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HomeMy WebLinkAboutPackets - Council Packets (274)         AGENDA  ORO VALLEY TOWN COUNCIL REGULAR SESSION February 15, 2017 ORO VALLEY COUNCIL CHAMBERS 11000 N. LA CAÑADA DRIVE         REGULAR SESSION AT OR AFTER 4:30 PM   CALL TO ORDER   ROLL CALL   EXECUTIVE SESSION - Pursuant to ARS 38-431.03(A)(1) Personnel matters - Daniel G. Sharp's annual performance review and pursuant to ARS 38-431.03(A)(7) and ARS 38-431.03(A)(3) to discuss and receive legal advice from its attorneys regarding the acquisition of real property and pursuant to ARS 38-431.03(A)(1) Personnel matters discussion and review of information regarding Town Manager candidates   REGULAR SESSION AT OR AFTER 6:00 PM   CALL TO ORDER   ROLL CALL   PLEDGE OF ALLEGIANCE   UPCOMING MEETING ANNOUNCEMENTS   COUNCIL REPORTS      •   Spotlight on Youth   DEPARTMENT REPORTS   The Mayor and Council may consider and/or take action on the items listed below: ORDER OF BUSINESS: MAYOR WILL REVIEW THE ORDER OF THE MEETING   INFORMATIONAL ITEMS   1. Mayor Hiremath - 2017 US Conference of Mayors Winter Meeting Trip Report   CALL TO AUDIENCE – At this time, any member of the public is allowed to address the Mayor and Town Council CALL TO AUDIENCE – At this time, any member of the public is allowed to address the Mayor and Town Council on any issue not listed on today’s agenda. Pursuant to the Arizona Open Meeting Law, individual Council 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 Mayor and Council 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.   PRESENTATIONS   1. Presentation - Youth Art Program by the Arts and Culture Ambassadors   CONSENT AGENDA (Consideration and/or possible action)   A. Minutes - January 18, 2017   B. Visit Tucson Quarterly Report: October 1, 2016 - December 31, 2016   C. Greater Oro Valley Chamber of Commerce Quarterly Report: October 1, 2016 - December 31, 2016   D. Cancellation of the March 1, 2017 regular Town Council meeting   E. Appointment to the Tucson-Pima County Bicycle Advisory Committee   REGULAR AGENDA   1. FISCAL YEAR 2016/17 MID-YEAR FINANCIAL UPDATE   2.AMENDING CHAPTER 28 SECTIONS 28.4 AND 28.5 AND OTHER SECTIONS OF THE ORO VALLEY ZONING CODE REGARDING TAGLINES ON WALL SIGNS   a. RESOLUTION NO. (R)17-05, DECLARING THE PROPOSED AMENDMENTS TO CHAPTER 28, SECTIONS 28.4 AND 28.5 AND OTHER SECTIONS OF THE ORO VALLEY ZONING CODE REGARDING TAGLINES ON WALL SIGNS PROVIDED AS EXHIBIT "A" WITHIN THE ATTACHED RESOLUTION AND FILED WITH THE TOWN CLERK, A PUBLIC RECORD   b. PUBLIC HEARING: ORDINANCE NO. (O)17-02, AMENDING CHAPTER 28, SECTIONS 28.4 AND 28.5 AND OTHER SECTIONS OF THE ZONING CODE REGARDING TAGLINES FOR WALL SIGNS   3. PUBLIC HEARING: RESOLUTION NO. (R)17-06, AUTHORIZING AND APPROVING INCREASES IN WATER RATES FOR THE ORO VALLEY WATER UTILITY   4. DISCUSSION AND POSSIBLE INITIATION OF ZONING CODE AMENDMENTS TO STREAMLINE THE DEVELOPMENT REVIEW PROCESS AND GAIN EFFICIENCIES BY COMBINING THE CONCEPTUAL DESIGN REVIEW BOARD AND THE PLANNING & ZONING COMMISSION   FUTURE AGENDA ITEMS (The Council may bring forth general topics for future meeting agendas. Council may not discuss, deliberate or take any action on the topics presented pursuant to ARS 38-431.02H)   CALL TO AUDIENCE – At this time, any member of the public is allowed to address the Mayor and Town Council on any issue not listed on today’s agenda. Pursuant to the Arizona Open Meeting Law, individual Council 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 Mayor and Council 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.   ADJOURNMENT     POSTED: 2/8/17 at 5:00 p.m. by pp When possible, a packet of agenda materials as listed above is available for public inspection at least 24 hours prior to the Council meeting in the office of the Town Clerk between the hours of 8:00 a.m. – 5:00p.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 Council 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 Town Council 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 Town Council on any item(s) on this agenda, please complete a speaker card located on the Agenda table at the back of the room and give it to the Town Clerk. 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 Mayor 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 Council. Please organize your speech, you will only be allowed to address the Council once regarding the topic being discussed. 3. Please limit your comments to 3 minutes. 4. During “Call to Audience” you may address the Council 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.    Town Council Regular Session Item # 1. Meeting Date:02/15/2017   Submitted By:Lynda Koepfer, Town Manager's Office Information Subject Mayor Hiremath - 2017 US Conference of Mayors Winter Meeting Trip Report Attachments Hiremath Trip Report 01.20.17     Town Council Regular Session Item # 1. Meeting Date:02/15/2017   Presentation of the Youth Art Program Information Subject Presentation - Youth Art Program by the Arts and Culture Ambassadors Summary Attachments No file(s) attached.    Town Council Regular Session Item # A. Meeting Date:02/15/2017   Requested by: Mike Standish Submitted By:Michelle Stine, Town Clerk's Office Department:Town Clerk's Office Information SUBJECT: Minutes - January 18, 2017 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 the following changes) the January 18, 2017 minutes.  Attachments 1-18-17 Draft Minutes  1/18/17 Minutes, Town Council Regular Session 1 MINUTES ORO VALLEY TOWN COUNCIL REGULAR SESSION January 18, 2017 ORO VALLEY COUNCIL CHAMBERS 11000 N. LA CANADA DRIVE REGULAR SESSION AT OR AFTER 6:00 PM CALL TO ORDER Vice Mayor Waters called the meeting to order at 6:00 p.m. ROLL CALL PRESENT:Lou Waters, Vice Mayor Joe Hornat, Councilmember Rhonda Piña, Councilmember Bill Rodman, Councilmember Mary Snider, Councilmember Steve Solomon, Councilmember ABSENT:Satish Hiremath, Mayor PLEDGE OF ALLEGIANCE Oro Valley Boy Scout Troop 270 led the audience in the Pledge of Allegiance. UPCOMING MEETING ANNOUNCEMENTS Communications Administrator Misti Nowak announced the upcoming Town meetings and events. COUNCIL REPORTS Councilmember Hornat recognized the Sun City Oro Valley Astronomy Club for their donation of telescopes to fifth grade students at Coronado K-8 School. Councilmember Snider recognized Austin Thacker, a student from Ironwood Ridge High School, for his fortitude, determination and outstanding accomplishments. DEPARTMENT REPORTS 1/18/17 Minutes, Town Council Regular Session 2 Community Development and Public Works Director Paul Keesler announced that the Oro Valley Main Streets "Walk the Block" event was rescheduled for Saturday, February 11, 2017 due to inclement weather. ORDER OF BUSINESS Vice Mayor Waters reviewed the order of business and stated the order would stand as posted. INFORMATIONAL ITEMS There were no informational items. CALL TO AUDIENCE No comments were received. PRESENTATIONS 1.Presentation -Youth Art Program by the Arts and Culture Ambassadors Economic Development Director Amanda Jacobs gave an overview of the Youth Art Program's current events and introduced Arts and Culture Ambassador Joann Carolla. Arts and Culture Ambassadors Sasha Case and Joann Carolla introduced the pieces of artwork on display in the Council Chambers which were created by High School Students from Pusch Ridge Christian Academy, Ironwood Ridge High School, Basis Oro Valley, Immaculate Heart and Canyon Del Oro High School. CONSENT AGENDA Councilmember Rodman requested that item (C) be removed from the Consent Agenda for discussion. Councilmember Piña requested that item (D) be removed from the Consent Agenda for discussion. Councilmember Hornat requested that items (H) and (I) be removed from the Consent Agenda for discussion. A.Minutes -January 4, 2017 B.Fiscal Year 2016/17 Financial Update through October 2016 E.Request for approval of a final plat for the Sanctuary at Silverhawke residential subdivision, located at the northeast corner of Naranja Drive and 1st Avenue 1/18/17 Minutes, Town Council Regular Session 3 F.Request for approval of a Conceptual Architecture application for the Oro Valley Church of the Nazarene, located at 500 W. Calle Concordia near the northeast corner of Calle Concordia and Calle Buena Vista G.Cancellation of the February 1, 2017 regular Town Council meeting MOTION:A motion was made by Councilmember Snider and seconded by Councilmember Hornat to approve Consent Agenda items (A - B), (E - F) and (G). MOTION carried, 6-0. C.Fiscal Year 2016/17 Financial Update through November 2016 Councilmember Rodman requested an overview of the various funds for first five months of Fiscal Year 2016/17. Finance Director Stacey Lemos presented an overview of the following funds for the Fiscal Year 2016/17: - General Fund - Highway Fund - Community Center Fund Discussion ensued amongst Council and staff regarding Fiscal Year 2016/17 Financial Update through November 2016. MOTION:A motion was made by Councilmember Rodman and seconded by Councilmember Hornat to approve item (C). MOTION carried, 6-0. D.Resolution No. (R)17-03, approving the Intergovernmental Transportation Funding Agreement between the Regional Transportation Authority of Pima County and Town of Oro Valley for Design and Construction of a Pedestrian and Traffic Signal at La Canada Drive and the entrance of the Town of Oro Valley Community Center Councilmember Piña requested clarification on the project costs for item (D). Community Development and Public Works Director Paul Keesler clarified the potential scenarios that could affect project costs for item (D). Discussion ensued amongst Council and staff regarding item (D). 1/18/17 Minutes, Town Council Regular Session 4 MOTION:A motion was made by Councilmember Piña and seconded by Councilmember Snider to approve Resolution No. (R)17-03, authorizing the Intergovernmental Transportation Funding Agreement between the Regional Transportation Authority of Pima County and the Town of Oro Valley for the Design and Construction of a Pedestrian and Traffic Signal at La Canada Drive and El Conquistador. MOTION carried, 6-0. H.Council approval of M3S Sports’ request for in-kind support for the Arizona Distance Classic Councilmember Hornat recognized the Arizona Distance Classic Race Director David Babner. Mr. Babner gave an overview of the Arizona Distance Classic and recognized the Oro Valley Police Department for their management of the course and the Town Council for their involvement and support of the event. Discussion ensued amongst Council and staff regarding item (H). MOTION:A motion was made by Councilmember Hornat and seconded by Vice Mayor Waters to accept item (H). MOTION carried, 6-0. I.Appointment to the Parks and Recreation Advisory Board (PRAB) and the Stormwater Utility Commission (SWUC) Councilmember Hornat recognized the two applicants being recommended for appointment to the Parks and Recreation Advisory Board and the Stormwater Utility Commission. MOTION:A motion was made by Councilmember Hornat and seconded by Councilmember Snider to approve the appointment of Joseph Erceg to the Parks and Recreation Advisory Board and Michael DeSantis to the Stormwater Utility Commission for terms expiring December 31, 2018. MOTION carried, 6-0. REGULAR AGENDA 1.COURTESY REVIEW OF THE CONCEPTUAL SITE PLAN AND ARCHITECTURE FOR THE LEMAN CHARTER SCHOOL LOCATED NEAR THE NORTHWEST CORNER OF LA CAÑADA DRIVE AND TANGERINE 1/18/17 Minutes, Town Council Regular Session 5 ROAD(This item was for informational purposes only, no action was taken on this item) Senior Planner Rosevelt Arellano presented item #1 and outlined the following: - Request - Proposed Architecture - Leman Charter School in Marana - Architecture Review - Summary Discussion ensued amongst Council and staff regarding item #1. This item was for informational purposes only, no action was taken on this item. 2.AMENDING CHAPTERS 22 AND 27 OF THE ORO VALLEY ZONING CODE TO UPDATE ZONING CODE PROCEDURES RELATING TO THE YOUR VOICE, OUR FUTURE GENERAL PLAN a.RESOLUTION NO. (R)17-04, DECLARING THE PROPOSED AMENDMENTS TO THE ZONING CODE RELATED TO GENERAL PLAN AMENDMENT PROCEDURES AND OTHER RELATED SECTIONS, AS PROVIDED IN EXHIBIT "A" WITHIN THE ATTACHED RESOLUTION AND FILED WITH THE TOWN CLERK, A PUBLIC RECORD MOTION:A motion was made by Councilmember Snider and seconded by Councilmember Piña to approve Resolution No. (R)17-04, declaring the proposed amendments to the Zoning Code related to General Plan Amendment procedures and other related sections, as provided in Exhibit "A" within the attached resolution and filed with the Town Clerk, a public record. MOTION carried, 6-0. b.PUBLIC HEARING: ORDINANCE NO. (O)17 -01, AMENDING SECTIONS 22.2, 22.15, 27.10 AND OTHER RELATED SECTIONS OF THE ORO VALLEY ZONING CODE TO UPDATE GENERAL PLAN AMENDMENT PROCEDURES Long Range Principal Planner Elisa Hamblin gave an overview of item #2b that included the following: - Purpose - Amendment Types and Procedures - Adoption of General Plan Amendments - Summary and Recommendation 1/18/17 Minutes, Town Council Regular Session 6 Discussion ensued amongst Council and staff regarding item #2b. Vice Mayor Waters opened the public hearing. No comments were received. Vice Mayor Waters closed the public hearing. Discussion continued amongst Council and staff regarding item #2b. MOTION:A motion was made by Councilmember Snider and seconded by Councilmember Rodman to approve Ordinance No. (O)17-01, related to General Plan Amendment Procedures, based on the finding the amendments would align the Zoning Code with the recently ratified Your Voice, Our Future General Plan. MOTION carried, 6-0. 3.DISCUSSION AND POSSIBLE DIRECTION TO STAFF REGARDING FUTURE COMMUNITY CENTER ELEMENTS Councilmember Hornat presented item #3. Discussion ensued amongst Council and staff regarding future Community Center elements. Town Council directed staff to hire a consultant to review options available for the Community Center restaurant facility and the configuration of the golf course and to prepare a Request for Proposals, solicit bids and return to Council with the information received from those requests. Furthermore, Town Council directed staff to solicit bids for the reconfiguration of the Community Center front entrance and the installation of an ADA compliant elevator then return to Council with this information for review and possible action. FUTURE AGENDA ITEMS No future agenda items were requested. CALL TO AUDIENCE No comments were received. ADJOURNMENT MOTION:A motion was made by Vice Mayor Waters and seconded by Councilmember Hornat to adjourn the meeting at 7:05 p.m. 1/18/17 Minutes, Town Council Regular Session 7 MOTION carried, 6-0. Prepared by: __________________________ Michelle Stine, CMC Deputy Town Clerk 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 Council of Oro Valley, Arizona held on the 18th day of January, 2017. I further certify that the meeting was duly called and held and that a quorum was present. Dated this _____ day of ____________________, 2017. ___________________________ Michael Standish, CMC Town Clerk    Town Council Regular Session Item # B. Meeting Date:02/15/2017   Requested by: Amanda Jacobs Submitted By:Amanda Jacobs, Town Manager's Office Department:Town Manager's Office Information SUBJECT: Visit Tucson Quarterly Report: October 1, 2016 - December 31, 2016 RECOMMENDATION: This report is for information only. EXECUTIVE SUMMARY: The FY 2015/16 Financial Participation Agreement (FPA) between the Town of Oro Valley and Visit Tucson stipulates that a quarterly report be compiled by Visit Tucson and submitted to the Economic Development staff and Town Council. The enclosed report satisfies the FPA requirement for the second quarter of FY 2016/17. An additional report is included to illustrate the town's return on investment (ROI) from Visit Tucson during July - December 2016. BACKGROUND OR DETAILED INFORMATION: N/A FISCAL IMPACT: The fiscal impact is $250,000 from the Bed Tax Fund. SUGGESTED MOTION: N/A Attachments Visit Tucson FPA  Visit Tucson Q2  Visit Tucson ROI  QUARTERLY PROGRESS REPORT October through December 2016 Submitted To: Amanda Jacobs, Economic Development Manager By: Brent DeRaad, President & CEO In accordance with Resolution No. (R)15-42 Visit Tucson will initiate, implement and administer a comprehensive sales, promotion , and advertising program to attract an increasing number of convention delegates and vacationing tourists to the Town, thereby providing revenues to the community through transient rental and sales taxes, and contributing to the overall economic growth and continued viability of the tourism and hospitality industry. Below is data on activity that Visit Tucson has addressed through this quarter and fiscal year. Ongoing focuses for Visit Tucson will be attracting meetings and leisure travelers to Hilton El Conquistador and other Town hotels, bringing competitions to the Oro Valley Aquatic Center, endurance events to the Town, and marketing attractions, including El Conquistador Golf & Tennis and Tohono Chul Park. Key Measures of Performance Adopted FY 2016-17 Current Quarter FYTD 2016-17 FYTD 2015-16 Convention Sales Sales Leads 255 84 196 161 Site Inspections 32 17 30 39 Future Bookings 28 2 10 20 Room Nights of Future Bookings 12,000 1,560 8,880 8,419 Travel Industry Sales Leads/Services 35 9 34 11 Promote to Targeted Tour Operator Clients 800 737 1,612 666 Impressions Via Tour Operator Catalogs 1,000,000 530,000 2,781,400** 390,000 ** Reflects updated Q1 values Marketing Unique Visitors to Visit Tucson Website 1,200,000 272,137 492,549 449,279 Unique Visitors to Oro Valley* via Visit Tucson Website 25,000 4,046 9,050 11,688 *Includes unique visitors to Oro Valley webpages listed in #6 on page 4 of this report. Oro Valley webpages have been incorporated throughout the recently launched updated website, VisitTucson.org . Oro Valley content is featured on webpages specific to Oro Valley as a destination (listed in #6 on page 4), as well as on pages that are regional in focus, and thus not included in the total unique visitors to the Oro Valley webpages. Visit Tucson’s 2016-17 Budgeted Revenue Budget Percentage City of Tucson: $4,100,000 46% Pima County: $3,275,000 37% Town of Oro Valley: $250,000 3% Pascua Yaqui Nation: $75,000 1% Tohono O’odham Nation: $75,000 1% Private Sector: $1,063,650 12% Total: $8,838,650 100% October-December 2016 Oro Valley Highlights Page 2 Additional 2016-17 Visit Tucson Performance Measures 1. Oro Valley will be featured in the Official Visitors Guide, along with the surrounding jurisdictions. Result: The 2017 Official Visitors Guide will be published in February 2017 and will include information about Oro Valley and its tourism assets, including Hilton Tucson El Conquistador Resort and El Conquistador Golf & Tennis. 2. Provide Oro Valley with a 1/3-page ad in the printed 2017 Official Visitors Guide & a full-page ad in the iPad version of the guide. Result: This will be fulfilled in February 2017. 3. Promote Oro Valley events and attractions on Visit Tucson’s website and social media sites. Information will be provided by Economic Development division staff or by New Media Developer. Result: Social media posts: Visit Tucson December 6 at 6:32pm · Facebook Tucson is surrounded by the world’s largest convention of saguaro cactus. You’ll see plenty of these stunning beauties at The Golf Club at Vistoso. Along with a few extra balls, bring your camera. Visit Tucson Dec. 1 at 9:50am · Facebook and Twitter Come out for the Oro Valley Festival of Arts this weekend! There will be more than 150 artists and exhibitors in all mediums, live performances, food vendors, family activities and a Tree Lighting Ceremony. - http://bit.ly/2fVWHHa October-December 2016 Oro Valley Highlights Page 3 Visit Tucson November 15 at 9:55am · Facebook & Twitter Oro Valley, to put it simply, is rich in natural beauty, with a small-town, family-friendly culture, but there's so much more than that. Book a stay at one of our Oro Valley accommodations and see what we mean for yourself: http://bit.ly/2fSxxgI Visit Tucson October 24 · 3605 – that’s how many calories you will burn if you play all 45 holes at the Hilton El Conquistador golf course. Take the challenge. You’ll feel great. #FreeYourself Visit Tucson October 20 · Facebook Top of the World moments happen when you venture off the beaten path, , explore and take time to enjoy life with the ones you love. And in Oro Valley those moments happen every day. Whatever your season visit Oro Valley, it's in our nature.http://visitorovalley.org 4. Feature the Oro Valley Aquatic Center in Visit Tucson’s online sports facility guide. Result: The Oro Valley Aquatic Center is featured year-round in Visit Tucson Sports’ online sports facility guide: http://www.visittucson.org/sports/facilities/aquaov/ October-December 2016 Oro Valley Highlights Page 4 5. Produce a finished video of Oro Valley Aquatic Center and Oro Valley Community and Recreation Center and El Conquistador Golf and Tennis, which can be used on Visit Tucson’s website, Oro Valley’s website and promoting the destination to special event operators. Result: Visit Tucson worked with Litteer Films to produce the “Whatever Your Season, Visit Oro Valley” video, which was debuted at the State of the Town luncheon on October 20, 2016. Footage was shot at the Oro Valley Aquatic Center, Oro Valley Community & Recreation Center, El Conquistador Golf & Tennis, Catalina State Park, Steam Pump Ranch, El Charro Cafe, and Noble Hops. The two-and-a-half- minute video is available at visitorovalley.org and Visit Tucson’s YouTube page, with more than 2,200 views on YouTube. The video has more than 15,400 views and 254 shares on Visit Tucson’s Facebook page. 6. Provide quarterly reports with quarterly breakouts of unique visitors to the VisitOroValley.org microsite to the New Media Developer and Economic Development Manager for these relevant pages: https://www.visittucson.org/oro-valley (Oro Valley homepage) https://www.visittucson.org/listing-categories/oro-valley (Oro Valley Accommodations) https://www.visittucson.org/visit/food-drink/categories/where-eat-oro-valley-and-northwest-side (Oro Valley Dining) https://www.visittucson.org/events/categories/oro-valley (Oro Valley Events) https://www.visittucson.org/listing-categories/oro-valley-1 (Oro Valley Arts) https://www.visittucson.org/exploring-valley-gold (Oro Valley article) The report should include the following information: 1) total users for the quarter; 2) demographics, including age and gender; 3) location (top 10); 4) technology (top 10), including browser & operating system and mobile device & mobile operating system; 5) top 10 referrals to VisitOroValley.org microsite; 6) page views; 7) bounce rate; and 8) average session duration. Result: The October-December 2016 report is being provided to Town staff. 7. Town officials may attend trade shows with Visit Tucson staff at the expense of the Town, except for the United States Sports Convention. Visit Tucson will cover the registration fees for Town officials with those fees counting toward the tourism-activities rebate to the Town. Result: There was not any new activity during the second quarter. As reported in the first quarter report, Town staff joined Jeffrey John, Visit Tucson Sports, at the American Swim Coaches Association World Clinic in Fort Lauderdale, Fla., September 6-11. Visit Tucson covered the Town’s $750 registration fee. 8. Host http://visitorovalley.org and update the site based on information provided by the Economic Development Manager or New Media Developer. Result: A thorough list of accommodations, arts & entertainment, outdoor recreation and restaurants is listed on the website, which is incorporated into Visit Tucson’s website visitorovalley.org. Visit Tucson works with Town staff to update information on this website. October-December 2016 Oro Valley Highlights Page 5 9. Promote Oro Valley as a winter training destination for cycling and swimming on Visit Tucson’s website and social media sites. Result:  Winter training at Oro Valley Aquatic Center is featured at: https://www.visittucson.org/about/winter-training-capital/training/swimming and https://www.visittucson.org/winter-training  Oro Valley is featured as an ideal destination for cycling at: http://www.visittucson.org/about/winter-training-capital/training/cycling/ 10. Provide total tourism-based direct spending and total tourism-based impact numbers from Visit Tucson Sports events held in Oro Valley. Result: The direct spending in Oro Valley from sports events that were held between Oct. 1, 2016 and Dec. 30, 2016 is $647,379 based on 980 visitors filling 2,170 room nights. Through the first six months of the fiscal year, direct spending from sports delegates is $841,567 based on 1,249 visitors filling 2,449 hotel room nights. 11. Scout Steam Pump Ranch and other Oro Valley destinations for film opportunities. Result: During the second quarter, two location scouts sought filming locations in Oro Valley. Kind Health Bars sought out private lands in Oro Valley for a commercial, but ultimately did not choose any as a location. Winter Silks sought out private homes in Oro Valley for a commercial, but also did not choose any as a location. 12. Provide information on equipment, crew and local suppliers, as needed, to producers of film, television and commercial projects considering shooting in Oro Valley. Result: Film Tucson provides information about Oro Valley on an ongoing basis to producers of independent films, commercials, reality television series and photo shoots, who are scouting locations in southern Arizona. 13. Rebate 5% ($12,500) of Oro Valley’s 2016-17 investment in Visit Tucson into tourism-related activities that benefit the Town. Result: $678.58 – Oro Valley Aquatic Center lanyards and rack cards (August) $750.00 – American Swim Coaches Association World Clinic in Fort Lauderdale (September) $4,000.00 – Experient FAM at Hilton El Conquistador (September) $5,500.00 – Whatever Your Season, Visit Oro Valley film $1,421.00 – Town of Oro Valley Special Report in Biz Tucson - 1/2-page advertising value $10,000.00 – MLS Investment on behalf of Oro Valley $22,349.58– Total October-December 2016 Oro Valley Highlights Page 6 14. Consult with Town staff & officials on tourism sales & marketing initiatives, including, but not limited to, promoting Town venues to special event operators, Mexico & leisure marketing, & group sales initiatives. Result: We have ongoing conversations among Town staff and Visit Tucson’s marketing and sports personnel to discuss opportunities to promote the Town’s tourism attributes and book sports events. In December 2016, Visit Tucson hired Taboola to launch a content distribution campaign to drive relevant traffic based on contextual and behavioral targeting to specific pages of our website, including the Oro Valley pages. Taboola is a discovery platform (or search engine in reverse) that drives traffic to websites, blogs or videos, and monetizes websites with the largest platform for content recommendation, audience acquisition, and native advertising. Results from the campaign, specific to the Oro Valley webpages, will be included in the third quarter (January – March, 2017) report in April 2017. Additional Marketing:  Top of the World video, which features Hilton El Conquistador, has more than 364,000 views.  JFK to TUS New Nonstop Flight Activation: Hilton El Conquistador is prominently featured in our NY activation.  Town of Oro Valley Special Report in Biz Tucson  Online articles within VisitTucson.org that feature Oro Valley: Exploring the Valley of Gold Five Must-Hike Parks in Southern Arizona Farm to Fork, Ranch to Resort Health & Wellness Come Home It’s Time to get Wet See Tucson on “Top of the World” 15. One Town official will serve on Visit Tucson’s board of directors. Result: Vice Mayor Lou Waters is an active participant on Visit Tucson’s board of directors. Meetings Economic Impact: Per the convention sales metrics listed on page 1, the economic impact of 10 meetings booked between July 1, 2016 and December 31, 2016 by the Hilton El Conquistador Resort and the Red Lion Inn & Suites from Visit Tucson leads is $2,684,098. Town of Oro Valley's ROI from Visit Tucson July - December 2016 Amount Description $2,684,099 From July 1 - December 31, 2016, Hilton El Conquistador Resort & Red Lion Inn & Suites booked 10 meetings, representing 8,880 room nights, from Visit Tucson leads--estimated economic impact. $841,567 From July 1 - December 31, 2016, estimated economic impact associated with 6 sports events held in Oro Valley, representing 2,449 room nights. $5,429 Visit Tucson's cash investment in tourism activities that benefit the Town: Production of lanyards and rack cards for Oro Valley Aquatic Center, tradeshow booth for American Swim Coaches Association world clinic, Experient FAM at Hilton El Conquistador $5,500 Visit Tucson's production of "Whatever Your Season, Visit Oro Valley" film. $5,730 Visit Tucson provided Oro Valley with a 1/2-page ad in the 2017 Visit Tucson visitors guide--value. $8,900 Visit Tucson provided Oro Valley with a full-page advertorial in the 2017 Visit Tucson visitors guide--value. $1,421 Town of Oro Valley Special Report in Biz Tucson - 1/2-page advertising value. $10,000 Visit Tucson paid Oro Valley's $10,000 commitment to Major League Soccer to have two teams stay and practice in Oro Valley in January-February 2017. $3,562,646 Oro Valley's return from Visit Tucson--July 1 - Dec. 30, 2016 $3,562,646 Oro Valley's six-month return from Visit Tucson $250,000 Oro Valley's 2016-17 investment in Visit Tucson $14.25 Oro Valley's return for every $1 invested in Visit Tucson Not factored into the value above: *Bed- & sales-tax revenue generated *Leisure visitors spending money at Oro Valley hotels, resorts, attractions & retail based on Visit Tucson's overall destination promotion, which includes Oro Valley. *Host, update & help drive traffic to Oro Valley microsite (www.visitorovalley.org)--9,050 unique visitors, July 1-Dec. 30, 2016 *Visit Tucson staff time to market, sell & promote Oro Valley, & to calculate & report ROI & performance. Visit Tucson's marketing, convention sales & services, film, public relations, tourism, Mexico marketing & membership departments all work to benefit the Town & its tourism-related businesses.    Town Council Regular Session Item # C. Meeting Date:02/15/2017   Requested by: Amanda Jacobs Submitted By:Amanda Jacobs, Town Manager's Office Department:Town Manager's Office Information SUBJECT: Greater Oro Valley Chamber of Commerce Quarterly Report: October 1, 2016 - December 31, 2016 RECOMMENDATION: This report is for information only. EXECUTIVE SUMMARY: The FY 2016/17 Financial Participation Agreement (FPA) between the Town of Oro Valley and the Greater Oro Valley Chamber of Commerce (Chamber) stipulates that a quarterly report be compiled by the Chamber and submitted to Economic Development staff and Council. The enclosed report satisfies the FPA requirement for the second quarter of FY 2016/17. BACKGROUND OR DETAILED INFORMATION: N/A FISCAL IMPACT: The FY 2016/17 FPA between the Town of Oro Valley and the Chamber is $30,000 from the Bed Tax Fund. SUGGESTED MOTION: N/A Attachments Chamber FPA  Chamber Q2  1 QUARTERLY PROGRESS REPORT Oct. 1-Dec. 31, 2016 Submitted To: Amanda Jacobs, Economic Development Manager By: Dave Perry, President/CEO In accordance with Resolution No. (R) 15-41 A. Tourism, Visitors Services and General Information The Greater Oro Valley Chamber of Commerce has provided tourism and visitor’s services and information to Town residents and seasonal tourists and anyone indicating an interest in locating a business or residence in the Town over the past three months. Below is data on activity that the Chamber has addressed through this quarter: Business Recruitment, Retention and Outreach 1. The Chamber will continue to participate in the Town’s Business Retention and Expansion (BR&E) Program. The Chamber President/CEO participated in business retention and expansion visits with, in October, Centre Stage Pole and Aerial, Sleep Matters, the Klingler Group, American Family Insurance District Office, CPA John Lebbs, Sun City Oro Valley, The Fairfield Inn & Suites, Happy Chi Massage and OV Hair; in November, Auto Zone, Ace Hardware, Zounds, First Service, Oro Valley Dental Arts, Best Buy, Gadabout, Ulta, Cost Plus World Market, Petco, DSW Shoes; and in December, Anne’s Grooming, Golder Ranch Fire District, Bank of the West. 2. The Chamber will coordinate with at least 25 Oro Valley businesses and offer discounts, during the weekend of March 24–26, 2017 for the athletes participating in the Arizona Distance Classic. The Chamber will begin working on this in 2017. 3. To expand the Shop Oro Valley program, the Chamber will promote and distribute $500 gift cards from local Oro Valley businesses at the Oro Valley Annual Tree Lighting Ceremony. Members of the Chamber staff distributed gift cards valued at more than $780 during the Dec. 3 tree- lighting event. 4. The Chamber will provide two (2) $25 gift cards from local Oro Valley businesses for each Musical Magic for Kids Concert in honor of Bill Adler, who donated raffle prizes each month to this concert. The Chamber has provided gift cards to Giovanni’s Gelato ($50), Kneaders ($50) and to Walmart Neighborhood Market ($50) this quarter. 5. The Chamber shall work to assist the Town in emphasizing the importance of supporting local retailers/businesses through educational and promotional efforts and will display the following materials at the Chamber offices: Shop Oro Valley Program and other economic development related materials as deemed appropriate by the Chamber President/CEO and Economic Development Manager. The Chamber is currently displaying Shop Oro Valley bags, OV Dollars flyers, Joint Recreation Brochure and Map, Oro Valley Marketing Brochures, Parks and Recreation Guides and Vista Newsletter. 2 6. For the second year, the Chamber President will write the ‘Business Spotlight’ bi-monthly content for the Vista Newsletter and Economic Development Division website. This quarter, the Chamber provided stories about The Gaslight Music Hall and The Western National Parks Store. Special Events 1. The Chamber will coordinate ribbon cuttings for new Oro Valley businesses. During the quarter, the Chamber cut ribbons at Oro Valley Hospital’s total joint replacement program Oct. 3, Cathey’s Sewing and Vacuum Oct. 5, Lennar Homes’ Eagles Summit Oct. 6, Mystic Rhythms Ballroom Oct. 13, The Canyons at Linda Vista Trail Nov. 9, Sprint in Oro Valley Nov. 19, New American Funding Nov. 30, and Sun City Oro Valley’s new solar project Dec. 8. 2. The Chamber will host four Oro Valley educational forums that will be open to members and non- members. The Chamber is working with the Oro Valley Police Department and Economic Development Division to coordinate education on the distracted driving ordinance. 3. The Chamber will host a quarterly coffee with the ‘Mayor and Manager’ program that will be open to members and non-members and will be focused on topics occurring/impacting Oro Valley, i.e. town’s budget, new businesses/upcoming road projects, public safety, etc. Our next Coffee with the Mayor is scheduled for Feb. 15. 4. The Chamber will provide $25 Target gift cards to 18 children at the Shop with a Cop event in December 2016. The Chamber provided $450 in gift cards for Shop with a Cop. 5. The Chamber will provide a Customer Service Workshop with a nationally recognized speaker, which will be open to residents and the business community in January 2017 ($5,000 value). The Chamber will present customer service expert David Aaker in 2 identical workshops Tuesday, Jan. 10, at the Hilton Tucson El Conquistador Golf & Tennis Resort in Oro Valley. 6. The Chamber will arrange volunteer meals for at least two Oro Valley major events, such as the Arizona Swimming Short Course State Championships and the State Golf Tournament Championships. The Chamber will assist the town with these efforts for the 2017 Arizona Swimming Short Course Age Group State Championships from March 9 – 12, 2017 and the 2017 U.S. National Synchronized Swimming Championships from April 4 – 9, 2017. 7. The Chamber will collect marketing material from Oro Valley area businesses that will be given to attendees and athletes, during special events. The material will be provided to the Economic Development Division one week prior to the day of the event. The Chamber provided Oro Valley Map & Guides for tennis tournaments. 3 8. During this Agreement, Town officials will attend Chamber breakfasts, luncheons and mixers free of charge as long as each official pre-registers for each event. We had 4 town guests at our Nov. 10 breakfast, 2 at our Nov. 17 mixer, and 6 at our Dec. 13 holiday party. 9. The Chamber will host at least two events at the Community and Recreation Center. A mixer is planned for Thursday, January 19. 10. The Town will receive eight complimentary tables of 10 to the State of the Town of Oro Valley Address and Luncheon. The Town received eight complimentary tables, 80 seats, at the State of the Town Address and Luncheon on October 20. 11. Annual Chamber membership dues to be paid by the Town shall be included as part of the monetary consideration of this Agreement. The dues will be included in the second quarter. Additional Information The Chamber distributed 38 relocation packets in the quarter - -13 in October, 16 in November and 9 in December. The Chamber hosted the annual State of the Town luncheon on Thursday, Oct. 20, at The Hilton Tucson El Conquistador Golf & Tennis Resort. We had 636 guests in the room, and a large business expo in the adjoining ballroom. We have conducted a follow-up meeting with town staffers Amanda Jacobs and Arinda Asper, considering improvements for next year. The 2017 State of the Town luncheon and business expo is scheduled for Thursday, Oct. 5. Chamber staff and the Chamber Foundation provided volunteer help at the Southwest Craft Beer and Sports Festival Oct. 22 at the community center. In October, the Chamber published the 2017 Oro Valley Map & Guide, printing 25,000 copies with The Arizona Daily Star for ongoing distribution at many places, to include Tucson International Airport. Special thanks to the town of Oro Valley’s senior GIS specialist Abdo Abdelrasoul, who helped us publish a new and improved Oro Valley map. The Chamber conducted New Member Orientation on Nov. 4, touching base with Oro Valley businesses John Lebbs / CPA; Judy Penman, Kumon Math and Reading Center; Ideal Image; John Daniels CPA; Family Life Radio; Century Theatres Oro Valley Marketplace and its new manager, Lissa Reed. Oro Valley Police made a presentation about services to business. Perry met with Tim Ray and Shannon Zubert, the new Vestar management team for Oro Valley Marketplace, to connect them with the community and its opportunities. Perry also addressed the Marketplace annual tenants meeting in October. Perry met with Bayer Vella, Patty Hayes and Margie Adler to learn about the new “channel sign” rules for business signs in Oro Valley. 4 Perry helped facilitate and attended a November meeting among Mayor Hiremath, Ian Roark of Pima Community College and Ellen Kirton of the Small Business Development Center regarding the working relationships. On Nov. 10, the Chamber presented a workshop for businesses and nonprofits at the Oro Valley Branch Library presented by Brian Chanecka, Grants and Nonprofit Librarian, and Ken Zambos, Business Librarian for the Pima County Public Library. The Chamber conducted a network development mixer Nov. 17 at The Place at Rock Ridge in Oro Valley. It held its holiday party Dec. 13 at The Hilton Resort, gathering clothing for the Tucson Stand Down through the Oro Valley American Legion Post 132 and Auxiliary.    Town Council Regular Session Item # D. Meeting Date:02/15/2017   Requested by: Mayor Hiremath & Councilmember Pina  Submitted By:Mike Standish, Town Clerk's Office Department:Town Clerk's Office Information SUBJECT: Cancellation of the March 1, 2017 regular Town Council meeting RECOMMENDATION: N/A EXECUTIVE SUMMARY: At its regular meeting on December 7, 2016, the Council approved the 2017 regular Town Council meeting schedule, which included a regular meeting scheduled for March 1, 2017. Currently, there is no business scheduled for the March 1st regular Town Council meeting. In the event that the Town Council would like to cancel the March 1st regular Town Council meeting, the Town Council must take formal action. BACKGROUND OR DETAILED INFORMATION: N/A FISCAL IMPACT: N/A SUGGESTED MOTION: I MOVE to cancel the March 1, 2017 regular Town Council meeting. Attachments No file(s) attached.    Town Council Regular Session Item # E. Meeting Date:02/15/2017   Requested by: Mike Standish Submitted By:Michelle Stine, Town Clerk's Office Department:Town Clerk's Office Information SUBJECT: Appointment to the Tucson-Pima County Bicycle Advisory Committee RECOMMENDATION: Staff recommends the appointment of Joseph Pickens to a term that expires December 31, 2017. This is a partial term to fill a current vacancy.  EXECUTIVE SUMMARY: The Tucson-Pima County Bicycle Advisory Committee (BAC) was formed to provide input to the local jurisdictions on issues of concern to the bicycling community. The Town is responsible for appointing one representative to the BAC to represent the Town and provide a communication link to the BAC. BACKGROUND OR DETAILED INFORMATION: The requests for appointment and the application for the prospective new BAC member is attached.  FISCAL IMPACT: N/A SUGGESTED MOTION: I MOVE to (approve or deny) the appointment of Joseph Pickens to the Tucson-Pima County Bicycle Advisory Committee for a term expiring December 31, 2017.  Attachments Pickens Application     Town Council Regular Session Item # 1. Meeting Date:02/15/2017   Requested by: Stacey Lemos Submitted By:Wendy Gomez, Finance Department:Finance Information SUBJECT: FISCAL YEAR 2016/17 MID-YEAR FINANCIAL UPDATE RECOMMENDATION: This item is for information only. EXECUTIVE SUMMARY: In the General Fund (see Attachment A), revenues collected through December totaled $15.9 million or 48.1% of the budget amount of $33.1 million. Year-to-date expenditures through December totaled $15.2 million or 45.8% of the budget amount of $33.2 million. In the Highway Fund (see Attachment B), revenues collected through December totaled $1.6 million or 43.9% of the budget amount of $3.6 million. Year-to-date expenditures through December totaled $2.1 million or 43.7% of the budget amount of $4.7 million. In the Bed Tax Fund (see Attachment C), revenues collected through December totaled $384,977 or 35.3% of the budget amount of $1.1 million. Year-to-date expenditures through December totaled $513,045 or 42.9% of the budget amount of $1.2 million. In the Community Center Fund (see Attachments D-1, D-2 and D-3), revenues collected through December totaled $2.6 million or 39.5% of the budget amount of $6.6 million. Year-to-date expenditures through December totaled $3.2 million or 46.6% of the budget amount of $6.9 million. In the Water Utility Fund (see Attachment E), revenues collected through December totaled $8.3 million or 54.9% of the budget amount of $15.1 million. Year-to-date expenditures through December totaled $9.1 million or 48.4% of the budget amount of $18.8 million. In the Stormwater Utility Fund (see Attachment F), revenues collected through December totaled $637,418 or 48.9% of the budget amount of $1.3 million. Year-to-date expenditures through December totaled $462,952 or 40.1% of the budget amount of $1.2 million. BACKGROUND OR DETAILED INFORMATION: GENERAL FUND Attachment A shows General Fund revenues and expenditures through December, as well as year-end estimates for each category. The estimated year-end projections in the General Fund are as follows: Revenues                                                     $33,781,930 Less: Expenditures                                               ($32,969,199) Less: Council-Approved Use of Contingency:    -Town Manager Recruitment Process           ($30,000)    Approved July 6, 2016 Estimated Increase in Fund Balance $ 782,731 General Fund Revenues  Local sales tax collections in the General Fund total $7.5 million or 47.6% of the budget amount of $15.7 million. These revenues are estimated to come in over budget by about $34,000 or 0.2% based on observed trends primarily in the cable franchise fee revenue category. Please see Attachment H for a monthly, year-over-year tracking of General Fund local sales tax collections, including construction and utility sales tax.  License and permit revenues total $1.0 million or 62.7% of the budget amount of $1.6 million. These revenues are estimated to come in over budget by about $344,000 or 21.3% based on current trends and updated forecasts for residential and commercial permitting activity through the remainder of the fiscal year. State shared revenues total $5.4 million or 50.1% of the budget amount of $10.8 million. These revenues are estimated to come in over budget by about $149,000 or 1.4% due to state-shared income taxes. This budget was set conservatively due to the unknown impact of special census efforts undertaken across numerous Phoenix Valley communities last year.       Charges for Services revenues total $1.1 million or 51.6% of the budget amount of $2.1 million. These revenues are estimated to come in over budget by about $52,000 or 2.4% based on trending actual collections through year-end.   Interest Income revenues reflect an unrealized loss of $62,110 through December. It is anticipated that rising interest rates will cause increased volatility in the Town's investment portfolio. While this may cause temporary fluctuation as market values decline due to rising yields (market values move inversely to the direction of interest rates), this volatility tends to average out over longer periods of time as funds are invested at higher yields. For FY 16/17, these revenues are estimated to come in invested at higher yields. For FY 16/17, these revenues are estimated to come in under budget by about $79,000 or 88.9%.  State grant revenues are estimated to come in over budget by about $53,000 or 3.2%. This is due to an overage of roughly $156,000 in anticipated RTA reimbursements for Transit, which is offset with budgeted grant proceeds of roughly $103,000 that will not be utilized this fiscal year.  Federal grant revenues are estimated to come in slightly under budget, by about $7,000 or 1.5%, based on projected proceeds through year-end. Fines are estimated to come in slightly under budget, by about $7,500 or 5.7%, based on current trends. Miscellaneous revenues are estimated to come in over budget by about $108,000 or 76.8% due to a known, forthcoming payment of in-lieu income to the Town Please note that all year-end estimates are subject to change. General Fund Expenditures  Expenditures are projected to come in under budget by about $232,000 or 0.7% due to estimated personnel savings, capital savings for grant capacity that will not be utilized, and slight O&M savings in several departments. Please note all figures are subject to change. HIGHWAY FUND Highway Fund Revenues  State shared highway user funds total $1.5 million or 49.0% of the budget amount of $3.0 million. These revenues are estimated to come in over budget by about $135,000 or 4.5%. This budget was set conservatively due to the unknown impact of special census efforts undertaken across numerous Phoenix Valley communities last year. Charges for services revenues reflect Highway Fund services provided to the Stormwater Utility Fund. These revenues are estimated to come in under budget by about $74,000 or 55.5%, based on trending actuals through year-end.  State grant revenues are estimated to come in slightly under budget by $15,000 or 7.7%, due to estimated reimbursements for contract administration of PAG and RTA-funded roadway widening projects.   Interest Income revenues reflect an unrealized loss of nearly $12,000 through December, and are estimated to come in under budget by about $24,000 or 84.5%. Please reference the discussion on interest income revenues in the General Fund notes above. License and permit revenues total $54,464 or 103.7% of the budget amount of $52,500. These revenues are estimated to come in over budget by about $14,000 or 26.3% based on trending actual collections through year-end. or 26.3% based on trending actual collections through year-end. Please note that all year-end estimates are subject to change. Highway Fund Expenditures Expenditures are projected to come in under budget by about $272,000 or 5.8%. Of this amount, $250,000 is due to the rollover of the Safeway (1st Ave) Safety CIP project, while the remaining $22,000 is due to estimated personnel savings. Please note these figures are subject to change. BED TAX FUND Bed Tax Fund Revenues Bed tax revenues total $384,986 or 35.5% of the budget amount of $1.1 million. These revenues are estimated to come in under budget by about $42,000 or 3.8%, based on current trends. Interest Income revenues reflect an unrealized loss of $3,509 through December, and are estimated to come in under budget by about $4,900 or 78.3%. Please reference the discussion on interest income revenues in the General Fund notes above. The miscellaneous revenues of $3,500 are due to a donation for the Town's annual tree lighting event. Please note all year-end estimates are subject to change. Bed Tax Fund Expenditures  Expenditures are estimated to come in on budget at this time. COMMUNITY CENTER FUND Attachment D-1 shows the consolidated financial status of the Community Center Fund with all revenues and expenditures from Troon and Town-managed operations. Attachment D-2 shows the monthly line item detail for the Troon-managed operations, specifically revenues and expenditures associated with the golf, tennis, and food and beverage operations. The totals in the revenue and expenditure categories in Attachment D-2 tie to the Contracted Operating Revenues and Expenditures in Attachment D-1. Attachment D-3 shows the revenues and expenditures for the Troon-managed food and beverage operations only.  Community Center Fund Revenues  Local sales tax revenues from the dedicated half-cent sales tax total $1.0 million or Local sales tax revenues from the dedicated half-cent sales tax total $1.0 million or 48.1% of the budget amount of $2.1 million. These revenues are estimated to come in over budget by about $68,000 or 3.2% due to moderate growth being observed in retail and restaurant/bar sales tax collections. Please note this estimate is subject to change. Contracted operating revenues from Troon total about $1.3 million, or 33.4% of the budget amount of $3.7 million. These revenues are estimated to come in under budget by about $663,000 or 17.7%, based on Troon's forecast through the remainder of the fiscal year. Town operating revenues total $344,445 or 46.7% of the budget amount of $737,200. These revenues are estimated to come in over budget by $56,000 or 7.5%, due mainly to member dues and recreation program revenues. Community Center Fund Expenditures  Contracted operating expenditures from Troon total $2.7 million or 50.6% of the budget amount of $5.3 million. These expenditures are estimated to come in under budget by about $217,000 or 4.1%, based on Troon's forecast through the remainder of the fiscal year. This includes identified savings of approximately $176,000 from recently implemented operational changes aimed at reducing expenditures through year-end.   Town operating expenditures are projected to come in on budget at this time. Capital outlay totals $77,172, due mainly to cart path improvements and fitness equipment upgrades. Capital expenditures are projected to come in under budget by $440,500 or 83.6%. This is due primarily to the timing of the ADA improvements budgeted at the Community Center. Year-end expenditure estimates include the annual loan repayment of $120,000 to the General Fund. The year-end estimated fund balance in the Community Center Fund is a positive $11,574. WATER UTILITY FUND Water Utility Fund Revenues  Charges for services revenues total $1.7 million or 56.3% of the budget amount of $3.0 million. These revenues are estimated to come in over budget by about $51,000 or 1.7%, based on current trends. Interest Income revenues reflect an unrealized loss of $40,802 through December, and are estimated to come in under budget by about $59,900 or 81.5%. Please reference the discussion on interest income revenues in the General Fund notes above. Water sales revenues total $6.6 million or 55.1% of the budget amount of $12.0 million. These revenues are estimated to come in over budget by about $185,000 or 1.5%, based on current trends.  Please note all year-end estimates are subject to change.   Water Utility Fund Expenditures  Expenditures are estimated to come in under budget by about $83,000 or 0.4% due to personnel savings. Please note this estimate is subject to change. STORMWATER UTILITY FUND Stormwater Utility Fund Revenues  Revenues are estimated to come in on budget at this time.   Stormwater Utility Fund Expenditures   Expenditures are estimated to come in under budget by about $61,000 or 5.3%. This is due to personnel and O&M savings, which are expected to be partially offset with additional capital infrastructure improvements that will mitigate several identified critical stormwater issues. Please note this estimate is subject to change. Please see Attachments A, B, and C for additional details on the General Fund, Highway Fund and Bed Tax Fund. See Attachments D-1, D-2 and D-3 for additional details on the Community Center Fund. See Attachment E for additional details on the Water Utility Fund and Attachment F for additional details on the Stormwater Utility Fund. See Attachment G for a fiscal year-to-date consolidated summary of all Town Funds. It is important to note the negative fund balance in the Benefit Self Insurance Fund of ($236,206) through December. Due to higher than expected medical claims costs, the current monthly Town and employee contributions to this fund have been insufficient to fully cover these costs. As a result, staff may request Council approval for a transfer of additional funds into the Self Insurance Fund if this trend does not reverse prior to fiscal year-end. See Attachment H for a breakdown of monthly, year-over-year local sales tax collections for the General Fund.   FISCAL IMPACT: N/A SUGGESTED MOTION: This item is for information only. Attachments Attachments Attachment A - General Fund  Attachment B - Highway Fund  Attachment C - Bed Tax Fund  Attachment D-1 Community Center Fund  Attachment D-2 Troon Cash Flow  Attachment D-3 Troon F&B  Attachment E - Water Utility Fund  Attachment F - Stormwater Utility Fund  Attachment G - Summary All Funds  Attachment H - Gen Fund Local Sales Tax  ATTACHMENT A December YTD Financial Status General Fund % Budget Completion through December --- 50.0% % Actuals YE % Variance to Budget to Budget REVENUES: LOCAL SALES TAX 7,458,584 15,653,000 47.6% 15,687,194 0.2% LICENSES & PERMITS 1,012,797 1,615,500 62.7% 1,959,598 21.3% FEDERAL GRANTS 227,773 478,284 47.6% 471,247 -1.5% STATE GRANTS 604,272 1,662,563 36.3% 1,715,789 3.2% STATE/COUNTY SHARED 5,425,410 10,824,605 50.1% 10,973,271 1.4% OTHER INTERGOVERNMENTAL 41,861 115,000 36.4% 109,200 -5.0% CHARGES FOR SERVICES 1,099,178 2,128,601 51.6% 2,180,628 2.4% FINES 58,118 130,000 44.7% 122,544 -5.7% INTEREST INCOME (62,110) 89,200 -69.6% 9,890 -88.9% MISCELLANEOUS 70,251 140,000 50.2% 247,569 76.8% TRANSFERS IN - 305,000 0.0%305,000 0.0% TOTAL REVENUES 15,936,134 33,141,753 48.1% 33,781,930 1.9% % Actuals YE % Variance to Budget to Budget EXPENDITURES: COUNCIL 118,465 220,559 53.7% 220,559 0.0% CLERK 206,185 458,863 44.9% 403,211 -12.1% MANAGER 354,894 801,540 44.3% 801,540 0.0% HUMAN RESOURCES 155,763 368,605 42.3% 352,324 -4.4% FINANCE 362,495 773,591 46.9% 773,591 0.0% INFORMATION TECHNOLOGY 846,986 1,691,676 50.1% 1,691,676 0.0% GENERAL ADMINISTRATION 834,590 1,736,450 48.1% 1,736,450 0.0% LEGAL 338,581 773,003 43.8% 737,653 -4.6% COURT 387,181 845,938 45.8% 845,938 0.0% COMM. DEV. & PUBLIC WORKS 2,636,039 6,084,804 43.3% 5,975,304 -1.8% PARKS & RECREATION 874,764 1,977,326 44.2% 1,962,029 -0.8% POLICE 7,431,486 15,643,620 47.5% 15,643,620 0.0% TRANSFERS OUT 664,638 1,825,304 36.4%1,825,304 0.0% TOTAL EXPENDITURES 15,212,066 33,201,279 45.8% 32,969,199 -0.7% SURPLUS / (DEFICIT) 724,068 (59,526) 812,731 BEGINNING FUND BALANCE 10,524,552 Plus: Surplus / (Deficit)812,731 Less: Approved Use of Contingency Reserves during FY 16/17: Town Manager Recruitment Process (30,000) ENDING FUND BALANCE **11,307,283 * Year-end estimates are subject to further revision ** Ending fund balance amounts are estimates and are subject to further revision FY 2016/2017 Year End Estimate * Budget Year End Estimate * Actuals thru 12/2016 Actuals thru 12/2016 Budget F:\BUDGET ANALYST\Financial Reports 2016-2017\2Q\Dec\Dec FY 17 Monthly Report 02/06/2017 ATTACHMENT B December YTD Financial Status FY 2016/2017 % Budget Completion through December --- 50.0% Actuals thru 12/2016 Budget % Actuals to Budget Year End Estimate * YE % Variance to BudgetREVENUES: LICENSES & PERMITS 54,464 52,500 103.7% 66,295 26.3% STATE GRANTS 32,870 195,000 16.9% 180,000 -7.7% STATE/COUNTY SHARED 1,471,066 3,000,000 49.0% 3,135,452 4.5% CHARGES FOR SERVICES 29,803 134,000 22.2% 59,606 -55.5% INTEREST INCOME (11,781) 28,600 -41.2% 4,419 -84.5% MISCELLANEOUS 1,350 80,000 1.7% 10,544 -86.8% TRANSFERS IN - 100,000 0.0%100,000 0.0% TOTAL REVENUES 1,577,772 3,590,100 43.9% 3,556,316 -0.9% Actuals thru 12/2016 Budget % Actuals to Budget Year End Estimate * YE % Variance to BudgetEXPENDITURES: ADMINISTRATION 467,080 831,188 56.2% 819,624 -1.4% TRANSPORTATION ENGINEERING 300,397 584,522 51.4% 592,684 1.4% PAVEMENT MANAGEMENT 448,772 1,278,095 35.1% 1,269,934 -0.6% STREET MAINTENANCE 620,768 1,205,718 51.5% 1,199,509 -0.5% TRAFFIC ENGINEERING 220,684 814,412 27.1%560,062 -31.2% TOTAL EXPENDITURES 2,057,702 4,713,935 43.7% 4,441,812 -5.8% SURPLUS / (DEFICIT) (479,930) (1,123,835) (885,496) BEGINNING FUND BALANCE 2,028,184 Plus: Surplus / (Deficit)(885,496) ENDING FUND BALANCE **1,142,688 * Year-end estimates are subject to further revision ** Ending fund balance amounts are estimates and are subject to further revision Highway Fund F:\BUDGET ANALYST\Financial Reports 2016-2017\2Q\Dec\Dec FY 17 Monthly Report 02/06/2017 ATTACHMENT C December YTD Financial Status % Budget Completion through December --- 50.0% % Actuals YE % Variance to Budget to Budget REVENUES: BED TAXES 384,986 1,085,805 35.5% 1,044,206 -3.8% INTEREST INCOME (3,509) 6,200 -56.6% 1,346 -78.3% MISCELLANEOUS 3,500 - 0.0%3,500 0.0% TOTAL REVENUES 384,977 1,092,005 35.3% 1,049,052 -3.9% % Actuals YE % Variance to Budget to Budget EXPENDITURES: ECONOMIC DEVELOPMENT 254,517 684,689 37.2% 684,689 0.0% TRANSFERS OUT 258,528 510,194 50.7%510,194 0.0% TOTAL EXPENDITURES 513,045 1,194,883 42.9% 1,194,883 0.0% SURPLUS / (DEFICIT) (128,067) (102,878) (145,831) BEGINNING FUND BALANCE 492,377 Plus: Surplus / (Deficit)(145,831) ENDING FUND BALANCE **346,546 * Year-end estimates are subject to further revision ** Ending fund balance amounts are estimates and are subject to further revision FY 2016/2017 Year End Estimate * Budget Year End Estimate * Bed Tax Fund Budget Actuals thru 12/2016 Actuals thru 12/2016 F:\BUDGET ANALYST\Financial Reports 2016-2017\2Q\Dec\Dec FY 17 Monthly Report 02/06/2017 ATTACHMENT D-1 December YTD Financial Status % Budget Completion through December --- 50.0% % Actuals YE % Variance to Budget to Budget REVENUES: CONTRACTED OPERATING REVENUES Golf Revenues 321,790 1,193,656 27.0% 994,523 -16.7% Member Dues (Golf) 362,739 1,153,655 31.4% 732,663 -36.5% Tennis Revenues 164,755 322,640 51.1% 327,305 1.4% Food & Beverage 303,733 813,575 37.3% 770,658 -5.3% Merchandise & Other 97,056 261,489 37.1%257,129 -1.7% 1,250,073 3,745,014 33.4% 3,082,278 -17.7% TOWN OPERATING REVENUES Daily Drop-Ins 12,424 25,000 49.7% 25,000 0.0% Member Dues 298,869 606,000 49.3% 620,000 2.3% Recreation Programs 30,157 101,500 29.7% 135,000 33.0% Swim Team/Swim Lessons 1,593 - 0.0% 8,000 0.0% Facility Rental Income 1,131 3,700 30.6% 3,700 0.0% Concession Sales 272 1,000 27.2%1,000 0.0% 344,445 737,200 46.7% 792,700 7.5% OTHER REVENUES Local Sales Tax 1,013,173 2,105,163 48.1% 2,172,903 3.2% Real Property Rental Income - 27,861 0.0% 27,861 0.0% Miscellaneous 4,372 - 0.0% 4,372 0.0% Sale of Assets 111 - 0.0%111 0.0% 1,017,656 2,133,024 47.7% 2,205,246 3.4% TOTAL REVENUES 2,612,174 6,615,238 39.5% 6,080,224 -8.1% % Actuals YE % Variance to Budget to Budget EXPENDITURES: CONTRACTED OPERATING EXPENDITURES Personnel 995,442 2,110,584 47.2% 1,950,319 -7.6% Operations & Maintenance 1,502,774 2,818,367 53.3% 2,762,124 -2.0% Equipment Leases 175,288 350,568 50.0%350,568 0.0% 2,673,504 5,279,519 50.6% 5,063,011 -4.1% TOWN OPERATING EXPENDITURES Personnel 358,884 736,944 48.7% 736,944 0.0% Operations & Maintenance 100,180 223,740 44.8%223,740 0.0% 459,064 960,684 47.8% 960,684 0.0% CAPITAL OUTLAY 77,172 527,200 14.6% 86,700 -83.6% TRANSFER TO GENERAL FUND - 120,000 0.0% 120,000 0.0% TOTAL EXPENDITURES 3,209,740 6,887,403 46.6% 6,230,395 -9.5% SURPLUS / (DEFICIT) (597,566) (272,165) (150,171) BEGINNING FUND BALANCE 161,744 Plus: Surplus / (Deficit)(150,171) ENDING FUND BALANCE **11,574 * Year-end estimates are subject to further revision ** Ending fund balance amounts are estimates and are subject to further revision FY 2016/2017 Actuals thru 12/2016 Budget Year End Estimate * Community Center Fund Actuals thru 12/2016 Budget Year End Estimate * F:\BUDGET ANALYST\Financial Reports 2016-2017\2Q\Dec\Dec FY 17 Monthly Report 02/06/2017 ATTACHMENT D-2TROONEl Conquistador Cash Flow StatementActualActualActualActualActualActualActual Original Budget ForecastJul-16Aug-16 Sep-16 Oct-16 Nov-16 Dec-16TOTALTOTALTOTALRevenues:Golf Fees, net of discounts13,421 12,438 29,818 37,695 57,404 50,704 201,480 1,003,084 766,926 Trail Fees & Member Cart Fees13,183 13,026 17,540 16,253 17,263 16,744 94,009 144,772 172,771 Golf - Group Services- - 366 204 100 - 670 825 720 Range, Rentals, Other Golf related2,137 2,819 2,802 5,096 4,344 3,748 20,946 36,200 44,946 Golf Lessons 220 350 330 390 420 1,025 2,735 7,575 6,010 Income - Golf Schools - - 930 570 450 - 1,950 1,200 3,150 Total Member Dues 65,770 63,223 57,544 58,303 58,455 59,444 362,739 1,153,655 732,663 Other Member Income - - - - 99 43 142 - 142 Swim/Tennis Revenues 28,760 16,054 24,118 48,351 23,168 24,304 164,755 322,640 327,305 Income - Other (non - golf)15 4 - 3 949 1 972 - 972 Merchandise, net of discounts 8,602 6,399 9,316 13,809 29,093 28,723 95,942 261,489 256,015 Food and Beverage, net of discounts 38,616 32,146 47,092 46,781 67,435 71,663 303,733 813,575 770,658 Total Revenues 170,724 146,459 189,856 227,455 259,180 256,399 1,250,073 3,745,014 3,082,278 Cost of Sales:COS - Golf- - - - - - - 660 - COS - Group Services Golf414 - 304 - 212 234 1,164 - 1,204 COS - Golf Lessons 100 299 - 312 336 820 1,867 6,818 4,815 COS - Golf Schools - - - - 1,560 - 1,560 - 1,560 COS - Service Commissions 15,157 13,664 21,884 24,113 21,048 16,172 112,038 185,460 213,378 COS - Merchandise, net of discounts 6,471 8,132 7,074 7,232 19,294 20,215 68,418 163,923 165,392 COS - Food & Beverage 18,423 14,376 18,247 18,347 28,106 26,580 124,079 273,305 320,161 Total Cost of Sales 40,565 36,471 47,509 50,004 70,556 64,021 309,126 630,166 706,510 Gross Profit 130,159 109,988 142,347 177,451 188,624 192,378 940,947 3,114,849 2,375,768 Operating Expenses:Payroll 122,653 120,370 134,959 149,276 145,137 129,860 802,255 1,667,026 1,564,796 Employee Benefits 28,945 26,612 27,453 30,821 30,591 30,383 174,805 394,021 343,629 Employee Related 2,203 2,964 2,422 5,651 2,550 2,592 18,382 49,537 41,894 Professional Fees - - - - - 1 1 300 1 Advertising & Marketing5,325 6,284 5,908 6,820 8,621 12,094 45,052 47,900 62,900 Repair & Maintenance 26,096 37,763 66,619 74,581 38,975 10,639 254,673 545,025 435,523 Operating Expenses 26,874 19,567 17,787 27,648 25,215 27,045 144,136 304,467 275,581 Total Operating Expenses 212,096 213,560 255,148 294,797 251,089 212,614 1,439,304 3,008,275 2,724,324 Operating Profit(81,937) (103,572) (112,801) (117,346) (62,465) (20,236) (498,357) 106,573 (348,556) Leases - Carts 8,250 - 16,500 - 19,597 - 44,347 99,000 99,000 Leases - Equipment20,377 23,771 20,377 22,074 22,267 22,074 130,940 251,568 251,568 Utilities 112,444 111,463 111,776 109,530 114,039 117,277 676,529 1,144,898 1,135,536 Fixed Operating Expenses 141,071 135,234 148,653 131,604 155,904 139,351 851,817 1,495,466 1,486,104 Gross Operating Profit(223,008) (238,806) (261,454) (248,950) (218,369) (159,587) (1,350,174) (1,388,892) (1,834,660) Insurance 88 88 97 97 97 97 564 1,613 1,380 Fees, Permits & Licenses 84 102 - 1 - 156 343 - 343 Base Management Fees 12,000 12,000 12,000 12,000 12,000 12,000 72,000 144,000 144,000 Bad Debt300 - 42 - - 8 350 - 350 Total Other Expenses 12,472 12,190 12,139 12,098 12,097 12,261 73,257 145,613 146,073 Net Operating Income (Loss)(235,480) (250,996) (273,593) (261,048) (230,466) (171,848) (1,423,431) (1,534,505) (1,980,733) 02/06/2017 ATTACHMENT D-3 ACTUAL BUDGET ACTUAL BUDGET MONTH MONTH Y-T-D Y-T-D FOOD & BEVERAGE REVENUE 71,663 89,250 303,732 316,650 TOTAL REVENUES 71,663 89,250 303,732 316,650 COST OF SALES 26,580 30,278 124,072 105,835 PAYROLL & BENEFITS 41,500 34,843 223,642 202,440 OPERATING EXPENSES 8,974 10,050 38,667 42,800 NET INCOME (LOSS) (5,391) 14,079 (82,649) (34,425) EL CONQUISTADOR INCOME STATEMENT CONSOLIDATED - RESTAURANT/GRILLE - DECEMBER 2016 02/06/2017 ATTACHMENT E December YTD Financial Status FY 2016/2017 Water Utility Fund % Budget Completion through December --- 50% % Actuals YE % Variance to Budget to Budget REVENUES: CHARGES FOR SERVICES 1,712,634 3,043,800 56.3% 3,095,000 1.7% INTEREST INCOME (40,802) 72,000 -56.7% 13,348 -81.5% MISCELLANEOUS 12,799 - 0.0% 13,000 0.0% WATER SALES 6,590,769 11,961,395 55.1%12,146,000 1.5% TOTAL REVENUES 8,275,399 15,077,195 54.9% 15,267,348 1.3% % Actuals YE % Variance to Budget to Budget EXPENSES: ADMINISTRATION 6,500,313 10,928,027 59.5% 10,899,513 -0.3% WATER RESOURCES & PLANNING 714,561 4,112,075 17.4% 4,112,075 0.0% PRODUCTION 1,298,057 2,609,998 49.7% 2,609,998 0.0% DISTRIBUTION 560,915 1,109,798 50.5% 1,055,768 -4.9% OTHER FINANCING USES 2,942 2,942 100.0%2,942 0.0% TOTAL EXPENSES 9,076,788 18,762,840 48.4% 18,680,296 -0.4% SURPLUS/(DEFICIT) (801,389) (3,685,645) (3,412,948) Excludes non-cash outlays for depreciation & amortization * Year-end estimates are subject to further revision Year End Estimate * Budget Year End Estimate * Actuals thru 12/2016 Actuals thru 12/2016 Budget F:\BUDGET ANALYST\Financial Reports 2016-2017\2Q\Dec\Dec FY17 Fund Update_Water Utility Fund 02/06/2017 ATTACHMENT F December YTD Financial Status FY 2016/2017 Stormwater Utility Fund % Budget Completion through December -- 50% Actuals thru 12/2016 Budget % Actuals to Budget Year End Estimate * YE % Variance to Budget REVENUES: CHARGES FOR SERVICES 637,031 1,303,500 48.9% 1,303,500 0.0% INTEREST INCOME 387 500 77.3%500 0.0% TOTAL REVENUES 637,418 1,304,000 48.9% 1,304,000 0.0% Actuals thru 12/2016 Budget % Actuals to Budget Year End Estimate * YE % Variance to Budget EXPENSES: PERSONNEL 200,765 559,234 35.9% 484,990 -13.3% OPERATIONS & MAINTENANCE 176,758 505,525 35.0% 431,131 -14.7% CAPITAL 85,429 89,000 96.0%177,014 98.9% TOTAL EXPENSES 462,952 1,153,759 40.1% 1,093,135 -5.3% SURPLUS / (DEFICIT) 174,466 150,241 210,865 Excludes non-cash outlays for depreciation * Year-end estimates are subject to further revision F:\BUDGET ANALYST\Financial Reports 2016-2017\2Q\Dec\Dec FY17 Fund Update_SW Utility Fund 02/06/2017 ATTACHMENT GConsolidated Year-to-Date Financial Report through December, 2016FY 2016/2017FY 16/17 Capital Leases/Left in AccountsBegin Bal. Transfer OutThru Dec 2016General Fund - Unassigned 9,082,690 15,936,134 - 15,936,134 664,638 10,796,581 3,604,526 146,321 - - 15,212,066 9,806,759 General Fund - Assigned 1,441,862 - 1,441,862 Highway Fund - Restricted 2,028,184 1,577,772 - 1,577,772 38,032 910,618 523,260 585,792 - - 2,057,702 1,548,255 Seizure & Forfeiture - Justice/State 10,540 81,776 - 81,776 - 32,005 1,111 - - - 33,115 59,200 Bed Tax Fund - Committed 492,377 384,977 - 384,977 258,528 122,113 132,404 - - - 513,045 364,310 Impound Fee Fund 45,813 18,600 - 18,600 - 27,450 - - - - 27,450 36,963 Community Center Fund 161,744 2,612,174 - 2,612,174 175,288 358,884 2,598,396 77,172 - - 3,209,740 (435,822) Municipal Debt Service Fund 62,486 90,132 471,472 561,604 - - 4,550 - - 513,857 518,407 105,682 Oracle Road Debt Service Fund 6,968 161,124 - 161,124 - - 250 - - 158,351 158,601 9,491 Alternative Water Resources Dev Impact Fee Fund 5,040,292 888,518 - 888,518 - - 70,162 14,504 - - 84,666 5,844,145 Potable Water System Dev Impact Fee Fund 5,068,238 433,824 - 433,824 - - - - - 247,510 247,510 5,254,552 Townwide Roadway Development Impact Fee Fund 3,215,256 263,259 - 263,259 - - - - - - - 3,478,515 Parks & Recreation Impact Fee Fund 322,358 152,264 - 152,264 - - - - - - - 474,621 Library Impact Fee Fund 49,680 150,000 - 150,000 - - - 199,680 - - 199,680 - Police Impact Fee Fund 333,541 85,382 - 85,382 - - - - - - - 418,923 General Government Impact Fee Fund 3,515 5 - 5 - - - - - - - 3,520 General Government CIP Fund 719,009 7,622 492,668 500,290 - 44,485 837 432,862 - - 478,184 741,114 PAG/RTA Fund 621,982 753,209 - 753,209 - 37,877 - 700,907 - - 738,785 636,407 Water Utility14,138,749 8,275,399 - 8,275,399 2,942 1,416,883 3,562,373 593,915 - 3,500,676 9,076,788 13,337,359 Stormwater Utility272,747 637,418 - 637,418 - 200,765 176,758 85,429 - - 462,952 447,213 Fleet Fund 569,439 970,369 - 970,369 - 45,622 227,311 498,425 - - 771,358 768,450 Benefit Self Insurance Fund 31,200 1,390,118 - 1,390,118 - - 1,656,021 1,502 - - 1,657,523 (236,206) Recreation In-Lieu Fee Fund 15,718 - - - - - - - - - - 15,718 Energy Efficiency Project Fund - - - - - - - - - - - - Capital Project Bond Fund - - - - - - - - - - - - Total 43,734,388 34,870,077 964,140 35,834,217 1,139,428 13,993,281 12,557,958 3,336,510 - 4,420,394 35,447,572 44,121,032 Total OutPersonnel O&M Capital ContingencyFund RevenueOther Fin Sources/TfrsTotal InDebt ServiceF:\BUDGET ANALYST\Financial Reports 2016-2017\2Q\Dec\Attachment G - Summary All Funds02/06/2017 ATTACHMENT HGeneral Fund Local Sales Tax CollectionsFY 2016/17CATEGORY JULYAUGSEPOCTNOVDECJANFEBMARAPRMAYJUNETOTALConstruction Sales Tax 199,573 188,622 464,738 331,337 302,776 310,738 1,797,784 Utility Sales Tax 259,897 319,698 294,983 273,535 216,045 210,750 1,574,908 Retail Sales Tax 498,390 460,006 467,191 491,196 495,453 598,150 3,010,386 All Other Local Sales Tax *191,490 170,598 181,484 157,224 196,370 185,762 1,082,928 TOTAL 1,149,350$ 1,138,924$ 1,408,396$ 1,253,292$ 1,210,644$ 1,305,400$ 7,466,006$ FY 2015/16CATEGORY JULYAUGSEPOCTNOVDECJANFEBMARAPRMAYJUNETOTALConstruction Sales Tax 193,497 160,759 190,812 234,763 222,548 254,307 260,568 107,429 263,734 235,835 109,928 173,567 2,407,746 Utility Sales Tax 257,552 312,494 304,666 286,667 243,827 195,345 242,200 268,984 222,718 193,630 196,712 205,330 2,930,124 Retail Sales Tax 441,557 415,209 393,690 403,193 413,231 525,645 688,527 426,418 433,139 511,289 472,688 411,589 5,536,174 All Other Local Sales Tax *239,739 229,766 182,484 216,361 270,637 276,937 295,738 201,982 259,537 325,493 273,582 263,425 3,035,681 TOTAL 1,132,346$ 1,118,228$ 1,071,652$ 1,140,984$ 1,150,242$ 1,252,234$ 1,487,032$ 1,004,813$ 1,179,127$ 1,266,247$ 1,052,910$ 1,053,911$ 13,909,725$ * Note: Does not include cable franchise fees or sales tax audit revenuesF:\BUDGET ANALYST\Financial Reports 2016-2017\2Q\Dec\Attachment H - Gen Fund Local Sales Tax02/06/2017    Town Council Regular Session Item # 2. a. Meeting Date:02/15/2017   Requested by: Patty Hayes  Submitted By:Patty Hayes, Community Development & Public Works Department:Community Development & Public Works Information SUBJECT: RESOLUTION NO. (R)17-05, DECLARING THE PROPOSED AMENDMENTS TO CHAPTER 28, SECTIONS 28.4 AND 28.5 AND OTHER SECTIONS OF THE ORO VALLEY ZONING CODE REGARDING TAGLINES ON WALL SIGNS PROVIDED AS EXHIBIT "A" WITHIN THE ATTACHED RESOLUTION AND FILED WITH THE TOWN CLERK, A PUBLIC RECORD RECOMMENDATION: Staff recommends approval. EXECUTIVE SUMMARY: This is a procedural item to declare the draft ordinance a matter of public record. The draft ordinance has been posted online and made available in the Town Clerk's Office. If the final version is adopted, as approved by Town Council, it will be made available in the same manner. BACKGROUND OR DETAILED INFORMATION: Once adopted by Town Council, this proposed resolution will become a public record and will save the Town on advertising costs since the Town will forgo publishing the entire draft ordinance in print form. The current draft version of the ordinance has been posted on the Town's website and a printed copy is available for public review in the Town Clerk's Office. Once adopted, the final version will be published on the Town's website. FISCAL IMPACT: The Town will save on advertising costs by meeting publishing requirements by reference, without including the pages of the amendments. SUGGESTED MOTION: I MOVE to (adopt or deny) Resolution No. (R)17-05, declaring the proposed I MOVE to (adopt or deny) Resolution No. (R)17-05, declaring the proposed amendments to Chapter 28, Sections 28.4, 28.5 and other related sections of the Oro Valley Zoning Code Revised related to Taglines on Wall Signs, attached hereto as "Exhibit A" and filed with the Town Clerk, a public record.   Attachments (R)17-05 Declaring Public Record  C:\Windows\TEMP\BCL Technologies\easyPDF 7\@BCL@042AE582\@BCL@042AE582.doc Town of Oro Valley Attorney’s Office/ca/072612 RESOLUTION NO. (R)17-05 A RESOLUTION OF THE MAYOR AND COUNCIL OF THE TOWN OF ORO VALLEY, ARIZONA, DECLARING AS A PUBLIC RECORD THAT CERTAIN DOCUMENT TO BE PLACED WITHIN CHAPTER 28, “SIGNS”, SECTION 28.4.89 AND SECTION 28.5.B.14, OF THE ORO VALLEY ZONING CODE REVISED AND ENTITLED THE “TAGLINE” AND “WALL SIGNS”;, ATTACHED HERETO AS EXHIBIT “A” AND FILED WITH THE TOWN CLERK BE IT RESOLVED BY THE MAYOR AND COUNCIL OF THE TOWN OF ORO VALLEY, ARIZONA, that certain document of the Oro Valley Zoning Code, entitled Chapter 28, “Signs”, Section 28.4.89, “Tagline” and Section 28.5.B.14, “Wall Signs” is attached hereto as Exhibit “A”, three copies of which are on file in the Office of the Town Clerk, is hereby declared to be a public record, and said copies are ordered to remain on file with the Town Clerk. PASSED AND ADOPTED by the Mayor and Town Council of the Town of Oro Valley, Arizona, this 15 th day of February, 2017. TOWN OF ORO VALLEY Dr. Satish I. Hiremath, Mayor ATTEST:APPROVED AS TO FORM : Michael Standish, Town Clerk Tobin Sidles, Legal Services Director Date: Date: C:\Windows\TEMP\BCL Technologies\easyPDF 7\@BCL@042AE582\@BCL@042AE582.doc Town of Oro Valley Attorney’s Office/ca/072612 EXHIBIT “A” 28.4.89 TAGLINE AN ACCESSORY WALL SIGN CONTAINING A GROUPING OF LETTERS OR CHARACTERS BUILT INTO A SINGLE PAN CHANNEL OR REVERSE PAN CHANNEL PLATFORM THAT CONTAINS MODIFIERS OR IS USED TO CONVEY INFORMATION RELATING TO THE BUSINESS SUCH AS GOODS, SERVICES, PRODUCTS OR BUSINESS ASSOCIATES. Note: The existing definitions following the new Tagline definition shall be renumbered. 28.5.B. 14. Wall Sign a. Definition: Any sign which is fastened, attached, connected, or supported in whole or in part by a building or structure other than a sign structure which is supported wholly by the ground with the exposed face of the sign in a plane parallel to the plane of the wall. I.A wall sign shall consist of individual character letters (pan channel or reverse pan channel). II.Only individual logos may utilize cabinet sign type with a translucent sign face. III.Wall signs may include the name of the business, a trademarked logo, TAGLINE, and modifiers, if needed, to further clarify the goods or services available on the premises. b.Quantity: I.No more than two (2) elevations may contain a wall sign. II.If a single tenant occupies an end unit or entire freestanding building, there may be signs on three (3) elevations, but only two (2) elevations may have illuminated wall signs. III.“End unit” refers to the end unit of a building in the final phase of a development. This section has been reformatted and grouped into subject matter. New code language in ALL CAPS, strikethrough used for language to be removed C:\Windows\TEMP\BCL Technologies\easyPDF 7\@BCL@042AE582\@BCL@042AE582.doc Town of Oro Valley Attorney’s Office/ca/072612 c. Area of Sign: For building elevations containing wall signs, a sign may be: I.Twenty-four (24) square feet, with no single wall sign containing more than one (1) square foot of sign for each linear foot of building frontage, for a maximum sign area of one hundred fifty (150) square feet. II.Wall signs for building elevations further than three hundred (300) feet from the street may contain no more than one and one-half (1-1/2) square feet of sign area for each linear foot of frontage, for a maximum sign area of two hundred (200) square feet. III.Where businesses do not possess individual frontages, each may maintain an individual sign; however, the maximum wall sign square footage shall not be exceeded. IV.TAGLINES ARE NOT TO EXCEED THIRTY-FIVE (35%) PERCENT OF THE ACTUAL AREA OF THE MAIN WALL SIGN, AS PERMITTED IN THIS SECTION. V.May not project more than eight (8) inches from the wall on which the sign is mounted. d.Height: No wall sign shall extend above the roofline of a building. e. Location: Shall only be placed on the building elevations or at the main entrance of a business which the sign identifies. f.Illumination: I.Individual letters may be non-illuminated, halo illuminated or internally illuminated. II.Cabinet-type signs shall only emit light through the logo. III.TAGLINES MAY BE HALO OR INTERNALLY ILLUMINATED AND SHALL ONLY EMIT LIGHT THROUGH A TRANSLUCENT MATERIAL OVER CUT OUT LETTERS OR CHARACTERS. IV.The standards of Section 28.3.B shall apply.    Town Council Regular Session Item # 2. b. Meeting Date:02/15/2017   Requested by: Patty Hayes  Submitted By:Patty Hayes, Community Development & Public Works Department:Community Development & Public Works Information SUBJECT: PUBLIC HEARING: ORDINANCE NO. (O)17-02, AMENDING CHAPTER 28, SECTIONS 28.4 AND 28.5 AND OTHER SECTIONS OF THE ZONING CODE REGARDING TAGLINES FOR WALL SIGNS RECOMMENDATION: The Planning and Zoning Commission recommends approval of the Zoning Code amendment related to the use of Taglines as part of wall signs, as provided in Attachment 1. EXECUTIVE SUMMARY: The purpose of this request is to consider a Zoning Code Amendment related to a component of wall signs referred to as “Taglines”. Taglines are a smaller element of a wall sign that businesses usually place near the name of their company to provide additional information about the business, as shown in the examples in Attachment 2. The goal of the code amendment is to align the Zoning Code with past sign permit practices and the Planning and Zoning Administrator’s interpretation written in July 2016 (Attachment 3). Key elements of the proposed code amendment are as follows:   •          Clarification that Taglines will be allowed •          Define Taglines •          Establish size standards that do not increase the overall permitted wall sign area   The Zoning Code Amendment was considered by the Planning and Zoning Commission at a public hearing on December 6, 2016. At the conclusion of the Public Hearing, the Planning and Zoning Commission recommended approval of the Zoning Code Amendment provided in Attachment 1.   BACKGROUND OR DETAILED INFORMATION: BACKGROUND OR DETAILED INFORMATION: The current Zoning Code language requires wall signs to be primarily made of individual letters except for logos which may be made in a cabinet style.  The Taglines are generally constructed in a manner that is similar to an individual letter of a wall sign but has also been considered to be similar to a cabinet style of sign. Taglines are essentially a hybrid type of sign, therefore, in the past, the use of Taglines was allowed or not allowed depending on the interpretation of the code.    The inconsistency in allowing the use of these types of signs has created confusion and uncertainty among local businesses and their sign companies.   The primary goal of this amendment is to clarify that Taglines are allowed within defined parameters of the proposed code.   DISCUSSION/ANALYSIS:   In order to gain a better understanding of how Taglines are defined and regulated, staff conducted a survey of different sign companies and municipalities. Many of the municipalities defined the Tagline sign or something similar in their sign code with different terms while others make no mention of them.   Sizes vary in each municipality in terms of square footage while a few regulate them as a part of the entire square footage of the wall sign. The sign companies that were surveyed recommend that a Tagline should not exceed 30%-40% of the actual area of the main sign size.   Limitations on the size of a Tagline ensures that a Tagline remains subordinate to the primary wall sign.    After completing the research, the following three main components were placed in the proposed code amendment:   1.         Clarification that Taglines will be allowed.    2.         A definition which will read: An accessory wall sign containing a grouping of letters or characters built into a single pan channel or reverse pan channel platform that contains modifiers or is used to convey information relating to the business such as goods, services, products or business associates.    3.         Size limits: Taglines may not exceed thirty-five (35%) percent of the actual area of the main wall sign.   Staff determined that the 35% maximum size was a reasonable ratio that would keep Tagline signs subordinate to the main sign but allow still allow for clear readability.  The survey of existing Tagline types of signs in the Town found that 35% is generally the maximum size of most existing signs and others that currently exceed that size would be allowed to remain as legal non-conforming signs.     Allowing businesses to use Taglines as part of their wall sign will not increase the overall permitted sign area. The existing size limits defined in the code will encompass Taglines and all other components of a wall sign.  As a result, this action does not impact the amount of sign coverage.    General Plan   The Your Voice, Our Future General Plan provides the following goals, policies and actions:   Goal Q: A built environment that creatively integrates landscape, architecture, open space and conservation elements to increase the sense of place, community interaction and quality of life.   Policy Land Use 6: Maintain the small town, neighborly character and improve the design and safety of the built environment.   Action item #125: Maintain the unique character of Oro Valley by studying and updating: Signage regulations to emphasize identification and direction over advertising goods or services to maintain compatibility and minimal intrusiveness.   This new code amendment meets this goal by:   1.         Allowing businesses to use Taglines as a small component of the main identification sign to provide additional direction and to identify their goods and services.   2.         Regulating the size of a Tagline size to maintains compatibility and minimizes intrusiveness.   Planning and Zoning Commission   On December 6, 2016 the Planning and Zoning Commission held a public hearing to review the proposed code amendment.  The following items were discussed at that meeting:  Concern that a Tagline would be used for advertising rather than identification as stated in the General Plan. 1. Staff explained that information a business could place on the Tagline is limited by the definition of Taglines which states it is to be used for "modifiers".  The zoning code defines "modifier" as “a word on a sign describing uses and activities other than the business name”.  The second clarification was the limit of the size of a Tagline which is 35% of the main wall sign size - and not the overall allowed sign area. For example - if the main wall sign for a business was 50 square feet, then the Tagline would be limited to only 35% of that sign area which would be 17 square feet.  The use of Taglines does not expand the overall size of the permitted sign area. 2. At the conclusion of the public hearing, the Planning and Zoning Commission recommended approval of the code amendment as proposed.   The Planning and Zoning Commission Staff Reports and Draft Minutes are provided as Attachments 4 and 5. FISCAL IMPACT: N/A SUGGESTED MOTION: I MOVE to approve Ordinance No. (O)17-02 amending the Zoning Code Chapter 28 and related sections of the zoning code, allowing Taglines as part of wall signs.                                                                                               OR   I MOVE to deny Ordinance No. (O)17-02, amending the Zoning Code Chapter 28 and related sections of the zoning code, allowing Taglines as part of wall signs, finding that ___________________________. Attachments (O)17-02 Amending Chapter 28 of the Zoning Code  Attachment 2 Examples of Tagline Types of Signs  Attachment 3 Interpretation  Attachment 4 Planning and Zoning Commission Staff Report and Attachments  Attachment 5 Planning and Zoning Commission Draft Minutes  C:\Windows\TEMP\BCL Technologies\easyPDF 7\@BCL@9814595D\@BCL@9814595D.doc ORDINANCE NO. (O)17-02 AN ORDINANCE OF THE TOWN OF ORO VALLEY, ARIZONA, AMENDING THE ORO VALLEY ZONING CODE REVISED, CHAPTER 28, SIGNS, BY ADDING NEW SUBSECTION 28.4.89 “TAGLINE” AND AMENDING SECTION 28.5.B.14 WALL SIGNS; REPEALING ALL RESOLUTIONS, ORDINANCES AND RULES OF THE TOWN OF ORO VALLEY IN CONFLICT THEREWITH; PRESERVING THE RIGHTS AND DUTIES THAT HAVE ALREADY MATURED AND PROCEEDINGS THAT HAVE ALREADY BEGUN THEREUNDER WHEREAS, on March 13, 1981, the Mayor and Council approved Ordinance (O)81-58, which adopted that certain document entitled “Oro Valley Zoning Code Revised (OVZCR); and WHEREAS, the Town deems it necessary to amend the Oro Valley Zoning Code Revised, Chapter 28, “Signs”, by adding Section 28.4.89 “Tagline” and amending section 28.5.B.14 to establish standards for a component of wall signs known as taglines; and WHEREAS, the Planning and Zoning Commission held a meeting on December 6, 2016, and voted to recommend approval of amending Chapter 28, Signs, by adding Section 28.4.89 “Tagline” and amending section 28.5.B.14; and NOW, THEREFORE BE IT ORDAINED by the Mayor and Council of the Town of Oro Valley, Arizona, that: SECTION 1.That certain document entitled Chapter 28, Signs, Section 28.4.89, Taglines, and Section 28.5.B.14 of the Oro Valley Zoning Code Revised, attached hereto as Exhibit “A” to establish standards for a component of wall signs known as taglines is hereby approved. SECTION 2.All Oro Valley ordinances, resolutions or motions and parts of ordinances, resolutions or motions of the Council in conflict with the provision of this Ordinance are hereby repealed. PASSED AND ADOPTED by the Mayor and Council of the Town of Oro Valley, Arizona, this 15th day ofFebruary, 2017. TOWN OF ORO VALLEY Dr. Satish I. Hiremath, Mayor C:\Windows\TEMP\BCL Technologies\easyPDF 7\@BCL@9814595D\@BCL@9814595D.doc Town of Oro Valley Attorney’s Office/ca/0408112 ATTEST:APPROVED AS TO FORM : Michael Standish, Town Clerk Tobin Sidles, Legal Services Director Date: Date: C:\Windows\TEMP\BCL Technologies\easyPDF 7\@BCL@9814595D\@BCL@9814595D.doc Town of Oro Valley Attorney’s Office/ca/0408113 EXHIBIT “A” 28.4.89 TAGLINE AN ACCESSORY WALL SIGN CONTAINING A GROUPING OF LETTERS OR CHARACTERS BUILT INTO A SINGLE PAN CHANNEL OR REVERSE PAN CHANNEL PLATFORM THAT CONTAINS MODIFIERS OR IS USED TO CONVEY INFORMATION RELATING TO THE BUSINESS SUCH AS GOODS, SERVICES, PRODUCTS OR BUSINESS ASSOCIATES. Note: The existing definitions following the new Tagline definition shall be renumbered. 28.5.B. 14. Wall Sign a. Definition: Any sign which is fastened, attached, connected, or supported in whole or in part by a building or structure other than a sign structure which is supported wholly by the ground with the exposed face of the sign in a plane parallel to the plane of the wall. I.A wall sign shall consist of individual character letters (pan channel or reverse pan channel). II.Only individual logos may utilize cabinet sign type with a translucent sign face. III.Wall signs may include the name of the business, a trademarked logo, TAGLINE, and modifiers, if needed, to further clarify the goods or services available on the premises. b.Quantity: I.No more than two (2) elevations may contain a wall sign. II.If a single tenant occupies an end unit or entire freestanding building, there may be signs on three (3) elevations, but only two (2) elevations may have illuminated wall signs. III.“End unit” refers to the end unit of a building in the final phase of a development. c. Area of Sign: For building elevations containing wall signs, a sign may be: I.Twenty-four (24) square feet, with no single wall sign containing more than one (1) square foot of sign for each linear foot of building frontage, for a maximum sign area of one hundred fifty (150) square feet. This section has been reformatted and grouped into subject matter. New code language in ALL CAPS, strikethrough used for language to be removed C:\Windows\TEMP\BCL Technologies\easyPDF 7\@BCL@9814595D\@BCL@9814595D.doc Town of Oro Valley Attorney’s Office/ca/0408114 II.Wall signs for building elevations further than three hundred (300) feet from the street may contain no more than one and one-half (1-1/2) square feet of sign area for each linear foot of frontage, for a maximum sign area of two hundred (200) square feet. III.Where businesses do not possess individual frontages, each may maintain an individual sign; however, the maximum wall sign square footage shall not be exceeded. IV.TAGLINES ARE NOT TO EXCEED THIRTY-FIVE (35%) PERCENT OF THE ACTUAL AREA OF THE MAIN WALL SIGN, AS PERMITTED IN THIS SECTION. V.May not project more than eight (8) inches from the wall on which the sign is mounted. d.Height: No wall sign shall extend above the roofline of a building. e. Location: Shall only be placed on the building elevations or at the main entrance of a business which the sign identifies. f.Illumination: I.Individual letters may be non-illuminated, halo illuminated or internally illuminated. II.Cabinet-type signs shall only emit light through the logo. III.TAGLINES MAY BE HALO OR INTERNALLY ILLUMINATED AND SHALL ONLY EMIT LIGHT THROUGH A TRANSLUCENT MATERIAL OVER CUT OUT LETTERS OR CHARACTERS. IV.The standards of Section 28.3.B shall apply. EXAMPLES OF TAGLINE SIGNS SIGN CODE AMMENDMENT (OV1602882) Attachment 2 Taglines are the portions of the sign that reads: Family Restaurant Haircuts Dry Cleaning and Laundry Town of Oro Valley Community Development and Public Works Oro Valley, it’s in our nature. 11000 N. La Cañada Drive, Oro Valley, Arizona 85737 www.orovalleyaz.gov | phone: (520) 229-4800 | fax: (520) 742-1022 Date: July 22, 2016 Subject: Interpretation – “Pill Box” style wall signs (OV1601735) REQUEST A zoning interpretation request was submitted by Addisigns Inc. on behalf of a client who wishes to use a “Pill Box” sign. The aim is to discover how the use of a “Pill Box” sign is governed by the zoning code. Attached is an illustration of a “Pill Box” which is a sign type that has been utilized in the region. Over the years, the regulation of Pill Box signs has been inconsistent in Oro Valley. The purpose of this interpretation is to ensure consistency until the zoning code is amended. APPLICABLE ZONING REFERENCES There are no specific zoning code references to a “Pill Box” sign. Section 28.4 (Definitions and Sign Types) of the Zoning Code provides the following related definitions: Cabinet Sign “A three (3) dimensional structure which includes a frame, borders and sign panel face and may include internal illumination upon which the sign logos are placed or etched, and is architecturally integrated with the building.” Pan-Channel Letter “A dimensional character fabricated to form a pan (i.e., a back and sides). The pan is formed in the shape of a character. The sides are strips of the same material fastened to the back. The open end of the pan is usually capped by a character cut from translucent acrylic, and is known as the face. Neon or low-voltage lights are then installed inside the pan to illuminate the face.” Wall Signs “A wall sign shall consist of individual character letters (pan channel or reverse pan channel). Only individual logos may utilize cabinet sign type with translucent face”. INTERPRETATION Currently, the Zoning Code limits wall signs to individual characters and restricts cabinet style wall signs to trademarked logos only. The intent is to accomplish the following: Attachment 3 Oro Valley, it’s in our nature. 11000 N. La Cañada Drive, Oro Valley, Arizona 85737 www.orovalleyaz.gov | phone: (520) 229-4800 | fax: (520) 742-1022 1. Favor the aesthetic look of pan channel construction 2. Disallow use of cabinet style signs due to the generally undesirable appearance 3. Limit the size and scale of all wall signs to not dominate the building façade Though “Pill-box” style wall signs are not exclusively considered cabinet signs or pan channel letter signs, they are more closely related in design to the latter. They are constructed in a similar fashion, having both a back and sides (or pan) with a face covering the internal lighting. As such, “Pill-box” style are considered a permitted sign type as a pan channel wall-sign. To meet the intent of the code, a size limit is necessary to ensure that “Pill-box” signs are appropriate in scale. In keeping with industry standard and existing “Pill Box” signs in Oro Valley, “Pill-box” signs shall not exceed thirty-five (35%) percent of the otherwise allowable area of the wall sign, as permitted in Section 28.5.B.14.c Please note, Planning Staff will be pursuing a code amendment to the Zoning Code related to “Pill- box” style signs to formalize regulations. APPEALS Persons aggrieved by a Zoning Interpretation may file an appeal to the Board of Adjustment within twenty (20) days from the date it is published on the Town’s website, in accordance with Section 21.6.G of the Town of Oro Valley Zoning Code. December 6, 2016 Planning and Zoning Commission Meeting 1 MINUTES ORO VALLEY PLANNING AND ZONING COMMISSION REGULAR SESSION December 6, 2016 ORO VALLEY COUNCIL CHAMBERS 11000 N. LA CANADA DRIVE REGULAR SESSION AT OR AFTER 6:00 PM CALL TO ORDER Chair Leedy called the meeting to order at 6:00 p.m. ROLL CALL PRESENT:Chair Bill Leedy Vice-Chair Charlie Hurt Commissioner Tom Drzazgowski Commissioner Tom Gribb Commissioner Bob Swope Commissioner Greg Hitt EXCUSED:Commissioner Melanie Barrett OTHER STAFF PRESENT: Joe Andrews, Chief Civil Deputy Attorney Lou Waters, Town Council Vice-Mayor Joe Hornat, Town Council Member PLEDGE OF ALLEGIANCE Chair Leedy led the Commission and audience in the Pledge of Allegiance. CALL TO AUDIENCE No speakers. COUNCIL LIAISON COMMENTS Council Member Joe Hornat commented on the following: - Thank you to Bill Leedy for his leadership and performance with the Planning and Zoning Commission - Thank you to all the commissioners and those that requested reappointment - Reviewed highlights from the Town Council November 16, 2016 meeting December 6, 2016 Planning and Zoning Commission Meeting 2 - Reviewed the Town Council upcoming agenda for December 7, 2016, including new council liaison assignments and reappointments to boards and commissions REGULAR SESSION AGENDA 1.REVIEW AND/OR APPROVAL OF THE NOVEMBER 1, 2016 REGULAR SESSION MEETING MINUTES MOTION:A motion was made by Charlie Hurt and seconded by Tom Gribb to approve the November 1, 2016 meeting minutes as written. MOTION carried, 6-0. 2.DISCUSSION AND POSSIBLE ACTION ON A ZONING CODE AMENDMENT TO SECTIONS OF CHAPTER 22 AND 27 RELATED TO GENERAL PLAN AMENDMENT PROCEDURES Elisa Hamblin, Long Range Principal Planner, presented the following: - Align current Zoning Code with the Your Voice, Our Future plan - Amend the current Zoning Code sections on General Plan Amendments - Amendment types and procedures - Adoption of General Amendments/Special Area Policies MOTION:A motion was made by Tom Drzazgowski and seconded by Charlie Hurt to recommend approval of the Zoning Code Amendment to Sections 22.2 and 22.15 and all other references to outdated terminology to align with the Your Voice, Our Future General Plan with the modification to Section 22.2.d.4.b as shown on the slide. MOTION carried, 6-0. 3.PUBLIC HEARING: DISCUSSION AND POSSIBLE ACTION ON A ZONING CODE AMENDMENT TO CHAPTER 28 RELATED TO WALL SIGNS. THE AMENDMENT MAY INCLUDE CHANGES TO OTHER RELATED SECTIONS OF THE ZONING CODE, OV1602882 Anthony Cisneros, Planning Intern, presented on the following: - Amendment to add taglines on signs to allow identification of type of business - Wall signs and establishing standards - Taglines permitted use and limited size - Proportionality of taglines Concerns raised by the commission: - How tagline advertising will be enforced. Patty Hayes, Senior Planning Technician, stated the size of the tagline will reduce using the areas as advertising. -Preventing businesses from advertising prices or services in the tagline. Chad Daines, Principal Planner, stated the definition of the tagline doesn't permit advertisement of December 6, 2016 Planning and Zoning Commission Meeting 3 prices and services. The guidance from the General Plan describes the general purpose of signs. - Joe Andrews, Chief Civil Deputy Attorney, spoke on the Gilbert vs. Reed case. The city was sued and lost because it told businesses specifically what they could or could not place on their signs. We can limit somewhat based on guidance. A trademarked logo is allowed as part of its allowable signage allotment. -The area provides a way to identify their business without additional signage; it allows for a portion of their signed to be used differently. Chair Leedy opened the public hearing. Mr. Dave Perry, President/CEO of the Greater Oro Valley Chamber of Commerce, spoke in support of Agenda Item 3. - The 35% limitation is going to drive the verbiage on the signs. - He agrees with Mr. Andrews regarding a potential First Amendment breach if we limit too specifically what is allowed. Chair Leedy closed the public hearing. MOTION:A motion was made by Greg Hitt and seconded by Charlie Hurt to recommend the approval of Zoning Code Amendment in Attachment 2 related to Tagline signs, based on the finding that the request meets the intent of the general plan for signage. MOTION carried, 6-0. Meeting adjourned at 6:36 p.m. Prepared by: Jeanna Ancona Senior Office Specialist I hereby certify that the foregoing minutes are a true and correct copy of the regular session of the Planning and Zoning Commission Oro Valley, Arizona held on the 6th day of December, 2016. I further certify that the meeting was duly called and held and that a quorum was present.    Town Council Regular Session Item # 3. Meeting Date:02/15/2017   Requested by: Shirley Kiel Submitted By:Shirley Kiel, Water Department:Water Information SUBJECT: PUBLIC HEARING: RESOLUTION NO. (R)17-06, AUTHORIZING AND APPROVING INCREASES IN WATER RATES FOR THE ORO VALLEY WATER UTILITY RECOMMENDATION: On November 14, 2016, the Water Utility Commission voted to recommend that Council approve the proposed water rate increases included in the Preferred Financial Scenario. Staff also recommends Council-approval of the rate increases proposed in the Preferred Financial Scenario detailed in the Water Rates Analysis Report dated November 2016. EXECUTIVE SUMMARY: Pursuant to A.R.S. § 9-511.01 the Council adopted a Notice of Intent to increase water rates on December 7, 2016. The Notice of Intent established a public hearing date for February 15, 2017. The Water Rates Analysis Report was made available for public review by placing a copy of the report in the Town Clerk's office, the Water Utility office and on the Water Utility's website. The Notice of Intent was also published in the Daily Territorial on January 18, 2017. The Preferred Financial Scenario found in Appendix A of the Water Rates Analysis Report proposes increases in the potable water and reclaimed water base rates and in the potable water commodity rates. There are no proposed increases in the groundwater preservation fees or the reclaimed water commodity rates. With the proposed rates, the average residential customer using 8,000 gallons of water would see an increase of $0.63 per month, an increase of approximately 1.5%. The average commercial customer uses 57,000 gallons of water and would see an increase of $4.55 per month, an increase of approximately 1.5%. Reclaimed customers would only see a increase in the monthly base rate . The impact for golf courses using reclaimed water would be $21.29 per month, an increase of approximately 0.1%. If the proposed rates are approved, they would become effective on March 17, 2017. BACKGROUND OR DETAILED INFORMATION: In accordance with the Mayor and Town Council Water Policies, Water Utility staff review In accordance with the Mayor and Town Council Water Policies, Water Utility staff review water rates and charges on an annual basis. The Oro Valley Water Utility Commission evaluates staff recommendations based on a rates analysis to assure the recommendations meet Town policies and bond covenants. The Commission voted on a recommendation for the Preferred Financial Scenario in the Water Rates Analysis Report. The pro forma for the Preferred Financial Scenario may be found in Appendix A in the report. These financial projections are for a five-year period; however, water rates are only approved for the first year of this five-year projection period. The following summarizes the proposed changes in water rates for FY 2016-17:  Increase in the potable water and reclaimed water monthly base rates Increase in the potable water commodity rate Increase in the potable construction water rate The following rates will not be changed:  The reclaimed water commodity rates The groundwater preservation fees for potable water and reclaimed water The proposed increase in the potable water base rates and commodity rates will increase the average residential customer's bill by $0.63 per month based on using 8,000 gallons of water. The average commercial customer uses 57,000 gallons of water and will see an increase of $4.55 per month. The proposed increase in the reclaimed water monthlybase rate will increase a golf course's monthly bill by $21.29 regardless of the volume of water used. The proposed water rate increases are in accordance with Mayor and Town Council policy:  Debt service coverage requirement of 1.3 is met or exceeded for all five years. Cash reserve policy requirements are met or exceeded for all five years. The proposed rate increases avoid sudden an large-scale shifts in water rates (no "rate shock") and avoids higher rate increases in future years. Encourages water conservation by providing an incentive to use less water and save money through the existing tiered-rate structure for single family residential customers and irrigation customers. If the proposed rates are approved, these new rates will become effective March 17, 2017. FISCAL IMPACT: The proposed rate increases will generate sufficient revenue to meet the Water Utility's revenue requirements and are designed to maintain the financial stability and fiscal health of the Town's water utility. SUGGESTED MOTION: I MOVE to (approve or deny) Resolution No. (R)17-06 authorizing and approving increases in water rates for the Town of Oro Valley Water Utility. Attachments (R)17-06 Rate Increase for FY 2016-17  Water Rates Analysis Report  RESOLUTION NO. (R)17-06 A RESOLUTION OF THE MAYOR AND COUNCIL OF THE TOWN OF ORO VALLEY, ARIZONA,AUTHORIZING AND APPROVING INCREASES IN WATER RATES FOR THE TOWN OF ORO VALLEY WATER UTILITY WHEREAS,pursuant to ARS § 9-511, et seq., the Town has the requisite statutory authority to acquire, own and maintain a water utility for the benefit of the residents within and without the Town’s corporate boundaries; and WHEREAS,pursuant to ARS § 9-511, et seq., the Town finds it necessary to increase water rates, fees and charges for the Oro Valley Water Utility, which increases are described in Exhibit “A” attached hereto; and WHEREAS, on December 7, 2016, Mayor and Council approved Resolution 16-57, providing Notice of Intent to increase water rates, fees and charges; and WHEREAS, on February 15, 2017, Mayor and Council held a Public Hearing to deliberate and vote on the proposed increases in water rates, fees and charges. NOW, THEREFORE, BE IT RESOLVED by the Mayor and Council of the Town of Oro Valley, Arizona, that: SECTION 1. The Oro Valley Water Utility increases in water rates, as described in Exhibit “A” attached hereto and incorporated herein by this reference, are hereby authorized and approved. SECTION 2.The Mayor and other administrative officials of the Town of Oro Valley are hereby authorized to take such steps as are necessary to implement the increases in water rates, fees and charges. PASSED AND ADOPTED by the Mayor and Council of the Town of Oro Valley, Arizona, this 15th day of February, 2017. TOWN OF ORO VALLEY Dr. Satish I. Hiremath, Mayor ATTEST:APPROVED AS TO FORM: Michael Standish, Town Clerk Tobin Sidles, Legal Services Director Date: Date: EXHIBIT “A” METER SIZE (in inches) 5/8 x 3/4 $14.62 3/4 x 3/4 $21.93 1 $36.54 1.5 $73.08 2 $116.94 3 $233.86 4 $365.41 6 $730.83 8 $1,169.32 METER COMMODITY COMMODITY COMMODITY COMMODITY SIZE TIER 1 TIER 2 TIER 3 TIER 4 $2.34 $3.25 $4.53 $6.29 COST PER 1000 GALS.COST PER 1000 GALS.COST PER 1000 GALS.COST PER 1000 GALS. 5/8 x 3/4 0 - 7,000 7,001 - 16,000 16,001 - 32,000 OVER 32,000 3/4 x 3/4 0 - 10,000 10,001 - 24,000 24,001 - 48,000 OVER 48,000 1 0 - 17,000 17,001 - 40,000 40,001 - 80,000 OVER 80,000 1.5 0 - 35,000 35,001 - 80,000 80,001 - 160,000 OVER 160,000 2 0 - 56,000 56,001 - 128,000 128,001 - 256,000 OVER 256,000 3 0 - 112,000 112,001 - 256,000 256,001 - 512,000 OVER 512,000 4 0 - 175,000 175,001 - 400,000 400,001 - 800,000 OVER 800,000 6 0 - 860,000 860,001 - 2,000,000 2,000,001 - 3,500,000 OVER 3,500,000 8 0 - 860,000 860,001 - 2,000,000 2,000,001 - 3,500,000 OVER 3,500,000 $2.34 per 1000 gallons for all water use $ 2.27 per 1000 gallons for all water use POTABLE WATER $ 0.90 per 1000 gallons for all water use RECLAIMED WATER PROPOSED BASE RATES POTABLE & RECLAIMED BASE RATE PROPOSED GROUNDWATER PRESERVATION FEES PROPOSED COMMODITY RATES - POTABLE WATER RESIDENTIAL & IRRIGATION CLASSIFICATIONS COMMERCIAL CLASSIFICATION $ 0.47 per 1000 gallons for all water use MASTER-METERED MULTIFAMILY CLASSIFICATION $2.34 per 1000 gallons for all water use CONSTRUCTION WATER $7.29 per 1000 gallons for all water use PROPOSED COMMODITY RATES - RECLAIMED WATER ALL RECLAIMED WATER USES & CLASSIFICATIONS         TOWN OF ORO VALLEY  WATER UTILITY  WATER RATES ANALYSIS REPORT NOVEMBER 2016  TOWN OF ORO VALLEY  WATER UTILITY  WATER RATES ANALYSIS REPORT  NOVEMBER 2016 ORO VALLEY TOWN COUNCIL    Satish Hiremath, Mayor  Lou Waters, Vice Mayor  Joe Hornat, Council Member  Rhonda Piña, Council Member  Bill Rodman, Council Member  Mary Snider, Council Member  Steve Solomon, Council Member        ORO VALLEY WATER UTILITY COMMISSION    Winston Tustison, Chair  Anne Campbell, Vice Chair  Javier Arriaga, Commission Member  Tom Kibler, Commission Member  Robert Milkey, Commission Member  Shanna Weagle, Commission Member        TOWN STAFF    Daniel Sharp, Interim Town Manager  Stacey Lemos, Finance Director  Philip C. Saletta, P.E., Water Utility Director  Shirley Kiel, Water Utility Administrator  TABLE OF CONTENTS  SECTION TITLE        PAGE  Index of Appendices            i  Executive Summary           1  Introduction            4  Growth Rates            5  Water Use Trends           5  Debt Service            6  Debt Service Coverage Requirements         7  Cash Reserve Policy for Operating Fund         8  Operating Fund            8  Revenue Requirements         10  Alternative Water Resources Development Impact Fee Fund     13  Potable Water System Development Impact Fee Fund     14  Preferred Financial Scenario        15  Recommendation on Water Rates, Fees & Charges     15  Service Fees & Charges         18  Conclusion          18  Appendices  INDEX OF APPENDICES  APPENDIX  A. Preferred Financial Scenario Pro Forma  A‐1   Operating Fund  A‐2   Groundwater Preservation Fee  A‐3   Alternative Water Resources Development Impact Fee Fund  A‐4   Potable Water System Development Impact Fee Fund  A‐5   Summary of all Funds    B. Rate Schedules & Tables for Bill Comparisons for Preferred Financial Scenario  B‐1   Tables for Bill Comparisons by Meter Size ‐ Potable  B‐7   Tables for Bill Comparisons by Meter Size – Reclaimed    C.  5‐Year Capital Improvement Schedules  C‐1   Operating Fund  C‐1   Groundwater Preservation Fee  C‐2   Alternative Water Resources Development Impact Fee Fund  C‐2   Potable Water System Development Impact Fee Fund    D. Assumptions for Preferred Financial Scenario  D‐1   Operating Fund  D‐5   Alternative Water Resources Development Impact Fee Fund  D‐6   Potable Water System Development Impact Fee Fund                            i  - 1 - TOWN OF ORO VALLEY  WATER UTILITY  WATER RATES ANALYSIS REPORT  NOVEMBER 2016      Executive Summary    The functions and duties of the Oro Valley Water Utility Commission include reviewing and  developing recommendations for water revenue requirements, water rates and fee structures. The  Commission annually evaluates staff recommendations based on a rates analysis to assure the  recommendations meet Town policies and bond covenants. Water rates and charges shall be  reviewed annually under Mayor and Town Council Water Policies – II.A.2.b(4).    The Utility has based its financial analysis on the American Water Works Association (AWWA) Cash  Needs Approach. The AWWA is the largest national organization that develops water and  wastewater policies, specifications and rate setting guidelines accepted by both government‐owned  and private water and wastewater utilities worldwide.    This Water Rates Analysis Report contains detailed information on the three funds that comprise the  Oro Valley Water Utility:     Operating Fund   Alternative Water Resources Development Impact Fee Fund (AWRDIF Fund)   Potable Water System Development Impact Fee Fund (PWSDIF Fund)    Each fund is individually analyzed with regard to revenue and revenue requirements. The Utility is  an enterprise of the Town and generates revenue from rates, fees and charges and does not receive  revenue from taxes or other payments from the General Fund.     In accordance with policy, the water rates analysis is prepared annually based on the most up‐to‐ date information available for a five year projection period. Although the analysis is for five years,  any rate increases being considered for approval are only approved for the first year of that five year  projection period.    The Water Utility Commission has made a recommendation for a Preferred Financial Scenario.  Under the Preferred Financial Scenario, the Operating Fund is projected to have an ending cash  balance of $5,582,031 at the end of the five year projection period which meets the cash reserve  requirement. In addition, the debt service coverage ratio of 1.3 is met or exceeded. Operational  needs and capital improvements are included in the analysis. The Preferred Financial Scenario  includes cash funding and new debt to finance capital projects.     The Preferred Financial Scenario also results in financially sound cash balances in the AWRDIF Fund  and the PWSDIF Fund. These cash balances will be used to finance capital projects to meet the  demands of new growth and development.    - 2 - The Preferred Financial Scenario includes five year projections for each fund and evaluates the  impact of future costs and the revenue sources that will be required to meet those costs. The Water  Utility Commission and Water Utility Staff have made the following recommendations on water  rates in the Preferred Financial Scenario for FY 2016‐17:     Increase in the potable water and reclaimed water monthly base rates   Increase in the potable water commodity rates   Increase in the potable construction water rates   No increase in the reclaimed water commodity rate   No increase in the potable water or reclaimed water Groundwater Preservation Fee (GPF)    Current and proposed monthly base rates for both potable and reclaimed water use are provided in  Table 1 below:      Table 1  Meter Size Current Proposed $  (in inches) Base Rate Base Rate Increase  5/8 x 3/4                14.19         14.62   0.43  3/4 x 3/4      21.29         21.93   0.64  1      35.48         36.54   1.06  1.5      70.95         73.08   2.13  2   113.53        116.94   3.41  3   227.05        233.86   6.81  4   354.77        365.41 10.64  6   709.54        730.83 21.29  8 1135.26      1169.32 34.06  Cost per month.    Current and proposed commodity rates and GPF for each 1,000 gallons used are in Table 2 below:    Table 2     Current Proposed $  Customer Classifications Commodity Rate Commodity Rate Increase  Single Family Residential      Tier 1 2.32 2.34 0.02  Tier 2 3.19 3.25 0.06  Tier 3 4.40 4.53 0.13  Tier 4 6.05 6.29 0.24  Irrigation       Tier 1 2.32 2.34 0.02  Tier 2 3.19 3.25 0.06  Tier 3 4.40 4.53 0.13  Tier 4 6.05 6.29 0.24  Commercial 2.32 2.34 0.02  Master Metered Multi‐Family Residential 2.32 2.34 0.02  Turf 2.32 2.34 0.02  Construction 7.05 7.29 0.24  All Reclaimed Classes 2.27 2.27 0.00  Groundwater Preservation Fee – Potable 0.90 0.90 0.00  Groundwater Preservation Fee ‐ Reclaimed 0.47 0.47 0.00  Cost per 1,000 gallons  - 3 - There is a tiered commodity rate structure based upon meter size for potable water for single family  residential and irrigation classifications to encourage water conservation. There is no tiered rate  structure for commercial, multi‐family, construction water or reclaimed water classifications. Multi‐ family and commercial customers have separate irrigation meters that have a tiered rate structure.    The financial impact of the proposed rates for a residential customer using 8,000 gallons of water is  an increase of $0.63 per month. This is a 1.5% increase in the current average monthly water bill of  $40.82.    The average commercial customer with a 2‐inch meter using 57,000 gallons of water will experience  a $4.55 increase per month. This is a 1.5% increase in the current average monthly water bill of  $297.07    Tables providing the financial impact to all customer classifications by meter size may be found in  Appendix B.    The Water Utility presents this Water Rates Analysis Report for the review and consideration of the  Mayor and Council. The Oro Valley Water Utility Commission and Water Utility Staff are  recommending approval of the Preferred Financial Scenario. The Water Utility Commission and  Utility Staff are dedicated to serving the Town of Oro Valley and the customers of its water utility.             - 4 - TOWN OF ORO VALLEY  WATER UTILITY  WATER RATES ANALYSIS REPORT  NOVEMBER  2016      Introduction    The Oro Valley Water Utility was established in 1996 as a self‐supporting enterprise of the Town.   The Utility is comprised of three separate funds that have been established for specific purposes.   The Funds are as follows:     Operating Fund   Alternative Water Resources Development Impact Fee Fund   Potable Water System Development Impact Fee Fund    The Operating Fund is the primary fund for the Utility. Revenue for this fund includes water sales,  service fees, miscellaneous charges and interest income. The Utility does not receive revenue from  taxes or other payments from the Town General Fund. The expenditures managed from this fund  include personnel, operations and maintenance for both potable and reclaimed water systems,  capital costs for existing potable water system improvements and related debt service. The Utility  pays the General Fund for services received including finance, human resources, fleet services,  information technology, legal, insurance and rental of office space. Groundwater Preservation Fee  (GPF) revenue and expenditures are accounted for within the Operating Fund.     The Alternative Water Resources Development Impact Fee Fund (AWRDIF) was established in 1996  to manage capital expenditures related to alternative water resources including reclaimed water  and Central Arizona Project (CAP) water. Revenue for this fund is received from impact fees  collected at the time water meters are purchased and from interest income. Expenditures include  capital repayment obligation charges for the Town’s CAP allotment and infrastructure and  associated debt service to deliver CAP water to the Town for future growth and development.    The Potable Water System Development Impact Fee Fund (PWSDIF) was established in 1996 to  manage capital expenditures related to expansion or growth‐related potable water capital projects  and related debt service. Revenue for this fund is received from impact fees collected at the time  water meters are purchased and from interest income. Expenditures may include wells, pump  stations, reservoirs and mains for the potable water system required to meet the demands of future  growth and development.      The revenue and expenditures of all three funds are combined to determine if the Utility meets the  debt service coverage requirement established in the Mayor and Town Council Water Policies and  current bond covenants. Otherwise, each fund is independent with regard to revenue and expenses.   Pursuant to Arizona Revised Statute (ARS) 9‐463.05 Section B.9., impact fees must be placed in a  separate fund and accounted for separately.  ARS 9‐463.05 Section B.5. states that the impact fees  may not be used for operations and maintenance of existing facilities. Each fund is addressed in  more detail on pages 13 and 14 of the report.    - 5 -     Growth Rates    The Utility’s growth rates have fluctuated over the past several years. Figure 1 illustrates the Utility’s  growth rate of 10.7 percent or 1,902 new metered connections over the last 10 years.      Figure 1    In developing the growth projections, the Community Development staff reviewed the current  housing inventory along with plans that are in the review process and estimated future growth in a  conservative manner. The growth projections used for this report are consistent with the Town’s  financial forecasting and are shown in following table.    Table 3    New Metered Connections 2016‐17 2017‐18 2018‐19 2019‐20 2020‐21  Single Family Residential        230      250       275        225       200 Commercial, Multi‐Family, Irrigation            8        11           7             6         12     Water Use Trends    The Utility has experienced a reduction in water use, both potable and reclaimed, over the last 10  years. Figure 2 illustrates this reduction in total water use from FY 2006‐07 through FY 2015‐16. The  trend line emphasizes an overall decline in water use even though the utility experienced growth in  the number of customers in that same time frame. During FY 2015‐16, the single family residential  customer with a 5/8 x 3/4 inch water meter averaged water use of 7,300 gallons per month.  Declining water use has been experienced not only on a local level, but also on regional and national  levels. This can be largely attributed to water conservation.       - 6 - Figure 2        Debt Service    Annual debt obligations are met with the revenue generated in the Operating Fund, the AWRDIF  and the PWSDIF. A summary of the existing debt allocated to each of these funds and the  outstanding balances at the beginning of FY 2016‐17 are provided in Table 4.    Table 4      Fund    Year    Debt Purpose Balance    Operating 2007 Excise Tax Bonds Existing Potable System $ 13,562,620  Operating‐GPF 2008 WIFA Loan Reclaimed Water System $   2,828,106  Operating 2009 WIFA Loan Existing Potable System $   1,585,381  Operating 2012 Sr. Lien Bonds – Refinance 2003 Existing Potable System $   3,573,006  Operating‐GPF 2012 Sr. Lien Bonds – Refinance 2003 Reclaimed Water System $   6,512,839  Operating 2013 Private Placement – Refinance 2003 Existing Potable System $   2,995,000  Operating  Operating  2014  2015  WIFA Loan  Excise Tax Bonds – Refinance 2005  AMI  Meter Replacement  Land for MOC  $   3,870,921    $   1,244,430  PWSDIF 2012 Sr. Lien Bonds – Refinance 2003 Potable System Expansion  $   2,009,155  Total Debt      $ 38,181,458    This rates analysis includes an assumption for new debt in the amount of $5,200,000 in FY 2017‐18  to finance existing system improvements as shown in Appendix C. It is assumed that the Utility will  issue bonds with a 20 year term at a three percent interest rate. The assumption that the Utility will  issue bonds rather than seek financing from the Arizona Water Infrastructure Finance Authority  (WIFA) is because of the costs associated with the requirement to pay Davis‐Bacon wages and the  mandatory use of American made steel products. These requirements could significantly increase  the project costs.    During FY 2015‐16 the Town refunded the 2005 Excise Tax Bonds of which the Utility’s  proportionate share is 33 percent. The Utility realized a savings of $110,147 in FY 2016‐17. This  refunding was a private placement with an investment institution. The next opportunity to refund  older bonds is in 2017 when the 2007 bonds reach the optional early redemption date; however,  because of timing of the refunding, projected savings have not been included in the analysis.  - 7 - Debt Service Coverage Requirements    The method for calculating the debt service coverage ratio is pursuant to the Town Financial and  Budgetary Policies adopted by the Town Council in 2008. Section C.1 – Debt Capacity, Issuance &  Management states the following with respect to debt service coverage ratios:    “When utility revenues are pledged as debt service payments, the Town will strive to maintain a 1.3  debt service coverage ratio or the required ratio in the bond indenture (whichever is greater) to  ensure debt coverage in times of revenue fluctuation.”    The Water Utility currently pays debt service on a number of outstanding debt issuances and loans.   For the Series 2012 Senior Lien Water Revenue Bonds, the 2008, 2009 and 2014 Water  Infrastructure Finance Authority (WIFA) Loans, water utility revenues are specifically pledged as the  repayment source for these obligations at 1.3 times coverage per the Town’s adopted financial  policy.     The remaining outstanding debt obligations of the Water Utility are excise tax pledged obligations  meaning that the Town’s unrestricted sources of sales taxes, fines, permit fees and state shared  revenues are pledged as the repayment sources for these bonds in the bond indentures. Even  though the bond indentures pledge these excise taxes as the repayment source, the Water Utility is  responsible to pay for these debt service payments from water sales revenues. However, since  excise taxes are pledged as coverage, a calculated debt service coverage ratio of 1.0 is applied to  avoid double coverage when calculating the debt service coverage ratio for these excise tax‐backed  bonds in the water rates analysis.    It is important to note that the bond indentures for the excise tax‐backed bonds require that the  Town’s excise tax collections each fiscal year total at least 2.5 times the annual debt service  requirements in order to avoid having to fund a debt service reserve fund. These conditions have  been met annually in the past and are expected to continue in the future. For FY 2015‐16 the debt  service coverage ratio was 10.53 for the General Fund which substantially exceeds the 2.5  requirement.     This methodology of segregating the water utility revenue‐pledged debt from the excise tax‐pledged  debt in the rates analysis process is an accepted practice in the industry and has been reviewed by  the Town’s Finance Director and the Town’s financial advisors with Stifel, Nicolaus & Company, Inc.    The debt service coverage ratio is determined by dividing the annual net operating revenue by the  annual debt service payments. Using the methodology described above is in accordance with the  2008 policy and reduces the amount of the debt service coverage requirement amount. Applying  this methodology has been key in minimizing water rate increases.     Debt service coverage for the Water Utility’s outstanding senior lien debt issuances and loans in the  Preferred Financial Scenario is shown in Table 5.    Table 5     2016‐17 2017‐18 2018‐19 2019‐20 2020‐21  Debt Service Coverage 1.75 1.54 1.73 2.07 1.95 - 8 - Cash Reserve Policy for Operating Fund    The Town of Oro Valley Mayor and Council Water Policies were adopted in 1996. Following the  Commission recommendation, an amended policy was submitted to the Town Council and was  subsequently adopted June 17, 2015. The amended policy may be found in Section II.A.1.d. and  states “The Utility 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.” The cash from GPF is accounted for in the Operating Fund and is included in the total  cash reserve balance. In the Preferred Financial Scenario, the projected cash reserve balance for the  Operating Fund for each year in the analysis is listed in Table 6 showing compliance in all years.    Table 6    Operating Fund 2016‐17 2017‐18 2018‐19 2019‐20 2020‐21  Cash Reserve Requirement $ 3,045,879 $ 3,233,897 $ 3,202,039 $ 3,398,163 $ 3,354,217  Cash Reserve Balance $ 8,218,878 $ 7,355,168 $ 6,880,320 $ 5,964,602 $ 5,582,031   Cash reserve balances in the Operating Fund are the main driver for the proposed changes in water  rates. This is largely due to using cash to fund capital projects in FY 2016‐17. The projected cash  reserve balances shown in Table 6 include revenue from the proposed rate changes. Those changes  include increases in the base rates and commodity rates throughout the projection period. The  proposed changes allow for the cash balances to be at appropriate levels for both the Operating  Fund and the GPF.     Cash reserves in the amount of $3,225,000 will be used to fund capital projects in FY 2016‐17. The  projects will be funded with GPF and Operating Fund cash reserves. To maintain cash reserves  without large rate increases, the Preferred Financial Scenario assumes $5,200,000 in new debt to  finance future capital expenditures from FY 2017‐18 through FY 2020‐21. All capital projects are  detailed in Appendix C.    Operating Fund    Revenue Forecast    The Operating Fund had a cash balance of $11,876,464 at the beginning of FY 2016‐17 and is  projected to have a balance of $5,582,031 at the end of FY 2020‐21. These funds may be used for  operating costs including personnel, operations and maintenance, capital improvements for the  existing potable water system and debt service. Groundwater Preservation Fees are included in the  Operating Fund; however,  the revenues and cash balances for the GPF are tracked separately within  the Operating Fund because the GPF funds are restricted to capital projects for renewable water  and wheeling payments for CAP water.    The revenue forecast was based on analysis of the Utility’s water use data for FY 2015‐16 and  projected growth in the number of new connections detailed in Table 3 on page 5. The revenue  - 9 - forecast includes proposed increases in the base rates shown below in Table 7. The base rates are  projected to increase annually beginning in FY 2016‐17.    Table 7  Base Rates  Potable & Reclaimed  Current  Rates  Proposed  Rates  Proposed  Rates  Proposed  Rates  Proposed  Rates  Proposed  Rates  Meter Sizes (inches)  2016‐17 2017‐18 2018‐19 2019‐20 2020‐21  5/8 x 3/4       14.19        14.62       14.91     15.21      15.51      15.82 3/4 x 3/4       21.29        21.93       22.37     22.81      23.27      23.74 1       35.48        36.54       37.28     38.02      38.78      39.56 1.5       70.95        73.08       74.54     76.03      77.55      79.10 2     113.53      116.94     119.27   121.66    124.09   126.58 3     227.05      233.86     238.54   243.31    248.18   253.14 4     354.77    365.41     372.72   380.18    387.78   395.53 6     709.54        730.83   745.44   760.35    775.56   791.07 8 1,135.26 1,169.32 1,192.70 1,216.56 1,240.89 1,265.71   The revenue forecast also includes proposed annual increases in commodity rates shown below in  Table 8. The GPF revenue is also shown in Table 8 to illustrate that there are no proposed changes in  this fee over the projection period.  Table 8    Commodity Rates Current  Rates  Proposed  Rates  Proposed  Rates  Proposed  Rates  Proposed  Rates  Proposed  Rates  Customer Classifications  2016‐17 2017‐18 2018‐19 2019‐20 2020‐21  Single Family Residential        Tier 1 2.32 2.34 2.38 2.42 2.46 2.50 Tier 2 3.19 3.25 3.32 3.39 3.46 3.53 Tier 3 4.40 4.53 4.67 4.81 4.95 5.10 Tier 4 6.05 6.29 6.54 6.80 7.07 7.35 Irrigation   Tier 1 2.32 2.34 2.38 2.42 2.46 2.50 Tier 2 3.19 3.25 3.32 3.39 3.46 3.53 Tier 3 4.40 4.53 4.67 4.81 4.95 5.10 Tier 4 6.05 6.29 6.54 6.80 7.07 7.35 Commercial 2.32 2.34 2.38 2.42 2.46 2.50 Master Metered Multi‐Family 2.32 2.34 2.38 2.42 2.46 2.50 Turf 2.32 2.34 2.38 2.42 2.46 2.50 Construction 7.05 7.29 7.54 7.80 8.07 8.35 All Reclaimed Classes 2.27 2.27 2.30 2.33 2.36 2.40 Groundwater Preservation Fee   Potable 0.90 0.90 0.90 0.90 0.90 0.90 Reclaimed  0.47 0.47 0.47 0.47 0.47 0.47   Cost per 1,000 gallons.     The water use included in each tier is detailed on the proposed water rates table on page 16.  - 10 - Table 9 provides the water sales revenue and GPF revenue forecast for the five year projection  period using the proposed base rates in Table 7 and commodity rates in Table 8.     Table 9    Water Sales Revenue   2016‐17 2017‐18 2018‐19 2019‐20 2020‐21  Potable Water $10,308,626 $10,572,362 $10,906,843 $11,243,802 $11,564,963 Reclaimed Water         1,618,478  $  1,626,162    1,649,198   1,669,171        1,694,573 Total Water Sales    GPF Revenue  $11,927,104   $  2,358,523  $12,198,524   $  2,389,602  $12,556,041   $  2,431,598  $12,912,973    $  2,463,060  $13,259,536   $  2,495,759    Other revenue generated by the Utility consists of charges for services. Those charges for services  include an intergovernmental agreement with the Pima County Wastewater Reclamation  Department to provide monthly billing services. The intergovernmental agreement will be subject to  renewal in FY 2018‐19. It is projected that the revenue will increase by $6,800 representing a three  percent increase upon renewal. Charges for service also include, but are not limited to, new service  establishment fees, late fees, reconnection fees, convenience fees, and plan review fees. The total  of all charges for services are projected to generate annual revenue ranging from $697,800 to  $703,980.    Projections for interest income are a cumulative total of $741,413 over the five year period. A two  percent interest rate was assumed for each year in the projection period. This interest rate is  consistent with the Town’s financial planning.      Revenue Requirements    Table 10 is a summary of revenue requirements for the Operating Fund that were used in the  financial analysis. These revenue requirements include expenditures to be paid with GPF revenue.    Projected personnel costs include three and one half percent annual merit increases and two  percent annual increases in health care costs with no new employees being added within the five  year projection period. These projected increases are consistent with the General Fund’s financial  planning.     The projected operations and maintenance (O&M) costs for both the potable and reclaimed water  systems include inflationary increases of one percent annually. The inflation factors are consistent  with the General Fund’s financial planning.    Power for pumping costs were segregated from the traditional O&M costs because they are not  subject to annual inflationary increases. Tucson Electric Power has already begun their rate increase  process. As such, a ten percent rate increase for power costs was projected in the last quarter of FY  2016‐17.    The Utility purchased 2,000 acre feet of groundwater extinguishment credits in FY 2016‐17 for  $380,000. The analysis includes another $450,000 in FY 2017‐18 to purchase additional credits.  These credits will be pledged to the Groundwater Allowance Account (GWA) to help maintain a  balance in the GWA that will facilitate growth in the water service area.  - 11 -   Table 10    Utility Expenditures            2016‐17            2017‐18            2018‐19            2019‐20            2020‐21  Operating Fund (ex. GPF)       Personnel $    3,161,854 $   3,335,756 $    3,519,223 $    3,712,780 $   3,916,983  Operations/Maintenance        1,946,240         1,965,702         1,985,359 2,005,213         2,025,265  Power for Pumping           820,000            880,000            880,000         880,000         880,000  Water Resource Mgmt.           380,000            450,000 0              0 0  CAP Wheeling Costs 25%        272,834         292,736         292,736         336,236         379,661  CAP Recharge Costs        1,770,705         1,856,730         1,928,865         2,186,490         2,371,980  Reclaimed Maintenance 884,758 892,991 905,805 914,204 922,686  Subtotal Operating Fund $    9,236,391  $   9,673,915  $   9,511,988  $   10,034,923  $ 10,496,575  Debt Service       3,581,068        3,896,920         3,900,523        4,229,969        3,418,949  Capital Outlay       1,913,765          135,189        297,726 132,955       185,495  Total Expenditures (ex. GPF) $ 14,731,224 $ 13,706,024   $ 13,710,237 $ 14,397,847  $ 14,101,019    GPF Expenditures  CAP Wheeling Costs – 75% $      818,502 $      878,207 $       878,207 $   1,008,707 $   1,139,207  Capital Outlay 1,909,188 330,652 330,652 330,652 330,652  Debt Service 1,384,247 1,389,793 1,388,825 1,386,563 1,385,701  Total GPF Expenditures $   4,111,937 $   2,598,652 $   2,597,684 $   2,725,922 $   2,855,560  Total All Operating Fund  Expenditures $ 18,843,161 $ 16,304,676 $ 16,307,921 $ 17,123,769 $ 16,956,579    CAP wheeling costs are the fees charged by Tucson Water to wheel our CAP water through their  recharge and recovery system. These fees are pursuant to an IGA and are subject to renegotiation in  FY 2016‐17. Based on the on‐going negotiations, costs are assumed to increase in the last 6 months  of FY 2016‐17 due to a projected rate increase by Tucson Water. The costs are projected to increase  again in FY 2019‐20 due to delivery of an additional 300 acre feet of CAP water as allowed in the  IGA. It is projected that the CAP wheeling costs will increase again in FY 2020‐21 when deliveries are  increased by another 300 acre feet for a total of 2,600 acre feet in that year. CAP wheeling costs are  paid with both water sales revenue and GPF revenue.    CAP water recharge costs represent costs to take delivery of the Utility’s entire CAP water allotment  of 10,305 acre feet annually. This water will be recharged and stored in various recharge facilities  including the Tucson Water facilities. Costs to take delivery of and store the CAP water are based on  the rate schedule adopted by the CAP.    Projected capital outlay for existing system improvements in this analysis includes water main  replacements, pumping station modifications and replacements, well upgrades, reservoir  improvements, vehicles and computer equipment. The only capital projects to be financed with GPF  revenue are improvements to the reclaimed water system. The schedule for five year capital  improvements may be found in Appendix C.    Debt service costs increase annually through FY 2019‐20.  A small portion of the increase is due to  the new debt projected to occur in FY 2017‐18 as described on page 6. The remaining increase is  - 12 - because of a large principal payment due on the 2007 bonds in FY 2019‐20. This large principle  payment may be reduced pending the outcome of a refinancing opportunity in 2017. The 2013  private placement bonds will be paid in full in FY 2019‐20; therefore, debt service is projected to  decrease in FY 2020‐21.    The complete five year projection pro forma for the Preferred Financial Scenario may be found in  Appendix A.      - 13 - Development Impact Fee Funds    Alternative Water Resources Development Impact Fee Fund    The Alternative Water Resources Development Impact Fee Fund (AWRDIF) had a cash balance of  $5,040,292 at the beginning of FY 2016‐17 and is projected to have $2,552,254 at the end of FY  2020‐21. The revenue sources for the AWRDIF Fund are from impact fees collected when a water  meter is purchased and from interest earned on cash balances. Interest income is projected to be a  total of $592,921 for this analysis. A two percent interest rate was assumed for each year in the  projection period and is consistent with the Town’s financial planning.    The revenue forecast was based on new service units related to the number of new connections. A  service unit is the equivalent of one single family residential (SFR) 5/8 x 3/4‐inch water meter. The  SFR service units are equal to the number of new connections. The other service units are forecast  based on pending development projects within the Town. Other service units include commercial,  multi‐family and irrigation uses with the number of service units depending on the estimated meter  sizes for each project.      The impact fee for a SFR 5/8 x 3/4‐inch water meter or one service unit is $4,045. It is assumed that  the existing Alternative Water Resources Development Impact Fees will not change during this five  year projection period. Table 14 provides the projected growth in service units and the revenue  associated with that growth. These growth projections are consistent with the Town’s financial  planning.  Table 14    Growth / Revenue 2016‐17 2017‐18 2018‐19 2019‐20 2020‐21  SFR Service Units           230         250         275         225           200 Other Service Units             47           31           36           20             30 Projected Revenue $1,120,465 $1,136,645 $1,257,995 $991,025 $930,350      AWRDIF funds may be used for capital expenditures related to CAP water. The capital expenditures  during this projection period total $8,517,439 and include the capital costs assessed by CAP for  3,557 acre feet of our CAP water allotment and design and construction of facilities that will deliver  an additional 1,000 acre feet of CAP water to the Town. These projects are identified in the five year  CIP shown in Appendix C. The annual capital expenditures for the AWRDIF Fund are listed in the  table below.    Table 15  Capital Expenditures 2016‐17 2017‐18 2018‐19 2019‐20 2020‐21  CAP Capital Charges  $   110,267 $  174,293 $ 174,293 $  174,293 $    174,293 CAP Facilities  $   100,000           ‐‐‐$ 400,000 $4,110,000 $  3,100,000 Total Capital Expenditures  $   210,267  $  174,293  $ 574,293  $ 4,284,293 $  3,274,293    There is no outstanding debt in the AWRDIF Fund and no future debt is projected for this analysis.  All capital projects shown above will be financed with impact fees contained within this fund.   - 14 - Potable Water System Development Impact Fee Fund  The Potable Water System Development Impact Fee Fund (PWSDIF) had a cash balance of  $5,068,238 at the beginning of FY 2016‐17 and is projected to have $5,891,087 at the end of FY  2020‐21. The revenue sources for the PWSDIF Fund are from impact fees collected when a water  meter is purchased and from interest earned on cash balances. Interest income is projected to be a  total of $568,554 for this analysis. A two percent interest rate was assumed for each year in the  projection period and is consistent with the Town’s financial planning.    The revenue forecast was based on new service units related to the number of new connections. A  service unit is the equivalent of one single family residential (SFR) 5/8 x 3/4‐inch water meter. The  SFR service units are equal to the number of new connections. The other service units are forecast  based on historic trends and pending development projects within the Town. Other service units  include commercial, multi‐family and irrigation uses with the number of service units depending on  the meter sizes for each project.        The impact fee for a SFR 5/8 x 3/4‐inch water meter or one service unit is $2,015. It is assumed that  the existing Potable Water System Development Impact Fees will not change during this five year  projection period. Table 16 provides the projected growth in service units and the revenue  associated with that growth. These growth projections are consistent with the Town’s financial  planning.  Table 16    Growth / Revenue 2016‐17 2017‐18 2018‐19 2019‐20 2020‐21  SFR Service Units           230         250         275         225           200 Other Service Units             47           31           36           20             30 Projected Revenue $558,155 $566,215 $626,665 $493,675 $463,450      PWSDIF funds may be used for capital expenditures related to potable water system improvements  including wells, booster stations, reservoirs and water mains that are required to meet the demands  of new growth. Capital expenditures include property acquisition and design services for a reservoir  and booster station to meet the demands of future growth. These project are identified in the five  year CIP shown in Appendix C. Debt service for previously constructed growth‐related facilities is  paid from revenues collected from impact fees. No new debt is projected in this analysis. The table  below lists all expenditures forecast for the PWSDIF.    Table 17  Expenditures 2016‐17 2017‐18 2018‐19 2019‐20 2020‐21  Debt Service  $ 329,916  $ 331,627 $ 331,328 $ 330,630   $ 330,364 Capital Projects                   ‐                  ‐                 ‐  $500,000   $ 300,000 Total Expenditures  $ 329,916  $  331,627  $ 331,328   $ 830,630 $ 630,364    All expenditures will be paid for with impact fees contained within this fund.  - 15 - Preferred Financial Scenario    Prior to developing financial forecasts, financial considerations were evaluated relating to projected  future operating costs, capital expenditures, the Utility’s existing cash reserves, existing outstanding  debt and debt service payments. To develop a Preferred Financial Scenario, the goals of the Utility  were to ensure that all existing rate setting policies were met, cash reserves were utilized to  minimize future debt and proposed rate increases would not result in rate shock.     The Water Utility has prepared a Preferred Financial Scenario. The Scenario generates the revenue  needed to maintain an adequate cash balance in all funds over the projected five year period.  Additionally, the Scenario uses both available cash and proposed new debt to finance capital  projects. The Scenario meets the debt service coverage ratio and cash reserve requirements in each  year of the projection period. The Preferred Financial Scenario includes projections for five years;  however, water rates are approved annually and only for the first year in the projection period. The  Water Utility Commission and Utility staff recommend approval of this Preferred Financial Scenario.    The cash balance in the PWSDIF fund increases over the five year period while the cash balance in  the AWRDIF fund decreases as cash is used for capital projects. The cash balance will be important  in the future as the Town moves forward with additional projects to increase deliveries of CAP water  and constructing potable water system infrastructure to meet the demands of new growth.    The financial projections for the Operating Fund, AWRDIF Fund and the PWSDIF Fund were  combined to evaluate the overall debt service coverage at the end of each fiscal year. Analysis  indicates that, under the Preferred Financial Scenario, the Utility will meet the debt service coverage  requirement established by the Mayor and Council Water Polices and bond covenants for all five  years. The pro forma for the Preferred Financial Scenario may be found in Appendix A. The  assumptions used to develop the financial projections contained in the Preferred Financial Scenario  may be found in Appendix D.      Recommendation on Rates, Fees & Charges    After reviewing the analysis of the three funds and their respective revenue requirements contained  in the Preferred Financial Scenario for FY 2016‐17, the Water Utility Commission and Utility staff  recommend the following:     Increase in the potable water and reclaimed water base rates   Increase in the potable water commodity rates   Increase in the potable construction water rates   No increase in the reclaimed water commodity rates   No increase in the potable water or reclaimed water Groundwater Preservation Fee    The proposed base rate increase is greater than the proposed commodity rate. This is due to  declines in water sales in recent years and the need to maintain revenues to cover fixed costs. The  following table (Table 18) shows the proposed monthly base rates for each meter size and the  proposed commodity rates for each meter size.      - 16 - Table 18 – Proposed Water Rates    METER  SIZE (in inches) 5/8 x 3/4 $14.62 3/4 x 3/4 $21.93 1 $36.54 1.5 $73.08 2 $116.94 3 $233.86 4 $365.41 6 $730.83 8 $1,169.32 METER COMMODITY COMMODITY COMMODITY COMMODITY SIZE TIER 1TIER 2TIER 3TIER 4 $2.34 $3.25 $4.53 $6.29 COST PER 1000 GALS. COST PER 1000 GALS. COST PER 1000 GALS. COST PER 1000 GALS. 5/8 x 3/4 0 ‐ 7,000  7,001 ‐ 16,000 16,001 ‐ 32,000 OVER    32,000 3/4 x 3/4 0 ‐ 10,000 10,001 ‐ 24,000 24,001 ‐ 48,000 OVER    48,000 10 ‐ 17,000 17,001 ‐ 40,000 40,001 ‐ 80,000 OVER      80,000 1.5 0 ‐ 35,000 35,001 ‐ 80,000  80,001 ‐ 160,000 OVER    160,000 20 ‐ 56,000   56,001 ‐ 128,000 128,001 ‐ 256,000 OVER    256,000 30 ‐ 112,000 112,001 ‐ 256,000 256,001 ‐ 512,000 OVER    512,000 40 ‐ 175,000 175,001 ‐ 400,000 400,001 ‐ 800,000 OVER    800,000 60 ‐ 860,000    860,001 ‐ 2,000,000 2,000,001 ‐ 3,500,000 OVER 3,500,000 80 ‐ 860,000    860,001 ‐ 2,000,000 2,000,001 ‐ 3,500,000 OVER 3,500,000 $ 0.47 per 1000 gallons for all  water use    MASTER‐METERED MULTIFAMILY CLASSIFICATION            $2.34 per 1000 gallons for all  water use    CONSTRUCTION  WATER            $7.29 per 1000 gallons for all  water use PROPOSED COMMODITY RATES ‐ RECLAIMED WATER     ALL RECLAIMED WATER USES & CLASSIFICATIONS PROPOSED BASE RATES POTABLE & RECLAIMED BASE RATE PROPOSED GROUNDWATER PRESERVATION FEES PROPOSED COMMODITY RATES ‐POTABLE WATER RESIDENTIAL & IRRIGATION  CLASSIFICATIONS    COMMERCIAL CLASSIFICATION      $2.34 per 1000 gallons for all  water use $ 2.27 per 1000 gallons for all  water use    POTABLE WATER $ 0.90 per 1000 gallons for all  water use    RECLAIMED WATER       Table 19 illustrates the proposed water rates for a single family residential customer with a 5/8 x 3/4  inch water meter. Approximately 87 percent of the utility’s customers fall into this category. Water  rates of other water providers in the region are included for comparison of the cost per 1,000  gallons.  - 17 - Table 19    Water Provider    Monthly  Base Rate Tier 1    Tier 2    Tier 3    Tier 4      Tier 5      GPF or Water  Resource Fee  Oro Valley Current 14.19 2.32 3.19 4.40  6.05 ‐‐‐ 0.90 Oro Valley Proposed 14.62 2.34 3.25 4.53  6.29 ‐‐‐ 0.90 Metro Water 29.50 2.75 4.60 6.10  7.10 ‐‐‐ 0.50 Marana Water 18.18 2.96 4.12 5.36  6.61 9.50 0.48 Tucson Water 12.67 2.08 4.02 10.02   15.75 ‐‐‐ 0.87 Cost per 1,000 gallons.    Direct comparison of specific base rates and commodity rates is less effective because of the varying  rate structures of each utility. A more effective comparison is to calculate the cost for specific  consumption levels for one month. Table 20 provides a calculation of a monthly bill amount for a  single family residential customer with a 5/8 x 3/4 inch meter for the water utilities surrounding the  Oro Valley Water Utility service area. The following bill comparisons include water rates and water  resource fees similar to the Utility’s GPF.     Table 20    Water Provider  Cost for  8,000 Gallons Cost for  15,000 Gallons Cost for   25,000 Gallons  Cost for  40,000 Gallons Oro Valley Current 40.82 69.45 121.24 213.94 Oro Valley Proposed 41.45 70.50 123.52 219.05 Metro Water 47.25 79.25 143.25 249.65 Marana Water 45.70 75.58 127.78 227.88 Tucson Water 34.61 85.32 199.93 435.56   The following table illustrates the financial impact to customers with varying meter sizes based on  the average monthly water use for specific customer classifications. These charges are for Oro Valley  Water Utility customers and include the base rates, commodity rates and groundwater preservation  fees.    Table 21  Classification Meter Size  (inches)  Water Use  (gallons) Current Bill Proposed Bill Change  SF Residential 5/8 8,000 $40.82 $ 41.45   $ 0.63 SF Residential 5/8          15,000 $  69.45 $ 70.50     $ 1.05 SF Residential  5/8 25,000 $121.24 $123.52 $ 2.28 SF Residential 5/8 40,000 $213.94 $219.05 $ 5.11 Irrigation 1 27,000 $131.12 $133.12 $ 2.00 Commercial 2 57,000 $297.07 $301.62  $ 4.55 MF Residential  4 700,000 $  2,608.77   $2,633.41  $ 24.64 Turf – Potable 4 4,000,000 $13,234.77 $13,325.41  $ 90.64 Reclaimed ‐ Turf 6 10,000,000 $23,130.83 $28,130.83  $ 21.29 - 18 - Proposed rates for all Oro Valley Water Utility meter sizes may be found in Appendix B. Tables that  calculate monthly bills under the proposed rates may also be found in Appendix B. Monthly bill  amounts are calculated in 1,000 gallon increments for the 5/8 x 3/4 inch meters and a variety of  increments for larger meter sizes.    There is no proposed increase in the reclaimed water commodity rates. Table 22 shows the  comparison to Tucson Water’s reclaimed water rate.    Table 22  Water Provider Commodity Rate GPF  Oro Valley Water – Current $2.27 $0.47  Oro Valley Water – Proposed $2.27 $0.47  Tucson Water $2.50 N/A       Cost per 1,000 gallons.      Service Fees & Charges    The Utility charges fees for services rendered in an amount designed to recover the cost to provide  that service. These fees and charges are evaluated annually to determine if any adjustments are  needed. The Preferred Financial Scenario does not include increases in any service fees and charges.    Conclusion    Each year the water rates analysis is prepared based on the most up‐to‐date information available.  Operational needs and capital improvement requirements change annually and are carefully  evaluated when they are included in the analysis. It is important that the Utility perform a water  rates analysis every year to plan for changes in debt service, operating or capital costs.     The Water Utility presents this Water Rates Analysis Report for the review and consideration of the  Mayor and Council.  The Commission and Water Utility Staff are available to discuss this report in  greater detail at Council’s request.  Utility Staff will be requesting Council’s approval of the Notice of  Intent NOI) to increase water rates on December 7, 2016. Although the analysis is for a five years,  the request for a rate increase is only for the first year in the analysis. The NOI does not approve the  water rates. The NOI sets the maximum amount of a rate increase, publishes the report and  establishes the date for the public hearing to consider an increase in water rates.    The Oro Valley Water Utility Staff and Commission are dedicated to serving the Town of Oro Valley  and the customers of its water utility.  Water Utility Staff and the Commission extend their  appreciation to the Mayor and Council for consideration and guidance regarding water rates.    APPENDIX   A      Preferred Financial Scenario Pro Forma      A‐1  Operating Fund  A‐2  Groundwater Preservation Fee  A‐3  Alternative Water Resources Development Impact Fee Fund  A‐4  Potable Water System Development Impact Fee Fund  A‐5  Summary of All Funds    Oro Valley Water Utility Prepared:  October 24, 2016 Revised:     November 8, 2016 FY 2016‐17 FY 2017‐18 FY 2018‐19 FY 2019‐20 FY 2020‐21 REVENUES Water Sales Potable Water Sales (excluding golf courses) 10,137,600$    10,297,404$    10,505,543$    10,725,172$    10,940,420$     Potable Water Sales from Growth ‐ Res. & Com. 61,046 163,670 288,207 403,477 507,640 Potable Water Sales ‐ Golf Courses 109,980 111,288 113,093 115,153 116,903 Total Potable Water Sales 10,308,626 10,572,362 10,906,843 11,243,802 11,564,963 Reclaimed Water Sales 1,618,478 1,626,162 1,649,198 1,669,171 1,694,573      Total Water Sales 11,927,104 12,198,524 12,556,041 12,912,973 13,259,536 Other Operating Revenue Service Fees & Charges 697,800 697,800 703,980 703,980 703,980 Interest Income 202,148 155,039 141,454 128,039 114,733      Total Other Operating Revenue 899,948 852,839 845,434 832,019 818,713      Total Operating Revenue (Excluding GPF) 12,827,052$    13,051,363$    13,401,475$    13,744,992$    14,078,249$     OPERATING EXPENSES Potable Operating Expenses Personnel 3,161,854         3,335,756         3,519,223         3,712,780         3,916,983          Operations & Maintenance  1,946,240         1,965,702         1,985,359         2,005,213         2,025,265          Power for Pumping 820,000            880,000            880,000            880,000            880,000             Water Resource Management Costs 380,000            450,000             ‐                     ‐                     ‐                     CAP Wheeling Costs ‐ 25% 272,834            292,736            292,736            336,236            379,661             CAP Water Recharge Costs 1,770,705         1,856,730         1,928,865         2,186,490         2,371,980          Total Potable Operating Expenses 8,351,633$      8,780,924$      8,606,183$      9,120,720$      9,573,889$       Reclaimed Operating Expenses Operating & Maintenance 884,758            892,991            905,805            914,204            922,686             Total Reclaimed Operating Expenses 884,758$          892,991$          905,805$          914,204$          922,686$           Total Operating Expenses (Excluding GPF) 9,236,391$      9,673,915$      9,511,988$      10,034,923$    10,496,575$     Net Operating Revenue (Excluding GPF) 3,590,661$     3,377,448$     3,889,487$     3,710,069$      3,581,674$      DEBT SERVICE ‐ POTABLE       P&I ‐ Excise Tax Bonds ‐ Refinance 1996 (2007) 1,259,936         1,255,326         1,258,553         2,615,276         1,804,838          P&I ‐ WIFA Loan ‐ Exist. System CIP (2009) 150,820            150,820            150,820            150,820            150,820             P&I ‐ Sr. Lien Bonds ‐ Existing System (2012) 589,716            589,759            589,227            587,986            587,514             P&I ‐ Refunding ‐ Private Placement (2013) 1,033,428         1,024,073         1,024,645          ‐                     ‐                     P&I ‐ WIFA Loan ‐ Sr. Lien ‐ AMI (2014) 395,534            377,158            377,060            376,959            376,856             P&I ‐ Excise Tax Bonds ‐ Refinance 2005  (2015) 151,634            152,142            152,576            151,286            151,279             P&I ‐ Sr. Lien Bonds ‐ Existing System (2018)‐                    347,642            347,642            347,642            347,642             Potable System Debt Service (Excluding GPF) 3,581,068$      3,896,920$      3,900,523$      4,229,969$      3,418,949$       Other Obligations Machinery & Equipment & Vehicles 363,765$          135,189$          297,726$          132,955$          185,495$           Capital Improvements: Existing System 1,550,0000000 Total Other Obligations (Excluding GPF) 1,913,765$      135,189$          297,726$          132,955$          185,495$           Net Balance From Operations (Excluding GPF) (1,904,172)$     (654,660)$        (308,762)$        (652,855)$        (22,770)$           Operating Fund Beginning Cash Balance 9,043,330$      7,139,158$      6,484,498$      6,175,736$      5,522,881$       Net Balance From Operations (1,904,172)       (654,660)          (308,762)          (652,855)          (22,770)              Operating Fund Ending Cash Balance (Excl. GPF)7,139,158$      6,484,498$      6,175,736$      5,522,881$      5,500,110$       PREFERRED FINANCIAL SCENARIO Operating Fund A‐1 Oro Valley Water Utility Prepared:  October 24, 2016 Revised:     November 8, 2016 PREFERRED FINANCIAL SCENARIO Operating Fund FY 2016‐17 FY 2017‐18 FY 2018‐19 FY 2019‐20 FY 2020‐21 GPF Beginning Balance 2,833,134$      1,079,720$      870,670$          704,584$          441,722$           GPF Revenue GPF Revenue ‐ Potable 2,020,676         2,020,676         2,020,676         2,020,676         2,020,676          GPF Revenue ‐ Reclaimed 313,710            313,710            313,710            313,710            313,710             GPF Revenue ‐ Growth 24,137 55,216 97,212 128,674 161,373      Total GPF Revenue 2,358,523         2,389,602         2,431,598         2,463,060         2,495,759          GPF Expenses CAP Wheeling Costs ‐ 75% 818,502            878,207            878,207            1,008,707         1,139,207          Capital Cost for CAP Allotment 6,748 AF 209,188            330,652            330,652            330,652            330,652             Reclaimed Capital Projects ‐ Main Relocate & Extend 1,700,000          ‐                     ‐                     ‐                     ‐                     P&I ‐ Sr. Lien ‐ WIFA ‐Reclaimed Ph.2 (2008) 314,798            314,798            314,798            314,798            314,798             P&I ‐ Sr. Lien Bonds ‐ Reclaimed Ph.1 (2012) 1,069,449         1,074,995         1,074,027         1,071,765         1,070,903               Total GPF Expenses 4,111,937         2,598,652         2,597,684         2,725,922         2,855,560          GPF Ending Cash Balance 1,079,720$      870,670$          704,584$          441,722$          81,920$             Operating Fund Cash Balance (excluding GPF) 7,139,158$      6,484,498$      6,175,736$      5,522,881$      5,500,110$       GPF Ending Cash Balance 1,079,720         870,670            704,584            441,722            81,920               Total Operating Fund Ending Cash Balance 8,218,878$      7,355,168$      6,880,320$      5,964,602$      5,582,031$       Groundwater Preservation Fees A‐2 Oro Valley Water Utility Prepared: October 24, 2016 Revised: November 8, 2016 FY 2016-17 FY 2017-18 FY 2018-19 FY 2019-20 FY 2020-21 REVENUES AWRD Impact Fee Revenue 1,120,465$ 1,136,645$ 1,257,995$ 991,025$ 930,350$ Subtotal Revenue 1,120,465 1,136,645 1,257,995 991,025 930,350 Other Operating Revenue Interest Income 109,149 130,014 149,307 129,512 74,939 Subtotal Other Operating Revenue 109,149 130,014 149,307 129,512 74,939 Total Operating Revenue 1,229,614$ 1,266,659$ 1,407,302$ 1,120,537$ 1,005,289$ OPERATING EXPENSES N/A - - - - - Total Operating Expenses -$ -$ -$ -$ -$ Net Operating Revenue 1,229,614$ 1,266,659$ 1,407,302$ 1,120,537$ 1,005,289$ DEBT SERVICE N/A - - - - - Total Debt Service -$ -$ -$ -$ -$ OTHER OBLIGATIONS Capital Improvements: CAP Capital Charges 3557 acre feet 110,267$ 174,293$ 174,293$ 174,293$ 174,293$ CAP Facilities Engineering & Construction 100,000 - 400,000 4,110,000 3,100,000 Total Other Obligations 210,267$ 174,293$ 574,293$ 4,284,293$ 3,274,293$ Net Balance From Operations 1,019,347$ 1,092,366$ 833,009$ (3,163,756)$ (2,269,004)$ Beginning Cash Balance 5,040,292$ 6,059,639$ 7,152,005$ 7,985,014$ 4,821,258$ Net Balance From Operations 1,019,347$ 1,092,366$ 833,009$ (3,163,756)$ (2,269,004)$ Ending Cash Balance 6,059,639$ 7,152,005$ 7,985,014$ 4,821,258$ 2,552,254$ A-3 PREFERRED FINANCIAL SCENARIO Alternative Water Resources Development Impact Fee Fund Oro Valley Water Utility Prepared: October 24, 2016 Revised: November 8, 2016 FY 2016-17 FY 2017-18 FY 2018-19 FY 2019-20 FY 2020-21 REVENUES Development Impact Fees 558,155$ 566,215$ 626,665$ 493,675$ 463,450$ Subtotal Revenue 558,155$ 566,215$ 626,665$ 493,675$ 463,450$ Other Operating Revenue Interest Income 103,457 110,149 117,601 120,063 117,284 Subtotal Other Operating Revenue 103,457 110,149 117,601 120,063 117,284 Total Operating Revenue 661,612$ 676,364$ 744,266$ 613,738$ 580,734$ OPERATING EXPENSES N/A - - - - - Total Operating Expenses -$ -$ -$ -$ -$ Net Operating Revenue 661,612$ 676,364$ 744,266$ 613,738$ 580,734$ DEBT SERVICE P&I - Sr. Lien Bonds - Expansion Related (2012)329,916$ 331,627$ 331,328$ 330,630$ 330,364$ Total Water System Debt Service 329,916$ 331,627$ 331,328$ 330,630$ 330,364$ OTHER OBLIGATIONS Growth Related Capital Projects - - - 500,000 300,000 Total Other Obligations -$ -$ -$ 500,000$ 300,000$ Net Balance From Operations 331,696$ 344,737$ 412,938$ (216,892)$ (49,630)$ Beginning Cash Balance 5,068,238$ 5,399,934$ 5,744,671$ 6,157,609$ 5,940,717$ Net Balance From Operations 331,696$ 344,737$ 412,938$ (216,892)$ (49,630)$ Ending Cash Balance 5,399,934$ 5,744,671$ 6,157,609$ 5,940,717$ 5,891,087$ A-4 PREFERRED FINANCIAL SCENARIO Potable Water System Development Impact Fee Fund Oro Valley Water Utility Prepared: October 24, 2016 Revised: November 8, 2016 FY 2016-17 FY 2017-18 FY 2018-19 FY 2019-20 FY 2020-21 REVENUES Water Sales Potable Water Sales (exclude golf courses)10,137,600$ 10,297,404$ 10,505,543$ 10,725,172$ 10,940,420$ Potable Water Sales from Growth 61,046 163,670 288,207 403,477 507,640 Potable Water Sales - Golf Courses 109,980 111,288 113,093 115,153 116,903 Total Potable Water Sales 10,308,626 10,572,362 10,906,843 11,243,802 11,564,963 Reclaimed Water Sales 1,618,478 1,626,162 1,649,198 1,669,171 1,694,573 Total Water Sales 11,927,104 12,198,524 12,556,041 12,912,973 13,259,536 Other Operating Revenue Groundwater Preservation Fees Groundwater Preservation Fee - Potable 2,020,676 2,020,676 2,020,676 2,020,676 2,020,676 Groundwater Preservation Fee - Reclaimed 313,710 313,710 313,710 313,710 313,710 Groundwater Preservation Fee - Growth 24,137 55,216 97,212 128,674 161,373 Total Groundwater Preservation Fees 2,358,523 2,389,602 2,431,598 2,463,060 2,495,759 Potable Water Impact Fees 558,155 566,215 626,665 493,675 463,450 Alternative Water Impact Fees 1,120,465 1,136,645 1,257,995 991,025 930,350 Service Fees & Charges 697,800 697,800 703,980 703,980 703,980 Interest Income 414,754 395,202 408,362 377,614 306,956 Total Other Operating Revenue 5,149,697 5,185,464 5,428,600 5,029,354 4,900,495 Total Operating Revenue 17,076,801$ 17,383,988$ 17,984,641$ 17,942,327$ 18,160,031$ OPERATING EXPENSES Potable Operating Expenses Personnel 3,161,854 3,335,756 3,519,223 3,712,780 3,916,983 Operations & Maintenance 1,946,240 1,965,702 1,985,359 2,005,213 2,025,265 Power for Pumping 820,000 880,000 880,000 880,000 880,000 Water Resource Management Costs 380,000 450,000 - - - CAP Wheeling Costs 272,834 292,736 292,736 336,236 379,661 CAP Recharge Costs 1,770,705 1,856,730 1,928,865 2,186,490 2,371,980 Costs paid by GPF Revenue (excluding debt service)1,027,690 1,208,859 1,208,859 1,339,359 1,469,859 Total Potable Operating Expenses 9,379,323$ 9,989,783$ 9,815,042$ 10,460,078$ 11,043,748$ Reclaimed Operating Expenses Operating & Maintenance 884,758 892,991 905,805 914,204 922,686 Total Reclaimed Operating Expenses 884,758$ 892,991$ 905,805$ 914,204$ 922,686$ Total Operating Expenses 10,264,081$ 10,882,774$ 10,720,847$ 11,374,281$ 11,966,433$ Net Operating Revenue 6,812,720$ 6,501,214$ 7,263,794$ 6,568,046$ 6,193,598$ Debt Service Debt Service - Potable- Existing System P&I - Excise Tax Bonds - Refinance 1996 (2007)1,259,936 1,255,326 1,258,553 2,615,276 1,804,838 P&I - WIFA Loan - Exist. System CIP (2009)150,820 150,820 150,820 150,820 150,820 P&I - Sr. Lien Bonds - Existing System (2012)589,716 589,759 589,227 587,986 587,514 P&I - Refunding - Private Placement (2013)1,033,428 1,024,073 1,024,645 - - P&I - WIFA Loan - Sr. Lien - AMI (2014)395,534 377,158 377,060 376,959 376,856 P&I - Excise Tax Bonds - Refinance 2005 (2015)151,634 152,142 152,576 151,286 151,279 P&I - Sr. Lien Bonds - Existing System (2018)- 347,642 347,642 347,642 347,642 Total Potable Existing System Debt Service 3,581,068$ 3,896,920$ 3,900,523$ 4,229,969$ 3,418,949$ Debt Service - Potable - Expansion Related P&I - Sr. Lien Bonds - Expansion Related (2012)329,916 331,627 331,328 330,630 330,364 Total Potable Expansion Related Debt Service 329,916$ 331,627$ 331,328$ 330,630$ 330,364$ Debt Service - Non-Potable P&I - Sr. Lien - WIFA -Reclaimed Ph.2 (2008)314,798$ 314,798$ 314,798$ 314,798$ 314,798$ P&I - Sr. Lien Bonds - Reclaimed Ph.1 (2012)1,069,449 1,074,995 1,074,027 1,071,765 1,070,903 Total Non-Potable System Debt Service 1,384,247$ 1,389,793$ 1,388,825$ 1,386,563$ 1,385,701$ Total Water System Debt Service 5,295,231$ 5,618,340$ 5,620,676$ 5,947,162$ 5,135,014$ PREFERRED FINANCIAL SCENARIO Summary of all Funds A-5 Oro Valley Water Utility Prepared: October 24, 2016 Revised: November 8, 2016 FY 2016-17 FY 2017-18 FY 2018-19 FY 2019-20 FY 2020-21 PREFERRED FINANCIAL SCENARIO Summary of all Funds Other Obligations Machinery & Equipment & Vehicles 363,765$ 135,189$ 297,726$ 132,955$ 185,495$ Capital Improvements: Existing System 1,550,000 - - - - GPF Projects 1,700,000 - - - - Alternative Water Resources 210,267 174,293 574,293 4,284,293 3,274,293 Potable Water System Expansion - - - 500,000 300,000 Total Other Obligations 3,824,032$ 309,482$ 872,019$ 4,917,248$ 3,759,788$ Net Balance From Operations (2,306,543)$ 573,393$ 771,099$ (4,296,364)$ (2,701,205)$ Growth - New Metered Connections 230 250 275 225 200 Monthly increase to residential customer using 8K gals.1.5%1.5%1.5%1.5%1.5% Monthly increase to residential customer using 8K gals.$0.63 $0.64 $0.65 $0.65 $0.66 DS Coverage Ratio: Sr. Lien Bonds & WIFA 1.75 1.54 1.73 2.07 1.95 Debt Service Coverage Requirement = 1.30 Required Cash Reserves (20% of personnel, O&M, debt)3,045,879$ 3,233,897$ 3,202,039$ 3,398,163$ 3,354,217$ (does not include depreciation/amortization) Beginning Cash Balance - All Funds 21,984,994$ 19,678,452$ 20,251,844$ 21,022,943$ 16,726,579$ Net Balance From Operations - All Funds (2,306,543) 573,393 771,099 (4,296,364) (2,701,205) Ending Cash Balance - All Funds 19,678,452$ 20,251,844$ 21,022,943$ 16,726,579$ 14,025,374$ Operating Fund (excluding GPF)7,139,158$ 6,484,498$ 6,175,736$ 5,522,881$ 5,500,110$ Groundwater Preservation Fees 1,079,720 870,670 704,584 441,722 81,920 Total Operating Fund 8,218,878 7,355,168 6,880,320 5,964,602 5,582,031 AWRD Impact Fee Fund 6,059,639 7,152,005 7,985,014 4,821,258 2,552,254 PWSD Impact Fee Fund 5,399,934 5,744,671 6,157,609 5,940,717 5,891,087 Total Ending Cash Balance 19,678,452$ 20,251,844$ 21,022,943$ 16,726,578$ 14,025,372$ Contingent Reserve Fund:372%360%374%281%273% Contingent Reserve Requirement = 130% A-6 APPENDIX   B      Preferred Financial Scenario  Tables for Bill Comparisons      B‐1  Tables for Bill Comparisons by Meter Size ‐ Potable  B‐7  Tables for Bill Comparisons by Meter Size ‐ Reclaimed  TABLE FOR MONTHLY CHARGES & PERCENT INCREASE COMPARISON  = Tiers RESIDENTIAL & IRRIGATION CUSTOMERS WITH A 5/8 X 3/4" METER  = Average Water Use TOTAL TOTAL GALLONS CURRENT PROPOSED AMOUNT OF PERCENT CURRENT PROPOSED INCREASE IN TOTAL AMOUNT OF PERCENT USED WATER WATER INCREASE INCREASED GPF GPF GPF MONTHLY MONTHLY INCREASED RATE RATE Water Rate Water Rate INCREASE BILL 0 14.19 14.62 0.43 3.0% 0.00 0.00 0.00 0.43 14.62 3.0% 1,000           16.51 16.96 0.45 2.7% 0.90 0.90 0.00 0.45 17.86 2.6% 2,000           18.83 19.30 0.47 2.5% 1.80 1.80 0.00 0.47 21.10 2.3% 3,000           21.15 21.64 0.49 2.3% 2.70 2.70 0.00 0.49 24.34 2.1% 4,000           23.47 23.98 0.51 2.2% 3.60 3.60 0.00 0.51 27.58 1.9% 5,000           25.79 26.32 0.53 2.1% 4.50 4.50 0.00 0.53 30.82 1.7% 6,000           28.11 28.66 0.55 2.0% 5.40 5.40 0.00 0.55 34.06 1.6% 7,000           30.43 31.00 0.57 1.9% 6.30 6.30 0.00 0.57 37.30 1.6% 8,000           33.62 34.25 0.63 1.9% 7.20 7.20 0.00 0.63 41.45 1.5% 9,000           36.81 37.50 0.69 1.9% 8.10 8.10 0.00 0.69 45.60 1.5% 10,000        40.00 40.75 0.75 1.9% 9.00 9.00 0.00 0.75 49.75 1.5% 11,000        43.19 44.00 0.81 1.9% 9.90 9.90 0.00 0.81 53.90 1.5% 12,000        46.38 47.25 0.87 1.9% 10.80 10.80 0.00 0.87 58.05 1.5% 13,000        49.57 50.50 0.93 1.9% 11.70 11.70 0.00 0.93 62.20 1.5% 14,000        52.76 53.75 0.99 1.9% 12.60 12.60 0.00 0.99 66.35 1.5% 15,000        55.95 57.00 1.05 1.9% 13.50 13.50 0.00 1.05 70.50 1.5% 16,000        59.14 60.25 1.11 1.9% 14.40 14.40 0.00 1.11 74.65 1.5% 17,000        63.54 64.78 1.24 2.0% 15.30 15.30 0.00 1.24 80.08 1.6% 18,000        67.94 69.31 1.37 2.0% 16.20 16.20 0.00 1.37 85.51 1.6% 19,000        72.34 73.84 1.50 2.1% 17.10 17.10 0.00 1.50 90.94 1.7% 20,000        76.74 78.37 1.63 2.1% 18.00 18.00 0.00 1.63 96.37 1.7% 21,000        81.14 82.90 1.76 2.2% 18.90 18.90 0.00 1.76 101.80 1.8% 22,000        85.54 87.43 1.89 2.2% 19.80 19.80 0.00 1.89 107.23 1.8% 23,000        89.94 91.96 2.02 2.2% 20.70 20.70 0.00 2.02 112.66 1.8% 24,000        94.34 96.49 2.15 2.3% 21.60 21.60 0.00 2.15 118.09 1.9% 25,000        98.74 101.02 2.28 2.3% 22.50 22.50 0.00 2.28 123.52 1.9% 26,000        103.14 105.55 2.41 2.3% 23.40 23.40 0.00 2.41 128.95 1.9% 27,000        107.54 110.08 2.54 2.4% 24.30 24.30 0.00 2.54 134.38 1.9% 28,000        111.94 114.61 2.67 2.4% 25.20 25.20 0.00 2.67 139.81 1.9% 29,000        116.34 119.14 2.80 2.4% 26.10 26.10 0.00 2.80 145.24 2.0% 30,000        120.74 123.67 2.93 2.4% 27.00 27.00 0.00 2.93 150.67 2.0% 31,000        125.14 128.20 3.06 2.4% 27.90 27.90 0.00 3.06 156.10 2.0% 32,000        129.54 132.73 3.19 2.5% 28.80 28.80 0.00 3.19 161.53 2.0% 33,000        135.59 139.02 3.43 2.5% 29.70 29.70 0.00 3.43 168.72 2.1% 34,000        141.64 145.31 3.67 2.6% 30.60 30.60 0.00 3.67 175.91 2.1% 35,000        147.69 151.60 3.91 2.6% 31.50 31.50 0.00 3.91 183.10 2.2% 36,000        153.74 157.89 4.15 2.7% 32.40 32.40 0.00 4.15 190.29 2.2% 37,000        159.79 164.18 4.39 2.7% 33.30 33.30 0.00 4.39 197.48 2.3% 38,000        165.84 170.47 4.63 2.8% 34.20 34.20 0.00 4.63 204.67 2.3% 39,000        171.89 176.76 4.87 2.8% 35.10 35.10 0.00 4.87 211.86 2.4% 40,000        177.94 183.05 5.11 2.9% 36.00 36.00 0.00 5.11 219.05 2.4% 41,000        183.99 189.34 5.35 2.9% 36.90 36.90 0.00 5.35 226.24 2.4% 42,000        190.04 195.63 5.59 2.9% 37.80 37.80 0.00 5.59 233.43 2.5% 43,000        196.09 201.92 5.83 3.0% 38.70 38.70 0.00 5.83 240.62 2.5% 44,000        202.14 208.21 6.07 3.0% 39.60 39.60 0.00 6.07 247.81 2.5% 45,000        208.19 214.50 6.31 3.0% 40.50 40.50 0.00 6.31 255.00 2.5% 46,000        214.24 220.79 6.55 3.1% 41.40 41.40 0.00 6.55 262.19 2.6% 47,000        220.29 227.08 6.79 3.1% 42.30 42.30 0.00 6.79 269.38 2.6% 48,000        226.34 233.37 7.03 3.1% 43.20 43.20 0.00 7.03 276.57 2.6% 49,000        232.39 239.66 7.27 3.1% 44.10 44.10 0.00 7.27 283.76 2.6% 50,000        238.44 245.95 7.51 3.1% 45.00 45.00 0.00 7.51 290.95 2.6% B‐1 PREFERRED FINANCIAL SCENARIO TABLE FOR MONTHLY CHARGES AND PERCENT INCREASE COMPARISON  = Average Water Use FOR RESIDENTIAL & IRRIGATION CUSTOMERS WITH A 3/4" x 3/4" METER BASE RATE 21.93$          COMMODITY RATE:  TIER 1 = 2.34$             FOR   0  ‐  10,000 GALLONS TIER 2 = 3.25$             FOR 10,001 ‐ 24,000 GALLONS TIER 3 = 4.53$             FOR 24,001 ‐ 48,000 GALLONS TIER 4 = 6.29$             FOR ALL USAGE OVER 48,000 GALLONS    TOTAL TOTAL GALLONS BILL AT THE BILL AT THE AMOUNT OF PERCENT CURRENT PROPOSED INCREASE IN TOTAL AMOUNT OF PERCENT USED IN CURRENT PROPOSED INCREASE INCREASED GPF GPF GPF MONTHLY MONTHLY INCREASED 1 MONTH RATE RATE Water Rate Water Rate INCREASE BILL 0 21.29           21.93         0.64            3.0% 0.00 0.00 0.00 0.64 21.93         3.0% 7,000           37.53           38.31         0.78            2.1% 6.30 6.30 0.00 0.78 44.61         1.8% 11,000        47.68           48.58         0.90            1.9% 9.90 9.90 0.00 0.90 58.48         1.6% 28,000        106.75         108.95       2.20            2.1% 25.20 25.20 0.00 2.20 134.15       1.7% 50,000        206.85         212.13       5.28            2.6% 45.00 45.00 0.00 5.28 257.13       2.1% TABLE FOR MONTHLY CHARGES AND PERCENT INCREASE COMPARISON FOR COMMERCIAL & MULTIFAMILY CUSTOMERS WITH A 3/4" x 3/4" METER BASE RATE 21.93$          COMMODITY RATE:  TIER 1 = 2.34$             FOR ALL WATER USAGE TIER 2 = N/A TIER 3 = N/A TIER 4 = N/A    TOTAL TOTAL GALLONS BILL AT THE BILL AT THE AMOUNT OF PERCENT CURRENT PROPOSED INCREASE IN TOTAL AMOUNT OF PERCENT USED IN CURRENT PROPOSED INCREASE INCREASED GPF GPF GPF MONTHLY MONTHLY INCREASED 1 MONTH RATE RATE Water Rate Water Rate INCREASE BILL 0 21.29           21.93         0.64            3.0% 0.00 0.00 0.00 0.64 21.93         3.0% 7,000           37.53           38.31         0.78            2.1% 6.30 6.30 0.00 0.78 44.61         1.8% 11,000        46.81           47.67         0.86            1.8% 9.90 9.90 0.00 0.86 57.57         1.5% 28,000        86.25           87.45         1.20            1.4% 25.20 25.20 0.00 1.20 112.65       1.1% 50,000        137.29         138.93       1.64            1.2% 45.00 45.00 0.00 1.64 183.93       0.9% TABLE FOR MONTHLY CHARGES AND PERCENT INCREASE COMPARISON FOR RESIDENTIAL & IRRIGATION CUSTOMERS WITH A 1" METER BASE RATE 36.54$          COMMODITY RATE:  TIER 1 = 2.34$             FOR   0  ‐  17,000 GALLONS TIER 2 = 3.25$             FOR 17,001 ‐ 40,000 GALLONS TIER 3 = 4.53$             FOR 40,001 ‐ 80,000 GALLONS TIER 4 = 6.29$             FOR ALL USAGE OVER 80,000 GALLONS    TOTAL TOTAL GALLONS BILL AT THE BILL AT THE AMOUNT OF PERCENT CURRENT PROPOSED INCREASE IN TOTAL AMOUNT OF PERCENT USED IN CURRENT PROPOSED INCREASE INCREASED GPF GPF GPF MONTHLY MONTHLY INCREASED 1 MONTH RATE RATE Water Rate Water Rate INCREASE BILL 0 35.48           36.54         1.06            3.0% 0.00 0.00 0.00 1.06 36.54         3.0% 17,000        74.92           76.32         1.40            1.9% 15.30 15.30 0.00 1.40 91.62         1.6% 27,000        106.82         108.82       2.00            1.9% 24.30 24.30 0.00 2.00 133.12       1.5% 38,000        141.91         144.57       2.66            1.9% 34.20 34.20 0.00 2.66 178.77       1.5% 50,000        192.29         196.37       4.08            2.1% 45.00 45.00 0.00 4.08 241.37       1.7% B‐2 TABLE FOR MONTHLY CHARGES AND PERCENT INCREASE COMPARISON  = Average Water Use FOR COMMERCIAL & MULTIFAMILY CUSTOMERS WITH A 1" METER BASE RATE 36.54$          COMMODITY RATE:  TIER 1 = 2.34$             FOR ALL WATER USAGE TIER 2 = N/A TIER 3 = N/A TIER 4 = N/A    TOTAL TOTAL GALLONS BILL AT THE BILL AT THE AMOUNT OF PERCENT CURRENT PROPOSED INCREASE IN TOTAL AMOUNT OF PERCENT USED IN CURRENT PROPOSED INCREASE INCREASED GPF GPF GPF MONTHLY MONTHLY INCREASED 1 MONTH RATE RATE Water Rate Water Rate INCREASE BILL 0 35.48           36.54         1.06            3.0% 0.00 0.00 0.00 1.06 36.54         3.0% 15,000        70.28           71.64         1.36            1.9% 13.50 13.50 0.00 1.36 85.14         1.6% 27,000        98.12           99.72         1.60            1.6% 24.30 24.30 0.00 1.60 124.02       1.3% 38,000        123.64         125.46       1.82            1.5% 34.20 34.20 0.00 1.82 159.66       1.2% 50,000        151.48         153.54       2.06            1.4% 45.00 45.00 0.00 2.06 198.54       1.0%   TABLE FOR MONTHLY CHARGES AND PERCENT INCREASE COMPARISON FOR IRRIGATION CUSTOMERS WITH A 1.5" METER BASE RATE 73.08$          COMMODITY RATE:  TIER 1 = 2.34$             FOR   0  ‐  35,000 GALLONS TIER 2 = 3.25$             FOR 35,001 ‐ 80,000 GALLONS TIER 3 = 4.53$             FOR 80,001 ‐ 160,000 GALLONS TIER 4 = 6.29$             FOR ALL USAGE OVER 160,000 GALLONS    TOTAL TOTAL GALLONS BILL AT THE BILL AT THE AMOUNT OF PERCENT CURRENT PROPOSED INCREASE IN TOTAL AMOUNT OF PERCENT USED IN CURRENT PROPOSED INCREASE INCREASED GPF GPF GPF MONTHLY MONTHLY INCREASED 1 MONTH RATE RATE Water Rate Water Rate INCREASE BILL 0 70.95           73.08         2.13            3.0% 0.00 0.00 0.00 2.13 73.08         3.0% 38,000        161.72         164.73       3.01            1.9% 34.20 34.20 0.00 3.01 198.93       1.5% 64,000        244.66         249.23       4.57            1.9% 57.60 57.60 0.00 4.57 306.83       1.5% 90,000        339.70         346.53       6.83            2.0% 81.00 81.00 0.00 6.83 427.53       1.6% 125,000      493.70         505.08       11.38          2.3% 112.50 112.50 0.00 11.38 617.58       1.9% TABLE FOR MONTHLY CHARGES AND PERCENT INCREASE COMPARISON FOR COMMERCIAL & MULTIFAMILY CUSTOMERS WITH A 1.5" METER BASE RATE 73.08$          COMMODITY RATE:  TIER 1 = 2.34$             FOR ALL WATER USAGE TIER 2 = N/A TIER 3 = N/A TIER 4 = N/A    TOTAL TOTAL GALLONS BILL AT THE BILL AT THE AMOUNT OF PERCENT CURRENT PROPOSED INCREASE IN TOTAL AMOUNT OF PERCENT USED IN CURRENT PROPOSED INCREASE INCREASED GPF GPF GPF MONTHLY MONTHLY INCREASED 1 MONTH RATE RATE Water Rate Water Rate INCREASE BILL 0 70.95           73.08         2.13            3.0% 0.00 0.00 0.00 2.13 73.08         3.0% 30,000        140.55         143.28       2.73            1.9% 27.00 27.00 0.00 2.73 170.28       1.6% 64,000        219.43         222.84       3.41            1.6% 57.60 57.60 0.00 3.41 280.44       1.2% 90,000        279.75         283.68       3.93            1.4% 81.00 81.00 0.00 3.93 364.68       1.1% 125,000      360.95         365.58       4.63            1.3% 112.50 112.50 0.00 4.63 478.08       1.0% B‐3 TABLE FOR MONTHLY CHARGES AND PERCENT INCREASE COMPARISON  = Average Water Use FOR IRRIGATION CUSTOMERS WITH A  2" METER BASE RATE 116.94$        COMMODITY RATE:  TIER 1 = 2.34$             FOR   0  ‐  56,000 GALLONS TIER 2 = 3.25$             FOR 56,001 ‐ 128,000 GALLONS TIER 3 = 4.53$             FOR 128,001 ‐ 256,000 GALLONS TIER 4 = 6.29$             FOR ALL USAGE OVER 256,000 GALLONS    TOTAL TOTAL GALLONS BILL AT THE BILL AT THE AMOUNT OF PERCENT CURRENT PROPOSED INCREASE IN TOTAL AMOUNT OF PERCENT USED IN CURRENT PROPOSED INCREASE INCREASED GPF GPF GPF MONTHLY MONTHLY INCREASED 1 MONTH RATE RATE Water Rate Water Rate INCREASE BILL 0 113.53         116.94       3.41            3.0% 0.00 0.00 0.00 3.41 116.94       3.0% 57,000        246.64         251.23       4.59            1.9% 51.30 51.30 0.00 4.59 302.53       1.5% 130,000      481.93         491.04       9.11            1.9% 117.00 117.00 0.00 9.11 608.04       1.5% 250,000      1,009.93      1,034.64    24.71          2.4% 225.00 225.00 0.00 24.71 1,259.64    2.0% 325,000      1,453.78      1,495.83    42.05          2.9% 292.50 292.50 0.00 42.05 1,788.33    2.4% TABLE FOR MONTHLY CHARGES AND PERCENT INCREASE COMPARISON FOR COMMERCIAL & MULTIFAMILY CUSTOMERS WITH A  2" METER BASE RATE 116.94$        COMMODITY RATE:  TIER 1 = 2.34$             FOR ALL WATER USAGE TIER 2 = N/A TIER 3 = N/A TIER 4 = N/A    TOTAL TOTAL GALLONS BILL AT THE BILL AT THE AMOUNT OF PERCENT CURRENT PROPOSED INCREASE IN TOTAL AMOUNT OF PERCENT USED IN CURRENT PROPOSED INCREASE INCREASED GPF GPF GPF MONTHLY MONTHLY INCREASED 1 MONTH RATE RATE Water Rate Water Rate INCREASE BILL 0 113.53         116.94       3.41            3.0% 0.00 0.00 0.00 3.41 116.94       3.0% 57,000        245.77         250.32       4.55            1.9% 51.30 51.30 0.00 4.55 301.62       1.5% 128,000      410.49         416.46       5.97            1.5% 115.20 115.20 0.00 5.97 531.66       1.1% 250,000      693.53         701.94       8.41            1.2% 225.00 225.00 0.00 8.41 926.94       0.9% 325,000      867.53         877.44       9.91            1.1% 292.50 292.50 0.00 9.91 1,169.94    0.9%   TABLE FOR MONTHLY CHARGES AND PERCENT INCREASE COMPARISON FOR IRRIGATION CUSTOMERS WITH A 3" METER BASE RATE 233.86$        COMMODITY RATE:  TIER 1 = 2.34$             FOR   0  ‐  112,000 GALLONS TIER 2 = 3.25$             FOR 112,001 ‐ 256,000 GALLONS TIER 3 = 4.53$             FOR 256,001 ‐ 512,000 GALLONS TIER 4 = 6.29$             FOR ALL USAGE OVER 512,000 GALLONS    TOTAL TOTAL GALLONS BILL AT THE BILL AT THE AMOUNT OF PERCENT CURRENT PROPOSED INCREASE IN TOTAL AMOUNT OF PERCENT USED IN CURRENT PROPOSED INCREASE INCREASED GPF GPF GPF MONTHLY MONTHLY INCREASED 1 MONTH RATE RATE Water Rate Water Rate INCREASE BILL 0 227.05         233.86       6.81            3.0% 0.00 0.00 0.00 6.81 233.86       3.0% 50,000        343.05         350.86       7.81            2.3% 45.00 45.00 0.00 7.81 395.86       2.0% 150,000      608.11         619.44       11.33          1.9% 135.00 135.00 0.00 11.33 754.44       1.5% 300,000      1,139.85      1,163.26    23.41          2.1% 270.00 270.00 0.00 23.41 1,433.26    1.7% 500,000      2,019.85      2,069.26    49.41          2.4% 450.00 450.00 0.00 49.41 2,519.26    2.0% B‐4 TABLE FOR MONTHLY CHARGES AND PERCENT INCREASE COMPARISON  = Average Water Use FOR COMMERCIAL & MULTIFAMILY CUSTOMERS WITH A 3" METER BASE RATE 233.86$        COMMODITY RATE:  TIER 1 = 2.34$             FOR ALL WATER USAGE TIER 2 = N/A TIER 3 = N/A TIER 4 = N/A    TOTAL TOTAL GALLONS BILL AT THE BILL AT THE AMOUNT OF PERCENT CURRENT PROPOSED INCREASE IN TOTAL AMOUNT OF PERCENT USED IN CURRENT PROPOSED INCREASE INCREASED GPF GPF GPF MONTHLY MONTHLY INCREASED 1 MONTH RATE RATE Water Rate Water Rate INCREASE BILL 0 227.05         233.86       6.81            3.0% 0.00 0.00 0.00 6.81 233.86       3.0% 50,000        343.05         350.86       7.81            2.3% 45.00 45.00 0.00 7.81 395.86       2.0% 150,000      575.05         584.86       9.81            1.7% 135.00 135.00 0.00 9.81 719.86       1.4% 300,000      923.05         935.86       12.81          1.4% 270.00 270.00 0.00 12.81 1,205.86    1.1% 500,000      1,387.05      1,403.86    16.81          1.2% 450.00 450.00 0.00 16.81 1,853.86    0.9% TABLE FOR MONTHLY CHARGES AND PERCENT INCREASE COMPARISON FOR IRRIGATION CUSTOMERS WITH A  4" METER BASE RATE 365.41$        COMMODITY RATE:  TIER 1 = 2.34$             FOR   0  ‐  175,000 GALLONS TIER 2 = 3.25$             FOR 175,001 ‐ 400,000 GALLONS TIER 3 = 4.53$             FOR 400,001 ‐ 800,000 GALLONS TIER 4 = 6.29$             FOR ALL USAGE OVER 800,000 GALLONS    TOTAL TOTAL GALLONS BILL AT THE BILL AT THE AMOUNT OF PERCENT CURRENT PROPOSED INCREASE IN TOTAL AMOUNT OF PERCENT USED IN CURRENT PROPOSED INCREASE INCREASED GPF GPF GPF MONTHLY MONTHLY INCREASED 1 MONTH RATE RATE Water Rate Water Rate INCREASE BILL 0 354.77         365.41       10.64          3.0% 0.00 0.00 0.00 10.64 365.41       3.0% 300,000      1,159.52      1,181.16    21.64          1.9% 270.00 270.00 0.00 21.64 1,451.16    1.5% 550,000      2,138.52      2,185.66    47.14          2.2% 495.00 495.00 0.00 47.14 2,680.66    1.8% 700,000      2,798.52      2,865.16    66.64          2.4% 630.00 630.00 0.00 66.64 3,495.16    1.9% 850,000      3,541.02      3,632.66    91.64          2.6% 765.00 765.00 0.00 91.64 4,397.66    2.1% TABLE FOR MONTHLY CHARGES AND PERCENT INCREASE COMPARISON FOR COMMERCIAL & MULTIFAMILY CUSTOMERS WITH A  4" METER BASE RATE 365.41$        COMMODITY RATE:  TIER 1 = 2.34$             FOR ALL WATER USAGE TIER 2 = N/A TIER 3 = N/A TIER 4 = N/A    TOTAL TOTAL GALLONS BILL AT THE BILL AT THE AMOUNT OF PERCENT CURRENT PROPOSED INCREASE IN TOTAL AMOUNT OF PERCENT USED IN CURRENT PROPOSED INCREASE INCREASED GPF GPF GPF MONTHLY MONTHLY INCREASED 1 MONTH RATE RATE Water Rate Water Rate INCREASE BILL 0 354.77         365.41       10.64          3.0% 0.00 0.00 0.00 10.64 365.41       3.0% 300,000      1,050.77      1,067.41    16.64          1.6% 270.00 270.00 0.00 16.64 1,337.41    1.3% 550,000      1,630.77      1,652.41    21.64          1.3% 495.00 495.00 0.00 21.64 2,147.41    1.0% 700,000      1,978.77      2,003.41    24.64          1.2% 630.00 630.00 0.00 24.64 2,633.41    0.9% 850,000      2,326.77      2,354.41    27.64          1.2% 765.00 765.00 0.00 27.64 3,119.41    0.9%   B‐5 TABLE FOR MONTHLY CHARGES AND PERCENT INCREASE COMPARISON  = Average Water Use FOR RESIDENTIAL & IRRIGATION CUSTOMERS WITH A  6" METER BASE RATE 730.83$        COMMODITY RATE:  TIER 1 = 2.34$             FOR   0  ‐  860,000 GALLONS TIER 2 = 3.25$             FOR 860,001 ‐ 2,000,000 GALLONS TIER 3 = 4.53$             FOR 2,000,001 ‐ 3,500,000 GALLONS TIER 4 = 6.29$             FOR ALL USAGE OVER 3,500,000 GALLONS    TOTAL TOTAL GALLONS BILL AT THE BILL AT THE AMOUNT OF PERCENT CURRENT PROPOSED INCREASE IN TOTAL AMOUNT OF PERCENT USED IN CURRENT PROPOSED INCREASE INCREASED GPF GPF GPF MONTHLY MONTHLY INCREASED 1 MONTH RATE RATE Water Rate Water Rate INCREASE BILL 0 709.54         730.83       21.29          3.0% 0.00 0.00 0.00 21.29 730.83       3.0% 425,000      1,695.54      1,725.33    29.79          1.8% 382.50       382.50     0.00 29.79 2,107.83    1.4% 1,000,000   3,151.34      3,198.23    46.89          1.5% 900.00       900.00     0.00 46.89 4,098.23    1.2% 1,500,000   4,746.34      4,823.23    76.89          1.6% 1,350.00    1,350.00 0.00 76.89 6,173.23    1.3% 2,000,000   6,341.34      6,448.23    106.89        1.7% 1,800.00    1,800.00 0.00 106.89 8,248.23    1.3% TABLE FOR MONTHLY CHARGES AND PERCENT INCREASE COMPARISON FOR COMMERCIAL & MULTIFAMILY CUSTOMERS WITH A  6" METER BASE RATE 730.83$        COMMODITY RATE:  TIER 1 = 2.34$             FOR ALL WATER USAGE TIER 2 = N/A TIER 3 = N/A TIER 4 = N/A    TOTAL TOTAL GALLONS BILL AT THE BILL AT THE AMOUNT OF PERCENT CURRENT PROPOSED INCREASE IN TOTAL AMOUNT OF PERCENT USED IN CURRENT PROPOSED INCREASE INCREASED GPF GPF GPF MONTHLY MONTHLY INCREASED 1 MONTH RATE RATE Water Rate Water Rate INCREASE BILL 0 709.54         730.83       21.29          3.0% 0.00 0.00 0.00 21.29 730.83       3.0% 425,000      1,695.54      1,725.33    29.79          1.8% 382.50       382.50     0.00 29.79 2,107.83    1.4% 1,000,000   3,029.54      3,070.83    41.29          1.4% 900.00       900.00     0.00 41.29 3,970.83    1.1% 1,500,000   4,189.54      4,240.83    51.29          1.2% 1,350.00    1,350.00 0.00 51.29 5,590.83    0.9% 2,000,000   5,349.54      5,410.83    61.29          1.1% 1,800.00    1,800.00 0.00 61.29 7,210.83    0.9% TABLE FOR MONTHLY CHARGES AND PERCENT INCREASE COMPARISON FOR CUSTOMERS WITH A  8" METER BASE RATE 1,169.32$     COMMODITY RATE:  TIER 1 = 2.34$             FOR   0  ‐  860,000 GALLONS TIER 2 = 3.25$             FOR 860,001 ‐ 2,000,000 GALLONS TIER 3 = 4.53$             FOR 2,000,001 ‐ 3,500,000 GALLONS TIER 4 = 6.29$             FOR ALL USAGE OVER 3,500,000 GALLONS    TOTAL TOTAL GALLONS BILL AT THE BILL AT THE AMOUNT OF PERCENT CURRENT PROPOSED INCREASE IN TOTAL AMOUNT OF PERCENT USED IN CURRENT PROPOSED INCREASE INCREASED GPF GPF GPF MONTHLY MONTHLY INCREASED 1 MONTH RATE RATE Water Rate Water Rate INCREASE BILL 0 1,135.26      1,169.32    34.06          3.0% 0.00 0.00 0.00 34.06 1,169.32    3.0% 425,000      2,121.26      2,163.82    42.56          2.0% 382.50       382.50     0.00 42.56 2,546.32    1.7% 1,000,000   3,577.06      3,636.72    59.66          1.7% 900.00       900.00     0.00 59.66 4,536.72    1.3% 1,500,000   5,172.06      5,261.72    89.66          1.7% 1,350.00    1,350.00 0.00 89.66 6,611.72    1.4% 2,000,000   6,767.06      6,886.72    119.66        1.8% 1,800.00    1,800.00 0.00 119.66 8,686.72    1.4% (There are no active 8‐inch potable meters in the OVWU system) B‐6 TABLE FOR MONTHLY CHARGES AND PERCENT INCREASE COMPARISON  = Average Water Use FOR COMMERCIAL AND MULTIFAMILY CUSTOMERS WITH A  8" METER BASE RATE 1,169.32$     COMMODITY RATE:  TIER 1 = 2.34$          FOR ALL WATER USAGE TIER 2 = N/A TIER 3 = N/A TIER 4 = N/A    TOTAL TOTAL GALLONS BILL AT THE BILL AT THE AMOUNT OF PERCENT CURRENT PROPOSED INCREASE IN TOTAL AMOUNT OF PERCENT USED IN CURRENT PROPOSED INCREASE INCREASED GPF GPF GPF MONTHLY MONTHLY INCREASED 1 MONTH RATE RATE Water Rate Water Rate INCREASE BILL 0 1,135.26      1,169.32    34.06          3.0% 0.00 0.00 0.00 34.06 1,169.32    3.0% 425,000      2,121.26      2,163.82    42.56          2.0% 382.50       382.50     0.00 42.56 2,546.32    1.7% 1,000,000   3,455.26      3,509.32    54.06          1.6% 900.00       900.00     0.00 54.06 4,409.32    1.2% 1,500,000   4,615.26      4,679.32    64.06          1.4% 1,350.00    1,350.00 0.00 64.06 6,029.32    1.1% 2,000,000   5,775.26      5,849.32    74.06          1.3% 1,800.00    1,800.00 0.00 74.06 7,649.32    1.0% (There are no active 8‐inch potable meters in the OVWU system) TABLE FOR MONTHLY CHARGES AND PERCENT INCREASE COMPARISON FOR CUSTOMERS WITH A  1.5" METER ‐ RECLAIMED WATER USE BASE RATE 73.08$          COMMODITY RATE:  TIER 1 = 2.27$              FOR ALL WATER USAGE TIER 2 = N/A TIER 3 = N/A TIER 4 = N/A    TOTAL TOTAL GALLONS BILL AT THE BILL AT THE AMOUNT OF PERCENT CURRENT PROPOSED INCREASE IN TOTAL AMOUNT OF PERCENT USED IN CURRENT PROPOSED INCREASE INCREASED GPF GPF GPF MONTHLY MONTHLY INCREASED 1 MONTH RATE RATE Water Rate Water Rate INCREASE BILL 0 70.95           73.08         2.13            3.0% 0.00 0.00 ‐             2.13         73.08         3.0% 50,000        184.45         186.58       2.13            1.2% 23.50          23.50        ‐             2.13         210.08       1.0% 135,000      377.40         379.53       2.13            0.6% 63.45          63.45        ‐             2.13         442.98       0.5% 200,000      524.95         527.08       2.13            0.4% 94.00          94.00        ‐             2.13         621.08       0.3% 250,000      638.45         640.58       2.13            0.3% 117.50       117.50      ‐             2.13         758.08       0.3% TABLE FOR MONTHLY CHARGES AND PERCENT INCREASE COMPARISON FOR CUSTOMERS WITH A  2" METER ‐ RECLAIMED WATER USE BASE RATE 116.94$        COMMODITY RATE:  TIER 1 = 2.27$              FOR ALL WATER USAGE TIER 2 = N/A TIER 3 = N/A TIER 4 = N/A    TOTAL TOTAL GALLONS BILL AT THE BILL AT THE AMOUNT OF PERCENT CURRENT PROPOSED INCREASE IN TOTAL AMOUNT OF PERCENT USED IN CURRENT PROPOSED INCREASE INCREASED GPF GPF GPF MONTHLY MONTHLY INCREASED 1 MONTH RATE RATE Water Rate Water Rate INCREASE BILL 0 113.53         116.94       3.41            3.0% 0.00 0.00 0.00 3.41         116.94       3.0% 150,000      411.45         413.58       2.13            0.5% 70.50          70.50        ‐             2.13         484.08       0.4% 265,000      672.50         674.63       2.13            0.3% 124.55       124.55      ‐             2.13         799.18       0.3% 450,000      1,092.45      1,094.58    2.13            0.2% 211.50       211.50      ‐             2.13         1,306.08    0.2% 600,000      1,432.95      1,435.08    2.13            0.1% 282.00       282.00      ‐             2.13         1,717.08    0.1% B‐7 TABLE FOR MONTHLY CHARGES AND PERCENT INCREASE COMPARISON  = Average Water Use FOR CUSTOMERS WITH A  3" METER ‐ RECLAIMED WATER USE BASE RATE 233.86$        COMMODITY RATE:  TIER 1 = 2.27$              FOR ALL WATER USAGE TIER 2 = N/A TIER 3 = N/A TIER 4 = N/A    TOTAL TOTAL GALLONS BILL AT THE BILL AT THE AMOUNT OF PERCENT CURRENT PROPOSED INCREASE IN TOTAL AMOUNT OF PERCENT USED IN CURRENT PROPOSED INCREASE INCREASED GPF GPF GPF MONTHLY MONTHLY INCREASED 1 MONTH RATE RATE Water Rate Water Rate INCREASE BILL 0 227.05         233.86       6.81            3.0% 0.00 0.00 0.00 6.81         233.86       3.0% 20,000        272.45         279.26       6.81            2.5% 9.40            9.40          ‐             6.81         288.66       2.4% 50,000        340.55         347.36       6.81            2.0% 23.50          23.50        ‐             6.81         370.86       1.9% 100,000      454.05         460.86       6.81            1.5% 47.00          47.00        ‐             6.81         507.86       1.4% 150,000      567.55         574.36       6.81            1.2% 70.50          70.50        ‐             6.81         644.86       1.1% TABLE FOR MONTHLY CHARGES AND PERCENT INCREASE COMPARISON FOR CUSTOMERS WITH A  4" METER ‐ RECLAIMED WATER USE BASE RATE 365.41$        COMMODITY RATE:  TIER 1 = 2.27$              FOR ALL WATER USAGE TIER 2 = N/A TIER 3 = N/A TIER 4 = N/A    TOTAL TOTAL GALLONS BILL AT THE BILL AT THE AMOUNT OF PERCENT CURRENT PROPOSED INCREASE IN TOTAL AMOUNT OF PERCENT USED IN CURRENT PROPOSED INCREASE INCREASED GPF GPF GPF MONTHLY MONTHLY INCREASED 1 MONTH RATE RATE Water Rate Water Rate INCREASE BILL 0 354.77         365.41       10.64          3.0% 0.00 0.00 0.00 10.64       365.41       3.0% 209,000      829.20         839.84       10.64          1.3% 98.23          98.23        ‐             10.64       938.07       1.1% 300,000      1,035.77      1,046.41    10.64          1.0% 141.00       141.00      ‐             10.64       1,187.41    0.9% 450,000      1,376.27      1,386.91    10.64          0.8% 211.50       211.50      ‐             10.64       1,598.41    0.7% 600,000      1,716.77      1,727.41    10.64          0.6% 282.00       282.00      ‐             10.64       2,009.41    0.5%   TABLE FOR MONTHLY CHARGES AND PERCENT INCREASE COMPARISON FOR CUSTOMERS WITH A  6" METER ‐ RECLAIMED WATER USE BASE RATE 730.83$        COMMODITY RATE:  TIER 1 = 2.27$              FOR ALL WATER USAGE TIER 2 = N/A TIER 3 = N/A TIER 4 = N/A    TOTAL TOTAL GALLONS BILL AT THE BILL AT THE AMOUNT OF PERCENT CURRENT PROPOSED INCREASE IN TOTAL AMOUNT OF PERCENT USED IN CURRENT PROPOSED INCREASE INCREASED GPF GPF GPF MONTHLY MONTHLY INCREASED 1 MONTH RATE RATE Water Rate Water Rate INCREASE BILL 0 709.54         730.83       21.29          3.0% 0.00 0.00 0.00 21.29       730.83       3.0% 470,000         1,776.44      1,797.73    21.29          1.2% 220.90       220.90      ‐             21.29       2,018.63    1.1% 5,000,000      12,059.54    12,080.83  21.29          0.2% 2,350.00    2,350.00 ‐             21.29       14,430.83 0.1% 10,000,000   23,409.54    23,430.83  21.29          0.1% 4,700.00    4,700.00 ‐             21.29       28,130.83 0.1% 15,000,000   34,759.54    34,780.83  21.29          0.1% 7,050.00    7,050.00 ‐             21.29       41,830.83 0.1% 20,000,000   46,109.54    46,130.83  21.29          0.0% 9,400.00    9,400.00 ‐             21.29       55,530.83 0.0% B‐8   APPENDIX   C      5‐Year Capital Improvement Schedules      C‐1  Operating Fund  C‐1  Groundwater Preservation Fee  C‐2  Alternative Water Resource Development Impact Fee Fund  C‐2  Potable Water System Development Impact Fee Fund    PROJECTS 2016-17 2017-18 2018-19 2019-20 2020-21 5 YearTotal PRODUCTION Hydropneumatic Tank Replacement - Wells 60,000$ 60,000$ 60,000$ 180,000$ Replace Well Pumps 75,000$ 75,000$ 100,000$ 250,000$ Well E2 Upgrade 150,000$ 150,000$ Well Production Modifications 50,000$ 50,000$ 50,000$ 50,000$ 200,000$ Water Quality Control Program 70,000$ 70,000$ Glover Reservoir Coating & Lining 100,000$ 100,000$ Big Wash Reservoir Coating 100,000$ 100,000$ El Con Storage - Operational Improvements 50,000$ 50,000$ Booster Station Modifications 50,000$ 50,000$ 50,000$ 50,000$ 200,000$ Water Plant 4 Site Improvements 50,000$ 50,000$ Replace Crimson Canyon Booster Station 250,000$ 250,000$ Hydropneumatic Tank Replacement - Boosters 60,000$ 60,000$ 60,000$ 180,000$ High Mesa E and F Zone Bstr. Enhancements 50,000$ 50,000$ Production Facility Building Retrofit 80,000$ 100,000$ 180,000$ Wall Upgrades and Improvements 75,000$ 75,000$ SCADA server and monitors 50,000$ 50,000$ SCADA Legacy Replacement 100,000$ 100,000$ Golf Course Metering Stations Modifications 25,000$ 25,000$ SUBTOTAL 660,000$ 420,000$ 520,000$ 210,000$ 450,000$ 2,260,000$ DISTRIBUTION Main Valve Replacements 50,000$ 50,000$ 50,000$ 50,000$ 200,000$ W. Lambert Ln. 12" Main Relocation (DIS)600,000$ 600,000$ Tangerine Potable Main Extension (DIS) RTA 20,000$ 20,000$ System Connection Upgrades 50,000$ 50,000$ La Cholla -Lambert to Tangerine (RTA)70,000$ 500,000$ 570,000$ Relocate 3 PRV'S OV Area 100,000$ 100,000$ Rancho Verde Hydrants 200,000$ 200,000$ Hilton Hotel & Casitas Main Replacement 100,000$ 1,300,000$ 700,000$ 2,100,000$ OV Community & Rec. Center Main Repl.600,000$ 600,000$ Linda Vista Citrus Tracts Main Replacements 250,000$ 250,000$ SUBTOTAL 890,000$ 750,000$ 150,000$ 1,950,000$ 950,000$ 4,690,000$ TOTAL ALL CAPITAL PROJECTS 1,550,000$ 1,170,000$ 670,000$ 2,160,000$ 1,400,000$ 6,950,000$ VEHICLES All Divsions 244,000$ 70,000$ 75,000$ 70,000$ 125,000$ 584,000$ TOTAL ALL CAPITAL EXPENDITURES 1,794,000$ 1,240,000$ 745,000$ 2,230,000$ 1,525,000$ 7,534,000$ Project Name 2016-17 2017-18 2018-19 2019-20 2020-21 5 Year Total 24 Inch Reclaimed Main Tangerine (DIS) RTA 1,500,000$ 1,500,000$ Additional Reclaimed Booster Pump Installation 200,000$ 200,000$ TOTAL 1,700,000$ -$ -$ -$ -$ 1,700,000$ ORO VALLEY WATER UTILITY OPERATING FUND CAPITAL IMPROVEMENTS PROJECTS EXISTING POTABLE SYSTEM IMPROVEMENTS C-1 GROUNDWATER PRESERVATION FEE CAPITAL IMPROVEMENTS PROJECTS RECLAIMED SYSTEM IMPROVEMENTS Project Name 2016-17 2017-18 2018-19 2019-20 2020-21 5 Year Total E-C PRV Naranja Reservoir 100,000$ 100,000$ CAP Wheeling TW Naranja 1000 AF/Yr 400,000$ 400,000$ 800,000$ CAP La Cholla D-E Blending Booster Station 700,000$ 700,000$ TW Naranja Booster Station Upgrade 1,200,000$ 1,200,000$ 24" pipe Naranja/ La Cholla/Tangerine 1,600,000$ 1,200,000$ 2,800,000$ TW Oasis Booster Station Upgrades 30,000$ 100,000$ 130,000$ TW 12" Pipe 80,000$ 800,000$ 880,000$ TW 16" Pipe Oasis Rd.100,000$ 1,000,000$ 1,100,000$ TOTAL 100,000$ -$ 400,000$ 4,110,000$ 3,100,000$ 7,710,000$ Project Name 2016-17 2017-18 2018-19 2019-20 2020-21 5 Year Total Property Acquisition - Reservoir Site 500,000$ 500,000$ Booster Station 150,000$ 150,000$ 1.0 MG Reservoir 150,000$ 150,000$ TOTAL -$ -$ -$ 500,000$ 300,000$ 800,000$ C-2 ORO VALLEY WATER UTILITY GROWTH RELATED POTABLE WATER PROJECTS ALTERNATIVE WATER RESOURCES DEVELOPMENT IMPACT FEE FUND CAPITAL IMPROVEMENTS PROJECTS CAP WATER DELIVERY PROJECTS ORO VALLEY WATER UTILITY POTABLE WATER SYSTEM DEVELOPMENT IMPACT FEE FUND CAPITAL IMPROVEMENTS PROJECTS APPENDIX   D      Assumptions for Preferred Financial Scenario      D‐1  Operating Fund  D‐6  Alternative Water Resources Development Impact Fee Fund  D‐7  Potable Water System Development Impact Fee Fund    PREFERRED FINANCIAL SCENARIO  ASSUMPTIONS FOR OPERATING FUND      Growth   Single Family Residential (SFR) growth rates were provided by the Finance Department on 8/29/16 and  are consistent with Town financial forecasting.  Other growth rates include commercial, irrigation and  multi‐family connections.     Connections FY 16‐17 FY 17‐18 FY 18‐19 FY 19‐20 FY 20‐21  SFR 230 250 275 225 200  Other      8   11      7      6      12        Current Water Rate Structure     The following base rates are for both the potable and reclaimed water meters:    Meter Sizes   (in inches) Amount  5/8 x 3/4      $       14.19  3/4 x 3/4      $       21.29  1      $       35.48  1.5      $       70.95  2      $     113.53  3      $     227.05  4      $     354.77  6      $     709.54  8      $  1,135.26    The following commodity rates are the cost per 1,000 gallons for potable and reclaimed water use:    Classifications Tier 1 Tier 2 Tier 3 Tier 4  Single Family Residential $2.32 $3.19 $4.40 $6.05  Irrigation $2.32 $3.19 $4.40 $6.05  Multi‐family Residential $2.32 ‐‐‐ ‐‐‐ ‐‐‐  Commercial $2.32 ‐‐‐ ‐‐‐ ‐‐‐  Construction Water $7.05 ‐‐‐ ‐‐‐ ‐‐‐  Reclaimed Water $2.27 ‐‐‐ ‐‐‐ ‐‐‐  GPF – Potable $0.90 ‐‐‐ ‐‐‐ ‐‐‐  GPF – Reclaimed $0.47 ‐‐‐ ‐‐‐ ‐‐‐      Proposed Water Rate Structure for FY 2016‐17     The following are the proposed base rates for both potable and reclaimed water meters:    Meter Sizes   (in inches) Amount  5/8 x 3/4      $       14.62  3/4 x 3/4      $       21.93  1      $       36.54  1.5      $       73.08  2      $     116.94  3      $     233.86  4      $     365.41  6      $     730.83  8      $  1,169.32      D‐1  PREFERRED FINANCIAL SCENARIO    ASSUMPTIONS FOR OPERATING FUND continued    The following proposed commodity rates are the cost per 1,000 gallons for potable and reclaimed water use:     Classifications Tier 1 Tier 2 Tier 3 Tier 4  Single Family Residential $2.34 $3.25 $4.53 $6.29  Irrigation $2.34 $3.25 $4.53 $6.29  Multi‐family Residential $2.34 ‐‐‐ ‐‐‐ ‐‐‐  Commercial $2.34 ‐‐‐ ‐‐‐ ‐‐‐  Construction Water $7.29 ‐‐‐ ‐‐‐ ‐‐‐  Reclaimed Water $2.27 ‐‐‐ ‐‐‐ ‐‐‐  GPF – Potable $0.90 ‐‐‐ ‐‐‐ ‐‐‐  GPF – Reclaimed $0.47 ‐‐‐ ‐‐‐ ‐‐‐    There are no proposed changes to the usage allowed in each tier of the SF Residential and Irrigation  classifications.     Proposed Potable Water Rate Increases  The “overall increase” and “monthly impact” are representative of a residential customer  with a 5/8 x 3/4 inch water meter using 8,000 gallons of water per month.                        Base                        Overall       Monthly                      Rate        Tier 1      Tier 2     Tier 3      Tier 4          GPF Increase        Impact                   FY 16‐17   3.0% 1.00%     2.0%       3.0%       4.0%           0.0%        1.5%        $0.63                  FY 17‐18   2.0% 1.50%     2.0%       3.0%       4.0%           0.0%      1.5%        $0.64                   FY 18‐19   2.0% 1.50%     2.0%       3.0%       4.0%           0.0%      1.5%        $0.65                  FY 19‐20   2.0% 1.50%     2.0%       3.0%       4.0%           0.0%      1.5%        $0.65              FY 20‐21 2.0% 1.50%     2.0%       3.0%       4.0%           0.0%      1.5%        $0.66    Proposed Reclaimed Water Rate Increases   The proposed reclaimed rate increases are shown below:       FY 16‐17      FY 17‐18      FY 18‐19      FY 19‐20      FY 20‐21       Base Rate       3.0%             2.0%             2.0%             2.0%             2.0%   Commodity Rate      0.0%          1.5%             1.5%             1.5%             1.5%    Groundwater Preservation Fee Rates (cost per 1,000 gallons)   There are no proposed changes in the GPF throughout the five year projection period.    Water Use Trends  Projections include similar water use trends as those in FY 15‐16.  The average monthly water use for a  residential customer with a 5/8 x 3/4 inch water meter remained at 7,300 gallons per month the same as it was  in FY 2014‐15.      Other Revenue  Other revenue is based on FY 16‐17 proposed budget. With the exception of revenue from sewer billing, other  revenue is not projected to increase because misc. charges fluctuate annually. Other revenue includes late  fees, reconnect fees, new service establishment fees, sewer billing, stormwater billing and meter income.  Sewer billing is projected to increase by 3% in FY 2018‐19.     Beginning Cash Balance  Taken from 6/30/16 Balance Sheet of respective funds (MUNIS reports dated 9/12/16)            D‐2  PREFERRED FINANCIAL SCENARIO    ASSUMPTIONS FOR OPERATING FUND continued    Interest Income  The interest rate for all 5 years in the analysis period is projected to be 2.0%. Interest rate provided by the  Finance Department on 8/29/16.    Personnel Costs  One new employee was added in FY 16‐17. No other new employees were added during the projection period.   The following increases were provided by the Finance Department on 8/29/16 and are consistent with Town  financial forecasting: the annual merit increase is projected to be 3.5% annually and health care costs are  projected to increase by 2% annually. It is projected that the state pension will remain constant over the five  year projection period.    O&M Costs ‐ Potable  Based on Utility’s proposed budget for FY 16‐17 and updated with the most recent information.  Projected 10% increase in power costs for a potential Tucson Electric rate increase in the 4th quarter of   FY 17‐18 and again in the 4th quarter of FY 20‐21.    O&M Costs ‐ Reclaimed  Based on Utility’s proposed budget for FY 16‐17 and updated with the most recent information.  Projected 10% increase in power costs for a potential Tucson Electric rate increase in the 4th quarter of  FY 17‐18 and again in the 4th quarter of FY 20‐21.    Inflation Rates   The following inflation rates were provided by the Town’s Finance Department on 8/29/16:    FY 16‐17 FY 17‐18 FY 18‐19 FY 19‐20 FY 20‐21  1.0% 1.0% 1.0% 1.0% 1.0%    Water Resource Management Costs   Costs are for the purchase of groundwater extinguishment credits.  These credits will be  pledged to the  Groundwater Allowance Account to help maintain a balance that will facilitate growth in the water service  area.  Annual costs for FY 16‐17 and FY 17‐18 have been estimated.  The actual volume purchased will depend  on the number of acre feet purchased and the negotiated cost per acre foot.    Reclaimed Water Wheeling Costs  Pursuant to the existing IGA, the reclaimed water is delivered on a non‐interruptible basis at an interruptible  rate. Inflationary increases of 2% are included annually.  Included in the wheeling costs are funds to be paid to  Tucson Water for the purchase of their effluent when Oro Valley doesn’t produce enough effluent. An average  of $26,200 per year has been included in the reclaimed operating costs for FY 2016‐17 through FY 2020‐21.     CAP Wheeling Costs  Costs include the fees charged by Tucson Water to wheel the CAP water through their recharge and recovery  system.  Tucson Water fees are fixed pursuant to an IGA and are being renegotiated in FY 2016‐17. It is  assumed that there were be a 10% increase in the power component and a 5% increase in the O&M  component for and estimated wheeling rate of $580 per AF. It is also assumed that the Utility will wheel 2,000  AF per year for FY 2016‐17 through FY 2018‐19. The amount wheeled is projected to increase to 2,300 AF for FY  2019‐20 and increase to 2,600 AF in FY 2020‐21.    CAP Recharge Costs  Costs are based on the rate schedule adopted by CAP 6/09/16. The figures represent the annual cost to deliver  the Utility’s entire allotment of CAP water (10,305 AF) for recharge.      D‐3  PREFERRED FINANCIAL SCENARIO    ASSUMPTIONS FOR OPERATING FUND continued    Capital Improvements – Operating Fund   The following table identifies the amount of the capital projects for the existing potable water system for  each fiscal year and the related financing as identified in the revised 15 Year CIP dated 2/23/16:     Fiscal           Total    Project Financing      Year  Capital Costs Cash Reserves   New Debt        2016‐17                 $  1,794,000 $ 1,794,000          ‐‐‐‐‐‐   2017‐18                 $  1,240,000 $    120 000 $ 1,120,000   2018‐19                 $      745,000 $    225,000 $    520,000   2019‐20                 $  2,230,000 $      70,000 $ 2,160,000   2020‐21                 $  1,525,000 $    125,000 $ 1,400,000                     $  7,534,000 $ 2,334,000 $ 5,200,000      Assumed additional debt in the amount of $5,200,000 is incurred in FY 17‐18 for existing system improvements  through the sale of bonds at an interest rate of 3% over 20 years.     Capital Improvements – Groundwater Preservation Fee   The amount of the capital projects for the reclaimed water system is $1,700,000 for FY 2016‐17. There are no   other capital projects in the remaining for years.     Debt Service & Minimum Debt Service Coverage Requirement   The following tables identify the debt service included in this proforma:      Bonds  Type  Description  Amortization Schedule By FY 16‐17 Payment   2008  Sr. Lien  Reclaimed Ph. 2  WIFA     $    314,798   2009  Sr. Lien  Existing System CIP  WIFA     $    150,820   2012  Sr. Lien  Refunding (Reclaim Ph. 1) Stone & Youngberg     $ 1,069,449   2012  Sr. Lien  Refunding (2003)  Stone & Youngberg     $    589,716   2013  Sr. Lien  Refunding (2003)  Stifel & Nicolaus & Co.   $ 1,033,428   2014  Sr. Lien  AMI Project  WIFA     $    395,534   2019  Sr. Lien  Existing System CIP  TBD     $                0               $ 3,553,788      The minimum debt service coverage for the Sr. Lien debt is 1.30.      Bonds  Type  Description  Amortization Schedule By FY 16‐17 Payment   2007  Excise Tax Refunding (1996 & 1999) Stone & Youngberg     $ 1,259,936   2015  Excise Tax Refunding (2005)  Stifel & Nicolaus & Co.   $    151,634               $ 1,411,570     The minimum debt service coverage for the excise tax pledged debt is 1.0.      Cash Reserve Requirement  Mayor & Town Council Water Policies require the Utility to maintain cash reserves in the Operating Fund of not  less than 20% of the combined total of the annual budgeted amounts for personnel, O&M and debt service.  This specifically excludes costs for capital projects, depreciation, amortization and contingency              D‐4                                                               PREFERRED FINANCIAL SCENARIO    ASSUMPTIONS FOR AWRDIF FUND      Growth  SFR growth rates were provided by the Finance Department on 8/29/16 and are consistent with Town  financial forecasting.  Other Service Units (SU’s) include commercial, irrigation and multi‐family connections.      FY 15‐16 FY 16‐17 FY 17‐18 FY 18‐19 FY 19‐20  SFR  SU’s 230 250 275 225 200  Other SU’s   47     31   36   20   30    AWRD Impact Fees  Impact fees are $4,045 per EDU, Ordinance No. (O) 14‐05, effective 7/01/14  Not projected to change in the five year projection period.    Beginning Cash Balance  Taken from 6/30/16 Balance Sheet of respective funds (MUNIS reports dated 9/12/16).  Interest Income  The interest rate for all five years in the analysis period is projected to be 2.0%. Interest rate was provided  by the Finance Department on 8/29/16.    CAP Capital Costs  Based on 3,557 AF at rate schedule adopted by CAP 6/09/16.    Debt Service  There is no debt service in this fund during the five year projection period.    Capital Improvements   The following table identifies the amount of the CAP water capital projects for each fiscal year  and the related financing as identified in the revised 15 Year CIP dated 2/23/16:       Fiscal           Total         Project Financing      Year  Capital Costs Cash Reserves              New Debt                 2016‐17  $   100,000 $   100,000    ‐‐‐‐‐‐   2017‐18             ‐‐‐‐‐             ‐‐‐‐‐      ‐‐‐‐‐‐   2018‐19  $   400,000 $   400,000    ‐‐‐‐‐‐   2019‐20  $4,110,000 $4,110,000    ‐‐‐‐‐‐   2020‐21  $3,100,000 $3,100,000    ‐‐‐‐‐‐     $7,710,000 $7,710,000                            D‐5  PREFERRED FINANCIAL SCENARIO    ASSUMPTIONS FOR PWSDIF FUND      Growth  SFR growth rates were provided by the Finance Department on 8/29/16 and are consistent with Town  financial forecasting. Other Service Units (SU’s) include commercial, irrigation and multi‐family connections.      FY 16‐17 FY 17‐18 FY 18‐19 FY 19‐20 FY 20‐21  SFR  SU’s 230 250 275 225 200  Other SU’s   47  31   36   20   30    PWSD Impact Fees  Impact fees are $2,015 per EDU, Ordinance No. (O) 14‐05, effective 7/01/14.  Not projected to change in the five year projection period.    Beginning Cash Balance  Taken from 6/30/16 Balance Sheet of respective funds. (MUNIS reports dated 9/12/16).    Interest Income  The interest rate for all five years in the analysis period is projected to be 2.0%. Interest rate was provided   by the Finance Department on 8/29/16.    Debt Service  There is no new debt in this fund during the projection period. The following table identifies the existing debt service  included in this proforma:      Bonds  Type          Description  Amortization Schedule By  FY 16‐17 Payment    2012  Sr. Lien          Refunding (2003) Stone & Youngberg          $  329,916    The minimum debt service coverage for the Sr. Lien debt is 1.30.    Capital Improvements  The following table identifies the amount of growth‐related capital projects for each fiscal year  and the related financing as identified in the revised 15 Year CIP dated 2/23/16:       Fiscal           Total         Project Financing      Year  Capital Costs Cash Reserves              New Debt                 2016‐17             ‐‐‐‐‐             ‐‐‐‐‐      ‐‐‐‐‐‐   2017‐18             ‐‐‐‐‐             ‐‐‐‐‐      ‐‐‐‐‐‐   2018‐19             ‐‐‐‐‐              ‐‐‐‐‐      ‐‐‐‐‐‐   2019‐20  $   500,000 $   500,000    ‐‐‐‐‐‐   2020‐21  $   300,000 $   300,000    ‐‐‐‐‐‐     $   800,000 $   800,000                      D‐6     Town Council Regular Session Item # 4. Meeting Date:02/15/2017   Requested by: Paul Keesler Submitted By:Mike Standish, Town Clerk's Office Department:Community Development & Public Works Information SUBJECT: DISCUSSION AND POSSIBLE INITIATION OF ZONING CODE AMENDMENTS TO STREAMLINE THE DEVELOPMENT REVIEW PROCESS AND GAIN EFFICIENCIES BY COMBINING THE CONCEPTUAL DESIGN REVIEW BOARD AND THE PLANNING & ZONING COMMISSION RECOMMENDATION: N/A EXECUTIVE SUMMARY: N/A BACKGROUND OR DETAILED INFORMATION: N/A FISCAL IMPACT: N/A SUGGESTED MOTION: N/A Attachments No file(s) attached.