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HomeMy WebLinkAboutPackets - Council Packets (1025)Council Meeting Regular Session March 6, 2019 1 Town Council Meeting Announcements 2 Upcoming Meetings 3 4 5 Fiscal Year 2018/19 Financial Update Through Dec. 2018 March 6, 2019 -We place our mid-year financial update on reg agenda this same time every year to give an update on our major funds as we begin next year’s budget process -Financial position is strong and stable, no concerns in any of our funds, all good news to report tonight 6 FY 18/19 BUDGET BY FUND AS % OF TOTAL BUDGET This chart shows the FY 17/18 budget by fund as a % of the total budget. The funds in color are what I’m covering tonight. General Fund at 36%, Stormwater Utility Fund at 1%, Highway Fund at 4%, Bed Tax Fund at 1%, Comm Ctr Fund at 5% and the Water Utility Fund at 19%. Together these funds comprise about two-thirds of the total adopted budget of $128.6M. This year’s update no different from past year’s updates through mid-year in that there are some areas that are trending to come in over budget and some areas trending to come in slightly under budget, so I will cover those and discuss the reasons why these areas are trending as they are. 7 GENERAL FUND REVENUES Starting with General Fund revenues, the next two slides highlight the major revenue sources, how they are trending compared to budget, what the estimated variance is to budget and the reason for the variance. This slide focuses on the Local Sales Tax revenue category in the General fund. Local sales taxes make up about 47%, or $17M, of the General Fund’s $36M budget, so this slide highlights several of the main categories of sales tax that we collect in the General Fund. At the top, construction sales taxes (collect a 4% construction sales tax) - budgeted just under $4.4M and estimate that actual collections will end the year just under $5.2 million, so about $800K over, due primarily to residential activity – 339 SFR permits issued in 16/17. Steady commercial activity. Utility – collect a 4% utility sales tax and budgeted $2.9M. This category is trending about $200K above budget, and this is likely due to population growth (apartments, single family homes); 2017 TEP rate increase; weather (dry & warm – increased water use and possibly electricity as well) Retail sales – collect a 2.5% retail sales tax; 2% portion collected in GF, while the 0.5% portion is dedicated to the CC Fund. Budgeted $6.8M for the 2% portion in the GF, trending on budget. Restaurant – similar to retail, collect a 2.5% tax on rest/bar sales, with 2% portion in the GF. Budgeted about $1.8M in this category in the GF, also trending on budget at this time. Other Local Sales Tax comprises our smaller categories that we collect on; budgeted about $700K in this category for the GF, trending slightly over budget, about $65K, due to collections primarily in our Accommodation/Hotel category (separate from and in addition to our 6% bed tax, this would be GF’s 2% of the 2.5% we collect in this category), due to continued improvement we’re seeing in the hospitality sector of the economy. Cable Franchise Fee – also included in the local sales tax category, we collect a 5% cable franchise fee from Comcast Cable, budgeted $620,000, trending slightly above budget (about $35K) for year-end due to the growth in customer base within the Town. Overall in the Local Sales Tax category for the GF, it is estimated that we will come in over budget by about $1.1 million based on these observed trends. 8 GENERAL FUND REVENUES (continued) For Licenses & Permits – budgeted $2.1M and estimate that we will come in about $378,000 over that amount at YE, due to both commercial and residential construction activity – building and grading permits. Federal & State Grants – this category is expected to come in under budget by about $134,000 at YE, due mainly to capital-related capacity for state grants for P&R and Transit that we won’t be utilizing. These are offset w/corresponding reductions in anticipated grant expenditures w/in those departments. Other Intergovernmental – estimating come in under budget by about $113K. Due to trends in our transit reimbursements through our IGA with the RTA (ridership down a bit) and capacity we had included for a potential school resource officer at Leman Academy that will not be utilized (and that is offset with personnel savings in the Police Dept since we did not bring that position on board). State Shared Revenues – make up about 32% of General Fund, budgeted $11.6M and estimate coming in slightly under that amount (about $96K), based on figures from the League of AZ Cities and Towns with state income tax and current trends we’re observing in vehicle license taxes. Charges for Services – budgeted $2.2M, and estimate coming in slightly under by about $33,000 at YE due primarily to trends with zoning and subdivision fees (saw bit of boost last few years; those have now transitioned to permitting and construction phases). Overall, for GF Revenues, we budgeted $36.3M, and estimate coming in over that amount by about $1.1 million - reflection of development and construction activity w/in the town. 9 GENERAL FUND EXPENDITURES Total expenditures estimated under budget at year-end by 3.0%, or $1,250,000 Personnel savings = $590,000 No transfer out to Highway Fund = $328,000 Department O&M savings = $360,000 Estimated year-end fund balance = $14,370,959 34.2% of adopted expenditures Total department expenditures in GF are budgeted at $36.7M this year. Overall, we estimate coming in under budget by about $568,000 or 1.5% due to personnel savings ($274K), no tfr out the HW Fund $275K (new Pima County property tax for roads covering the residential spring surface treatments) and capital purchases $143K that were primarily tied to grant funded capacity. We’re expecting an O&M overage of about $124K due to outside plan review for several construction projects. Those expenditures are in Comm Dev & Public Works and are more than offset with the associated plan review fee revenues – with exception of that, all departments are expected to come in on or under budgeted amounts. We’ve captured the approved use of contingency reserves in the amount of $75,000 for the Regional Municipalities Veteran’s Treatment Court that was approved July 5 of last year. And overall, in the General Fund, we estimate an increase in our fund balance of nearly $1.2 million to approximately $14.6M or almost 40% of adopted expenditures. 10 Revenues HIGHWAY FUND State shared highway user (HURF) revenues estimated over budget by $328,000 due to one-time statutory allocation and Department of Public Safety funding sweep reductions General Fund subsidy transfer reduced by $328,000 as result of additional HURF funding ($222,000 as opposed to $550,000) Expenditures Estimated under budget at year-end by 7.1%, or $329,000, Assumed rollover of the Tangerine/1st Ave. Safety CIP project ($250,000) Personnel savings $65,000 and O&M savings $14,000 Estimated year-end fund balance = $720,000 Highway Fund: Revenues: Estimated under budget by about 7%, or $279K – really due just to the transfer from the GF of $275K mentioned earlier (new Pima County property tax for roads will cover the residential spring surface treatments) Expenditures: Estimated under budget by 12%, or nearly $600K, again due to the Pima County property tax for roads for the spring residential surface treatments Overall estimated year-end fund balance about $550K 11 COMMUNITY CENTER FUND Revenues Contracted revenues estimated under budget by 0.7%, or $22,000, based on updated Troon forecast Town operating revenues estimated under budget by 11.9%, or $135,000, due to tennis revenues (offset with expenditures) Half-cent sales tax revenues estimated over budget by 1.5%, or $35,000, due mainly to restaurant/bar collections Expenditures Contracted expenditures estimated under budget by 0.5%, or $24,000, based on updated Troon forecast Town operating expenditures estimated under budget by 17.1%, or $215,000 due to contract payments budgeted for tennis operations Estimated surplus of $205,000 for current year with an ending fund balance of $134,000 Contracted revenues – consisting of golf, food and beverage and tennis operations managed by Troon at the Community Center. – estimated over budget by 2.1% or $70K based on Troon’s updated forecast – due primarily due to golf fee revenue. Town operating revenues from the recreation and fitness operations at the Community Center…over budget by almost 16% ($122K) due primarily to member dues (classic memberships) Half cent sales tax on budget Expenditures – Contracted – over budget 2% ($106K) due to increased water use as result of warm, dry weather Operating – over budget by about $36K due to estimated personnel to meet facility’s programming needs. Will continue to monitor and adjust future budget capacity accordingly. Note overage is more than offset with anticipated operating revenues. Overall, we’re projecting an estimated surplus of $41,400 for the current fiscal year and an ending fund balance of negative $55,800. Our ending fund balance last fiscal year was about $97K, so improvement and moving in the direction we want to see. 12 Water Utility Fund WATER UTILITY FUND and STORMWATER UTILITY FUND Revenues estimated on budget at this time Expenses estimated under budget by $890,000, or 4.3%, due largely to CIP project cost savings Stormwater Utility Fund Revenues estimated under budget by $2,000,000 due to grant-funded Catalina Ridge channel repair CIP project Expenses estimated under budget by $2,050,000 due to Catalina Ridge project and $50,000 personnel savings Bed Tax and Stormwater Utility – Bed Tax Fund – revenues estimated over budget by nearly $150K, continued growth and improvement in our bed tax revenues. Expenditures slightly over due to tennis court improvements we’ve done this year at the Community Center. Estimated YE fund balance $235K. Stormwater – revenues estimated just over budget, by about $3K. Expenses estimated under budget by $50K due to anticipated savings in capital infrastructure projects, due to being able to utilize in-house staff. 13 Questions? 14 15 Oro Valley Town Centre rezoning (PAD Amendment) Town Council March 6, 2019 16 Good evening… Purpose Proposed rezoning to Area 4 Applicant’s proposal Area 4 Tentative Development Plan Public Participation and Review process Planning and Zoning Commission Our Purpose is to consider a rezoning to the OVTC PAD Background on the PAD Detail the applicant’s proposal, including what has changed in Area 3 per the applicant’s request Discuss the public participation effort Review process recommendation 17 Oracle Road Pusch View Lane 1st Avenue El Con Patio Homes La Reserve Subject Property Area 4 Subject property located at… 18 Background – Oro Valley Town Centre PAD Original Vision in 2002 2012 PAD Amendment Total area: ~141 - acres Area 1: Commercial (Not a part) Area 2: Commercial (Not a part) Area 3: Mixed – Use (Not a part) Multi-family (Apartments) Commercial Office Hotel Area 4: Residential Single-family Open space 3 2 4 1 OVTC PAD established in 2002 - PAD Amendment in 2012 4 “Areas” 1 – Commercial 2 – Commercial 3 – Mixed use 4 – Residential (per the applicant’s request, the application only includes the requests related to Area 4 19 Background – Existing Entitlements Area 4 65 lots 15,000 sf minimum 1 & 2-story homes Max 25 feet 1-story limitations 75% open space 1 access point Oracle Rd. El Conquistador Patio Homes Existing entitlement: (what is this? Does it mean?) Existing right to build (if this design came in tomorrow, couldn’t say no) Design: - 65 lots - 15,000 minimum lot size - max building height 25 ft - 1 and 2 story homes (homes with stars are 1 story) 65% open space 1 point of ingress/egress 20 Applicant’s Request Area 4 Lots: Increase from 65 to 82 Reduce minimum lot size from 15,000 sf to 6,000 sf and 7,200 sf Utilize a similar development footprint Enhanced buffer yards Preserve 70% as open space Realign access road Oracle Rd. Oracle Rd. Request is for: - Lots from 65 – 82 - Lot size from 15,000 to 6,000 --- (PH homes range from 2500 -5000) - the existing topography is what drives the overall design - Similar footprint as the exiting entitlement - preserves approximately 60% as open space - Realign access road 21 Area 4 – Existing vs. Proposed Existing Proposed Oracle Rd. Oracle Rd. Again, Similar footprint The key question is …considering there is an existing entitlement, does the proposed design represent an improvement? 22 Rezoning Request - Review Tools Your Voice, Our Future General Plan – vision, guiding principles, goals and policies Zoning Code Environmental Conservation: Hillsides and Open Space Views Neighborhood Compatibility 23 Environment: Existing vs. Proposed Grading Areas - New graded area - No longer graded area 24 Environment: Extent of Grading 25 Environment: Grading Mitigation 26 Environment: Open Space and Wildlife Corridors Oracle Road 2 standard meetings and multiple informal meetings with neighbors in PH Lots are larger than those in El Con Increased the ultimate buffer from the PL Shifted lots to minimize view impacts Limited all to 1 story Stoney Canyon – 1080 (existing); 1200 (proposed) Rams Pass – 740 (existing); 800 (proposed) 27 Views: Oracle Road Scenic Corridor Oracle Rd. Minimally Visible Visible Request is for: - Lots from 65 – 82 - Lot size from 15,000 to 6,000 --- (PH homes range from 2500 -5000) - the existing topography is what drives the overall design - Similar footprint as the exiting entitlement - preserves approximately 60% as open space - Realign access road 28 Views: Proximity of Lots to Oracle Road ~260 ft Existing Proposed Oracle Road ~320 ft 29 Neighborhood Compatibility Buffer Yards Single-story Strategic placement of homes Road alignment 30 Planning and Zoning Commission Neighborhood meetings: 2 formal 6 informal + site visits Planning and Zoning Commission Density Viewsheds Traffic Environment 31 Summary and Recommendation Similar footprint as existing entitlement Larger lot sizes than nearest neighborhood Neighborhood resolutions 1 story homes Lot placement Enhanced buffer yards Road realignment Planning and Zoning Commission recommends approval Summary: - similar footprint - larger lot sizes than nearest neighborhood - minimizes visual impact - compromises with neighbors - 1 story - lot placement -buffer yards Staff recommends approval 32 33 OVTC PAD AMENDMENT REQUEST AREA 4 APPLICANT PRESENTATION TO TOWN COUNCIL MARCH 6, 2019 34 CURRENT SITE PLAN 35 36 OPEN SPACE AND GRADING 37 38 39 40 41 42 TRANSITIONAL BUFFERING 43 44 VIEW PROTECTION AND NOISE ISSUES 45 46 RECREATION AREA CONCEPT 47 48 LOT SIZE COMPARISON EXHIBIT AND COMPATIBILITY WITH SURROUNDING DEVELOPMENT 49 50 WILDLIFE CONNECTIVITY 51 52 COMMUNITY OUTREACH 53 87 LOT SITE PLAN SHOWN AT FIRST NEIGHBORHOOD MEETING IN APRIL 2018 54 55 SITE PLAN SHOWN AT SECOND NEIGHBORHOOD MEETING IN NOVEMBER 2018 56 57 CURRENT SITE PLAN 58 59 SITE PLAN COMPARISON 60 61 CURRENT SITE PLAN 62 63 EXISTING SITE PLAN 64 65 66         67 Proposed 21 Lot Residential Subdivision Near the northeast corner of Lambert Lane and Shore Cliff Drive Town Council March 6, 2019 68 Good evening… Purpose Conceptual Site and Landscape Plan 21 lot development Proposed fee in-lieu of a recreation area Conforms to existing zoning standards Planning and Zoning Commission recommended approval 69 Naranja Drive First Ave Lambert Lane Pusch Ridge Vistas River’s Edge II River’s Edge I Cañada Del Oro Estates River’s Edge Shore Cliff Dr. 70 Existing Zoning Single-family housing is a permitted use Building height: 24’, two stories Minimum lot size: 6,000 sf allowed 6,559 sf proposed 71 Conceptual Site and Landscape Plan Lambert Lane Shore Cliff Drive 72 Proposed In-Lieu Fee for Rec Area Factors for consideration: Approximately ½ mile from Riverfront Park Connected to Riverfront Park by sidewalks and multi-use path Smaller subdivision Required Rec Area: 5% of land area = .32 acres 1 passive and 1 active amenity Proposed fee: $32,678 Lambert Lane Riverfront Park 73 Public Participation Two neighborhood meetings held Planning and Zoning Commission Topics discussed: Traffic and drainage View impacts 74 Public Participation 1 240’ 120’ View Impacts 75 Summary and Recommendation Applicant’s request meets the Design Principles and Design Standards of the Zoning Code Planning and Zoning Commission recommended approval 76 77 Rivers Edge Drainage Exhibit 78 NOTICE OF INTENT TO INCREASE WATER RATES Peter A. Abraham, P.E. March 6, 2019 79 Adoption of NOI is pursuant to A.R.S. § 9-511.01 Notice of Intent to Increase Water Rates Begins formal process to increase water rates - Adoption of NOI does not increase or modify water rates Establishes the maximum amount rates can be increased Establishes a public hearing date for May 15, 2019 Directs Town Clerk to publish the resolution 20 days prior to public hearing Makes the 2019 Water Rates Analysis Report available for public review - Placed in Town Clerk’s office - Placed on Water Utility’s website - Placed in Water Utility’s lobby 80 Schedule 01/14/19 Commission made a recommendation on water rates 03/06/19 Present Notice of Intent to increase rates to Town Council 03/07/19 Publish public hearing date on Town website – 60 day notice 04/19/19 Publish Notice of Intent in newspaper – 20 day notice 05/15/19 Town Council to hold public hearing on proposed rate increase 06/15/19 New rates become effective – 30 days after adoption 07/01/19 Begin billing new rates 81 Notice of Intent to Increase Water Rates Questions? 82