Loading...
HomeMy WebLinkAboutPackets - Council Packets (360)Council Meeting Regular Session June 7, 2017 1 Town Council Meeting Announcements 2 Upcoming Meetings 3 4 5 6 7 8 9 10 11 12 13 Proposed Zoning Code Amendment to Consolidate PZC and CDRB June 7, 2017 Good Evening 14 Purpose Review zoning code amendments that: Transfer CDRB duties to the PZC Stop duplication of site plan reviews Create a Public Art Review Committee 15 Process 16 Key Factors Sustain resident review Increase efficiency for residents Stop duplication of review Match process with experience 17 1. Sustain Resident Review Resident Review Body 18 2. Increase Efficiency for Residents 19 3. Stop Duplication of Plan Reviews Rezoning - Tentative Development Plan Post Rezoning - Conceptual Site Plan 20 4. Match Development Process with Experience Big Picture (PZC) Specific Design (CDRB) All aspects are interrelated! Theory Reality 21 Sustaining Public Art Objectives Review public art applications Monitor maintenance Advocate for art programming Seek grant or alternative funding Process Art Review Committee Other 22 Incentivize use of third party review Alternative Art Process Provide applicants choice of two review paths: Use a local “qualified agent” like SAACA for “call to artist” and art review with final approval by the Planning & Zoning Administrator; or Self-select artist with art review by the Planning & Zoning Commission and approval by Town Council 23 Your Voice, Our Future Increased opportunities for residents to provide meaningful input on Town decisions and planning (Goal H). Provide ongoing and easy access to Town information and resources (Policy CC.19). 24 Summary The proposed Zoning Code amendment: Benefits residents Provides opportunities to gain efficiencies and maintains quality review Conforms with the General Plan Planning and Zoning Commission recommends approval 25 26 Five-Year Forecast General, Highway and Bed Tax Funds June 7, 2017 27 Forecast Overview Required per adopted financial policies Snapshot based upon current known information Serves as foundation for future budgets Sources: University of Arizona, AZ Dept. of Revenue, Joint Legislative Budget Committee, State Finance Advisory Committee and AZ Dept. of Transportation Two forecast scenarios prepared for the General and Highway Funds – with and without County property tax for roads to fund pavement preservation Forecast not prepared for the Community Center Fund due to pending results of feasibility study Pleased to present the 5-year financial forecast this evening – specifically focusing on the General, Highway, Bed Tax and Community Center Funds Our adopted financial policies require the preparation of this forecast, and we typically present this in conjunction with the adoption of the budget so that you can see how budget decisions for next fiscal year impact the future years’ financial picture. Also, since Town does not adopt a multi-year budget, a key benefit of forecast is our ability to use it as a foundation or baseline target for future year budgets. The forecast presented this evening reflects continued economic growth, both locally and statewide, and in the residential and commercial sectors in our community. This growth translates to modest, but steady, increases in our local sales tax categories and in our state shared revenues projected over the next 5 years. It is a snapshot of how the future may look based on the current set of assumptions that I will cover over the next few slides. The forecast assumptions were compiled by referencing several sources of data, including the AZ Dept of Revenue, the Joint Legislative Budget Committee, AZ Dept. of Transportation, as well as Troon mgmt. and Parks & Rec mgmt. for the Community Center Fund forecast. 28 General Fund Revenues 1% – 6% growth per year in local sales taxes Construction sales tax decrease in FY 19/20 due to completion of projects and projected decline in single family residential (SFR) construction 1% – 5% growth per year in state shared revenues 140 – 300 SFR permits per year Commercial permit revenues at $250K - $500K per year 1% – 4% growth per year in charges for services No annexations included Revenues do not include impact of $17M Naranja Park bond proposal Start off with the General Fund - Overall, the General Fund remains stable over the 5-year horizon with modest, steady growth in our local revenue sources and State shared revenue sources. The forecast shows steady 2 – 4% growth in our local sales tax revenues, and based on projections from the State, State shared revenues are expected to increase from 2-4% annually. The forecast assumes steady growth will continue in residential construction activity over the next 5 years, and that single family residential permits peak in FY 18/19 with 275 permits that year and decline to 200 permits in FY 20/21, the final year in the forecast. Commercial construction revenues range from $250K - $500K per year, with several notable projects included over the forecast period to include the Amphi STEM school, the All Seasons facility at the Innovation Corporate Center and the Nakoma Sky independent living and memory care project. 3-5% annual growth in charges for services is assumed based on observed trends in revenues from the Aquatics center and parks & recreation programs and plan review fees. Finally, there is no revenue growth due to the completion of any annexation included in the forecast. 29 General Fund Expenditures Merit increases of 3.5% per year and step increases per year Steady public safety pension rates per year, following considerable increase in FY 17/18 8% health insurance premium increases per year No staffing level increases O&M increases with inflation Begin utilizing vehicle reserve/set-aside balances for replacements in FY 17/18 Transfer of funds to Highway Fund would reach more than $1.6M by FY 21/22 without County property tax for roads Expenditures do not include impact of $17M Naranja Park bond proposal The expenditure projections reflect the continued commitment to providing fair employee compensation with merit increases of 3.5% per year and step increases for sworn police personnel. Also included is 5% annual increase in public safety pension costs each year, as well as 2% health insurance premium increases annually. No capacity has been included to add new staff positions, and operations & maintenance costs are projected to remain flat as much as possible; however, the forecast includes continued funding of our fleet and computer replacement programs. As part of our vehicle replacement program, we’ve been funding the replacement of vehicles that are at the end of their useful lives each year, and at the same time, we’ve been proportionately setting aside funds to replace those vehicles when they reach the end of their useful lives in the future. By FY 19/20, we anticipate being able to utilize those funds in reserve for replacement vehicles for the first time, which lowers our budget burden for vehicle replacement for the years to follow. The transfer of construction sales taxes to the Highway Fund begins in FY 16/17 and continues annual thereafter, ranging from $100,000 up to $1.5 million, as the fund balance in the Highway Fund approaches the $500,000 level. This renewed transfer of funds to the Highway Fund will have an impact on the resources available for CIP funding in the future years. Finally, the fund balance in the General Fund is maintained at healthy levels over the 5-year period above the adopted policy of 25% of adopted expenditures each year. 30 General Fund Forecast – WITHOUT County property tax Here is the chart that depicts the 5-year forecast trends with the blue line representing Revenues ranging from $33M to just over $37M, and the red line representing Expenditures very closely following the revenue trend line. The fund balance remains steady at approximately $10M per year over the 5 years. Again, this chart looks very similar to last year’s forecast and reflects the financial stability of this fund, with revenues very closely matching expenditures, both operating and capital. 31 General Fund Forecast – WITH County property tax The alignment of General Fund revenues and expenditures now is drastically different from where our projections were 5 years ago as we headed into FY 2011/12, as you can see from this chart from 2011. At that time, we were still seeing the impacts from the Great Recession, and you can see the gap between projected revenues and expenditures and the related projected decline in the fund balance. Through a wide variety of budget balancing measures, including right-sizing the organization through attrition, paying off debt, revenue enhancements and engaging in regional partnerships accomplished over the past several years, our budget is now structurally balanced with ongoing revenues dedicated to ongoing expenditures and one-time revenues dedicated to one-time capital expenditures. 32 Highway Fund Revenues 3% - 4% growth per year in HURF gas taxes Reimbursement from Pima Association of Governments and Regional Transportation Authority for contract administration of roadway widening projects Road permits steady at $60K per year Required General Fund subsidy transfer would drop significantly under scenario with Pima County property tax Moving on to the Highway Fund. Highway Fund revenues are primarily comprised of State shared highway gas taxes. The forecast assumes 3.5% growth in HURF gas taxes as projected by the AZ Dept of Transportation. Also included are reimbursements from PAG and the RTA for our staff who perform construction administration and inspection on the major road widening projects that are planned over the next 5 years for Lambert Lane, Tangerine and La Cholla Blvd. This fund also projects continued reimbursement from the Stormwater Utility Fund for storm cleanup of streets provided by our Highway Fund personnel and equipment. As mentioned earlier, FY 16/17 begins the transfer in of construction sales tax revenues from the General Fund at sufficient levels to maintain the ending fund balance at approx. $500,000 per year. 33 Highway Fund Expenditures Personnel budget increases consistent with General Fund O&M increases with inflation Begin utilizing vehicle reserve/set-aside balances for replacements in FY 18/19 Pavement preservation funding of $1.4M - $1.5M per year maintains current overall condition index (OCI) rating In scenario without County property tax, fund balance ranges from $29K - $136K Expenditures in the Hwy Fund reflect similar assumptions as those included in the General Fund relating to personnel and O&M costs. As with GF, we will be able to utilize the vehicle reserves for replacing vehicles starting in FY 19/20. Funds for pavement preservation are included at $1.25M per year to maintain our overall condition index rating. Finally, the fund balance in this fund remains near $500,000 per year. 34 Highway Fund Forecast – WITHOUT County property tax Here is the Hwy Fund chart that shows expenditures with the red line, and revenues shown with the blue line. You can clearly see the impact of the construction sales taxes transferred in beginning in FY 16/17, and the fund balance is stabilized in the outer years at roughly $500,000 per year. 35 Highway Fund Forecast – WITH County property tax Here is the Hwy Fund chart that shows expenditures with the red line, and revenues shown with the blue line. You can clearly see the impact of the construction sales taxes transferred in beginning in FY 16/17, and the fund balance is stabilized in the outer years at roughly $500,000 per year. 36 Bed Tax Fund Revenues & Expenditures Assumes gradual revenue growth each year Personnel budget increases consistent with General Fund Visit Tucson and Greater Oro Valley Chamber of Commerce funding consistent with current contracts Continued funding for arts, culture, special events and SAACA Debt service and repayment to General Fund for Aquatic Center Ending fund balance in FY 21/22 of about $234K The Bed Tax fund captures revenues generated by the Town’s 6% lodging tax on hotel/motels. The majority of these funds are required by law to be allocated to tourism promotion and economic development purposes. This fund remains stable over the forecast period with projected growth due to the Hilton El Conquistador planned room renovations in the earlier years of the forecast and an average 3% growth per year thereafter as the tourism industry continues to recover. Personnel cost increases are consistent with those in the other funds, and funding for Visit Tucson and the Greater Oro Valley Chamber of Commerce are consistent with the current funding agreements for those agencies. Funding is included for special events at about $50,000 per year and for arts/culture and concert series events put on by SAACA ranging from $33,000 - $35,000 per year. Expenditures also include the annual debt service payment on the bonds issued to construct the Aquatic Center and the payback of the General Fund loan used to build the Aquatic Center as well. 37 Bed Tax Fund Forecast This fund is balanced with projected growth in bed tax revenues and fairly flat expenditures. The ending fund balance in this fund ranges from approximately $230,000 to about $420,000 by the 5th year. 38 Questions? 39 40 FY 2017/18 Final Budget Adoption June 7, 2017 41 FY 17/18 Budget Timeline MARCH 1 Department budget requests due to Finance JANUARY One-on-one meetings with Councilmembers to outline budget priorities Timeline First of 2 regular public hearings on the budget. With adoption of the Tentative Budget, Council is setting the maximum cap for FY 2017/18 spending. 42 FY 17/18 Final Budget Tentative Budget adopted May 17, 2017 Maximum spending limit set at $128,567,505 Final budget includes one Council-approved change from May 17th to rename CIP Project titled “Procter Leiber House Rehabilitation” to “Steam Pump Ranch Improvements” with same budget amount of $55,120 in the CIP Fund Future year revisions to the 15-Year CIP: Future construction amounts added for La Cholla roadway widening project Amount for La Cañada and Moore intersection improvement moved from FY 19/20 to FY 18/19 Council has authority to amend budget throughout the fiscal year At the last Council meeting on May 19th, the adoption of the tentative budget set the maximum spending limit for FY 2016/17 at $125.9 million. We have included the changes discussed at the last meeting by Council into the Final Budget to include funding for new swings at Riverfront Park at $21,480 from the General Fund, we added a new fund to account for the energy efficiency project at the Community Center with a budget of $3M, and finally, we added a new fund to account for the possible issuance of bonds to fund additional park infrastructure with a budget of $5M. Tonight is the 2nd public hearing and consideration for adoption of the Final Budget for FY 16/17. Also presented for Council approval tonight is the 15-year Capital Improvement Plan. The Council may propose changes to the budget this evening or you also have the authority to amend the budget throughout the fiscal year. 43 Budget vs. Actual Comparison – All Funds We update this slide each year with the new budget amount for the coming year to show how it compares with prior year budgets over the past 10 years. As you know, our budget amounts (shown in blue) are set based on our estimated revenues plus the amounts that we have in our fund balance reserves. The adopted budget amounts have fluctuated and not only reflect the impact of the Great Recession when we saw budgets dip below the $100M mark from FY 11/12 through 13/14, but also the rebound of the local construction activity in the single-family and multi-family housing markets and the dedication of those one-time revenues to capital infrastructure projects within the budget. You will also notice that actual annual spending (shown in orange) trends far below the adopted budget amounts each year, showing that we don’t spend up to the adopted budget amounts. For FY 16/17, the estimated annual budget for operations and capital is approximately $92M, while fund balance reserves of about $34M make up the balance of the Final Budget total of $125.9M. 44 FY 17/18 CIP Budget = $24,667,694 Capital Improvement Program (CIP) Includes funding for: Streets/Roads $11,295,950 Parks & Rec Facilities $7,359,332 * Water System $2,860,000 Public Safety $2,698,787 Other Public Facilities $200,000 Technology $53,000 Stormwater System $200,625 * Includes $5 million capacity for potential bond-funded projects Also submitted for your approval this evening is the 15-Year Capital Improvement Plan. The 15-Year CIP totals just over $209M, while the FY 2016/17 CIP budget totals $27.7M and includes funding for a wide variety of public facility improvements and infrastructure. 45 Questions? 46 47