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HomeMy WebLinkAboutMinutes - Finance and Bond Committee - 5/25/20060 MINUTES TOWN OF ORO VALLEY FINANCE AND BOND COMMITTEE REGULARMEETING HOPI ROOM DEVELOPMENT SERVICES BUILDING 11,000 N. LA CANADA DRIVE ORO VALLEY, ARIZONA THURSDAY, MAY 25, 2006 AT OR AFTER 700 P.M.' PRESENT: Lyra Done, Chair Tony Eichorn, Vice -Chair Aaron Fisher, Member Chuck Kill, Member EXCUSED: Sarah Frost, Member STAFF PRESENT: Stacey Lemos, Finance Director Wendy Gilden, Management & Budget Analyst Danielle Tanner, Senior Office Specialist ALSO PRESENT: Helen Dankwerth, Town Council Member CALL TO AUDIENCE 1. APPROVAL OF MINUTES FROM THE APRIL 24, 2006 MEETING MOTION. Member Fisher MOVED to approve the minutes from the April 24, 2006 meeting. Vice -Chair Eichorn SECONDED the motion. Motion carried, 4-0. 2. ALTERNATIVE REVENUE "OPTIONS FOR FY 2006/07 Chair Done explained that the Finance and Bond Committee voted unanimously for the utility sales tax to be forwarded with a recommendation for approval to the Town Council last fall and it was voted down by the Council. The Committee discussed the need for hiring additional police officers due to the addition of commercial developments which need to be patrolled. Chair Done stated that hiring of officers should not be delayed because it takes 1-3 years to get police officers trained and in the field. Chair Done requested that the Finance department research the issue of moving forward with the utility tax and allocating funds to personnel with emphasis on the Police Department. Ms. Lemos stated that they will meet with the Police Chief and determine how long it tapes to bring an officer up to speed and what the incidences have been so far with the new shopping center. MINUTES, FINANCE AND BOND REGULAR MEETING 2 Member Fisher stated that the cost of living and market adjustments have been approved but turnover is not just indicative of money and may also relate to insufficient staffing. He reviewed the number of staff members each department requested this fiscal year. Member Dill suggested that if the tax passes, the revenues should be added to the General Fund because it is steadily declining. Ms. Lemos explained that the transaction privilege tax on the utility itself is the sales tax. In order to implement a franchise fee, the Town would have to hold an election and have absolute approval to go into a franchise agreement with a utility company. That grants the Town exclusive rights to only use one utility service within the Town. The franchise fee agreements relate to the uses of the rights of way in the Town. The Town would get a portion of the revenue for their usage of the Town's rights of way. Chair Done discussed allocating a portion of the revenues to the Naranja Town Site. Council Member Dankwerth stated that Parks & Recreation is discussing the possibility of a 200$ bond for money to go toward the Naranja Town Site and other parks: expenses. Chair Done suggested setting aside money to be used for debt service. Chair Done explained that each year, the various departments have not been allocated additional staff. This year the Town Manager decided to bring the pay scale more to market which caused another year of no increases in personnel. Ms. Lemos stated that this year the Police Department hired 2 officers and 2 detectives in mid. -year. Ms. Lemos explained that the CIP items are being funded out of the Town's contingency this year because all of the new resources are being used for the market adjustments. The Committee discussed the following issues: • The water fees rising and the possibility of the utility sales tax not including water. Ms. Lemos offered to research if it would be allowable to exclude water from the tax. • The need. for funding for the. Naranja Town Site • The decline in the General Fund • The need for staffing for the Police Department • Recommending that if the tax is passed, it be revisited every 2 years Ms. Lemos explained that if the utility tax was approved, the proceeds would go into the General Fund. It would become another line item in the General Fund budget revenues section for the utility tax. The Police Department is a departmental expenditure out of the General Fund. She explained that all of the revenues go into the General Fund, are intermixed, and all of the expenditures are categorized by department. The Finance Department could not specifically earmark those moneys to the Police Department. What would happen is that the total General Fund budget would increase by the additional amount of this revenue source. MOTION: Member Fisher MOVED to adopt Ordinance No. (0) 05 -34 implementing a local sales tax on utility services with a certain percentage allocated towards the Police Department, a certain percentage to be used for the Naranja Town Site and the balance to be allocated for the General Fund. Motion failed due to the lack of a second. GAFinance and Bond\Minutes\2006\5-25-06 Minutes.doc 2 Council Member Dankwerth pointed out that the Water Utility Department is planning to increase the rates every year for the next 5 years. She suggested that if this tax passes, perhaps Water Utility could lower the planned rate increases. Ms. Lemos stated that there is a perception by some that by the Police Department receives what is requested each budget year while other departments have gone unfunded. For example, the Human Resources Department is the biggest support department that feels the impact of �kdditional staff in other departments and it has not grown in years. She pointed out that there is o1so, a need for staffing in the departments that support the outside service departments. The Committee discussed that the Town Council has kept 20% or higher total expenditures in the fund balance, MOTION: Vice -Chair Eichorn MOVED to recommend to the Town Council the adoption of the utility sales tax. Member Kill SECONDED the motion. Motion carried, 4-0. Council Member Dank-werth stated that this item is expected to be on the Town Council agenda for a meeting no later than the second week of August. Chair Done indicated that she will make the general recommendation to the Town Council at the May 3 1 " meeting. A statement for additional support of the 4% utility tax will be created. This statement will go in the packets for the Council Members prior to the meeting. The statement will include the following issues: • Public safety and other critical staffing needs in the Town • Recreation needs at the Naranja Town Site • Drains on the Contingency Fund to fund the CIR items • The water portion of the utility tax being dedicated to the Water Enterprise Fund 3. COMMITTEE MEMBERICOUNCIL MEMBER LIAISON REPORTS No report. There being no further business before the Committee, Chair Done adjourned the meeting at 9:28 p.m. Wv\j� Danielle'�Tanner �� Senior Office Specialist GAFinance and Bond\MinL1tes\2006\5-25-06 Minutes,doc