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HomeMy WebLinkAboutPackets - Council Packets (748)Council Meeting Regular/Special Session April 18, 2018 1 Town Council Meeting Announcements 2 Upcoming Meetings 3 Oro Valley Main Streets Fun, food, games and give-a-ways! Public art can be fun and messy! Come chat about OV Main Streets and show your chalk skills! A friendly, sidewalk chalk competition is also being held for all ages and abilities. Go to www.orovalleyaz.gov/MainStreets to register or pick-up an application near the agendas. Saturday, April 28 4:00-7:00 PM Fry’s parking lot at Lambert Lane and La Cañada- look for the food trucks! 4 5 Villages at Silverhawke-Phase 1 Final Plat Town Council January 17, 2018 6 Good Evening Purpose Proposed Final Plat 58 lot subdivision on 27 acres One access drive on 1st Avenue 13 acres open space Easements for two public trails Conforms to approved Tentative Development Plan Discussion and possible action 7 Location First Ave. Tangerine Rd. Catalina Shadows Palisades South Palisades Sanctuary at Silverhawke Palisades Rd. Subject Property Phase 1 8 First Avenue N Villages as Silverhawke Palisades Road Phase 1 9 N First Avenue Palisades Road Trail Easements Access Drive Phase 1 10 Summary and Recommendation In conformance with: Town Zoning Code Approved Tentative Development Plan Staff recommends approval 11 12 Viewpointe II at Vistoso Trails Final Plat Town Council April 18, 2017 13 Good evening… Purpose Final Plat 45 homes 4500 - 5800 sf 14 acres Moore Road Preserve Hills Our purpose for this item is to consider… 14 Viewpoint Hohokam Mesa Rancho Vistoso Blvd. Preserve Moore Road Ridgeview Patio Homes Subject Property Future Moore Road Subject Property (Yellow) Immediately adjacent to HB Village preserve…along the future Moore Road Hohokam Mesa Ridgeview Viewpointe I 15 Moore Road Preserve Again the key components which drive the design are the Preserve existing open space/hillsides. An earlier approval (Condo) project, permitted encroachment as shown by the Black Line --- this request more closely follows the natural characteristics of the land and represents a significant reduction in the amount of encroachment. 16 Prior approval – The Retreats at Vistoso Preserve Moore Road Condominiums 124 lots Two ingress/egress Open Space/Hillside encroachment Previous approval - 124 condo units - 2 access points - more encroachment into open space/hillsides 17 18 FY 2018/19 Town Manager’s Recommended Budget April 18, 2018 19 Overview Budget timeline Budget snapshot Strategic Plan focus areas Budget highlights 20 FY 2018/19 Budget Timeline MARCH 2 Department budget requests due to Finance JANUARY One-on-one meetings with Councilmembers to outline budget priorities Following same timeline as in previous years 21 Budget Snapshot FY 2018/19 Town Manager’s Recommended Budget Recommended Budget total = $143,175,201 $14.6 million, or 11.4%, increase from Adopted FY 17/18 Budget Increase is due primarily to $4.1 million increase in grant-funded roadway projects $2 million grant-funded Stormwater capital project $1.2 million increase in capacity for bond-funded capital projects $6 million increase in projected year-end reserve balances as result of revenue growth (economic improvement, development activity, impact fee collections, etc.) General Fund $2.9 million planned use of excess reserves for one-time expenditures and ending fund balance of $12.1 million (29% of expenditures; policy is 25%) 22 Economic Development Complete Community Parks and Recreation Public Safety Town Assets 2017 Strategic Plan Focus Areas guided the development of the FY 2018/19 Recommended Budget Strategic Plan Budget Focus Areas Water Resources and Energy Cultural Resources Land Use and Design Transportation Cost of Services 23 Economic Conditions and Revenue Projections Growth projections 306 single family residential (SFR) permits forecasted Continued commercial development activity License & permit revenue growth projected at 3.5% in the General Fund Local sales tax revenue growth projected at 6% State shared revenues roughly flat Use of one-time revenues for one-time expenditures Transfer of $3.4 million in one-time revenues from General Fund to the Capital Fund $1.9 million for FY 2018/19 projects $1.5 million as seed money for future projects Economic Development Increased funding for Visit Tucson ($300K) and the Greater Oro Valley Chamber of Commerce ($40K) 24 Staffing, Compensation and Benefits Merit and step increases 5% health insurance premium increase (Town and employees) Four new full-time positions Procurement specialist IT systems analyst Public information officer Parks and Recreation deputy director Conversion of two part-time positions in Clerk’s Office to one full-time Replacement of one part-time position in Human Resources to one full-time Several position reclassifications 25 Town Operations Organizational changes Former Community Development and Public Works Department divided into two departments Public Works Community and Economic Development (CED) Consolidation of fleet operations in Public Works Former Bed Tax Fund budget consolidated in the General Fund Consolidation of telecommunications and technology dollars in Information Technology Budget reflects incorporation of a recommended Water Utility rate increase 26 Major Capital Investments Major capital investment budgeted for FY 2018/19 La Cholla Blvd. widening project - $12.7 million Water Utility projects - $4.8 million Police evidence facility - $3.4 million Community Center bond-funded improvements - $3 million Stormwater Utility improvements - $2.3 million La Cañada and Moore intersection improvement - $1 million Pavement preservation - $800K Recreation improvements - $495K (JDK Park ballfield renovations, Steam Pump Ranch landscaping, tennis court improvements) Facility roof replacements $252K 27 Year-over-Year Budget Comparison Financial Overview 28 Budget by Category Financial Overview (Continued) 29 Budget by Fund Financial Overview (Continued) 30 Financial Overview (Continued) Capital Improvement Program (CIP) Total CIP projects = $31.5M Town-wide 31 Awards and Accolades Government Finance Officers Association (GFOA) Distinguished Budget Presentation Award – 10th consecutive year GFOA Certificate of Achievement for Excellence in Financial Reporting – 24th consecutive year GFOA Popular Annual Financial Reporting (PAFR) Award – 5th consecutive year 32 33 Alternative Expenditure Limitation Home Rule Option April 18, 2018 1st step in process to request voter approval to renew Town’s AEL, or Home Rule Option, which occurs every 4 years and will be brought forward for voter consideration at the August 28 Primary election Having Home Rule in place allows Town to set its annual budget limits locally, rather than having to operate under a much lower state-imposed expenditure limit 34 Expenditure Limitation History In 1980, voters approved a constitutional amendment to limit the level of local government spending Sections 20 and 21 added to Article IX of the Arizona Constitution and A.R.S. Section 41-1279.07 adopted to limit local government spending Limit applies to expenditures only Does not limit revenues or capacity to collect revenues State-imposed expenditure limit was voted into law via a Const. amendment back in 1980 and placed a limit on local govt spending These limitations are captured in several sections of the Const and in Arizona State Statutes The state-imposed limit applies to a local govt expenditures only, but does not limit revenues 35 Formula-based calculation: What is the State-Imposed Limitation? Fiscal Year 1979-80 Base Limit x Estimate by State for Oro Valley = $272,317 Population Growth Factor x Provided by AZ Dept. of Administration OV 1978 Population = 1,475 Inflation Factor Provided by AZ Dept. of Revenue State-imposed limitation is a formula-based calculation that uses what our Town’s revenues were back in 1979-80 ($272K) as base limit This base limit is adjusted up by a population growth factor provided by AZ Dept. of Admin which adjusts our population growth from 1978 thru current. 1978 population just under 1,500 residents This amount is further adjusted by an inflation factor that is provided by AZ Dept of Rev These are the three elements included in the formula to calculate the state-imposed limitation 36 Exclusions to the Limitation Constitutional exceptions to the limitation Expenditure types Revenue sources Examples Debt service payments Grants and aid from the federal government HURF revenues in excess of those received in FY 1979-80 The Const allows certain categories of revenues and exps of our budget to be excluded from the limitation Some examples of these exclusions are… As a result, these amounts are added to the formula that calculates our state-imposed limit 37 Estimated State-Imposed Limitation So by applying the formula, plus our estimated exclusions, we calculate our estimated state-imposed expenditure limitation shown on this slide for the next four years from 2019/20 through 2022/23, which the period over which the next Home Rule Option will cover. Can see these amounts range from $40M to almost $45M, which is much lower that our budgets have typically been historically. These limits would apply to all funds within the town budget, not just the General Fund. 38 How do we compare? This chart displays for the next four year period the amount of local, federal and state revenues the Town is projected to receive compared to the much lower state-imposed expenditure limit amounts from the previous slide and the resulting difference in the last column As you can see, the town would need to cut its budget drastically, roughly averaging between $80 – 90 M, in order to match the state-imposed limit amounts if Home Rule was not approved by the voters. 39 Consequences of State-Imposed Limitation Budget would need to be cut to match State-imposed limitation Revenue would continue to be earned at projected levels Contingency reserves would grow while services would be severely reduced Town would need to wait two (2) years to place Home Rule question on next regular election ballot Again, if Home Rule were not to pass, the Town would be required to follow the much lower state-imposed limitation and would need to cut our budget and services drastically to do so Because the state-imposed limit is a limitation on expenditures only, our revenues would continue to be earned and received As a result, our contingency reserves would grow… Then the law requires a 2-year waiting period before another Home Rule question could be place on the next regular election ballot 40 Alternative Expenditure Limitation (Home Rule Option) In 1980, through the Constitutional amendment, voters allow local jurisdictions to adopt an alternative to the State-imposed limitation Recognizes that state-imposed formula-based method does not factor in a jurisdiction’s service levels and revenue sources – one size does not fit all Allows a city or town to adopt its own budget limits locally, based on local needs, service levels and available resources Town has operated under the Home Rule Option for 36 consecutive years – voter approval received every 4 years since 1982 Fortunately, the Const amendment passed in 1980 allows an alternative to the state-imposed limitation in the form of the Alt Exp Limit or Home Rule Option Recognizing that the state-imposed formula doesn’t factor in a town’s service levels and revenue sources, and that one size does not fit all with the formula-based approach. With voter approval, the Home Rule Option allows for local control over setting our budget levels based on our local needs, service levels and available resources The town has operated under Home Rule… 41 Alternative Expenditure Limitation (Home Rule Option) Still under an expenditure limitation Limitation is set annually with the adoption of the budget Not formula-based Allows for greater flexibility Local control Addresses priorities and needs unique to community Budget is established and approved through a public process Public study sessions Publish budget prior to adoption Hold public hearing on tentative budget Hold public hearing on final budget and alternative expenditure limitation Does not result in an increase or decrease in tax rates Does not enable the Town to spend more than available resources With Home Rule… 42 Primary Election Key Dates This slide outlines some of the key dates leading up to the primary election for this issue 43 Questions? 44 45