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AGENDA ORO VALLEY
BUDGET AND FINANCE COMMISSION
REGULAR SESSION
MARCH 21, 2023
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 FEBRUARY 21, 2023 REGULAR SESSION MEETING MINUTES
2.DISCUSSION AND POSSIBLE RECOMMENDATION OF DRAFT PUBLIC SAFETY PERSONNEL
RETIREMENT SYSTEM (PSPRS) PENSION FUNDING POLICY FOR FISCAL YEAR ENDING JUNE 30,
2024
3.PRESENTATION AND POSSIBLE DISCUSSION OF THE TOWN'S FY 22/23 FINANCIAL UPDATE
THROUGH JANUARY 2023 (Please reference attachments)
COUNCIL LIAISON COMMENTS
FUTURE AGENDA ITEMS
ADJOURNMENT
POSTED: 3/16/23 at 5 PM by dt
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 AGENDA ITEM: 1.
Meeting Date:03/21/2023
Submitted By:Alison Cote, Legal
SUBJECT:
REVIEW AND APPROVAL OF THE FEBRUARY 21, 2023 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 February 21, 2023 regular session meeting minutes.
Attachments
Draft Minutes - 2/21/23
Budget and Finance Commission AGENDA ITEM: 2.
Meeting Date:03/21/2023
Submitted By:David Gephart, Finance
SUBJECT:
DISCUSSION AND POSSIBLE RECOMMENDATION OF DRAFT PUBLIC SAFETY PERSONNEL RETIREMENT
SYSTEM (PSPRS) PENSION FUNDING POLICY FOR FISCAL YEAR ENDING JUNE 30, 2024
RECOMMENDATION:
Staff recommends approval of the draft PSPRS pension funding policy for next fiscal year.
EXECUTIVE SUMMARY:
Each local government must annually update its PSPRS pension funding policy according to the Arizona Revised
Statutes.
Highlights of the proposed PSPRS pension funding policy are the following:
1) The Annual Required Contribution (ARC) will be paid from operating revenues
2) Whenever the ARC is reduced, the Town will endeavor to continue paying the higher historical employer rate
(43.47%)
3) The 20-year amortization of the unfunded actuarial accrued liability will continue to be utilized
4) Payments in addition to the ARC will be made as funding is available
The Town has set a target to be fully funded on its PSPRS Unfunded Accrued Actuarial Liability by June 30, 2036.
BACKGROUND OR DETAILED INFORMATION:
The PSPRS pension funding policy is required by HB 2097, which amends Arizona Revised Statutes Title 38,
Chapter 5, Article 4, and was approved by the Governor on April 3, 2018. The policy must be updated and approved
annually by the governing body of a local government participating in the plan. The intent of the revision in state law
is to highlight to governing bodies and the public, the approach local governments are taking in addressing
unfunded, accrued, actuarial liabilities of their public safety retirement plan(s). There is no such requirement for the
Arizona State Retirement System (ASRS) covering general local government employees, as that plan is financially
healthier and functions differently than the PSPRS plan in terms of the sharing of unfunded assets/liabilities.
The draft policy pertaining to next fiscal year is attached and is roughly the same Town Council-approved document
for the current year with necessary updates for to which the policy pertains, as well as updates to the actuarial
assets, liabilities and unfunded accrued liabilities.
FISCAL IMPACT:
N/A
SUGGESTED MOTION:
I MOVE to recommend Town Council approval of the updated PSPRS pension funding policy for the fiscal year
ending June 30, 2024, as presented.
or
I MOVE to recommend Town Council approval of the updated PSPRS pension funding policy for the fiscal year
ending June 30, 2024, with the following changes: ___
Attachments
Draft PSPRS Pension Funding Policy
FY22 Dispatch Actuarial Valuation Report
FY22 PSPRS Actuarial Valuation Report
Current Pension Funding Policy
Budget and Finance Commission AGENDA ITEM: 3.
Meeting Date:03/21/2023
Submitted By:Christopher Hutchison, Finance
SUBJECT:
PRESENTATION AND POSSIBLE DISCUSSION OF THE TOWN'S FY 22/23 FINANCIAL UPDATE THROUGH
JANUARY 2023 (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 - Jan 2023 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