 (176,935)29,948 EBITDAR (319,405)(676,155)356,749 (336,285)16,880
================================================================================= ============================================================= ================
(146,987)(289,251)142,264 (176,935)29,948 EBITDA (319,405)(676,155)356,749 (336,285)16,880
Interest Expense/Dep&Amt
0 0 0 0 0 Other Expense 0 0 0 (343) (343)
27,500 0 (27,500)0 (27,500)Capital Improvements/Cap Reserve 27,500 0 (27,500)10,560 (16,940)
‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐
27,500 0 (27,500)0 (27,500)Total Interest Expense 27,500 0 (27,500)10,217 (17,283)
================================================================================= ============================================================= ================
(174,487)(289,251)114,764 (176,935)2,448 Net Income (346,905)(676,155)329,249 (346,502)(403)
El Conquistador Golf Club
For the Month Ending September 30th, 2022
September YTD
ATTACHMENT DConsolidated Year-to-Date Financial Report through September 2022FY 2022/2023FundFY 22/23Beginning BalanceRevenueOther Fin Sources/TransfersTotal In Personnel O&M CapitalDebt ServiceCapital Leases /Transfer OutTotal OutFund Balance Through September 2022General Fund 30,390,425 12,415,805 12,415,805 7,018,471 3,223,864 78,245 2,048,965 12,369,545 30,436,685 Highway Fund 1,206,986 999,152 999,152 260,768 177,281 438,049 1,768,089 Grants and Contributions Fund 208,250 5,409,259 5,409,259 18,480 18,480 5,599,029 Seizure & Forfeiture - Justice/State 237,863 3,156 3,156 26,425 26,425 214,594 Community Center Fund 5,860,458 1,772,399 1,772,399 603,322 831,431 220,615 2,056,936 3,712,304 3,920,553 Municipal Debt Service Fund 164,136 32,066 4,200,971 4,233,037 4,664 3,633,719 3,638,383 758,790 Water Resource System & Dev. Impact Fee Fund 17,544,433 869,038 869,038 122,120 333,327 455,447 17,958,024 Townwide Roadway Dev Impact Fee Fund 1,939,688 66,129 66,129 - 2,005,817 Parks & Recreation Impact Fee Fund 509,474 53,533 53,533 - 563,007 Police Impact Fee Fund 132,559 19,791 19,791 121,500 121,500 30,850 Capital Fund 24,110,390 294,654 294,654 30,252 105 3,893,467 3,923,824 20,481,220 PAG/RTA Fund 873,366 9,677 9,677 650 68,806 69,456 813,587 Water Utility 12,628,510 4,690,279 4,690,279 799,249 1,814,866 277,490 4,229,099 2,440 7,123,144 10,195,645 Stormwater Utility 1,125,140 348,551 348,551 202,180 71,277 273,457 1,200,234 Benefit Self Insurance Fund 2,869,952 975,913 975,913 1,156,783 1,156,783 2,689,082 Recreation In-Lieu Fee Fund 16,617 52 52 - 16,669 Total 99,818,247 27,959,454 4,200,971 32,160,425 8,914,242 7,325,826 4,660,743 8,196,145 4,229,841 33,326,797 98,651,875
ATTACHMENT EGeneral Fund Local Sales Tax Collections FY 2022/23CATEGORY JULYAUGSEPOCTNOVDECJANFEBMARAPRMAYJUNETOTALConstruction Sales Tax586,039 575,738 540,567 1,702,344 Utility Sales Tax317,210 371,973 356,012 1,045,195 Retail Sales Tax716,720 680,117 691,138 2,087,974 Bed Tax146,263 128,132 114,626 389,021 Restaurant & Bar Sales Tax186,438 180,577 199,405 566,419 All Other Local Sales Tax *210,893 199,992 202,571 613,457 Monthly Total 2,163,563$ 2,136,529$ 2,104,319$ 6,404,411$ Cumulative Total 2,163,563$ 4,300,092$ 6,404,411$ FY 2021/22CATEGORY JULYAUGSEPOCTNOVDECJANFEBMARAPRMAYJUNETOTALConstruction Sales Tax 441,038 419,552 651,924 906,165 509,231 436,821 829,833 525,234 491,178 601,856 466,142 582,006 6,860,980 Utility Sales Tax 321,489 383,548 329,545 323,173 285,048 238,499 253,620 474,092 115,418 252,114 234,820 261,849 3,473,215 Retail Sales Tax 675,726 647,693 641,711 682,029 727,762 814,794 1,015,258 701,089 686,381 818,648 793,639 718,525 8,923,255 Bed Tax 130,217 117,012 93,538 108,884 392,162 157,378 205,021 181,927 257,471 321,178 247,836 171,705 2,384,329 Restaurant & Bar Sales Tax 172,386 162,947 172,178 195,482 227,724 191,664 226,775 199,622 206,978 233,228 226,654 219,474 2,435,113 All Other Local Sales Tax *181,767 180,252 164,385 191,016 284,083 217,626 274,274 225,090 254,639 285,717 248,743 221,793 2,729,386 Monthly Total 1,922,624$ 1,911,004$ 2,053,282$ 2,406,749$ 2,426,009$ 2,056,782$ 2,804,781$ 2,307,054$ 2,012,065$ 2,512,741$ 2,217,835$ 2,175,352$ 26,806,278$ Cumulative Total 1,922,624$ 3,833,628$ 5,886,910$ 8,293,659$ 10,719,668$ 12,776,451$ 15,581,231$ 17,888,285$ 19,900,350$ 22,413,091$ 24,630,926$ 26,806,278$ * Note: Does not include cable franchise fees or sales tax audit revenues
ATTACHMENT FGeneral Fund State Shared RevenuesFY 2022/23CATEGORY JULYAUGSEPOCTNOVDECJANFEBMARAPRMAYJUNETOTALState Shared Income Tax 756,893 756,894 756,893 2,270,680 State Shared Sales Tax 308,350 462,557 664,529 1,435,436 County Auto Lieu 97,269 201,901 90,338 389,508 Smart and Safe- - - - Monthly Total 1,162,512$ 1,421,352$ 1,511,760$ 4,095,624$ Cumulative Total 1,162,512$ 2,583,864$ 4,095,624$ FY 2021/22CATEGORY JULYAUGSEPOCTNOVDECJANFEBMARAPRMAYJUNETOTALState Shared Income Tax 500,637 500,637 517,313 517,313 517,313 517,313 517,313 517,313 517,313 517,313 517,313 517,313 6,174,404 State Shared Sales Tax 291,674 534,620 464,795 538,626 428,064 680,044 569,532 458,855 555,746 671,412 521,466 922,244 6,637,078 County Auto Lieu 100,364 178,439 214,084 179,539 176,572 183,593 166,138 185,396 187,906 231,739 168,035 298,521 2,270,326 Smart and Safe- - - - - 113,051 - 59 15 - - 122,828 235,953 Monthly Total 892,675$ 1,213,696$ 1,196,192$ 1,235,478$ 1,121,949$ 1,494,001$ 1,252,983$ 1,161,623$ 1,260,980$ 1,420,464$ 1,206,814$ 1,860,906$ 15,317,760$ Cumulative Total 892,675$ 2,106,371$ 3,302,563$ 4,538,040$ 5,659,989$ 7,153,990$ 8,406,973$ 9,568,596$ 10,829,576$ 12,250,040$ 13,456,854$ 15,317,760$
Fiscal Year 2022/23
Financial Update Through September 2022
November 15, 2022
Overview/Reminders
All amounts are preliminary, unaudited and subject to change
Year-end estimates may not include adjusting audit entries required at year-end
Year-end estimates should not be relied upon as precise predictors of year-end balances;
they are fluid, informational, and based on currently available data
The Town’s financial performance throughout the fiscal year is best indicated by
comparing actuals to the adopted budget
Overall, revenues are performing well compared to budget, and expenditures are trending
as expected
GENERAL FUND REVENUES
REVENUE SOURCE Budget Actuals
Thru 9/2022 % of Budget Year-End
Estimate Notes
Local Sales Taxes $ 25,270,959 $ 6,404,411 25.3%$ 26,528,407 Higher than expected growth in contracting sales tax,
retail, restaurant & bar, hotels, and remote seller
State Shared Revenues 17,605,693 4,095,624 23.3%18,246,957 Trending higher than expected in state sales tax
Charges for Services 3,046,515 751,672 24.7%2,953,483 Trending as expected
Licenses & Permits 2,223,824 421,839 19.0%2,483,824 Year-end estimate reflects revised commercial
permit revenue
Grant Revenue 455,000 127,384 28.0%472,000 Year-end estimate reflects Transit federal grant
revenue
All Other 2,137,000 614,875 28.8%2,476,845
Includes other intergovernmental revenue, interest
income and miscellaneous revenue. Revised upward
due to $320K AMRRP rebate.
TOTAL GENERAL FUND
REVENUES $ 50,738,991 $ 12,415,805 24.5%$ 53,161,516 Favorable budget variance of $2.4 million projected
at this time
GENERAL FUND EXPENDITURES
EXPENDITURE CATEGORY Budget Actuals
Thru 9/2022 % of Budget Year-End
Estimate Notes
Personnel $ 34,876,210 $ 7,018,471 20.1%$ 34,907,842
Trending as expected; percentage of budget reflects
timing of payrolls as well as pension contributions
pending updated actuarial reports. Year-end estimate
attributable to Town Manager turnover, partially
offset by expected vacancy savings.
Operations & Maintenance 11,809,548 3,223,864 27.3%12,811,256
Actuals and year-end estimate include $885K claim
settlement payment for the Vistoso Trails Nature
Preserve. Year-end estimate also includes on-call plan
review services tied to commercial development.
Capital 1,387,725 78,245 5.6%1,387,725
Budget includes Westward Look improvements, IT
needs, and various departmental equipment and
capital needs
Transfers Out 16,446,977 2,048,965 12.5%16,446,977 Actuals reflect the budgeted transfer for debt service
TOTAL GENERAL FUND
EXPENDITURES $ 64,520,460 $ 12,369,545 19.2%$ 65,553,800 Budget variance of $1 million attributable primarily
to Vistoso settlement payment
Budgeted Use of Fund Balance:
($13.8M)
Estimated Use of Fund Balance:
($12.4M)
Estimated Ending Fund
Balance: $18.0M
37.4% of budgeted expenditures
Exceeds Council 25% Policy by
$6.0M
GENERAL FUND
e enues penditures
ctual
ctual
udget
HIGHWAY FUND REVENUES
REVENUE SOURCE Budget Actuals
Thru 9/2022 % of Budget Year-End
Estimate Notes
Licenses & Permits $ 25,000 $ 8,548 34.2%$ 25,000 Trending higher than expected, year-end estimate may
be revised as fiscal year progresses
State Shared Revenues 4,127,100 968,170 23.5%4,127,100 Trending slightly less than expected
All Other 11,000 22,434 203.9%15,000 Favorable budget variance of $4,000 due to a vendor
refund
TOTAL HIGHWAY FUND
REVENUES $ 4,163,100 $ 999,152 24.0%$ 4,167,100 Favorable budget variance of $4,000 or 0.1% due to a
vendor refund
HIGHWAY FUND EXPENDITURES
EXPENDITURE
CATEGORY Budget Actuals
Thru 9/2022 % of Budget Year-End
Estimate Notes
Personnel $ 1,202,574 $ 260,768 21.7%$ 1,202,574 Trending as expected; percentage of budget reflects
timing of payrolls
Operations &
Maintenance 823,615 177,280 21.5%823,615 Trending as expected
Capital 2,619,000 -0.0%2,619,000 Pavement preservation program to begin in October
TOTAL HIGHWAY FUND
EXPENDITURES $ 4,645,189 $ 438,049 9.4%$ 4,645,189 No budget variance projected at this time
Budgeted Use of Fund Balance:
($489,000)
Estimated Use of Fund Balance:
($485,000)
Estimated Ending Fund
Balance: $722,000
HIGHWAY FUND
e enues penditures
ctual
ctual
udget
COMMUNITY CENTER FUND REVENUES
REVENUE SOURCE Budget Actuals
Thru 9/2022 % of Budget Year-End
Estimate Notes
Contracted Operating
Revenues $ 3,980,149 $ 755,148 19.0%$ 3,980,149 Trending as expected
Town Operating Revenues 887,800 187,033 21.1%887,800
Recreation program revenue is seasonal; member
dues slightly below budget and less than prior year
actuals
Other Revenues 3,639,386 830,217 22.8%3,766,005
Includes ½ cent sales tax revenues, HOA
contributions, interest income and other
miscellaneous revenues. Trending slightly higher
than expected due to ½ cent sales tax.
TOTAL COMM. CENTER
FUND REVENUES $ 8,507,335 $ 1,772,399 20.8%$ 8,633,954 Favorable budget variance of $126,619 due to sales
tax revenue
COMMUNITY CENTER FUND EXPENDITURES
EXPENDITURE CATEGORY Budget Actuals
Thru 9/2022 % of Budget Year-End
Estimate Notes
Contracted Operating
Expenditures $ 4,723,618 $ 1,102,054 23.3%$ 4,723,618 Trending as expected
Town Operating
Expenditures 1,695,573 361,569 21.3%1,695,573 Trending as expected
Capital Outlay 2,666,700 220,615 8.3%2,666,700 Projected on budget at this time
Transfers Out 4,085,380 2,028,066 49.6%4,408,520
Actuals reflect the budgeted transfer for debt
service; year-end estimate includes transfer out of
all estimated fund balance in excess of $1 million to
Capital Fund for golf irrigation project
TOTAL COMM. CENTER
FUND EXPENDITURES $ 13,171,271 $ 3,712,304 28.2%$ 13,494,411 Budget variance of $323,140 or 2.5% due to
transfer out for golf irrigation project
COMMUNITY CENTER FUND
Budgeted Use of Fund Balance:
($4.7M)
Estimated Use of Fund Balance:
($4.9M)
Estimated Ending Fund
Balance: $1M
e enues penditures
ctual
ctual
udget
MONTHLY FINANCIAL UPDATE
QUESTIONS?
Budget and Finance Commission 4.
Meeting Date:11/15/2022
Submitted By:Christopher Hutchison, Finance
SUBJECT:
PRESENTATION OF STATUS UPDATE ON VARIOUS PROJECTS
RECOMMENDATION:
N/A
EXECUTIVE SUMMARY:
The Budget and Finance Commission has requested a financial status update on the following projects: Oro Valley
Marketplace, Vistoso Trails Nature Preserve Safety Improvements, Westward Look Drive Improvements, and the
ASRS pension fund.
BACKGROUND OR DETAILED INFORMATION:
Oro Valley Marketplace
The requested zoning amendments and project status are still under review and consideration by the
Town Council. All current information related to this project is available publicly through attachments and
reports made to Town Council at their last meeting.
Vistoso Trails Nature Preserve Safety Improvements
Project Description: Vistoso Trails initial site cleanup including weed, invasive grasses and dead tree removal, trail
accessibility and restoring restrooms to working condition. Significant work is required to ensure public safety and
access.
FY23 Budget: $350,000 (Community Center Fund)
This project is currently in the construction phase. Through October, the Town has spent $130,067 (37% of budget)
and is expecting to complete the project on budget at this time. The project has experienced delays due to pest
infestation and an increased scope of work.
Westward Look Drive Improvements
Project Description: Reconstruct Westward Look Drive from Ina Road to Vista Oeste, to include removing and
replacing extruded curb, adjusting manholes and water valve covers.
FY23 Budget: $539,625 (General Fund)
Through October, the Town has spent $50,107 (9% of budget)
The design for this project is complete and the project is currently in the procurement phase.
The construction contract was awarded to Sunland Asphalt Company; however, at the request of the Westward
Look Resort management and due to other title issues, construction has been significantly delayed. Due to the
delay, the Town must now go out to bid again, which is expected to be higher than the original bid and exceed the
budget by approximately $150,000.
ASRS Pension Fund
Similar to the PSPRS fund, ASRS experienced significant strong investment performance during the fiscal year
ended June 30, 2021. Its investments yielded a 25.1% return. This strong performance reduced the Town's portion
of the plan's unfunded actuarial liability from $21,464,093 to $15,876,526. The plan's funding ratio increased from
69.33% to 78.58%.
For fiscal year 2022, ASRS return on its investment portfolio was 1.1%, which is far short of the assumed rate of
7.0%. Therefore, it can be expected that the plan's unfunded actuarial liability will increase and funding ratios will
decrease when updated actuarial reports are released. The following details historic rates of return on plan
investments:
3 year: 8.4%
5 year: 8.3%
10 year: 8.9%
Inception: 9.6%
FISCAL IMPACT:
N/A
SUGGESTED MOTION:
N/A
Budget and Finance Commission 5.
Meeting Date:11/15/2022
Submitted By:David Gephart, Finance
SUBJECT:
DISCUSSION REGARDING OPPORTUNITIES FOR THE COMMISSION TO PARTICIPATE IN THE NEXT
10-YEAR GENERAL PLAN UPDATE.
RECOMMENDATION:
N/A
EXECUTIVE SUMMARY:
Milini Simms from the Community and Economic Development Department will present on this item.
BACKGROUND OR DETAILED INFORMATION:
It is time for the Town to update its 10-year General Plan. Milini Simms from the Community and Economic
Development Department will make a short presentation to discuss Budget and Finance Commission involvement
in the process.
FISCAL IMPACT:
N/A
SUGGESTED MOTION:
N/A - INFORMATION ONLY
Attachments
Presentation Link
Opportunities to get Involved in the
next 10-Year General Plan Update
Budget and Finance Commission
November 15, 2022
10-year policy
document guiding
long-term
decisions for the
community
What is a General Plan?
Community
Desires
Directions and
Actions
Legal
Requirements
Importance of the General Plan
The General Plan gets things done!
Goals and policies to bridge the gap between the community’s vision and reality
Actions to fulfill the goals and policies
Public Facilities and Services
Examples of Finance related Actions:
•Action 49: Plan strategically for Town operations, programs and services by studying
alternative revenue sources.
•Action 132: Plan for the growth of the community through annexations by creating an
annexation strategy that reflects sound financial planning.
•Action 136: Identify and facilitate the timely replacement and upgrade of aging infrastructure
by integrating long-term accounting of capital replacement costs in the Capital Improvement
Program.
The General Plan Gets Things Done
Delivering on promises made to the
community
95% of the 310 actions are being worked on or
complete
4 more years to complete remaining actions
Prioritized through the Town Council Strategic
Leadership Plan
Annual Progress Report presented to
Town Council at the end of each year
Next presentation –Dec. 7
First enacted in 1998
Growing Smarter Legislation
Contents
Topics based on jurisdiction size and growth rate
Zoning and General Plan decisions in conformity
Procedural Requirements
Public involvement plan
Jurisdiction notification
Adoption
Voter Approval (51+%)
2/3 Majority Vote of Town Council
Re-adopt every 10 years
Topics of interest
Housing Water Land Use
Environ-
ment and
Views
Transpor-
tation
Public
Safety
Parks and
events
Town
growth
Your Voice, Our Future (YVOF) General Plan
Ratified by 71% of the voters in Nov.
2016
Won the “Best Public Outreach
Award” from the Arizona’s Chapter
of the National Planning Association
and the “Silver Circle Award for
Citizen Participation” from the City-
County Marketing Association
Annual status reports presented to
the Commission and Town Council
YVOF -Three years of planning
What the community told us
Residents in Oro Valley. . .
Most value:
Safe community with low crime rate
Scenic and natural beauty
Sense of community
Least value:
Lack of services
Rapid growth
To build a better community focus on:
Managing land development
Maintaining safety
Employment opportunities
Parks
Festivals or cultural events
Shopping opportunities
First Step: The Public Participation Plan (PPP)
Open –input shapes the plan
Inclusive –all demographics
Convenient –diverse
involvement opportunities
Collaborative –decisions that
resonate with the
community
Accountable –ongoing
assessment
Invitation to all board/commission members
Public Participation Plan Advisory Group
Purpose:
Provide opinions regarding the extent of the General Plan update
Identify community values relative to public participation
Shape a communications strategy to reach Oro Valley’s broad
demographic range
Select a preferred communication strategy and budget among three
public participation levels or alternatives
Tentative schedule
4 weekly meetings throughout December/January
Participation in-person or online via Zoom
Future Board / Commission Involvement
Routine check-ins with boards and commissions
Volunteer opportunities to help gather community input
and spread the word
Focused committee work to development goals, policies
and actions
Public
Participation
Plan
Official Public
“Kick-Off”
Committee
Work
Adoption and
Ratification
Community Engagement Throughout Entire Process
We
Are
Here
Questions/Comments:
Milini Simms, AICP
Principal Planner
520-229-4836
msimms@orovalleyaz.gov