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HomeMy WebLinkAboutAdministration - Affidavits of Publications20232550276 Submitted for recording by the 09/12/2023 12:44 PM Page 1 of 33 eRECORDED IN OFFICIAL RECORDS OF PIMA COUNTY, AZ Town of Oro Valley Gabriella Cazares-Kelly, Recorder GOVERNMENT ENTITY ORDINANCE NO. (0)23-02 AN ORDINANCE OF THE TOWN OF ORO VALLEY, ARIZONA, EXTENDING AND INCREASING THE CORPORATE LIMITS OF THE TOWN OF ORO VALLEY, ARIZONA, PURSUANT TO THE PROVISIONS OF ARIZONA REVISED STATUTES, TITLE 9, CHAPTER 4, ARTICLE 7, AND AMENDMENTS THERETO, BY ANNEXING A CERTAIN TERRITORY CONTIGUOUS TO THE EXISTING LIMITS OF THE TOWN OF ORO VALLEY LOCATED AT THE SOUTHWEST CORNER OF LA CANADA DR. AND MOORE RD. AND IDENTIFIED BY PIMA COUNTY PARCEL NUMBER 219-49-003A WHEREAS, a petition in writing, accompanied by a map or plot of said real property, having been filed and presented to the Mayor and Council of the Town of Oro Valley, Arizona, signed by the owners of more than one-half in value of the real and personal property and more than one-half of the persons owning real and personal property as would be subject to taxation by the Town of Oro Valley in the event of annexation within the territory and land hereinafter described as shown by the last assessment of said property, which said territory is contiguous to the Town of Oro Valley, and not now embraced within its limits, asking that the property more particularly hereinafter described be annexed to the Town of Oro Valley, and to extend and increase the corporate limits of the Town of Oro Valley so as to embrace the same; and WHEREAS, the Mayor and Council of the Town of Oro Valley, Arizona, are desirous of complying with said petition and extending and increasing the corporate limits of the Town of Oro Valley to include said territory; and WHEREAS, the said petition sets forth a true and correct description of all the exterior boundaries of the entire area proposed to be annexed to the Town of Oro Valley, and had attached thereto at all times an accurate map of the territory desired to be annexed; and WHEREAS, no alterations increasing or reducing the territory sought to be annexed have been made after the said petition had been signed by any owner of real and personal property in such territory; and WHEREAS, the provisions of A.R.S. §9471, and amendments thereto, have been fully observed; and WHEREAS, proper and sufficient certification and proof of the foregoing facts are now on file in the office of the Town Clerk of the Town of Oro Valley, Arizona, together with a true and correct copy of the original petition referred to herein, which is on file in the office of the county recorder. NOW, THEREFORE BE IT ORDAINED by the Mayor and Council of the Town of Oro Valley, Arizona, as follows: 20232550276 Page 2 of 33 SECTION 1. That the following territory be, as described in Exhibit "A" attached hereto and incorporated herein by this reference, annexed to the Town of Oro Valley. SECTION 2. That a copy of this Ordinance, together with an accurate map of the territory hereby annexed to the Town of Oro Valley, certified by the Mayor of said Town of Oro Valley, either has been or forthwith will be filed and recorded in the Office of the County Recorder of Pima County, Arizona and that a copy of this ordinance either has been or will be provided to the Clerk of the board of Supervisors of Pima County, Arizona. SECTION 3. It is necessary for the preservation of the peace, health and safety of the Town of Oro Valley that this ordinance become effective thirty days after passage by the Mayor and Council. SECTION 4. If any section, subsection, sentence, clause, phrase or portion of this Ordinance is for any reason held to be invalid or unconstitutional by the decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions thereof. SECTION 5. All Oro Valley Ordinances, Resolutions, or Motions and parts of Ordinances, Resolutions or Motions of the Council in conflict with the provisions of this Ordinance are hereby repealed. PASSED AND ADOPTED by Mayor and Town Council of the Town of Oro Valley, Arizona, this 6" day of September, 2023, ATTEST: E-SIGNEDiby Michael Standish 64 on 2023 99-07 20:03:05 GMT Michael Standish, Town Clerk PUBLISH: DAILY TERRITORIAL SEPTEMBER 12, 13, 14, 18, 2023 TOWN OF ORO VALLEY E-SIGNED by Joseph C. Winfield onI ; 'i-07 17:35:54 GMT Joseph C. Winfield, Mayor APPROVED AS TO FORM: E-SIGNED by Tobin Sidles on 2b237,09-07 19:30:22 GMT Tobin Sidles, Legal Services Director POSTED: 9/12/23 - 10/12/2023 20232550276 Page 3 of 33 EXHIBIT "A" 20232550276 Page 4 of 33 EXHIBIT A CERTIFICATION OF MAP MAP OF AREA TO BE ANNEXED I, Joseph C. Winfield, Mayor of the Town of Oro Valley, Arizona, do hereby certify that the foregoing map is a true and correct map of the territory annexed under and by virtue of the petition of the real and personal property owners in the said territory and by Ordinance No. (0)23-02 , annexing the territory described in Ordinance No. (0)23-02 and as shown on said map as a part of the territory to be included within the corporate limits of the Town of Oro Valley, Arizona. E-SIGNED by Joseph C. Winfield on2023-09-07 17:36:00 GMT Joseph C. Winfield, Mayor 20232550276 Page 5 of 33 PARADIGM LAND DESIGN LLC GPO@ParadigmLand.US • (520) 664.4304 P' TO: Chris Cornelison, Interim Town Manager FROM: Paul Oland Town of Oro Valley 11000 North La Canada Drive DATE: 2/17/2023 Oro Valley, AZ 85737 PROJECT #: 21abbol PROJECT: Annexation Request APN 219-49-003A Dear Mr. Cornelison, I am writing to request annexation of the approximately 36-acre parcel at the southwest corner of La Canada Drive and Moore Road. The property meets all of the dimensional requirements for annexation, as well as a number of the goals and guidelines from the Town's Annexation Strategy: „,— . 1. "Pursue the filling out and squaring off of the Town limits. Strive toward a configuration for the Town limits which eliminates County islands and peninsulas and yields an identifiable and manageable boundary for the Town." ✓ This property, which is circled in red on the map to the right, is a County peninsula, and so annexing it will square off the Town limits. The properties to the north, east, and south were all annexed in the late 198o's. The Town's last significant annexation was La Cholla Airpark, which is just to the northwest of this property. 2. Areas to be considered shall be prioritized as to the quantifiable benefit to the Town. ✓ Unlike all surrounding properties, which are already developed, this infill acreage has yet to yield development impact fees. Once developed, those residents will increase the Town's share of State shared revenue proceeds. Additionally, being at the corner of two major collector roadways, appropriate development of this property will facilitate efficient use of the Town's significant investment in nearby infrastructure. 3. Require the submittal of a fiscal impact analysis for both undeveloped (rural) and developed properties, the level of detail and contents of which may vary with the intensity or complexity of the proposed or existing use of the land. Such analysis is required, regardless of who initiates the annexation process. ✓ Based on the current development concept showing 34 custom home sites, this neighborhood is expected to generate approximately $449K in development impact fees to OV (plus $142K to Pima County for sewer connections), and ongoing state shared revenue of approximately $4oK annually at current rates. Page 1 of 5 20232550276 Page 6 of 33 PROJECT #: 21abbol low DATE: 2/17/2023 4. Future annexations of the Town shall be generally consistent with the policies and the planning area of the Town's adopted General Plan. ✓ This proposed neighborhood will follow the existing General Plan future land use designations. No General Plan amendment is proposed. 5. The Oro Valley Planning and Zoning Commission shall review any proposed annexation outside the General Plan Planning Area. The Commission shall forward a recommendation to the Town Council within 3o days of the initial hearing on the proposed annexation. ✓ This property is within the General Plan Planning Area, indicating that the property is in an area that influences growth in Oro Valley. The implication is that the Town should actively pursue ensuring development of such properties is compatible with, or conforms to, the Town's vision and development regulations. 6. Provide the community with a wide range of services, amenities, shopping and dining opportunities and housing types that meet the needs of current and future residents. ✓ High -quality, relatively low -density housing forms a significant portion of Oro Valley's suburban fabric. Despite recent economic softening, demand for that staple segment of the local housing market remains strong, and is expected to continue. The Town's Annexation Strategy document provides the following criteria for prioritizing annexation opportunities and requests: A. The Town's ability to provide the full range of Town services and facilities, and the ability for the area to financially support those services. ✓ As an infill property, extensive infrastructure and public services are already in close proximity to the property, minimizing the cost of providing them to future residents of this property: • Frontage on two major collector roadways with sidewalks and shared -use paths. • OV Water mains within two adjacent rights -of -way. • A sewer manhole in an adjacent right-of-way. • Within bicycling distance of Vistoso Trails Nature Preserve, Honey Bee Canyon Park, Honey Bee Archaeological Preserve, the Oro Valley Community and Recreation Center, Golf Courses, and Naranja Town Park. B. The potential of the area to accommodate job growth. ✓ The General Plan designates this property for relatively low -density residential development, so job creation other than home -based businesses wouldn't be appropriate onsite. However, increasing the Town's stock of high -quality housing opportunities always indirectly benefits job growth. C. The opportunity to control urban growth using Town development standards in areas where future development is likely. ✓ The property owner knows that the project could be developed in Pima County approximately as proposed. However, Oro Valley's development regulations and quality branding are superior, so we respectfully request annexation. Page 2 of 5 20232550276 Page 7 of 33 PROJECT#: 21abb01 PARA M�;� DATE: D. The importance of the area in terms of key multimodal transportation or open space corridors. 2/17/2023 ✓ A significant wash and trail alignment run through the center of the property. Annexing into the Town will ensure that those amenities are protected during the development process. E. Creation of logical Town boundaries and service areas. ✓ As discussed in Item #1 above, this annexation will eliminate a County peninsula and help square off the Town's boundary. It is logical that the Town control development at all four corners of the recently approved roundabout intersection of La Canada and Moore. F. The perceived level of support for annexation by affected property owners/residents. ✓ With only one owner covering such a relatively large parcel, this annexation request comes with t00% support of the affected property owners. G. Consistency with the Town's Your Voice Our Future General Plan goals and policies. ,54•D. - The people of Oro Valley strive for a community with a wide range of services, amenities, shopping and dining opportunities and housing types that meet the needs of current and future residents. ✓ Continued strong demand for high quality, high value housing in Oro Valley indicates a continuing "need" of current and future residents. 3.5.E5. -Support annexations that are economically beneficial to the Town while also considering the impacts to residents and the social, aesthetic and environmental quality of the Town. ✓ The brief economic benefit calculations offered above demonstrate half of the economic benefit equation. The other half relates to the cost of providing services, which is also a positive indicator in this case due to the abundant existing infrastructure available to this infill property. ✓ The relatively low density of this proposed development will ensure compatibility with surrounding residential areas, preserving and enhancing the aesthetic and environmental qualities of the vicinity. 3.6.CC.2. - Provide appropriate park facilities andservices forresidents ofall ages in the community. ✓ The anticipated demographics of this proposed neighborhood suggest that a private picnic area and trailhead would be most likely to be utilized and enjoyed by future residents. Having developed other neighborhoods in the area, including the one directly to the south of this property, Insight Homes has an educated understanding of which amenities would be most appropriate for this neighborhood. 3.6.CC.3. - Link existing and planned neighborhoods with parks and open spaces by incorporating path and trail facilities. ✓ The Oro Valley trails master plan shows a trail alignment running within the wash coursing through the property. During the platting process a trail easement will be granted to help fulfil the trails master plan and provide connectivity to nearby pedestrian facilities. Page 3 of 5 20232550276 Page 8 of 33 PARADIGM LAND DESIGN LLC PROJECT#: 21abb01 DATE: 2/17/2023 4.4.K. - Proactive conservation, protection and restoration of environmentally sensitive lands, natural resource areas andhabitats andlands with high scenic value. ✓ Wilder Landscape Architect and Pecon Enrivonmental recently completed a habitat analysis of the property. Their findings will be provided to Town staff for review and incorporation into the Town's Environmentally Sensitive Lands mapping. A portion of the site has been proposed as ESL Critical Resource Area, and will be conserved accordingly. 4.5.SD.2. - Protect and provide connections between contiguous, environmentally sensitive lands within the Town, including key habitat areas and significant natural resource areas. ✓ Mapped ESL Critical Resource Areas exist to the north and south of this property, defining those stretches of the same wash that bisects this land. CPA mapping will be established onsite, providing continuity of wash protection. 4.5.SD.4. -Protect and conserve healthy native vegetation during the development process. ✓ This development will abide by the Town's native plant preservation requirements. Indeed, the native vegetation onsite adds much to the quality and aesthetics of the neighborhood once fully developed. 4.5.SD.8. -Encourage development project designs that connect wildlife habitat areas, a void disturbing signifi"cant wildlife habitats and minimize the overall impacts on wildlife habitat areas. ✓ Please refer to the above responses to 4.4.K, 4.5.SD.2, and 4.5.SD.4. 4.5-5010. -Strive to protect the public and environment from the threats and risks ofstormwater surges and potential negative impacts of contaminants from runoff. ✓ Development of this neighborhood will involve minimal floodplain encroachment, and will not result in any negative impacts to offsite lands, either upstream or down. 5.4.X. - Effective transitions between differing land uses and intensities in the community. ✓ This proposed neighborhood matches the density and character of Insight Homes' prior neighborhood to the south. Along our western edge we have included lots with a minimum size of one acre to provide a soft transition to the larger lots in Pima County to the west. Additionally, the proposed residential density is below that which is designated by the General Plan. The existing subdivisions to the east and north are significantly more dense. Thus, this project will be entirely compatible with surrounding uses. Page 4 of 5 20232550276 Page 9 of 33 PROJECT#: 21abb01 low DATE: 2/17/2023 5.51 U.6. - Maintain the small-town, neighborly character andimprove the design andsafetyofthe built environment. ✓ By developing at similar or lower residential density to surrounding areas, this neighborhood will help maintain the small-town, neighborly character of this part of Oro Valley. 5.7DG.z. - Require new development to pay its share toward the cost of additional public facility and service needs generated by new development while balancing public and private interests in cost allocation. ✓ The developer will fund their fair share of any new infrastructure is required to offset the impacts of this development. Based on the prioritization criteria listed above, the Town's Annexation Strategy includes the subject property within Priority Area 4. As the Annexation Strategy states, "annexing land that is primarily undeveloped enables the Town to properly plan for future development". This property is an ideal candidate for annexation into Oro Valley, and I look forward to working with your staff throughout this process. Please do not hesitate to contact me with any questions. Sincerely, Paul Oland I, The Estate of Hopson D D H Tremont, the owner of the property described herein, authorize the applicant designated above to file this annexation application and to act as the point of contact for matters relating to this annexation on my behalf. (see attached) Property Owner 5igna ture Page 5 of 5 DigiSign Verified: DFABID62-8ED4-4176-91'CO-6E58OC397B64 20232550276 Page 10 of 33 SIGNATURE PAGE - Lea J Have& _ 02-23-2023 Greg S. Hewett As Personal Representative of the Dewanne Daniela Hopson Estate uigibign vennea - useesuub6-euc5-4sri-yeyr-1cyzu56acia5 20232550276 Page 11 of 33 TOWN OF ORO VALLEY, ARIZONA ANNEXATION PETITION LA CANADA AND MOORE TO THE HONORABLE MAYOR AND COUNCIL OF THE TOWN OF ORO VALLEY, ARIZONA: We, the undersigned, the owners of one-half or more in value of the Real Property and more than one-half of the persons owning the Real Property that would be subject to taxation as assessed by the Pima County Accessor in the State of Arizona. The subject property being proposed for annexation which is hereafter described, as a territory being contiguous to the corporate limits of the Town of Oro Valley, Arizona with the exterior boundaries of the territory proposed to be annexed shown on the map attached hereto, marked Exhibit "B" and made a part hereof. WE hereby request the Town of Oro Valley annex the following described territory, pursuant to and in compliance with the requirements of ARS 9-471, and amendments thereto which shall be fully observed. The description of the territory proposed to be annexed, not already within the present limits of the Town of Oro Valley, Arizona and located in Pima County, Arizona, is as follows: MAP & LEGAL DESCRIPTION — See attached Exhibits A & B Of territory to be annexed to the Town of Oro Valley Also Known as La Canada and Moore PROPERTY ADDRESS SIGNATURE OF MAILING OR PARCEL # OR DATE PROPERTY OWNER ADDRESS PHONE # LEGAL DESCRIPTION August 9, 2023 See Legal above Telephone number and address is included on attached signature page uigibign vennea - u seuuubi-euc�)-4,sTI-aeyT-icyzu5jactao 20232550276 Page 12 of 33 Greg"S. Hewett Personal Representative of the Estate of D.D. H. Tremont Hopson Also known as Greg S. Hewett Personal Representative of the Dewanne Daniela Hopson Estate 6110 E. San Marino 213-949-3456 20232550276 Page 13 of 33 giz:)ign vennea - u seuuue.s-euc5-4,jit-year-ica)zt5 ,sacta5 ,L9 £bZt 3 „FZ,DT.OD S Nx L z I 3 IV — N O U 0 O O N w W D h, �y } �4 N� r�911.0C.00 tr •:c``'.�'� w: -ro Ci iSY.'^, ,�.lS*' 44,!i'7 ikacey _x i�i1'�. f�'.Sl own of of Oro Valley L V V V i I V V V N Q Red Ecgle Dr a O Ui <_ a O v 77 O In O 00 _Z -U� O 3 0 O O O 4� C-1 O CP pd o Z D D s o O q g £ c ag Oo m A,' d ° '(D m c o y u c <D m o a ° z ° o VI 0 tin L < o j a� m n 0 mtn A s ZNm j nOT rn n C SON �rA OAK 20 /n� \/ jA> C%�p aQ N cno> o> K~n C) ozn ��nz 0 < ric A A 0 D CI' - m On Point Surveying,PLLC ANNEX MAP A Portion of the Northwest Quarter of the Northwest s c c (520)490-2467 (520)2791864 Querter of Section 35, Township1 1 SouthRange 13 onpointsurveygroup@gmail_com , n g Ecst, Cila and Salt River Veridan, Pima County, Arizona uigi-)ign vermea - ujebb ubj-euc5-4,Jri-yeyr-icazu5jacta5 20232550276 Page 14 of 33 On Point Surveying, PLLC onuointsurveyarou amail com (520)490-2467 ANNEX AREA DESCRIPTION A portion of the Northwest Quarter of the Northwest Quarter of Section 35, Township 1 I South, Range 13 East, Gila and Salt River Meridian, Pima County, Arizona more particularly described as follows: COMMENCING at the Northwest Corner of said Section 35 calculated from Pima County references, from which a 2 inch brass capped survey monument stamped RLS 19862 in the intersection of Moore Road and La Canada Drive bears North 89°22'36" East, a distance of 1318.67 feet; Thence South 00°30'2$" East, upon thewestline of said Northwest Quarter, a distance of 75.00 feet to a 5/8 inch rebar tagged LS 4680 being THE POINT OF BEGINNING; Thence continuing South 00030'28" East, upon said west line. a distance of 1243.67 feet to a''/2 inch rebar tagged 35543 being the northwest corner of La Canada Ridge as recorded in Book 64 of Maps and Plats at Page 12; Thence North 89°22'57" East, upon the north line of said La Canada Ridge, a distance of 1243.78 feet to '/2 inch rebar tagged PLS 60468 being a point on the west right of way line of La Canada Drive; Thence North 00030'46" West, upon said right of way line, a distance of 1243.74 feet to a point on the south right of way line of Moore Road; Thence South 89022'46 West, upon said south right of way line, a distance of 1243.67 feet to THE POINT OF BEGINNING. Described annexation area contains 1546825 square feet or 35.51 acres, more or less. ED LAND S�k ��,�� `���FICATE,f✓ LFO v p 52659 TAYLOR J WEP a Page 1 of 1 20232550276 Page 15 of 33 APPLIED ECONOMICS FISCAL IMPACTS OF THE LA CANADA AND MOORE PROPERTY ANNEXATION ON THE TOWN OF ORO VALLEY JULY 2023 PREPARED BY: APPLIED ECONOMICS 11209 N. TATUM BLVD, SUITE 225 PHOENIX, AZ 85028 Economic & Fiscal Impact Demographic Analysis Economic Development 20232550276 Page 16 of 33 Table of Contents EXECUTIVESUMMARY............................................................................................................ 1 1.0 INTRODUCTION.............................................................................................................. 3 1.1 General Approach..................................................................................................... 3 1.2 Report Organization.................................................................................................. 3 2.0 METHODOLOGY............................................................................................................... 4 2.1 Development Characteristics.................................................................................... 4 2.2 Population and Housing Units................................................................................... 4 2.3 Household Spending and Retail Sales....................................................................... 4 2.4 Fiscal Assumptions.................................................................................................... 5 3.0 FISCAL IMPACT RESULTS................................................................................................ 10 3.1 Annual Operating Impacts......................................................................................... 10 3.2 One -Time Impacts..................................................................................................... 13 3.3 Summary................................................................................................................... 14 APPENDIX A — Revenue and Expenditure Rates for New Development ................................. 15 20232550276 Page 17 of 33 Executive Summary This analysis quantifies the potential socioeconomic and fiscal impacts of the annexation and development of the La Canada and Moore property on the Town of Oro Valley's operations and maintenance budget. The property includes about 36 gross acres at the southwest corner of Moore Road and La Canada Drive (Map 1). Under translational zoning, the site could support ten new single family homes. This analysis presents the estimated annual net impacts at build out. MAP 1 SITE LOCATION Applied Economics developed a customized fiscal impact model for the Town of Oro Valley that has been used for previous annexation studies. The model has been updated with the newest budget data for this analysis. The results show the estimated annual operations and maintenance impacts at build out, including the marginal increase in taxable sales from new residents that could be captured in Oro Valley. 1 20232550276 Page 18 of 33 The fiscal results show a marginally positive annual net impact in the General Fund and Highway Fund with revenues exceeding expenditures by about 6% per year. Annual revenues are estimated at about $14,500 per year, and annual expenditures are estimated at about $13,700. There could also be an estimated $246,000 in one-time revenues related to new construction, including construction sales taxes, planning and permitting fees and development impact fees. Since the annexation area includes only ten new single family homes, the net fiscal impact is positive, but very small compared to the town's overall budget. Pi 20232550276 Page 19 of 33 1.0 INTRODUCTION This analysis demonstrates the potential fiscal impacts of annexation for the La Canada and Moore property. The site includes about 36 gross acres that could support ten new single family housing units under translational zoning. This analysis shows the annual net impacts at build out once development is complete. 1.1 General Approach The impact assessment reflects revenues and expenditures in the General Fund and Highway Fund that would be affected by future development of the La Canada and Moore property. It does not include capital costs for new infrastructure, but on -going maintenance costs are included. However, all residential streets within the development would be private, so there would be no new street maintenance costs to the town. The approach begins with estimating the socioeconomic impacts of future development (measured in acres, housing units and population), and then estimates the operating revenues and expenditures likely to be associated with that development. Revenue and expenditure line items that could be impacted by new development are identified using current and historical town budgets. A socioeconomic factor is associated with each line item in the General Fund and Highway Fund to predict a corresponding impact for the new development. Projected annual impacts at build out exclude construction -related revenues and expenditures that are captured in the one-time impacts. 1.2 Report Organization The balance of this report is divided into two sections. Section 2.0 details the methodology, development characteristics, socioeconomic assumptions, household spending and sales tax projections and fiscal assumptions. Section 3.0 describes the results of the fiscal impact analysis. The information and observations contained in this report are based on our present knowledge of the components of development, and of the current physical, socioeconomic and fiscal conditions of the affected areas. Projections made in this report are based on hypothetical assumptions and current public finance policies. However, even if the assumptions outlined in this report were to occur, there will usually be differences between the projections and the actual results because events and circumstances frequently do not occur as expected. This analysis is based on the best available information and is intended to aid the Town of Oro Valley in making decisions relative to this annexation. All dollar figures should be interpreted as order of magnitude estimates only. 3 20232550276 Page 20 of 33 2.0 METHODOLOGY 2.1 Development Characteristics The La Canada and Moore property could support 10 new single family units, based on projections provided by the Planning Division (Figure 1). The average unit is expected to be about 3,200 square feet. The analysis assumes 2.3 persons per household based on information from the American Community Survey for Oro Valley. Taxable utilities are estimated at $2,074 per unit per year. FIGURE 1 DEVELOPMENT ASSUMPTIONS Single Family 10 2.3 $2,074 0.0 Sources: Town of Oro Valley Planning Division (units, street miles); C2ER Cost of Living Index, 2022 Annual Average (utility cost); American Community Survey 2021 data (occupancy rate and household size). UNITS •: •.. • '.i Information on housing units, combined with occupancy rates and persons per household, is used to estimate future population. At build -out, it is anticipated that the 10 new houses could support a population of 23 new residents (Figure 2). Socioeconomic impacts also include projected household spending and residential utility costs, both of which generate sales tax revenues. FIGURE 2 ANNUAL SOCIOECONOMIC IMPACTS Housing Units 10 Population 23 Annual Taxable Sales (thousands of dollars) Household Spending in Oro Valley $137.17 Residential Utilities $20.74 Sources: Applied Economics, 2023. 2.3 Household Spending and Retail Sales It is likely that the new households in the La Canada and Moore property will slightly increase taxable sales at local retail and restaurants. The first step in estimating the potential increase in retail sales is to estimate the increase in household spending based on household incomes. 4 20232550276 Page 21 of 33 Applied Economics estimates that household incomes in this development would be about $260,000 per year based on the expected value of the homes at $1.1 million. The next step is to translate household income into household spending. The Bureau of Labor Statistics, Consumer Expenditure Survey provides annual data on household spending by pre- tax income level. The spending categories include the full range of typical consumer expenditures. Household with incomes in the over $200,000 range typically spend about 51% of their pre-tax income on goods and services, according to the Consumer Expenditure Survey. The detailed types of expenditures in the Consumer Expenditure Survey can be grouped into local retail and services such as groceries and other household items that are typically purchased within a three -to -five -mile radius of the consumer's residence, and regional retail and services such as furniture, appliances, vehicles and entertainment where consumers may be willing to drive a greater distance to compare prices or to access specialized providers. The Consumer Expenditure Survey also includes non -retail expenditures for items such as rent, utilities and insurance where the location of the provider may not be relevant. Figure 3 shows estimated annual household spending for the 10 new households in the La Canada and Moore property. At build out, new annual household spending could total $2.6 million, including $0.7 million in local and regional retail and services. It is important to keep in mind that not all new spending will be captured in Oro Valley. 20232550276 Page 22 of 33 FIGURE 3 ANNUAL HOUSEHOLD SPENDING BY NEW RESIDENTS (Thousands of Dollars) Groceries $76,182 Restaurants & Bars $70,928 Personal care products and svcs $13,135 Housekeeping supplies $13,135 Small appliances, misc housewares $2,627 Household textiles $1,313 Drugs $6,567 Medical supplies $2,627 Gasoline and motor oil $26,270 Vehicle maintenance and repairs $13,135 Other household expenses $35,464 Tobacco products $1,313 Reading $2,627 Pet Supplies $15,762 Home maintenance services $44,659 Furniture and floor coverings $17,075 Major appliances $7,881 Miscellaneous household equip $22,329 Apparel and shoes $35,464 Cars and trucks, new $56,480 Cars and trucks, used $32,837 Other vehicles $1,313 Medical services $19,702 Entertainment fees and admissions $23,643 Audio and visual equipment $14,448 Toys and hobbies $2,627 Other entertainment $31,524 Education $47,286 Public and other transportation $11,821 Housing rent or mortgage $181,261 Other lodging $35,464 Utilities $52,540 Vehicle finance charges $3,940 Vehicle insurance $18,389 Vehicle rental, leases, licenses $17,075 Health insurance $49,913 Cash contributions $76,182 Personal insurance and pensions $240,368 Savings, income taxes and other $1,231,933 Source: Census 2021 Consumer Expenditure Survey, 2023; Applied Economics, 2023. 1.1 20232550276 Page 23 of 33 To estimate the potential increase in taxable retail sales in Oro Valley, it is necessary to identify types of purchases that could potentially be made locally, and the share of those purchases that are likely to be captured in Oro Valley. Taxable categories from the Consumer Expenditure Survey that could potentially be purchased in the town include the following: • Restaurants and bars • Personal care products • Housekeeping supplies • Small appliances and miscellaneous housewares • Household textiles • Medical supplies • Reading materials • Pet supplies • Furniture and floor coverings • Major appliances • Apparel and shoes • Entertainment fees and admissions • Audio and visual equipment • Toys and hobbies The Economic Census for retail industries includes estimates of total retail sales and e- commerce sales by retail category. As of 2021, which is the most current data available, e- commerce accounts for 3% to 6% of sales in most retail categories. Estimates of taxable retail sales captured at stores in Oro Valley are adjusted for e-commerce sales. Next, it is necessary to estimate the share of purchases by category that could be captured in Oro Valley based on the types of stores currently in the town and the surrounding market area, and Oro Valley's share of actual sales tax collections. Using data on monthly sales tax collections by industry in FY22 from the Arizona Department of Revenue, Oro Valley accounts for 6.3% of taxable restaurant sales and 4.6% of taxable retail sales in the Oro Valley/Marana/Tucson region. Oro Valley makes up 7.4% of the population in the three -city area, indicating that there is retail leakage occurring with Oro Valley capturing only about 85% of its per capita share of restaurant sales and 62% of its per capita share of retail sales. These capture rates are applied to household spending for the taxable categories listed above to estimate the potential increase in new household spending in Oro Valley from development in the La Canada and Moore property. Figure 4 shows estimated annual taxable sales in Oro Valley. This information provides a rough estimate of the increase in retail sales taxes in Oro Valley from new residential development in the La Canada and Moore property. These are high level estimates that could vary over time depending on the types of stores in Oro Valley compared to stores available in the surrounding market area and consumer preferences. 20232550276 Page 24 of 33 FIGURE 4 ESTIMATED ANNUAL TAXABLE SPENDING AND SALES TAX COLLECTIONS IN ORO VALLEY BY NEW RESIDENTS (Thousands of Dollars) Restaurants & Bars $60.17 $1.50 Personal care products and svcs $7.72 $0.19 Housekeeping supplies $7.92 $0.20 Small appliances, misc housewares $1.58 $0.04 Household textiles $0.79 $0.02 Medical supplies $1.58 $0.04 Pet Supplies $4.60 $0.11 Furniture and floor coverings $5.14 $0.13 Major appliances $1.91 $0.05 Miscellaneous household equip $13.47 $0.34 Apparel and shoes $20.49 $0.51 Entertainment fees and admissions $5.91 $0.15 Audio and visual equipment $4.36 $0.11 Toys and hobbies $1.53 $0.04 DLc The fiscal model created to assess the impacts of new development is based on current and historical budgets for the town for the past seven fiscal years, with greater emphasis on the past two to three years of budget data. Revenue and expenditure line items in the General Fund and Highway Fund are the focus since these funds would be most impacted by the new development. In general, the analysis focuses on operations and maintenance. The model does not include any construction costs for new infrastructure. Various drivers are identified for each of the revenue and expenditure items in the model to develop rates that are applied to socioeconomic projections for the projected new development. In most cases, the model uses an average of the rate for the previous two or three years to better reflect line items that fluctuate from year to year. Some revenue and expenditure items increase at rates that are less consistent over time, or reflect permanent increases or decreases due to operational or other changes. In these cases, the model uses only the most recent fiscal year to accurately reflect current conditions. The rates and basis for all revenue and expenditure items in the fiscal impacts of new development are shown in Appendix A. Many of the revenue and expenditure drivers include population, or "service population", which includes both population and employment. This is because many of the services provided by the town, as well as the various types of revenues that local governments depend on, are proportional to the number of people living and working there. In some cases, N 20232550276 Page 25 of 33 population is weighted more heavily than employment since residents use some municipal services proportionally more than businesses. Major line items that are not driven by population or employment include sales tax, which is a function of taxable resident spending in Oro Valley and residential utilities. On the expenditure side, transportation engineering is based on the number of lane miles added and is a one-time expenditure, while street maintenance is also a function of lane miles but is an on -going expenditure (although no new public streets are included in this development). Police services are a function of calls for service by type of land use and implied staffing at that call level based on current staffing and call levels in Oro Valley and a total annual cost of approximately $192,486 per officer in current dollars.' The projected number of additional calls varies depending on the type of development. Golder Ranch Fire District would provide fire service, which is not part of the fiscal model. 'The cost per officer represents the 2022-23 budgeted general fund expenditures for police and support services (excluding one-time costs) divided by the existing number of sworn officers. Vehicle maintenance for police vehicles is included in fleet services, which is a separate line item in the budget. 0 20232550276 Page 26 of 33 3.0 FISCAL IMPACT RESULTS The fiscal impacts assume the level of services provided by the town and the structure of municipal revenues would remain similar to current conditions with both revenues and expenditures increasing to support additional residential development. The 10 new homes that are anticipated in the La Canada and Moore property could create a small positive net impact in the General Fund and Highway Fund with revenues exceeding expenditures by an estimated 6 percent per year at build out, based on the assumptions used in this analysis (Figure 5). ■ These new housing units could result in an estimated 23 new residents. General and dedicated sales taxes from resident spending combined with utility sales taxes, are estimated at about $4,000 per year. Sales taxes are one of the largest sources of operating revenues for the town. No construction sales tax is included in the build out impacts. Section 3.2 provides more detail about one-time revenues including construction sales taxes and other construction -related fees. ■ Other major revenues include state shared income tax, state sales tax, vehicle license tax and highway user revenues that increase proportional to population and are estimated at about $9,000 per year, based on current per capita distribution levels and projected population in the La Canada and Moore property. State shared revenues are important to the town and make up about one third of current General Fund revenues. ■ The largest on -going expenditures for the town would be police services. Annual police costs are based on existing expenditures plus the projected calls generated by new residential development, the average number of calls per officer and the total police services cost per officer in Oro Valley. Annual police costs for the new households in the La Canada and Moore property are estimated at about $11,000 per year in 2023 dollars. ■ Other expenditure impacts include information technology and general administration expenditures (as well as other Management & Policy expenditures) at an estimated $1,000 per year. In general, Management and Policy and Administrative Services expenditures increase marginally as population increases, based on the assumptions used in this model. ■ There could also be modest impacts of about $340 per year in parks and recreation, and $1,400 per year in public works (mainly for facilities and fleet maintenance). This fiscal model is often used for larger projects and is intended to capture the marginal increase in overall expenditures that are required to serve new development. ■ There would also be non -recurring expenditures in community and economic development in years when there is construction that are not captured in the build out impacts. These expenditures are fully offset by construction sales taxes and permit fee revenues. Since this is a very small development, the impacts to community and economic development during construction would be minimal. 10 20232550276 Page 27 of 33 FIGURE 5 ANNUAL NET FISCAL IMPACTS - GENERAL FUND AND HIGHWAY FUND (Thousands of Dollars) REVENUES $14.51 Taxes and Fees Retail Sales Tax (2%) $2.74 Construction Sales Tax (4%) $0.00 Utility Sales Tax (4%) $0.88 Dedicated Sales Tax (0.5%)* $0.69 Bed Tax (6%) $0.00 Cable Franchise Fees $0.24 State Shared Revenues State Income Tax $3.19 State Sales Tax $2.85 Vehicle License Tax $1.17 Highway Users Revenue $1.96 Intergovernmental Federal/State Operating Grants $0.00 Other Intergovernmental $0.54 Licenses and Permits Building Permits $0.00 Sign Permits $0.00 Special Inspection Fees $0.00 Grading Permits $0.00 Fire Permit Fees $0.00 Business License $0.00 Charges for Services Zoning and Subdivision Fees $0.00 Engineering Plan Check $0.00 Copies and Publications $0.00 Administrative Fees $0.00 Police Fees $0.00 Rental Income $0.00 Recreation Fees $0.20 Court Fees $0.02 Fare Box $0.00 Fines and Forfeitures Fines $0.01 Other Revenues Misc. Revenue $0.00 *Dedicated sales tax revenues captured in Community Service Fund. 11 20232550276 Page 28 of 33 FIGURE 5 (continued) ANNUAL NET FISCAL IMPACTS - GENERAL FUND AND HIGHWAY FUND (Thousands of Dollars) EXPENDITURES $13.69 Management & Policy Mayor & Council $0.00 Town Manager $0.00 General Administration $0.12 Town Clerk $0.01 Legal $0.04 Town Court $0.36 Administrative Services Finance $0.01 Human Resources $0.21 Information Technology $0.22 Parks and Recreation Administration $0.03 Park Maintenance $0.00 Aquatics $0.19 Recreation Centers & Culture $0.12 Community & Economic Development Administration $0.00 Planning & Permitting $0.00 Inspection and Compliance $0.05 Economic Development $0.00 Public Safety Police Services $10.97 Public Works Public Works/Streets Admin $0.20 Street Maintenance $0.00 Transportation Engineering $0.00 Facilities & Fleet Maintenance $1.10 Transit Services $0.06 12 20232550276 Page 29 of 33 3.2 One -Time Impacts The impact results in the previous section reflect annual 0&M revenues and expenditures at build out for the La Canada and Moore property. During construction, there would be one-time revenues estimated at $246,000, which could accrue over multiple years (Figure 6). Construction costs that form the basis for construction sales taxes are based on residential construction costs from Gordian, Square Foot Costs, 2023. The construction sales tax of $140,000 estimates assumes materials make up 65% of construction sales tax. FIGURE 6 ONE-TIME POTENTIAL TAXES AND FEES (Thousands of Dollars) Construction Sales Tax (4%) $140.29 Building Permit and Planning Fees $75.53 Development Impact Fees* Transportation $16.60 Police $10.54 Parks $2.83 *Dedicated funds, not part of General Fund. Applying the town's current impact fee rates, the proposed level of new development could generate about $30,000 in non -utility development impact fees, the majority of which would be for transportation. The proposed single family development in the La Canada and Moore property could generate an estimated $76,000 in building permit, planning and engineering fees in the General Fund, based on per unit estimates provided by the town. There would also be costs to the town associated with planning and permitting activities, and infrastructure construction funded by development impact fees, proportional to one-time revenues. 13 20232550276 Page 30 of 33 3.3 Summary The proposed annexation of the La Canada and Moore property would likely result in build out of this parcel within the next five years, given its size and proximity to existing development. The projected fiscal impacts would be small, proportional to the number of new housing units and residents, and a marginal positive annual impact is projected at build out. This result assumes new taxable sales at local retail and restaurants related to demand from new residents. The impacts also reflect the fact that all new streets in the development would be maintained by the homeowners. Because the overall size of the annexation area is small, it could easily be absorbed into existing town operations. 14 20232550276 Page 31 of 33 APPENDIX A REVENUE AND EXPENDITURE RATES FOR NEW DEVELOPMENT 15 20232550276 Page 32 of 33 REVENUES Taxes and Fees Local Sales Tax (2%) and Dedicated Sales taxable utilities, household spending Tax (0.5%) Bed Tax (6%) taxable room sales Cable Franchise Fees State Shared Revenues State Income Tax State Sales Tax Vehicle License Tax Highway User Fees Intergovernmental Federal and State Operating Grants Other Intergovernmental (RTA reimbursement) Licenses and Permits Building Permits Sign Permits Special Inspection Fees Grading Permits Fire Permit Fees Business License Charges for Services Zoning and Subdivision Fees Engineering Plan Check Financial Services Copies and Publications Administrative Fees Police Fees Rental Income Recreation Fees Court Fees Fare Box Fines and Forfeitures Fines Other Revenues Misc. Revenue EXPENDITURES Management & Policy Mayor & Council Town Manager General Administration City Clerk Magistrate Court Legal service population population population population population not impacted population data provided by Town employment na na na employment not impacted na not impacted population service population population (25% of normal rate) not impacted population (50% of normal rate) population (25% of normal rate) not impacted (4% * residential utilities)+(annual household spending * Oro Valley capture rate*2.5% 6% * average daily room rate * occupancy rate number of rooms * 365 $9.72 * (population + employment) $131.03 * population $116.94* population $47.88 * population $80.60 * population $22.32 * population $0.72 * employment included in building permits included in building permits included in building permits $1.74 * employment included in building permits $0.15 * population $5.95 * (population *2 + employment) $0.21 * population $8.30 * population $0.89 * population service population (25% of normal rate) $0.26 * (population *2 + employment) not impacted not impacted not impacted service population (50% of normal rate) service population (10% of normal rate) population growth (25% of normal rate) service population (10% of normal rate) $10.44 * (population*2 + employment) $0.64 * (population*2 + employment) $14.90 * population $0.73 * (population*2 + employment) 16 20232550276 Page 33 of 33 EXPENDITURES Administrative Services Finance local revenues City FTEs @ 0.0004 per (population*2 + Human Resources employment) City FTEs @ 0.0004 per (population*2 + Information Technology employment) Parks and Recreation Administration % of other Parks and Rec expenditures Park Maintenance park acres Aquatics population (20% of normal rate) Recreation Centers and Culture population (50% of normal rate) Community and Economic Development Administration construction value Planning & Permitting Inspection and Compliance construction value Economic Development new jobs created Public Safety 2.9% * local tax and fee revenues $1,192 * City FTE growth $1,274 * City FTE growth 14.5% * other parks and rec expenditures $3,070 * new park acres $3.88 * population $5.06* population 8.6% * other community dev expenditures 81% * building permit fees 41% * building permit fees $18.39 * job growth calls for service by land use, 1 officer per Police Services 300 calls $192,486 * police staff Public Works Public Works/Streets Administration other public works expenditures 18.4% * other public works expenditures Street Maintenance street lane miles for maintenance $3,500 * new street lane miles (on -going) Transportation Engineering not impacted City FTEs @ 0.0004 per (population*2 + Facilities & Fleet Maintenance employment) $6,344 * City FTEs Transit Services population $2.26 * population Note: service population = population + employment 17