Loading...
HomeMy WebLinkAboutPackets - Council Packets (192)Council Meeting Regular Session May 21, 2014 1 2 Announcements Meetings are subject to change; check the Town website for meeting status. May 27 at 3 p.m. Council Chambers Board of Adjustment Study Session June 2 at 5 p.m. Hopi Conference Room Historic Preservation Commission June 4 at 6 p.m. Council Chambers Town Council Regular Session June 3 Planning & Zoning Commission MEETING TENTATIVELY CANCELLED 3 8 a.m. - noon 4 presentation 2 5 “Proudly serving the Oro Valley Community” Ambulance Membership Program Presented by Randy Karrer, Fire Chief Tom Brandhuber, Assistant Chief of Operations 6 GOLDER RANCH FIRE DISTRICT A full service FIRE AND EMERGENCY SERVICES provider 7 WHO ARE WE? We were created in 1977 as a full service (fire and ambulance) fire district Golder Ranch was awarded a Certificate of Necessity (CON 56) in 1977 and was authorized by the Arizona Department of Health Services to provide ambulance transport We are governed by a 5-member, non-partisan board elected by the voters, property owners that live within the Fire District geographic boundaries 8 WHO ARE WE? We service over 220 square miles and over 65,000 residents including those in Oro Valley, Catalina, SaddleBrooke and Southern Pinal County We provide fire and emergency services to over 90% of the Town of Oro Valley Fire Stations 377-376-375-374 4 Paramedic Ambulances Recognized by the Arizona Department of Health Services as a Premier EMS Agency We have an ISO Rating of a 3, which is in the top 5% in the nation, and directly reduces your homeowners insurance rates 9 Golder Ranch Fire District has been providing ambulance transport since 1977 and has historically billed patient’s health insurance only. However, times have changed, there is now an increased patient financial responsibility for ambulance transports. The New Normal 10 The “New Normal” Reasons for Increased Patient Financial Responsibility 1. Statutorily required to do so 2. Dramatic changes in the health care industry 11 Statutorily Required To Do So Evolving regulatory interpretation and changing of State Statutes Arizona Department of Health Services (ADHS) issues a Certificate of Necessity (CON) which allows a provider to transport a patient ADHS sets the rules, regulations, and rates for all ambulance providers Changes in the ADHS rules require conformity to ARS Title 48 and Title 36 Ambulance Revenue and Cost Reports (ARCR) are required to be submitted annually to ADHS by every provider. Those reports are scrutinized for compliance with state statute. 12 Compliance with Arizona Revised Statues ARS 48-805 (16) E "The (fire) district board may assess and levy a secondary property tax pursuant to this article to pay for the costs of fire protection services or emergency medical services… …EXCEPT FOR services regulated pursuant to title 36, chapter 21.1." IE:(AMBULANCE TRANSPORTS) THIS MEANS THAT PROPERTY TAXES CANNOT BE USED TO SUPPORT AN AMBULANCE SYSTEM! 13 Reasons for Increases in Patient Financial Responsibility The Affordable Healthcare Act The Affordable Care Act puts consumers back in charge of their health care. Which leads to more patient financial responsibility. Source - www.hhs.gov/healthCare Medicare/AHCCS Ambulance Fee Schedule reduction We have seen a steady decline since 2004. A 24% reduction was averted by the Senate in March of 2014. Source – www.ama-assn.org American Medical Association 2013 alone saw a dramatic 10% reduction in reimbursement. Source - www.ama-assn.org American Medical Association Insurance Industry High deductable health plans such as Health Savings Account (HSA) 14 Health Insurance Industry is in the Midst of Significant Change The traditional model of an HMO or PPO health plan paying for all of a patient’s medical care cost is almost gone. For example… 15 Health Insurance Industry Has Changed Even with traditional insurance plans the portion of costs that are born by the patient has increased dramatically. This means that residents within the Golder Ranch Fire District could potential see significant out of pocket expense even while covered by insurance. This represents an increase of over 100% in just 8 years! 16 Health Insurance Industry Has Changed A patient with a Health Savings Plan will be billed for the full ambulance transport fee unless they have met their plan deductible. 17 What is Golder Ranch Fire District doing to reduce the financial impact on our District residents within the limits of the law? 18 The Ambulance Service Membership Plan! Ambulance Service Membership Plan was approved through the Arizona Department of Health Services 19 For $75 / year - per household If you are transported from anywhere in the Golder Ranch Fire District by ground ambulance to any hospital with in the Tucson metropolitan area Transport was medically necessary You will not be billed for any unpaid balance. It’s as simple as that! 20 HOW CAN I BECOME A MEMBER? Online at: www.GRMHS.ORG In person at: 3885 E. Golder Ranch Dr. Tucson, AZ 85739 By phone: 825-5902 or 825-9001 21 Questions 22 item 1 23 Proposed change to Natural Area Pusch Ridge Subdivision Town Council May 21, 2014 24 La Reserve Plan (PAD) requirements “Compliance with the development standards of this Plan shall be the sole basis for action by Mayor and Council…” Town of Oro Valley The core message of this presentation is that the Town must review this request in light of standards in a specific plan – also known as Planned Area Development. The La Reserve PAD requirements supercede the conservation and view protection standards in the Town’s zoning code. The applicant has made a request to increase the depth of 13 lots by encroaching into designated Natural Open space in Pusch Ridge Subdivision. The primary requirement in the in Planned Area Development is retention of at least 03.56 acres of open space. There is currently 110.49 acres and the proposal would decrease open space by about a ½ acre. So, there is roughly 110 acres remaining. As a result, the rules provide that the Town must approve this request. 25 Pusch Ridge Subdivision Oracle Road Della Roccia Ct Pusch Wilderness Dr Honeywell The Pusch Ridge Subdivision is located deep within the La Reserve community. It reaches further back into the Catalina Mountains than most, if not all, of La Reserve. Here you can see the 20 total lots in the subdivision. The focus of this application is the 13 lots on the south side of Della Roccia Ct Town of Oro Valley Lot 21 Lot 20 Lot 27 Della Rocia Ct Proposed lot line change The applicant requests entails moving the existing lot line (in black) on lots 20 through 32 to the green line in order to allow for additional building area. The area inbetween the lines is currently designated as Natural Open Space. 27 La Reserve Plan (PAD) requirements “The Town of Oro Valley agrees to give written consent to amend the Natural Area as long as the minimum of 103.56 acres is preserved…and does not increase the average cross slope of La Reserve” Town of Oro Valley The Town’s review is restricted to use of the standards in the La Reserve Planned Area Development. Those standards have been meet, so the proposed encroachment must be approved. To date, we have received three letters of protest from two adjacent property owners. Town Council has already received each. Thank you Mayor. 28 Questions? 29 Proposed lot depth Town of Oro Valley Depth of lots would increase by: 5 feet for 10 lots Up to 45 feet for 3 lots The amount of encroachment varies. 5 feet for 10 lots and up to 45 feet for 3 lots 30 Natural Area: vegetation & slope This slide depicts the site conditions just beyond the 13 lots. You can just make out the existing retaining walls – and the red line roughly represents the proposed new lot lines. This picture also represents the view by adjacent property owners – who are at a lower elevation. To date, we have received letters of concerns, included your packet, from two lot owners with this view. Both expressed concern about impacts to views, steep slopes and native vegetation. It is important to note that the normal zoning process would entail entirely different standards to conserve views, steep slopes and vegetation. View impact to adjacent lots Town of Oro Valley Owners of several lots maintain views directly in-line with the Pusch View Subdivision retaining wall. 32 item 2 33 Town of Oro Valley FY 2014/15 Final Budget May 21, 2014 34 Town of Oro Valley FY 2014/15 Budget Timeline JANUARY One-on-one meetings with Council to outline budget priorities JANUARY Informational budget sessions with community and employees FEBRUARY Prepare revenue estimates Department budget requests due to Finance MARCH Finance and Town Manager budget review with depts APRIL 9 & 23 Budget Study Sessions MAY 7 Public Hearing- Adoption of Tentative Budget MAY 21 Public Hearing- Adoption of Final Budget APRIL 2 Town Manager Recommended Budget delivered to Council DECEMBER CIP process begins 35 FY 2014/15 Final Budget Tentative Budget adopted May 7, 2014 Maximum spending limit set at $107,084,938 Final budget, CIP approval and 2nd public hearing Council has authority to amend budget throughout the fiscal year 36 Budget vs. Actual Comparison 37 Capital Improvement Program (CIP) FY 14/15 CIP Budget = $13,379,000 Includes funding for: Streets/Roads $ 5,710,000 Water System $ 4,044,000 Parks/Museum Facilities $ 1,513,000 Other Public Facilities $ 1,050,000 Technology $ 737,000 Public Safety $ 200,000 Stormwater System $ 125,000 38 Questions? 39 item 2b 40 FY 2014/15 Tentative Budget Adoption May 7, 2014 41 Town of Oro Valley FY 2014/15 Budget Timeline JANUARY One-on-one meetings with Council to outline budget priorities JANUARY Informational budget sessions with community and employees FEBRUARY Prepare revenue estimates Department budget requests due to Finance MARCH Finance and Town Manager budget review with depts APRIL 9 & 23 Budget Study Sessions MAY 7 Public Hearing- Adoption of Tentative Budget MAY 21 Public Hearing- Adoption of Final Budget APRIL 2 Town Manager Recommended Budget delivered to Council DECEMBER CIP process begins 42 Town of Oro Valley Budget Priority Guidance Town Strategic Plan Voter-Approved General Plan Budget 43 2 important plans are used to guide budget development Strategic Plan – Council adopted plan, updated this year 2013, guides short-term decision making in 4 focus areas: Fiscal responsib, Communication, Econom Develop, Community Services General Plan – voter-ratified plan provides long-term (up to 20 year) direction regarding growth, development and redevelopment of the community Currently being updated for voter approval in 2016 Town of Oro Valley FY 2014/15 Budget Core Themes Investment in Town employees Investment in Town assets and technology Delivery of community services New initiatives 44 Development Impact on Town Services 45 FY 2014/15 Budget by Fund - $107.1M The Tentative Budget totals $107.1M and this slide provides a snapshot of the budget allocations by fund. The town has 22 separate funds included in its budget and each fund contains its own balanced set of revenue and expenditure accounts. This slide shows the total budget for each fund including contingency reserve amounts. What is excluded from these amounts are the transfers between the funds that net each other out. The General Fund, our main operating fund, is the largest fund in the budget totaling $39.7M with contingency reserves. The Water Utility Fund is the second largest fund at $29.5M. The next largest slice is the total of all capital project funds in the budget totaling $20.9M. These include all of our development impact fee funds for utility and non-utility purposes, as well as the new General Government CIP Fund. It’s important to note that these capital project funds are specifically earmarked to accumulate funds used to build new infrastructure, purchasing capital equipment and pay debt service on some of the water utility infrastructure. 46 FY 2014/15 Revenue Sources - $107.1M This slide displays the revenues and beginning fund balances of all funds included in the budget of $107.1M. Our fund balances make up just over $40M or 37% of the budget, while sales taxes comprise 16% at almost $17M, state shared revenues at 12% or $13.1M and water sales at 11% or $12.1M. 47 FY 2014/15 Expenditure Categories $107.1M This final chart on the Tentative Budget depicts the Town’s expenditure categories with the Personnel category making up just over a quarter of the budget at $27.4M. Operations & maintenance budgets holding the line at just over $19M The Capital category of the budget at $15M or 14%. This category also includes costs for our vehicle and computer replacement programs that are not captured in the adopted Capital Improvement Plan. Annual debt service costs at $6.3M And our contingency reserves at $39M. 48 Revenue Categories FY 2013/14 to FY 2014/15 $93.9M FY 2013/14 Adopted Revenues Sales Taxes Licenses & Permits State Shared Revenues Charges for Services $1.6M $320K $900K $430K $107.1M FY 2014/15 Recommended Revenues State & Federal Grants $350K Water Utility Revenues $1.2M Fund Balances $8.4M The annual budget amount is established each year based upon our projected revenues and what our beginning fund balances will be. This chart shows the various categories of revenues and related increases projected over the current year adopted amount of $93.9M to arrive at the Tentative Budget amount of $107.1M. Licenses & Permits – residential and commercial building permit fees State & Federal Grants – Transit RTA reimb, roadway project funds from PAG Charges for Services – zoning & subdivision fees, Transit farebox revenues, Aquatic Center revenues, Stormwater utility fees due to new growth State shared revenues – sales and income tax revenues, vehicle license taxes and HURF Gas tax Water Utility revenues – primarily WIFA loan proceeds Sales taxes – construction, retail and bed taxes Fund balances – accumulation of funds primarily in our impact fee funds and other capital project funds for current and future capital projects 49 Personnel Budget Comparison * Excludes FY 12/13 COLA and FY 13/14 merit/step increases This next slide is a baseline comparison of our personnel budgets and authorized full-time equivalent positions or FTEs, full-time and parttime, for FY 14/15 compared to our peak level back in FY 08/09. The FY 14/15 budget has 47 fewer FTEs than we had back in FY 08/09. These consist of both FT and PT positions. The total personnel budget for 14/15 is $1.7M less than it was back in 08/09 without factoring in the impact of the COLA in FY 12/13 and the merit/step increases given in FY 13/14. If we look at just FT benefitted positions, the FY 14/15 budget has 42 fewer FT positions than we had in FY 08/09, with the budgeted personnel cost for just those positions $1.4M less than in FY 08/09. Through systematic evaluation of staffing levels over the past several years, the Town has reduced its personnel budget. 50 X X X 51 Fund Balance Reserves Even throughout the recession and into the recovery period that we are in now, the Town has maintained strong fund balances. These fund balances provide the Town the flexibility to pay cash for capital projects rather than go into debt, provide resources in emergencies or unexpected events, and they are a key factor in maintaining and improving our bond ratings. This slide shows a three year trend picture of our fund balances in the General Fund, Hwy Fund, Enterprise funds (water and stormwater), capital project funds (primarily consisting of impact fee funds, the Naranja Park fund and the new General Govt CIP fund) and misc other funds. The blue bar shows the beginning fund balances at July 1, 2013 (beginning of the current FY), the orange bar shows estimated fund balances at July 1, 2014, and the gray bar shows the estimated fund balances at July 1, 2015. You can see that as Council has authorized the use of General Fund reserves over the past year for the TEP undergrounding project and the Naranja Park project, the amount has dropped from about $13M to about $10M, and those funds have been transferred into specific capital project funds to complete those projects, so the balances have increased accordingly in the capital project funds. The Highway fund balance has grown over the past year, but will see a planned decrease in FY 2014/15. The enterprise funds, and primarily the Water Utility, maintain strong reserves used to pay cash for current and future capital projects. 52 General Fund Authorized Use of Reserves Slide illustrates use of General Fund contingency reserves over the past 3 years as we’ve made one-time capital investments in our community and the Council has authorized the use of contingency reserves for these purposes. Town faced an almost $3M budget deficit going into the 2011/12 fiscal year. That was the 3 year in a row that the Town faced declining revenues and the need to lower expenditures to meet those revenues. The beginning reserve balance going into FY 11/12 was $11M and through a series of measures taken to increase revenues and decrease expenditures, most significantly through vacancy savings, Town ended that year with almost a $400,000 surplus. Through continued vacancy savings realized into FY 12/13, totaling almost $1.8M plus some uptick in our revenues with the economic recovery, the General Fund ended that year with a surplus of $2.6M. This year, FY 13/14, the year-end estimated surplus, excluding use of reserves, is almost $500,000, for a 3-year total of over $3.5 million in General Fund surplus. Over the past 2 years, the Council has invested over $4.4M in Town infrastructure and facility projects, while only reducing the overall reserve balance by just under $900,000 from where it was 3 years ago. 53 General Fund Historical Fund Balance Reserves Chart shows ending fund balances in the General Fund in each of these fiscal years going back to 10/11. You can see during the years we were still feeling the effects of the recession, the Town grew its fund balance through right-sizing the organization, transferring the Library operations to Pima County and paying off debt. These measures have allowed the increase service levels, invest in community facilities such as the Aquatic Center and Naranja Park, and return to fairly compensating our employees. As you will recall from 5-year forecast chart, the fund balance is expected to return back above $11M over that timeframe. 54 SOURCES $32,275,999 FY 2014/15 General Fund Overview USES $32,266,765 This slide is quick snapshot of the General Fund budget totaling just over $32M, excluding the fund balance reserve amounts. You can see the Tentative budget includes a slight surplus of $9,000 revenues over expenditures. Just a few highlights – on the revenue sources chart – 80% of General Fund revenues come from local sales taxes and state shared revenues. Just a reminder – town does not collect property taxes to fund operations On the expenditures chart – Personnel costs comprise 67% of the budget as is fairly common in local government budgets. 55 FY 2014/15 Capital Improvement Program (CIP) Total CIP Projects for FY 2014/15 = $13.4M The Capital Improvement Program for FY 14/15 by fund is displayed on this side and totals $13.4M. This program captures all capital projects in the budget that cost $50,000 or more and have an expected useful life of 5 years or more. Highlight a few items on this slide – Gen Govt CIP fund – new in budget – includes funding for such projects as new restroom at Naranja park, planning/design costs for a new Police evidence/substatio n facility, protective shade cover over the steam pump at SPR, additional parking capacity at Aquatic Center, and funds to complete the TEP undergrounding project. Roadway Impact Fee Fund – main project is widening of Naranja Dr. from La Cholla to Shannon for almost $3M Water Utility Fund – main project is the meter replacement project utilizing WIFA loan proceeds budgeted for $2.2M Full detailed listing of all projects in included in the budget document. 56 Town of Oro Valley Final Notes and Next Steps Tentative Budget adoption sets the maximum spending ceiling Final Budget cannot exceed Tentative Budget maximum amount Council has authority to amend budget throughout the fiscal year Publish Tentative Budget for 2 consecutive weeks Final Budget approval and public hearing set for May 21st regular session 57 Finally, tonight’s adoption of the Tentative Budget sets the maximum spending cap of $107.1M. When we come back on May 21st for adoption of the Final Budget, any potential changes to the budget cannot cause this cap to be exceeded. It’s important to note that the Council has the authority to amend the budget throughout the fiscal year. A recent example of this was the Council-approved authorization of funds to construct the Naranja Park improvements. After the spending cap is set tonight, we will publish the budget for 2 consecutive weeks and plan to hold our second public hearing for the final adoption of the budget on May 21st. Thank you. Questions? Town of Oro Valley Questions? 58 59