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HomeMy WebLinkAboutBudget Records-Town - 6/30/2012FY 2011-2012 J P�LEY q�l� O�-9 Caring for our heritage, our community, our future. 11110VNDED 19�� www.o rova I I e az.g ov Y ,,P4,LEY qq�2 OPp�� �t���r�r 02 r t. Town of Oro A�pI/NDED Ac'l Va I ley Arizona 2011— 2012 Annual Budget 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 a shared future with a government that is responsive to residents, businesses and changing conditions to ensure the long-term financial stability of the Town. Govern efficiently, inclusively and responsively to promote community health, safety and a sustainable quality of life for residents, business and visitors. We are strongly committed to: :Z Honesty and Integrity ANN Openness and Transparent Government :Z Fairness and Trust Worthiness :Z Respect for Diversity :Z Creativity, Teamwork and Continuous Improvement :Z Excellent Customer Service Introduction Budget Message......................................................1 Budget Document Guide..........................................9 Mayor and Council...................................................13 Organization Chart...................................................14 StrategicPlan..........................................................17 Revenue Sources ..................................................... 61 GeneralPlan............................................................24 Expenditure Schedule by Fund.................................75 Fund Structure........................................................27 Personnel Summary .................................................81 Financial and Budgetary Policies...............................31 Budget Process........................................................39 Budget Calendar......................................................41 Financial Overview Budget Overview.....................................................43 FundBalances.........................................................47 Budget Summary .....................................................48 Revenue Summary ..................................................51 Revenue Schedule by Fund......................................53 Revenue Sources ..................................................... 61 Expenditure Summary ..............................................71 Expenditure Schedule by Fund.................................75 Expenditures by Program.........................................77 Personnel Summary .................................................81 DebtService............................................................87 Program Budgets Clerk....................................................................... 91 Council.................................................................... 94 Development & Infrastructure Svcs ...........................96 Finance...................................................................118 General Administration .............................................126 Human Resources ....................................................127 Information Technology ...........................................134 Legal......................................................................143 Magistrate Court ......................................................150 Manager.................................................................153 Parks, Recreation, Library & Cultural Resources .........161 Police......................................................................175 Water Utility............................................................195 Alternative Water Resource Development Impact Fee Fund .................................................203 Potable Water Systems Development Impact Fee Fund .................................................204 2011-2012 Annual Budget 4W 4F Table of Contents Program Budgets Cont'd Capital Asset Replacement Fund ...............................205 Municipal Debt Service Fund .....................................206 Oracle Road Improvement District Debt Service Fund ................................................207 Roadway Development Impact Fee Fund ....................208 Capital Improvement Program Program Overview ...................................................209 Projects by Fund ......................................................217 Mapof Projects ........................................................221 Project Descriptions .................................................223 Appendix CommunityProfile ....................................................231 Oro Valley History ....................................................235 Resolution Adoption .................................................239 Auditor General Statements ......................................243 Personnel Schedule ..................................................255 Debt Service Schedules ............................................263 Glossary..................................................................271 This Page Intentionally Left Blank 2011 - 2012 Annual Budget 0 Operating Budget $46,637,926 Council $220,573 Clerk $456,089 Manager $1,113,148 Human Resources $482,649 Court $781,625 Finance $722,199 IT $1,252,797 General Administration $2,141,767 Legal $841,832 Public Safety $12,142,500 Facilities $303,667 Library $1,115,815 Parks & Recreation $1,633,911 Cultural Resources $126,976 Development Services $2,474,261 Streets & Roadways $5,962,015 Transit $612,751 Debt Service $995,824 Water $12,574,304 Stormwater $683,223 2011 — 2012 Annual Budget Financial Organizational Chart FY 2012 Budget $94,219,647 Contingency $32,112,721 General Fund $9,381,226 Special Revenue Funds $3,664,880 Debt Service Funds $1,260,445 Capital Project Funds $8,332,562 Enterprise Funds $9,473,608 Capital Projects $15,469,000 Street Maintenance $1, 200,000 Water Systems $5,215,000 Road Expansions $7,981,000 Stormwater $1,073,000 This Page Intentionally Left Blank 2011 - 2012 Annual Budget 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, 2010. 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. NTV-3 2011 - 2012 Annual Budget This Page Intentionally Left Blank �vpa.LEY ,gR4o 11, +A 1= e spending priorities. Budget Message )erene Watson, 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 2011/2012. The FY 2011/12 adopted budget totals $94.2 million, which represents a $22 million, or 19%, spending decrease from the prior year adopted budget of $116.2 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 As has been the case over the past several years as we've managed through the "'Great Recession," this budget year is a year filled with challenges and opportunities. Hints of an economic silver lining have emerged. It appears that we have hit bottom with revenue losses in FY 2011 as we see the State of Arizona and the Town of Oro Valley slowly emerge from the worst economic downturn since the Great Depression. However, there continues to be one point of agreement among economists looking forward to the future: economic recovery will be slow. Cities and towns around the country are continuing to adjust to new, lower levels of revenues that, in many cases, have reverted back to levels not seen since 2005. This is certainly the situation facing the Town of Oro Valley. However, the bridging strategies used to balance the budget the last several years, focusing on strategic reductions in service levels, paying off bond debt and the cautious use of reserves, have positioned the Town of Oro Valley better than most cities and towns in Arizona. CHALLENGES WE FACE In Arizona, cities and towns are reliant upon the state for a major portion of their revenue in state shared revenues. For Oro Valley, state shared revenues comprise about 1/3, or just over $8.1 million, of the Town's General Fund budget. Therefore, the state's financial condition plays a significant role in the economic health of its local governments. For fiscal year 2009/10, the State of Arizona operated almost entirely without an adopted balanced budget. The State continued into FY 2010/11 with a budget severely out of balance with an operating deficit approximating $750 million. On April 1, 2011, the Legislature passed a series of bills to partially close the FY 2010/11 deficit and provide a balanced budget for FY 2011/12. These budget bills cut State expenditures by more than $1.25 billion, without raising revenue at the State level. While these cuts allowed state legislators to balance their budget without raising taxes, significant costs for the provision of State services were shifted to the local level of counties and cities. Below are several impacts we saw from this action: IMPACT: The Town's share of Highway User Revenue Funds (HURF) was reduced by $316,681, a 12% decrease from FY 10/11 HURF receipts, in order to partially fund the state's Department of Public Safety and the Department of Transportation. IMPACT: The Town will also be required to pay fees totaling $57,156 from our Water Utility to partially fund the state's Department of Water Resources. 2011 - 2012 Annual Budget Introduction IMPACT: As a result of the State passing cost increases to counties, Pima County Superior Court has notified our Magistrate Court that they will now charge a fee to reimburse the Pima County Justice Court for their service of providing video court on initial appearances causing a $5,000 increase to our Courts budget. Locally, we found ourselves in the midst of 27 straight months of collective sales tax decline as we prepared the budget for FY 2011/12. The Town continued to see declines in residential building permits during FY 2010/11 as local construction activity seems to have bottomed out in the area. The Town issued only 47 new single family residential (SFR) building permits for FY 2010/11, down from 65 SFR permits issued in FY 2009/10. This declining construction environment has resulted in local construction sales tax collections reaching historic lows during FY 2010/11, bringing in only $1.8 million, down significantly from FY 2007/08 when collections peaked at $7.6 million. During this same timeframe, other sales tax categories, such as retail, utilities and restaurant/bar, have slowly and steadily increased, but nowhere near the levels necessary to offset the losses seen from construction taxes. BUDGET BALANCING MEASURES — ACTIONS TAKEN Given the above challenges and continued revenue shortfalls, we were faced with the need to close a $2.6 million deficit in the Town's main operating fund, the General Fund, for FY 2011/12. This was the third year in a row that the Town has had to reduce expenditures to meet declining revenues. The General Fund budget has dropped 21%, or $6.7 million, since its peak level in FY 2008/09. Town -wide staffing levels have decreased by 60 positions, or by 15% overall during that same timeframe. Prior years' efforts to close deficits have centered around preserving those services with the widest visibility to the public while making efforts to reduce recurring expenditures and fill the revenue shortfall gap through the following: • eliminating positions when vacancies occurred; • using available cash reserves to pay off outstanding bonds to reduce debt service costs; • modifying the Town's liability insurance deductibles to reduce premium costs; • increasing the use of bed tax revenues to fund General Fund operations • reducing long-term utility costs through energy efficiency upgrades and the installation of solar photovoltaic panels at the Town Hall campus • merging of Building Safety, Planning and Zoning and Public Works departments into consolidated department called Development and Infrastructure Services • merging of Parks and Recreation and Library with cultural resources components to form a consolidated department called Parks, Recreation, Library & Cultural Resources Heading into FY 2011/12, the Town had already exhausted many of the available deficit closing options that carried the least impact to the services and programs provided to the public. This created the need to make more difficult decisions to address the Town's structural budget gap. Therefore, under the Council's leadership and guidance, a four -pronged approach was developed to tackle not only the near term budget deficit projected for FY 2011/12, but also the longer term structural imbalance projected between revenues and expenditures. This four - pronged plan focused on the following areas: Council Policies, Operational Efficiencies, Increased Revenues and Decreased Expenditures. The following describes the actions taken in each focus area to improve the Town's short-term and long-term financial stability: 2011 - 2012 Annual Budget Introduction 2 Council Policies • Pursue efforts to partner with adjacent town of Marana to jointly market and brand our communities in order to increase tourism and expand economic development opportunities • Continue funding regional economic development and tourism partner agencies, the Metropolitan Tucson Convention and Visitors Bureau (MTCVB) and Tucson Regional Economic Opportunities (TREO), for attraction and tourism benefits to the Town • Conducted economic summits with local business partners to seek input on how the Town can stimulate local economic development and support local business efforts • Increased efforts directed at annexation of surrounding areas to expand the Town's economic, tourism and sales tax base Operational Efficiencies • Streamlined commercial development review processes by integrating plan review and permitting processes to provide customers aone-stop shop for new construction permitting to get new businesses open sooner • Created new Conceptual Design Review Board (CDRB) by consolidating several Town development review boards/commissions into one for quicker approval of commercial design plans • Continued cross -training, realignment and reduction efforts in the consolidated department of Development and Infrastructure Services to reduce the General Fund budget by an additional $235,000 and 3 less positions Increased Revenues and Planned Use of Cash Reserves • Council -adopted increase to the local utility sales tax from 2% to 4% is expected to generate an additional $1.3 - $1.4 million annually for the General Fund • Increased cost recovery from the Water and Stormwater Utility Funds for administrative services provided by the General Fund for an additional $320,000 in revenues • Bed tax revenues of $675,000 have been incorporated to bring the General Fund into balance from the revenue shortfall created by the drop in construction sales taxes • Planned use of $700,000 in Highway Fund cash reserves to sustain pavement management program during FY 2011/12 due to reductions of state shared Highway User Revenue Funds • Planned use of $451,000 in Bed Tax Fund cash reserves to sustain Coyote Run transit service operations during FY 2011/12 while more efficient regional -based solutions are explored for providing this service into the future • Enacted Parks and Recreation user fee and liquor license application review fee increases to improve cost recovery associated with providing those services • Diversified Town invested funds with an investment management firm resulting in increased interest earnings Decreased Expenditures and Hold the Line Efforts • Created one-time savings of $566,000 by deferring capital projects and vehicle replacements • Reduced parks and recreation program spending by an additional 6%, or $96,000, through reduced pool hours and elimination of all 3 summer recreation camps 2011 - 2012 Annual Budget 3 Introduction • Reduced Town facility janitorial services contract for a savings of $41,000 • Competitively bid health insurance coverage, resulting in no increases to employee health insurance premiums for FY 2011/12 • No employee pay raises or step increases for 3rd year in a row • Continue to leave positions unfilled when vacated • Expanded use of volunteers and non -paid interns • Installed energy efficiency upgrades and solar photovoltaic panels on Town Hall campus to significantly reduce Town energy costs The goal of the multi -faceted approach outlined above was to address the shorter term goal of closing the projected FY 2011/12 General Fund deficit of $2.6 million through the immediate revenue increases and expenditure reductions, while seeking to grow our local economy longer term through the Council policies and operational efficiencies put into place. As the Town of Oro Valley continues to operate without a property tax and many other taxes and fees that are commonplace in other Arizona cities/towns, such as commercial and residential lease tax, food tax, and utility franchise fees, the Town will only prosper through longer term efforts to grow its business attraction and retention efforts. Enhanced economic development efforts will focus primarily on attracting and retaining businesses in the retail, tourism and biotechnology sectors that are so prevalent in our local economy. STRATEGIC PLANNING AND KEY INITIATIVES FOR FY 2011/12 The budget balancing efforts described above tie directly to the key objectives identified in the Town's 2011 Adopted Strategic Plan. The recently updated 2011 Strategic Plan identifies three (3) main focus areas: Leadership and Communication; Finance and Economic Development; and Community Infrastructure. The adopted FY 2011/12 budget aims to achieve progress in each of the above areas. In the area of Leadership and Communication, the Town will continue to communicate with residents through its monthly Town newsletter, The Oro Valley Vista, which is produced electronically and posted on the Town's website. Also, an important goal in this area is to maintain strong intergovernmental relationships at all levels. This is being fulfilled by efforts to partner with the town of Marana on joint marketing and branding efforts and efforts underway to partner with the Regional Transportation Authority (RTA) to provide a cost-effective solution to continue providing local transit services to our residents. In the area of Finance and Economic Development, the Town is committed to facilitating the expansion of the local economy. Commercial business growth, along with strategic annexations and the Town's continued success in attracting high-tech and bio -science industry, point the way toward a sustainable model for economic development. In addition, we will be taking a comprehensive look at all fees, charges and other revenues collected by the Town to determine the level of service cost recovery provided by these revenues and evaluate the existing levels of fees and charges for relative competitiveness to other surrounding jurisdictions. Council and management are also working together to roll out additional programs around the holidays to enhance the Town's Shop Oro Valley campaign by promoting local business through various coupon and promotional activities. Finally, the Town will maintain active participation and funding for its tourism and economic development partner 2011 - 2012 Annual Budget Introduction 4 agencies, the Metropolitan Tucson Convention and Visitors Bureau (MTCVB) and Tucson Regional Economic Opportunities (TREO). In the area of Community Infrastructure, the FY 2011/12 Highway Fund budget includes $1.2 million towards the Town's pavement preservation program dedicated to preserving the overall condition of Town roadways. To address current and future transportation demands, the widening of Lambert Lane will commence in early FY 2011/12, funded entirely with regional gas tax revenues provided by the Pima Association of Governments (PAG). In addition, the Town Council recently approved an Intergovernmental Agreement (IGA) with the City of Tucson for interim delivery of Oro Valley's allocation of Central Arizona Project (CAP) water. To implement the IGA, the Oro Valley Water Utility is taking steps to deliver our CAP water through the Tucson Water system by mid -fiscal year. The delivery of renewable CAP water will reduce the use of groundwater, which will help protect and preserve our aquifer. Finally, the FY 2011/12 budget preserves Police Department services and staffing levels at a rate of 2.4 officers/1,000 residents to ensure a safe community where residents and visitors continue to feel secure. FUTURE SUSTAINABILITY As we balance the adopted budget for FY 2011/12, we cannot avoid the looming deferred needs facing the Town in the very near future. The Town is experiencing increased budget pressures due to aging infrastructure replacement needs, deferred replacement of the very tools needed to do our jobs (i.e. vehicles and computers), the inability to provide employee pay increases during the past three years and projected increases in employee pension and other benefit costs. These demands must be balanced with the expectations of slow economic recovery, limited growth potential for state shared revenues and increased demand for Town services in many areas. These factors will ultimately lead the Town to further evaluate its core services and identify whether to continue in the business of providing certain programs and services. Some of these preliminary discussions occurred during the most recent budget process concerning the operations of the Oro Valley Library and the Coyote Run Transit Service. FY 2011/12 is the last year of a five-year agreement with the Pima County Library District (PCLD) that provides for the Town to operate its library as an affiliate of the PCLD, where the Town provides half of the funding for the library budget from Town General Funds (approximately $550,000), and the PCLD provides the other half of the funding for the library budget from its Pima County Library District Tax revenues. Library agreement negotiations will soon commence with the PCLD with the goal of seeking a greater financial benefit for the Town in the future. In addition, as mentioned earlier, the Town continues to work with the Regional Transportation Authority (RTA) to deliver local transit services in a more cost efficient manner, reducing the drain on local funds in the future. By finding ways to reduce or eliminate structural budget deficits caused by an excess of recurring expenditures over incoming revenues, the Town will be poised to address its looming deferred needs sooner rather than later. In the meantime, we continue to maintain strong investment grade ratings on our outstanding 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 2011 - 2012 Annual Budget 5 Introduction fund balance reserves in the General Fund, currently at $9.4 million, or 36% of FY 2011/12 adopted expenditures. This is well above the Council -adopted policy threshold of 25% of adopted expenditures. CONCLUSION The Town of Oro Valley has long prided itself on being a lean organization, making the most of the resources entrusted to us. The prolonged recession has forced us to make hard choices about which services we will provide to the community, and how we will provide them. Fiscal discipline and wise stewardship over many years have made it possible for us to take a balanced approach as we strategically reset our service levels. I would like to thank both the Town Council and the Town staff for the strong partnership that has enabled us to effectively meet the challenges we face. Also, a special thanks goes to our citizens who closely followed the budget deliberations and offered their valuable suggestions and ideas. Sincerely, Jerene Watson Town Manager 2011 - 2012 Annual Budget 101 Introduction Y Town of Oro Valley Caring I or our heritage, our community, our future. 2011 - 2012 Annual Budget r 7 2011 - 2012 Annual Budget m m 4 1w This Page Intentionally Left Blank 8 „� • • • 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'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. 2011 - 2012 Annual Budget 9 .......................................................................................................................... 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 is 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. It depicts how revenue and expenditures are allocated among Town funds. The fund balance provides 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 personnel summary provides an overview of personnel and employee compensation, staffing levels by function, employee benefit matching rates, and FTEs per capita. The debt section provides an overview on the types of debt used by the Town, their uses, and future debt requirements. ..............................................................................................................................: Introduction 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 has various information pertaining to personnel, the Town's economic makeup and demographics, debt schedules and a glossary of terms. 2011 — 2012 Annual Budget 10 Budget Document Guide .................................................................................................................................... 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 five-year CIP plan. It also includes a description and justification for each of the projects budgeted and their future operating impact. :...................................................................................................................................: The appendix section includes informational facts on the Town of Oro Valley, the resolution adopting the budget, Auditor General Statements, a personnel listing, complete debt payment schedules, and a glossary of frequently used terms. :...................................................................................................................................: Introduction �PL�,EY U 9 Town of Oro Valley Caring for our heritage, our community, our future. 2011 - 2012 Annual Budget 2011 - 2012 Annual Budget This Page Intentionally Left Blank 12 my Dr. Satish I. Hiremath, DDS Mayor Term Expires: June 2014 Mayor and Council The Mayor and Council of Oro Valley are committed to the creation of a "Community of Excellence" where high quality municipal services are coupled with 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. Mary Snider Vice -Mayor Term Expires: June 2014 William Garner Councilmember Term Expires: June 2012 Joe Hornat Councilmember Term Expires: June 2014 2011 — 2012 Annual Budget 13 Barry Gillaspie Councilmember Term Expires: June 2012 Lou Waters Councilmember Term Expires: June 2014 Steve Solomon Councilmember Term Expires: June 2012 Introduction Appointed boards & Commissions Organizational Chart I Oro Valley Residents I Assistant ' Communications Town Economic Manager Development Clerk I I Town Council I ITUtty ality I PRL&CR DIS -j Town Manager Human Finance Chief of Town Town Resources Police I I Attorney Magistrate , GIS Utility Parks & Development I Personnel Procurement Field CMI Services Administration Recreation Services IServices Services Planning. & Infrastructure Budgeting Prosecution Technical Engineering Library Services safety & Support Services Risk Operations Cultural Management Accounting Services Business Resources Application & Development 2011 — 2012 Annual Budget 14 Introduction E Y O�P��gA�2O "UA/DED A"J-' Town of Oro Valley Caring for our heritage, our community, our future. 2011 - 2012 Annual Budget 2011 - 2012 Annual Budget This Page Intentionally Left Blank 16 • • • Strategic Plan Overview The Town of Oro Valley's Strategic Plan is a dynamic document that guides Town decision-making and resource management in pursuit of organizational goals. It is purposely "strategic" in terms of its timeframe (2 to 5 years) because a successful organization must be flexible enough to respond to changes at the local, regional and national levels. 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. The Strategic Plan is grounded in the "vision" expressed in the Council -adopted and voter -ratified Oro Valley General Plan. The General Plan provides the long-term (up to 20 years) vision for community growth, development and redevelopment. 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 Departmental Financial Specific Topic Strategic Plans Sustainability Plans Including Capital Plan and Personnel Requirements 2011 - 2012 Annual Budget 17 Introduction Capital Specific Improvements •Zoning Plan Ordinances Master Plans •Specific Area and Studies Plans • Design Guidelines Annual •Impact Fees Town and Other Budget Ordinances 2011 - 2012 Annual Budget 17 Introduction Strategic Plan Focus Areas The Oro Valley Strategic Plan outlines the goals, strategies and actions required for the municipal government to successfully attain the community vision. Three focus areas provide the framework for the Strategic Plan. These focus areas indicate where the Town must direct its attention in order to address community needs and desires. The focus areas are: • Leadership & Communication • Finance & Economic Development • Community Infrastructure Within each focus area are goals, strategies and actions designed to produce desired outcomes. Goals describe a fundamental direction or broad course of action. Strategies describe the manner in which the resources of the organization will be employed to accomplish each goal. Actions are specific tasks that will be accomplished to assist in implementing each goal. Implementing these goals, strategies and actions will require leadership, financial commitment, effective management and continual evaluation. A. Leadership & Communication Leadership and communication are interrelated principles; you cannot have one without the other. Leadership is the ability to communicate a vision, motivating people to transform great ideas into action. Leadership and communication from the Town Council and the Town Manager enable the organization to achieve its goals in service to the community. The overarching goal of the organization is to uphold the highest standards of trust, respect and accountability in municipal government. GOAL 1 Build trust through effective public outreach and communication STRATEGY 1.1 Communicate information to residents and help promote community pride and a feeling of accessibility to local government information and activities ACTION 1.1.1 Respond to community issues and concerns through the Constituent Services Office ACTION 1.1.2 Use non-traditional media sources such as social media Twitter and Facebook to provide public education and outreach ACTION 1.1.3 Publish the Oro Valley VISTA, our monthly community magazine STRATEGY 1.2 Provide opportunities for residents to become involved in, engaged in and knowledgeable about the role of local government ACTION 1.2.1 Continue to foster relationships with volunteers and appointed Advisory Board Members ACTION 1.2.2 Conduct Council on Your Corner and Speakers Bureau events for officials and staff monthly throughout the year, as well as an annual Homeowners Association (HOA) forum each October ACTION 1.2.3 Use the "Peek Behind the Curtain" program to provide citizen -friendly presentations on programs and departmental service delivery 2011 - 2012 Annual Budget 18 Introduction t • • • • • Strategic Plan GOAL 2 Create an environment conducive to effective dialogue among the Council and staff STRATEGY 2.1 Implement a comprehensive internal communications program ACTION 2.1.1 Provide appropriate tools and guidelines to ensure adherence to organizational standards regarding brand management and communication ACTION 2.1.2 Use the Council Report and Council Foreword to communicate important issues to the Town Council and management ACTION 2.1.3 Use the internal Communications Roundtable to engage representatives from each department in communications planning for internal news, events and opportunities ACTION 2.1.4 Use the employee Brown Bag forums with the Manager and the "Talk of the Town" monthly newsletters to promote internal communication STRATEGY 2.2 Encourage and develop leadership skills and opportunities ACTION 2.2.1 Attract, develop and retain talented employees ACTION 2.2.2 Maintain consistency in personnel codes and policy implementation ACTION 2.2.3 Empower employees to develop innovative solutions to operational and service challenges GOAL 3 Maintain strong intergovernmental relationships STRATEGY 3.1 Implement an aggressive annual legislative program that strengthens intergovernmental relations at the federal, state and county levels, and includes neighboring municipalities and governing districts ACTION 3.1.1 Adopt a state and federal legislative agenda for the Town in January of each year ACTION 3.1.2 Empower the intergovernmental liaison to seek legislative solutions that benefit the Town and the region ACTION 3.1.3 Promote regionalism and partnerships to facilitate Council policy direction B. Finance & Economic Development The Town will continue to implement sound financial management policies and uphold our fiduciary duty to the residents of Oro Valley. Beyond fiscal responsibility, the Town is also committed to facilitating the expansion of the local economy. Commercial business growth, and the Town's continued success in attracting high-tech and bio -science industry, point the way toward a sustainable model for economic development. GOAL 1 Maintain a balanced budget STRATEGY 1.1 Analyze programmatic, service delivery and personnel strategies across the organization for cost -savings and reductions 2011 - 2012 Annual Budget 19 introduction 'W i 7 A Strategic Plan ACTION 1.1.1 Manage and operate departments within approved funding limits with contingency plans drafted in the event state shared revenues are swept from our budget ACTION 1.1.2 Use the 5 -year financial forecast model to continuously monitor the Town's short-term and long-term financial forecast ACTION 1.1.3 Develop monthly reports to Council on the status of revenues and expenditures with analysis of trends and projections for end of year budget picture; communicate this data to internal and external customers ACTION 1. 1.4 Maintain contingency reserves in accordance with adopted policies ACTION 1.1.5 Maintain intent of the hiring freeze assumption and delay hiring into positions where feasible ACTION 1.1.6 Capitalize on potential funding resulting from 2010 decennial census population figures ACTION 1.1.7 Use program -based budgeting to communicate the cost of projects and services ACTION 1. 1.8 Develop benchmark performance measures for each department that allow for analysis of the effectiveness of programs and services; use these performance measures to link the budget and organizational strategic plan documents GOAL 2 DEVELOP DIVERSE SOURCES OF REVENUE STRATEGY 2.1 Present additional revenue source options for Council consideration during the annual budget process ACTION 2.1.1 Conduct continuous evaluation of Town user fee policies ACTION 2.1.2 Use the cost allocation study to determine appropriate levels of General Fund support from Town enterprise funds ACTION 2.1.3 Continue to work with federal, state and regional agencies to secure funding for Town projects ACTION 2.1.4 Implement systems that will enhance the ability of the organization to pursue and manage grant funding ACTION 2.1.5 Pursue public-private partnerships involving the lease of Town -owned property STRATEGY 2.1 Expand the constituency of the Town through annexation ACTION 2.2.1 Pursue annexation opportunities that provide a long-term benefit to the Town ACTION 2.2.2 Perform fiscal impact analysis of potential annexation scenarios; initiate annexation of Council -directed areas GOAL 3 CUL TIVA TE RELA TIONSHIPS WITH THE BUSINESS COMMUNITYAND CREA TE A BUSINESS-FRIENDL Y ENVIRONMENT STRATEGY 3.1 Encourage the attraction, expansion and retention of diverse employment, retail and tourism opportunities 2011 - 2012 Annual Budget c Introduction R fi �e6 /Ik ED Strategic Plan ACTION 3.1.1 Expand marketing efforts to attract primary employers in the high-tech and bio -science fields ACTION 3.1.2 Promote local businesses through programs such as Shop Oro Valley, Business Navigator, Buy Local, coupon or promotional activities ACTION 3.1.3 Adhere to procurement practices that provide Oro Valley businesses all opportunities to compete for Town business and that promote the ideals of the Shop Oro Valley campaign ACTION 3.1.4 Continue business retention and expansion site visits; expand site visits to include a Councilmember as part of the team STRATEGY 3.2 Seek out collaborative projects with the business community and regional economic development partners ACTION 3.2.1 Facilitate the development of a Town Center, focused on retail services and hospitality, that serves as a "downtown" for Oro Valley ACTION 3.2.2 Maintain membership and active participation in Tucson Regional Economic Opportunities (TREO), Metropolitan Tucson Convention & Visitors Bureau (MTCVB), Metropolitan Pima Alliance (MPA), Northern Pima County Chamber of Commerce (NPCCC) and Arizona Association of Economic Developers (AAED) to keep abreast of developing needs and trends in economic development and marketing of the Town ACTION 3.2.3 Collaborate with regional managers to reach out to large employers to ensure the corporate needs are understood and acted upon for the economic benefit of the region ACTION 3.2.4 Use Town Council speaking engagements and presentations to reach out to business and civic leaders ACTION 3.2.5 Use Economic Summits feedback to update the Community and Economic Development Strategy (CEDS) C. Community Infrastructure Community infrastructure encompasses both the social and physical factors that determine a community's strength. The Town's investment in both social and physical infrastructure creates the complex network of facilities, programs and services that we refer to as quality of life. The Town of Oro Valley strives for excellence in the provision of community services, the development of social relations, and the construction and maintenance of the built environment. GOAL 1 PLAN FOR AND PROVIDE THE NECESSARY INFRASTRUCTURE TO SUPPORT COMMUNITY GROWTH AND PRESERVA TION STRATEGY 1.1 Develop and implement comprehensive strategic and operational plans for municipal facilities and physical infrastructure ACTION 1.1.1 Update the 5 -year Capital Improvement Plan (CIP) to include all facility and infrastructure projects and available funding sources ACTION 1.1.2 Assess future needs by tracking maintenance history and Town growth ACTION 1.1.3 Use existing/new technology, develop innovative processes and procedures for continuous improvement of Development and Infrastructure Services (DIS) department service provision 2011 - 2012 Annual Budget 21 Introduction Strategic Plan STRATEGY 1.2 Preserve open space and protect environmentally sensitive lands ACTION 1.2.1 Adopt and enforce development regulations that preserve open space and protect environmentally sensitive lands ACTION 1.2.2 Communicate the importance of preserving open space and environmentally sensitive lands to residents, business, and interest groups through public outreach campaigns ACTION 1.2.3 Coordinate and secure funding, either solely or in concert with other public or private entities, to identify and protect environmentally sensitive lands and open space STRATEGY 1.3 Partner with regional jurisdictions to develop and maintain physical infrastructure ACTION 1.3.1 Participate in the Pima Association of Governments (PAG) / Regional Transportation Authority (RTA) Transportation Improvement Program (TIP) process ACTION 1.3.2 Continue to work with federal, state and regional agencies to secure funding for Town projects ACTION 1.3.3 Actively represent the Town's interests in the development of future county bond packages, reporting on and tracking expenditures of existing county bond funds GOAL 2 PROVIDE DIVERSE RECREATIONAL, EDUCATIONAL AND CULTURAL OPPORTUNITIES STRATEGY 2.1 Develop and maintain parks, recreation, library and cultural resource assets ACTION 2.1.1 Initiate development of a parks and recreation Master Plan ACTION 2.1.2 Continue implementation of the Steam Pump Ranch Master Plan ACTION 2.1.3 Utilize volunteers as applicable to provide educational, informational and recreational opportunities STRATEGY 2.2 Coordinate and secure funding, either solely or in concert with other public or private entities ACTION 2.2.1 Renegotiate the Library Intergovernmental Agreement (IGA) with the Pima County Library District to the benefit of the Town ACTION 2.2.2 Seek public and private sources of funding for the acquisition and management of cultural resources STRATEGY 2.3 Support cultural opportunities and events ACTION 2.3.1 Facilitate the development of a Community Center, focused on arts, culture and recreation ACTION 2.3.2 Collaborate with local and regional performing and visual arts groups ACTION 2.3.3 Explore event opportunities with local and national special event coordinators and the Metropolitan Tucson Convention and Visitors Bureau (MTCVB) 2011 - 2012 Annual Budget 22 Introduction Strategic Plan GOAL 3 MAINTAIN A SAFE COMMUNITY WHERE RESIDENTS AND VISITORS FEEL SECURE STRATEGY 3.1 Maintain public -safety citizen and community -involvement and educational programs ACTION 3.1.1 Provide an annual report on the effectiveness of the Citizen Volunteer Assistance Patrol (CVAP) program ACTION 3.1.2 Conduct at least one Citizen Police Academy annually to promote understanding and confidence in the Police Department ACTION 3.1.3 Hold community awareness events such as National Night Out and Investigate OVPD ACTION 3.1.4 Use the Adopt -a -Business Program to promote safety and develop positive business relationships STRATEGY 3.2 Maintain emergency response and business continuity plans ACTION 3.2.1 Integrate the multi -department business continuity plans into a master emergency response plan for the organization in FY 2010/11 ACTION 3.2.2 Partner with regional emergency managers to plan and train for large scale emergencies ACTION 3.2.3 Develop a proposal for implementation of a Town Office of Emergency Management/Homeland Security initiative ACTION 3.2.4 Conduct multiple, annual training opportunities for employees in the discipline of emergency management and incident command systems per federal mandates; orient elected officials to their roles through training sessions and exercises STRATEGY 3.3 Maintain an efficient and effective local criminal justice system ACTION 3.3.1 Ensure that prosecutions are undertaken based upon the underlying merits of the case ACTION 3.3.2 Revisit plea standards annually to ensure that cases may be disposed of within acceptable guidelines ACTION 3.3.3 Maintain the professional integrity and continuing education of prosecutors and staff ACTION 3.3.4 Coordinate with the Magistrate Court and Police Department on code changes and matters that inter -relate with the Prosecutor's office 2011 - 2012 Annual Budget 23 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 (il) main elements. 2011 - 2012 Annual Budget 24 Introduction t Orderly growth that focuses primarily on low-density Land Use development is especially important to the community, as is development that is sensitive to and compatible with the Sonoran Desert environment. The Town should integrate the manmade elements into Community Design 9 the natural environment with great sensitivity and with minimal disruption to existing topographic forms and p 9 ecosystems. Diversification in the local revenue base is desirable; Economic Development however, any new development must be consistent with the community's vision for the future and values. This Cost of Development element articulates the Town's Cost of Development P interest in ensuring that new development does its fair share to perpetuate the high standards that the Town has established since its incorporation. Transportation p Oro Valley's transportation system must provide residents and visitors with safe, convenient and efficient mobility. This element is to provide the Town with development Public Facilities, Services and oversight strategies that ensure orderly, rational Safety development of infrastructure to support projected growth and to address the safety needs of its residents. Efforts should continue to be made to provide a mix of Housing 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 g To preserve the unique archaeological, cultural, and Resources historic resources within Oro Valley to the degree not already regulated by the state of Arizona. This element is intended to identify and address the Open Space and Natural Resources Town's environmental resources in a comprehensive Conservation manner. The protection, restoration, and maintenance of environmental resources require an integrated approach. 2011 - 2012 Annual Budget 24 Introduction t 0 "UNDED A'� Town of Oro Valley Caring for our heritage, our community, our future., 2011 - 2012 Annual Budget 4W 25 2011 - 2012 Annual Budget This Page Intentionally Left Blank 26 �%0&_LEv O 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. Town of Oro Valley Budgetary Funds Governmental Funds General Fund Special Revenue Capital Project Debt Service Funds I Funds I Funds Highway User Naranja Park Municipal Debt Service Bed Tax Police Impact Fee Oracle Rd Debt Service Seizures & Forfeitures Potable Water System Impound Fee Alternative Water Resource Regional Transportation Authority General Government Impact Fee Parks & Recreation Impact Fee Library Impact Fee Roadway Development Impact Fee Proprietary Funds Enterprise Internal Service Funds Funds — Water Utility Fleet Maintenance _ Stormwater Utility 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 and general administration are all 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. 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. 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. 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. Internal Service Funds are funds that account for services provided to other divisions and departments within the Town government. 2011 — 2012 Annual Budget 27 Introduction Fund Structure 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 2011 - 2012 Annual Budget 28 Introduction vE Y gR�2O'L 'JUN DED A`-" Town of Oro Valley Caring for our heritage, our community, our future. 2011 - 2012 Annual Budget 4r 29 2011 - 2012 Annual Budget This Page Intentionally Left Blank 30 • .4p&LEY _ 1% • Eo, Financial and BudgetaryPolicies 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. 2011-2012 Annual Budget 31 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 3otn 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 fundis a fiscal and accounting entity with a self -balancing set of accounts recording cash and other financial resources). Introduction 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 parry 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). • • • Financial and Budgetary Policies 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. 2011-2012 Annual Budget I Introduction 32 Financial and Budgetary Policies The Town will maintain a diversified and stable Future bond issue proposals will be revenue base to protect against short term accompanied by an analysis showing how the fluctuations in any single revenue source and new issue, combined with current debt, economic changes locally and nationally. impacts the Town's debt capacity and conformance with Town debt policies. The Town will estimate revenues in a realistic and moderate manner in order to minimize the risk of The general policy of the Town is to fund a revenue shortfall. capital projects with new, dedicated streams of revenue or voter -approved debt. Non B.2 Fees and Charges voter -approved debt may be utilized when a All non -enterprise user fees and charges shall be dedicated revenue source other than general examined annually to determine the cost recovery revenue can be identified to pay debt service rate. The acceptable recovery rate and any expenditures. associated changes to user fees and charges will be approved by Town Council or as otherwise Financing shall not exceed the useful life of specified in Town code. the acquired asset. Development impact fees for capital expenses The Town shall not use long term debt to attributable to new development will be reviewed finance current operations. periodically to ensure the fees recover all direct and indirect development related expenses and be The Town will establish debt repayment approved by Town Council. schedules with fixed annual principal and interest payments. For enterprise fund operations, the Town will establish rates and fees at levels to cover fully the Proceeds from bonded debt will be used in total direct and indirect costs, including accordance with the purpose of the issuance. operations, capital outlay, debt service, debt Funds remaining after the project is coverage requirements and unrestricted cash completed will be used in accordance with the reserve balances. Enterprise funds will not be provisions stated in the bond ordinance that used to subsidize the operations of other funds. authorized the issuance of the debt. Interfund charges will be assessed for the administrative support of the enterprise activity. The Town shall comply with the Internal Revenue Service arbitrage rebate B.3 Use of One—Time Revenues requirements for bonded indebtedness. The Town will utilize one-time (non-recurring) revenues to fund one-time operating Interest earnings on bond proceeds will be expenditures, prepay existing debt, or supplement limited to 1) funding or acquiring the "pay as you go" capital outlay. One-time improvement(s) or asset(s) or 2) payment of revenues shall not be used to fund recurring debt service on the bonds. expenditures. All projects funded with bonded debt must be B.4 Use of Unpredictable Revenues included in the Town's Capital Improvement If the Town should receive unpredictable revenues Program. from sales tax audits, unbudgeted grant funding, gifts or donations, the Town shall account for When considering refunding any outstanding these revenues as one-time revenues. They shall bonded debt, the Town will perform a cost not be used to fund recurring expenditures. benefit analysis to determine if the cost savings of refunding will be greater than the C. Expenditure Policies cost to refund. Considerations will be made with regard to the existing bond covenants C.1 Debt Capacity, Issuance & Management when refunding any bonded debt. 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. 2011-2012 Annual Budget Introduction 33 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. Financial and Budgetary Policies 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 2011-2012 Annual Budget I Introduction 34 M _A 0` X0 q�X4 • A� F NDEn 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 2011-2012 Annual Budget 35 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, Introduction • • • Financial and Budgetary Policies capital outlay and debt service) the following An annual audit of the Town's financial budget amendment and transfer provisions statements will be performed by an shall apply: independent certified public accounting firm, with an audit opinion to be included with the A. Transfers between funds shall require Town's published Comprehensive Annual the recommendation of the Town Financial Report (CAFR). Manager and formal action by the Town Council. The Town's CAFR will be submitted to the GFOA Certification of Achievement for B. Transfers between the line items within Excellence in Financial Reporting Program. each major expenditure category shall be The financial report should be in conformity permitted upon recommendation of the with GAAP, demonstrate compliance with Department Head and approval by the finance related legal and contractual Town Manager. provisions, disclose thoroughness and detail sufficiency, and minimize ambiguities and C. Transfers between the line items or potentials for misleading inference. major expenditure categories to fund additional personnel or increased The Town's budget will be submitted annually expenditures as a result of personnel to the GFOA Distinguished Budget reclassifications shall require the Presentation Program. The budget should recommendation of the Town Manager satisfy criteria as a financial and and formal action by the Town Council. programmatic policy document, as a comprehensive financial plan, as an D. Transfers between the operations and operations guide for all organizational units maintenance and capital outlay major and as a communications device for all expenditure categories shall be permitted significant budgetary issues, trends and upon recommendation of the Department resource choices. Head and approval by the Town Manager. Financial systems will maintain internal controls to monitor revenues, expenditures E. Transfers that would reduce or eliminate and program performance on an ongoing funding for items designated in the basis. 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). 2011-2012 Annual Budget Introduction so C V.EY qAM. (JNDEDA91� 7 Town of Oro Valley Caring for our heritage, our community, our fu ture, 2011 - 2012 Annual Budget 4W 37 2011 - 2012 Annual Budget This Page Intentionally Left Blank 38 4 %A/DED,�g'1 Budget Process Overview The budget process begins with a review of the current financial condition of the Town and a discussion on varying, high-level projections for the upcoming fiscal year which are presented to Council for consideration and approval. The following factors played a key role in the FY 2011/2012 budget development process: Precipitous declines in local development activity over the past three years Further decreases in state shared revenues due to the economic downturn r Town's heavy reliance on volatile revenue sources and revenue diversification 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. Sluggish economic activity continues to place enormous pressure on the need to control costs and obtain greater operating efficiencies. In preparing their budgets, departments were instructed to "hold the line" wherever possible while attempting to minimize service impacts to Town residents. In addition, meeting for the second year in a row was the Employee Budget Focus Team - a multi -faceted, cross -functional team of approximately 15 employees who voluntarily met several times to brainstorm on cost savings and new revenue generation. A comprehensive list of ideas was compiled and presented to Town management and Council during the budget process. Budget Review Once departments have submitted their budget requests for personnel, 0&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 (5) year financial picture. The financial sustainability plan contains recommendations for sustaining the economic future of Oro Valley. 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 is delivered to the Council along with an overview of the Town's five year (5) 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 18, 2011. 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 June 15, 2011. 2011 - 2012 Annual Budget 39 Introduction o_4p,.LEY,42�0 o�` N CEO • • • 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 (4) years. The FY 2011/2012 expenditure limit for Oro Valley is $94,219,647. 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. 2011 - 2012 Annual Budget Introduction 40 April 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19"-<`' 21 22 23 24 25 26 27 28 29 30 S M T W Th F S January MAY E®® 23 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 30 24 31 25 26 27 28 April 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19"-<`' 21 22 23 24 25 26 27 28 29 30 S M T W Th F S 1 MAY E®® 23 9 10 11 24 ME MEMEMEN April 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19"-<`' 21 22 23 24 25 26 27 28 29 30 June Au ust 1 MAY 5 6 7 8 9 10 11 1 23 19 20 211 22 23 24 25 4 5 6 7 8 9 10 4 12 13 14 15 16 17 10 19 20 21 22 23 24 25 26 27 28 29 30 31 21 22 23 June Au ust 1 2 3 4 5 6 7 8 9 10 11 12 13 14 16 17 18 19 20 211 22 23 24 25 26 27 28 29 30 2011 — 2012 Annual Budget 2011 Budget Calendar January 29 Council Budget Retreat Update Council on mid -year financial status February 11 Departments begin compiling requested budget for operations & maintenance and capital expenditures 23 Council Budget Work Session 24 Employee Budget Focus Team recommendations presented to Town ma nagement/d i rectors March 9 Council Budget Work Session 18 Departments submit operations & maintenance and capital expenditure requests to Finance 21-25 Finance reviews and analyzes department budget requests 23 Council Budget Work Session 28-31 Town Manager meets with department directors and Finance to review the proposed budget April 4 Finance begins preparing Town Manager recommended budget 20 Town Manager Recommended Budget delivered to Council May 11 Council Budget Work Session 18 Adoption of Tentative Budget and CIP June 15 Adoption of Final Budget and CIP 41 Budget Calendar mbar Au ust 1 Jul 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 31 25 26 27 28 29 30 mbar Au ust 1 1 2 3 4 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 17 mbar 1 2 3 4 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 November 1 2 3 4 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 December October 2 3 4 5 6 7 8 9 10 11 12 13 14 15 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 30 241 31 25 26 27 28 29 November 1 2 3 4 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 December 1 2 3 4 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 Introduction F,rv)WR�:Io Ovuvteki) 2011 - 2012 Annual Budget This Page Intentionally Left Blank 42 .r�r ED Budget Overview The budget for FY 2011/2012 totals $94.2 million, which includes a $46.6 million operating budget and $15.5 million for capital projects, and represents a 19% decrease over the previous fiscal year budget of $116.2 million. As with the FY 2010/11 budget, the state of the economy was a dominating factor during the budget process. Several steps have been taken over the last few years to reduce operating costs, including department consolidations and early payoff of debt. A hiring freeze was adopted by Council in November 2008. A voluntary severance plan was also offered to employees in the spring of 2009. Positions continue to be left unfilled or have been eliminated as vacancies occur. The capital budget for the Town decreased nearly 50% from FY 2010/11; this is attributable to numerous project completions, as well as a revision in capacity for the widening of Lambert Lane. A more detailed discussion on the changes to each category of the Town's budget can be found in the Expenditure Summary section of this document. Comprehensive Budget Overview $50.0 ❑ FY 2011 Budget ■ FY 2012 Budget $45.0 $40.0 1. 49.1% $35.0 111.2% $30.0 2 $25.0 31.8 35.0% � $20.0 24.7 � t 4.0% $15.0 $3 13. 10.0 12. ' $5.0 $0.0 -- - ----- Personnel O&M Capital Debt Service Revenues Budgeted revenue for FY 2011-12 totals $56.5 million and represents a 23.6% decrease from FY 10/11. 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. Water Sales 21% Interest Income 1% In FY 2012, the Town has Im pact Fe 200 budgeted revenue from Sales Taxes, which is a major funding source (23% of the total), State Shared Revenues (19% of total), and Water Sales (21% of total). Revenue from Outside Funding Sources (22% of total) includes $10.6 million in state and federal grant proceeds. Outside Funding C'ni irnnn 2011 - 2012 Annual Budget Financial Overview 43 o JPlnLE,zo 04 2,y, r �r t FY 2010 FY 2010/11 247359,433 Budget Overview Budget Projected Personnel 24,674,902 24,658,051 24,051,381 O&M 12,059,322 12,2377176 Revenue Sources 5,309,640 31,822,612 1319717841 Debt Service FY 2010 FY 2010/11 FY 2011/12 Variance F$-52,544,545 $ 82,307,831 Actual Budget Projected Budget to Budget % Sales Taxes 13,480,152 13,956,007 129416,834 1308,342 (287,665) -2.1% Charges for Services 47077,977 4,634,745 412351369 5,376,822 742,077 16.0% State Shared Revenue 12,234,634 1110301182 11,030,182 10,563,728 (466,454) -4.2% Fines, Licenses & Permits 113101555 1,521,702 1,103,342 1,358,894 (162,808) -10.7% Miscellaneous 371,926 176,186 242,991 167,500 (8,686) -4.9% Impact Fees 1,353,693 1,478,687 868,214 1,008,966 (469,721) -31.8% Interest Income 539,185 689,982 4417326 439,810 (250,172) -36.3% Water Sales 12,071,031 11,689,300 11,6821799 11,682,799 (6,501) -0.1% Outside Funding Sources 3,379,270 28,819,925 14,515,060 12,255,970 (161563,955) -57.5% Total Revenue $ 48,818,423 $ 73,996,716 $ 56,536,117 $ 56,522,831 $ (179473,885) -23.6% Does not include interfund transfers or carry -forward fund balances Expenditures Budgeted expenditures for FY 2011-12 total $62.1 million and represents a Debt Service 24.5% decrease over FY 14% 10/11. The budget includes $46.6 million to support daily operations and services and $15.5 million in capital projects to fund roadway expansions and improvements, as well as stormwater and water infrastructure improvements. cMr~ Further detail on uses of 26% Personnel 4n°1n \ O&M expenditures and types can be found further in the Financial Overview section of the budget document. Budgeted Uses Does not include depreciation, amortization, interfund transfers or contingency amounts 2011 — 2012 Annual Budget 44 FY 2011/12 1 Variance Budget FY 2010 FY 2010/11 247359,433 Actual Budget Projected Personnel 24,674,902 24,658,051 24,051,381 O&M 12,059,322 12,2377176 10,892,225 Capital 5,309,640 31,822,612 1319717841 Debt Service 10,500,681 13,589,992 13,059,607 Total Expenditures F$-52,544,545 $ 82,307,831 $ 61,975,054 1 $ Does not include depreciation, amortization, interfund transfers or contingency amounts 2011 — 2012 Annual Budget 44 FY 2011/12 1 Variance Budget to Budget % 247359,433 (298,618) -1.2% 12,724,940 487,764 4.0% 16,187,247 (15,635,365) -49.1% 8,835,306 4,754,686) -35.0% 62,1069926 1 $ (207200,905) -24.5% Financial Overview • 40 Q�pLLEY 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 revenues shall be sufficient to support recurring operating expenditures with no use of General Fund contingency to support ongoing operational expenses." FY 2012 General Fund Expenditures and Revenue ficit 3.2) $20.0 $22.0 $24.0 $26.0 $28.0 $M Revenues $ 26,133,944 Expenditures 26,313,944 (Deficit)/Surplus $ ( 180,000) The negative difference of $0.2 million between revenues and total expenditures in the General Fund for FY 2011/12 is attributed to one-time expenditures. A detailed listing of one-time expenditures and their uses can be found in the Expenditure Summary section of the budget docu ment. 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. 2011 — 2012 Annual Budget 45 Expenditures $26,313,944 Contingency Requirement 25% Required Contingency $ 61578,486 The budgeted contingency reserve for FY 2011/12 is $9,381,226 in the General Fund and is equal to 36% of expenditures. Financial Overview 2011 - 2012 Annual Budget This Page Intentionally Left Blank 46 �4vp►�IEY q�,Q O '�y �► •► ► N Fund Balances (1) Special (2) (3) Capital (4) Internal (5 General Revenue Enterprise Projects Service Debt Service Fund Funds Funds Funds Fund Funds Revenues and Other Sources 2011-2012 Total $ General Government Taxes $ 12,401,316 $ 1,267,026 $ - $ - $ - $ - Licenses and Permits 1,126,894 42,000 - - - - Fines 190,000 - - - - - Water Sales - - 11,682,799 - - - Charges for Services 1,237,851 65,000 1,196,200 2,441,500 436,271 - State Shared Revenue 8,187,264 2,376,464 - - - - Intergovernmental 591,160 - - - - - Grants 1,094,033 487,000 955,000 7,993,000 - 85,777 Seizures & Forfeitures - 350,000 - - - - Impact Fees - - - 1,008,966 - - Interest Income 22,000 16,300 16,800 20,007 - 364,703 Miscellaneous 157,500 10,000 - - - - Other Financing Sources 1,125,926 - 800,000 400,000 - 228,647 Total $ 26,133,944 $ 4,613,790 $ 14,650,799 $ 11,863,473 $ 436,271 $ 679,127 Expenditures and Other Uses 2011-2012 Total $ General Government 1,168,894 190,000 Clerk $ 456,089 $ - $ - $ - $ - $ - Council 220,573 - - - - - Finance 722,199 - - - - - General Administration 2,141,767 - - - - - Human Resources 482,649 - - - - - Information Technology 1,252,797 - - - - - Legal 841,832 - - - - - Magistrate Court 781,625 - - - - - Manager 877,167 235,981 - - - - Debt Service - - - - - 995,824 Police 12,096,513 45,987 - - - - Dev. & Infrastructure Svcs. 3,340,679 4,093,277 1,756,223 50,000 436,271 - Parks and Recreation 1,633,911 - - - - - Library Services 1,115,815 - - - - - Cultural Resources 126,976 - - - - - Water Utility - - 11,083,914 3,899,673 - - Water Utility Fund Debt Service Principal 1,310,654 Interest 1,495,063 Roadway Improvements - - - 10,613,467 - - Other Financing Uses 223,352 1,525,926 5,295 100,000 - - Total $ 26,313,944 $ 5,901,171 $ 15,651,149 $ 14,6631140 $ 436,271 $ 995,824 Increase/(Decrease) (180,000) (1,287,381) (1,000,350) (2,799,667) - (316,697 Beginning Fund Balance * $ 9,561,226 $ 4,952,261 $ 10,473,958 $ 11,132,229 $ - $ 1,577,142 Ending Fund Balance * $ 9,381,226 $ 3,664,880 $ 9,473,608 $ 8,332,562 $ - $ 1,260,445 This table depicts the estimated beginning fund balance at July 1, 2011, the budgeted revenues and expenditures for FY 2011/12 and the projected ending fund balance at June 30, 2012. (1) The General Fund is being brought down by $180,000 which will be used to fund replacement of technology -related equipment. This is due to the closing of the Capital Asset Replacement Fund and the transfer of fund balance into the General Fund. (2) Special Revenue Funds are being brought down by $1,287,381 which will be used to fund roadway surface treatments as well as subsidize transit operations in the General Fund. (3) Enterprise Funds are being brought down by $1,000,350 which will be used to fund capital projects. 10, (4) Capital Projects Funds are being brought down by $2,799,667 which will be used to fund water infrastructure improvement projects, roadway improvement projects, and Water Utility debt service. (5) Debt Service Funds are being brought down by $316,697 which will be used to fund debt service payments. * Does not include amounts set aside for compensated absences and unemployment compensation claims 2011-2012 Annual Budget 47 Financial Overview 2011-2012 Total $ 13,668,342 1,168,894 190,000 11,682,799 5,376,822 10,563,728 591,160 10,614,810 350,000 1,008,966 439,810 167,500 2,554,573 $ 58,377,404 $ 456,089 220,573 722,199 2,141,767 482,649 1,252,797 841,832 781,625 1,113,148 995,824 12,142, 500 9,676,450 1,633,911 1,115,815 126,976 14,983,587 1,310,654 1,495,063 10,613,467 1,854,573 $ 63,961,499 (5,584,095) $ 37,696,816 $ 32,112,721 (1) The General Fund is being brought down by $180,000 which will be used to fund replacement of technology -related equipment. This is due to the closing of the Capital Asset Replacement Fund and the transfer of fund balance into the General Fund. (2) Special Revenue Funds are being brought down by $1,287,381 which will be used to fund roadway surface treatments as well as subsidize transit operations in the General Fund. (3) Enterprise Funds are being brought down by $1,000,350 which will be used to fund capital projects. 10, (4) Capital Projects Funds are being brought down by $2,799,667 which will be used to fund water infrastructure improvement projects, roadway improvement projects, and Water Utility debt service. (5) Debt Service Funds are being brought down by $316,697 which will be used to fund debt service payments. * Does not include amounts set aside for compensated absences and unemployment compensation claims 2011-2012 Annual Budget 47 Financial Overview Jpj„lEy,q�� • �Qo Ory � r •L � Budget Summary FY 2009 FY 2010 FY 2011 FY 2012 Actual Bud et Projected Budget Personnel General Fund 281.74 262.05 261.47 252.12 266.22 Special Revenue Funds 44.02 38.78 36.94 39.31 29.30 Capital Project Funds - - - - - Enterprise Funds 38.80 38.00 39.50 37.50 39.50 Internal Service Fund - 2.37 2.35 2.35 1.35 ITOTALPERSONNEL 364.56 341.20 340.26 331.28 336.37 Expenditures by Fund ) General Fund 27,088,216 Special Revenue Funds 6,810,351 Debt Service Funds 11685,701 Capital Project Funds 10,598,765 Enterprise Funds 13,624,680 25,096,341 25,571,287 24,313,167 2610901592 41399,131 4,717,591 4,766,823 41375,245 7,838,118 837,562 871,438 995,824 3,750,483 32,655,947 17,707,976 14,563,140 10,588,804 171650,476 13,440,682 15,645,854 Internal Service Fund - 871f668 874 968 874 968 436 271 TOTAL EXPENDITURES 59 807 713 52,544,545 82,307,831 61 975 054 62,106,926 Expenditures by Category 1 ) Personnel 261143,561 241674,902 24,658,051 24,051,381 24,3591433 Operations & Maintenance 13,739,155 12,059,322 12,2371176 10,892,225 12,724,940 Capital Outlay 1511811405 5,309,640 31,8221612 13,971,841 1611871247 Debt Service 41743,592 10 500 681 13 589 992 131059,607 81835,306 [TOTAL EXPENDITURES 59,807,713 52,544,545 82,307,831 61,975,054 62,106f926 Operating Results Total Revenues 551058,913 48,818,423 73,996,716 561536,117 561522,831 Total Expenditures 1) 59 807 713 52,544,f545 821307,831 .6119751054 62 106 926 NET OPERATING RESULTS 3) (41748,800) 3 726 122 8 311 115(5,438,937)5 584095 1) Excludes depreciation, amortization, contingency amounts and interfund transfers 2) 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 2011-2012 Annual Budget Financial Overview 48 O�P��EY qR��O 'UNDED A"J-' Town of Oro Valley Caring for our heritage, our community, our future. 2011 - 2012 Annual Budget W 49 2011 - 2012 Annual Budget This Page Intentionally Left Blank 50 • • • Revenue Summary Revenue for FY 2011-12 is estimated to total $56,522,831. In comparison to the FY 2010-11 budget, revenue is projected to decrease 23.6%. Compiling revenue estimates in an uncertain fiscal climate is a difficult task. The prolonged economic challenges at the local, state and national level have ruled out the use of conventional methods of revenue forecasting. Prior to the economic downturn, revenue estimates were based on historical data, economic indicators, and information received from State reports and other sources. With the uncertainty of the State's budget and the duration of current fiscal conditions, these methods are not acceptable. Estimates compiled by the Finance Department involve an analysis of each major revenue source, including its susceptibility to economic factors, its performance during the current downturn, and the drivers behind the source. Local sales tax represents a significant source of the Town's budgeted revenue at 23% of total revenue. In this category, taxes related to retail trade are now the biggest contributor. In previous years, taxes related to construction activity were the greatest component. Prior to the economic downturn, the Town relied on the expertise of a forecaster in the homebuilder industry to project revenue related to residential construction activity. For FY 2011-12, revenue was projected assuming limited development and activity patterns similar to what is currently being observed. Commercial and residential activity is down significantly from previous years, with many projects having been put on hold, delayed, or canceled. 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 2012 budget is forecasted to see an addition of 183K+ square feet of commercial building in the form of office space, retail, restaurants and a retirement center. 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 2011/12 Budgeted Revenue Sources Outside Funding Sources 22% Water Sales 21% Interest Income 1% Impact FE 2% 2011 — 2012 Annual Budget Permits State Shared Revenue 2% 19% 51 Sales Taxes 23% Charges for Services 10% Financial Overview Revenue Sources Revenue Summary 2011 — 2012 Annual Budget Financial Overview 52 FY 2010 FY 2010/11 FY 2011/12 Variance 0 $1.3M increase (95%) in utility sales taxes due to Council -adopted Actual Budget Projected Budget to Budget % Sales Taxes 13,480,152 13,956,007 12,416,834 13,668,342 (287,665) -2.1% Charges for Services 4,077,977 4,634,745 4,235,369 5,376,822 742,077 16.0% State Shared Revenue 12,234,634 11,030,182 11,030,182 10,563,728 (466,454) -4.2% Fines, Licenses & Permits 1,310,555 1,521,702 1,103,342 1,358,894 (162,808) -10.7% Miscellaneous 371,926 176,186 242,991 167,500 (8,686) -4.9% Impact Fees 1,353,693 1,478,687 868,214 1,008,966 (469,721) -31.8% Interest Income 539,185 689,982 441,326 439,810 (250,172) -36.3% Water Sales 12,071,031 11,689,300 11,682,799 11,682,799 (6,501) -0.1% Outside Funding Sources 3,379,270 28,819,925 14,515,060 12,255,970 (16,563,955) -57.5% Total Revenue $ 48,818,423 $ 73,996,716 $ 56,536,117 $ 56,522,831 $ (17,473,885) -23.6% Does not include interfund transfers or carry -forward fund balances A brief description of the changes in revenue sources from budget year to budget year is as follows: 2011 — 2012 Annual Budget Financial Overview 52 • $1.6M decrease (42%) in construction taxes due to reduced Sales Taxes commercial and residential building activity $(288K) 0 $1.3M increase (95%) in utility sales taxes due to Council -adopted rate increase from 2% to 4% • $436K for fleet maintenance charges (previously budgeted as Charges for Services transfers) $742K 0 $320K for administrative charges to Enterprise Funds for General Fund support • $373K decrease (10%) in State Income Tax State Shared Revenue 0 $293K decrease (11%) in Highway User (Gasoline Tax) revenues $(466K) 0 $147K increase (5%) in State Sales Tax • $53K increase 3% in Vehicle License Tax Fines, Licenses &Permits $105K decrease in residential building permit revenues $(163K) 41K decrease in commercial building permit revenues Impact Fees $470K decrease due to reduction in budgeted single family $ 470K residential building permits for FY 2011/12 from 75 to 35 Interest Income $250K decrease due to the decline of the interest rate in the Local $ 250K Government Investment Pool • $lOM decrease in bond proceeds for the widening of Lambert Lane • $2.5M decrease in bond proceeds for Clean Renewable Energy Bonds (project complete) • $1.1M decrease in Water Infrastructure Finance Authority loan proceeds Outside Funding Sources $1.1M decrease in federal grant proceeds for Stormwater Utility $(16.6M) projects and Steam Pump Ranch • $1.1M decrease in budgeted reimbursements from Pima Association of Governments for roadway projects • $470K decrease in reimbursements from the Regional Transportation Authority for roadway projects • $275K decrease in county bond proceeds for Steam Pump Ranch (project phase complete) 2011 — 2012 Annual Budget Financial Overview 52 • Revenue Schedule by Fund FY 2009 1 FY 2010 FY 2011 FY 2012 Major Revenue Accounts Actual Budget Projected Budget to Budget General Fund Local Sales Tax: Local Sales Tax 12,2841727 11,255,150 12,364,250 11,166,458 11,801,316 -4.6% Sales Tax Audit Recoveries 178,014 788,434 200,000 100,000 100,000 -50.0% Cable Franchise Fees 506 685 509 285 500 000 500 000 500 000 0.0% Total Local Sales Tax 12 969 426 12 552 870 13 064 250 11 766 458 121401131 -5.1% License & Permit Fees: Business Licenses & Permits 171,335 170,260 165,310 165,310 170,698 3.3% Residential Building Permits 566583 5051226 457,500 354,095 352,697 -22.9% Commercial Building Permits 684,269 331510 601,772 278,853 560,499 -6.9% Sign Permits 45,450 36,630 40,658 34,389 33,000 -18.8% Special Inspection Fees 5,280 3,940 4,080 31313 3,000 -26.5% Grading Permit Fees 9 817 7 704 7 190 7 190 7/000 -2.6% Total License & Permit Fees 1 482 734 1 055 270 1 276 510 843 150 1 126 894 -11.7% Federal Grants: CNA 112,133 106,572 117591 117,591 122,500 4.2% DEA OT Reimbursement 23,066 36,568 33,807 33,807 33,807 0.0% Miscellaneous Federal Grants 91849 11,824 174,200 174,200 155,000 -11.0% HIDTA 98,881 106,721 1161333 116,333 116,333 0.0% HIDTA-DEA 861023 80,197 901276 90,276 90,276 0.0% GOHS 27,444 78,351 1501216 1501216 143,917 -4.2% Homeland Security - 1,900 185,566 116,283 1341700 -27.4% Joint Terrorism Task Force 11 342 12 657 13 250 13,250 9,000 -32.1% Total Federal Grants 368 738 434/789 881 239 811/956 805 533 -8.6% State Grants: Safe Schools Grant 521723 60,000 60,000 601000 60,000 0.0% Misc State Grants 99,458 133,868 751700 160,543 223,500 195.2% The 100 Club of Arizona 4 790 1 295 10 000 10 000 5 000 -50.0% Total State Grants 156 971 195/163 145 700 230 543 288 500 98.0% State/County Shared: State Income 5,886,132 510861954 31834,336 318341336 31461502 -9.7% State Sales 31134,789 2,891,386 21955,878 2,955,878 3,102,745 5.0% Vehicle License Tax 1 655 875 1 484 125 1 570 201 1 570 201 1 623 017 3.4% Total State/County Shared 10 676 796 9 462 464 8 360 415 81360,415 8 187 264 Other Intergovernmental: JDK Park Contributions 30,000 30,000 30,000 30,000 30,000 0.0% PCLD Reimbursements 626 262 603f450 577 781 570 281 561 160 -2.9% Total Other Intergovernmental 656 262 633 450 607f781 600 281 591 160 Charges for Services: Court Costs 233,961 165,537 235,000 222,000 230,000 -2.1% Public Defender Fees 7,446 7,260 6,300 4,000 4,000 -36.5% Recording Fees 415 128 300 300 - -100.0% Zoning & Subdivision Fees 132,945 87,629 105,700 67,571 50,000 -52.7% User Fees - Swimming Pool 77,757 119,273 113,000 113,000 113,000 0.0% User Fees - Electricity 20,673 41,485 59,000 59,000 - -100.0% User Fees - Miscellaneous 221,390 185,642 150,000 142,000 209,750 39.8% Recreation In Lieu Fees 33,100 - 30,000 - - -100.0% Copy Services 5,233 3,698 31500 4,990 4,000 14.3% Town Hall Usage Fees 3,309 4,036 4,526 2,796 2,000 -55.8% General Government Other 821 1,028 1,210 1,835 1,210 0.0% Police Report Copying 20512 20,354 18,150 27,884 20,000 10.2% Police Other 6,957 8,431 8,000 8,000 8,000 0.0% Building Inspection Copying - 59 94 94 - -100.0% Engineer Plan Review Fees 39,053 72,620 68,720 33,270 33,000 -52.0% Grading Review Fees 1,674 740 507 531 500 -1.4% Grading Inspection Fees 1,280 560 600 1,075 700 16.7% Fare Box - - - - 39,500 0.0% Administrative Services - - - - 321,000 0.0% Financial Services 1221771 113,591 135538 135,538 135,591 0.0% Real Property Rental Income 81,200 81,200 81,200 69,500 65,600 -19.2% Maps 313 237 175 175 - -100.0% Code Book Sales 372 131 195 195 - -100.0% 2011-2012 Annual Budget 53 Financial Overview Revenue Schedule by Fund FY 2009 FY 2010 FY 2011 FY 2012 % Major Revenue Accounts Actual Budget Projected Budget to Budget Impound Processing 55 810 - - - - 0.0% [Total Charges for Services 1 066 992 913 638 11021,715 893 754 11237,851 21.27% Fines: Fines 285 628 202 144 195 000 210 000 190,000 -2.6% Total Fines 285 628 202 144 195 000 210f000 190 000 -2.6% Interest Income: Interest - Investments 226 271 61 501 151 374 21/333 22 000 -85.5% Total Interest Income 226 271 61 501 151 374 21f333 22 000 -85.5% Miscellaneous: Donations 1,000 59 Miscellaneous 15,016 10,749 Insurance Recoveries 19,674 20,584 In -Lieu Income 119,975 110,695 Sale of Assets 17,142 11009 Capital Lease Proceeds 21 859 40 516 - 25,000 20,000 100,000 - - - 11565 65,000 100,000 15,060 - - 15,000 20,000 100,000 22,500 - 0.0% -40.0% 0.0% 0.0% 0.0% 0.0% Total Miscellaneous 194f666 183,611 145 000 191f625 157 500 8.6% TOTAL GENERAL FUND 28,084 484 25,694,900 25,848,984 23,929,515 25,008,018 -3.3% Highway Fund Local Sales Tax: Construction Sales Tax 1 928 546 801 570 630 188 398 807 367 400 -41.7% Total Local Sales Tax 1 928 546 801 570 630 188 398 807 367 400 License & Permit Fees: Road Permits 24,810 52,756 Floodplain Use Permits 385 385 49,192 1 000 49,192 1 000 42,000 - -14.6% -100.0% Total License & Permit Fees 25 195 53 141 50J92 50 192 42 000 Charges for Services: Administrative Services - - - - 15 000 0.0% Total Charges for Services - - - - 15 000 0.0% State Grants: PAG Reimbursements 77,274 159,618 RTA Reimbursements 37 555 59 038 317,000 - 145,689 - 487,000 - 53.6% 0.0% Total State Grants 114 829 218 657 317 000 145 689 487 000 100.0% State/County Shared: Highway User 2 855 668 2 667,797 21669f 767 2 669 767 2 376 464 -11.0% Total State/County Shared 2F855/668 2 667 797 21669f 767 2 669 767 2 376 464 -11.0% Interest Income: Interest - Investments 65f479 15f681 53 205 10 679 10 700 -79.9% Total Interest Income 65f479 15f681 53,205 10 679 10f700 Miscellaneous: Miscellaneous 9,520 9,326 Insurance Recoveries 2 084 5 152 10,193 2f493 12,499 2 493 10,000 - -1.9% -100.0% Total Miscellaneous 11 604 14 478 12 686 14 992 10 000 -21.2% TOTAL HIGHWAY FUND 5 001 321 31,771,324 3 733038 31290,F126 3 308 564 -11.40/o Seizures & Forfeitures Funds Interest Income: Interest - Investments 7 276 5 900 6 400 3 800 3 800 -40.6% Total Interest Income 7 276 5f 900 6 400 3 800 3 800 Miscellaneous: Forfeitures 72 282 354 677 350 000 350 000 350 000 0.0% Total Miscellaneous 72 282 354f677 350 000 350 000 350 000 0.0% TOTAL SEIZURES & FORFEITURES FUNDS 79,r558 360,578 1 356,400 353 800 1 353,r800 -0.7% 2011-2012 Annual Budget Financial Overview 54 1� h/ Revenue Schedule by Fund FY 2009 FY 2010 FY 2011 FY 2012 % Major Revenue Accounts Actual Budget Projected Budget to Budget Bed Tax Fund Local Sales Tax: Local Sales Tax 985 122 125 711 261 569 251 569 899 626 243.9% Total Local Sales Tax 9851122- 125,711 261 569 251 569 899 626 243.9% Interest Income: Interest - Investments 14 561 5 777 9 000 1 808 1 800 -80.0% Total Interest Income 14 561 5 777 9 000 1f808 1/800 -80.0% TOTAL BED TAX FUND 999,683 131,489 270f 569 253,377 901,426 233.2% Regional Transportation Authority (RTA) Fund State Grants: RTA Reimbursements - - 50 000 1f725 50,000 0.0% Total State Grants - - 50 000 1 725 50 000 0.0% TOTAL RTA FUND - - 50,000 1 725 50"000 0.00/0 Public Transportation Fund Federal Grants: Miscellaneous Grants 60 000 - - - - 0.0% Total Federal Grants 60 000 - - - - 0.0% State Grants: PAG Reimbursements 76,590 59,983 RTA Reimbursements 851f396 59 162 - - 34,944 74 762 - - 0.0% 0.0% Total State Grants 927 986 119 145 - 109 706 - 0.0% State/County Shared: LTAF 179f933 104 373 - - - 0.0% Total State/County Shared 179/933 104/373 - - - 0.0% Charges for Services: Fare Box 55 194 51 817 34 545 50 400 - -100.0% Total Charges for Services 55J94 51 817 34 545 50/400 - -100.0% Interest Income: Interest - Investments 1 716 1 208 1 800 164 - -100.0% Total Interest Income 1 716 1 208 1 800 164 - -100.0% Miscellaneous: Miscellaneous 450 1 Sale of Assets 9 405 - - 18 500 634 - - - 0.0% -100.0% Total Miscellaneous 9 855 1 18,500 634 - -100.0% TOTAL PUBLIC TRANSPORTATION FUND 11234,684 276 544 54,845 160,904 - -100.00/0 Fleet Maintenance Fund Miscellaneous: Insurance Recoveries - 61219 Sale of Assets - 1 290 - - - - - - 0.0% 0.0% Total Miscellaneous - 7 509 - - - 0.0% Charges for Services: Fleet Maintenance - - - - 436,271 0.0% Total Charges for Services - - - - 436 271 0.0% TOTAL FLEET MAINTENANCE FUND - 7,509 - - 436 271 0.0% 2011-2012 Annual Budget Financial Overview 55 Revenue Schedule by Fund FY 2009 1 FY 2010 FY 2011 FY 2012 % Major Revenue Accounts Actual Budget Projected Budget to Budget Impound Fee Fund Charges for Services: Impound Fees - 55,210 60 000 50 000 50,000 -16.7% Total Charges for Services - 55 210 60/000 50/000 50 000 -16.7% TOTAL IMPOUND FEE FUND - 55,210 60 000 50,000 50,000 -16.7% Municipal Debt Service Fund Interest Income: Interest 1 200 106 - 383 - 0.0% Total Interest Income 1 200 106 - 383 - 0.0% Federal Grants: Miscellaneous Grants - - 15 605 15 605 85,777 449.7% Total Federal Grants - - 15 605 15 605 85,777 449.7% TOTAL MUNICIPAL DEBT SERVICE FUND 1 200 106 15,605 15 988 85,777 449.70/o Oracle Road Debt Service Fund Interest Income: Special Assessments 162,320 152,483 Penalties 2 298 2 340 1411203 - 141,203 - 1291703 - -8.1% 0.0% Total Interest Income 164 618 154 823 141f203 141 203 129 703 Principal Repayments: Principal Repayments 202 921 213,327 225 000 225 000 235 000 4.4% Total Principal Repayments 202,921 213 327 225 000 225 000 235 000 4.4% TOTAL ORACLE RD DEBT SERVICE FUND 367,f539 368,151 366,203 366,203 364,703 -0.4% Townwide Roadway Development Impact Fee Fund Federal Grants: Miscellaneous Grants - - 500 000 500 000 0.0% - Total Federal Grants - - 500 000 - 500 000 0.0% State Grants: PAG Reimbursements/HELP Loans 742,547 1,178,458 RTA Reimbursements 855 459 17 626 7,260,000 1 714 000 7,260,000 441 000 6,2001000 1 243 000 -14.6% 0.0% Total State Grants 1 598 006 1 196,084 8 974 000 7 701 000 7 443 000 -17.1% Other Intergovernmental: Pima County Bond Proceeds 56 315 - - - - 0.0% Total Other Intergovernmental 56,315 - - - - 0.0% Other Financing Sources Bond Proceeds - - 10 000 000 - - -100.0% Total Other Intergovernmental - - 10 000 000 - - -100.0% Impact Fees: Residential Development Impact Fees 3161954 160,054 Commercial Development Impact Fee - 180 980 143,100 241f739 67,655 24 961 94,714 318f364 -33.8% 31.7% Total Impact Fees 316 954 341 034 384 839 92 616 413 078 7.3% Interest Income: Interest - Investments 69 566 9 322 15 000 4 068 4 000 -73.3% Total Interest Income 69 566 9 322 15 000 4 068 4 000 Miscellaneous: Miscellaneous (131,001) 1631817 Real Property Rental Income 18,000 18 000 - 18 000 341740 18 000 - 18 000 0.0% 0.0% Total Miscellaneous 13,001) 181,817 18 000 52 740 18 000 0.0% TOTAL DEVELOPMENT IMPACT FEE FUND 11927,f840 1728 256 1 19 891 839 1 71850,424 81378,078 -57.9% 2011-2012 Annual Budget Financial Overview 56 • • • W is • • • • • Revenue Schedule by Fund FY 2009 FY 2010 FY 2011 FY 2012 Major Revenue Accounts Actual Budget Projected Budget to Bud et 127 640 -36.9% Parks & Recreation Development Impact Fee Fund Impact Fees: Residential Development Impact Fees 43 186 162 756 202 425 91 544 Total Impact Fees 43 186 162 756 202 425 91,544 127 640 TOTAL PARKS DEV. IMPACT FEE FUND 43,186 162 756 202 425 91,544 127,640 -36.9% Library Development Impact Fee Fund Impact Fees: Residential Development Impact Fees 11 109 41 869 52 050 23 545 32 831 -36.9% Total Impact Fees 11 109 41 869 52 050 23 545 32 831 -36.9% TOTAL LIBRARY DEV. IMPACT FEE FUND 11,109 41,869 52,050 23,545 32,831 -36.90/o 171405 853 24,254 10,223 -37.0% 27.7% Police Development Impact Fee Fund Impact Fees: Residential Development Impact Fees 8,206 301925 Commercial Development Impact Fee - 6 120 381475 8 008 Total Impact Fees 8 206 37 044 46 483 18 258 34 477 -25.8% TOTAL POLICE DEV. IMPACT FEE FUND 8 206 37,044 46,f483 18,258 34 477 -25.8% General Government Development Impact Fee Fund Impact Fees: Residential Development Impact Fees 611565 (12,766) Commercial Development Impact Fee - 14 176 29,175 45,705 131266 1 264 18,419 49,066 -36.9% 7.4% Total Impact Fees 61 565 1 410 74 880 14 530 67 485 -9.9% TOTAL GENERAL GOVT. IMPACT FEE FUND 61,F565 1 410 74,880 14,530 67 485 -9.90/0 Steam Pump Ranch Acquisition Fund Federal Grants: Miscellaneous Federal Grants - - 250 000 - - -100.0% Total Federal Grants - - 250 000 - - -100.0% Other Intergovernmental: Pima County Bond Proceeds 95 712 45 012 275 000 243 100 - -100.0% Total Other Intergovernmental 95 712 45 012 275 000 243 100 - -100.0% TOTAL STEAM PUMP RANCH FUND 95,f 712 45,012 525,000 243,100 - -100.00/0 Municipal Operations Center Fund Interest Income: Interest - Investments 9 511 - - 0.0% Total Interest Income 9 511 - - - - 0.0% TOTAL MUNICIPAL OPERATIONS CENTER 9 511 - - - - 0.0% Water Utility Fund Water Sales: Residential Water Sales 7,5731960 8,040,762 Commercial Water Sales 7491019 902,432 Irrigation Water Sales 1,102,860 1,166,769 Turf Related Water Sales 1,6551197 1,737,900 Construction Water Sales 3491994 222,447 Other 3 757 720 7,902,858 890,149 11090,065 11653,808 1341919 11 000 719021858 890,149 11090,065 1,653,808 134,919 11 000 4.6% 3.3% -8.4% -10.1% -43.5% 816.7% 7,558,000 8611400 111901200 1,8391700 238,800 1 1 200 Total Water Sales 11 434 787 12 071 031 11 689 300 it 682 799 11 682 799 -0.1% 2011-2012 Annual Budget Financial Overview 57 Revenue Schedule by Fund FY 2009 1 FY 2010 FY 2011 FY 2012 Major Revenue Accounts Actual Budget Projected Budget to Budget_ Charges for Services: Engineer Plan Review Fees 8,983 31476 5,000 3,200 3,000 -40.0% Construction Inspection Fees 311050 13,290 15,000 2,600 2,500 -83.3% Misc Service Revenue 33,871 14,803 20,000 10,000 10,000 -50.0% Backflow -Install Permit Fee 51350 11195 600 2,600 21600 333.3% Served by Tucson 11,139 12,406 11,000 11,000 11,000 0.0% Served by Metro 9,114 9,928 8,000 8,000 8,000 0.0% Sewer Fees 164,622 168,680 160,000 1691600 170,000 6.3% Late Fees 98,264 87,776 65,000 65,000 65,000 0.0% NSF Fees 7,346 6,222 5,000 5,000 5,000 0.0% Rain Sensors 220 38 100 75 100 0.0% Meter Income 60,503 20,295 20,000 17,000 13,000 -35.0% New Service Establish Fees 48,757 621417 35,000 40,000 35,000 0.0% Reconnect Fees 42,443 42,861 30,000 45,000 30,000 0.0% Other 96 195 81 841 84 000 84 000 90 000 7.1% Total Charges for Services 617 857 525 227 458 700 463 075 445 200 State Grants Misc State Grants - - 35,000 - - -100.0% Total State Grants - - 35 000 - - -100.0% Interest Income: Interest - Investments 138 333 27 275 44/000 13 600 16,300 -63.0% Total Interest Income 138 333 27 275 44 000 13 600 16 300 -63.0% Miscellaneous: Miscellaneous 12,086 1,804 - - - 0.0% Insurance Recoveries 3041231 - - - - 0.0% Sale of Assets 4 752 - - -- 0.0% Total Miscellaneous 321 069 1 804 - - - 0.0% Other Financing Sources: WIFA Loan Proceeds - - 1 800 000 570 000 700 000 -61.1% Total Other Financing Sources - - 1 800 000 570,000 700 000 -61.1% TOTAL WATER UTILITY FUND 12,512,046 121625,F337 14 027 000 121729,474 12,844,299 -8.4% Alternative Water Resources Development Impact Fee Fund Charges for Services: Groundwater Preservation Fee L323549 549 1 769 142 21298f 285 2 016 440 21423,500 5.4% Total Charges for Services 1 323 549 1 769 142 21298f 285 2 016 440 2 423 500 5.4% Impact Fees: Development Impact Fees 812 740 4751973. 468 308 413,000 219 200 -53.2% Total Impact Fees 812 740 475 973 468 308 413 000 219 200 Interest Income: Interest - Investments 24 422 6 388 8 000 2 754 2 684 -66.5% Total Interest Income 24 422 6 388 8 000 2 754 2 684 -66.5% TOTAL AWRDIF FUND 21160,711 2251 503 21774,593 2 432194 21645,384 -4.7% Potable Water System Development Impact Fee Fund Impact Fees: Single Family Connections 366,166 196,227 169,422 1261431 89,845 -47.0% Multi -Family Connections - - - - - 0.0% Commercial Connections 785,020 63,710 41,120 671820 101280 -75.0% Irrigation Connections 311,920 23,980 321700 10,780 10,900 -66.7% TURF Connections - - - - - 0.0% Fire -Flow Connections 124,978 9 690 6 460 9 690 3 230 -50.0% Total Impact Fees 1 588 084 293 607 249 702 214 721 114 255 Interest Income: Interest - Investments 122,F903 36f 666 33,500 1 16,034 1 13 323 1 -60.2% Total Interest Income 122 903 36 666 33 500 1 16,534 1 13,323 1 -60.2% 2011-2012 Annual Budget Financial Overview 58 • • t Ovpa�LEY �MOO Revenue Schedule by Fund FY 2009 1 FY 2010 FY 2011 FY 2012 % Major Revenue Accounts Actual Budget Projected Budget to Budget TOTAL PWSDIF FUND 11710,987 330 273 283,202 230,755 127,578 -55.00/0 Stormwater Utility Fund Federal Grants: Miscellaneous Federal Grants 10 985 40 676 11188,500 876 500 380,000 -68.0% Total Federal Grants 10 985 40 676 1 188 500 876 500 380 000 State Grants: Miscellaneous State Grants 1 071 141 618 930 100 413,840 575,000 -38.2% Total State Grants 1f071 141 618 930 100 413 840 575 000 Charges for Services: Late Fees 11090 11574 Stormwater Utility Fee 733 509 743 369 1,000 742 500 11200 742 500 1,000 750F000 0.0% 1.0% Total Charges for Services 734 599 744 944 743 500 743 700 751 000 1.0% Interest Income: Interest - Investments 2 624 1f210 1 500 500 500 -66.7% Total Interest Income 2f624 1 210 1 500 500 500 -66.7% Miscellaneous: Miscellaneous 294 705 - 1 000 - 0.0% Total Miscellaneous 294 705 - 1 000 - 0.0% TOTAL STORMWATER UTILITY FUND 749,573 929,153 21863,600 2 035 540 1 1 706 500 1 -40.4% Solar Photovoltaic Fund Other Financing Sources: Bond Proceeds - - 2 500 000 Total Other Financinq Sources - - 2,500,000 2 445 115 1 -100.0% 2,445,115 1 -100.0% TOTAL SOLAR PHOTOVOLTAIC FUND - - 21500,000 2 445 115 - -100.0MW% TOTAL REVENUE - ALL FUNDS $ 55,058,913 $ 48,818,423 $ 73,996,716 $ 561536,117 $ 56,522,831 I -23.6% Note: Does not include Intel -fund Transfers or Carry -Forward Balances 2011-2012 Annual Budget 59 Financial Overview 2011 - 2012 Annual Budget This Page Intentionally Left Blank 3 Local Sales Tax Revenue Sources 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. A portion of the 6% tax on lodging is used for economic development marketing efforts, and 1.5% of the 4% tax on construction activity is used to fund maintenance on Town -wide roads. The remaining portion of these two categories goes to various governmental purposes. 25,000 ■ Local Sales Tax s; Construction ■ Other 20,000 Projections Local construction sales tax has decreased significantly, due to the economic downturn as well as completion of several major commercial centers, and as the town approaches build -out. Minimal commercial activity is expected for the near future. With the opening of several new commercial centers a couple of years ago, as well as a number of new restaurants, the Town's retail and restaurant tax 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: base retail business is projected to grow at a rate of 1-2% per year with inflation commercial development anticipated at an average rate of 170K square ft per year through FY 2016, with the majority attributed to the anticipated expansion of a major bio -tech firm, Ventana Medical Systems (VMS) budgeted construction sales tax decreases 42% from FY 2011, increases 66% in FY 2013 due to the VMS expansion, then begins a gradual decline as the VMS expansion nears completion in FY 2016 2011 — 2012 Annual Budget 61 Financial Overview Local Sales Tax Construction Sales Tax Other 2006 7 261 072 4 887 926 742 038 Q 2007 8737056 6895 ,113 1,719,637 2008 8,983,504 716191524 1021621 Q 2009 9 142 532 6 055 863 684 699 2010 9f409/890 2772 542 1 297 719 Z 2011 9,428,771 2,388,063 600 000 O 2012 10 868 342 2 200 000 600 000 b 2013 11 060 811 3f657/345 600 000 LU 2014 11 256 944 2 998 454 600 000 O oC 2015 11 456 964 31307f 779 600 000 a 2016 11,660,793 2,502,624 600,000 2011 — 2012 Annual Budget 61 Financial Overview 0'4* EY q ��0 Q4 meq,, � � ftEO Fines, Licenses and Permits Revenue Sources 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. Previous years saw significant growth in permit revenues from an influx of commercial activity. As the Town approaches build -out, residential and commercial activity will continue to decrease following assumptions were used in compiling the projections: 3,500 - o Residential Building Permits a Commercial Building Permits ■ Fines/ Licenses The • 35 single family residential (SFR) permits will be issued per year through FY 2016 • 780K+ square foot expansion of Ventana Medical Systems is projected over the next 5 years • an average of 80K+ 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 2011 — 2012 Annual Budget 62 Financial Overview • • Residential Commercial Business Building Permits Building Permits Licenses, Fines & Other 2006 11553f 105 526 860 567 048 J Q 2007 1 325 202 749 890 509 258 2008 1 250 093 1 272 320 520 212 Q 2009 566 583 6841269 542 705 2010 505 226 331 510 473F818 Z 2011 354 095 278 853 470 394 O 2012 352,697 560,499 445,698 2013 359 751 341 784 450/000 rn 2014 366f94 427 554 450 000 2015 374 285 430,371 4501000 a 2016 381771 114,937 4501000 2011 — 2012 Annual Budget 62 Financial Overview • • 1.EY 04 r<.'L9 •��. rtN� �, Y1r�41 '. Ar.. � ' t ED 19 State Shared Revenue Revenue Sources 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 31% of General Fund budgeted revenue for FY 2012. With the severe economic downturn that impacted the state, revenue generated from these sources is projected to decrease through FY 2013, followed by gradual recovery. assumptions were used in compiling the projections: 14,000 p State Income Tax p State Sales Tax ■ Vehicle License Tax 12,000 • a 2% decrease is projected in FY 2012 • a 2% decrease is projected for FY 2013 • a 4% increase is projected for FY 2014 • 2% growth per year is projected for fiscal years 2015 and 2016 2011 — 2012 Annual Budget 63 In The following Financial Overview State Income Tax State Sales Tax Vehicle License Tax 2006 3 343 471 3 432 007 L541560 560 J Q 2007 4 473 305 3 744 864 11726f 149 2008 51544f 763 316211016 1, 738, 874 Q 2009 5 886 132 3 134 789 1 655 875 2010 5 086 954 I 2 891 386 1 484 125 z 2011 3 834 336 2 955 878 1 570 201 O 2012 3 461 502 3 102 745 1623017 b 2013 3,505,516 3,014,996 1,515,000 LU 2014 3,7361880 3,075,295 1530,150 2015 3181 1 618 3 136 801 1 545 452 2016 31887,850 3,199,537 1 1 560,906 2011 — 2012 Annual Budget 63 In The following Financial Overview 04�PtLEY "f1►tJEb �g1 A Highway User Revenue (HURF) Revenue Sources 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 39500 - - There is a state constitutional -' Q D Q restriction on the use of the 3,000 highway user revenues which 3 031 223 requires that these funds be 2,500 used solely for street and 2,000 highway purposes. The Town 2010 has a separate fund — 4 r 1,500 Highway Fund — where this 21669,767 revenue is collected and 1,000 distributed for such purposes. 214331499 2014 500 Projections _ HURF revenue collections are 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 a mayor source of funding forts.. roadway improvements and account for 72% of Highway Fund budgeted revenue for FY 2012. 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 decrease 11% in FY 2012, due to additional fund sweeps by the State • revenue is projected to increase 2.4% in FY 2013, and assumes continuation of FY 2012 additional fund sweeps by the State • 3-4% growth projected each year through FY 2016, and assumes continuation of additional fund sweeps by the State 2011 - 2012 Annual Budget 64 Financial Overview HURF Revenue -' Q D Q 2006 2 793 322 2007 3 031 223 2008 3 002 828 2009 2 855 668 2010 2 667 797 z O b LU � °' 2011 21669,767 2012 2 376 464 2013 214331499 2014 2 516 238 2015 2614371 2016 2, 7181946 64 Financial Overview EY �► i Revenue Sources Charges for Services Description Charges for Services are fees 3,000 charged for specific services 2,500 provided by the Town. They include recreation user fees, 2,000 development services fees, fees collected for Stormwater 1,500 collection, various Water fees and fares received from 1,000 transit services, to name a few. With the exception of 500 Development Services fees, the anticipated revenue - r generated from charges for 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 services is tied to the population and will generally increase or decrease as the population changes. Fees for development services are tied to development activity and will increase/decrease accordingly based on development growth within the Town. Projections As depicted in the graph above, beginning in 2008 revenue increased significantly due to the implementation of the stormwater utility fee. Total revenue from the charges for service category is projected to increase gradually through FY 2016. The following assumptions were used in compiling the projections: • revenue generated from commercial activity remains relatively flat through FY 2016 • recreation fee revenue increases approximately 2% per year through FY 2016, due to higher fees and usage levels • the stormwater utility fee increases slightly each year, as Town population changes 2011 — 2012 Annual Budget 65 Financia/ Overview General Development Recreation Transit Water Stormwater Services Services Fees 2006 348 014 261 083 295 105 38f471 492 702 - -� Q 2007 360 944 233 493 372 973 59 511 563 545 - 2008 503 675 197 862 341 153 57 600 620 169 357 602 Q 2009 556 435 175 637 352 920 55 194 617 857 734 599 2010 478 473 161 975 346 400 51 817 525 227 744 944 z 2011 544/843 102 911 314 000 50 400 463 075 743 700 O2012 538,401 84,200 322,750 39,500 445,200 751,000 L; 2013 511 541 85 884 329,2n,; 54 000 440 700 758 500 LU rn 2014 518 730 87 602 335f789 54 540 440 700 766 075 0 2015 526,050 89,354 342 505 55,085 440 700 773,726 2016 533 502 91 141 349 355 55 636 440 700 781/453 2011 — 2012 Annual Budget 65 Financia/ Overview o J�LEY a,q�ro ED Water Revenue Revenue Sources 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 20,000 water sales is used for 18,000 personnel, operations and 16,000 maintenance, improvements 2006 to existing systems and debt 14,000 service. Revenue collected 12,000 from the groundwater 10,000 preservation fee (GPF) is used 0 8,000 for renewable water capital 40 infrastructure costs and 6,000 related debt service. 4,000 2,000 Projections Revenue projections relating 2007 2008 2009 2010 2011 2012 2013 2014 2015 to water sales and preservation fees are based on growth of the population as well as proposed rate increases. The followinc assumptions were used in compiling the projections: • growth is estimated at 35 new connections annually through FY 2016 • no 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 2016 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 2011 - 2012 Annual Budget Financial Overview Water Sales Groundwater Preservation Fee 2006 10 743 852 695/300 -' Q 2007 11,0211821 767f993 2008 11,686,598 1 092 778 2009 114341786 113231549 Q 2010 12,071 030 117691142 z 2011 111682,799 2,016,440 2012 111 682 799 2f423500 O b 2013 12 081 900 21568f 264 2014 12 094,300 2,572 599 2015 121106f 700 2 576 934 a' 2016 12,119,200 2580f095 2016 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 2011 - 2012 Annual Budget Financial Overview 7_1 • • OJPa-BEY AR/�> 0 ?VDE0 Development Impact Fees Revenue Sources Description 3,500--- - Development Impact Fees are fees assessed by the Town on 3,000 new development for the 13 Corm-erci I purpose of financing 2,500 Residential Fees Commercial Fees 2006 2 422 844 infrastructure ultimately —'2007 Q 1863375 373 512 D 2008 needed to support a growing N 2,000 Q 2009 1 619 926 1 221 918 community. In previous 0 1,500 298 656 z 2011 648 240 219 974 years, the Town assessed 2012 562 073 446,893 2013 2641215 impact fees only to support 1,000 2014 264 215 69 240 2015 roadways and water facilities. 69 240 a 2016 264, 215 69, 240 In December 2008, Town 500 Council adopted additional impact fees for both _ r T T residential and commercial to.. 2007 2008 2009 2010 2011 2012 support Police, General Government, Library, and Parks and Recreation facilities. 2013 2014 2015 2016 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: approximately 35 single family residential (SFR) permits will be issued per year through 2016 commercial activity includes a 780K+ square foot expansion of Ventana Medical Systems and an annual average of 80K+ square feet of miscellaneous commercial development recent state legislation restricting types of impact fees collected after January 1, 2012 with increased limitations placed on their use 2011 — 2012 Annual Budget 67 Financial Overview Residential Fees Commercial Fees 2006 2 422 844 761f396 —'2007 Q 1863375 373 512 D 2008 2,633,328 7151612 Q 2009 1 619 926 1 221 918 2010 1 055 038 298 656 z 2011 648 240 219 974 O 2012 562 073 446,893 2013 2641215 691240 rn 2014 264 215 69 240 2015 264 215 69 240 a 2016 264, 215 69, 240 67 Financial Overview Loan Proceeds Revenue Sources Description In 2009, the Town was approved for a $3.4 million loan from the Water Infrastructure Finance Authority (WIFA). The Town also plans to apply for a $2.9 million loan from WIFA in FY 2015/16. WIFA is a state agency that pools the bond issues of smaller to medium sized communities to help lower their costs of issuing debt. Uses The final loan proceeds from the 2007 WIFA loan were received in FY 2008/09 to finance the expansion of the Town's reclaimed water system. Proceeds from the 2009 loan funds are being used to finance existing water system infrastructure improvements. These improvements include the re -drilling and re-equipping of a well, booster station and replacement of a 16 -inch water main. If approved, proceeds from the 2016 loan will be used to finance the construction of potable water system improvements. More information on debt and bond proceeds can be found in the Debt Service section of the budget document. 2011 — 2012 Annual Budget Financial Overview • t • WIFA Loan _ Proceeds 2009 6931522 Q Q 2010 - 2011 570 000 Z 2012 700 000 E 2013 - 2014rn - LL' 0 2015 - a' 2016 2/8801000 More information on debt and bond proceeds can be found in the Debt Service section of the budget document. 2011 — 2012 Annual Budget Financial Overview • t • E Yo�P��O �•j,9 A 01JNDED �61 Town of Oro Valley Caring for our heritage, our community, our future. 2011 - 2012 Annual Budget W 69 2011 - 2012 Annual Budget This Page Intentionally Left Blank 70 vp • • t ,4p,1,LE Y A%,, Expenditure Summary The expenditure budget for FY 2011-12 is estimated to total $62,106,926 and represents a 24.5% decrease over the prior fiscal year budgeted expenditures. The budget includes $46.6 million to support daily operations and services and $15.5 million in capital projects to fund roadway expansions and improvements, as well as stormwater and water infrastructure improvements. At the onset of the budget planning phase, all departments were instructed to continue scrutinizing their operating costs and find ways of further reducing costs while attempting to keep service levels whole. Significant cost savings have been achieved over the past three fiscal years via measures such as: consolidating departments; completing an early payoff of debt; implementing a hiring freeze and voluntary severance plan; and reducing the need for outside consultants and services through providing more services with use of in-house staff. By re -thinking our current ways of doing business, operations and maintenance costs (0&M) are down 17% from their peak in FY 2008-09, while personnel costs are down 7% from FY 2008-09. 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 2011/12 capital budget is limited to projects that were already in the planning stages or under construction with existing funding sources, along with new projects that are fully funded with dedicated revenue sources. Please reference the Capital Improvement Plan (CIP) section of the budget document for further details on capital projects. FY 2011/12 Budgeted Uses Debt Service 14% Personnel 4 0 °/n 2011 - 2012 Annual Budget 71 Financial Overview Expenditure Summary A brief description of the changes in expenditure categories from budget year to budget year is as fnllnwr,- Personnel Budgeted Uses Personnel section of the document. • $527K budgeted for fleet costs, which were previously budgeted as interfund transfers • $110K budgeted for election costs Variance FY 2010 FY 2010/11 FY 2011/12 o completion of several Water Utility studies and water loss control audit Actual Budget Projected Budget to Budget % Personnel 24,674,902 24,658,051 24,051,381 24,359,433 1 (298,618) -1.2% 0&M 12,059,322 12,237,176 101892,225 12,724,940 487,764 4.0% Capital 5,309,640 31,8221612 13,971,841 161187,247 (15,635,365) -49.1% Debt Service 10,500,681 13,589,992 13,059,607 8,835,306 (4,754,686) -35.0% Total Expenditures $ 52,544,545 $ 82,307,831 $ 61,975,054 1 $ 62,106,926 $ (20,2007905) -24.5% • $1.2M decrease in Stormwater Utility capital outlay as a large project nears completion • $499K decrease in Steam Pump Ranch capital outlay due to completion of site stabilization Does not include depreciation, amortization, interfund transfers or contingency amounts • $160K increase for Clean Renewable Energy Bonds debt service (funded through utility A brief description of the changes in expenditure categories from budget year to budget year is as fnllnwr,- Personnel . Funded 3.89 fewer FTEs from FY 10/11 budget. Further discussion can be found in the $ 299K Personnel section of the document. • $527K budgeted for fleet costs, which were previously budgeted as interfund transfers • $110K budgeted for election costs • $264K decrease in utility costs due to completion of energy efficiency upgrades • $379K decrease in outside professional services o completion of several Water Utility studies and water loss control audit o completion of Environmentally Sensitive Lands Ordinance and associated consulting costs 0&M o increased use of in-house staff for service provision $488K • $288K decrease in Water Utility regulatory expenses • $321K increase in administrative charges to Enterprise Funds for General Fund support • $120K increase in retail sales tax rebates due to growth in retail sales • $69K increase in Stormwater Utility maintenance projects • $410K budgeted for rebate of Ventana Medical Systems development fees per financial participation agreement (contingent upon facility expansion) • $75K decrease in Water Utility reclaimed water purchasing • $69K decrease in bed tax rebates due to contract end date in FY 2011/12 • $2.5M decrease due to completion of solar panel covered parking structures funded with Clean Renewable Energy Bonds • $1.8M decrease due to completion of energy efficient equipment upgrades Capital • $7.7M decrease in outlay for roadway design and construction, due to completion of "ects $(15.6M) ro and revision of project roject costs several p � • $2.3M decrease in Water Utility capital outlay as a large reservoir project nears completion • $1.2M decrease in Stormwater Utility capital outlay as a large project nears completion • $499K decrease in Steam Pump Ranch capital outlay due to completion of site stabilization • $453K increase in town roadway pavement preservation per Council direction • $160K increase for Clean Renewable Energy Bonds debt service (funded through utility savings, electricity rebates, and an interest subsidy from the federal government) Debt Service • $996K decrease due to payoff of a Central Arizona Water Conservation District (CAWCD) $(4.8M) water rights loan • $3.6M decrease in debt service due in FY 11/12 for Highway Expansion (HELP) loan • 277K decrease in debt service due in FY 11/12 for Water Utility bonds 2011 - 2012 Annual Budget 72 Financia/ Overview �pa.LEY A,gi,�. 1r t �r �► r ��NVpEU 1�a Expenditure Summary The FY 2011/12 budget includes $172K in one-time expenditures in the General Fund. The following list identifies the expenditures and their uses. Summary of FY 2011/12 General Fund One -Time Exnenditures Department Description of One -Time Expenditure Budgeted Amount Carryforward capacity for network infrastructure upgrade 130,000 Information Technology (utilizing fund balance transferred from Capital Asset Replacement Fund Parks, Recreation, Library and Aquatics equipment 17,500 Installation of perimeter fencing at Steam Pump Ranch 22 000 Cultural Resources (PRL&CR) Centennial celebrations 2 000 Capital Improvement Program The Capital Improvement Program (CIP) is a comprehensive, five-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 2011/12 adopted budget includes $15.5 million in capital improvement projects, funded with a variety of sources. Projects to be completed include 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 2011/12 Capital Improvement Projects Street Equipment Maintenance 123 000 $112001000 $ ' Road Expansion $799819000 2011 — 2012 Annual Budget 73 Stormwater Infrastructure $950,000 Water Infrastructure $572157000 Financial Overview 2011 - 2012 Annual Budget This Page Intentionally Left Blank 74 ,,, 4y�l.E,Y ARS`'' y. r � r A g ! . ..4 Expenditure Schedule by Fund w Major Expenditure Accounts FY 2009 FY 2010 FY 2011 FY 2012 Actual -Budget F Projected Budget to budget General Fund Clerk 398,015 445,367 378,581 374,081 456,089 20.5% Council 205,183 212,807 217,610 197,610 220,573 1.4% Development & Infrastructure Services - - 31084,586 21735,662 3,340,679 8.3% Custodial/Facilities Maintenance 265,758 275,005 - - - 0.0% Building Safety 1,419,069 1,230,346 - - - 0.0% Development Review 512,831 416,216 - - - 0.0% Planning & Zoning 1,3111277 11256,394 - - - 0.0% Finance 852,169 783,450 727,613 721,613 7221199 -0.7% General Administration 1,7191183 11774,656 2,469,851 21265,400 21141,767 -13.3% Human Resources 3511706 416,074 4841189 455,657 482,649 -0.3% Information Technology 1,055,248 1,087,797 1,120,106 1,098,106 11252,797 11.8% Legal 869,632 747,627 842,785 740,785 841,832 -0.1% Magistrate Court 718,521 728,550 753,772 744,922 781,625 3.7% Manager 1,021,387 944,476 974,906 892,553 877,167 -10.0% Parks, Recreation, Library & Cultural Resources 31400,025 3,195,820 21947,715 21887,080 2,876,702 -2.4% Police 12,988,211 11 581,756 11,569,573 111199,698 121096f 513 4.6% TOTAL GENERAL FUND 27,0881216 25,096,341 25,571,287 24,313,167 26,090,592 2.0% Special Revenue Funds Highway User Revenue Fund 4,568,146 3,368,086 3,9021198 3,772,839 4,093,277 4.9% Public Transportation Fund 11470,370 429,511 402,320 427,420 - -100.0% Bed Tax Fund 540,315 4151429 358,869 380,146 235,981 -34.2% Impound Fee Fund - 95,210 54,204 47,717 45,987 -15.2% Seizures & Forfeitures Funds 231 520 90 895 - 138,701 - 0.0% TOTAL SPECIAL REVENUE FUNDS 6,810,351 4,399,131 4,717,591 4,766,823 4,375,245 -7.3% Debt Service Funds Municipal Debt Service Fund 11232,272 71470,622 469,759 499,140 629,521 34.0% Oracle Road Improvement District Fund 453f429 367 496 367,803 372 298 366 303 -0.4% TOTAL DEBT SERVICE FUNDS 1,685,701 7 838 118 837,562 871,438 995f824 18.9% Capital Project Funds Steam Pump Ranch 140,420 84,963 542,000 399,190 - -100.0% Regional Transportation Authority Fund - - 50,000 1,725 50,000 0.0% Solar Photovoltaic Fund - - 2,500,000 2,456,665 - -100.0% Capital Asset Replacement Fund 500,361 - 444,938 314,938 - -100.0% Municipal Operations Center 89,185 217,838 - - - 0.00/0 Alternative Water Resource Dev. Impact Fee 11314,601 1,205,659 3,099,578 3,116,352 2,519,753 -18.7% Potable Water Systems Dev. Impact Fee 309,398 513,855 4,069,671 31379,671 1,379,920 -66.1% Townwide Roadway Dev. Impact Fees 8f 244,800 1 728 168 21,949,760 81039,435 10613467 -51.6% TOTAL CAPITAL PROJECT FUNDS 10,598,765 3 750 483 32,F6551947 17,707,f976 14,563,140 -55.40/o Enterprise Funds Water Utility 12,976,460 9,991,194 14,882,507 11,467,652 13,889,631 -6.7% Stormwater Utility 648f 220 597f610 2f767,969 1 973 030 1 756 223 -36.6% TOTAL ENTERPRISE FUNDS 13,624,680 10,588,804 17 650 476 131440,F682 15,645,854 -11.40/o Internal Service Funds Fleet Maintenance - 871,668 874,968 874,968 436,271 -50.1% TOTAL INTERNAL SERVICE FUNDS - 871,668 874,968 874,968 436,271 -50.10/0 TOTAL EXPENDITURES - ALL FUNDS 1 $ 59,807,713 $ 52,544,545 $ 82,3071831 $ 61,9751054 $ 62,106,926 -24.50/o Note: Does not include depreciation, amortization, interfund transfers or contingency amounts 2011-2012 Annual Budget Financial Overview 75 2011 - 2012 Annual Budget This Page Intentionally Left Blank 76 Expenditures by Program This table represents a summary of the adopted FY 2011 - 2012 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. 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. Special Debt Service Capital Enterprise Internal Department/ Program FTE General Fund Revenue Funds Project Funds Funds Service Fund Total Funds Clerk 4.63 456 089 456,089 4.63 456,089 - - - - - 456.089 Council 7.00 220 573 220,573 7.00 1 220,573 - - - - - 220,573-1 Development & Infrastructure Svcs. Administration 4.00 232,442 618,950 851,392 Conservation and Sustainability 1.00 252573 252,573 Plan Review 7.18 623,330 623,330 Intake, Issuance & Records Mgmt 3.30 2171696 217,696 Planning 6.48 580,010 580,010 Inspection 6.20 464,249 4641249 Code Compliance 1.80 103,961 103,961 Transportation Engineering 6.75 11799,590 1,799,590 Traffic Engineering 5.75 608,455 608,455 Pavement Management 2.20 175,336 175,336 Street Maintenance 11.10 840,753 840,753 Facilities Maintenance 2.35 3031667 303,667 Fleet Maintenance 1.35 436,271 436,271 Stormwater Utility 3.50 1,756,223 1,756,223 Public Transportation 10.11 562 751 50 193 50 000 662 944 73.07 31340,679 4 093 277 - 50 000 1,f7561223 436 271 9,676,F450 Finance Administration 1.00 159,387 159,387 Accounting Services 3.00 294,487 294,487 Budgeting 2.00 154,963 154,963 Procurement 1.00 113 362 113 362 7.00 722,199 - - - - - 722 199 General Administration - 2,141,767 2141767 - 21141,767 - - - - - 21141,767 Human Resources Administration 2.00 247,366 247,366 Personnel Services 2.00 131,472 131,472 Safety & Risk Management 1.00 103,811 103,811 5.00 482,649 - - - - - 482,6 Information Technology Administration 1.00 375,859 375,859 GIS Services 2.00 148,599 148,599 Technical Services 2.00 441,653 441,653 Business Application & Development 2.00 166,186 166,186 Telecommunications - 120,500 120,500 7.00 11252,797 - - - - - 1125217 Legal Civil 4.00 445,509 445,509 Prosecution 4.00 396,323 396 323 8.00 841,832 - - - - - 841,8 Magistrate Court 9.00 781 625 781,625 9.00 781,625 - - - - - 781f62 Manager Town Management 4.00 507,544 507,544 Council Support & Constituency 1.50 92,226 92,226 Communications & Comm. Relations 2.60 176,185 176,185 Economic Development 1.00 101 212 235 981 337 193 9.10 877,167 235,981 - - - - 11113,F148 2011-2012 Annual Budget Financial Overview 77 Expenditures by Program " Department/ Program FTE General Fund Special Revenue Debt Service Capital Enterprise Internal Total MW Funds Funds Project Funds Funds Service Fund VV Parks, Recreation, Library & Cult. Rscs. Parks & Rec Administration 2.80 284,018 284,018 40 Parks 6.90 577,289 577,289 Recreation 3.70 274,824 274,824 MW Trails 0.90 65,815 65,815 Aquatics 7.32 431,965 431,965 Library Services 18.02 11115,815 11115,815 Cultural Resources 1.30 126,976 126,976 40.94 1 21876,702 - - - - --F-2,876,702 Police Administration 4.00 999,545 999,545 Support Services 54.25 4,735,108 45,987 4,781,095 10 Field Services 67.00 5,952,970 5,952,970 Training & Reserves 3.38 303,390 303,390 Professional Standards 1.00 105,500 105,500 129.63 1 12,096,513 45,987 - - - - 12 142 500 Water Utility Administration 15.00 6,795,789 61795,789` Engineering & Planning 6.00 3,890,784 3,890,784 Production 7.00 21418,808 2,418,808 40 Distribution 8.00 784,250 784,250 Alternative Water Resources - 2,519,753 2,519,753 vW Potable Water Systems - 1,379,920 1 379 920 36.00 - - - 31899,673 13 889 631 - 17 789 304 Debt Service - 995,824 995,824 - - - 995f824 - - - 995,,82-4-1 Roadway Improvements - 10,613,467 10,613,467 - - - - 10 613 467 - --T--10f613,,467 FY 2011/12 Adopted Budget 336.37 26,090,592 41375,245 995,824 14,563,14015,645,854 4 3 6, PUT 62,106 926 Note: Does not include depreciation, amortization, interfund transfers or contingency amounts Mr MW 2011-2012 Annual Budget Financial Overview 78 O JPLV.q EY "UNDED ALJ I Town of Oro Valley Caring for our heritage, our community, our future. 2011 - 2012 Annual Budget fir► 79 2011 - 2012 Annual Budget vw v vp 40 This Page Intentionally Left Blank 80 VP • • • Personnel Summary Personnel and Employee Compensation Personnel service represents 52.2% of the total operating budget. As it is a significant portion of the budget, employee compensation is heavily scrutinized. Due to economic and financial conditions, as well as escalating benefit costs, Town management has sought ways to somewhat lessen this rising cost. In November 2008, as revenues continued to decline, the Town Manager, with Council's approval, implemented a hiring freeze. In addition, in the spring of 2009, a voluntary severance plan was offered to Town employees. Positions continue to be left unfilled or have been eliminated as vacancies occur. These efforts have resulted in an FY 11/12 personnel budget that is $1.8 million or 7% less than FY 2008/09, with 51 fewer FTEs funded. For the third year in a row, the Town's budget does not include funding for employee merits, step increases, or cost of living adjustments. Based on the financial scenario laid out for the next five years, the Town's recurring revenues will be periodically analyzed 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. A detailed listing of positions by department and/or program can be found in the Appendix section of the budget document. 2011 - 2012 Annual Budget Financial Overview 81 FY 2010/11 Budget FY 2011/12 Budget .55 Police 129.08 129.63 Development and Infrastructure Services 73.74 73.07 (.67) Parks, Recreation, Library &Cultural Resources 42.31 40.94 (1.37) Water Utility 36.00 36.00 - Magistrate Court 9.00 9.00 - Administration 50.13 47.73 2.40 Total Positions 340.26 1 336.37 3.89 2011 - 2012 Annual Budget Financial Overview 81 Personnel Summary FY 2011/12 Personnel Administration Magistrate Court 14% Police 3% 38% Water Utility 11 Parks, Rec, Develo ment & Library&Cult. p Infrastructure Rscs. 12% Svcs 22% Health care and dental premiums for FY 2011/12 remain flat to FY 2010/11. The contribution rates for the Town's two major retirement plans experienced 3-5% increases for FY 11/12. The table below illustrates the changes to employee benefit rates over the last several years. single -employee Nrru coverage ** single -employee base plan coverage Looking at an employee per capita trend, employee growth was gradually increasing through FY 2008, as the Town staffed to support new residential and commercial development. In FY 2009, full- time equivalent positions (FTEs) per capita began declining, as economic conditions required the Town to implement a hiring freeze. FTEs per capita are expected to remain flat, as the town's population and development growth have slowed. 2011 — 2012 Annual Budget FTEs per Thousand Town Population 10.00 9.00 8.00 8.72 9.01 8.72 7.00 8.15 7.83 7.87 6.00 5.00 4.00 3.00 2.00 1.00 2007 2008 82 2009 2010 2011 2012 Financial Overview t • Employer Matching Rates FY 08/09 FY 09/10 FY 10/11 FY 11/12 AZ State Retirement System (ASRS) 9.45% 9.40% 9.85% 10.14% Public Safety Personnel Retirement System (PSPRS) 16.07% 14.88% 15.63% 16.31% Correction Officers Retirement Plan (CORP) 7.40% 9.52% 9.68% 9.13% Health Care Premiums (per year)* I $3,730 $3,595 $3,849 $3,849 Dental Premiums(per year)** 290 $273 $233 $233 single -employee Nrru coverage ** single -employee base plan coverage Looking at an employee per capita trend, employee growth was gradually increasing through FY 2008, as the Town staffed to support new residential and commercial development. In FY 2009, full- time equivalent positions (FTEs) per capita began declining, as economic conditions required the Town to implement a hiring freeze. FTEs per capita are expected to remain flat, as the town's population and development growth have slowed. 2011 — 2012 Annual Budget FTEs per Thousand Town Population 10.00 9.00 8.00 8.72 9.01 8.72 7.00 8.15 7.83 7.87 6.00 5.00 4.00 3.00 2.00 1.00 2007 2008 82 2009 2010 2011 2012 Financial Overview t • 5 Sr Er In Personnel Summary by Fund 2011-2012 Annual Budget 83 Financial Overview FY 2009 FY 2010 FY 2011 FY 2012 Budget Actual Budget Projected neral Fund Council 7.00 7.00 7.00 7.00 7.00 Clerk 4.60 4.00 4.63 4.63 4.63 Development & Infrastructure Svcs. 1.00 2.00 32.35 29.35 39.92 Building Safety 16.00 14.00 - - - Development Review 6.00 4.00 - - - Planning & Zoning 17.00 13.00 - - - Finance 9.00 7.00 7.00 7.00 7.00 Human Resources 4.00 4.00 5.00 5.00 5.00 Information Technology 7.00 8.00 8.00 8.00 7.00 Legal 10.00 8.00 8.00 8.00 8.00 Magistrate Court 9.00 9.00 9.00 9.00 9.00 Manager 9.50 9.50 10.10 8.10 9.10 Parks, Rec, Library & Cultural Rscs. 46.26 45.95 42.31 42.31 40.94 Police 135.38 126.60 128.08 123.73 128.63 General Fund Personnel 281.74 262.05 261.47 252.12 266.22 ecial Revenue Funds Highway Fund 34.63 28.64 28.30 28.30 28.30 Bed Tax Fund 0.40 0.40 0.40 0.40 - Impound Fee Fund - 2.00 1.00 1.00 1.00 Public Transportation Fund 8.99 7.74 7.24 9.61 - ISpecial Revenue Funds Personnel 44.02 38.78 36.94 39.31 29.30 terprise Funds Water Utility 36.50 35.00 36.00 34.00 36.00 Stormwater Utility 2.30 3.00 3.50 3.50 3.50 Enter rise Funds Personnel 38.80 38.00 39.50 37.50 39.50 ternal Service Fund Fleet Maintenance - 2.37 2.35 2.35 1.35 Internal Service Fund Personnel - 2.37 2.35 2.35 1.35 Total Town Personnel 364.56 341.20 340.26 331.28 336.37 2011-2012 Annual Budget 83 Financial Overview 2011 - 2012 Annual Budget This Page Intentionally Left Blank 84 0 2011 - 2012 Annual Budget This Page Intentionally Left Blank E:1: • • • .. A A. "UNQED X91 Debt Service The Town of Oro Valley assumes debt to provide funding for the construction of capital projects. The Town has adopted financial policies on debt capacity that sets guidelines for issuing debt and provides 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, 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, 2011. Outstanding Principal = $69,646,694 AZ Dept of Transportation H.E.I. Im provem Boi 4 Water Infrastructure Finance Authority Bonds 10% I Clean Renewable Energy Bonds 4% ix Revenue ��nds 78% The information presented in this section discusses the type of debt issued, the Town's debt capacity and legal debt limitation, and debt requirements for the next twenty (20) years. Specific information on outstanding debt, its uses, and payment schedule can be found in the Appendix section of the budget document. 2011 — 2012 Annual Budget 87 Financial Overview �p,4PL1.EY qR�O 4 �y I► .k Financing Sources Excise Tax Revenue Bonds Debt Service 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. $6,000,000 , ■ Principal ■ Interest $5,000,000 Bond Rating $4,000,000 Standard & Poor's AA - Fitch AA - $3,000,000 $2,000,000 $1,000,000 11,-- $0 - 2012 2014 2016 2018 2020 2022 2024 2026 2028 Improvement District Bonds $450,000 in Principal p Interest � Improvement District Bonds are $400,000 - -- issued to finance projects in a designated area within a town or city. $350,000 The majority of property owners in this $300,000 district must approve the formation of -000 $250,000 the district and the amount of indebtedness. The bonds are then $200,000 repaid by the assessments levied on the $150,000 property in the district. The Town $100,000 issued Improvement District Bonds in $50,000 2005 in the amount of $3,945,000 to L U LJ L LJ U L i Li finance the widening of Oracle Road $° -J -J -i - - --- - ---- along the Rooney Ranch development. 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2011 - 2012 Annual Budget Financial Overview • • Highway Expansion and Extension Fund Loans (HELP) Debt Service The HELP program is a financing option where WIFA is a state agency that has specific Arizona's State Infrastructure Bank Loan bridges the programs that can improve a city or ■ Principal o hterest gap between roadway improvement needs and $2,650,000 available funds. The intent of the HELP program is to accelerate the construction of road projects. The loan $2,600 000 amount must be over $250,000 with a pay back period $2,550,000 of five years or less. In 2007, the Town received $8M source. WIFA has statutory charges to $500,000 in HELP loan proceeds for the widening of La Canada $2,500,000 Drive between Tangerine Road and Naranja Drive. The final debt service payment on this loan will be $2,450,000 made in FY 2012. Funding from the Pima Association 2012 of Governments (PAG) assists in the payment of principal on this loan. The interest on the loan is paid with the Town's roadway development impact fees. Water Infrastructure Finance Authority Bonds (WIFA) $700,000 WIFA is a state agency that has specific ■ Principal o Interest programs that can improve a city or $600,000 town's ability to use bonding as a revenue source. WIFA has statutory charges to $500,000 assist smaller to medium sized $400,000 communities in pooling their bond issues to help lower the costs of issuing debt. $300,000 They also have monies set aside to help secure the debt and allow the bonds to be $200,000 issued at the lowest interest rate possible. $100,000 WIFA's charge is specifically with water and wastewater projects. In 2007, the $0-11111111 �_ T ____�____� Town was approved for up to $6M in 2012 2014 2016 2018 2020 2022 2024 2026 2028 2030 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 (CREBSZ 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. Debt service on the bonds 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. Internal Revenue service. 2011 - 2012 Annual Budget $300,000 ■ Principal o Interest $250,000 $200,000 $150,000 $100,000 1 I $50,000 U U U U U U 0 $0 _ - _ U U. 2012 2014 2016 2018 2020 2022 2024 2026 2028 Financial Overview OJpl-LEY A.O o0,VCIIrc � �r r t ``"`DE09' 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. 2011 - 2012 Annual Budget M Financial Overview Excise Tax Revenue Bonds ImprovementHELP Loans District Bonds WIFA Bonds CRESS Total 2012 41973,031 3701578 21615,467 5471205 247,689 817531970 2013 5,0391775 373,828 - 5471029 2541691 6,215,322 2014 4,524,976 371,328 - 546,846 250,864 5,694,013 2015 41839,782 3701408 - 546,657 246,274 6,003,120 2016 5,003,484 368,798 - 5461462 240,887 61159,630 2017 510021412 3711478 - 546,260 234,900 61155,049 2018 4,986,601 3711728 - 5461051 228,460 6,132,840 2019 4,709,444 372,623 - 545,835 226,507 5,854,408 2020 4,701,817 372,673 - 545,612 219,108 5,839,209 2021 512091331 371,863 - 5451381 216,354 6,342,929 2022 4,349,669 - - 545,142 208,249 5,103,060 2023 4,347,125 - - 544,896 204,706 5,096,727 2024 4,348,919 - - 544,640 195,721 5,089,280 2025 4,076,978 - - 544,376 191,318 4,812,672 2026 4,083,956 - - 544,104 186,370 4,814,429 2027 3,696,313 - - 543,821 176,066 4,416,199 2028 1,702,750 - - 443,834 170,437 2,317,021 2029 1,706,625 - - 228,905 - 1,935,530 2030 - - - 228, 796 - 228, 796 77,302,986 1 31715,300 1 21615,467 91631,854 3,698,597 96,964,203 2011 - 2012 Annual Budget M Financial Overview Clerk FY 2010 Actual FY 2010 FY 2011 FY 2011 Actual Budget Projected FY 2012 Budget Variance 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 - Licensing & Cust Svc Clerk 1.00 1.00 1.00 1.00 - Office Assistant - 0.63 0.63 0.63 - Total FTEs 4.00 4.63 4.63 4.63 - FY 2010 Actual FY 2011 Budget FY 2011 Projected FY 2012 Budget Variance to Bud et FY 2012 Budget Variance to Budget Personnel Operations & Maintenance $ 289,773 155,594 $ 334,129 44,452 $ 334,129 39,952 $ 303,937 152,152 -9.0% 242.3% Total Expenditures $ 445,367 $ 3787581 $ 3747081 $ 456,089 20.5% FY 2011/2012 Expenditure and Staffing Changes Personnel Personnel costs decreased 9% due to the refilling of a retirement at a lower salary. Operations & Maintenance Operations & Maintenance increased 242.3%, as Town elections will be held in FY 2012. 2011-2012 Annual Budget 91 Program Budgets Revenue Sources FY 2010FY 2011 Actual Bud et Projected FY 2012 Budget Variance to Budget Business Licenses & Permits Copy Services $ 170,260 $ 165,310 $ 165,310 3,698 33500 4,990 $ 170,698 4,000 3.3% 14.3% Total Revenues $ 173,958 $ 1689810 $ 170,300 $ 1749698 3.5% FY 2011/2012 Expenditure and Staffing Changes Personnel Personnel costs decreased 9% due to the refilling of a retirement at a lower salary. Operations & Maintenance Operations & Maintenance increased 242.3%, as Town elections will be held in FY 2012. 2011-2012 Annual Budget 91 Program Budgets Highlights & Goals Mission 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. FY 2011 Highlights I FY 2012 Goals and Objectives - Improved integration of AgendaQuick, the agenda management system, with Granicus, the video streaming system to streamline the agenda packet process - Updated all business license application forms - Welcomed a new town clerk, deputy town clerk and front desk staff - Updated and streamlined internal operating procedures in the Town Clerk's Office - Enhanced liquor license application fees to cover actual costs of processing applications - Posted 238 public notices - Staffed over 100 hours of Council meetings - 15 study sessions, 17 executive sessions and 20 regular meetings - and prepared over 300 pages of minutes - Distributed 35 Council meeting packets totaling 6,525 pages Focus Area: Leadership and Communication ■ Develop an implementation plan for a document management system to increase the efficiency of document storage and retrieval and improve the public's access to public records ■ Conduct fair and impartial elections by providing timely and accurate information to candidates and voters ■ Provide training for Town staff regarding records management, open meetings, minutes, etc. Focus Area: Finance and Economic Development ■ Effectively administer Chapter 8 of the Oro Valley Town Code regarding business regulations to insure that all businesses are properly licensed including public market participants and that all applicable fees are collected ■ Reduce the production cost of Council meeting packets by eliminating paper copies of the packets through the use of electronic devices ■ Implement document management system to reduce staff time spent retrieving paper copies of records 2011-2012 Annual Budget Program Budgets 92 Measures & Indicators Performance Measures ► Percentage of public records requests fulfilled within 72 hours of request ► Percentage of new business licenses issued within 3-5 days of application ► Percentage of business license renewals issued within 30 days * Data not available Workload Indicators Clerk FY 2010 FY 2011 FY 2012 Actual Estimate Projected 82% 84% 88% N/A 95% 100% N/A 65% 80% * Data not available 2011-2012 Annual Budget Program Budgets 93 FY 2010 FY 2011 FY 2012 Actual Estimate Projected ► Number of Town Council meetings attended 43 35 See note Note: Regular Council meetings are held on the 1 st & 3rd Wednesday of the month. Council may add/cancel meetings as needed for study sessions, budget sessions, etc. ► Number of pages contained in Council meeting packets * N/A 67525 See note Note: Number of pages is based on the number and complexity of items on the agenda. ► Number of pages of minutes prepared for Council meetings 387 300 See note Note: Number of pages is dependent upon the length of meeting. ► Number of ordinances published, posted and codified 15 25 See note Note: Unable to project the number of ordinances that will go before Council. ► Number of public records requests received and completed 181 141 175 ► Total business licenses issued - new & renewal 2,294 27398 27450 ► Number of liquor license applications processed 12 20 11 ► Number of solicitor badge applications (commercial & nonprofit) processed 161 125 130 * Data not available 2011-2012 Annual Budget Program Budgets 93 Council 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 caring for our heritage, our community and our future, where high quality municipal services are coupled with 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. FY 2010 FY 2011 FY 2011 Actual Budget Projected FY 2012 Budget Variance to Budget Variance to Budget Personnel $ 71,652 $ 76,922 $ 76,922 Operations & Maintenance 1411155 1401688 120,688 Mayor Councilmember 1.00 1.00 1.00 6.00 6.00 6.00 1.00 6.00 - - Total FTEs 7.00 7.00 7.00 7.00 - 2011-2012 Annual Budget Program Budgets 94 • FY 2010 FY 2011 FY 2011 Actual Budget Projected FY 2012 Budget Variance to Budget Personnel $ 71,652 $ 76,922 $ 76,922 Operations & Maintenance 1411155 1401688 120,688 $ 76,923 143,650 0.0% 2.1% Total Expenditures $ 212,807 $ 2179610 $ 197,610 $ 220,573 1.4% 2011-2012 Annual Budget Program Budgets 94 • Highlights & Goals Mission Council 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. The Mayor and Councilmembers are committed to responsive governance and the creation of a "Community of Excellence." FY 2011 Highlights I FY 2012 Goals and Objectives - Approved a $94 million balanced budget for FY 2011/12 - Approved the Environmentally Sensitive Lands (ESL) Ordinance - Approved an Intergovernmental Agreement (IGA) with the City of Tucson to deliver Central Arizona Project (CAP) water to the Town - Approved the new 2011 Strategic Plan - Approved the new 2011 Community Economic Development Strategy (CEDS) - Approved modernization of Advisory Boards and Commissions - Approved a Financial Participation Agreement (FPA) with Ventana Medical Systems - Created the new Conceptual Design Review Board (CDRB) - Held first-ever joint Council meetings with the Town of Marana - Launched Dine Oro Valley campaign - Conducted first-ever Economic Summits with local business and education sector leaders Focus Area: Leadership & Communication ■ Build trust through effective public outreach and communication ■ Create an environment conducive to effective dialogue among the Council and staff ■ Maintain strong intergovernmental relationships Focus Area: Finance & Economic Development ■ Maintain a balanced budget ■ Develop diverse sources of revenue ■ Cultivate relationships with the business community and create a business -friendly environment Focus Area: Community Infrastructure ■ Plan for and provide the necessary infrastructure to support community growth and preservation ■ Provide diverse recreational, educational and cultural opportunities ■ Maintain a safe community where residents and visitors feel secure ■ Provide a safe and reliable water supply to Water Utility customers 2011-2012 Annual Budget Program Budgets 95 Al Development and Infrastructure Services (DIS) The Development and Infrastructure Services (DIS) Department was established as a new department in FY 2011, consolidating three departments. DIS is comprised of the following divisions: Planning, Conservation & Sustainability, Permitting, Inspection & Code Compliance, Transportation 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, 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. Administration Planning Conservation & Sustainability Permitting Inspection & Compliance Engineering Operations Transit License & Permit Fees Charges for Services Federal Grants State Grants Local Sales Tax State/County Shared (HURF) Interest Miscellaneous Other Financina Sources Total 2010 FY 2011 FY 2012 Actual Budget Projected Budget 74.75 73.74 73.11 73.07 FY 2010 FY 2011 FY 2012 % Budget Projected Actual Budget to Budget $ 8987097 $ 1,207,466 $ 11190,827 $ 1,251,392 3.6% - 7101416 5831026 580,010 -18.4% - 285,129 2777545 252,573 -11.4% - 849,096 7837310 841,026 -1.0% - 675,697 5501172 568,210 -15.9% 27072,021 2,121,596 27085,401 2,583,381 21.8% 2,6217842 5,039,229 4,145,126 3,336,914 -33.8% 5067935 5851249 562,074 662,944 13.3% $ 6,098,895 $ 111473,878 $ 10,1777481 $ 1090769450 1 -12.2% 2011-2012 Annual Budget Program Budgets 96 Revenue Sources FY 2012 Expenditures by Category Planning Conservation & FY 2010 FY 2011 FY 2012 Budget Projected Actual Budget to Bud et $ 531141 $ 1,161, 392 $ 728, 032 $ 998,196 -14.1% 797,466 9531767 8977742 1,325,971 39.0% 40,676 133521700 11 040, 700 530,000 -60.8% 583,792 1, 297,100 6701960 1,112, 000 -14.3% 801,570 630,188 3981807 3671400 -41.7% 216671797 2,669,767 27669,767 2,376,464 -11.0% 181099 561505 11,343 11,200 -80.2% 217988 31,186 151626 32,500 4.2% 171661159 173927701 172061257 550,944 -60.4% $ 61150,688 $ 91545,306 $ 716399234 $ 79304,675 -23.5% 2011-2012 Annual Budget Program Budgets 96 FY 2012 Expenditures by Division FY 2012 Expenditures by Category Planning Conservation & 580,010----�_- Sustainability Capital Contingency 6% 252,573 2,331,130 ----- - - -- 150,000 Permitting2 3% 24% o /o 841,026 8% Inspection & Administration Compliance 1,251,392 568,210 O&M 12% 6% 2,195,178- ,195,178-23% 23% Transit Engineering Personnel 662,944 Operations 2,583,381 5,000,142 7% 3,336,914 26% o 51 /o 32% 2011-2012 Annual Budget Program Budgets 96 Highlights & Goals Mission We are committed to ensuring harmonious growth and the health, safety, and welfare of the public in a quality built environment by providing exceptional services enabling the greatest return on community investment. FY 2011 Highlights I FY 2012 Goals and Objectives Planning - Created the Conceptual Design Review process, associated code changes and complementary Design Standards - Completed code updates for the Sign Code, Residential Recreation Area Requirements and Neighborhood Commercial Zoning District - Redesign and completion of the Community Academy program - Completed the following code amendments; Public Art Requirements, Mixed Use Development and General Plan Amendment process Conservation & Sustainability - Completed the Environmentally Sensitive Lands Ordinance - Completed the Town energy efficiency and solar project which received a national recognition award - Installed grant funded electric vehicle charging stations - Completed a water harvesting system at Town Hall Permitting - Completed the integration of the previous three department's plan review and permitting process and staff to provide customers a one- stop -shop for permitting - Generated $784,000 in revenue for the Town and issued 1,375 permits - Assisted in the creation and implementation of the new Conceptual Design Review Board (CDRB) process - Working with multi -jurisdictional and industry to create a unified approach for permitting and installation of solar systems Inspection & Code Compliance - Completed the integration of the previous three department's inspection and compliance staff to provide better consistency and service to customers. - Fast tracked inspections, e.g. allowed Basis Charter School to open in four months - Programmed Permits Plus and InspecTrac systems to integrate the zoning and civil inspections and code compliance program - Reduced unresolved expired permits from 162 to 48 Engineering - Completed the construction of the following improvement projects: Lomas De Oro Wash, Northern & Hardy Roundabout, Magee Road , Calle Concordia bike lane & overlay, and La Canada overlay - Installed pedestrian count down heads at all signalized intersections - Completed 14.81 lane miles of fog & slurry seals, stress absorbing membranes, and overlay treatments Focus Area: Finance and Economic Development ■ Manage budget expenditures and revenue acquisitions to maintain a balanced budget ■ Assist in annexation efforts to support high quality development ■ Update the General Plan and Zoning Code to support economic development and land use goals ■ Ensure "guaranteed" performance of new energy saving equipment and to pay energy project debt service ■ Develop internal programs to encourage reduction of energy use and cost ■ Continue to streamline and improve the review and permitting process to promote business development ■ Continue to manage the Intergovernmental Agreement with the Regional Transportation Authority (RTA) to provide funding for transit related projects ■ Explore alternative funding sources supporting transit services ■ Secure outside funding through grants, federal, state, and local (Pima Association of Governments (PAG) and RTA) sources for projects ■ Perform in-house design, construction and construction administration for all town projects ■ Improve the stormwater bill collection process to minimize bad debt ■ Maintain heavy equipment and town vehicles in good to excellent condition ■ Evaluate new ways to reduce facilities, fleet and other maintenance costs ■ Implement the Environmentally Sensitive Lands Ordinance ■ Review and amend Town codes that pose a barrier to alternative energy and/or conservation ■ Create sustainability and energy design standards for future development Focus Area: Leadership and Communication ■ Provide effective citizen and community outreach and communication through the Community Academy, neighborhood meetings, HOA Forums, open houses, new notification procedures, training programs to the development industry, and effective use of the Town website ■ Seek opportunities to highlight success of sustainability program projects as models for the region ■ Increase sustainability and energy saving information to the public via Town website, Vista newsletter, and events ■ Increase staff cross training to provide outstanding customer services with dwindling resources ■ Continue staff training and certifications for high quality service and staff expertise ■ Prepare internal and external monthly reports to provide information on performance for all areas of the department 2011-2012 Annual Budget Program Budgets 97 Highlights & Goals (Continued) DIS FY 2011 Highlights (Continued) I FY 2012 Goals and Objectives (Continued) Operations - Crack -sealed 120 lane miles of paved streets - Completed monthly buffelgrass pulls - Completed complementary construction for the Town solar project - Installed switch gear to power the fuel island during power outages - Maintained all Town -owned vehicles, large equipment and facilities Stormwater Utility -Completed several drainage improvement projects: $1.4 million Lomas de Oro, Linda Vista, and the Pomegranate -Pistachio area - Provided outreach education for area schools, HOAs and others - Secured a federal grant for removal of buffelgrass and other invasive weeds Transit - Increased service productivity from 2.0 to 2.1 passengers/hour, provided 9,000 service hours, 4,870 passenger trips, and 133,000 miles - Partnered with RTA to provide Sun Shuttle service in February 2011, eliminating all previous trip denials - Created ability to accept donations through United Way Focus Area: Community Infrastructure ■ Partner with regional jurisdictions in the development and maintenance of quality infrastructure including the design of common arterial corridors ■ Maintain all Town facilities, roadways, multi -use and bike trail system, and drainage structures in excellent condition ■ Partner with the RTA to explore and develop transportation alternatives ■ Maintain the Overall Condition Index for the Town's roadway pavement and continue the pavement management program ■ Install the Traffic Signal Wireless System throughout the town ■ Continue to eliminate "storm hot spots' through drainage improvements to washes and drainage ways ■ Develop a long term replacement schedule for each town building ■ Work with RTA to develop alternative services for the growing number of residents that fall into categories not covered by ADA but in need of transit services ■ Meet all environmental quality requirements and OSHA standards in the Town's operations and maintenance services ■ Continue the West Nile mosquito testing program ■ Work with Highlands Mobile Home residents to develop mitigation plans to handle a 100 year flow in the wash inside of their HOA ■ Develop a floodplain management community rating system 2011-2012 Annual Budget Program Budgets 98 Measures & Indicators DIS Performance Measures FY 2010 FY 2011 FY 2012 Actual Estimate Projected Planning ► Percentage of plan reviews completed within establishec Goal 90% N/A 47% 80% timeframes (subdivision plats and CDRB submittals) ► Average calendar days from first review comments sent tc Goal Days to applicants (subdivision plats and CDRB submittals; 20 N/A 20 20 Conservation & Sustainability ► Financial savings from energy reduction projects for Town facilities ($164,000 N/A N/A $169,000 and Water Utility ($5,000) ► Grant funding received N/A $164,200 $150,000 Permitting ► Percentage of civil, zoning and building plan reviews completed Goal 90% N/A 91% 91% within established timeframes ► Average calendar days from first civil, zoning and building plan Goal Days submittal to first review comments sent to applicantE 20 N/A 11 12 ► Average number of consultant submittals from initial application Goal to approval 3 3.4 2 2.5 Inspection & Code Compliance ► Percentage of inspections completed on next business day for Goal 90% N/A 98% 95% requests received by 3:30pm from previous business dad ► Average calendar days from first zoning violation complaint to Goal Days investigation 90% of the time 2 2 1.5 2 ► Average calendar days from zoning case inspection to Goal Days voluntary compliance 15 15 14 15 ► Average calendar days from zoning case inspection to Goal Days forced compliance 90 90 66 66 ► Percentage of zoning violation cases voluntarily resolvec Goal 95% 98% 99% 98% Engineering ► Capital improvement projects funding from the planning stage througt $ 1.728 M $ 2.339 M $ 7.998 M design and construction managed by staff ► Road rehabilitation expenditures per paved lane milE $31,226 $34,149 $19,731 ► Percentage of completed road rehabilitation paved lane mileE 9% 7.6% 15% ► Overall Condition Index (OCI) rating for paved streets (rating goal >80, 78 75 75 ► Install Pan -Tilt- Zoom Cameras on all Traffic Signals 0% 46% 54% No. Re -stripe cross -walks / legends and symbols throughout Towr Goal 95% 90% 95% 95% Operations ► Street maintenance (crack -seal) lane miles completed 115 120 125 ► Facility repair expenditures per square foot of Town buildings maintainer $2.57 $2.70 $2.65 ► Percentage of work order requests completed within 5 business day,, Goal 90% 85% 85% 88% ► Total cost/mile to operate and maintain light vehicles, not includinc $0.35 $0.38 $0.41 PD vehicles (repair and fuel only) ► Total cost/mile to operate and maintain heavy vehicles (repair and fuel only N/A $0.96 $1.10 Stormwater ► Number of reduced/mitigated drainage problem areas out of 50 tota 7 8 5 identified town -wide Transit ► Total cost per passenger trip $32.38 $30.37 $32.00 ► Total subsidy per passenger trip $29.05 $26.99 $29.78 ► Percentage of requested reservations fulfilled Goal 100% 86% 98% 100% 2011-2012 Annual Budget Program Budgets Measures & Indicators (Continued) DIS Workload Indicators FY 2010 FY 2011 FY 2012 Actual Estimate Projected Planning ► Average initial reviews per FTE (Planners) N/A 33 34 ► Number of Zoning Code and Town Code text amendments N/A 12 10 ► Number of Rezoning / PAD cases N/A 10 15 ► Number of CDRB submittals N/A N/A 18 Conservation & Sustainability ► Average capital improvement project funded per FTE N/A $4,127,783 0 ► Average grant funding received per FTE N/A $164,200 $150,000 Permitting ► Number of Building Permits Issued 1,408 1,370 1,450 ► Average number of permits processed per FTE (Permit Technician) N/A 460 725 ► Average number of civil, building and zoning reviews per FTE (Plan Examiner) N/A 400 435 Inspection & Code Compliance ► Number of civil, building, and zoning inspections conducted N/A 15,465 16,250 ► Number of civil, building, and zoning inspections conducted per FTE (Inspector) N/A 12.5 13 ► Number of violations issued N/A 520 500 Engineering ► Average Engineering design and construction capital improvement $300,522 $449,808 $ 1.290 M projects funded per FTE ► Average Pavement Management capital projects funded per FTE $159,162 $311,250 $600,000 Operations ► Number of street maintenance work orders completed 710 670 700 ► Number of street maintenance work orders completed per FTE 65 58 63 ► Number of facilities work order requests completed 900 805 900 ► Number of facilities work order requests completed per FTE 450 343 419 ► Number of vehicles maintained (PD vehicles & motorcycles moved to PD budget FY12) 209 209 99 ► Number of heavy equipment maintained 52 52 52 Stormwater x ► Number of outfall stormwater structures inspected once per year 205 215 220 ► Number of mosquito traps set for testing West Nile virus 200 160 180 ► Number of town -owned property pollutant sources reported, investigated 0 0 0 and mitigated Transit ► Passengers per hour 2.0 2.1 2.2 ► Number of new riders 120 127 130 ► Percentage increase in passengers per hour N/A 5% 5% 2011-2012 Annual Budget Program Budgets 100 Organizational Chart TOWN ENGINEER ENGINEERING 1 I OPERATIONS TRANSP. ENGINEERING TRAFFIC ENGINEERING PAVEMENT MANAGEMENT STREET MAINTENANCE STORMWATER FLEET MAINTENANCE FACILITIES MAINTENANCE DEVELOPMENT & INFRASTRUCTURE SERVICES Department Director ADMINISTRATION DIS PLANNING PERMITTING INSPECTION & COMPLIANCE CURRENT & PLAN LONG RANGE REVIEW INSPECTION PLANNING CONSERVATION INTAKE, ISSUE & CODE TRANSIT & RECORD MGMT COMPLIANCE SUSTAINABILITY 2011-2012 Annual Budget Program Budgets 101 Program Budgets DIS - Administration FY 2011/2012 Expenditure and Staffing Changes Personnel Personnel costs decreased 6.3% due to the transfer of an office specialist to the Transportation Engineering program. Dperations & Maintenance Dperations & Maintenance increased 79.6°/x, as fleet costs that were previously budgeted as a transfer out (Other Financing Use) are now budgeted in Operations & Maintenance. Capital Capital decreased 96.9% due to completion of energy efficiency upgrades in FY 2011. Other Financing Uses Other Financing Uses increased 97% due to a $400K loan to the Townwide Roadway Development Impact Fee Fund for the widening of Lambert Lane. 2011-2012 Annual Budget Program Budgets 102 FY 2010 FY 2011 FY 2011 FY 2012 Variance Actual Budget Projected Budget to Budget .endituL.• Personnel $ 254,691 $ 4467200 Director, Dev. & Infrastruc. Svcs - 1.00 1.00 1.00 - Town Engineer 1.00 1.00 1.00 1.00 - Administration Coordinator 1.00 1.00 1.00 1.00 - Ombudsperson - 1.00 1.00 1.00 - Office Specialist 1.00 0.75 0.75 - 0.75 Total FTEs 3.00 4.75 4.75-r- 4.00 t J0.75), FY 2011/2012 Expenditure and Staffing Changes Personnel Personnel costs decreased 6.3% due to the transfer of an office specialist to the Transportation Engineering program. Dperations & Maintenance Dperations & Maintenance increased 79.6°/x, as fleet costs that were previously budgeted as a transfer out (Other Financing Use) are now budgeted in Operations & Maintenance. Capital Capital decreased 96.9% due to completion of energy efficiency upgrades in FY 2011. Other Financing Uses Other Financing Uses increased 97% due to a $400K loan to the Townwide Roadway Development Impact Fee Fund for the widening of Lambert Lane. 2011-2012 Annual Budget Program Budgets 102 FY 2010 FY 2011 FY 2011 FY 2012 Variance Actual Budget Projected Budget to Budget .endituL.• Personnel $ 254,691 $ 4467200 $ 4467200 $ 418,059 -6.3% Operations & Maintenance 1771180 235,673 219,034 423,333 79.6% Capital 38,639 322,560 3221560 10,000 -96.9% Other Financing Uses 4277587 2031033 2031033 4001000 97.0% Total Expenditures $ 8989097 $ 112079466 $ 11190,827 $ 112519392 3.6% FY 2011/2012 Expenditure and Staffing Changes Personnel Personnel costs decreased 6.3% due to the transfer of an office specialist to the Transportation Engineering program. Dperations & Maintenance Dperations & Maintenance increased 79.6°/x, as fleet costs that were previously budgeted as a transfer out (Other Financing Use) are now budgeted in Operations & Maintenance. Capital Capital decreased 96.9% due to completion of energy efficiency upgrades in FY 2011. Other Financing Uses Other Financing Uses increased 97% due to a $400K loan to the Townwide Roadway Development Impact Fee Fund for the widening of Lambert Lane. 2011-2012 Annual Budget Program Budgets 102 Program Budgets Planning Program Overview DIS - Planning Division The primary function of the Planning program is to ensure the proper implementation of adopted plans, policies and standards. Planning provides direction and support for the Planning and Zoning Commission, Conceptual Design Review Board, and Board of Adjustment. The planning team coordinates the review of development projects by various Town departments and divisions as well as external review agencies. Planning also prepares and analyzes amendments to the General Plan, Zoning Code, Planned Area Developments, and rezoning cases. Staff develops recommendations to promote the aesthetic, organized growth and development of the Town, and is responsible for the Community Academy. FY 2010 FY 2011 FY 2011 FY 2012 Variance Actual Budget Projected Budget to Budget Budget to Budget Division Manager, Planning - 0.80 0.80 1.00 0.20 Senior Planner - 3.00 3.00 3.00 - Principal Planner - 1.00 1.00 1.00 - Senior Office Specialist - 0.90 - - (0.90) Senior Office Assistant - 0.90 0.90 0.48 (0.42) Office Specialist - - - 1.00 1.00 Totals - .6 5.70 0.1 FY 2011/2012 Expenditure and Staffing Changes Operations & Maintenance Operations & Maintenance decreased 25% due to a reduced budget for outside professional services. 2011-2012 Annual Budget Program Budgets 103 FY 2010 FY 2011 FY 2011 FY 2012 Variance Actual Budget Projected Budget to Budget Personnel $ - $ 4977954 $ 432,888 $ 5011210 0.7% Operations & Maintenance - 1051100 46,170 78,800 -25.0% Ca ital - - - - 0.0% Total Expenditures - 79905 -3.8% FY 2011/2012 Expenditure and Staffing Changes Operations & Maintenance Operations & Maintenance decreased 25% due to a reduced budget for outside professional services. 2011-2012 Annual Budget Program Budgets 103 Program Budgets Annexations & Special Projects Program Overview DIS - Planning Division The Special Projects and Annexations program is responsible for special projects within the Town, annexation efforts, participation in economic development, public outreach, and other planning and zoning related issues. Beginning FY 2012, duties of this program are reallocated to the Development Section's Planning program and the Manager's Office. FY 2010 FY 2011 FY 2011 Actual Budget Projected FY 2012 Budget Variance to Bud et Division Manager, Planning Special Projects Coordinator Senior Office Assistant - 0.10 0.10 - 1.00 1.00 - 0.10 0.10 - - - (0.10) (1.00) 0.10 Total FTEs - 1.20 1.20 - (1.20) FY 2010 FY 2011 FY 2011 Actual Budget Projected FY 2012 Budget Variance to Bud et Personnel Operations & Maintenance Capital $ - $ 1051612 $ 1037318 - 11750 650 - - - $ - - - -100.0% -100.0% 0.0% Total Expenditures $ - $ 1079362 $ 103,968 $ =1-100.0% FY 2011/2012 Expenditure and Staffing Changes Personnel Personnel costs decreased 100%, as duties of this program will be absorbed by the Development Section's Planning program and the Manager's Office. Operations & Maintenance Operations & Maintenance decreased 100%, as these costs will be absorbed by the Development Section's Planning program and the Manager's Office. 2011-2012 Annual Budget Program Budgets 104 C] Program Budgets DIS - Conservation & Sustainability Conservation & Sustainability Program Overview The Office of Conservation and Sustainability is responsible for implementing conservation and environmental sustainability policies town -wide, energy efficiency programs, and seeking outside grants, appropriations and other federa funds. L j FY 2010 FY 2011 Actual Budget FY 2011 Projected FY 2012 Budget Variance to Budget Actual Budget Projected Budget Division Manager, Planning Cons. & Sustain. Administrator Senior Office Specialist - 0.10 - 1.00 - 0.10 0.10 1.00 - - 1.00 - (0.10) - 0.10 Total FTEs - 1.20 1.10 1.00 (0.20)- 0.20) FY 2011/2012 Expenditure and Staffing Changes Personnel Personnel costs decreased 15.4% due to realignment of staff time within program areas. Operations & Maintenance Operations & Maintenance decreased 6.8% due to a reduction in travel and training costs. 2011-2012 Annual Budget 105 Program Budgets FY 2010 FY 2011 FY 2011 FY 2012 Variance Actual Budget Projected Budget to Budget Personnel $ - $ 117,979 $ 110,495 $ 99,823 -15.4% Operations & Maintenance - 2,950 21850 2,750 -6.8% Capital - - - - 0.0% Contingency - 1641200 1647200 1501000 -8.6% Total Expenditures $ - $ 2859129 $ 277,545 $ 252,573 1 -11.4% FY 2011/2012 Expenditure and Staffing Changes Personnel Personnel costs decreased 15.4% due to realignment of staff time within program areas. Operations & Maintenance Operations & Maintenance decreased 6.8% due to a reduction in travel and training costs. 2011-2012 Annual Budget 105 Program Budgets Program Budgets Plan Review Program Overview DIS - Permitting Division All plan review is performed by the department's staff of certified plans examiners, licensed engineers and technicians. This team is responsible for the review of all commercial and residential construction plans for new and altered site work, utility infrastructure, buildings and other structures for compliance with the Zoning, Building and Town Codes and Ordinances. The following disciplines are included in the review: civil, architectural, structural, fire -resistive, life/safety, mechanical, plumbing, and electrical systems, zoning and ADA. Plan review is also provided for all development plans, preliminary and final plats, and improvement and grading plans. In addition, this team ensures implementation of the development approval decisions of the Conceptual Design Review Board and Town Council. FY 2010 FY 2011 FY 2011 FY 2012 Variance Actual Budget Projected Budget to Bud et $ - $ 561,880 $ 561,880 - 661920 12,184 - - - $ 577,505 45,825 - Division Manager, Permitting - 0.70 0.70 0.70 - Senior Civil Engineer - 1.00 1.00 1.00 - Engineering Design Reviewer - 1.00 1.00 1.00 - Plans Examiner II - 2.00 2.00 2.00 - Plans Examiner I - 1.00 1.00 1.00 - Zoning Plans Examiner - 1.00 1.00 1.00 - Senior Office Assistant - - - 0.48 0.48 Total FTEs - 6.70 6.70 7.18 0.48 FY 2010 FY 2011 FY 2011 Actual Budget Projected FY 2012 I Budget Variance to Bud et Personnel Operations & Maintenance Capital $ - $ 561,880 $ 561,880 - 661920 12,184 - - - $ 577,505 45,825 - 2.8% -31.5% 0.0% Total Expenditures $ - $ 628,800 $ 574,0641$ 623,330 -0.9% -------------- - FY 2011/2012 Expenditure and Staffing Changes Personnel Personnel costs increased 2.8% due to realignment of staff time within program areas. Operations & Maintenance Operations & Maintenance decreased 31.5% due to a reduced budget for outside professic 2011-2012 Annual Budget Program Budgets 106 Program Budgets Intake, Issuance & Records Mgmt Program Overview DIS - Permitting Division All permit applications are received and reviewed by the certified permit technicians to ensure all necessary documentation is included to provide a timely review. At each stage of review, they monitor, coordinate and issue comments until complete Once review is complete, they issue the permit and coordinate inspections. They also collect and release assurances posted to ensure that development occurs in a timely manner and in compliance with approved plans. This team of technicians is also responsible for records management in compliance with the State's records retention law. FY 2010 FY 2011 FY 2011 FY 2012 Variance Actual Budget Projected Budget to Budget 22,100 I -2.6% 1 Capital Division Manager, Permitting - 0.30 0.30 0.30 - Development Coordinator - 1.00 1.00 1.00 - Building Permit Tech - 2.00 2.00 2.00 - Total FTEs - 3.30 3.3oT 3.30 - FY 2010 FY 2011 FY 2011 1 FY 2012 1 Variance Actual Budqet Proiected Budaet to Budaet FYnP_nditllrPs Personnel $ - $ 197,611 $ 197,611 $ 195,596 -1.0% Operations & Maintenance - 227685 117635 22,100 I -2.6% 1 Capital - - - - 0.0% Total Expenditures $ - $ 2207296 $ 209,246 $ 217,696 -1.2% FY 2011/2012 Expenditure and Staff Operations & Maintenance Operations & Maintenance decreased 2.6% as part of Town -wide efforts 1 2011-2012 Annual Budget Program Budgets 107 Program Budgets Inspection Program Overview DIS - Inspection & Compliance Division All inspection is performed by the department's staff of certified inspectors and technicians. This team is responsible for the inspection of all permitted commercial and residential construction plans for new and altered site work, utility infrastructure, buildings and other structures for compliance with the Zoning, Building and Town Codes and Ordinances. The following disciplines are included in the inspections: civil, architectural, structural, fire -resistive, life/safety, mechanical, plumbing, and electrical systems, zoning and ADA. In addition, this team is responsible for inspection to ensure implementation of the development approval decisions of the Conceptual Design Review Board and Town Council. FY 2010 FY 2011 FY 2011 FY 2010 FY 2011 FY 2011 FY 2012 Variance Budget Actual Budget Projected Budget to Budget Personnel $ - $ 5127463 $ 4691025 Div. Mgr, Inspec. and Compl. - 0.80 0.80 0.80 - Building Inspector II - 4.00 4.00 4.00 - Civil Engineering Technician - 1.00 - - (1.00) Zoning Technician - 1.00 1.00 1.00 - Senior Office Assistant - 0.40 - 0.40 - Total FTEs - 7.20 5.80 6.20 1 (1.00) FY 2010 FY 2011 FY 2011 FY 2012 Variance Actual Budget Projected Budget to Budget Personnel $ - $ 5127463 $ 4691025 $ 4441699 1 -13.2% Operations & Maintenance - 207155 13,205 18,050 -10.4% Capital - 5,500 51500 1,500 -72.7% Total Expenditures $ - $ 538,118 $ 4877730 $ 4649249 -13.7% FY 2011/2012 Expenditure and Staffing Changes Personnel Personnel costs decreased 13.2% due to a position that became vacant during FY 2011 and will not be refilled. Operations & Maintenance !Operations & Maintenance decreased 10.4% due to a reduction in travel & training and minor equipment costs. 3 Capital Capital decreased 72.7% due to equipment replacements made in FY 2011 that will not be needed in FY 2012. 2011-2012 Annual Budget Program Budgets 108 • • • • • Adak Program Budgets 0% 1 /1 1 • r1 /1 DIS - Inspection & Compliance Division L.#uue uum Mance rro ram uvervlew This program is responsible for the monitoring and enforcement of the Zoning, Building and Town Codes and Ordinances for all construction, plant salvage, landscape, signage, and development performance standards. In addition, this program monitors and enforces the expiration process for all permits and permit applications. This program is supported by the technical expertise of the inspectors, plans examiners, and permit technicians. FY 2010 FY 2011 FY 2011 Actual Budget Projected FY 2012 Budget Variance to Budget_ Div. Mgr, Inspec. and Compl. Code Compliance Coordinator Senior Office Assistant - 0.20 0.20 - 1.00 1.00 - 0.60 - 0.20 1.00 0.60 - - - Total FTEs - 1.80 1.20 1.80 - FY 2010 FY 2011 FY 2011 Actual Budget Projected FY 2012 Budget Variance to Budget_ Personnel Operations & Maintenance Capital $ - $ 133,954 $ 601067 - 3,625 2,375 - - - $ 101,311 2,650 - -24.4% -26.9% 0.0% Total Expenditures $ - $ 137,579 $ 627442 $ 103,961 -24.4% FY 2011/2012 Expenditure and Staffing Changes Personnel Personnel costs decreased 24.4% due to the refilling of a position at a lower salary. Operations & Maintenance Operations & Maintenance decreased 26.9% due to a reduction in field supplies and me 2011-2012 Annual Budget 109 Program Budgets Program Budgets Transportation Engineering Program Overview DIS - Engineering Division Transportation Engineering is responsible for managing the design and construction of roadway projects. While most large )rojects are designed by consultants, the Engineering Division has a small in-house design section for small Town projects. This )rogram is responsible for the construction management for all the public roadway projects, large and small, as well as issuing -ight-of-way permits for all activities within the Town's right-of-way and the Pavement Management program. Personnel Operations & Maintenance Capital Total Expenditures FY 2010 FY 2011 FY 2011 FY 2012 1 Variance Actual Budqet Proiected I Budaet to Budaet $ 532,604 FY 2010 FY 2011 FY 2011 FY 2012 Variance 1217402 Actual Budget Projected Budget to Bud et 530,010 747,000 Engineering Division Manager 1.00 0.70 0.70 0.70 - Senior Civil Engineer 0.75 0.50 0.50 0.50 - Civil Engineer - - - 0.80 0.80 Senior Civil Engineer Technician 1.00 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 - - - 0.75 0.75 Total FTEs 5.75 5.20 5.20 1 6.75 1.55 Personnel Operations & Maintenance Capital Total Expenditures FY 2010 FY 2011 FY 2011 FY 2012 1 Variance Actual Budqet Proiected I Budaet to Budaet $ 532,604 $ 4421120 $ 4427120 $ 540,690 22.3% 1217402 961200 617905 58,900 1 -38.8% 530,010 747,000 7477000 1 11200,000 60.6% $ 111849016 $ 19285,320 $ 192519025 $ 117999590 40.0% I FY 2011/2012 Expenditure and Staffing Changes Personnel Personnel costs increased 22.3% due to realignment of staff time within program areas. Operations & Maintenance Operations & Maintenance decreased 38.8% due to a reduction in outside professional 1 Capital Capital increased 60.6% due to additional budget capacity for pavement preservation. 2011-2012 Annual Budget Program Budgets 110 Program Budgets Traffic Engineering Program Overview DIS - Engineering Division Traffic Engineering is a program within the Engineering Division. This program is responsible for maintaining and operating the Town's traffic intersection signals and lights, pavement markings, traffic signage, and traffic studies. FY 2010 Actual FY 2010 FY 2011 FY 2011 FY 2012 Variance Actual Budget Projected Budget to Budget_ -5.5% -1.3% 0.0% Total Expenditures Engineering Division Manager 0.10 0.10 0.10 0.10 - Senior Civil Engineer 0.25 0.50 0.50 0.50 - Civil Engineer 0.20 0.20 0.20 - (0.20) 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 - Senior Office Assistant 0.13 0.15 0.15 0.15 - Total FTEs 5.68 5.95 5.95 5.75 (0.20) FY 2010 Actual FY 2011 Budget FY 2011 Projected FY 2012 Budget Variance to Budget_ Personnel Operations & Maintenance Ca ital $ 377,610 2201940 1,500 $ 415,033 217,100 23250 $ 415,033 215,200 21250 $ 392,005 214,200 21250 -5.5% -1.3% 0.0% Total Expenditures $ 600,050 $ 6349383 $ 632,483 $ 608,455 -4.1% FY 2011/2012 Expenditure and Staffing Changes Personnel Personnel costs decreased 5.5% due to realignment of staff time within program areas. 2011-2012 Annual Budget Program Budgets 111 Program Budgets Pavement Management Program Overview DIS - Engineering Division Pavement Management program is responsible for operating the pavement management system and developing annual and long term schedules for surface treatments on Town streets to ensure optimal roadway driving conditions. FY 2010 Actual FY 2010 FY 2011 FY 2011 FY 2012 Variance Actual Budget Projected Budget to Bud et -11.0% 0.0% -100.0% Total Expenditures $ 287,955 $ 201,893 $ 2019893 $ 1759336 Engineering Division Manager 0.40 0.20 0.20 0.20 - Civil Engineer 0.80 0.20 0.20 - (0.20) Civil Engineer Designer 1.00 1.00 1.00 1.00 - Pavement Management Specialist 1.00 1.00 1.00 1.00 - Senior Office Assistant 0.13 - - - - Total FTEs 3.33 2.40 2.40 1 2.20 (0.20) FY 2010 Actual FY 2011 Budget FY 2011 Projected FY 2012 Budget Variance to Bud et Personnel Operations & Maintenance Capital $ 278,856 21340 67759 $ 195,143 17750 5,000 $ 1951143 11750 57000 $ 173,586 11750 - -11.0% 0.0% -100.0% Total Expenditures $ 287,955 $ 201,893 $ 2019893 $ 1759336 -13.2% FY 2011/2012 Expenditure and Staffing Changes Personnel Personnel costs decreased 11 % due to realignment of staff time within program areas. Capital Capital decreased 100% due to equipment replacements made in FY 2011 that will not be neec 2011-2012 Annual Budget Program Budgets 112 Program Budgets DIS - Operations Division btreei Maintenance rrogram uverview Street Maintenance program is responsible for maintaining the Town's streets and drainage ways. This includes roadway cracksealing and slurry seals, vegetation maintenance and removal. FY 2010 Actual FY 2010 FY 2011 FY 2011 FY 2012 Variance Actual Budget Projected Budget to Bud et -7.4% -21.9% 0.0% Total Expenditures $ 825,555 $ 954,481 $ 873,317 $ 840,753 Operations Division Manager 0.50 0.75 0.75 0.75 - Civil Engineer - 0.40 0.40 - (0.40) 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 - Sr. Heavy Equipment Operator 1.00 1.00 1.00 1.00 - Heavy Equipment Operator 4.00 4.00 4.00 4.00 - Senior Office Assistant 0.38 0.35 0.35 0.35 - Maintenance Worker 2.00 2.00 2.00 2.00 - Total FTEs 10.88 11.50 11.50 11.10 1 (0.40) FY 2010 Actual FY 2011 Budget FY 2011 Projected FY 2012 Budget Variance to Budget_ Personnel Operations & Maintenance Ca ital $ 580,253 2271455 17,847 $ 6567731 2971750 - $ 656,731 2167586 - $ 6081253 232,500 - -7.4% -21.9% 0.0% Total Expenditures $ 825,555 $ 954,481 $ 873,317 $ 840,753 -11.9% FY 2011/2012 Expenditure and Staffing Changes Personnel Personnel costs decreased 7.4% due to realignment of staff time within program areas. Operations & Maintenance Operations & Maintenance decreased 21.9% due to the transfer of certain stormwater-related maintenance expenditures to the Stormwater Utility Fund. 2011-2012 Annual Budget Program Budgets 113 Program Budgets Facilities Maintenance Program Overview DIS - Operations Division Facilities Maintenance 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. FY 2010 FY 2011 FY 2011 FY 2012 Variance Actual Budget Projected Budget to Bud et Personnel Operations & Maintenance Capital Facilities Maintenance Crew Leader 1.00 1.00 1.00 1.00 - Facilities Maintenance Tech 1.00 1.00 1.00 1.00 - Civil Engineer - 0.20 0.20 0.20 - Senior Office Assistant - 0.15 0.15 0.15 - Total FTEs 2.00 2.35 2.35 2.35 - FY 2010 Actual FY 2011 Budget FY 2011 Projected FY 2012 Budget Variance to Bud et Personnel Operations & Maintenance Capital $ 1091463 165,542 - $ 1321725 2001282 - $ 1321725 182,282 - $ 132,367 171,300 - -0.3% -14.5% 0.0% Total Expenditures $ 275,005 $ 3335007 $ 315,007 $ 303,667 -8.8% FY 2011/2012 Expenditure and Staffing Changes Operations & Maintenance Operations & Maintenance decreased 14.5% due to a reduction in custodial services. 2011-2012 Annual Budget Program Budgets 114 Program Budgets DIS - Operations Division Fleet Maintenance The Fleet Maintenance program area is set up as an internal service fund. 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. The Fleet Maintenance program area is responsible for the 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. (Beginning FY 2012, the Police Department's fleet maintenance costs will be budgeted directly in the Police Department). Fleet Maintenance Mechanic III Fleet Maintenance Mechanic II Senior Office Assistant FY 2010 Actual FY 2011 Budget FY 2011 Projected FY 2012 Budget 1 Variance to Budget Variance to Budget_ Actual Budget 1.00 1.00 1.00 1.00 1.00 1.00 0.37 0.35 0.35 1.00 - 0.35 - (1.00) - Total FTEs 2.37 2.35 2.35 1.35 1 (1.00) FY 2011/2012 Expenditure and Staffing Changes Personnel Personnel costs decreased 43.3% due to the transfer of one position to the Police Department. Operations & Maintenance Operations & Maintenance decreased 51.4% due to expenditures that have been transferred to the Police Department. 2011-2012 Annual Budget 115 Program Budgets FY 2010 FY 2011 FY 2011 FY 2012 Variance Variance to Budget_ Actual Budget Projected Budget to Budget $ 8719668 $ 8749968 $ 8749968 $ 4369271 -50.1% Personnel $ 139,672 $ 138,561 $ 1387561 $ 78,621 -43.3% Operations & Maintenance 731,996 736,407 7367407 3571650 -51.4% Total Expenditures $ 871,668 $ 874,968 $ 874,968 $ 436,271 -50.1% FY 2011/2012 Expenditure and Staffing Changes Personnel Personnel costs decreased 43.3% due to the transfer of one position to the Police Department. Operations & Maintenance Operations & Maintenance decreased 51.4% due to expenditures that have been transferred to the Police Department. 2011-2012 Annual Budget 115 Program Budgets Revenue Sources FY 2010 FY 2011 Actuals Budget Projected FY 2012 Budget Variance to Budget_ Other Financing Sources Charges for Services Miscellaneous $ 864,159 $ 8747968 $ 874,968 - - - 77509 - - $ - 436,271 - -100.0% 0.0% 0.0% Total Revenues $ 8719668 $ 8749968 $ 8749968 $ 4369271 -50.1% FY 2011/2012 Expenditure and Staffing Changes Personnel Personnel costs decreased 43.3% due to the transfer of one position to the Police Department. Operations & Maintenance Operations & Maintenance decreased 51.4% due to expenditures that have been transferred to the Police Department. 2011-2012 Annual Budget 115 Program Budgets Program Budgets DIS - Operations Division Stormwater Utility R&I-V M'_ - � The Stormwater Utility program is set up as an Enterprise Fund. This program 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 program also coordinates with federal, state and local government agencies. Does not include non-cash outlays for depreciation Variance to Bud et 0.0% 68.0% -52.3% -100.0% -39.0% FY 2010 FY 2011 FY 2011 FY 2012 Variance FY 2012 Actual Budget Projected Bud et to Budget Stormwater Engineer 1.00 1.00 1.00 Budget Personnel 1.00 - Operations Division Manager - 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 - Office Specialist - 0.25 0.25 0.25 - Total FTEs 3.00 3.50 3.50 3.50 - Does not include non-cash outlays for depreciation Variance to Bud et 0.0% 68.0% -52.3% -100.0% -39.0% FY 2010 FY 2011 FY 2011 FY 2012 Revenue Sources FY 2010 FY 2011 Actual Budget Projected Actual Budget Projected Budget Personnel $ 208,914 $ 2711877 $ 271,877 Total Revenues $ 271,973 Operations & Maintenance 1681960 2437368 173,210 408,750 Capital 219,736 2,2521724 11527,943 1,075,500 Other Financing Uses 52,004 108,804 108,804 - Total Expenditures $ 649,614 $ 29876,773 $ 290817834 $ 1,756,223 Does not include non-cash outlays for depreciation Variance to Bud et 0.0% 68.0% -52.3% -100.0% -39.0% FY 2011/2012 Expenditure and Staffing Changes Operations & Maintenance Operations & Maintenance increased 68% due to an increase in stormwater maintenance projects, as well as fleet costs, which were previously budgeted as an other financing use. Capital Capital decreased 52.3% due to completion of several townwide drainage projects. Other Financing Uses Other Financing Uses decreased 100% due to fleet costs that are now budgeted as operations & maintenance. 2011-2012 Annual Budget Program Budgets 116 I Revenue Sources FY 2010 FY 2011 Actual Budget Projected FY 2012 Budget Variance to Bud et Federal Grants State Grants Charges for Services Interest $ 401676 141,618 745,649 1,210 $ 1,188,500 9301100 7433500 1,500 $ 876,500 4137840 7447700 500 $ 380,000 575,000 751,000 500 -68.0% -38.2% 1.0% -66.7% Total Revenues $ 929,153 $ 27863,600 $ 27035,540 $ 19706,500 -40.4% FY 2011/2012 Expenditure and Staffing Changes Operations & Maintenance Operations & Maintenance increased 68% due to an increase in stormwater maintenance projects, as well as fleet costs, which were previously budgeted as an other financing use. Capital Capital decreased 52.3% due to completion of several townwide drainage projects. Other Financing Uses Other Financing Uses decreased 100% due to fleet costs that are now budgeted as operations & maintenance. 2011-2012 Annual Budget Program Budgets 116 • • Program Budgets DIS Transit Division The Transit Division is responsible for providing a locally run, reasonably priced service to enable our residents with disabilities, and those who are older and transportation dependent, to achieve mobility. This para -transit service is provided via the Town's Coyote Run Transit Service. FY 2010 FY 2011 FY 2012 1 Variance Ar:tual I Ri jrInPt PrniPntpd I Ri OnPt to Ri irinPt LTAF FY 2010 FY 2011 FY 2011 FY 2012 Variance 0.0% Actual Budget Projected Budget to Budget 50,000 0.0% Transit Services Administrator 1.00 1.00 1.00 1.00 - Dispatcher 1.00 1.00 1.00 1.00 - Lead Transit Driver 1.00 1.00 1.00 1.00 - Driver 4.74 4.74 7.11 7.11 2.37 Total FTEs 7.74 7.74 10.11 10.11 2.37 FY 2010 FY 2011 FY 2012 1 Variance Ar:tual I Ri jrInPt PrniPntpd I Ri OnPt to Ri irinPt LTAF FY 2010 FY 2011 FY 2011 FY 2012 Variance 0.0% Actual Budget Projected Budget to Budget 50,000 0.0% , W001mm- Personnel $ 3961771 $ 3977399 $ 429,129 $ 464,444 16.9% Operations & Maintenance 281716 607850 331900 156,620 157.4% Capital 41024 477000 191045 41,880 -10.9% Other Financing Uses 77,424 807000 80,000 - -100.0% Total Expenditures $ 506,935 $ 585,249 $ 562,074 1 $ 662,9441 13.3% FY 2010 FY 2011 FY 2012 1 Variance Ar:tual I Ri jrInPt PrniPntpd I Ri OnPt to Ri irinPt LTAF $ 164,355 $ - $ 34,944 $ - 0.0% RTA Reimbursement 597162 501000 767487 50,000 0.0% Fare Box 51,817 34,545 507400 399500 14.3% Interest 17208 11800 164 - -100.0% Miscellaneous 1 18,500 634 22,500 21.6% General Fund Subsidy 3023000 400,000 2137556 49,825 -87.5% Highway Fund Subsidy - 527929 521929 50,193 -5.2% Bed Tax Fund Subsidy - - - 4501926 0.0% Total Revenues -F$-578,543 $ 557,774 $ 429,114 $ 6621944 18.9% -] FY 2011/2012 Expenditure and Staffing Changes Personnel Personnel costs increased 16.9% due to the hiring of additional drivers for Sun Shuttle service expansion. This service expansion is funded through an intergovernmental agreement with Pima County's Regional Transportation Authority. Operations & Maintenance Operations & Maintenance increased 157.4% due to fleet costs, which were previously budgeted as an other financing use. Other Financing Uses Other Financing Uses decreased 100% due to fleet costs, which are now budgeted in operations & maintenance. 2011-2012 Annual Budget 117 Program Budgets Finance rOMM401, 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 acts as the purchasing oversight agent for the Town. Finance Administration Accounting Budgeting Procurement Total FY 2010 FY 2011 FY 2012 Actual Budget Projected Budget 7.00 7.00 7.00 7.00 jkoicM&v FY 2010 FY 2011 FY 2012 % Budget Projected Actual Budget to Budget $ 175,967 $ 161,656 $ 157,156 $ 159,387 -1.4% 320,637 294,332 293,332 2945487 0.1% 173,083 158,471 157,971 154,963 -2.2% 1137763 113,154 1137154 113,362 0.2% $ 7839450 $ 7279613 $ 7219613 $ 7229199 -0.7% FY 2010 Actual FY 2011 Budget Projected FY 2012 Bud et % to Bud et Sales Tax Audit Recovery Fees $ 788,434 $ 2007000 $ 100,000 $ 100,000 -50.0% $ 788,434 $ 200,000 $ 1009000 $ 100,000 -50.0% 2011-2012 Annual Budget Program Budgets 118 FY 2012 Expenditures by Program FY 2012 Expenditures by Category Procurement 113,362O&M 16% Administration --- - 159,387 105,960-- 15% Budget 154,963 21% Personnel Accounting 616,239 294,487 85% 41% 2011-2012 Annual Budget Program Budgets 118 Highlights & Goals Mission 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. FY 2011 Highlights I FY 2012 Goals and Objectives - Received the Achievement of Excellence in Procurement Award for the third consecutive year - Surplus auctions generated $65,235 in revenue and $5,153 in sales tax - Received Distinguished Budget Presentation Award from Government Finance Officers Association (GFOA) for the third consecutive year - Received GFOA Certificate of Achievement for Financial Reporting Excellence for FY 2009/2010 - Received an unqualified "clean" audit opinion for FY 2009/2010 financial statements - Performed Parks & Recreation program cost recovery analysis resulting in fee increases to improve cost recovery - Completed the issuance of New Clean Renewable Energy Bonds - Direct Payment for Town's solar photovoltaic project - Received an Outstanding Achievement in Local Government Innovation Award. This recognition is from the Alliance for Innovation recognizing the Energy Efficiency and Solar Project. - Continued use of cooperative purchasing agreements resulting in cost savings and increased procurement efficiency - Implemented the Governmental Accounting Standards Board (GASB) Statement 54 which reclassifies the Town's fund balance reserves - Revised the Town's financial policies to comply with the GASB Statement 54 - Successfully diversified the Town's investment portfolio with PFM Asset Management resulting in increased interest income - Enhanced the Town's financial reporting with the implementation of the online Financial Dashboards. The dashboards are a monthly report of the town's overall financial condition. Focus Area: Finance and Economic Development ■ Prepare annual 5 -year forecast of revenues and expenditures ■ Clearly identify recurring vs. one-time revenue and expenditures for proper alignment in budget with the goal of achieving a structurally balanced budget ■ Regularly evaluate program cost recovery and user fee levels to target maximum cost recovery ■ Per Council direction, continue to evaluate opportunities to diversify Town's revenue base ■ Continue utilization of cooperative purchasing agreements and competitive bidding for products and services to achieve cost savings and procurement standardization and efficiencies ■ Prepare timely financial and budgetary performance reports ■ Assist departments in monitoring their program performance measures established in FY 2010 ■ Prepare fiscal impact analysis of potential annexation scenarios Focus Area: Community Infrastructure ■ Maintain an accurate inventory database with Town -wide infrastructure valuations and useful lives ■ Evaluate cost efficient financing alternatives to pay for Town infrastructure construction ■ Prepare and annually update the Town's 5 -year Capital Improvement Plan Focus Area: Leadership and Communication ■ Participate in leadership development opportunities ■ Participate in public outreach efforts to enhance community knowledge and understanding of Town budgetary issues and program specific issues ■ Participate in joint Council and staff workshops to ensure good communication and effective implementation goals ■ Continue use of Town's website as a repository for financial documents, reports and information 2011-2012 Annual Budget Program Budgets 119 Measures & Indicators Performance Measures Finance Workload Indicators ► Number of Procurement protests filed and sustained ► Number of cooperative purchasing agreements utilized with other governmental jurisdictions ► Number of Accounts Payable checks processed ► Number of invoices paid FY 2010 FY 2010 FY 2011 FY 2012 Estimate 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 17 18 19 Association Certificate of Achievement for Excellence in Financial Reporting ► Consecutive years awarded the Government Finance Officers 2 3 4 Association Distinguished Budget Award ► Percentage variance between mid -year revenue 2.6% 1.2% 1.0% forecast and actual fiscal year-end revenue for all tax -based funds ► Percentage of internal customers rating Procurement quality as 100% 100% 100% excellent or good ► Percentage of internal customers rating Procurement timeliness as 100% 100% 100% excellent or good ► Standard and Poor's (S&P) and Fitch bond ratings AA- S&P AA- S&P AA- S&P A+ Fitch AA- Fitch AA- Fitch Workload Indicators ► Number of Procurement protests filed and sustained ► Number of cooperative purchasing agreements utilized with other governmental jurisdictions ► Number of Accounts Payable checks processed ► Number of invoices paid FY 2010 FY 2011 FY 2012 Actual Estimate Projected 0 0 0 45 40 45 5,466 51162 57000 147773 137951 13,514 2011-2012 Annual Budget Program Budgets 120 Organizational Chart PROCUREMENT ACCOUNTING Finance BUDGETING 2011-2012 Annual Budget Program Budgets 121 Program Budgets Administration Program Overview Finance F dministration program of the Finance Department provides leadership and resources to support all divisions the Finance Department, oversees the debt management activities of the Town, and administers the Town's ment program. This program also participates in a variety of other administrative and special projects ted by Town management and the Mayor and Council. . . may, Finance Director Total FTEs FY 2010 FY 2011 FY 2011 Actual Budget Projected 1.00 1.00 1.00 1.00 1.00 1.00 FY 2012 Variance Bud et to Bud et 1.00 - 1.00 - FY 2011/2012 Expenditure and Staffing Changes Operations & Maintenance Operations & Maintenance decreased 19.4% due to a reduced budget for office supplies. 2011-2012 Annual Budget Program Budgets 122 FY 2010 FY 2011 FY 2011 FY 2012 Variance Actual Budget Pro ected Bud et to Bud et Personnel $ 169,817 $ 1477756 $ 147,756 $ 148,187 0.3% Operations & Maintenance 4,825 13,900 91400 11,200 -19.4% Capital 1,325 - - - 0.0% Total Expenditures $ 1759967 $ 1619656 $ 1579156 $ 1599387 -1.4% FY 2011/2012 Expenditure and Staffing Changes Operations & Maintenance Operations & Maintenance decreased 19.4% due to a reduced budget for office supplies. 2011-2012 Annual Budget Program Budgets 122 Program Budgets Accounting Program Overview Finance E Accounting program of the Finance Department maintains efficient accounting systems and controls and orms the following activities: payroll and accounts payable processing, accounts receivable, annual audit dination and financial statement preparation. Personnel Operations & Maintenance Capital FY 2010 FY 2011 FY 2011 FY 2012 Variance Actual Budget Pro ected Bud et to Bud et $ 210,487 84,000 - 0.1% 0.0% 0.0% Total Expenditures Af- I T"-- W' Accounting Supervisor 1.00 1.00 1.00 1.00 - Senior Accountant 1.00 1.00 1.00 1.00 - Accounting Clerk 1.00 1.00 1.00 1.00 - Total FTEs 3.00 3.00 3.00 1 3.00 - Personnel Operations & Maintenance Capital FY 2010 FY 2011 FY 2011 Actual Budget Pro ected FY 2012 Bud et Variance to Bud et $ 231,580 $ 210,332 $ 210,332 891057 847000 837000 - - - $ 210,487 84,000 - 0.1% 0.0% 0.0% Total Expenditures $ 3209637 $ 2947332 $ 2939332 $ 2949487 0.1% 2011-2012 Annual Budget Program Budgets 123 Program Budgets Budgeting Program Overview Finance The Budgeting program of the Finance Department is responsible for preparation and monitoring of the Town's annual budget. Duties of this program include revenue and expenditure analysis, forecasting and modeling, capital improvement plan compilation, performing cost/benefit analyses, and preparing special financial studies and reports. FY 2010 FY 2011 FY 2011 Actual Budget Projected FY 2012 Budget Variance to Bud et FY 2012 Variance to Budget Budget & Management Analyst Finance Analyst 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 - - Total FTEs 2.00 2.00 2.00 2.00 - FY 2010 Actual FY 2011 Budget FY 2011 Projected FY 2012 Variance to Budget -Budget Personnel Operations & Maintenance Ca ital $ 166,305 6,778 - $ 152,321 6,150 - $ 152,321 5,650 - $ 148,813 6,150 - -2.3% 0.0% 0.0% Total Expenditures $ 1735083 $ 158,471 $ 1579971 $ 1549963 -2.2% FY 2011/2012 Expenditure and Staffing Changes M..,.___...__.„a...... , Personnel .Personnel costs decreased 2.3% due to a change in benefits coverage of an employee. 2011-2012 Annual Budget Program Budgets 124 Program Budgets Procurement Program Overview Finance The Procurement division administers the timely procurement of supplies, services and construction needed by Town departments in accordance with the Town Code, Standard Operating Procedure, and all other federal, state and local laws, policies and procedures. One of the primary purposes of this function is to maximize the buying power of the Town and minimize inefficiencies in the purchasing process. FY 2010 FY 2011 FY 2011 1 FY 2012 1 Variance Actual Budget Proiected Budget to Budget Procurement Administrator 1.00 1.00 1.00 1.00 - Total FTEs 1 1.00 1.00 1.00 1.00 1 - FY 2011/2012 Expenditure and Staffing Changes Operations & Maintenance Operations & Maintenance increased 2.4% due to increased memberships and subscriptions costs. 2011-2012 Annual Budget Program Budgets 125 FY 2010 FY 2011 FY 2011 FY 2012 Variance Actual Budget Projected Budget to Bud et Personnel $ 108,816 $ 108,654 $ 108,654 $ 108,752 0.1% Operations & Maintenance 4,947 4,500 4,500 4,610 2.4% Capital - - - - 0.0% Total Expenditures $ 1139763 $ 113,154 $ 113,154 $ 113,362 0.2% FY 2011/2012 Expenditure and Staffing Changes Operations & Maintenance Operations & Maintenance increased 2.4% due to increased memberships and subscriptions costs. 2011-2012 Annual Budget Program Budgets 125 General Administration M -- The General Administration budget accounts for certain overhead costs such as utility expenses, fleet charges, and general liability insurance. It also allocates monetary transfers to subsidize various funds, i.e. debt service and capital projects. FY 2010 FY 2011 FY 2011 1 FY 2012 1 Variance Actual Budqet Proiected Budqet to Budget Operations & Maintenance 116107717 1,5197625 113157174 2,0917767 37.7% Capital 163,939 950,226 9507226 50,000 -94.7% Contingency - - 117,816 - 0.0% Other Financing Uses 47635,268 9891047 8147153 223,352 -77.4% Total Expenditures $ 6,409,924 $ 3,458,898 $ 3,197,369 $ 2,365,119 -31.6% FY 2011/2012 Expenditure Changes s Operations & Maintenance Operations and Maintenance increased 37.7% to provide capacity for a rebate of development fees per contract. Capital Capital decreased 94.7% due to completion of budgeted energy efficiency upgrades in FY 2011. Other Financing Uses Other Financing Uses decreased 77.4%, as fleet costs that were previously budgeted as a transfer out (Other Financing Use) are now budgeted in Operations & Maintenance, with the Police Department's portion of fleet costs budgeted directly in the Police Department's budget. Additionally, all expenditures for the Town's Coyote Run transit system are now budgeted in the General Fund, and therefore, a transfer out to the Transit Fund is no longer required. 2011-2012 Annual Budget Program Budgets 126 Human Resources The Human Resources Department includes three divisions, providing a full range of services for Town employees. The Administration Division provides policy guidance including compliance, performance and compensation management plus training and development; the Personnel Services Division provides staff planning, recruiting, and benefits programs services; the Safety and Risk Management Division provides safety and risk management services. Total FY 2010 FY 2011 FY 2012 Actual Bud et Projected Budget 4.00 1 5.00 5.00 5.00 11 WA ' •• FY 2010 FY 2011 FY 2012 % Actual Budqet Proiected Budqet to Budqet Administration $ 213,687 $ 244,619 $ 224,087 $ 247,366 1 1.1% Personnel Services 35,491 137,121 129,121 1311472 -4.1 Safety and Risk Management 1 166,896 1021449 1021449 103,811 1 1.3% I $ 4167074 I $ 4849189 $ 4557657 $ 4829649 1 -0.3% I FY 2012 Expenditures by Program FY 2012 Expenditures by Category Personnel Services O&M 131,472 76,915 27% 16% Administration 247,366 51% Safety & Risk Management 103,811 Personnel �- 405,734 22% 84% 2011-2012 Annual Budget Program Budgets 127 Highlights & Goals Mission Human Resources We provide a complete suite of human resource services from recruitment through retirement. This includes attracting staff with the skills, knowledge and abilities to accomplish the Town's strategic goals; providing policy and procedure administration and compliance, compensation and benefits, training and education, performance management, employee relations, and safety and risk management assistance. Our aim is that all Town employees have the resources needed to improve, develop and continue to add value for the Town's changing needs. FY 2011 Highlights I FY 2012 Goals and Objectives — Improved the collection of data and subrogation of claims resulting from damage to Town property by creating a formal database — Conducted training and investigative follow-up with the fleet safety program and accident investigation to reduce accident frequency, lost time injuries, vehicle inoperability and cost of insurance deductibles — Implemented the Occupational Safety and Health Manual (OSHM). Focus will be on training and supervision to enhance safer work practices and reduce workers compensation costs, which will keep our workforce healthy and comfortable. — Created and delivered training, mentoring and support to supervisory staff concerning all applicable OSHM policies — Created and delivered training, mentoring and support to supervisory staff concerning fiduciary responsibilities and collective impact on best risk management practices — Implemented NeoGov software system for the hiring process — Developed and implemented a volunteer and intern usage program across the organization — Negotiated new insurance contract resulting in $100,000+ savings for property casualty and worker's compensation — Delivered quarterly new employee orientation combined with development of an employee resource guide — Conducted negotiations with multiple health care providers resulting in employees receiving a cafeteria plan model of benefits with no increased financial impact to employees or the Town — Successfully completed the first annual employee satisfaction survey — Established a Town -wide employee training calendar — Established the First Look Team as part of the Innovations Team implementation — Began the use of assessment tools for communication education — Conducted research pay adustments for two classifications within the Town classification and compensation plan — Managed and facilitated PSPRS, ASRS and CORP retirement boards Focus Area: Finance and Economic Development ■ Create and implement new inventory tracking forms for annual insurance renewal audit ■ Create and implement the return to work / light duty policy changes ■ Facilitiate Town wellness program and increase employee involvement leading to lower healthcare costs Focus Area: Leadership and Communication ■ Standardize the Family and Medical Leave Act (FMLA) process by incorporating the Department of Labor standardized forms, developing a tracking system with the MUNIS Town operating system, and ensuring employees and supervisors receive training on new process and procedures ■ Develop and conduct training needs assessment and develop Town training plan ■ Conduct analysis of Town policies and procedures to identify discrepancies and take corrective action ■ Facilitate Career Ladder Squad as part of Innovations Team ■ Implement Town -wide use of SharePoint software system ■ Administer and assess Talk of the Town internal employee communication tool and incorporate changes as needed ■ Continue Occupational Safety and Health Manual chapter development ■ Provide retirement savings education to Town employees ■ Implement employer requirements established by Health Care Reform ■ Educate employees about Health Care Reform impacts 2011-2012 Annual Budget Program Budgets 128 Measures & Indicators Performance Measures Human Resources Workload Indicators ► Number of job applications received Number of job interviews conducted ► Number of new hires (includes seasonal and part-time employees) FY 2010 FY 2010 FY 2011 FY 2012 Estimate Actual Estimate Projected ► Dollar amount of health insurance claims per FTE No Data $367 $367 #► Number of traffic accidents involving Police vehicles per 100,000 0.93 0.97 0.92 miles driven ► Number of traffic accidents involving non -Police vehicles per 100,000 0.58 1.25 0.65 miles driven ► Number of workers compensation claims 21 26 24 No, Percentage of employee turnover 12.0% 12.0% 12.0% ► Number of hours of leadership and supervisory training N/A 12 450 (Implemented use of MUNIS ERP software to track beginning FY 2012) ► Average years of tenure (employee retention) in workforce 20-27yrs 15-19.9 yrs 10-14.99 yrs 5-9.99 yrs 0-4.99 yrs 15 26 61 122 93 ► Number of sick leave hours used in workforce per month July 1270 Jan 1421 (FY 2011) Aug 1264 Feb 1901 Sept 1641 Mar 2018 Oct 2363 Apr 2750 Nov 1322 May 1873 Dec 1826 Jun 1299 * New performance measure for FY 2011; prior fiscal year data not available Workload Indicators ► Number of job applications received Number of job interviews conducted ► Number of new hires (includes seasonal and part-time employees) FY 2010 FY 2011 FY 2012 Actual Estimate Projected 554 581 581 129 135 135 33 35 35 2011-2012 Annual Budget Program Budgets 129 Organizational Chart Human Resources 2011-2012 Annual Budget 130 Program Budgets Program Budgets Human Resources Haminlstratlon rro ram uvervlew The Administration Division partners with Town management in developing organization improvements; develops and implements policies and procedures; designs and administers annual compensation and classification plans; administers the performance management process; consults with supervisors on employee relations and grievance resolutions; manages disciplinary procedures; provides or coordinates ongoing training and development opportunities; provides orientation programs; partners with management to develop succession plans or performance improvement plans; and negotiates with public safety employee representatives. FY 2010 FY 2011 FY 2011 Actual Budget Projected FY 2012 Budget Variance to Budget. FY 2012 Budget Variance to Budget Human Resource Director Employee & Org. Dev. Analyst 1.00 1.00 1.00 - 1.00 1.00 1.00 1.00 - Total FTEs 1.00 2.00 2.00 2.00 - FY 2010 Actual FY 2011 Budget FY 2011 Projected FY 2012 Budget Variance to Budget Personnel Operations & Maintenance Capital $ 162,893 48,743 2,051 $ 199,424 45,195 - $ 178,117 45,195 775 $ 198,091 49,275 - -0.7% 9.0% 0.0% Total Expenditures $ 2137687 $ 244,619 $ 224,087 $ 2479366 1 1.1 __U ------------------- __..,._ __..._ .....__. FY 2011/2012 Expenditure and Staffing Changes Operations & Maintenance Operations & Maintenance increased 9% due to an increase in employee tuition reimbursement costs. 2011-2012 Annual Budget Program Budgets 131 Program Budgets Personnel Services Program Overview Human Resources This division partners with supervisors to plan staffing needs, creates and updates job descriptions; administers NEOGOV software; advertises for open positions, assists in applicant selection, schedules and conducts interviews, coordinates background checks, communicates with applicants and newly selected staff members; administers tuition reimbursement; coordinates the employee assistance program, oversees the Human Resources module of the MUNIS Enterprise Resource Planning (ERP) system, administers the workers compensation program, and coordinates employee recognition and special events. The division also negotiates and administers employee benefits; Consolidated Omnibus Budget Reconciliation Act (COBRA) health coverage administration; leave administration including Family and Medical Leave Act (FMLA), annual leave, accrual, sick time used, donation of leave time, etc. FY 2010 FY 2011 FY 2011 1 FY 2012 1 Variance Actual Budqet Proiected Budaet to Budget Human Resource Specialist 1.00 2.00 2.00 2.00 - Total FTEs 1.00 2.00 2.00 2.00 - FY 2010 Actual FY 2011 Budget FY 2011 Projected FY 2012 Budget Variance to Budget Personnel Operations & Maintenance Capital $ 23,798 11,693 - $ 102,746 34,375 - $ 102,746 26,375 - $ 107,097 24,375 - 4.2% -29.1% 0.0% Total Expenditures $ 357491 $ 137,121 $ 1297121 $ 131,472 -4.1 % FY 2011/2012 Expenditure and Staffing Changes Personnel Personnel costs increased 4.2% due to changes in benefits coverage of each employee. Operations & Maintenance Operations & Maintenance decreased 29.1 % due to the transfer of a portion of recruitment and advertising costs to t General Administration. 2011-2012 Annual Budget Program Budgets 132 Program Budgets Safety and Risk Management Program Overview Human Resources The Safety & Risk Management Division administers Town -wide drug testing as required; ensures Arizona Division of Occupational Safety and Health (ADOSH) compliance; and oversees risk management and workplace safety training. FY 2010 FY 2011 FY 2011 Actual Budget Projected FY 2012 Budget Variance to Budget FY 2012 Variance Safety & Risk Manager Human Resource Specialist 1.00 1.00 1.00 1.00 - - 1.00 - - - Total FTEs 2.00 1.00 1.00 1.00 - FY 2010 FY 2011 FY 2011 FY 2012 Variance Actual Budget Projected Budget to Budget Personnel $ 144,896 $ 100,514 $ 100,514 $ 100,546 0.0% Operations & Maintenance 22,000 1,935 17935 3,265 68.7% Ca ita I - - - - 0.0% Total Expenditures $ 1667896 $ 1029449 $ 1029449 $ 103,811 1.3% FY 2011/2012 Expenditure and Staffing Changes Operations & Maintenance Operations & Maintenance increased 68.7% due to increases in travel & training, as well as memberships & subscriptions. 2011-2012 Annual Budget 133 Program Budgets Information Technology 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. Administration GIS Services Technical Services Business Applications & Development Telecommunications Total FY 2010 FY 2011 FY 2012 Actual Budget Projected Bud et 8.00 1 8.00 8.00 7.00 FY 2010 FY 2011 FY 2012 % Budget Projected Actual to Budget $ 311,606 $ 362, 900 $ 362,900 -Budget $ 375,859 3.6% 185, 234 146,670 146, 670 148,599 1.3% 3037138 3171642 317,642 441,653 39.0% 159,839 174,394 1647394 166,186 -4.7% 1271980 118, 500 106, 500 120,500 1.7% $1,087,797 1 $1,1207106 $1,098,106 [-$19252,797 11.8% FY 2012 Expenditures by Program Technical Services GIS Services 441,653 148,599 - 35% 12% Administration 375,859 30% Business Appl & Dev 166,186 13% Telecom - 120,500 10% FY 2012 Expenditures by Category Capital 230,000- 18% O&N 449,7 36% Personnel 573,047 46% 2011-2012 Annual Budget Program Budgets 134 Highlights & Goals Mission 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. FY 2011 Highlights I FY 2012 Goals and Objectives - Library program room multimedia and Wi-Fi equipment upgrades - 90 computer/mobile data center replacements - Four data center server upgrades/replacements - James D. Kriegh Park security system - Oro Valley Police Department wireless communications upgrades - Successful software implementation of NeoGov and PowerSave Focus Area: Leadership and Communication ■ Continue to enhance web site by expanding functionality for citizens and business ■ Leverage existing and new IT tools to inform and educate public officials and citizens Focus Area: Finance and Economic Development ■ Enhance web site by expanding functionality for the development and business communities ■ Enhance GIS mapping and analysis for planning existing and future land use Focus Area: Community Infrastructure ■ Update and maintain a reliable IT infrastructure ■ Continue development of data continuity plan ■ Begin development of new IT Strategic Plan 2011-2012 Annual Budget Program Budgets 135 Measures & Indicators Performance Measures Information Technology ► Percentage of network and desktop device moves, additions, or changes completed when scheduled ► Percentage of Help Desk calls resolved at time of call ► Percentage of Help Desk calls resolved within 4 hours of call ► Percentage of Help Desk calls resolved within 8 hours of call ► Percentage of internal customers rating overall satisfaction with IT services as excellent or good Workload Indicators FY 2010 FY 2011 FY 2012 Actual Estimate Projected 100% 100% 100% 50% 50% 40% 80% 80% 70% 70% 70% 60% 90% 90% 80% 2011-2012 Annual Budget Program Budgets 136 FY 2010 FY 2011 FY 2012 Actual Estimate Projected ► Number of vendor applications supported 27 29 30 ► Number of custom applications supported 47 52 57 ► Number of Telecommunications service requests received 95 125 150 ► Number of Help Desk requests received 541 600 700 2011-2012 Annual Budget Program Budgets 136 Organizational Chart GIS SERVICES Information Technology ADMINISTRATION FORMATION TECHNOLOGY INY DIRECTOR TECHNICAL SERVICES I IBUS' DEVELOPMENTION 8I I TELECOMMUNICATIONS 2011-2012 Annual Budget Program Budgets 137 Program Budgets Administration Program Overview Information Technology The Administration program manages all of Information Technology's logistics including procurements, budget information and operations, and management and oversight. FY 2010 Actual FY 2010 FY 2011 FY 2011 FY 2012 Variance Actual Budget Projected Budget to Budget $ 1207750 2421150 - $ 120,759 255,100 - 0.0% 5.3% 0.0% Total Expenditures $ 311,606 $ 362,900 $ 362,900 $ 375,859 Information Technology Director 1.00 1.00 1.00 1.00 - Total FTEs 1.00 1.00 1.00 1.00 - FY 2010 Actual FY 2011 Budget FY 2011 Projected FY 2012 Budget Variance to Budget Personnel Operations & Maintenance Capital $ 1181439 1937167 - $ 1207750 2427150 - $ 1207750 2421150 - $ 120,759 255,100 - 0.0% 5.3% 0.0% Total Expenditures $ 311,606 $ 362,900 $ 362,900 $ 375,859 3.6% FY 2011/2012 Expenditure and Staffing Changes Operations & Maintenance Operations & Maintenance increased 5.3% due to increases in software maintenance costs. 2011-2012 Annual Budget Program Budgets 138 Program Budgets Irl r% • r1 /\ • Information Technology u i z) z)ervices rrog ram overview FTheIS division is responsible for providing complete, accurate and current GIS maps, analysis, proposals, and ntations to support the operations used by each department. FY 2010 FY 2011 FY 2011 FY 2012 Variance Actual Budget Projected Budget- to Bud et Budget to Budget GIS Analyst 2.00 2.00 2.00 2.00 - Total FTEs 2.00 2.00 2.00 2.00 - FY 2010 FY 2011 FY 2011 FY 2012 Variance Actual Budget Projected Budget to Budget Personnel $ 139,003 $ 141,020 $ 141,020 $ 141,349 0.2% Operations & Maintenance 46,231 5,650 57650 7,250 28.3% Capital - - - - 0.0% Total Expenditures $ 1859234 $ 146,670 $ 146,670 $ 1489599 1.3% FY 2011/2012 Expenditure and Staffing Changes Operations & Maintenance Operations & Maintenance increased 28.3% due to an increase in travel & training. 2011-2012 Annual Budget Program Budgets 139 Program Budgets Technical Services Program Overview Information Technology The Technical Services division provides management and security of the Town's computer networks, desktop and network Technology acquisition, support, and training. FY 2010 FY 2011 FY 2011 FY 2012 Variance Actual Budget Projected Budget to Budget Network Administrator 1.00 1.00 1.00 1.00 - Network Manager 1.00 1.00 1.00 - (1.00) IT Technician 1.00 1.00 1.00 1.00 - Total FTEs 3.00 3.00 3.00 2.00 (1.00) Personnel Operations & Maintenance Capital Total Expenditures FY 2010 FY 2011 FY 2011 1 FY 2012 1 Variance Actual Budqet Proiected Budaet to Budaet $ 245,671 $ 249,667 $ 249,667 $ 154,803 -38.0% 421642 67,975 67,975 56,850 -16.4% 147825 - - 230,000 0.0% $ 303,138 $ 3175642 $ 3175642 $ 441,653 39.0% FY 2011/2012 Expenditure and Staffing Changes Personnel Personnel costs decreased 38% due to the transfer of one position to the Police Department. Operations & Maintenance Operations & Maintenance decreased 16.4% due to the transfer of a portion of expenditures to the Police Department Capital Capital is for replacement of computers, servers and mobile data centers, as well as network infrastructure upgrades. These expenditures were previously budgeted in a separate Capital Asset Replacement Fund, which is collapsed into the General Fund beginning FY 2012. 2011-2012 Annual Budget Program Budgets 140 Program Budgets Information Technology Business Application & Development Program Overview The Business Application & Development division is responsible for application development and support, database management, project management, web site management and oversight, and development of Electronic Government (E -Gov) and future E-commerce applications. FY 2011/2012 Expenditure and Staffing Changes Operations & Maintenance Operations & Maintenance decreased 45.5% due to reductions in consulting and technical support costs. 2011-2012 Annual Budget Program Budgets 141 FY 2010 FY 2011 FY 2011 FY 2012 Variance Budget Actual Budget Projected Budget to Budget $ 156,136 1 0.1% 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 2011/2012 Expenditure and Staffing Changes Operations & Maintenance Operations & Maintenance decreased 45.5% due to reductions in consulting and technical support costs. 2011-2012 Annual Budget Program Budgets 141 FY 2011 FY 2011 FY 2011 FY 2012 Variance Actual Budget Projected Budget to Budget Personnel $ 153,884 $ 155,944 $ 155,944 $ 156,136 1 0.1% Operations & Maintenance 5,955 18,450 87450 10,050 -45.5% Capital - - - - 0.0% Total Expenditures $ 1599839 $ 174,394 $ 164,394 $ 166,186 -4.7% FY 2011/2012 Expenditure and Staffing Changes Operations & Maintenance Operations & Maintenance decreased 45.5% due to reductions in consulting and technical support costs. 2011-2012 Annual Budget Program Budgets 141 Program Budgets Telecommunications Program Overview Information Technology The telecommunications division 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. Operations & Maintenance Capital FY 2010 FY 2011 FY 2011 Actual Budget Projected FY 2012 Budget Variance to Budget $ 127,980 $ 118,500 $ 106,500 - - - $ 120,500 - 1.7% 0.0% Total Expenditures $ 127,980 $ 118,500 $ 1065500 $ 1205500 1.7% FY 2011/2012 Expenditure Changes Operations & Maintenance Operations & Maintenance increased 1.7% due to increased equipment repair and maintenance costs. 2011-2012 Annual Budget 142 Program Budgets Legal 0 V - - 'V ikj"A The Legal Department is organized into two divisions, Civil and Prosecution, under supervision of the Town Attorney. The Legal Department provides two very different types of legal services to the Town: handling civil matters, including managing legal services by outside counsel; and prosecuting misdemeanor crimes and traffic violations within the Town. Civil Prosecution Total FY 2010 FY 2011 FY 2012 Actual Budget Projected Bud et 8.00 8.00 8.00 8.00 F:xnenditur& .h . 2maram FY 2010 Actual FY 2011 FY 2012 Budget % to Bud et Budget Projected $ 379,351 3687276 $ 444,576 $ 359,376 398,209 3813409 $ 445,509 396,323 0.2% -0.5% $ 747,627 $ 842,785 $ 7409785 1 $ 8419832 -0.1 �/-Oj FY 2012 Expenditures by Program FY 2012 Expenditures by Category O&M 136,278 16% Prosecution 396,323 47% Civil 445,509 53% Capital Personnel 15,0002% 690,554 82% 2011-2012 Annual Budget Program Budgets 143 FY 2010 Actual FY 2011 Budget Projected FY 2012 Bud et % to Bud et State Grants 21340 15,000 15,000 15,000 0.0% $ 29340 $ 15,000 $ 159000 1 $ 15,000 1 0.0% FY 2012 Expenditures by Program FY 2012 Expenditures by Category O&M 136,278 16% Prosecution 396,323 47% Civil 445,509 53% Capital Personnel 15,0002% 690,554 82% 2011-2012 Annual Budget Program Budgets 143 Measures & Indicators Performance Measures Legal No. 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 Workload Indicators ► Number of civil files opened ► Number of ordinances drafted ► Number of resolutions drafted ► Number of Council agenda items worked ► Number of opinions issued ► Number of prosecution files opened ► Training of sworn Police personnel on arrest standards and legal trends conducted times per year CY 2010 FY 2010 FY 2011 FY 2012 Estimate Actual Estimate Projected ► Budgeted per capita Civil Program operating and maintenance (O&M) $2.58 $2.48 $2.45 expenditures 86 86 505 ► Budgeted per capita Prosecution Program O&M expenditures $1.06 $0.92 $0.87 ► Number of cases processed per prosecutor 1,251 1,150 17150 Town Prosecutor 657 600 600 Assistant Town Prosecutor 594 550 550 No. 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 Workload Indicators ► Number of civil files opened ► Number of ordinances drafted ► Number of resolutions drafted ► Number of Council agenda items worked ► Number of opinions issued ► Number of prosecution files opened ► Training of sworn Police personnel on arrest standards and legal trends conducted times per year CY 2010 CY 2011 CY 2012 Actual Estimate Projected 219 182 182 24 38 38 86 86 86 505 259 259 8 3 3 1,251 1,150 17150 2 2 2 2011-2012 Annual Budget 144 Program Budgets Organizational Chart w. 2011-2012 Annual Budget Program Budgets 145 Highlights & Goals Civil Mission 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. FY 2011 Highlights I FY 2012 Goals and Objectives — Worked on the Environmentally Sensitive Lands Ordinance Committee and drafted provisions for that code — Worked with our insurance attorneys to obtain successful settlement on the Town's lawsuit against Vestar Development regarding damage in excess of $500,000 to the Reservoir facility at Oro Valley Marketplace as a result of negligent soil compaction by Hunter Contracting Company acting on behalf of Vestar Development at the adjacent Oro Valley Marketplace project. This litigation is now closed. — Worked on Citizens Academy and gave presentations regarding public records, open meeting law and how to run a meeting — Worked closely with Risk Retention pool on Notice of Claim matters — Worked with Human Resources Department on personnel issues, including several terminations — Worked closely with DIS Department to streamline building and zoning code violations — Drafted new stormwater penalty code provisions for residents with delinquent fees and implemented Magistrate Court procedure — Worked on Concept Design Review Board Committee and assisted in drafting code and design standards — Worked on Special Events committee and drafted special events code — Worked with our insurance attorneys on the Reflections at the Buttes litigation and trial preparation — Successfully obtained dismissal of the Town in litigation regarding a claim to invalidate a conservation easement belonging to Benchmark Homes and Electronic Communities — Worked with our insurance attorneys for the litigation from Electronic Communities, Inc. regarding credit impact fees. This case has been dismissed. — Worked with our insurance attorneys and successfully dismissed a lawsuit alleging that the Oro Valley Magistrate Court improperly issued an injunction against harassment involving a property dispute — Drafted Water Utility Department utility easements with neighbors within La Cholla Airpark for construction of a water reservoir — Worked with DIS Department on solar energy issues — Worked with Parks, Recreation, Library and Cultural Resources Department to draft a standard Pool Lease Agreement — Drafted drainage easements for property owners for the Lomas de Oro Wash Stormwater project — Drafted Town code for discharge of weapons — Drafted code for anti -graffiti — Drafted proposed legislation for new AZ annexation statutes Focus Area: Leadership and Communication ■ Assign staff to maximize productivity given limited resources ■ Ensure continuing development of attorneys and staff Focus Area: Finance and Economic Development ■ Continue to provide accurate and timely legal advice and representation to Mayor and Council and Town staff ■ Evaluate cases for appropriateness relating to potential utilization of outside counsel Focus Area: Community Infrastructure ■ Emphasize retention of professional staff 2011-2012 Annual Budget 146 Program Budgets Program Budgets r\ • • 1 r1 r\ • Legal ,ivn rro ram overview FT�heCivil 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. 2011-2012 Annual Budget Program Budgets 147 FY 2010 FY 2011 FY 2011 FY 2012 Variance FY 2012 Bud et Actual Budget Projected Bud et to Bud et - . ov Personnel Operations & Maintenance Capital $ 360,148 19,203 I - Town Attorney 1.00 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 1.00 - Office Assistant 1.00 1.00 1.00 1.00 - Total FTEs 4.00 4.00 4.00 4.00 - 2011-2012 Annual Budget Program Budgets 147 FY 2010 Actual FY 2011 Bud et FY 2011 Projected FY 2012 Bud et Variance to Budge Personnel Operations & Maintenance Capital $ 360,148 19,203 I - $ 343,019 101,557 - $ 343,019 16,357 - f $ 344,8951 100,614 - 0.5% -0.9% 0.0% Total Expenditures 1 $ 379,351 $ 4447576 $ 3597376 $ 445,509 0.2% 2011-2012 Annual Budget Program Budgets 147 Highlights & Goals Prosecution Mission F embers of the Prosecution Division promise to fairly resolve criminal or civil court matters while cting the rights of all parties in as timely a manner as resources allow. FY 2011 Highlights I FY 2012 Goals and Objectives — Handled numerous criminal cases — Filed numerous appeals — Drafted and wrote ordinances with other departments — Town prosecutor appointed to State Prosecution Board for another four year term — Town prosecutor named State Prosecution Training Committee Chairman — Attended medical marijuana meetings — Taught Advanced Advocacy Course for other prosecutors — Town Graffiti Committee — Completed Incident Command System training — Obtained small grant for updated computers/printers/etc. — Updated Town Code fines —Assisted Sahuarita Prosecutors Office — Assisted with Univ. of Arizona criminal sentencing study — Assistant prosecutor nominated for State Victim Advocacy Award — Received Udall fellowship recipient as Prosecution intern — Senior paralegal attended Town sponsored Supervisory training sessions — Senior paralegal negotiated zero increase in case management software program — Senior paralegal assisted Pima County Victim Witness in implementing new reporting requirements — Senior paralegal coordinated quarterly meetings of Court/Police/Prosecutor offices — Legal secretary completed Paralegal Studies program and certification — Legal secretary member of Wellness Committee — Legal secretary maintains prosecution website — Assisted Pima County Victim/Witness in obtaining a federal grant — Participated in Police Special Olympic Torch Run Focus Area: Leadership and Communication ■ Promote integrity in the prosecution profession and coordination in the criminal justice system, including active involvement in Arizona Prosecuting Attorneys Advisory Council (APAAC) and with the State Legislature Focus Area: Finance and Economic Development ■ Use of standardized plea offers, including fines Focus Area: Community Infrastructure ■ Promote the fair, impartial and expeditious pursuit of justice ■ Promote and ensure a safer community 2011-2012 Annual Budget 148 Program Budgets Program Budgets n r, ON Legal rrosewuon rro ram overview 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. I The Prosecution Division provides Victim Services under the Arizona Constitution. FY 2011/2012 Expenditure and Staffing Changes Operations & Maintenance Operations & Maintenance decreased 5.6% due to reductions in memberships & subscriptions. 2011-2012 Annual Budget Program Budgets 149 FY 2010 FY 2011 FY 2011 FY 2012 Variance FY 2012 Actual Budget Projected Budget to Budget Budget Projected Budget Town Prosecutor 1.00 1.00 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 - Le al Secretary 1.00 1.00 1.00 1.00 - Total FTEs 4.00 4.00 4.00 4.00 - FY 2011/2012 Expenditure and Staffing Changes Operations & Maintenance Operations & Maintenance decreased 5.6% due to reductions in memberships & subscriptions. 2011-2012 Annual Budget Program Budgets 149 FY 2010 FY 2011 FY 2011 FY 2012 Variance Actual Budget Projected Budget to Budget. Personnel $ 338,819 $ 345,437 $ 345,437 $ 345,6591 0.1% Operations & Maintenance 26,976 37,772 20,972 35,664 -5.6% Capital 27481 15,000 15,000 15,000 0.0% Total Expenditures $ 3687276 $ 3989209 $ 3819409 $ 396,323 -0.5% FY 2011/2012 Expenditure and Staffing Changes Operations & Maintenance Operations & Maintenance decreased 5.6% due to reductions in memberships & subscriptions. 2011-2012 Annual Budget Program Budgets 149 firJ(fA4T:)ED Magistrate Court 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. FY 2010 FY 2011 FY 2011 FY 2012 Variance Actual Budget Projected Budget to Bud et Variance to Bud et Actual Budget 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 2.00 2.00 2.00 2.00 - Bailiff 1.00 1.00 1.00 1.00 - Total FTEs 9.00 9.00 9.00 9.00 - FY 2011/2012 Expenditure and Staffing Changes `Operations & Maintenance Operations & Maintenance increased 9.7% due to required software upgrades and changes to the Intergovernmental ;Agreement with Pima County. 2011-2012 Annual Budget 150 Program Budgets FY 2010 FY 2011 FY 2011 FY 2012 Variance Variance to Bud et Actual Budget Projected Bud et to Bud et $ 374,941 $ 4369300 $ 436,000 $ 424,000 -2.8%- Personnel $ 6091417 $ 632,377 $ 6321377 $ 648,455 2.5% Operations & Maintenance 1193133 121,395 1121545 133,170 9.7% Ca ital - - - - 0.0% Total Expenditures $ 728,550 $ 753,772 $ 744,922 $ 781,625 3.7% FY 2011/2012 Expenditure and Staffing Changes `Operations & Maintenance Operations & Maintenance increased 9.7% due to required software upgrades and changes to the Intergovernmental ;Agreement with Pima County. 2011-2012 Annual Budget 150 Program Budgets Revenue Sources FY 2010 FY 2011 Actual Budget Projected FY 2012 Budget Variance to Bud et Court Costs Public Defender Fees Fines $ 165,537 $ 235,000 $ 222,000 7,260 67300 4,000 202,144 1957000 2101000 $ 230,000 4,000 190,000 -2.1% -36.5% -2.6% Total Revenues $ 374,941 $ 4369300 $ 436,000 $ 424,000 -2.8%- FY 2011/2012 Expenditure and Staffing Changes `Operations & Maintenance Operations & Maintenance increased 9.7% due to required software upgrades and changes to the Intergovernmental ;Agreement with Pima County. 2011-2012 Annual Budget 150 Program Budgets Highlights & Goals Mission 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. FY 2011 Highlights I FY 2012 Goals and Objectives - Received approval for destroying completed files after they are scanned, saving filing space and taking another step towards paperless - Staff attended Court Management seminars, working toward Court Management Certification - Annual customer Access and Fairness Survey conducted with satisfactory results - Staff was cross trained in all court functions to promote a continuance of operations in support of disaster planning - Court received an excellent rating from the Supreme Court after a full Court Operation Review - Court fine enforcement clerk was awarded the 2010 Award of Excellence for the Arizona Court Association for her payment plan program Focus Area: Leadership and Communication ■ Continuously seek out opportunities for staff to attend leadership training ■ Survey the community on customer service and jury participation ■Be a leader in the community embracing advanced court technology Focus Area: Financial and Economic Development ■ Provide opportunities for defendants to perform community restitution for the Town, reducing the need to pay for additional resources ■ Purchase advanced jury software to capture additional statistical information ■ Increase efficiency by moving toward e -filing of pleadings 2011-2012 Annual Budget Program Budgets 151 Measures & Indicators Performance Measures ► Variance between total cases completed and total cases filed (goal is +/-10%) No. Percentage of court visitors rating fairness of the court as excellent or good (goal is 75%) ► Percentage of court visitors rating promptness and courteousness as excellent or good (goal is 80%) ► Compliant with the Administrative Office of the Court (AOC) Minimum Accounting Standards Workload Indicators Magistrate Court FY 2010 FY 2011 FY 2012 Actual Estimate Projected 15.29% 13.50% 10.00% 74.0% 79.4% 80.0% 79.0% 86.7% 88.0% Yes Yes Yes FY 2010 FY 2011 FY 2012 Actual Estimate Projected ► Number of total cases filed 7,519 67317 6,500 ► Number of DUI cases filed 249 189 200 ► Number of protective orders filed 131 132 130 2011-2012 Annual Budget 152 Program Budgets E • • Manager The Town Manager is responsible76TMhe 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, 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: Manager; Clerk; Human Resources; Finance; Legal; Police; Water Utility; Development and Infrastructure Services; Parks, Recreation, Library, and Cultural Resources; Information Technology; and Magistrate Court. Town Management Council Support and Constituency Communications and Community Rel. Economic Development Total FY 2010 FY 2011 FY 2012 Actual Budget Projected Budget 9.90 10.50 8.50 9.10 xpendit m FY 2010 FY 2011 7FY2012 % Bud et Projectedd Actual et to Bud et $ 492,649 $ 510,563 $ 451,215 $ 507,544 -0.6% 108,952 93,233 93,233 92,226 -1.1% 271,025 2971899 268,622 176,185 -40.9% 4871280 432,080 459,628 337,193 -22.0% [—$,13597906 $ 1,333,775 $ 192729698 $ 1,1131148 -16.5% FY 2012 Expenditures by Program FY 2012 Expenditures by Category Economic Dev 337,193 -- - 30% Communications O&M & Community 291,780 Relations 26% 176,185 Town Personnel 16% Management i 821,368 507,544 / 74% Council Support 46% & Constituency - - 92,226 8% 2011-2012 Annual Budget Program Budgets 153 Highlights & Goals Mission Manager FTo execute the policies and programs established by the Town Council and to provide administrative leadership and management of municipal operations. FY 2011 Highlights I FY 2012 Goals and Objectives - Celebrated grand opening of BASIS Oro Valley charter school - Negotiated a Financial Participation Agreement (FPA) for expansion of Ventana Medical Systems - Launched Innovations Team to expand employee participation - Developed new 2011 Strategic Plan - Developed new 2011 Community Economic Development Strategy (CEDS) - Held first-ever Economic Summits with local business leaders, community leaders and residents - Awarded Outstanding Achievement in Local Government Innovation Award for the Town's energy efficiency and solar project 2011-2012 Annual Budget Focus Area: Leadership and Communication ■ Build trust through effective public outreach and communication ■ Create an environment conducive to effective dialogue among the Council and staff ■ Maintain strong intergovernmental relationships Focus Area: Finance and Economic Development ■ Maintain a balanced budget ■ Develop diverse sources of revenues ■ Cultivate relationships with the business community and create a business -friendly environment Program Budgets 154 Measures & Indicators Performance Measures ► Average time to fulfill constituent requests (days) ► Percentage of business retention site visit participants rating satisfaction with site visit as excellent or good ► Average monthly unique visitors to the Business Navigator website (online Oro Valley business locator) ► Average monthly readership of VISTA magazine online * New performance measure in FY 2011; prior fiscal year data not available Workload Indicators ► Number of constituent requests received ► Number of business retention site visits conducted Manager FY 2010 FY 2011 FY 2012 Actual Estimate Projected 2.58 3.38 2.50 N/A 90% 90% N/A 891 980 N/A 390 488 FY 2010 FY 2011 FY 2012 Actual Estimate Projected 344 397 389 20 14 14 2011-2012 Annual Budget Program Budgets 155 Organizational Chart TOWN MANAGEMENT TOWN MANAGER Manager 2011-2012 Annual Budget 156 Program Budgets Program Budgets Town Management Program Overview Manager 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 press and media relations, promotes the Town's legislative agenda through intergovernmental programs, 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. FY 2010 FY 2011 FY 2011 FY 2012 Variance Actual Budget Projected Bud et to Budget Town Manager - 1.00 1.00 1.00 - Assistant Town Manager 1.00 1.00 1.00 1.00 - Assistant to the Town Manager 1.00 1.00 1.00 1.00 - Executive Assistant 1.00 0.75 0.75 0.75 - Senior Office Specialist - 0.25 0.25 0.25 Management Intern 0.40 - - - - Total FTEs 3.40 4.00 4.00 FY 2010 Actual FY 2011 Budget FY 2011 Projected . ...... ...... FY 2012 Bud et Variance to Budget Personnel Operations & Maintenance Contingency $ 448,979 317412 12,258 $ 485,763 247800 - $ 426,415 24,800 - $ 476,245 31,299 - -2.0% 26.2% 0.0% Total Expenditures $ 4929649 $ 5109563 $ 4519215 $ 5079544 -0.6% FY 2011/2012 Expenditure and Staffing Changes Operations & Maintenance Operations & Maintenance increased 26.2% due to increases in travel & training. • L. • . ...... ...... • . ..... .... ... 2011-2012 Annual Budget Program Budgets 157 Program Budgets Council Support and Constituency Program Overview Manager The Council Support & Constituent Services Division provides administrative support to the Town Council through a one- stop constituent "office" (Constituent Services Office) where concerns, complaints, inquiries, referrals and information requests are addressed with stellar customer service and a common sense approach. The Constituent Services Coordinator (CSC) facilitates public education efforts, coordinates departmental responses, and ensures that constituent voices and perspectives are consistently captured and transmitted to Town leadership. The Constituent Services Office 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 Manager's office to adjust policies and budget options in order to better serve town residents. Personnel Operations & Maintenance FY 2010 FY 2011 FY 2011 FY 2012 Variance Actual Budget Projected Budget to Budget N -0.8% -25.0% Total Expenditures Constituent Services Coordinator 1.00 1.00 1.00 1.00 - Senior Office Specialist 1.00 0.25 0.25 0.25 - Executive Assistant - 0.25 0.25 0.25 - Total FTEs 2.00 1.50 1.50 1.50 - Personnel Operations & Maintenance FY 2010 FY 2011 FY 2011 Actual Budget Pro ected FY 2012 Bud et Variance to Bud et $ 107,166 $ 92,233 $ 92,233 1,786 17000 1,000 $ 91,476 1 750 -0.8% -25.0% Total Expenditures $ 1087952 $ 937233 $ 93,233 1 $ 929226 -1.1% FY 2011/2012 Expenditure and Staffing Changes Operations & Maintenance Operations & Maintenance decreased 25% due to reductions in miscellaneous operating cost. 2011-2012 Annual Budget 158 Program Budgets Program Budgets Communications and Community Relations Program Overview Manager The Communications & Community Relations 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. FY 2011/2012 Expenditure and Staffing Changes Personnel • Personnel costs decreased 42.6% due to one vacant position that will not be refilled and one position budgeted at a lower salary. Operations & Maintenance Operations & Maintenance decreased 15.9% due to reductions in several line items, including outside professional services, travel & training, and memberships & subscriptions. 2011-2012 Annual Budget Program Budgets 159 FY 2010 FY 2011 FY 2011 FY 2012 Variance Budget Actual Budget Projected to Budget -Budget $ 159,685 -42.6% Communications Administrator 1.00 1.00 - 1.00 - Public Information Officer 1.00 1.00 - - (1.00) Communications Specialist 1.00 1.00 1.00 1.00 - Communications Intern 0.10 0.10 0.10 0.10 - Senior Office Specialist - 0.50 0.50 0.50 - Total FTEs 3.10 3.60 1.60 2.60 (1.00) FY 2011/2012 Expenditure and Staffing Changes Personnel • Personnel costs decreased 42.6% due to one vacant position that will not be refilled and one position budgeted at a lower salary. Operations & Maintenance Operations & Maintenance decreased 15.9% due to reductions in several line items, including outside professional services, travel & training, and memberships & subscriptions. 2011-2012 Annual Budget Program Budgets 159 FY 2010 FY 2011 FY 2011 FY 2012 Variance Actual Budget Projected Budget to Budget Personnel $ 258,377 $ 278,289 $ 249,012 $ 159,685 -42.6% Operations & Maintenance 12,648 19,610 191610 16,500 -15.9% Total Expenditures $ 271,025 $ 297,899 $ 2689622 $ 1769185 -40.9% FY 2011/2012 Expenditure and Staffing Changes Personnel • Personnel costs decreased 42.6% due to one vacant position that will not be refilled and one position budgeted at a lower salary. Operations & Maintenance Operations & Maintenance decreased 15.9% due to reductions in several line items, including outside professional services, travel & training, and memberships & subscriptions. 2011-2012 Annual Budget Program Budgets 159 Program Budgets Economic Development Program Overview Manager 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. FY 2010 FY 2011 FY 2011 FY 2012 Variance Actual Budget Projected Budget to Budget 25.7% -31.9% Total Expenditures $ 4877280 $ 4323080 $ 459,628 1 $ 3379193 -22.0% Economic Development Manager 1.00 1.00 1.00 1.00 - Intern 0.40 0.40 0.40 - 0.40 Total FTEs 1.40 1.40 1.40 1.00 (0.40) FY 2011/2012 Expenditure and Staffing Changes Personnel Personnel costs increased 25.7% due to a salary market adjustment. Operations & Maintenance Operations & Maintenance decreased 31.9% due to a bed tax rebate that ends September 30, 2011. 2011-2012 Annual Budget Program Budgets 160 FY 2010 FY 2011 FY 2011 Actual Budget Projected FY 2012 Budget Variance to Budget Personnel Operations & Maintenance $ 70,015 $ 747729 $ 81,432 417,265 357,351 378,196 $ 93,962 2437231 25.7% -31.9% Total Expenditures $ 4877280 $ 4323080 $ 459,628 1 $ 3379193 -22.0% FY 2011/2012 Expenditure and Staffing Changes Personnel Personnel costs increased 25.7% due to a salary market adjustment. Operations & Maintenance Operations & Maintenance decreased 31.9% due to a bed tax rebate that ends September 30, 2011. 2011-2012 Annual Budget Program Budgets 160 Parks, Recreation, Library & Cultural Resources w w This department represents municipal services in six areas, including parks, recreation, trails, aquatics, library and cultural and historic resources. This department is further responsible to provide staff support to the Parks and Recreation Advisory Board, the Historic Preservation Commission, the Oro Valley Public Library Family Advisory Board, the Oro Valley Public Library Teen Advisory Board, and the Friends of the Oro Valley Public Library. Total FY 2010 FY 2011 FY 2012 Actual Budget Projected Budget 45.95 42.31 42.31 40.94 EXDendil ,:., Divi,. Parks 577,28 20% P&R Administr2 284,01 10% Cu Resp 12 4 "/o FY 2012 Expenditures by Division Recreation Trails 77A 07A r, r, nwr 2011-2012 Annual Budget Aquatics 431,965 15% Library 1,115,815 39% 161 Personnel 1,871,935 66% FY 2012 Expenditures by Category O&M 962,267 33% Capital 42,500 1% Program Budgets FY 2010 FY 2011 FY 2012 % Budget Projected Revenue Sources Actual Budget to Bud et Parks & Rec Administration $ 294,611 $ 277,809 $ 286,541 $ 284,018 2.2% Parks 7421723 5657482 530,642 5777289 2.1% Recreation 3351929 344,539 324,539 274,824 -20.2% Trails 701555 65,483 65,956 65,815 0.5% Aquatics 547,386 451,601 451,601 431,965 -4.3% Library 1,2047617 1,159,028 111447028 1,115,815 -3.7% Cultural Resources 847963 992,773 8491963 126,976 -87.2% - - $ 3,2801784 $ 39856,715 $ 3,653,270 1 $ 29876,702 -25.4% Parks 577,28 20% P&R Administr2 284,01 10% Cu Resp 12 4 "/o FY 2012 Expenditures by Division Recreation Trails 77A 07A r, r, nwr 2011-2012 Annual Budget Aquatics 431,965 15% Library 1,115,815 39% 161 Personnel 1,871,935 66% FY 2012 Expenditures by Category O&M 962,267 33% Capital 42,500 1% Program Budgets Revenue Sources FY 2010 FY 2011 FY 2012 % Budget Projected Actual Budget to Budget 1 Charges for Services $ 346,400 $ 352,000 $ 314,000 $ 322,750 -8.3% Other Intergovernmental Revenue 6331450 607,781 6001281 5919160 -2.7% State Grants 75,600 - - 25,000 0.0% Federal Grants - 2509000 - - -100.0% Pima County Bond Proceeds 459012 2759000 2439100 - -100.0% Other Financing Sources 470,000 - - - 0.0% $ 195709462 $ 114849781 $ 191579381 $ 938,910 -36.8% Parks 577,28 20% P&R Administr2 284,01 10% Cu Resp 12 4 "/o FY 2012 Expenditures by Division Recreation Trails 77A 07A r, r, nwr 2011-2012 Annual Budget Aquatics 431,965 15% Library 1,115,815 39% 161 Personnel 1,871,935 66% FY 2012 Expenditures by Category O&M 962,267 33% Capital 42,500 1% Program Budgets Highlights & Goals Mission Parks, Recreation, Library & Cultural Resources To enhance the quality of life for all Oro Valley residents by providing exceptional community facilities and programs for all ages. FY 2011 Highlights I FY 2012 Goals and Objectives Parks & Recreation Administration - Upgraded to RecTrac version 10.3 for the WebClient functionality establishing RecTrac usage at the municipal pool, processing daily visits, passes and activity registrations on site - Streamlined racquetball and tennis memberships to function on a fiscal year basis - Adjusted ramada reservations to an hourly rental basis Aquatics - Pool Users Working Group created - Oro Valley Municipal Pool Feasibility Study completed and accepted by the Town Council - New pool ramada constructed to hold solar panels which will help heat the pool water and reduce expenses during the winter months - New aquatics program, Amphibious Athletes, was introduced for the 2011 summer season - New scuba diving program was introduced and offered at the Oro Valley Municipal Pool - Hosted the World's Largest Swim Lesson for the second year and successfully helped break the Guinness world record Trails - Coordinated with Development & Infrastructure Services staff to hold the Town's first alternate modes contest as part of the Town's solar parking lot project - Submitted several grant applications and award nominations - Held the Town's third annual Bike to Work Day as part of the Regional Bike Fest Recreation - Received Arizona Parks & Recreation Association Leisure and Benefits Branch Outstanding Program Award - Awarded the Arizona Parks & Recreation Association Outstanding Program Award for Community or Neighborhood Special Events - Partnered with the Aquatics division to host "Amphibious Athletes" summer program at James D. Kriegh Park and the Municipal Pool - Partnering with the Aquatics division to expand the Recreation Fair into the First Annual Summer Kickoff Event - Partnered with Pusch Ridge Christian Academy for use of their facility for programs Focus Area: Leadership and Communication Parks & Recreation Administration ■ To enhance customer service by simplifying the registration process and developing a more convenient and user friendly online activity registration Trails ■ Expand the Town's Bike to Work Day and alternate modes usage through publicity and coordination with Development & Infrastructure Services staff Recreation ■ Continue cooperation with outside agencies Library ■ Library employees heavily invested in new Innovation Team squads ■ Send another librarian to Supervisors Academy, AZ Library Association convention, Internet Librarian Conference and any State Library workshops and trainings ■ Continue outreach and foster community partnerships with local area schools and organizations, such as Mature Worker Connection, Northern Pima County Chamber of Commerce and Oro Valley Business Club Focus Area: Finance and Economic Development Aquatics ■ Successful implementation of RecTrac software at the pool ■ Partner with Recreation Division and Library to implement Fall Movie Series ■ Look into possible expansion of Summer Kickoff Event ■ Host a successful Centennial event at the pool Trails ■ Continue to seek grant funding for bicycle, pedestrian, and trails, as well as for other Parks programs and facilities, including Steam Pump Ranch 2011-2012 Annual Budget Program Budgets 162 Highlights & Goals (Continued) Parks, Recreation, Library & Cultural Resources FY 2011 Highlights (Continued) I FY 2012 Goals and Objectives (Continued) Parks - Obtained $25,000 grant from the Keg Steakhouse & Bar to construct an accessible playground at James D. Kriegh Park - Installed new "ocotillo" ramada on CDO Linear Park multi -use trail south of Marketplace and on the west side of the new pedestrian bridge over CDO wash - Installed new night lights to illuminate the dog park at James D. Kriegh Park - Installed new nature trail educational signs at West Lambert Lane Park, James D. Kriegh Park and CDO Linear Park - Designed and installed xeriscape at 680 W. Calle Concordia - Designed and installed xeriscape at Town Hall campus in the parking lot and west of the Development & Infrastructure Services building in conjunction with the solar car -port project - All light fixtures at James D. Kriegh Park and Riverfront Park were replaced with new more efficient fixtures by APS Energy Services - 9/11 "Guardian Angel" was installed at the newly dedicated "Green Field" at James D. Kriegh Park Library - Held Volunteer Recruitment Community Day - Held Live Green Oro Valley Community Day highlighting Town's energy efficiency project - Job Search Program assisted citizens in finding employment - Grant received to foster local history - Grant received for virtual author visits and videotaped teen book talks - Two librarians graduated from Supervisors Academy - Website expanded to include "staff picks" for books - Celebrated National Family Literacy Month in November by honoring Mayor Hiremath with a photo of him reading to his son - Honored Dr. Bill Fry during "Love of Reading" month in February with a poster and ceremony - Instituted monthly Family Movie Night - Participated in National Night Out in August - Secured a private donor to replace carpet in program room - Youth Services librarian served as co-author liaison for the 2010 Arizona Library Association's annual conference - Library hosted annual Wilson K-8 school's visit to the Town campus for Community Days - Made local resident, Bill Adler, a "Diamond" member of the Friends of the Oro Valley Library to express our gratitude for his many donations to the Library - New electric car charging station located near library for patron convenience and education Focus Area: Finance and Economic Development Recreation ■ Continue to seek out signature events ■ Expand recreational programming ■ Partner with Aquatics and Library to launch outdoor movie events ■ Continue improving cost recovery rates on all programs ■ Host Centennial Celebration Events around Oro Valley and at Steam Pump Ranch Library ■ Increasing use of volunteers as gate count rises ■ Partnership with Oro Valley Business Club ■ Friends add a second book shop location ■ Actively pursue multiple grants Focus Area: Community Infrastructure Library ■ Enhance job search program with the help of a state grant funded computer and software ■ Host two more Community Days, one on job search and one devoted to local authors ■ Host University of Arizona Art Museum series on southwest a rt 2011-2012 Annual Budget Program Budgets 163 Measures & Indicators Parks, Recreation, Library & Cultural Resources Performance Measures Parks and Recreation ► Park acres per 1,000 residents ► Parks and Recreation FTEs per 1,000 population ► Percentage cost recovery for Aquatics division ► Percentage cost recovery for recreation programs Library ► Operating and maintenance (O&M) expenditures per capita ► O&M expenditures per registered borrower ► Number of FTEs per 1,000 town residents ► Volunteer hours per 1,000 town residents Workload Indicators Parks and Recreation ► Number of park acres maintained ► Annual swimming pool attendance ► Number of summer camp attendees ► Number of spring and fall camp attendees No, Hours of ball field usage Library ► Number of library visitors ► Number of circulation transactions (check-outs and check -ins) ► Number of youth services programs held and number of attendees ► Number of adult services programs held and number of attendees ► Number of library visits per capita FY 2010 FY 2011 FY 2012 Actual Estimate Projected 9.17 9.17 10.63 0.60 0.52 0.52 E: 22% 25% 26% 52% 60% 63% $7.43 $7.58 $7.43 $16.91 $9.85 $8.97 0.43 0.45 0.44 336 337.5 405 FY 2010 FY 2011 FY 2012 Actual Estimate Projected 376 376 436 120,000 1201000 120,000 390 0 0 70 80 85 8,000 8,200 81200 228,920 226,480 249,128 8161262 7707892 847,892 497 / 11,920 584 / 131045 585 / 13,045 523/5,405 666/9,342 667/9,342 5.26 5.5 7.2 2011-2012 Annual Budget Program Budgets 164 Organizational Chart Parks, Recreation, Library & Cultural Resources 2011-2012 Annual Budget Program Budgets 165 Program Budgets Administration Program Overview Parks & Recreation 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. FY 2010 FY 2010 Actual FY 2011 Budget FY 2011 Projected FY 2012 Budget Variance to Bud et Actual Budget PRL&CR Director Senior Office Specialist Senior Office Assistant 1.00 1.00 1.00 0.90 0.90 1.00 0.90 0.90 1.00 0.90 0.90 1.00 - - - Total FTEs 3.00 2.80 2.80 2.80 - FY 2010 FY 2011 FY 2011 FY 2012 Variance Actual Budget Projected Budget to Budget �, _ 1 SHOP=. Personnel $ 219,813 $ 211,309 $ 211,309 $ 212,955 0.8% Operations & Maintenance 60,240 667500 75,232 71,063 6.9% Capital 141558 - - - 0.0% Total Expenditures $ 2949611 $ 2779809 $ 286,541 $ 2849018 2.2% FY 2011/2012 Expenditure and Staffing Changes Operations & Maintenance Operations & Maintenance increased 6.9% to provide capacity for a mower rental. 2011-2012 Annual Budget 166 Program Budgets Program Budgets Parks Program Overview Parks & Recreation 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 and Library. Parks oversees all parks construction projects, including new construction, renovations and repairs. FY 2010 FY 2011 FY 2011 FY 2012 Variance Actual Budget Projected Budget to Bud et Budget Projected 'EEL, Parks Maintenance Manager 1.00 0.80 0.80 0.80 - Parks Maintenance Crew Lead 1.00 0.80 0.80 0.80 - Senior Parks Maint Worker 2.00 1.80 1.80 1.80 - Parks Maintenance Worker 3.00 2.80 2.80 2.80 - Park Monitor 0.70 0.70 0.70 0.70 - Total FTEs 7.70 6.90 6.90 6.90 - FY 2010 FY 2011 FY 2011 FY 2012 Variance Actual Budget Projected Budget to Budget Personnel $ 403,737 $ 321,332 $ 321,332 $ 321,922 0.2% Operations & Maintenance 338,986 2447150 2097310 230,367 -5.6% Capital - - - 25,000 0.0% Total Expenditures $ 7429723 $ 565,482 $ 5305642 $ 5777289 2.1% FY 2011/2012 Expenditure and Staffing Changes Operations & Maintenance Operations & Maintenance decreased 5.6% due to reductions in utilities costs. Capital The $25,000 budgeted in capital expenditures is for new playground equipment at James D. Kreigh Park, contingent upon grant funding. 2011-2012 Annual Budget Program Budgets 167 Program Budgets Recreation Program Overview Parks & Recreation 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. Programs are provided at parks, schools, the Library, and at the Rec Room - a 1,370 sq. ft. storefront space on the southwest corner of La Canada Drive and Naranja Drive. FY 2010 Actual FY 2010 FY 2011 FY 2011 FY 2012 Variance Actual Budget Projected Budget to Bud et -18.0% -22.7% 0.0% Total Expenditures Recreation Manager 1.00 0.90 0.90 0.90 - Assistant Recreation Manager 1.00 0.90 0.90 0.90 - Recreation Leader 0.40 0.40 0.40 0.40 - Recreation Aide 3.05 2.70 2.70 1.501.20 Total FTEs 5.45 4.90 4.90 3.70 (1.20) FY 2010 Actual FY 2011 Budget FY 2011 Projected FY 2012 Budget Variance to Bud et Personnel Operations & Maintenance Capital $ 166,342 169,587 - $ 179,649 164,890 - $ 179,649 1441890 - $ 147,314 127,510 I - -18.0% -22.7% 0.0% Total Expenditures $ 3359929 $ 3449539 $ 3249539 1 $ 2749824 -20.2% FY 2011/2012 Expenditure and Staffing Changes Personnel Personnel costs decreased 18% due to a reduction in recreation aides. Operations & Maintenance Operations & Maintenance decreased 22.7% due to the shifting of certain recreation programs from contract to in-house. 2011-2012 Annual Budget Program Budgets 168 Program Budgets Trails Program Overview 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. FY 2010 Actual FY 2011 Budget FY 2011 Pro ected FY 2012 Variance Bud et to Bud et Multimodal Planner 1.00 0.90 0.90 0.90 - Total FTEs 1.00 0.90 0.90 0.90 - FY 2010 Actual FY 2011 Budget FY 2011 Projected FY 2012 Budget Variance to Bud et Personnel Operations & Maintenance Capital $ 69,616 939 - $ 64,053 17430 - $ 64,053 17903 - $ 63,475 2,340 - -0.9% 63.6% 0.0% Total Expenditures $ 70,555 $ 65,483 $ 65,9561$ 659815 0.5% FY 2011/2012 Expenditure and Staffing Changes Operations & Maintenance Operations & Maintenance increased 63.6% due to increases in travel & training. 2011-2012 Annual Budget 169 Program Budgets Program Budgets Aquatics Program Overview Parks & Recreation The Aquatics Division is responsible for the safe operation, maintenance and management of the Oro Valley Municipal Pool. This facility includes an Olympic sized swimming pool, a wading pool, canteen, office and bath house. The pool is open year-round and hosts over 120,000 visitors per year. FY 2011/2012 Expenditure and Staffing Changes Personnel ,Personnel costs increased 3.3% due to a slight increase in water safety instructors. jOperations & Maintenance Operations & Maintenance decreased 20.4% due to reductions in utilities costs. 2011-2012 Annual Budget Program Budgets 170 FY 2010 FY 2011 FY 2011 FY 2012 Variance -Budget Actual Budget Projected Budget to Budget Operations & Maintenance 2491142 219,645 219,645 174,879 -20.4% Capital - - - Aquatics Manager 1.00 1.00 1.00 1.00 - Water Safety Instructor 9.30 6.15 6.15 6.32 0.17 Total FTEs 10.30 7.15 7.15 7.32 0.17 FY 2011/2012 Expenditure and Staffing Changes Personnel ,Personnel costs increased 3.3% due to a slight increase in water safety instructors. jOperations & Maintenance Operations & Maintenance decreased 20.4% due to reductions in utilities costs. 2011-2012 Annual Budget Program Budgets 170 FY 2010 FY 2011 FY 2011 FY 2012 Variance Actual Budget Projected -Budget to Budget Personnel $ 2987244 $ 231,956 $ 231,956 $ 239,586 3.3% Operations & Maintenance 2491142 219,645 219,645 174,879 -20.4% Capital - - - 17,500 0.0% Total Expenditures $ 5477386 $ 451,601 $ 4519601 $ 431,965 -4.3% FY 2011/2012 Expenditure and Staffing Changes Personnel ,Personnel costs increased 3.3% due to a slight increase in water safety instructors. jOperations & Maintenance Operations & Maintenance decreased 20.4% due to reductions in utilities costs. 2011-2012 Annual Budget Program Budgets 170 Program Budgets Library Program Overview Library The Library Division operates and maintains the Oro Valley Public Library as an affiliate of the Pima County Public Library system. The Library operates a 25,000 square foot facility with 50 hours of operation per week. The Library had almost a quarter of a million visitors last year and processed about 800,000 circulation transactions. �J L� FY 2011/2012 Expenditure and Staffing Changes •i n Maintenance Operat o s & Operations & Maintenance decreased 9.3% due to reductions in utilities costs. 2011-2012 Annual Budget Program Budgets 171 FY 2010 FY 2011 FY 2011 FY 2012 Variance Budget Actual Budget Projected Budget to Bud et $ 841,081 $ 815,768 $ 815,768 $ 804,627 ■•.�- Library Services Manager 1.00 1.00 1.00 1.00 - Librarian 4.00 4.00 4.00 4.00 - Library Associate 4.95 4.95 4.95 4.48 (0.47) Library Page 3.05 3.05 3.05 3.00 (0.05) Customer Service Rep 4.50 4.36 4.36 4.54 0.18 Office Specialist 1.00 1.00 1.00 1.00 - Total FTEs 18.50 18.36 18.36 18.02 (0.34) �J L� FY 2011/2012 Expenditure and Staffing Changes •i n Maintenance Operat o s & Operations & Maintenance decreased 9.3% due to reductions in utilities costs. 2011-2012 Annual Budget Program Budgets 171 FY 2010 FY 2011 FY 2011 FY 2012 Variance Actual Budget Projected Budget to Bud et Personnel $ 841,081 $ 815,768 $ 815,768 $ 804,627 -1.4% Operations & Maintenance 358,111 343,260 328,260 311,188 -9.3% Capital 59425 - - - 0.0% Total Expenditures $ 192049617 $ 191597028 $ 1,144,028 $ 191159815 -3.7% �J L� FY 2011/2012 Expenditure and Staffing Changes •i n Maintenance Operat o s & Operations & Maintenance decreased 9.3% due to reductions in utilities costs. 2011-2012 Annual Budget Program Budgets 171 Program Budgets Administration Program Overview Cultural Resources Cultural Resources Administration provides administrative oversight for the division, staff support for the Historic Preservation Commission, and handles all public inquiries. Additionally, Administration writes and manages grants, coordinates with other Town divisions and departments, and facilitates partnerships with outside agencies. FY 2011/2012 Expenditure and Staffing Changes Personnel Personnel costs increased 1.6% due to a change in benefits coverage of an employee. Operations & Maintenance a Operations & Maintenance budgeted for FY 2012 will cover costs associated with Arizona centennial celebrations. 2011-2012 Annual Budget 172 Program Budgets FY 2010 FY 2011 FY 2011 FY 2012 Variance Actual Budget Projected Budget ud et to Barm - ,- Personnel $ - $ 26,111 $ 26,111 PRL&CR Director - 0.10 0.10 0.10 - Multimodal Planner - 0.10 0.10 0.10 - Senior Office Specialist - 0.10 0.10 0.10 - Total FTEs - 0.30 0.30 0.30 - FY 2011/2012 Expenditure and Staffing Changes Personnel Personnel costs increased 1.6% due to a change in benefits coverage of an employee. Operations & Maintenance a Operations & Maintenance budgeted for FY 2012 will cover costs associated with Arizona centennial celebrations. 2011-2012 Annual Budget 172 Program Budgets FY 2010 FY 2011 FY 2011 FY 2012 Variance Actual Budget Projected Budget to Bud et Personnel $ - $ 26,111 $ 26,111 $ 26,520 1.6% Operations & Maintenance - - - 2,000 0.0% Capital - - - - 0.0% Total Expenditures $ - $ 269111 $ 269111 $ 28,520 1 9.2% FY 2011/2012 Expenditure and Staffing Changes Personnel Personnel costs increased 1.6% due to a change in benefits coverage of an employee. Operations & Maintenance a Operations & Maintenance budgeted for FY 2012 will cover costs associated with Arizona centennial celebrations. 2011-2012 Annual Budget 172 Program Budgets Program Budgets Naranja Park Program Overview Cultural Resources This program area provides for the maintenance and management of this 213 -acre passive park. Additionally, the Town has received donated funding for the park's future development. FY 2010 FY 2011 FY 2011 FY 2012 Variance Actual Budget Projected Budget to Bud et $ - $ 21,556 $ 21,556 - 27500 2,500 - - - $ 21,935 1,920 - Parks Maintenance Manager - 0.10 0.10 0.10 - Parks Maintenance Crew Lead - 0.10 0.10 0.10 - Senior Parks Maint Worker - 0.10 0.10 0.10 - Parks Maintenance Worker - 0.10 0.10 0.10 - Total FTEs - 0.40 0.40 0.40 - FY 2010 FY 2011 FY 2011 Actual Budget Projected FY 2012 Budget Variance to Bud et Personnel Operations & Maintenance Capital $ - $ 21,556 $ 21,556 - 27500 2,500 - - - $ 21,935 1,920 - 1.8% -23.2% 0.0% Total Expenditures $ - $ 24,056 $ 24,056 $ 237855 -0.8% FY 2011/2012 Expenditure and Staffing Changes Operations & Maintenance Operations & Maintenance decreased 23.2% due to reduced waste disposal costs at the park. 2011-2012 Annual Budget 173 Program Budgets Program Budgets Steam Pump Ranch Program Overview Cultural Resources Expenditures for Steam Pump Ranch consist of building and infrastructure assessment of the historic site and related staff costs. The project represents Oro Valley's efforts to preserve the history and culture of the Town. FY 2010 FY 2011 FY 2011 FY 2012 Variance Actual Budget Projected Budget to Budget Variance Actual Parks Maintenance Manager - 0.10 0.10 0.10 - Parks Maintenance Crew Lead - 0.10 0.10 0.10 - Senior Parks Maint Worker - 0.10 0.10 0.10 - Parks Maintenance Worker - 0.10 0.10 0.10 - Recreation Manager - 0.10 0.10 0.10 - Assistant Recreation Manager - 0.10 0.10 0.10 - Total FTEs - 0.60 0.60 0.60 - FY 2011/2012 Expenditure and Staffing Changes Operations & Maintenance Operations & Maintenance decreased 4.7% due to reductions in utilities and grounds repair & maintenance costs. Capital Capital decreased 100% due to completion of site stabilization. No capital outlay is planned for FY 2012. Other Financing Uses Other Financing Uses decreased 100%. Steam Pump Ranch expenditures had previously been budgeted in a separate Steam Pump Ranch Fund, with transfers from the General Fund budgeted as needed. For FY 2012, costs related to Steam Pump Ranch have been collapsed into the General Fund. Thus, transfers from the General Fund are no longer required. L- - 2011-2012 Annual Budget 174 Program Budgets FY 2010 FY 2011 FY 2011 FY 2012 Variance Actual Budget Projected Budget to Budget Personnel $ - $ 33,606 $ 331606 $ 33,601 0.0% Operations & Maintenance 29,310 43,000 18,000 41,000 -4.7% Capital 551653 499,000 3811190 - -100.0% Other Financing Uses - 367,000 367,000 - -100.0% Total Expenditures $ 849963 $ 9429606 $ 7999796 $ 74,601 -92.1 FY 2011/2012 Expenditure and Staffing Changes Operations & Maintenance Operations & Maintenance decreased 4.7% due to reductions in utilities and grounds repair & maintenance costs. Capital Capital decreased 100% due to completion of site stabilization. No capital outlay is planned for FY 2012. Other Financing Uses Other Financing Uses decreased 100%. Steam Pump Ranch expenditures had previously been budgeted in a separate Steam Pump Ranch Fund, with transfers from the General Fund budgeted as needed. For FY 2012, costs related to Steam Pump Ranch have been collapsed into the General Fund. Thus, transfers from the General Fund are no longer required. L- - 2011-2012 Annual Budget 174 Program Budgets Police .............. .. The Oro Valley Police Department (OVPD) is committed to providing needed 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 Total FY 2010 FY 2011 FY 2012 Actual Budget Projected Budget 128.60 1 129.08 124.73 129.63 FxnditurQs by C' Federal Grants State Grants Report Copying Impound Processing Other FY 2010 FY 2011 FY 2012 % Budget Projected FY 2010 FY 2011 Actual Budget to Budget Administration $ 1,441,561 $ 1,021,690 $ 1,097,158 $ 999,545 -2.2% Support Services 4,2591198 41488,373 4,360,275 49781,095 6.5% Field Services 51699,008 5,694,028 5,589,224 5,952,970 4.5% Training & Reserves 260,855 316,482 235,132 303,390 -4.1% Professional Standards 1071240 103,204 104,326 105,500 2.2% 5.2% $ 1177677862 $ 117623,777 $ 117386,115 $ 12,1429500 4.5% Federal Grants State Grants Report Copying Impound Processing Other FY 2012 Expenditures by Division FY 2012 Expenditures by Category Support Services O&M 4,781,095 - 17110,493 Admin 39% 9% 999,545 8% Training & iGrant Funded Reserves" q „p� Capital 303,390,, oField Servicesz � 103,617 5,952,970R�. .... . 1 /o Prof.° Personnel Standards 105,500 _-- _- _- 10,928,390 1% 90% 2011-2012 Annual Budget 175 Program Budgets Revenue Sources FY 2010 FY 2011 FY 2012 % Actual Budget Projected Budget to Budget $ 434,789 $ 717,039 $ 647,756 $ 655,533 -8.6% 1175223 130,700 199,983 248,500 90.1% 20,354 18,150 27,884 201000 10.2% 55,210 60,000 50,000 50,000 -16.7% 8,431 8,000 8,000 8,000 0.0% $ 636,007 $ 9339889 $ 9335623 $ 9829033 5.2% FY 2012 Expenditures by Division FY 2012 Expenditures by Category Support Services O&M 4,781,095 - 17110,493 Admin 39% 9% 999,545 8% Training & iGrant Funded Reserves" q „p� Capital 303,390,, oField Servicesz � 103,617 5,952,970R�. .... . 1 /o Prof.° Personnel Standards 105,500 _-- _- _- 10,928,390 1% 90% 2011-2012 Annual Budget 175 Program Budgets Highlights & Goals Mission 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. FY 2011 Highlights IFY 2012 Goals and Objectives - Thousands of pounds of prescription medicine collected by the Dispose -A -Med program. The pills were disposed of in an environmentally sound manner and kept out of the hands of unintended users. - Two School Resource Officers received "SRO of the Year" by the Arizona School Resource Officer Association - OVPD Citizen Volunteer Assistance Program members contributed 16,964 volunteer hours - OVPD received nearly $300,000 in grants to purchase equipment and provide service to the community - Chaplaincy program has been formalized and implemented -One member of Command Staff attended and graduated the FBI National Academy - School Resource Officers provided 874 hours of teaching and classroom instruction to students in Oro Valley schools. This is an increase of 122 hours over the prior year. - Oro Valley Explorers placed 1st, 2nd, 3rd, 3rd, 3rd, 4th, 4th, and 5th out of 8 competitive exercises during the 2011 Explorer Competition in Colorado - Adopt -A -Business program presented at the Northern Pima County Chamber of Commerce. There are 130 businesses in the program involving 41 officers. - Completed Employee Awards Ceremony whereby 30 awards were presented to employees, volunteers and citizens. Eleven members received separate life saving awards. - OVPD Honor Guard along with Golder Ranch Fire Presented Colors at the 2011 MLB All-Star game at Chase Field in Phoenix at a pre- game tribute to the families of the January 8, 2011 shooting - The OVPD Traffic Unit addressed traffic complaints nearly 700 separate times as reported into the traffic hotline - OVPD received a "Special Recognition Award" from Pima County Sheriffs Department on April 14, 2011 for assisting in the January 8th incident - The OVPD opened a new substation at the Oro Valley Marketplace on Tangerine Road Focus Area: Leadership and Communication ■ Comprehensive approach to staffing and force management ❑ Implement Data Driven Approach to Crime and Traffic Statistics (DDACTS) program. ■ Expand law and legal training to commissioned personnel ❑ Provide legal update training from a subject matter expert ■ Employee recognition ❑ Continue the annual employee awards banquet to recognize outstanding performance from OVPD employees Focus Area: Finance and Economic Development ■ Partner with the business community on crime prevention and social harm resiliency/prevention ❑ OVPD will continue to foster relationships with local businesses through programs such as Adopt -A -Business and Dispose -A -Med. Business partnership projects such as Threat, Vulnerability, Risk Assessments of critical infrastructure and key resources will be formalized and implemented. ■ Review existing business practices to ensure budgeted funds are utilized in the most effective and responsible manner ❑ OVPD will evaluate partnership options with neighboring jurisdictions for fleet maintenance Focus Area: Community Infrastructure ■ Develop Town of Oro Valley Office of Emergency Management/Homeland Security ❑ Transition duties of the OVPD Regional Emergency Response Planner whose duties included the updating of the TOV Emergency Response Plan into an Emergency Manager. Future duties include quarterly emergency exercise and planning across all departments within the Town. ■ Efficient and effective facilities ❑ Pursue lease/purchase options of substation facilities rather than rent -only facilities ■ Evaluate emergency response plans for schools ❑ Revise and modify all emergency plans for every school in the town 2011-2012 Annual Budget 176 Program Budgets Measures & Indicators Performance Measures ► Percentage of Priority I calls responded to in less than five minutes ► Percentage of Priority II calls responded to in less than eight minutes ► Percentage of residents on OVPD Citizen Satisfaction Survey that rated neighborhood walking safety during the day as reasonably safe or above ► Percentage of residents on OVPD Citizen Satisfaction Survey that rated neighborhood walking safety during the night as reasonably safe or above ► Percentage of residents on OVPD Citizen Satisfaction Survey rating their police services above average (of those who indicated they had contact with the Police Department during the last 12 months) *** Unable to estimate or project opinions of citizens Police CY 2010 CY 2011 CY 2012 Actual Estimate Projected 84% 90% 90% 90% 90% 90% 97% *** *** 83% *** *** 94% *** *** Workload Indicators CY 2010 CY 2011 CY 2012 Actual Estimate Projected ► Calls for service 17,186 16,843 16,978 ► Number of incoming emergency and non -emergency phone calls 63,380 59,377 57,901 answered by police dispatchers ► Number of Priority I calls 260 262 277 ► Number of Priority II calls 833 600 491 ► Reported traffic accidents 506 496 493 2011-2012 Annual Budget 177 Program Budgets Organizational Chart ADMINISTRATION Chief of Police TRAINING & RESERVES SUPPORT SERVICES PROFESSIONAL STANDARDS FIELD SERVICES SUPPORT SERVICES II FIELD SERVICES ADMINISTRATION ADMINISTRATION CRIMINALPATROL SCHOOL RESOURCE INVESTIGATIONS OFFICER F F MOTOR/TRAFFIC TASK FORCE COMMUNITY RESOURCES COMMUNITY COMMUNICATIONS RECORDS ACTION TEAM PROPERTY/ID Police 2011-2012 Annual Budget 178 Program Budgets Program Budgets Police Haministration rro ram uvervlew 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. FY 2011/2012 Expenditure and Staffing Changes Operations & Maintenance Operations & Maintenance decreased 4.5%. This is due to reduced utility costs expected in FY 2012 as a result of energy efficiency upgrades completed in FY 2011, as well as reductions in telecommunications. 2011-2012 Annual Budget 179 Program Budgets FY 2010 FY 2011 FY 2011 FY 2012 Variance FY 2012 Actual Budge Projected Budget to Budget Budget Projected Budget 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 2011/2012 Expenditure and Staffing Changes Operations & Maintenance Operations & Maintenance decreased 4.5%. This is due to reduced utility costs expected in FY 2012 as a result of energy efficiency upgrades completed in FY 2011, as well as reductions in telecommunications. 2011-2012 Annual Budget 179 Program Budgets FY 2010 FY 2011 FY 2011 FY 2012 Variance Actual Budget Projected Budget to Bud et Personnel $ 514,418 $ 524,998 $ 524,9981$ 525,037 0.0% Operations & Maintenance 554,046 496,692 572,160 474,508 -4.5% Capital 350,769 - - - 0.0% Contingency 22,328 - - - 0.0% Total Expenditures $ 174417561 $ 170217690 $ 170977158 $ 9997545 -2.2% FY 2011/2012 Expenditure and Staffing Changes Operations & Maintenance Operations & Maintenance decreased 4.5%. This is due to reduced utility costs expected in FY 2012 as a result of energy efficiency upgrades completed in FY 2011, as well as reductions in telecommunications. 2011-2012 Annual Budget 179 Program Budgets Program Budgets Police i raining ana Keserves tarogram uverview Training and Reserves (formerly the Professional Development Unit) 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. Training and Reserves 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. FY 2010 FY 2011 FY 2011 Actual Budget Projected Reserve Officer 1.90 2.38 0.48 Training Officer 1.00 1.00 1.00 FY 2012 Bud et Variance to Budget Variance 2.38 1.00 - - Total FTEs 2.90 3.38 1.48 3.38 - FY 2011/2012 Expenditure and Staffing Changes Operations & Maintenance Operations & Maintenance decreased 7.7% due to a reduction in field supplies and travel & training, as well as the transfer of rental expenditures to Police Administration. 2011-2012 Annual Budget 180 Program Budgets FY 2010 FY 2011 FY 2011 FY 2012 Variance Actual Budget Projected Budget to Bud et or -7 1 w . M ' 1 Personnel $ 168,837 $ 2141782 $ 146,554 $ 209,533 -2.4% Operations & Maintenance 92,018 101,700 88,578 93,857 -7.7% Capital - - - - 0.0% Total Expenditures $ 260,855 $ 3167482 $ 235,132 $ 303,390 -4.1% FY 2011/2012 Expenditure and Staffing Changes Operations & Maintenance Operations & Maintenance decreased 7.7% due to a reduction in field supplies and travel & training, as well as the transfer of rental expenditures to Police Administration. 2011-2012 Annual Budget 180 Program Budgets Program Budgets r% r 1 r,d 1 1 r% n ' Police rroTessional otanaaras rro ram uvervlew FIt 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 incidences, vehicle pursuits and policy revisions. Finally, O.P.S. conducts the hiring process and background investigations for interested Police Department applicants. FY 2011/2012 Expenditure and Staffing Changes Operations & Maintenance Operations & Maintenance increased 150% due to an increase in outside professional services costs necessary for the hiring of highly qualified candidates. 2011-2012 Annual Budget 181 Program Budgets FY 2010 Actual FY 2011 Budget FY 2011 Pro ected FY 2012 Variance Budget to Bud et Actual Budget Projected Budget to Budget • - 4. ,g Sergeant 1.00 1.00 1.00 1.00 - Total FTEs 1.00 1.00 1.00 1.00 - FY 2011/2012 Expenditure and Staffing Changes Operations & Maintenance Operations & Maintenance increased 150% due to an increase in outside professional services costs necessary for the hiring of highly qualified candidates. 2011-2012 Annual Budget 181 Program Budgets FY 2010 FY 2011 FY 2011 FY 2012 Variance Actual Budget Projected Budget to Budget • - 4. ,g Personnel $ 102,705 $ 101,004 $ 101,0041$ 100,000 -1.0% Operations & Maintenance 4,535 2,200 3,322 5,500 150.0% Ca ital - - - - 0.0% Total Expenditures $ 1071240 $ 1039204 $ 1047326 $ 105,500 2.2% FY 2011/2012 Expenditure and Staffing Changes Operations & Maintenance Operations & Maintenance increased 150% due to an increase in outside professional services costs necessary for the hiring of highly qualified candidates. 2011-2012 Annual Budget 181 Program Budgets Program Budgets Support Services Program Overview 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. FY 2011/2012 Expenditure and Staffing Changes Operations & Maintenance Operations & Maintenance decreased 55.7% due to a reduction in travel and training. 2011-2012 Annual Budget 182 Program Budgets FY 2010 FY 2011 FY 2011 FY 2012 Variance FY 2012 Actual Budget Projected Budget to Bud et Budget Pro ected Budget to Budget Commander 1.00 1.00 1.00 1.00 - Lieutenant 2.00 2.00 2.00 2.00 - Office Specialist 1.00 1.00 1.00 1.00 - Total FTEs 4.00 4.00 4.00 4.00 - FY 2011/2012 Expenditure and Staffing Changes Operations & Maintenance Operations & Maintenance decreased 55.7% due to a reduction in travel and training. 2011-2012 Annual Budget 182 Program Budgets FY 2010 FY 2011 FY 2011 FY 2012 Variance Actual Budget Pro ected Budget to Budget Personnel $ 425,878 $ 4341209 $ 434,209 $ 431,314 -0.7% Operations & Maintenance 9,529 9,700 9,700 4,300 -55.7% Capital - - - - 0.0% Contingency 181406 - - - 0.0% Total Expenditures $ 453,813 $ 443,909 $ 4437909 $ 435,614 t -1.9% FY 2011/2012 Expenditure and Staffing Changes Operations & Maintenance Operations & Maintenance decreased 55.7% due to a reduction in travel and training. 2011-2012 Annual Budget 182 Program Budgets Program Budgets Criminal Investigations Unit Program Overview 0 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 are coordinated into two separate categories: Crimes against Person(s): Homicide, Sexual Assault, Aggravated Assault, etc. 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. FY 2010 FY 2011 FY 2011 Actual Budget Projected FY 2012 Budget Variance to Budget FY 2012 Budget Variance to Budget Sergeant Detective Crime Analyst 1.00 1.00 1.00 5.00 5.00 5.00 1.00 1.00 1.00 1.00 5.00 1.00 - - - Total FTEs 7.00 7.00 7.00 7.00 - FY 2010 Actual FY 2011 Budget FY 2011 Projected FY 2012 Budget Variance to Budget Personnel Operations & Maintenance Capital $ 631,110 8,399 - $ 637,314 15,708 - $ 637,314 15,708 - $ 622,925 13,725 - -2.3% -12.6% 0.0% Total Expenditures $ 6397509 $ 6537022 $ 65310221$ 636,650 t -2.5% FY 2011/2012 Expenditure and Staffing Chang, Personnel Personnel costs decreased 2.3% due to refilling of a position at a lower salary. Operations & Maintenance Operations & Maintenance decreased 12.6% due to a reduction in travel and tri 2011-2012 Annual Budget 183 Program Budgets Program Budgets ^—i—— — i r%—— — —- — terra— — -I A r, • FY 2010 FY 2011 FY 2011 Actual Budget Projected , FY 2012 Budget Variance to Budget Variance Sergeant SRO Officer 1.00 1.00 1.00 7.00 7.00 7.00 1.00 7.00 - - Total FTEs 8.00 8.00 8.00 1 8.00 - FY 2011/2012 Expenditure and Staffing Changes Operations & Maintenance Operations & Maintenance decreased 100%, mostly due to travel and training, which is not budgeted for this program area in FY 2012. Police 2011-2012 Annual Budget 184 Program Budgets FY 2010 FY 2011 FY 2011 FY 2012 Variance Actual Budget Projected Budget to Budget Personnel $ 672,542 $ 689,027 $ 689,027 $ 6907990 0.3% Operations & Maintenance 4,048 41170 4,170 - -100.0% Capital - - - - 0.0% Total Expenditures $ 676,590 $ 693,197 $ 693,197 1 $ 6909990 -0.3% FY 2011/2012 Expenditure and Staffing Changes Operations & Maintenance Operations & Maintenance decreased 100%, mostly due to travel and training, which is not budgeted for this program area in FY 2012. Police 2011-2012 Annual Budget 184 Program Budgets Program Budgets Task Force Operations Program Overview The OVPD is actively involved in multi -jurisdictional joint task forces across southern Arizona. Police 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. FY 2010 FY 2011 FY 2011 Actual Budget Projected Sergeant 1.00 1.00 1.00 Officer 7.00 7.00 7.00 FY 2012 Budget Variance to Bud et FY 2012 Budget Variance to Bud get 1.00 7.00 - - Total FTEs 8.00 8.00 8.00 8.00 - FY 2010 Actual FY 2011 Budget FY 2011 Projected FY 2012 Budget Variance to Bud get Personnel Operations & Maintenance Capital $ 7291225 - - $ 789,292 - 135,217 $ 789,292 - 135,217 $ 748,372 - 103,617 -5.2% 0.0% -23.4% Total Expenditures $ 7297225 $ 9247509 $ 9249509 $ 8517989 -7.8% FY 2011/2012 Expenditure and Staffing Changes Personnel Personnel costs decreased 5.2% due to regular reassignment of officers with differing salaries among program areas. Mir • Capital Capital decreased 23.4% due to grant funded vehicles that were budgeted in FY 2011. Capital expenditures within this 0 program area are generally considered contingent upon grant funding and vary widely from year to year. r 2011-2012 Annual Budget 185 Program Budgets Program Budgets Community Resources Program Overview 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. FY 2010 Actual FY 2011 Budget FY 2011 Projected FY 2012 Budget Variance to Budget Sergeant Officer 1.00 2.00 1.00 2.00 1.00 1.00 1.00 1.00 - 1.00 Total FTEs 3.00 3.00 2.00 L 2.00 (1.00) FY 2010 FY 2011 FY 2011 1 FY 2012 1 Variance Actual Budqet Proiected Budget to Budoet Personnel $ 2543914 $ 256,133 $ 203,304 $ 176,214 -31.2% Operations & Maintenance 47,210 46,670 46,670 341483 -26.1% Capital - - - - 0.0% Total Expenditures $ 302,124 $ 302,803 $ 2499974 $ 2109697 -30.4% FY 2011/2012 Expenditure and Staffing Changes Personnel Personnel costs decreased 31.2% due to an officer reassignment. i ';Operations & Maintenance Operations & Maintenance decreased 26.1 % due to a reduction in travel & training and utilities costs, as well as the transfer of rental expenditures to Police Administration. 2011-2012 Annual Budget 186 Program Budgets Program Budgets .ommunications Proararn Overview 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. FY 2011/2012 Expenditure and Staffing Changes Personnel Personnel costs increased 3.2% due to a change in overtime capacity. Operations & Maintenance Operations & Maintenance decreased 37.4% due to a reduction in travel and training. 2011-2012 Annual Budget 187 Program Budgets FY 2010 FY 2011 FY 2011 Actual Budget Projected FY 2012 Budget Variance to Budget_ Actual Budget Projected Budget to Budget Communications Supervisor Lead Dispatcher Dispatcher 1.00 1.00 1.00 3.00 3.00 3.00 9.00 9.00 9.00 1.00 1 3.00 9.00 - - Total FTEs 13.00 13.00 13.00 1 13.00 1- FY 2011/2012 Expenditure and Staffing Changes Personnel Personnel costs increased 3.2% due to a change in overtime capacity. Operations & Maintenance Operations & Maintenance decreased 37.4% due to a reduction in travel and training. 2011-2012 Annual Budget 187 Program Budgets FY 2010 FY 2011 FY 2011 FY 2012 Variance Actual Budget Projected Budget to Budget Personnel $ 780,822 $ 789,159 $ 737,9901$ 814,1741 3.2% Operations & Maintenance 4,501 5,350 5,220 3,350 -37.4% Capital - - - - 0.0% Total Expenditures $ 785,323 $ 7949509 $ 7437210 $ 8177524 2.9% FY 2011/2012 Expenditure and Staffing Changes Personnel Personnel costs increased 3.2% due to a change in overtime capacity. Operations & Maintenance Operations & Maintenance decreased 37.4% due to a reduction in travel and training. 2011-2012 Annual Budget 187 Program Budgets Program Budgets Records Program Overview 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. � w Records Supervisor Records Specialist Office Assistant FY 2010 Actual FY 2011 Budget FY 2011 Pro ected FY 2012 Budget Variance et to BudMINIM Budge Projected Bud et 1.00 1.00 1.00 6.00 6.00 5.00 1.70 1.70 1.25 1.00 5.00 1.25 - (1.00) 0.45 Total FTEs 8.70 8.70 7.25 7.25 (1.45) FY 2010 FY 2011 FY 2011 FY 2012 Variance owl Actual Budge Projected Bud et to Bud et Personnel $ 437,046 $ 432,037 $ 412,705 $ 344,477 -20.3% Operations & Maintenance 7,309 8,953 8,953 1,950 -78.2% Capital - - - - 0.0% Total Expenditures $ 444,355 $ 4407990 $ 421,658 $ 3469427 -21.4% FY 2011/2012 Expenditure and Staffing Changes Personnel Personnel costs decreased 20.3% due to positions that became vacant during FY 2011 and will not be refilled. Operations & Maintenance Operations & Maintenance decreased 78.2% due to a reduction in travel & training and the transfer of rental expenditures to Police Administration. 2011-2012 Annual Budget 188 Program Budgets Program Budgets Information Technology Program Overview 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. In FY 2010 and FY 2011, ITU program costs were budgeted in the Town's Information Technology Department. FY 2010 FY 2011 FY 2011 FY 2012 Variance Actual Budge Projected Budget to Budget Detective/IT Manager - - - 1.00 1.00 Total FTEs - - - 1.00 1.00 FY 2010 FY 2011 FY 2011 Actual Budget Projected FY 2012 Budget Variance I to Bud et Variance Personnel Operations & Maintenance Capital $ - $ - $ - - - - - - - $ 94,172 7,925 - 0.0% 0.0% 0.0% Total Expenditures $ - $ - $ - $ 102,0971 0.0% Fleet Maintenance Program Overview 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. In FY 2010 and FY 2011, fleet maintenance costs for all departments were budgeted in a separate Fleet Maintenance Internal Service Fund. Beginning FY 2012, the Police Department's fleet maintenance costs will be budgeted in the Police Department. FY 2010 FY 2011 FY 2011 FY 2012 Variance Actual Budget Projected Budget to Bud et Fleet Maintenance Mechanic II - - - 1.00 1.00 Total FTEs - - - 1 1.00 1.00 2011-2012 Annual Budget 189 Program Budgets FY 2010 FY 2011 FY 2011 FY 2012 Variance Actual Budge Projected Budget to Budget WWUTTIN .On Personnel $ - $ - $ - $ 59,150 0.0% Operations & Maintenance - - - 407,500 0.0% Capital - - - - 0.0% Total Expenditures $ - $ - $ - $ 4669650 0.0% 2011-2012 Annual Budget 189 Program Budgets Program Budgets Property/I.D. Program Overview 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. FY 2010 FY 2011 FY 2011 Actual Budget Projected FY 2012 Budget Variance to Budget FY 2012 Budget Variance to Budget Lead IT Forensic Tech Property/ID Technician 1.00 1.00 1.00 2.00 2.00 2.00 1.00 2.00 - Total FTEs 3.00 3.00 3.00 3.00 - FY 2010 Actual FY 2011 Budget FY 2011 Projected FY 2012 Budget Variance to Budget Personnel Operations & Maintenance Capital $ 2039477 24,782 - $ 200,934 34,500 - $ 197796 33,000 - $ 1911107 31,350 - -4.9% -9.1% 0.0% Total Expenditures $ 228,259 $ 235,434 $ 230,796 $ 2221457 -5.5% FY 2011/2012 Expenditure and Staffing Changes Personnel Personnel costs decreased 4.9% due to the refilling of a position at a lower salary. Operations & Maintenance Operations & Maintenance decreased 9.1 % due to reductions in travel & training and supplies. 2011-2012 Annual Budget 190 Program Budgets Program Budgets Field Services Division Overview Police 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. FY 2010 FY 2011 FY 2011 FY 2012 Variance Actual Budget Projected Budget to Budget Actual Budget 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 1.00 1.00 - Office Specialist 1.00 1.00 1.00 1.00 - Total FTEs 5.00 6.00 6.00 1 6.00 - FY 2011/2012 Expenditure and Staffing Changes Operations & Maintenance Operations & Maintenance decreased 34.5% due to a reduction in travel & training. 2011-2012 Annual Budget 191 Program Budgets FY 2010 FY 2011 FY 2011 FY 2012 Variance Actual Budget Projected Budget to Budget Personnel $ 313,499 $ 564,947 $ 564,947 $ 5519461 -2.4% Operations & Maintenance 3,469 3,280 2,050 21150 -34.5% Capital - - - - 0.0% Contingency 300 - - - 0.0% Total Expenditures $ 3179268 $ 5687227 $ 5667997 $ 553,611 -2.6% FY 2011/2012 Expenditure and Staffing Changes Operations & Maintenance Operations & Maintenance decreased 34.5% due to a reduction in travel & training. 2011-2012 Annual Budget 191 Program Budgets Program Budgets Patrol Proaram Overview 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 of the 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 accelerant components used to make explosive devices. Two separate canine breeds are used: German Shepard and Belgium Malinois. DUI OVPD has two (2) DUI officers dedicated to actively seeking impaired drivers. These officers have developed special skills in the area of Standard Field Sobriety Tests, Drug Recognition and Phlebotomy. The "rotational assignment" program has allowed OVPD to maintain two (2) Drug Recognition Experts (DREs) and six (6) phlebotomists. DUI officers assume the lead investigative role in impairment investigations initiated by patrol officers. The OVPD is a proud participant in the Southern Arizona DUI Task Force and participates in at least 13 DU l deployments each year. FY 2010 FY 2011 FY 2011 1 FY 2012 1 Variance Actual Budqet Proiected Budget to Budget Sergeant 6.00 6.00 6.00 6.00 - Lead Officer 6.00 5.00 6.00 6.00 1.00 K-9 Officer 4.00 4.00 3.00 3.00 (1.00) DUI Officer 2.00 2.00 2.00 2.00 - Officer 27.00 27.00 29.00 29.00 2.00 Total FTEs 45.00 44.00 46.00 46.00 2.00 FY 2011/2012 Expenditure and Staffing Changes Personnel Personnel costs increased 9.9%. The FY 2012 budget includes capacity for a lead officer position, which was not budgeted in FY 2011. In addition, overtime capacity has increased, one frozen officer position was filled due to 'available grant funding, and one officer was reassigned from another program area. Operations & Maintenance Operations & Maintenance decreased 38.8% due to reductions in travel & training and field supplies. 2011-2012 Annual Budget 192 Program Budgets FY 2010 FY 2011 FY 2011 FY 2012 Variance Actual Budget Projected Budget to Bud et Personnel $ 3,946,387 $ 3,647,686 $ 3,760,106 $ 4,009,346 9.9% Operations & Maintenance 19,996 21,905 19,519 13,395 -38.8% Capital 1,938 - - - 0.0% Total Expenditures $ 399687321 $ 396697591 $ 3,7799625 $ 410227741 9.6% FY 2011/2012 Expenditure and Staffing Changes Personnel Personnel costs increased 9.9%. The FY 2012 budget includes capacity for a lead officer position, which was not budgeted in FY 2011. In addition, overtime capacity has increased, one frozen officer position was filled due to 'available grant funding, and one officer was reassigned from another program area. Operations & Maintenance Operations & Maintenance decreased 38.8% due to reductions in travel & training and field supplies. 2011-2012 Annual Budget 192 Program Budgets Program Budgets Motor/Traffic Unit Program Overview 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. FY 2010 FY 2011 FY 2011 FY 2012 Variance Actual Budget Projected Budget to Bud et Personnel Operations & Maintenance Capital 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 1.00 1.00 1.00 - Motorcycle Officer 7.00 7.00 6.00 7.00 - Total FTEs 10.00 10.00 9.00 1 10.00 - FY 2010 Actual FY 2011 Budget FY 2011 Projected FY 2012 Budget Variance to Bud et Personnel Operations & Maintenance Capital $ 906,409 12,530 - $ 893,131 19,550 - $ 716,782 19,000 - $ 881,101 16,500 - -1.3% -15.6% 0.0% Total Expenditures $ 918,939 $ 9129681 $ 7359782 $ 8977601 -1.7% FY 2011/2012 Expenditure and Staffing Changes Operations & Maintenance Operations & Maintenance decreased 15.6% due to reductions in travel & training and field supplies. 2011-2012 Annual Budget 193 Program Budgets Program Budgets Community Action Team Program Overview 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. Sergeant Lead Officer Officer Total FTEs FY 2010 Actual FY 2011 Budget FY 2011 Pro ected FY 2012 Bud et Variance to Bud et Actual Budget Projected Bud et to Budget $ 479,017 1.00 1.00 4.00 1.00 1.00 4.00 1.00 1.00 3.00 1.00 1.00 3.00 - - 1.00 6.00 6.00 5.00 5.00 (1.00) FY 2011/2012 Expenditure and Staffing Changes Personnel Personnel costs decreased 11.7% due to an officer vacancy. Operations & Maintenance Operations & Maintenance decreased 100% due to travel and training, which is not budge for this program area in FY 2012. 2011-2012 Annual Budget 194 Program Budgets FY 2010 FY 2011 FY 2011 FY 2012 Variance Actual Budget Projected Bud et to Budget $ 479,017 -11.7% Personnel $ 4917746 $ 542,529 $ 505,820 Operations & Maintenance 2,734 1,000 1,000 - -100.0% Capital - - - - 1 0.0% Total Expenditures $ 4947480 $ 5437529 $ 5067820 $ 479,017 1 -11.9% FY 2011/2012 Expenditure and Staffing Changes Personnel Personnel costs decreased 11.7% due to an officer vacancy. Operations & Maintenance Operations & Maintenance decreased 100% due to travel and training, which is not budge for this program area in FY 2012. 2011-2012 Annual Budget 194 Program Budgets Water Utility V a Ty IThe 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. Total FY 2010 FY 2011 FY 2012 Actual Budget ProjectedBud et 35.00 36.00 34.00 36.00 Does not include non-cash outlays for depreciation and amortization 784,250 i I FY 2010 FY 2011 FY 2012 % Budget Projected FY 2012 Actual Budget to Budget Administration $ 476957726 $ 6,706,253 $ 6,3307816 $ 6,801,084 1.4% Engineering & Planning 2,2617927 4,8207678 27045,953 3,890,784 -19.3% Production 2,3007276 276597108 273951700 2,418,808 -9.0% Distribution 8177099 792,110 7907825 7847250 -1.0% - - $1050759028 $14,978,149 $ 11,563,294 $13,8949926 -7.2% Does not include non-cash outlays for depreciation and amortization FY 2012 Expenditures by Division FY 2012 Expenditures by Category Distribution 784,250 i I Revenue Sources Personnel FY 2010 FY 2011 FY 2012 % Budget Projected 17% Actual Budget to Budget Charges for Services $ 5257227 $ 458,700 $ 4637075 $ 445,200 -2.9% State Grants - 35,000 - - -100.0% Interest 27,275 44,000 13,600 16,300 -63.0% Miscellaneous 17804 - - - 0.0% WIFA Loan Proceeds - 17800,000 570,000 700,000 -61.1% Water Sales 12,071,031 11,6897300 11,682,799 11,682,799 -0.1% Other FinancingSources - 1007000 - 100,000 0.0% $1296259337 $14,127,000 $ 12,7299474 $127944,299 -8.4% FY 2012 Expenditures by Division FY 2012 Expenditures by Category Distribution 784,250 Debt Service ={ ------ Personnel 6% 2,805,717 --- ------ 2,422,709 20% 17% Production Administration 2,418,808 6,801,084 f �r 17% 49% Other Financing ----------1 Uses 5,295 0% Engineering & Planning Capital O&M 3,890,784 4,162,000- - 4,499,205 28% 30% 33% 2011-2012 Annual Budget Program Budgets 195 Highlights & Goals Mission Water Utility Ero Valley Water Utility has the responsibility and obligation to ensure that safe, high quality and reliable g water is delivered to every customer. The Utility ensures that adequate amounts of water and pressure are le at all times. The Utility will strive to develop, finance and maintain all infrastructures deemed necessary to ublic safety needs. The Utility staff shall strive to treat all customers with respect, courtesy and sionalism and provide the highest quality of customer service. CY 2010 Highlights I FY 2012 Goals and Objectives - The Utility took 5,891 water quality samples with all results meeting federal, state, and local water quality regulations - Increased customer base by 73 new connections for a total of 18,474 connections as of 12/31/10 - Potable water deliveries were 2,358,509,000 gallons - Reclaimed water deliveries were 637,690,000 gallons - The Utility performed 178 residential water use audits; customers continue to save water as a result of these audits - Replaced 505 water meters of varying sizes - Recharged 4,000 acre feet of Central Arizona Project (CAP) water - Reduced debt service by making final payment for Central Arizona Water Conservation District (CAWCD) water rights loan - Installed additional water system security features and updated the Emergency Response Plan - In cooperation with the Northwest Water Providers, the Utility has continued to study water quality, distribution, delivery and recharge and recovery for our CAP water delivery system - Pursued an Intergovernmental Agreement for the interim delivery of our CAP water through the Tucson Water system - Capital improvements during the past year include the equipping of Well E-1 B, La Canada 24 -inch water main, and continued construction of the La Canada 3 MG Reservoir - Design of Lambert Lane main replacement, chlorine storage and Campo Bello water main improvements Focus Area: Finance and Economic Development ■ Review water rates, fees and charges to ensure costs incurred by the Utility to provide services are being recovered through the rates and fees charged ■ Reduce debt when feasible ■ When feasible, seek low interest loans through state agencies to finance capital improvements ■ Review water improvement plans for new development ■ Develop and use renewable water supplies for existing and future customers Focus Area: Community Infrastructure ■ Maintain a high quality, safe and reliable drinking water supply ■ Construct potable water facilities to meet demands and enhance system reliability ■ Install additional security equipment to protect the safety of the potable water supply ■ Construct and inspect water facilities in accordance with approved plans and specifications ■ Energy efficiency improvements ■ Conduct water resource planning for existing and future needs ■ Interim delivery of CAP water through the Tucson Water System ■ Long-term planning for treatment and delivery of Central Arizona Project water Focus Area: Leadership and Communication ■ Continue to provide excellent customer service ■ Continue to promote water conservation through water use audits, public education and outreach 2011-2012 Annual Budget Program Budgets 196 Measures & Indicators Performance Measures Water Utility Workload Indicators ► Percentage of valves in distribution system exercised ► Number of metered connections ► Number of water plans approved ► Feet of pipeline inspected ► Number of water plans inspected ► Percentage of unplanned service outages as a percentage of total annual customer hours ► Number of water meters replaced ► Number of operating wells rehabilitated (out of 20 well sites) ► Number of resorvoirs cleaned and inspected (out of 18 reservoir sites) FY 2010 FY 2010 FY 2011 FY 2012 Estimate Actual Estimate Projected ► Number of voluntary water conservation audits 182 139 140 ► Debt service coverage (annual net operating revenue divided by 1.9 1.7 1.8 annual debt service) for water revenue bonds (goal 1.3 minimum) 23,250 9 7 ► Number of years worth of reserves contained in groundwater storage 3.6 3.3 3.0 accounts (data for calendar year) 533 2,300 3 ► 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 Workload Indicators ► Percentage of valves in distribution system exercised ► Number of metered connections ► Number of water plans approved ► Feet of pipeline inspected ► Number of water plans inspected ► Percentage of unplanned service outages as a percentage of total annual customer hours ► Number of water meters replaced ► Number of operating wells rehabilitated (out of 20 well sites) ► Number of resorvoirs cleaned and inspected (out of 18 reservoir sites) FY 2010 FY 2011 FY 2012 Actual Estimate Projected 20% 20% 20% 18,441 18,502 18,537 12 14 15 8,100 3,200 23,250 9 7 12 0.002% 0.001% 0.003% 579 533 2,300 3 2 2 5 5 5 2011-2012 Annual Budget Program Budgets 197 Organizational Chart WATER UTILITY DIRECTOR ADMINISTRATIVE SUPPORT Water Utility UTILITY ADMINISTRATION ENGINEERING/OPERATIONS DIVISION WATER CUSTOMER METERS WATER WATER ENGINEERING & CONSERVATION SERVICE PRODUCTION DISTRIBUTION PLANNING 2011-2012 Annual Budget 198 Program Budgets Program Budgets Administration Division Overview Water Utility 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 FY 2010 FY 2011 FY 2011 FY 2012Variance FY 2011 Budget Actual Budget Projected Budget to Budget 1.00 - Water Utility Director 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 Reader Supervisor 1.00 1.00 1.00 1.00 - Water Utility Operator 1 4.00 5.00 4.00 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 14.00 15.00 14.00 15.00 - noes nor incivae non-casn ourlays Tor aepreciarion ana amorrizarlon FY 2011/2012 Expenditure and Staffing Changes Capital Capital increased 55% due to a relatively large meter replacement project budgeted for FY 2012. Other Financing Uses Other financing uses decreased 94.5% due to fleet costs that are now budgeted as operations & maintenance. 2011-2012 Annual Budget Program Budgets 199 FY 2010 Actual FY 2011 Budget FY 2011 Projected FY 2012 Budget Variance to Budget Personnel $ 960,934 $ 969,728 $ 969,728 $ 966,592 1 -0.3% Operations & Maintenance 2,3077341 2,0007005 1,6241568 2,158,480 7.9% Capital 164,343 558,197 558,197 865,000 55.0% Other Financing Uses 83,835 95,642 957642 5,295 -94.5% Debt Service 1,179,273 3,0827681 3,082,681 2,805,717 -9.0% Total Expenditures $ 49695,726 $ 697069253 $ 693309816 $ 6,801,084 1.4% noes nor incivae non-casn ourlays Tor aepreciarion ana amorrizarlon FY 2011/2012 Expenditure and Staffing Changes Capital Capital increased 55% due to a relatively large meter replacement project budgeted for FY 2012. Other Financing Uses Other financing uses decreased 94.5% due to fleet costs that are now budgeted as operations & maintenance. 2011-2012 Annual Budget Program Budgets 199 Program Budgets Engineering & Planning Division Overview Water Utility 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 FY 2010 FY 2011 FY 2011 FY 2012 Variance Actual Budget Projected Budget to Budget Personnel Operations & Maintenance Capital 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 2010 Actual FY 2011 Budget FY 2011 Projected FY 2012 Budget Variance to Budget Personnel Operations & Maintenance Capital $ 480,135 127,193 1,654,599 $ 4897027 1417651 4,190,000 $ 489,027 116,026 1,440,900 $ 4847408 121,376 37285,000 -0.9% -14.3% -21.6% Total Expenditures $ 212619927 $ 49820,678 $ 270459953 $ 3,890,784 -19.3% FY 2011/2012 Expenditure and Staffing Changes Operations & Maintenance Operations & Maintenance decreased 14.3% due to decreases in outside professional services and memberships & subscriptions. Capital Capital decreased 21.6% due to completion of several capital projects. 2011-2012 Annual Budget Program Budgets 200 Program Budgets Operations Division - Production Overview Water Utility 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 uoes nor Incluae non-casn ouriays Tor aepreclation ana amortizarion FY 2011/2012 Expenditure and Staffing Changes Operations & Maintenance Operations & Maintenance decreased 9.4% due to decreases in electricity costs, equipment repair & maintenance costs and purchases of reclaimed water. Capital Capital decreased 50% due to decreases in security equipment purchases. 2011-2012 Annual Budget 201 Program Budgets FY 2010 FY 2011 FY 2011 FY 2012 Variance Budget Actual Budget Projected Budget to Budget $ 424,592 $ 4571471 $ 409,802 $ 434,399 ,,.. • Water Production Superintendent 1.00 1.00 1.00 1.00 - Lead Water Utility Operator 1.00 1.00 1.00 1.00 - Water Utility Operator II 5.00 5.00 4.00 5.00 - Total FTEs 7.00 7.00 6.00 7.00 - uoes nor Incluae non-casn ouriays Tor aepreclation ana amortizarion FY 2011/2012 Expenditure and Staffing Changes Operations & Maintenance Operations & Maintenance decreased 9.4% due to decreases in electricity costs, equipment repair & maintenance costs and purchases of reclaimed water. Capital Capital decreased 50% due to decreases in security equipment purchases. 2011-2012 Annual Budget 201 Program Budgets FY 2010 FY 2011 FY 2011 FY 2012 Variance Actual Budget Projected Budget to Budget r � r Personnel $ 424,592 $ 4571471 $ 409,802 $ 434,399 -5.0% Operations & Maintenance 1,862,455 2,177,637 1,975,898 1,9727409 -9.4% Capital 13,229 24,000 107000 12,000 -50.0% Total Expenditures $ 29300,276 $ 296599108 $ 293959700 $ 214189808 -9.0% uoes nor Incluae non-casn ouriays Tor aepreclation ana amortizarion FY 2011/2012 Expenditure and Staffing Changes Operations & Maintenance Operations & Maintenance decreased 9.4% due to decreases in electricity costs, equipment repair & maintenance costs and purchases of reclaimed water. Capital Capital decreased 50% due to decreases in security equipment purchases. 2011-2012 Annual Budget 201 Program Budgets Program Budgets Operations Division - Distribution Overview 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 FY 2010 FY 2011 FY 2011 FY 2012 Variance Actual Budget Projected Budget to Budget Budget Projected Budget 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 II 2.00 4.00 4.00 4.00 - Water Utility Operator 1 2.00 - - - - Total FTEs 8.00 8.00 8.00 8.00 - FY 2010 FY 2011 FY 2011 FY 2012 Variance Actual Budget Projected Budget to Budget Personnel $ 535,166 $ 544,035 $ 544,035 $ 537,310 -1.2% Operations & Maintenance 2771498 2481075 246,790 246,940 -0.5% Capital 4,435 - - - 0.0% Total Expenditures $ 8179099 $ 7927110 $ 7909825 $ 784,250 -1.0% 2011-2012 Annual Budget Program Budgets 202 Water Utility Alternative Water Resource Development 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 a groundwater preservation fee and impact fees. Specific activities include analysis, planning, design and construction of infrastructure required to deliver alternative water resources (Central Arizona Project and reclaimed water) to the Town. FY 2011/2012 Expenditure Changes Operations & Maintenance Operations & Maintenance decreased 31.5% due to a decrease in outside professional services. Capital FY 2012 budgeted capital will be used for a transmission/distribution main. Debt Service Debt service decreased 35.7% due to payoff of an outstanding loan in FY 2011. 2011-2012 Annual Budget 203 Program Budgets FY 2010 FY 2011 FY 2011 FY 2012 Variance Actual Budget Projected Budget to Budge Actual Budget Operations & Maintenance $ 113,768 $ 313,660 $ 334,440 $ 214,775 -31.5% Capital 95,593 - - 5157000 0.0% Debt Service 996,299 27785,918 29781,912 19789,978 -35.7% Other Financing Uses - 100,000 - 1007000 0.0% Total Expenditures $ 192057660 $ 311999578 $ 391169352 $ 296199753 -18.1% FY 2011/2012 Expenditure Changes Operations & Maintenance Operations & Maintenance decreased 31.5% due to a decrease in outside professional services. Capital FY 2012 budgeted capital will be used for a transmission/distribution main. Debt Service Debt service decreased 35.7% due to payoff of an outstanding loan in FY 2011. 2011-2012 Annual Budget 203 Program Budgets FY 2010 FY 2011 FY 2012 Variance Actual Budget Projected Budget to Budget Groundwater Preservation Fee $ 177691142 $ 272987285 $ 27016,440 $ 214231500 5.4% Impact Fees 475,973 468,308 4131000 219, 200 -53.2% WIFA Loan Proceeds - - - - 0.0% Interest 6,388 8,000 27754 21684 -66.5% Total Revenues $ 212519503 $ 29774,593 $ 274329194 $ 2,6459384 -4.7% FY 2011/2012 Expenditure Changes Operations & Maintenance Operations & Maintenance decreased 31.5% due to a decrease in outside professional services. Capital FY 2012 budgeted capital will be used for a transmission/distribution main. Debt Service Debt service decreased 35.7% due to payoff of an outstanding loan in FY 2011. 2011-2012 Annual Budget 203 Program Budgets Water Utility Potable Water Systems Development 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. FY 2011/2012 Expenditure Changes Capital Capital decreased 78.4% due to a large reservoir project undertaken in FY 2011. 2011-2012 Annual Budget Program Budgets 204 FY 2010 FY 2011 FY 2011 FY 2012 Variance Actual Budget Projected Bud et to Bud et Actual Budget Capital $ - $ 314303000 $ 23740,000 $ 740,000 -78.4% Debt Service 5131855 6397671 6391671 6397920 0.0% Other Financing Uses - - - - 0.0% Miscellaneous - - - - 0.0% Total Expenditures $ 513,855 $ 490699671 $ 373799671 $ 11379,920 -66.1% FY 2011/2012 Expenditure Changes Capital Capital decreased 78.4% due to a large reservoir project undertaken in FY 2011. 2011-2012 Annual Budget Program Budgets 204 Revenue Sources FY 2010 FY 2011 FY 2012 Variance Actual Budget Projected Budget to Budget Single Family Connections $ 1967227 $ 1697422 $ 1263431 $ 897845 -47.0% Multi - Family Connections - - - - 0.0% Commercial Connections 637710 411120 677820 107280 -75.0% Irrigation Connections 231980 327700 107780 10,900 -66.7% TURF Connections - - - - 0.0% Fire Flow Connections 9,690 67460 97690 37230 -50.0% Interest 367666 337500 167034 137323 -60.2% Total Revenues $ 330,273 $ 2839202 $ 230,755 $ 127,578 -55.0% FY 2011/2012 Expenditure Changes Capital Capital decreased 78.4% due to a large reservoir project undertaken in FY 2011. 2011-2012 Annual Budget Program Budgets 204 W ro Capital Asset Replacement Fund The Capital Asset Replacement Fund was established to allow the Town to accumulate the money needed to replace its fleet of General Fund cars, trucks and other equipment, as well as computers, telephone systems and other technology - related equipment. Town departments pay into the fund based on a percent of their annual fixed asset depreciation. Replacement equipment is purchased according to an established replacement schedule and paid for from this fund. Beginning FY 2012, these expenditures are budgeted directly in the General Fund within the applicable department(s). FY 2010 FY 2011 FY 2011 FY 2012 Variance Actual Budget Projected Budget to Budget Capital $ - $ 444,938 $ 3141938 $ - -100.0% Total Expenditures $ - $ 4447938 $ 314,938 $ - -100.0% FY 2010 FY 2011 FY 2012 Variance Actual Budget Projected Budget to Budget Other Financing Sources $ - $ - $ - $ - 0.0% Total Revenues $ - $ - $ - $ - 0.0% FY 2011/2012 Expenditure Changes Capital Capital decreased 100%, as these expenditures will be budgeted directly in the General Fund beginning FY 2012. 2011-2012 Annual Budget Program Budgets 205 Municipal Debt Service Fund The Municipal Debt Service Fund allocates money fo principal and interest payments on the issuance of Municipal Property. 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 new Clean Renewable Energy Bonds (CREBS). Repayment of debt is pledged with excise sales tax, state shared revenue and other permit and fee revenues. Operations & Maintenance Debt Service FY 2010 FY 2011 FY 2011 Actual Budget Projected FY 2012 Budget Variance to Budget Revenue Sources $ 26,570 $ 10,000 $ 10,000 7,4441052 459,759 489,140 $ 10,000 619,521 0.0% 34.7% Total Expenditures $ 794709622 $ 4699759 $ 499,140 $ 629,521 34.0% FY 2011/2012 Expenditure Changes Debt Service Debt service increased 34.7% due to capacity for principal and interest payments on the Town's newly issued Clean Renewable Energy Bonds (CREBS). Utility savings, utility rebates, and a federal interest subsidy will pay the debt service on the bonds. 2011-2012 Annual Budget Program Budgets 206 • Revenue Sources FY 2010 FY 2011 FY 2012 Variance Actual Budget Projected Budget to Budget Other Financing Sources $ 9,240,679 $ 136,754 $ 136,754 $ 228,647 67.2% Misc Fed Grants - 15,605 151605 85,777 449.7% Interest Income 106 - 383 - 0.0% Total Revenues $ 992409785 $ 1529359 $ 1529742 $ 3149424 106.4% FY 2011/2012 Expenditure Changes Debt Service Debt service increased 34.7% due to capacity for principal and interest payments on the Town's newly issued Clean Renewable Energy Bonds (CREBS). Utility savings, utility rebates, and a federal interest subsidy will pay the debt service on the bonds. 2011-2012 Annual Budget Program Budgets 206 • Oracle Road Improvement District 2011-2012 Annual Budget 207 Program Budgets FY 2010 FY 2011 FY 2011 FY 2012 Variance Revenue Sources Actual Budget Projected Budget to Budget FY 2010 FY 2011 FY 2012 Variance Operations & Maintenance $ 294 $ 1,600 $ 6,095 $ 1,600 0.0% Debt Service 367,203 3667203 3667203 3645703 -0.4% Total Expenditures t $ 3679497 $ 3677803 $ 3729298 $ 366,303 -0.4010 2011-2012 Annual Budget 207 Program Budgets Revenue Sources FY 2010 FY 2011 FY 2012 Variance Actual Budget Projected Budget to Budget 1 Interest Repayments $ 152,483 $ 141,203 $ 141,203 $ 129,703 -8.1% Principal Repayments 2131327 225,000 225,000 235,000 4.4% Penalty 27340 - - - 0.0% Total Revenues 1 $ 3689150 $ 3669203 $ 3669203 $ 3649703 -0.4% 2011-2012 Annual Budget 207 Program Budgets �ovµLEY ,yi�, l ' ' 1p `vVVWO 9m5am IV Roadway Development Impact Fee Fund 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. FY 2011/2012 Expenditure Changes Capital Capital decreased 49% due to the completion of several road projects, as well as modifications to the construction schedule and associated budget capacity for the widening of Lambert Lane. Debt Service Debt service decreased 58.2% due to lower principal and interest payments due in FY 2012. 2011-2012 Annual Budget Program Budgets 208 FY 2010 Actual FY 2011 Budget FY 2011 Projected FY 2012 Budget Variance to Budget Revenue Sources Operations & Maintenance Capital Debt Service $ - 157281168 - $ - 15,694,000 67255,760 $ - 273391435 5,700,000 $ - 7,998,000 27615,467 0.0% -49.0% -58.2% Total Expenditures $ 17728,168 $ 21,949,760 $ 870397435 $ 1096137467 -51.6% FY 2011/2012 Expenditure Changes Capital Capital decreased 49% due to the completion of several road projects, as well as modifications to the construction schedule and associated budget capacity for the widening of Lambert Lane. Debt Service Debt service decreased 58.2% due to lower principal and interest payments due in FY 2012. 2011-2012 Annual Budget Program Budgets 208 Revenue Sources FY 2010 FY 2011 FY 2012 Variance Actual Budget Projected Budget to Budget Federal Grants $ - $ 500,000 $ - $ 500,000 0.0% State Grants 1,196,084 819747000 7,701,000 71443,000 -17.1% Other Financing Sources - 10,0007000 - 400,000 -96.0% Development Impact Fees 341,034 3847839 927616 413,078 7.3% Interest 9,322 15,000 43068 4,000 -73.3% Miscellaneous 181,817 181000 52,740 18,000 0.0% Total Revenues $ 117289257 $ 19,891,839 $ 71850,424 $ 8,778,078 -55.9% FY 2011/2012 Expenditure Changes Capital Capital decreased 49% due to the completion of several road projects, as well as modifications to the construction schedule and associated budget capacity for the widening of Lambert Lane. Debt Service Debt service decreased 58.2% due to lower principal and interest payments due in FY 2012. 2011-2012 Annual Budget Program Budgets 208 Ah *1pJ''4Y'4Rf t r 4 d. 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, five-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 Town staff, a Town Council representative, and board and commission representatives, form a CIP Technical Advisory Committee (CIPTAC). Each year the CIPTAC identifies new projects for inclusion in the CIP. The new projects incorporate goals and objectives identified in the Towns' Strategic Plan for the coming fiscal year. The approved CIP projects are incorporated into the Town's annual budget, while the remaining years offer insight into the needs of the Town for the next four years. The CIP is comprised of four components: • Needs assessment that identifies all needed and planned community infrastructure • Financial analysis and determination of options and projected costs • A plan that programs infrastructure by year over a five-year period • A capital budget to be included in the annual budget for the new fiscal year 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. As a result of economic conditions and a further decline in state shared revenues projected in FY 11/12,, the CIP process was limited to evaluating projects currently in the planning stages or under construction with existing funding sources along with new projects that are fully funded with dedicated revenue sources. An internal, cross -departmental review of such projects was completed in order to prepare the proposed Five -Year Capital Improvement Plan rather than convening the CIP Technical Advisory Committee as has been standard practice in prior fiscal years. The following information details the standard CIP process that has typically been followed in prior years to solicit, rank and recommend new projects for inclusion into the CIP. 2011-2012 Annual Budget 209 Capital Improvement Program Aq,0p1„1�r,4a, • on Capitalm Improvement Program Overview • • CIP Process and Timeline The CIP is an eight month process that begins in November and ends with the adoption of the Town's final budget in June. During this eight month time frame, project requests are submitted, reviewed and analyzed by Finance staff and the CIPTAC is formed. CIPTAC meetings convene in February for project presentation and evaluation. The meetings conclude in March with a CIPTAC recommendation for Council approval of the CIP document. A summary of the process and timeline is provided below: November — December: Department requests due/CIPTAC appointments December — February: Cost analysis performed, forms edited February: CIPTAC meeting scheduled to present project requests Project rankings due from CIPTAC March: Present draft CIP to CIPTAC CIPTAC finalizes CIP and recommends for Council adoption April - May: Budget study sessions to present Budget and CIP to Mayor and Council June: Adoption of Tentative Budget and CIP Adoption of Final Budget and CIP 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 CIPTAC in their selection of the projects to be funded. The CIPTAC has selected eight criteria for project evaluation. They are as follows: • Public Health, Safety and Welfare • Supports Stated Community Goals • Fiscal Impact to Town • Impact on Service Levels • Impact on Operations and Maintenance • Legal Ramifications • Relationship to Other Projects/Coordination • Avoidance of Future Capital Expenditures 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. 2011-2012 Annual Budget 210 Capital Improvement Program 4a��Y c�, Oi . . '�,?4 Capital Improvement Program Overview Capital Improvement Program Summary The cumulative 5 -year capital budget for the Town of Oro Valley totals $58,545,000 for fiscal years 2011- 12 through 2015-16. The five year outlook is concentrated on roadway expansion, stormwater infrastructure and water infrastructure. The graph below shows the allocations by category for the given years: Water n fra s tru ctu re $2272501000 Equipment $928,000 Other $360,000 F Impr���,,,�,,,� $1,614,000 FY 2012 - 2016 Category Totals Stormwater I n fra s tru ctu re $5,650,000 $6,000,000 Road Expansion $21,7437000 The amount allocated for CIP projects in the FY 11/12 proposed budget is $15,469,000. The graph below shows the allocations by category for FY 11/12. The projects included in the FY 11/12 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. Road Expansion $7,981,000 2011-2012 Annual Budget FY 2011 - 2012 Category Totals Street Equipment 211 Water I n fra s tru ctu re $5,215,000 Stormwater - Infrastructure $950,000 Capital Improvement Program d �r r r 4 F 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 2011 - 2012 CIP is derived from a variety of sources as depicted in the chart below: r Water Utility Funds $5,215,000 CIP Revenues FY 2011 - 2012 Other $3,193,000 1 HURF Funds 01 A ""`l 000 Regional Funds $5,861,000 Significant funding is generated through local taxes, development fees, intergovernmental grants, and Pima County bond proceeds. The Town relies heavily on income related to development to fund the projects, and a challenge for the Town will be to continue to develop funding sources to replace this income as construction activity has severely declined due to the economic recession. MULTI-YEAR CAPITAL PROJECTS — HISTORIC PRESERVATION AND TOWN FACILITIES Due to the recessionary economy and the need for the Town to prioritize its resources and allocation of funds, many of the multi-year capital projects have been suspended, eliminated or re -prioritized. 2011-2012 Annual Budget 212 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 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 2012 - 2016 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 I m act FY 11/12 FY 12/13 FY 13/14 FY 14/15 FY 15/16 Vehicle Wash Increased $1f500 $1f500 $1f500 $1f500 $1f500 Rack utility costs Lomas De Oro Reduced Wash maintenance $0 ($2,500) ($2,500) ($2,500) ($21500) costs Side Cast Increased Broce Broom maintenance $5,000 $5,000 $5,000 $5,000 $5,000 & fuel costs N. La Canada utility & 3.0 MG maintenance $0 $2,500 $2,500 $2,500 $2,500 Reservoir costs Sheraton D- Increased $2,000 $8,000 $8,000 $8,000 $8,000 Zone Booster utility costs E. Lambert Increased Lane Main maintenance $0 $1,000 $1,000 $1,000 $1,000 Relocation costs Campo Bello Increased Main maintenance $0 $1,000 $1,000 $1,000 $1,000 Replacement costs La Canada 24- Increased inch Main maintenance $0 $1,000 $1,000 $1,000 $1,000 costs Totals $8,500 $17,500 $17,500 $17,500 $17,500 Note: The list above represents the projects that were approved for funding in FY 11/ 12 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. 2011-2012 Annual Budget 213 Capital Improvement Program �o o t r 1. s Capital Improvement Program Overview CIPTAC Recommendations During the annual CIP process the CIPTAC provides recommendations related to the continued improvement of the process along with project funding recommendations. The CIPTAC was not convened in FY 11/12 as a result of the reduced scope of the CIP process. Summary Projects included in the FY 2011 — 2012 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 2011 — 2012 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. 2011-2012 Annual Budget 214 Capital Improvement Program • • 0.404-LEY A4 ,r r► rt � •� 4t r `*,�a Capital Improvement Program Overview Table 1 below shows the Five Year CIP Projects by Fund: Table 1 Fund General Highway Roadway Impact Fee Stormwate r Utility Water Utility Total All Funds Water Utility $552159000 Stormwc- Uti 1; ty $1,0737000 $ 1594699000 $ 1098999000 $ 593859000 $ 11,5359000 $ 159257,000 CAPITAL OUTLAY BY FUND FY 2011 - 2012 Highway $1Y200,000 2011-2012 Annual Budget 215 )adway pact Fee $79981 , 000 Capital Improvement Program Fiscal Year 11/12 12/13 13/14 14/15 15/16 $ - $ 524,000 $ 600,000 $ 400,000 $ 450,000 $ 1,200, 000 $ 1,200, 000 $ 1,305,000 $ 1,200,000 $ 1,325,000 $ 719817000 $ 6,000,000 $ - $ 27860,000 $ 4,902,000 $ 1,073,000 e% F- �w I- r\^^ $ T 780,000 � ^^r ^^^ $ 920,000 fi � re%^ ^r%^ $ 0% 875,000 r+ �^^ $ 2,700,000 I- $ 1594699000 $ 1098999000 $ 593859000 $ 11,5359000 $ 159257,000 CAPITAL OUTLAY BY FUND FY 2011 - 2012 Highway $1Y200,000 2011-2012 Annual Budget 215 )adway pact Fee $79981 , 000 Capital Improvement Program 2011 - 2012 Annual Budget This Page Intentionally Left Blank 216 • • • Projects by Fund Table 2 below identifies the General Fund Projects for Fiscal Years 2012 — 2016: General Fund Project Name New Command Post Town Hall Campus Security New Restroom at JDK Park Tasor Replacements Q -Tel Property and ID System Replace Playground Equipment at JDK Park Replace Field Lights at JDK Park New Scoreboards at JDK Park New Dog Park at Riverfront Park Expand Dog Park at JDK Park New Racquetball Courts at JDK Park New Carpet in Library Totals Table 2 FY 11/12 FY 12/13 FY 13/14 $ - $ - $ 300,000 $ - $ 150,000 $ 150,000 $ - $ 60,000 $ - $ - $ 45,000 $ - $ 601000 $ - $ - $ 200,000 $ - $ - $ - $ 150,000 $ - $ 114,000 $ - $ - $ 5249000 $ 600,000 Table 3 below identifies the Highway Fund Projects for Fiscal Years 2012 — 2016: Highway Fund Project Name Oro Valley Surface Treatments Purchase a skidsteer tractor w/attachments Backhoe - 50% split with SW Loader - 50% split with SW Totals 2011-2012 Annual Budget Table 3 FY 14/15 FY 15/16 FY 13/14 FY 14/15 FY 15/16 $ 1,200,000 $ 1,200,000 $ $ 250,000 $ - $ - $ - $ 60,000 $ - $ - $ 45,000 $ - $ - $ 507000 $ 100, 000 $ - $ 50, 000 $ - $ - $ 400,000 $ 4005000 $ 4505000 FY 11/12 FY 12/13 FY 13/14 FY 14/15 FY 15/16 $ 1,200,000 $ 1,200,000 $ 1,200,000 $ 1,200,000 $ 1,200,000 $ - $ - $ 60,000 $ - $ - $ 45,000 $ - $ - $ - $ - $ - $ 125,000 $ 192009000 $ 192009000 $ 193059000 $ 192009000 $ 1,325,000 217 Capital Improvement Program • • Projects by Fund Table 4 below identifies the Stormwater Fund Projects for Fiscal Years 2012 — 2016: Table 4 Stormwater Fund Project Name Highland Wash Basin Improvements Sidecast Broce Broom Vehicle Wash Rack - Rollover Lomas de Oro Wash - Rollover Pegler Wash Basin Mgmt. Study Lambert Road Box Culvert Un -named Wash Basin Mgmt. Study Arroyo Grande Basin Improvements Moore Road Box Culverts Carmack Wash Basin Mgmt. Study Pegler Wash Drainage Improvements Un -named Wash Improvements Villages Wash Basin Mgmt. Study Street Sweeper Vehicle Wash Rack Enclosure Backhoe - 50% split with HF Loader - 50% split with HF Totals FY 11/12 FY 12/13 FY 13/14 FY 14/15 FY 15/16 $ 450,000 $ - $ - $ - $ - $ 75,000 $ - $ - $ - $ - $ 48,000 $ - $ - $ - $ - $ 500,000 $ - $ - $ - $ - $ - $ 75,000 $ - $ - $ - $ - $ 600,000 $ - $ - $ - $ - $ - $ 75,000 $ - $ - $ - $ - $ - $ - $ 2,000,000 $ - $ - $ 800,000 $ - $ - $ - $ - $ - $ 75,000 $ - $ - $ - $ - $ 500,000 $ - $ - $ - $ - $ - $ 500,000 $ - $ - $ - $ - $ 75,000 $ - $ - $ - $ 300,000 $ - $ - $105,000 $ - $ - $ - $ - $ - $ 45,000 $ - $ - $ - $ - $ - $ - $ 125,000 $1,073,000 $ 780,000 $ 920,000 $ 875,000 $ 2,700,000 Table 5 below identifies the Roadway Impact Fee Fund Projects for Fiscal Years 2012 — 2016: Roadway Impact Fee Fund Project Name Lambert Lane (La Canada to Pusch View Lane) - Rollover Naranja - (Shannon to La Canada) - Rollover CDO Shared Use Path - Rollover Rancho Vistoso Blvd./Big Wash Bridge Barrier - Rollover Naranja - (La Cholla to Ironwood Ridge) - Phase I Lambert Lane Phase II (La Canada to La Cholla) Tangerine - (Shannon to La Canada) Totals Table 5 FY 11/12 FY 12/13 FY 13/14 FY 14/15 FY 15/16 $ 4,920,000 $ 6,000,000 $ - $ - $ - $ - $ - $ 1,785,000 $ 402,000 $ 1,293,000 $ - $ - $ - $ - $ 418,000 $ - $ - $ - $ - $ 1,350,000 $ - $ - $ - $ - $ - tt. $ - $ - $ 1,000,000 $ 4,500,000 $ 7,9819000 $ 690009000 $ - $ 298609000 $ 479025000 2011-2012 Annual Budget Capital Improvement Program 218 o&LEY QUO �l • O' � r w � Projects by Fund Table 6 below identifies the Existing System Improvement Projects for the Water Utility for Fiscal Years 2012 — 2016: Table 6 Existing System Improvements Proiect Name FY 11/12 Table 7 FY 12/13 FY 13/14 FY 14/15 FY 15/16 East Lambert Lane. 16" Main Relocation (DPW) $ 1,200,000 $ - $ - $ - $ - Campo Bello - 8 Inch Main Replacement - Rollover $ 1,000,000 $ - $ - $ - $ - Sheraton D -Zone Booster - Rollover $ 700,000 $ - $ - $ - $ - North La Canada 3.0 MG, 20% - Rollover $ 170,000 $ - $ - $ - $ - Big Wash E -D PRV $ 60,000 $ - $ - $ - $ - RTA Utility Relocation (allowance) - Rollover $ 50,000 $ - $ - $ - $ - 10KW Solar Power Pilot @ WP 13 $ 50,000 $ - $ - $ - $ - Countryside Meter Replacement Project - AMR $ 730,000 $ - $ - $ - $ - Tangerine Hills - 8 Inch Main Replacement $ - $ 1,250,000 $ 1,000,000 $ - $ Well Drill & Equip Steam Pump $ - $ 650,000 $ 1,000,000 $ Well E-8 Development $ - $ - $ 60,000 $ - $ - Redrill Well E-3 $ - $ - $ - $ 600,000 $ 1,000,000 Crimson Canyon Booster $ - $ - $ - $ - $ 300,000 High Mesa G -Zone Booster $ - $ - $ - $ 550,000 $ - High Mesa F -Zone Booster $ - $ - $ - $ 550,000 $ - Access Road & Wall - Well D-6 $ - $ 100,000 $ - $ - $ - RV Chlorine Storage $ - $ 400,000 $ - $ - $ - Tangerine Booster $ - $ - $ - $ - $ 150,000 CDO Booster - possible demolition $ - $ - $ 50,000 $ - $ - Deer Run Booster $ - $ - $ - $ - $ 1,280,000 Rancho Verde Main Replacement $ - $ - $ - $ 500,000 $ - Linda Vista Drainage Improvements $ - $ - $ - $ - $ 150,000 Access Road - Well C-8 $ - $ 50,000 $ - $ - $ - Security Wall - Well C-8 $ - $ - $ 100,000 $ - $ - Replace Security Wall at CS -2 - Countryside $ - $ 80,000 $ - $ - $ - Totals $ 3.960.000 $ 1.880.000 $ 1.860.000 $ 3.200.000 $ 2.880.000 Table 7 below identifies the Expansion Related Improvement Projects for the Water Utility for Fiscal Years 2012— 2016: Table 8 below identifies the CAP Improvements scheduled for Fiscal Year 2012 — 2016: Table 8 CAP Water Improvements Project Name Wheeling Tucson Water 1000 AF/Year Wheeling Tucson Water 1500 AF/Year Wheeling Tucson Water 3000 AF/Year Totals 2011-2012 Annual Budget FY 11/12 FY 12/13 FY 13/14 FY 14/15 FY 15/16 $ 515,000 $ - $ - $ - $ - $ - $ 515,000 $ - $ - $ - $ - $ - $ 7001000 $ 3,000,000 $ 31000,000 $ 515,000 $ 515,000 $ 7007000 $ 31000,000 $ 390009000 219 Capital Improvement Program Table 7 Expansion Related Improvements Project Name FY 11/12 FY 12/13 FY 13/14 FY 14/15 FY 15/16 North La Canada 3.0 MG, 50% - Rollover $ 680,000 $ - $ - $ - $ - La Canada 24 Inch Main - Rollover $ 60,000 $ - $ - $ - $ - Totals $ 740,000 $ - $ - $ - $ - Table 8 below identifies the CAP Improvements scheduled for Fiscal Year 2012 — 2016: Table 8 CAP Water Improvements Project Name Wheeling Tucson Water 1000 AF/Year Wheeling Tucson Water 1500 AF/Year Wheeling Tucson Water 3000 AF/Year Totals 2011-2012 Annual Budget FY 11/12 FY 12/13 FY 13/14 FY 14/15 FY 15/16 $ 515,000 $ - $ - $ - $ - $ - $ 515,000 $ - $ - $ - $ - $ - $ 7001000 $ 3,000,000 $ 31000,000 $ 515,000 $ 515,000 $ 7007000 $ 31000,000 $ 390009000 219 Capital Improvement Program 2011 - 2012 Annual Budget This Page Intentionally Left Blank 220 The Town of Oro Valley map below identifies the location of the major projects scheduled for FY 2012: { +' MAMWt. A j t 4 tet, . ,. V i..,... W MOO RE RD z W TANG ERI E RD E TANGERINE RD coo *"ED � 1NO DEL NO RTF Vel NARANJA DR E NARANJA D UW P)F g waHu�oew►�w � r LTO IPIHANNON "i W L A N1 B ER T L N � ;R, .�.��; r,. v z W D VERTO N RD { rwo OM W LINDA VIS TABL -� FY 2011-2012 CALLE CONCORDIA CI P PROJECTS 7_j4r ¢wry (Ai 44 R w, s 'ld W MAG EE RD rx � 2 .J 2011-2012 Annual Budget 221 x m E Wlt l FUNDING SOURCE ---�— Highway Fund Surface Treatments —-- PimaAssociation of Governments Federal Emergency Management Agency Pima County Regional Transportadion Authority Capital Improvement Program 2011 - 2012 Annual Budget This Page Intentionally Left Blank 222 0 Project Descriptions The following are detailed descriptions of all of the projects identified for Fiscal Year 2011-2012 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: Oro Valley Surface Treatments DEPARTMENT: Public Works, Street Division PROJECT COST: $11200,000 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 OPERATING IMPACT: Fiscal Years 11/12 12/13 13/14 14/15 15/16 Operating Revenue - - - - - Operating Costs - - - - - Operating Savings Varies depending on pavement preservation application type PROJECT TITLE: Vehicle wash rack - Rollover DEPARTMENT: Public Works, Operations Division PROJECT COST: $48,000 PRIMARY FUNDING: Stormwater Utility Fund ADDITIONAL FUNDING: None PROJECT DESCRIPTION: Purchase of vehicle wash rack PROJECT JUSTIFICATION: Bring Town into compliance with Federal and State regulations OPERATING IMPACT: Fiscal Years 11112 12/13 13/14 14/15 15/16 Operating Revenue - - - - - Operating Costs 1,500 11500 1,500 1,500 1,500 Operating Savings - - - - - PROJECT TITLE: Highlands Wash Basin Improvements DEPARTMENT: Public Works, Operations Division PROJECT COST: $450,000 PRIMARY FUNDING: Pima County Flood Control District ADDITIONAL FUNDING: None PROJECT DESCRIPTION: Drainage improvements at Highlands Wash Basin PROJECT JUSTIFICATION: Improvements will provide increased channel capacity OPERATING IMPACT: Fiscal Years 11/12 12/13 13/14 14/15 15/16 Operating Revenue - - - - - Operating Costs - - - - - Operating Savings - - - - - 2011-2012 Annual Budget 223 Capital Improvement Program Project Descriptions PROJECT TITLE: Lomas de Oro Construction - Rollover Project DEPARTMENT: Public Works, Street Division PROJECT COST: $500,000 PRIMARY FUNDING: FEMA/ADEM ADDITIONAL FUNDING: Pima County Flood Control District PROJECT DESCRIPTION: Repair wash to meet flood control standards PROJECT JUSTIFICATION: Needed repair due to damage from 2006 Summer Monsoons OPERATING IMPACT: Fiscal Years 11112 12/13 13/14 14/15 15/16 Operating Revenue - - - - - Operating Costs - - - - - Operating Savings - 21500 27500 2,500 21500 PROJECT TITLE: Sidecast Broce Broom DEPARTMENT: Public Works, Street Division PROJECT COST: $75,000 PRIMARY FUNDING: Stormwater Utility Fees ADDITIONAL FUNDING: None PROJECT DESCRIPTION: Purchase new broce broom PROJECT JUSTIFICATION: Replacement of aging equipment currently used OPERATING IMPACT: Fiscal Years 11/12 12/13 13/14 14/15 15/16 Operating Revenue - - - - - Operating Costs 5,000 5,000 5,000 5,000 5,000 Operating Savings - - - - - PROJECT TITLE: Lambert Lane Widening (La Canada to Pusch View Lane) - Rollover Project DEPARTMENT: Public Works PROJECT COST: $47920,000 PRIMARY FUNDING: Pima Association of Governments Regional Funds ADDITIONAL FUNDING: HELP Loan Proceeds 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 OPERATING IMPACT: Fiscal Years 11/12 12/13 13/14 14/15 15/16 Operating Revenue - - - - - Operating Costs - - - - - Operating Savings - - - - - 2011-2012 Annual Budget 224 Capital Improvement Program • • • • t Project Descriptions PROJECT TITLE: Naranja (La Cholla to Ironwood Ridge) DEPARTMENT: Public Works PROJECT COST: $1,350,000 PRIMARY FUNDING: Pima Association of Government Regional Funds ADDITIONAL FUNDING: None PROJECT DESCRIPTION: Road reconstruction with sidewalks and shoulders installed PROJECT JUSTIFICATION: Per Transportation Improvement Program as set by PAG OPERATING IMPACT: Fiscal Years 11/12 12/13 13/14 14/15 15/16 Operating Revenue - - - - - Operating Costs - - - - - Operating Savings - - - - - PROJECT TITLE: CDO Shared Use Path - Final Phase DEPARTMENT: Public Works PROJECT COST: $1,293,000 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 OPERATING IMPACT: Fiscal Years 11/12 12/13 13/14 14/15 15/16 Operating Revenue - - - - - Operating Costs - - - - - Operating Savings - - - - - PROJECT TITLE: Rancho Vistoso Boulevard/Big Wash Bridge Barrier DEPARTMENT: Public Works PROJECT COST: $418,000 PRIMARY FUNDING: Regional Transportation Authority (RTA) Funds ADDITIONAL FUNDING: None PROJECT DESCRIPTION: Removing & replacing barrier walls on the bridge over Big Wash PROJECT JUSTIFICATION: Per Transportation Improvement Program as set by PAG OPERATING IMPACT: Fiscal Years 11/12 12/13 13/14 14/15 15/16 Operating Revenue - - - - - Operating Costs - - - - - Operating Savings - - - - - 2011-2012 Annual Budget 225 Capital Improvement Program Project Descriptions PROJECT TITLE: N. La Canada 3.0 MG Reservoir - Rollover DEPARTMENT: Water PROJECT COST: $850,000 PRIMARY FUNDING: Water Utility Fund (20%), Potable Water System Development Impact Fee Fund (80%) ADDITIONAL FUNDING: 2003 Bond Proceeds PROJECT DESCRIPTION: 3.0 million gallon concrete reservoir located at King Air and Moore Road PROJECT JUSTIFICATION: Provide reliable storage for fire flow and future system demand OPERATING IMPACT: Fiscal Years 11/12 12/13 13/14 14/15 15/16 Operating Revenue - - - - - Operating Costs - 21500 2,500 2,500 21500 Operating Savings - - - - - PROJECT TITLE: Sheraton D -Zone Booster Station - Rollover DEPARTMENT: Water PROJECT COST: $700,000 PRIMARY FUNDING: Water Utility Fund ADDITIONAL FUNDING: WIFA Loan PROJECT DESCRIPTION: Re -design booster pump facility PROJECT JUSTIFICATION: Existing booster pump facility undersized to meet customer demand OPERATING IMPACT: Fiscal Years 11/12 12/13 13/14 14/15 15/16 Operating Revenue - - - - - Operating Costs 2,000 8,000 8,000 8,000 8,000 Operating Savings - - - - - PROJECT TITLE: East Lambert Lane 16 inch Main Relocation - Rollover DEPARTMENT: Water PROJECT COST: $11200,000 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 OPERATING IMPACT: Fiscal Years 11/12 12/13 13/14 14/15 15/16 Operating Revenue - - - - - Operating Costs - 1,000 1,000 1,000 1,000 Operating Savings - - - - - 2011-2012 Annual Budget 226 Capital Improvement Program • t Project Descriptions PROJECT TITLE: Campo Bello - 8 Inch Main Replacement DEPARTMENT: Water PROJECT COST: $1,000,000 PRIMARY FUNDING: Water Utility Fund ADDITIONAL FUNDING: None PROJECT DESCRIPTION: Install new 8 Inch pipe and new fire hydrants PROJECT JUSTIFICATION: Current system undersized and costly to maintain OPERATING IMPACT: Fiscal Years PROJECT JUSTIFICATION: 11/12 12/13 13/14 14/15 15/16 Operating Revenue Operating Costs - 1,000 1,000 1,000 1,000 Operating Savings - - - - - PROJECT TITLE: RTA Utility Relocation DEPARTMENT: Water PROJECT COST: $50,000 PRIMARY FUNDING: Water Utility Fund ADDITIONAL FUNDING: None PROJECT DESCRIPTION: Allowance in budget to relocate existing water infrastructure if needed PROJECT JUSTIFICATION: Allowance will accommodate unknown road improvements OPERATING IMPACT: Fiscal Years 11/12 12/13 13/14 14/15 15/16 Operating Revenue - - - - - Operating Costs - - - - - Operating Savings - - - - - PROJECT TITLE: La Canada 24 -inch Main - Rollover DEPARTMENT: Water PROJECT COST: $60,000 PRIMARY FUNDING: Potable Water System Development Impact Fee Fund ADDITIONAL FUNDING: 2003 Bond Proceeds PROJECT DESCRIPTION: Install 24 -inch main in the vicinity of Moore Road and King Air PROJECT JUSTIFICATION: New main needed to connect to La Canada reservoir OPERATING IMPACT: Fiscal Years 11/12 12/13 13/14 14/15 15/16 Operating Revenue - - - - - Operating Costs - 11000 1,000 13000 1,000 Operating Savings - - - - - 2011-2012 Annual Budget Capital Improvement Program 227 Project Descriptions PROJECT TITLE: Big Wash E -D PRV DEPARTMENT: Water PROJECT COST: $60,000 PRIMARY FUNDING: Water Utility Fund ADDITIONAL FUNDING: None PROJECT DESCRIPTION: To provide additional water to D -Zone PROJECT JUSTIFICATION: Several wells losing capacity in D -Zone. E -Zone water will supplement lost capacity OPERATING IMPACT: Fiscal Years 11/12 12/13 13/14 14/15 15/16 Operating Revenue - - - - - Operating Costs - - - - - Operating Savings - - - - - PROJECT TITLE: 10 KW Solar Power Pilot at Water Pump 13 DEPARTMENT: Water PROJECT COST: $50,000 PRIMARY FUNDING: Water Utility Fund ADDITIONAL FUNDING: None PROJECT DESCRIPTION: To install 10kw solar system on lid of concrete reservoir PROJECT JUSTIFICATION: Complements Town's energy efficiency upgrades OPERATING IMPACT: Fiscal Years 11/12 12/13 13/14 14/15 15/16 Operating Revenue - - - - - Operating Costs - - - - - Operating Savings - - - - - PROJECT TITLE: Wheeling Tucson Water DEPARTMENT: Water PROJECT COST: $5157000 PRIMARY FUNDING: Water Utility Fund ADDITIONAL FUNDING: None PROJECT DESCRIPTION: Recharge Oro Valley's CAP water in TW recharge basin PROJECT JUSTIFICATION: Uses CAP water the soonest and reduces groundwater pumpage OPERATING IMPACT: Fiscal Years 11/12 12/13 13/14 14/15 15/16 Operating Revenue - - - - - Operating Costs - - - - - Operating Savings - - - - - 2011-2012 Annual Budget 228 Capital Improvement Program • • aaN`urY' ,V 0 •► A Project Descriptions PROJECT TITLE: Countryside Meter Replacement Project - AMR DEPARTMENT: Water PROJECT COST: $730,000 PRIMARY FUNDING: Water Utility Fund ADDITIONAL FUNDING: None PROJECT DESCRIPTION: Replace outdated meters with Automated Meter Readers PROJECT JUSTIFICATION: Current meters inefficient and under registering OPERATING IMPACT: Fiscal Years 11/12 12/13 13/14 14/15 15/16 Operating Revenue Additional revenue anticipated due to increased accuracy in meter reading Operating Costs - - - - - Operating Savings - - - - - 2011-2012 Annual Budget 229 Capital Improvement Program 2011 - 2012 Annual Budget This Page Intentionally Left Blank 230 o� LEY .4 Q,O '0 t"J , r 4,q ► i 4 tb14(qJ-YM AC), 4yF Oro Valley is in Northwestern Pima County, six miles north of the Tucson city limits. The valley, formed by the Santa Cruz River joining Gold Creek in the Catalina Mountains, covers nearly 32 square miles. Source: Arizona Department of Commerce Basic Information Founded: 1881 Distance to Major Cities: Incorporated: 1974 Phoenix: 109 miles County: Pima Tucson: 6 miles Form of Government: Council — Manager Legislative District: 26 Congressional District: 8 Population 1990 2000 2010 Oro Valley 6,670 291700 41,011 Pima County 666,880 843,746 9801263 Arizona 31665,228 5,130,632 61392,017 Source: Arizona Department of Commerce and US Census Bureau Age & Gender Composition Male 47.5% Female 52.5% Median Age 48.0 Under 5 years 5.1% 5 to 9 years 4.5% 10 to 14 years 6.0% 15 to 19 years 6.7% 20 to 34 years 10.7% 35 to 44 years 12.8% 45 to 54 years 14.4% 55 to 64 years 15.5% 65 + years 24.3% Source: US Census Bureau, 2005-2009 American Community Survey IP Marital Status Single 19.1% Married 63.6% Separated 0.8% Widowed 6.7% Divorced 9.9% Source: US Census Bureau, 2005-2009 American Community Survey Unemployment Rate Education Attainment Bachelor's Degree or Higher I Source: US Census Bureau, 2005-2009 American Community Survey Community Profile Labor Force 1990 2000 2010 Civilian Labor Force 31201 13,741 18,489 Unemployed 102 353 974 Unemployment Rate 3.2% 2.6% 5.3% Source: Arizona Department of Commerce and US Census Bureau, 2005-2009 American Community Survey Household Income 18.8% 16.8%16.40 r� +*i 13.2% Source: US Census Bureau, 2005-2009 American Community Survey ■Less than $15k * $15k to $25k El $25k to $35k O $35k to $50k ■ $50k to $75k ❑ $75k to $100k p $100k to $150k O $150k or more Principal Employers Ventana Medical Systems Town of Oro Valley Honeywell Wal-Mart Supercenter Amphitheater School District Fry's Food & Drug Store Oro Valley Hospital Home Depot Hilton EI Conquistador Golf & Tennis Resort Long Realty 2011-2012 Annual Budget Appendix 231 �ap.LEy 40 �0 o�' & 14 ► 4 1► ♦ ,A► Ib=t Wne Resort/r�`� Lours 7% Pjblic Open Sr 17% Park 2% Land Use (Net Acres) Conn rcial/Office Q0/ Figh Density Residential 5+ D Medium Der Residential 2 DU/AC 56°io Source: Town of Oro Valley Residential 64% Existing Dwelling Units Rural Low Density not Home Values Low Density !s idential 0.4-1.2 DU/AC 13% Low Density �sidential 1.3-2.0 DU/AC 2% Less than $50k 0.6% $50k to $99k 1.2% $100k to $199k 13.9% $200k to $299k 27.7% $300k to $499k 38.4% $500k to $999k 17.0% $1M or more 1.2% Source: US Census Bureau, 2005-2009 American Community Survey Community Profile Community Facilities Oro Valley offers a broad range of community and cultural facilities including a park with an Olympic -sized swimming pool, 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 Number of banks: 9 Government Fire Departments: Golder Ranch Fire District, Mountain Vista Fire District, Rural/Metro Law Enforcement: Town of Oro Valley Medical Northwest Medical Center, Northwest Urgent Care, Oro Valley Hospital Hotel & Lodging Source: AZ Dept of Commerce Number of Rooms: 430 and Oro Valley Business Navigator Taxes Property Tax Rate (per $100 assessed valuation) Elementary/High Schools $5.05 Countywide $6.27 Fire District $1.73 Town of Oro Valley $0.00 Total $13.05 Source: Pima County Treasurer's Office, 2010 Miles of Trails & Paths: Sales Tax Officers per 1,000 residents: City/Town 2.0% County 0.5% State 6.6% Source: League of Arizona Cities and Towns, Arizona Dept of Revenue Service Statistics Police: Parks and Recreation: Sworn Personnel: 97.00 # of Parks: 4 Non -Sworn Personnel: 32.63 Park Acres Maintained: 376 Total Police Personnel 129.63 Miles of Trails & Paths: 78 Officers per 1,000 residents: 2.37 Recreation Programs Offered: 35 Avg. Emergency Response Time: Priority 1 calls < 5 minutes 85% of the time Public Works: Priority 2 calls < 8 minutes 95% of the time Total Town Lane Miles: 680 Priority 3 calls < 15 minutes 97% of the time FY 2010/2011 Lane Miles resurfaced: 30 Priority 4 calls < 30 minutes 99% of the time Water: Transit: Customer Base: 18 502Conservation Registered riders: 11915 Audits: 139 Avg„ Daily Ridership: 60 Meter Reads: 222k Billing Collection Rate: 99.9% 2011-2012 Annual Budget 232 Appendix • a • JPpk.,EY Aq�� Ulf r t/NDEO Ac3l Town of Oro Valley Caring for our heritage, our community, our future,, 2011 - 2012 Annual Budget 0 233 2011 - 2012 Annual Budget This Page Intentionally Left Blank 234 10 • • • D 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 Canada 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 Canada 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. 2011 - 2012 Annual Budget Appendix 235 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. 2011 - 2012 Annual Budget 236 Appendix C .�PL�EY ARS. 'JNDED 9�IA F Town of Oro Valley Caring for our heritage, our community,, our future. 2011 - 2012 Annual Budget ow 237 2011 - 2012 Annual Budget This Page Intentionally Left Blank 238 El RESOLUTION NO. (R)11-45 A RESOLUTION OF THE MAYOR AND COUNCIL OF 1"HE TOWN OF ORO VALLEY, ARIZONA, APPROVING THE ADOPTION OF THE BUDGET OF THE TOWN OF ORO VALLEY FOR THE FISCAL YEAR 2011-2012. WHEREAS, the Town of Oro Valley is a political subdivision of the State of Arizona vested with all associated rights, privileges and benefits and is entitled to the immunities and exemptions granted municipalities and political subdivisions under the Constitution and laws of the State of Arizona and the United States; and WHEREAS, on May 18, 2011, in accordance with Arizona Revised Statutes §§ 42-17101 and 42-17102, the Town authorized an estimate of the different amounts required to meet the public expenditures for the ensuing year, an estimate of revenues from sources other than direct taxation and the amount to be raised by taxation upon real and personal property of the Town of Oro Valley; and WHEREAS, after notice of a public hearing in accordance with Arizona Revised Statutes §§ 42- 17103, 42-17104 and 42-17105, the Council met on June 15, 2011 at which time any taxpayer was entitled to appear and be heard in favor of or against any of the proposed expenditures or tax levies before the Council adopted the estimates of the proposed expenditures, constituting the budget of the Town of Oro Valley for the Fiscal Year 2011-2012; and WHEREAS, the sums to be raised by taxation, as specified therein, do not in the aggregate amount exceed the primary property tax levy limits as calculated in accordance with Arizona Revised Statutes § 42-17051(A); and WHEREAS, it is in the best interest of the Town of Oro Valley to approve the estimates and expenditures/expenses shown on the accompanying schedules for the Fiscal Year 2011-2012. NOW, THEREFORE, BE IT RESOLVED by the Mayor and Council of the Town of Oro Valley, Arizona, that the said estimates of revenues and expenditure s/expenses shown on the accompanying schedules, as now increased, reduced or changed, are hereby adopted and approved as the budget of the Town of Oro Valley for the Fiscal Year 2011-2012 in the amount of $94,219,647. BE IT FURTHER RESOLVED that the Mayor and Council of the Town of Oro Valley are hereby authorized to take such steps as are necessary to execute and implement the budget for the Fiscal Year 2011-2012. F:\RESOLUTIONSUO I hResolution R1 145 Adoption of FYI 1-12 Budget dm Town of Oro Valid Allonicy's Office/ca/05 1811 239 PASSED AND ADOPTED by the Mayor and Town Council of the Town of Oro Valley, Arizona this 15th day of June, 2011. ATTEST: J K. Bower, Town Clerk Date: TOWN OF ORO VALLEY, ARIZONA 4shDr. SF ire at , Mayor APPROVED AS TO FORM: 11000101k< Tobin Rosen, Town Attorney Date. FARESOLUT1ONSUO 1 l'Acsolution R 1 145 Adoption of FYI 1-12 Budgadoc Town of Oro Vallcy Attorney s Off"iccica/05181 1 240 o Y "uNDED A%J. 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L _ C to E o 'D v o C O W cvc •E c c a� c c � Q o x * * * * * * i CITY/TOWN OF Oro Valley Summary by Fund Type of Revenues Other Than Property Taxec Fiscal Year 2012 ESTIMATED ACTUAL ESTIMATED REVENUES REVENUES* REVENUES SOURCE OF REVENUES 2011 2011 2012 GENERALFUND Local taxes Local Sales Tax _ $ 12,564,250 $ 11,266,458 $ 11,901,316 Cable Franchise Tax 5001000 500,000 5003000 Licenses and permits Licenses 165,310 165,310 170,698 Permits _ _ _ 1,099,930 667,337 9467196 Fees 111270 103503 107000 Intergovernmental State/County Shared 813607415 8,3607415 871877264 State Grants 145,700 230,543 288,500 Federal Grants 8817239 811,956 805,533 Other 607,781 600,281 5917160 Charges for services Reimbursements 241,300 2263000 2347000 Fees 5337677 4627716 4421160 Other 246,738 205,038 561,691 Fines and forfeits Fines 195,000 210,000 190,000 Interest on investments Interest Income 151,374 217333 22,000 Contributions Voluntary contributions Miscellaneous Miscellaneous 145,000 1917625 157,500 Total General Fund $ 25,8481984 $ 257008,018 23,929,515 $ * 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. 4/11 SCHEDULE C Page 1 of 6 244 CITY/TOWN OF Oro Valley Summary by Fund Type of Revenues Other Than Property Taxec. Fiscal Year 2012 ESTIMATED ACTUAL ESTIMATED REVENUES REVENUES* REVENUES SOURCE OF REVENUES 2011 2011 2012 SPECIAL REVENUE FUNDS Highway User Revenue Fund Local Sales Tax $ 630,188 $ 398,807 $ 3673400 Highway User Fuel Tax 2,669,767 2,669,767 2,376,464 Permits 501192 507192 42,000 Grants 3171000 145,689 487,000 Interest Income _ 53,205 10,679 10,700 Charges for Services 15,000 Other _ 12,686 14,992 10,000 Total Highway User Revenue Fund $ 37733,038 $ 3,290,126 $ 3,3087564 Public Transportation Fund Local Transportation Assistance $ $ $ Grants 109,706 Charges for Services 34,545 50,400 Interest Income 1,800 164 Other 18,500 634 Total Public Transportation Fund $ 54,845 $ 160,904 $ Bed Tax Fund Local Sales Tax $ 261,569 $ 251,569 $ 899,626 Interest Income 9,000 1,808 1,800 Total Bed Tax Fund $ 270,569 $ 253,377 $ 901,426 Seizures & Forfeitures - State Fund $ 102,800 $ 102,500 $ 102,500 Total Seizures & Forfeitures - State Fund $ 102,800 $ 102,500 $ 102,500 Seizures & Forfeitures - Federal Fund $ 253,600 $ 2517300 $ 251,300 Total Seizures & Forfeitures - Fed Fund $ 253,600 $ 251,300 $ 251,300 Impound Fee Fund Fees $ 60,000 $ 50,000 $ 50,000 Total Impound Fee Fund $ 60,000 $ 50,000 $ 50,000 Total Special Revenue Funds $ 49474,852 $ 4,108,207 $ 4,613,790 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. 4/11 SCHEDULE C Page 2 of 6 245 CITY/TOWN OF Oro Valley Summary by Fund Type of Revenues Other Than Property Taxec Fiscal Year 2012 ESTIMATED ACTUAL REVENUES REVENUES* SOURCE OF REVENUES 2011 2011 ESTIMATED REVENUES 2012 DEBT SERVICE FUNDS Municipal Debt Service Fund Federal Grants $ 15,605 $ 15,988 $ 85,777 Total Municipal Debt Service Fund $ $ $ 15,605 15,988 851777 Oracle Road Improvement District Fund Special Assessments $ 3667203 $ 366,203 $ 364,703 Total Oracle Road Improve Dist Fund $ $ $ 366,203 3667203 3647703 Total Debt Service Funds $ 3811808 $ 3827191 $ 4501480 CAPITAL PROJECTS FUNDS Alternative Water Resources Development Impact Fee Fund Development Impact Fees $ 4681308 $ 413,000 $ 2197200 Charges for Services 272987285 2,016,440 274237500 Interest Income 8,000 2,754 2,684 Total AWRDIF Fund $ $ $ 277747593 274321194 27645,384 Potable Water System Development Impact Fee Fund Development Impact Fees$ �--�---���__..,_...__.___.._ ___.____.__ 249,702 $ 2147721 $ 1147255 Interest Income 33,500 167034 137323 Total PWSDIF Fund $ $ $ 2831202 2307755 127,578 Townwide Roadway Development Impact Fee Fund State Grants $ 8,974,000 $ 7,701,000 $ 774437000 Federal Grants 500,000 5001000 Development Impact Fees 384,839 92,616 413,078 Interest Income 15,000 4,068 47000 Other 18,000 521740 18,000 Total TRDIF Fund $ 9,891,839 $ 7,850,424 $ 8,378,078 Regional Transportation Authority Fund RTA Reimbursements $ 507000 $ 17725 $ 50,000 µFund $ $ $ Total RTA 50,000 17725 50,000 Steam Pump Ranch Fund State/County Shared $ 275,000 $ 243,100 $ Federal Grants 250,000 Total Steam Pump Ranch Fund $ $ $ 525,000 243,100 Parks & Recreation Impact Fee Fund Development Impact Fees $ 2021425 $ 91,544 $ 127,640 Total Parks & Rec Impact Fee Fund $ $ $ 127,640 2027425 91,544 4/11 SCHEDULE C Page 3 of 6 246 CITY/TOWN OF Oro Valley Summary by Fund Type of Revenues Other Than Property Taxec Fiscal Year 2012 ESTIMATED ACTUAL ESTIMATED REVENUES REVENUES* REVENUES SOURCE OF REVENUES 2011 2011 2012 Library Impact Fee Fund Development Impact Fees _ $ 52,050 $ 23,545 $ 327831 Total Library Impact Fee Fund $ 527050 $ 237545 $ 32,831 Police Impact Fee Fund Development Impact Fees $ 467483 $ 18,258 $ 347477 Total Police Impact Fee Fund $ 46,483 $ 18,258 $ 341477 General Government Impact Fee Fund Development Impact Fees $ 747880 $ 14,530 $ 679485 Total General Govt Impact Fee Fund $ 74,880 $ 147530 $ 671485 Total Capital Projects Funds $ 13,900,472 $ 10,906,075 $ 111463,473 * 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. 4/11 SCHEDULE C Page 4 of 6 247 CITY/TOWN OF Oro Valley Summary by Fund Type of Revenues Other Than Property Taxec. Fiscal Year 2012 ESTIMATED ACTUAL ESTIMATED REVENUES REVENUES* REVENUES SOURCE OF REVENUES 2011 2011 2012 ENTERPRISE FUNDS Oro Valley Water Utility Fund Water Sales $ 11,689,300 $ 1116821799 $ 11,682,799 Charges for Services 458,700 463,075445,200 State Grants 35,000 Other 44,000 137600 T 16,300 Total Oro Valley Water Utility Fund $ 12,227,000 $ 1271597474 $ 127144,299 Stormwater Utility Fund Federal Grants $ 11188,500 $ 8761500 $ 3807000 State Grants 930,100 413,840 575,000 Charges for Services 743,500 743,700 751,000 Other 1,500 1,500 500 Total Stormwater Utility Fund $ 2,863,600 $ 2,035,540 $ 1,706,500 Total Enterprise Funds $ 15,090,600 $ 143195,014 $ 13,850,799 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. 4/11 SCHEDULE C Page 5 of 6 248 CITY/TOWN OF Oro Valley Summary by Fund Type of Revenues Other Than Property Taxec Fiscal Year 2012 ESTIMATED ACTUAL ESTIMATED REVENUES REVENUES* REVENUES SOURCE OF REVENUES 2011 2011 2012 INTERNAL SERVICE FUNDS Fleet Maintenance Fund 4w Charges for Services $ $ $ 436,271 4W W Total Fleet Maintenance Fund $ $ $ 4 36,2 71 AV Total Internal Service Funds $ $ $ 4361271 TOTAL ALL FUNDS $ 59,696,716 $ 53,521,002 $ 55,822 831 * 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. 4/11 SCHEDULE C Page 6 of 6 249 CITY/TOWN OF Oro Valley Summary by Fund Type of Other Financing Sources/<Uses> and Interfund Transfers Fiscal Year 2012 OTHER FINANCING INTERFUND TRANSFERS 2012 2012 FUND SOURCES <USES> IN <OUT> GENERAL FUND Transfer to Municipal Debt Service Fund $ $ $ $ 223,352 Transfer from Bed Tax Fund 111257926 Total General Fund $ $ $ 111257926 $ 2237352 SPECIAL REVENUE FUNDS Bed Tax Fund $ $ $ $ 111257926 Highway Fund _ 400,000 Total Special Revenue Funds $ $ $ $ 115257926 DEBT SERVICE FUNDS Municipal Debt Service Fund $ $ $ 2287647 $ •r�r► Total Debt Service Funds $ $ $ 2287647 $ CAPITAL PROJECTS FUNDS Alternative Water Rscs Dev Impact Fee Fund $ $ $ $ 100,000 Townwide Roadway Dev Impact Fee Fund 400,000 Total Capital Projects Funds $ $ $ 400,000 $ 1001000 • ENTERPRISE FUNDS Oro Valley Water Utility Fund $ 7007000 $ $ 1007000 $ 57295 .r Total Enterprise Funds $ 7001000 $ $ 1007000 $ 57295 INTERNAL SERVICE FUNDS Total Internal Service Funds $ $ $ $ TOTAL ALL FUNDS $ 7007000 $ $ 118547573 $ 1,8547573 4/11 SCHEDULE D 250 4W 4W 4W CITY/TOWN OF Oro Valley $ 220,610 $ Summary by Department of Expenditures/Expenses Within Each Fund TypE $ Fiscal Year 2012 Clerk 378,581 ADOPTED EXPENDITURE/ 374,081 BUDGETED EXPENSE ACTUAL BUDGETED EXPENDITURES/ ADJUSTMENTS EXPENDITURES/ EXPENDITURES/ EXPENSES APPROVED EXPENSES* EXPENSES FUND/DEPARTMENT 2011 2011 2011 2012 GENERALFUND Council $ 220,610 $ (3,000) $ 197,610 $ 220,573 Clerk 378,581 374,081 456,089 Development & Infrastructure Services 3,084,586 2,735,661 3,340,679 Finance 727,613 721,613 722,199 General Administration 2,469,851 2,265,400 2,141,767 Human Resources 484,189 455,657 482,649 Information Technology 1,120,106 1,098,106 1,252,797 Legal 8429785 740,785 841,832 Magistrate Court 753,772 744,922 781,625 Manager 974,906 892,553 877,167 Parks, Rec, Library & Cultural Resources 2,947,715 2,887,080 2,876,702 Police 11,566,573 3,000 11,199,698 12,096,513 Contingency Reserve 10,620,363 117,816 9,381,226 Total General Fund $ 36,191,650 $ $ 24,430,982 $ 35,471,818 SPECIAL REVENUE FUNDS Highway User Revenue Fund $ 7,674,342 $ $ 3,772,839 $ 6,308,485 Public Transportation Fund 456,852 427,420 Seizures and Forfeitures - State Fund 307,262 511701 344,420 Seizures and Forfeitures - Federal Fund 562,628 87,000 696,661 Bed Tax Fund 1,303,218 380,146 638,276 Impound Fee Fund 66,124 47,717 52,283 Total Special Revenue Funds $ 10,370,426 $ $ 49766,823 $ 8,040,125 DEBT SERVICE FUNDS Municipal Debt Service Fund $ 2,061,607 $ $ 499,140 $ 1,885,937 Oracle Road Improvement District Fund 378,012 372,298 370,332 Total Debt Service Funds $ 2,439,619 $ $ 8719438 $ 29256,269 CAPITAL PROJECTS FUNDS Regional Transportation Authority Fund $ 50,000 $ $ 1,725 $ 50,000 Townwide Roadway Dev Impact Fee Fund 21,957,121 8,039,435 10,861,424 Capital Asset Replacement Fund 499,639 314,938 Steam Pump Ranch Fund 645,304 399,190 Honey Bee Village Fund 8,229 Narania Park Fund 258,821 258,821 Alternative Water Rscs Dev Impact Fee Fund 4,291,729 3,116,352 3,513,774 Potable Water System Dev Impact Fee Fund 10,568,100 3,379,671 7,434,228 Parks & Recreation Impact Fee Fund 410,401 425,126 Library Impact Fee Fund 105,551 109,354 Police Impact Fee Fund 99,161 97,985 General Government Impact Fee Fund 149,353 144,990 Solar Photovoltaic Fund 2,500,000 2,456,665 Total Capital Projects Funds $ 41,543,409 $ $ 17,707,976 $ 22,895,702 ENTERPRISE FUNDS Oro Valley Water Utility Fund $ 21,731,311 $ $ 11,467,652 $ 23,015,231 Stormwater Utility Fund 3,057,402 1,973,030 2,104,231 Total Enterprise Funds $ 24,788,713 $ $ 13,440,682 $ 25,119,462 INTERNAL SERVICE FUNDS Fleet Maintenance Fund $ 874,968 $ $ 874,968 $ 436,271 Total Internal Service Funds $ 874,968 $ $ 874,968 $ 436,271 TOTAL ALL FUNDS $ 116,208,785 $ $ 62,092,869 $ 94,219,647 * 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. 4/11 SCHEDULE E 251 CITY/TOWN OF Oro Valley VP Summary by Department of Expenditures/Expenses Fiscal Year 2012 MW ADOPTED EXPENDITURE/ v` BUDGETED EXPENSE ACTUAL BUDGETED vp EXPENDITURES/ ADJUSTMENTS EXPENDITURES/ EXPENDITURES/ EXPENSES APPROVED EXPENSES* EXPENSES DEPARTMENT/FUND 2011 2011 2011 2012 Development & Infrastructure Svcs: General Fund $ 3,084,586 $ $ 2,735,661 $ 3,340,679 10 Highway Fund 7,674,342 3,772,839 6,308,485 Public Transportation Fund 456,852 427,420 Townwide Roadway Dev Impact Fee Fund 21,957,121 8,039,435 10,861,424 Stormwater Utility Fund 3,057,402 1,973,030 27104,231 Regional Transportation Authority Fund 507000 1,725 50,000 Fleet Maintenance Fund 874,968 874,968 436,271 Department Total $ 37,155,271 $ $ 17,825,078 $ 23,101,090 Water Utility: Oro Valley Water Utility Fund $ 2177317311 $ $ 11,467,652 $ 2370157231 Alternative Water Rscs Dev Impact Fee Fund 472917729 3,116,352 3,513,774 Potable Water System Dev Impact Fee Fund 10,568,100 37379,671 7,4347228 110 Department Total $ 36,591,140 $ $ 17,963,675 $ 33,963,233 11110 General Administration: General Fund $ 214697851 $ $ 2,265,400 $ 2,141,767 Capital Asset Replacement Fund 4997639 314,938 Municipal Debt Service Fund 2,0617607 499,140 1,8857937 Oracle Road Improvement District Fund 378,012 3727298 3707332 General Government Impact Fee Fund 149,353 144,990 Solar Photovoltaic Fund 2,500,000 2,4567665 Department Total $ 8,058,462 $ $ 5,908,441 $ 4,543,026 Manager: me General Fund $ 9747906 $ $ 8927553 $ 8771167 Bed Tax Fund 3157348 437521 380,146 235,981 1110 Department Total $ 1,290,254 $ 43,521 $ 1,272,699 $ 1,113,148 Parks, Rec, Library & Cultural Resources: my General Fund $ 2,947,715 $ $ 2,887,080 $ 2,8767702 vp Parks & Recreation Impact Fee Fund 410,401 425,126 Library Impact Fee Fund 105,551 109,354 Steam Pump Ranch Fund 645,304 3997190 Naranja Park Fund 258,821 258,821 1116 Honey Bee Village Fund 8,229 Department Total $ 4,376,021 $ $ 3,286,270 $ 3,670,003 Police: General Fund $ 117566,573 $ 3,000 $ 11,196,698 $ 127096,513 Seizures & Forfeitures - State Fund 3071262 51,701 3447420 410 Seizures & Forfeitures - Federal Fund 562,628 87,000 6967661 Police Impact Fee Fund 99,161 977985 IV Impound Fee Fund 667124 47,717 527283 Department Total $ 12,601,748 $ 3,000 $ 11,3831116 $ 13,287,862 Includes actual expenditures/expenses recognized on the modified accrual or accrual basis as of the date the proposed budget VIP was prepared, plus estimated expenditures/expenses for the remainder of the fiscal year. qv 10 1111110 10 4/11 SCHEDULE F 252 r C k...EY AR�� ~S(JNDEID 9�� 7 Town of Oro Valley Caring for our heritage, our community, our future. 2011 - 2012 Annual Budget Orr 253 This Page Intentionally Left Blank 1011 - 2012 Annual Budget 254 is p 1p.LLEY ''11' , 11► 'mmmmp- .1L7 Council Mayor Council Member Total Council Clerk Town Clerk Deputy Town Clerk Assistant to the Town Clerk Licensing & Customer Service Clerk Office Assistant Total Clerk I Development & Infrastructure Svcs. (DIS) Director, Dev. & Infrastructure Svcs. Town Engineer Division Manager, Permitting Division Manager, Planning Division Manager, Inspection & Compliance Engineering Division Manager Operations Division Manager Conservation & Sustainability Administrator Senior Civil Engineer Principal Planner Civil Engineer Stormwater Engineer Transit Services Administrator Construction Manager Senior Planner Civil Engineering Designer Engineering Design Reviewer Special Projects Coordinator Plans Examiner II Building Inspector II Plans Examiner I Senior Civil Engineering Tech Streets & Drainage Senior Crew Leader Senior Traffic Technician Code Compliance Coordinator Construction Inspector Administrative Coordinator Civil Engineering Technician Facilities Maintenance Crew Leader Fleet Maintenance Mechanic III Pavement Management Specialist Traffic Signs/Markings Crew Leader Heavy Equipment Mechanic Streets & Drainage Crew Leader Traffic Technician Zoning Plans Examiner Zoning Technician Development Coordinator Facilities Maintenance Technician Fleet Maintenance Mechanic II Senior Heavy Equipment Operator Senior Office Specialist Senior Traffic Signs/Markings Worker Building Permit Technician Heavy Equipment Operator Office Specialist/Ombudsperson Office Specialist 2011-2012 Annual Budget Personnel Schedule FY 2009 1 FY 2010 FY 2011 FY 2012 Actual Budget Projected Budget 1.00 1.00 1.00 1.00 1.00 6.00 6.00 6.00 6.00 6.00 7.00 7.00 7.00 7.00 7.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.60 1.00 1.00 1.00 1.00 - - 0.63 0.63 0.63 F- 4.60 4.00 4.63 4.63 4.63 - - 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 - - 1.00 1.00 1.00 - - 1.00 1.00 1.00 - - 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 - - 1.00 1.00 1.00 1.00 1.00 2.00 2.00 2.00 - - 1.00 1.00 1.00 2.00 3.00 3.00 3.00 3.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 - - - - - - 3.00 3.00 3.00 2.00 2.00 2.00 2.00 2.00 - - 1.00 1.00 1.00 - - 1.00 1.00 - - - 2.00 2.00 2.00 - - 4.00 4.00 4.00 - - 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 - - 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 2.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 - 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 - - - - 2.00 2.00 2.00 2.00 2.00 1.00 1.00 1.00 1.00 1.00 - - 1.00 1.00 1.00 - - 1.00 1.00 1.00 - - 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 - 1.00 1.00 1.00 - 1.00 1.00 1.00 1.00 1.00 - - 1.00 - - 1.00 1.00 1.00 1.00 1.00 - - 2.00 2.00 2.00 5.00 4.00 4.00 4.00 4.00 - - 1.00 1.00 1.00 1.00 1.00 1.00 1.00 2.00 255 to Budget 0 0 Appendix 1.00 Traffic Signs/Markings Worker Lead Transit Driver Transit Dispatcher Construction Clerk Senior Office Assistant Transit Driver Maintenance Worker Office Assistant Stormwater Intern Total DIS Building Safety Building Safety Director Assistant Building Official Chief Building Inspector Plans Examiner II Plans Examiner I Building Inspector II Building Inspector I Senior Building Permit Technician Building Permit Technician Office Specialist Senior Office Assistant Total Building Safety Development Review Development Review Division Manager Senior Civil Engineer Civil Engineer Engineering Design Reviewer Civil Engineering Tech Total Development Review Planning & Zoning Planning & Zoning Director Assistant Planning & Zoning Director Principal Planner Senior Planner Special Projects Coordinator Planner Zoning Program Supervisor Zoning Inspector Planning Technician Development Coordinator Zoning Inspector Technician Senior Office Specialist Senior Office Assistant Office Assistant Total Planning & Zoning Finance F=inance Director Procurement Administrator Accounting Supervisor Management & Budget Analyst Senior Accountant F=inance Analyst Senior Office Specialist Payroll Specialist AccountingClerk Total Finance Personnel Schedule FY 2009 1 FY 2010 FY 2011 FY 2012 Actual Budget Projected Budget 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 - - - - 1.63 1.01 3.00 2.00 2.96 5.99 4.74 4.74 7.11 7.11 2.00 2.00 2.00 2.00 2.00 0.30 - - - - 46.92 43.75 73.74 73.11 73.07 1.00 1.00 - - - 1.00 - - - - 1.00 1.00 - - - 4.00 4.00 - - - 6.00 5.00 - - - 2.00 2.00 - - - 1.00 - - - - - 1.00 - - - 16.00 14.00 - - - 1.00 1.00 - - - 1.00 1.00 - - - 1.00 - - - - 1.00 1.00 - - - 2.00 1.00 - - - 6.00 4.00 - - - 1.00 - - - - 1.00 1.00 - - - 1.00 1.00 - - - 3.00 3.00 - - - 1.00 1.00 - - - 1.00 1.00 - - - 1.00 1.00 - - - 1.00 1.00 - - - 1.00 1.00 - - - 2.00 1.00 - - - 1.00 - - - - 1.00 1.00 - - - 1.00 1.00 - - - 1.00 - - - - 17.00 13.00 - - - 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 - - - - 1.00 - - - - 1.00 1.00 1.00 1.00 1.00 9.00 7.00 7.00 7.00 7.00 to Budget 2011-2012 Annual Budget Appendix 256 (0.04) 2.37 0.67 • • Human Resources Human Resource Director Safety & Risk Manager Employee and Org. Dev. Analyst Human Resource Specialist Total Human Resources I Information Technology IT Director Network Administrator Network Manager Systems Analyst Data Base Analyst GIS Analyst IT Technician (Total Information Technology I Legal Town Attorney Town Prosecutor Chief Civil Deputy Attorney Assistant Town Prosecutor Civil Attorney Senior Paralegal Paralegal II Paralegal I Legal Secretary Office Assistant Total Legal Magistrate Court Magistrate Judge Court Administrator Courtroom Clerk Senior Court Clerk Court Clerk Bailiff (Total Magistrate Court I Manager Town Manager Assistant Town Manager Assistant to the Town Manager Executive Assistant Senior Office Specialist Management Intern Economic Development Manager Economic Development Intern Communications Administrator Public Information Officer Communications Specialist Communications Intern Constituent Services Coordinator Total Manager Parks, Recreation, Library & Cultural Rscs. Parks & Recreation Director Parks Maintenance Manager Recreation Manager Multimodal Planner 2011-2012 Annual Budget Personnel Schedule FY 2009 1 FY 2010 FY 2011 FY 2012 Actual Budget Projected Budget 1.00 1.00 1.00 1.00 1.00 - 1.00 1.00 1.00 1.00 1.00 - 1.00 1.00 1.00 2.00 2.00 2.00 2.00 2.00 4.00 4.00 5.00 5.00 5.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 - 1.00 1.00 1.00 - 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 2.00 2.00 2.00 2.00 2.00 1.00 1.00 1.00 1.00 1.00 7.00 8.00 8.00 8.00 7.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 - - - - 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 - - - - 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 10.00 8.00 8.00 8.00 8.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 3.00 3.00 3.00 3.00 3.00 2.00 2.00 2.00 2.00 2.00 1.00 1.00 1.00 1.00 1.00 9.00 9.00 9.00 9.00 9.00 1.00 - 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 0.40 0.40 - - - 1.00 1.00 1.00 1.00 1.00 0.40 0.40 0.40 0.40 - 1.00 1.00 1.00 - 1.00 - 1.00 1.00 - - 1.00 1.00 1.00 1.00 1.00 0.10 0.10 0.10 0.10 0.10 1.00 1.00 1.00 1.00 1.00 9.90 9.90 10.50 8.50 9.10 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 257 to Budget Appendix �Q-4pt.L h r o � .r wNDE0 ,y Aquatics Manager Parks Maintenance Crew Leader Senior Park Maintenance Worker Senior Office Specialist Senior Office Assistant Assistant Recreation Manager Recreation Leader Assistant Pool Manager Park Maintenance Worker Park Monitor Recreation Aide Water Safety Instructor Library Services Manager Librarian Office Specialist Library Associate Customer Service Representative Library Page Total Parks Rec Library & Cultural Rscs. Police Chief of Police Deputy Chief of Police Commander Lieutenant Sergeant Detective Patrol Officer Motorcycle Officer School Resource Officer K-9 Officer DUI Officer Training Officer Reserve Officer Communications Supervisor Lead Dispatcher Dispatcher Records Supervisor Records Specialist Lead IT Forensics Technician Property Forensics Technician Professional Dev. & Training Administrator Public Information Officer Administrative Services Manager Crime Analyst Emergency Response Planner Fleet Maintenance Mechanic II Senior Office Specialist Office Specialist Maintenance Technician Office Assistant Total Police Water Utility Water Utility Director Engineering Division Manager Water Utility Administrator Water Production Superintendent Water Distribution Superintendent Water Engineer Project Manager Meter Reader Supervisor Personnel Schedule FY 2009 1 FY 2010 FY 2011 FY 2012 Actual Budget Projected Budget 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 2.00 2.00 2.00 2.00 2.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 0.34 0.40 0.40 0.40 0.40 0.50 - - - - 3.00 3.00 3.00 3.00 3.00 1.40 0.70 0.70 0.70 0.70 3.04 3.05 2.70 2.70 1.50 8.30 9.30 6.15 6.15 6.32 1.00 1.00 1.00 1.00 1.00 4.00 4.00 4.00 4.00 4.00 1.00 1.00 1.00 1.00 1.00 5.17 4.95 4.95 4.95 4.48 2.96 4.50 4.36 4.36 4.54 4.55 3.05 3.05 3.05 3.00 46.26 45.95 42.31 42.31 40.94 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 2.00 2.00 2.00 2.00 2.00 5.00 5.00 5.00 5.00 5.00 13.00 13.00 13.00 13.00 13.00 6.00 5.00 5.00 5.00 6.00 53.00 49.00 48.00 49.00 49.00 5.00 7.00 7.00 6.00 7.00 7.00 7.00 7.00 7.00 7.00 4.00 4.00 4.00 3.00 3.00 2.00 2.00 2.00 2.00 2.00 1.00 1.00 1.00 1.00 1.00 2.38 1.90 2.38 0.48 2.38 1.00 1.00 1.00 1.00 1.00 3.00 3.00 3.00 3.00 3.00 9.00 9.00 9.00 9.00 9.00 1.00 1.00 1.00 1.00 1.00 6.50 6.00 6.00 5.00 5.00 1.00 1.00 1.00 1.00 1.00 2.00 2.00 2.00 2.00 2.00 1.00 - - - - 1.00 - - - - 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 - - 1.00 1.00 1.00 - - - - 1.00 1.00 1.00 1.00 1.00 1.00 2.00 2.00 2.00 2.00 2.00 1.00 - - - - 1.50 1.70 1.70 1.25 1.25 135.38 128.60 129.08 124.73 129.63 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 to Budget 0.17 (0.47) 0.18 0.05 1.37 1.00 1.00 (1.00) (1.00) A) - 1.00 (0.45) 1 0.55 1 2011-2012 Annual Budget Appendix 258 EY ti ED Engineering Design Reviewer Water Conservation Specialist Lead Water Utility Operator Construction Inspector Civil Engineer Tech Water Utility Operator II Senior Office Specialist Customer Service Supervisor Water Utility Operator I Customer Service Representative Water Conservation Assistant Total Water Utility Total Personnel Personnel Schedule FY 2009 1 FY 2010 FY 2011 FY 2012 Actual Budget Projected Budget 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 4.00 4.00 4.00 4.00 4.00 2.00 2.00 2.00 2.00 2.00 1.00 1.00 1.00 1.00 1.00 7.00 7.00 9.00 8.00 9.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 7.00 6.00 5.00 4.00 5.00 4.00 4.00 4.00 4.00 4.00 0.50 - - - 36.50 35.00 36.00 34.00 36.00 364.56 341.20 340.26 331.28 336.37 (A) Position contingent upon Department of Justice Homeland Security grant funding 2011-2012 Annual Budget 259 to Bud et Appendix 2011 - 2012 Annual Budget This Page Intentionally Left Blank 260 O�OY qq��O�� /n\,Ing Town of Oro Valley Caring for our heritage, our community, our future. 2011 - 2012 Annual Budget 4r 261 This Page Intentionally Left Blank 2011 - 2012 Annual Budget 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 Princi al Interest Total 2012 780,000 358,896 11138,896 2013 8931750 322,902 11216,652 2014 9421500 276,996 11219,496 2015-2017 3,4021750 554,571 31957,321 2018-2020 2,8691750 173,886 3,043,636 Total $8,888,750 $1,687,251 $10,576,001 $29,205,000 Senior Lien Water Project Revenue Bonds, Series 2003 Date: December 18, 2003 Interest: Payable semiannually commencing on July 1, 2004, and semiannually thereafter on January 1 and July 1 of each year. Purpose: The bonds were issued to provide funding to refinance certain outstanding excise tax secured obligations, to construct Phase I of the reclaimed water system, and provide funds for the expansion and improvements to the potable water system. Security: Water Revenues Debt Service: Fiscal Year Princi al Interest Total 2012 114001000 111231185 21523,185 2013 11445,000 110671923 21512,923 2014 980,000 1,017,280 1,997,280 2015-2019 5,560,000 4,372,950 91932,950 2020-2024 7,075,000 218051625 91880,625 2025-2029 7,550,000 9811000 8,5311000 Total $241010,000 $11,367,963 $35,377,963 2011 - 2012 Annual Budget Appendix 263 Debt Service Schedules $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 Princi al Interest Total Debt Service: 2351000 1351578 370,578 Fiscal Year Principal Interest Total 2012 2551000 2001369 4551369 2013 2651000 1891613 4541613 2014 2751000 1771819 452.819 2015-2018 1,2201000 6021725 1,822,725 2019-2022 1,4201000 393,544 1,813,544 2023-2026 1,6651000 1421691 118071691 Total $511001000 $1,706,760 $6,806,760 $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 Princi al Interest Total 2012 2351000 1351578 370,578 2013 250,000 123,828 373,828 2014 2601000 1111328 371,328 2015-2018 111551000 3271410 114821410 2019-2021 110201000 971158 1,117,158 Total $2,920,000 $795,300 $31715,300 2011 — 2012 Annual Budget Appendix 264 ¢O J�,,,IEY Mq t7� y �► �'�YDEp 1�A Debt Service Schedules $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 2012 1151000 740,581 85 5, 581 2013 1201000 735,588 855,588 2014 1251000 730,381 855,381 2015-2019 21870,000 31376,625 612461625 2020-2024 71805,000 2,0901281 91895,281 2025-2027 514751000 358,806 5,833,806 Total $16,510,000 $8,032,263 $24,542,263 $8,000,000 Highway Expansion and Extension Loan (H.E.L.P.) Date: October 7, 2007 Interest: Payable annually commencing on August 8, 2008, and payable August 1 of each year. Purpose: Proceeds from the loan are used to finance the improvements of La Canada Drive from Tangerine Road to Naranja Drive. Security: Impact fees and funding secured from the Pima Association of Governments (PAG). Debt Service: Fiscal Year Principal * Interest Total 2012 21513,133 102,334 216151467 Total $2, 513,133 $102,334 $2,615,467 * The Town will receive $2.5M in 12.6% funding in FY 2012 for the principal payment 2011 - 2012 Annual Budget 265 Appendix Debt Service Schedules $4,584,652 Water Infrastructure Finance Authority Bonds 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: The bonds were issued to finance the construction of infrastructure to expand the reclaimed water system in the Town. Security: Water Revenues Debt Service: Fiscal Year Princi al Interest Total 2012 179,266 1371608 316,875 2013 1851605 1311157 3161763 2014 1921168 1241478 316,647 2015-2019 110671702 513,641 11581,343 2020-2024 11270,302 307,459 1577,761 2025-2028 11086,224 73,258 1,1591482 Total $3,981,268 $1,287,602 $5,268,871 $3,403,000 Water Infrastructure Finance Authority Bonds 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: The bonds were issued to finance existing water system infrastructure improvements. Security: Water Revenues Debt Service: Fiscal Year Princi al Interest Total 2012 128,404 1011927 230,331 2013 1321476 971790 230,266 2014 136,676 93,523 230,200 2015-2018 5911442 328,647 920,089 2019-2022 670,105 248,737 918,842 2023-2026 759,230 1581198 9171429 2027-2030 860,209 55, 619 915,828 Total $3,278,543 $1,084,441 $4,362,983 2011 - 2012 Annual Budget Appendix 266 O Jp1„�EY —0 �, o.R` tr rt ►YU "C cpA 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 2012 1251000 1221689 2471689 2013 135,000 1191691 254,691 2014 1351000 115,864 250,864 2015-2018 540, 000 410521 950,521 2019-2022 570,000 300,217 870,217 2023-2026 615,000 163,114 778,114 2027-2028 325,000 21502 346502 Total $2,445,000 $1,253,597 $3,698,597 * Debt Service is subsidized by electricity rebates from Tucson Electric Power Co. and a 70% interest subsidy from the U.S. Treasury Department 2011 - 2012 Annual Budget Appendix 267 2011 - 2012 Annual Budget This Page Intentionally Left Blank 268 C .A -LEY ARS OUN mC31 IA Town of Oro Valley Caring for our heritage, our community, our future. 2011 - 2012 Annual Budget 4r 269 2011 - 2012 Annual Budget This Page Intentionally Left Blank 270 fO • all All 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. 2011 — 2012 Annual Budget 271 Glossary of Terms 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 and primarily user fees 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. Appendix 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 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: A balance or carry over that occurs when actual revenues exceed budgeted revenues and/or when actual expenditures are less than budgeted expenditures. 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 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. 2011 — 2012 Annual Budget 272 Glossary of Terms 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 of federal government or other agency to support a particular function. HIGHWAY EXPANSION AND EXTENSION FUND LOANS (HELP): The HELP program is a financing option where Arizona's State Infrastructure Bank Loan bridges the gap between roadway improvement needs and available funds. 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 is 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 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. Appendix L -A • J04-LEY IM42/ oYO • t i� a �• k lAk4 ♦- AL 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. 2011 — 2012 Annual Budget 273 Glossary of Terms 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 benefits 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 has statutory charges 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. Appendix 2011 - 2012 Annual Budget This Page Intentionally Left Blank 274