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HomeMy WebLinkAboutBudget Records-Town - 6/30/2014Town of Oro Valley ANNUAL BUDGET | FY 2013-14 ORO VALLEY, ANNUAL BUDGET 2013 – 2014 Community Vision Oro Valley is a community defined by the highest standards of environmental integrity, education, infrastructure, services and public safety. It is a community of people working together to create the Town’s future with a government that is responsive to residents and ensures the long-term financial stability of the Town. Mission Govern efficiently, inclusively and responsively to promote community health, safety and a sustainable quality of life for residents, business and visitors. Organizational Values We are strongly committed to:  Honesty, Integrity, Trustworthiness  Openness, Accountability, Transparent Government  Respect for Diversity  Creativity, Teamwork and Continuous Improvement  Excellent Service 2013-2014 Annual Budget Table of Contents Introduction Budget Message ......................................................1 Community Profile ...................................................9 History of Oro Valley ................................................13 Budget Document Guide ..........................................17 Mayor and Council ...................................................21 Organizational Chart ................................................22 Strategic Plan ..........................................................25 General Plan ............................................................33 Fund Structure ........................................................37 Financial and Budgetary Policies ...............................41 Budget Process ........................................................49 Budget Calendar ......................................................51 Financial Overview Budget Overview .....................................................53 Fund Balances .........................................................57 Historical Fund Balances ..........................................59 Budget Summary .....................................................63 Revenue Summary ..................................................65 Revenue Schedule by Fund ......................................67 Revenue Sources .....................................................75 Expenditure Summary ..............................................85 Expenditure Schedule by Fund .................................89 Expenditures by Program .........................................91 Personnel Summary .................................................95 Personnel Summary by Fund ....................................97 Personnel Schedule ..................................................99 Debt Service ............................................................105 Debt Service Schedules ............................................109 Long Term Forecast .................................................117 Program Budgets Clerk .......................................................................123 Council ....................................................................125 Development & Infrastructure Services .....................127 Finance ...................................................................154 General Administration .............................................157 Human Resources ....................................................158 Information Technology ...........................................161 Legal ......................................................................169 Magistrate Court ......................................................176 Town Manager’s Office .............................................179 Bed Tax Fund ..........................................................187 Parks and Recreation ...............................................188 Program Budgets Cont’d Recreation In-Lieu Fee Fund .....................................200 Parks and Recreation Impact Fee Fund .....................201 Aquatic Center Project Fund .....................................202 Police ......................................................................203 Police Impact Fee Fund ............................................224 Water Utility ............................................................225 Alternative Water Resource Development Impact Fee Fund .................................................233 Potable Water Systems Development Impact Fee Fund .................................................234 Municipal Debt Service Fund .....................................235 Oracle Road Improvement District Debt Service Fund ................................................236 General Government Impact Fee Fund ......................237 Benefit Self-Insurance Fund ......................................238 Capital Improvement Program Program Overview ...................................................239 Projects by Fund ......................................................246 Map of Projects ........................................................252 Project Descriptions .................................................253 Appendix Resolution Adoption .................................................265 Auditor General Statements ......................................269 Glossary ..................................................................281 2013 – 2014 Annual Budget This Page Intentionally Left Blank 2013 – 2014 Annual Budget Financial Organizational Chart FY 2014 Budget $93,913,429 Operating Budget $51,202,016 Contingency $33,656,413 Capital Projects $9,055,000 Council $225,853 Clerk $345,118 Town Mgr’s Office $1,202,751 Human Resources $523,821 Court $761,430 Finance $709,242 IT $1,282,173 General Administration $4,196,730 Legal $804,344 Police $14,104,943 Parks & Recreation $2,426,955 Development Services $2,470,454 Facilities $317,532 Streets & Roadways $2,635,981 Transit $1,188,575 Debt Service $1,205,230 Water $14,804,545 Stormwater $774,376 General Fund $9,566,171 Special Revenue Funds $4,198,457 Debt Service Funds $536,926 Capital Project Funds $10,765,331 Enterprise Funds $7,883,698 Street Maintenance $1,085,000 Water Systems $3,265,000 Road Expansions $3,380,000 Stormwater $560,000 Internal Service Funds $705,830 Parks & Recreation $110,000 Fleet $1,221,963 Public Safety $350,000 Information Technology $200,000 General Administration $50,000 Transit $55,000 2013 – 2014 Annual Budget This Page Intentionally Left Blank The Government Finance Officers Association of the United States and Canada (GFOA) presented an award of Distinguished Budget Presentation to the Town of Oro Valley, Arizona for its annual budget for the fiscal year beginning July 1, 2012. In order to receive this award, a governmental unit must publish a budget document that meets program criteria as a policy document, as an operations guide, as a financial plan, and as a communication device. The award is valid for a period of one year only. We believe our current budget continues to conform to program requirements, and we are submitting it to GFOA to determine its eligibility for another award. 2013 – 2014 Annual Budget This Page Intentionally Left Blank IN T R O D U C T I O N Bu d g e t M e s s a g e Co m m u n i t y P r o f i l e Hi s t o r y o f O r o V a l l e y Bu d g e t D o c u m e n t G u i d e Ma y o r a n d C o u n c i l Or g a n i z a t i o n a l C h a r t St r a t e g i c P l a n Ge n e r a l P l a n Fu n d S t r u c t u r e Fi n a n c i a l & B u d g e t a r y P o l i c i e s Bu d g e t P r o c e s s Bu d g e t C a l e n d a r INTRODUCTION 2013 – 2014 Annual Budget Introduction Budget Message Greg Caton, Town Manager To All Oro Valley Residents and the Honorable Mayor and Town Councilmembers: It is my privilege to present the Town of Oro Valley balanced budget for fiscal year 2013/2014. The FY 2013/14 adopted budget totals $93.9 million, which represents a $1.5 million, or 1.6%, decrease from the prior year adopted budget of $95.4 million. This budget is the culmination of a major effort by numerous members of Town staff, Town Council and the citizens of Oro Valley whose input has been used to develop policy and spending priorities. The Town Council has made financial decisions the last three years that have put the Town on a sustainable financial path. These decisions range from increasing revenues and efficiencies to utilizing valuable intergovernmental partnerships to enhance and, in several instances, expand services while decreasing costs to the Town. The organization has reduced staff, and we continue to right-size operations to ensure that expenditures are aligned with revenues. KEY BUDGET DEVELOPMENT FACTORS This budget reflects the continued economic recovery that we are seeing both at the State level and locally through slight increases in State shared revenues and local sales taxes. The Town relies heavily on State shared revenues to fund its operations. Over 1/3 of the Town’s General Fund revenues, or approximately $9.7 million, come from State shared sales, income taxes and vehicle license registration fees. For FY 2013/14, State shared revenues increased by 5%, or nearly $500,000, over last fiscal year indicating signs of a slowly recovering State economy. Additionally, our local sales tax collections are improving over past years as indicated in the graph below: Town of Oro Valley State Shared Revenues and Local Sales Tax Collections $- $2 $4 $6 $8 $10 $12 $14 05/06 06/07 07/08 08/09 09/10 10/11 11/12 12/13 est 13/14 budget Fiscal Year Am o u n t I n M i l l i o n s Local Sales Tax Collections State Shared Revenue Collections 1 2013 – 2014 Annual Budget Introduction Other factors and actions taken over the past several years that influenced the development of this year’s budget are shown below: Revenue Enhancements  Increased annexation efforts in surrounding areas  Increased Parks & Recreation facility usage fees and other fees for service (e.g. liquor license application fee)  Increased utility tax from 2% to 4% effective August, 2011  Partnered with Regional Transportation Authority (RTA) for expanded transit service, resulting in greater reimbursement of RTA funds and reduced Town subsidy of service  Diversified Town investment portfolio to increase interest income  Ensured proper reimbursement of General Fund services provided to utility enterprise funds  Invested in expanded Aquatic Center to attract major special events and enhance tourism to our area  Implemented an Economic Expansion Zone (EEZ) in Innovation Park to streamline development process resulting in businesses opening sooner  Implemented OV Dollars program to encourage shopping locally  Implemented automated meter replacement program in Water Utility to increase accuracy of measuring water usage Expenditure Reductions  Expanded partnership with Pima County Library District in moving to branch status and saving the Town approximately $600,000 annually  Realized approximately $1.8 million in vacancy savings over last two fiscal years  Paid off outstanding bond debt in 2010, resulting in significant debt service savings, approximately $600,000 per year  Refunded Water Utility debt to cut bond interest rates in half, resulting in net present value savings of $3.4 million  Consolidated Development & Infrastructure Services (DIS) Department and reduced staff  Transitioned to self-funded methodology for employee medical insurance coverage, eliminating profit paid to medical provider and implemented enhanced wellness program  Expanded volunteer program throughout Town of Oro Valley  Partnered with Tucson Water for delivery of our CAP water through their system  Implemented energy efficiency and solar power project at Town facilities By achieving significant savings outlined above, along with a more positive revenue picture in FY 2013/14, the Town was able in invest in a number of areas where needs had been deferred for the last four fiscal years during the Great Recession. As a result, the budget focus was developed along the following six core themes: 1. Investment in Town employees 2. Investment in infrastructure and Town assets 3. Investment in technology 4. Economic development as a key strategy to achieve a healthy financial environment 2 2013 – 2014 Annual Budget Introduction 5. Support quality-of-life programs and services for the community 6. Revenue enhancement and expenditure reductions (discussed above) The above themes focus on investing in several areas that will generate returns through economic development and programs that not only benefit our residents, but enhance our ability to attract and retain quality businesses. It is important to note that all of these themes tie directly into the goals and objectives identified in the Town’s 2013 Adopted Strategic Plan, which identifies four (4) main focus areas: Fiscal Responsibility; Communication; Economic Development and Community Services. Investment in Town employees The Town has reduced staff considerably over the past five years. In FY 2008/09, the adopted budget included 389 full-time equivalent (FTE) positions. The adopted FY 2013/14 budget includes a total of 331 authorized FTE positions. The Town has also reduced full-time, benefitted positions from 332 in FY 2008/09 to 288 in the FY 2013/14 adopted budget, an overall reduction of 44 full-time positions over the past five years. Employee Compensation The Town has many dedicated and competent employees who have taken on additional responsibilities. In an effort to recognize the efforts of our employees, last year we introduced a modest 2.5% cost-of-living adjustment (COLA) for all employees effective July 1, 2012 - the first COLA since FY 2008/09. This year we are fulfilling the commitment to step and merit pay increases for employees. The adopted budget includes $567,000 to implement these increases for all eligible employees in FY 2013/14. Employee compensation is a critical component of the Town’s budget. Two items are included in the adopted budget to ensure appropriate allocation of resources in this area. The first is a small amount of funding (approximately $50,000) to compensate employees who have been working beyond their job description. Because of the significant reduction in staff, many have taken on responsibilities above and beyond their pay classification. We completed a comprehensive reclassification process starting in late fall of 2012 and are recommending minor adjustments to some positions. The second addition to the adopted budget is funding to conduct a salary market survey. As the economy slowly recovers, the job market will continue to improve, and Town employees will be presented with opportunities. In order to stay current with the recovering job market, we are budgeting a $30,000 salary market survey for the coming year. This will ensure that our positions are properly placed in the market. The last time a comprehensive salary study was conducted by the Town was FY 2005/06. Self-Funded Medical Insurance Employee medical insurance is another critical component of the Town’s budget. Last year, in cooperation with the Town’s insurance broker, staff reviewed the Town’s medical claim history. Based on our exceptionally low claims history, we switched to self-funded insurance. The Town 3 2013 – 2014 Annual Budget Introduction has accepted additional risk in this new funding methodology; however, given the Town’s excellent claim history, we believe there are considerable financial benefits to be gained in future years. The Town’s annual expenditure for medical insurance is approximately $2.2 million, and although it is too early to determine recognized savings, we believe the medical benefit can be maintained with less likelihood of potential increases and no further reduction to the quality of the plan. Since the Town has more to benefit from a culture supportive of health and wellness, we have also added funding ($20,000) to the health and wellness program. We feel that investing in Town employees is of the highest priority in fulfilling the Community Services element of our Strategic Plan with the goal of attracting, engaging and retaining highly qualified employees. Investment in infrastructure and Town assets The Town is well known for having quality infrastructure. The adopted budget includes $1 million for the pavement preservation program in the Highway Fund, which maintains the current condition of our streets and roads and prevents deterioration of roadway infrastructure. Fleet Replacement Program During the economic downturn, the Town went without a regular fleet replacement program. As a result, it will take years to fully return to a sustainable fleet replacement program. This is the second year of our effort to return to a regular replacement schedule. The adopted budget includes the replacement of eight (8) police vehicles, one (1) general administration vehicle, one (1) truck for Development and Infrastructure Services (DIS) operations, one (1) utility vehicle for Parks and Recreation, and matching funds for one (1) grant-funded Transit vehicle for a total budgeted cost $483,000. The Water Utility will replace two (2) vehicles totaling $44,000. In addition, the adopted budget includes $108,000 set aside as a reserve for future replacement of the new vehicles purchased during FY 2012/13. As the Town continues to replace its fleet, funds for the future replacement of those vehicles will continue to be added to this reserve, ensuring that funding will be available at the end of their useful lives. The emphasis on fleet management and pavement preservation falls under the Fiscal Responsibility element of the Strategic Plan with the goal of ensuring that funding is available to maintain and replace key assets and avoid infrastructure deterioration. Water Meter Replacement Program The Water Utility plans to continue progress on the installation of Automated Metering Infrastructure (AMI) communications equipment and the replacement of approximately 3,700 aging meters with new electronic meters. This project is budgeted in the Water Utility Fund for $1.3 million and is proposed to be financed with a loan from the Water Infrastructure Finance Authority (WIFA). 4 2013 – 2014 Annual Budget Introduction Naranja Park Improvements Naranja Park saw considerable improvements during FY 2012/13. With the help of a grant, community support and in-kind assistance by Town resources, more than $100,000 was invested in the development of the Naranja Park archery range. To maintain this momentum, two projects are planned for FY 2013/14. First, grants will be pursued for further improvements to the archery range, and the adopted budget includes $20,000 to assist with matching funds. Second, $40,000 has been allocated to update the Naranja Park Master Plan. It is anticipated that the update will span two fiscal years, with the total project cost estimated at $80,000. Police Evidence Facility The Police Department has identified a growing need for an expanded property and evidence storage facility to remediate a lack of proper storage space and to provide a safer working environment for staff assigned to this area. An amount of $350,000 has been allocated in the adopted budget to construct such a facility during FY 2013/14. Investment in technology Technology needs have been a focus over the last year, and this budget includes additional resources to meet the growing demand. The following items are included in the adopted budget:  Permitting system replacement - $200,000 (first of two years)  Phone system replacement - $150,000 (first of two years)  Online module for business license applications and renewals - $11,000  Microsoft Office update – Ongoing operational expense of $45,000/yr. for 3 years  Mobile application implementation - $10,000 Additional staff resources in the Town Manager’s Office have allowed us to refocus and strengthen our communications strategy via the website. The website continues to be the first stop for information for residents, businesses, and guests to the community. As such, the website needs to represent the Town in the most professional manner possible. Regular replacement of computers and other technology is critical to maintaining operational efficiency. The adopted budget includes computer replacement for aging equipment at a budgeted cost of $186,000. This includes several servers, desktop computers and mobile data terminals (MDTs) for the Police Department and building inspectors. Economic development as a key strategy to achieve a healthy financial environment Even with minimal resources dedicated to economic development, a key element in the Strategic Plan, the Town has been very successful in primary job development. Given the increasingly competitive nature of business attraction, additional focus has been added to this area. Resource allocation to the Economic Development division was enhanced during the last budget process to ensure the fiscal stability of the Town. This type of allocation will have a significant return on investment that contributes to effective service delivery throughout the organization. 5 2013 – 2014 Annual Budget Introduction Prior to the economic downturn, the Town was directly involved in business recruitment through staff attendance at targeted recruiting events; however, this involvement was reduced when staff vacancies occurred during the recession. Through the additional resources added to the Economic Development division last fiscal year, these recruiting efforts will be restored in FY 2013/14. Revenues generated from business activity continue to be the major driver of Town funding; therefore, continued efforts toward business retention and recruitment will remain a high priority. The Town is considering the development of a business incubator/bioscience accelerator in order to further promote Innovation Park and strengthen the Town’s foothold in the bioscience and high-tech industry. An amount of $30,000 has been budgeted for an Economic Feasibility Study of this concept. This study would build on the strategy recently developed in partnership with Tucson Regional Economic Opportunities (TREO). Special events continue to be an important element of our economic recovery. Next year, the Town will celebrate its 40th anniversary, so a small amount of funding ($10,000) has been allocated to recognize this important milestone. Additionally, to extend the Town’s rebranding effort, $10,000 has been allocated for banners to hang from light poles along the town’s main corridors. To further promote arts and culture in Oro Valley, the Town will continue its partnership with the Southern Arizona Arts & Cultural Alliance (SAACA) to provide programs such as the concert series and other related events. Support quality-of-life programs and services for community members All Town functions contribute to the overall quality of life for residents. From our recognized public safety services to our first-class Water Utility and everything in between, these services contribute to what makes Oro Valley a special place for residents to call home. Enhanced Aquatic Center This will be the first full year of operations at the expanded Oro Valley Aquatic Center. The Town will continue to aggressively recruit large-scale events, which will generate increased tourism and economic activity. Additionally, the new Aquatic Center will appeal to a broader audience of potential local users. This recreational gem will be a highly-utilized facility and will become a regional attraction. Indirect revenues from events at the Aquatic Center are not included in this budget. We will closely monitor revenues generated from upcoming events and make future adjustments as appropriate. Steam Pump Ranch Last year, the historic Steam Pump Ranch property saw improvements needed to open the facility to the public. The restroom facility and enlarged parking area now allow the hosting of events. There have been discussions with the operators of the Heirloom Farmer’s Market about moving to Steam Pump Ranch in the fall of 2013. In order to accommodate this move, an amount of $70,000 has been included in the adopted budget to build a ramada structure on this property that will be equipped with electricity and provide shade for a broad range of functions. This investment will also serve well for hosting a variety of other events. 6 2013 – 2014 Annual Budget Introduction Community Survey One of the goals in the newly-adopted Strategic Plan is to conduct print and/or electronic surveys to solicit community feedback. An amount of $30,000 has been included in the adopted budget to conduct a formal community survey. The last time the Town conducted a community survey was in 2008. General Plan Update As the Town prepares to update its General Plan for approval by voters in 2016, the adopted budget includes $206,500 to be allocated primarily for outside consultant assistance and public outreach efforts in this area. FUTURE SUSTAINABILITY As we balance the adopted budget for FY 2013/14, we view the economic future with a cautious optimism as we recover from the Great Recession. While this budget follows through with delivering outcomes discussed in last year’s budget message, we still find ourselves with unfunded needs in some areas. One of the main areas where needs outpace available resources is in our pavement preservation program funded from the Highway Fund. The Highway Fund’s two main sources of revenue, local construction sales taxes and State shared highway user revenue funds (HURF), are inadequate to fund the ongoing needs for town-wide roadway maintenance. These revenue sources are impacted by shifts in the economy, as well as actions by the State legislature to sweep the HURF funds for other purposes in the State budget. The short-term solution has been to draw down on the fund balance reserves in the Highway Fund that were built up when the Town saw a spike in construction activity approximately seven years ago. The longer term solution is to continue to right-size the operations in the Highway Fund, as has been done in the General Fund, and seek to diversify the sources of revenue in this fund. In the meantime, we continue to seek opportunities to reduce our long term costs, including the reduction of our outstanding debt. For example, the Town recently completed a refinancing of outstanding water refunding bonds paying an average interest rate of 4.1% with new bonds that were issued at an average interest rate of 1.45%. We also continue to maintain strong investment-grade ratings on our outstanding excise tax revenue bonds, rated “AA-“ by both Standard and Poor’s and Fitch Ratings. This is largely achieved by the Council’s goal of continuing to diversify the Town’s revenue base and maintaining strong fund balance reserves in the General Fund, currently at $9.6 million, or 33% of FY 2013/14 adopted expenditures. This well exceeds the Council-adopted policy threshold of 25% of adopted expenditures. CONCLUSION The FY 2013/14 budget continues to provide a high level of service to the citizens of Oro Valley as exemplified by maintaining public safety services, improving parks and aquatics facilities, delivering quality water service and maintaining our streets and roadways to the highest standards in the region. The Town adopted its 2013 Strategic Plan, outlining further ways of improving the quality of life for all residents of Oro Valley. Further, the Town will continue to maintain best practices in the management of its finances and include long-term planning tools 7 2013 – 2014 Annual Budget Introduction in its forecasting to ensure that decisions made today will also provide positive impact to the Town in the future. I appreciate the Town Council for providing the long-term vision and support that are crucial for the Town to achieve its goals. I would also like to recognize the contributions of the Town staff for not only reducing their operations spending, but for doing it in such a way as to minimize the impact to our community. The Town of Oro Valley is well-positioned to maintain an excellent quality of life for our residents and a strong economic base for local businesses. Sincerely, Greg Caton, ICMA-CM Town Manager 8 2013-2014 Annual Budget Bachelor's Degree or Higher Oro Valley 48.0% Arizona 26.4% Community Profile Oro Valley, Arizona Oro Valley is located in northern Pima County approximately three miles north of the Tucson city limits. Nestled between the Catalina and Tortolita mountain ranges, the town sits at an elevation of 2,620 feet and covers more than 34.75 miles. ACCOLADES  Best Place in Arizona to Raise Kids – Bloomberg Businessweek, 2013  Among the Best Places to live in Arizona – Yahoo, January 2011  Playful City Community USA, 2011, 2012 and 2013  10 Best Towns for Families – Family Circle Magazine, August 2008  100 Best Places in America to Live and Launch a Small Business – Fortune Small Business Magazine, April 2008 CLIMATE When it comes to climate, Oro Valley is one of the sunniest, most comfortable places in the country. High temperatures average 83.4 degrees while lows average 53.8 degrees. PRINCIPAL ECONOMIC ACTIVITIES  Biotechnology/medical  Recreation/resort/leisure  Arts and culture Basic Information Founded: 1881 Distance to Major Cities: Incorporated: 1974 Phoenix: 109 miles County: Pima Tucson: 3 miles Legislative District: 26 Congressional District: 8 Form of Government: Council – Manager Oro Valley Phoenix Population 1990 2000 2010 Oro Valley 6,670 29,700 41,011 Pima County 666,880 843,746 980,263 Arizona 3,665,228 5,130,632 6,392,017 Source: Arizona Department of Commerce and US Census Bureau Age & Gender Composition Male 47.6% Female 52.4% Median Age 49.8 Under 5 years 3.9% 5 to 9 years 5.0% 10 to 14 years 6.2% 15 to 19 years 6.4% 20 to 34 years 10.7% 35 to 44 years 10.6% 45 to 54 years 15.3% 55 to 64 years 15.7% 65 + years 26.1% Source: US Census Bureau, 2010 Census Labor Force 1990 2000 2010 Civilian Labor Force 3,201 13,741 17,546 Unemployed 102 353 1,331 Unemployment Rate 3.2% 2.6% 7.6% Source: Arizona Department of Commerce and US Census Bureau, 2007-2011 American Community Survey Marital Status Single 19.0% Married 63.2% Separated 1.4% Widowed 7.5% Divorced 9.1% Source: US Census Bureau, 2007-2011 American Community Survey Education Attainment Source: US Census Bureau, 2007-2011 American Community Survey Tucson 9 2013-2014 Annual Budget Community Profile Household Income 6.1%6.7%7.9% 17.2%16.1% 13.6% 18.4% 14.2% Less than $15k $15k to $25k $25k to $35k $35k to $50k $50k to $75k $75k to $100k $100k to $150k $150k or more Source: US Census Bureau, 2007-2011 American Community Survey Principal Employers Ventana Medical Systems, a member of the Roche Group Amphitheater School District Oro Valley Hospital Hilton El Conquistador Golf & Tennis Resort Town of Oro Valley Walmart Fry’s Food & Drug Store Splendido at Rancho Vistoso Target Kohls Community Facilities Oro Valley offers a broad range of community and cultural facilities including a park with a recently expanded aquatic facility, as well as racquetball courts and Little League fields. Oro Valley has two country clubs, four 18-hole golf courses and one 9-hole course. Tennis and swimming as well as other recreation activities are available at the country clubs. Educational Institutions Public Private Elementary Y Y High School Y Y Financial Number of banks: 9 Government Fire Departments: Golder Ranch Fire District, Mountain Vista Fire District Law Enforcement: Oro Valley Police Department Medical Oro Valley Hospital, Northwest Urgent Care Hotel & Lodging Number of Rooms: 585 Source: AZ Dept of Commerce and Oro Valley Business Navigator Home Values Less than $50k 1.0% $50k to $99k 0.9% $100k to $199k 15.0% $200k to $299k 30.8% $300k to $499k 37.2% $500k to $999k 14.1% $1M or more 1.0% Source: US Census Bureau, 2007-2011 American Community Survey Taxes Property Tax Rate (per $100 assessed valuation) Elementary/High Schools $5.55 Countywide $6.45 Fire District $1.76 Town of Oro Valley $0.00 Total $13.76 Source: Pima County Treasurer’s Office, 2012 Sales Tax City/Town 2.0% County 0.5% State 5.6% Source: League of Arizona Cities and Towns, Arizona Dept of Revenue 10 2013-2014 Annual Budget Community Profile Land Use (Does not include roads or rights of way) Commercial/Office 8%Resort/Golf Course 7% Public Open Space 17% Park 2% School 2% Residential 64% Service Statistics Police: Sworn Personnel: 101.00 Non-Sworn Personnel: 33.13 Total Police Personnel 134.13 Avg. Emergency Response Time: Priority 1 calls 3.39 minutes Priority 2 calls 4.43 minutes Parks and Recreation: Number of Parks: 6 Park Acres Maintained: 440 Miles of Trails & Paths: 78 Recreation Programs Offered: 21 Transit: Registered riders: 1,755 Average Daily Ridership: 125 Street Maintenance: Total Town Lane Miles: 683.8 FY 2012/13 Lane Miles Resurfaced: 35.69 Water: Customer Base: 18,716 Conservation Audits: 144 Meter Reads: 222,304 Billing Collection Rate: 99.99% Disclaimer: Non-surveyed data – for planning purposes only 11 2013 – 2014 Annual Budget This Page Intentionally Left Blank 12 2013 – 2014 Annual Budget Introduction History of Oro Valley The area of Oro Valley has been inhabited intermittently for nearly two thousand years by various groups of people. The Native American Hohokam tribe lived in the Honeybee Village located in the foothills of the Tortolita Mountains on Oro Valley's far north side around 500 AD. Hohokam artifacts are still being discovered in the Honeybee Village site that the Hohokam inhabited continuously for nearly 700 years. Early in the 16th century, Native American tribes known as the Apache arrived in the southern Arizona area, including Oro Valley. These tribes inhabited the region only a few decades prior to the arrival of the Spanish Conquistadors, including Francisco Coronado. The Spanish established forts in the area, including the Presidio at Tucson (1775) beginning in the late 16th century. Arizona Territorial Period Beginning in the 19th century, Americans increasingly settled in the Arizona Territory, following the Mexican-American War and the subsequent Gadsden Purchase that included the area of southern Arizona. George Pusch, a German immigrant, settled in the area of Oro Valley in 1874 and established a cattle ranch. This ranch was unique because it utilized a steam pump to provide water, eventually popularizing Pusch's property as the Steam Pump Ranch on the Cañada del Oro. The steam pump was one of only two in the Arizona Territory. Pusch's ranch provided respite for settlers and travelers entering and leaving the Tucson area. Pusch Ridge is named in honor of George Pusch. Ranching in the area continued to flourish as greater numbers of Americans settled in the Arizona Territory. Large ranching families in the Oro Valley area included the Romeros and the Rooneys. Gold rushers into the American West also were attracted to southern Arizona, where gold was said to be in abundance in and around the Santa Catalina mountains north of Tucson. Fueled by the legend of the lost Iron Door Gold Mine in the mountains, those in search of gold trekked through the Oro Valley area focusing their attention along the Cañada del Oro washbed. Post-World War II Period After World War II, the Tucson area experienced dramatic population growth, impacting Oro Valley as well. In the early 1950s, the Oro Valley Country Club opened at the base of Pusch Ridge, affirming the area's future as an affluent community. Although one tract housing development was built in the area in the early 1950s, the majority of the original homes in the Oro Valley area were built by individual land owners in a large ranch residential style. Founding of the Town The community continued to grow gradually, and area residents increasingly desired local control of the land in the area. In the late 1960s, incorporation became a greater focus in Oro Valley. Tucson Mayor James M. Corbett, Jr. expressed great interest in expanding the Tucson city limits to the far north side of Pima County. Corbett vowed to bring the Oro Valley area into Tucson "kicking and screaming," alluding to the reservations Oro Valley residents expressed about joining Tucson. 13 2013 – 2014 Annual Budget Introduction History of Oro Valley A petition to incorporate began to circulate in Oro Valley. The Pima County Board of Supervisors officially refused to allow Oro Valley to incorporate, and litigation followed. Ultimately, in 1974 a group of area residents successfully incorporated the Town of Oro Valley, then only 2.4 square miles in size. Oro Valley was centered primarily around the Oro Valley Country Club and Canyon del Oro High School. The Town began with a population of nearly 1,200. The map below depicts Oro Valley’s growth since its inception. 14 2013 – 2014 Annual Budget Town of Oro Valley 15 2013 – 2014 Annual Budget This Page Intentionally Left Blank 16 2013 – 2014 Annual Budget Introduction Budget Document Guide The budget document seeks to implement the Town of Oro Valley’s adopted General Plan and Strategic Plan within the boundaries of its available financial resources. The budget is a policy document, financial plan, operations guide and communication device. The purpose of this guide is to provide the reader with some basic understanding on the organization of the budget document and what is included in each of the sections. The budget document is comprised of the following five major areas: Introduction The introduction section includes the Manager’s budget message along with information on the town, the Town’s Strategic Plan, General Plan, financial policies, fund structure and the budget process. Financial Overview The financial overview section illustrates the total financial picture of the Town, sources and uses of funds, as well as types of debt issued and their uses. The Manager’s budget message provides an introduction to the budget. The message outlines the assumptions used in the development of the budget, goals for the upcoming fiscal year, any new program enhancements or changes in service levels, and any challenges for the upcoming year. Also included are interesting facts about the town and its history, as well as information on the Town’s elected officials, an organization chart, elements of the Town’s Strategic Plan and General Plan, and financial policies of the Town and the budget development process. The financial overview begins with the total sources and uses of funds. Summary tables and graphs depict revenue sources and expenditure categories. Consolidated financial summaries and schedules provide a look, by major fund levels, at the sources and uses of funds, starting and ending fund balances, and explanations of any major variance in these balances. The revenue and expenditure section provides a detailed history of sources and uses both at the fund level and the program level. It also contains a section on revenue sources which discusses their use, assumptions used in forecasting, and anticipated growth. The expenditure section includes an explanation of year-over-year changes in expenditure categories. The personnel summary provides an overview of personnel and employee compensation, staffing levels by function, employee benefit matching rates, FTEs per capita and consolidated personnel schedules. The debt section provides an overview on the types of debt used by the Town, their uses, and future debt requirements. The long term forecast discusses the broader economic outlook for the Town and includes five-year forecasts of the Town’s three main tax-based funds, which are the General Fund, the Highway Fund and the Bed Tax Fund. 17 2013 – 2014 Annual Budget Introduction Budget Document Guide Program Budgets The program budget section contains the operating piece of the budget document. Specifics on types of services offered and associated costs are found in this section. Capital Improvement Program (CIP) The capital improvement section contains information on the projects budgeted in this fiscal year and their operating impacts on the budget. Appendix The appendix section contains several additional documents pertaining to the budget and a glossary of terms. Each program budget begins with a department overview and a summary of expenditures. It also contains the following information - Highlights: Lists accomplishments achieved by the departments in the previous fiscal year. Goals & Objectives: Tie to the Town’s Strategic Plan and lists what the departments plan to accomplish this budget year. Measures and Indicators: Performance measures and workload indicators provide an assessment of department outcomes and outputs. Organizational Chart: Outlines the separate programs within the department. Organizational charts are provided for departments that have more than one program area. Departmental Budgets: Each departmental budget is divided into program areas. The program areas give a brief description of each program and the service provided. It includes data on personnel, expenditures by category, and explanations on variances between budget years. The capital improvement section describes the process and timeline for compiling the CIP budget, a summary of revenue sources to support the program, and a fifteen-year CIP plan. It also includes a description and justification for each of the projects budgeted and their future operating impact. The appendix section contains the resolution adopting the budget, Auditor General Statements and a glossary of frequently used terms. 18 2013 – 2014 Annual Budget Town of Oro Valley 19 2013 – 2014 Annual Budget This Page Intentionally Left Blank 20 2013 – 2014 Annual Budget Introduction Mayor and Council Oro Valley’s Mayor and Council are committed to providing high- quality municipal services and responsible development. Through the Town Manager, the Mayor and Council provide policy direction by adopting rules, regulations, and procedures to meet community needs. The Mayor and Council remain accountable and accessible to the residents through their commitment to full, honest, and timely communication. Dr. Satish I. Hiremath, DDS Mayor Term Expires: November 2014 Lou Waters Vice-Mayor Term Expires: November 2014 William Garner Councilmember Term Expires: November 2016 Joe Hornat Councilmember Term Expires: November 2014 Mike Zinkin Councilmember Term Expires: November 2016 Mary Snider Councilmember Term Expires: November 2014 Brendan Burns Councilmember Term Expires: November 2016 21 2013 – 2014 Annual Budget Introduction Organizational Chart Oro Valley Residents Town MagistrateTown Manager’s Office Town Council Finance Human Resources DISParks & RecreationITWater Utility Communications Economic Development Operations Planning & Engineering Development Services Infrastructure Services Recreation Parks Business Application & Development Technical Services GIS Services Utility Administration Appointed Boards & Commissions Contract Town Attorney Chief of Police Field Services Support Services Legal Services Prosecution Civil Aquatics Town Clerk Trails Cultural Resources 22 2013 – 2014 Annual Budget Town of Oro Valley 23 2013 – 2014 Annual Budget This Page Intentionally Left Blank 24 2013 – 2014 Annual Budget Introduction Strategic Plan Introduction The Town of Oro Valley’s Strategic Plan guides Town decision-making and resource management in pursuit of organizational goals. It is “strategic” in the sense that it provides guidance over a 2 to 5 year timeframe. The Strategic Plan will be reviewed and updated periodically by the Town Council and management to ensure that the goals, strategies and actions outlined herein remain relevant. Oro Valley will continue to have success because the organization is flexible enough to respond to local, national and global change. The Strategic Plan is grounded in the “vision” expressed in the Council-adopted and voter-ratified Oro Valley General Plan. While the Strategic Plan guides short-term decision-making, the General Plan provides a long-term (up to 20 years) direction regarding the growth, development and redevelopment of the community. Vision for the Future Oro Valley is a community defined by the highest standard of environmental integrity, education, infrastructure, services and public safety. It is a community of people working together to create the Town's future with a government that is responsive to residents and ensures the long-term financial stability of the Town. The following diagram presents the relationship between the Oro Valley Strategic Plan, the General Plan, and other Town documents. Oro Valley Strategic Plan Oro Valley General Plan Financial Sustainability Plan Capital Improvements Plan Annual Town Budget Departmental Strategic Plans Including Capital and Personnel Requirements Specific Master Plans and Studies Specific Topic Plans • Zoning Ordinances • Specific Area Plans • Design Guidelines • Impact Fees and Other Ordinances 25 2013 – 2014 Annual Budget Introduction Strategic Plan Focus Areas Four focus areas provide the framework for the Strategic Plan and indicate where the organization must direct resources in order to address the needs and desires of the community. The four focus areas are: • Fiscal Responsibility  Communication • Economic Development • Community Services There are one or more Goals under each Focus Area, along with specific Strategies and Actions to be taken by the organization in order to achieve these goals. FISCAL RESPONSIBILITY GOAL Maintain long-term financial health through diversified revenue sources while investing in community initiatives STRATEGY Ensure funding is available to maintain and replace key assets and avoid infrastructure deterioration ACTIONS  Evaluate opportunities to diversify the Town’s revenue sources  Enhance revenue by taking steps to ensure collection of established taxes, fees, rates and fines  Expand capital improvement plan (CIP) to a 15-year program, identifying potential funding sources, operating cost impacts and cash flow requirements  Consider voter approval of franchise agreements with utility providers  Conduct a cost of service study for the Water Utility  Establish a fleet management task force to develop alternatives for long-term fleet maintenance and repair  Develop an Infrastructure Improvement Plan; evaluate the use of impact fees in accordance with state statute  Expand and develop initiatives to support public safety services that enhance community safety STRATEGY Pursue annexation and acquisition opportunities that will deliver long-term benefits to the Town ACTIONS  Initiate annexations that establish a southern corporate boundary along Ina Road  Partner with the Arizona State Land Department regarding annexation of the Arroyo Grande area and state trust land between Oro Valley and Marana  Consider acquisition of properties within annexation areas or adjacent to significant roadway improvement projects that are candidates for redevelopment or other beneficial use 26 2013 – 2014 Annual Budget Introduction Strategic Plan COMMUNICATION GOAL Ensure residents are educated about and engaged in moving community initiatives forward STRATEGY Improve access to accurate, timely and relevant Town information ACTIONS  Launch a new Town website with a focus on information design, making it easier for the end-user to find the information they need, and directing web traffic to important events and initiatives  Use the email notification system to expand our reach into the community and improve the quality of those communiqués  Use emerging media technologies such as mobile computing and social media to expand the ways in which information can be accessed  Expand public access to Geographic Information Systems (GIS) mapping tools  Enhance the Oro Valley VISTA, the quarterly community e-newsletter and, as the budget allows, increase printed quantities  Use the internal Communications Roundtable to engage representatives from each department in communications planning for internal news and community- wide events STRATEGY Increase internal and external awareness of the Town’s successes, assets, values and initiatives ACTIONS  Launch new marketing and branding efforts to better define the Town’s identity and promote our successes, assets, values and initiatives  Promote consistency in messaging across multiple platforms, including website, intranet, Council talking points, press releases, VISTA newsletter and other internal and external publications  Enhance presence of Parks & Recreation programs, amenities and event information in Town publications and electronic media  Enhance presence of Police Department crime prevention programs and event information in Town publications and electronic media STRATEGY Provide opportunities for residents to become engaged in and knowledgeable about the role of local government ACTIONS  Conduct Council on Your Corner events, where elected officials speak at community gatherings throughout the year  Support relationships with volunteers and members of boards and commissions through the annual Volunteer of the Year Awards program and reception  Expand the Citizens’ Police Academy to include an Alumni Association  Enhance the Community Academy program based on participant feedback 27 2013 – 2014 Annual Budget Introduction Strategic Plan STRATEGY Improve the customer service experience for residents who contact the Town for information or assistance ACTIONS  Initiate a Town-wide customer service training module for all employees  Explore opportunities for expanded service hours to enable customers to conduct business with the Town outside of traditional business hours  Use the Constituent Service Coordinator, and department-level representatives as necessary, to respond to community questions, concerns or ideas  Develop information resources to help employees more efficiently identify solutions to residents’ questions  Conduct print and/or electronic surveys to solicit community feedback and suggestions  Expand the online payment system to include Business Licenses and Building Permits ECONOMIC DEVELOPMENT GOAL Attract and retain globally-competitive high technology and bioscience employers STRATEGY Support the creation of primary jobs ACTIONS  Hold regular meetings with existing companies at Innovation Park and Foothills Business Park, including the University of Arizona Bio5 Institute  Explore the possibility of a public-private partnership to build speculative space to attract high technology and bioscience employers  Evaluate technology and communication infrastructure  Promote the Economic Expansion Zone (EEZ) overlay district as a business attraction tool  Support regional efforts to attract and retain major employers  Develop a strategic partnership with the Arizona Commerce Authority  Establish a Central Business District (CBD) along Oracle Road STRATEGY Promote partnerships to enhance public safety, education and workforce development ACTIONS  Promote public safety, educational opportunities and state and national school rankings in Town marketing materials and online  Hold regular meetings with University of Arizona and Pima Community College to support educational needs  Hold regular meetings with public and private K-12 educational organizations and provide support through the School Resource Officer program 28 2013 – 2014 Annual Budget Introduction Strategic Plan GOAL Develop recreation and cultural opportunities to promote tourism and support employee attraction and retention STRATEGY Support cultural events and opportunities ACTIONS  Partner with the Southern Arizona Arts and Cultural Alliance (SAACA) and the Hilton El Conquistador Golf & Tennis Resort on the 4th of July Celebration  Partner with Tohono Chul Park, SAACA and other organizations on marketing efforts and arts & cultural events  Promote the Public Art collection throughout Oro Valley  Develop plans for the Town's 40th Anniversary Celebration in 2014 STRATEGY Support local, national and international sporting events ACTIONS  Enhance the reputation of Oro Valley as a destination for winter training activities, specifically swimming, running and cycling  Partner with the Metropolitan Tucson Convention and Visitors Bureau (MTCVB) to attract local, national and international sporting events  Promote Naranja Park as a venue for local archers and regional competitions STRATEGY Promote Oro Valley as a bicycle-friendly community ACTIONS  Complete construction of the Cañada del Oro Linear Park from First Avenue to Oracle Road, including access to the Steam Pump Ranch trailhead and restroom facilities  Seek funding to complete the shared use path between Steam Pump Ranch and Catalina State Park, and between Magee Road and La Cañada Drive  Establish a Complete Streets policy stating our intent to plan, design, and maintain streets so they are safe for all users of all ages and abilities  Explore public private partnership to reinstate bicycle safety classes  Support regional funding for completion of The Loop shared use facility  Support regional efforts to develop a velodrome and cyclist training facility  Consider stand-alone application for Bicycle Friendly Community certification by the League of American Bicyclists COMMUNITY SERVICES GOAL Provide services to enhance residents' quality of life STRATEGY Enhance community policing through support of programs, activities and personnel assignments that prevent crime and promote safety 29 2013 – 2014 Annual Budget Introduction Strategic Plan ACTIONS  Use the current Police Department strategic planning program and related documents to assist in acquisition and deployment of resources  Evaluate expansion of the reserve police officer program to support, supplement and expand public safety services in the Town  Evaluate expansion of the Citizen Volunteer Assistants Program (CVAP) and recruit additional volunteers  Conduct internal and regional training in contemporary traffic incident management protocols for first responder and support service providers to maximize community safety (police, fire, EMS, transportation, towing etc.)  Ensure resources are available to evaluate and respond to legislative, judicial and technological mandates STRATEGY Reinforce the Oro Valley brand through excellence in infrastructure design and maintenance ACTIONS  Consider the replacement of conventional signalized intersections with roundabouts  Expand the pavement management program to plan for needed improvements within the proposed annexation areas  Consider adjusting the Stormwater Utility fee to provide a funding mechanism for drainage infrastructure projects  Complete the sign inventory and develop a plan for sign replacement and removal of unnecessary signage STRATEGY Deliver a safe and reliable water supply to all Water Utility customers ACTIONS  Renew the Town's Assured Water Supply (AWS) designation  Initiate the Advanced Metering Infrastructure Project for the Oro Valley Water Service Area to accurately measure water usage and increase customer service efficiency  Partner with Tucson Water to amend the Reclaimed Water Intergovernmental Agreement  Develop a plan for acquisition and delivery of Central Arizona Project water  Promote water conservation through customer education and the provision of water audits  Conduct an Energy Efficiency Study to determine improvements needed to increase efficiency of wells and booster pumps, reduce electric power consumption and enhance the reliability of the water system 30 2013 – 2014 Annual Budget Introduction Strategic Plan STRATEGY Continue restoration, preservation and rehabilitation of facilities at Steam Pump Ranch ACTIONS  Explore options for use of the Proctor/Lieber House as outlined in the Master Plan  Explore hosting a Farmer's Market on the property  Establish an agreement with the State Historic Preservation Office regarding treatment of original Pump House  Establish funding for implementation of the Steam Pump Ranch Master Plan STRATEGY Seek to make continuous improvements to Town parks and other facilities ACTIONS  Initiate an update of the Naranja Park Master Plan and Programming & Concept Design documents  Establish a funding and phased development plan for implementation of the Naranja Park Master Plan  Initiate development of a comprehensive Parks and Recreation Master Plan  Initiate application to the Commission for Accreditation of Park and Recreation Agencies  Complete a renovation of the Town Hall stage area, adjacent landscape areas, and directional signage  Evaluate organizational space needs and develop a plan for implementation STRATEGY Update the General Plan to reflect community values and future needs. ACTIONS  Develop a Public Participation Plan to guide resident involvement in decision- making  Promote broad community participation in the development of the General Plan  Develop and implement a marketing plan to ensure voter ratification of the General Plan in 2015 STRATEGY Provide Town staff with the best possible collaboration tools to increase efficiency of information delivery ACTIONS  Evaluate replacement of the phone system  Evaluate replacement of the Permits Plus software system  Evaluate operational areas that will realize the greatest value from mobile applications  Evaluate methods of converting paper forms to electronic forms  Conduct a feasibility assessment of an organization-wide document management system 31 2013 – 2014 Annual Budget Introduction Strategic Plan  Develop IT policies and security measures regarding the use of personal mobile devices for business functions  Enhance the Information Technology architecture to facilitate mobile access to Town information and enterprise applications STRATEGY Attract, engage, and retain highly qualified employees ACTIONS  Enhance the current employee recognition program as recommended by employees  Conduct supervisory training as it relates to employee engagement, development and performance management  Expand the number of on-site training opportunities to enhance employee professional development  Evaluate the benefits package offered to employees  Conduct stay interviews with all new employees after 30 days of employment  Conduct exit interviews to assess the reasons for separation and report separations on a monthly basis  Conduct a market study of the Town's benchmark classifications and make necessary pay grade adjustments as needed and based on fiscal resources  Evaluate methods for determining employee engagement 32 2013 – 2014 Annual Budget Introduction General Plan The citizens of the Town of Oro Valley established and ordained this General Plan for the development and support of the Town. The purpose of the General Plan is to provide basic direction and guidance to all elected and appointed officials, employees, and residents of the Town in their decision making process. The General Plan consists of eleven (11) main elements. Land Use Orderly growth that focuses primarily on low-density development is especially important to the community, as is development that is sensitive to and compatible with the Sonoran Desert environment. Community Design The Town should integrate the manmade elements into the natural environment with great sensitivity and with minimal disruption to existing topographic forms and ecosystems. Economic Development Diversification in the local revenue base is desirable; however, any new development must be consistent with the community’s vision for the future and values. Cost of Development This Cost of Development element articulates the Town’s interest in ensuring that new development does its fair share to perpetuate the high standards that the Town has established since its incorporation. Transportation/Circulation Oro Valley’s transportation system must provide residents and visitors with safe, convenient and efficient mobility. Public Facilities, Services and Safety This element is to provide the Town with development oversight strategies that ensure orderly, rational development of infrastructure to support projected growth and to address the safety needs of its residents. Housing Efforts should continue to be made to provide a mix of housing at various densities and price ranges to allow people of all ages to enjoy the splendor of Oro Valley. Parks and Recreation This element is intended to protect and enhance the resort/residential image the Town wishes to maintain. Arts and Culture To enhance the quality of life by promoting and sustaining the arts and culture in our community. Archaeological and Historic Resources To preserve the unique archaeological, cultural, and historic resources within Oro Valley to the degree not already regulated by the state of Arizona. Open Space and Natural Resources Conservation This element is intended to identify and address the Town’s environmental resources in a comprehensive manner. The protection, restoration, and maintenance of environmental resources require an integrated approach. 33 2013 – 2014 Annual Budget This Page Intentionally Left Blank 34 2013 – 2014 Annual Budget Town of Oro Valley 35 2013 – 2014 Annual Budget This Page Intentionally Left Blank 36 2013 – 2014 Annual Budget Introduction Fund Structure The Town’s accounting and budget structure is segregated into various funds. In governmental accounting, a fund is a separate, self-balancing set of accounts that are created and maintained for specific purposes. The General Fund is the primary operating fund of the Town and is set up to account for the resources devoted to finance services traditionally associated with local government. Police, parks and recreation, development services, human resources, finance, legal services and magistrate court are some examples of services in the General Fund. Special Revenue Funds are used to account for the proceeds of specific revenue sources that are legally restricted to expenditures for a specific purpose. The Highway User Revenue Fund accounts for the Town’s share of motor fuel tax revenues, which are expended on street/roadway construction, maintenance and improvements. The Bed Tax Fund accounts for the collection of the 6% bed tax revenues, which fund economic development and tourism initiatives. The Impound Fee Fund accounts for the collection of administrative fees for processing vehicles impounded by the police department. The State Seizures & Forfeitures Fund accounts for state police seizures and forfeitures received by the Town, while the Federal Seizures & Forfeitures Fund accounts for federal police seizures and forfeitures received by the Town. Capital Project Funds are used to account for revenue received and expenditures related to infrastructure improvements such as streets, water, buildings and park facilities. Revenue is received from impact fees, the issuance of bonds, outside funding and special assessments. Most of the Town’s Capital Project Funds consist of impact fee funds. Debt Service Funds are used to account for the payment of principal and interest on general long term debt obligations that are not serviced by the General, Special Revenue and Enterprise Funds. It does not include contractual obligations accounted for in the individual funds. Town of Oro Valley Budgetary Funds Governmental FundsGovernmental Funds Proprietary FundsProprietary Funds General Fund Capital Project FundsCapital Project Funds Debt Service FundsDebt Service Funds Enterprise FundsEnterprise Funds Highway User Bed Tax Seizures & Forfeitures Impound Fee Water Utility Stormwater Utility Municipal Debt Service Oracle Rd Debt Service Naranja Park Police Impact Fee Potable Water System Alternative Water Resource Recreation-In-Lieu Fee General Government Impact Fee Parks & Recreation Impact Fee Library Impact Fee Roadway Development Impact Fee Aquatic Center Project Special Revenue Funds Internal Service FundsInternal Service Funds Fleet Benefit Self Ins. 37 2013 – 2014 Annual Budget Introduction Fund Structure Enterprise Funds are funds in which the services provided are financed and operated similarly to those of a private business. User fees are established to ensure that revenues are adequate to meet all expenses. The Town’s major Enterprise Fund is the Water Utility Fund, which is used to account for the costs to operate, construct and finance the town’s water system. The Town’s nonmajor Enterprise Fund is the Stormwater Utility Fund, which accounts for costs of maintaining the town’s stormwater drainage system. Internal Service Funds are funds that account for services provided to other divisions and departments within the Town government. The Fleet Fund accounts for replacement, preventative maintenance and repair of the Town’s fleet of vehicles and heavy equipment. The Benefit Self Insurance Fund is used to manage costs related to the Town’s self-funding of health insurance. BUDGET BASIS VERSUS ACCOUNTING BASIS Budget Basis The Town’s governmental and proprietary fund budgets are prepared using the modified accrual basis of accounting. Modified Accrual Basis is the method under which revenues are recognized when they become susceptible to accrual; that is when they become both “measurable” and “available to finance expenditures of the current period.” Revenue and expenditure recognition is determined by near-term inflows and outflows of financial resources. Accounting Basis The basis of accounting refers to when revenues and expenditures or expenses are to be recognized and reported in the Town’s financial statements. Full Accrual Basis is the method under which revenues are recorded when they are earned (whether or not cash is received at the time) and expenses are recorded when goods and services are received (whether cash disbursements are made at the time or not). In accordance with generally accepted accounting principles (GAAP), the Town’s proprietary fund financial statements are prepared using the full accrual basis of accounting, while the Town’s governmental fund financial statements are prepared using the modified accrual basis of accounting. Because the accounting basis differs from the budgeting basis for the Town’s proprietary funds, the following differences are noted:  Compensated absences liabilities that are expected to be liquidated with expendable available financial resources are accrued as earned by employees (GAAP) as opposed to being expended when paid (budget basis)  Principal payments on long-term debt within the enterprise funds are applied to the outstanding liability on a GAAP basis, as opposed to being expended on a budget basis  Capital outlays within the proprietary funds are recorded as assets on a GAAP basis and expended on a budget basis 38 2013 – 2014 Annual Budget Town of Oro Valley 39 2013 – 2014 Annual Budget This Page Intentionally Left Blank 40 2013-2014 Annual Budget Introduction Financial and Budgetary Policies The Town of Oro Valley has an important responsibility to its residents to carefully account for public funds, manage its finances prudently, and plan for the adequate funding of services desired by the public. Sound financial policies help to ensure the Town’s capability to adequately fund and provide the government services desired by the community. The policies contained herein are designed to foster and support the continued financial strength and stability of the Town of Oro Valley. Following these policies enhances the Town’s financial health as well as its image and reputation with residents, the general public, bond and credit rating agencies and investors. The policies serve as guidelines for the Town’s overall fiscal planning and management. In addition, the Government Finance Officers Association (GFOA), as well as the National Advisory Council on State and Local Budgeting (NACSLB) recommends formal adoption of financial policies by the jurisdiction’s governing board. The policies were adopted by Mayor and Council on May 18, 2011 per Resolution (R)11-30. A. Financial Planning Policies A.1 Balanced Budgeting and Fiscal Planning Policies Fiscal planning is the process of identifying resources and allocating those resources among multiple and competing needs. The primary vehicle for this planning is the preparation, monitoring and analysis of the Town’s budget. The Town shall develop an annual budget whereby recurring Town revenues shall be sufficient to support recurring operating expenditures with no use of General Fund contingency to support ongoing operational expenses. The Town’s annual budget will include contingency appropriation to provide for unanticipated increases in service delivery costs, emergencies, and needs that may arise through the fiscal year. The contingency appropriation may only be expended upon Council approval. Budget development will use strategic multi-year fiscal planning; conservative revenue forecasts and a program/performance based budgeting method. This method requires each department to establish fiscal year goals and objectives that will be evaluated to determine the effectiveness and efficiency of both department and Town resources. Utilization of a program/performance budget format will provide a basis for evaluation of service and other impacts of potential increases or decreases in funding. Monthly budget to actual revenue and expenditure reports will be prepared for all Town funds by the Finance Department and presented to Town Council. The reports will also include revenue and expenditure projections through the end of the fiscal year. The Town will not use one-time (non-recurring) revenues to fund continuing (recurring) uses, or use external borrowing for operational requirements. The budget will incorporate the best available estimates of revenues and expenditures. All budgetary appropriations that have not been expended or lawfully encumbered shall lapse at the end of the fiscal year, June 30th. Appropriations for capital projects in progress at fiscal year end shall be made for the subsequent fiscal year. The Town shall work to minimize the financial burden on its taxpayers by routinely evaluating both its administrative and direct service delivery systems in terms of efficiency, effectiveness and responsiveness. Technology shall be utilized when feasible to increase efficiency and cost-effectiveness. Any fiscal year-end special revenue fund balance amounts in other special revenue funds of the Town shall be maintained, preserved separately, and carried forward within those funds and not considered as part of the contingency reserve requirement for the Town’s General Fund. The Town’s annual budget shall be adopted by the Town Council at the fund level, except in the General Fund, where it shall be adopted at the department level. To provide sufficient control and accountability, budgets shall be prepared and monitored by major expenditure categories (personnel, operations and maintenance, capital outlay, debt service). (A fund is a fiscal and accounting entity with a self-balancing set of accounts recording cash and other financial resources). 41 2013-2014 Annual Budget Introduction Financial and Budgetary Policies The Town shall promote the understanding that its employees are its most valuable resource and shall employ sound management practices when planning for service delivery. The Town is committed to maintaining and improving the productivity of staff through a pleasant working environment, appropriate equipment including office automation and computer applications, necessary training and adequate supplies and materials as resources and adopted polices permit. A.2 Long Range Planning As part of the annual Town budget preparation cycle, the Finance Department shall prepare a minimum 5-year financial forecast of projected revenues and expenditures to measure the financial sustainability of the Town’s operations and service levels. A.3 Cash Management & Investment Policy Cash and investment programs will be maintained in accordance with the Town’s adopted Investment Policy and will ensure that proper controls and safeguards are maintained. Town funds are managed with an emphasis of safety of principal, liquidity and financial yield, in that order. Bond funds will be segregated from all other funds for arbitrage and accounting purposes. Ownership of the Town’s investment securities will be protected through third party custodial safekeeping. All Town bank accounts shall be reconciled and reviewed on a monthly basis. The Town will consolidate cash balances from various funds for investment purposes, and will allocate investment earnings to each participating fund. This will allow the Town to maximize yields from its overall portfolio. Investment performance will be reviewed and reported on as outlined in the current adopted investment policy. All treasury activities with financial institutions will be conducted based upon written contracts between the Town and the respective financial institution(s). A.4 Asset Inventory Capital assets are assets with an acquisition cost of $5,000 or more and an estimated useful life of two or more years. Such assets shall be depreciated in the Town’s financial statements over their estimated useful lives. Minor assets are assets with an acquisition cost of $1,000 or more but less than $5,000 and an estimated useful life of two or more years. Such assets will not be depreciated in the Town’s financial statements. Expendable items are machinery and equipment purchases whose cost is less than $1,000. These items will not be depreciated. The Town will depreciate capital assets using the straight line depreciation method. The Town will project equipment and vehicle replacement needs for the next five years and will update this projection each year. Subject to funding availability, Town departments will be charged an annual contribution amount to accumulate funds for this purpose based on a portion of their annual asset depreciation. The Finance Department shall be responsible for verifying the actual physical existence of capital and minor assets and the accuracy of the Town’s asset database. The process will be monitored through asset audits of Town departments and divisions. Any significant irregularities are reported to the Town Manager. The Town will maintain capital assets and infrastructure at a sufficient level to protect the Town’s investment, to minimize future replacement and maintenance costs, and to continue service levels. B. Revenue Policies B.1 Revenue Diversification The Town will strive for a General Fund revenue base consisting of a balance of sales taxes, state shared revenues, user fees and other revenue sources. 42 2013-2014 Annual Budget Introduction Financial and Budgetary Policies The Town will maintain a diversified and stable revenue base to protect against short term fluctuations in any single revenue source and economic changes locally and nationally. The Town will estimate revenues in a realistic and moderate manner in order to minimize the risk of a revenue shortfall. B.2 Fees and Charges All non-enterprise user fees and charges shall be examined annually to determine the cost recovery rate. The acceptable recovery rate and any associated changes to user fees and charges will be approved by Town Council or as otherwise specified in Town code. Development impact fees for capital expenses attributable to new development will be reviewed periodically to ensure the fees recover all direct and indirect development related expenses and be approved by Town Council. For enterprise fund operations, the Town will establish rates and fees at levels to cover fully the total direct and indirect costs, including operations, capital outlay, debt service, debt coverage requirements and unrestricted cash reserve balances. Enterprise funds will not be used to subsidize the operations of other funds. Interfund charges will be assessed for the administrative support of the enterprise activity. B.3 Use of One–Time Revenues The Town will utilize one-time (non-recurring) revenues to fund one-time operating expenditures, prepay existing debt, or supplement “pay as you go” capital outlay. One-time revenues shall not be used to fund recurring expenditures. B.4 Use of Unpredictable Revenues If the Town should receive unpredictable revenues from sales tax audits, unbudgeted grant funding, gifts or donations, the Town shall account for these revenues as one-time revenues. They shall not be used to fund recurring expenditures. C. Expenditure Policies C.1 Debt Capacity, Issuance & Management The Town will seek to maintain and, if possible, improve its current bond rating in order to minimize borrowing costs and preserve access to credit. The Town will encourage and maintain good relations with financial bond rating agencies and will follow a policy of full and open disclosure. Future bond issue proposals will be accompanied by an analysis showing how the new issue, combined with current debt, impacts the Town’s debt capacity and conformance with Town debt policies. The general policy of the Town is to fund capital projects with new, dedicated streams of revenue or voter-approved debt. Non voter-approved debt may be utilized when a dedicated revenue source other than general revenue can be identified to pay debt service expenditures. Financing shall not exceed the useful life of the acquired asset. The Town shall not use long term debt to finance current operations. The Town will establish debt repayment schedules with fixed annual principal and interest payments. Proceeds from bonded debt will be used in accordance with the purpose of the issuance. Funds remaining after the project is completed will be used in accordance with the provisions stated in the bond ordinance that authorized the issuance of the debt. The Town shall comply with the Internal Revenue Service arbitrage rebate requirements for bonded indebtedness. Interest earnings on bond proceeds will be limited to 1) funding or acquiring the improvement(s) or asset(s) or 2) payment of debt service on the bonds. All projects funded with bonded debt must be included in the Town’s Capital Improvement Program. When considering refunding any outstanding bonded debt, the Town will perform a cost benefit analysis to determine if the cost savings of refunding will be greater than the cost to refund. Considerations will be made with regard to the existing bond covenants when refunding any bonded debt. 43 2013-2014 Annual Budget Introduction Financial and Budgetary Policies When utility revenues are pledged as debt service payments, the Town will strive to maintain a 1.3 times debt service coverage ratio to ensure debt coverage in times of revenue fluctuation. This will be in addition to the required ratio in the bond indenture. The Town will communicate, and where appropriate, coordinate with all jurisdictions with which we share a common tax base concerning our collective plans for future debt issues. The Arizona Constitution limits the Town’s bonded debt capacity (outstanding principal) to a certain percentage of the Town’s secondary assessed valuation by the type of project to be constructed. The limit for general purpose municipal projects is 6%. For water, light, sewer, open space, public safety, park, law enforcement, fire and emergency services, and streets and transportation facilities projects, the limit is 20%. C.2 Capital Improvement Plan Policies The purpose of the Capital Improvement Plan (CIP) is to systematically identify, plan, schedule, finance, track and monitor capital projects to ensure cost effectiveness as well as conformance to established policies. A five year Capital Improvement Plan will be developed and updated annually, including anticipated funding sources. Capital improvement projects are defined as infrastructure, equipment purchases or construction which results in or makes improvements to a capitalized asset costing more than $50,000 and having a useful life of five or more years. The Capital Improvement Plan will include, in addition to estimated operating maintenance expenditures, adequate funding to support repair and replacement of deteriorating infrastructure and avoidance of a significant unfunded liability. Proposed capital projects will be reviewed and prioritized by a cross-departmental team regarding accurate costing (design, capital and operating) and overall consistency with the Town’s goals and objectives. Financing sources will then be identified for the projects ranking the highest based on the established ranking systems and limited monies. Capital improvement lifecycle costs will be coordinated with the development of the operating budget. Future operating, maintenance and replacement costs associated with new capital improvements will be forecast, matched to available revenue sources and included in the operating budget. The current fiscal year of the Capital Improvement Plan will become the capital budget. Staff will monitor projects to ensure their timely completion or determine if an adjustment to the Capital Improvement Plan needs to be presented to Council. A quarterly status report will be presented to the Town Council to monitor each project’s progress and identify any significant issues. C.3 Fund Balance Reserve Polices Fund balance reserves will be established to offset difficult economic times, stabilize fluctuations in cash flow requirements, provide for emergency situations threatening the public health or safety and provide for unanticipated increases in service delivery costs, unanticipated declines in revenues, unforeseen opportunities and contingencies. Use of reserves should be utilized only after all budget sources have been examined for available funds, and subject to Town Council approval. In accordance with Governmental Accounting Standards Board Statement No. 54, fund balances will be classified in the following components: A. Nonspendable Fund Balance: That portion of a fund balance that includes amounts that cannot be spent because they are either (a) not in spendable form, such as prepaid items, supplies inventory or loans receivable; or (b) legally or contractually required to be maintained intact, such as the principal portion of an endowment. This category was traditionally reported as a “reserved” fund balance under the old standard. B. Restricted Fund Balance: That portion of a fund balance that reflects constraints placed on the use of resources (other 44 2013-2014 Annual Budget Introduction Financial and Budgetary Policies replenish reserves when appropriations are projected to reduce reserves below the required minimum levels. When multiple categories of fund balance reserves are available for expenditure (for example, a construction project is being funded partly by a grant, funds set aside by the Town Council and unassigned fund balance), the Town will start with the most restricted category – spending those funds first – before moving down to the next category with available funds. Contingency reserves will be maintained at 5% of the operating budget expenditures for the Water Enterprise Fund. All Town budgetary fund designations and reserves will be evaluated annually for long- term adequacy and use requirements in conjunction with development of the Town’s long-term financial forecast. C.4 Operating Expenditure Accountability Expenditures will be controlled as outlined in the approved budget. Department heads are responsible for monitoring expenditures to prevent exceeding their total departmental expenditure budget. It is the responsibility of department heads to immediately notify the Finance Director and Town Manager of any circumstances that could result in a departmental budget being exceeded. The Arizona Constitution sets a limit on the expenditures of local jurisdictions. The Town will comply with these expenditure limitations and will submit an audited expenditure limitation report, audited financial statements, and audited reconciliation report as defined by the Uniform Expenditure Reporting System to the State Auditor General within prescribed timelines. Monthly budget to actual revenue and expenditure reports will be prepared, for all Town funds, by the Finance Department and presented to the Town Council. The reports will also include revenue and expenditure projections through the end of the fiscal year. To provide flexibility in the management of departmental budgets for major expenditures (personnel, operations and maintenance, than nonspendable items) that are either (a) externally imposed by creditors, such as debt covenants, grantors, contributors, or laws or regulations of other governments; or (b) imposed by law through constitutional provisions or enabling legislation. This category was traditionally reported as a “reserved” fund balance under the old standard. C. Committed Fund Balance: That portion of a fund balance that includes amounts that can only be used for specific purposes pursuant to constraints imposed by formal action of the government’s highest level of decision making authority, and remain binding unless removed in the same manner. This category was traditionally reported as a “designated” fund balance under the old standard. D. Assigned Fund Balance: That portion of a fund balance that includes amounts that are constrained by the government’s intent to be used for specific purposes, but that are neither restricted nor committed. Such intent needs to be established at either the highest level of decision making, or by an official designated for that purpose. This category was traditionally reported as a “designated” fund balance under the old standard. E. Unassigned Fund Balance: That portion of a fund balance that includes amounts that do not fall into one of the above four categories. The General Fund is the only fund that should report this category of fund balance. This category was traditionally reported as an “undesignated” fund balance under the old standard. The Town shall maintain, at a minimum, a fund balance contingency reserve in the General Fund that represents 25% of the General Fund’s annual expenditures with no use of the General Fund contingency to support ongoing operational expenditures. This minimum reserve amount will be incorporated into the General Fund budget adopted by formal action taken by the Town Council. Accordingly, these reserves will be classified as committed fund balances. Fund balance reserves may only be appropriated by authorization of the Town Council. A plan will be developed to adequately 45 2013-2014 Annual Budget Introduction Financial and Budgetary Policies capital outlay and debt service) the following budget amendment and transfer provisions shall apply: A. Transfers between funds shall require the recommendation of the Town Manager and formal action by the Town Council. B. Transfers between the line items within each major expenditure category shall be permitted upon recommendation of the Department Head and approval by the Town Manager. C. Transfers between the line items or major expenditure categories to fund additional personnel or increased expenditures as a result of personnel reclassifications shall require the recommendation of the Town Manager and formal action by the Town Council. D. Transfers between the operations and maintenance and capital outlay major expenditure categories shall be permitted upon recommendation of the Department Head and approval by the Town Manager. E. Transfers that would reduce or eliminate funding for items designated in the adopted Capital Improvement Plan shall require the recommendation of the Town Manager and approval of the Town Council. F. Transfers that would reduce or eliminate funding for debt service shall require the recommendation of the Town Manager and formal Council action. D. Financial Reporting Policies The Town’s accounting and financial reporting systems will be maintained in conformance with all state and federal laws, generally accepted accounting principles (GAAP) and standards of the Governmental Accounting Standards Board (GASB) and the Government Finance Officers Association (GFOA). An annual audit of the Town’s financial statements will be performed by an independent certified public accounting firm, with an audit opinion to be included with the Town’s published Comprehensive Annual Financial Report (CAFR). The Town’s CAFR will be submitted to the GFOA Certification of Achievement for Excellence in Financial Reporting Program. The financial report should be in conformity with GAAP, demonstrate compliance with finance related legal and contractual provisions, disclose thoroughness and detail sufficiency, and minimize ambiguities and potentials for misleading inference. The Town’s budget will be submitted annually to the GFOA Distinguished Budget Presentation Program. The budget should satisfy criteria as a financial and programmatic policy document, as a comprehensive financial plan, as an operations guide for all organizational units and as a communications device for all significant budgetary issues, trends and resource choices. Financial systems will maintain internal controls to monitor revenues, expenditures and program performance on an ongoing basis. 46 2013 – 2014 Annual Budget Town of Oro Valley 47 2013 – 2014 Annual Budget This Page Intentionally Left Blank 48 2013 – 2014 Annual Budget Introduction Budget Process Overview The FY 2013 - 2014 budget process began in early January 2013 with individual meetings with Councilmembers to outline their budget priorities for the upcoming fiscal year. The budget was developed using six major themes derived from those meetings. Those six core themes are:  Investment in Town employees  Investment in infrastructure and Town assets  Investment in technology  Economic development as a key strategy to achieve a healthy financial environment  Support quality-of-life programs and services for the community  Revenue enhancement and expenditure reductions Each department within the Town develops their budget at the line-item level. The departments project year-end estimates and formulate the next year’s requests. This information is compiled on a program level and an overall department level. Although the local and national economies continue to improve, the Town still relies heavily on volatile revenue sources. As a result, continued importance and emphasis are placed on the need to control costs and obtain greater operating efficiencies both in operations and maintenance and personnel costs. In preparing their budgets, departments were instructed to “hold the line” wherever possible while continuing current service level provisions to Town residents. Budget Review Once departments have submitted their budget requests for personnel, O&M, and capital, Finance staff reviews the requests and compiles a financial package for the Town Manager. Any gaps existing between revenue and expenditures are discussed among Finance and Town management with a recommendation for closure. Simultaneously, a financial sustainability plan is updated with various assumption factors, and projected revenue and departmental costs to complete a five-year financial picture. The Town Manager meets with each department director to discuss and review their budget and ultimately recommends a budget for Council consideration. The Town Manager’s recommended balanced budget and a 15-year Capital Improvement Program are delivered to the Council along with an overview of the Town’s five-year financial condition. Council members, during budget work sessions, have the option of adding new items for consideration, as well as amending or removing existing staff recommended budget items. Upon Council’s revisions to the Town Manager’s recommended budget, Finance compiles and finalizes the proposed tentative budget. Budget Adoption The proposed budget was delivered and presented to Council for tentative adoption on May 1, 2013. The adoption of the tentative budget sets the expenditure limitation for the fiscal year. The budget is then available to the general public via newspaper and public hearings. After completion of public hearings, the final budget was adopted on May 15, 2013. 49 2013 – 2014 Annual Budget Introduction Budget Process Expenditure Limitation The State of Arizona imposes an expenditure limitation on local jurisdictions. State statute sets the limit unless otherwise approved by the voters. If the limit imposed by the State is not sufficient to meet the Town’s needs, the budget law provides four options to potentially solve the problem. All of these options require voter approval.  A local home rule (alternative expenditure limitation)  A permanent base adjustment  A capital projects accumulation fund  A one-time override The voters of the Town of Oro Valley adopted the Home Rule Option in 2010. The expenditure limit approved by the voters must be used in determining the Town’s expenditure limit until a new base is adopted. The Home Rule option is voted on every four years. The FY 2013/2014 expenditure limit for Oro Valley is $93,913,429. Budget Amendments Because detailed budgets are considered by the Town to be a planning tool for department management, departments should have some degree of flexibility in establishing and adjusting such detail including major expenditure categories. To provide such flexibility, the following budget amendment and transfer provisions shall apply: a) Transfers between funds shall require the recommendation of the Town Manager and formal action by the Town Council. b) Transfers between line items within each major expenditure category shall be permitted upon recommendation of the Department Head and approval by the Town Manager. c) Transfers between the line items or major expenditure categories to fund additional personnel or increased expenditures as a result of personnel reclassifications shall require the recommendation of the Town Manager and formal action by the Town Council. d) Transfers between the operations and maintenance and capital outlay major expenditure categories shall be permitted upon recommendation of the Department Head and approval by the Town Manager. e) Transfers that would reduce or eliminate funding for items designated in the adopted Capital Improvement Plan shall require the recommendation of the Town Manager and formal Council action. f) Transfers that would reduce or eliminate funding for debt service shall require the recommendation of the Town Manager and formal Council action. 50 2013 – 2014 Annual Budget Introduction Budget Calendar S M T WTh F S 12345 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 S M T W Th F S1 2 3 4 5 6 789 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 S M T W Th F S1 2 3 4 5 6 789 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 S M T WTh F S 123 4 56 78910 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 S M T WTh F S 1 234 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 March April January February May 2013 Budget Calendar January 7-11 Individual Councilmember meetings with Budget Team to outline priorities 17 Community Budget Forum Employee Budget Forum February 1 Departments begin compiling requested budget for operations & maintenance and capital expenditures 11 Capital Improvement Program (CIP) requests due to Finance 18 CIP Committee meeting to rank CIP projects 22 Finance finalizes FY 13/14 revenue estimates 22 Departments submit operations & maintenance and capital expenditure requests to Finance March 1 Finance compiles, reviews and analyzes department budget requests 4-8 Town Manager meets with department directors and Finance to review the proposed budget 11-22 Finance prepares Town Manager Recommended Budget April 3 Town Manager Recommended Budget and 15-year CIP delivered to Council 10 Council Budget Work Session 24 Council Budget Work Session May 1 Adoption of Tentative Budget and CIP 15 Adoption of Final Budget and CIP 51 2013 – 2014 Annual Budget This Page Intentionally Left Blank 52 FI N A N C I A L O V E R V I E W Bu d g e t O v e r v i e w Fu n d B a l a n c e s Hi s t o r i c a l F u n d B a l a n c e s Bu d g e t S u m m a r y Re v e n u e S u m m a r y Re v e n u e S c h e d u l e b y F u n d Re v e n u e S o u r c e s Ex p e n d i t u r e S u m m a r y Ex p e n d i t u r e S c h e d u l e b y F u n d Ex p e n d i t u r e s b y P r o g r a m Pe r s o n n e l S u m m a r y Pe r s o n n e l S u m m a r y b y F u n d Pe r s o n n e l S c h e d u l e D e b t S e r v i c e De b t S e r v i c e S c h e d u l e s Lo n g T e r m F o r e c a s t FINANCIAL OVERVIEW 2013 – 2014 Annual Budget Financial Overview Sales Taxes 23% Interest Income 1% Miscellaneous 4%Impact Fees 6%Fines, Licenses & Permits 3% State Shared Revenue 20% Charges for Services 11% Outside Funding Sources 13% Water Sales 19% Budget Overview The budget for FY 2013/2014 totals $93.9 million, which includes a $51.2 million operating budget and $9.1 million for capital projects, and represents a 1.6% decrease over the previous fiscal year budget of $95.4 million. Several steps have been taken over the last few years to put the Town on a sustainable financial path. These steps include increasing revenues and efficiencies, streamlining operations and reducing staff through vacancies and attrition. The FY 13/14 budget addresses several areas of critical need that were put on hold during the economic downturn. Budgeted capital includes fleet and technology replacements, as well as improvements to parks and public safety facilities. The reduction in overall budgeted capital is due to completion of the expanded aquatic center and widening of Lambert Lane. Refer to the Capital Improvement Program (CIP) for additional detail on budgeted projects. The FY 13/14 budget also provides for merit and step increases for all Town employees, the first of such an increase in five years. The O&M budget is increasing 11.1% to address several needs and initiatives, of which are further discussed in the Budget Message and Expenditure Summary section of this budget. A more detailed discussion on the changes to each category of the Town’s budget can also be found in the Expenditure Summary section of this document. Comprehensive Budget Overview $24.9 $25.1 $16.3$18.1 $17.5 $10.3 $6.3 $6.8 $0.0 $5.0 $10.0 $15.0 $20.0 $25.0 $30.0 $35.0 $40.0 $45.0 $50.0 $M Personnel O&M Capital Debt Service FY 2013 Budget FY 2014 Budget 1.0% 11.1%41.5% 7.3% Revenues Budgeted revenue for FY 13/14 totals $62.2 million and represents a 7.4% increase from FY 12/13. The Town receives a variety of funding sources to finance operations which will be discussed in further detail in the Financial Overview section of the budget document. In FY 13/14, the Town has budgeted revenue from Sales Taxes, which is a major funding source (23% of the total), State Shared Revenues (20% of total), and Water Sales (19% of total). Revenue from Outside Funding Sources (13% of total) includes $6.3 million in state and federal grant proceeds. 53 2013 – 2014 Annual Budget Financial Overview Personnel 42% Debt Service 11%Capital 17% O&M 30% Budget Overview FY 2012 FY 2013/14 Variance Actual Budget Projected Budget to Budget % Sales Taxes 13,325,105 13,427,168 13,775,472 14,989,579 1,562,411 11.6% Charges for Services 5,383,924 5,844,039 6,095,337 6,839,823 995,784 17.0% State Shared Revenue 10,563,670 11,655,122 11,655,122 12,159,167 504,045 4.3% Fines, Licenses & Permits 1,386,534 1,169,469 1,561,706 1,731,455 561,986 48.1% Miscellaneous 625,530 2,746,664 2,427,946 2,466,000 (280,664) -10.2% Impact Fees 1,639,628 926,875 2,269,417 3,704,483 2,777,608 299.7% Interest Income 681,416 551,678 540,960 510,368 (41,310) -7.5% Water Sales 11,578,980 11,707,800 11,693,000 11,748,000 40,200 0.3% Outside Funding Sources 12,462,836 9,876,039 7,202,422 8,046,867 (1,829,172) -18.5% Total Revenue 57,647,623$ 57,904,854$ 57,221,382$ 62,195,742$ 4,290,888$ 7.4% Does not include interfund transfers or carry-forward fund balances FY 2012/13 Revenue Sources Expenditures Budgeted expenditures for FY 13/14 total $60.3 million and represent a 7.3% decrease over FY 12/13. The budget includes $51.2 million to support daily operations and services and $9.1 million in capital projects to fund technology, parks and public safety facilities improvements, roadway expansions and improvements, as well as water and stormwater infrastructure improvements. Further detail on uses of expenditures and types can be found in the Financial Overview section of the budget document. FY 2012 FY 2013/14 Variance Actual Budget Projected Budget to Budget % Personnel 23,863,037 24,855,460 24,479,784 25,099,764 244,304 1.0% O&M 11,119,323 16,339,099 15,365,748 18,148,045 1,808,946 11.1% Capital 11,718,954 17,523,613 14,814,607 10,258,790 (7,264,823) -41.5% Debt Service 8,716,009 6,288,559 6,596,828 6,750,417 461,858 7.3% Total Expenditures 55,417,323$ 65,006,731$ 61,256,967$ 60,257,016$ (4,749,715)$ -7.3% Does not include depreciation, amortization, interfund transfers or contingency amounts FY 2012/13 54 2013 – 2014 Annual Budget Financial Overview Required Contingency 25% Budgeted Contingency 33% Total FY 2013/14 General Fund Expenditures = $28.5M $20.0 $22.0 $24.0 $26.0 $28.0 $M FY 2014 General Fund Expenditures and Revenue Revenue Expenditures Deficit = $(158K) $28.5M $28.4M Budget Overview Budget Policy In accordance with the Town’s adopted Financial and Budgetary Policies, A.1 – Balanced Budgeting and Fiscal Planning Policies, “The Town shall develop an annual budget whereby recurring Town revenues shall be sufficient to support recurring operating expenditures with no use of General Fund contingency to support ongoing operational expenses.” Revenues $ 28,386,906 Expenditures 28,545,242 Surplus/(Deficit) $ ( 158,336) The negative difference of $158,336 between revenues and total expenditures in the General Fund for FY 13/14 is attributed to one-time capital expenditures. All recurring expenditures are expected to be covered with budgeted revenues. Another section of Financial Policy A.1, involves contingencies, its uses, and the reserve requirement – “The Town’s annual budget will include contingency appropriation to provide for unanticipated increases in service delivery costs, emergencies, and needs that may arise through the fiscal year.” The policy set by Council mandates 25% of recurring expenditures must be set aside as a required contingency in the General Fund. Expenditures $28,545,242 Contingency Requirement 25% Required Contingency $ 7,136,311 The budgeted contingency reserve for FY 2013/14 is $9,566,171 in the General Fund and is equal to 33% of expenditures. Of this amount, $8.0 million is unassigned, while $1.6 million is assigned for employee compensated absences (i.e. for accrued vacation, sick and compensatory time leave) and for unemployment compensation claims. 55 2013 – 2014 Annual Budget This Page Intentionally Left Blank 56 Special Capital Internal General Revenue Water Utility Non-Major Projects Service Debt Service 2013-2014 Fund Funds Fund Enterprise Fund Funds Funds Funds Total Revenues and Other Sources Taxes 13,123,382$ 1,866,197$ -$ -$ -$ -$ -$ 14,989,579$ Licenses and Permits 1,493,455 48,000 - - - - - 1,541,455 Fines 190,000 - - - - - - 190,000 Water Sales - - 11,748,000 - - - - 11,748,000 Charges for Services 1,443,437 176,993 597,100 771,500 2,568,000 1,282,793 - 6,839,823 State Shared Revenue 9,659,167 2,500,000 - - - - - 12,159,167 Intergovernmental 30,000 - - - - - - 30,000 Grants 2,086,190 35,000 - 450,000 3,650,000 - 70,677 6,291,867 Seizures & Forfeitures - 425,000 - - - - - 425,000 Impact Fees - - - - 3,704,483 - - 3,704,483 Interest Income 62,275 10,975 66,250 500 4,500 - 365,868 510,368 Miscellaneous 114,000 10,000 - - 30,000 2,229,000 83,000 2,466,000 Other Financing Sources 185,000 - 1,400,000 - - - 371,576 1,956,576 Total 28,386,906$ 5,072,165$ 13,811,350$ 1,222,000$ 9,956,983$ 3,511,793$ 891,121$ 62,852,318$ Expenditures and Other Uses General Government Clerk 345,118$ -$ -$ -$ -$ -$ -$ 345,118$ Council 225,853 - - - - - - 225,853 Finance 709,242 - - - - - - 709,242 General Administration 2,037,730 - - - - 2,209,000 12,720 4,259,450 Human Resources 523,821 - - - - - - 523,821 Information Technology 1,482,173 - - - - - - 1,482,173 Legal 804,344 - - - - - - 804,344 Magistrate Court 761,430 - - - - - - 761,430 Town Manager's Office 700,989 501,762 - - - - - 1,202,751 Debt Service Principal - - - - - - 704,000 704,000 Interest - - - - - - 488,510 488,510 Police 14,223,297 231,646 - - - - 14,454,943 Dev. & Infrastructure Svcs.4,031,561 3,720,981 - 1,334,376 - 1,221,963 - 10,308,881 Parks and Recreation 2,536,955 - - - - - - 2,536,955 Water Utility Personnel - - 2,688,464 - - - - 2,688,464 Operations & Maintenance - - 6,084,961 - 293,463 - - 6,378,424 Capital Outlay - - 2,654,750 - 790,000 - - 3,444,750 Debt Service Principal - - 2,033,797 - 1,220,330 - - 3,254,127 Interest - - 1,357,899 - 945,881 - - 2,303,780 Roadway Improvements - - - - 3,380,000 - - 3,380,000 Other Financing Uses 162,729 390,669 3,178 - 100,000 - - 656,576 Total 28,545,242$ 4,845,058$ 14,823,049$ 1,334,376$ 6,729,674$ 3,430,963$ 1,205,230$ 60,913,592$ Increase/(Decrease)(158,336) 227,107 (1,011,699) (112,376) 3,227,309 80,830 (314,109) 1,938,726 Beginning Fund Balance 9,724,507$ 3,971,350$ 8,678,569$ 329,204$ 7,538,022$ 625,000$ 851,035$ 31,717,687$ Ending Fund Balance 9,566,171$ 4,198,457$ 7,666,870$ 216,828$ 10,765,331$705,830$ 536,926$ 33,656,413$ (1) The General Fund is decreasing by $158,336, which will be used to fund capital projects. (2) Special Revenue Funds are increasing by $227,107. (3) Enterprise Funds are decreasing by $1,124,075 which will be used to fund capital projects. (4) Capital Projects Funds are increasing by $3,227,309 due to collection of impact fees expected from increased development activity. (5) Internal Service Funds are increasing by $80,830. (6) Debt Service Funds are decreasing by $314,109 which will be used to fund debt service payments. Fund Balances This table depicts the estimated beginning fund balance at July 1, 2013, the budgeted revenues and expenditures for FY 2013/14 and the projected ending fund balance at June 30, 2014. Enterprise Funds (1)(2)(3)(4)(5)(6) 2013-2014 Annual Budget Financial Overview57 2013 – 2014 Annual Budget This Page Intentionally Left Blank 58 Historical Fund Balances 2012 2013 2014 2012 2013 2014 Actual Estimate Budget Actual Estimate Budget Revenues and Other Sources Taxes 12,182,009$ 12,523,845$ 13,123,382$ 1,143,096$ 1,251,627$ 1,866,197$ Licenses and Permits 1,138,348 1,330,596 1,493,455 47,514 51,110 48,000 Fines 200,672 180,000 190,000 Water Sales Charges for Services 1,252,066 1,284,554 1,443,437 2,386,152 2,836,996 2,744,993 State Shared Revenue 8,145,065 9,175,117 9,659,167 2,418,605 2,480,005 2,500,000 Intergovernmental 574,589 442,339 30,000 Grants 1,218,792 1,736,432 2,086,190 7,289,438 4,930,784 3,755,677 Seizures & Forfeitures 645,858 85,000 425,000 Impact Fees 1,639,628 2,269,417 3,704,483 Interest Income 159,184 62,275 62,275 395,999 407,635 381,343 Miscellaneous 215,047 157,623 114,000 267,207 147,683 123,000 Other Financing Sources 318,426 126,966 185,000 3,379,075 1,665,487 371,576 Total 25,404,198$ 27,019,747$ 28,386,906$ 19,612,572$ 16,125,744$ 15,920,269$ Expenditures and Other Uses General Government Clerk 408,628$ 321,989$ 345,118$ Council 198,857 224,618 225,853 Finance 708,721 726,233 709,242 General Administration 1,716,537 1,831,394 2,037,730 7,449 135,963 12,720 Human Resources 466,611 464,107 523,821 Information Technology 1,182,391 1,213,633 1,482,173 Legal 767,988 768,813 804,344 Magistrate Court 691,870 726,527 761,430 Town Manager's Office 693,924 638,569 700,989 201,616 386,710 501,762 Debt Service Principal 539,820 571,910 704,000 Interest 444,401 489,529 488,510 Police 11,980,950 12,599,309 14,223,297 255,215 664,493 231,646 Dev. & Infrastructure Svcs.2,934,686 3,349,021 4,031,561 3,757,844 3,630,438 3,720,981 Parks and Recreation 3,006,722 2,387,353 2,536,955 417,198 4,829,795 Water Utility Personnel Operations & Maintenance 163,133 352,600 293,463 Capital Outlay 1,053,866 46,000 790,000 Debt Service Principal 1,424,608 1,476,493 1,220,330 Interest 966,314 1,160,092 945,881 Roadway Improvements 7,501,852 4,760,000 3,380,000 Use of Contingency 66,708 2,100,000 19,013 Other Financing Uses 185,240 1,345,324 162,729 918,426 776,966 490,669 Total 25,009,833$ 28,696,890$ 28,545,242$ 17,670,755$ 19,280,989$ 12,779,962$ Increase/(Decrease)394,365 (1,677,143) (158,336) 1,941,817 (3,155,245) 3,140,307 Beginning Fund Balance 11,007,285$ 11,401,650$ 9,724,507$ 13,573,835$ 15,515,652$ 12,360,407$ Ending Fund Balance 11,401,650$ 9,724,507$ 9,566,171$ 15,515,652$ 12,360,407$ 15,500,714$ (A) Includes Special Revenue, Capital Projects and Debt Service Funds General Fund Other Non-Major Governmental Funds (A) 2013-2014 Annual Budget Financial Overview59 Revenues and Other Sources Taxes Licenses and Permits Fines Water Sales Charges for Services State Shared Revenue Intergovernmental Grants Seizures & Forfeitures Impact Fees Interest Income Miscellaneous Other Financing Sources Total Expenditures and Other Uses General Government Clerk Council Finance General Administration Human Resources Information Technology Legal Magistrate Court Town Manager's Office Debt Service Principal Interest Police Dev. & Infrastructure Svcs. Parks and Recreation Water Utility Personnel Operations & Maintenance Capital Outlay Debt Service Principal Interest Roadway Improvements Use of Contingency Other Financing Uses Total Increase/(Decrease) Beginning Fund Balance Ending Fund Balance Historical Fund Balances 2012 2013 2014 2012 2013 2014 Actual Estimate Budget Actual Estimate Budget 11,578,980 11,693,000 11,748,000 557,223 572,400 597,100 752,212 762,600 771,500 40,324 7,867 450,000 125,912 66,250 66,250 321 4,800 500 143,145 20,000 131 20,140 100,000 100,000 1,400,000 12,505,260$ 12,451,650$ 13,811,350$ 792,988$ 795,407$ 1,222,000$ 655,365 941,151 1,334,376 2,497,865 2,524,231 2,688,464 4,010,407 5,660,204 6,084,961 3,600,815 3,080,700 2,654,750 1,310,654 1,458,286 2,033,797 1,414,745 1,440,518 1,357,899 6,900 600 2,319 3,178 12,841,386$ 14,166,258$ 14,823,049$ 655,965$ 941,151$ 1,334,376$ (336,126) (1,714,608) (1,011,699) 137,023 (145,744) (112,376) 10,729,303$ 10,393,177$ 8,678,569$ 337,925$ 474,948$ 329,204$ 10,393,177$ 8,678,569$ 7,666,870$ 474,948$ 329,204$ 216,828$ Note: Does not include depreciation or amortization Enterprise Funds Water Utility Fund Non-Major Enterprise Fund 2013-2014 Annual Budget Financial Overview60 Revenues and Other Sources Taxes Licenses and Permits Fines Water Sales Charges for Services State Shared Revenue Intergovernmental Grants Seizures & Forfeitures Impact Fees Interest Income Miscellaneous Other Financing Sources Total Expenditures and Other Uses General Government Clerk Council Finance General Administration Human Resources Information Technology Legal Magistrate Court Town Manager's Office Debt Service Principal Interest Police Dev. & Infrastructure Svcs. Parks and Recreation Water Utility Personnel Operations & Maintenance Capital Outlay Debt Service Principal Interest Roadway Improvements Use of Contingency Other Financing Uses Total Increase/(Decrease) Beginning Fund Balance Ending Fund Balance Historical Fund Balances 2012 2013 2014 2012 2013 2014 Actual Estimate Budget Actual Estimate Budget 13,325,105$ 13,775,472$ 14,989,579$ 1,185,862 1,381,706 1,541,455 200,672 180,000 190,000 11,578,980 11,693,000 11,748,000 436,271 638,787 1,282,793 5,383,924 6,095,337 6,839,823 10,563,670 11,655,122 12,159,167 574,589 442,339 30,000 8,548,554 6,675,083 6,291,867 645,858 85,000 425,000 1,639,628 2,269,417 3,704,483 681,416 540,960 510,368 2,082,500 2,229,000 625,530 2,427,946 2,466,000 300,000 3,797,501 2,192,453 1,956,576 436,271$ 3,021,287$ 3,511,793$ 58,751,289$ 59,413,835$ 62,852,318$ 408,628$ 321,989$ 345,118$ 198,857 224,618 225,853 708,721 726,233 709,242 1,757,500 2,209,000 1,723,986 3,724,857 4,259,450 466,611 464,107 523,821 1,182,391 1,213,633 1,482,173 767,988 768,813 804,344 691,870 726,527 761,430 895,540 1,025,279 1,202,751 539,820 571,910 704,000 444,401 489,529 488,510 12,236,165 13,263,802 14,454,943 436,271 638,787 1,221,963 7,784,166 8,559,397 10,308,881 3,423,920 7,217,148 2,536,955 2,497,865 2,524,231 2,688,464 4,173,540 6,012,804 6,378,424 4,654,681 3,126,700 3,444,750 2,735,262 2,934,779 3,254,127 2,381,059 2,600,610 2,303,780 7,501,852 4,760,000 3,380,000 93,221 2,100,000 1,103,666 2,124,609 656,576 436,271$ 2,396,287$ 3,430,963$ 56,614,210$ 65,481,575$ 60,913,592$ - 625,000 80,830 2,137,079 (6,067,740) 1,938,726 -$ -$ 625,000$ 35,648,348$ 37,785,427$ 31,717,687$ -$ 625,000$ 705,830$ 37,785,427$ 31,717,687$ 33,656,413$ Note: Does not include depreciation or amortization Total All FundsInternal Service Funds 2013-2014 Annual Budget Financial Overview61 2013 – 2014 Annual Budget This Page Intentionally Left Blank 62 Budget Summary FY 2011 FY 2012 FY 2014BudgetProjected Budget Personnel General Fund 252.12 263.01 269.50 254.23 258.86 Special Revenue Funds 39.31 27.24 33.04 32.08 29.58 Capital Project Funds - - - - - Enterprise Funds 37.50 39.50 40.10 40.10 41.10 Internal Service Funds 2.35 1.35 1.15 1.15 1.15 TOTAL PERSONNEL 331.28 331.10 343.79 327.56 330.69 Expenditures by Fund General Fund 24,723,096 24,757,885 26,264,992 25,251,566 28,382,513 Special Revenue Funds 4,576,434 4,214,675 4,381,610 4,598,995 4,454,389 Debt Service Funds 871,851 991,670 1,024,378 1,074,159 1,205,230 Capital Project Funds 12,401,783 11,526,971 14,340,629 12,830,869 6,629,674 Enterprise Funds 12,042,746 13,489,851 16,173,671 15,105,091 16,154,247 Internal Service Funds 874,968 436,271 2,821,451 2,396,287 3,430,963 TOTAL EXPENDITURES 55,490,878 55,417,323 65,006,731 61,256,967 60,257,016 Expenditures by Category Personnel 24,464,800 23,863,037 24,855,460 24,479,784 25,099,764 Operations & Maintenance 11,093,553 11,119,323 16,339,099 15,365,748 18,148,045 Capital Outlay 13,571,409 11,718,954 17,523,613 14,814,607 10,258,790 Debt Service 6,361,116 8,716,009 6,288,559 6,596,828 6,750,417 TOTAL EXPENDITURES 55,490,878 55,417,323 65,006,731 61,256,967 60,257,016 Operating Results Total Revenues 53,894,212 57,647,623 57,904,854 57,221,382 62,195,742 Total Expenditures 55,490,878 55,417,323 65,006,731 61,256,967 60,257,016 NET OPERATING RESULTS (1,596,666) 2,230,300 (7,101,877) (4,035,585) 1,938,726 1) Excludes depreciation, amortization, contingency amounts and interfund transfers2) Excludes carry-forward balances and interfund transfers 3) Negative net operating results are attributable to planned outlay for capital projects and any associated debt service FY 2013Actual 1) 1) 1) 2) 3) 2013-2014 Annual Budget Financial Overview63 2013 – 2014 Annual Budget This Page Intentionally Left Blank 64 2013 – 2014 Annual Budget Financial Overview Revenue for FY 2013-14 is estimated to total $62,195,742. In comparison to the FY 2012-13 budget, revenue is projected to increase 7.4%. Economic recovery appears steady at the state and local level. The Town’s state shared revenue collections will increase for the second consecutive year. The number of single family residential permits issued within the Town has increased dramatically over the previous year and several new apartments are in either development or construction phases. Year-over-year growth in local construction sales taxes is roughly 50%. The Town does continue to rely heavily on these economically sensitive revenue sources, however, with sales taxes and state shared revenues making up 43% of the projected FY 2013-14 revenues. Local sales tax represents 23% of the Town’s FY 2013-14 projected revenues. In this category, taxes related to retail trade are the biggest contributor. In previous years, taxes related to construction activity were the greatest component. For FY 2013-14, residential construction revenue was projected assuming development and activity patterns similar to what is currently being observed. The Town expects to issue approximately 218 single family residential (SFR) permits in FY 2012-13. Residential permit revenues for FY 2013-14 are based on the assumption that 180 SFR permits will be issued next year. Increases in the commercial sector are of lower scale, perhaps a factor of economic conditions and of the Town approaching buildout within its incorporated boundaries. In collaboration with Economic Development and Development Services, the Finance department compiled a list of all projects in the pipeline and their likelihood of completion in the next budget year. The FY 2013-14 budget is forecasted to see an addition of nearly 175,000 square feet of commercial building in the form of industrial and office space, retail, recreation, and completion of a retirement center. Compiling revenue estimates in a sensitive fiscal climate is a difficult task. Depending on the particular revenue source, estimates are based on susceptibility to economic factors, current performance, economic drivers and indicators, and information received from State reports and other sources. The Town receives a variety of other funding sources to finance operations. Refer to the Revenue Schedule by Fund for detailed changes in revenue from budget year to budget year. FY 2013/14 Budgeted Revenue Sources Sales Taxes 23% Interest Income 1% Miscellaneous 4%Impact Fees 6%Fines, Licenses & Permits 3% State Shared Revenue 20% Charges for Services 11% Outside Funding Sources 13% Water Sales 19% Revenue Summary 65 2013 – 2014 Annual Budget Financial Overview FY 2012 FY 2013/14 Variance Actual Budget Projected Budget to Budget % Sales Taxes 13,325,105 13,427,168 13,775,472 14,989,579 1,562,411 11.6% Charges for Services 5,383,924 5,844,039 6,095,337 6,839,823 995,784 17.0% State Shared Revenue 10,563,670 11,655,122 11,655,122 12,159,167 504,045 4.3% Fines, Licenses & Permits 1,386,534 1,169,469 1,561,706 1,731,455 561,986 48.1% Miscellaneous 625,530 2,746,664 2,427,946 2,466,000 (280,664) -10.2% Impact Fees 1,639,628 926,875 2,269,417 3,704,483 2,777,608 299.7% Interest Income 681,416 551,678 540,960 510,368 (41,310) -7.5% Water Sales 11,578,980 11,707,800 11,693,000 11,748,000 40,200 0.3% Outside Funding Sources 12,462,836 9,876,039 7,202,422 8,046,867 (1,829,172) -18.5% Total Revenue 57,647,623$ 57,904,854$ 57,221,382$ 62,195,742$ 4,290,888$ 7.4% Does not include interfund transfers or carry-forward fund balances FY 2012/13 Revenue Sources A brief description of the changes in revenue sources from budget year to budget year is as follows: Sales Taxes $1.6M  $1.0M increase (51%) in construction taxes based on observed and anticipated residential building activity  Increases in utility and retail collections due to improving economic conditions Charges for Services $1.0M  $644K increase in Fleet Fund for vehicle reserves and replacements  $140K increase in aquatics revenue due to facility expansion  $122K increase in Water Utility Fund revenue  $100K increase in Groundwater Preservation Fee revenue State Shared Revenue $500K  $387K increase (9%) in State Income Tax  $114K increase (3%) in State Sales Tax Fines, Licenses & Permits $562K  $435K increase in residential building permit revenues (anticipated multi-family residential building activity)  $117K increase in commercial building permit revenues based on observed and anticipated building activity  $5K increase in business license revenue  $5K increase in road permit revenue Miscellaneous $(281K)  $270K decrease in donations for aquatics facility expansion  $20K decrease in sale of assets and insurance recoveries  $17K decrease in electricity rebates from Tucson Electric Power for generation of solar energy  $26K increase for self-funded employee and employer health insurance premiums Impact Fees $2.8M  Due to observed and anticipated residential and commercial building activity Interest Income $(41K)  Due to observed earnings rates Outside Funding Sources $(1.8M)  $2.5M decrease in grants for roadway project funding (due to project completions or postponements)  $300K decrease in federal transit vehicle grants  $580K decrease in Pima County Library District reimbursement due to transfer of library operations to the County  $1.3M increase in loan proceeds from Water Infrastructure Finance Authority  $243K increase in reimbursement from Regional Transportation Authority (RTA) due to continued expansion of the Sun Shuttle transit service Revenue Summary 66 FY 2011 FY 2012 FY 2014 %Major Revenue Accounts Actual Budget Projected Budget to Budget General FundLocal Sales Tax:Local Sales Tax 10,965,452 11,539,523 11,727,995 12,015,845 12,623,382 7.6% Sales Tax Audit Recoveries 95,409 117,059 100,000 8,000 - -100.0% Cable Franchise Fees 514,814 525,427 500,000 500,000 500,000 0.0%Total Local Sales Tax 11,575,674 12,182,009 12,327,995 12,523,845 13,123,382 6.5% License & Permit Fees:Business Licenses & Permits 173,396 176,853 171,140 174,900 176,700 3.2%Residential Building Permits 426,876 554,042 632,435 887,360 1,067,255 68.8%Commercial Building Permits 360,645 352,796 83,394 220,936 200,000 139.8% Sign Permits 37,445 36,397 38,000 39,000 40,000 5.3% Special Inspection Fees 4,644 3,110 4,500 3,400 4,000 -11.1%Grading Permit Fees 10,386 15,150 7,000 5,000 5,500 -21.4%Total License & Permit Fees 1,013,392 1,138,348 936,469 1,330,596 1,493,455 59.5% Federal Grants:CNA 120,466 119,801 122,500 127,965 127,500 4.1%DEA OT Reimbursement 26,489 31,601 30,000 25,000 25,000 -16.7%Miscellaneous Federal Grants 172,384 9,405 431,000 25,000 9,405 -97.8% HIDTA 112,905 137,934 130,700 161,000 156,763 19.9%HIDTA-DEA 85,851 62,155 70,000 90,700 90,700 29.6%GOHS 68,302 39,442 90,000 170,140 76,000 -15.6%Homeland Security - 80,538 99,800 87,527 73,920 -25.9%Joint Terrorism Task Force 9,976 3,470 9,000 16,900 17,202 91.1%Total Federal Grants 596,374 484,346 983,000 704,232 576,490 -41.4% State Grants: Safe Schools Grant 60,000 60,000 - 60,000 134,000 0.0% Misc State Grants 272,826 236,988 220,000 114,200 343,700 56.2%The 100 Club of Arizona - - 5,000 - - -100.0%RTA Reimbursements - 437,458 789,042 858,000 1,032,000 30.8%Total State Grants 332,826 734,446 1,014,042 1,032,200 1,509,700 48.9% State/County Shared:State Income 3,834,911 3,461,359 4,188,806 4,188,806 4,575,389 9.2%State Sales 3,024,857 3,204,612 3,429,349 3,429,349 3,543,661 3.3% Vehicle License Tax 1,549,821 1,479,094 1,556,962 1,556,962 1,540,117 -1.1%Total State/County Shared 8,409,589 8,145,065 9,175,117 9,175,117 9,659,167 5.3% Other Intergovernmental:PCLD Reimbursements 592,075 574,589 613,413 442,339 30,000 -95.1%Total Other Intergovernmental 592,075 574,589 613,413 442,339 30,000 -95.1% Charges for Services: Court Costs 171,523 173,438 200,000 180,000 200,000 0.0%Public Defender Fees 4,687 3,269 4,000 4,000 4,000 0.0%Recording Fees 64 - - - - 0.0%Zoning & Subdivision Fees 77,752 91,197 70,000 74,000 75,000 7.1%User Fees - Swimming Pool 156,290 112,832 160,000 130,000 271,500 69.7%User Fees - Electricity 55,201 32,549 55,000 40,000 40,000 -27.3%User Fees - Miscellaneous 153,343 171,904 80,000 165,000 165,000 106.3%Copy Services 3,772 2,430 2,500 2,500 2,500 0.0% Town Hall Usage Fees 3,172 5,904 3,000 3,000 3,000 0.0% General Government Other 2,074 970 1,000 1,000 1,000 0.0%Police Report Copying 27,820 16,921 2,900 5,600 5,500 89.7%Police Other 6,156 3,939 3,000 14,200 2,200 -26.7%Building Inspection Copying 6 10 - 5 - 0.0%Engineer Plan Review Fees 34,875 46,890 35,000 40,000 40,000 14.3%Grading Review Fees 904 296 1,000 1,000 1,200 20.0%Grading Inspection Fees 960 1,400 700 700 800 14.3% Fare Box - 49,977 34,765 58,000 54,000 55.3% Administrative Services - 321,000 321,000 321,000 321,000 0.0%Financial Services 135,538 135,588 135,591 135,591 136,637 0.8%Real Property Rental Income 69,500 65,604 83,600 83,600 83,600 0.0%Maps 172 85 - 58 - 0.0%Code Book Sales 152 415 - - - 0.0%Pawn Slips 1,920 3,198 2,500 2,800 2,500 0.0%Police Fingerprinting - 12,250 22,000 22,500 22,000 0.0%Concession Sales - - - - 12,000 0.0% Total Charges for Services 905,881 1,252,066 1,217,556 1,284,554 1,443,437 18.6% FY 2013Actual Revenue Schedule by Fund 2013-2014 Annual Budget Financial Overview67 FY 2011 FY 2012 FY 2014 %Major Revenue Accounts Actual Budget Projected Budget to BudgetFY 2013Actual Revenue Schedule by Fund Fines:Fines 195,993 200,672 190,000 180,000 190,000 0.0% Total Fines 195,993 200,672 190,000 180,000 190,000 0.0% Interest Income:Interest - Investments 29,305 159,184 89,000 62,275 62,275 -30.0%Total Interest Income 29,305 159,184 89,000 62,275 62,275 -30.0% Miscellaneous:Donations 15,000 995 - - - 0.0%Miscellaneous 34,394 4,093 4,000 24,217 4,000 0.0% Special Events 2,275 3,350 - 3,495 - 0.0%Insurance Recoveries 67,146 62,278 20,000 2,042 10,000 -50.0%In-Lieu Income 109,897 127,437 100,000 100,000 100,000 0.0%Sale of Assets 41,893 16,894 10,000 27,869 - -100.0%Total Miscellaneous 270,605 215,047 134,000 157,623 114,000 -14.9% TOTAL GENERAL FUND 23,921,715 25,085,772 26,680,592 26,892,781 28,201,906 5.7% Highway Fund Local Sales Tax: Construction Sales Tax 291,349 348,378 316,890 469,344 1,077,197 239.9%Total Local Sales Tax 291,349 348,378 316,890 469,344 1,077,197 239.9% License & Permit Fees:Road Permits 44,807 45,935 42,000 50,000 47,000 11.9%Floodplain Use Permits 1,110 1,579 1,000 1,110 1,000 0.0%Total License & Permit Fees 45,917 47,514 43,000 51,110 48,000 11.6% Charges for Services:Administrative Services - 15,000 229,493 229,493 129,493 -43.6%Total Charges for Services - 15,000 229,493 229,493 129,493 -43.6% State Grants:PAG Reimbursements 125,966 231,995 260,000 125,000 35,000 -86.5%RTA Reimbursements 7,551 28,479 - - - 0.0%Total State Grants 133,517 260,474 260,000 125,000 35,000 -86.5% State/County Shared:Highway User 2,693,145 2,418,605 2,480,005 2,480,005 2,500,000 0.8%Total State/County Shared 2,693,145 2,418,605 2,480,005 2,480,005 2,500,000 0.8% Interest Income:Interest - Investments 8,834 10,810 7,000 7,000 7,000 0.0%Total Interest Income 8,834 10,810 7,000 7,000 7,000 0.0% Miscellaneous:Miscellaneous 14,685 8,716 10,000 15,014 10,000 0.0%Insurance Recoveries 7,828 16,458 - 2,669 - 0.0%Total Miscellaneous 22,513 25,174 10,000 17,683 10,000 0.0% TOTAL HIGHWAY FUND 3,195,274 3,125,955 3,346,388 3,379,635 3,806,690 13.8% Seizures & Forfeitures Funds Interest Income:Interest - Investments 5,496 4,307 - 3,730 - 0.0%Total Interest Income 5,496 4,307 - 3,730 - 0.0% Miscellaneous: Forfeitures 323,688 645,858 425,000 85,000 425,000 0.0% Total Miscellaneous 323,688 645,858 425,000 85,000 425,000 0.0% TOTAL SEIZURES & FORFEITURES FUNDS 329,184 650,165 425,000 88,730 425,000 0.0% Bed Tax FundLocal Sales Tax:Local Sales Tax 219,939 794,718 782,283 782,283 789,000 0.9% 2013-2014 Annual Budget Financial Overview68 FY 2011 FY 2012 FY 2014 %Major Revenue Accounts Actual Budget Projected Budget to BudgetFY 2013Actual Revenue Schedule by Fund Total Local Sales Tax 219,939 794,718 782,283 782,283 789,000 0.9% Interest Income: Interest - Investments 2,228 7,550 5,700 3,975 3,975 -30.3% Total Interest Income 2,228 7,550 5,700 3,975 3,975 -30.3% TOTAL BED TAX FUND 222,168 802,268 787,983 786,258 792,975 0.6% Regional Transportation Authority (RTA) FundState Grants:RTA Reimbursements 1,256 - - - - 0.0%Total State Grants 1,256 - - - - 0.0% TOTAL RTA FUND 1,256 - - - - 0.0% Public Transportation FundFederal Grants:Miscellaneous Grants - - - - 0.0%Total Federal Grants - - - - - 0.0% State Grants:PAG Reimbursements 34,944 - - - 0.0%RTA Reimbursements 67,647 - - - 0.0% Total State Grants 102,591 - - - - 0.0% State/County Shared:LTAF - - - - 0.0%Total State/County Shared - - - - - 0.0% Charges for Services:Fare Box 50,254 - - - 0.0% Total Charges for Services 50,254 - - - - 0.0% Interest Income:Interest - Investments 147 - - - 0.0%Total Interest Income 147 - - - - 0.0% Miscellaneous:Miscellaneous 991 - - - 0.0%Sale of Assets - - - - 0.0% Total Miscellaneous 991 - - - - 0.0% TOTAL PUBLIC TRANSPORTATION FUND 153,983 - - - - 0.0% Fleet FundMiscellaneous:Insurance Recoveries - - - - - 0.0%Sale of Assets - - - - 20,000 0.0%Total Miscellaneous - - - - 20,000 0.0% Charges for Services:Fleet Services - 436,271 638,787 638,787 1,282,793 100.8%Total Charges for Services - 436,271 638,787 638,787 1,282,793 100.8% TOTAL FLEET FUND - 436,271 638,787 638,787 1,302,793 103.9% Benefit Self Insurance FundMiscellaneous:Self Insurance Premiums - Employer - - 1,824,194 1,749,071 1,900,000 4.2%Self Insurance Premiums - Employee - - 358,470 333,429 260,000 -27.5% COBRA Premiums - - - - 13,000 0.0%Retiree Premiums - - - - 15,000 0.0%UHC Wellness Program - - - - 20,000 0.0%Miscellaneous - - - - 1,000 0.0%Total Miscellaneous - - 2,182,664 2,082,500 2,209,000 1.2% 2013-2014 Annual Budget Financial Overview69 FY 2011 FY 2012 FY 2014 %Major Revenue Accounts Actual Budget Projected Budget to BudgetFY 2013Actual Revenue Schedule by Fund TOTAL BENEFIT SELF INSURANCE FUND - - 2,182,664 2,082,500 2,209,000 1.2% Impound Fee FundCharges for Services:Impound Fees 41,260 37,040 47,503 47,503 47,500 0.0%Total Charges for Services 41,260 37,040 47,503 47,503 47,500 0.0% TOTAL IMPOUND FEE FUND 41,260 37,040 47,503 47,503 47,500 0.0% Municipal Debt Service Fund Interest Income:Interest 347 82 - 20 - 0.0%Total Interest Income 347 82 - 20 - 0.0% Federal Grants:Miscellaneous Grants 81,811 84,527 83,784 83,784 70,677 -15.6%Total Federal Grants 81,811 84,527 83,784 83,784 70,677 -15.6% Miscellaneous: Miscellaneous - 203,287 100,000 100,000 83,000 -17.0%Total Miscellaneous - 203,287 100,000 100,000 83,000 -17.0% TOTAL MUNICIPAL DEBT SERVICE FUND 82,157 287,896 183,784 183,804 153,677 -16.4% Oracle Road Debt Service FundInterest Income:Special Assessments 141,543 128,661 117,578 117,578 105,868 -10.0%Penalties - 1,598 - - - 0.0% Total Interest Income 141,543 130,259 117,578 117,578 105,868 -10.0% Principal Repayments:Principal Repayments 224,267 235,768 250,000 250,000 260,000 4.0%Total Principal Repayments 224,267 235,768 250,000 250,000 260,000 4.0% TOTAL ORACLE RD DEBT SERVICE FUND 365,811 366,027 367,578 367,578 365,868 -0.5% Townwide Roadway Development Impact Fee FundFederal Grants: Miscellaneous Grants - - 699,000 - 500,000 -28.5% Total Federal Grants - - 699,000 - 500,000 -28.5% State Grants:PAG Reimbursements 4,457,079 6,394,443 4,657,000 4,657,000 1,700,000 -63.5%RTA Reimbursements 331,568 549,994 623,000 65,000 1,450,000 132.7%Total State Grants 4,788,647 6,944,437 5,280,000 4,722,000 3,150,000 -40.3% Impact Fees: Residential Development Impact Fees 83,509 114,043 355,151 347,940 749,606 111.1%Commercial Development Impact Fee 179,793 124,690 58,967 325,000 41,769 -29.2%Total Impact Fees 263,302 238,733 414,118 672,940 791,375 91.1% Interest Income:Interest - Investments 3,182 1,534 1,600 19,500 1,500 -6.3%Total Interest Income 3,182 1,534 1,600 19,500 1,500 -6.3% Miscellaneous: Miscellaneous 35,687 31,598 - - - 0.0%Total Miscellaneous 35,687 31,598 - - - 0.0% Charges for Services:Real Property Rental Income 18,000 18,000 18,000 18,000 18,000 0.0%Total Charges for Services 18,000 18,000 18,000 18,000 18,000 0.0% TOTAL DEVELOPMENT IMPACT FEE FUND 5,108,819 7,234,302 6,412,718 5,432,440 4,460,875 -30.4% 2013-2014 Annual Budget Financial Overview70 FY 2011 FY 2012 FY 2014 %Major Revenue Accounts Actual Budget Projected Budget to BudgetFY 2013Actual Revenue Schedule by Fund Parks & Recreation Development Impact Fee FundImpact Fees:Residential Development Impact Fees 117,584 99,542 92,001 110,000 201,297 118.8%Total Impact Fees 117,584 99,542 92,001 110,000 201,297 118.8% Interest Income: Interest - Investments 316 317 - 1,150 - 0.0% Total Interest Income 316 317 - 1,150 - 0.0% TOTAL PARKS DEV. IMPACT FEE FUND 117,901 99,859 92,001 111,150 201,297 118.8% Library Development Impact Fee FundImpact Fees:Residential Development Impact Fees 30,152 28,640 37,461 4,574 - -100.0%Total Impact Fees 30,152 28,640 37,461 4,574 - -100.0% Interest Income:Interest - Investments 81 89 - 32 - 0.0%Total Interest Income 81 89 - 32 - 0.0% TOTAL LIBRARY DEV. IMPACT FEE FUND 30,233 28,729 37,461 4,606 - -100.0% Police Development Impact Fee Fund Impact Fees:Residential Development Impact Fees 22,271 26,195 48,376 48,376 106,393 119.9%Commercial Development Impact Fee 5,790 4,423 1,464 13,000 999 -31.8%Total Impact Fees 28,061 30,618 49,840 61,376 107,392 115.5% Interest Income:Interest - Investments 69 80 - 700 - 0.0%Total Interest Income 69 80 - 700 - 0.0% TOTAL POLICE DEV. IMPACT FEE FUND 28,130 30,698 49,840 62,076 107,392 115.5% General Government Development Impact Fee Fund Impact Fees: Residential Development Impact Fees 16,529 11,395 - (3,115) - 0.0%Commercial Development Impact Fee 25,991 7,980 5,315 - 0.0%Total Impact Fees 42,520 19,375 - 2,200 - 0.0% Interest Income:Interest - Investments 92 105 - 1,050 - 0.0%Total Interest Income 92 105 - 1,050 - 0.0% TOTAL GEN. GOVT. IMPACT FEE FUND 42,612 19,480 - 3,250 - 0.0% Steam Pump Ranch Acquisition FundFederal Grants: Miscellaneous Federal Grants - - - - 0.0%Total Federal Grants - - - - - 0.0% Other Intergovernmental:Pima County Bond Proceeds 243,100 - - - 0.0%Total Other Intergovernmental 243,100 - - - - 0.0% TOTAL STEAM PUMP RANCH FUND 243,100 - - - - 0.0% 2013-2014 Annual Budget Financial Overview71 FY 2011 FY 2012 FY 2014 %Major Revenue Accounts Actual Budget Projected Budget to BudgetFY 2013Actual Revenue Schedule by Fund Water Utility FundWater Sales:Residential Water Sales 8,043,658 7,761,639 7,917,000 7,802,000 7,836,000 -1.0% Commercial Water Sales 921,825 954,472 947,000 954,000 960,000 1.4% Irrigation Water Sales 1,180,178 1,064,068 1,122,300 1,092,000 1,099,000 -2.1%Turf Related Water Sales 1,799,749 1,677,318 1,624,500 1,692,000 1,692,000 4.2%Construction Water Sales 92,257 120,830 96,000 152,000 160,000 66.7%Other 814 653 1,000 1,000 1,000 0.0%Total Water Sales 12,038,482 11,578,980 11,707,800 11,693,000 11,748,000 0.3% Charges for Services: Engineer Plan Review Fees 2,465 6,450 3,000 10,000 10,000 233.3% Construction Inspection Fees 6,963 2,712 1,500 7,000 7,000 366.7%Misc Service Revenue 13,749 17,318 10,000 10,000 10,000 0.0%Backflow-Install Permit Fee 3,900 2,795 2,600 1,500 2,000 -23.1%Served by Tucson 12,866 11,633 11,000 2,700 - -100.0%Served by Metro 9,190 7,820 7,000 2,100 - -100.0%Sewer Fees 169,676 170,185 170,000 190,000 205,000 20.6%Late Fees 86,785 85,897 85,000 85,000 85,000 0.0%NSF Fees 4,445 4,781 5,000 5,000 5,000 0.0% Rain Sensors 38 233 100 100 100 0.0%Meter Income 19,677 35,456 20,000 50,000 50,000 150.0%New Service Establish Fees 71,432 85,720 40,000 80,000 80,000 100.0%Reconnect Fees 46,783 37,685 30,000 39,000 35,000 16.7%Other 82,217 88,538 90,000 90,000 108,000 20.0%Total Charges for Services 530,186 557,223 475,200 572,400 597,100 25.7% Interest Income: Interest - Investments 22,389 125,912 75,000 66,250 66,250 -11.7% Total Interest Income 22,389 125,912 75,000 66,250 66,250 -11.7% Miscellaneous:Miscellaneous 5,728 934 - - - 0.0%Insurance Recoveries 5,386 142,211 - - - 0.0%Sale of Assets - - - 20,000 - 0.0%Total Miscellaneous 11,113 143,145 - 20,000 - 0.0% Other Financing Sources:WIFA Loan Proceeds - - - - 1,300,000 0.0%Total Other Financing Sources - - - - 1,300,000 0.0% TOTAL WATER UTILITY FUND 12,602,170 12,405,260 12,258,000 12,351,650 13,711,350 11.9% Alternative Water Resources Development Impact Fee FundCharges for Services:Groundwater Preservation Fee 2,096,093 2,315,277 2,456,000 2,542,000 2,550,000 3.8% Total Charges for Services 2,096,093 2,315,277 2,456,000 2,542,000 2,550,000 3.8% Impact Fees:Residential Impact Fees 293,894 475,726 174,370 896,760 896,760 414.3%Commercial Impact Fees 107,094 284,232 44,830 8,000 781,562 0.0%Total Impact Fees 400,988 759,958 219,200 904,760 1,678,322 665.7% Interest Income:Interest - Investments 2,320 1,229 800 900 1,000 25.0% Total Interest Income 2,320 1,229 800 900 1,000 25.0% TOTAL AWRDIF FUND 2,499,401 3,076,464 2,676,000 3,447,660 4,229,322 58.0% Potable Water System Development Impact Fee FundImpact Fees:Single Family Connections 154,026 237,455 89,845 462,060 462,060 414.3%Multi-Family Connections - - - 2,567 340,710 0.0%Commercial Connections 69,880 156,200 10,280 20,550 43,160 319.8%Irrigation Connections 10,780 34,880 10,900 25,160 58,860 440.0% Fire-Flow Connections 9,690 34,227 3,230 3,230 21,307 559.7%Total Impact Fees 244,376 462,762 114,255 513,567 926,097 710.6% 2013-2014 Annual Budget Financial Overview72 FY 2011 FY 2012 FY 2014 %Major Revenue Accounts Actual Budget Projected Budget to BudgetFY 2013Actual Revenue Schedule by Fund Interest Income:Interest - Investments 13,737 5,467 4,500 2,000 2,000 -55.6%Total Interest Income 13,737 5,467 4,500 2,000 2,000 -55.6% TOTAL PWSDIF FUND 258,113 468,229 118,755 515,567 928,097 681.5% Stormwater Utility FundFederal Grants:Miscellaneous Federal Grants 1,086,932 1,993 67,800 7,867 - -100.0%Total Federal Grants 1,086,932 1,993 67,800 7,867 - -100.0% State Grants:Miscellaneous State Grants 366,203 38,331 450,000 - 450,000 0.0% Total State Grants 366,203 38,331 450,000 - 450,000 0.0% Charges for Services:Late Fees 1,895 2,095 1,500 2,600 1,500 0.0%Stormwater Utility Fee 749,446 750,117 760,000 760,000 770,000 1.3%Total Charges for Services 751,341 752,212 761,500 762,600 771,500 1.3% Interest Income: Interest - Investments 376 321 500 4,800 500 0.0% Total Interest Income 376 321 500 4,800 500 0.0% Miscellaneous:Miscellaneous 925 131 20,000 20,140 - -100.0%Total Miscellaneous 925 131 20,000 20,140 - -100.0% TOTAL STORMWATER UTILITY FUND 2,205,776 792,988 1,299,800 795,407 1,222,000 -6.0% Solar Photovoltaic FundOther Financing Sources:Bond Proceeds 2,445,000 - - - - 0.0%Total Other Financing Sources 2,445,000 - - - - 0.0% Interest Income:Interest - Investments 152 - - - - 0.0%Total Interest Income 152 - - - - 0.0% TOTAL SOLAR PHOTOVOLTAIC FUND 2,445,152 - - - - 0.0% Aquatics Center Project FundOther Financing Sources:Bond Proceeds - 2,693,835 - - - 0.0%Total Other Financing Sources - 2,693,835 - - - 0.0% Miscellaneous Donations - 5,550 300,000 30,000 30,000 -90.0%Total Miscellaneous - 5,550 300,000 30,000 30,000 -90.0% TOTAL AQUATICS CENTER PROJECT FUND - 2,699,385 300,000 30,000 30,000 -90.0% Recreation In Lieu Fee FundCharges for Services:Recreation In Lieu Fees - 835 - - - 0.0%Total Charges for Services - 835 - - - 0.0% TOTAL REC IN LIEU FEE FUND - 835 - - - 0.0% TOTAL REVENUE - ALL FUNDS 53,894,212$ 57,647,623$ 57,904,854$ 57,221,382$ 62,195,742$ 7.4% Note: Does not include Interfund Transfers or Carry-Forward Balances 2013-2014 Annual Budget Financial Overview73 2013 – 2014 Annual Budget This Page Intentionally Left Blank 74 2013 – 2014 Annual Budget Financial Overview - 5,000 10,000 15,000 20,000 25,000 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 $ t h o u s a n d s Local Sales Tax Construction Other Revenue Sources Local Sales Tax Description Arizona cities and towns under state law have the authority to establish certain taxes for revenue purposes. The local sales tax, as a means of financing municipal services, has been increasing in importance. The Town of Oro Valley levies a 2% tax on sales collected within the town boundaries, with the exception of sales on utilities and construction activity, which are a 4% tax. The Town also levies an additional 6% tax on lodging. The sales tax is collected by the state and remitted to the Town on a weekly basis. Uses The 2% local sales tax and 4% utility sales tax are used for various general governmental purposes. The 6% tax on lodging is used to support economic development and tourism efforts, and 1.5% of the 4% tax on construction activity is used to fund maintenance on Town-wide roads. The remaining portion goes to various governmental purposes. Projections Local construction sales tax has decreased significantly from its peak in 2008. This is due to the recent economic recession and as the town approaches build-out. Commercial activity on the horizon consists mostly of infill projects. Considerable increases in residential activity, however, are expected in the near future, with several new apartment complexes currently under construction or in development. Single family residential building activity is also growing. With the opening of several new commercial centers a few years ago, the Town’s retail revenues have grown. In addition, the Town’s utility sales tax was increased from 2% to 4%, effective August, 2011. The following assumptions were used in compiling the projections:  retail and utility sales tax projected to grow at a rate of 3% per year with population growth and inflation  bed tax collections increase 2-3% per year with population growth and annexation of additional hotel  construction sales tax increases 40% in FY 2014, 6% in FY 2015, then begins to decline as the pace of residential building activity slows Local Sales Tax Construction Sales Tax Other 2008 8,983,504 7,619,524 1,082,621 2009 9,142,532 6,055,863 684,699 2010 9,409,890 2,772,542 1,297,719 2011 9,714,530 1,765,739 610,223 AC T U A L 2012 10,866,793 1,815,826 642,486 2013 11,217,472 2,050,000 508,000 2014 11,617,055 2,872,525 500,000 2015 11,920,593 3,050,000 500,000 2016 12,222,294 2,600,000 500,000 2017 12,552,946 2,380,000 500,000 PR O J E C T I O N 2018 12,882,503 2,150,000 500,000 75 2013 – 2014 Annual Budget Financial Overview - 500 1,000 1,500 2,000 2,500 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 $ t h o u s a n d s Residential Building Permits Commercial Building Permits Fines/ Licenses Revenue Sources Fines, Licenses and Permits Description Revenue from court fines comes from traffic violations and other fines paid for the violation of municipal ordinances. License revenue includes fees charged for obtaining a business license to operate a business within town boundaries. Permit fee revenue includes fees collected from building permits, both residential and commercial, zoning permits and a variety of other programs. Uses The revenue received from fines, licenses and permit fees is placed in the General Fund and used for various general governmental purposes. Projections Revenues received from fines and licenses are projected to remain relatively flat over the next 5 years. The growth over the last year in residential building permit revenue is expected to continue with the development and construction of several new apartment complexes. As the apartment construction is completed, and as the Town continues to approach build-out, residential activity will decrease. The following assumptions were used in compiling the projections:  150 to 200 single family residential permits issued per year through FY 2018  permits issued in FY 2014 and FY 2015 for new apartment complexes  an average of 50K square feet of miscellaneous commercial development will be added each year for the next 5 years  revenue from business licenses and fines remains relatively flat Residential Building Permits Commercial Building Permits Business Licenses, Fines & Other 2008 1,250,093 1,272,320 520,212 2009 566,583 684,269 542,705 2010 505,226 331,510 473,818 2011 426,876 360,645 467,780 AC T U A L 2012 554,042 352,796 479,696 2013 887,360 220,936 453,410 2014 1,067,255 200,000 464,200 2015 1,164,000 300,000 463,019 2016 864,000 350,000 464,856 2017 792,240 350,000 466,712 PR O J E C T I O N 2018 685,200 350,000 468,587 76 2013 – 2014 Annual Budget Financial Overview - 2,000 4,000 6,000 8,000 10,000 12,000 14,000 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 $t h o u s a n d s State Income Tax State Sales Tax Vehicle License Tax Revenue Sources State Shared Revenue Description Cities and towns in the state receive a portion of the revenues collected by the state of Arizona. These sources consist of the state sales tax, income tax, and vehicle license tax. Oro Valley receives its share of the state sales and income tax based on the relation of its population to the total population of all incorporated cities and towns in the state based on U.S. Census population figures. The vehicle license tax is distributed to Oro Valley based on the relation of its population to the total population of all incorporated cities and towns in Pima County. Uses State Shared Revenue is collected in the General Fund and used for various general governmental purposes. Projections State Shared Revenue is a significant source of funding and represents 34% of General Fund budgeted revenue for FY 2014. Revenues are expected to increase in FY 2014 for the second consecutive year, after experiencing several years of considerable declines during the recent economic recession. Continued, steady recovery is anticipated over the next few years. The following assumptions were used in compiling the projections:  5% increases per year are projected for FY 2014 through FY 2016  3% increases per year are projected for FY 2017 and FY 2018 State Income Tax State Sales Tax Vehicle License Tax 2008 5,544,763 3,621,016 1,738,874 2009 5,886,132 3,134,789 1,655,875 2010 5,086,954 2,891,386 1,484,125 2011 3,834,911 3,024,857 1,549,821 AC T U A L 2012 3,461,359 3,204,612 1,479,094 2013 4,188,806 3,429,349 1,556,962 2014 4,575,389 3,543,661 1,540,117 2015 4,799,583 3,742,106 1,555,518 2016 5,077,959 3,936,696 1,571,073 2017 5,230,298 4,054,796 1,586,784 PR O J E C T I O N 2018 5,387,207 4,176,440 1,602,652 77 2013 – 2014 Annual Budget Financial Overview - 500 1,000 1,500 2,000 2,500 3,000 3,500 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 $ t h o u s a n d s Revenue Sources Highway User Revenue (HURF) Description HURF revenues are primarily generated from the State collected gasoline tax. Cities and towns receive 27.5% of highway user revenues. One-half of the monies that Oro Valley receives is based on its population in relation to the population of all cities and towns in the state. The remaining half is allocated on the basis of “county of origin” of gasoline sales and the relation of Oro Valley’s population to the population of all cities and towns in Pima County. The intent of this distribution formula is to spread a portion of the money across the state solely on the basis of population while the remaining money flows to those areas with the highest gasoline sales. Uses There is a state constitutional restriction on the use of the highway user revenues which requires that these funds be used solely for street and highway purposes. The Town has a separate fund – Highway Fund – where this revenue is collected and distributed for such purposes. Projections HURF revenue collections are a major source of funding for roadway improvements and account for 66% of Highway Fund budgeted revenue for FY 2014. This revenue source is impacted by economic downturns, as well as actions taken by the State legislature to sweep these funds for state Department of Public Safety (DPS) purposes. The following assumptions were used in compiling the projections:  revenue is projected to increase 1% in FY 2014  revenue is projected to increase 3% in FY 2015  3-4% growth is projected each year for FY 2016 through FY 2018 HURF Revenue 2008 3,002,828 2009 2,855,668 2010 2,667,797 2011 2,693,145 AC T U A L 2012 2,418,605 2013 2,480,005 2014 2,500,000 2015 2,580,000 2016 2,675,460 2017 2,771,777 PR O J E C T I O N 2018 2,877,104 78 2013 – 2014 Annual Budget Financial Overview - 500 1,000 1,500 2,000 2,500 3,000 3,500 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 $ t h o u s a n d s Revenue Sources Charges for Services Description Charges for Services are fees charged for specific services provided by the Town. They include recreation user fees, development services fees, fees collected for stormwater collection, various water fees and fares received from transit services, to name a few. With the exception of Development Services fees and certain General Services fees, the anticipated revenue generated from charges for services is tied to population and could be expected to increase or decrease as the population changes. Over the past few years, these revenues have experienced slight declines due to the recent economic recession. Fees for development services are tied to development activity and will increase/decrease accordingly based on development growth within the town. Projections The increase in FY 2012 is due to the implementation of administrative services charges, which are collected from the Town’s Enterprise Funds to support General Fund operations. Total revenue from the charges for service category is projected overall to remain essentially flat through FY 2018. The following assumptions were used in compiling the projections:  revenue generated from commercial activity remains relatively flat through FY 2018  recreation fee revenue increases 42% in FY 2014, due to program revenues and a full year’s collections of revenues from the newly expanded aquatics facility, then remains relatively flat thereafter  transit farebox and stormwater utility fee revenues increase slightly each year, as town population increases General Services Development Services Recreation Fees Transit Water Stormwater 2008 503,675 197,862 371,153 57,600 620,169 357,602 2009 556,435 175,637 382,920 55,194 617,857 734,599 2010 478,473 161,975 376,400 51,817 525,227 744,944 2011 485,485 114,821 364,834 50,254 530,186 751,341 AC T U A L 2012 799,551 140,293 317,285 49,977 557,223 752,212 2013 841,294 115,763 335,000 58,000 572,400 762,600 2014 849,437 117,000 476,500 54,000 597,100 771,500 2015 849,437 117,000 476,500 55,080 597,100 778,700 2016 849,437 117,000 476,500 56,182 597,100 786,477 2017 849,437 117,000 476,500 57,305 597,100 794,332 PR O J E C T I O N 2018 849,437 117,000 476,500 58,451 597,100 802,265 79 2013 – 2014 Annual Budget Financial Overview - 2,000 4,000 6,000 8,000 10,000 12,000 14,000 16,000 18,000 20,000 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 $ t h o u s a n d s Water Sales Groundwater Preservation Fee Revenue Sources Water Revenue Description The Town’s water utility fund is a self-sustaining fund with revenue generated from water sales, service fees and miscellaneous charges. Annually, the Oro Valley Water Utility Commission reviews and develops recommendations for water revenue requirements, water rates and fee structures. Uses The revenue collected from water sales is used for personnel, operations and maintenance, improvements to existing systems and debt service. Revenue collected from the groundwater preservation fee (GPF) is used for renewable water capital infrastructure costs and related debt service. Projections Revenue projections relating to water sales and preservation fees are based on growth of the population as well as proposed rate increases. The following assumptions were used in compiling the projections:  growth is estimated at 200 new connections annually through FY 2018  modest water rate increases over the next five years  no groundwater preservation fee increases over the next five years  average monthly water use remains at 8,000 gallons Water Sales Groundwater Preservation Fee 2008 11,686,598 1,092,778 2009 11,434,786 1,323,549 2010 12,071,030 1,769,142 2011 12,038,482 2,096,093 AC T U A L 2012 11,578,980 2,315,277 2013 11,693,000 2,542,000 2014 11,748,000 2,550,000 2015 11,903,000 2,576,934 2016 12,173,000 2,580,095 2017 12,493,000 2,583,260 PR O J E C T I O N 2018 12,893,000 2,585,840 Note: Projections and assumptions used were for financial modeling purposes as related to proposed changes in water rates and fees to be reviewed and studied by Council at a future date. The actual rates and fees adopted and implemented may differ from budgeted projections. 80 2013 – 2014 Annual Budget Financial Overview - 500 1,000 1,500 2,000 2,500 3,000 3,500 4,000 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 $th o u s a n d s Residential Commercial Revenue Sources Development Impact Fees Description Development Impact Fees are fees assessed by the Town on new development for the purpose of financing infrastructure ultimately needed to support a growing community. Recent state legislation has restricted the types of impact fees collected with increased limitations placed on their use. Commercial impact fees are assessed to support roadways, water facilities and police; residential impact fees are assessed to support roadways, water facilities, police, and parks & recreation facilities. Uses As mandated by state law, impact fee revenue can only be used to support new projects and expansion- related capital infrastructure. Projections As the Town approaches build-out, residential and commercial construction activity will continue to decrease. The following assumptions were used in compiling the projections:  150 to 200 single family residential (SFR) permits will be issued per year through FY 2018; FY 2014 include residential fees from new apartment complexes  commercial fees tie to anticipated development activity within the town Residential Fees Commercial Fees 2008 2,633,328 715,612 2009 1,619,926 1,221,918 2010 1,055,038 298,656 2011 717,965 409,018 AC T U A L 2012 992,996 646,632 2013 1,869,162 400,255 2014 2,756,826 947,657 2015 2,056,800 946,097 2016 1,956,800 946,097 2017 1,751,120 946,097 PR O J E C T I O N 2018 1,667,600 946,097 81 2013 – 2014 Annual Budget This Page Intentionally Left Blank 82 2013 – 2014 Annual Budget Town of Oro Valley 83 2013 – 2014 Annual Budget This Page Intentionally Left Blank 84 2013 – 2014 Annual Budget Financial Overview Expenditure Summary The expenditure budget for FY 2013/14 totals $60,257,016 and represents a 7.3% decrease over the prior fiscal year budgeted expenditures. The budget includes $51.2 million to support daily operations and services and $9.1 million in capital projects. At the onset of the budget planning phase, all departments were instructed to hold operating costs flat wherever feasible while keeping service levels whole. Significant cost savings have been achieved over the past four fiscal years via measures such as: consolidating departments; completing an early payoff of debt; eliminating vacant positions; and transferring library operations to the Pima County Library District. As a result of these strategies and an improving local and state economy, the Town has been able to add capacity in both the personnel and operations and maintenance categories for FY 13/14. A description of the changes in expenditure categories from budget year to budget year can be found on the following page. Please reference the Personnel section of the budget document for further explanations on personnel changes. The FY 2013/14 capital budget addresses several areas of critical need that were put on hold during the recent economic recession. Budgeted capital includes fleet and technology replacements, improvements to parks and public safety facilities, roadway expansions and improvements, as well as stormwater and water infrastructure improvements. Please reference the Capital Improvement Plan (CIP) section of the budget document for further details on capital improvement projects. FY 2013/14 Budgeted Uses Personnel 42% Debt Service 11%Capital 17% O&M 30% 85 2013 – 2014 Annual Budget Financial Overview Expenditure Summary FY 2012 FY 2013/14 Variance Actual Budget Projected Budget to Budget % Personnel 23,863,037 24,855,460 24,479,784 25,099,764 244,304 1.0% O&M 11,119,323 16,339,099 15,365,748 18,148,045 1,808,946 11.1% Capital 11,718,954 17,523,613 14,814,607 10,258,790 (7,264,823) -41.5% Debt Service 8,716,009 6,288,559 6,596,828 6,750,417 461,858 7.3% Total Expenditures 55,417,323$ 65,006,731$ 61,256,967$ 60,257,016$ (4,749,715)$ -7.3% Does not include depreciation, amortization, interfund transfers or contingency amounts FY 2012/13 A brief description of the changes in expenditure categories from budget year to budget year is as follows: Personnel $244K  $835K decrease due to position eliminations  $567K increase for step and merit increases  $249K increase due to new positions  $166k increase due to increased pension costs  $50K increase due to position reclasses  $47K increase due to increased workers compensation costs O&M $1.8M  General Fund O&M increased $1.5M (28%) due to the following: o $170K increase in contract personnel services for recreation programs and an update of the Town’s General Plan o $218K increase in outside professional services for contract attorney services (in place of staffed position), various surveys and studies and an update of the Town’s General Plan o $499K increase for vehicle reserve and replacement charges from the Fleet Fund o $49K increase in retail sales tax rebates due to growth in retail sales o $74K increase in travel and training o $170K increase to address information technology and software maintenance needs o $60K increase in insurance costs o $105K increase in ongoing fleet maintenance charges from the Fleet Fund  Highway Fund O&M increased $100K (15%) due to the following: o $45K increase for vehicle replacement charges from the Fleet Fund o $50K increase for contracted roadway personnel and outside professional services costs  Fleet Fund O&M increased $100K (17%) due to vehicle repair and maintenance costs  Water Utility Fund O&M increased $78K (1%) due primarily to an increase in Central Arizona Project (CAP) water delivery charges Capital $(7.3M)  $2.8M decrease in roadway design & construction, due to completion of a large project  $5.2M decrease due to completion of the expanded aquatics facility  $530K decrease in Water Utility existing system improvements  $130K decrease in projects funded with recreation in lieu fees  $400K decrease in vehicles funded with grants and impact fees  $110K decrease in Stormwater Utility capital outlay  $690K increase in Water Utility reclaimed and CAP projects  $483K budgeted for vehicle replacement  $350K budgeted for police evidence facility  $350K budgeted for replacement of development permitting and phone systems Debt Service $462K  $183K increase in principal and interest payments on outstanding excise tax and Clean Renewable Energy Bonds  $279K increase in principal and interest payments on Water Utility bonds 86 2013 – 2014 Annual Budget Financial Overview Expenditure Summary Capital Improvement Program The Capital Improvement Program (CIP) is a comprehensive, fifteen-year plan of capital projects that identifies priorities, methods of financing, costs, and associated revenues. It includes a one-year recommendation for the Town’s capital budget. The CIP is one of the mechanisms that implement the Town’s General Plan. It allocates funds to programs specified in the General Plan, uses implementation of the General Plan in the project evaluation criteria, and its evaluation criteria are based on the goals established in the General Plan. The FY 2013/14 adopted budget includes $9.1 million in capital improvement projects, funded with a variety of sources. Projects to be completed include technology, public safety and parks improvements, roadway improvements, stormwater drainage projects and water utility system expansions and improvements. Further information and project descriptions can be found in the Capital Improvement section of the budget document. FY 2013/14 Capital Improvement Projects = $9.1M Buildings & Improvements $460,000 Street Maintenance $1,000,000 Equipment $540,000 Road Expansion $3,380,000 Stormwater Infrastructure $550,000 Water Infrastructure $3,125,000 87 2013 – 2014 Annual Budget This Page Intentionally Left Blank 88 Major Expenditure Accounts FY 2011 FY 2012 FY 2014 %Budget Projected Budget to budget General Fund Clerk 375,742 408,628 322,779 321,989 345,118 6.9% Council 194,897 198,857 224,618 224,618 225,853 0.5% Development & Infrastructure Services 2,748,774 2,934,686 3,803,751 3,349,021 4,031,561 6.0% Finance 722,897 708,721 744,111 726,233 709,242 -4.7% General Administration 2,292,534 1,716,537 1,859,094 1,831,394 2,037,730 9.6% Human Resources 470,174 466,611 496,156 464,107 523,821 5.6% Information Technology 1,073,741 1,182,391 1,213,633 1,213,633 1,482,173 22.1% Legal 738,969 767,988 816,559 768,813 804,344 -1.5% Magistrate Court 733,544 691,870 757,629 726,527 761,430 0.5% Town Manager's Office 906,583 693,924 728,646 638,569 700,989 -3.8% Parks and Recreation 3,017,942 3,006,722 2,630,112 2,387,353 2,536,955 -3.5% Police 11,447,300 11,980,950 12,667,903 12,599,309 14,223,297 12.3%TOTAL GENERAL FUND 24,723,096 24,757,885 26,264,992 25,251,566 28,382,513 8.1% Special Revenue Funds Highway User Revenue Fund 3,598,066 3,757,844 3,669,829 3,630,438 3,720,981 1.4% Public Transportation Fund 390,833 - - - - 0.0% Bed Tax Fund 371,007 201,616 471,662 386,710 501,762 6.4% Impound Fee Fund 41,260 37,040 47,503 47,503 24,414 -48.6% Seizures & Forfeitures Funds 175,268 218,175 192,616 534,344 207,232 7.6%TOTAL SPECIAL REVENUE FUNDS 4,576,434 4,214,675 4,381,610 4,598,995 4,454,389 1.7% Debt Service Funds Municipal Debt Service Fund 499,304 624,247 654,080 703,861 836,642 27.9% Oracle Road Improvement District Fund 372,548 367,423 370,298 370,298 368,588 -0.5%TOTAL DEBT SERVICE FUNDS 871,851 991,670 1,024,378 1,074,159 1,205,230 17.7% Capital Project Funds Steam Pump Ranch 402,953 - - - - 0.0% Regional Transportation Authority Fund 1,256 - - - - 0.0% Solar Photovoltaic Fund 2,443,635 - - - - 0.0% Recreation-In-Lieu Fee Fund - 30,245 130,188 139,477 - -100.0% Aquatics Center Project Fund - 77,052 4,810,000 4,600,218 - -100.0% Parks Impact Fee Fund - 309,901 400,000 90,100 - -100.0% Police Impact Fee Fund - - 89,066 82,646 - -100.0% General Government Impact Fee - - 25,000 123,243 - -100.0% Capital Asset Replacement Fund 321,583 - - - - 0.0% Alternative Water Resource Dev. Impact Fee 1,165,807 2,472,130 2,099,631 2,312,919 2,506,098 19.4% Potable Water Systems Dev. Impact Fee 3,181,919 1,135,791 632,744 722,266 743,576 17.5% Townwide Roadway Dev. Impact Fees 4,884,630 7,501,852 6,154,000 4,760,000 3,380,000 -45.1%TOTAL CAPITAL PROJECT FUNDS 12,401,783 11,526,971 14,340,629 12,830,869 6,629,674 -53.8% Enterprise Funds Water Utility 10,224,005 12,834,486 14,608,222 14,163,940 14,819,871 1.4% Stormwater Utility 1,818,740 655,365 1,565,449 941,151 1,334,376 -14.8%TOTAL ENTERPRISE FUNDS 12,042,746 13,489,851 16,173,671 15,105,091 16,154,247 -0.1% Internal Service FundsFleet Fund 874,968 436,271 638,787 638,787 1,221,963 91.3%Benefit Self Insurance - - 2,182,664 1,757,500 2,209,000 1.2%TOTAL INTERNAL SERVICE FUNDS 874,968 436,271 2,821,451 2,396,287 3,430,963 21.6% TOTAL EXPENDITURES - ALL FUNDS 55,490,878$ 55,417,323$ 65,006,731$ 61,256,967$ 60,257,016$ -7.3% Note: Does not include depreciation, amortization, interfund transfers or contingency amounts FY 2013Actual Expenditure Schedule by Fund 2013-2014 Annual Budget Financial Overview89 2013 – 2014 Annual Budget This Page Intentionally Left Blank 90 Department/Program FTE General Fund Special Revenue Funds Debt Service Funds Capital Project Funds Enterprise Funds Internal Service Funds Total Clerk 4.54 345,118 345,118 4.54 345,118 - - - - - 345,118 Council 7.00 225,853 225,853 7.00 225,853 - - - - - 225,853 Development & Infrastructure Svcs. Administration 3.75 216,241 657,860 874,101 Planning 7.30 966,811 966,811 Permitting 8.96 679,433 679,433 Inspection and Compliance 8.00 607,969 607,969 Transportation Engineering 5.68 1,547,739 1,547,739 Traffic Engineering 4.65 516,327 516,327 Pavement Management 1.20 111,022 111,022 Street Maintenance 8.80 888,033 888,033 Facilities Maintenance 2.15 317,532 317,532 Fleet 1.15 1,221,963 1,221,963 Stormwater Utility 4.10 1,334,376 1,334,376 Public Transportation 19.96 1,243,575 - 1,243,575 75.70 4,031,561 3,720,981 - - 1,334,376 1,221,963 10,308,881 Finance 7.00 709,242 709,242 7.00 709,242 - - - - - 709,242 General Administration 2,037,730 2,209,000 4,246,730 - 2,037,730 - - - - 2,209,000 4,246,730 Human Resources 5.00 523,821 523,821 5.00 523,821 - - - - - 523,821 Information TechnologyAdministration 1.00 600,184 600,184 GIS Services 1.50 132,091 132,091 Technical Services 2.00 330,354 330,354 Business Application & Development 2.00 180,594 180,594 Telecommunications 238,950 238,950 6.50 1,482,173 - - - - - 1,482,173 Legal Civil 2.00 372,398 372,398 Prosecution 4.00 431,946 431,946 6.00 804,344 - - - - - 804,344 Magistrate Court 8.00 761,430 761,430 8.00 761,430 - - - - - 761,430 Town Manager's OfficeTown Management 3.88 397,353 397,353 Communications & Constituent Svcs.3.50 303,636 303,636 Economic Development 3.00 501,762 501,762 10.38 700,989 501,762 - - - - 1,202,751 Parks and RecreationAdministration 3.00 324,058 324,058 Parks 8.58 1,025,172 1,025,172 Recreation 3.70 267,419 267,419 Trails 1.00 77,892 77,892 Aquatics 12.96 697,441 697,441 Cultural Resources 0.20 144,973 144,973 29.44 2,536,955 - - - - - 2,536,955 PoliceAdministration 4.00 1,101,278 1,101,278 Support Services 61.21 6,584,108 24,414 6,608,522 Field Services 66.92 6,232,928 207,232 6,440,160 Professional Development & Training 1.00 190,750 190,750 Professional Standards 1.00 114,233 114,233 134.13 14,223,297 231,646 - - - - 14,454,943 This table represents a summary of the adopted FY 2013 - 2014 budget and is structured around major program areas within departments which represent services and operations viable to the Town and to which resources are allocated on a fiscal year basis. Footnotes are provided to delineate the specific fund(s) that support(s) each program. The table also includes funding sources and full-time equivalent employees (FTE) for each program. Further information on a specific program can be found in the Program Budgets Section of the budget document. Expenditures by Program (A) (A) (A) (A) (A) (B) (C) (D) (E) (F) (G) 2013-2014 Annual Budget Financial Overview91 Expenditures by Program Department/Program FTE General Fund Special Revenue Funds Debt Service Funds Capital Project Funds Enterprise Funds Internal Service Funds Total Water UtilityAdministration 15.00 9,411,681 9,411,681 Engineering & Planning 6.00 1,694,275 1,694,275 Production 8.00 2,874,406 2,874,406 Distribution 8.00 839,509 839,509 Alternative Water Resources 2,506,098 2,506,098 Potable Water Systems 743,576 743,576 37.00 - - - 3,249,674 14,819,871 - 18,069,545 Debt Service 1,205,230 1,205,230 - - - 1,205,230 - - - 1,205,230 Roadway Improvements 3,380,000 3,380,000 - - - - 3,380,000 - - 3,380,000 FY 2013/14 Adopted Budget 330.69 28,382,513 4,454,389 1,205,230 6,629,674 16,154,247 3,430,963 60,257,016 Note: Does not include depreciation, amortization, interfund transfers or contingency amounts (A) Highway Fund(B) Fleet Fund(C) Stormwater Utility Fund(D) Benefit Self Insurance Fund (E) Bed Tax Fund (F) Impound Fee Fund(G) Seizure Funds(H) Water Utility Fund(I)Alternative Water Resources Dev Impact Fee Fund(J) Potable Water System Dev Impact Fee Fund(K) Municipal Debt Service Fund and Oracle Road Imp District Fund (L) Roadway Dev Impact Fee Fund (H) (H) (H)(H) (I)(J) (K) (L) 2013-2014 Annual Budget Financial Overview92 2013 – 2014 Annual Budget Town of Oro Valley 93 2013 – 2014 Annual Budget This Page Intentionally Left Blank 94 2013 – 2014 Annual Budget Financial Overview Personnel Summary Personnel and Employee Compensation Personnel service represents 49% of the total operating budget. As it is a significant portion of the budget, employee compensation is heavily scrutinized. Due to recent economic and financial conditions, as well as escalating benefit costs, Town management continues to seek ways to somewhat lessen this rising cost. Every position that becomes vacant is scrutinized to determine whether the position is mission-critical and whether it needs to be refilled. Positions continue to be left unfilled or have been eliminated as vacancies occur. These efforts have resulted in a FY 13/14 personnel budget that is $1.1 million or 4% less than FY 2008/09, with nearly 57 fewer FTEs funded. For the first time in five years, the Town’s budget includes funding for employee merit and step increases. Based on the financial scenario laid out for the next five years, the Town’s recurring revenues will be analyzed each year to determine the feasibility and affordability of providing some level of employee pay increases. The following table summarizes the changes in staffing levels for the new fiscal year. The increase in Police is for a grant-funded school resource officer and three part-time reserve officers. The increase in DIS is due largely to expanded transit service in partnership with the Regional Transportation Authority. The decrease in Parks and Recreation is a result of the transfer of library operations to Pima County. Refer to the Personnel Schedule document for a detailed listing of positions by department and/or program. FY 2012/13 Budget FY 2013/14 Budget +/- Police 131.69 134.13 2.44 Development and Infrastructure Services (DIS) 73.38 75.70 2.32 Parks and Recreation 46.68 29.44 (17.24) Water Utility 36.00 37.00 1.00 Magistrate Court 8.00 8.00 - Administration 48.04 46.42 (1.62) Total Positions 343.79 330.69 (13.10) 95 2013 – 2014 Annual Budget Financial Overview 2009 2010 2011 2012 2013 2014 8.72 8.15 7.88 7.85 7.647.69 - 1.00 2.00 3.00 4.00 5.00 6.00 7.00 8.00 9.00 10.00 FTEs per Thousand Town Population Personnel Summary FY 2013/14 Personnel Development & Infrastructure Services 23% Police 41% Administration 14% Water Utility 11% Parks & Recreation 9% Magistrate Court 2% Health care premiums for FY 2013/14 remain flat to FY 2012/13, while dental premiums are increasing 7%. The Town is absorbing the dental premium increase to employees. The contribution rates for the Town’s two major retirement plans experienced .4-1.6% increases for FY 2013/14. The table below illustrates the changes to employee benefit rates over the last several years. Employer Matching Rates FY 10/11 FY 11/12 FY 12/13 FY 13/14 AZ State Retirement System (ASRS) 9.85% 10.75% 11.15% 11.54% Public Safety Personnel Retirement System (PSPRS) 15.63% 16.31% 18.72% 20.33% Correction Officers Retirement Plan (CORP) 9.68% 9.13% 11.28% 16.29% Health Care Premiums (per year)* $3,849 $3,849 $3,849 $3,849 Dental Premiums (per year)** $233 $233 $240 $257 * single-employee HMO coverage ** single-employee base plan coverage Looking at an employee per capita trend, full-time equivalent positions (FTEs) per capita began to decline during the recent economic recession. FTEs per capita are expected to remain roughly flat, as the town’s population and development growth have slowed. 96 FY 2011 FY 2012 FY 2014 +/- Budget Projected Budget to Budget General FundClerk 4.63 4.44 4.54 4.54 4.54 - Council 7.00 7.00 7.00 7.00 7.00 - Development & Infrastructure Svcs.29.35 42.29 42.09 46.89 47.37 5.28 Finance 7.00 7.00 7.00 7.00 7.00 - Human Resources 5.00 5.00 5.00 5.00 5.00 - Information Technology 8.00 6.50 6.50 6.50 6.50 - Legal 8.00 8.00 8.00 6.00 6.00 (2.00) Magistrate Court 9.00 8.00 8.00 8.00 8.00 - Town Manager's Office 8.10 7.10 7.00 7.00 7.38 0.38 Parks and Recreation 42.31 40.47 46.68 28.61 29.44 (17.24) Police 123.73 127.21 127.69 127.69 130.63 2.94 General Fund Personnel 252.12 263.01 269.50 254.23 258.86 (10.64) Special Revenue FundsHighway Fund 28.30 26.24 26.04 25.08 23.08 (2.96) Bed Tax Fund 0.40 - 3.00 3.00 3.00 - Impound Fee Fund 1.00 1.00 1.00 1.00 0.50 (0.50) Seizure Funds - - 3.00 3.00 3.00 - Public Transportation Fund 9.61 - - - - - Special Revenue Funds Personnel 39.31 27.24 33.04 32.08 29.58 (3.46) Enterprise FundsWater Utility 34.00 36.00 36.00 36.00 37.00 1.00 Stormwater Utility 3.50 3.50 4.10 4.10 4.10 - Enterprise Funds Personnel 37.50 39.50 40.10 40.10 41.10 1.00 Internal Service Funds Fleet Fund 2.35 1.35 1.15 1.15 1.15 - Internal Service Funds Personnel 2.35 1.35 1.15 1.15 1.15 - Total Town Personnel 331.28 331.10 343.79 327.56 330.69 (13.10) FY 2013 Actual Personnel Summary by Fund 2013-2014 Annual Budget Financial Overview97 2013 – 2014 Annual Budget This Page Intentionally Left Blank 98 FY 2011 FY 2012 FY 2014 +/-Budget Projected Budget to Budget CouncilMayor 1.00 1.00 1.00 1.00 1.00 - Council Member 6.00 6.00 6.00 6.00 6.00 - Total Council 7.00 7.00 7.00 7.00 7.00 - - 7 ClerkTown Clerk 1.00 1.00 1.00 1.00 1.00 - Deputy Town Clerk 1.00 1.00 1.00 1.00 1.00 - Assistant to the Town Clerk 1.00 1.00 1.00 1.00 1.00 - Licensing & Customer Service Clerk 1.00 - - - - - Office Assistant 0.63 1.44 1.44 1.44 1.44 - Communications Intern - - 0.10 0.10 0.10 - Total Clerk 4.63 4.44 4.54 4.54 4.54 - 3 4 Development & Infrastructure Svcs. (DIS)Director, Dev. & Infrastructure Svcs.1.00 1.00 1.00 1.00 1.00 - Town Engineer 1.00 1.00 1.00 1.00 1.00 - Division Manager, Permitting 1.00 1.00 1.00 1.00 1.00 - Division Manager, Planning 1.00 1.00 1.00 1.00 1.00 - Div Mgr, Inspection & Compliance/Bldg Official 1.00 1.00 1.00 1.00 1.00 - Engineering Division Manager 1.00 1.00 1.00 1.00 1.00 - Operations Division Manager 1.00 1.00 1.00 1.00 1.00 - Conservation & Sustainability Administrator 1.00 1.00 1.00 1.00 1.00 - Senior Civil Engineer 2.00 1.00 1.00 1.00 1.00 - Principal Planner 1.00 1.00 1.00 1.00 1.00 - Civil Engineer 3.00 3.00 3.00 3.00 3.00 - Stormwater Engineer 1.00 1.00 1.00 1.00 1.00 - Transit Services Administrator 1.00 1.00 1.00 1.00 1.00 - Senior Planner 3.00 2.00 2.00 2.00 2.00 - Planner - 1.00 1.00 1.00 1.00 - Senior Planning Technician - - - - 1.00 1.00 GIS Analyst - 0.50 0.50 0.50 0.50 - Civil Engineering Designer 2.00 1.00 1.00 1.00 1.00 - Engineering Design Reviewer 1.00 1.00 1.00 1.00 1.00 - Special Projects Coordinator 1.00 - - - - - Plans Examiner II 2.00 2.00 2.00 2.00 2.00 - Building Inspector II 4.00 4.00 4.00 4.00 4.00 - Plans Examiner I 1.00 1.00 1.00 1.00 1.00 - Senior Civil Engineering Tech 1.00 1.00 1.00 1.00 2.00 1.00 Streets & Drainage Senior Crew Leader 1.00 1.00 1.00 1.00 1.00 - Senior Traffic Technician 1.00 1.00 1.00 1.00 1.00 - Code Compliance Specialist 1.00 1.00 1.00 1.00 1.00 - Construction Inspector 1.00 1.00 1.00 1.00 - (1.00) Administrative Coordinator 1.00 1.00 1.00 1.00 1.00 - Civil Engineering Technician 1.00 1.00 1.00 1.00 1.00 - Facilities Maintenance Crew Leader 1.00 1.00 1.00 1.00 1.00 - Fleet Maintenance Mechanic III 1.00 1.00 1.00 1.00 1.00 - Pavement Management Specialist 1.00 1.00 1.00 1.00 - (1.00) Traffic Signs/Markings Crew Leader 1.00 1.00 1.00 1.00 1.00 - Streets & Drainage Crew Leader 2.00 2.00 2.00 2.00 2.00 - Traffic Technician 1.00 1.00 1.00 1.00 1.00 - Zoning Plans Examiner 1.00 1.00 1.00 1.00 - (1.00) Zoning Technician 1.00 1.00 1.00 1.00 1.00 - Development Coordinator 1.00 - - - - - Facilities Maintenance Technician 1.00 1.00 1.00 1.00 1.00 - Fleet Maintenance Mechanic II 1.00 - - - - - Heavy Equipment Operator III 1.00 1.00 1.00 - 2.00 1.00 Heavy Equipment Operator II 4.00 4.00 4.00 5.00 3.00 (1.00) Heavy Equipment Operator I 2.00 0.96 0.96 - - (0.96) Senior Traffic Signs/Markings Worker 1.00 1.00 1.00 1.00 - (1.00) Building Permit Technician 2.00 2.00 2.00 2.00 2.00 - Actual FY 2013 Full-time employees:Part-time employees: Full-time employees:Part-time employees: Personnel Schedule 2013-2014 Annual Budget 99 FY 2011 FY 2012 FY 2014 +/-Budget Projected Budget to BudgetActualFY 2013 Personnel Schedule Senior Office Specialist - - - - 1.00 1.00 Office Specialist/Ombudsperson 1.00 - - - - - Office Specialist 1.00 1.96 1.96 1.96 2.44 0.48 Traffic Signs/Markings Worker 1.00 1.00 1.00 1.00 1.00 - Lead Transit Driver 1.00 1.00 1.00 1.00 1.00 - Transit Dispatcher 1.00 2.11 2.11 2.11 2.11 - Senior Office Assistant 2.00 2.00 2.00 2.00 1.00 (1.00) Office Assistant - 0.96 0.96 0.96 0.96 - Transit Driver 7.11 10.89 10.89 15.39 15.39 4.50 Intern - - - 0.30 0.30 0.30 Total DIS 73.11 73.38 73.38 77.22 75.70 2.32 60 36 FinanceFinance Director 1.00 1.00 1.00 1.00 1.00 - Procurement Administrator 1.00 1.00 1.00 1.00 1.00 - Accounting Supervisor 1.00 1.00 1.00 1.00 1.00 - Management & Budget Analyst 1.00 1.00 1.00 1.00 1.00 - Senior Accountant 1.00 1.00 1.00 1.00 1.00 - Finance Analyst 1.00 1.00 1.00 - - (1.00) Payroll Specialist - - - 1.00 1.00 1.00 Accounting Clerk 1.00 1.00 1.00 1.00 1.00 - Total Finance 7.00 7.00 7.00 7.00 7.00 - 7 - Human ResourcesHuman Resource Director 1.00 1.00 1.00 1.00 1.00 - Safety & Risk Manager 1.00 1.00 1.00 1.00 1.00 - Employee and Org. Dev. Analyst 1.00 1.00 1.00 1.00 1.00 - Human Resource Specialist 2.00 2.00 2.00 2.00 2.00 - Total Human Resources 5.00 5.00 5.00 5.00 5.00 - 5 - Information TechnologyIT Director 1.00 1.00 1.00 1.00 1.00 - Network Administrator 1.00 1.00 1.00 1.00 1.00 - Network Manager 1.00 - - - - - Systems Analyst 1.00 1.00 1.00 1.00 1.00 - Data Base Analyst 1.00 1.00 1.00 1.00 1.00 - GIS Analyst 2.00 1.50 1.50 1.50 1.50 - IT Technician 1.00 1.00 1.00 1.00 1.00 - Total Information Technology 8.00 6.50 6.50 6.50 6.50 - 7 - LegalTown Attorney 1.00 1.00 1.00 - - (1.00) *Legal Services Director - - - - 1.00 1.00 **Town Prosecutor 1.00 1.00 1.00 1.00 - (1.00) Chief Civil Deputy Attorney 1.00 1.00 1.00 1.00 1.00 - Assistant Town Prosecutor 1.00 1.00 1.00 1.00 1.00 - Senior Paralegal 1.00 1.00 1.00 1.00 1.00 - Paralegal II 1.00 1.00 1.00 1.00 1.00 - Legal Secretary 1.00 1.00 1.00 1.00 1.00 - Office Assistant 1.00 1.00 1.00 - - (1.00) Total Legal 8.00 8.00 8.00 6.00 6.00 (2.00) *contract Attorney in FY 2014 6 **title change from Town Prosecutor - Part-time employees: Full-time employees:Part-time employees: Part-time employees: Full-time employees: Part-time employees: Full-time employees: Full-time employees: Full-time employees: Part-time employees: 2013-2014 Annual Budget 100 FY 2011 FY 2012 FY 2014 +/-Budget Projected Budget to BudgetActualFY 2013 Personnel Schedule Magistrate CourtMagistrate Judge 1.00 1.00 1.00 1.00 1.00 - Court Administrator 1.00 1.00 1.00 1.00 1.00 - Courtroom Clerk 1.00 1.00 1.00 1.00 1.00 - Senior Court Clerk 3.00 3.00 3.00 3.00 3.00 - Court Clerk 2.00 1.00 1.00 1.00 1.00 - Bailiff 1.00 1.00 1.00 1.00 1.00 - Total Magistrate Court 9.00 8.00 8.00 8.00 8.00 - 8 - Town Manager's OfficeTown Manager 1.00 1.00 1.00 1.00 1.00 - Assistant Town Manager 1.00 - 1.00 - - (1.00) Assistant to the Town Manager 1.00 1.00 1.00 1.00 1.00 - Executive Assistant 1.00 1.00 1.00 1.00 1.00 - Senior Office Specialist 1.00 1.00 1.00 1.00 1.00 - Management Intern - - - - 0.38 0.38 Economic Development Manager 1.00 1.00 1.00 1.00 1.00 - Economic Development Specialist - - 1.00 1.00 1.00 - Economic Development Intern 0.40 - - - - - Communications Administrator - 1.00 1.00 1.00 1.00 - New Media Developer - - - 1.00 1.00 1.00 Communications Specialist 1.00 - - - - - Communications Intern 0.10 0.10 - - - - Constituent Services Coordinator 1.00 1.00 1.00 1.00 1.00 - Office Specialist - - 1.00 1.00 1.00 - Total Town Manager's Office 8.50 7.10 10.00 10.00 10.38 0.38 10 1 Parks and RecreationParks & Recreation Director 1.00 1.00 1.00 1.00 1.00 - Parks Maintenance Manager 1.00 1.00 1.00 1.00 1.00 - Recreation Manager 1.00 1.00 1.00 1.00 1.00 - Multimodal Planner 1.00 1.00 1.00 1.00 1.00 - Aquatics Manager 1.00 1.00 1.00 1.00 1.00 - Parks Maintenance Crew Leader 1.00 1.00 1.00 1.00 1.00 - Senior Park Maintenance Worker 2.00 2.00 3.00 3.00 3.00 - Senior Office Specialist 1.00 1.00 1.00 1.00 1.00 - Office Assistant - 0.48 1.00 1.00 1.00 - Senior Office Assistant 1.00 - - - - - Assistant Recreation Manager 1.00 1.00 1.00 1.00 1.00 - Recreation Leader 0.40 0.40 0.40 0.40 0.40 - Assistant Aquatics Manager - - 1.00 1.00 1.00 - Aquatics Facility Supervisor - - 1.36 1.36 1.36 - Aquatics Shift Leader - - 2.72 2.72 2.72 - Park Maintenance Worker 3.00 3.00 2.00 2.00 2.35 0.35 Park Monitor 0.70 0.70 1.23 1.23 1.23 - Aquatics Facility Attendants - - 2.40 2.40 2.88 0.48 Recreation Aide 2.70 1.50 1.50 1.50 1.50 - Water Safety Instructor 6.15 6.32 4.00 4.00 4.00 - Library Services Manager 1.00 1.00 1.00 - - (1.00) Librarian II 4.00 4.00 4.00 - - (4.00) Office Specialist 1.00 1.00 1.00 - - (1.00) Library Associate 4.95 4.48 4.48 - - (4.48) Library Technical Assistant II 4.36 4.51 4.51 - - (4.51) Library Technical Assistant I 3.05 3.08 3.08 - - (3.08) Total Parks and Recreation 42.31 40.47 46.68 28.61 29.44 (17.24) 15 15 Part-time employees:(not including seasonal employees) Part-time employees: Full-time employees:Part-time employees: Full-time employees: Full-time employees: 2013-2014 Annual Budget 101 FY 2011 FY 2012 FY 2014 +/-Budget Projected Budget to BudgetActualFY 2013 Personnel Schedule Police Chief of Police 1.00 1.00 1.00 1.00 1.00 - Deputy Chief of Police 1.00 1.00 1.00 1.00 1.00 - Commander 2.00 2.00 2.00 2.00 2.00 - Lieutenant 5.00 5.00 5.00 5.00 5.00 - Sergeant 13.00 13.00 13.00 13.00 13.00 - Detective 5.00 6.00 7.00 7.00 7.00 - Patrol Officer 49.00 49.00 51.00 51.00 52.00 1.00 Motorcycle Officer 6.00 7.00 7.00 7.00 7.00 - School Resource Officer 7.00 7.00 7.00 7.00 8.00 1.00 K-9 Officer 3.00 3.00 3.00 3.00 2.00 (1.00) DUI Officer 2.00 2.00 2.00 2.00 2.00 - Training Officer 1.00 1.00 1.00 1.00 1.00 - Reserve Officer 0.48 0.96 1.44 1.44 2.88 1.44 Communications Supervisor 1.00 1.00 1.00 1.00 1.00 - Lead Dispatcher 3.00 3.00 3.00 3.00 3.00 - Dispatcher 9.00 9.00 9.00 9.00 9.00 - Records Supervisor 1.00 1.00 1.00 1.00 1.00 - Records Specialist 5.00 5.00 5.00 5.00 5.00 - Lead IT Forensics Technician 1.00 1.00 1.00 1.00 1.00 - Property Forensics Technician 2.00 2.00 2.00 2.00 2.00 - Administrative Services Manager 1.00 1.00 1.00 1.00 1.00 - Crime Analyst 1.00 1.00 1.00 1.00 1.00 - Emergency Response Planner 1.00 1.00 1.00 1.00 1.00 - Fleet Maintenance Mechanic II - 1.00 1.00 1.00 1.00 - Senior Office Specialist 1.00 1.00 1.00 1.00 3.00 2.00 Office Specialist 2.00 2.00 2.00 2.00 - (2.00) Office Assistant 1.25 1.25 1.25 1.25 1.25 - Total Police 124.73 128.21 131.69 131.69 134.13 2.44 130 8 Water UtilityWater Utility Director 1.00 1.00 1.00 1.00 1.00 - Engineering Division Manager 1.00 1.00 1.00 1.00 1.00 - Water Utility Administrator 1.00 1.00 1.00 1.00 1.00 - Water Production Superintendent 1.00 1.00 1.00 1.00 1.00 - Water Distribution Superintendent 1.00 1.00 1.00 1.00 1.00 - Water Engineer Project Manager 1.00 1.00 1.00 1.00 1.00 - Meter Operations Supervisor 1.00 1.00 1.00 1.00 1.00 - Engineering Design Reviewer 1.00 1.00 1.00 1.00 1.00 - Water Conservation Specialist 1.00 1.00 1.00 1.00 1.00 - Lead Water Utility Operator 4.00 4.00 4.00 4.00 4.00 - Construction Inspector 2.00 2.00 2.00 2.00 2.00 - Electric and Control Technician - - - - 1.00 1.00 Civil Engineer Tech 1.00 1.00 1.00 1.00 1.00 - Water Utility Operator III - - - - 7.00 7.00 Water Utility Operator II 8.00 9.00 9.00 9.00 2.00 (7.00) Senior Office Specialist 1.00 1.00 1.00 1.00 1.00 - Customer Service Supervisor 1.00 1.00 1.00 1.00 1.00 - Water Utility Operator I 4.00 5.00 5.00 5.00 5.00 - Customer Service Representative 4.00 4.00 4.00 4.00 4.00 - Total Water Utility 34.00 36.00 36.00 36.00 37.00 1.00 37 - Total Personnel 331.28 331.10 343.79 327.56 330.69 (13.10) 288 71 Full-time employees:Part-time employees: Full-time employees: Part-time employees: Full-time employees:Part-time employees: 2013-2014 Annual Budget 102 2013 – 2014 Annual Budget Town of Oro Valley 103 2013 – 2014 Annual Budget This Page Intentionally Left Blank 104 2013 – 2014 Annual Budget Financial Overview Debt Service The Town of Oro Valley issues debt to provide funding for the construction of capital projects. The Town has adopted financial policies on debt capacity that set guidelines for issuing debt and provide guidance in the timing and structuring of long-term debt commitments. The general policy of the Town is to fund capital projects with new, dedicated streams of revenue or voter-approved debt. Non voter-approved debt may be utilized when a dedicated revenue source other than general revenue can be identified to pay debt service expenditures. The Town currently uses Excise Tax Revenue Bonds, Water Project Revenue Bonds, Improvement District Bonds, Clean Renewable Energy Bonds, and programs offered by the State as funding mechanisms for capital projects. The chart below represents the percentage each type of bonded debt contributes to the total outstanding debt of the Town as of June 30, 2013. Senior Lien Water Project Revenue Refunding Obligations 28% Excise Tax Revenue Bonds 53% Clean Renewable Energy Bonds 4% Improvement District Bonds 4% Water Infrastructure Finance Authority Loans 11% The chart below depicts total annual principal and interest requirements on the Town’s current outstanding debt. $0 $1,000,000 $2,000,000 $3,000,000 $4,000,000 $5,000,000 $6,000,000 $7,000,000 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 Annual Debt Service Principal Interest Outstanding Principal = $58,581,559 105 2013 – 2014 Annual Budget Financial Overview Debt Service Financing Sources Excise Tax Revenue Bonds Excise Tax Revenue Bonds are issued by the Town for the purpose of financing the construction or acquisition of capital improvement projects. These bonds may be issued without voter approval. The Town of Oro Valley has issued excise tax revenue bonds for the construction and improvement of water facilities, and the acquisition of land and construction of buildings to support Town services. Repayment of the debt is pledged with excise sales tax, state shared revenue and other permit and fee revenues. $0 $500,000 $1,000,000 $1,500,000 $2,000,000 $2,500,000 $3,000,000 $3,500,000 2014 2016 2018 2020 2022 2024 2026 2028 Principal Interest Senior Lien Water Project Revenue Refunding Obligations The Senior Lien Water Project Revenue Refunding Obligations were issued by the Town in 2012 for the purpose of refunding previously issued water revenue obligations. The previously issued obligations financed improvements to the Town’s reclaimed and potable water systems. Water project revenue bonds may be issued without voter approval. Repayment of the debt is pledged with water system revenues. $0 $500,000 $1,000,000 $1,500,000 $2,000,000 2014 2016 2018 2020 2022 2024 2026 2028 Principal Interest Bond Rating Standard & Poor’s AA Fitch AA – 106 2013 – 2014 Annual Budget Financial Overview $0 $50,000 $100,000 $150,000 $200,000 $250,000 $300,000 $350,000 $400,000 $450,000 2014 2015 2016 2017 2018 2019 2020 2021 Principal Interest $0 $100,000 $200,000 $300,000 $400,000 $500,000 $600,000 $700,000 2014 2016 2018 2020 2022 2024 2026 2028 2030 Principal Interest $0 $50,000 $100,000 $150,000 $200,000 $250,000 $300,000 2014 2016 2018 2020 2022 2024 2026 2028 Principal Interest Debt Service Improvement District Bonds Improvement District Bonds are issued to finance projects in a designated area within a town or city. The majority of property owners in this district must approve the formation of the district and the amount of indebtedness. The bonds are then repaid by the assessments levied on the property in the district. The Town issued Improvement District Bonds in 2005 in the amount of $3,945,000 to finance the widening of Oracle Road along the Rooney Ranch development. Water Infrastructure Finance Authority Loans (WIFA) WIFA is a state agency that has specific programs that can improve a city or town’s ability to use bonding as a revenue source. WIFA has the ability to assist smaller to medium sized communities in pooling their bond issues to help lower the costs of issuing debt. They also have monies set aside to help secure the debt and allow the bonds to be issued at the lowest interest rate possible. WIFA’s charge is specifically with water and wastewater projects. In 2007, the Town was approved for up to $6M in WIFA loan proceeds for infrastructure expansion of the reclaimed water system in the Town. In 2009, the Town was approved for a $3.4 million loan to finance existing water system infrastructure improvements. Clean Renewable Energy Bonds (CREBS) In 2010, the Town issued Clean Renewable Energy Bonds in the amount of $2.4 million to finance the construction of solar panel covered parking structures in the parking lot of Town hall. The bonds are secured by the Town’s excise tax revenues. The debt service will be paid through a combination of energy savings, electricity rebates from Tucson Electric Power Company, and a 70% interest subsidy from the U.S. Treasury Department. 107 2013 – 2014 Annual Budget Financial Overview Debt Service Debt Capacity The Arizona Constitution limits the Town’s bonded debt capacity (outstanding principal) to a certain percentage of the Town’s secondary assessed valuation for General Obligation (G.O.) bonds. The Constitution states that for general municipal purposes, the Town cannot incur a debt exceeding 6% of the assessed valuation of taxable property. Additional bonds amounting to 20% of the assessed valuation of taxable property can be issued for water, lighting and sewer projects, and for the acquisition and development of land for open space preserves, parks, playgrounds and recreational facilities. The Town’s current bond holdings do not include G.O. bonds and, therefore, are not subject to the debt limitation. Summary The below information summarizes the total outstanding principal and interest on current Town debt obligations for the next twenty years. A measure of a community’s financial soundness is its bond rating. The Town continues to maintain very strong coverage of debt service which contributes to the favorable bond ratings received from Standard & Poor’s and Fitch Investors Service. Excise Tax Revenue Bonds Water Project Revenue Bonds Improvement District Bonds WIFA Loans CREBS Total 2014 2,654,002 891,081 371,328 546,846 250,864 4,714,120 2015 3,042,178 1,954,681 370,408 546,657 246,274 6,160,197 2016 3,074,364 1,943,281 368,798 546,462 240,887 6,173,792 2017 3,046,861 1,980,781 371,478 546,260 234,900 6,180,280 2018 3,053,563 1,963,731 371,728 546,051 228,460 6,163,533 2019 3,043,703 1,965,481 372,623 545,835 226,507 6,154,148 2020 3,046,048 1,962,481 372,673 545,612 219,108 6,145,921 2021 3,456,575 1,957,081 371,863 545,381 216,354 6,547,254 2022 2,598,888 1,945,531 - 545,142 208,249 5,297,810 2023 2,601,394 1,941,906 - 544,896 204,706 5,292,902 2024 2,601,563 630,331 - 544,640 195,721 3,972,255 2025 2,595,322 362,931 - 544,376 191,318 3,693,947 2026 2,600,213 365,231 - 544,104 186,370 3,695,917 2027 2,218,584 368,631 - 543,821 176,066 3,307,102 2028 224,125 362,925 - 443,834 170,437 1,201,321 2029 - 371,159 - 228,905 - 600,065 2030 - - - 228,796 - 228,796 39,857,379 20,967,247 2,970,895 8,537,620 3,196,217 75,529,358 108 2013 – 2014 Annual Budget Financial Overview Debt Service Schedules $15,750,000 Excise Tax Revenue Refunding Bonds, Series 2003 Date: December 1, 2003 Interest: Payable semiannually commencing on January 1, 2004, and semiannually thereafter on July 1 and January 1 of each year. Purpose: The bonds were issued for the purpose of providing funding to refinance certain outstanding excise tax secured obligations. Security: Excise Taxes Debt Service: Fiscal Year Principal Interest Total 2014 942,500 150,279 1,092,779 Total $942,500 $150,279 $1,092,779 Note: Future debt service has been refunded with Excise Tax Revenue Refunding Obligations, Series 2013 $6,215,000 Excise Tax Revenue Obligations, Series 2005 Date: September 29, 2005 Interest: Payable semiannually commencing on July 1, 2006, and semiannually thereafter on January 1 and July 1 of each year. Purpose: The bonds were issued for the land acquisition, development costs and construction of a Municipal Operations Center. Security: Excise Taxes Debt Service: Fiscal Year Principal Interest Total 2014 275,000 177,819 452,819 2015 290,000 167,244 457,244 2016-2018 930,000 435,481 1,365,481 2019-2022 1,420,000 393,544 1,813,544 2023-2026 1,665,000 142,691 1,807,691 Total $4,580,000 $1,316,778 $5,896,778 109 2013 – 2014 Annual Budget Financial Overview Debt Service Schedules $3,945,000 Roadway Improvement Assessment Bonds, Series 2005 Date: January 20, 2005 Interest: Payable semiannually commencing on July 1, 2005, and semiannually thereafter on January 1 and July 1 of each year. Purpose: The bonds were issued for the improvement of Oracle Road along the Rooney Ranch development. Security: The bonds are payable from and secured by special assessment proceeds. Debt Service: Fiscal Year Principal Interest Total 2014 260,000 111,328 371,328 2015 270,000 100,408 370,408 2016-2018 885,000 227,003 1,112,003 2019-2021 1,020,000 97,158 1,117,158 Total $2,435,000 $535,895 $2,970,895 $17,810,000 Excise Tax Revenue Refunding Bonds, Series 2007 Date: April 19, 2007 Interest: Payable semiannually commencing on July 1, 2007, and semiannually thereafter on January 1 and July 1 of each year. Purpose: The bonds were issued for the purpose of providing funding to refinance certain outstanding excise tax secured obligations. Security: Excise Taxes Debt Service: Fiscal Year Principal Interest Total 2014 125,000 730,381 855,381 2015 130,000 724,963 854,963 2016-2019 2,740,000 2,651,663 5,391,663 2020-2024 7,805,000 2,090,281 9,895,281 2025-2027 5,475,000 358,806 5,833,806 Total $16,275,000 $6,556,094 $22,831,094 110 2013 – 2014 Annual Budget Financial Overview Debt Service Schedules $4,584,652 Water Infrastructure Finance Authority Loan Date: August 17, 2007 Interest: Payable semiannually commencing on July 1, 2008, and semiannually thereafter on January 1 and July 1 of each year. Purpose: This loan was secured to finance the construction of infrastructure to expand the reclaimed water system in the Town. Security: Water Revenues Debt Service: Fiscal Year Principal Interest Total 2014 192,168 124,478 316,647 2015 198,963 117,563 316,526 2016-2019 868,739 396,078 1,264,817 2020-2024 1,270,302 307,459 1,577,761 2025-2028 1,086,224 73,258 1,159,482 Total $3,616,397 $1,018,837 $4,635,233 $3,403,000 Water Infrastructure Finance Authority Loan Date: October 22, 2009 Interest: Payable semiannually commencing on July 1, 2010, and semiannually thereafter on January 1 and July 1 of each year. Purpose: This loan was secured to finance existing water system infrastructure improvements. Security: Water Revenues Debt Service: Fiscal Year Principal Interest Total 2014 136,676 93,523 230,200 2015 141,010 89,120 230,131 2016-2018 450,432 239,526 689,958 2019-2022 670,105 248,737 918,842 2023-2026 759,230 158,198 917,429 2027-2030 860,209 55,619 915,828 Total $3,017,663 $884,723 $3,902,386 111 2013 – 2014 Annual Budget Financial Overview Debt Service Schedules $2,445,000 Clean Renewable Energy Bonds – Direct Payment Date: July 22, 2010 Interest: Payable semiannually commencing on January 1, 2011, and semiannually thereafter on July 1 and January 1 of each year. Purpose: The bonds were issued to finance the construction of solar panel covered parking structures in the parking lot of Town Hall. Security: Excise Taxes Debt Service: Fiscal Year Principal * Interest * Total 2014 135,000 115,864 250,864 2015 135,000 111,274 246,274 2016-2018 405,000 299,247 704,247 2019-2022 570,000 300,217 870,217 2023-2026 615,000 163,114 778,114 2027-2028 325,000 21,502 346,502 Total $2,185,000 $1,011,217 $3,196,217 *Debt Service is subsidized by electricity rebates from Tucson Electric Power Co. and a 70% interest subsidy from the U.S. Treasury Department $2,580,000 Excise Tax Revenue Obligations, Series 2012 Date: April 5, 2012 Interest: Payable semiannually commencing on January 1, 2013, and semiannually thereafter on July 1 and January 1 of each year. Purpose: The bonds were issued to finance the construction of enhancements and upgrades to the Oro Valley aquatic facility. Security: Excise Taxes Debt Service: Fiscal Year Principal Interest Total 2014 115,000 90,669 205,669 2015 140,000 88,119 228,119 2016-2018 440,000 239,756 679,756 2019-2022 670,000 235,475 905,475 2023-2026 780,000 121,888 901,888 2027-2028 435,000 16,272 451,272 Total $2,580,000 $792,178 $3,372,178 112 2013 – 2014 Annual Budget Financial Overview Debt Service Schedules $16,595,000 Senior Lien Water Project Revenue Refunding Obligations, Series 2012 Date: May 24, 2012 Interest: Payable semiannually commencing on January 1, 2013, and thereafter on July 1 and January 1 of each year. Purpose: The bonds were issued to refund previously issued excise tax revenue bonds. The previously issued obligations financed improvements to the Town’s reclaimed and potable water systems. Security: Water Revenues Debt Service: Fiscal Year Principal Interest Total 2014 280,000 611,081 891,081 2015 1,360,000 594,681 1,954,681 2016-2019 5,895,000 1,958,275 7,853,275 2020-2024 7,375,000 1,062,331 8,437,331 2025-2029 1,685,000 145,878 1,830,878 Total $16,595,000 $4,372,247 $20,967,247 $6,355,000 Excise Tax Revenue Refunding Obligations, Series 2013 Date: June 26, 2013 Interest: Payable semiannually commencing on January 1, 2014, and thereafter on July 1 and January 1 of each year. Purpose: The bonds were issued to refund previously issued excise tax revenue refunding bonds. The previously issued obligations provided funding to refinance certain outstanding excise tax secured obligations. Security: Excise Taxes Debt Service: Fiscal Year Principal Interest Total 2014 - 47,354 47,354 2015 1,420,000 81,853 1,501,853 2016-2017 1,940,000 114,913 2,054,913 2018-2020 2,995,000 65,431 3,060,431 Total $6,355,000 $309,550 $6,664,550 113 2013 – 2014 Annual Budget This Page Intentionally Left Blank 114 2013 – 2014 Annual Budget Town of Oro Valley 115 2013 – 2014 Annual Budget This Page Intentionally Left Blank 116 2013 – 2014 Annual Budget Financial Overview 0 100 200 300 400 500 600 700 800 2001 2003 2005 2007 2009 2011 2013 2015 2017 Fiscal Year Si n g l e F a m i l y R e s i d e n t i a l P e r m i t s Long Term Forecast Oro Valley continues to operate within its budgetary limits. A major area of focus by the Town Council has been on the future financial sustainability of the Town. This type of long term planning involves aligning our Strategic Plan to our long range forecast, which in turn, drives our budget. A long term forecast allows the Town to determine how current spending plans will impact future budgets. The base forecast is developed using the current services offered by the Town. Assumptions relating to inflation and growth rates are used to predict expenditure levels. Revenues are projected by trend or by specific information, when available. This information is used in conjunction with the impact of new commercial development, future construction projects and economic conditions to develop a long term forecast. New development is crucial to the forecast not only due to the additional tax revenue and service fees, but also the cost of providing services to support the new development. Finance staff works in tandem with Development Services and Economic Development when compiling projections for long range planning to ensure compatibility among all planning processes. When compiling the long range forecast, the focus is on the main tax-based funds of the Town, which are the General Fund, the Highway Fund and the Bed Tax Fund. Economic Environment In previous years, the Town relied heavily on residential and commercial development to fund the business of operating a community. As the Town approaches build-out and these sources begin to diminish, other revenues sources are needed to continue the viability of the Town. In early 2000, the Town of Oro Valley issued nearly 800 single family residential (SFR) permits, which was considerably higher than other communities in the area. In 2002 the number of permits began to decline. Development revenues such as these, as well as sales taxes and state shared revenues, are economically volatile and may experience steep declines during economic downturns, as was the case with the most recent recession. The Town does Strategic Plan Business Plan (Long Term Forecast) Resource Allocation (Budget & CIP) Monitor & Adjust (Monthly financial reports, financial analysis) Community Feedback (Surveys, Citizen Based Committees, Meetings) Strategic Plan Business Plan (Long Term Forecast) Resource Allocation (Budget & CIP) Monitor & Adjust (Monthly financial reports, financial analysis) Community Feedback (Surveys, Citizen Based Committees, Meetings) 117 2013 – 2014 Annual Budget Financial Overview Projected Population - 5,000 10,000 15,000 20,000 25,000 30,000 35,000 40,000 45,000 50,000 2010 2011 2012 2013 2014 2015 2016 2017 2018 Long Term Forecast not levy a property tax, and is therefore extremely vulnerable to shifts in economic conditions. Furthermore, the State legislature has made many recent attempts to impact state shared revenues and local tax collection efforts, and it is likely that those attempts will continue. Nevertheless, the Town is seeing signs of gradual economic recovery, both at the local and state levels. The Town’s retail sales tax collections continue to grow, and residential and commercial activity has increased over the past twelve months. All indications suggest continued slow, steady growth. Three new luxury apartment complexes within the town are in either construction or development phases. The Town’s five-year forecast incorporates these revenues. Projections in development activity include growth in the near term and a gradual decline in the outer years of the forecast period. Projections in state shared revenues and sales taxes reflect growth rates of 3-6%. Low inflation is anticipated over the forecast period. Population growth is projected to increase at a slow pace over the next five years due in part to the limited amount of developable land within the incorporated boundaries of the town. Impacts of Future Capital Needs In additional to personnel costs, the Capital Improvement Program makes up a significant portion of the Town’s expenditure forecast, for both the one-time cost of the capital and the continued operational impacts of the new facilities or equipment. New or expanded parks and police facilities, for example, will require additional personnel and increased operations & maintenance (O&M) costs. Capital projects, particularly in the outer years of the forecast period, will demand much of the Town’s resources. Costs to support these projects, as well as any identified recurring costs, have been incorporated in the long-term forecast. 118 2013 – 2014 Annual Budget Financial Overview General Fund Projected Revenues, Expenditures and Fund Balance $ 2 7 , 1 3 1 , 5 5 9 $ 2 8 , 3 8 6 , 9 0 6 $ 2 9 , 2 1 3 , 8 9 9 $ 2 9 , 6 8 9 , 9 4 4 $ 3 0 , 1 1 5 , 1 8 4 $ 3 0 , 5 0 6 , 7 1 8 $ 2 8 , 7 0 4 , 0 8 6 $ 2 8 , 3 4 8 , 2 4 2 $ 2 9 , 5 1 3 , 2 8 8 $ 2 9 , 6 7 5 , 6 3 8 $ 3 0 , 5 3 0 , 7 1 1 $ 3 0 , 8 6 3 , 5 6 1 $0 $5,000,000 $10,000,000 $15,000,000 $20,000,000 $25,000,000 $30,000,000 $35,000,000 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 Revenues Expenditures Fund Balance Long Term Forecast Fund Forecasts General Fund. Overall, the General Fund remains stable over the five-year horizon based upon revenue growth centered around continued economic recovery both at the local and state levels. Revenues in the General Fund reflect 3-6% growth in recurring revenue sources, such as state shared revenues and local retail sales tax. One-time revenues generated from construction sales taxes and building permits revenues are slightly more volatile as several large projects are completed over the next two to three years. General Fund expenditure projections reflect the continued commitment to providing fair employee compensation, maintaining flat O&M budgets as much as possible and allocating resources to asset replacement (computers, vehicles) and capital infrastructure needs. The fund balance in the General Fund is maintained at healthy levels over the five-year period above the Town’s adopted policy requirement of 25% of adopted expenditures each year. 119 2013 – 2014 Annual Budget Financial Overview Long Term Forecast Highway Fund. Highway Fund revenues are comprised primarily of local construction sales taxes and state shared highway user (gas tax) revenues. The construction sales tax revenues are one-time in nature and fluctuate based on local construction activity. The state shared highway user revenues are expected to grow by approximately 3-4% per year based on projections provided by the Arizona Department of Transportation. Highway Fund expenditures reflect similar assumptions as those in the General Fund forecast for personnel and O&M costs. Funding for the pavement preservation program is included in the forecast and ranges from $1 million to $1.3 million per year. The fund balance in the Highway Fund is projected to decrease based on the current assumptions, with an ending balance of approximately $1.7 million in FY 2017/18. Highway Fund Projected Revenues, Expenditures and Fund Balance $ 3 , 3 7 9 , 6 3 5 $ 3 , 8 0 6 , 6 9 0 $ 4 , 0 6 0 , 7 6 3 $ 4 , 0 4 2 , 4 8 5 $ 4 , 0 0 6 , 3 1 4 $ 4 , 0 2 5 , 4 0 5 $ 3 , 5 7 4 , 0 6 7 $ 3 , 7 2 0 , 9 8 1 $ 4 , 1 4 4 , 9 1 2 $ 4 , 4 8 6 , 7 5 2 $ 4 , 2 3 6 , 1 7 8 $ 4 , 4 8 5 , 0 7 5 $0 $500,000 $1,000,000 $1,500,000 $2,000,000 $2,500,000 $3,000,000 $3,500,000 $4,000,000 $4,500,000 $5,000,000 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 Revenues Expenditures Fund Balance 120 2013 – 2014 Annual Budget Financial Overview Long Term Forecast Bed Tax Fund. The Bed Tax Fund captures revenues generated by the Town’s 6% lodging tax on hotels/motels. State law requires that two-thirds of the Town’s bed tax collections be allocated to tourism promotion purposes and economic development. The Bed Tax Fund remains stable over the forecast period with modest revenue growth following continued economic recovery projected in the tourism industry. Bed Tax Fund expenditures reflect existing contract amounts with several tourism and economic development agencies. This fund also covers debt service payments on bonds issued for the recently completed expansion of the Town’s aquatic facility, as well as the increase in operating costs as a result of the expansion. This fund shows a slight surplus in each year of the forecast, with an ending balance projected at almost $740,000 in FY 2017/18. Bed Tax Fund Projected Revenues, Expenditures and Fund Balance $ 7 8 6 , 2 5 8 $ 7 9 2 , 9 7 5 $ 9 9 6 , 6 7 0 $ 1 , 0 1 3 , 0 0 3 $ 1 , 0 2 9 , 6 6 4 $ 1 , 0 4 6 , 6 5 7 $ 8 8 1 , 5 2 0 $ 8 8 2 , 4 3 1 $ 9 2 9 , 3 8 4 $ 9 4 1 , 9 6 1 $ 9 5 0 , 1 4 8 $ 9 6 3 , 0 8 7 $0 $200,000 $400,000 $600,000 $800,000 $1,000,000 $1,200,000 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 Revenues Expenditures Fund Balance Conclusion The reliance on growth, development and volatile revenue sources has left Oro Valley vulnerable to economic fluctuations and forces the Town to make difficult decisions regarding programs and services. A delicate balance exists between the demands of town citizens and the resources available to meet those demands. Major service level changes or added programs will require new revenue sources to fund such expansions. 121 2013 – 2014 Annual Budget This Page Intentionally Left Blank 122 PR O G R A M B U D G E T S Cl e r k Co u n c i l De v e l o p m e n t a n d I n f r a s t r u c t u r e S e r v i c e s Fi n a n c e Ge n e r a l A d m i n i s t r a t i o n H u m a n R e s o u r c e s In f o r m a t i o n T e c h n o l o g y Le g a l Ma g i s t r a t e C o u r t To w n M a n a g e r ’ s O f f i c e Be d T a x F u n d Pa r k s a n d R e c r e a t i o n Re c r e a t i o n I n - L i e u F e e F u n d Pa r k s a n d R e c r e a t i o n I m p a c t F e e F u n d Aq u a t i c C e n t e r P r o j e c t F u n d Po l i c e Po l i c e I m p a c t F e e F u n d Wa t e r U t i l i t y Al t e r n a t i v e W a t e r R e s o u r c e s D e v e l o p m e n t I m p a c t F e e F u n d Po t a b l e W a t e r S y s t e m s D e v e l o p m e n t I m p a c t F e e F u n d Mu n i c i p a l D e b t S e r v i c e F u n d Or a c l e R o a d I m p r o v e m e n t D i s t r i c t Ge n e r a l G o v e r n m e n t I m p a c t F e e F u n d Be n e f i t S e l f - I n s u r a n c e F u n d PROGRAM BUDGETS FY 2012 FY 2013 FY 2013 FY 2014 Variance Personnel Actual Budget Projected Budget to Budget Town Clerk 1.00 1.00 1.00 1.00 - Deputy Town Clerk 1.00 1.00 1.00 1.00 - Assistant to the Town Clerk 1.00 1.00 1.00 1.00 - Office Assistant 1.44 1.44 1.44 1.44 - Communications Intern - 0.10 0.10 0.10 - Total FTEs 4.44 4.54 4.54 4.54 - FY 2012 FY 2013 FY 2013 FY 2014 Variance Actual Budget Projected Budget to Budget Expenditures Personnel 294,437$ 284,127$ 283,337$ 298,818$ 5.2% Operations & Maintenance 99,944 38,652 31,381 35,300 -8.7% Capital Outlay 14,247 - 7,271 11,000 0.0% Total Expenditures 408,628$ 322,779$ 321,989$ 345,118$ 6.9% FY 2012 FY 2014 Variance Actual Budget Projected Budget to Budget Business Licenses & Permits 176,853$ 171,140$ 174,900$ 176,700$ 3.2% Copy Services 2,430 2,500 2,500 2,500 0.0% Total Revenues 179,283$ 173,640$ 177,400$ 179,200$ 3.2% FY 2013 Revenue Sources The Clerk's Office is the centralized information distribution point for our citizens, Town Council and staff. The Clerk's Office is responsible for preserving the legislative history of the Town, maintaining public records of the Town and conducting fair and impartial elections. The Clerk's Office provides staff support to Town Council; public records & information; business licensing; records management; elections; voter registration; and notary services. Functions of the Clerk's Office are performed in accordance with Arizona Revised Statutes, Oro Valley Town Code and the administrative policies and objectives of the Town. Clerk Overview FY 2013/2014 Expenditure and Staffing Changes Personnel Personnel costs increased 5.2% to reflect merit increases budgeted for FY 2014. Operations & Maintenance Operations & Maintenance decreased 8.7% due to savings in advertising and outside professional services costs. 2013-2014 Annual Budget Program Budgets123 Mission FY 2013 Highlights FY 2012 FY 2013 FY 2014 Actual Estimate Projected ►Percentage of public records requests fulfilled within 72 hours of request 87% 88% 90% ►Percentage of new business licenses issued within 3-5 days of application 99% 99% 100% ►Percentage of business license renewals issued within 30 days 95% 98% 99% FY 2012 FY 2013 FY 2014 Actual Estimate Projected ►Number of Town Council meetings attended 19 22 22 Note: Regular Council meetings are held on the 1st & 3rd Wednesday of the month. Council may add/cancel meetings as needed for study sessions, budget sessions, etc. ►Number of public notices posted 229 240 250 ►Number of ordinances published, posted and codified 20 20 20 ►Number of public records requests received and completed 147 220 200 ►Total business licenses issued - new & renewal 2,411 2,475 2,500 ►Number of liquor license applications processed 16 11 12 ►Number of solicitor badge applications (commercial & nonprofit) processed 65 60 60 Performance Measures Workload Indicators FY 2014 Goals and Objectives Highlights & Goals Measures & Indicators Clerk The Town Clerk's Office is committed to maintaining public confidence and trust. The office continually strives to improve the quality and accessibility of public information, provide fair and impartial elections and provide quality customer service to our citizens, Town Council, and staff. − Completed transition from paper Council packets to electronic packets − With the assistance of the IT Department, completed upgrade to Granicus system, which provides the public with meeting information and video and audio recordings of Council and Board and Commission meetings − Implemented new business licensing software, which will increase efficiency, reduce costs and provide a greater and more reliable amount of economic data – Assisted with the successful Oracle/Ina area annexation Focus Area: Communication ■ Implement the MUNIS Citizen Self Service module so that business owners will be able to pay business license fees online, providing greater convenience for the business community Focus Area: Community Services ■ Assist with the feasibility assessment of an organization- wide electronic document management system ■ Evaluate methods for automating the public records request process and allowing users to make requests online * 2013-2014 Annual Budget Program Budgets124 FY 2012 FY 2013 FY 2013 FY 2014 Variance Actual Budget Projected Budget to Budget Personnel Mayor 1.00 1.00 1.00 1.00 - Councilmember 6.00 6.00 6.00 6.00 - Total FTEs 7.00 7.00 7.00 7.00 - FY 2012 FY 2013 FY 2013 FY 2014 Variance Actual Budget Projected Budget to Budget Expenditures Personnel 77,192$ 78,818$ 78,818$ 78,828$ 0.0% Operations & Maintenance 114,723 145,800 145,800 147,025 0.8% Capital 6,942 - - 0.0% Total Expenditures 198,857$ 224,618$ 224,618$ 225,853$ 0.5% Council Overview The Mayor and Council consist of seven officials elected by residents of the town. The Mayor is directly elected by the citizens while the Vice-Mayor is selected by the Council annually. Councilmembers serve four-year overlapping terms in the manner prescribed by state law. The Mayor and Councilmembers of Oro Valley are committed to high quality municipal services and responsible development. Through the Town Manager, the Town Council provides policy direction by adopting rules, regulations, and procedures to meet community needs. The Mayor and Councilmembers remain accountable and accessible to the residents through their commitment to full, honest, and timely communication and exchange promoting responsive, responsible governance. 2013-2014 Annual Budget Program Budgets125 FY 2013 Highlights FY 2014 Goals and Objectives Highlights & Goals Council Mission The Town of Oro Valley is a "Mission" driven organization. The Council's Mission is to: Act with openness, respect, integrity, accountability, and quality to preserve and protect the health, safety and welfare of the community; and promote organizational efficiency that upholds the long-term interests of the town while responding to present community needs. The Town Council focuses on the most important community issues and sets in motion an organizational culture that encourages innovation and strives for excellence. − Approved the new Strategic Plan − Approved $2.1M from General Fund contingency reserves to bury utility lines for preservation of natural beauty and scenic corridors − Approved the development of an archery range and two archery walking courses at Naranja Park – Oro Valley named "2013 Best Place to Raise Kids in Arizona" by Bloomberg Businessweek − Expanded partnerships with Metropolitan Tucson Convention and Visitors Bureau (MTCVB) and the Greater Oro Valley Chamber of Commerce − Approved the Economic Expansion Zone (EEZ) for Innovation Park − Approved the annexation of 107 acres, known as the Oracle/Ina area − Approved the 15-year Capital Improvement Program (CIP) − Formalized and expanded Spotlight on Youth recognition program Focus Area: Fiscal Responsibility ■ Maintain long-term financial health through diversified revenue sources while investing in community initiatives Focus Area: Communication ■ Ensure residents are educated about and engaged in moving community initiatives forward Focus Area: Economic Development ■ Attract and retain globally-competitive high technology and bioscience employers. ■ Develop recreation and cultural opportunities to promote tourism and support employee attraction and retention Focus Area: Community Services ■ Provide services to enhance residents’ quality of life 2013-2014 Annual Budget Program Budgets126 2012 FY 2014 Actual Budget Projected Budget 73.38 73.38 77.22 75.70 2012 FY 2014 % Actual Budget Projected Budget to Budget General Fund 2,934,686$ 3,803,751$ 3,349,021$ 4,031,561$ 6.0% Highway Fund 3,757,844 3,669,829 3,630,438 3,720,981 1.4% Stormwater Utility Fund 655,365 1,565,449 941,151 1,334,376 -14.8% Fleet Fund 436,271 638,787 638,787 1,221,963 91.3% Roadway Development Impact Fee Fund 7,501,852 6,154,000 4,760,000 3,380,000 -45.1% 15,286,018$ 15,831,816$ 13,319,397$ 13,688,881$ -13.5% 2012 FY 2014 % Actual Budget Projected Budget to Budget General Fund 1,643,128$ 2,154,836$ 2,250,896$ 2,649,755$ 23.0% Highway Fund 3,125,955 3,346,388 3,379,635 3,806,690 13.8% Stormwater Utility Fund 792,988 1,299,800 795,407 1,222,000 -6.0% Fleet Fund 436,271 638,787 638,787 1,302,793 103.9% Roadway Development Impact Fee Fund 7,234,302 6,412,718 5,432,440 4,460,875 -30.4% 13,232,644$ 13,852,529$ 12,497,165$ 13,442,113$ -3.0% Revenues by Fund FY 2013 Total FTEs FY 2013 Expenditures by Fund FY 2013 Divisions/programs supported by the General Fund include Planning, Permitting, Inspection & Compliance, Facilities Maintenance and Transit The Development and Infrastructure Services (DIS) Department is comprised of the following divisions: Planning, Permitting, Inspection & Compliance, Engineering, Operations and Transit. The department is responsible for ensuring harmonious growth as well as the health, safety and welfare of the public in the built environment. All facets of planning, zoning, permitting, inspection, compliance, transportation planning and engineering, traffic engineering, street maintenance, and pavement management are provided by this department for all horizontal and vertical construction and infrastructure elements within the Town of Oro Valley. In addition, the department is also responsible for the Town's stormwater management and flood control, facilities and fleet maintenance, as well as providing transit services for the community. Overview Development and Infrastructure Services (DIS) 2013-2014 Annual Budget Program Budgets127 INFRASTRUCTURE SECTION DEVELOPMENT SECTION Development and Infrastructure SvcsOrganizational Chart DEVELOPMENT & INFRASTRUCTURE SERVICES Department Director Town Engineer ENGINEERING TRANSP. ENGINEERING TRAFFIC ENGINEERING PAVEMENT MANAGEMENT OPERATIONS TRANSIT STREET MAINTENANCE STORMWATER UTILITY FLEET MAINTENANCE FACILITIES MAINTENANCE PERMITTINGPLANNING INSPECTION & COMPLIANCE PLAN REVIEW INTAKE, ISSUE & RECORD MGMT CURRENT & LONG RANGE PLANNING CONSERVATION & SUSTAINABILITY INSPECTION CODE COMPLIANCE Admin. Support 2013-2014 Annual Budget Program Budgets128 2012 FY 2014 Actual Budget Projected Budget 24.48 24.48 24.78 25.26 FY 2012 FY 2014 % Actual Budget Projected Budget to Budget Administration 135,245$ 169,193$ 169,193$ 216,241$ 27.8% Planning 638,378 815,942 663,495 966,811 18.5% Permitting 700,641 658,836 655,880 679,433 3.1% Inspection & Compliance 571,392 596,851 590,072 607,969 1.9%2,045,656$ 2,240,822$ 2,078,640$ 2,470,454$ 10.2% FY 2012 FY 2014 % Actual Budget Projected Budget to Budget Residential Building Permits 554,042$ 632,435$ 887,360$ 1,067,255$ 68.8% Commercial Building Permits 352,796 83,394 220,936 200,000 139.8% Special Inspection Fees 3,110 4,500 3,400 4,000 -11.1% Copying Fees/Code Book Sales 415 - - - 0.0% Zoning and Subdivision Fees 91,197 70,000 74,000 75,000 7.1% Sign Permits 36,397 38,000 39,000 40,000 5.3% Energy Efficien. & Conserv. Grant 54,000 150,000 33,500 100,000 -33.3% Grading Permit Fees 15,150 7,000 5,000 5,500 -21.4% Engineer Plan Review Fees 46,890 35,000 40,000 40,000 14.3% Grading Review Fees 296 1,000 1,000 1,200 20.0% Grading Inspection Fees 1,400 700 700 800 14.3%1,155,693$ 1,022,029$ 1,304,896$ 1,533,755$ 50.1% Revenue Sources FY 2013 FY 2014 Expenditures by Category Total FTEs FY 2013 Expenditures by Division FY 2013 FY 2014 Expenditures by Program The Development Section of the DIS Department is organized into three functional divisions: Planning, Permitting, and Inspection and Compliance. Planning administers the General Plan and Zoning Code for the harmonious development of the Town. Permitting coordinates all facets of plan review and permitting to assess compliance with codes and ordinances adopted by the Town. Inspection and Compliance is responsible for inspecting all new and altered commercial and residential construction within the Town to assess compliance with codes and ordinances adopted by the Town. Development Section Overview Inspection & Compliance 607,969 25% Administration 216,241 9% Planning 966,811 38% Permitting 679,433 28% O&M 463,564 19% Personnel 2,006,890 81% Development and Infrastructure Services (DIS) 2013-2014 Annual Budget Program Budgets129 Mission FY 2013 Highlights FY 2014 Goals and Objectives Highlights & Goals DIS - Development Section We are committed to ensuring harmonious community development and protection of the health and safety of the public in a quality built environment by providing exceptional customer services. Planning: − Experienced a sharp increase in number of development review cases and preliminary inquiries for planned development− Completion of Public Participation Plan for the General Plan Update − Establishment of General Plan Scoping Committee which delivered recommendations on the extent of update needed to the General Plan and best methods for public outreach during the Plan Update − Completed public art inventory for both publicly owned and privately owned art collections in the town – Partnered with Economic Development Division to create interactive public art tour on the Town's website – Completed the spring and fall community academies providing training to Boards, Commissions and town residents – Processed three Major General Plan Amendments – Facilitated 21 neighborhood meetings – Completed draft Development Capability Report addressing Town future development capacity Permitting: − Generated over $1.5 million in revenue for the Town and issued over 1,500 permits − Implemented Senate Bill 1598 (Regulatory Bill of Rights) requirements − Issued more than 200 SFR permits in FY 12/13 which is a +275% increase over FY 11/12 − Provided in-house assistance for Town related projects (e.g. Town Aquatics Center, Archery Range) − Implemented the requirements of the new Building Codes adopted by Council − Provided training for staff to be knowledgeable with the newly adopted 2012 Building Code requirements Inspection & Compliance: − Provided approximately 24,000 field inspections (annually) − Responded to approximately 250 reports & opened approximately 550 zoning violations (annually) − Provided a wide range of construction assistance from infrastructure and grading inspections through final approvals for a multitude of residential and commercial developments and projects. Some of these include the Canyon del Oro High School remodel, Planet Fitness, LA Fitness, HSL Apartments, Securaplane, and major residential construction at Hohokum Mesa − Successfully worked to have the building codes updated to the latest editions and attended both regional & national code development hearings – Responsible for all inspections on the Oro Valley Aquatic Center and in conjunction with other staff members, provided construction management level oversight through successful completion and opening Focus Area: Fiscal Responsibility ■ Manage public resources to maximize productivity ■ Continually work to cross-train staff to allow for greater plan review capacity during heavy submittal periods ■ Provide undiminished inspection & compliance services at existing staff levels regardless of level of need and adjust administratively to make this accommodation Focus Area: Communication ■ Continually improve internal and external communication for development projects ■ Improve consistency of Department messaging to front counter customers ■ Provide up-to-date information on the Town's webpage for items such as applications, checklists, and other resource information for applicants, developers, and/or the general public ■ Complete upgrade of inspection laptops to encompass existing and upgraded software and new codes ■ Enhance the Community Academy program based on participant feedback Focus Area: Economic Development ■ Partner with Economic Development Division in preparing information, analysis and strategies for achieving economic development objectives ■ Provide information on development opportunities in the Town ■ Continually work to streamline and improve the review and permitting process to promote development ■ Work closely with Southern Arizona Arts & Cultural Alliance (SAACA) and other special event coordinators to assure that special events are seamless in process Focus Area: Community Services ■ Provide the highest quality development services through superior customer service in the region ■ Ensure town residents have opportunities to participate in community growth and development cases and issues ■ Work to find a replacement permitting system that allows for greater functionality and technology advances such as web-based applications and electronic submittals to provide better service opportunities for new development ■ Provide inspection and project management assistance as needed for Town-specific projects 2013-2014 Annual Budget Program Budgets130 FY 2012 FY 2013 FY 2014 Actual Estimate Projected Planning►Provide timely and complete Board and Commission packets,100% 100% 95% delivery at least seven days prior to meeting date - Goal 95% ►Provide education and training to Board and Commission members 75% 90% 90% and interested citizens; achieve minimal level of attendance and training of all Board members - Goal 90% - Board members receive eight hours of training ►Substantial progress in completion of adopted Work Plan 25% 50% 85% - Goal 50% per year of total estimated Work Plan effort ►Conservation & Sustainability grant funding received 54,000 33,500 100,000 (may fund other department programs) Permitting ►Percentage of civil, zoning and building plan reviews completed 93% 92% 92% within established timeframes - Goal 90% ►Average calendar days from first civil, zoning and building plan 15 16 16 submittal to first review comments sent to applicants - Goal is 20 days or less ►Average number of consultant submittals from initial application to approval 2.4 2.5 2.5 - Goal is 3.0 or less Inspection & Compliance►Percentage of inspections completed on next business day for 99% 98% 95% requests received by 3:30pm from previous business day - Goal 95% ►Average calendar days from first zoning violation complaint to <2 2 2 investigation 90% of the time - Goal is 2 days or less ►Average calendar days from zoning case inspection to voluntary compliance 5 55 - Goal is 15 days or less ►Average calendar days from zoning case inspection to forced compliance 35 30 30 - Goal is 60 days or less FY 2012 FY 2013 FY 2014 Actual Estimate Projected Planning ►Number of Neighborhood Meetings 21 21 30 ►Number of Major and Minor General Plan (GP) Amendments 3 3 4►Average number of reviews per FTE (Planners)53 62 64►Number of Zoning Code and Town Code text amendments 6 6 5 ►Number of Rezoning / Planned Area Development (PAD) cases 3 33 ►Number of Conceptual Design Review Board (CDRB) submittals 39 45 48 Permitting ►Number of Building Permits Issued 1,125 1,575 1,600 ►Average number of permits processed per FTE (Permit Technician)562.5 786.5 800►Average number of civil, building and zoning reviews per FTE (Plan Examiner)365 590 600 Inspection & Compliance ►Number of civil, building and zoning inspections conducted 13,894 22,800 24,000 ►Number of civil, building and zoning inspections conducted per FTE (Inspector)3,474 5,700 6,000►Number of violations issued (building & zoning)691 625 600 Performance Measures Workload Indicators Measures & Indicators DIS - Development Section 2013-2014 Annual Budget Program Budgets131 FY 2012 FY 2013 FY 2013 FY 2014 Variance Actual Budget Projected Budget to Budget Personnel Director, Dev. & Infrastruc. Svcs 1.00 1.00 1.00 1.00 - Total FTEs 1.00 1.00 1.00 1.00 - FY 2012 FY 2013 FY 2013 FY 2014 Variance Actual Budget Projected Budget to Budget Expenditures Personnel 109,176$ 144,593$ 144,593$ 151,162$ 4.5% Operations & Maintenance 24,052 24,600 24,600 65,079 164.5% Capital 2,017 - - - 0.0% Total Expenditures 135,245$ 169,193$ 169,193$ 216,241$ 27.8% The primary function of the Development & Infrastructure Services Director is to ensure harmonious growth as well as the health, safety, and welfare of the public in the built environment. The director, with support of the Town engineer, division managers, and administrators, provides leadership, direction and support to the department's staff. Responsibilities include: establishing departmental policy; leadership direction and support of the department's staff; preparation and management of the department's operating and capital budget; code interpretation and enforcement; revisions to the Town Code; Council support; Town Manager's Executive Leadership Team; customer service including effective public outreach and communication; and resolution of personnel and legal issues. AdministrationProgram Budgets FY 2013/2014 Expenditure and Staffing Changes Personnel Personnel costs increased 4.5% due to merit increases budgeted for FY 2014. Operations & Maintenance Operations & Maintenance increased 164.5% due to fleet maintenance costs that were previously budgeted in General Administration. 2013-2014 Annual Budget Program Budgets132 FY 2012 FY 2013 FY 2013 FY 2014 Variance Actual Budget Projected Budget to Budget Personnel Division Manager, Planning 1.00 1.00 1.00 1.00 - Conservation & Sustainability Administrator 1.00 1.00 1.00 1.00 - Senior Planner 2.00 2.00 2.00 2.00 - Principal Planner 1.00 1.00 1.00 1.00 - Planner 1.00 1.00 1.00 1.00 - Intern - - 0.30 0.30 0.30 Senior Office Specialist - - - 1.00 1.00 Office Specialist 1.00 1.00 1.00 - (1.00) Total FTEs 7.00 7.00 7.30 7.30 0.30 FY 2012 FY 2013 FY 2013 FY 2014 Variance Actual Budget Projected Budget to Budget Expenditures Personnel 552,090$ 600,937$ 586,165$ 623,871$ 3.8% Operations & Maintenance 86,288 215,005 61,330 342,940 59.5% Capital - - 16,000 - 0.0% Total Expenditures 638,378$ 815,942$ 663,495$ 966,811$ 18.5% The Planning division administers the General Plan and Zoning Code for the harmonious growth of the Town. The division is responsible for providing planning and zoning services to the community, Town Council, Planning and Zoning Commission, Conceptual Design Review Board, Board of Adjustment, and project teams. The division's Work Plan for the next two years will focus on updates to the sign code, zoning code, general plan and associated guidelines and standards. PlanningProgram Budgets FY 2013/2014 Expenditure and Staffing Changes Personnel Personnel costs increased 3.8% to reflect merit increases, a position reclass, and the addition of a part-time Intern. Operations & Maintenance Operations & Maintenance increased 59.5% due to costs budgeted for the Town's General Plan update. 2013-2014 Annual Budget Program Budgets133 FY 2012 FY 2013 FY 2013 FY 2014 Variance Actual Budget Projected Budget to Budget Personnel Division Manager, Permitting 1.00 1.00 1.00 1.00 - Engineering Design Reviewer 1.00 1.00 1.00 1.00 - Plans Examiner II 2.00 2.00 2.00 2.00 - Plans Examiner I 1.00 1.00 1.00 1.00 - Senior Planning Technician - - - 1.00 1.00 Zoning Plans Examiner 1.00 1.00 1.00 - (1.00) Building Permit Technician 2.00 2.00 2.00 2.00 - Office Specialist 0.48 0.48 0.48 0.96 0.48 Total FTEs 8.48 8.48 8.48 8.96 0.48 FY 2012 FY 2013 FY 2013 FY 2014 Variance Actual Budget Projected Budget to Budget Expenditures Personnel 670,347$ 616,821$ 613,865$ 640,283$ 3.8% Operations & Maintenance 30,294 42,015 42,015 39,150 -6.8% Capital - - - - 0.0% Total Expenditures 700,641$ 658,836$ 655,880$ 679,433$ 3.1% The Permitting division coordinates all facets of plan review and permitting for development plans, preliminary and final plats, improvement and grading plans, building plans, walls, pools and spas, signs, miscellaneous structures and equipment for all new or altered residential and commercial construction within the town to assess their compliance with the codes and ordinances adopted by the Town. PermittingProgram Budgets FY 2013/2014 Expenditure and Staffing Changes Personnel Personnel costs increased 3.8% due to merit increases and the addition of a part-time Office Specialist. Operations & Maintenance Operations & Maintenance decreased 6.8% due to reduced outside professional services costs. 2013-2014 Annual Budget Program Budgets134 FY 2012 FY 2013 FY 2013 FY 2014 Variance Actual Budget Projected Budget to Budget Personnel Division Manager, Inspection & Compliance 1.00 1.00 1.00 1.00 - Building Inspector II 4.00 4.00 4.00 4.00 - Code Compliance Specialist 1.00 1.00 1.00 1.00 - Zoning Technician 1.00 1.00 1.00 1.00 - Senior Office Assistant 1.00 1.00 1.00 1.00 - Total FTEs 8.00 8.00 8.00 8.00 - FY 2012 FY 2013 FY 2013 FY 2014 Variance Actual Budget Projected Budget to Budget Expenditures Personnel 560,045$ 577,556$ 571,843$ 591,574$ 2.4% Operations & Maintenance 11,347 18,095 18,229 16,395 -9.4% Capital - 1,200 - - -100.0% Total Expenditures 571,392$ 596,851$ 590,072$ 607,969$ 1.9% The Inspection and Compliance division is responsible for inspecting all new and altered commercial and residential vertical and horizontal construction within the Town to assess their compliance with the codes and ordinances adopted by the Town. The division is also responsible for the monitoring and enforcement of the Zoning, Building and Town codes and ordinances, including all construction, plant salvage, landscape, signage, and development performance standards. Inspection & ComplianceProgram Budgets FY 2013/2014 Expenditure and Staffing Changes Personnel Personnel costs increased 2.4% due to merit increases budgeted for FY 2014. Operations & Maintenance Operations & Maintenance decreased 9.4% due to a reduced budgets for telecommunications and printing & binding. Capital Capital decreased 100% due to minor assets that are not budgeted in FY 2014. 2013-2014 Annual Budget Program Budgets135 FY 2012 FY 2013 FY 2013 FY 2014 Variance Actual Budget Projected Budget to Budget Personnel Facilities Maintenance Crew Leader 1.00 1.00 1.00 1.00 - Facilities Maintenance Technician 1.00 1.00 1.00 1.00 - Civil Engineer 0.20 - - - - Office Specialist - - - 0.15 0.15 Senior Office Assistant 0.15 0.15 0.15 - (0.15) Total FTEs 2.35 2.15 2.15 2.15 - FY 2012 FY 2013 FY 2013 FY 2014 Variance Actual Budget Projected Budget to Budget Expenditures Personnel 138,818$ 117,203$ 117,203$ 129,732$ 10.7% Operations & Maintenance 162,514 182,500 182,500 187,800 2.9% Capital - - - - 0.0% Total Expenditures 301,332$ 299,703$ 299,703$ 317,532$ 5.9% FY 2012 FY 2014 Variance Actual Budget Projected Budget to Budget Other Intergovernmental Revenue -$ -$ 30,000$ 30,000$ 0.0% Total Revenues -$ -$ 30,000$ 30,000$ 0.0% Revenue Sources FY 2013 Facility Maintenance, a program within the Operations Division of the DIS Department, provides building maintenance repairs, minor renovations, project management, contract administration, energy management and HVAC services for the Town's facilities. This program is responsible for the maintenance of 15 Town buildings and structures encompassing approximately 84,900 square feet of building space. Infrastructure Section - Facility Maintenance FY 2013/2014 Expenditure and Staffing Changes Personnel Personnel increased 10.7% due to a position reclass and merits budgeted in FY 2014. Operations & Maintenance Operations & Maintenance increased 2.9% due to increased outside professional services costs. Development & Infrastructure Services (DIS) 2013-2014 Annual Budget Program Budgets136 Mission FY 2013 Highlights FY 2012 FY 2013 FY 2014 Actual Estimate Projected ►Repair expenditures per square foot of buildings maintained $2.65 $2.70 $2.70 ►Percentage of work order requests completed within five business days 88% 85% 85% FY 2012 FY 2013 FY 2014 Actual Estimate Projected ►Number of work order requests completed 850 860 876 ►Number of work order requests completed per FTE 425 430 438 Workload Indicators Performance Measures FY 2014 Goals and Objectives Highlights & Goals Measures & Indicators The Facility Maintenance program is dedicated to providing a safe, healthy and functional working environment for employees and citizens of the Town of Oro Valley to conduct daily business. Facility Maintenance − Completed preventative maintenance inspections and normal maintenance on new solar energy efficient equipment − Installed a backup air conditioner for the Town's IT server room, ensuring protection of Town data and equipment in case of main air conditioning failure − New call director was placed into operation which allows any Town employee to use their computer to directly send requests for facility work which are then converted to work orders Focus Area: Fiscal Responsibility ■ Manage the Facility Maintenance program within approved expenditure limits ■ Ensure that the new solar equipment is functioning at the highest optimal efficiency ■ Continue to improve the preventative maintenance program for all Town Facilities Focus Area: Community Services ■ Maintain a clean, safe environment for public and staff in all buildings ■ Continue to ensure that all cleaning chemicals are environmentally friendly 2013-2014 Annual Budget Program Budgets137 FY 2012 FY 2013 FY 2013 FY 2014 Variance Actual Budget Projected Budget to Budget Personnel Fleet Maintenance Mechanic III 1.00 1.00 1.00 1.00 - Office Specialist - - - 0.15 0.15 Senior Office Assistant 0.35 0.15 0.15 (0.15) Total FTEs 1.35 1.15 1.15 1.15 - FY 2012 FY 2013 FY 2013 FY 2014 Variance Actual Budget Projected Budget to Budget Expenditures Personnel 81,546$ 72,437$ 72,437$ 75,213$ 3.8% Operations & Maintenance 354,725 566,350 566,350 663,750 17.2% Capital - - - 483,000 0.0% Total Expenditures 436,271$ 638,787$ 638,787$ 1,221,963$ 91.3% FY 2012 FY 2014 Variance Actual Budget Projected Budget to Budget Charges for Services 436,271$ 638,787$ 638,787$ 1,282,793$ 100.8% Miscellaneous - - - 20,000 0.0%Total Revenues 436,271$ 638,787$ 638,787$ 1,302,793$ 103.9% Revenue Sources FY 2013 Fleet is set up as an internal service fund under the Operations Division of the DIS Department. Each Town department that maintains a fleet of vehicles and/or heavy equipment contributes to this fund based on their respective fleet size and related costs. Fleet is responsible for replacement, preventative maintenance and repair of the Town's fleet of vehicles and heavy equipment. This is accomplished through the combination of service contracts and staff. To note, the Police Department's ongoing fleet maintenance costs are budgeted directly in the Police Department. Infrastructure Section - Fleet Fund Overview FY 2013/2014 Expenditure and Staffing Changes Personnel Personnel costs increased 3.8% due to a position reclass and merits budgeted in FY 2014. Operations & Maintenance Operations & Maintenance increased 17.2% due to increased fleet costs for Transit. This is a result of the Town's Sun Shuttle service expansion provided via an intergovernmental agreement with the Regional Transportation Authority. Capital Budgeted capital in FY 2014 is for vehicle replacement. Development & Infrastructure Services (DIS) 2013-2014 Annual Budget Program Budgets138 FY 2012 FY 2013 FY 2014 Actual Estimate Projected ►Total cost/mile to operate and maintain light vehicles, not $0.43 $0.46 $0.48 including Police vehicles (repair and fuel only) ►Total cost/hr to operate and maintain heavy vehicles $18.00 $17.00 $17.00 (repair and fuel only) ►Total cost/mile to operate and maintain transit vans $0.67 $0.77 $0.70 (repair and fuel only) FY 2012 FY 2013 FY 2014 Actual Estimate Projected ►Number of vehicles maintained 76 74 74 (not including Police vehicles) ►Number of heavy equipment maintained 52 53 54 ►Number of transit vans maintained 17 18 21 Workload Indicators Performance Measures FY 2014 Goals and ObjectivesFY 2013 Highlights Highlights & Goals Measures & Indicators Fleet Fund − Worked with the Finance Department to develop the 2014 capital replacement schedule for non-PD Town vehicles and heavy equipment − Monitored outside repair shops to ensure scheduled preventative maintenance service and repairs are completed correctly at the lowest cost − Developed a program using the Arizona Department of Corrections (AOC) crew to help Town staff complete maintenance on small fleet equipment and minor repairs on Town equipment and vehicles Focus Area: Fiscal Responsibility ■ Maintain Town vehicles and heavy equipment in excellent condition by scheduling preventative maintenance and repairs ■ Reduce fleet maintenance cost of non-PD vehicle and heavy equipment by completing more repair work and preventative maintenance in-house with existing staff ■ Establish a fleet management task force to develop alternatives for long-term fleet maintenance and repair Focus Area: Communication ■ Develop a Town-wide fleet maintenance committee with the goal of creating a total in-house fleet maintenance program Focus Area: Economic Development ■ Manage the fleet maintenance program within approved expenditure limits 2013-2014 Annual Budget Program Budgets139 FY 2012 FY 2014 Actual Budget Projected Budget 26.24 26.04 25.08 23.08 FY 2012 FY 2014 % Actual Budget Projected Budget to Budget Administration 585,482$ 621,498$ 631,348$ 657,860$ 5.9% Transportation Engineering 1,698,334 1,616,873 1,592,573 1,547,739 -4.3% Pavement Management 113,688 102,051 104,301 111,022 8.8% Street Maintenance 803,014 784,005 784,222 888,033 13.3% Traffic Engineering 557,326 545,402 517,994 516,327 -5.3% 3,757,844$ 3,669,829$ 3,630,438$ 3,720,981$ 1.4% FY 2012 FY 2014 % Actual Budget Projected Budget to Budget Construction Sales Tax 348,378$ 316,890$ 469,344$ 1,077,197$ 239.9% Licenses & Permits 47,514 43,000 51,110 48,000 11.6% State Grants 260,474 260,000 125,000 35,000 -86.5% Charges for Services 15,000 229,493 229,493 129,493 -43.6% HURF Gas Taxes 2,418,605 2,480,005 2,480,005 2,500,000 0.8% Interest 10,810 7,000 7,000 7,000 0.0% Miscellaneous 25,174 10,000 17,683 10,000 0.0% 3,125,955$ 3,346,388$ 3,379,635$ 3,806,690$ 13.8% Total FTEs FY 2013 Expenditures by Program FY 2013 FY 2014 Expenditures by Category Revenue Sources FY 2013 FY 2014 Expenditures by Program The Infrastructure Section is organized into three functional divisions: Engineering, Operations, and Transit. Engineering is responsible for managing the design and construction of roadway projects, issuing right-of-way permits for all activities within the Town's right-of-way, developing annual and long term schedules for surface treatments on town streets, as well as maintaining and operating the town's traffic intersection signals and lights. Operations is responsible for the Stormwater Utility enterprise, maintenance of the town's streets and drainage ways, facilities maintenance including repairs and minor renovations, and fleet maintenance for vehicles and heavy equipment. Infrastructure Section programs supported by the Highway Fund include Administration, Transportation Engineering, Pavement Management, Street Maintenance, and Traffic Engineering. Infrastructure Section - Highway Fund Operations Overview Pavement Management 111,022 3% Street Maintenance 888,033 24% Administration 657,860 18% Traffic Engineering 516,327 14% Transportation Engineering 1,547,739 41% O&M 819,581 22% Personnel 1,814,150 49% Capital 1,087,250 29% Development and Infrastructure Services (DIS) 2013-2014 Annual Budget Program Budgets140 Mission FY 2013 Highlights FY 2014 Goals and Objectives Highlights & Goals DIS - Highway Fund Operations To provide the highest quality services to town residents and internal customers in a transparent and cost effective manner. − Repaired erosion, shoulder road edges, cleared vegetation and swept streets in newly annexed area located west of Oracle Road and north of Ina Road − Coordinated monthly buffelgrass pulls in town rights of way − Constructed a pad for a modular restroom for the Steam Pump Ranch area that included electric, water and sewer connections − Removed and replaced asphalt pavement on Greenock Drive from Oracle Road to Roma Drive − Received and eradicated 37 graffiti incidents − Restriped 50% of crosswalks and stops bars throughout the town − Replaced 132 signs throughout the town − Applied a surface treatment on the Town Hall complex parking lot − Designed and administered the construction of the perimeter wall for the Oro Valley Police Impound yard at the Municipal Operations Center (MOC) − Installed pedestrian count down heads for signalized intersection and an audible alarm for the hearing impaired at Tangerine Road and La Cañada Drive − Installed signs for the Steam Pump Ranch − Repaired the street lights along Rancho Vistoso Boulevard − Engineered and constructed the archery range at Naranja Park − Engineered and constructed traffic calming features in the Campo Bello Subdivision Focus Area: Fiscal Responsibility ■ Maintain a balanced budget ■ Maximize use of outside funding sources including grants, bonds and in-kind support from the Pima County Flood Control District ■ Perform in-house design for minor transportation infrastructure improvement projects Focus Area: Communication ■ Develop an online survey for town residents to be able to comment on how streets and drainage are being managed Focus Area: Economic Development ■ Provide prompt response to graffiti eradication requests ■ Enforce Manual of Uniform Traffic Devices standards in public streets ■ Continue a preventative maintenance program for all town streets, roads and drainageways and expand to plan for needed improvements within proposed annexation areas ■ Maintain roadways and multi-use paths in excellent condition Focus Area: Community Services ■ Partner with Pima Association of Governments (PAG) and Regional Transportation Authority (RTA) to explore and develop transportation alternatives ■ Continue the buffelgrass and fountain grass eradication program ■ Conduct routine monthly traffic signal inspections ■ Perform annual striping of stop bars and crosswalks throughout the town 2013-2014 Annual Budget Program Budgets141 FY 2012 FY 2013 FY 2014 Actual Estimate Projected ►Road rehabilitation expenditures per paved lane mile $28,133 $26,618 $27,000 ►Percentage of completed road rehabilitation paved lane miles 13% 10% 10% ►Overall Condition Index (OCI) rating for paved streets (rating goal >80)76 76 76 ►Re-stripe cross-walks / legends and symbols throughout town 70% 50% 50% ►Street maintenance (crack-seal) lane miles completed 58 67 69 FY 2012 FY 2013 FY 2014 Actual Estimate Projected ►Average Engineering design and construction capital improvement 1 0.75 0.75 projects funded per FTE ►Average Pavement Management capital projects funded per FTE 1.5 1.5 1 ►Number of street maintenance work orders completed 605 621 648 ►Number of street maintenance work orders completed per FTE 67 69 72 Performance Measures Workload Indicators Measures & Indicators DIS - Highway Fund Operations 2013-2014 Annual Budget Program Budgets142 FY 2012 FY 2013 FY 2013 FY 2014 Variance Actual Budget Projected Budget to Budget Personnel Town Engineer 1.00 1.00 1.00 1.00 - Transit Administrator 0.50 0.50 0.50 0.50 - GIS Analyst 0.25 0.25 0.25 0.25 - Administrative Coordinator 1.00 1.00 1.00 1.00 - Total FTEs 2.75 2.75 2.75 2.75 - FY 2012 FY 2013 FY 2013 FY 2014 Variance Actual Budget Projected Budget to Budget Expenditures Personnel 274,665$ 294,601$ 294,601$ 307,129$ 4.3% Operations & Maintenance 310,817 316,897 326,747 350,731 10.7% Capital - 10,000 10,000 - -100.0% Total Expenditures 585,482$ 621,498$ 631,348$ 657,860$ 5.9% Administration is responsible for funding and program implementation, contract management, and obtaining reimbursement of outside funding for projects from Pima Association of Governments (PAG), the Arizona Department of Transportation (ADOT), and the Federal Emergency Management Agency (FEMA). Administrative staff responsibilities include clerical duties, maintaining the Development & Infrastructure Services website, records management, and logistical support. AdministrationProgram Budgets FY 2013/2014 Expenditure and Staffing Changes Personnel Personnel costs increased 4.3% due to merits budgeted in FY 2014. Operations & Maintenance Operations & Maintenance increased 10.7% due to charges from the Fleet Fund for vehicle replacement in FY 2014. 2013-2014 Annual Budget Program Budgets143 FY 2012 FY 2013 FY 2013 FY 2014 Variance Actual Budget Projected Budget to Budget Personnel Engineering Division Manager 0.70 0.70 0.70 0.70 - Senior Civil Engineer 0.50 0.50 0.50 0.50 - Senior Civil Engineer Technician 1.00 1.00 1.00 1.00 - Civil Engineer 0.80 1.00 1.00 1.00 - Civil Engineer/Project Manager 1.00 1.00 1.00 1.00 - Civil Engineer Designer 1.00 1.00 1.00 1.00 - Construction Inspector 1.00 1.00 1.00 - (1.00) Office Specialist 0.48 0.48 0.48 0.48 - Total FTEs 6.48 6.68 6.68 5.68 (1.00) FY 2012 FY 2013 FY 2013 FY 2014 Variance Actual Budget Projected Budget to Budget Expenditures Personnel 514,727$ 564,613$ 564,613$ 518,289$ -8.2% Operations & Maintenance 40,886 39,450 15,150 29,450 -25.3% Capital 1,142,721 1,012,810 1,012,810 1,000,000 -1.3% Total Expenditures 1,698,334$ 1,616,873$ 1,592,573$ 1,547,739$ -4.3% Transportation Engineering is responsible for managing the design and construction of roadway projects. While most large projects are designed by consultants, Development & Infrastructure Services has a small in-house design team for smaller projects. Transportation Engineering provides construction management for all public roadway projects, large and small, as well as issuing permits for all activity within the Town's right-of-way. Transportation EngineeringProgram Budgets FY 2013/2014 Expenditure and Staffing Changes Personnel Personnel costs decreased 8.2% due to an eliminated position. Operations & Maintenance Operations & Maintenance decreased 25.3% due to reduced outside professional services costs. 2013-2014 Annual Budget Program Budgets144 FY 2012 FY 2013 FY 2013 FY 2014 Variance Actual Budget Projected Budget to Budget Personnel Engineering Division Manager 0.10 0.10 0.10 0.10 - Senior Civil Engineer 0.50 0.50 0.50 0.50 - Senior Traffic Technician 1.00 1.00 1.00 1.00 - Traffic Technician 1.00 1.00 1.00 1.00 - Traffic Signs/Markings Crew Leader 1.00 1.00 1.00 1.00 - Sr. Traffic Signs/Markings Worker 1.00 1.00 1.00 - (1.00) Traffic Signs/Markings Worker 1.00 1.00 1.00 1.00 - Office Specialist - - - 0.05 0.05 Senior Office Assistant 0.15 0.05 0.05 - (0.05) Total FTEs 5.75 5.65 5.65 4.65 (1.00) FY 2012 FY 2013 FY 2013 FY 2014 Variance Actual Budget Projected Budget to Budget Expenditures Personnel 394,524$ 406,452$ 406,452$ 318,027$ -21.8% Operations & Maintenance 160,880 136,700 107,740 196,050 43.4% Capital 1,922 2,250 3,802 2,250 0.0% Total Expenditures 557,326$ 545,402$ 517,994$ 516,327$ -5.3% Traffic Engineering Traffic Engineering is responsible for maintaining and operating the town's traffic intersection signals and lights, pavement markings, traffic signage, and conducting and reviewing traffic studies. Program Budgets FY 2013/2014 Expenditure and Staffing Changes Personnel Personnel costs decreased 21.8% due to an eliminated position. Operations & Maintenance Operations & Maintenance increased 43.4% due to an increase in outside professional services costs for roadway striping. 2013-2014 Annual Budget Program Budgets145 FY 2012 FY 2013 FY 2013 FY 2014 Variance Actual Budget Projected Budget to Budget Personnel Engineering Division Manager 0.20 0.20 0.20 0.20 - Senior Civil Engineering Technician - - - 1.00 1.00 Pavement Management Specialist 1.00 1.00 1.00 - (1.00) Total FTEs 1.20 1.20 1.20 1.20 - FY 2012 FY 2013 FY 2013 FY 2014 Variance Actual Budget Projected Budget to Budget Expenditures Personnel 112,130$ 100,801$ 100,801$ 107,772$ 6.9% Operations & Maintenance 1,558 1,250 3,500 3,250 160.0% Capital - - - - 0.0% Total Expenditures 113,688$ 102,051$ 104,301$ 111,022$ 8.8% Pavement Management Pavement Management is responsible for operating the pavement management system and developing annual and long term schedules for surface treatments on town roadways. Program Budgets FY 2013/2014 Expenditure and Staffing Changes Personnel Personnel costs increased 6.9% due to a position reclass and merits budgeted in FY 2014. Operations & Maintenance Operations & Maintenance increased 160% due to increases in travel & training costs. 2013-2014 Annual Budget Program Budgets146 FY 2012 FY 2013 FY 2013 FY 2014 Variance Actual Budget Projected Budget to Budget Personnel Operations Division Manager 0.75 0.75 0.75 0.75 - Streets & Drainage Sr. Crew Leader 1.00 1.00 1.00 1.00 - Streets & Drainage Crew Leader 2.00 2.00 2.00 2.00 - Heavy Equipment Operator III 1.00 1.00 - 2.00 1.00 Heavy Equipment Operator II 4.00 4.00 5.00 3.00 (1.00) Heavy Equipment Operator I 0.96 0.96 - - (0.96) Office Specialist - - - 0.05 0.05 Senior Office Assistant 0.35 0.05 0.05 - (0.05) Total FTEs 10.06 9.76 8.80 8.80 (0.96) FY 2012 FY 2013 FY 2013 FY 2014 Variance Actual Budget Projected Budget to Budget Expenditures Personnel 569,994$ 565,405$ 545,622$ 562,933$ -0.4% Operations & Maintenance 233,020 218,600 238,600 240,100 9.8% Capital - - - 85,000 0.0% Total Expenditures 803,014$ 784,005$ 784,222$ 888,033$ 13.3% Street Maintenance Street Maintenance is responsible for maintaining the town's streets and drainageways. Program Budgets FY 2013/2014 Expenditure and Staffing Changes Personnel One Heavy Equipment Operator II has been reclassed to III, a Senior Office Assistant has been reclassed to an Office Specialist, and the Heavy Equipment Operator I position has been eliminated. Operations & Maintenance Operations & Maintenance increased 9.8% due to contracted services and increased field supplies costs. Capital Budgeted capital is for replacement of a crack seal unit. 2013-2014 Annual Budget Program Budgets147 FY 2012 FY 2013 FY 2013 FY 2014 Variance Actual Budget Projected Budget to Budget Personnel Stormwater Engineer 1.00 1.00 1.00 1.00 - Operations Division Manager 0.25 0.25 0.25 0.25 - Civil Engineer 1.00 1.00 1.00 1.00 - Civil Engineering Technician 1.00 1.00 1.00 1.00 - GIS Analyst 0.25 0.25 0.25 0.25 - Office Specialist - - - 0.60 0.60 Senior Office Assistant - 0.60 0.60 - (0.60) Total FTEs 3.50 4.10 4.10 4.10 - FY 2012 FY 2013 FY 2013 FY 2014 Variance Actual Budget Projected Budget to Budget Expenditures Personnel 271,933$ 304,200$ 304,200$ 319,843$ 5.1% Operations & Maintenance 238,609 564,249 564,926 427,983 -24.1% Capital 144,823 697,000 72,025 586,550 -15.8% Total Expenditures 655,365$ 1,565,449$ 941,151$ 1,334,376$ -14.8% Does not include contingency or non-cash outlays for depreciation FY 2012 FY 2014 Variance Actual Budget Projected Budget to Budget Federal Grants 1,993$ 67,800$ 7,867$ -$ -100.0% State Grants 38,331 450,000 - 450,000 0.0% Charges for Services 752,212 761,500 762,600 771,500 1.3% Miscellaneous 131 20,000 20,140 - 0.0% Interest 321 500 4,800 500 0.0% Total Revenues 792,988$ 1,299,800$ 795,407$ 1,222,000$ -6.0% Revenue Sources FY 2013 The Stormwater Utility enterprise is managed through the Development & Infrastructure Services Operations Division. The Stormwater Utility is responsible for meeting all quality and quantity issues including the Town's Stormwater Management Plan, Floodplain and Erosion Hazard Management, and supporting all other Town programs that are impacted by storm events. The Stormwater Utility also coordinates with federal, state and local government agencies with regard to floodplain issues. Infrastructure Section - Stormwater Utility Overview Development & Infrastructure Services (DIS) FY 2013/2014 Expenditure and Staffing Changes Personnel Personnel costs increased 5.1% due to a position reclass and merits budgeted in FY 2014. Operations & Maintenance Operations & Maintenance decreased 24.1% due to contract labor savings for drainage channel vegetation maintenance. Work is now being performed under contract with the Arizona Department of Corrections. Capital Capital decreased 15.8% due to capacity for an equipment purchase in FY 2013. 2013-2014 Annual Budget Program Budgets148 Mission FY 2012 FY 2013 FY 2014 Actual Estimate Projected ►Number of reduced/mitigated drainage problem areas ("hot spots") 5 7 3 ►Number of outreach events held 5 4 4 FY 2012 FY 2013 FY 2014 Actual Estimate Projected ►Number of stormwater outfall structures inspected once per year 135 152 170 ►Number of mosquito traps set for testing West Nile virus 160 50 88 ►Number of Town-owned property pollutant sources reported, investigated 0 00 and mitigated FY 2014 Goals and Objectives Workload Indicators Performance Measures FY 2013 Highlights Highlights & Goals Measures & Indicators Stormwater Utility We will provide safe and efficient management of the Stormwater Utility to promote and protect life and safety, water quality, and the Town's working and natural environment before, during, and after the occurrence of storm events in accordance with all Town codes, standards, and policies. − Secured regional funding for stormwater repair projects at five various locations (sediment removal & erosion control projects) − Improved the bill collection process − Eliminated seven stormwater "hot spots" throughout the town − Improved customer service and support to owners of private stormwater management facilities throughout the town – Provided cleanup service to town areas affected by significant monsoon events Focus Area: Fiscal Responsibility ■ Continue to secure regional, state and federal funding for Stormwater Utility projects ■ Continue to improve the bill collection process to minimize the Utility's bad debt ratio Focus Area: Communication ■ Continue with the development of a Stormwater "Good Housekeeping" training program for Town Staff ■ Continue to improve support and customer service to owners of private stormwater management facilities throughout the town Focus Area: Economic Development ■ Continue to work with Stormwater Commission to ensure stormwater deliverables are being reached with current stormwater fee structure Focus Area: Community Services ■ Continue to eliminate stormwater "hot spots" with targeted floodplain studies and capital projects ■ Work with the Stormwater Commission to consider adjusting the Stormwater Utility fee to provide a funding mechanism for drainage infrastructure projects 2013-2014 Annual Budget Program Budgets149 FY 2012 FY 2013 FY 2013 FY 2014 Variance Actual Budget Projected Budget to Budget Personnel Transit Services Administrator 0.50 0.50 0.50 0.50 - Dispatcher 2.11 2.11 2.11 2.11 - Lead Transit Driver 1.00 1.00 1.00 1.00 - Driver 10.89 10.89 15.39 15.39 4.50 Office Assistant 0.96 0.96 0.96 0.96 - Total FTEs 15.46 15.46 19.96 19.96 4.50 FY 2012 FY 2013 FY 2013 FY 2014 Variance Actual Budget Projected Budget to Budget Expenditures Personnel 498,490$ 605,720$ 605,720$ 762,075$ 25.8% Operations & Maintenance 74,337 246,800 315,758 376,000 52.4% Capital 14,871 410,706 49,200 105,500 -74.3% Total Expenditures 587,698$ 1,263,226$ 970,678$ 1,243,575$ -1.6% FY 2012 FY 2014 Variance Actual Budget Projected Budget to Budget RTA Reimbursement 437,458$ 789,042$ 858,000$ 1,032,000$ 30.8% Fare Box 49,977 34,765 58,000 54,000 55.3% Federal Grants - 300,000 - - -100.0% Miscellaneous - 9,000 - - -100.0% Total Revenues 487,435$ 1,132,807$ 916,000$ 1,086,000$ -4.1% Revenue Sources FY 2013 Transit Services facilitates partnerships and coordinates transportation services among public and private agencies serving Oro Valley to improve mobility for community residents. Transit Services has developed a long-term partnership with the Regional Transportation Authority (RTA) to improve the transportation network and maximize transportation options available to the community at the lowest possible cost. Transit Services is proud to operate the regional Sun Shuttle Dial-a-Ride service under contract with the RTA. We are committed to providing high quality transit alternatives and planning for the future. Infrastructure Section - Transit Services Overview Development & Infrastructure Services FY 2013/2014 Expenditure and Staffing Changes Personnel Personnel costs increased 25.8% due to additional drivers and merits budgeted in FY 2014. Operations & Maintenance Operations & Maintenance increased 52.4% due to increased fleet costs related to the continued expansion of the Sun Shuttle service. Capital Capital decreased 74.3% due to capacity budgeted in FY 2013 for a vehicle grant. 2013-2014 Annual Budget Program Budgets150 Mission FY 2013 Highlights FY 2012 FY 2013 FY 2014 Actual Estimate Projected ►Total cost per passenger trip $36.57 $32.49 $34.03 ►Percentage of requested reservations fulfilled 100% 100% 100% FY 2012 FY 2013 FY 2014 Actual Estimate Projected ►Number of registered riders 1,536 1,879 2,229 ►Average monthly passenger trips 1,677 2,567 2,750 Workload Indicators FY 2014 Goals and Objectives Performance Measures Highlights & Goals Measures & Indicators Transit Services Provide enhanced mobility to all Oro Valley residents. Focus Area: Fiscal Responsibility ■ Maintain a balanced budget ■  Continue to manage the Intergovernmental Agreement with the Regional Transportation Authority (RTA) to provide funding for transit-related projects Focus Area: Communication ■ Develop a team environment that is supportive and goal oriented in order to achieve excellence in transit service ■ Maintain staffing levels and quality to provide excellent customer service and meet growing transit demands Focus Area: Economic Development ■ Increase awareness of alternate mode of access to shopping, medical, job and other economic generators ■ Continue to work with the RTA to develop alternatives to providing services supporting the growing demand for transit within the area Focus Area: Community Services ■ Encourage the use of transit service through continual improvement − Sun Shuttle Dial-a-Ride celebrated its first year of service as a partnership with the Regional Transportation Authority (RTA) Service − Exceeded previous daily boardings by scheduling 182 passenger trips and delivered 166 on one day − During the month of April, Transit operated over 35,000 miles and offered over 2,432 hours of service − Record ridership month in April of 3,307 − Fiscal year ridership exceeded 30,000 passenger trips − The RTA and the Town entered into a five year Intergovernmental Agreement continuing the partnership to sustain the Sun Shuttle Dial-a-Ride service 2013-2014 Annual Budget Program Budgets151 FY 2012 FY 2013 FY 2013 FY 2014 Variance Actual Budget Projected Budget to Budget Expenditures Operations & Maintenance -$ -$ -$ -$ 0.0% Capital 4,886,385 6,154,000 4,760,000 3,380,000 -45.1% Debt Service 2,615,467 - - - 0.0% Total Expenditures 7,501,852$ 6,154,000$ 4,760,000$ 3,380,000$ -45.1% FY 2012 FY 2014 Variance Actual Budget Projected Budget to Budget Federal Grants -$ 699,000$ -$ 500,000$ -28.5% State Grants 6,944,437 5,280,000 4,722,000 3,150,000 -40.3% Development Impact Fees 238,733 414,118 672,940 791,375 91.1% Interest 1,534 1,600 19,500 1,500 -6.3% Miscellaneous 49,598 18,000 18,000 18,000 0.0% Total Revenues 7,234,302$ 6,412,718$ 5,432,440$ 4,460,875$ -30.4% Revenue Sources FY 2013 This Fund is used to manage all roadway Capital Improvement Projects (CIP) from the planning stage through design and construction. This process includes consultant selection and preparation of the Request for Proposal (RFP) process, review of traffic control plans, and contract administration. This fund is managed by Development & Infrastructure Services staff. Roadway Development Impact Fee Fund Overview FY 2013/2014 Expenditure Changes Capital Capital decreased 45.1% due to the Lambert Lane widening project, which will be completed in the summer of 2013. Development & Infrastructure Services (DIS) 2013-2014 Annual Budget Program Budgets152 FY 2013 Highlights FY 2012 FY 2013 FY 2014 Actual Estimate Projected ►Capital improvement projects funding from the planning stage through 2 5 6 design and construction managed by staff FY 2014 Goals and Objectives Performance Measures Highlights, Goals & Measures Roadway Dev Impact Fee Fund – Completed the construction on the Lambert Lane Widening Project – Completed the design on the Cañada del Oro Shared Use Path project – Commenced the Sign Inventory project Focus Area: Fiscal Responsibility ■ Develop an Infrastructure Improvement Plan and evaluate the use of impact fees in accordance with state statute ■ Continue securing regional, state and federal funding for roadway corridor projects that qualify for state and federal funds by participating in Pima Association of Governments (PAG) and Regional Transportation Authority (RTA) regional functions Focus Area: Economic Development ■ Partner with the regional jurisdictions and PAG to secure funds in the 2015 - 2019 Transportation Improvement Program (TIP) for Tangerine Rd., Naranja Dr. and Lambert Lane Phase II ■ Partner with Pima County to start construction of the Magee Road Project - Phase III, La Cañada Dr. to Oracle Rd. in the fall of 2013 ■ Partner with Marana and Pima County on the final design of the Tangerine Rd. Project - La Cañada Dr. to Twin Peaks ■ Advertise and start construction in late summer 2013 for the Cañada del Oro Shared Use Path Project - First Ave. to Steam Pump Village Focus Area: Community Services ■ Complete the design of the Naranja Dr. Project - La Cholla Blvd. to Shannon Rd. in spring 2014 and have the project ready for construction in the summer of 2014 ■ Design and construct a traffic signal at Rancho Vistoso & Vistoso Highland ■ Complete the design and construction of the Rancho Vistoso Sidewalk Project - Vistoso Highland to Morning Vista Drive 2013-2014 Annual Budget Program Budgets153 FY 2012 FY 2013 FY 2013 FY 2014 Variance Actual Budget Projected Budget to Budget Personnel Finance Director 1.00 1.00 1.00 1.00 - Procurement Administrator 1.00 1.00 1.00 1.00 - Accounting Supervisor 1.00 1.00 1.00 1.00 - Budget & Management Analyst 1.00 1.00 1.00 1.00 - Finance Analyst 1.00 1.00 - - (1.00) Senior Accountant 1.00 1.00 1.00 1.00 - Payroll Specialist - - 1.00 1.00 1.00 Accounting Clerk 1.00 1.00 1.00 1.00 - Total FTEs 7.00 7.00 7.00 7.00 - FY 2012 FY 2013 FY 2013 FY 2014 Variance Actual Budget Projected Budget to Budget Expenditures Personnel 609,261$ 639,481$ 621,603$ 641,542$ 0.3% Operations & Maintenance 99,460 104,630 102,797 67,700 -35.3% Capital - - 1,833 - 0.0% Total Expenditures 708,721$ 744,111$ 726,233$ 709,242$ -4.7% FY 2012 FY 2014 Variance Actual Budget Projected Budget to Budget Sales Tax Audit Recovery Fees 117,059$ 100,000$ 8,000$ -$ -100.0% Total Revenues 117,059$ 100,000$ 8,000$ -$ -100.0% Revenue Sources FY 2013 The Finance Department is responsible for Town financial activities, including accounting, payroll and accounts payable processing, budget development, coordination and analysis, financial statement preparation, audit coordination, debt management, managerial reporting, sales tax compliance, and participation in a variety of other administrative and special projects. The Department also coordinates the development of the Town’s Capital Improvement Program, assists with the Town’s risk management program and provides procurement administration for the Town. Finance Overview FY 2013/2014 Expenditure and Staffing Changes Personnel The Finance Analyst position has been replaced with a Payroll Specialist. Operations & Maintenance Operations & Maintenance decreased 35.3% due to a discontinued contract for sales tax audit services. 2013-2014 Annual Budget Program Budgets154 FY 2013 Highlights Mission FY 2014 Goals and Objectives Highlights & Goals Finance The Finance Department is dedicated to protecting the financial integrity of the Town of Oro Valley by providing timely, accurate and relevant financial data to support informed decision-making for both internal and external customers of the Town. The Finance Department encourages and promotes learning and growth in the individual employee, the Finance Team and the organization as a whole. − Received the Achievement of Excellence in Procurement Award for the 5th consecutive year − Surplus auctions generated over $175K in revenue − Formal bid process resulted in average savings of approximately $88,000 per contract award − Received Certificate of Achievement for Financial Reporting Excellence for FY 2011/12 from Government Finance Officers Association (GFOA) for the 19th consecutive year − Received Distinguished Budget Presentation Award from GFOA for the 5th consecutive year − Received first ever Popular Annual Financial Reporting (PAFR) Award from the GFOA for FY 2011/12 − Received an unqualified "clean" audit opinion for FY 2011/12 financial statements − Completed the issuance of Town of Oro Valley Excise Tax Refunding Obligations, Series 2013, resulting in net present value savings of nearly $460,000 − Assisted with successful annexation known as the Oracle/Ina Annexation area − Expanded capital improvement program (CIP) to a 15-year program − Initiated development impact fee update study − Participated in successful transition of the Oro Valley Public Library to Pima County − Participated in successful transition to self-funded plan for medical insurance coverage for FY 2012/13 Focus Area: Fiscal Responsibility ■ Evaluate opportunities to diversify revenues and ensure collection of established taxes, fees, rates and fines ■ Evaluate the use of updated impact fees in accordance with state statute ■ Prepare fiscal impact analyses of potential annexation areas ■ Prepare annual 5-year forecast of revenues and expenditures Focus Area: Communication ■ Prepare timely and accurate financial and budgetary performance reports ■ Prepare award-winning Popular Annual Financial Report (PAFR), Annual Budget and Comprehensive Annual Financial Report (CAFR) ■ Participate in public outreach efforts to enhance community knowledge and understanding of Town budget Focus Area: Economic Development ■ Participate in evaluating the feasibility of public-private partnerships and assist in creating funding strategies Focus Area: Community Services ■ Prepare funding strategy for development of Naranja Park ■ Initiate replacement of Town phone system ■ Initiate replacement of Town permitting system ■ Initiate Town-wide upgrade to current version of Microsoft Office 2013-2014 Annual Budget Program Budgets155 FY 2012 FY 2013 FY 2014 Actual Estimate Projected ►Number of months during fiscal year in which posting, balancing, and 12 12 12 closing of each month's financial transactions were completed by 10th working day of following month ►Consecutive years awarded the Government Finance Officers 19 20 21 Association Certificate of Achievement for Excellence in Financial Reporting ►Consecutive years awarded the Government Finance Officers 4 5 6 Association Distinguished Budget Award ►Percentage variance between mid-year revenue 1.9% 1.1% 2.0% forecast and actual fiscal year-end revenue for all tax-based funds ►Percentage of internal customers rating Procurement quality as 100% 92% 95% excellent or good ►Percentage of internal customers rating Procurement timeliness as 100% 100% 95% excellent or good ►Standard and Poor's (S&P) and Fitch bond ratings AA- S&P AA- Fitch AA S&P AA- Fitch AA S&P AA- Fitch FY 2012 FY 2013 FY 2014 Actual Estimate Projected ►Number of Procurement protests filed and sustained 0 0 0 ►Number of cooperative purchasing agreements utilized with other >50 >50 >50 governmental jurisdictions ►Number of Accounts Payable checks processed 5,100 4,800 4,900 ►Number of invoices paid 13,300 12,500 12,800 Performance Measures Workload Indicators Measures & Indicators Finance 2013-2014 Annual Budget Program Budgets156 FY 2012 FY 2013 FY 2013 FY 2014 Variance Actual Budget Projected Budget to Budget Expenditures Operations & Maintenance 1,704,972$ 1,829,094$ 1,821,394$ 1,957,730$ 7.0% Capital 11,565 30,000 10,000 80,000 166.7% Contingency - - 2,100,000 - 0.0% Other Financing Uses 185,240 1,045,324 1,345,324 162,729 -84.4% Total Expenditures 1,901,777$ 2,904,418$ 5,276,718$ 2,200,459$ -24.2% The General Administration budget accounts for certain overhead costs such as utility expenses and general liability insurance. It also allocates monetary transfers to subsidize various funds, i.e. debt service and capital projects. General Administration Overview FY 2013/2014 Expenditure Changes Operations & Maintenance Operations and Maintenance increased 7% due to increased insurance and outside professional services costs, as well as growth in retail sales tax rebates. Capital Capital increased 166.7% for Town Hall campus security upgrades budgeted in FY 2014. Other Financing Uses Other Financing Uses decreased 84.4% due to a one-time transfer out to the Aquatic Center Project Fund budgeted in FY 2013 for construction of an expanded Town aquatic facility. 2013-2014 Annual Budget Program Budgets157 FY 2012 FY 2013 FY 2013 FY 2014 Variance Actual Budget Projected Budget to Budget Personnel Human Resource Director 1.00 1.00 1.00 1.00 - Employee & Org. Dev. Analyst 1.00 1.00 1.00 1.00 - Human Resource Specialist 2.00 2.00 2.00 2.00 - Safety & Risk Manager 1.00 1.00 1.00 1.00 - Total FTEs 5.00 5.00 5.00 5.00 - FY 2012 FY 2013 FY 2013 FY 2014 Variance Actual Budget Projected Budget to Budget Expenditures Personnel 404,090$ 427,506$ 395,457$ 424,091$ -0.8% Operations & Maintenance 62,521 68,650 68,650 99,730 45.3% Capital - - - - 0.0% Total Expenditures 466,611$ 496,156$ 464,107$ 523,821$ 5.6% The Human Resources Department provides services and support in the following areas: policy and procedure administration and compliance, compensation and benefits, training and education, performance management, employee and labor relations, and safety and risk management assistance. Human Resources Overview FY 2013/2014 Expenditure and Staffing Changes Operations & Maintenance Operations & Maintenance increased 45.3% for a salary market survey to be conducted in FY 2014. 2013-2014 Annual Budget Program Budgets158 FY 2013 Highlights Mission FY 2014 Goals and Objectives Highlights & Goals Human Resources To provide expert support to the Town of Oro Valley through innovative and effective human resource management action to include recruiting and retaining highly qualified employees, offering and administering cost effective benefit solutions, delivering effective employee and organizational development programs; reducing the Town's exposure to risk; creating a safe place for employees to work; promoting mutual respect of employees; implementing policies, procedures, and programs that optimize employee engagement. − Provided new employee and management development and training opportunities − Transitioned the employee medical plan from a fully insured plan to self-insured plan − Implemented mandatory sexual harassment prevention training to all Town employees − Led the Town's Wellness Initiative and increased employee participation in biometric screening, mammograms, and weight loss and exercise programs − Updated the employee recognition program − Produce a job (task) based phone list − Initiated the new customer service training module −Chose to keep United Healthcare as the Town's partner in delivering cost effective medical insurance − Enhanced Open Enrollment procedures by teaming with IT to install computers in Council Chambers during enrollment meetings Focus Area: Communication ■ Initiate a Town-wide customer service training module for all employees ■ Explore opportunities for expanded service hours to enable customers to conduct business with the Town outside of traditional business hours ■ Develop information resources to help employees more efficiently identify solutions to residents’ questions Focus Area: Community Services ■ Enhance the current employee recognition program as recommended by employees ■ Conduct supervisory training as it relates to employee engagement, development and performance management ■ Expand the number of on-site training opportunities to enhance employee professional development ■ Evaluate the benefits package offered to employees ■ Conduct stay interviews with all new employees after 30 days of employment ■ Conduct exit interviews to assess the reasons for separation and report separations on a monthly basis ■ Conduct a market study of the Town’s benchmark classifications and make necessary pay grade adjustments as needed and based on fiscal resources ■ Evaluate methods for determining employee engagement ■ Reduce the number of traffic accidents involving Town vehicles ■ Increase employee participation in Wellness initiatives ■ Increase health coach hours per week 2013-2014 Annual Budget Program Budgets159 FY 2012 FY 2013 FY 2014 Actual Estimate Projected ►Percentage of employee turnover - Full Time 12% 15% 12% ►Percentage of employee turnover - Part Time (new measure in 2013)40% 40% ►Number of employees attending HR sponsored training events N/A 523 300 (new measure in 2013) ►Biometric Testing Participation 94 104 120 FY 2012 FY 2013 FY 2014 Actual Estimate Projected ►Number of job applications received 1,382 1,850 1,850 ►Number of job interviews conducted 280 350 350 ►Number of new hires (includes seasonal and part-time employees)73 116 116 ►Number of workers compensation claims 33 35 38 ►Number of Training Classes Offered (new for 2013)N/A 82 75 ►Number of Liability Claims submitted (new 2013)N/A 116 100 Performance Measures Workload Indicators Measures & Indicators Human Resources 2013-2014 Annual Budget Program Budgets160 FY 2012 FY 2014 Actual Budget Projected Budget 6.50 6.50 6.50 6.50 FY 2012 FY 2014 % Actual Budget Projected Budget to Budget Administration 382,303$ 397,405$ 397,405$ 600,184$ 51.0% GIS Services 128,330 122,625 122,625 132,091 7.7% Technical Services 374,446 360,615 360,615 330,354 -8.4% Business Applications & Development 171,413 180,338 180,338 180,594 0.1% Telecommunications 125,899 152,650 152,650 238,950 56.5% 1,182,391$ 1,213,633$ 1,213,633$ 1,482,173$ 22.1% FY 2014 Expenditures by CategoryFY 2014 Expenditures by Program FY 2013 FY 2013 Expenditures by Program Area Total FTEs The mission of the Information Technology (IT) Department is to effectively deploy and manage information services and telecommunications technologies and to assist Town departments individually and collectively in achieving their business goals. Information Technology Overview Administration 600,184 41% GIS Services 132,091 9% Technical Services 330,354 22% Business Appl & Dev 180,594 12% Telecom 238,950 16% Personnel 582,834 39% O&M 572,939 39% Capital 326,400 22% 2013-2014 Annual Budget Program Budgets161 Mission FY 2013 Highlights FY 2012 FY 2013 FY 2014 Actual Estimate Projected ►Percentage of network and desktop device moves, additions, or changes 100% 100% 100% completed when scheduled ►Percentage of Help Desk calls resolved at time of call 45% 50% 55% ►Percentage of Help Desk calls resolved within 4 hours of call 70% 60% 75% ►Percentage of Help Desk calls resolved within 8 hours of call 70% 60% 75% FY 2012 FY 2013 FY 2014 Actual Estimate Projected ►Number of vendor applications supported 56 60 65 ►Number of custom applications supported 16 16 16 ►Number of Telecommunications service requests received 57 120 90 ►Number of Help Desk requests received 1,421 3,000 2,700 Workload Indicators FY 2014 Goals and Objectives Performance Measures Highlights & Goals Measures & Indicators Information Technology The Information Technology department is dedicated to providing the vision and leadership that will enable the Town of Oro Valley to improve public service by delivery of effective information technology products. − Successful implementation of all voice, data, WiFi and multimedia technologies at the new Oro Valley Aquatic Center − Assisted with redesign of the Town’s website − Expanded capabilities of the Constant Contact email subscription service for constituents − Successfully migrated the Town Library infrastructure off the Town’s network to the Pima County network − Upgraded the Granicus Managed Services (for Council meetings) to the Open Platform service which expanded video access beyond Windows based users − Upgraded the Tyler MUNIS Enterprise Resource Planning system − Added redundant cooling capability to the Town’s Data Center − Extended network access to greatly facilitate the wireless bar code inventory of metering equipment for the Water Department Focus Area: Fiscal Responsibility ■ Look for ways in which technologies can be consolidated to eliminate redundancy, yield more efficient operations and provide the potential to reduce total cost of operations ■ Realize economies of scale by sharing or collocating technology services with surrounding municipalities Focus Area: Communication ■ Replace the Town’s current phone system with Voice over Internet Protocol (VOIP) or similar technology ■ Expand network bandwidth for the Police Department substations and between the Police Department and the Pima County Sheriff’s Office Focus Area: Economic Development ■ Replace the Town’s aging Permits Plus permitting system ■ Utilize all technology services, specifically GIS mapping to provide crucial parcel and land use information to assist developers as they plan to locate services in the town Focus Area: Community Services ■ Online application, renewal and payment of business licenses ■ Upgrade the transit scheduling software 2013-2014 Annual Budget Program Budgets162 Information TechnologyOrganizational Chart GIS SERVICES TECHNICAL SERVICES BUSINESS APPLICATION & DEVELOPMENT TELECOMMUNICATIONS ADMINISTRATION INFORMATION TECHNOLOGY DIRECTOR 2013-2014 Annual Budget Program Budgets163 FY 2012 FY 2013 FY 2013 FY 2014 Variance Actual Budget Projected Budget to Budget Personnel Information Technology Director 1.00 1.00 1.00 1.00 - Total FTEs 1.00 1.00 1.00 1.00 - FY 2012 FY 2013 FY 2013 FY 2014 Variance Actual Budget Projected Budget to Budget Expenditures Personnel 121,785$ 124,430$ 124,430$ 129,145$ 3.8% Operations & Maintenance 260,518 272,975 272,975 321,039 17.6% Capital - - - 150,000 0.0% Total Expenditures 382,303$ 397,405$ 397,405$ 600,184$ 51.0% The Administration program manages all of Information Technology's logistics including procurements, budget information and operations, and management and oversight. Information TechnologyProgram Budgets FY 2013/2014 Expenditure and Staffing Changes Personnel Personnel costs increased 3.8% due to merits budgeted in FY 2014. Operations & Maintenance Operations & Maintenance increased 17.6% due to software maintenance and licensing costs. Capital Budgeted capital in FY 2014 represents initial costs for a replacement development permitting system (costs shared with Oro Valley Water Utility and Stormwater Utility). 2013-2014 Annual Budget Program Budgets164 FY 2012 FY 2013 FY 2013 FY 2014 Variance Actual Budget Projected Budget to Budget Personnel GIS Analyst 1.50 1.50 1.50 1.50 - Total FTEs 1.50 1.50 1.50 1.50 - FY 2012 FY 2013 FY 2013 FY 2014 Variance Actual Budget Projected Budget to Budget Expenditures Personnel 124,815$ 116,175$ 116,175$ 121,441$ 4.5% Operations & Maintenance 3,515 6,450 6,450 10,650 65.1% Capital - - - - 0.0% Total Expenditures 128,330$ 122,625$ 122,625$ 132,091$ 7.7% The GIS Services program is responsible for providing complete, accurate and current Geographic Information System maps, analysis, proposals, and presentations to support the operations used by each department. Information TechnologyProgram Budgets FY 2013/2014 Expenditure and Staffing Changes Personnel Personnel costs increased 4.5% due to merits budgeted in FY 2014. Operations & Maintenance Operations & Maintenance increased 65.1% due to an increase in outside professional services costs. 2013-2014 Annual Budget Program Budgets165 FY 2012 FY 2013 FY 2013 FY 2014 Variance Actual Budget Projected Budget to Budget Personnel Network Administrator 1.00 1.00 1.00 1.00 - IT Technician 1.00 1.00 1.00 1.00 - Total FTEs 2.00 2.00 2.00 2.00 - FY 2012 FY 2013 FY 2013 FY 2014 Variance Actual Budget Projected Budget to Budget Expenditures Personnel 157,333$ 159,365$ 159,365$ 163,904$ 2.8% Operations & Maintenance 43,297 50,250 50,250 40,050 -20.3% Capital 173,816 151,000 151,000 126,400 -16.3% Total Expenditures 374,446$ 360,615$ 360,615$ 330,354$ -8.4% The Technical Services program provides management and security of the Town's computer networks, desktop and network technology acquisition, support, and training. Information TechnologyProgram Budgets FY 2013/2014 Expenditure and Staffing Changes Personnel Personnel costs increased 2.8% due to merits budgeted in FY 2014. Operations & Maintenance Operations & Maintenance decreased 20.3% due to a decrease in equipment repair & maintenance costs. Capital Capital decreased 16.3% due to Police mobile data computers budgeted in FY 2013 that will be expended in the Police Department for FY 2014. 2013-2014 Annual Budget Program Budgets166 FY 2012 FY 2013 FY 2013 FY 2014 Variance Actual Budget Projected Budget to Budget Personnel Systems Analyst 1.00 1.00 1.00 1.00 - Database Analyst 1.00 1.00 1.00 1.00 - Total FTEs 2.00 2.00 2.00 2.00 - FY 2012 FY 2013 FY 2013 FY 2014 Variance Actual Budget Projected Budget to Budget Expenditures Personnel 157,619$ 161,088$ 161,088$ 168,344$ 4.5% Operations & Maintenance 13,794 19,250 19,250 12,250 -36.4% Capital - - - - 0.0% Total Expenditures 171,413$ 180,338$ 180,338$ 180,594$ 0.1% Information Technology The Business Application & Development program is responsible for application development and support, database management, project management, website support, and development of Electronic Government (E- Gov) and future E-commerce applications. Program Budgets FY 2013/2014 Expenditure and Staffing Changes Personnel Personnel costs increased 4.5% due to merits budgeted in FY 2014. Operations & Maintenance Operations & Maintenance decreased 36.4% due to a decrease in outside professional services costs. 2013-2014 Annual Budget Program Budgets167 FY 2012 FY 2013 FY 2013 FY 2014 Variance Actual Budget Projected Budget to Budget Expenditures Operations & Maintenance 125,899$ 152,650$ 152,650$ 188,950$ 23.8% Capital - - - 50,000 0.0% Total Expenditures 125,899$ 152,650$ 152,650$ 238,950$ 56.5% Information Technology The Telecommunications program is responsible for the management of all voice and data systems including the Town's PBX (private branch exchange) phone system, voice mail, long distance, internet access, wireless and point-to-point communication. Program Budgets FY 2013/2014 Expenditure Changes Operations & Maintenance Operations & Maintenance increased 23.8% as a result of additional Town facility interconnects (T1, fiber, wireless) and the aquatic facility expansion. Capital Budgeted capital in FY 2014 represents initial costs for a replacement phone system for Town facilities. (Costs are shared with the Oro Valley Water Utility). 2013-2014 Annual Budget Program Budgets168 FY 2012 FY 2014 Actual Budget Projected Budget 8.00 8.00 6.00 6.00 FY 2012 FY 2014 % Actual Budget Projected Budget to Budget Civil 379,713$ 412,213$ 364,467$ 372,398$ -9.7% Prosecution 388,275 404,346 404,346 431,946 6.8%767,988$ 816,559$ 768,813$ 804,344$ -1.5% FY 2012 FY 2014 % Actual Budget Projected Budget to Budget State Grants 11,440$ 15,000$ 15,000$ 15,000$ 0.0% 11,440$ 15,000$ 15,000$ 15,000$ 0.0% Total FTEs FY 2013 FY 2013 Expenditures by Program Area Revenue Sources FY 2013 FY 2014 Expenditures by Program FY 2014 Expenditures by Category The Legal Department is organized into two divisions, Civil and Prosecution. The Legal Department provides two different, but equally important, types of legal services to the Town: handling civil matters for the Mayor and Council, Town Manager and Town Departments; and prosecuting misdemeanor crimes and traffic violations within the town. Legal Overview Civil 372,398 46% Prosecution 431,946 54% O&M 234,150 29% Personnel 555,194 69% Capital 15,000 2% 2013-2014 Annual Budget Program Budgets169 FY 2012 FY 2013 FY 2014 Actual Estimate Projected ►Per capita Civil Program operating and maintenance (O&M) $0.69 $1.37 $4.97 expenditures * FY 2014 increase due to contracted Town Attorney ►Per capita Prosecution Program O&M expenditures $0.52 $0.80 $0.74 ►Number of cases processed per prosecutor Town Prosecutor 600 500 500 Assistant Town Prosecutor 497 500 500 ►Percentage of requests from Town Council and staff for legal opinions,100% 100% 100% ordinances, resolutions and other civil matters responded to within 14 days * Measured on calendar year basis CY 2012 CY 2013 CY 2014 Actual Estimate Projected ►Number of civil files opened 195 200 200 ►Number of ordinances drafted 31 35 35 ►Number of resolutions drafted 80 83 83 ►Number of Council agenda items worked 360 362 362 ►Number of formal opinions issued 3 4 4 ►Number of prosecution files opened 1,097 1,100 1,100 ►Training of sworn Police personnel on arrest standards and legal trends 2 22 conducted two times per year Performance Measures Workload Indicators Measures & Indicators Legal * ** * 2013-2014 Annual Budget Program Budgets170 Organizational Chart Legal PROSECUTION DIVISION CIVIL DIVISION LEGAL SERVICES DEPARTMENT 2013-2014 Annual Budget Program Budgets171 Civil Mission FY 2014 Goals and ObjectivesFY 2013 Highlights Highlights & Goals Legal The members of the Civil Division value a respectful approach to working with people; personal commitment and loyalty to our client; timely and effective legal work; and consideration of other points of view. We understand that legal issues are generally only one factor that Council and administration need to consider in handling their respective responsibilities to the Town. We value a "preventative law" approach to providing legal services whenever possible. – Assisted in training regarding Open Meeting Law and Public records for Council, Boards and Commissions – Started new "hybrid" system with use of outside counsel – Worked closely with Risk Retention Pool on Notice of Claim matters – Worked on proposed legislation to amend annexation statutes Focus Area: Fiscal Responsibility ■ Assign staff to maximize productivity ■ Emphasize retention and advancement ■ Evaluate cases for appropriateness relating to use of outside counsel Focus Area: Communication ■ Continue to provide accurate and timely legal advice and representation Focus Area: Economic Development ■ Provide legal advice when appropriate regarding laws and statutes Focus Area: Community Services ■ Provide advice and contracts for Council approved services 2013-2014 Annual Budget Program Budgets172 FY 2012 FY 2013 FY 2013 FY 2014 Variance Actual Budget Projected Budget to Budget Personnel Town Attorney 1.00 1.00 - - (1.00) Chief Civil Deputy Attorney 1.00 1.00 1.00 1.00 - Paralegal II 1.00 1.00 - - (1.00) Paralegal I - - 1.00 1.00 1.00 Office Assistant 1.00 1.00 - - (1.00) Total FTEs 4.00 4.00 2.00 2.00 (2.00) FY 2012 FY 2013 FY 2013 FY 2014 Variance Actual Budget Projected Budget to Budget Expenditures Personnel 351,291$ 355,899$ 308,153$ 168,698$ -52.6% Operations & Maintenance 28,422 56,314 56,314 203,700 261.7% Capital - - - 0.0% Total Expenditures 379,713$ 412,213$ 364,467$ 372,398$ -9.7% The Civil Division is analogous to the General Counsel's office of a corporation. The Town itself is the client, with the Council and Manager the primary "control group." They set the overall direction of legal services in accordance with goals and objectives set by the Council as the governing board and the Manager as Council's chief administrative officer. The division drafts and/or reviews all Town contracts, resolutions and ordinances, policies and procedures; advises officials and employees about regulatory compliance and risk management issues associated with the matter for which they are responsible; advises officials and employees and assists them in complying with administrative requirements such as open meeting, public records and conflict of interest laws. The Civil Division handles code enforcement matters and a variety of negotiations arising out of contract and litigation matters. LegalProgram Budgets FY 2013/2014 Expenditure and Staffing Changes Personnel Personnel costs decreased 52.6% due to a position elimination and the Town Attorney position, which will be provided via contracted service beginning FY 2014. Operations & Maintenance Operations & Maintenance increased 261.7% for Town Attorney services, which will be provided via contracted service beginning FY 2014. 2013-2014 Annual Budget Program Budgets173 Prosecution Mission FY 2013 Highlights FY 2014 Goals and Objectives Highlights & Goals Legal The members of the Prosecution Division promise to fairly resolve criminal or civil court matters while respecting the rights of all parties in as timely a manner as resources allow. – Town Prosecutor is Arizona Prosecuting Attorney's Advisory Council (APAAC) State Training Chairman – Senior Paralegal negotiated a 0% increase in software fees – Senior Paralegal coordinated Court/Police/Prosecution meetings – Continued training of Udall Fellowship recipient from the University of Arizona – Participated in Special Olympics torch run – Town Prosecutor taught statewide prosecution seminars – Participation in Supreme Court committees Focus Area: Fiscal Responsibility ■ Continue to seek grant funding ■ Stay within department budget ■ Maintain operating costs per capita Focus Area: Communication ■ Continue Police/Court/Prosecutor meetings ■ Coordinate and assist with other agencies ■ Promote integrity in the prosecution profession and coordination in the Criminal Justice System Focus Area: Economic Development ■ Promote the fair, impartial and expeditious pursuit of justice Focus Area: Community Services ■ Continue participation with Arizona Prosecuting Attorney's Advisory Council (APAAC) 2013-2014 Annual Budget Program Budgets174 FY 2012 FY 2013 FY 2013 FY 2014 Variance Actual Budget Projected Budget to Budget Personnel Town Prosecutor 1.00 1.00 1.00 - (1.00) Legal Services Director - - - 1.00 1.00 Assistant Town Prosecutor 1.00 1.00 1.00 1.00 - Senior Paralegal 1.00 1.00 1.00 1.00 - Legal Secretary 1.00 1.00 1.00 1.00 - Total FTEs 4.00 4.00 4.00 4.00 - FY 2012 FY 2013 FY 2013 FY 2014 Variance Actual Budget Projected Budget to Budget Expenditures Personnel 355,701$ 356,482$ 356,482$ 386,496$ 8.4% Operations & Maintenance 21,134 32,864 32,864 30,450 -7.3% Capital 11,440 15,000 15,000 15,000 0.0% Total Expenditures 388,275$ 404,346$ 404,346$ 431,946$ 6.8% The Prosecution Division prosecutes, diverts, or otherwise handles misdemeanor crimes and traffic violations within the Town. The Prosecution Division also provides legal advice and training to the Oro Valley Police Department in handling criminal investigations of matters that will be prosecuted by the County Attorney or Arizona Attorney General. The Prosecution Division handles Rule 11 mental health hearings at Superior Court for those persons charged with criminal offenses. The Prosecution Division provides Victim Services under the Arizona Constitution. LegalProgram Budgets FY 2013/2014 Expenditure and Staffing Changes Personnel Personnel costs increased 8.4% due to a change in benefits coverage for an employee and merits budgeted in FY 2014. Operations & Maintenance Operations & Maintenance decreased 7.3% due to a decrease in outside professional services costs. 2013-2014 Annual Budget Program Budgets175 FY 2012 FY 2013 FY 2013 FY 2014 Variance Actual Budget Projected Budget to Budget Personnel Magistrate Judge 1.00 1.00 1.00 1.00 - Court Administrator 1.00 1.00 1.00 1.00 - Courtroom Clerk 1.00 1.00 1.00 1.00 - Senior Court Clerk 3.00 3.00 3.00 3.00 - Court Clerk 1.00 1.00 1.00 1.00 - Bailiff 1.00 1.00 1.00 1.00 - Total FTEs 8.00 8.00 8.00 8.00 - FY 2012 FY 2013 FY 2013 FY 2014 Variance Actual Budget Projected Budget to Budget Expenditures Personnel 604,704$ 635,469$ 604,367$ 636,520$ 0.2% Operations & Maintenance 87,166 122,160 122,160 124,910 2.3% Capital - - - - 0.0% Total Expenditures 691,870$ 757,629$ 726,527$ 761,430$ 0.5% FY 2012 FY 2014 Variance Actual Budget Projected Budget to Budget Court Costs 173,438$ 200,000$ 180,000$ 200,000$ 0.0% Public Defender Fees 3,269 4,000 4,000 4,000 0.0% Fines 200,672 190,000 180,000 190,000 0.0% Total Revenues 377,379$ 394,000$ 364,000$ 394,000$ 0.0% FY 2013 Revenue Sources Services rendered by Magistrate Court include the processing and adjudication of all cases filed in the court, including the trial or other disposition of misdemeanor criminal cases, criminal traffic cases, town code violations and civil traffic cases; collection of fines, surcharges, restitution and other fees; issuing injunctions against harassment and domestic violence orders of protection, taking applications for and issuing marriage licenses, and performing weddings. Services rendered by the Court are governed by rules set by the Arizona Supreme Court and guided by statutes enacted by the Arizona Legislature. Magistrate Court Overview FY 2013/2014 Expenditure and Staffing Changes Operations & Maintenance Operations & Maintenance increased 2.3% due to an increase in travel & training costs. 2013-2014 Annual Budget Program Budgets176 Mission FY 2013 Highlights FY 2014 Goals and Objectives Highlights & Goals Magistrate Court To uphold the law and administer justice fairly and efficiently and adjudicate all cases brought to the Oro Valley Magistrate Court in a fair, courteous and impartial manner, treating all who come to the Oro Valley Magistrate Court with dignity and respect, providing prompt, polite and efficient service. −Implemented online Court Calendar thus improving communication with constituents −Reviewed and updated several forms on the Court's webpage which improved communication and service to the community −Installed video cameras in hallways and courtroom and electronic monitoring which improved safety for all Court visitors and employees −Replaced 13 year-old jury management software with new software which improved reporting capabilities and streamlined jury summonsing –Purchased and installed an additional credit card terminal which enabled faster payment processing time –Installed and networked an additional printer/scanner in the courtroom to increase efficiency in preparing documents in court and an additional printer for jury summonses if needed –Upgraded Court's document management system, improving the scanning, searching and retrieval of scanned documents and faster customer service –Installed another backup storage device for backup of electronic case documents, enabling easier disaster recovery –Reinstated community restitution program with defendants performing the work for the Town to satisfy financial obligations with the Court Focus Area: Fiscal Responsibility ■ Produce minute entries and other documents from the Case Management System or independent source, decreasing the need for more expensive custom, pre-printed forms ■ Implement faster and less expensive web-based payment portal for Court payments, enabling savings to constituents and the Court Focus Area: Communication ■ Use technology to enable destruction of the paper after it is scanned to reduce the amount of space needed to store the paper files and improve accessibility of court files Focus Area: Community Services ■ Increase the quality of service to constituents by continuing to implement online forms, making the forms interactive/form-fill such as Jury questionnaires ■ Increase the number of defendants performing community restitution and increase cooperation with other departments in finding other work projects 2013-2014 Annual Budget Program Budgets177 FY 2012 FY 2013 FY 2014 Actual Estimate Projected ►Variance between total cases completed and total cases filed 0% 1% 1% (goal is +/-10%) ►Compliant with the Administrative Office of the Court (AOC)Yes Yes Yes Minimum Accounting Standards FY 2012 FY 2013 FY 2014 Actual Estimate Projected ►Number of total cases filed 6,161 6,462 6,600 ►Number of DUI cases filed 258 224 230 ►Number of protective orders filed 122 143 155 Workload Indicators Performance Measures Measures & Indicators Magistrate Court 2013-2014 Annual Budget Program Budgets178 FY 2012 FY 2014 Actual Budget Projected Budget 7.10 10.00 10.00 10.38 ** **Note: FY 2013 and FY 2014 figures include 3 FTEs funded with Bed Tax Funds FY 2012 FY 2014 % Actual Budget Projected Budget to Budget Town Management 374,712$ 533,404$ 384,221$ 397,353$ -25.5% Council Support and Constituency 88,496 - - - 0.0% Communications and Constituent Svcs 130,389 195,242 254,348 303,636 55.5% Economic Development 100,327 - - - 0.0% 693,924$ 728,646$ 638,569$ 700,989$ -3.8% FY 2012 FY 2014 % Actual Budget Projected Budget to Budget Economic Development 201,616 471,662 386,710 501,762 6.4% 201,616$ 471,662$ 386,710$ 501,762$ 6.4% FY 2014 Expenditures by Category - General FundFY 2014 Expenditures by Program - General Fund Expenditures by Program Area - Bed Tax Fund FY 2013 Total FTEs FY 2013 FY 2013 Expenditures by Program Area - General Fund The Town Manager is responsible for the proper management and administration of the Town and serves as the Chief Administrative Officer of the government under the control and direction of the Town Council. The Town Manager is further responsible for the promotion of economic development (funded by the Bed Tax Fund), intergovernmental programs, communications, and for coordination of the administrative functions of the various departments, divisions, boards, and services of the Town government. The Town of Oro Valley is made up of the following departments and/or offices: Town Manager; Town Clerk; Human Resources; Finance; Legal Services; Police; Water Utility; Development and Infrastructure Services; Parks and Recreation; Information Technology; and Magistrate Court. Town Manager's Office Overview Personnel 640,609 91% O&M 60,380 9% Town Management 378,355 55% Comm and Constituent Services 303,636 45% 2013-2014 Annual Budget Program Budgets179 Mission FY 2013 Highlights FY 2014 Goals and Objectives Highlights & Goals Town Manager's Office To execute the policies and programs established by the Town Council and to provide administrative leadership and management of municipal operations. − Successfully annexed 107 acres, known as the Oracle/Ina area − Developed and unveiled a new Town brand of "It's in our nature" − Launched a new Town website and improved online Business Navigator − Adopted the new Strategic Plan – Implemented self-funded employee medical insurance program and optional Health Savings Accounts – Achieved financial sustainability by reducing recurring expenditures through vacancy savings (approximately $1.8M) – Developed the first Oro Valley Youth Advisory Council − Completion of $5M renovation and expansion of the Aquatic Center at James D. Kriegh Park − Successfully retained Securaplane, a leading supplier of avionics products for business, commercial and military aircraft, who is expanding into a 55,000 sq ft building along Innovation Park − Successfully transitioned Library Services to Pima County − Continued successful partnership with the Regional Transportation Authority (RTA) for expanded public transit services − Continued partnership with the Southern Arizona Arts & Cultural Alliance (SAACA) to provide the 2nd Thursday Concert Series at Oro Valley Marketplace − Launched an employee suggestion process − Launched virtual art gallery and public art tours Focus Area: Fiscal Responsibility ■ Maintain long-term financial health through diversified revenue sources while investing in community initiatives Focus Area: Communication ■ Ensure residents are educated about and engaged in moving community initiatives forward Focus Area: Economic Development ■ Attract and retain globally-competitive high technology and bioscience employers. ■ Develop recreation and cultural opportunities to promote tourism and support employee attraction and retention Focus Area: Community Services ■ Provide services to enhance residents’ quality of life 2013-2014 Annual Budget Program Budgets180 FY 2012 FY 2013 FY 2014 Actual Estimate Projected ►Average time to fulfill constituent requests (days)3.08 3.96 3.50 ►Average monthly unique visitors to the Business Navigator 779 800 850 website ►Average monthly unique visitors to the Town's website 16,959 17,500 18,000 FY 2012 FY 2013 FY 2014 Actual Estimate Projected ►Number of constituent requests received 318 517 450 Note: The Town received more requests due to public input on Major General Plan Amendments and burying of Tucson Electric Power lines ►Number of business retention site visits conducted 72 23 36 Note: Business Retention & Expansion site visits were higher in FY 2012 due to launch of the Oro Valley Dollars Program ►Number of new Oro Valley Dollars card activations 575 206 250 Performance Measures Workload Indicators Measures & Indicators Town Manager's Office 2013-2014 Annual Budget Program Budgets181 Town Manager's OfficeOrganizational Chart COMMUNICATIONS AND CONSTITUENT SERVICES ECONOMIC DEVELOPMENT TOWN MANAGEMENT TOWN MANAGER 2013-2014 Annual Budget Program Budgets182 FY 2012 FY 2013 FY 2013 FY 2014 Variance Actual Budget Projected Budget to Budget Personnel Town Manager 1.00 1.00 1.00 1.00 - Assistant Town Manager - 1.00 - - (1.00) Assistant to the Town Manager 1.00 1.00 1.00 1.00 - Executive Assistant 0.75 1.00 1.00 1.00 - Senior Office Specialist 0.25 0.50 0.50 0.50 - Management Intern - - - 0.38 0.38 Total FTEs 3.00 4.50 3.50 3.88 (0.62) FY 2012 FY 2013 FY 2013 FY 2014 Variance Actual Budget Projected Budget to Budget Expenditures Personnel 354,004$ 512,130$ 362,947$ 375,653$ -26.6% Operations & Maintenance 19,647 21,274 21,274 21,700 2.0% Capital 1,061 - - - 0.0% Total Expenditures 374,712$ 533,404$ 384,221$ 397,353$ -25.5% The Town Manager’s office is responsible for the fiscal health of the Town government, and for direction and coordination of the administrative functions of the various departments, divisions, boards, and services of the Town Government. The Town Manager’s office provides staff support to the Town Council, handles media relations, promotes the Town’s legislative agenda through intergovernmental programs, and seeks opportunities for partnerships and financial assistance at the county, state and federal levels through grants, legislation and federal appropriation requests. The Town Manager’s office also maintains citizen and community relations, as well as Oro Valley representation on regional boards and quasi-governmental councils to keep our needs considered in regional decision–making. Town Manager's OfficeProgram Budgets FY 2013/2014 Expenditure and Staffing Changes Personnel Personnel costs decreased 26.6% due to elimination of the Assistant Town Manager position. Town Management Program Overview 2013-2014 Annual Budget Program Budgets183 FY 2012 FY 2013 FY 2013 FY 2014 Variance Actual Budget Projected Budget to Budget Personnel Constituent Services Coordinator 1.00 - - - - Senior Office Specialist 0.25 - - - - Executive Assistant 0.25 - - - - Total FTEs 1.50 - - - - FY 2012 FY 2013 FY 2013 FY 2014 Variance Actual Budget Projected Budget to Budget Expenditures Personnel 87,998$ -$ -$ -$ 0.0% Operations & Maintenance 498 - - - 0.0% Total Expenditures 88,496$ -$ -$ -$ 0.0% Town Manager's OfficeProgram Budgets Council Support and Constituency Program Overview The Council Support & Constituent Services Division provides administrative support to the Town Council through the Constituent Services Office (CSO) where concerns, complaints, inquiries, referrals and information requests are addressed with excellent customer service and a common sense approach. The Constituent Services Coordinator facilitates public education efforts, coordinates departmental responses, and ensures that constituent voices and perspectives are consistently captured and transmitted to Town leadership. The CSO also conducts the Council on Your Corner program and provides outreach to homeowner associations. Constituent issues are tracked to monitor changing community needs and desires, allowing the Town leadership to adjust policies and budget options in order to better serve town residents. Beginning FY 2013 this program has been combined with Communications & Community Relations, now called Communications & Constituent Services. 2013-2014 Annual Budget Program Budgets184 FY 2012 FY 2013 FY 2013 FY 2014 Variance Actual Budget Projected Budget to Budget Personnel Communications Administrator 1.00 1.00 1.00 1.00 - New Media Developer - - 1.00 1.00 1.00 Constituent Services Coordinator - 1.00 1.00 1.00 - Communications Intern 0.10 - - - - Senior Office Specialist 0.50 0.50 0.50 0.50 - Total FTEs 1.60 2.50 3.50 3.50 1.00 FY 2012 FY 2013 FY 2013 FY 2014 Variance Actual Budget Projected Budget to Budget Expenditures Personnel 105,511$ 182,437$ 241,543$ 264,956$ 45.2% Operations & Maintenance 24,878 12,805 12,805 38,680 202.1% Total Expenditures 130,389$ 195,242$ 254,348$ 303,636$ 55.5% Town Manager's OfficeProgram Budgets FY 2013/2014 Expenditure and Staffing Changes Personnel Personnel costs increased 45.2% due to the addition of the New Media Developer position. Operations & Maintenance Operations & Maintenance increased 202.1% due to one-time additional outside professional services and special events costs. Communications and Constituent Services Program Overview The Communications & Constituent Services Division manages and facilitates all media relations on behalf of the organization. The Communications Administrator is responsible for the oversight of communication, branding, marketing related programs, activities and project management. In addition, the division plans, develops and produces publications and services designed to facilitate communication between Town leadership and residents in order to keep residents informed about Town services, activities and programs. Staff also provides administrative support to the Town leadership through the Constituent Services Office (CSO) where concerns, complaints, inquiries, referrals and information requests are addressed with excellent customer service and a common sense approach. The Constituent Services Coordinator facilitates public education efforts, coordinates departmental responses, and ensures that constituent voices and perspectives are consistently captured and transmitted to Town leadership. The CSO also conducts the Council on Your Corner program as well as outreach activities to homeowner associations. Constituent issues are tracked to monitor changing community needs and desires, allowing the Town leadership to adjust policies and budget options in order to better serve town residents. 2013-2014 Annual Budget Program Budgets185 FY 2012 FY 2013 FY 2013 FY 2014 Variance Actual Budget Projected Budget to Budget Personnel Economic Development Manager 1.00 - - - - Total FTEs 1.00 - - - - FY 2012 FY 2013 FY 2013 FY 2014 Variance Actual Budget Projected Budget to Budget Expenditures Personnel 94,905$ -$ 0.0% Operations & Maintenance 5,422 - 0.0% Total Expenditures 100,327$ -$ -$ -$ 0.0% Town Manager's OfficeProgram Budgets Economic Development Program Overview The Economic Development Division provides services such as business recruitment and retention, relocation assistance, liaison to regional tourism and economic development organizations, development project team leadership, and economic analysis and projections. The economic development manager adheres to the 2007 Community Economic Development Strategy (CEDS), which indicated that the residents of Oro Valley are interested in expansion, diversification, and development of local business. Beginning FY 2013, expenditures are budgeted 100% in the Bed Tax Fund. 2013-2014 Annual Budget Program Budgets186 FY 2012 FY 2013 FY 2013 FY 2014 Variance Personnel Actual Budget Projected Budget to Budget Economic Development Manager - 1.00 1.00 1.00 - Economic Development Specialist - 1.00 1.00 1.00 - Office Specialist - 1.00 1.00 1.00 - Total FTEs - 3.00 3.00 3.00 - FY 2012 FY 2013 FY 2013 FY 2014 Variance Actual Budget Projected Budget to Budget Expenditures Personnel -$ 231,126$ 197,385$ 208,412$ -9.8% Operations & Maintenance 201,616 240,536 189,325 293,350 22.0% Other Financing Uses 818,426 494,810 426,966 390,669 -21.0% Total Expenditures 1,020,042$ 966,472$ 813,676$ 892,431$ -7.7% FY 2012 FY 2014 Variance Actual Budget Projected Budget to Budget Bed Taxes 794,718$ 782,283$ 782,283$ 789,000$ 0.9% Interest Income 7,550 5,700 3,975 3,975 -30.3% Total Revenues 802,268$ 787,983$ 786,258$ 792,975$ 0.6% FY 2013 Revenue Sources The Bed Tax Fund covers all economic development-related costs and activities. An example is funding for Visit Tucson, formerly Metropolitan Tucson Convention and Visitors Bureau (MTCVB). Beginning FY 2013, the budget includes funding for operational costs associated with the Aquatic Center expansion, as well as funding for the Greater Oro Valley Chamber of Commerce. Also refer to the Manager program template for Economic Development expenditure data prior to FY 2013. Bed Tax Fund Bed Tax Fund Overview FY 2013/2014 Expenditure and Staffing Changes Personnel Personnel costs decreased 9.8% due to a decrease in budgeted salary for the Economic Development Specialist position. Operations & Maintenance Operations & Maintenance costs increased 22% to reflect increases in economic development marketing and funding for the Greater Oro Valley Chamber of Commerce. Other Financing Uses Other Financing Uses decreased 21%. The FY 2013 budget included a $300K transfer out to the Aquatic Center Project Fund for construction of the expanded aquatic center. 2013-2014 Annual Budget Program Budgets187 FY 2012 FY 2014 Actual Budget Projected Budget 40.47 46.68 28.61 29.44 FY 2012 FY 2014 % Actual Budget Projected Budget to Budget Parks & Rec Administration 266,554$ 261,156$ 261,158$ 324,058$ 24.1% Parks 699,186 728,204 714,745 1,025,172 40.8% Recreation 301,135 232,714 229,387 267,419 14.9% Trails 65,884 68,224 68,224 77,892 14.2% Aquatics 397,130 600,447 593,308 697,441 16.2% Library 1,153,455 583,413 423,224 - -100.0% Cultural Resources 153,623 286,142 236,784 144,973 -49.3% 3,036,967$ 2,760,300$ 2,526,830$ 2,536,955$ -8.1% FY 2012 FY 2014 % Actual Budget Projected Budget to Budget Charges for Services 318,285$ 295,000$ 335,000$ 476,500$ 61.5% Other Intergovernmental Revenue 574,589 583,413 412,339 - -100.0% State Grants 25,000 195,000 17,000 180,000 -7.7% 917,874$ 1,073,413$ 764,339$ 656,500$ -38.8% Total FTEs FY 2013 FY 2014 Expenditures by Category FY 2013 Expenditures by Division Revenue Sources FY 2013 FY 2014 Expenditures by Division This department represents municipal services in five areas, including parks, recreation, trails, aquatics, and cultural and historic resources. This department is further responsible to provide staff support to the Parks and Recreation Advisory Board and the Historic Preservation Commission. The Cultural Resources Division is responsible for the management of all town historic and cultural properties, such as Steam Pump Ranch. Additionally, this Division is responsible for implementation and follow-through of master plans for town historic sites and cultural resources. To note, the Oro Valley Public Library was previously managed within this department. Effective January 1, 2013, the Oro Valley Public Library changed from affiliate status to branch status, and operations were assumed by Pima County. Parks and Recreation Overview P&R Administration 324,058 13% Parks 1,025,172 40%Recreation 267,419 11% Trails 77,892 3% Aquatics 697,441 27% Cultural Resources 144,973 6% Personnel 1,264,872 50% O&M 1,087,083 43% Capital 185,000 7% 2013-2014 Annual Budget Program Budgets188 Mission FY 2013 Highlights FY 2014 Goals and Objectives Highlights & Goals Parks and Recreation To enhance the quality of life for all Oro Valley residents by providing exceptional community facilities and programs for all ages. Focus Area: Fiscal Responsibility ■ Purchase, install and implement new Topaz Signature Device in coordination with RecTrac software to eliminate need of keeping paper copies of hold harmless forms and waivers ■ Create an Aquatics Center procedural manual for cash handling, operations, and training Focus Area: Communication ■ Develop and implement a Parks & Recreation program guide to be published three times per year ■ Develop high quality advertisement and flyers to promote Aquatic Center, Steam Pump Ranch, trails, and recreation programming ■ Continue to use the RecTrac database and Facebook to promote programs and events Focus Area: Economic Development ■ Continue to recruit and secure large swim meets ■ Support cultural events at Steam Pump Ranch, Aquatic Center, and multi-use paths/bike/run events ■ Continue strong partnership with Visit Tucson (formerly Metropolitan Tucson Convention and Visitors Bureau) and seek out other strategic partners ■ Complete the Cañada Del Oro multi-use path ■ Continue to seek funding to complete Cañada Del Oro loop and Steam Pump Ranch implementation Parks and Recreation Administration − Implemented installment billing feature for the Aquatic Center to allow customers to purchase month to month passes using a credit card or via Automated Clearing House (ACH) −Created a comprehensive policy for jumping castle usage at James D. Kriegh (JDK) Park including an approved Town vendor list − Created procedures, updated website information and the software system, created forms and an online form for archery − Updated current web information, brochures and software system to include new ramadas at Honeybee Canyon Park – Updated the RecTrac software with options for daily archery passes and annual archery passes to include prorating on a quarterly basis – Hired new Parks & Recreation Director Aquatics – Completed the $5 million Aquatic Center construction project, opening doors March 15 – Implemented RecTrac, point of sale and reservation system − Hired/trained more than 70 new staff (lifeguards and facility attendants) − Hosted 8U state championships swim meet – Hosted State Synchronized Swimming meet – Hosted Masters Zone short course meet – Hosted Oro Valley Open meet Trails – Oro Valley named Playful City Community USA 2013 for third consecutive year – Obtained Nutro Company grant for JDK dog park improvements − Held Oro Valley's 5th Annual Bike to Work Recreation – Hosted the Town's annual tree lighting celebration − Hosted the first Demo Day at the archery range at Naranja Park − Completed archery instructors training for all staff − Hosted 2nd Annual MOVE across 2 Ranges Hiking Challenge – Coordinated the Kids Fun Run in conjunction with Arizona Distance Classic Event – Held Amphibious Athlete Summer Camp – Held fall and spring break camps – Improved field lease agreements 2013-2014 Annual Budget Program Budgets189 FY 2013 Highlights (Continued)FY 2014 Goals and Objectives (Continued) Highlights & Goals (Continued)Parks and Recreation Parks − Provided design and implementation for new Aquatic Center landscape − Installed new shade structure over playgrounds at JDK Park − Provided design and labor for completion of Steam Pump Ranch historic garden fence and gates − New restroom installed and brought on-line at Steam Pump Ranch – Installed a new north main entrance gate and vehicular turn-around at Steam Pump Ranch according to Arizona Department of Transportation standards – Repaired middle roof of Leiber house at Steam Pump Ranch – Developed and installed archery range at Naranja Park to include a fixed range and walking course – Oversaw an Eagle Scout project for trail work on new archery range walking course – New synthetic turf added to Town Hall courtyard area – Honeybee Canyon Park brought on-line after transfer from Pima County – Set up and recorded data for tree inventory at JDK Park, Riverfront Park, Steam Pump Ranch and La Cañada Drive right-of-way from Tangerine to Lambert Lane via a US Forestry grant Library – Successfully transferred Library services from the Town to Pima County Cultural Resources – Successfully held fall and spring festivals at Steam Pump Ranch – Implemented Steam Pump Ranch docent training – Implemented 2nd Saturday program at Steam Pump Ranch – Installed a Welcome to Steam Pump Ranch sign Focus Area: Community Services ■ Offer year round swimming lesson program ■ Further develop competition swimming offerings for youth and adults ■ Implement recreation/cultural programming at Steam Pump Ranch ■ Investigate partnership opportunities to host special events at Steam Pump Ranch ■ Complete Aquatic Center's landscape ■ Bring on-line Cañada Del Oro Linear Park (multi-use trail) addition from First Avenue to Steam Pump Village ■ Construct the west archery walking course at Naranja Park ■ Install a new ramada and entry sign at Steam Pump Ranch ■ Develop the Farmer's Market area at Steam Pump Ranch ■ Upgrade the central courtyard area at Town Hall Campus ■ Begin the implementation of the Naranja Park Master Plan Update 2013-2014 Annual Budget Program Budgets190 FY 2012 FY 2013 FY 2014 Actual Estimate Projected ►Park acres per 1,000 residents 10.63 10.73 10.73 ►Parks and Recreation FTEs per 1,000 population 0.51 0.66 0.72 ►Percentage cost recovery for Aquatics division (a)(a)30% (a) Due to closure of the pool in April 2012 for construction of an expanded facility, the estimated cost recovery percentages are not provided ►Percentage cost recovery for recreation programs 53% 65% 65% FY 2012 FY 2013 FY 2014 Actual Estimate Projected ►Number of park acres maintained 436 440 441 ►Annual swimming pool attendance 100,000 100,000 250,000 ►Number of summer camp attendees 250 450 550 ►Number of spring and fall camp attendees 60 55 75 ►Hours of ball field usage 8,000 9,987 9,000 Performance Measures Workload Indicators Measures & Indicators Parks and Recreation 2013-2014 Annual Budget Program Budgets191 Organizational Chart PARKS AND RECREATION DEPARTMENT DIRECTOR PARKS AND RECREATION STEAM PUMP RANCH CULTURAL RESOURCES AQUATICS Parks and Recreation PARKS RECREATION ADMINISTRATION TRAILS 2013-2014 Annual Budget Program Budgets192 FY 2012 FY 2013 FY 2013 FY 2014 Variance Actual Budget Projected Budget to Budget Personnel Parks and Recreation Director 0.90 0.90 0.90 1.00 0.10 Senior Office Specialist 0.90 0.90 0.90 1.00 0.10 Office Assistant 0.48 1.00 1.00 1.00 - Total FTEs 2.28 2.80 2.80 3.00 0.20 FY 2012 FY 2013 FY 2013 FY 2014 Variance Actual Budget Projected Budget to Budget Expenditures Personnel 201,159$ 193,394$ 209,443$ 206,530$ 6.8% Operations & Maintenance 56,663 67,762 51,715 117,528 73.4% Capital 8,732 - - - 0.0% Total Expenditures 266,554$ 261,156$ 261,158$ 324,058$ 24.1% The Parks and Recreation Administration Division is responsible for program registrations, processing fees and making deposits, coordinating facility reservations, responding to email inquiries, and clerical and organizational support to the entire department. Additionally, this division provides administrative support to the Parks and Recreation Advisory Board. Parks & RecreationProgram Budgets FY 2013/2014 Expenditure and Staffing Changes Personnel Personnel costs increased 6.8% due to reallocation of staff time among program areas and for merits budgeted in FY 2014. Operations & Maintenance Operations & Maintenance increased 73.4%. This is due to fleet maintenance costs that were previously budgeted in General Administration, as well as vehicle replacement charges and vehicle reserve set-aside charges for future year replacement. The purchase of the vehicles will be through the Town's Fleet Fund. Administration Program Overview 2013-2014 Annual Budget Program Budgets193 FY 2012 FY 2013 FY 2013 FY 2014 Variance Actual Budget Projected Budget to Budget Personnel Parks Maintenance Manager 0.80 0.85 0.85 1.00 0.15 Parks Maintenance Crew Lead 0.80 1.00 1.00 1.00 - Senior Parks Maint Worker 1.80 2.80 2.80 3.00 0.20 Parks Maintenance Worker 2.80 1.50 1.50 2.35 0.85 Park Monitor 0.70 1.23 1.23 1.23 - Total FTEs 6.90 7.38 7.38 8.58 1.20 FY 2012 FY 2013 FY 2013 FY 2014 Variance Actual Budget Projected Budget to Budget Expenditures Personnel 353,691$ 375,939$ 375,939$ 437,347$ 16.3% Operations & Maintenance 303,531 293,265 274,665 502,825 71.5% Capital 41,964 59,000 64,141 85,000 44.1% Total Expenditures 699,186$ 728,204$ 714,745$ 1,025,172$ 40.8% The Parks Division is responsible for building maintenance, janitorial services, turf management, landscape maintenance and property upkeep for all parks, natural trails, and bicycle/pedestrian oasis facilities. Parks is also responsible for the landscape maintenance at Town Hall, including the Police Department. Parks oversees all parks construction projects, including new construction, renovations and repairs. Parks & RecreationProgram Budgets FY 2013/2014 Expenditure and Staffing Changes Personnel Personnel costs increased 16.3% due to an additional part-time Parks Maintenance Worker, reallocation of staff time among program areas, and merits budgeted in FY 2014. Operations & Maintenance Operations & Maintenance increased 71.5% due to increased costs in several areas, including utilities and waste disposal fees, field supplies, and outside professional services. Capital Budgeted capital in FY 2014 includes initial costs of a master plan update for Naranja Park, a Town Hall courtyard upgrade, and a grant matching amount for restrooms at Naranja Park. Parks Program Overview 2013-2014 Annual Budget Program Budgets194 FY 2012 FY 2013 FY 2013 FY 2014 Variance Actual Budget Projected Budget to Budget Personnel Recreation Manager 0.90 0.90 0.90 0.80 (0.10) Assistant Recreation Manager 0.90 0.90 0.90 1.00 0.10 Recreation Leader 0.40 0.40 0.40 0.40 - Recreation Aide 1.50 1.50 1.50 1.50 - Total FTEs 3.70 3.70 3.70 3.70 - FY 2012 FY 2013 FY 2013 FY 2014 Variance Actual Budget Projected Budget to Budget Expenditures Personnel 145,999$ 152,260$ 143,137$ 150,269$ -1.3% Operations & Maintenance 155,136 80,454 86,250 117,150 45.6% Capital - - - - 0.0% Total Expenditures 301,135$ 232,714$ 229,387$ 267,419$ 14.9% The Recreation Division is responsible for providing recreational programs, activities, classes, hikes, and special events for all ages. This division is also responsible for ball field management and contracts. Parks & RecreationProgram Budgets FY 2013/2014 Expenditure and Staffing Changes Personnel Personnel costs decreased 1.3% due to reallocation of staff time among program areas. Operations & Maintenance Operations & Maintenance increased 45.6% due to an increase in contracted recreation programs. Recreation Program Overview 2013-2014 Annual Budget Program Budgets195 FY 2012 FY 2013 FY 2013 FY 2014 VarianceActualBudgetProjectedBudget to Budget Personnel Multimodal Planner 0.90 0.90 0.90 1.00 0.10 Total FTEs 0.90 0.90 0.90 1.00 0.10 FY 2012 FY 2013 FY 2013 FY 2014 Variance Actual Budget Projected Budget to Budget Expenditures Personnel 64,251$ 65,695$ 65,695$ 75,052$ 14.2% Operations & Maintenance 1,633 2,529 2,529 2,840 12.3% Capital - - - - 0.0% Total Expenditures 65,884$ 68,224$ 68,224$ 77,892$ 14.2% Parks & Recreation The Trails Division is responsible for insuring that the Town's Trails Plan, as well as the Pedestrian & Bicycle Plan, are implemented and followed. This section handles grant writing for the department, addresses trail issues, manages the Adopt-a-Trail program, and provides public information, safety and instructional programs. Additionally, Trails performs development review to insure that all "bike, ped & trails" issues are properly addressed when development occurs. Program Budgets FY 2013/2014 Expenditure and Staffing Changes Personnel Personnel costs increased 14.2% due to reallocation of staff time among program areas and merits budgeted in FY 2014. Operations & Maintenance Operations & Maintenance increased 12.3% due to an increase in trail programs. Trails Program Overview 2013-2014 Annual Budget Program Budgets196 FY 2012 FY 2013 FY 2013 FY 2014 Variance Actual Budget Projected Budget to Budget Personnel Aquatics Manager 1.00 1.00 1.00 1.00 - Assistant Aquatics Manager - 1.00 1.00 1.00 - Facility Supervisor - 1.36 1.36 1.36 - Shift Leader - 2.72 2.72 2.72 - Facility Attendants - 2.40 2.40 2.88 0.48 Water Safety Instructor 6.32 4.00 4.00 4.00 - Total FTEs 7.32 12.48 12.48 12.96 0.48 FY 2012 FY 2013 FY 2013 FY 2014 Variance Actual Budget Projected Budget to Budget Expenditures Personnel 180,889$ 333,547$ 326,408$ 381,701$ 14.4% Operations & Maintenance 198,486 266,900 256,763 297,740 11.6% Capital 17,755 - 10,137 18,000 0.0% Total Expenditures 397,130$ 600,447$ 593,308$ 697,441$ 16.2% Parks & Recreation The Aquatics Division is responsible for the safe operation, maintenance and management of the Oro Valley Aquatic Center. This facility was expanded in FY 2013 and includes an Olympic-sized swimming pool, a 25-yard pool, a splash pad for children and other family-friendly amenities. The facility will serve as one of Southern Arizona's premier, competition-level facilities. FY 2014 will be the first full fiscal year of expanded operations. Program Budgets FY 2013/2014 Expenditure and Staffing Changes Personnel Personnel costs increased 14.4% due to additional Facility Attendants and merits budgeted in FY 2014. Operations & Maintenance Operations & Maintenance increased 11.6% as a result of increased costs anticipated with the first full fiscal year of expanded operations. Aquatics Program Overview 2013-2014 Annual Budget Program Budgets197 FY 2012 FY 2013 FY 2013 FY 2014 Variance Actual Budget Projected Budget to Budget Personnel Library Services Manager 1.00 1.00 - - (1.00) Librarian II 4.00 4.00 - - (4.00) Library Associate 4.48 4.48 - - (4.48) Library Technical Assistant II 4.51 4.51 - - (4.51) Library Technical Assistant I 3.08 3.08 - - (3.08) Office Specialist 1.00 1.00 - - (1.00) Total FTEs 18.07 18.07 - - (18.07) FY 2012 FY 2013 FY 2013 FY 2014 Variance Actual Budget Projected Budget to Budget Expenditures Personnel 820,509$ 417,363$ 393,224$ -$ -100.0% Operations & Maintenance 332,946 166,050 30,000 - -100.0% Capital - - - - 0.0% Total Expenditures 1,153,455$ 583,413$ 423,224$ -$ -100.0% Effective January 1, 2013, the Oro Valley Public Library changed from affiliate status to branch status, and operations were assumed by Pima County. LibraryProgram Budgets Library Program Overview 2013-2014 Annual Budget Program Budgets198 FY 2012 FY 2013 FY 2013 FY 2014 Variance Actual Budget Projected Budget to Budget Personnel Parks and Recreation Director 0.10 0.10 0.10 - (0.10) Multimodal Planner 0.10 0.10 0.10 - (0.10) Parks Maintenance Manager 0.20 0.15 0.15 - (0.15) Parks Maintenance Crew Lead 0.20 - - - - Senior Parks Maintenance Worker 0.20 0.20 0.20 - (0.20) Parks Maintenance Worker 0.20 0.50 0.50 - (0.50) Recreation Manager 0.10 0.10 0.10 0.20 0.10 Assistant Recreation Manager 0.10 0.10 0.10 - (0.10) Senior Office Specialist 0.10 0.10 0.10 - (0.10) Total FTEs 1.30 1.35 1.35 0.20 (1.15) FY 2012 FY 2013 FY 2013 FY 2014 Variance Actual Budget Projected Budget to Budget Expenditures Personnel 80,854$ 78,954$ 79,684$ 13,973$ -82.3% Operations & Maintenance 50,283 107,000 48,064 49,000 -54.2% Capital 22,486 100,188 109,036 82,000 -18.2% Total Expenditures 153,623$ 286,142$ 236,784$ 144,973$ -49.3% The Cultural Resources Division is responsible for the management of all town historic and cultural properties, such as Steam Pump Ranch. Additionally, this Division writes and manages grants, and is responsible for implementation and follow-through of master plans for town historic sites and cultural resources. Cultural ResourcesProgram Budgets Cultural Resources Program Overview FY 2013/2014 Expenditure and Staffing Changes Personnel Personnel costs decreased 82.3% due to reallocation of staff time among program areas. Operations & Maintenance Operations & Maintenance decreased 54.2% due to grant capacity that was budgeted in FY 2013. Capital Budgeted capital in FY 2014 is for improvements at Steam Pump Ranch. 2013-2014 Annual Budget Program Budgets199 FY 2012 FY 2013 FY 2013 FY 2014 Variance Actual Budget Projected Budget to Budget Expenditures Capital 30,245$ 130,188$ 139,477$ -$ -100.0% Total Expenditures 30,245$ 130,188$ 139,477$ -$ -100.0% FY 2012 FY 2014 Variance Actual Budget Projected Budget to Budget Charges for Services 835$ -$ -$ -$ 0.0% Other Financing Sources 185,240 - - - 0.0% Total Revenues 186,075$ -$ -$ -$ 0.0% Revenue Sources FY 2013 This fund is used to manage the collection and expenditure of recreation in-lieu fees from local residential development. These funds are designated for Parks and Recreation infrastructure purposes. Recreation In-Lieu Fee Fund Overview FY 2013/2014 Expenditure Changes Capital Capital decreased 100%. Projects completed in FY 2013 include construction of a restroom facility at Steam Pump Ranch as well as upgrading of playground equipment at James D. Kriegh Park. 2013-2014 Annual Budget Program Budgets200 FY 2012 FY 2013 FY 2013 FY 2014 Variance Actual Budget Projected Budget to Budget Expenditures Capital 309,901$ 400,000$ 90,100$ -$ -100.0% Total Expenditures 309,901$ 400,000$ 90,100$ -$ -100.0% FY 2012 FY 2014 Variance Actual Budget Projected Budget to Budget Residential Impact Fees 99,542$ 92,001$ 110,000$ 201,297$ 118.8% Interest Income 317 - 1,150 - 0.0% Total Revenues 99,859$ 92,001$ 111,150$ 201,297$ 118.8% Revenue Sources FY 2013 This fund is used to manage the collection and expenditure of development impact fees dedicated to parks and recreation purposes. Parks & Recreation impact fees are assessed on residential development within the Town. Parks & Recreation Impact Fee Fund Overview FY 2013/2014 Expenditure Changes Capital Capital decreased 100% due to completion of construction on the expanded aquatic facility in FY 2013. 2013-2014 Annual Budget Program Budgets201 FY 2012 FY 2013 FY 2013 FY 2014 Variance Actual Budget Projected Budget to Budget Expenditures Operations & Maintenance 75,890$ -$ 218$ -$ 0.0% Capital 1,162 4,810,000 4,600,000 - -100.0% Total Expenditures 77,052$ 4,810,000$ 4,600,218$ -$ -100.0% FY 2012 FY 2014 Variance Actual Budget Projected Budget to Budget Other Financing Sources 3,193,835$ 1,460,000$ 1,460,000$ -$ -100.0% Donations 5,550 300,000 30,000 30,000 -90.0% Total Revenues 3,199,385$ 1,760,000$ 1,490,000$ 30,000$ -98.3% Revenue Sources FY 2013 The Aquatic Center Project Fund was a new Capital Project Fund in FY 2013. This fund was used to account for construction of an expanded town aquatic facility. Aquatic Center Project Fund Overview FY 2013/2014 Expenditure Changes Capital Capital decreased 100%. Construction of the expanded town aquatic facility was completed in March 2013. 2013-2014 Annual Budget Program Budgets202 FY 2012 FY 2014 Actual Budget Projected Budget 128.21 131.69 131.69 134.13 ** ** Note: Beginning FY 2013, figure includes 3 FTEs funded with Seizure Funds FY 2012 FY 2014 % Actual Budget Projected Budget to Budget Administration (inc PD Impact Fees)865,531$ 1,080,958$ 1,066,271$ 1,101,278$ 1.9% Support Services 4,940,309 5,496,303 5,435,975 6,608,522 20.2% Field Services 5,908,579 6,133,832 6,133,832 6,440,160 5.0% Professional Dev. & Training 195,865 177,813 177,813 190,750 7.3% Professional Standards 107,706 108,183 108,183 114,233 5.6% 12,017,990$ 12,997,090$ 12,922,074$ 14,454,943$ 11.2% FY 2012 FY 2014 % Actual Budget Projected Budget to Budget Federal Grants 484,345$ 558,000$ 704,232$ 576,490$ 3.3% State Grants 184,114 65,000 108,700 182,700 181.1% Seizures & Forfeitures - 192,616 192,616 202,438 5.1% Report Copying 16,921 2,900 5,600 5,500 89.7% Impound Processing 37,040 47,503 47,503 47,500 0.0% Police Department Impact Fees - 89,066 82,646 - -100.0% Other 19,387 27,500 39,500 26,700 -2.9% 741,807$ 982,585$ 1,180,797$ 1,041,328$ 6.0% Expenditures by Division FY 2014 Expenditures by Division Revenue Sources Total FTEs FY 2013 FY 2014 Expenditures by Category FY 2013 FY 2013 The Oro Valley Police Department (OVPD) is committed to providing public safety services to ensure a safe environment. This is accomplished through collaborative partnerships between our organization, our citizens, business owners/managers, schools, community organizations, media, and other government partners. OVPD members seek the highest amount of professional development with one S.E.R.V.I.C.E. vision in mind: Seek Excellence Remain Vigilant Involve Community Enforcement Police Overview Prof Dev & Training 190,750 1% Prof. Standards 114,233 1% Admin 1,101,278 8% Support Services 6,608,522 45% Field Services 6,440,160 45% Capital 508,340 4% Grant Funded Capital 46,000 0% O&M 1,928,927 13% Personnel 11,971,676 83% 2013-2014 Annual Budget Program Budgets203 Mission FY 2013 Highlights FY 2014 Goals and Objectives Highlights & Goals Police We, the members of the Oro Valley Police Department, are dedicated to providing excellent service through partnerships that build trust, eliminate crime, create a safe environment and enhance the quality of life within our community. − Dispose-A-Med program awarded Common Ground Celebration Award by Metropolitan Pima Alliance – 155 active businesses in the Adopt-A-Business Program − Lead K9 Handler and canine partner named Team Leader for the Pima Regional Bomb Squad; conducted 619 explosive detection searches − Citizen Volunteer Assistants Program (CVAP) members contributed 14,455 volunteer hours, valued in excess of $320,000 − Updated the Town's Emergency Operations Plan − Coordinated and hosted National Night Out − Hosted two week Explorer Academy with participating jurisdictions− In conjunction with the Fraternal Order of Police, helped raise $5,000 by organizing and hosting the Rosie Fishing Derby to benefit Special Olympics − Chief appointed to serve on the High Intensity Drug Trafficking Areas (HIDTA) program Management Sub-Committee− Chief continued to serve as Chairman of the Arizona Criminal Justice Commission, and was elected to Chair the Pima County Wireless Integrated Network (PCWIN) Executive Committee − Continued to sponsor back to school and Christmas 'Shop with a Cop' program− Completed upgrades to interview room recording equipment, Quetel evidence system and Cellebrite forensic system − Finalized construction of impound lot at the Municipal Operations Center (MOC), as well as remodeling project of the main station − Utilized grant and seizure funding for purchase of generator and installation of video conferencing equipment at Tangerine emergency command center − School Resource Officer (SRO) Unit selected, through nomination, as a model SRO Unit by Arizona School Resource Officer Association− First police agency in Southern Arizona to use the Axon Flex® On- Officer Camera System − Introduced High Visibility Enforcement ("HiVE") traffic program to reduce collisions at two of the town's most dangerous intersections − Participated in the development and completion of the PCWIN Cooperative Business Plan and Governance documents Focus Area: Fiscal Responsibility ■ Maintain a balanced budget ■ Maximize use of non-Town funding sources by participating in task force operations ■ Secure outside grant funding from federal, state, and local sources ■ Research and pursue alternatives for a new police evidence facility ■ Continue police station improvement project to protect the Town's assets and avoid infrastructure deterioration ■ Participate in efforts to annex additional areas Focus Area: Communication ■ Provide effective citizen outreach, communication and education through Citizen Academy, Teen Academy, neighborhood meetings, public meetings, Town website, HOA Forums, special events and programs ■ Participate in joint Council and staff workshops to ensure good participation and effective implementation of goals ■ Continue project to update and revise Department Policies and Directives ■ Adopt new businesses as they open to provide support and safety information ■ Complete and publish Annual Report ■ Ensure continuing development of all staff, especially as related to succession planning ■ Maintain strong regional collaborative relationships ■ Update OVPD's Business Continuity Plan ■ Continue to work as a team internally and with other departments to meet Town goals Focus Area: Economic Development ■ Participate in Town annexation efforts ■ Ensure a safer community by reducing crime and reducing fear of crime where residents and visitors feel secure and property is protected Focus Area: Community Services ■ Adopt new businesses as they open and cultivate relationships to create a business friendly environment ■ Continue conducting Dispose-a-Med program ■ Ensure a safer community by reducing crime and reducing fear of crime where residents and visitors feel secure 2013-2014 Annual Budget Program Budgets204 CY 2012 CY 2013 CY 2014 Actual Estimate Projected ►Percentage of Priority I calls responded to in less than five minutes 83% 86% 89% ►Percentage of Priority II calls responded to in less than eight minutes 89% 91% 93% ►Percentage of residents on OVPD Citizen Satisfaction Survey that rated 95% 95% 95% neighborhood walking safety during the day as reasonably safe or above ►Percentage of residents on OVPD Citizen Satisfaction Survey that rated 77% 79% 80% neighborhood walking safety during the night as reasonably safe or above ►Percentage of residents on OVPD Citizen Satisfaction Survey rating their 88% 88% 87% police services above average (of those who indicated they had contact with the Police Department during the last 12 months) *Rating of a 7 or above on a scale of 1 to 10 CY 2012 CY 2013 CY 2014 Actual Estimate Projected ►Calls for service 16,876 16,976 17,142 ►Number of incoming emergency and non-emergency phone calls 58,485 56,889 55,687 answered by police dispatchers ►Number of Priority I calls 251 250 257 ►Number of Priority II calls 780 644 630 ►Reported traffic accidents 537 495 491 Note: These figures are within a range, and reflect the median for those ranges Workload Indicators Performance Measures Measures & Indicators Police 2013-2014 Annual Budget Program Budgets205 PoliceOrganizational Chart ADMINISTRATION Chief of Police PROFESSIONAL DEVELOPMENT & TRAINING SUPPORT SERVICES ADMINISTRATION SUPPORT SERVICES CRIMINAL INVESTIGATIONS PATROLPROPERTY/ID MOTOR/TRAFFIC FIELD SERVICES ADMINISTRATION SCHOOL RESOURCE OFFICER TASK FORCE COMMUNITY RESOURCES COMMUNICATIONS RECORDS PROFESSIONAL STANDARDS FIELD SERVICES COMMUNITY ACTION TEAM Deputy Chief of Police FLEET INFORMATION TECHNOLOGY TECHNICAL SERVICES SPECIAL OPERATIONS K-9 UNIT DUI REGIONAL SWAT 2013-2014 Annual Budget Program Budgets206 FY 2012 FY 2013 FY 2013 FY 2014 Variance Actual Budget Projected Budget to Budget Personnel Police Chief 1.00 1.00 1.00 1.00 - Deputy Police Chief 1.00 1.00 1.00 1.00 - Lieutenant 1.00 1.00 1.00 1.00 - Administrative Services Mgr 1.00 1.00 1.00 1.00 - Total FTEs 4.00 4.00 4.00 4.00 - FY 2012 FY 2013 FY 2013 FY 2014 Variance Actual Budget Projected Budget to Budget Expenditures Personnel 489,737$ 541,387$ 541,387$ 547,433$ 1.1% Operations & Maintenance 375,794 450,505 440,600 553,845 22.9% Capital (incl PD impact fees)- 89,066 84,284 - -100.0% Total Expenditures 865,531$ 1,080,958$ 1,066,271$ 1,101,278$ 1.9% The Oro Valley Police Department (OVPD) is a true community policing organization and understands community policing is a "way of life" for an organization. In Oro Valley, community policing is considered a core value that underlies all programs and initiatives. The Police Department Administration embodies this philosophy and guides all staff towards embracing this philosophy throughout the entire organization. PoliceProgram Budgets FY 2013/2014 Expenditure and Staffing Changes Personnel Personnel costs increased 1.1% to reflect merits budgeted in FY 2014. Operations & Maintenance Operations & Maintenance increased 22.9% for building repair & maintenance, travel & training, telecommunications and gas & electricity costs. Capital Capital decreased 100% due to new vehicle replacements budgeted in FY 2013. These vehicles were purchased with Police impact fees. 2013-2014 Annual Budget Program Budgets207 FY 2012 FY 2013 FY 2013 FY 2014 Variance Actual Budget Projected Budget to Budget Personnel Reserve Officer 0.96 - - - - Training Officer 1.00 1.00 1.00 1.00 - Total FTEs 1.96 1.00 1.00 1.00 - FY 2012 FY 2013 FY 2013 FY 2014 Variance Actual Budget Projected Budget to Budget Expenditures Personnel 116,063$ 90,978$ 90,978$ 92,250$ 1.4% Operations & Maintenance 79,802 86,835 86,835 98,500 13.4% Capital - - - - 0.0% Total Expenditures 195,865$ 177,813$ 177,813$ 190,750$ 7.3% Police Professional Development & Training is tasked to ensure that members provide the most efficient and effective public safety service to the community in support of a community policing philosophy. Personnel are trained to deliver a high level of service that not only meets community expectations but also allows our staff to maintain professional certifications. Professional Development & Training focuses on developing the skills, abilities, knowledge, and talents of the OVPD to maintain professional and expert service. This program is also responsible for new-hire recruit officer orientation. This orientation is provided to prepare new officers for the stresses of attending a police academy along with orienting them to Oro Valley. Program Budgets FY 2013/2014 Expenditure and Staffing Changes Personnel Personnel increased 1.4% to reflect increased pension costs. Operations & Maintenance Operations & Maintenance increased 13.4% due mainly to increased field supplies costs. 2013-2014 Annual Budget Program Budgets208 FY 2012 FY 2013 FY 2013 FY 2014 Variance Actual Budget Projected Budget to Budget Personnel Sergeant 1.00 1.00 1.00 1.00 - Total FTEs 1.00 1.00 1.00 1.00 - FY 2012 FY 2013 FY 2013 FY 2014 Variance Actual Budget Projected Budget to Budget Expenditures Personnel 104,903$ 103,683$ 103,683$ 107,583$ 3.8% Operations & Maintenance 2,803 4,500 4,500 6,650 47.8% Capital - - - - 0.0% Total Expenditures 107,706$ 108,183$ 108,183$ 114,233$ 5.6% Police It is the policy of the OVPD to thoroughly investigate all complaints against its employees in order to preserve public confidence in our willingness to oversee and control the actions of our employees. The Office of Professional Standards (O.P.S.) is managed by a sergeant who oversees and investigates citizens complaints and internally ordered inspections. O.P.S. also maintains records of use of force incidents, vehicle pursuits and policy revisions. Finally, O.P.S. conducts the hiring process and background investigations for interested Police Department applicants. Program Budgets FY 2013/2014 Expenditure and Staffing Changes Personnel Personnel costs increased 3.8% due to step increases budgeted in FY 2014. Operations & Maintenance Operations & Maintenance increased 47.8% due to an increase in outside professional services costs. 2013-2014 Annual Budget Program Budgets209 FY 2012 FY 2013 FY 2013 FY 2014 Variance Actual Budget Projected Budget to Budget Personnel Commander 1.00 1.00 1.00 1.00 - Lieutenant 2.00 2.00 2.00 2.00 - Emergency Response Planner - 1.00 1.00 1.00 - Senior Office Specialist - - - 1.00 1.00 Office Specialist 1.00 1.00 1.00 - (1.00) Total FTEs 4.00 5.00 5.00 5.00 - FY 2012 FY 2013 FY 2013 FY 2014 Variance Actual Budget Projected Budget to Budget Expenditures Personnel 449,383$ 515,581$ 515,581$ 535,476$ 3.9% Operations & Maintenance 4,437 400 500 800 100.0% Capital - - - - 0.0% Total Expenditures 453,820$ 515,981$ 516,081$ 536,276$ 3.9% Police The Support Services Division (SSD) provides the necessary support and enhancement to the Field Services Division and Administration. SSD personnel are specially trained in law enforcement functions specific to the organization and community, which enhance our ability to provide service. SSD must consistently evaluate the service efforts of the department and make changes based upon these efforts. This is accomplished through technology, expertise, resource allocation, intelligence gathering, and education. Program Budgets FY 2013/2014 Expenditure and Staffing Changes Personnel Personnel increased 3.9% due to merits and a position reclass budgeted in FY 2014. Operations & Maintenance Operations & Maintenance increased 100% due to increased field supplies costs. 2013-2014 Annual Budget Program Budgets210 FY 2012 FY 2013 FY 2013 FY 2014 Variance Actual Budget Projected Budget to Budget Personnel Sergeant 1.00 1.00 1.00 1.00 - Detective 5.00 6.00 6.00 6.00 - Crime Analyst 1.00 1.00 1.00 - (1.00) Total FTEs 7.00 8.00 8.00 7.00 (1.00) FY 2012 FY 2013 FY 2013 FY 2014 Variance Actual Budget Projected Budget to Budget Expenditures Personnel 703,011$ 747,863$ 747,863$ 707,152$ -5.4% Operations & Maintenance 9,087 10,525 11,655 14,400 36.8% Capital - - - - 0.0% Total Expenditures 712,098$ 758,388$ 759,518$ 721,552$ -4.9% Police The Criminal Investigations Unit (CIU) is the primary investigative arm of the OVPD and is responsible for investigating all major crimes that occur in Oro Valley. These crimes include Crimes against Person(s) - Homicide, Sexual Assault, Aggravated Assault, etc., and Crimes against Property - Burglary, Larceny, Auto Theft, etc. Detectives are cross-trained to investigate the various types of crimes committed in Oro Valley and many of them network with task force groups outside Oro Valley to enhance service within our community. Program Budgets FY 2013/2014 Expenditure and Staffing Changes Personnel Personnel costs decreased 5.4% due to the Crime Analyst position being relocated to the Field Services Division. Operations & Maintenance Operations & Maintenance increased 36.8% due to non-capitalized equipment costs. 2013-2014 Annual Budget Program Budgets211 FY 2012 FY 2013 FY 2013 FY 2014 Variance Actual Budget Projected Budget to Budget Personnel Sergeant 1.00 1.00 1.00 1.00 - SRO Officer 7.00 7.00 7.00 8.00 1.00 Total FTEs 8.00 8.00 8.00 9.00 1.00 FY 2012 FY 2013 FY 2013 FY 2014 Variance Actual Budget Projected Budget to Budget Expenditures Personnel 707,212$ 753,143$ 753,143$ 852,857$ 13.2% Operations & Maintenance 532 125 150 100 -20.0% Capital - - - - 0.0% Total Expenditures 707,744$ 753,268$ 753,293$ 852,957$ 13.2% Police The School Resource Officer (SRO) program is designed upon the "basic triad concept" of being a law enforcement officer, teacher, and counselor to the school community. This "community" includes the school administration, faculty and staff, parents, students, and the schools surrounding the Oro Valley community. An SRO provides this service in many ways while always taking a personal interest in students' lives, activities, and problems. Officers are assigned to: Canyon del Oro High School, Ironwood Ridge High School, Copper Creek Elementary, Painted Sky Elementary, and Wilson K-8. Program Budgets FY 2013/2014 Expenditure and Staffing Changes Personnel Personnel increased 13.2% due to an additional SRO Officer budgeted in FY 2014. The filling of this position is contingent upon an intergovernmental agreement for grant funding with Pusch Ridge Christian Academy. Operations & Maintenance Operations & Maintenance decreased 20% as field supplies are not budgeted in FY 2014. 2013-2014 Annual Budget Program Budgets212 FY 2012 FY 2013 FY 2013 FY 2014 Variance Actual Budget Projected Budget to Budget Personnel Sergeant 1.00 1.00 1.00 1.00 - Officer 7.00 7.00 7.00 7.00 - Total FTEs 8.00 8.00 8.00 8.00 - FY 2012 FY 2013 FY 2013 FY 2014 Variance Actual Budget Projected Budget to Budget Expenditures Personnel 695,227$ 731,983$ 731,983$ 786,220$ 7.4% Operations & Maintenance - - - - 0.0% Capital 37,177 88,800 88,800 46,000 -48.2% Total Expenditures 732,403$ 820,783$ 820,783$ 832,220$ 1.4% Police The OVPD is actively involved in multi-jurisdictional joint task forces across southern Arizona. Counter Narcotics Alliance (CNA) is a multi-jurisdictional drug task force that consists of 18 participating agencies to include local law enforcement, prosecuting agencies, the Arizona High Intensity Drug Trafficking Area (AZHIDTA), and the Davis Monthan Air Force Base (DMAFB) operating in the Pima County metro area. Each agency compliments the task force with staffing and administrative processes. Drug Enforcement Agency (DEA) has numerous multi-jurisdictional task force groups that include federal agents, prosecuting agencies, and state and local law enforcement agencies. Each task force takes a different segment of the trafficking, production and use of drug related crime to combat this national epidemic. Joint Terrorism Task Force (JTTF) are small cells of highly trained, locally based investigators, analysts, linguists, SWAT experts, and other specialists from dozens of U.S. law enforcement and intelligence agencies. It is a multi- agency effort led by the Justice Department and FBI designed to combine the resources of federal, state, and local law enforcement. The Gang and Immigration Intelligence Team Enforcement Mission (GIITEM) is a multi-jurisdictional task force that focuses on street gang crime as well as U.S. border and immigration crimes. GIITEM strives to accomplish its mission through a task force concept involving personnel from tribal, federal, state, county, and municipal law enforcement agencies. Program Budgets FY 2013/2014 Expenditure and Staffing Changes Personnel Personnel costs increased 7.4% due to step increases budgeted in FY 2014 and reallocation of officers among program areas. Capital Capital decreased 48.2% due to grant funded equipment that was budgeted in FY 2013. Capital expenditures within this program area are generally considered contingent upon grant funding and vary widely from year to year. 2013-2014 Annual Budget Program Budgets213 FY 2012 FY 2013 FY 2013 FY 2014 Variance Actual Budget Projected Budget to Budget Personnel Sergeant 1.00 1.00 1.00 1.00 - Officer/Special Events Coord.- - - 1.00 1.00 Officer 1.00 2.00 2.00 1.00 (1.00) Total FTEs 2.00 3.00 3.00 3.00 - FY 2012 FY 2013 FY 2013 FY 2014 Variance Actual Budget Projected Budget to Budget Expenditures Personnel 214,375$ 273,261$ 241,055$ 279,424$ 2.3% Operations & Maintenance 35,346 38,375 37,685 49,390 28.7% Capital - - - - 0.0% Total Expenditures 249,721$ 311,636$ 278,740$ 328,814$ 5.5% Police The Community Resource Unit (CRU) is dedicated to preventing crime through public education and offers a wide range of presentations and programs. Neighborhood Watch Program Consists of a cohesive body of concerned citizens addressing issues that affect their neighborhood. OVPD has two officers who organize, train, and provide valuable information to these neighborhoods in order to reduce and prevent crime. Neighborhood Watch provides communities a direct liaison with the OVPD and quarterly newsletters are distributed. Crime Free Multi-Housing Program This program is similar to Neighborhood Watch but for apartment complexes. It encourages neighbors to interact with one another but also holds apartment managers to strict criteria when signing new tenants. Citizen Volunteer Assistants Program (C.V.A.P.) This program provides the opportunity for citizens to serve their community by assisting the Police department. The volunteers become an extra set of eyes and ears and assist in many different areas. Volunteers patrol residential neighborhoods, business complexes, shopping centers and assist with scene security at accidents or crime scenes. Explorers Program Consists of young men and women, ages 14 to 21, who are interested in a career in law enforcement. Police officers are the Explorer advisors and assist in weekly instruction and training. Explorers dedicate themselves to community service and help the CRU during special events. Program Budgets FY 2013/2014 Expenditure and Staffing Changes Personnel Personnel costs increased 2.3% due to step increases budgeted in FY 2014. Operations & Maintenance Operations & Maintenance increased 28.7% due to travel & training, uniforms, gas & electricity, field supplies and non- capitalized equipment. 2013-2014 Annual Budget Program Budgets214 FY 2012 FY 2013 FY 2013 FY 2014 Variance Actual Budget Projected Budget to Budget Personnel Communications Supervisor 1.00 1.00 1.00 1.00 - Lead Dispatcher 3.00 3.00 3.00 3.00 - Dispatcher 9.00 9.00 9.00 9.00 - Total FTEs 13.00 13.00 13.00 13.00 - FY 2012 FY 2013 FY 2013 FY 2014 Variance Actual Budget Projected Budget to Budget Expenditures Personnel 790,066$ 825,329$ 825,329$ 868,135$ 5.2% Operations & Maintenance 2,482 3,350 3,337 3,350 0.0% Capital - - - - 0.0% Total Expenditures 792,548$ 828,679$ 828,666$ 871,485$ 5.2% Police The Communications Center is the primary answering point for all 9-1-1 emergency calls in Oro Valley. The center operates 24 hours a day, 7 days a week. Public Safety Communications is skilled emergency service work that involves receiving emergency and non-emergency requests for police assistance, determining the nature and the urgency of calls, initiating police or other emergency service personnel action and maintaining close contact with field units to monitor response and needed support requirements. Program Budgets FY 2013/2014 Expenditure and Staffing Changes Personnel Personnel costs increased 5.2% due to step increases budgeted in FY 2014. 2013-2014 Annual Budget Program Budgets215 FY 2012 FY 2013 FY 2013 FY 2014 Variance Actual Budget Projected Budget to Budget Personnel Records Supervisor 1.00 1.00 1.00 1.00 - Records Specialist 5.00 5.00 5.00 5.00 - Office Assistant 1.25 1.25 1.25 1.25 - Total FTEs 7.25 7.25 7.25 7.25 - FY 2012 FY 2013 FY 2013 FY 2014 Variance Actual Budget Projected Budget to Budget Expenditures Personnel 350,863$ 358,112$ 358,112$ 364,148$ 1.7% Operations & Maintenance 2,531 2,650 2,650 3,250 22.6% Capital - - - - 0.0% Total Expenditures 353,394$ 360,762$ 360,762$ 367,398$ 1.8% Police The Records Unit is responsible for processing, distributing, and maintaining all public law enforcement records generated by OVPD. The Records Unit adheres to the release policy mandated by state law. The Unit is also responsible for the handling of impound releases of vehicles, verifying the required documentation through the Motor Vehicle Division, preparing the proper paperwork, and collecting the necessary fees. Program Budgets FY 2013/2014 Expenditure and Staffing Changes Personnel Personnel costs increased 1.7% due to step increases and merits budgeted in FY 2014. Operations & Maintenance Operations & Maintenance increased 22.6% due to non-capitalized equipment costs. 2013-2014 Annual Budget Program Budgets216 FY 2012 FY 2013 FY 2013 FY 2014 Variance Actual Budget Projected Budget to Budget Personnel Detective/IT Manager 1.00 1.00 1.00 1.00 - Total FTEs 1.00 1.00 1.00 1.00 - FY 2012 FY 2013 FY 2013 FY 2014 Variance Actual Budget Projected Budget to Budget Expenditures Personnel 97,224$ 99,163$ 99,163$ 102,702$ 3.6% Operations & Maintenance 7,043 21,625 22,050 197,052 811.2% Capital - - - 148,340 0.0% Total Expenditures 104,267$ 120,788$ 121,213$ 448,094$ 271.0% Police The Information Technology Unit (ITU) provides support service to the department and is responsible for planning, acquiring, implementing and developing information technology solutions to facilitate the department's mission. The ITU also evaluates and acquires emerging technologies, information systems and networks that have law enforcement applications. Program Budgets FY 2013/2014 Expenditure and Staffing Changes Personnel Personnel costs increased 3.6% due to step increases budgeted in FY 2014. Operations & Maintenance Operations & Maintenance increased 811.2% for software licensing, equipment repair & maintenance, and non-capitalized equipment. Capital Budgeted capital in FY 2014 includes replacement of servers, computers, and mobile data computers, as well as several ITU-related projects and system upgrades. 2013-2014 Annual Budget Program Budgets217 FY 2012 FY 2013 FY 2013 FY 2014 Variance Actual Budget Projected Budget to Budget Personnel Fleet Maintenance Mechanic II 1.00 1.00 1.00 1.00 - Reserve Officer - 0.48 0.48 0.48 - Total FTEs 1.00 1.48 1.48 1.48 - FY 2012 FY 2013 FY 2013 FY 2014 Variance Actual Budget Projected Budget to Budget Expenditures Personnel 60,227$ 85,247$ 85,247$ 87,565$ 2.7% Operations & Maintenance 466,518 494,870 476,470 927,800 87.5% Capital 68,821 183,093 171,394 - -100.0% Total Expenditures 595,566$ 763,210$ 733,111$ 1,015,365$ 33.0% Fleet Maintenance assists with the procurement, outfitting, assigning and maintenance of all vehicles in the OVPD fleet. Fleet Maintenance ensures that all warranty work is performed and the fleet is maintained to manufacturer specifications at the most competitive rates available. It is further tasked with preventative safety equipment maintenance. FY 2013/2014 Expenditure and Staffing Changes Personnel Personnel costs increased 2.7% due to step increases and merits budgeted in FY 2014. Operations & Maintenance Operations & Maintenance increased 87.5% due to vehicle replacement charges, as well as vehicle reserve set-aside charges for future year replacement. The purchase of the vehicles will be through the Town's Fleet Fund. Capital Capital decreased 100%. Beginning FY 2014 vehicle replacements will be through the Town's Fleet Fund. PoliceProgram Budgets 2013-2014 Annual Budget Program Budgets218 FY 2012 FY 2013 FY 2013 FY 2014 Variance Actual Budget Projected Budget to Budget Personnel Lead IT Forensic Tech 1.00 1.00 1.00 1.00 - Property/ID Technician 2.00 2.00 2.00 2.00 - Reserve Officer - 0.48 0.48 0.48 - Total FTEs 3.00 3.48 3.48 3.48 - FY 2012 FY 2013 FY 2013 FY 2014 Variance Actual Budget Projected Budget to Budget Expenditures Personnel 203,689$ 228,858$ 228,858$ 244,161$ 6.7% Operations & Maintenance 35,059 33,950 34,950 40,200 18.4% Capital - - 350,000 0.0% Total Expenditures 238,748$ 262,808$ 263,808$ 634,361$ 141.4% Police The Property and ID Unit is staffed with skilled technicians that locate, collect, secure and preserve a variety of critical, physical and sometimes fragile evidence at crime scenes. Technicians must write accurate narratives, follow up on collected evidence for scientific analysis, liaison with other agencies for complete related casework, and prepare testimony for court proceedings. Program Budgets FY 2013/2014 Expenditure and Staffing Changes Personnel Personnel costs increased 6.7% due to step increases budgeted in FY 2014 and reallocation of Reserve Officers among program areas. Operations & Maintenance Operations & Maintenance increased 18.4% due to increased field supplies and outside professional services costs. Capital Budgeted capital in FY 2014 is for an expanded property and evidence storage facility. 2013-2014 Annual Budget Program Budgets219 FY 2012 FY 2013 FY 2013 FY 2014 Variance Actual Budget Projected Budget to Budget Personnel Commander 1.00 1.00 1.00 1.00 - Lieutenant 2.00 2.00 2.00 2.00 - Crime Analyst - - - 1.00 1.00 Emergency Response Planner 1.00 - - - - Senior Office Specialist 1.00 1.00 1.00 2.00 1.00 Office Specialist 1.00 1.00 1.00 - (1.00) Total FTEs 6.00 5.00 5.00 6.00 1.00 FY 2012 FY 2013 FY 2013 FY 2014 Variance Actual Budget Projected Budget to Budget Expenditures Personnel 606,341$ 523,232$ 523,232$ 628,220$ 20.1% Operations & Maintenance 669 1,500 1,500 1,500 0.0% Capital - - - - 0.0% Total Expenditures 607,010$ 524,732$ 524,732$ 629,720$ 20.0% The Field Services Division (FSD) is the largest division of the Police Department and is comprised of officers and supervisors who provide the "front line" service to the community. FSD must continually monitor crime trends, deployment methods, beat structure, business and neighborhood issues and response times to ensure that the department is providing the most efficient and effective services. PoliceProgram Budgets FY 2013/2014 Expenditure and Staffing Changes Personnel Personnel increased 20.1% due to a position reassignment from another program area, a position reclassification, and merits budgeted in FY 2014. 2013-2014 Annual Budget Program Budgets220 FY 2012 FY 2013 FY 2013 FY 2014 Variance Actual Budget Projected Budget to Budget Personnel Sergeant 6.00 6.00 6.00 6.00 - Lead Officer 6.00 6.00 6.00 7.00 1.00 K-9 Officer 3.00 3.00 3.00 2.00 (1.00) DUI Officer 2.00 2.00 2.00 2.00 - Officer 29.00 30.00 30.00 30.00 - Reserve Officer - 0.48 0.48 1.92 1.44 Total FTEs 46.00 47.48 47.48 48.92 1.44 FY 2012 FY 2013 FY 2013 FY 2014 Variance Actual Budget Projected Budget to Budget Expenditures Personnel 4,134,865$ 4,206,906$ 4,206,906$ 4,366,845$ 3.8% Operations & Maintenance 9,371 15,655 15,655 16,390 4.7% Capital - - - 10,000 0.0% Total Expenditures 4,144,236$ 4,222,561$ 4,222,561$ 4,393,235$ 4.0% Police The Patrol Division consists of six (6) Squads, supplemented by one (1) Motorcycle Squad. The Patrol Division focuses on providing 24 hours, 7 days a week police service to the citizens, schools, business owners, employees and visitors of Oro Valley. OVPD divides the Town into four (4) separate geographical patrol areas. Patrol deployment methods are based on a variety of factors with the most significant factors being response times, call loads, crime statistics, and neighborhood issues. The Patrol Division focuses on high visibility patrol and strict enforcement to deter crime from our community. Programs like Adopt-A-Business allow patrol officers to work cooperatively with a segment of our community in a proactive manner to solve issues before they become problems. K-9 officers and DUI officers are incorporated within the Patrol Division providing service 7 days a week. K-9 Three K-9 teams (handler/canine) are deployed throughout the week. Two teams are "dual purpose" and are trained in two specific areas; patrol/handler protection, and narcotics detection. The remaining team is trained to detect explosives and an accelerant component used to make explosive devices, and is a member of the Pima Regional Bomb Squad. Two separate canine breeds are used: German Shepard and Belgium Malinois. DUI The DUI Unit is comprised of two officers whose primary function is to actively seek impaired drivers. Patrol Officers who have developed special skills in the area of drug recognition and phlebotomy supplement them in their task. DUI Officers assume the lead investigative role in impairment investigations initiated by Patrol Officers and are well versed in the field of impaired driver investigations. OVPD is a participant in the Southern Arizona DUI Task Force and participates in task force deployments annually. Program Budgets FY 2013/2014 Expenditure and Staffing Changes Personnel Personnel costs increased 3.8% due to additional reserve officers and step increases budgeted in FY 2014. Operations & Maintenance Operations & Maintenance increased 4.7% due to field supplies and memberships & subscriptions. Capital Budgeted capital in FY 2014 is for a replacement canine. 2013-2014 Annual Budget Program Budgets221 FY 2012 FY 2013 FY 2013 FY 2014 Variance Actual Budget Projected Budget to Budget Personnel Sergeant 1.00 1.00 1.00 1.00 - Lead Officer 1.00 1.00 1.00 1.00 - Officer/Special Events Coord.1.00 - - - - Motorcycle Officer 7.00 7.00 7.00 7.00 - Total FTEs 10.00 9.00 9.00 9.00 - FY 2012 FY 2013 FY 2013 FY 2014 Variance Actual Budget Projected Budget to Budget Expenditures Personnel 691,771$ 824,893$ 824,893$ 836,417$ 1.4% Operations & Maintenance 12,131 16,000 16,000 14,700 -8.1% Capital - - - - 0.0% Total Expenditures 703,902$ 840,893$ 840,893$ 851,117$ 1.2% Police The goals of the Oro Valley Motor Unit are: to respond to citizens traffic concerns; be highly visible to the public and; enforce traffic laws. By staying proactive and achieving these goals, the Motor Unit is able to deter criminal behavior from residing in or targeting Oro Valley. The three measures deploying the Motor Unit are: highest collision intersections, special events, and citizen traffic concerns. Program Budgets FY 2013/2014 Expenditure and Staffing Changes Personnel Personnel increased 1.4% due to step increases budgeted in FY 2014. Operations & Maintenance Operations & Maintenance decreased 8.1% due to non-capitalized equipment and memberships & subscriptions. 2013-2014 Annual Budget Program Budgets222 FY 2012 FY 2013 FY 2013 FY 2014 Variance Actual Budget Projected Budget to Budget Personnel Sergeant 1.00 1.00 1.00 1.00 - Lead Officer 1.00 1.00 1.00 1.00 - Officer 3.00 4.00 4.00 4.00 - Total FTEs 5.00 6.00 6.00 6.00 - FY 2012 FY 2013 FY 2013 FY 2014 Variance Actual Budget Projected Budget to Budget Expenditures Personnel 453,431$ 545,346$ 545,346$ 565,088$ 3.6% Operations & Maintenance - 300 300 1,000 233.3% Capital - - - - 0.0% Total Expenditures 453,431$ 545,646$ 545,646$ 566,088$ 3.7% Police The Community Action Team (C.A.T.) serves as one of OVPD's most pro-active and successful community policing initiatives. The primary premise of C.A.T. is to focus on the "root-causes" of problems and identify which crimes lead to secondary crimes and how they are associated. C.A.T. members spend a great deal of time gathering information on specific issues through various connections with other law enforcement organizations and the public. These "partnerships" foster trust between the community and our organization and has been paramount in our ability to combat crime. Program Budgets FY 2013/2014 Expenditure and Staffing Changes Personnel Personnel costs increased 3.6% due to step increases budgeted in FY 2014. Operations & Maintenance Operations & Maintenance increased 233.3% due to non-capitalized equipment. 2013-2014 Annual Budget Program Budgets223 FY 2012 FY 2013 FY 2013 FY 2014 Variance Actual Budget Projected Budget to Budget Expenditures Capital -$ 89,066$ 82,646$ -$ -100.0% Total Expenditures -$ 89,066$ 82,646$ -$ -100.0% FY 2012 FY 2014 Variance Actual Budget Projected Budget to Budget Residential Impact Fees 26,195$ 48,376$ 48,376$ 106,393$ 119.9% Commercial Impact Fees 4,423 1,464 13,000 999 -31.8% Interest Income 80 - 700 - 0.0% Total Revenues 30,698$ 49,840$ 62,076$ 107,392$ 115.5% Revenue Sources FY 2013 This fund is used to manage the collection and expenditure of development impact fees dedicated to public safety purposes. Police impact fees are assessed on both residential and commercial development within the Town. Police Impact Fee Fund Overview FY 2013/2014 Expenditure Changes Capital Capital decreased 100%. Budgeted capital in FY 2013 was for two new vehicles. 2013-2014 Annual Budget Program Budgets 224 FY 2012 FY 2014 Actual Budget Projected Budget 36.00 36.00 36.00 37.00 FY 2012 FY 2014 % Actual Budget Projected Budget to Budget Administration 6,560,252$ 8,551,015$ 8,486,353$ 9,414,859$ 10.1% Engineering & Planning 3,420,479 2,827,321 2,468,384 1,694,275 -40.1% Production 2,244,931 2,401,617 2,385,702 2,874,406 19.7% Distribution 608,824 830,588 825,820 839,509 1.1% 12,834,486$ 14,610,541$ 14,166,259$ 14,823,049$ 1.5% Does not include contingency or non-cash outlays for depreciation and amortization FY 2012 FY 2014 % Actual Budget Projected Budget to Budget Charges for Services 557,222$ 475,200$ 572,400$ 597,100$ 25.7% Interest 125,912 75,000 66,250 66,250 -11.7% Miscellaneous 143,145 - 20,000 - 0.0% WIFA Loan Proceeds - - - 1,300,000 0.0% Water Sales 11,578,981 11,707,800 11,693,000 11,748,000 0.3% Other Financing Sources 100,000 100,000 100,000 100,000 0.0% 12,505,260$ 12,358,000$ 12,451,650$ 13,811,350$ 11.8% Total FTEs FY 2013 FY 2013 Revenue Sources FY 2013 FY 2014 Expenditures by Division FY 2014 Expenditures by Category Expenditures by Division The primary function of the Water Utility is the protection of public health and safety through the production and efficient delivery of water that meets and/or exceeds water quality standards and in sufficient quantity to meet customer demands. Responsibilities include regulatory compliance, customer service, promoting water conservation, generating customer billings, collection of utility revenues, efficient use of available water resources, planning for future water resource requirements, and coordination with the development community. Water Utility Overview O&M 6,084,961 41%Capital 2,654,750 18% Personnel 2,688,464 18% Other Financing Uses 3,178 0% Debt Service 3,391,696 23% Distribution 839,509 6% Production 2,874,406 19% Engineering & Planning 1,694,275 11% Administration 9,414,859 64% 2013-2014 Annual Budget Program Budgets225 Mission CY 2012 and FY 2013 Highlights FY 2014 Goals and Objectives Highlights & Goals Water Utility The Oro Valley Water Utility has the responsibility and obligation to ensure that safe, high quality and reliable drinking water is delivered to every customer. The Utility ensures that adequate amounts of water and pressure are available at all times. The Utility will strive to develop, finance and maintain all infrastructures deemed necessary to meet public safety needs. The Utility staff shall strive to treat all customers with respect, courtesy and professionalism and provide the highest quality of customer service. – Refunded $16,595,000 of Senior Lien Bonds for a net present value savings of $3,385,000 due to lower interest rates and additional payment of $3,000,000 to reduce the remaining principal amount – Constructed and completed the Campo Bello Water Pipeline Improvements Project – Completed the Tangerine Hills valve and Hydrant Replacement Project – Constructed a chlorine storage facility at the secure reclaimed water site and away from commercial and residential areas – Increased customer base by 171 new connections for a total of 18,716 connections as of 12/31/12 – Potable water deliveries were 2.27 billion gallons in CY 2012 – Reclaimed water deliveries were 684 million gallons in CY 2012 – Delivered 418 million gallons of our Central Arizona Project (CAP) water under the Intergovernmental Agreement with the City of Tucson in CY 2012 – Replaced 2,498 water meters under the Meter Replacement Program and Advanced Metering Infrastructure Project – Installed Advanced Metering Infrastructure (AMI) communications equipment in the Oro Valley water service area – Reviewed and approved 7 water improvement plans for construction – Oro Valley and Countryside water systems found to be in compliance with the Arizona Department of Environmental Quality (ADEQ) sanitary survey – Collected 2,250 water quality samples with all results meeting federal, state and local water quality regulations – Performed 144 residential water use audits, reducing water usage and costs for our customers – Recharged 5,000 acre feet of our CAP water in CY 2012 – Installed additional water system security features and updated the Emergency Response Plan and the Business Continuity Plan – Issued a renewed Designation of Assured Water Supply through 2023 from the Arizona Department of Water Resources (ADWR) – Permitted 2 additional recovery wells which further reduced our obligations to the Central Arizona Groundwater Replenishment District (CAGRD) – Completed the ADWR Annual Report minimizing the cut to the aquifer for groundwater storage, reducing CAGRD obligations, and reducing lost and unaccounted for water Focus Area: Fiscal Responsibility ■ Perform an annual water rates analysis to evaluate revenue requirements over a projected 5-year period ■ Complete a cost of service study to evaluate adjusting the rate structure based on customer classifications ■ Continue the Meter Replacement Program and the Advanced Metering Infrastructure Project to accurately measure and bill for water usage ■ Prepare an Infrastructure Improvements Plan for evaluating water development impact fees ■ Reduce debt and seek low interest loans when feasible Focus Area: Communication ■ Provide our customers with updates and information through billing inserts and the Oro Valley Vista newsletter ■ Continue to promote water conservation through water use audits, public education and outreach ■ Implement a youth water conservation education class to be taught in local elementary schools ■ Respond to customer concerns in a prompt, courteous and effective manner ■ Implement a customer web portal to assist customers in early leak detection and water conservation methods Focus Area: Economic Development ■ Review water improvement plans for new development ■ Construct and inspect water facilities in accordance with approved plans to meet demands and enhance system reliability ■ Conduct long-term planning for delivery of our Central Arizona Project (CAP) water Focus Area: Community Services ■ Continue to provide excellent customer service ■ Maintain a safe and reliable drinking water supply that meets all water quality standards ■ Install Advanced Metering Infrastructure equipment in the Oro Valley water service area ■ Develop a new Reclaimed Water Intergovernmental Agreement with Tucson Water ■ Conduct water resource planning for existing and future needs 2013-2014 Annual Budget Program Budgets226 FY 2012 FY 2013 FY 2014 Actual Estimate Projected ►Number of voluntary water conservation audits 144 120 120 ►Debt service coverage (annual net operating revenue divided by 1.71 1.54 1.47 annual debt service) for water revenue bonds (goal 1.3 minimum) ►Number of years worth of reserves contained in groundwater storage 3.2 3.1 2.8 accounts (data for calendar year) ►Compliant with Arizona Department of Water Resources assured water Yes Yes Yes supply requirements for service area ►Compliant with all Arizona Department of Environmental Yes Yes Yes Quality and Arizona Department of Water Resources regulations ►Percentage of critical broken valves replaced within 45 days after they are 100% 100% 100% identified as being broken ►Percentage of broken fire hydrants repaired or replaced within 7 days after 100% 100% 100% they are identified as being broken FY 2012 FY 2013 FY 2014 Actual Estimate Projected ►Number of metered connections 18,599 18,815 19,000 ►Number of water meters replaced 2,498 2,700 3,500 ►Number of water plans approved 10 7 11 ►Number of water plans inspected 6 5 8 ►Feet of pipeline inspected 8,700 7,200 10,000 ►Percentage of unplanned service outages as a percentage of total <0.002% <0.003% <0.004% annual customer hours ►Percentage of valves in distribution system exercised 7% 7% 7% ►Number of operating wells rehabilitated (out of 22 well sites)2 3 3 ►Number of reservoirs cleaned and inspected (out of 19 reservoir sites) 6 5 5 Performance Measures Workload Indicators Measures & Indicators Water Utility 2013-2014 Annual Budget Program Budgets227 Water UtilityOrganizational Chart WATER UTILITY DIRECTOR ADMINISTRATIVE SUPPORT UTILITY ADMINISTRATION WATER CONSERVATION CUSTOMER SERVICE METERS ENGINEERING & PLANNING ENGINEERING/OPERATIONS DIVISION WATER PRODUCTION WATER DISTRIBUTION 2013-2014 Annual Budget Program Budgets228 FY 2012 FY 2013 FY 2013 FY 2014 Variance Actual Budget Projected Budget to Budget Personnel Water Utility Director 1.00 1.00 1.00 1.00 - Water Utility Administrator 1.00 1.00 1.00 1.00 - Senior Office Specialist 1.00 1.00 1.00 1.00 - Customer Service Supervisor 1.00 1.00 1.00 1.00 - Meter Operations Supervisor 1.00 1.00 1.00 1.00 - Water Utility Operator I 5.00 5.00 5.00 5.00 - Customer Service Rep.4.00 4.00 4.00 4.00 - Water Conservation Specialist 1.00 1.00 1.00 1.00 - Total FTEs 15.00 15.00 15.00 15.00 - FY 2012 FY 2013 FY 2013 FY 2014 Variance Actual Budget Projected Budget to Budget Expenditures Personnel 1,022,462$ 1,005,857$ 984,337$ 1,026,625$ 2.1% Operations & Maintenance 2,034,933 3,688,938 3,333,093 3,455,360 -6.3% Capital 777,458 984,500 1,267,800 1,538,000 56.2% Other Financing Uses - 2,319 2,319 3,178 37.0% Debt Service 2,725,399 2,869,401 2,898,804 3,391,696 18.2% Total Expenditures 6,560,252$ 8,551,015$ 8,486,353$ 9,414,859$ 10.1% Does not include contingency or non-cash outlays for depreciation and amortization The Administration Division is responsible for the overall management of the Utility, customer service, meter reading, water utility billings, collection of water revenues, administration of department's budget, implementation of water rates, fees and charges, and strategic planning. Programs within this division include: • Billings/Collections/Meters • Water Conservation • Water Resource Planning Water UtilityProgram Budgets FY 2013/2014 Expenditure and Staffing Changes Personnel Personnel increased 2.1% due to merits budgeted in FY 2014. Operations & Maintenance Operations & Maintenance decreased 6.3% due to a reduction in regulatory expenses. Capital Capital increased 56.2% for meter replacements. Debt Service Debt Service increased 18.2% for principal and interest payments on a new refunding obligation and a potential WIFA loan. Administration Division Overview 2013-2014 Annual Budget Program Budgets229 FY 2012 FY 2013 FY 2013 FY 2014 Variance Actual Budget Projected Budget to Budget Personnel Engineering Division Manager 1.00 1.00 1.00 1.00 - Project Manager 1.00 1.00 1.00 1.00 - Engineering Design Reviewer 1.00 1.00 1.00 1.00 - Construction Inspector 2.00 2.00 2.00 2.00 - Civil Engineering Technician 1.00 1.00 1.00 1.00 - Total FTEs 6.00 6.00 6.00 6.00 - FY 2012 FY 2013 FY 2013 FY 2014 Variance Actual Budget Projected Budget to Budget Expenditures Personnel 493,344$ 504,375$ 504,375$ 521,825$ 3.5% Operations & Maintenance 116,156 162,946 187,109 307,450 88.7% Capital 2,810,979 2,160,000 1,776,900 865,000 -60.0% Total Expenditures 3,420,479$ 2,827,321$ 2,468,384$ 1,694,275$ -40.1% This Division is responsible for managing design and construction of the capital improvement program and new development, construction inspection and the geographic information mapping system. Programs within this division include: • Construction Inspection • Mapping • Capital Improvements Water UtilityProgram Budgets FY 2013/2014 Expenditure and Staffing Changes Personnel Personnel increased 3.5% due to merits budgeted in FY 2014. Operations & Maintenance Operations & Maintenance increased 88.7% due to an increase in outside professional services. Capital Capital decreased 60% due to completion of several capital projects. Engineering & Planning Division Overview 2013-2014 Annual Budget Program Budgets230 FY 2012 FY 2013 FY 2013 FY 2014 Variance Actual Budget Projected Budget to Budget Personnel Water Production Superintendent 1.00 1.00 1.00 1.00 - Lead Water Utility Operator 1.00 1.00 1.00 1.00 - Electric and Control Technician - - - 1.00 1.00 Water Utility Operator III - - - 5.00 5.00 Water Utility Operator II 5.00 5.00 5.00 - (5.00) Total FTEs 7.00 7.00 7.00 8.00 1.00 FY 2012 FY 2013 FY 2013 FY 2014 Variance Actual Budget Projected Budget to Budget Expenditures Personnel 496,963$ 487,740$ 495,950$ 569,045$ 16.7% Operations & Maintenance 1,735,590 1,901,877 1,881,752 2,080,111 9.4% Capital 12,378 12,000 8,000 225,250 1777.1% Total Expenditures 2,244,931$ 2,401,617$ 2,385,702$ 2,874,406$ 19.7% Does not include non-cash outlays for depreciation and amortization Production programs within this division are responsible for production of the potable water supply, operation and maintenance of all potable and reclaimed water production facilities including wells, reservoirs, booster stations, electrical controls and operation and maintenance of security devices. Production programs include: • Disinfection • Security • Preventative Maintenance Water UtilityProgram Budgets FY 2013/2014 Expenditure and Staffing Changes Personnel Personnel increased 16.7% due to the new Electric and Control Technician position, as well as reclasses and merits budgeted in FY 2014. Operations & Maintenance Operations & Maintenance increased 9.4% due to increases in power purchased for pumping and equipment repair & maintenance. Capital The increased capital capacity is for reservoirs, booster stations and equipment. Operations Division - Production Overview 2013-2014 Annual Budget Program Budgets231 FY 2012 FY 2013 FY 2013 FY 2014 Variance Actual Budget Projected Budget to Budget Personnel Water Distribution Superintendent 1.00 1.00 1.00 1.00 - Lead Water Utility Operator 3.00 3.00 3.00 3.00 - Water Utility Operator III - - - 2.00 2.00 Water Utility Operator II 4.00 4.00 4.00 2.00 (2.00) Total FTEs 8.00 8.00 8.00 8.00 - FY 2012 FY 2013 FY 2013 FY 2014 Variance Actual Budget Projected Budget to Budget Expenditures Personnel 485,096$ 549,498$ 539,570$ 570,969$ 3.9% Operations & Maintenance 123,728 253,090 258,250 242,040 -4.4% Capital - 28,000 28,000 26,500 -5.4% Total Expenditures 608,824$ 830,588$ 825,820$ 839,509$ 1.1% Water Utility Distribution programs within this division are responsible for the operation and maintenance of potable and reclaimed water distribution facilities including, but not limited to, water mains, fire hydrants, and valves. Distribution programs include: • Water Quality Sampling • Backflow Prevention • Preventative Maintenance Program Budgets Operations Division - Distribution Overview FY 2013/2014 Expenditure and Staffing Changes Personnel Personnel increased 3.9% due to reclasses and merits budgeted in FY 2014. Operations & Maintenance Operations & Maintenance decreased 4.4% due to reduced water quality testing costs. Capital Capital decreased 5.4% due to a vehicle replacement budgeted in FY 2013. 2013-2014 Annual Budget Program Budgets232 FY 2012 FY 2013 FY 2013 FY 2014 Variance Actual Budget Projected Budget to Budget Expenditures Operations & Maintenance 163,133$ 224,875$ 352,600$ 293,463$ 30.5% Capital 547,920 100,000 46,000 790,000 690.0% Debt Service 1,761,077 1,774,756 1,914,319 1,422,635 -19.8% Other Financing Uses 100,000 100,000 100,000 100,000 0.0% Total Expenditures 2,572,130$ 2,199,631$ 2,412,919$ 2,606,098$ 18.5% FY 2012 FY 2014 Variance Actual Budget Projected Budget to Budget Groundwater Preservation Fee 2,315,277$ 2,456,000$ 2,542,000$ 2,550,000$ 3.8% Impact Fees 759,958 219,200 904,760 1,678,322 665.7% Interest 1,229 800 900 1,000 25.0% Total Revenues 3,076,464$ 2,676,000$ 3,447,660$ 4,229,322$ 58.0% Revenue Sources FY 2013 The Alternative Water Resource Development Impact Fee Fund accounts for expenditures for alternative water resource capital costs and any related debt service. Revenues are received from groundwater preservation fees and impact fees. Specific activities include analysis, planning, design and construction of infrastructure required to deliver alternative water resources (Central Arizona Project (CAP) and reclaimed water) to the town. Water Utility Overview Alternative Water Resource Development FY 2013/2014 Expenditure Changes Operations & Maintenance Operations & Maintenance increased 30.5% for CAP water capital charges. Capital Capital increased 690% for transmission/distribution main projects. 2013-2014 Annual Budget Program Budgets233 FY 2012 FY 2013 FY 2013 FY 2014 Variance Actual Budget Projected Budget to Budget Expenditures Capital 505,946$ -$ -$ -$ 0.0% Debt Service 629,845 632,744 722,266 743,576 17.5% Total Expenditures 1,135,791$ 632,744$ 722,266$ 743,576$ 17.5% FY 2012 FY 2014 Variance Actual Budget Projected Budget to Budget Single Family Connections 237,455$ 89,845$ 462,060$ 462,060$ 414.3% Multi - Family Connections - - 2,567 340,710 0.0% Commercial Connections 156,200 10,280 20,550 43,160 319.8% Irrigation Connections 34,880 10,900 25,160 58,860 440.0% Fire Flow Connections 34,227 3,230 3,230 21,307 559.7% Interest 5,467 4,500 2,000 2,000 -55.6% Total Revenues 468,229$ 118,755$ 515,567$ 928,097$ 681.5% Revenue Sources FY 2013 The Potable Water Systems Development Impact Fee Fund accounts for expenditures for potable water capital improvements that are growth-related and debt service. Revenues are received from impact fees which are collected and used for repayment of bonds sold to finance the capital projects. Specific activities include design and construction of infrastructure required to deliver potable water to meet the needs of future customers. Water Utility Overview Potable Water Systems Development FY 2013/2014 Expenditure Changes Capital There are no capital expenditures planned in this fund for FY2014. Debt Service Debt service increased 17.5% due to an increase in principal and interest payments on outstanding debt. 2013-2014 Annual Budget Program Budgets234 FY 2012 FY 2013 FY 2013 FY 2014 Variance Actual Budget Projected Budget to Budget Expenditures Operations & Maintenance 4,729$ 10,000$ 10,000$ 10,000$ 0.0% Debt Service 619,518 644,080 693,861 826,642 28.3% Total Expenditures 624,247$ 654,080$ 703,861$ 836,642$ 27.9% FY 2012 FY 2014 Variance Actual Budget Projected Budget to Budget Other Financing Sources -$ 155,706$ 205,487$ 369,576$ 137.4% Federal Grants 84,527 83,784 83,784 70,677 -15.6% Miscellaneous 203,287 100,000 100,000 83,000 -17.0% Interest Income 82 - 20 - 0.0% Total Revenues 287,896$ 339,490$ 389,291$ 523,253$ 54.1% Revenue Sources FY 2013 The Municipal Debt Service Fund allocates money for principal and interest payments on the issuance of tax-exempt bonds. The Town has issued bonds for the acquisition of land and construction of buildings to support Town services. This fund also allocates money for principal and interest payments on the Town's Clean Renewable Energy Bonds (CREBS). Repayment of debt is pledged with excise sales tax, state shared revenue and other permit and fee revenues. Municipal Debt Service Fund Overview FY 2013/2014 Expenditure Changes Debt Service Debt service increased 28.3% due to increased principal and interest payments on the Town's outstanding debt. 2013-2014 Annual Budget Program Budgets235 FY 2012 FY 2013 FY 2013 FY 2014 Variance Actual Budget Projected Budget to Budget Expenditures Operations & Maintenance 2,720$ 2,720$ 2,720$ 2,720$ 0.0% Debt Service 364,703 367,578 367,578 365,868 -0.5% Total Expenditures 367,423$ 370,298$ 370,298$ 368,588$ -0.5% FY 2012 FY 2014 Variance Actual Budget Projected Budget to Budget Interest Repayments 128,661$ 117,578$ 117,578$ 105,868$ -10.0% Principal Repayments 235,768 250,000 250,000 260,000 4.0% Penalty 1,598 - - - 0.0% Other Financing Sources - - - 2,000 0.0% Total Revenues 366,027$ 367,578$ 367,578$ 367,868$ 0.1% Revenue Sources FY 2013 The Oracle Road Improvement District Debt Service Fund allocates money for principal and interest payments on the issuance of Improvement District Bonds. The Town issued bonds in 2005 to finance the widening of Oracle Road along the Rooney Ranch development. The bonds are repaid by the assessments levied on the property owners in the improvement district. Oracle Road Improvement District Overview 2013-2014 Annual Budget Program Budgets236 FY 2012 FY 2013 FY 2013 FY 2014 Variance Actual Budget Projected Budget to Budget Expenditures Capital -$ 25,000$ 123,243$ -$ -100.0% Total Expenditures -$ 25,000$ 123,243$ -$ -100.0% FY 2012 FY 2014 Variance Actual Budget Projected Budget to Budget Residential Impact Fees 11,395$ -$ (3,115)$ -$ 0.0% Commercial Impact Fees 7,980 - 5,315 - 0.0% Interest Income 105 - 1,050 - 0.0% Total Revenues 19,480$ -$ 3,250$ -$ 0.0% Revenue Sources FY 2013 This fund is used to manage the collection and expenditure of development impact fees dedicated to general government purposes. General government impact fees were previously assessed on both residential and commercial development within the Town. These fees are no longer collected. General Government Impact Fee Fund Overview FY 2013/2014 Expenditure Changes Capital Capital decreased 100%. Capital in FY 2013 was used towards a new vehicle and construction of the expanded aquatic facility. 2013-2014 Annual Budget Program Budgets237 FY 2012 FY 2013 FY 2013 FY 2014 Variance Actual Budget Projected Budget to Budget Expenditures Operations & Maintenance -$ 2,182,664$ 1,757,500$ 2,209,000$ 1.2% Total Expenditures -$ 2,182,664$ 1,757,500$ 2,209,000$ 1.2% FY 2012 FY 2014 Variance Actual Budget Projected Budget to Budget Self-Insurance Premiums -$ 2,182,664$ 2,082,500$ 2,188,000$ 0.2% Other Financing Sources - - 300,000 - 0.0% Miscellaneous - - - 21,000 0.0% Total Revenues -$ 2,182,664$ 2,382,500$ 2,209,000$ 1.2% Revenue Sources FY 2013 The Benefit Self Insurance Fund is a new Internal Service Fund in FY 2013. This fund is used to manage costs related to the Town's self funding of health insurance. Benefit Self Insurance Fund Overview 2013-2014 Annual Budget Program Budgets238 CA P I T A L I M P R O V E M E N T P R O G R A M Pr o g r a m O v e r v i e w Pr o j e c t s b y F u n d Ma p o f P r o j e c t s Pr o j e c t D e s c r i p t i o n s CAPITAL IMPROVEMENT PROGRAM 2013-2014 Annual Budget Capital Improvement Program Capital Improvement Program Overview Overview Providing infrastructure is a primary function of a local government. Maintaining public safety, town services, parks and recreation facilities, adequate transportation systems, and the community’s quality of life are all heavily dependent on how the Town handles infrastructure issues. The Capital Improvement Program (CIP) is a comprehensive, fifteen-year plan of capital projects that will support the continued growth and development of the Town. The CIP establishes the Capital Budget, which is submitted as the capital outlay portion of the annual Town budget. The CIP is used in implementing the General Plan and supporting the Town’s adopted Strategic Plan by developing a prioritized schedule of short-range and long-range community capital needs, evaluating projects, and analyzing the community’s ability and willingness to pay for them in the most cost-effective way. The Town uses the CIP as its method in determining future infrastructure requirements and planning the financing of facilities and equipment to maintain the service levels provided to Town citizens. The Town identifies capital projects as those which:  Cost $50,000 or more;  Have an expected useful life of five or more years; and  Becomes, or preserves, an asset of the Town The Town uses the Capital Improvement Program as an avenue of communication to the public. Through the CIP document, residents and businesses are provided with an accurate and concise view of the Town’s long term direction for capital investment and the Town’s need for stable revenue sources to fund large multi-year capital projects. CIP Process and Timeline The FY 13/14 CIP process began in January. Project requests were submitted, reviewed and analyzed by Finance staff and the Town Manager’s Office. An internal, cross-departmental review and ranking of all project requests was completed in order to prepare the proposed fifteen-year Capital Improvement Plan. Meetings convened in March for project presentation and evaluation. The fifteen-year recommendation was submitted to Council for approval and adoption with the Town’s final budget in May. A summary of the process and timeline is provided below: January: CIP request forms provided to department directors February: Department requests due Cost analysis performed, forms edited CIP packets and evaluation forms distributed March: Meetings scheduled to present project requests Project rankings due CIP recommendations finalized April: Budget study sessions to present Budget and CIP to Mayor and Council May: Adoption of Tentative Budget and CIP Adoption of Final Budget and CIP 239 2013-2014 Annual Budget Capital Improvement Program Capital Improvement Program Overview Project Evaluation Criteria Critical to the selection of the CIP projects are the criteria by which projects are assessed and evaluated. The evaluation criteria guide the review and ranking committee in their selection of the projects to be funded. The evaluation criteria areas are as follows:  Public Health, Safety and Welfare  Supports Stated Community Goals  Fiscal Impact  Service Level Impact  Legal Ramifications  Relationship to Other Projects Only projects funded by the General Fund are subject to the evaluation criteria. Projects funded from the remaining Town Funds (ex. Highway, Development Impact Fee and Water Utility) are deemed vital and necessary to the Town’s infrastructure. Furthermore, these funds are either self sustaining, receive funding from outside sources, such as the Pima Association of Governments (PAG) and other governmental agencies and jurisdictions, or have dedicated revenues that specify the use of the funds. 240 2013-2014 Annual Budget Capital Improvement Program Capital Improvement Program Overview Capital Improvement Program Summary The cumulative fifteen-year capital budget for the Town of Oro Valley totals $264,673,770 for fiscal years 2013-14 through 2027-28. The graph below shows the allocations by category for the given years: FY 2014 - 2028 Category Totals Water Infrastructure $153,801,000 Stormwater Infrastructure $10,250,000 Road Expansion $32,163,770 Equipment $5,017,000 Street Maintenance $17,600,000 Buildings & Improvements $45,842,000 The amount allocated for CIP projects in the FY 13/14 proposed budget is $9,055,000. The graph below shows the allocations by category for FY 13/14. The projects included in the FY 13/14 CIP reflect the needs of the Town based on goals established in both the General and Strategic Plans. The projects represent a significant investment in the infrastructure of the Town and attempt to meet the needs of the community. FY 2013 - 2014 Category Totals Buildings & Improvements $460,000 Street Maintenance $1,000,000 Equipment $540,000 Road Expansion $3,380,000 Stormwater Infrastructure $550,000 Water Infrastructure $3,125,000 241 2013-2014 Annual Budget Capital Improvement Program Capital Improvement Program Overview Financing the Capital Improvement Program Over the years, the Town of Oro Valley has financed a substantial portion of capital improvements through operating revenue and use of cash reserves. The “pay-as-you-go” financing method has been the preferred method for funding CIP projects in the past. The following options are considered when analyzing potential funding sources for CIP projects:  Pay-as-you-go financing  Bonds  Certificates of participation  Lease-purchase agreements  Improvement districts  Development impact fee ordinances  Federal and State grants  Donations and intergovernmental agreements  User fees Funding for the 2013 - 2014 CIP totals $9,055,000 and is derived from a variety of sources as depicted in the chart below: CIP Revenues FY 2013 - 2014 Water Utility Funds $3,265,000 Other $790,000 HURF Funds $1,085,000 General Funds $710,000 Regional Funds $3,205,000 Significant funding is generated through local taxes, development fees and intergovernmental grants. The Town has relied heavily on income related to development to fund the projects, and a continuing challenge for the Town is the development of funding sources to replace this income as construction activity declines. 242 2013-2014 Annual Budget Capital Improvement Program Capital Improvement Program Overview Impact on the Operating Budget The Town of Oro Valley’s operating budget is directly affected by the CIP. When certain types of capital projects are developed and completed, they also have ongoing financial impacts upon the Town’s operating budgets. For example, if the Town were to construct a new park or ball field, the operating budget for the Parks and Recreation Department would increase to include the routine field maintenance of the new park or field. Also, the Town would need to include capacity in the operating budget to account for any new staff and equipment that would be necessary to maintain and operate the new facility. In the FY 2014 – 2028 CIP, the individual projects include an estimated future operating budget impact, if it is possible to identify the cost at this time in the project’s lifecycle. These costs are estimates provided by the professionals in each department that are responsible for the completion of the project. The Town carefully considers these operating costs when deciding which projects move forward in the CIP as it is not sustainable for the Town to fund concurrently several large-scale projects that have significant operating budget impacts. Current economic conditions place an even greater emphasis on the desire for self-sustaining projects with neutral operating impacts. The table below summarizes the projected impact of the funded CIP on the Town’s operating budget for the next five years: Project Impact FY 13/14 FY 14/15 FY 15/16 FY 16/17 FY 17/18 TRAPEZE Software Mobile Data Computers Increased software license fees $2,000 $2,000 $2,000 $2,000 $2,000 Police Evidence Facility Increased utilities and maintenance costs $15,000 $15,000 $15,000 $15,000 $15,000 Replace Permitting/Land Management Software Increased software maintenance and support costs $30,000 $30,000 $30,000 $30,000 $30,000 Security Upgrades (Cameras) Increased maintenance and personnel costs $1,000 $1,000 $1,000 $1,000 $1,000 E. Lambert Lane Main Relocation Increased maintenance costs $1,000 $1,000 $1,000 $1,000 $1,000 Crack Seal Unit Replacement w/Auto Feed Increased material and personnel costs $16,800 $16,800 $16,800 $16,800 $16,800 Well Meter Replacement Increased maintenance costs $500 $500 $500 $500 $500 High Mesa Control Valve & Flow Meter Increased maintenance costs $500 $500 $500 $500 $500 Reclaimed Reservoir Retention Basin Liner Increased maintenance costs $500 $500 $500 $500 $500 Energy Efficiency Booster Upgrades Decreased utilities costs ($2,000) ($2,000) ($2,000) ($2,000) ($2,000) 12-Inch Main Extension to Serve Naranja Park Increased maintenance costs $100 $100 $100 $100 $100 Reclaimed Reservoir Booster Pump Addition Increased maintenance costs $250 $250 $250 $250 $250 Totals $65,650 $65,650 $65,650 $65,650 $65,650 Note: The list above represents the projects that were approved for funding in FY 13/14 that have an impact on the Town’s operating budget(s). For the complete list of funded projects, please see the Project Descriptions section of this document. 243 2013-2014 Annual Budget Capital Improvement Program Capital Improvement Program Overview Summary Projects included in the FY 2013 – 2014 CIP reflect the combined efforts of all Town Departments as well as the Town Council and Oro Valley residents. The plan recognizes the added benefits the projects will bring to the Town, while understanding the fiscal requirements and obligations each of these projects will entail. The CIP is updated annually, and new projects may be included should additional funding sources be identified. The 2013 – 2014 CIP attempts to meet the priority needs of the community, at the same time maintaining financial sustainability in future years. The plan as submitted is financially feasible and the projects included can be expected to be complete before the end of the fiscal year. As Town priorities and policies change, it is imperative that the CIP is continually reevaluated to assure the projects and funding sources are in accordance with the Town Council priorities and policies. The documents provided on the following pages offer an in-depth view into the CIP budget and provide detailed information on the projects and the impact they have on the operating budget. 244 2013-2014 Annual Budget Capital Improvement Program Capital Improvement Program Overview Table 1 below shows the Fifteen Year CIP Projects by Fund: Table 1 Fund 13/14 14/15 15/16 16/17 - 19/20 20/21 - 23/24 24/25 - 27/28 General 765,000$ 1,465,000$ 2,344,000$ 7,865,000$ 8,140,000$ 3,330,000$ Highway 1,085,000 1,185,000 1,425,000 5,075,000 5,435,000 5,200,000 Roadway Impact Fee 3,380,000 4,187,000 4,700,000 19,896,770 - - Stormwater Utility 560,000 250,000 1,700,000 2,910,000 1,625,000 4,200,000 Water Utility 2,475,000 2,505,000 3,200,000 8,265,000 7,650,000 6,300,000 Alt. Water Resource Dev Impact Fee 790,000 300,000 400,000 8,510,000 50,500,000 38,846,000 Potable Water System Dev Impact Fee - - - 200,000 9,350,000 14,650,000 Steam Pump Ranch - - 4,010,000 - - - Naranja Park - - - - - 20,000,000 Total All Funds 9,055,000$ 9,892,000$ 17,779,000$ 52,721,770$ 82,700,000$ 92,526,000$ Fiscal Year CAPITAL OUTLAY BY FUND FY 2013 - 2014 Stormwater Utility $560,000 Water Utility $2,475,000 Highway $1,085,000 Roadway Impact Fee $3,380,000 General $765,000 Alternative Water Resource Dev Impact Fee $790,000 245 2013-2014 Annual Budget Capital Improvement Program Projects by Fund Table 2 below identifies the General Fund Projects for Fiscal Years 2014 – 2028: Table 2 General Fund Project Name 13/14 14/15 15/16 16/17 - 19/20 20/21 - 23/24 24/25 - 27/28 TRAPEZE Software Mobile Data Computers 55,000$ -$ -$ -$ -$ -$ Municipal Operations Center (MOC) Renovations - 78,000 94,000 - - - Replacement Phone System: On Premise 50,000 150,000 - - - - Replace Permitting/Land Management Software 150,000 240,000 - - - - Exchange Server Replacement - 70,000 - - 80,000 80,000 Server Operating System Upgrade - 40,000 - - 80,000 80,000 Replace Phone System - - - - 300,000 - Replace Network Infrastructure Hardware - - - - 150,000 - Replace Network Infrastructure Cabling - - - - 100,000 - Virtual Server Host System Replacement - - - 60,000 60,000 - Undergrounding Tucson Electric Power Lines - - - 5,000,000 - - New Court/Prosecution Building - - - - 3,500,000 - Courtroom Remodel and Bench Redesign - - 50,000 50,000 - - Ramada at Steam Pump Ranch 70,000 - - - - - New Restroom at Naranja Park - - 200,000 - - - Parks & Recreation Mobile Stage - - - 120,000 - - Naranja Park Master Plan Update 40,000 40,000 - - - - Parks & Recreation Master Plan - 110,000 - - - - Resurface & Relandscape Parking Lot at Honeybee Park - - - - 50,000 - Renovate Racquetball Courts at James D. Kriegh (JDK) Park - - - - 250,000 - Upgrade Playground Equipment at Riverfront Park - - - - 200,000 - Upgrade Playground Equipment at JDK Park - - - 250,000 - - Town Hall Parking Lot Landscaping - - - 50,000 - - Trailhead, Parking Lot, and Restrooms at Tortolita Trail - - - 500,000 - - Honeybee Canyon Park Upgrades - - - 250,000 - - New Ramada at JDK Park - - - 250,000 - - JDK Park Upgrades - - 2,000,000 - - - New Small Dog Park at JDK Park - 50,000 - - - - New Dog Park at Cañada del Oro Riverfront Park - 150,000 - - - - Renovate Soccer fields at Riverfront Park - 100,000 - - - - Sun City Substation - 200,000 - - - - Police Evidence Facility 350,000 - - - - - Heating, Ventilation and Air Conditioning (HVAC) Replacement - 75,000 - - - - Police Substation and Training Facility - - - - - 3,170,000 Replace Police Command Post - - - 200,000 - - Expand Communications Infrastructure - - - - 200,000 - Police South Substation - - - 1,135,000 - - New Police Substation and Training Facility at MOC - - - - 3,170,000 - Electronic Document Management System (EDMS)- 112,000 - - - - Security Upgrades (Cameras)50,000 50,000 - - - - Totals 765,000$ 1,465,000$ 2,344,000$ 7,865,000$ 8,140,000$ 3,330,000$ Fiscal Year 246 2013-2014 Annual Budget Capital Improvement Program Projects by Fund Table 3 below identifies the Highway Fund Projects for Fiscal Years 2014 – 2028: Table 3 Highway Fund Project Name 13/14 14/15 15/16 16/17 - 19/20 20/21 - 23/24 24/25 - 27/28 Crack Seal Unit Replacement with Auto Feed 85,000$ -$ -$ -$ 90,000$ 100,000$ 4X4 Extended Backhoe - - 125,000 - - - Purchase New Skidsteer (Bobcat) with Attachments - - - 65,000 - - Purchase Truck Tractor & Low Boy Equipment Hauler - - - 175,000 - - Purchase a 4,000 Gallon Water Truck - - - 110,000 - - Purchase 10 Ton Smooth Drum Roller - - - - 80,000 - Purchase a New Rubber Tire Pneumatic Roller - - - - 80,000 - Purchase a Smaller Asphalt Laydown Machine - - - - 125,000 - Purchase a 10 Wheel End Dump Truck - - - 125,000 260,000 - Purchase a New Motor Grader - - - - - 300,000 Pavement Management 1,000,000 1,100,000 1,300,000 4,600,000 4,800,000 4,800,000 Upgrade CarteGraph to Enterprise License - 85,000 - - - - Totals 1,085,000$ 1,185,000$ 1,425,000$ 5,075,000$ 5,435,000$ 5,200,000$ Fiscal Year Table 4 below identifies the Stormwater Fund Projects for Fiscal Years 2014 – 2028: Table 4 Stormwater Fund Project Name 13/14 14/15 15/16 16/17 - 19/20 20/21 - 23/24 24/25 - 27/28 Northern Avenue Drainage Improvements 550,000$ -$ -$ -$ -$ -$ Replace Permitting/Land Management Software 10,000 - - - - - La Cholla Blvd - Lambert to Naranja Drainage Improvements - - - - - 1,500,000 La Cholla Blvd - Glover to Tangerine Drainage Improvements - - - - - 500,000 Shannon Road Drainage Improvements - - - - - 700,000 Drainage Improvement Project - - - - - 1,500,000 Naranja Drainage Improvement (East of Shannon Rd)- - 1,700,000 - - - Carmack Wash Drainage Improvements - - - 1,000,000 - - Purchase a New Side Cast Broom - - - - 100,000 - Purchase a New Street Sweeper - - - 250,000 275,000 - Moore Road Drainage Improvements - - - 800,000 - - Pistachio/Pomegrante Drainage Improvements - - - 150,000 - - Basin Management Study - - - - 250,000 - Peglar Wash Drainage Improvements - - - - 1,000,000 - Lambert Lane at Casas Entrance Drainage Improvements - - - 600,000 - - 4.5 Cubic Yard Wheel Loader - 250,000 - - - - Purchase a 10 Wheel End Dump Truck - - - 110,000 - - Totals 560,000$ 250,000$ 1,700,000$ 2,910,000$ 1,625,000$ 4,200,000$ Fiscal Year 247 2013-2014 Annual Budget Capital Improvement Program Projects by Fund Table 5 below identifies the Roadway Impact Fee Fund Projects for Fiscal Years 2014 – 2028: Table 5 Roadway Impact Fee Fund Project Name 13/14 14/15 15/16 16/17 - 19/20 20/21 - 23/24 24/25 - 27/28 Rancho Vistoso and Vistoso Highlands Traffic Signal 700,000$ -$ -$ -$ -$ -$ Sidewalk - Vistoso Highlands to W. Morning Vista Dr.150,000 - - - - - Lambert Lane - Pusch View Ln. to La Cañada Dr. - Rollover 1,200,000 - - - - - CDO Shared Use Path - 1st Ave. to Steam Pump Village 1,180,000 - - - - - Rancho Vistosto Blvd and Woodburne Ave. Safety Study 50,000 - - - - - Lambert Lane from La Cañada Dr. to Rancho Sonora - - 4,700,000 - - - Naranja Drive from La Cholla Blvd. to Shannon Rd.100,000 4,187,000 - - - - Tangerine Road from La Cañada Dr. to Shannon Rd.- - - 19,896,770 - - Totals 3,380,000$ 4,187,000$ 4,700,000$ 19,896,770$ -$ -$ Fiscal Year 248 2013-2014 Annual Budget Capital Improvement Program Projects by Fund Table 6 below identifies the Water Utility Fund Projects for Fiscal Years 2014 – 2028: Table 6 Water Utility Fund - Existing System Improvements Project Name 13/14 14/15 15/16 16/17 - 19/20 20/21 - 23/24 24/25 - 27/28 Reclaimed Reservoir Retention Basin Liner 75,000$ -$ -$ -$ -$ -$ Reclaimed Reservoir Vault Modification 85,000 - - - - - E. Lambert Lane 16" Main - Rollover 50,000 - - - - - AMI & Meter Replacement - Phases 2, 3, 4 & 5 1,300,000 900,000 800,000 1,500,000 - - Energy Efficiency Booster Upgrades 150,000 200,000 200,000 200,000 - - Replacement Phone System: On Premise 100,000 - - - - - Well Meter Replacement 60,000 - - - - - Pusch Ridge Interconnect 50,000 - - - - - Replace Security Wall at CS-2 Countryside 80,000 - - - - - Well E-8 Rehabilitation 100,000 - - - - - High Mesa Control Valve and Flow Meter - Rollover 10,000 - - - - - Naranja Shannon to La Cholla Main Relocation 75,000 - - - - - Tangerine Hills - New Hydrants & Valve Replace - Rollover 200,000 - - - - - Main Valve Replacements 50,000 50,000 50,000 50,000 - - Water Meters - for New Meter Installations 50,000 50,000 50,000 200,000 200,000 200,000 Replace Permitting/Land Management Software 40,000 - - - - - Steam Pump Well Drilling & Equipping - 650,000 1,000,000 - - - 6-Inch Pressure Reducing Valve Cliff Dweller - 60,000 - - - - Construction Equipment - Backhoe - 120,000 - - - - Scada Legacy Replacement - 50,000 - 100,000 100,000 - Security Wall at Well C-8 - 100,000 - - - - Naranja Shannon to La Cholla Main Relocation - 250,000 - - - - W. Lambert Lane Main Relocation (Dev & Infrastructure Svcs)- 75,000 350,000 - - - System Connection Upgrades - - 200,000 400,000 200,000 - Rancho Verde Hydrants - - 200,000 - - - Relocate 3 Pressure Reducing Valves in Oro Valley Area - - 100,000 - - - Tangerine Shannon La Canada Main Relocation - - 100,000 300,000 - - CS1 to CS2 12-Inch Main Replacement - - 150,000 500,000 - - Reclaimed Reservoir Booster Pump & Motor Replace - - - 200,000 - - Access Rd and Security Wall at Well D-6 - - - 100,000 - - Replace Well Pumps - - - 200,000 200,000 200,000 Deer Run Pressure Reducing Valve Booster Station - - - 40,000 - - Well E2 Upgrade - - - 100,000 - - El Con Storage Operational Improvements - - - 750,000 - - El Con Patio Homes Main Replacement - - - 1,400,000 - - El Con Booster Station Upgrades - - - 250,000 - - Scada Servers and Monitors - - - 50,000 50,000 - Security Walls - - - 75,000 100,000 100,000 Golf Course Metering Stations Modifications - - - 50,000 - - Replace Crimson Canyon Booster Station - - - 1,000,000 - - El Con Tennis La Canada Main Replacement - - - 600,000 - - High Mesa E and F Zone Booster Station - - - 200,000 1,000,000 - Replacement Wells - - - - 1,500,000 1,700,000 La Cholla - Lambert to Tangerine Main Relocation (RTA)- - - - 1,100,000 - Linda Vista Citrus Tracts - - - - 750,000 - Instrumentation Replacement - - - - 250,000 - Well Meter Replacement - All Well Sites - - - - 200,000 - Deer Run D and E Zone Booster Station - - - - 1,500,000 - Pusch Ridge Main Replacement - - - - 500,000 500,000 Monte Del Oro Main Replacement - - - - - 1,200,000 Rancho Verde Main Replacement - - - - - 1,600,000 Rancho Felix Main Replacement - - - - - 800,000 Totals 2,475,000$ 2,505,000$ 3,200,000$ 8,265,000$ 7,650,000$ 6,300,000$ Fiscal Year 249 2013-2014 Annual Budget Capital Improvement Program Projects by Fund Tables 7 and 8 below identify the Alternative Water Resources Development Impact Fee Fund Projects for Fiscal Years 2014 – 2028: Alternative Water Resources Development Impact Fee Fund Table 7 Expansion Related Improvements Project Name 13/14 14/15 15/16 16/17 - 19/20 20/21 - 23/24 24/25 - 27/28 Reclaimed Reservoir Booster Pump Addition 40,000$ -$ -$ -$ -$ -$ 12-Inch Main Extension to Serve Naranja Park 350,000 - - - - - 12-Inch Main Extension to Serve Riverfront Park - - - 1,100,000 - - 12-Inch Main Extension to Serve Hilton - - - - 3,200,000 - Reclaimed Water Metering Station to Serve Hilton - - - - 250,000 - 12-Inch Main Extension to Serve Pusch Ridge High School - - - - - 1,024,000 12-Inch Main Extension to Serve JDK Park - - - - - 522,000 Totals 390,000$ -$ -$ 1,100,000$ 3,450,000$ 1,546,000$ Table 8 Central Arizona Project (CAP) Water Improvements Project Name 13/14 14/15 15/16 16/17 - 19/20 20/21 - 23/24 24/25 - 27/28 Wheeling Tucson Water CAP Oracle Road 500 AFY 400,000$ -$ -$ -$ -$ -$ La Cholla D-E Blending Booster Station - 300,000 - - - - Wheeling Tucson Water 3000 AF/Year - - 400,000 400,000 - - Tucson Water Oasis Booster Station Upgrades - - - 130,000 - - Tucson Water 12-Inch Pipe - - - 880,000 - - Tucson Water 16-Inch Pipe Oasis Rd - - - 1,100,000 - - 24-Inch Pipe - Naranja La Cholla to Tangerine - - - 2,800,000 - - Wheeling Tucson Water 3500 AF/Year - - - 800,000 - - Tucson Water Naranja Booster Station Upgrades - - - 1,200,000 - - E to C PRV Naranja Reservoir - - - 100,000 - - 24-Inch Pipe - La Cholla/Tangerine to La Canada - - - - 2,500,000 - Big Wash D-E Booster Station - - - - 800,000 - Inlet Outlet Modifications at Allied Signal Reservoir - - - - 50,000 - Steam Pump C-D Booster Station - - - - 1,200,000 - 5000 AF/Year CAP - - - - 500,000 - Lower Santa Cruz Recovery Wells (1500 AFY)- - - - 900,000 - Water Treatment R&R Chlorination - - - - 2,400,000 - Delivery, Storage, A to C and C to E Booster Stations - - - - 26,000,000 10,000,000 16-Inch Main Tangerine/La Canada to 1st Ave - - - - 2,200,000 - PRV Feed to E Zone Tangerine/La Canada - - - - 50,000 - PRV Feed to E Zone Tangerine and 1st Ave - - - - 50,000 - 3 Recovery Wells and Delivery to Water Treatment Plant - - - - 9,000,000 - E-F Zone Booster Station La Canada Reservoir - - - - 1,400,000 - 7 Recovery Wells - - - - - 6,000,000 16-Inch Main Naranja/La Cholla to Reservoir - - - - - 2,300,000 Concentrate Management CAP Water - - - - - 13,000,000 Water Treatment and Reverse Osmosis - - - - - 6,000,000 Totals 400,000$ 300,000$ 400,000$ 7,410,000$ 47,050,000$ 37,300,000$ Fiscal Year Fiscal Year 250 2013-2014 Annual Budget Capital Improvement Program Projects by Fund Table 9 below identifies the Potable Water System Development Impact Fee Fund Projects for Fiscal Years 2014 – 2028: Table 9 Potable Water System Development Impact Fee Fund Expansion Related Improvements Project Name 13/14 14/15 15/16 16/17 - 19/20 20/21 - 23/24 24/25 - 27/28 Property Acquistion C or E Zone Reservoir -$ -$ -$ 200,000$ -$ -$ Booster Station C or E Zone - - - - 450,000 - 2.0 MG Reservoir C or E Zone - - - - 3,300,000 - New 16" Main C or E Zone Connection - - - - 1,650,000 - Property Acquistion F Zone Reservoir (Oracle Rd)- - - - 250,000 - New 16" Main N. Oracle Rd. F Zone Connection - - - - 3,300,000 - 1.0 MG F Zone Reservoir - N. Oracle Rd.- - - - 250,000 2,500,000 N. Oracle Rd. F Zone Booster - - - - 150,000 600,000 New 12" H Zone Main Sun City - - - - - 1,650,000 New 16" G Zone Main - - - - - 2,200,000 Property Acquistion Tortolita G Zone Reservoir - - - - - 250,000 Property Acquistion Chalk Creek H Zone Reservoir - - - - - 200,000 2.0 MG Reservoir Tortolita G Zone - - - - - 2,250,000 Booster Station G-H Zone Tortolita - - - - - 550,000 0.5 MG Reservoir H Zone Chalk Creek - - - - - 1,150,000 New 16" H Zone Main - - - - - 2,200,000 New 16" Chalk Creek H Zone Main - - - - - 1,100,000 Totals -$ -$ -$ 200,000$ 9,350,000$ 14,650,000$ Fiscal Year Table 10 below identifies the Steam Pump Ranch Fund Projects for Fiscal Years 2014 – 2028: Table 10 Steam Pump Ranch Fund Project Name 13/14 14/15 15/16 16/17 - 19/20 20/21 - 23/24 24/25 - 27/28 Continued Restoration, Preservation & Rehab of Steam Pump Ranch -$ -$ 4,010,000$ -$ -$ -$ Totals -$ -$ 4,010,000$ -$ -$ -$ Fiscal Year Table 11 below identifies the Naranja Park Fund Projects for Fiscal Years 2014 – 2028: Table 11 Naranja Park Fund Project Name 13/14 14/15 15/16 16/17 - 19/20 20/21 - 23/24 24/25 - 27/28 New Park at Naranja Park Site -$ -$ -$ -$ -$ 20,000,000$ Totals -$ -$ -$ -$ -$ 20,000,000$ Fiscal Year 251 2013-2014 Annual Budget Capital Improvement Program Project Map The Town of Oro Valley map below identifies the location of the major projects scheduled for FY 2014: 252 2013-2014 Annual Budget Capital Improvement Program Project Descriptions The following are detailed descriptions of all of the projects identified for Fiscal Year 2013-2014 above. They include the operating impact to the Town as well as indicating any additional funding the Town will receive to complete the project. PROJECT TITLE:TRAPEZE Software Drivers Mate - Mobile Data Computers DEPARTMENT:Development and Infrastructure Services, Transit Division FY 13-14 PROJECT COST: PRIMARY FUNDING: Regional Transportation Authority (RTA) Funds ADDITIONAL FUNDING: Possible grant funding PROJECT DESCRIPTION: Purchase of mobile data computers and software for Transit drivers PROJECT JUSTIFICATION: Improved productivity, cost controls and better service delivery ANNUAL OPERATING IMPACT: Operating Revenue -$ Operating Costs 2,000$ Operating Savings -$ PROJECT TITLE:Replacement Phone System - On Premise DEPARTMENT:Information Technology FY 13-14 PROJECT COST: PRIMARY FUNDING: General Fund ADDITIONAL FUNDING: Water Utility Fund PROJECT DESCRIPTION: Replace current Town-wide phone system with a new VOIP system PROJECT JUSTIFICATION: Supports Town General Plan and Strategic Plan objectives ANNUAL OPERATING IMPACT: Operating Revenue -$ Operating Costs -$ Operating Savings -$ PROJECT TITLE:Replace Permitting/Land Management Software DEPARTMENT:Information Technology FY 13-14 PROJECT COST: PRIMARY FUNDING: General Fund ADDITIONAL FUNDING: Water Utility Fund; Stormwater Utility Fund PROJECT DESCRIPTION: Upgrade and/or replace nearly 14 year-old existing permitting software PROJECT JUSTIFICATION: Supports Town Strategic Plan objectives ANNUAL OPERATING IMPACT: Operating Revenue -$ Operating Costs 30,000$ Operating Savings -$ $200,000 $55,000 $150,000 253 2013-2014 Annual Budget Capital Improvement Program Project Descriptions PROJECT TITLE:Ramada at Steam Pump Ranch DEPARTMENT:Parks, Recreation & Cultural Resources FY 13-14 PROJECT COST: PRIMARY FUNDING: General Fund ADDITIONAL FUNDING: None PROJECT DESCRIPTION: Install 200' x 40' open-air ramada for Steam Pump Ranch events PROJECT JUSTIFICATION: Supports Town Strategic Plan objectives ANNUAL OPERATING IMPACT: Operating Revenue Potential additional revenue from new events Operating Costs -$ Operating Savings -$ PROJECT TITLE:Naranja Park Master Plan Update DEPARTMENT:Parks, Recreation & Cultural Resources FY 13-14 PROJECT COST: PRIMARY FUNDING: General Fund ADDITIONAL FUNDING: None PROJECT DESCRIPTION: Update the Naranja Park Master Plan and Programming & Concept Design Report PROJECT JUSTIFICATION: Supports Town Strategic Plan objectives ANNUAL OPERATING IMPACT: Operating Revenue -$ Operating Costs -$ Operating Savings -$ PROJECT TITLE:Property and ID Building DEPARTMENT:Police FY 13-14 PROJECT COST: PRIMARY FUNDING: General Fund ADDITIONAL FUNDING: None PROJECT DESCRIPTION: Plan and construct property and ID building PROJECT JUSTIFICATION: Compliance with ADOSH and OSHA standards and mitigation of staff safety hazards ANNUAL OPERATING IMPACT: Operating Revenue -$ Operating Costs 15,000$ Operating Savings -$ $40,000 $350,000 $70,000 254 2013-2014 Annual Budget Capital Improvement Program Project Descriptions PROJECT TITLE:Security Upgrades (Cameras) DEPARTMENT:Town-wide FY 13-14 PROJECT COST: PRIMARY FUNDING: General Fund ADDITIONAL FUNDING: None PROJECT DESCRIPTION: Installation of cameras and equipment to monitor Town buildings and parking lots PROJECT JUSTIFICATION: Supports Town Strategic Plan objectives ANNUAL OPERATING IMPACT: Operating Revenue -$ Operating Costs 1,000$ Operating Savings -$ PROJECT TITLE:Oro Valley Surface Treatments DEPARTMENT:Development and Infrastructure Services, Street Division FY 13-14 PROJECT COST: PRIMARY FUNDING: Highway Fund ADDITIONAL FUNDING: None PROJECT DESCRIPTION: Pavement preservation and surface treatments of Oro Valley streets and roads PROJECT JUSTIFICATION: Preserves the existing Town infrastructure and extends street/road lifespan ANNUAL OPERATING IMPACT: Operating Revenue -$ Operating Costs -$ Operating Savings PROJECT TITLE:Crack Seal Unit Replacement with Auto Feed DEPARTMENT:Development and Infrastructure Services, Street Division FY 13-14 PROJECT COST: PRIMARY FUNDING: Highway Fund ADDITIONAL FUNDING: None PROJECT DESCRIPTION: Replace 25 year-old crack seal unit with new crack seal unit with auto feed PROJECT JUSTIFICATION: Increase efficiency and effectiveness in crack sealing of town roadways ANNUAL OPERATING IMPACT: Operating Revenue -$ Operating Costs 16,800$ Operating Savings -$ $50,000 $85,000 $1,000,000 Varies depending on pavement preservation application type 255 2013-2014 Annual Budget Capital Improvement Program Project Descriptions PROJECT TITLE:Lambert Lane Widening (La Canada to Pusch View Lane) - Rollover Project DEPARTMENT:Development and Infrastructure Services FY 13-14 PROJECT COST: PRIMARY FUNDING: Pima Association of Governments Regional Funds ADDITIONAL FUNDING: Impact Fees PROJECT DESCRIPTION: Widen Lambert Lane between La Canada and Pusch View Lane to 4 lanes PROJECT JUSTIFICATION: Per Transportation Improvement Program as set by PAG ANNUAL OPERATING IMPACT: Operating Revenue -$ Operating Costs -$ Operating Savings -$ PROJECT TITLE:CDO Shared Use Path - Final Phase DEPARTMENT:Development and Infrastructure Services FY 13-14 PROJECT COST: PRIMARY FUNDING: Regional Transportation Authority (RTA) Funds ADDITIONAL FUNDING: Federal Transportation Enhancement Grant PROJECT DESCRIPTION: Construct new 12' linear trail along CDO multi-use path PROJECT JUSTIFICATION: Per Transportation Improvement Program as set by PAG ANNUAL OPERATING IMPACT: Operating Revenue -$ Operating Costs -$ Operating Savings -$ PROJECT TITLE:Rancho Vistoso Blvd and Woodburne Ave Safety Study DEPARTMENT:Development and Infrastructure Services FY 13-14 PROJECT COST: PRIMARY FUNDING: Pima Association of Governments Regional Funds ADDITIONAL FUNDING: None PROJECT DESCRIPTION: Safety study of the Rancho Vistoso and Woodburne Ave intersection PROJECT JUSTIFICATION: Per Transportation Improvement Program as set by PAG ANNUAL OPERATING IMPACT: Operating Revenue -$ Operating Costs -$ Operating Savings -$ $1,200,000 $1,180,000 $50,000 256 2013-2014 Annual Budget Capital Improvement Program Project Descriptions PROJECT TITLE:Rancho Vistoso and Vistoso Highlands Traffic Signal DEPARTMENT:Development and Infrastructure Services FY 13-14 PROJECT COST: PRIMARY FUNDING: Regional Transportation Authority (RTA) Funds ADDITIONAL FUNDING: None PROJECT DESCRIPTION: Construct a traffic signal at Rancho Vistoso and Vistoso Highlands Drive PROJECT JUSTIFICATION: Per Transportation Improvement Program as set by PAG ANNUAL OPERATING IMPACT: Operating Revenue -$ Operating Costs -$ Operating Savings -$ PROJECT TITLE:Sidewalk - Vistoso Highlands to West Morning Vista Drive DEPARTMENT:Development and Infrastructure Services FY 13-14 PROJECT COST: PRIMARY FUNDING: Regional Transportation Authority (RTA) Funds ADDITIONAL FUNDING: None PROJECT DESCRIPTION: Construct a six-foot sidewalk from Vistoso Highlands to West Morning Vista Drive PROJECT JUSTIFICATION: Per Transportation Improvement Program as set by PAG ANNUAL OPERATING IMPACT: Operating Revenue -$ Operating Costs -$ Operating Savings -$ PROJECT TITLE:Naranja Drive from La Cholla to Shannon DEPARTMENT:Development and Infrastructure Services FY 13-14 PROJECT COST: PRIMARY FUNDING: Pima Association of Governments Regional Funds (Construction) ADDITIONAL FUNDING: Roadway Impact Fees PROJECT DESCRIPTION: Design the widening of Naranja Drive including drainage facilities, sidewalk, and multi-use path from La Cholla Blvd to Shannon Rd PROJECT JUSTIFICATION: Per Transportation Improvement Program as set by PAG ANNUAL OPERATING IMPACT: Operating Revenue -$ Operating Costs -$ Operating Savings -$ $100,000 (Design) $150,000 $700,000 257 2013-2014 Annual Budget Capital Improvement Program Project Descriptions PROJECT TITLE:AMI Meter Replacement DEPARTMENT:Water FY 13-14 PROJECT COST: PRIMARY FUNDING: Water Infrastructure Finance Authority (WIFA) Loan ADDITIONAL FUNDING: Water Utility Fund PROJECT DESCRIPTION: Townwide replacement of aging meters to Automated Meter Infrastructure technology PROJECT JUSTIFICATION: Current meters inefficient and under registering ANNUAL OPERATING IMPACT: Operating Revenue Additional revenue anticipated due to increased accuracy in meter reading Operating Costs -$ Operating Savings Potential savings in vehicle fuel and repair costs PROJECT TITLE:Tangerine Hills - New Hydrant and Valve Replacement - Rollover Project DEPARTMENT:Water FY 13-14 PROJECT COST: PRIMARY FUNDING: Water Utility Fund ADDITIONAL FUNDING: None PROJECT DESCRIPTION: Install new fire hydrants and replace valves PROJECT JUSTIFICATION: Provide fire protection and replace non operating valves ANNUAL OPERATING IMPACT: Operating Revenue -$ Operating Costs -$ Operating Savings -$ PROJECT TITLE:East Lambert Lane 16 inch Main Relocation - Rollover Project DEPARTMENT:Water FY 13-14 PROJECT COST: PRIMARY FUNDING: Water Utility Fund ADDITIONAL FUNDING: None PROJECT DESCRIPTION: Relocate existing water main - Autumn Hills to First Avenue PROJECT JUSTIFICATION: To accommodate Public Works Road Improvement Project ANNUAL OPERATING IMPACT: Operating Revenue -$ Operating Costs 1,000$ Operating Savings -$ $1,300,000 $50,000 $200,000 258 2013-2014 Annual Budget Capital Improvement Program Project Descriptions PROJECT TITLE:Well Meter Replacement DEPARTMENT:Water FY 13-14 PROJECT COST: PRIMARY FUNDING: Water Utility Fund ADDITIONAL FUNDING: None PROJECT DESCRIPTION: Install electronic strap on flow meters at 10 wells PROJECT JUSTIFICATION: Reduce maintenance cost and increase meter accuracy ANNUAL OPERATING IMPACT: Operating Revenue -$ Operating Costs 500$ Operating Savings -$ PROJECT TITLE:High Mesa Control Valve and Flow Meter - Rollover Project DEPARTMENT:Water FY 13-14 PROJECT COST: PRIMARY FUNDING: Water Utility Fund ADDITIONAL FUNDING: None PROJECT DESCRIPTION: Install control valve actuator and new flow meter PROJECT JUSTIFICATION: To balance water system E-Zone loading ANNUAL OPERATING IMPACT: Operating Revenue -$ Operating Costs 500$ Operating Savings -$ PROJECT TITLE:Reclaimed Reservoir Retention Basin Liner DEPARTMENT:Water FY 13-14 PROJECT COST: PRIMARY FUNDING: Water Utility Fund ADDITIONAL FUNDING: None PROJECT DESCRIPTION: Line retention basin liner with geo-membrane PROJECT JUSTIFICATION: Allows operational continuation of reservoir facility without interruption ANNUAL OPERATING IMPACT: Operating Revenue -$ Operating Costs 500$ Operating Savings -$ $75,000 $60,000 $10,000 259 2013-2014 Annual Budget Capital Improvement Program Project Descriptions PROJECT TITLE:Reclaimed Reservoir Vault Modification DEPARTMENT:Water FY 13-14 PROJECT COST: PRIMARY FUNDING: Water Utility Fund ADDITIONAL FUNDING: None PROJECT DESCRIPTION: Construct partial concrete vault lid to accommodate turning radius for chlorine supply truck PROJECT JUSTIFICATION: Reduces risk of accidents from large trucks entering and exiting reservoir site ANNUAL OPERATING IMPACT: Operating Revenue -$ Operating Costs -$ Operating Savings -$ PROJECT TITLE:Energy Efficiency Booster Upgrades DEPARTMENT:Water FY 13-14 PROJECT COST: PRIMARY FUNDING: Water Utility Fund ADDITIONAL FUNDING: None PROJECT DESCRIPTION: Install high efficient electric motors, controls and instruments at various booster pump locations PROJECT JUSTIFICATION: Improve energy efficiency and system reliability ANNUAL OPERATING IMPACT: Operating Revenue -$ Operating Costs -$ Operating Savings 2,000$ PROJECT TITLE:Pusch Ridge Interconnect DEPARTMENT:Water FY 13-14 PROJECT COST: PRIMARY FUNDING: Water Utility Fund ADDITIONAL FUNDING: None PROJECT DESCRIPTION: Interconnect Pressure Zone "E" and "D" PROJECT JUSTIFICATION: Improve system reliability ANNUAL OPERATING IMPACT: Operating Revenue -$ Operating Costs -$ Operating Savings -$ $150,000 $50,000 $85,000 260 2013-2014 Annual Budget Capital Improvement Program Project Descriptions PROJECT TITLE:Replace Security Wall at CS-2 Countryside DEPARTMENT:Water FY 13-14 PROJECT COST: PRIMARY FUNDING: Water Utility Fund ADDITIONAL FUNDING: None PROJECT DESCRIPTION: Remove existing chain link and construct new masonry stucco wall with security pickets PROJECT JUSTIFICATION: Improve security and safety at well site ANNUAL OPERATING IMPACT: Operating Revenue -$ Operating Costs -$ Operating Savings -$ PROJECT TITLE:Well E-8 Rehabilitation DEPARTMENT:Water FY 13-14 PROJECT COST: PRIMARY FUNDING: Water Utility Fund ADDITIONAL FUNDING: None PROJECT DESCRIPTION: Rehabilitate well - open well screening to increase production PROJECT JUSTIFICATION: Increase and improve water supply ANNUAL OPERATING IMPACT: Operating Revenue -$ Operating Costs -$ Operating Savings -$ PROJECT TITLE:Naranja Shannon to La Cholla Main Relocation DEPARTMENT:Water FY 13-14 PROJECT COST: PRIMARY FUNDING: Water Utility Fund ADDITIONAL FUNDING: None PROJECT DESCRIPTION: Relocation of existing water main in coordination with roadway improvements PROJECT JUSTIFICATION: Delivery of safe and reliable water supply to all water utility customers ANNUAL OPERATING IMPACT: Operating Revenue -$ Operating Costs -$ Operating Savings -$ $80,000 $100,000 $75,000 261 2013-2014 Annual Budget Capital Improvement Program Project Descriptions PROJECT TITLE:Main Valve Replacements DEPARTMENT:Water FY 13-14 PROJECT COST: PRIMARY FUNDING: Water Utility Fund ADDITIONAL FUNDING: None PROJECT DESCRIPTION: Replace existing valves at various locations throughout the water delivery system PROJECT JUSTIFICATION: Improve system reliability ANNUAL OPERATING IMPACT: Operating Revenue -$ Operating Costs -$ Operating Savings -$ PROJECT TITLE:Water Meters - for New Meter Installations DEPARTMENT:Water FY 13-14 PROJECT COST: PRIMARY FUNDING: Water Utility Fund ADDITIONAL FUNDING: None PROJECT DESCRIPTION: Provide new water meters for residential and commercial growth PROJECT JUSTIFICATION: Provide metered water service, deliver safe and reliable water supply ANNUAL OPERATING IMPACT: Operating Revenue -$ Operating Costs -$ Operating Savings -$ PROJECT TITLE:12-Inch Main Extension to serve Naranja Park DEPARTMENT:Water FY 13-14 PROJECT COST: PRIMARY FUNDING: Alternative Water Resources Development Impact Fee Fund ADDITIONAL FUNDING: None PROJECT DESCRIPTION: Extend reclaimed water system to serve Naranja Park PROJECT JUSTIFICATION: Reduce reliance on groundwater ANNUAL OPERATING IMPACT: Operating Revenue -$ Operating Costs 100$ Operating Savings -$ $50,000 $50,000 $350,000 262 2013-2014 Annual Budget Capital Improvement Program Project Descriptions PROJECT TITLE:Reclaimed Reservoir Booster Pump Addition DEPARTMENT:Water FY 13-14 PROJECT COST: PRIMARY FUNDING: Alternative Water Resources Development Impact Fee Fund ADDITIONAL FUNDING: None PROJECT DESCRIPTION: Install new pumping unit PROJECT JUSTIFICATION: Reduce reliance on groundwater ANNUAL OPERATING IMPACT: Operating Revenue -$ Operating Costs 250$ Operating Savings -$ PROJECT TITLE:Wheeling Tucson Water CAP Oracle Road 500 AFY DEPARTMENT:Water FY 13-14 PROJECT COST: PRIMARY FUNDING: Alternative Water Resources Development Impact Fee Fund ADDITIONAL FUNDING: None PROJECT DESCRIPTION: Wheel Central Arizona Project water through the Tucson Water System PROJECT JUSTIFICATION: Improve water source reliability and redundancy, fire flow ANNUAL OPERATING IMPACT: Operating Revenue -$ Operating Costs -$ Operating Savings -$ PROJECT TITLE:Northern Avenue Drainage Improvements DEPARTMENT:Development and Infrastructure Services, Operations Division FY 13-14 PROJECT COST: PRIMARY FUNDING: Stormwater Utility Fund ADDITIONAL FUNDING: None PROJECT DESCRIPTION: Drainage improvements at Northern Avenue PROJECT JUSTIFICATION: Improvements will provide increased channel capacity ANNUAL OPERATING IMPACT: Operating Revenue -$ Operating Costs -$ Operating Savings -$ $400,000 $40,000 $550,000 263 2013 – 2014 Annual Budget This Page Intentionally Left Blank 264 AP P E N D I X Re s o l u t i o n A d o p t i o n Au d i t o r G e n e r a l S t a t e m e n t s Gl o s s a r y APPENDIX 265 266 2013 – 2014 Annual Budget Town of Oro Valley 267 2013 – 2014 Annual Budget This Page Intentionally Left Blank 268 Summary Schedule of Estimated Revenues and Expenditures/Expenses 2013 2013 July 1, 2013** 2014 2014 SOURCES <USES> IN <OUT> 2014 2014 Primary:$ Secondary: 3. Debt Service Funds Available 1,941,841 1,074,159 851,035 519,545 371,576 1,742,156 1,742,156 4. Less: Amounts for Future Debt Retirement 5. Total Debt Service Funds 1,941,841 1,074,159 851,035 519,545 371,576 1,742,156 1,742,156 6. Capital Projects Funds 21,067,608 12,830,869 7,538,022 9,956,983 100,000 17,395,005 17,395,005 7. Permanent Funds 8. Enterprise Funds Available 24,569,567 15,105,090 9,007,773 13,633,350 1,300,000 100,000 3,178 24,037,945 24,037,945 9. Less: Amounts for Future Debt Retirement 10. Total Enterprise Funds 24,569,567 15,105,090 9,007,773 13,633,350 1,300,000 100,000 3,178 24,037,945 24,037,945 11. Internal Service Funds 3,121,451 2,396,287 625,000 3,511,793 4,136,793 4,136,793 12. TOTAL ALL FUNDS 95,422,156$ 63,356,966$ 31,717,687$ $ 60,895,742$ 1,300,000$ $ 656,576$ 656,576$ 93,913,429$ 93,913,429$ EXPENDITURE LIMITATION COMPARISON 2013 2014 1. Budgeted expenditures/expenses 95,422,156$ 93,913,429$ 2. Add/subtract: estimated net reconciling items 3. Budgeted expenditures/expenses adjusted for reconciling items 95,422,156 93,913,429 4. Less: estimated exclusions 5. Amount subject to the expenditure limitation 95,422,156$ 93,913,429$ 6. EEC or voter-approved alternative expenditure limitation 95,422,156$ 93,913,429$ x * ** *** TOTAL FINANCIAL RESOURCES AVAILABLE BUDGETED EXPENDITURES/ EXPENSES INTERFUND TRANSFERSOTHER FINANCING FUND General Fund 36,775,636$ 27,351,566$ ACTUAL EXPENDITURES/ EXPENSES** ADOPTED BUDGETED EXPENDITURES/ EXPENSES* 1.9,724,507$ 28,201,906$ 162,729$ FUND BALANCE/ NET POSITION*** PROPERTY TAX REVENUES ESTIMATED REVENUES OTHER THAN PROPERTY TAXES 2014 2014 185,000$ $ 2.7,946,053 Amounts in this column represent Fund Balance/Net Position amounts except for amounts not in spendable form (e.g., prepaids and inventories) or legally or contractually required to be maintained intact (e.g., principal of a permanent fund). The city/town does not levy property taxes and does not have special assessment districts for which property taxes are levied. Therefore, Schedule B has been omitted Includes Expenditure/Expense Adjustments Approved in current year from Schedule E. Includes actual amounts as of the date the proposed budget was prepared, adjusted for estimated activity for the remainder of the fiscal year. Special Revenue Funds $ Fiscal Year 2014 CITY/TOWN OF ____Oro Valley______ 8,652,846 37,948,684$ 37,948,684$ 390,669 8,652,846 4,598,995 3,971,350 5,072,165 4/13 SCHEDULE A 269 ESTIMATED REVENUES ACTUAL REVENUES* ESTIMATED REVENUES 2013 2013 2014 GENERAL FUND Local taxes Local Sales Tax $ 11,827,995 $ 12,023,845 $ 12,623,382 Cable Franchise Tax 500,000 500,000 500,000 Licenses and permits Licenses 171,140 174,900 176,700 Permits 753,829 1,147,296 1,307,255 Fees 11,500 8,400 9,500 Intergovernmental State/County Shared 9,175,117 9,175,117 9,659,167 State Grants 1,014,042 1,032,200 1,509,700 Federal Grants 983,000 704,232 576,490 Other 613,413 442,339 30,000 Charges for services Reimbursements 204,000 184,000 204,000 Fees 408,600 502,363 644,200 Other 604,956 598,191 595,237 Fines and forfeits Fines 190,000 180,000 190,000 Interest on investments Interest Income 89,000 62,275 62,275 Miscellaneous Miscellaneous 134,000 157,623 114,000 Total General Fund $ 26,680,592 $ 26,892,781 $ 28,201,906 * CITY/TOWN OF ____Oro Valley______ Revenues Other Than Property Taxes Fiscal Year 2014 Includes actual revenues recognized on the modified accrual or accrual basis as of the date the proposed budget was prepared, plus estimated revenues for the remainder of the fiscal year. SOURCE OF REVENUES 4/13 SCHEDULE C Page 1 of 4270 ESTIMATED REVENUES ACTUAL REVENUES* ESTIMATED REVENUES 2013 2013 2014 CITY/TOWN OF ____Oro Valley______ Revenues Other Than Property Taxes Fiscal Year 2014 SOURCE OF REVENUES SPECIAL REVENUE FUNDS Highway User Revenue Fund Local Sales Tax $316,890 $469,344 $ 1,077,197 Highway User Fuel Tax 2,480,005 2,480,005 2,500,000 Permits 43,000 51,110 48,000 Grants 260,000 125,000 35,000 Interest Income 7,000 7,000 7,000 Charges for Services 229,493 229,493 129,493 Other 10,000 17,683 10,000 $ 3,346,388 $ 3,379,635 $ 3,806,690 Bed Tax Fund Local Sales Tax $782,283 $782,283 $789,000 Interest Income 5,700 3,975 3,975 $787,983 $786,258 $792,975 Seizures & Forfeitures - State Fund $175,000 $61,605 $175,000 $175,000 $61,605 $175,000 Seizures & Forfeitures - Federal Fund $250,000 $27,125 $250,000 $250,000 $27,125 $250,000 Impound Fee Fund Fees $47,503 $47,503 $47,500 $47,503 $47,503 $47,500 Total Special Revenue Funds $ 4,606,874 $ 4,302,126 $ 5,072,165 * Includes actual revenues recognized on the modified accrual or accrual basis as of the date the proposed budget was prepared, plus estimated revenues for the remainder of the fiscal year. 4/13 SCHEDULE C Page 2 of 4271 ESTIMATED REVENUES ACTUAL REVENUES* ESTIMATED REVENUES 2013 2013 2014 CITY/TOWN OF ____Oro Valley______ Revenues Other Than Property Taxes Fiscal Year 2014 SOURCE OF REVENUES DEBT SERVICE FUNDS Municipal Debt Service Fund Federal Grants $83,784 $83,784 $70,677 Interest Income 20 Miscellaneous 100,000 100,000 83,000 $183,784 $183,804 $153,677 Oracle Road Improvement District Fund Special Assessments $367,578 $367,578 $365,868 $367,578 $367,578 $365,868 Total Debt Service Funds $551,362 $551,382 $519,545 CAPITAL PROJECTS FUNDS Alternative Water Resources Development Impact Fee Fund Development Impact Fees $219,200 $904,760 $ 1,678,322 Charges for Services 2,456,000 2,542,000 2,550,000 Interest Income 800 900 1,000 $ 2,676,000 $ 3,447,660 $ 4,229,322 Potable Water System Development Impact Fee Fund Development Impact Fees $114,255 $513,567 $926,097 Interest Income 4,500 2,000 2,000 $118,755 $515,567 $928,097 Townwide Roadway Development Impact Fee Fund State Grants $ 5,280,000 $ 4,722,000 $ 3,150,000 Federal Grants 699,000 500,000 Development Impact Fees 414,118 672,940 791,375 Interest Income 1,600 19,500 1,500 Other 18,000 18,000 18,000 $ 6,412,718 $ 5,432,440 $ 4,460,875 Parks & Recreation Impact Fee Fund Development Impact Fees $92,001 $111,150 $201,297 $92,001 $111,150 $201,297 Library Impact Fee Fund Development Impact Fees $37,461 $4,606 $ $37,461 $4,606 $ Police Impact Fee Fund Development Impact Fees $49,840 $62,076 $107,392 $49,840 $62,076 $107,392 General Government Impact Fee Fund Development Impact Fees $$3,250 $ $$3,250 $ Aquatic Center Project Fund Donations $300,000 $30,000 $30,000 $300,000 $30,000 $30,000 Total Capital Projects Funds $ 9,686,775 $ 9,606,749 $ 9,956,983 * Includes actual revenues recognized on the modified accrual or accrual basis as of the date the proposed budget was prepared, plus estimated revenues for the remainder of the fiscal year. 4/13 SCHEDULE C Page 3 of 4272 ESTIMATED REVENUES ACTUAL REVENUES* ESTIMATED REVENUES 2013 2013 2014 CITY/TOWN OF ____Oro Valley______ Revenues Other Than Property Taxes Fiscal Year 2014 SOURCE OF REVENUES ENTERPRISE FUNDS Oro Valley Water Utility Fund Water Sales $ 11,707,800 $ 11,693,000 $ 11,748,000 Charges for Services 475,200 572,400 597,100 Interest Income 75,000 66,250 66,250 Miscellaneous 20,000 $ 12,258,000 $ 12,351,650 $ 12,411,350 Stormwater Utility Fund Federal Grants $67,800 $7,867 $ State Grants 450,000 450,000 Charges for Services 761,500 762,600 771,500 Interest Income 500 4,800 500 Miscellaneous 20,000 20,140 $ 1,299,800 $795,407 $ 1,222,000 Total Enterprise Funds $ 13,557,800 $ 13,147,057 $ 13,633,350 INTERNAL SERVICE FUNDS Fleet Fund Fleet Services $638,787 $638,787 $ 1,282,793 Miscellaneous 20,000 $638,787 $638,787 $ 1,302,793 Benefit Self Insurance Fund Miscellaneous $ 2,182,664 $ 2,082,500 $ 2,209,000 $ 2,182,664 $ 2,082,500 $ 2,209,000 Total Internal Service Funds $ 2,821,451 $ 2,721,287 $ 3,511,793 TOTAL ALL FUNDS $ 57,904,854 $ 57,221,382 $ 60,895,742 * Includes actual revenues recognized on the modified accrual or accrual basis as of the date the proposed budget was prepared, plus estimated revenues for the remainder of the fiscal year. 4/13 SCHEDULE C Page 4 of 4273 FUND SOURCES <USES>IN <OUT> GENERAL FUND Tfr to Municipal Debt Service Fund $$$$160,729 Tfr to Oracle Road Improvement District Fund 2,000 Tfr from Bed Tax Fund 185,000 Total General Fund $$$ 185,000 $ 162,729 SPECIAL REVENUE FUNDS Bed Tax Fund $$$$390,669 Total Special Revenue Funds $$$$390,669 DEBT SERVICE FUNDS Municipal Debt Service Fund $$$ 369,576 $ Oracle Road Improvement District Fund 2,000 Total Debt Service Funds $$$ 371,576 $ CAPITAL PROJECTS FUNDS Alternative Water Rscs Dev Impact Fee Fund $$$$100,000 Total Capital Projects Funds $$$$100,000 ENTERPRISE FUNDS Oro Valley Water Utility Fund $ 1,300,000 $$ 100,000 $ 3,178 Total Enterprise Funds $ 1,300,000 $$ 100,000 $ 3,178 TOTAL ALL FUNDS $ 1,300,000 $$ 656,576 $ 656,576 2014 2014 CITY/TOWN OF ____Oro Valley______ Other Financing Sources/<Uses> and Interfund Transfers Fiscal Year 2014 OTHER FINANCING INTERFUND TRANSFERS 4/13 SCHEDULE D274 ADOPTED BUDGETED EXPENDITURES/ EXPENSES EXPENDITURE/ EXPENSE ADJUSTMENTS APPROVED ACTUAL EXPENDITURES/ EXPENSES* BUDGETED EXPENDITURES/ EXPENSES 2013 2013 2013 2014 GENERAL FUND Council $224,618 $$224,618 $225,853 Clerk 322,779 321,989 345,118 Development & Infrastructure Svcs 3,803,751 3,349,021 4,031,561 Finance 744,111 726,233 709,242 General Administration 2,245,094 (386,000)1,831,394 2,037,730 Human Resources 496,156 464,107 523,821 Information Technology 1,213,633 1,213,633 1,482,173 Legal 816,559 768,813 804,344 Magistrate Court 757,629 726,527 761,430 Town Manager's Office 728,648 638,569 700,989 Parks, Recreation, & Cultural Resources 2,630,112 2,387,353 2,536,955 Police 12,667,903 12,599,309 14,223,297 Contingency Reserve 11,034,643 (524,000)2,100,000 9,566,171 Total General Fund $ 37,685,636 $(910,000)$ 27,351,566 $ 37,948,684 SPECIAL REVENUE FUNDS Highway User Revenue Fund $ 6,108,346 $$ 3,630,438 $ 6,573,318 Seizures & Forfeitures - State Fund 467,924 175,434 525,354 Seizures & Forfeitures - Federal Fund 832,189 358,910 508,867 Bed Tax Fund 790,091 (300,000)386,710 997,807 Impound Fee Fund 47,503 47,503 47,500 Total Special Revenue Funds $ 8,246,053 $(300,000)$ 4,598,995 $ 8,652,846 DEBT SERVICE FUNDS Municipal Debt Service Fund $ 1,570,148 $$703,861 $ 1,373,416 Oracle Road Improvement District Fund 371,693 370,298 368,740 Total Debt Service Funds $ 1,941,841 $$ 1,074,159 $ 1,742,156 CAPITAL PROJECTS FUNDS Aquatic Center Project Fund $ 3,350,000 $ 1,460,000 $ 4,600,218 $42,114 Townwide Roadway Dev Impact Fee Fund 7,128,581 4,760,000 5,689,538 Naranja Park Fund 258,821 (250,000)8,821 Alternative Water Rscs Dev Impact Fee Fund 4,334,770 2,312,919 6,899,226 Potable Water System Dev Impact Fee Fund 3,614,431 722,266 4,100,604 Parks & Recreation Impact Fee Fund 543,500 90,100 334,400 Library Impact Fee Fund 153,507 114,798 Police Impact Fee Fund 153,328 82,646 189,151 General Government Impact Fee Fund 135,430 123,243 Recreation In Lieu Fee Fund 185,240 139,477 16,353 Total Capital Projects Funds $ 19,857,608 $ 1,210,000 $ 12,830,869 $ 17,395,005 ENTERPRISE FUNDS Oro Valley Water Utility Fund $ 22,619,429 $$ 14,163,939 $ 22,486,741 Stormwater Utility Fund 1,950,138 941,151 1,551,204 Total Enterprise Funds $ 24,569,567 $$ 15,105,090 $ 24,037,945 INTERNAL SERVICE FUNDS Fleet Fund $638,787 $$638,787 $ 1,302,793 Benefit Self Insurance Fund 2,482,664 1,757,500 2,834,000 Total Internal Service Funds $ 3,121,451 $$ 2,396,287 $ 4,136,793 TOTAL ALL FUNDS $ 95,422,156 $$ 63,356,966 $ 93,913,429 * Expenditures/Expenses by Fund Fiscal Year 2014 CITY/TOWN OF ____Oro Valley______ Includes actual expenditures/expenses recognized on the modified accrual or accrual basis as of the date the proposed budget was prepared, plus estimated expenditures/expenses for the remainder of the fiscal year. FUND/DEPARTMENT 4/13 SCHEDULE E275 ADOPTED BUDGETED EXPENDITURES/ EXPENSES EXPENDITURE/ EXPENSE ADJUSTMENTS APPROVED ACTUAL EXPENDITURES/ EXPENSES* BUDGETED EXPENDITURES/ EXPENSES 2013 2013 2013 2014 Council: General Fund $224,618 $$ 224,618 $ 225,853 Department Total $224,618 $$ 224,618 $ 225,853 Clerk: General Fund $322,779 $$ 321,989 $ 345,118 Department Total $322,779 $$ 321,989 $ 345,118 Development & Infrastructure Svcs: General Fund $ 3,803,751 $$ 3,349,021 $ 4,031,561 Highway Fund 6,108,346 3,630,438 6,573,318 Townwide Roadway Dev Impact Fee Fund 7,128,581 4,760,000 5,689,538 Stormwater Utility Fund 1,950,138 941,151 1,551,204 Fleet Fund 638,787 638,787 1,302,793 Department Total $ 19,629,603 $$ 13,319,397 $ 19,148,414 Finance: General Fund $744,111 $$ 726,233 $ 709,242 Department Total $744,111 $$ 726,233 $ 709,242 General Administration: General Fund $ 2,245,094 $(386,000)$ 1,831,394 $ 2,037,730 General Fund - Contingency Reserve 11,034,643 (524,000)2,100,000 9,566,171 Municipal Debt Service Fund 1,570,148 703,861 1,373,416 Oracle Road Improvement District Fund 371,693 370,298 368,740 Benefit Self Insurance Fund 2,482,664 1,757,500 2,834,000 General Government Impact Fee Fund 135,430 123,243 Library Impact Fee Fund 114,798 Department Total $ 17,839,672 $(910,000)$ 6,886,296 $ 16,294,855 Human Resources: General Fund $496,156 $$ 464,107 $ 523,821 Department Total $496,156 $$ 464,107 $ 523,821 Information Technology: General Fund $ 1,213,633 $$ 1,213,633 $ 1,482,173 Department Total $ 1,213,633 $$ 1,213,633 $ 1,482,173 Legal: General Fund $816,559 $$ 768,813 $ 804,344 Department Total $816,559 $$ 768,813 $ 804,344 Magistrate Court: General Fund $757,629 $$ 726,527 $ 761,430 Department Total $757,629 $$ 726,527 $ 761,430 Town Manager's Office: General Fund $728,648 $$ 638,569 $ 700,989 Bed Tax Fund 790,091 (300,000)386,710 997,807 Department Total $ 1,518,739 $(300,000)$ 1,025,279 $ 1,698,796 Parks, Recreation & Cultural Resources: General Fund $ 2,630,112 $$ 2,387,353 $ 2,536,955 Parks & Recreation Impact Fee Fund 543,500 90,100 334,400 Library Impact Fee Fund 153,507 Naranja Park Fund 258,821 (250,000)8,821 Recreation In Lieu Fee Fund 185,240 139,477 16,353 Aquatic Center Project Fund 3,350,000 1,460,000 4,600,218 42,114 Department Total $ 7,121,180 $ 1,210,000 $ 7,217,148 $ 2,938,643 Expenditures/Expenses by Department Fiscal Year 2014 CITY/TOWN OF ____Oro Valley______ DEPARTMENT/FUND 4/13 SCHEDULE F Page 1 of 2276 ADOPTED BUDGETED EXPENDITURES/ EXPENSES EXPENDITURE/ EXPENSE ADJUSTMENTS APPROVED ACTUAL EXPENDITURES/ EXPENSES* BUDGETED EXPENDITURES/ EXPENSES 2013 2013 2013 2014 Expenditures/Expenses by Department Fiscal Year 2014 CITY/TOWN OF ____Oro Valley______ DEPARTMENT/FUND Police: General Fund $ 12,667,903 $$ 12,599,309 $ 14,223,297 Seizures & Forfeitures - State Fund 467,924 175,434 525,354 Seizures & Forfeitures - Federal Fund 832,189 358,910 508,867 Police Impact Fee Fund 153,328 82,646 189,151 Impound Fee Fund 47,503 47,503 47,500 Department Total $ 14,168,847 $$ 13,263,802 $ 15,494,169 Water Utility: Oro Valley Water Utility Fund $ 22,619,429 $$ 14,163,939 $ 22,486,741 Alternative Water Rscs Dev Impact Fee Fund 4,334,770 2,312,919 6,899,226 Potable Water System Dev Impact Fee Fund 3,614,431 722,266 4,100,604 Department Total $ 30,568,630 $$ 17,199,124 $ 33,486,571 *Includes actual expenditures/expenses recognized on the modified accrual or accrual basis as of the date the proposed budget was prepared, plus estimated expenditures/expenses for the remainder of the fiscal year. 4/13 SCHEDULE F Page 2 of 2277 Full-Time Equivalent (FTE) Employee Salaries and Hourly Costs Retirement Costs Healthcare Costs Other Benefit Costs Total Estimated Personnel Compensation201420142014201420142014 GENERAL FUND 258.86 $ 14,475,403 $ 2,140,631 $ 1,536,564 $ 1,609,438 = $ 19,762,036 SPECIAL REVENUE FUNDSHighway Fund 23.08 $ 1,346,753 $153,618 $155,528 $158,251 = $ 1,814,150 Bed Tax Fund 3.00 163,817 18,904 12,267 13,424 208,412 Impound Fee Fund 0.50 20,105 2,320 359 1,630 24,414 Seizures & Forfeitures - State Fund 1.00 46,989 9,553 4,089 6,818 67,449 Seizures & Forfeitures - Federal Fund 2.00 92,167 18,737 15,631 13,248 139,783 Total Special Revenue Funds 29.58 $ 1,669,831$ $203,132$ $187,874$ $193,371$ = $2,254,208$ INTERNAL SERVICE FUNDSFleet Fund 1.15 $55,499 $6,405 $7,414 $5,895 = $75,213 Total Internal Service Funds 1.15 $55,499 $6,405 $7,414 $5,895 = $75,213 ENTERPRISE FUNDSOro Valley Water Utility Fund 37.00 $ 2,015,457 $232,584 $243,880 $196,543 = $ 2,688,464 Stormwater Utility Fund 4.10 234,398 27,050 37,432 20,963 319,843 Total Enterprise Funds 41.10 $ 2,249,855 $259,634 $281,312 $217,506 = $ 3,008,307 TOTAL ALL FUNDS 330.69 $ 18,450,588 $ 2,609,802 $ 2,013,164 $ 2,026,210 = $ 25,099,764 FUND CITY/TOWN OF ____Oro Valley______Full-Time Employees and Personnel CompensationFiscal Year 2014 4/13 SCHEDULE G 278 2013 – 2014 Annual Budget Town of Oro Valley 279 2013 – 2014 Annual Budget This Page Intentionally Left Blank 280 2013 – 2014 Annual Budget Appendix Glossary of Terms ADOPTED BUDGET: Formal action made by Town Council that sets the spending limits for the fiscal year. ALLOCATION: Assigning one or more items of cost or revenue to one or more segments of an organization according to benefits received, responsibilities, or other logical measures of use. AMORTIZATION: The systematic and rational distribution of the cost of an intangible capital asset over its estimated useful life. ANNUALIZED COSTS: Operating costs incurred at annual rates for a portion of the prior fiscal year and which must be incurred at similar rates for the entire 12 months of the succeeding fiscal year. BALANCED BUDGET: A budget in which recurring revenues equal recurring expenditures. BOND: A municipality will issue this debt instrument and agree to repay the face amount of the bond on the designated maturity date. Bonds are primarily used to finance capital projects. BUDGET: A financial plan consisting of an estimate of proposed expenditures and their purposes for a given period and the proposed means of financing them. CAPITAL EXPENDITURE: Those items valued over $1000 with a life expectancy of at least five years. CAPITAL IMPROVEMENT PLAN (CIP): A comprehensive five-year plan consisting of items costing $50,000 or more which will support the continued growth and development of the Town. CAPITAL PROJECT FUND: Fund used to account for financial resources used for acquisition or construction of major assets. CARRYFORWARD: Year-end savings that may be re-appropriated in the following fiscal year to cover one-time expenditures. CENTRAL ARIZONA PROJECT (CAP): The system of aqueducts, tunnels, pumping plants and pipelines responsible for bringing Colorado River water to Arizona’s Pima, Pinal, and Maricopa counties. CENTRAL ARIZONA WATER CONSERVATION DISTRICT (CAWCD): a state agency with the primary responsibility of managing the Central Arizona Project (CAP). CLEAN RENEWABLE ENERGY BONDS (CREBS): Bonds issued to finance certain renewable energy or “clean coal” facilities. Projects funded with CREBS must generate electricity and must be created from clean and/or renewable sources. CONTINGENCY: Monies set aside as carryover to the following fiscal year, but which can be used to finance unforeseen expenditures of the various operating funds. DEBT SERVICE: Principal and interest payments on outstanding bonds. DEBT SERVICE FUND: Fund used to account for accumulation of resources that will be used to pay general long-term debt. DEPARTMENT: A major administrative division of the Town that indicates overall management responsibility for an operation or group of related operations within a functional area. DEPRECIATION: The systematic and rational distribution of the cost of a tangible capital asset (less salvage value) over its estimated useful life. DIVISION: A functional unit of a department. ENTERPRISE FUND: Accounts for expenses of programs or services, which are intended to be self-sustaining. User fees primarily cover the cost of services. ESTIMATED REVENUE: The amount of projected revenue to be collected during the fiscal year. EXPENDITURE: The use of government funds to acquire goods or services. 281 2013 – 2014 Annual Budget Appendix Glossary of Terms EXPENDITURE LIMITATION: The Arizona State Legislature imposed constitutional amendment that limits the annual expenditures of all municipalities. The Economic Estimates Commission sets the annual limit based on population growth and inflation. All municipalities have the option of (Home Rule Option) proposing an alternative expenditure limitation to its voters. Oro Valley citizens approved the Home Rule Option in 2010. FISCAL YEAR: Any period of twelve consecutive months establishing the beginning and the ending of financial transactions. For the Town of Oro Valley, this period begins July 1 and ends June 30. FULL ACCRUAL: Basis of accounting that recognizes the financial effect of transactions, events, and interfund activities when they occur, regardless of the timing of related cash flows. FULL TIME EQUIVALENT (FTE): A position, permanent or temporary, based on 2,080 hours per year. Part-time positions are converted for budget purposes to a decimal equivalent of a full-time position based on 2,080 hours per year. For example, a part-time employee working 20 hours per week would be equivalent to a 0.5 FTE. FUND: A fiscal and accounting entity with a self-balancing set of accounts recording cash and other financial resources. FUND BALANCE: The difference between assets and liabilities reported in a governmental fund. GENERAL FUND: A fund used to account for all general purpose transactions of the Town that do not require a special type of fund. GENERAL OBLIGATION BONDS: Bonds that are guaranteed by the full taxing power of a city or town. These bonds are usually retired from property tax funds. GENERAL PLAN: A plan approved by Town Council and ratified by the voters that provides the fundamental policy direction and guidance on development decisions in the Town. The General Plan is the “constitution” for growth and development in the community. GIS: Geographic Information System(s). A geographic information system is an integrated hardware, software and data system that allows for the capturing and analyzing of geographic information in forms such as maps and globes. GOAL: A statement of broad direction, purpose or intent based on the needs of the community. GOVERNMENTAL FUNDS: Funds generally used to account for tax-supported activities. Examples include the general fund, special revenue funds, debt service funds, and capital projects funds. GRANT: A contribution by the state or federal government or other agency to support a particular function. HIGHWAY USERS REVENUE FUND (HURF): This revenue source consists of the gasoline tax collected by the state and distributed to counties and cities based on the county of origin and population. These revenues are to be used for street and highway purposes. HOME RULE OPTION: An alternative expenditure limitation that allows a municipality to expend what it anticipates in revenues each fiscal year. This limitation must be approved by the voters and is effective for four fiscal years. IMPACT FEES: The fees charged to offset the cost of town improvements that are required due to growth-related development. IMPROVEMENT DISTRICT BONDS: Bonds that are issued to finance projects in a designated area within a town or city. The majority of property owners in this district must approve the formation of the district and the amount of indebtedness. The bonds are then repaid by the assessments levied on the property in the district. 282 2013 – 2014 Annual Budget Appendix Glossary of Terms INFRASTRUCTURE: Facilities that support the continuance and growth of a community. INTERFUND TRANSFER: Movement of resources between two funds. INTERNAL SERVICE FUND: Used to report any activity that provides goods or services to other funds, departments or agencies on a cost- reimbursement basis. LONG TERM DEBT: Debt with a maturity of more than one year after date of issuance. LTAF: Local Transportation Assistance Funds. This funding has been permanently eliminated. Funds were collected from Arizona state lottery proceeds and distributed to cities and towns on population basis. The funds were to be used for public transportation and transportation purposes. MODIFIED ACCRUAL: Basis of accounting that reports those transactions, events, and interfund activity that affect inflows and outflows of financial resources in the near future. MUNICIPAL PROPERTY CORPORATION BONDS: Bonds that are issued by a non-profit corporation formed by the Town for the purpose of financing the construction or acquisition of capital improvement projects. These bonds may be issued without voter approval. OBJECTIVE: A statement of specific measurable outcomes that contribute toward accomplishing the departmental goal. OPERATING BUDGET: Appropriations for the day- to-day costs of delivering Town services. PAG: Pima Association of Governments. PER CAPITA: A unit of measure that indicates the amount of some quantity per person. PERFORMANCE MEASURES: Indicators that measure how well an organization is performing on progress towards organizational objectives. PROGRAM: A group of related functions or activities performed by a division where there is a desire to budget and identify expenditures independently of other activities within the division. PROPRIETARY FUNDS: Funds that either (1) operate largely on fees and charges for services to external customers or (2) operate on a cost recovery basis with internal customers, such as other government departments, divisions or programs. Enterprise Funds and Internal Service Funds are the two types of proprietary funds. RESERVES: To set aside a portion of a fund balance to protect against economic downturns or emergencies. REVENUE: Amounts estimated to be received from taxes and other sources during the fiscal year. RTA: Regional Transportation Authority. The government entity that manages the $2.1 billion, 20-year regional transportation plan approved by Arizona’s Pima County voters on May 16, 2006. SPECIAL REVENUE FUND: Fund used to account for revenues from specific taxes or other earmarked revenue sources that by law are designated to finance particular functions or activities of government. STATE SHARED REVENUE: Includes the Town’s portion of state sales tax revenues, state income tax receipts, and Motor Vehicle taxes. USER FEES: Fees charged for the direct receipt of a public service to the party or parties who benefit from the service. WATER INFRASTRUCTURE FINANCE AUTHORITY BONDS (WIFA): WIFA is a state agency that has specific programs that can improve a city or town’s ability to use bonding as a revenue source. WIFA is charged to assist smaller to medium sized communities’ pool their bond issues together to help lower the costs of issuing debt. They also have monies set aside to help secure the debt and allow the bonds to be issued at the lowest interest rate possible. WORKLOAD INDICATORS: Indicators that determine and illustrate workload or output for a department, division or program. 283 2013 – 2014 Annual Budget This Page Intentionally Left Blank 284