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HomeMy WebLinkAboutPackets - Council Packets (866) AGENDA ORO VALLEY TOWN COUNCIL SPECIAL SESSION NOVEMBER 5, 2007 ORO VALLEY TOWN COUNCIL CHAMBERS 11000 N. LA CANADA DRIVE SPECIAL SESSION - AT OR AFTER 5:00 p.m. CALL TO ORDER ROLL CALL 1. DISCUSSION AND/OR POSSIBLE ACTION TO DECIDE NARANJA TOWN SITE BOND AUTHORIZATION AMOUNT AND PARK ELEMENTS; AND TO DIRECT STAFF TO PREPARE THE FORMAL CALL FOR THE NOVEMBER 2008 NARANJA TOWN SITE BOND ELECTION FOR COUNCIL APPROVAL BY OR BEFORE JANUARY 2008 ADJOURNMENT POSTED: 10/30/07 3:30 p.m. cp The Town of Oro Valley complies with the Americans with Disabilities Act(ADA). If any person with a disability needs any type of accommodation, please notify the Town Clerk's Office at (520)229-4700. TOWN OF ORO VALLEY Page 1 of 3 COUNCIL COMMUNICATION SPECIAL SESSION DATE: NOVEMBER 5, 2007 TO: HONORABLE MAYOR AND COUNCIL FROM: STACEY LEMOS, FINANCE DIRECTOR AINSLEY REEDER, PARKS AND RECREATION DIRECTOR SUBJECT: DISCUSSION AND POSSIBLE ACTION TO DECIDE NARANJA TOWN SITE BOND AUTHORIZATION AMOUNT AND PARK ELEMENTS; AND TO DIRECT STAFF TO PREPARE THE FORMAL CALL FOR THE NOVEMBER 2008 NARANJA TOWN SITE BOND ELECTION FOR COUNCIL APPROVAL BY OR BEFORE JANUARY, 2008 SUMMARY: At the last Naranja Town Site study session held on September 26, 2007, two (2) funding options were presented for Council consideration on the structuring of potential November 2008 ballot question(s). These two options are summarized below: OPTION 1: 1. Hold one bond authorization election with one or multiple ballot questions for+/- $150 million to build the park in phases with various sized bond issuances over time. 2. Phase I—Construct earthwork, infrastructure, playfields, courts, outdoor recreation elements, support, parking and bandshell/performance stage, $48 million bond issuance estimated March, 2009 3. Phase II—Construct Community Center, $69 million bond issuance estimated September, 2013 4. Phase III—Construct Aquatics Center and Music Pavilion, $37 million bond issuance estimated September, 2017 5. Maximum Secondary Property Tax Rate - $0.60/$100 of assessed valuation 6. O&M Funding Sources —Local bed tax and primary property tax OPTION 2: 1. Hold one bond authorization election with one ballot question for $40 - $50 million bond authorization to construct Phase I elements only 2. Maximum Secondary Property Tax Rate - $0.48/$100 of assessed valuation 3. O&M Funding Source—Local bed tax 4. Later phases of the park could be built with corporate donations, endowments, and/or further bond proceeds authorized at future bond elections. At the conclusion of this study session, the Mayor and Council gave staff further direction to come back with a third option, called the "Plug and Play Option," in the range of$80 - $100 million with a"menu" of park elements and costs from which to choose. Further, the Mayor and Council also requested that staff consult with a third party construction cost estimator to solicit a second opinion on the original Naranja Town Site construction cost elements. This is currently underway under the direction of Building Safety Director, Suzanne Smith, although it is not anticipated that these figures will be available for discussion purposes at this special session. Finally, Council Member Al Kunisch had requested that staff provide a table showing TOWN OF ORO VALLEY Page 2 of 3 COUNCIL COMMUNICATION SPECIAL SESSION DATE: NOVEMBER 5, 2007 estimated monthly cost impacts of different bond issuance amounts to homeowners with various home market values. This table is provided in Attachment A. OPTION 3—"PLUG AND PLAY OPTION": For the third option mentioned above, Attachment B provides a listing of the various proposed park elements, the respective populations served by each element, the total estimated construction costs escalated to 2009 dollars, and estimated ranges of revenue and expense potential for your consideration. It is important to note that the estimated construction costs listed assume that the park elements are constructed as originally proposed in the Naranja Town Site Master Plan. Because it is assumed that there will be economies of scale by constructing these elements in their entirety over a shorter term, the per unit costs for the Outdoor Recreation, Playfields, Courts and Support elements are lower than they would be if constructed one at a time in a piecemeal fashion. These costs are taken from the detailed Site Costs listing prepared by Bums Wald-Hopkins dated May 8, 2007 as shown in Attachment C. In Attachment D you will find a memorandum from Dave Bums of Bums Wald-Hopkins showing a breakdown of the square footages and costs for the separate construction of the Community Center and the 500-seat Theater. Also provided is the cost detail for the entire Community Center and Theater complex dated January 22, 2007. Individual revenue estimates and operations and maintenance cost estimates were not available for each separate park component, but can be readily calculated by cost consultants, Ballard King and Associates, upon p final determination of the park plan make-up. Reducing the size and scope of the originally proposed master plan will have a significant effect on the potential amount of revenue that could be generated by the park. A primary property tax election is still recommended, should the Council consider this third option, to provide continual, sustainable funding for the long-term operations and maintenance costs of the park site and facilities. An Excel template will be available for display during the November 5th Special Session for this "Plug and Play Option"to tabulate the chosen park element costs as they are chosen. Property Tax Impact of$80 - $100 Million Option Debt service schedules have been included in Attachment E showing an $80 million debt authorization ($40 million issuance in March, 2009 and another $40 million issuance in March, 2011) and a $100 million debt authorization($50 million issuance in March, 2009 and another $50 million issuance in March, 2011). For the $80 million debt issuance, the maximum annual tax rate is $0.62/$100 assessed valuation, with the average tax rate being $0.41/$100 assessed valuation over the term of the bonds. This equates to an average monthly cost of approximately $8.50 for a $300,000 market value home ($250,000 assessed value). For the $100 million debt issuance, the maximum annual tax rate is $0.78/$100 assessed valuation, with the average tax rate being $0.43/$100 assessed valuation over the term of the bonds. This equates to an average monthly cost of approximately $9.00 for a $300,000 market value home ($250,000 assessed value). Please note that the debt service schedules shown are just an example of one way that the principal and interest payments ments could be structured on these bonds. Additional scenarios could be considered to rearrange the timing TOWN OF ORO VALLEY Page 3 of 3 COUNCIL COMMUNICATION SPECIAL SESSION DATE: NOVEMBER 5, 2007 of principal repayment on these bonds or the bond issuance dates, thereby changing the annual property tax rates. It is important to note that one purpose of tonight's special session is to prepare for a formal call for the November 2008 bond election for Town Council approval by this December or January. Staff highly recommends that the election decision and ballot question(s) be finalized and the call for election occur this December or January to allow ample time for the public education and outreach effort. Therefore, the primary purpose of this special session is to decide what bond authorization amount, if any, will be placed before the voters in November of 2008 and what park elements should be included in the plan. The public education and outreach effort cannot begin to build awareness throughout the community of the Naranja proposal and the upcoming bond election until this is decided, therefore, the suggested motion has been worded to allow for the Town Council to make that decision this evening. ATTACHMENTS: 1. ATTACHMENT A— Summary of Monthly Cost Impacts to Homeowners 2. ATTACHMENT B—Naranja Town Site Menu Options Matrix 3. ATTACHMENT C—Site Cost Breakdown—Earthwork, Infrastructure, Outdoor Recreation 4. ATTACHMENT D—Dave Burns Memorandum, Community Center Cost Detail 5. ATTACHMENT E—Debt Service Schedules for$80 Million and $100 Million Bonds SUGGESTED MOTIONS: I move to recommend Option 1, Option 2, or Option 3 with the following park elements: in the amount of$ and direct staff to prepare the formal call for the November 2008 Naranja Town Site bond election for approval by the Town Council by or before January, 2008. 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Site Costs Oro Valley, Arizona Site Breakouts May 8, 2007 Item Quant. Unit Unit Cost Sub Cost Source Earthwork $ 4,783,900 Grading 755,000 CY $ 4.00 $ 3,020,000 Stantec Rip Rap 27,500 SF $ 4.00 $ 110,000 Stantec Retaining Walls 3,700 LF $ 447.00 $ 1,653,900 Stantec Utilities $ 3,018,700 8" Sewer 5,125 LF $ 75.00 $ 384,375 Stantec Manhole 30 EA $ 7,500.00 $ 225,000 Stantec 6" Sewer 5,725 LF $ 65.00 $ 372,125 Stantec 8" Water 8,770 LF $ 80.00 $ 701,600 Stantec 12" Water @ Spine Rd 5,500 LF $ 100.00 $ 550,000 Stantec 8" Reclaimed Water 1,420 LF $ 80.00 $ 113,600 Stantec 12" Reclaimed Water 3,720 LF $ 100.00 $ 372,000 Stantec Site Power 1 LS $300,000.00 $ 300,000 Hy-Lite Site Lighting (excl. sports lighting) 1 LS $750,000.00 $ 750,000 $ 750,000 Hy-Lite Site Drainage $ 396,750 30" CMP 1,100 LF $ 90.00 $ 99,000 Stantec 36" CMP 150 LF $ 125.00 $ 18,750 Stantec Box Culvert 465 CY $ 600.00 $ 279,000 Stantec Offsite Access Road Improvements $ 221,330 Naranja Earthwork 3,120 CY $ 4.00 $ 12,480 Stantec Naranja Paving 3,120 SY $ 19.00 $ 59,280 Stantec Tangerine Earthwork 6,400 CY $ 4.00 $ 25,600 Stantec Tangerine Paving 3,630 SY $ 19.00 $ 68,970 Stantec Curb 2,200 LF $ 25.00 $ 55,000 Stantec Spine Road $ 803,280 50' Spine Road Paving 24,275 SY $ 30.00 $ 728,250 Compusult/McGann Curb 8,827 LF $ 8.50 $ 75,030 Compusult/McGann Walks/Plaza/Trails $ 1,933,270 Concrete Sidewalk 301,624 SF $ 4.25 $ 1,281,902 Compusult/McGann AC Path 289,497 SF $ 2.25 $ 651,368 Compusult/McGann Earthwork& Infrastructure Subtotal $11,907,230 Contingency 15% $1,786,100 Total Earthwork & Infrastructure $13,693,330 Buildings (Tennis Center, RR/Concession/Ramadas) $ 1,561,000 Tennis Center 900 SF $ 150.00 $ 135,000 Stantec/McGann Restroom/Concession 3 EA $ 90,000.00 $ 270,000 Stantec/McGann Ramada 22 EA $ 24,000.00 $ 528,000 Stantec/McGann Group Ramada 3 EA $ 60,000.00 $ 180,000 Stantec/McGann Restroom 4 EA $112,000.00 $ 448,000 Stantec/McGann Maintenance Building/Yard $ 1,010,000 Yard 30,000 SF $ 3.50 $ 105,000 Compusult/McGann Office 3,000 SF $ 175.00 $ 525,000 Compusult/McGann Garage 10,000 SF $ 38.00 $ 380,000 Compusult/McGann Fields & Courts w/ Lighting $ 4,486,800 Baseball Field 2 EA $215,000.00 $ 430,000 Stantec/McGann Baseball Field Lighting 2 EA $175,000.00 $ 350,000 Hy-Lite Softball Field 6 EA $145,000.00 $ 870,000 Stantec/McGann Softball Field Lighting 6 EA $105,000.00 $ 630,000 Hy-Lite Tennis/Basketball 19 EA $ 36,000.00 $ 684,000 Stantec/McGann Tennis/Basketball Lighting 19 EA $ 18,000.00 $ 342,000 Hy-Lite Soccer Field 4 EA $115,000.00 $ 460,000 Stantec/McGann Soccer Field Lighting 4 EA $170,000.00 $ 680,000 Hy-Lite Volleyball Court 4 EA $ 9,000.00 $ 36,000 Stantec/McGann Tetherball 4 EA $ 1,200.00 $ 4,800 Stantec/McGann Playground $ 390,000 Fencing, Surfacing & Curbing 5 EA $ 18,000.00 $ 90,000 Stantec Play Structure 5 EA $ 60,000.00 $ 300,000 Stantec Site Amenities $ 820,800 Dog Park 1 EA $ 30,000.00 $ 30,000 Stantec Dog Obedience 1 EA $ 12,000.00 $ 12,000 Stantec Skate Park 1 EA $360,000.00 $ 360,000 Stantec BMX Park 1 EA $ 60,000.00 $ 60,000 Stantec Par Course Stations 20 EA $ 840.00 $ 16,800 Stantec Drinking Fountains 20 EA $ 1,800.00 $ 36,000 Stantec Picnic Tables 50 EA $ 960.00 $ 48,000 Stantec Barbecue Grills 25 EA $ 360.00 $ 9,000 Stantec Benches 75 EA $ 600.00 $ 45,000 Stantec Bicycle Racks 20 EA $ 1,200.00 $ 24,000 Stantec Signage 1 EA $180,000.00 $ 180,000 Stantec Landscape $ 740,495 Tree Salvage/Transplant 50 EA $ 1,200.00 $ 60,000 Stantec Cacti Salvage/Transplant 100 EA $ 240.00 $ 24,000 Stantec 36" Box Tree 100 EA $ 600.00 $ 60,000 Stantec 24" Box Tree 200 EA $ 360.00 $ 72,000 Stantec 15 Gal. Tree 500 EA $ 120.00 $ 60,000 Stantec 5 Gal. Shrub 750 EA $ 90.00 $ 67,500 Stantec Seed 10 AC $ 5,200.00 $ 52,000 Stantec Turf Grade (non-fields) 304,920 SF $ 0.06 $ 18,295 Stantec Turf Plant (non-fields) 304,920 SF $ 0.50 $ 152,460 Stantec Decomposed Granite 435,600 SF $ 0.40 $ 174,240 Stantec Irrigation $ 312,900 Meters & Backflow Preventers 1 EA $120,000.00 $ 120,000 Stantec Control System 1 EA $ 24,000.00 $ 24,000 Stantec Turf Irrigation (non-fields) 435,600 SF $ 0.25 $ 108,900 Stantec Drip Irrigation 1 EA $ 60,000.00 $ 60,000 Stantec Playfield Parking (Pavilion & Community Center Parking w/ Buildings) $ 624,775 Paving 26,239 SY $ 19.00 $ 498,541 Compusult/McGann Vertical Curb 14,851 LF $ 8.50 $ 126,234 Compusult/McGann Support Building 8,115 SF $ 175.00 $ 1,420,125 $ 1,420,125 Burns Wald-Hopkins Playfields, Courts & Parking Subtotal $11,366,895 Contingency 15% $1,705,000 Total Playfields, Courts & Parking $13,071,895 ATTACHMENT D DAVE BURNS MEMORANDUM COMMUNITY CENTER COST DETAIL bw t October 25,2007 MEMORANDUM From: Dave Burns,AIA LEED AP To: Ainsley Reeder RE: Oro Valley Naranja Town Site Project No. 0603 Filing Code 2.1 In response to our telephone conversation yesterday, we have reviewed our Design Report(3/7/07) and subsequent cost information to address your request for breaking out the square footage and construction cost numbers for the Community Center separately from the 500-seat Theater. Community Center: 105,806 Gross Square Feet (Design Report, Tab 3 3/7/07) $35,297,350 Construction Cost (Components of Cost Table 2/15/07) 500-seat Theater: 41,920 Gross Square Feet (Design Report, Tab 3 3/7/07) $13,726,790 Construction Cost (Components of Cost Table 2/15/07) This assumes that all other site work, utilities, furniture and equipment, fees, etc. are accounted for elsewhere. The Components of Cost data are about 6 months old now, so you should inflate these figures about 2% to cover the inflation to today's cost. Your assumption on costs is correct regarding efficiency of building the two components at the same time rather than phasing in one after the other. Cost impacts of building in phases include inflation, building and then replacing temporary walls, and increasing the systems (hvac, plumbing, electrical and structural) capacity in the first phase to anticipate the following phase. Building both together is less expensive. Dave cc: Central Project File David Wald-Hopkins Arthur Stables P:10603.0001Docs\Cost EstimatelReeder Memo 10.25.07.doc BURNS WALD-HOPKJNS ARCHITECTS 261 North Court Avenue Tucson,Arizona 85701 520.795.2705 Fax 520.795.6171 www.burnswald.com ....:....i''r::.Y-v::y..., ,..''y;.:JKY Sa1C /oY . .... :..:.:: .. ^Z . : : v !.. :Y. •� '.�+:. //-,YAc$�J'>�{$:: ...,h.AOwaXi• ;,Y -..:.: .... .::..- ., ..Y ^C ...in •.. .n. Gn -Jrw.J.. .. , -'-.. � Y. �S' .. ......:...... .....:::.::. ..r. Y♦.Y.a ...�.v M..:.Y/. ' f.. .9dao�.... .....'l K... .+7r F.S'' .......:::::........ ... .... ,..r...v �"hY rn♦ .Yf . .`CC,.. ...:...... �.t { ..�.� w F �>, .:IN :......r...•::,::•. :.�., ....... ..::..... ;....:.�.:....:. .._....... ,, r F to-�o t J. z .:k..F•...... } .�.,t r.. r.»..'{4 ••.. ..,., 75":.:n'.- :.:�.. ...- .N J 4 •ST yam, '¢ h:.n•::.v.v } i F•..../ :::: :n/..,.,.Tv„�,,v�. .... -<•:Jr - ':.: .:.:.V-:..'. / y3f.c:+y' �/.. a../JA✓.. ''SP-'" "a�.�� Y �/E .r ;E,,F-:i• ../.,::: .:yW"` ♦. 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F 76`f nc4:•;.♦:{::......... ,`:.13,, :.h'+"S ... ........ ..... :.:.........: ....:. ..... :::.1 r ,r .v 3.J...;;,,,,:,:,',43,,,-.,•:,,s4. ..............H,...,<>:,.:..--:...:a.:..;•,-:'.:'-. .a.v::+:: Community Center Oro Valley, Arizona Concept Range Estimate January 22, 2007 Total GSF 147,726 Total GSF 147,726 Total GSF 147,726 Summary of Project Costs Low Range High Range Proposed Building Building Building Building Building Building Cost Cost/SF Cost Cost/SF Cost Cost/SF 1. Substructure $960,219 $6.50 $2,289,753 $15.50 $2,142,027 $14.50 2. Superstructure $1,846,575 $12.50 $3,693,150 $25.00 $3,693,150 $25.00 3. Exterior Closure $2,363,616 $16.00 $5,909,040 $40.00 $5,909 040 $40.00 4. Roofing $664,767 $4.50 $1,107,945 $7.50 $1,034 082 $7.00 5. Interior Construction $812,493 $5.50 $1,772,712 $12.00 $1,551,123 $10.50 6. Interior Finishes $1,403,397 $9.50 $2,363,616 $16.00 $2,068,164 $14.00 7. Building Specialties ecialties $36,932 $0.25 $184,658 $1.25 $184,658 $1.25 8. Equipment $812,493 $5.50 $1,181,808 $8.00 $886,356 $6.00 9. Furnishings $0 $0.00 $110,795 $0.75 $36,932 $0.25 10. Special Construction $0 $0.00 $0 $0.00 $0 $0.00 11. Conveying Systems $0 $0.00 $295,452 $2.00 $162,499 $1.10 12. Plumbing $369,315 $2.50 $664,767 $4.50 $443,178 $3.00 13. Fire Protection $369,315 $2.50 $539,200 $3.65 $443,178 $3.00 14. H.V.A.C. $3,249,972 $22.00 $5,170,410 $35.00 $4,431,780 $30.00 15. Electrical $1,403,397 $9.50 $3,693,150 $25.00 $3,397 698 $23.00 A. Building Construction $14,292,491 $96.75 _$28,976,455 $196.15 _$26,383,864 $178.60 B. Sitework $1,214,900 $8.22 $5,795,300 $39.23 $3,957,600 $26.79 C. Subtotal $15,507,391 $104.97 $34,771,755 $235.38 _ $30,341,464 $205.39 D. Contingency 15.00% of Line C $2,326,100 $15.75 $5,215,800 $35.31 $4,551,200 $30.81 E. General Conditions 11.00% of Line C + D $1,961,700 $13.28 $4,398,600 $29.78 $3,838,200 $25.98 F. Contractor's Fee 6.00% of Line C+D+E $1,187,700 $8.04 $2,663,200 $18.03 $2,323,900 $15.73 G. Bonds & Insurance 3.00% of Line C+D+E+F $629,500 $4.26 $1,411,500 $9.55 $1,231,600 $8.34 H. Subtotal $21,612,391 $146.30 _ $48,460,855 $328.05 $42,286,364 $286.25 I. Taxes 4.27% of Line H $923,000 $6.25 $2,069,500 $14.01 $1,805,800 $12.22 J. Subtotal w/o Escalation $22,535,391 $152.55 $50,530,355 $342.05 _$44,092,164 $298.47 Exclusions: Escalation Basic Building System Assumptions: Substructure- Shallow foundations (spread footings & slab on grade, no hard rock or dewatering is assumed for both high and low ranges. The low includes short stem walls and no retaining situations or basement wall. Superstructure- Steel structure with concrete and metal deck second floor and metal deck at the roof. The low range includes single story structure while the high range is multiple stories. Exterior Closure-The low range would include EIFS on steel studs, exterior sheeting and batt insulation with minimal glazing.The high range includes masonry and tile or stone accents with more higher performance glazing systems. Additionally, the higher range building will have more fenestration and perhaps colonnades. Roofing -The low range will include low slope roofs with BU or single ply membrane roofing. The higher range will include pitched roofs with standing seam or tile roofs and skylights and or clerestories. Interior Construction - In both scenarios typical walls will be gypsum wallboard on metal studs. Interior doors will typically be hollow metal frames with solid core wood doors and commercial grade hardware. The high range includes more partitions and therefore more doors also. Interior Finishes-Wall finishes will be painted gypsum wall board. Ceiling finishes will be 2'x4' acoustic ceiling tiles at offices and support spaces, 2'x2' tegular ACT at corridors and public spaces and gypsum board ceilings at restrooms. High range ceilings will have more soffiting and special ceilings finishes. Floor finishes will be carpet and VCT at offices and conference rooms. Floors will be hard (ceramic or quarry tile) at the food areas and restrooms. Recreation areas will have wood or synthetic sports flooring. High range costs will have higher grades of these materials. Specialties- Includes an allowance for marker and tack boards, bath accessories, toilet partitions, etc. Equipment- Includes athletic equipment, stage and kitchen equipment. Bikes, cardio machines, etc. by others. Furnishings - Blinds at windows and entry mats included in high range. All other furnishings are in an F,F & E budget. Special Construction - No special construction in this project. Conveyance-Two new two stop passenger elevators are part of this project. Mechanical - New wet sprinkler fire protection system. Plumbing varies depending on the level of quality. HVAC to be provided by central system with air handlers, VAV boxes and digital controls. Low range would include rooftop package units. New exhaust and hoods will be provided at kitchen area. Electrical - Power and lighting will vary depending on level of quality. Parabolic lens will be provided at office and computer areas. A fire alarm system is included but only rough-in for special systems is included in the low range. Site Development- Includes earthwork, hardscaping, landscaping, paved parking, site furnishings and site utilities. ATTACHMENT E DEBT SERVICE SCHEDULES FOR $80 MILLION AND $ 100 MILLION BONDS TOWN OF ORO VALLEY, ARIZONA $80,000,000 NARANJA TOWNSITE PROJECT Estimated Debt Service and Impact on the Secondary Tax Rate (1) (2) (3) (4) (5) (6) (7) (8) $40,000,000 $40,000,000 Series 2009 Series 2011 Projected Dated: March 1,2009 1 Dated: March 1,2011 Secondary Estimated Estimated Fiscal Assessed Estimated Estimated Debt Secondary Year Valuation(a) Principal Interest(b) Principal Interest(b) Service Tax Rate(c) 2007/08 $582,838,439 2008/09 657,306,663 2009/10 741,258,069 $280,000 $2,666,667 $2,946,667 $0.40 2010/11 835,895,799 960,000 1,986,000 2,946,000 0.35 2011/12 942,574,990 1,005,000 1,938,000 $280,000 $2,666,667 5,889,667 0.62 2012/13 1,069,934,264 1,055,000 1,887,750 960,000 1,986,000 5,888,750 0.55 2013/14 1,098,847,837 1,110,000 1,835,000 1,005,000 1,938,000 5,888,000 0.54 2014/15 1,128,542,761 1,165,000 1,779,500 1,055,000 1,887,750 5,887,250 0.52 2015/16 1,159,040,151 1,225,000 1,721,250 1,110,000 1,835,000 5,891,250 0.51 2016/17 1,190,361,693 1,285,000 1,660,000 1,165,000 1,779,500 5,889,500 0.49 2017/18 1,222,529,659 1,350,000 1,595,750 1,225,000 1,721,250 5,892,000 0.48 2018/19 1,255,566,922 1,415,000 1,528,250 1,285,000 1,660,000 5,888,250 0.47 2019/20 1,289,496,974 1,485,000 1,457,500 1,350,000 1,595,750 5,888,250 0.46 2020/21 1,324,343,942 1,560,000 1,383,250 1,415,000 1,528,250 5,886,500 0.44 2021/22 1,360,132,602 1,640,000 1,305,250 1,485,000 1,457,500 5,887,750 0.43 2022/23 1,396,888,405 1,720,000 1,223,250 1,560,000 1,383,250 5,886,500 0.42 2023/24 1,434,637,485 1,810,000 1,137,250 1,640,000 1,305,250 5,892,500 0.41 2024/25 1,473,406,684 1,900,000 1,046,750 1,720,000 1,223,250 5,890,000 0.40 2025/26 1,513,223,571 1,995,000 951,750 1,810,000 1,137,250 5,894,000 0.39 2026/27 1,554,116,456 2,095,000 852,000 1,900,000 1,046,750 5,893,750 0.38 2027/28 1,596,114,418 2,195,000 747,250 1,995,000 951,750 5,889,000 0.37 2028/29 1,639,247,320 2,305,000 637,500 2,095,000 852,000 5,889,500 0.36 2029/30 1,683,545,833 2,425,000 522,250 2,195,000 747,250 5,889,500 0.35 2030/31 1,729,041,454 2,545,000 401,000 2,305,000 637,500 5,888,500 0.34 2031/32 1,775,766,535 2,670,000 273,750 2,425,000 522,250 5,891,000 0.33 2032/33 1,823,754,301 2,805,000 140,250 2,545,000 401,000 5,891,250 0.32 2033/34 1,873,038,872 2,670,000 273,750 2,943,750 0.16 2034/35 1,923,655,295 2,805,000 140,250 2,945,250 0.15 $40,000,000 $40,000,000 Average: 0.4098 (a) 2007/08 is actual. 2008/09 through 2012/13 assume 13.51%and subsequent years assume 2.70%growth. The Secondary Assessed Valuation is adjusted to reflect the statutory class 1 assessment ratio phase down from 25%to 20%. (b) Interest is estimated at 5.00%. . (c) Secondary tax rates are per$100 of assessed valuation. Prepared by: Stone&Youngberg LLC 10/25/2007 TOWN OF ORO VALLEY, ARIZONA AVERAGE ANNUAL TAX RATE PER$100 OF SECONDARY ASSESSED VALUATION: $0.4098 OWNER OCCUPIED RESIDENTIAL PROPERTY (Assessed at 10%) Secondary Estimated Assessor's Full Assessed Average Annual Estimated Average Cash Value(a) Value Cost(b) Monthly Cost(b) $249,370 $24,937 (c) $102.19 $8.52 100,000 10,000 40.98 3.42 250,000 25,000 102.45 8.54 The tax impact over the term of the bonds on an owner-occupied residence valued by the County Assessor at$250,000 is estimated to be$102.45 per year for 26 years or$2,663.70 total cost. (d) COMMERCIAL AND INDUSTRIAL PROPERTY (Assessed at 23%)(e) Secondary Estimated Assessor's Full Assessed Average Annual Estimated Average Cash Value(a) Value Cost(b) Monthly Cost(b) $1,270,813 $292,287 (c) $1,197.81 $99.82 100,000 23,000 94.26 7.86 2,500,000 575,000 2,356.39 196.37 The tax impact over the term of the bonds on a commercial property valued by the County Assessor at$2,500,000 is estimated to be$2,356.39 per year for 26 years or$61,266.14 total cost. (d) (a) Assessor's full cash value is the value of your property as it appears on your tax bill and does not necessarily represent the market value. (b) Cost based on the average projected tax rate over the life of the bond issues and a number of other financing assumptions which are subject to change. (c) Estimated average value of owner-occupied residential properties,commercial and industrial properties or agricultural and vacant properties,as applicable,within the District as provided by the Arizona Department of Revenue. (d) Assumes the assessed valuation of the property remains constant over the term of the bonds. (e) The assessment ratio is phasing down from 25%in 2005-2006 to 20%in 2011-2012 and thereafter. Prepared by:Stone&Youngberg LLC 10/25/2007 TOWN OF ORO VALLEY, ARIZONA $100,000,000 NARANJA TOWNSITE PROJECT Estimated Debt Service and Impact on the Secondary Tax Rate (1) (2) (3) (4) (5) (6) (7) (8) $50,000,000 $50,000,000 Series 2009 Series 2011 Projected Dated: March 1,2009 I Dated: March 17.2_91L OdGOG hYJOtAf'.Wi63:.}%�:. b6Gf41i36C.W(•••• •••••:•. •••••:. ••^••. Secondary Estimated Estimated Fiscal Assessed Estimated Estimated Debt Secondary Year Valuation(a) Principal Interest(b) Principal Interest(b) Service Tax Rate(c) 2007/08 $582,838,439 2008/09 657,306,663 2009/10 741,258,069 $350,000 $3,333,333 $3,683,333 $0.50 2010/11 835,895,799 1,200,000 2,482,500 3,682,500 0.44 2011/12 942,574,990 1,260,000 2,422,500 $350,000 $3,333,333 7,365,833 0.78 2012/13 1,069,934,264 1,320,000 2,359,500 1,200,000 2,482,500 7,362,000 0.69 2013/14 1,123,430,978 1,390,000 2,293,500 1,260,000 2,422,500 7,366,000 0.66 2014/15 1,179,602,526 1,455,000 2,224,000 1,320,000 2,359,500 7,358,500 0.62 2015/16 1,238,582,653 1,530,000 2,151,250 1,390,000 2,293,500 7,364,750 0.59 2016/17 1,300,511,785 1,605,000 2,074,750 1,455,000 2,224,000 7,358,750 0.57 2017/18 1,365,537,375 1,685,000 1,994,500 1,530,000 2,151,250 7,360,750 0.54 2018/19 1,433,814,243 1,770,000 1,910,250 1,605,000 2,074,750 7,360,000 0.51 2019/20 1,505,504,956 1,860,000 1,821,750 1,685,000 1,994,500 7,361,250 0.49 2020/21 1,580,780,203 1,950,000 1,728,750 1,770,000 1,910,250 7,359,000 0.47 2021/22 1,659,819,213 2,050,000 1,631,250 1,860,000 1,821,750 7,363,000 0.44 2022/23 1,742,810,174 2,150,000 1,528,750 1,950,000 1,728,750 7,357,500 0.42 2023/24 1,829,950,683 2,260,000 1,421,250 2,050,000 1,631,250 7,362,500 0.40 2024/25 1,921,448,217 2,375,000 1,308,250 2,150,000 1,528,750 7,362,000 0.38 2025/26 2,017,520,628 2,490,000 1,189,500 2,260,000 1,421,250 7,360,750 0.36 2026/27 2,118,396,659 2,615,000 1,065,000 2,375,000 1,308,250 7,363,250 0.35 2027/28 2,224,316,492 2,745,000 934,250 2,490,000 1,189,500 7,358,750 0.33 2028/29 2,335,532,317 2,885,000 797,000 2,615,000 1,065,000 7,362,000 0.32 2029/30 2,452,308,933 3,030,000 652,750 2,745,000 934,250 7,362,000 0.30 2030/31 2,574,924,379 3,180,000 501,250 2,885,000 797,000 7,363,250 0.29 2031/32 2,703,670,598 3,340,000 342,250 3,030,000 652,750 7,365,000 0.27 2032/33 2,838,854,128 3,505,000 175,250 3,180,000 501,250 7,361,500 0.26 2033/34 2,980,796,835 3,340,000 342,250 3,682,250 0.12 2034/35 3,129,836,676 3,505,000 175,250 3,680,250 0.12 $50,000,000 $50,000,000 Average: 0.4316 (a) 2007/08 is actual. 2008/09 through 2012/13 assume 13.51%and subsequent years assume 5.00%growth. The Secondary Assessed Valuation is adjusted to reflect the statutory class 1 assessment ratio phase down from 25%to 20%. (b) Interest is estimated at 5.00%. (c) Secondary tax rates are per$100 of assessed valuation. Prepared by: Stone&Youngberg LLC 10/25/2007 TOWN OF ORO VALLEY, ARIZONA AVERAGE ANNUAL TAX RATE PER$100 OF SECONDARY ASSESSED VALUATION: $0.4316 OWNER OCCUPIED RESIDENTIAL PROPERTY (Assessed at 10%) Secondary Estimated Assessor's Full Assessed Average Annual Estimated Average Cash Value(a) Value Cost(b) Monthly Cost(b) $249,370 $24,937 (c) $107.64 $8.97 100,000 10,000 43.16 3.60 250,000 25,000 107.91 8.99 The tax impact over the term of the bonds on an owner-occupied residence valued by the County Assessor at$250,000 is estimated to be$107.91 per year for 26 years or$2,805.66 total cost. (d) COMMERCIAL AND INDUSTRIAL PROPERTY (Assessed at 23%)(e) Secondary Estimated Assessor's Full Assessed Average Annual Estimated Average Cash Value(a) Value Cost(b) Monthly Cost(b) $1,270,813 $292,287 (c) $1,261.61 $105.13 100,000 23,000 99.28 8.27 2,500,000 575,000 2,481.89 206.82 The tax impact over the term of the bonds on a commercial property valued by the County Assessor at$2,500,000 is estimated to be$2,481.89 per year for 26 years or$64,529.14 total cost.(d) (a) Assessor's full cash value is the value of your property as it appears on your tax bill and does not necessarily represent the market value. (b) Cost based on the average projected tax rate over the life of the bond issues and a number of other financing assumptions which are subject to change. (c) Estimated average value of owner-occupied residential properties,commercial and industrial properties or agricultural and vacant properties,as applicable,within the District as provided by the Arizona Department of Revenue. (d) Assumes the assessed valuation of the property remains constant over the term of the bonds. (e) The assessment ratio is phasing down from 25%in 2005-2006 to 20%in 2011-2012 and thereafter. Prepared by:Stone&Youngberg LLC 10/25/2007