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AGENDA
ORO VALLEY TOWN COUNCIL
REGULAR SESSION
MAY 15, 2019
ORO VALLEY COUNCIL CHAMBERS
11000 N. LA CAÑADA DRIVE
Executive Sessions – Upon a vote of the majority of the Town Council, the Council may enter into Executive
Sessions pursuant to Arizona Revised Statutes §38-431.03 (A)(3) to obtain legal advice on matters listed on the
Agenda.
REGULAR SESSION AT OR AFTER 6:00 PM
CALL TO ORDER
ROLL CALL
PLEDGE OF ALLEGIANCE
UPCOMING MEETING ANNOUNCEMENTS
COUNCIL REPORTS
TOWN MANAGER'S REPORT
The Mayor and Council may consider and/or take action on the items listed below:
ORDER OF BUSINESS: MAYOR WILL REVIEW THE ORDER OF THE MEETING
INFORMATIONAL ITEMS
CALL TO AUDIENCE – At this time, any member of the public is allowed to address the Mayor and Town Council
on any issue not listed on today’s agenda. Pursuant to the Arizona Open Meeting Law, individual Council
Members may ask Town Staff to review the matter, ask that the matter be placed on a future agenda, or respond to
criticism made by speakers. However, the Mayor and Council may not discuss or take legal action on matters
raised during “Call to Audience.” In order to speak during “Call to Audience” please specify what you wish to
discuss when completing the blue speaker card.
PRESENTATIONS
1.Proclamation - Kids to Parks Day
2.Proclamation - National Public Works Week
3.Presentation and possible discussion of the Town's Fiscal Year 2018/19 Financial Update
through March 2019
CONSENT AGENDA
(Consideration and/or possible action)
A.Minutes - January 11-12, April 24 and May 1, 2019
B.Resolution No. (R)19-18, approving the Agenda Committee assignment for the period of June 1,
2019, to August 31, 2019
C.Resolution No. (R)19-19, request for granting an easement to Tucson Electric Power for the
installation maintenance and operation of electrical equipment for the new Police Department
Substation and Evidence Facility, located at 500 W. Magee Rd.
D.Resolution No. (R)19-20, authorizing and approving an amendment to the Cooperative
Intergovernmental Agreement between the Town of Oro Valley and Pima County for the
Community Development Block Grant Program and Home Investment Partnerships Program
E.Request for approval regarding Conceptual Architecture for the expansion of Pusch Ridge
Christian Academy, including a new building and addition of a modular building, located east of
Oracle Road between Calle Concordia and Linda Vista Boulevard
REGULAR AGENDA
1.PUBLIC HEARING: ORDINANCE NO. (O)19-04, DISCUSSION AND POSSIBLE ACTION REGARDING A
PROPOSED ZONING AMENDMENT TO THE ORO VALLEY TOWN CENTRE PLANNED AREA
DEVELOPMENT, LOCATED NEAR THE NORTHEAST CORNER OF ORACLE ROAD AND PUSCH
VIEW LANE
2.PUBLIC HEARING: RESOLUTION NO. (R)19-21, AUTHORIZING AND APPROVING AN INCREASE IN
WATER RATES FOR THE TOWN OF ORO VALLEY WATER UTILITY
3.PUBLIC HEARING: RESOLUTION NO. (R)19-22, ADOPTION OF THE TENTATIVE BUDGET FOR FY
2019/20 AND SETTING THE LOCAL ALTERNATIVE EXPENDITURE LIMITATION FOR FY 2019/20
FUTURE AGENDA ITEMS (The Council may bring forth general topics for future meeting agendas. Council may
not discuss, deliberate or take any action on the topics presented pursuant to ARS 38-431.02H)
CALL TO AUDIENCE – At this time, any member of the public is allowed to address the Mayor and Town Council
on any issue not listed on today’s agenda. Pursuant to the Arizona Open Meeting Law, individual Council
Members may ask Town Staff to review the matter, ask that the matter be placed on a future agenda, or respond to
criticism made by speakers. However, the Mayor and Council may not discuss or take legal action on matters
raised during “Call to Audience.” In order to speak during “Call to Audience” please specify what you wish to
discuss when completing the blue speaker card.
EXECUTIVE SESSION - Pursuant to ARS 38-431.03(A)(3), (A)(4) and (A)(7) for legal advice with the Town
attorneys, discussion and consultation with those attorneys and designated Town representatives, and possible
instruction to those attorneys and designated representatives about the agreements related to the Town owned golf
courses and tennis facilities
RESUME REGULAR SESSION
ADJOURNMENT
The Mayor and Council may, at the discretion of the meeting chairperson, discuss any Agenda item.
POSTED: 5/8/19 at 5:00 p.m. by pp
POSTED: 5/8/19 at 5:00 p.m. by pp
When possible, a packet of agenda materials as listed above is available for public inspection at least 24 hours prior
to the Council meeting in the office of the Town Clerk between the hours of 8:00 a.m. – 5:00p.m.
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 least five days prior to the Council meeting at
229-4700.
INSTRUCTIONS TO SPEAKERS
Members of the public have the right to speak during any posted public hearing. However, those items not
listed as a public hearing are for consideration and action by the Town Council during the course of their
business meeting. Members of the public may be allowed to speak on these topics at the discretion of the
Chair.
If you wish to address the Town Council on any item(s) on this agenda, please complete a speaker card located on
the Agenda table at the back of the room and give it to the Town Clerk. Please indicate on the speaker card
which item number and topic you wish to speak on, or if you wish to speak during “Call to Audience”,
please specify what you wish to discuss when completing the blue speaker card.
Please step forward to the podium when the Mayor announces the item(s) on the agenda which you are interested
in addressing.
1. For the record, please state your name and whether or not you are a Town resident.
2. Speak only on the issue currently being discussed by Council. Please organize your speech, you will only be
allowed to address the Council once regarding the topic being discussed.
3. Please limit your comments to 3 minutes.
4. During “Call to Audience” you may address the Council on any issue you wish.
5. Any member of the public speaking must speak in a courteous and respectful manner to those present.
Thank you for your cooperation.
Town Council Regular Session 1.
Meeting Date:05/15/2019
Proclamation - Kids to Parks Day
Information
Subject
Proclamation - Kids to Parks Day
Summary
Attachments
Proclamation
Town Council Regular Session 2.
Meeting Date:05/15/2019
Proclamation - National Public Works Week
Information
Subject
Proclamation - National Public Works Week
Summary
Attachments
Proclamation
Town Council Regular Session 3.
Meeting Date:05/15/2019
Requested by: Stacey Lemos Submitted By:Wendy Gomez, Finance
Department:Finance
Information
SUBJECT:
Presentation and possible discussion of the Town's Fiscal Year 2018/19 Financial Update through March
2019
RECOMMENDATION:
N/A
EXECUTIVE SUMMARY:
N/A
BACKGROUND OR DETAILED INFORMATION:
N/A
FISCAL IMPACT:
N/A
SUGGESTED MOTION:
N/A
Attachments
Council Communication - March 2019 Financial Update
Attachment A - General Fund
Attachment B - Highway Fund
Attachment C-1 Community Center Fund
Attachment C-2 Troon Cash Flow
Attachment C-3 Troon F&B
Attachment D - Summary All Funds
Attachment E - Gen Fund Local Sales Tax
Town Council Regular Session
Meeting Date: 05/15/2019
Requested by: Stacey Lemos Submitted By: Wendy Gomez, Finance
Department: Finance
Information
SUBJECT:
Fiscal Year 2018/19 Financial Update through March 2019
RECOMMENDATION:
This item is for information only.
EXECUTIVE SUMMARY:
All funds show a positive outlook and are either trending on target with expectations, or
exceeding expectations, at this point in the fiscal year.
In the General Fund (see Attachment A), revenues collected through March totaled $28.8
million or 74.0% of the budget amount of $38.9 million. Year-to-date expenditures through
March totaled $28.2 million or 67.3% of the budget amount of $42.0 million.
In the Highway Fund (see Attachment B), revenues collected through March totaled $2.8
million or 67.5% of the budget amount of $4.1 million. Year-to-date expenditures through
March totaled $2.2 million or 48.1% of the budget amount of $4.6 million.
In the Community Center Fund (see Attachments C-1, C-2 and C-3), revenues collected
through March totaled $4.9 million or 73.9% of the budget amount of $6.7 million. Year-to-
date expenditures through March totaled $4.4 million or 66.3% of the budget amount of
$6.6 million.
BACKGROUND OR DETAILED INFORMATION:
GENERAL FUND
Attachment A shows General Fund revenues and expenditures through March, as well as
year-end estimates for each category. The estimated year-end projections in the General
Fund are as follows:
Revenues $39,067,305
Less:
Expenditures ($39,954,932)
Estimated Decrease in Fund Balance ($887,627)*
*The estimated decrease in fund balance is due to the planned, budgeted transfer of
General Fund one-time surplus funds earned in FY 2017/18 to the Capital Fund for future
capital projects per the Town's adopted financial policies.
General Fund Revenues
Local sales tax collections in the General Fund total $14.7 million or 75.7% of the
budget amount of $19.4 million. These revenues are estimated to come in over
budget by about $264,000 or 1.4%, due largely to construction sales tax. Please
see Attachment E for a monthly tracking of General Fund local sales tax
collections, including construction, utility and bed tax collections.
License and permit revenues total $1.6 million or 74.6% of the budget amount of
$2.1 million, and are projected to come in on budget at this time.
State shared revenues total $8.8 million or 74.8% of the budget amount of $11.7
million, and are projected to come in on budget at this time.
Charges for services revenues total $1.9 million or 77.0% of the budget amount of
$2.4 million. These revenues are estimated to come in over budget by about
$109,000 or 4.5%. This anticipated overage is due in part to previously collected
Court security fees, which are being utilized to complete the security-related
components of the Courthouse remodel CIP project. The corresponding
expenditure for these components is included in the year-end estimate for General
Administration. The overage is also attributable to farebox revenues, plan review
fees, and zoning & subdivision fees.
Federal grant revenues total $258,470 or 43.4% of the budget amount of $596,162.
These revenues are estimated to come in under budget by about $225,000 or
37.7%. This is due to previous Counter Narcotics Alliance task force
officers returning to the Town's Police Department operations, as well as capacity
included for grant-funded vehicles, which is likely to roll over into next fiscal year.
Corresponding capital savings for the vehicles are factored into the year-
expenditure estimates for the Police Department.
State grant revenues total $56,985 or 48.0% of the budget amount of $118,800.
These revenues are estimated to come in under budget by about $44,000 or
36.9%, due mainly to budgeted funding for transit van cameras, of which the Town
ended up receiving last fiscal year. The corresponding budgeted expenditure for
the cameras has been removed from the year-end estimates for the Transit
Division in the Public Works Department.
Other intergovernmental revenues total $989,639 or 54.8% of the budget amount
of $1.8 million. These revenues are estimated to come in under budget by about
$404,000 or 22.4%. Of this amount, $228,000 is attributable to the discontinued
school resource officer contract with Pusch Ridge Christian Academy, as well as
capacity that was included for a potential school resource officer at Leman
Academy. This variance is offset by a corresponding reduction in estimated
personnel expenditures for the Police Department. The remaining amount is
attributable to Transit reimbursements from the IGA with the Regional
Transportation Authority.
Interest income revenues total $318,574 or 212.4% of the budget amount of
$150,000. These revenues are estimated to come in over budget by about
$230,000 or 153.5%, based on estimates provided by the Town’s investment
management firm.
Miscellaneous revenues total $157,104 or 51.2% of the budget amount of
$306,750. These revenues are expected to come in over budget by about $28,000
or 9.2%, due to sale of assets.
Estimated transfers into the General Fund now include a $200,000 transfer from
the Highway Fund. Per the Manager’s FY 19/20 Recommended Budget, some
previous Highway Fund expenditures will be re-allocated to the General Fund. This
$200,000 transfer reflects excess Highway Fund reserves that will be transferred
into the General Fund to be used towards these re-allocated costs.
Please note that the remaining fund balance from the Bed Tax Fund of $617,856 is
now reflected in the beginning fund balance for the General Fund.
General Fund Expenditures
General Fund expenditures are estimated to come in under budget by about $2.0
million or 4.8%. Of this amount, about $600,000 is due to estimated personnel
savings and about $850,000 is attributable to estimated operations & maintenance
(O&M) savings. Roughly $260,000 of the O&M savings is due to completion of the
sales tax rebate agreement for the Oro Valley Marketplace. Capital outlay is
expected to come in under budget by about $36,000. The remainder of expenditure
savings is due to the budgeted transfer to the Highway Fund, which will not occur
in FY 18/19. Please reference the revenue discussion above regarding transfers
and re-allocated Highway Fund costs per the FY 19/20 Manager’s Recommended
Budget.
The General Fund is expected to end the fiscal year with a total fund balance of about
$15.7 million, or 37.4% of budgeted expenditures.
HIGHWAY FUND
Highway Fund Revenues
State shared highway user funds total $2.6 million or 79.6% of the budget amount
of $3.3 million. These revenues are estimated to come in over budget by about
$328,000 or 10.0%, per the League of Arizona Cities and Towns. This is due to a
one-time allocation called for in state statute, as well as partial elimination of the
annual HURF sweep to fund Department of Public Safety operations.
The subsidy transfer from the General Fund will not occur in FY 18/19. This is a
result of the additional HURF funding, as well as the planned re-allocation of
certain Highway Fund costs to the General Fund beginning FY 19/20, referenced in
the General Fund discussion above.
State grant revenues are estimated to come in under budget by about $21,000 or
12.5%. This is due to vacant roadway construction positions that, when filled,
would have been billed to PAG and the RTA for reimbursement. This variance is
offset by a corresponding reduction in personnel expenditures.
License and permit revenues are estimated to come in under budget by $17,000 or
34.9%, based on year to date collections.
Interest income revenues are estimated to come in over budget by about $19,000
or 38.9%, based on estimates provided by the Town’s investment management
firm.
Highway Fund Expenditures
Highway Fund expenditures are estimated to come in under budget by about
$286,000 or 6.2%. The $250,000 Tangerine/1st Avenue Safety CIP project is
expected to roll over into next fiscal year. Savings of about $135,000 are expected
on the Sun City street lights CIP project. Personnel savings are projected at
$74,000, while O&M savings are projected at about $27,000. These amounts are
offset by a $200,000 transfer to the General Fund that will take place in FY 18/19.
Please reference the earlier discussions above regarding re-allocated Highway
Fund costs for FY 19/20.
The Highway Fund is expected to end the fiscal year with a fund balance of about
$493,000.
COMMUNITY CENTER FUND
Attachment C-1 shows the consolidated financial status of the Community Center Fund
with all revenues and expenditures from Troon and Town-managed operations.
Attachment C-2 shows the monthly line item detail for the Troon-managed operations,
specifically revenues and expenditures associated with the golf, food and
beverage operations. The totals in the revenue and expenditure categories in Attachment
C-2 tie to the Contracted Operating Revenues and Expenditures in Attachment C-1.
Attachment C-3 shows the revenues and expenditures for the Troon-managed food and
beverage operations only.
Community Center Fund Revenues
Revenues in the Community Center Fund total $4.9 million or 73.9% of the budget
amount of $6.7 million. Contracted operating revenues from Troon total $2.4 million
and Town operating revenues total $671,752. Local sales tax revenues from the
dedicated half-cent sales tax total $1.8 million or 75.2% of the budget amount of
$2.4 million.
Local sales tax revenues are estimated to come in over budget by about $46,000
or 1.9%, due mainly to restaurant/bar collections.
Town operating revenues are estimated to come in under budget by about
$152,000 or 13.3%. This is due to tennis revenues, which were budgeted as
recreation program revenues pending final contract outcome. These revenues
instead post as monthly rental payments to the Town. Please reference the
offsetting savings in the expenditure discussion below.
Contracted operating revenues from Troon are estimated to come in over budget
by about $17,000 or 0.5%, due to golf revenues.
Community Center Fund Expenditures
Expenditures in the Community Center Fund total $4.4 million or 66.3% of the
budget amount of $6.6 million, and are estimated to come in under budget by
roughly $373,000. This variance is largely due to contract payments that were
budgeted for tennis operations. As mentioned in the revenue discussion above,
tennis operations are instead accounted for as monthly rental payments to the
Town. The remaining expenditure variance is due to estimated personnel savings
and contracted expenditure savings.
The Community Center Fund is projected to end the fiscal year with a fund balance of
approximately $302,000.
All revenue and expenditure estimates are subject to change.
Please see Attachments A and B for additional details on the General Fund and Highway
Fund. See Attachments C-1, C-2 and C-3 for additional details on the Community Center
Fund. See Attachment D for a fiscal year-to-date consolidated summary of all Town
Funds. See Attachment E for a breakdown of monthly local sales tax collections for the
General Fund.
FISCAL IMPACT:
N/A
SUGGESTED MOTION:
This item is for information only.
ATTACHMENT A
March YTD Financial Status
General Fund
% Budget Completion through March --- 75.0%
% Actuals YE % Variance
to Budget to Budget
REVENUES:
LOCAL SALES TAX 14,710,786 19,437,418 75.7% 19,701,797 1.4%
LICENSES & PERMITS 1,594,143 2,136,096 74.6% 2,136,096 0.0%
FEDERAL GRANTS 258,470 596,162 43.4% 371,589 -37.7%
STATE GRANTS 56,985 118,800 48.0% 75,000 -36.9%
STATE/COUNTY SHARED 8,762,087 11,708,575 74.8% 11,708,575 0.0%
OTHER INTERGOVERNMENTAL 989,639 1,805,900 54.8% 1,401,639 -22.4%
CHARGES FOR SERVICES 1,855,873 2,408,862 77.0% 2,517,400 4.5%
FINES 93,979 120,000 78.3% 120,000 0.0%
INTEREST INCOME 318,574 150,000 212.4% 380,209 153.5%
MISCELLANEOUS 157,104 306,750 51.2% 335,000 9.2%
TRANSFERS IN (A) - 120,000 0.0%320,000 166.7%
TOTAL REVENUES 28,797,640 38,908,563 74.0% 39,067,305 0.4%
% Actuals YE % Variance
to Budget to Budget
EXPENDITURES:
ADMINISTRATIVE SERVICES 3,040,248 4,450,555 68.3% 4,335,858 -2.6%
CLERK 280,091 444,559 63.0% 412,113 -7.3%
COMMUNITY & ECON. DEV. 1,861,982 2,869,324 64.9% 2,717,798 -5.3%
COUNCIL 160,531 210,494 76.3% 203,910 -3.1%
GENERAL ADMINISTRATION 1,896,087 2,696,700 70.3% 2,375,724 -11.9%
LEGAL 559,137 793,567 70.5% 791,067 -0.3%
MAGISTRATE COURT 600,168 884,385 67.9% 865,367 -2.2%
MANAGER 845,091 1,251,370 67.5% 1,247,578 -0.3%
PARKS & RECREATION 2,282,811 3,606,586 63.3% 3,462,384 -4.0%
POLICE 11,440,662 16,557,555 69.1% 16,028,774 -3.2%
PUBLIC WORKS 2,262,545 3,518,946 64.3% 3,363,846 -4.4%
TRANSFERS OUT 3,010,912 4,700,514 64.1%4,150,514 -11.7%
TOTAL EXPENDITURES 28,240,266 41,984,555 67.3% 39,954,932 -4.8%
SURPLUS / (DEFICIT) 557,375 (3,075,992) (887,627)
BEGINNING FUND BALANCE (B)16,589,312
Plus: Surplus / (Deficit)(887,627)
ENDING FUND BALANCE **15,701,685
(A) Year-end estimate includes $200,000 from the Highway Fund per the FY 19/20 Recommended Budget as part of
a Highway Fund reorganization aimed at streamlining the tracking of HURF tax expenditures
(B) Includes remaining fund balance from the Bed Tax Fund in the amount of $617,856
and remaining fund balance from the Impound Fee Fund of $3,814
* Year-end estimates are subject to further revision
** Ending fund balance amounts are estimates and are subject to further revision
FY 2018/2019
Year End
Estimate *
Budget Year End
Estimate *
Actuals
thru 3/2019
Actuals
thru 3/2019
Budget
F:\BUDGET ANALYST\Financial Reports 2018-2019\3Q\Mar\Mar FY 19 Monthly Report 5/7/2019
ATTACHMENT B
March YTD Financial Status FY 2018/2019
% Budget Completion through March --- 75.0%
Actuals
thru 3/2019 Budget % Actuals
to Budget
Year End
Estimate *
YE % Variance
to BudgetREVENUES:
LICENSES & PERMITS 24,239 48,700 49.8% 31,700 -34.9%
STATE GRANTS 66,966 165,000 40.6% 144,334 -12.5%
STATE/COUNTY SHARED 2,620,339 3,291,659 79.6% 3,620,156 10.0%
INTEREST INCOME 58,267 50,000 116.5% 69,469 38.9%
MISCELLANEOUS 4,477 3,000 149.2% 6,905 130.2%
TRANSFERS IN - 550,000 0.0%- -100.0%
TOTAL REVENUES 2,774,287 4,108,359 67.5% 3,872,564 -5.7%
Actuals
thru 3/2019 Budget % Actuals
to Budget
Year End
Estimate *
YE % Variance
to Budget
EXPENDITURES:
ADMINISTRATION 319,003 478,693 66.6% 460,796 -3.7%
TRANSPORTATION ENGINEERING 1,157,758 3,134,882 36.9% 2,666,837 -14.9%
STREET MAINTENANCE 747,871 1,012,461 73.9% 1,012,461 0.0%
TRANSFERS OUT (A) - - 0.0%200,000 0.0%
TOTAL EXPENDITURES 2,224,631 4,626,036 48.1% 4,340,094 -6.2%
SURPLUS / (DEFICIT) 549,656 (517,677) (467,529)
BEGINNING FUND BALANCE 960,719
Plus: Surplus / (Deficit)(467,529)
ENDING FUND BALANCE **493,190
(A) Year-end estimate reflects a transfer to the General Fund per the FY 19/20 Recommended Budget as part of
a Highway Fund reorganization aimed at streamlining the tracking of HURF tax revenues
* Year-end estimates are subject to further revision
** Ending fund balance amounts are estimates and are subject to further revision
Highway Fund
F:\BUDGET ANALYST\Financial Reports 2018-2019\3Q\Mar\Mar FY 19 Monthly Report 5/7/2019
ATTACHMENT C-1
March YTD Financial Status
% Budget Completion through March --- 75.0%
% Actuals YE % Variance
to Budget to Budget
REVENUES:
CONTRACTED OPERATING REVENUES
Golf Revenues 1,164,185 1,272,523 91.5% 1,428,889 12.3%
Member Dues (Golf) 553,485 868,848 63.7% 754,855 -13.1%
Tennis Revenues 77,964 - 0.0% 77,964 0.0%
Food & Beverage 489,248 755,148 64.8% 664,329 -12.0%
Merchandise & Other 151,139 217,168 69.6%204,239 -6.0%
2,436,021 3,113,687 78.2% 3,130,276 0.5%
TOWN OPERATING REVENUES
Daily Drop-Ins 22,386 25,000 89.5% 30,028 20.1%
Member Dues 537,963 695,000 77.4% 714,698 2.8%
Recreation Programs 62,564 360,750 17.3% 165,000 -54.3%
Swim Team/Swim Lessons 3,771 21,000 18.0% 16,209 -22.8%
Facility Rental Income 44,918 37,400 120.1% 61,380 64.1%
Concession Sales 150 250 60.0%200 -20.0%
671,752 1,139,400 59.0% 987,515 -13.3%
OTHER REVENUES
Local Sales Tax 1,792,890 2,384,558 75.2% 2,431,038 1.9%
Real Property Rental Income 19,502 19,502 100.0% 19,502 0.0%
Miscellaneous (125) - 0.0%(125) 0.0%
1,812,267 2,404,060 75.4% 2,450,415 1.9%
TOTAL REVENUES 4,920,040 6,657,147 73.9% 6,568,206 -1.3%
% Actuals YE % Variance
to Budget to Budget
EXPENDITURES:
CONTRACTED OPERATING EXPENDITURES
Personnel 1,570,595 2,020,319 77.7% 2,077,857 2.8%
Operations & Maintenance 1,759,219 2,579,027 68.2% 2,423,349 -6.0%
Equipment Leases 288,289 407,936 70.7%404,692 -0.8%
3,618,103 5,007,282 72.3% 4,905,898 -2.0%
TOWN OPERATING EXPENDITURES
Personnel 443,736 769,329 57.7% 712,210 -7.4%
Operations & Maintenance 154,549 486,590 31.8%271,800 -44.1%
598,285 1,255,919 47.6% 984,010 -21.7%
CAPITAL OUTLAY 4,281 50,950 8.4% 50,950 0.0%
TRANSFERS OUT 133,999 253,999 52.8% 253,999 0.0%
TOTAL EXPENDITURES 4,354,668 6,568,150 66.3% 6,194,857 -5.7%
SURPLUS / (DEFICIT) 565,372 88,997 373,348
BEGINNING FUND BALANCE (71,563)
Plus: Surplus / (Deficit)373,348
ENDING FUND BALANCE **301,785
* Year-end estimates are subject to further revision
** Ending fund balance amounts are estimates and are subject to further revision
FY 2018/2019
Actuals
thru 3/2019 Budget Year End
Estimate *
Community Center Fund
Actuals
thru 3/2019 Budget Year End
Estimate *
F:\BUDGET ANALYST\Financial Reports 2018-2019\3Q\Mar\Mar FY 19 Monthly Report 5/7/2019
ATTACHMENT C-2TROONEl Conquistador Cash Flow StatementActualActualActualActualActualActualActualActualActualActual Original Budget ForecastJul-18Aug-18 Sep-18 Oct-18 Nov-18 Dec-18 Jan-19 Feb-19 Mar-19TOTALTOTALTOTALRevenues:Golf Fees, net of discounts37,622 40,532 77,218 58,993 102,521 97,280 150,439 156,681 234,886 956,172 969,832 1,154,351 Trail Fees & Member Cart Fees15,036 15,102 15,183 14,556 18,163 16,304 16,619 16,455 17,985 145,403 225,160 201,593 Golf - Group Services- 136 783 - 440 - 33 614 883 2,889 1,733 3,189 Range, Rentals, Other Golf related5,052 5,162 4,466 4,730 4,773 4,402 6,114 5,490 8,326 48,515 61,650 57,315 Golf Lessons 330 780 300 110 70 632 640 620 1,447 4,929 6,748 5,664 Income - Golf Schools 1,210 - 900 485 325 450 900 770 1,237 6,277 7,400 6,777 Total Member Dues 55,466 52,613 53,302 62,707 60,880 67,454 64,040 68,187 68,836 553,485 868,848 754,855 Other Member Income 7 44 87 181 185 10 82 (65) 25 556 - 556 Swim/Tennis Revenues 26,291 21,188 30,485 - - - - - - 77,964 - 77,964 Income - Other (non - golf)159 97 14,636 132 241 - 1,454 - 1,490 18,209 2,000 18,209 Merchandise, net of discounts 8,895 8,175 11,631 11,204 16,003 27,828 11,981 15,618 21,039 132,374 215,168 185,474 Food and Beverage, net of discounts 39,360 30,419 55,075 51,114 51,993 65,094 54,634 55,996 85,563 489,248 755,148 664,329 Total Revenues 189,428 174,248 264,066 204,212 255,594 279,454 306,936 320,366 441,717 2,436,021 3,113,687 3,130,276 Cost of Sales:COS - Group Services Golf- 135 701 - 440 - - 614 883 2,773 1,733 3,073 COS - Golf Lessons 264 221 240 112 (32) 507 521 575 2,192 4,600 5,398 5,188 COS - Golf Schools 1,465 (1) - 340 260 - - 539 551 3,154 5,250 3,504 COS - Service Commissions 17,056 16,375 18,503 88 - - - - - 52,022 - 52,022 COS - Merchandise, net of discounts 6,521 6,405 8,586 20,858 10,601 19,143 6,819 10,760 14,827 104,520 130,874 137,680 COS - Food & Beverage 14,025 15,500 19,287 18,773 20,067 22,651 19,919 21,184 28,319 179,725 275,730 240,788 Total Cost of Sales 39,331 38,635 47,317 40,171 31,336 42,301 27,259 33,672 46,772 346,794 418,985 442,255 Gross Profit 150,097 135,613 216,749 164,041 224,258 237,153 279,677 286,694 394,945 2,089,227 2,694,702 2,688,021 Operating Expenses:Payroll 138,348 139,002 140,513 142,037 140,745 128,560 143,539 124,090 149,610 1,246,444 1,620,967 1,653,228 Employee Benefits 33,784 31,309 32,117 34,437 30,015 31,578 34,484 32,530 33,753 294,007 374,952 389,162 Employee Related 2,902 3,234 4,674 2,481 3,792 2,344 2,293 2,306 6,118 30,144 24,400 35,467 Advertising & Marketing9,562 10,833 10,540 7,602 10,286 14,943 13,589 12,809 11,268 101,432 119,052 127,971 Repair & Maintenance 25,989 28,983 78,387 68,726 14,503 24,509 16,796 17,226 24,829 299,948 402,854 381,912 Operating Expenses 16,637 15,193 22,511 22,666 20,514 19,358 17,878 25,061 28,283 188,101 235,082 243,847 Total Operating Expenses 227,222 228,554 288,742 277,949 219,855 221,292 228,579 214,022 253,861 2,160,076 2,777,307 2,831,587 Operating Profit(77,125) (92,941) (71,993) (113,908) 4,403 15,861 51,098 72,672 141,084 (70,849) (82,605) (143,566) Leases - Carts 9,282 9,282 9,282 13,041 13,041 13,041 13,041 16,660 13,041 109,708 156,368 153,124 Leases - Equipment22,670 20,975 19,277 19,277 19,277 19,277 19,277 19,277 19,277 178,581 251,568 251,568 Utilities109,701 102,537 124,226 120,681 79,563 46,787 33,247 38,650 68,015 723,407 1,257,525 1,097,524 Fixed Operating Expenses 141,653 132,793 152,784 152,998 111,880 79,104 65,564 74,587 100,332 1,011,696 1,665,461 1,502,216 Gross Operating Profit(218,778) (225,734) (224,777) (266,906) (107,477) (63,243) (14,466) (1,915) 40,752 (1,082,545) (1,748,066) (1,645,782) Insurance 98 98 98 98 98 98 101 101 101 891 1,194 1,194 Fees, Permits & Licenses 100 510 54 17 11 76 (35) (13) 76 796 335 796 Base Management Fees 12,000 12,000 12,000 10,000 10,000 10,000 10,000 10,000 10,000 96,000 144,000 126,000 Bad Debt375 - - - 1,013 (220) 431 86 165 1,850 - 1,850 Total Other Expenses 12,573 12,608 12,152 10,115 11,122 9,954 10,497 10,174 10,342 99,537 145,529 129,840 Net Operating Income (Loss)(231,351) (238,342) (236,929) (277,021) (118,599) (73,197) (24,963) (12,089) 30,410 (1,182,082) (1,893,595) (1,775,622) 5/7/2019
ATTACHMENT C-3
ACTUAL BUDGET ACTUAL BUDGET
MONTH MONTH Y-T-D Y-T-D
FOOD & BEVERAGE REVENUE 85,563 74,160 488,957 580,068
TOTAL REVENUES 85,563 74,160 488,957 580,068
COST OF SALES 28,319 25,256 179,726 214,668
PAYROLL & BENEFITS 45,782 42,350 332,905 361,337
OPERATING EXPENSES 10,691 6,600 63,773 61,398
NET INCOME (LOSS) 771 (46) (87,447) (57,335)
EL CONQUISTADOR
INCOME STATEMENT CONSOLIDATED - RESTAURANT/GRILLE - MAR 2019
5/7/2019
ATTACHMENT DConsolidated Year-to-Date Financial Report through March, 2019 FY 2018/2019FY 18/19 Capital Leases/Left in AccountsBegin Bal. Transfer OutThru Mar 2019General Fund - Unassigned 15,147,450 28,797,640 28,797,640 3,010,912 18,727,289 6,060,801 441,264 28,240,266 15,704,824 General Fund - Assigned 1,441,862 - 1,441,862 Highway Fund - Committed 960,719 2,774,287 2,774,287 1,598,053 475,932 150,647 2,224,631 1,510,375 Seizure & Forfeiture - Justice/State 402,290 54,922 54,922 41,140 127,105 41,858 210,103 247,110 Community Center Fund (71,563) 4,920,040 4,920,040 422,288 443,736 3,484,363 4,281 4,354,668 493,809 Municipal Debt Service Fund 88,735 138,886 881,094 1,019,980 8,860 1,028,672 1,037,532 71,183 Oracle Road Debt Service Fund 7,477 169,309 169,309 1,800 166,439 168,239 8,547 Alternative Water Resources Dev Impact Fee Fund 7,878,052 1,159,621 1,159,621 76,215 153,397 229,613 8,808,061 Potable Water System Dev Impact Fee Fund 6,013,007 619,535 619,535 4,274 654,858 298,970 958,103 5,674,439 Townwide Roadway Development Impact Fee Fund 2,296,534 588,355 588,355 640 4,235 4,875 2,880,013 Parks & Recreation Impact Fee Fund 272,087 202,330 202,330 640 640 473,777 Police Impact Fee Fund 653,982 75,073 75,073 640 640 728,415 General Government Impact Fee Fund 3,555 30 30 - 3,585 Capital Fund 3,323,727 595,652 4,301,398 4,897,050 35,000 4,165,299 4,200,299 4,020,478 PAG/RTA Fund 695,684 1,248,881 1,248,881 1,651,239 1,651,239 293,326 Water Utility9,680,488 11,608,592 2,395,000 14,003,592 2,581 2,301,910 4,937,679 1,408,985 4,891,080 13,542,235 10,141,845 Stormwater Utility759,242 1,064,177 1,064,177 488,226 219,516 40,225 747,967 1,075,452 Benefit Self Insurance Fund 736,508 2,662,479 2,662,479 2,585,284 2,585,284 813,704 Recreation In-Lieu Fee Fund 15,718 - - 15,718 Energy Efficiency Project Fund 86 - - 86 Total 50,305,639 56,679,811 7,577,492 64,257,303 3,435,781 23,600,354 18,018,749 8,716,287 - 6,385,161 60,156,333 54,406,610 Fund RevenueOther Fin Sources/TfrsTotal InDebt Service Total OutPersonnel O&M Capital ContingencyF:\BUDGET ANALYST\Financial Reports 2018-2019\3Q\Mar\Attachment D - Summary All Funds5/7/2019
ATTACHMENT EGeneral Fund Local Sales Tax Collections FY 2018/19CATEGORYJULYAUGSEPOCTNOVDECJANFEBMARAPRMAYJUNETOTALConstruction Sales Tax 432,755 355,783 480,092 457,613 380,468 341,104 698,951 390,588 412,233 3,949,587 Utility Sales Tax 284,416 315,680 310,763 300,228 246,348 206,155 226,228 269,639 237,684 2,397,141 Retail Sales Tax 521,613 511,157 528,681 526,398 543,458 656,373 786,532 547,247 509,518 5,130,976 Bed Tax 99,199 97,926 98,236 89,109 124,675 180,525 106,828 156,893 237,752 1,191,143 All Other Local Sales Tax *198,583 200,462 187,826 206,134 234,808 245,773 221,263 273,974 299,266 2,068,091 TOTAL 1,536,566$ 1,481,008$ 1,605,598$ 1,579,482$ 1,529,757$ 1,629,930$ 2,039,802$ 1,638,341$ 1,696,453$ 14,736,938$ FY 2017/18CATEGORYJULYAUGSEPOCTNOVDECJANFEBMARAPRMAYJUNETOTALConstruction Sales Tax 547,514 469,050 456,125 443,115 664,593 459,268 439,368 384,045 282,895 451,750 441,960 513,767 5,553,450 Utility Sales Tax 202,208 429,402 290,283 310,764 256,734 231,300 227,032 242,373 218,602 207,317 203,785 230,245 3,050,045 Retail Sales Tax 541,876 478,942 481,677 505,094 502,326 629,823 801,494 557,783 521,796 624,106 551,219 535,133 6,731,269 All Other Local Sales Tax *202,678 219,584 186,445 184,144 200,359 198,807 210,620 267,704 257,943 282,817 242,283 240,054 2,693,437 TOTAL 1,494,276$ 1,596,978$ 1,414,530$ 1,443,117$ 1,624,012$ 1,519,198$ 1,678,514$ 1,451,905$ 1,281,236$ 1,565,990$ 1,439,247$ 1,519,199$ 18,028,201$ * Note: Does not include cable franchise fees or sales tax audit revenuesF:\BUDGET ANALYST\Financial Reports 2018-2019\3Q\Mar\Attachment E - Gen Fund Local Sales Tax5/7/2019
Town Council Regular Session A.
Meeting Date:05/15/2019
Requested by: Mike Standish Submitted By:Michelle Stine, Town Clerk's Office
Department:Town Clerk's Office
Information
SUBJECT:
Minutes - January 11-12, April 24 and May 1, 2019
RECOMMENDATION:
Staff recommends approval
EXECUTIVE SUMMARY:
N/A
BACKGROUND OR DETAILED INFORMATION:
N/A
FISCAL IMPACT:
N/A
SUGGESTED MOTION:
I MOVE to approve, (approve with the following changes) the January 11-12, April 24 and May 1, 2019 minutes.
Attachments
1-11 and 12-19 Draft Minutes
4-24-19 Draft Minutes
5-1-19 Draft Minutes
1/11-12/19 Minutes, Town Council Workshop 1
MINUTES
ORO VALLEY TOWN COUNCIL
WORKSHOP
January 11-12, 2019
Northwest Fire District Training Center
5125 W. Camino de Fuego
January 11, 2019
WORKSHOP AT OR AFTER 8:30 AM
The Workshop was called to order at 8:30 a.m.
Present: Joseph C. Winfield, Mayor
Melanie Barrett, Vice Mayor
Joyce Jones -Ivey, Councilmember
Josh Nicolson, Councilmember
Rhonda Piña, Councilmember
Bill Rodman, Councilmember
Steve Solomon, Councilmember
WORKSHOP AGENDA
1. Discussion led by Facilitator Patrick Ibarra of the Mejorando Group regarding the 2019 -2021
Oro Valley Strategic Leadership Plan
Mr. Ibarra welcomed everyone and gave a brief overview of the agenda.
Mayor Winfield welcomed and thanked everyone for attending the strategic planning workshop.
Mr. Ibarra and Council identified the benefits from good government and discussed the role of
the Mayor, Town Council, Town Manager, Town staff and the community.
Mr. Ibarra and Council discussed strategies for creating a more credible and effective governing
body.
Town Manager, Mary Jacobs, detailed the major accomplishments by Strategic Focus Areas
since the approval of the last plan, through the end of the current fiscal year.
The meeting was recessed at 11:45 a.m. for lunch
The meeting reconvened at 12:45 p.m.
Discussion ensued amongst Council regarding the following topics that were identified during
the Town Council pre-session interviews: Growth, Annexation, Economic Development, Land
Use, Public Safety, Infrastructure, Quality of Life, Budget and Internal.
The meeting adjourned at 4:03 p.m.
1/11-12/19 Minutes, Town Council Workshop 2
January 12, 2019
WORKSHOP AT OR AFTER 8:30 AM
The Workshop was called to order at 8:30 a.m.
Present: Joseph C. Winfield, Mayor
Melanie Barrett, Vice Mayor
Joyce Jones -Ivey, Councilmember
Josh Nicolson, Councilmember
Rhonda Piña, Councilmember
Bill Rodman, Councilmember
Steve Solomon, Councilmember
WORKSHOP AGENDA
1. Discussion led by Facilitator Patrick Ibarra of the Mejorando Group regarding the 2019-2021
Oro Valley Strategic Leadership Plan
Mr. Ibarra provided a short recap of day one.
Mr. Ibarra and Council explored the various trends impacting the role of government, the Town
in general and the departments.
Based on the factors/headwinds identified in the previous discussion, Council explored and
discussed the evolving role of the Town organization as a community builder.
The meeting was recessed at 9:45 a.m.
The meeting reconvened at 10:00 a.m.
Mr. Ibarra and Council discussed the various facets of items discussed up to this point and
further discussed Council’s priorities based on near -term, short-term and long term time frames.
The meeting was recessed at 11:45 a.m. for lunch.
The meeting reconvened at 12:45 p.m.
The Council and Mr. Ibarra continued their goal-setting/Strategic Leadership Plan discussion.
Mr. Ibarra and Ms. Jacobs wrapped up the session and discussed next steps.
The meeting adjourned at 3:02 p.m.
Prepared by:
__________________________
Michael Standish, CMC
Town Clerk
1/11-12/19 Minutes, Town Council Workshop 3
I hereby certify that the foregoing minutes are a true and correct copy of the minutes of the
Workshop of the Town of Oro Valley Council of Or o Valley, Arizona held on January 11 and 12,
2019. I further certify that the meeting was duly called and held and that a quorum was present.
Dated this ____ day of __________________, 2019.
______________________
Michael Standish, CMC
Town Clerk
4/24/19 Minutes, Town Council Budget Study Session 1
MINUTES
ORO VALLEY TOWN COUNCIL
BUDGET STUDY SESSION
April 24, 2019
ORO VALLEY COUNCIL CHAMBERS
11000 N. LA CANADA DRIVE
BUDGET STUDY SESSION AT OR AFTER 6:00 PM
CALL TO ORDER
Mayor Winfield called the meeting to order at 6:00 p.m.
ROLL CALL
PRESENT: Joseph C. Winfield, Mayor
Melanie Barrett, Vice -Mayor
Joyce Jones-Ivey, Councilmember
Josh Nicolson, Councilmember
Rhonda Piña, Councilmember
Bill Rodman, Councilmember
Steve Solomon, Councilmember
BUDGET STUDY SESSION AGENDA
1. FY 2019/20 TOWN MANAGER'S RECOMMENDED BUDGET DEPARTMENT
OVERVIEWS
Mayor Winfield announced the first budget presentation would be the Five-Year
Financial Forecast, followed by Public Works, Water Utility and then the Fiscal-Year
2019/20 Capital Improvement Program.
Five-Year Financial Forecast, General Fund and Highway Fund
Senior Budget Analyst Wendy Gomez presented the Five -Year Financial Forecast,
General Fund and Highway Fund and included the following:
- Forecast Overview
- General Fund Revenues
- General Fund Expenditures
- General Fund Forecast
- Highway Fund Revenues
4/24/19 Minutes, Town Council Budget Study Session 2
- Highway Fund Expenditures
- Highway Fund Forecast
Questions and comments from Council regarding the Five-Year Financial Forecast were
received during and after Ms. Gomez's presentation.
Public Works
Community Development and Public Works Director/Town Engineer Paul Keesler
gave an overview of the proposed FY 2019/20 Public Works budget that included the
following:
- Public Works
- Department Overview
- By the Numbers
- Public Works
- Administration - General Fund
- Highway User Revenue Fund - HURF
- Highway Fund - Overview
- Highway Fund - Transportation Engineering
- Highway Fund - Street Maintenance
- Facility Maintenance - General Fund
- Facility Maintenance
- Fleet Maintenance - General Fund
- Fleet Maintenance
- Stormwater Utility Fund
- Transit Services - RTA/General Fund
- Roadway Development Impact Fee Fund
- PAG/RTA Fund
Questions and comments from Council regarding the proposed Public Works budget
were received during and after Mr. Keesler's presentation.
Water Utility
Water Utility Director Peter Abraham presented the proposed FY 2019/20 Water Utility
budget and included the following:
- Oro Valley Water Utility
- Water rate setting goals
- Recommendation on water rates
- Base rate comparisons
- What do the water rates support?
- Operating Fund Budget
- Operating Fund Expenses - Personnel
- Operating Fund Expenses - O&M
4/24/19 Minutes, Town Council Budget Study Session 3
- Operating Fund Expenses - Capital
- Operating Fund Expenses - Debt Service
- Impact Fee Funds
Questions and comments from Council regarding the proposed Water Utility budget
were received during Mr. Abraham's presentation.
Capital Improvement Program
Senior Budget Analyst Wendy Gomez presented the proposed FY 2019/20 Capital
Improvement Program and included the following:
- CIP Overview
- FY 19/20 Recommended CIP - $32,537,039
- FY 19/20 CIP - Streets and Roads
- FY 19/20 CIP - Water System
- FY 19/20 CIP - Public Safety, Parks & Recreation
- FY 19/20 CIP - Stormwater, Vehicles, Other
Questions and comments from Council regarding the proposed FY 2019/20 Capital
Improvement Program were received during and after Ms. Gomez's presentation.
Oro Valley resident Jack Stinnett voiced his concerns regarding the proposed funding
for Steam Pump Ranch.
ADJOURNMENT
Mayor Winfield adjourned the meeting at 9:31 p.m
_________________________________
Michelle Stine, MMC
Deputy Town Clerk
I hereby certify that the foregoing minutes are a true and correct copy of the minutes of
the budget study session of the Town of Oro Valley Council of Oro Valley, Arizona held
on the 24th day of April, 2019. I further certify that the meeting was duly called and held
and that a quorum was present.
Dated this _____ day of ____________________, 2019 .
_____________________________
Michael Standish, CMC
Town Clerk
5/1/19 Minutes, Town Council Regular / Study Session 1
MINUTES
ORO VALLEY TOWN COUNCIL
REGULAR SESSION
May 1, 2019
ORO VALLEY COUNCIL CHAMBERS
11000 N. LA CANADA DRIVE
REGULAR SESSION AT OR AFTER 6:00 PM
CALL TO ORDER
Mayor Winfield called the meeting to order at 6:00 p.m.
ROLL CALL
PRESENT: Joseph C. Winfield, Mayor
Melanie Barrett, Vice -Mayor
Joyce Jones-Ivey, Councilmember
Josh Nicolson, Councilmember
Rhonda Piña, Councilmember
Bill Rodman, Councilmember
Steve Solomon, Councilmember
PLEDGE OF ALLEGIANCE
Mayor Winfield led the audience in the Pledge of Allegiance.
UPCOMING MEETING ANNOUNCEMENTS
Town Clerk Mike Standish announced the upcoming Town meetings.
COUNCIL REPORTS
Vice-Mayor Melanie Barrett reported that she and other Councilmembers attended the
Town's Easter Eggstravaganza held on April 20, 2019. Vic e-Mayor Barrett also thanked
Town staff and volunteers for their assistance in providing a successful event.
Vice-Mayor Barrett reported that she and other Councilmembers attended the Youth
Advisory Council's BBQ held on April 20, 2019.
Mayor Winfield reported that the Town Council attended the Marana State of the Town
Address held on April 18, 2019 .
Mayor Wi nfield reported that he attended the Arbor Day Celebration at Steam Pump
5/1/19 Minutes, Town Council Regular / Study Session 2
Ranch held on April 27, 2019 and also attended a ribbon cutting in celebration of the
completion of Cathedral Square in Tucson on April 28, 2019.
Councilmember Rodman reported that he and Councilmember Piña attended the Good
Scout Awards Luncheon on April 25, 2019.
TOWN MANAGER’S REPORT
Town Manager Mary Jacobs recognized the Town’s Administrative Professionals and
thanked them for all they do.
Town Clerk Mike Standish announced that new artwork was on display in the Council
Chambers by artist Camille Sensale.
ORDER OF BUSINESS
Mayor Winfield reviewed the order of business and stated that the order would stand as
posted.
INFORMATIONAL ITEMS
1. Congressional Recognition - Oro Valley Police Department
CALL TO AUDIENCE
No comments were received.
PRESENTATIONS
1. Presentation of Certificates of Appreciation to outgoing members of the Youth
Advisory Council
Constituent Services Coordinator and Management Assistant Jessica Hynd gave an
overview of the Youth Advisory Council, their mission and accolades, then presented
Certificates of Appreciation to the following outgoing members of the Youth Advisory
Council:
Present Isabella Russell
Daniel Casonova Natalia Cruz
President Shivansh Srivastava
Historian Vincent Brown
Julieanne Alunge
Aidan Kehl
Rebecca Jackson
5/1/19 Minutes, Town Council Regular / Study Session 3
Not Present
Treasurer Courtney Buckwalter
Carley Noll
Aasim Ahmad
Noah Martin
Vice President Brandon Bailey
2. Proclamation - National Day of Prayer
Mayor Winfield proclaimed Thursday, May 2, 2019 to be National Day of Prayer.
4Tucson's Government Domain Director Paul Parisi accepted the proclamation.
Councilmember Rodman recognized Police Chief Daniel Sharp for receiving
Congressional Recognition in honor of Oro Valley's designation as The Safest City in
Arizona.
CONSENT AGENDA
Councilmember Solomon recused himself from voting on Consent Agenda item D.
A. Minutes - April 17, 2019
B. Establishing July 31, 2019, as a regular Town Council meeting date
C. Request for approval of a Final Plat for a 29 -lot residential subdivision located
within the Rancho Vistoso PAD, west of La Cañada Drive and approximately 1/4 -
mile north of Moore Road.
D. Request for approval of conceptual public art for the Oro Valley C hurch of the
Nazarene, located on the northeast corner of Calle Concordia and Calle Buena
Vista
E. Resolution No. (R)19-17, authorizing the Public Works Department to apply for
grants from the Arizona Department of Transportation (ADOT) for funding to
re place vehicles and other capital projects for the Transit Services division
MOTION: A motion was made by Councilmember Rodman and seconded by
Councilmember Piña to approve Consent Agenda items (A - E).
MOTION carried, 7-0, for approval of Consent Agenda items (A – C) and (E) and carried
6-0 for item (D), with Councilmember Solomon recused.
REGULAR AGENDA
5/1/19 Minutes, Town Council Regular / Study Session 4
1. PUBLIC HEARING: DISCUSSION AND POSSIBLE ACTION REGARDING AN
APPLICATION FOR AN INTERIM PERMIT AND NEW SERIES 12
(RESTAURANT) LIQUOR LICENSE FOR CARRABBA’S ITAL IAN GRILL,
LOCATED AT 7635 N. ORACLE ROAD
Town Clerk Mike Standish presented item #1.
Mayor Winfield opened the public hearing .
No comments were received.
Mayor Winfield closed the public hearing.
MOTION: A motion was made by Councilmember Piña and seconded by Vice -Mayor
Barrett to approve the issuance of a Series 12 Liquor License to the Arizona
Department of Liquor Licenses and Control for Andrea Dahlman Lewkowitz for
Carrabba's Italian Grill, located at 7635 N. Oracle Road.
MOTION carried, 7-0.
2. PUBLIC HEARING: ORDINANCE NO. (O)19 -05, DISCUSSION AND POSSIBLE
ACTION REGARDING THE REPEALING OF ORO VALLEY TOWN CODE,
CHAPTER 7, STREETS, HIGHWAYS, PUBLIC WAYS - SUBDIVISION,
ARTICLE 7-5, STANDARDS AND PROCEDURES, SECTION 7 -5-10, REPAIR
OF SIDEWALK BY ABUTTING OWNERS
Community Development and Public Works Director / Town Engineer Paul Keesler
presented item #2 and included the following:
- Reason for revision request
Discussion ensued amongst Council and staff regarding item #2.
Mayor Winfield opened the public hearing.
No comments were received
Mayor Winfield closed the public hearing.
Discussion continued amongst Council and staff regarding item #2.
MOTION: A motion was made by Councilmember Piña and seconded by Vice -Mayor
Barrett to approve Ordinance No. (O)19 -05, repealing Oro Valley Town Code, Chapter
7, Streets, Highways, Public Ways - Subdivision, Article 7-5, Standards and
Procedures, Section 7-5-10, repair of sidewalk by abutting owners; repealing all
resolutions, ordinances, and rules of the Town of Oro Valley in conflict therewith;
5/1/19 Minutes, Town Council Regular / Study Session 5
preserving the rights and duties that have already ma tured and proceedings that have
already begun thereunder.
MOTION carried, 7-0.
FUTURE AGENDA ITEMS
No future agenda items were requested.
CALL TO AUDIENCE
No comments were received.
ADJOURNMENT OF THE REGULAR SESSION
MOTION: A motion was made by Councilmember Piña and seconded by Vice-Mayor
Barrett to adjourn the Regular Session at 6:31 p.m.
MOTION carried, 7-0.
STUDY SESSION
CALL TO ORDER
Mayor Winfield called the Study Session to order at 6:31 p.m.
STUDY SESSION AGENDA
1. PRESENTATION AND DISCUSSION REGARDING FLASHVOTE, AN ONLINE
SURVEY TOOL
Communications Administrator Misti Nowak presented an overview of FlashVote, an
online survey tool.
Discussion ensued amongst Council and staff regarding item #1.
Oro Valley resident Greg Keshi voiced his co ncerns regarding the data required to
enroll with FlashVote.
Discussion continued amongst Council and staff regarding item #1.
ADJOURNMENT OF THE STUDY SESSION
Mayor Winfield adjourned the Study Session at 7:12 p.m.
5/1/19 Minutes, Town Council Regular / Study Session 6
REGULAR SESSION
CALL TO ORDER
Mayor Winfield called the Regular Session to order at 7:12 p.m.
REGULAR SESSION AGENDA
EXECUTIVE SESSION - Pursuant to ARS 38-431.03(A)(3), (A)(4) and (A)(7) for
legal advice with the Town attorneys, discussion and consultation with those attorne ys
and designated Town representatives, and possible instruction to those attorneys and
designated representatives about the agreements related to the Town owned golf
courses and tennis facilities
MOTION: A motion was made by Councilmember Solomon and seconded by Vice-
Mayor Barrett to go into Executive Session at 7:13 p.m. pursuant to ARS 38-431-
03(A)(3), (A)(4) and (A)(7) for legal advice with the Town attorneys, discussion and
consultation with those attorneys and designated Town representatives, and possible
instruction to those attorneys and designated representatives about the agreements
related to the Town owned golf courses and tennis facilities.
MOTION carried, 7-0.
Mayor Winfield announced that the following staff members would be joining Council in
Executive Session: Town Manager Mary Jacobs, Assistant Town Manager Chris
Cornelison, Legal Services Director Tobin Sidles, Town Attorneys Gary Cohen and
David Hindman and Town Clerk Mike Standish.
RESUME REGULAR SESSION
Mayor Winfield reconvened the Regular Session at 8:09 p.m.
ADJOURNMENT
MOTION: A motion was made by Mayor Winfield and seconded by Councilmember
Rodman to adjourn the meeting at 8:10 p.m.
MOTION carried, 7-0.
__________________________
Michelle Stine, MMC
Deputy Town Clerk
5/1/19 Minutes, Town Council Regular / Study Session 7
I hereby certify that the foregoing minutes are a true and correct copy of the minutes of
the regular / study session of the Town of Oro Valley Council of Oro Valley, Arizona
held on the 1st day of May, 2019. I further certify that the meeting was duly called and
held and that a quorum was present.
Dated this _____ day of ____________________, 2019.
___________________________
Michael Standish, CMC
Town Clerk
Town Council Regular Session B.
Meeting Date:05/15/2019
Submitted By:Mike Standish, Town Clerk's Office
Department:Town Clerk's Office
Information
SUBJECT:
Resolution No. (R)19-18, approving the Agenda Committee assignment for the period of June 1, 2019, to
August 31, 2019
RECOMMENDATION:
Staff recommends approval.
EXECUTIVE SUMMARY:
Per the Town Council Parliamentary Rules and Procedures & Code of Conduct, the Town Council shall set and
approve the Agenda Committee meeting assignments. Attached is the proposed Agenda Committee meeting
assignment of Councilmember Bill Rodman for the period of June 1, 2019, to August 31, 2019.
BACKGROUND OR DETAILED INFORMATION:
N/A
FISCAL IMPACT:
N/A
SUGGESTED MOTION:
I MOVE to (approve or deny) Resolution No. (R)19-18, approving the Agenda Committee assignment for the period
of June 1, 2019 to August 31, 2019.
Attachments
(R)19-18 AC Assignment 3rd Quarter 2019
RESOLUTION NO. (R)19-18
A RESOLUTION OF THE MAYOR AND COUNCIL OF THE TOWN OF ORO VALLEY,
ARIZONA, ASSIGNING COUNCILMEMBER BILL RODMAN TO THE AGENDA
COMMITTEE FOR THE PERIOD OF JUNE 1, 2019 THROUGH AUGUST 31, 2019 ; AND
DIRECTING THE TOWN MANAGER, TOWN CLERK, TOWN LEGAL SERVICES
DIRECTOR, OR THEIR DULY AUTHORIZED OFFICERS AND AGENTS TO TAKE
ALL STEPS NECESSARY TO CARRY OUT THE PURPOSES AND INTENT OF THIS
RESOLUTION
WHEREAS, on September 19, 2001, the Mayor and Council adopted the Town Council
Parliamenta ry Rules and Procedures and Code of Conduct; and
WHEREAS, pursuant to section 5.2 (A) Town Council Parliamentary Rules and Procedures &
Code of Conduct , the Town Council shall set and approve the agenda committee meeting
assignments; and
WHEREAS, Town Council wishes assign Councilmember Bill Rodman to the agenda
committee for the period of June 1, 2019 through August 31, 2019 .
NOW, THEREFORE, BE IT RESOLVED by the Mayor and Council of the Town of Oro
Valley, Arizona, as follows:
SECTION 1. That Councilmember Bill Rodman is hereby assigned to the Agenda Committee
for the period of June 1, 2019 through August 31, 2019.
SECTION 2. That the Town Manager, Town C lerk, Town Legal Services Director, or their duly
authorized officers and agents to take all steps necessary to carry out the purposes and intent of
this resolution.
PASSED AND ADOPTED by the Mayor and Town Council of the Town of Oro Valley,
Arizona, this 15th day of May, 2019.
TOWN OF ORO VALLEY
___________________________
Joseph C. Winfield, Mayor
ATTEST: APPROVED AS TO FORM :
____________________________ __________________________________
Michael Standish, Town Clerk Tobin Sidles, Legal Services Director
Town Council Regular Session C.
Meeting Date:05/15/2019
Requested by: Paul Keesler Submitted By:Paul Keesler, Public Works
Department:Public Works
Information
SUBJECT:
Resolution No. (R)19-19, request for granting an easement to Tucson Electric Power for the installation
maintenance and operation of electrical equipment for the new Police Department Substation and
Evidence Facility, located at 500 W. Magee Rd.
RECOMMENDATION:
Staff recommends approval.
EXECUTIVE SUMMARY:
A new Tucson Electric Power (TEP) transformer is being placed on the southwest corner of the new PD
Substation and Evidence facility, which is required to supply power to the new facility.
BACKGROUND OR DETAILED INFORMATION:
TEP requires a perpetual non-exclusive easement to construct, use, maintain, operate, alter, add to,
repair, reconstruct, inspect and remove/replace at any time, a new service transformer being provided to
supply power to the new PD Evidence Facility. The easement consists of a 15'x15' pad and 10' wide line
extension along the western portion of the existing parking lot. Please refer to Exhibit A for details and a
plan depicting the easement.
There are no planned improvements now or in the future that will be impacted by this easement as it runs
within the parking lot.
The granting of an easement on Town property to an external entity requires Council approval.
FISCAL IMPACT:
There is no fiscal impact.
SUGGESTED MOTION:
I MOVE to (approve/deny) Resolution No. (R)19-19, requesting the granting of an easement to Tucson
Electric Power for the installation, maintenance and operation of electrical equipment for the new Police
Department Substation and Evidence facility, located at 500 W. Magee Rd.
Attachments
(R)19-19 Resolution
Exibit A - TEP Easement
RESOLUTION NO. (R)19-19
A RESOLUTION OF THE MAYOR AND COUNCIL OF THE
TOWN OF ORO VALLEY, ARIZONA, GRANTING AN
EASEMENT TO TUCSON ELECTRIC POWER FOR
ELECTRICAL LINES AT THE ORO VALLEY POLICE
SUBSTATION LOCATED AT 500 W. MAGEE RD; AND
DIRECTING THE TOWN M ANAGER, TOWN CLERK, TOWN
LEGAL SERVICES DIRECTOR, OR THEIR DULY
AUTHORIZED OFFICERS AND AGENTS TO TAKE ALL STEPS
NECESSARY TO CARRY OUT THE PURPOSES AND INTENT
OF THIS RESOLUTION
WHEREAS, the Town desires to grant an easement to Tucson Electric Power, so that
power may be provided to the Oro Valley Police Substation located at 500 W. Magee Rd.
in Oro Valley; and
WHEREAS, the Town owns the Oro Valley Police Substation located at 500 W. Magee
Rd.; and
WHEREAS, in order to provide power to the Oro Valley Police Substation, Tucson
Electric Power requires an easement which is described in Exhibit “A” attached hereto;
and
WHEREAS, it is in the best interest of the Town to grant an easement to Tucson Electric
Power so that electrical lines can be laid to pro vide power to the Oro Valley Police
Substation located at 500 W. Magee Rd.
NOW, THEREFORE BE IT RESOLVED by the Mayor and Council of the Town of
Oro Valley as follows:
SECTION 1. The easement attached hereto as Exhibit “A” is hereby approved and
granted to Tucson Electric Power.
SECTION 2. The Mayor is authorized to execute and the Town Clerk is authorized to
attest to the attached Exhibit “A” for and on behalf of the Town.
SECTION 3. The Town Manager, Town Clerk, Town Legal Services Director, or the ir
duly authorized officers and agents are hereby authorized and directed to
take all steps necessary to carry out the purposes and intent of this
resolution.
PASSED AND ADOPTED by the Mayor and Council of the Town of Oro Valley,
Arizona, this 15th day of May, 2019.
TOWN OF ORO VALLEY
Joseph C. Winfield, Mayor
ATTEST: APPROVED AS TO FORM :
Michael Standish, Town Clerk Tobin Sidles, Legal Services Director
Date: Date:
EXHIBIT “A”
Town Council Regular Session D.
Meeting Date:05/15/2019
Submitted By:Chris Cornelison, Town Manager's Office
Department:Town Manager's Office
Information
SUBJECT:
Resolution No. (R)19-20, authorizing and approving an amendment to the Cooperative Intergovernmental
Agreement between the Town of Oro Valley and Pima County for the Community Development Block
Grant Program and Home Investment Partnerships Program
RECOMMENDATION:
Staff recommends approval of this amendment since the Town is a regional partner with Pima County.
The County is seeking certification as an "Urban County" and provides its citizenry with the options and
benefits this program affords.
In addition, the terms of this agreement shall apply to the Town only if the Town requests and receives
funding for low and moderate income housing within the Town boundaries under the terms of this
agreement.
EXECUTIVE SUMMARY:
This item serves as an amendment (attachment 2) to an existing cooperative Intergovernmental
Agreement (IGA) (attachment 4) between Pima County and the Town of Oro Valley for the Community
Development Block Grant (CDBG) and Home Investment Partnership Program (HOME).
The Town and the County have historically approved these triennial IGAs, which provide Oro Valley with
the ability to directly apply to the County for available U.S. Department of Housing and Urban
Development (HUD) entitlement funds--in lieu of having to competitively apply via the State of Arizona. In
addition, these agreements “re-certify” Pima County as an Urban County, a HUD requirement for
entitlement funded agencies.
Participation in this IGA is desirable to meet the requirements of the Housing and Community Development Act of
1974. Although Oro Valley's population is below the 50,000 threshold that qualifies its low to moderate income
residents to apply for home repair monies, Oro Valley still has participated with the region so that Pima County may
qualify for full funding.
BACKGROUND OR DETAILED INFORMATION:
Every three years, the U.S. Department of Housing and Urban Development (HUD) requires
non-entitlement incorporated jurisdictions to either join the “Urban County Program,” i.e. Pima County, or
apply for respective Community Development Block Grants (CDBG) and Home Investment Partnerships
Program (HOME) funds via the State of Arizona Small Cities Program. HUD only makes available said
entitlement funds to incorporated municipalities with a population over 50,000. The “Coop” agreement, or
IGA, represents the Town’s agreement to participate with Pima County in the HUD Urban County
Program. In respect to the Pima County Board of Supervisors, Town Council, and limited summer
schedules, the IGA has been drafted to be executed in counterparts to meet HUD’s July 26, 2019
submittal deadline. HUD issued new guidance and notice to Pima County in March 2019. There are no
submittal deadline. HUD issued new guidance and notice to Pima County in March 2019. There are no
significant changes from the last IGA approved three years ago. Below is brief summary on the CDBG
Program:
CDBG funding must support 1 of 3 National Objectives
Benefit low and moderate-income persons - Pima County CDBG program primarily meets this objective
Aid in the prevention or elimination of slum/blight
Address urgent need (natural disasters, etc.)
The CDBG National Objectives are generally met in the following ways:
On an individual basis - homeowner in need of home repair/accessibility upgrades
At the community or eligible neighborhood level with small capital improvement projects, i.e.
eligible facility improvements - HVACs on community public facilities, commercial
freezer/refrigerator for food banks, etc.
In addition to the County Home Repair Program, the County funds other non-profit home repair agencies
to complete home repair activities throughout Pima County. During this past year, five (5) home repair
projects were conducted by Pima County or its non-profit home repair agencies at an average of
$12,000 each in the Oro Valley Area.
Participation in the Urban County Program is mutually beneficial to the County and Town. The
agreement allows the Town to administer their own CDBG projects should they desire, and allows Pima
County to invest HUD resources within respective municipal boundaries. The Cooperative IGA also
allows the Town to apply directly to the County for HUD projects in lieu of competing statewide for
Arizona’s limited and controlled HUD resources. As part of the Cooperative IGA, Pima County is able to
prioritize funding for eligible Oro Valley residents. An example would be an application submitted for
home repair services through the Pima County Home Repair Program. The IGA also allows Pima County
to prioritize funding for eligible agencies that assist Oro Valley residents. Additionally, Pima County
conducts Fair Housing Initiatives on a countywide basis, which includes Oro Valley.
Pima County concurrently executes identical documents with other participating local governments in the
region. Historically, the Town of Oro Valley has entered into an IGA with Pima County for CDBG
purposes. This arrangement between Oro Valley and Pima County was initiated in 1984 and has been
renewed every term except in 1998, which resulted in a loss of funding in the amount of $80,000 for the
region. The proposed IGA amendment for 2019 is for a three-year period (fiscal years 2020, 2021 &
2022). The current IGA is attached for reference, see attachment 4.
Participation in this IGA is desirable to meet the requirements of the Housing and Community
Development Act of 1974. Although Oro Valley's population is below the 50,000 threshold that qualifies
its low to moderate income residents to apply for home repair monies, Oro Valley still has participated
with the region so that Pima County may qualify for full funding.
FISCAL IMPACT:
There is not a fiscal impact to the Town's budget.
SUGGESTED MOTION:
I MOVE to (approve/deny) Resolution No. (R)19-20, authorizing and approving an amendment to the
Cooperative Intergovernmental Agreement between the Town of Oro Valley and Pima County for the
Community Development Block Grant Program and Home Investment Partnership Program.
Attachments
(R)19-20 Resolution
Cooperative IGA Amendment
CDBG and HOME IGA 2016
CDBG and HOME IGA (Current)
Letter to Town Manager
RESOLUTION NO. (R)19-20
A RESOLUTION OF THE MAYOR AND COUNCIL OF THE
TOWN OF ORO VALLEY, ARIZONA, AUTHORIZING AND
APPROVING THE COOPERATIVE INTERGOVERNMENTAL
AGREEMENT BETWEEN THE TOWN OF ORO VALLEY AND
PIMA COUNTY FOR THE COMMUNITY DEVELOPMENT
BLOCK GRANT PROGRAM AND HOME INVESTMENT
PARTNERSHIP PROGRAM ; AND DIRECTING THE TOWN
MANAGER, TOWN CLERK, TOWN LEGAL SERVICES
DIRECTOR, OR THEIR DULY AUTHORIZED OFFICERS AND
AGENTS TO TAKE ALL STEPS NECESSARY TO CARRY OUT
THE PURPOSES AND INTENT OF THIS RESOLUTION
WHEREAS, pursuant to A.R.S. §11-952, the Town of Oro Valley and Pima County are
authorized to enter into or renew agreements for joint and cooperative action with other
public agencies; and
WHEREAS, on May 15, 2019, the Town Council approved Resolutio n (R)19-20
authorizing and approving the IGA between the Town of Oro Valley and Pima County
for the Community Development Block Grant Program and Home Investment
Partnership Program; and
WHEREAS, the Town desires that Pima County, as an Urban County, administer and
execute the terms and conditions of the Agreement, subject to local ordinances and state
and federal laws; and
WHEREAS, it is in the best interest of the Town to enter into the cooperative
Intergovernmental Agreement with Pima County for the Community Development Block
Grant Program and Home Investment Partnership Program, attached hereto as Exhibit
“A” and incorporated herein by this reference, to set forth the terms and conditions of the
Agreement.
NOW, THEREFORE BE IT RESOLVED by the Mayo r and Council of the Town of
Oro Valley, that:
SECTION 1. The Intergovernmental Agreement between the Town of Oro Valley and
Pima County, attached hereto as Exhibit “A”, is hereby authorized and
approved.
SECTION 2. The Mayor and other administrative officials of the Town of Oro Valley
are hereby authorized to take such steps as necessary to execute ,
implement and renew the terms of the Intergovernmental Agreement.
SECTION 3. The Town Manager, Town Clerk, Town Legal Services Director, or their
duly authorized officers and agents are hereby authorized and directed to
take all steps necessary to carry out the purposes and intent of this
resolution.
PASSED AND ADOPTED by the Mayor and Council of the Town of Oro Valley,
Arizona, this 15th day of May, 2019.
TOWN OF ORO VALLEY
____________________________________
Joseph C. Winfield, Mayor
ATTEST: APPROVED AS TO FORM:
_____________________________ ____________________________________
Michael Standish, Town Clerk Tobin Sidles, Legal Services Director
_____________________________ ____________________________________
Date Date
EXHIBIT “A”
Page 1 of 3
Pima County Community Development and Neighborhood Conservation Department
Project: Community Development Block Grant and HOME Investment
Partnership Cooperative Agreement
Contractor: Town of Oro Valley
11000 North La Cañada Drive
Oro Valley, Arizona 85737
Amount: No Cost
Contract No.: CT 16*188
Funding: U.S. Department of Housing and Urban Development
Term: July 1, 2020 to June 30, 2023
DUNS No.: 098039373
Research or Development: Yes No
Federal Contract No.: N/A
Required Match: Yes No Match Amount: N/A
Indirect Cost Rate: Federal NICR de minimis None
Status of Contractor: Subrecipient Contractor
Pima County, a body politic and corporate of the State of Arizona (“County”) and the Town of Oro Valley,
Arizona, a municipal corporation in the State of Arizona (“Town”) entered into the above-referenced
Agreement to acknowledge and comply the requirements established by the U.S. Department of Housing
and Urban Development (“HUD”) for a Cooperative Agreement between jurisdictions of an Urban County.
AMENDMENT TWO
RECITALS
A. County may receive HUD Entitlements including Community Development Block Grant (“CDBG”)
funds from HUD under Title I of the Housing and Community Development Act of 1974, as amended
(Public Law 93-383) (“the Act”) and under the HOME Investment Partnership Program (“HOME”) for
federal fiscal years 2020, 2021, and 2022 (County fiscal years 2021 through 2023).
B. County is currently scheduled to requalify for Urban County program status for federal fiscal years 2020,
2021 and 2022. . As part of the requalifica tion process, County must, prior to July 19, 2019, submit a
copy of the Cooperative Agreement or an amendment to the existing Cooperative Agreement setting
forth the terms and conditions of the use of CDBG, HOME and other applicable HUD funds as an Urban
County.
C. County and Town have an existing Cooperative Agreement (“IGA” or “Agreement”) covering federal
fiscal years 2017, 2018 and 2019.
D. Paragraph 1.2.3 of this Agreement provides that the Agreement may be extended for additional three (3)
year periods.
E. The Parties wish to continue to operate as an Urban County and, therefore, to extend the Agreement
through June 30, 2023 for the next HUD funding program cycle.
Page 2 of 3
NOW THEREFORE, the parties, agree to amend the IGA as follows:
1. SECTION 1.0 -- TERM, EXTENSIONS AND AMENDMENTS, is amended as follows:
1.1. Paragraph 1.1 is amended :
1.1.1. To extend the term of the Agreement through June 30, 2023. :
1.1.2. The last sentence is amended to read:
This Agreement covers CDBG and HOME funding for federal fiscal years 2017
through 2022.
2. SECTION 6.0 – COMPLIANCE WITH LAWS, paragraph 6.3.3 is amended to read:
Lobbying to influence the outcome of any election or the award of any federal contract, grant, loan or
cooperative agreement (see Federal Standard Form LLL, “Disclosure of Lobbying Activities);
REMAINDER OF PAGE INTENTIONALLY LEFT BLANK
Page 3 of 3
3. SECTION 12.0, NOTICE, is amended to change the contact information as follows :
County: Town:
Daniel Tylutki, Interim Director
Pima County Community Development and
Neighborhood Conservation
2797 East Ajo Way
Tucson, Arizona 85713
Mary Jacobs, Town Manager
Town of Oro Valley
11000 North La Cañada Drive
Oro Valley, Arizona 85737
All other provisions of the Agreement, not specifically changed by this amendment, shall remain in effect
and be binding upon the parties.
The effective date of this amendment is July 1, 2020.
THIS AGREEMENT MAY BE EXECUTED IN COUNTPARTS
PIMA COUNTY TOWN OF ORO VALLEY
Chairman, Board of Supervisors Joe Winfield, Mayor
Date: Date: ________________
ATTEST ATTEST
__________________________________
Clerk of the Board Date Town Clerk Date
APPROVED AS TO CONTENT:
Director, Community Development
and Neighborhood Conservation
The foregoing amendment to the Intergovernmental Agreement between Pima County and the Town of Oro
Valley has been reviewed pursuant to A.R.S. § 11 -952 by the undersigned Deputy County Attorney and the
Town of Oro Valley Attorney, who have determined that it is in the proper form and is within the powers and
authority granted under the laws of the State of Arizona to those parties to the Agreement represented by
Pima County and Town of Oro Valley.
The undersigned Deputy County Attorney reaffirms the statements set forth in the “Opinion of Deputy County
Attorney” attached to the original Agreement executed by Pima County on June 21, 2016 .
Karen S. Friar, Deputy County Attorney Town Attorney
BOARD OF SUPERVISORS AGENDA ITEM REPORT
CONTRACTS/AWARDS/GRANTS
Requested Board Meeting Date: 6/21/2016
ContractorNendor Name: Town of Oro Valley
(OBA):
Project Title/Description:
or Procurement Director Award D
Community Development Block Grant (CDBG) and HOME Investment Partnership Cooperative Agreement.
U.S. Department of Housing and Urban Development (HUD) Urban County Program .
Purpose:
This tri-annual agreement allows Town to participate in the Urban County Program with Rima County to
administer and manage HUD entitlement funded programs and projects in lieu of applying for limited State of
Arizona HUD resourses . Agreement also also County to program HUD funds in Town boundries as
appropriate .
Procurement Method:
NIA
Program Goals/Predicted Outcomes:
Management and administering of available HUD resources in direct cooperation with Town. Predicted
outcomes include projects and programs that directly address eligible homelessness, affordable housing, and
community development activities.
Public Benefit:
Town's participation in Urban County Program allows respective population and demographic data to be
incorporated Pima County's formula for entitlement funding effectively increasing amount of funds available for
Town and Countywide uses .
Metrics Available to Measure Performance:
Number of eligible persons and communities assisted with entitlement funds as reported in Pima County's
Consolidated Annual Reporting & Evaluation Report (CAPER) to HUD .
Retroactive:
No
Original lnfonnation
Document Type : CTN Department Code: CD Contract# (i.e ., 15-123): 16000000000000000188
Effective Date : 7/1/2016 Termination Date: S/30/2019 Prior Contract Number (Synergen/CMS):
D Expense Amount: $0
Funding Source(s): N/A
Cost to Pima County General Fund: 0
Contract is fully or partially funded with Federal Funds?
Were insurance or indemnity clauses modified?
Vendor is using a Social Security Number?
D Revenue Amount: $0
0Yes i;gJNo 0Not Applicable to Grant Awards
0Yes 1:8:1No 0Not Applicable to Grant Awards
0Yes 1:8:1No 0Not Applical:!>le to Grant Awards
If Yes, attach the required form per Administrative Procedure 22-73.
Amendment lnfonnation
Document T e: De artment Code:
Amendment No .:
Effective Date :
0Expense 0Revenue Olncrease 0Decrease
Funding Source(s):
Cost to Pima County General Fund : $
Contact: Daniel Tylutki , Program Manager
AMS Version No .:
New Terminatic>n Date:
Amount This Amendment:
Department: Commun ity Development & Neighborhood -conservation Telephone : 724-6754
Department Director Signature/Date: ~ --c;,, /4,.,J_
Deputy County Administrator Signature/D: ___ 6 ___ ~ ________ ___.::;b_-,,_~~,1'-'~=-----
County Administrator Signature/Date:
(Required for Board Agenda/Addendum Items)
•
!! ::'\.
ContradNo:l'1N'· t<> .. 1,·1 r t ~18 ---.
, T • ,
Thi $ iunbermust~onllWi_.. .............. ..
' J~IMA COUNTY C OMMUNITY DEVELOPMENT AND
NEIGHBORHOOD CONSERVATION DEPARTMENT
Program/Project Na me: Community Dev elopment Block Grant and HOME Investment Partnership
Cooperative· Agreement
Awardee: Town of Oro Valley
11000 N. La Cafiada Drive
Oro Valley, AZ 85737
DUNS No.: 098039373
Contract Term: July 1, 2016 -June 30, 2019
Amount: No Cost
Funding: U.S. Department of Housing and Urban Development
Federal Contract No N I A
Award Date: N I A
This Intergovernmenta 1 Agreement ("IGA " or "Agreement") is entered into by and between Pima County, a
rate of the State of Arizona ("County") and the Town of Oro Valley, AZ , a municipal
of Arizona ("Town ") to acknowledge and comply the requirements established by the
ousing and Urban Development ("HUD ") for a Cooperative Agreement between
body politic and corpo
corporation in the State
U.S . Department ofH
jurisdictions of an Urb an County .
A .
B.
c.
D.
E.
F.
RECITALS
County may receiv e HUD Entitlements including Community Development Block Grant ("CDBG") funds
itle I of the Housing and Community Development Act of 1974 , as amended (Public
Act") and under the HOME Investment Partnership Program ("HOME") for federal
2018, and 2019.
from HUD under T
Law 93-383) ("the
fiscal years 2017,
With cooperation o fTown and other incorporated jurisdictions within Pima County, County receives and
se CDBG, HOME and other applicable HUD funds as an Urban County and must , agrees to utilize the
therefore , enter int o a Cooperative Agreement for undertaking activities using such funds .
County and Town
cooperative action
may contract for services and enter into agreements with one another for joint or
pursuant to A .R.S. § 11-951 et seq .
Both County and Town are authorized by law to engage in affordable housing and community
development activi ties. J
The Pima County
interests of their re
Board of Supervisors and the Oro Valley Town Council both find that it is in the best
sidents, to enter into this IGA to engage in CDBG and HOME affordable housing and
pment activities pursuant to the provisions of this IGA . community develo
Pima County is de signated as an Urban County and will act as the sponsoring agency to administer and
ms and conditions of the CDBG and HOME grants in accordance with applicable
ocal laws .
implement the ter
federal , state and 1
108963 I 00371480 I v6 Page I of7
.. . '
NOW THEREFORE, COUNTY and Town, pursuant to the abo ve , and in consideration of the matters and
things hereinafter set forth , do mutually agree as follows:
1.0 TERM, EXTENSIONS AND AMENDMENTS
1.1 This Agreement, will commence on July I, 2016 and will terminate on June 30, 2019 , unless sooner
terminated or further extended pursuant to the provisions of this Agreement. This Agreement covers
CDBG and HOME funding for federal fiscal years 2017, 2018 and 2019.
1.2 This Agreement may be amended to extend the term in order to :
1.2.1 Complete activities funded , but not completed ;
1.2.2 Expend Program Income ("PI") received , but not ex pended prior to the termination date; or
1.2.3 To continue the Agreement for additional three (3) year periods.
1.3 Any modification or extension of the contract termination date must be by formal written amendment
executed by the parties hereto.
1.4 Any amendments to the Agreement must be approved by the County before any serv ices under the
amendment commences.
1.5 The terms of this Agreement will survi ve and remain in effect during any period that Town has control
over CDBG or HOME funds , including program income.
1.6 The parties agree that full y executed amendment(s) to this IGA will be entered into a s requ ired or
necessary to:
1.6.1 Implement a detailed and formulated comprehensive plan and program for CDBG and HOME
activities ;
1.6 .2 Comply with any grant agreement received from HUD ;
1.6 .3 Comply with the regulations issued pursuant to the Act;
1.6.4 To meet the requirements for Cooperative Agreements set forth in the Urban County
Qualification Notice applicable for the year in which the next qualification of the Urban County
is scheduled.
2.0 SCOPE OF SERVICES
2.1 Urban County. The parties acknowledge and agree that Pima County is an Urban County as established
in the Urban County Qualification Notice. A s recipient of the CDBG and HOME funds on behal f of the
Urban County, County is the designated sponsoring agency.
2.2 County obligations. County will perform activities required of a sponsoring agency, including, but not
limited to:
2 .2. l Administer and implement the CDBG and HOME programs for both County and Town ;
2.2.2 Assume full responsibility for:
2.2.2.1 The execution of any grant agreement received pursuant to the Community
Development and Housing Consolidated Plan approved pursuant to 24 CFR Part 91
("the Consolidated Plan")
2.2.2.2 The execution of the housing and community de velopment programs ;
2 .2 .2.3 Performance pursuant to the Con solidated Plan ;
2 .2 .2.4 Ensuring the Town takes actions necessary for accomplishment of the community
development program ; and
2.2.2.5 Meeting applicable federal legislation and regulations and state and local laws.
108963 I 00371480 I v6 Page 2 of7
'' ''
2.2.3 Assume all the obligation of applicant for:
2.2.3.1 Assistance under the Act and any subsequent amendments ;
2.2.3.2 Three-year certifications as required by HUD; and
2.2 .3.3 The Consolidated Plan .
2 .2.4 Plan and undertake community development projects in unincorporated Pima County and within
the boundaries of the Town of Oro Valley ;
2.2.5 In consultation with Town and other participating jurisdictions, prepare the Consolidated Plans
as required by HUD; and
2.2 .6 Prepare the required amendment(s) to the IGA , as set forth in paragraph 1.6 and pro v ide to Town
for execution.
2.3 Town Obligations.
2.3 .1 As part of the Urban County, Town agrees that County is delegated the power to plan and
undertake community development projects within its jurisdiction and that County w ill have the
final responsibility for selecting all CDBG and HOME projects in accordance with the approved
Con solidated Plan.
2 .3.2 Pursuant to 24 CFR §570.50l(b), Town is subject to the same requirements applicable to
subrecipients, including the requirement for a written agreement set forth in 24 CFR § 570.503
2.3.3 Upon execution of this IGA, Town will:
2.3.3. l Not appl y for CDBG funds from the State of Arizona Small Cities Program ;
2.3.3.2 Not participate in a HOME consortium , except through the Urban County during the
period in which it is participating in the Urban County 's CDBG Program ;
2.3.3.3 Fully cooperate with County in all CDBG and HOME efforts under this IGA ;
2.3 .3.4 Assist County in doing and all things required or appropriate to comply with the
provisions of any grant agreement received by County pursuant to the Act and its
regulations ;
2.3.3 .5 Undertake , or assist in undertaking, community renewal and low-and moderate-
income housing assistance activities if, at any time , County lacks authori ty to perform
such an activity within the Town 's boundaries ; and
2.3.3.6 Not take any actions to impede County 's compliance with the Urban County Fair
Housing Certification.
2.4 Mutual Obligations .
2.4.1 The primary objective of Title I of the Act is to develop v iable urban communities by providing
decent housing and suitable living environments and expanding opportunities . These efforts will
principally be accomplished for the benefit of persons of low-and moderate-income , as defined
by HUD.
2.4 .2 Town and County cooperate in undertaking community renewal and low-and moderate-income
housing assistance activities , specifically urban renewal and publicly assisted housing in
qualifying areas.
2.4 .3 Consolidated Plan. To qualify for funds under the Act, a Consolidated Plan must be submitted to
and approved by HUD .
2.4.3.l Town and County will cooperate in the development of the required Consolidate Plans
for submission to HUD.
108963 I 00371480 I v6 Page 3 of7
...
2.4 .3 .2 Town and County agree to abide by the terms and conditions of an y approved
Consolidated Plan for housing and community development activities as submitted to
HUD .
2.4.3.3 Neither Town nor County will have the power to veto or otherwise restrict or withhold
the support given by County or Town to the activities proposed in the Consolidated
Plan for any program year covered by this IGA.
2.4.4 Civil Rights Demonstrations. Within their respective jurisdictions , Town and County:
2.4.4.1 Have adopted and are enforcing policies prohibiting the use of excessive force by law
enforcement agencies against any individuals engaged in non-violent civil rights
demonstrations ; and
2.4.4.2 Have a policy of enforcing applicable State and local laws against physically barring
entrance to or exit from a facility or location which is the subject of such non-violent
civil rights demonstrations.
2.5 Failure by either party to adopt an amendment to this Agreement incorporating all changes necessary to
meet the requirements for Cooperation Agreements set forth in the Urban County Qualification Notice
applicable for the year in which the next qualification of the Urban County is scheduled will
automaticall y terminate this Agreement following the expenditure of all CDBG and HOME funds
allocated for use in Town's jurisdiction.
3.0 FUNDING
3 .1 The terms of this IGA will apply to Town if, and only if, Town requests and receives CDBG or
HOME funding awarded to the Urban County for activities within the boundaries of Town under
the terms of this IGA.
3.2 In the event that Town does not comply with a federal prerequisite in order for funds to be expended in
its jurisdiction, Town 's share will be allocated by County to other entities who qualify under the
provisions of the Act.
3.3 County will not provide CDBG or HOME funds to T own, if Town does not affirmatively further fair
housing within its own jurisdiction.
3.4 Nothing in this IGA will be construed as limiting in any manner the powers of either party to initiate and
complete a local project within its respective jurisdiction with its own funds.
4.0 INSURANCE
Town and County will maintain commercial general liability -occurrence form , automobile liability, and
worker 's compensation and employer's liability insurance , or be self-insured , in amounts sufficient to cover
any claims, whether or not due to negligence , which may arise in the performance of the activitie s set forth in
this IGA .
5.0 INDEMNIFICATION
Each party (as Indemnitor) agrees to indemnify, defend and hold harmless the other party (as Indemnitee)
from and against any and all claims, losses, liability, costs or expenses (including reasonable attorney's fees)
(hereinafter collectively referred to as "claims") arising out of bodily injury of any person (including death) or
property damage , but onl y to the extent that such claims which result in vicarious/derivative liability to the
Indemnitee , are caused by the act, omission , negligence , misconduct, or other fault of the Indemnitor, its
officers , agents, employees, or volunteers.
108963 I 00371480 I v6 Page 4 of7
6.0 COMPLIANCE WITH LAWS
6.1 Town and County will carry out all CDBG and HOME funded activities under this IGA in accordance
with all federal, state , and local laws , rules , regulations , standards and Executive Orders, without
limitation to those designated within this Agreement. The laws and regulations of the State of Arizona
will govern the rights of the parties, the performance of this Agreement, and any disputes hereunder.
Any action relating to this Agreement must be brought in a court of the State of Arizona in Pima County .
Any changes in the governing laws , rules , and regulations during the terms of this Agreement will apply ,
but do not require an amendment.
6.2 Town and County will comply with the requirements of 24 CFR 570 , including subpart K of these
regulations , except Town does not assume:
6.2 .1 County 's environmental responsibilities described in 24 CFR 570.604 ; and
6.2 .2 County's responsibility for initiating the review process under the provisions of 24 CFR Part 52 .
6.3 Town and County each warrant that CDBG and HOME funds provided or personnel employed in the
administration of the program funded under this Agreement will not be used for:
6.3 .I Political activities ;
6.3.2 Inherently religious activities;
6.3.3 Lobbying;
6 .3.4 Political patronage ; or
6.3.5 Nepotism activities.
6.4 In the administration and management of CDBG and HOME projects undertaken within the Town of
Oro Valley , Town and County will comply with the applicable provisions of:
6.4.1 Title VI of the Civil Rights Act of 1964;
6.4 .2 Fair Housing Act;
6.4.3 Sections 104(b) and 109 of Title I of the Housing and Community Development Act of 1974.
6.4.4 National Environmental Policy Act,
6.4.5 Uniform Relocation Act,
6.4.6 Section 504 of the Rehabilitation Act of 1973 ; and
6.4.7 All rules and regulations applicable to the Acts set forth above.
6.5 Town and County will affirmatively further fair housing within their respective jurisdictions .
6.6 Town will fully cooperate with County, HUD and any other federal agency in the review and
determination of compliance with the above provisions .
7.0 ASSIGNMENT
Neither party will not assign its rights to this Agreement in whole or in part, without prior written approval of
the other party. This IGA will be binding upon the parties hereto , their successors and assignees . Any
assignment of Agreement will be void without the consent of the other party.
8.0 NON-DISCRIMINATION
8.1 Town and County agree to comply with all provisions and requirements of Arizona Executive Order
2009-09 including flow down of all provisions and requirements to any subcontractors.
108963 I 00371480 I v6 Page 5 of7
8.2 ·During the performance of this contract, Town and County will not discriminate against any employee ,
client or any other individual in any way because of that person 's age , race, creed , color, religion , sex ,
disability or national origin.
9.0 AMERICANS WITH DISABILITIES ACT
Town and County will comply w ith all applicable provisions of the Americans with Disabilities Act (Public
Law 101-336, 42 U.S .C. 12101-12213) and all applicable federal regulations under the Act, including 28 CFR
Parts 35 and 36. Failure to do so could result in the termination of this Agreement.
10.0 CANCELLATION FOR CONFLICT OF INTEREST
10.1 This Agreement is subject to cancellation for conflict of interest pursuant to ARS § 38 -511 , the pertinent
provisions of which are incorporated into this Agreement by reference.
10.2 Subrecipient agrees to comply with all applicable conflict of interest provisions contained in Federal
laws and regulations that govern the awarding agency including 24 CFR 84.42 and 570.611.
11.0 NON-APPROPRIATION
Notwithstanding any other provision in this Agreement, this Agreement may be terminated if for any reason ,
there are not sufficient appropriated and available monies for the purpose of maintaining County or other
public entity obligations under this Agreement. In the event of such termination , County will have no further
obligation to Subrecipient, other than for services rendered prior to termination.
12.0 NOTICE
Any notice required or permitted to be given under this Agreement must be in writing and must be served by
delivery or by certified mail upon the other party as follows:
County:
Margaret Kish , Director
Pima County Community Development and
Neighborhood Conservation
2797 E. Ajo Way
Tucson , AZ 85713
13.0 RECORDS
Town:
Greg Caton, Town Manager
Town of Oro Valley
11000 N. La Canada Drive
Oro Valley, AZ 85737
All records of County and of Town related to this IGA, the Consolidated Plan and any projects undertaken
pursuant thereto will, upon reasonable notice , be available for inspection by HUD , County , and/or Town
auditors, during normal business hours.
14.0 REMEDIES
Either party may pursue any remedies provided by law for the breach of this Agreement. No right or remedy is
intended to be exclusive of any other right or remedy and each will be cumulative and in addition to any other
right or remedy existing at law or at equity or by virtue of this Agreement.
15.0 SEVERABILITY
Each provision of this Agreement stands alone, and any provision of this Agreement found to be prohibited by
law will be ineffective to the extent of such prohibition without invalidating the remainder of this Agreement.
108963 I 00371480 I v6 Page 6 of7
. . .
16.0 ENTIRE AGREEMENT
16.1 This document constitutes the entire agreement between the parties pertaining to the subject matter
hereof.
16.2 No verbal agreements or conversations with any officer, agent or employee of County prior to o r after
the ex ecution of this Agreement will affect or modify an y of the terms or obligations contained in an y
documents comprising this Agreement. Any such verbal agreement will be considered as unofficial
information and in no way binding upon County and all prior or contemporaneous agreements and
understandings , oral or written , are hereby superseded and merged herein .
16.3 This Agreement may be modified , amended , altered or extended only by a written amendment signed by
the parties.
IN WITNESS THEREOF, the parties have a ffixed their signatures to this Agreement on the date w ritten
below.
THIS AGREEMENT MAY BE EXECUTED IN COUNTP ARTS
PIMA COUNTY
~ o-v" h1. ~., • .....,
Chair, Board of Supervisors
Date : JUN 2 1 !016
ATTEST
~.
Cler k of the B ~
Date: ~N 2 1 20 16
APPROVED AS T O CONTENT:
(JG, O"j :x;/(
Direct Community Development
and Neighborhood Conservation
TOWN OF ORO VALLEY
Satish Hiremath , Mayor
Date: -------
ATTEST
Town Clerk
The foregoing Intergovernmental Agreement between Pima County and Town of Oro Valley has been
reviewed pursuant to A.R.S. § 11-952 by the undersigned Deputy County Attorney and the Town of Oro
Valle y Attorney , who have determined that it is in proper form and is w ithin the powers and authority granted
under the laws of the State of Arizona to those parties to the Agreement represented by P ima
County and Town of Oro Valley .
PIMA COUNTY: TOWN OF ORO VALLEY:
aren S. Friar, Deputy County Attorney Joe Andrews, Legal Counsel , Town of Oro Valle y
108963 I 00371480 I v6 Page 7 of7
16.0 ENTIRE AGREEMENT
16 .1 This document constitutes the entire agreeme nt between the pati ies pertaining to the s ubj ec t matter
hereof.
16 . 2 No ve rbal agreements or conversations with any officer, agent or employee of County prior to or after
th e execution of thi s Agreement will affect or modify any of th e terms or obligations cont ained in any
documents comprising this Agreement. Any such verbal agreement w ill be considered as unofficial
information and in no way bindin g upon County and all prior or contemporaneous agreements and
understandin gs, oral or written , are her e by superseded and merged herein.
16 .3 This Agreement may be modified, amended, altered or extended only by a written amendment signed by
the parties.
IN WITNESS THEREOF, the partie s have affixed their signatures to this Agreement on th e date written
below.
THIS AGREEMENT MAY
PIMA COUNTY
Chair , Boar d of Supervisors
Date : ____ _
ATTEST
Clerk of the Board
Date : ____ _
APPROVED AS TO CONTENT:
Director, Community Deve lopment
and Neighborhood Conservation
N COUNTPARTS
V'1M cT1f"--. ~
Mayor
1
Date : 2 · Y · 2cJ / C::,
The foregoing Intergovernmental Agreement between Pima County and Town of Oro Valle y has been
reviewed pursuant to A.R. S. § 11-952 by the undersigned Deputy County Attorney and the Town of Oro
Valley Attorney, who have determined that it is in proper form and is within the powers and authority granted
under the laws of the State of Arizon a to tho se parties to the Agree ment represented by Pima
County and Town of Oro Valle y.
PIMA COUNTY:
~'~
FOR Karen S. Friar, Deputy Cow1ty Attorney To ~1',,t 1iP/(ij Jee ARelre" ~. Legal Counsel Town of Oro
Valley
108%3 /0037 1-1 80 '" P~g.e -of'7
OPINION OF DEPUTY COUNTY ATTORNEY
INTERGOVERMENT AL COOPERATIVE AGREEMENT BETWEEN PIMA COUNTY AND TOWN
OF ORO VALLEY FOR THE COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM AND
HOME INVESTMENT PARTNERSHIP PROGRAM
I am an Attorney at Law admitted to practice in the State of Arizona and a duly appointed Deputy County
Attorney for the County of Pima.
I have examined the Intergovernmental Cooperative Agreement between Pima County and the Town of Oro
Valley for the Community Development Block Grant Program and Home Investment Partnership Program
entered into by and between the County of Pima and the Town of Oro Valley , pursuant to Title I of the
Housing and Community Development Act of 1974 , and I am of the opinion that the Agreement has been
duly authorized by the Board of Supervisors of the County of Pima in accordance with State and local legal
requirements.
I am further of the opinion that the names and provisions of the agreement are authorized under state and
local law and that Pima County is authorized to enter into this agreement pursuant to state and local law.
To the best of my knowledge, there is no pending or threatened litigation affecting the implementation of
the Urban Agreement or the ability of the County of Pima to be the applicant for funding as an Urban
County under Title I of the Housing and Community Development Act of 1974, as amended.
108963 I 00371480 I v6
RESOLUTION NO. (R)16-34
A RESOLUTION OF THE MAYOR AND COUNCIL OF THE TOWN OF
ORO VALLEY, ARIZONA AUTHORIZING AND APPROVING OF THE
COOPERATIVE INTERGOVERNMENTAL AGREEMENT BETWEEN
THE TOWN OF ORO VALLEY AND PIMA COUTY FOR THE
COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM AND
HOME INVESTMENT PARTNERSHIP PROGRAM
WHEREAS , pursuant to A.R.S. § 11-952 , The Town of Oro Valley and Pima County are
authorized to enter into or renew agreements for joint and cooperative action with other public
agencies; and
WHEREAS, on July 5, 2013 the Town Council approved Resolution (R)13-49 authorizing and;
and approving the IGA between the Town of Oro Valley and Pima County for the Community
Development Block Grant Program and Home Investment Partnership Program; and
WHEREAS , the Town and Pima County desires to continue to p articipate in the cooperative
Intergov ernmental Agreement to meet the requirements of the Housing and Community
Development Act of 197 4 and subsequent amendments thereof; and
WHEREAS , the Town desires that Pima County, as an Urban County, administer and execute
the terms and conditions of the Agreement, subject to local ordinances and state and federal
laws; and
WHEREAS, it is in the best interest of the Town to enter into the cooperative Intergovernmental
Agreement with Pima County for the Community Development Block Grant Program and Home
Investment Partnership Program, attached hereto as Exhibit "A" and incorporated herein by this
reference, to set forth the terms and conditions of the Agreement.
NO'W, THEREFORE, BE IT RESOLVED BY THE MAYOR AND COUNCIL of the
Town of Oro Valley, Arizona that:
1. The Intergovernmental Agreement between the Town of Oro Valley and Pima
County, attached as Exhibit "A", is hereby authorized and appro v ed.
2. The Mayor or other administrative officials of the Town of Oro Valley are hereby
authorized to take such steps as necessary to execute , implement and renew the terms
of the Intergovernmental Agreement.
PASSED AND ADOPTED b y the Mayor and Town Council of the Town of Oro Valley,
Arizona this 6th day of Jul y, 2016 .
Dr. Satish I. Hiremath, Mayor
Tobin Sidles, Legal Services Director
Date: ~J ..__/i/-+-+-1/~b __
, ' .
EXHIBIT "A"
BOARD OF SUPERVISORS AGENDA ITEM REPORT
CONTRACTS/AWARDS/GRANTS
ContractorNendor Name: Town of Oro Valley
(DBA):
Project Title/Description:
Amendment 1:
9/6/2016,
Requested Board Meeting Date: Addendum
or Procurement Director Award D
Community Development Block Grant (CDBG) and HOME Investment Partnership Cooperative Agreement;
Addition of clarifying language to existing providions, change in term.
Purpose:
The US Department of Housing and Urban Development (HUD) has requested a change in format and for
additonal clarifying language to be inserted to existing provisions. In addition, HUD also requested the term be
adjusted. Other than the term, no significant conditions have changed from the original agreement other than to
provide the following additional clarifications to existing language including, but not limited to: extensions and
amendments, fair housing compliance, and eligible use of funds. This tri-annual agreement, and subseqent
amendment, allows the Town to participate in the Urban County Program with Pima County to administer and
manage HUD entitlement funded programs and projects in lieu of applying for limited State of Arizona HUD
recourses. The agreement also allows the County to program HUD funds in the Town's boundaries as
appropriate.
Procurement Method:
N/A
Program Goals/Predicted Outcomes:
Management and administration of available HUD resources in direct cooperation with the Town. Predicted
outcomes include projects and programs that directly address eligible homelessness, affordable housing, and
community development activities.
Public Benefit:
The Town's participation in the Urban County Program allows respective population and demographic data to
be incorporated into Pima County's formula for entitlement funding effectively increasing the amount of funds
available for the Town and Countywide uses.
Metrics Available to Measure Performance:
Number of eligible persons and communities assisted with entitlement funds as reported in Pima County's
Consolidated Annual Reporting & Evaluation Report (CAPER) to HUD.
Retroactive:
No
Original Information
Document Type : Department Code: Contract Number (i.e.,15-123):
Effective Date : Termination Date : Prior Contract Number (Synergen/CMS):
D Expense Amount: D Revenue Amount: $
Funding Source(s):
Cost to Pima County General Fund :
Contract is fully or partially funded with Federal Funds? 0Yes 0No 0Not Applicable to Grant Awards
Were insurance or indemnity clauses modified? DYes 0No 0Not Applicable to Grant Awards
Vendor is using a Social Security Number? DYes DNo DNot Applicable to Grant Awards
If Yes , attach the required form per Administrative Procedure 22-73 .
Amendment Information
Document Type: CTN
Amendment No .: 1
Department Code: CD Contract Number (i.e ., 15-123): 16000000000000000188
Effective Date : 7/01/2017
DExpense DRevenue Dlncrease DDecrease
Funding Source(s): NIA
Cost to Pima County General Fund : N/A
AMS Version No .: 2
New Terminat ion Date : 6/30/2020
Amount This Amendment: $ 0.00
Contact: Denise Sauer, Contract Specialist 4-2772 / Daniel Tylutki , Program Manager 724-6754
Department:
Department Director Signature/Date :
Deputy County Administrator Signature/Date:
County Administrator Signature/Date :
(Required for Board Agenda/Addendum Items)
Telephone: 724-6754
Contract No: t!JJ ~t' 0:Lk -llf5 Amendment No: ..... 4~Y--
PIMA COUNTY COMMUNITY DEVE~lliBSf CIIUI caJIIPGlldlnClanddocunenlS pertaining to this contract
NEIGHBORHOOD CONSERVATION DEPARTMENT
Program/Project Name: Community Development Block Grant and HOME Investment
Partnership Cooperative Agreement
Awardee: Town of Oro Valley
11000 N. La Canada Drive
Oro Valley, AZ 85737
DUNS No.: 098039373
Contract Term: July 1, 2017 -June 30, 2020
Amount: No Cost
Funding: U.S. Department of Housing and Urban Development
Federal Contract No. NIA
Award Date: NIA
Pima County Contract No. CTN-CD-16* 188
Pima County, a body politic and corporate of the State of Arizona ("County") and the Town of Oro Valley, AZ, a
municipal corporation in the State of Arizona ("Town") entered into the above-referenced Agreement to
acknowledge and comply the requirements established by the U.S. Department of Housing and Urban
Development ("HUD") for a Cooperative Agreement between jurisdictions of an Urban County.
AMENDMENT ONE
RECITALS
A. On June 21, 2016, County and Town submitted the Intergovernmental Agreement ("IGA" or "Agreement")
to HUD seeking approval as an Urban County for receipt of Communi1¥-De\l.elopment Block Grant
("CDBG") and HOME Investment Partnership Program ("HOME") funds for federal fiscal years 2017,
2018 and 2019.
B . HUD reviewed the Agreement and did not approve the Agreement as written and executed by County and
Town.
C. In order to receive HUD approval of the Agreement and, therefore , receive funding as an Urban County, it
is necessary to amend the Agreement to include specific language requested by HUD.
NOW, THEREFORE, the parties agree to amend the IGA as follows:
1. SECTION 1.0, TERM, EXTENSIONS AND AMENDMENTS, is amended as follows:
I . I . Paragraph 1.1 is amended to change the term of the Agreement:
FROM: July 1, 2016 through June 30, 2019
TO: July 1, 20 I 7 through June 30, 2020
] 08963 / 00400703 / V ]
1 .2. Paragraph 1.5 is deleted in its entirety and replaced with the following:
This Agreement will remain in full force and effect until the CDBG and/or HOME funds, and
program income received (with respect to activities carried out during the three-year term of this
Agreement, and any successive qualification periods) are expended and the funded activities
completed. Neither County nor Town may terminate or withdraw from this Agreement while it
remains in effect.
1.3. Paragraph 1.3 is amended to add:
Periodically, statutory or regulatory changes may require the Parties to amend this Agreement to
add new provisions. The Parties may draft a separate amendment to this Agreement to include the
new provision(s) rather than drafting a new cooperation agreement that contains the new provisions.
2. SECTION 2.0, SCOPE OF SERVICES, Paragraph 2.4.5 is added to read:
2.4.5. Town and County agree to:
2.4.5.1. Cooperate to undertake, or assist in undertaking, community renewal and lower-income
housing assistance activities;
2.4.5.2. Take all actions necessary to assure compliance with the urban county's certification
under section l 04(b) of Title I of the Housing and Community Development Act of 1974,
as amended, regarding Title VI of the Civil Rights Act of I 964, the Fair Housing Act, and
affirmatively furthering fair housing; and
2.4.5.3. Comply with Section I 09 of Title I of the Housing and Community Development Act of
1 974, which incorporates Section 504 of the Rehabilitation Act of 1973 and the Age
Discrimination Act of 1975.
3. SECTION 3.0, FUNDING is amended as follows:
3.1 Paragraph 3.5 is added to read:
3.5 CDBG or HOME funds provided to the urban county may not be used for activities in, or in
support of, any cooperation unit of general local government that does not affirmatively
further fair housing within its own jurisdiction or that impedes the county's actions to comply
with the county's fair housing certification. Failure to comply with this provision may
provide cause for funding sanctions or other remedial actions by HUD.
3.2 Paragraph 3.6 is added to read:
3.6 Town may not sell, trade, or otherwise transfer all or any portion of such funds to another
such metropolitan city, urban county, unit of general local government, or Indian tribe, or insular
area that directly or indirectly receives CDBG funds in exchange for any other funds, credits or non-
Federal considerations. CDBG funds must be used for activities eligible under title I of the Act (see
Consolidated and Further Continuing Appropriations Act, 2015, Pub.L. 113-235).
REMAINDER OF PAGE INTENTIONALLY LEFT BLANK
l 08963 I 00400703 I v l
•
4. SECTION 11.0, NON-APPROPRIATION, is amended to change "Notwithstanding any other provision
in this Agreement" in the first sentence to read;
"Except as provided in Paragraph 1.5,"
All other provisions of the Agreement, not specifically changed by this amendment, shall remain in effect
and be binding upon the parties.
TIDS AGREEMENT MAY BE EXECUTED IN COUNTPARTS
PIMA COUNTY
Chair, Board of Supervisors
Date: ___ _
ATTEST
Clerk of the Board
Date: ----
APPROVED AS TO CONTENT:
Director, Community Development
and Neighborhood Conservation
APPROVED AS TO FORM:
Karen S. Friar, Deputy County Attorney
108963 I 00400703 I v 1
Date: if/£'), /f 6
~-
Zt::; a -ohlit .. .
Tobin Sidles, Legal Services Director
Town of Oro Valley
P ag e: 3 of 3
Town Council Regular Session E.
Meeting Date:05/15/2019
Requested by: Bayer Vella, Community and Economic Development
Submitted By:Hannah Oden, Community and Economic Development
Case Number: 1900554
Information
SUBJECT:
Request for approval regarding Conceptual Architecture for the expansion of Pusch Ridge Christian
Academy, including a new building and addition of a modular building, located east of Oracle Road
between Calle Concordia and Linda Vista Boulevard
RECOMMENDATION:
The Planning and Zoning Commission recommended approval at its May 7, 2019 meeting.
EXECUTIVE SUMMARY:
The purpose of this request is to consider
Conceptual Architecture for the addition of Building
3 and a modular building for Pusch Ridge Christian
Academy. The campus is located east of Oracle
Road between Calle Concordia and Linda Vista
Boulevard as shown on the map to the right.
The proposed buildings use similar architectural and
design features found throughout the existing
campus and conform to previously approved
designs. The modular building is currently located at
Ventana Medical Systems Inc. and will be relocated
to the campus to be re-purposed. Both buildings will
be placed within previously approved building
footprints on a Master Development Plan.
The proposal is in conformance with the Design
Principles and Design Standards of the Zoning
Code. Planning and Zoning Commission
recommended approval at the May 7, 2019 meeting. The staff report provided to Planning and Zoning
Commission is included in Attachment 5.
BACKGROUND OR DETAILED INFORMATION:
Related Approvals
Related Approvals
1980: Development Plan approved
2003: Updated Master Development Plan Approved by Town Council
2003: Revised Master Development Plan Approved, dividing a 40,000 sf classroom building into
two separate buildings
2003: Architecture for a classroom building (Building 2) approved by the Development Review
Board
Existing Site Conditions
Zoning: Private Schools and Churches
Area of the development is 48.17 acres
Soccer, baseball, and football fields
Basketball court
Parking areas
Modular buildings
Classroom Building 2 (18,600 sf)
Multipurpose Building 1 (~52,000 sf)
Proposed Improvements
Construct a new, 20,000 sf classroom building (Building 3)
Placement of an approximately 9,000 sf modular building acquired from Ventana Medical Systems
Inc. on the property
Building 3 will be located adjacent to Building 2 (Attachment 2) on the eastern boundary of the property
and is consistent with the design of existing buildings. The final location of the modular building is
pending, but will be reviewed for conformance with the Zoning Code and indicated on an updated Master
Development Plan.
The following is a list of noteworthy Design Principles in italics followed by staff commentary:
Conceptual Architectural Design Review Principles, Zoning Code
Section 22.9.D.5.b.i: Design: building architectural design shall be appropriate for the climate and characteristics of
the Sonoran Desert, including indigenous and traditional textures, colors, and shapes found in and around Oro
Valley. All development shall maintain and strengthen the high quality of design exemplified in Oro Valley through
project creativity and design excellence.
Building 3 incorporates architectural styles, materials, and colors found in the Oro Valley area and
compliments the existing buildings and overall style of the campus, particularly Building 2 which has a
complimentary design (Attachment 1). Brick and corrugated metal canopies and accents can be found on
Building 2, which are also incorporated into the design for Building 3. Both buildings will share a covered
plaza between the main entryways to create a cohesive design. The extension of the canopy over this
plaza is included as part of the proposal (Attachment 1).
The modular building is already built and is currently located at Ventana Medical Systems Inc. The
building will be relocated to the Push Ridge Campus and the body and trim will be painted to match the
existing and proposed buildings to compliment the larger campus (Attachment 1).
Section 22.9.D.5.b.ii: Scale, Height and Mass: building scale, height and mass shall be consistent with the
Town-approved intensity of the site, designated scenic corridors, and valued mountain views. Buildings shall be
designed to respect the scale of adjoining areas and should mitigate the negative and functional impacts that arise
from scale, bulk and mass.
The height of the proposed Building 3 (19 feet 4 inches) and modular (approximately 18 feet) comply with
the Town Zoning Code, which permits buildings up to 24 feet tall. Building 3 is proposed at the eastern
property boundary that abuts National Forest Service land and will have little to no visual impact from
adjacent properties or roadways. All mechanical equipment, such as air conditioning units, will be
mounted on the roof and fully screened by the parapet. The mass of Building 3 mirrors that of Building 2
and is within the approved square footage indicted on the Development Plan approved in 2003
(Attachment 3).
When a final location for the modular building is determined, it will be indicated on a revised development
plan and will be reviewed for conformance with all applicable Zoning Code standards for the district.
Section 22.9.D.5.b.iii: Facade Articulation: all building facades shall be fully articulated, including variation in
building massing, roof planes, wall planes, and surface articulation. Architectural elements including, but not limited
to, overhangs, trellises, projections, awnings, insets, material, and texture shall be used to create visual interest that
contributes to a building’s character.
Building 3 incorporates varied massing and roof lines along all facades, including trim along the roof line.
The split face masonry block along the base of the building adds interest and texture, while the metal
screening that covers the downspouts provide an architectural feature that helps to break up the east,
north, and west elevations. Entryways will be inset and covered, and all windows will be inset to improve
energy conservation. The south elevation depicts the main entrance, and a metal canopy overhangs
most of the facade, providing articulation to the building.
The proposed paint changes to the modular building will define the trim and help articulate the building
facades.
Design Standards Analysis
The proposed Building 3 is in conformance with the Design Standards found in Addendum A of the Town
Zoning Code. The design provides four sided architecture, articulated facades, roof lines with the use of
parapets, and a varied material and color pallette. The mass of Building 3 is also minimized by using
insets, varied wall planes, and the use of the split face masonry block as an architectural element at the
base of the building. The overall design of the building compliments the existing color, massing, and
materials of existing structures at Pusch Ridge Christian Academy.
As previously stated, the modular building is an existing structure currently at Ventana Medical Systems
Inc. The body and trim will be painted to match the existing and proposed buildings to compliment the
surrounding area. The modular includes windows on all four facades, which help break up the mass of
the building.
Summary and Recommendation
This proposal has been reviewed for conformance with both the Design Principles and Design Standards
of the Zoning Code. Planning and Zoning Commission has found that the request complies with the
review criteria and recommended approval at the May 7, 2019 meeting.
FISCAL IMPACT:
N/A
SUGGESTED MOTION:
I MOVE to APPROVE the Conceptual Architecture for the proposed Building 3 and the addition of a modular
building at Pusch Ridge Christian Academy, based on the findings that the request complies with the Design
Principles and Design Standards of the Zoning Code.
OR
I MOVE to DENY the Conceptual Architecture for the proposed Building 3 and the addition of a modular building at
Pusch Ridge Christian Academy, based on a finding that ____________.
Pusch Ridge Christian Academy, based on a finding that ____________.
Attachments
Attachment 1: Applicant Submittal
Attachment 2: Updated Development Plan for Building 3
Attachment 3: Approved 2003 Master Development Plan
Attachment 4: Proposed Site Plan for Building 3
Attachment 5: Planning and Zoning Commission Staff Report 5.7.19
Planning & Zoning Commission AGENDA ITEM: 2.
Meeting Date:05/07/2019
Requested by: Bayer Vella, Community and Economic Development
Case Number: 1900554
SUBJECT:
DISCUSSION AND POSSIBLE ACTION ON A REQUEST FOR CONCEPTUAL ARCHITECTURE FOR THE
EXPANSION OF PUSCH RIDGE CHRISTIAN ACADEMY, INCLUDING A NEW BUILDING AND ADDITION OF A
MODULAR BUILDING, LOCATED EAST OF ORACLE ROAD BETWEEN CALLE CONCORDIA AND LINDA
VISTA BOULEVARD, 1900554
RECOMMENDATION:
Staff recommends approval of the conceptual architecture for the expansion of Pusch Ridge Christian Academy as
shown in Attachment 1.
EXECUTIVE SUMMARY:
The purpose of this request is to consider Conceptual
Architecture for the addition of Building 3 and a modular
building for Pusch Ridge Christian Academy. The campus
is located east of Oracle Road between Calle Concordia
and Linda Vista Boulevard as shown on the map to the
right.
The proposed two buildings use similar architectural and
design features found throughout the existing campus
and conform to previously approved designs. The
modular one is currently located at Ventana Medical
Systems Inc. and will be relocated to the campus to be
re-purposed.
The proposal is in conformance with the Design
Principles and Design Standards of the Zoning Code and
staff recommends approval.
BACKGROUND OR DETAILED INFORMATION:
Related Approvals
1980: Development Plan approved
2003: Updated Master Development Plan Approved by Town Council
2003: Revised Master Development Plan Approved, dividing a 40,000 sf classroom building into two separate
buildings
2003: Architecture for a classroom building (Building 2) approved by the Development Review Board
Existing Site Conditions
Zoning: Private Schools and Churches
Area of the development is 48.17 acres
Soccer, baseball, and football fields
Basketball court
Parking areas
Modular buildings
Multipurpose Building 1 (~52,000 sf)
Classroom Building 2 (18,600 sf)
Proposed Improvements
Construct a new 20,000 sf classroom building (Building 3)
Placement of an approximately 9,000 sf modular building acquired from Ventana Medical Systems Inc. on
the property
Proposed Building 3 will be located adjacent to Building 2 (Attachment 2) on the eastern boundary of the property
and conforms to the design of existing buildings. The final location of the modular building is pending, but will be
reviewed for conformance with the Zoning Code and indicated on an updated Master Development Plan.
The following is a list of noteworthy Design Principles in italics followed by staff commentary:
Conceptual Architectural Design Review Principles, Zoning Code
Section 22.9.D.5.b.i: Design: building architectural design shall be appropriate for the climate and characteristics of
the Sonoran Desert, including indigenous and traditional textures, colors, and shapes found in and around Oro
Valley. All development shall maintain and strengthen the high quality of design exemplified in Oro Valley through
project creativity and design excellence.
Building 3 incorporates architectural styles, materials, and colors found in the Oro Valley area and compliments the
existing buildings and overall style of the campus, particularly Building 2 which has a complimentary design
(Attachment 1). Brick and corrugated metal canopies and accents can be found on Building 2, which are also
incorporated into the design for Building 3. Both buildings will share a covered plaza between the main entryways to
create a cohesive design. The extension of the canopy over this plaza is included as part of the proposal
(Attachment 1).
The modular building is already built and is currently located at Ventana Medical Systems Inc. The building will be
relocated to the Push Ridge Campus and the body and trim will be painted to match the existing and proposed
buildings to compliment the larger campus (Attachment 1).
Section 22.9.D.5.b.ii: Scale, Height and Mass: building scale, height and mass shall be consistent with the
Town-approved intensity of the site, designated scenic corridors, and valued mountain views. Buildings shall be
designed to respect the scale of adjoining areas and should mitigate the negative and functional impacts that arise
from scale, bulk and mass.
The height of the proposed Building 3 (19 feet 4 inches) and modular (approximately 18 feet) comply with the Town
Zoning Code, which permits buildings up to 24 feet tall. Building 3 is proposed at the eastern property boundary that
abuts National Forest Service land and will have little to no visual impact from adjacent properties or roadways. All
mechanical equipment, such as air conditioning units, will be mounted on the roof and fully screened by the
parapet. The mass of Building 3 mirrors that of Building 2 and is within the approved square footage indicted on the
Development Plan approved in 2003 (Attachment 3).
When a final location for the modular building is determined, it will be indicated on a revised development plan and
will be reviewed for conformance with all applicable Zoning Code standards for the district.
Section 22.9.D.5.b.iii: Facade Articulation: all building facades shall be fully articulated, including variation in
building massing, roof planes, wall planes, and surface articulation. Architectural elements including, but not limited
to, overhangs, trellises, projections, awnings, insets, material, and texture shall be used to create visual interest that
contributes to a building’s character.
Building 3 incorporates varied massing and roof lines along all facades, including trim along the roof line. The split
face masonry block along the base of the building adds interest and texture, while the metal screening that covers
the downspouts provide an architectural feature that helps to break up the east, north, and west elevations.
Entryways will be inset and covered, and all windows will be inset to improve energy conservation. The south
elevation depicts the main entrance, and a metal canopy overhangs most of the facade, providing articulation to the
building.
The proposed paint changes to the modular building will define the trim and assist in articulating the building
facades.
Design Standards Analysis
The proposed Building 3 is in conformance with the Design Standards found in Addendum A of the Town Zoning
Code by providing four sided architecture, articulated facades, roof lines with the use of parapets, and a varied
material and color pallette. The mass of Building 3 is also minimized by using insets, varied wall planes, and the use
of the split face masonry block as an architectural element at the base of the building. The overall design of the
building compliments the existing color, massing, and materials of existing structures at Pusch Ridge Christian
Academy.
As previously stated, the modular building is an existing structure currently at Ventana Medical Systems Inc. The
body and trim will be painted to match the existing and proposed buildings to compliment the surrounding area. The
modular includes windows on all four facades, which help break up the mass of the building.
Summary and Recommendation
This proposal has been reviewed for conformance with both the Design Principles and Design Standards of the
Zoning Code. Staff has found that the request complies with the review criteria and recommends approval.
FISCAL IMPACT:
N/A
SUGGESTED MOTION:
I MOVE to recommend approval of the Conceptual Architecture for the proposed Building 3 and the addition of a
modular building at Pusch Ridge Christian Academy, based on the findings that the request complies with the
Design Principles and Design Standards of the Zoning Code.
OR
I MOVE to recommend denial of the Conceptual Architecture for the proposed Building 3 and the addition of
a modular building at Pusch Ridge Christian Academy, based on a finding that ____________.
Attachments
Attachment 1: Applicant Submittal
Attachment 2: Updated Development Plan for Building 3
Attachment 3: Approved 2003 Master Development Plan
Town Council Regular Session 1.
Meeting Date:05/15/2019
Requested by: Bayer Vella
Submitted By:Michael Spaeth, Community and Economic Development
Department:Community and Economic Development
Information
SUBJECT:
PUBLIC HEARING: ORDINANCE NO. (O)19-04, DISCUSSION AND POSSIBLE ACTION REGARDING A
PROPOSED ZONING AMENDMENT TO THE ORO VALLEY TOWN CENTRE PLANNED AREA DEVELOPMENT,
LOCATED NEAR THE NORTHEAST CORNER OF ORACLE ROAD AND PUSCH VIEW LANE
RECOMMENDATION:
This item (Attachment 1) was continued during the March 6, 2019 Town Council meeting. The Town Council staff
report and meeting minutes are provided in Attachments 2 and 3, respectively.
The Planning and Zoning Commission has recommended approval of the applicant's request.
EXECUTIVE SUMMARY:
The purpose of this item is to consider the applicant's revised zoning amendment (Attachment 1) for the Oro Valley
Town Center Planned Area Development (PAD), located near the northeast corner of Oracle Road and Pusch View
Lane (see image at right).
The proposal was continued by Town Council during the March
6, 2019 public hearing to provide the applicant time to address a
number of questions and concerns raised during the meeting.
The questions and concerns included:
Percentage of open space
Grading
Side-yard setbacks and distance between homes
Recreation Area
Erosion
Oracle Road Scenic Corridor Overlay District (ORSCOD)
exemptions
Walkability
Adding the uses and design of Area 3 to the discussion
Trails
Noise
View impacts
The applicant has since met with Town Staff and revised the
proposal to address many of the topics raised during the public hearing. The proposed revisions are substantive;
however, they do not represent "significant" changes, as defined in the Section 22.3.E.2.b. of the Zoning Code.
Therefore, the application does not require reconsideration by the Planning and Zoning Commission. A summary
of the proposed changes is listed below:
Reduced the total number of lots from 82 to 77
Increased the variety of lot sizes:
Previously 2 lot sizes:
6,000 sq. ft.
7,200 sq. ft.
Currently 4 lot sizes:
6,000 sq. ft.
6,600 sq. ft.
7,200 sq. ft.
7,800 sq. ft. (nearest existing neighbors)
Increased the side-yard setbacks for 80% of the subdivision (61 lots) to 7.5 feet. The remaining 20% (16 lots)
will have 5-foot setbacks
Reduced the amount of proposed "fill," in the portion of the subdivision nearest to Oracle Road, to no more
than 8 feet which is in conformance with the Zoning Code
Repositioned the main access road to reduce the extent of the required cut to a hillside
Eliminated 2 street segments to increase the amount of open space preserved
Moved the recreation area to a less visible and sloped area to increase the functionality and help minimize
impacts to neighbors
Moved 2 lots to a portion of the previous recreation area location
Incorporated additional trail connections to improve pedestrian connectivity
Increased the amount of vegetation along Oracle Road
Repositioned lots near Oracle Road to minimize any visual impacts
Increased the buffer for a portion of the homes along the south property line, near the El Conquistador Patio
Home development, to help minimize the visibility of the lots
Provided two noise studies (Attachment 5) detailing the current level of noise as well as anticipated noise
levels in the future. The proposed project meets both standards set by the Housing and Urban Development
Department (HUD) and Arizona Department of Transportation (ADOT) for acceptable noise levels.
The applicant has provided a narrative describing the revisions and specific responses to Town Council members
questions or concerns, which is included in Attachment 4.
BACKGROUND OR DETAILED INFORMATION:
The purpose of this item is to consider the applicant's revised zoning amendment (Attachment 1) for the Oro Valley
Town Center Planned Area Development (PAD), located near the northeast corner of Oracle Road and Pusch View
Lane.
The proposal was continued by Town Council during the March 6, 2019 public hearing to provide the applicant time
to address a number of questions and concerns raised during the meeting. The questions and concerns are listed
below, followed by a brief summary of how the applicant has revised the submittal to address the concern.
Percentage of open space - There was a desire to see the currently required open space percentage (~75%
in Area 4) maintained. The applicant has increased the proposed percentage of open space from 70%
(66.4 acres) to 72% (68.6 acres) by
Removing 5 lots
Eliminating two street segments located parallel and adjacent to Oracle Road and along the south
property line
1.
Grading - Concerns were raised regarding the amount of proposed fill (dirt brought to the site to raise the
grade of the lots) and cuts (dirt removed to lower the grade of lots). This was addressed by the following
actions:
Reducing the proposed fill to no more than 8 feet in the portion of the subdivision nearest to Oracle
Road. This meets zoning code requirements.
Removed several lots with large cuts and raised the level of several other lots in the eastern portion of
the site to decrease the extent of proposed cuts. The previous plan had 23 lots with average cuts of 8
feet or more. The applicant's revised plan has reduced that number to 14.
2.
Side-yard setbacks and distance between homes - There was a concern that an insufficient amount of space
was being provided between homes in the areas established by side-yard setbacks. To increase the
separation between homes, the applicant:
Increased the side-yard setback to 7.5 feet on all lots 6,600 sq. ft. or larger (61 lots). The remainder (16
lots) will have 5 foot side-yard setbacks.
Incorporated additional lot sizes. There are now 4 lot sizes that range from 6,000 sq. ft. to 7,800 sq. ft.
3.
Recreation Area - Questions were raised regarding the highly visible location of the recreation area and the
potential limits on it's functionality as a result. Additionally, there were concerns regarding the utility of the
proposed "butterfly garden." To address each, the applicant:
Moved the recreation area to a less visible (from neighbors) location which will allow for a better variety
of possible amenities.
Proposed amenities now include a play structure for children, turf area, picnic bench and ramada.
Incorporated additional trail connectivity into the subdivision design.
4.
Erosion - There was a concern regarding existing and future erosion as the site is characterized by significant
hillsides. Town Code requires specific infrastructure improvements to address existing and potential future
erosion issues. The design of these improvements are thoroughly evaluated by staff during the construction
document review process and are regularly inspected during and after construction to ensure the
improvement is safe and functioning as expected.
5.
Oracle Road Scenic Corridor Overlay District (ORSCOD) exemptions - Additional detail was requested. The
existing Oro Valley Town Centre PAD includes the following 5 exemptions:
6.
Building heights
Setbacks from Oracle Road
Native Plant/Landscaping requirements
Floor-area-ratio (FAR)
Free-standing building pads
Only 3 (building heights, setbacks along Oracle Road and Native Plant/Landscaping requirements) apply to
Area 4. The applicant has revised the plan to comply with all ORSCOD requirements.
Walkability - Concerns were raised regarding the steep grade of the streets and the potential impact to
pedestrians.
The streets must be in conformance with the Town's adopted Subdivision Streets standards. These
standards establish acceptable limits on road grades and take into account any anticipated impacts to
pedestrians and bicyclists'.
The applicant has proposed road grades where 90% of the subdivision will be at or below 8%, well
within the acceptable limits established by the Town's adopted standards. The remaining 10% has
road grades between 8% and 12%, and meets Town standards.
7.
Permitted Uses in PAD - There was a desire to include Area 3 in the discussion to consider the range of
permitted uses and design. The applicant has chosen to limit the extent of their request to only Area 4
8.
Trails - There was a concern that trails were not connected and needed "destinations." To address this
concern, the applicant has included additional trails connecting to the existing trail network and sidewalk
system in the area ensuring all trails have a destination (See page 31 of Attachment 1).
9.
Noise - Concerns were raised regarding the existing and future noise impacts on the property. The applicant
has provided two noise studies specific to the property.
The first measures a 24-hour period and generates an average noise level (Ldn), which is measured
against a Housing and Urban Design (HUD) standard. The highest measurement (for those lots nearest
Oracle Road) was 34.2 Ldn, which is below the acceptable interior noise limit of 45 Ldn established by
HUD.
The second measures "peak" (e.g. rush hour) noise levels (Leq) and is measured against the Arizona
Department of Transportation (ADOT) standard. Again, the highest measurement for those lots closest
to Oracle Road was 58.6 Leq, below the acceptable level established by ADOT of 66 Leq.
10.
View impacts - There was a concern that the view impacts from Oracle Road were not sufficiently understood
or mitigated. The applicant has addressed this concern as follows:
Provided a viewshed analysis (see pages 42-48 of Attachment 1)
Provided additional landscaping along Oracle Road to again, help minimize any visual impacts of the
subdivision. The removal of the road segment parallel to Oracle Road will result in additional
undisturbed open space. Further, the enhanced landscaping with additional trees, shrubs and
understory will result in a continuous tree canopy along the street frontage.
11.
Removed the parallel street adjacent to Oracle Road which will remain primarily undisturbed. The only
disturbance in this area will be a future sewer connection.
Reduced the amount of proposed fill on the portion of the subdivision nearest Oracle Road, lowering
the final grade of the homes
The applicant has provided a narrative describing the revisions and specific responses to Town Council members
questions or concerns (Attachment 4).
For comparison, the previous (top) and revised (bottom) site plans are shown in the images below:
Previous
Proposed
The proposed changes include:
Reduced the total number of lots from 82 to 77. Lots were removed near both Oracle Road and existing
neighbors.
Increased the variety of lot sizes:
Previously 2 lot sizes:
6,000 sq. ft. - 39 lots
7,200 sq. ft. - 43 lots
Currently 4 lot sizes (see image above and page 35 of Attachment 1 for color coding of individual lots):
6,000 sq. ft. - 16 lots
6,600 sq. ft. - 15 lots
7,200 sq. ft. - 6 lots
7,800 sq. ft. - 40 lots (nearest existing neighbors)
Increased the side-yard setbacks for 80% of the subdivision (61 lots) to 7.5 feet. The remaining 20% (16 lots)
will have 5-foot setbacks.
Reduced the amount of proposed "fill", in the portion of the subdivision nearest to Oracle Road, to no more
than 8 feet in conformance with the Zoning Code
Repositioned the main access road to reduce the extent of the required cut to a hillside
Eliminated several streets to increase the amount of open space preserved
Moved the recreation area to a less visible area to increase the functionality and help minimize impacts to
neighbors.
Moved 2 lots to a portion of the previous recreation area location
Incorporated additional trail connections to improve pedestrian connectivity
Increased the amount of vegetation along Oracle Road. The removal of the road segment parallel to Oracle
Road will result in additional undisturbed open space. Further, the enhanced landscaping with additional
trees, shrubs and understory will result in a continuous tree canopy along the street frontage.
Repositioned lots near Oracle Road to minimize any visual impacts
Increased the buffer for a portion of the homes along the south property line, near the El Conquistador Patio
Home development, to help minimize the visibility of the lots
Provided two noise studies (Attachment 5) detailing the current level of noise as well as anticipated noise
levels in the future. The first study measured overall noise for the property (over a 24-hour period) and
provides the average based on a Housing and Urban Development (HUD) standard (Ldn). The acceptable
interior noise level established by HUD is 45 Ldn. The maximum measurement for the property is 34.2 Ldn
(for lots closest to Oracle Road), which meets the standard set by HUD. The second study measured noise
during the peak hour (e.g. rush hour) and provides a measurement based on a Arizona Department of
Transportation (ADOT) standard (Leq). The acceptable level established by ADOT is 66 Leq. The
measurement for the closest lots to Oracle Road is 58.6 Leq which meets the standard set by ADOT.
FISCAL IMPACT:
N/A
SUGGESTED MOTION:
I MOVE to APPROVE Ordinance No. (O)19-04, authorizing and approving the proposed amendment to the Oro
Valley Town Center, based on a finding it is in conformance with the General Plan and all applicable zoning
requirements.
OR
I MOVE to DENY Ordinance No. (O)19-04, authorizing and approving the proposed amendment, based on a finding
that _____________________.
Attachments
(O)19-04
ATTACHMENT 2 - TOWN COUNCIL STAFF REPORT 3.6.2019
ATTACHMENT 3 - TOWN COUNCIL MEETING MINUTES 3.6.2019
ATTACHMENT 4 - APPLICANT'S RESPONSE TO QUESTIONS
ATTACHMENT 5 - ACOUSTIC STUDIES
Town Council Regular SessionItem # 1. Meeting Date:03/06/2019Submitted By:Michael Spaeth, Community and Economic DevelopmentCase Number: OV1801569InformationSUBJECT:PUBLIC HEARING: ORDINANCE NO. (O)19-04, DISCUSSION AND POSSIBLE ACTION REGARDING A PROPOSED ZONINGAMENDMENT TO THE ORO VALLEY TOWN CENTRE PLANNED AREA DEVELOPMENT, LOCATED NEAR THE NORTHEAST CORNER OFORACLE ROAD AND PUSCH VIEW LANERECOMMENDATION:The Planning and Zoning Commission recommends approval.EXECUTIVE SUMMARY:The purpose of this item is to consider a proposed amendment (Attachment 1) to the Oro Valley Town Centre Planned Area Development (PAD)zoning located near the northeast corner of Oracle Road and Pusch View Lane (see image atright). The Oro Valley Town Centre PAD zoning was established in 2001 as a future town center andmixed-use development along Oracle Road. The PAD includes 4 areas (see Attachment 2) rangingfrom commercial (Area 2) to residential (Area 4), including mixed-use areas (Areas 1 and 3).In 2012, the plan was modified by Town Council to reflect changes in the market at that time withamendments primarily focused on Area 1 (permitted apartments) and Area 3 (eliminated much ofthe mixed-use integration requirements). Area 4 remained strictly single-family residential andopen space (75% of the area) with one access point to Oracle Road at the existing Pusch ViewLane bridge. The applicant's request is to again, "modify the plan to reflect current market demand." Theapplicant's proposal includes a number of changes in Area 4 (none in Areas 1, 2 or 3). Key
elements of those changes to Area 4 include:Increasing the number of lots from 65 to 82 while maintaining a similar development footprintLimiting all homes to single-storyReducing the minimum lot size from 15,000 sf to 6,000 sfEnhanced landscape buffer yards to minimize visual impactsIncorporating a screen wall along Oracle Road to further minimize visual impacts and lessen road noise for future homeownersMoving the access road to better preserve protected hillsidesThe increase in density is supported by staff because the proposal will:Have a similar development footprint as the current entitlement preserving approximately 70% of the site as open space andprimarily avoiding regulated hillsidesIncorporate larger lot sizes (minimum 6, 000 sq. ft. with an avg. 6,600 sq. ft) than the subdivision with the potential to be mostimpacted by the request, the El Conquistador Patio Homes (minimum of 2,500 sq. ft. with an avg. 4,500 sq. ft.) to the south. Maintain a similar impact to view corridors from Oracle Road and from adjacent neighborhoods by limiting all homes to single-story and incorporating enhanced natural buffer yards to visually screen the proposed homes.Help improve the long-term viability of retail within the areaThe applicant's request is consistent with the Vision, Guiding Principles, Goals and Policies of the Your Voice, Our Future General Plan. The public participation process has been thorough and productive. Two formal neighborhood meetings and 6 informal meetings with neighborswere held to discuss the project and potential compromises. As a result of the outreach process several key agreements were incorporated intoArea 4:Limiting all homes to single-story to diminish the visual impact of the projectMaintaining the previously approved 100-foot natural buffer to the El Conquistador Patio Home development to the southRemoving lots in the most visible portion of the property and shifting others to minimize impactsIncorporating enhanced buffer yards to help serve as a visual screenThe Planning and Zoning Commission considered the request at a public hearing on February 5, 2019. The meeting was well attended with anumber of neighbors in attendance. The primary topics discussed at the meeting are listed below:DensityViews TrafficEnvironment More detail regarding the discussion during the meeting is provided below and the staff report and draft minutes are included as Attachments 3
and 4, respectively. In summary, the proposed changes are an improvement relative to the currently permitted design. A key reason is the plan has incorporated anumber of revisions to address neighbor concerns. As such, the Planning and Zoning Commission recommends approval of the applicant'srequest. BACKGROUND OR DETAILED INFORMATION:A. EXISTING CONDITIONS AND CONTEXTSite ConditionsApproximately 109 - acresAreas 2, 3 and 4 are vacant, however; immediately north of the property, in Area 1, is theSan Dorado Apartments and Shopping CenterCharacterized by regulated hillsides and wash corridors along the eastern portion of thepropertyCurrent entitlement preserves approximately 75% of Area 4 as open spaceLand Use ContextThe subject property has four General Plan Land Use designation (see image at right).In sync with the General Plan, the property is zoned Oro Valley Town Centre Planned Area Development(PAD). The PAD has four development areas (Areas 1 - 4) which include retail, multi-family and single-family residential uses (Attachment 2). Previous Approvals2001: Original Oro Valley Town Centre PAD approved2012: Amendment to PAD approved by Town CouncilB. APPLICANT'S PROPOSALThe applicant's proposal includes changes to Area 4 only. No changes are proposed for Areas 1, 2 or 3 as part of this amendment. The changesto Area 4 requested include the following:Increasing the number of lots from 65 to 82 while maintaining a similar development footprint and preserving approximately70% of the area as permanent open spaceLimiting all homes to single-storyReducing the minimum lot size from 15,000 sf to 6,000 sfEnhanced landscape buffer yards to minimize visual impacts
Incorporating a screen wall along Oracle Road to further minimize visual impacts of the development while also reducing roadnoise for future homeownersMoving the access road to better preserve protected hillsidesThe proposal includes both an increase in density and a corresponding reduction in minimum lot size in Area 4. Staff is supportive of theseproposed changes as the design:Will have a similar development footprint as the existing entitlementIncorporates larger lot sizes (minimum 6,000 sq. ft. with an average 6,600 sq. ft.) than the subdivision most impacted by theproposal, the El Conquistador Patio Homes (minimum 2,500 sq. ft. with an average of 4,500 sq. ft.)Includes enhanced natural buffer yards to help screen the proposed developmentDoes not have any additional view impacts from Oracle Road or to adjacent neighbors;Can help make commercial more viable. C. GENERAL PLAN CONFORMANCE ANALYSISThe proposal has been reviewed for conformance with the Vision, Guiding Principles and Goals and Policies of the Your Voice, Our FutureGeneral Plan. A summary is included below:Vision"Oro Valley strives to be a well-managed community that provides all residents with opportunities for quality living. Oro Valley willkeep its friendly, small-town, neighborly character, while increasing services, employment and recreation. The Town's lifestylecontinues to be defined by a strong sense of community, a high regard for public safety and an extraordinary natural environmentand scenic views".The applicant's proposal is similar to the existing PAD plan, has addressed many of the concerns of neighbors and has incorporated trails andrecreational opportunities for area residents. The request is consistent with the Vision statement. Guiding PrinciplesThe applicant's request is consistent with the following Guiding Principles:"Preserve the scenic beauty and environment""Create a complete community with a broad range of shopping, dining and places to gather""Manage how we grow and maintain high design standards"The applicant's request does not change the mix of uses permitted within the overall PAD which remains a combination of retail, multi-family andsingle-family residential uses. The proposal also preserves a similar percentage of open space and regulated hillsides throughout the site (70%),ensuring the most significant resources are permanently preserved. All future development will have to be consistent with the Town's high qualityDesign Standards.
Goals and PoliciesThe applicant's proposal is consistent with the following Goals and Policies:"Provide diverse land uses that meet the Town's overall needs and effectively transition in scale and density adjacent toneighborhoods""A community with a wide range of services, amenities, shopping and dining opportunities and housing types that meet theneeds of current and future residents""The proactive conservation, protection and restoration of environmentally sensitive lands, natural resource areas and habitatsand lands with high scenic value""A built environment that creatively integrates landscape, architecture, open space and conservation elements to increase asense of place, community interaction and quality of life""Neighborhoods that include access and effective transitions to open space, recreation and schools and that are supported byshopping and services which meet daily needs"The applicant's proposal maintains the range of uses within the PAD which will compliment each other and help ensure the long-term viability ofthe commercial development along Oracle Road. Additionally, the proposed changes maintain a similar percentage of open space and regulatedhillside conservation protecting the most sensitive resources on the site. D. ZONING CODE CONFORMANCE ANALYSISThe applicant's proposal is generally consistent with the applicable requirements of the Zoning Code.Oracle Road Scenic Corridor Overlay District (ORSCOD)The property lies within the Oracle Road Scenic Corridor Overlay District (ORSCOD) though the existing PAD does include several exemptionsfrom these requirements. The applicant's proposal will have a similar or lesser visual impact on the Scenic Corridor compared to the existingentitlement by utilizing a similar footprint and limiting all homes in Area 4 to single-story. Furthermore, the plan incorporates a screen wall alongOracle Road to reduce the visibility of the project and help minimize vehicle road noiseThe applicant's proposal is consistent with both the PAD standards previously established and the applicable sections of the overlay district. Tentative Development PlanAll rezoning applications require a rezoning Tentative Development Plan (TDP) which establishes the future design of the property, including thelot configuration, the circulation network (vehicular, pedestrian and bicycle) and open space areas. The TDP is set as shown in the image below (also in Attachment 5). Any future development applications would have to be in substantialconformance with this specific layout, otherwise additional public meetings will berequired.
The TDP includes the following key elements:82 detached single-family residential lotsMinimum lot sizes range from 6,000 to 7,200 sf Single story restriction on all homesApproximately 70% open space100-foot natural buffer area to existing residential south of the propertyScreen wall along Oracle RoadEnhanced buffer yards in several locations, specifically:Camino Diestro (El Conquistador Patio Homes development) tothe south of the propertyOracle Road to the west of the propertyThe new access road1 access point to Oracle Road at the existing Pusch View Lane bridgeSidewalks and Trails are provided throughout, specifically in the wash along the eastern portion of this Area.The developer will be required to construct improvements to the Pusch View Lane and Oracle Road intersection for access and to increasecapacity to accommodate the new traffic generated by this development. Improvements at the intersection will consist of widening for a new eastbound through lane, reconfiguration of lanes within the east leg of the intersection, re-striping for a new southbound left-turn lane and ADAupgrades at all corners. The applicant's rezoning Tentative Development Plan is consistent with the Oro Valley Town Centre PAD. E. PUBLIC PARTICIPATIONThe following notice has been provided:Notification of all property owners within 600 feetNotification to additional interested parties who signed in at neighborhood meetingsNotification to all Homeowner's AssociationsAdvertisement in The Daily Territorial newspaperPostings on the propertyPostings at Town Hall and on the Town website.Two traditional neighborhood meetings were held regarding the proposed rezoning. In addition, staff and the applicant conducted numerousinformal meetings to discuss the project and potential solutions. The Neighborhood Meeting Summaries have been provided as Attachment 6. Abrief discussion of the key elements discussed at the meetings is provided below.
Visual Impact - Neighbors had concerns regarding the potential visual impacts of the proposed design. In response, the1. applicant was willing to do the following to address neighbor concerns:Height Restriction - The applicant committed to limit all homes within the Area 4 subdivision to single-story. The currententitlement allows both 1 and 2 - story homes. Subdivision design - The initial rezoning application proposed 87 homes within Area 4. The applicant reduced thisnumber to 82 through discussions with neighbors regarding the lots that may have the biggest impact. The applicant alsoagreed to move lots to help minimize any visual impacts.Enhanced Landscaping - The applicant agreed to incorporate enhanced landscaping and additional plantings to serveas a continuous vegetative screen for neighbors, again with the aim of minimizing visual impacts. Water - Neighbors were concerned about future water connections in the El Conquistador Patio Home subdivision south of theproperty. Future connections will be made within existing water easements and will be required to meet all Townrequirements. 2. Environmental Conservation and Grading - The request utilizes essentially the same development envelope or footprint as theexisting entitlement. As such, the proposal will preserve a similar percentage (70% vs. 75%) of open space and regulatedhillsides.3. Staff has received a number of letters regarding the proposed application which have been included as Attachment 7. The applicant's proposal was considered by the Planning and Zoning Commission at a Public Hearing on February 6, 2019. A summary of theprimary topics discussed at the meeting followed by a staff response (in italics) is provided below:Density - A number of residents expressed concern regarding an increase in density and any potential impacts to the area. Staff response: The applicants proposal utilizes a similar development footprint as the existing entitlement and preserves asimilar percentage of open space (70% - proposed) vs. (75% - existing). Furthermore, the minimum lot sizes proposed arelarger than the neighboring property with the most potential to be impacted, the El Conquistador Patio Homesubdivision. Ultimately, the proposed increase in density will not have a more tangible impact on the area than the existingapproved site plan. Views - Numerous questions regarding impacts to the view corridor toward the Catalina Mountains were raised.Staff response: In addition to utilizing a similar development footprint as the existing site plan, the applicant has agreed to limitall homes to single-story. The existing entitlement allows both 1 and 2-story homes. As such, the request will have a similar orlesser impact on view sheds across the property. Traffic - Questions were raised regarding the existing level of traffic on area roads, specifically Oracle Road adjacent to theproperty, and any potential impacts from the proposalStaff response: The applicant's request is expected to marginally increase traffic along Oracle Road (~6%) compared to theexisting plan.
The staff report and draft meeting minutes are included as Attachments 3 and 4, respectively. F. SUMMARY AND RECOMMENDATIONIn summary, there are a number of key factors regarding the proposed rezoning. Those factors include:The request is consistent with the Your Voice, Our Future General Plan and all applicable rezoning requirements.1. The request has larger lot sizes than the neighborhood most impacted by the development, as well as enhanced buffer yards.2. The proposal minimizes visual impacts by limiting all homes to single-story.3. Utilizes a similar development footprint and preserves a comparable percentage of open space and regulated hillsidescompared to the existing design.4. The new access road for Area 4 will have less of an impact on regulated hillsides.5. Considering the aforementioned factors, the Planning and Zoning Commission recommends approval of the applicant's proposal. FISCAL IMPACT:N/ASUGGESTED MOTION:I MOVE to APPROVE Ordinance (O)19-04, authorizing and approving the proposed amendment to the Oro Valley Town Center, based on afinding the request is in conformance with the General Plan and all applicable zoning requirementsOR I MOVE to DENY Ordinance (O)19-04, authorizing and approving the proposed amendment, based on the following______________________________. Attachments(O)19-04 OV Town CenterATTACHMENT 2 - AREA MAPATTACHMENT 3 - 2.6.19 PZC STAFF REPORTATTACHMENT 4 - DRAFT 2.6.19 PZC MEETING MINUTESATTACHMENT 5 - AREA 4 TDPATTACHMENT 6 - NEIGHBORHOOD MEETING SUMMARIESATTACHMENT 7 - NEIGHBORHOOD CORRESPONDENCE
MINUTESORO VALLEY TOWN COUNCILREGULAR SESSIONMarch 6, 2019ORO VALLEY COUNCIL CHAMBERS11000 N. LA CANADA DRIVEREGULAR SESSION AT OR AFTER 6:00 PMCALL TO ORDERMayor Winfield called the meeting to order at 6:01 p.m.ROLL CALLPRESENT:Joseph C. Winfield, MayorMelanie Barrett, Vice MayorJoyce Jones-Ivey, CouncilmemberJosh Nicolson, CouncilmemberRhonda Piña, CouncilmemberBill Rodman, CouncilmemberSteve Solomon, CouncilmemberPLEDGE OF ALLEGIANCEMayor Winfield led the audience in the Pledge of Allegiance. UPCOMING MEETING ANNOUNCEMENTSTown Clerk Mike Standish announced the upcoming Town meetings. COUNCIL REPORTSNo Council reports were received. Town Council Regular Sessionhttp://orovalley.granicus.com/MinutesViewer.php?view_id=9&clip_id=29711 of 85/1/2019, 10:14 AM
MOTION carried, 7-0.C. Resolution No. (R)19-09, authorizing and approving an intergovernmental agreement (IGA) between the Cityof Phoenix Police Department and the Town of Oro Valley Police Department for the Arizona Internet CrimesAgainst Children Task ForceCouncilmember Piña requested additional information regarding internet crimes against children. Lieutenant John Teachout provided further information regarding internet crimes against children. Pina to approve reso 19-09, Barrett 7-0MOTION: A motion was made by Councilmember Piña and seconded by Vice Mayor Barrett to approveResolution No. (R)19-09, authorizing and approving an Intergovernmental Agreement (IGA) between the Cityof Phoenix Police Department and the Town of Oro Valley Police Department for the Arizona Internet CrimesAgainst Children Task Force. MOTION carried, 7-0.REGULAR AGENDA1. PUBLIC HEARING: ORDINANCE NO. (O)19-04, DISCUSSION AND POSSIBLE ACTION REGARDING APROPOSED ZONING AMENDMENT TO THE ORO VALLEY TOWN CENTRE PLANNED AREADEVELOPMENT, LOCATED NEAR THE NORTHEAST CORNER OF ORACLE ROAD AND PUSCH VIEWLANE(O)19-04 OV Town CenterATTACHMENT 2 - AREA MAPATTACHMENT 3 - 2.6.19 PZC STAFF REPORTATTACHMENT 4 - DRAFT 2.6.19 PZC MEETING MINUTESPlanning Manager Bayer Vella started the presentation for item #1 and included the following:- PurposeTown Council Regular Sessionhttp://orovalley.granicus.com/MinutesViewer.php?view_id=9&clip_id=29714 of 85/1/2019, 10:14 AM
- Background - Oro Valley Town Centre PAD- Background - Entitlements Area 4- Applicant's Request- Area 4 - Existing vs. Proposed - Rezoning Request - Review ToolsPublic Works Director and Town Engineer Paul Keesler presented the following regarding item #1:- Environment: Existing vs. Proposed Grading Areas- Environment: Extent of Grading- - Environment: Existing vs. Proposed Grading AreasPublic Works Director and Town Engineer Paul Keesler presented the following regarding item 1:- Environment: Existing vs. Proposed Grading Areas- Environment: Extent of Grading- Environment: Grading MitigationMr. Vella continued the presentation and included the following:- Environment: Open Space and Wildlife Corridors- Views: Oracle Road Scenic Corridor- Views: Proximity of Lots to Oracle Road- Neighborhood Compatibility- Planning and Zoning Commission- Summary and RecommendationSenior Project Manager with WLB Group and representing the applicant, Rob Longaker, provided an overviewof the proposed zoning amendment to the Oro Valley Town Center Planned Area Development, located nearthe northeast corner of Oracle Road and Pusch View Lane and included the following:- Current Site Plan- Open Space and Grading- Transitional Buffering- View Protection and Noise Issues- Recreation Area ConceptTown Council Regular Sessionhttp://orovalley.granicus.com/MinutesViewer.php?view_id=9&clip_id=29715 of 85/1/2019, 10:14 AM
- Lot Size Comparison Exhibit and Compatibility With Surrounding Development- Wildlife Connectivity- Community Outreach- 87 Lot Site Plan Shown at First Neighborhood Meeting in April 2018- Site Plan Shown at Second Neighborhood Meeting in November 2018- Current Site Plan- Site Plan Comparison- Existing Site PlanDiscussion ensued amongst Council and staff regarding item #1.Mayor Winfield opened the public hearing.The following individuals spoke in opposition to item #1.- Oro Valley resident John Mawhinney- Oro Valley resident Tony Beretta- Oro Valley resident Don English- Oro Valley resident Kurt Weiricy- Oro Valley resident Nancy Ward- Oro Valley resident Dan AdamsThe following individuals spoke in support of item #1. - Oro Valley resident and CEO of the Greater Oro Valley Chamber of Commerce - Dave Perry- Oro Valley resident Teri LamourThe following individuals spoke on item #1.- Oro Valley resident Court Hall- Oro Valley resident Mike Gessner - Oro Valley resident Bill Gardner- Oro Valley resident Michael BarckyMayor Winfield closed the public hearing.Director of Land Acquisition and Development for Richmond American Homes, Rick Morris, provided input onitem #1.Town Council Regular Sessionhttp://orovalley.granicus.com/MinutesViewer.php?view_id=9&clip_id=29716 of 85/1/2019, 10:14 AM
Mayor Winfield recessed the meeting at 8:19 p.m.Mayor Winfield reconvened the meeting at 8:31 p.m.Discussion ensued amongst Council and staff regarding item #1.Fire Marshall for Golder Ranch Fire District, Will Loesche, spoke regarding the suggested ingress and egressof the proposed project.Discussion continued amongst Council, staff, Mr. Longaker and Mr. Morris. Continued to april 3rd 4-3MOTION: A motion was made by Mayor Winfield and seconded by Vice Mayor Barrett continue Ordinance No.(O)19-04, authorizing and approving the proposed amendment to the Oro Valley Town Center, to the April 3,2019 Town Council meeting.MOTION carried, 4-3 with Councilmember Piña, Councilmember Rodman, and Councilmember Solomonopposed.2. DISCUSSION AND POSSIBLE ACTION ON A CONCEPTUAL SITE PLAN AND LANDSCAPE PLAN FOR APROPOSED 21 LOT SINGLE-FAMILY RESIDENTIAL SUBDIVISION, LOCATED ON THE NORTHEASTCORNER OF LAMBERT LANE AND SHORE CLIFF DRIVESenior Planner Milini Simms presented item #2 and included the following; - Purpose - Existing Zoning -Conceptual Site and Landscape Plan - Proposed In-Lieu Fee for Rec Area - Public Participation - Summaryand RecommendationDiscussion ensued amongst Council and staff regarding item #2.MELCOR USA Assistant Development Manager, Hugo Blanco, addressed Council questions.The following individual spoke in opposition to item #2:Oro Valley resident Bill BabirDiscussion continued amongst Council, staff and Mr. Blanco regarding item #2.Town Council Regular Sessionhttp://orovalley.granicus.com/MinutesViewer.php?view_id=9&clip_id=29717 of 85/1/2019, 10:14 AM
MOTION: A motion was made by Vice Mayor Barrett and seconded by Councilmember Jones-Ivey to approvethe Conceptual Site Plan and landscape Plan for the proposed 21 lot subdivision on Shore Cliff Drive, findingthe request is in conformance with the Design Principles and applicable Design Standards. MOTION carried, 7-0.3. DISCUSSION AND POSSIBLE ACTION ON RESOLUTION NO. (R)19-10, PROVIDING NOTICE OF INTENTTO INCREASE WATER RATES FOR THE ORO VALLEY WATER UTILITYWater Utility Director Peter Abraham presented item #3 and included the following:- Notice of Intent ot Increase Water Rates- ScheduleMOTION: A motion was made by Councilmember Piña and seconded by Councilmember Jones-Ivey toapprove Resolution No. (R)19-10, providing notice of intent to increase water rates for the Oro Valley WaterUtility. MOTION carried, 7-0.FUTURE AGENDA ITEMSNo future agenda items were requested. CALL TO AUDIENCENo comments were received. ADJOURNMENTMOTION: A motion was made by Vice Mayor Barrett and seconded by Councilmember Piña to adjourn the meetingat 10:56 p.m.MOTION carried, 7-0.Town Council Regular Sessionhttp://orovalley.granicus.com/MinutesViewer.php?view_id=9&clip_id=29718 of 85/1/2019, 10:14 AM
Town Council Regular Session 2.
Meeting Date:05/15/2019
Requested by: Peter Abraham Submitted By:Peter Abraham, Water
Department:Water
Information
SUBJECT:
PUBLIC HEARING: RESOLUTION NO. (R)19-21, AUTHORIZING AND APPROVING AN INCREASE IN WATER
RATES FOR THE TOWN OF ORO VALLEY WATER UTILITY
RECOMMENDATION:
On January 14, 2019, the Water Utility Commission voted to recommend Council approval of the
proposed water rate increase included within the Preferred Financial Scenario. Staff also recommends
Council approval of the rate increase proposed in the Preferred Financial Scenario detailed in the Water
Rates Analysis Report, dated March 2019.
EXECUTIVE SUMMARY:
Pursuant to A.R.S. § 9-511.01, the Town Council adopted a Notice of Intent to increase water rates on
March 6, 2019. The Notice of Intent established a public hearing date for May 15, 2019. The Water
Rates Analysis Report was made available for public review and it was posted on the Town’s website on
March 6, 2019. The Notice of Intent was published in the Daily Territorial on April 17, 2019, thereby
completing the statutory requirements.
The Preferred Financial Scenario in the Water Rates Analysis Report proposes an increase in the
potable water base rates. The financial impact of the proposed rates for a customer with a 5/8-inch meter
is an increase of $1.81 per month. Customers with a 5/8-inch meter represent 87 percent of the total
customer base. The average residential customer uses 7,000 gallons of water monthly and would
experience a 4.6 percent increase in their monthly water bill. The financial impact to all customers may
be found in Appendix B of the Water Rates Analysis Report.
If the proposed rates and fees are approved, they would become effective on July 1, 2019.
BACKGROUND OR DETAILED INFORMATION:
Town Code Section 15-2-6 states the Oro Valley Water Utility shall be a self-supporting utility funded
solely from revenue generated from utility operations. Revenues include water sales, service fees and
interest income. The Utility does not receive any funds from the Town’s General Fund.
In accordance with the Mayor and Town Council Water Policies, Water Utility staff review water rates and
charges on an annual basis. The Oro Valley Water Utility Commission evaluates staff recommendations
based on the water rate analysis to ensure the recommendations meet Town policies and bond
covenants. The Commission voted to recommend the Preferred Financial Scenario in the Water Rates
Analysis Report on January 14, 2019. The Preferred Financial Scenario includes financial projections for
a five-year period; however, the water rates are only approved for the first year of this five-year projection
period.
In 2018, the Utility transitioned from an emphasis on developing commodity rates to developing base
rates based on trends of lower water consumption. The recommended increase to the base rates would
increase the Utility’s fixed cost recovery and ensure revenue stability. The recommended rate increase
for FY 2019-20 is as follows:
Increase in the potable water monthly base rates for all meter sizes
The financial impact of the proposed rates for a customer with a 5/8-inch meter is an increase of $1.81
per month. Since this is a base rate increase only, the increase will be the same for all customers with
this size meter regardless of the volume of water used. Customers with a 5/8-inch meter represent 87
percent of the total customer base and include residential, commercial and irrigation classifications with
the vast majority of those being residential. The average residential customer uses 7,000 gallons of water
monthly and would experience a 4.6 percent increase in their monthly water bill. The financial impact to
all customers may be found in Appendix B of the Water Rates Analysis Report.
The reclaimed base rates and commodity rates will not increase as the reclaimed operating costs are
being met with reclaimed revenues from the existing rates. Likewise, the potable and reclaimed
groundwater preservation fees (GPF) will not increase since the expenses funded with GPF revenue are
being met with revenues collected from the existing GPF rates.
If the proposed rates and fees are approved, they will become effective July 1, 2019.
FISCAL IMPACT:
The proposed rate increases are designed to generate sufficient revenue to meet the revenue
requirements, increase fixed cost recovery, ensure revenue stability and maintain the overall financial
health of the Town’s Water Utility.
SUGGESTED MOTION:
I MOVE to (approve or deny) Resolution No. (R)19-21, authorizing and approving the increase in water
rates for the Town of Oro Valley Water Utility.
Attachments
(R)19-21 Resolution for Rate Increase
Water Rates Analysis Report
RESOLUTION NO. (R)19-21
A RESOLUTION OF THE MAYOR AND COUNCIL OF THE TOWN OF
ORO VALLEY, ARIZONA, AUTHORIZING AND APPROVING AN
INCREASE IN WATER RATES FOR THE TOWN OF ORO VALLEY
WATER UTILITY; AND DIRECTING THE TOWN MANAGER, TOWN
CLERK, TOWN LEGAL SERVICES DIRECTOR, OR THEIR DULY
AUTHORIZED OFFICERS AND AGENTS TO TAKE ALL STEPS
NECESSARY TO CARRY OUT THE PURPOSES AND INTENT OF THIS
RESOLUTION
WHEREAS, pursuant to ARS § 9-511, et seq., the Town has the requisite statutory authority to
acquire, own and maintain a water utility for the benefit of the residents within and without the
Town’s corporate boundaries; and
WHEREAS, pursuant to ARS § 9-511, et seq., the Town finds it necessary to increase water
rates for the Oro Valley Water Utility, which increase is described in Exhibit “A” attached
hereto; and
WHEREAS, on March 6, 2019, Mayor and Council approved Resolution 19-10, providing
Notice of Intent to increase water rates; and
WHEREAS, on May 15, 2019, Mayor and Council held a Public Hearing to deliberate and vote
on the proposed increase in water rates.
NOW, THEREFORE, BE IT RESOLVED by the Mayor and Council of the Town of Oro
Valley, Arizona, that:
SECTION 1. The Oro Valley Water Utility increase in water rates, as described in Exhibit
“A” attached hereto and incorporated herein by this reference, are hereby
authorized and approved.
SECTION 2. The Mayor and other administrative officials of the Town of Oro Valley are
hereby authorized to take such steps as are necessary to implement the increase
in water rates
.
SECTION 3. The Town Manager, Town Clerk, Town Legal Services Director, or their duly
authorized officers and agents are hereby authorized and directed to take all
steps necessary to carry out the purposes and intent of this resolution.
PASSED AND ADOPTED by the Mayor and Council of the Town of Oro Valley, Arizona , this
15th day of May, 2019.
TOWN OF ORO VALLEY
Joseph C. Winfield, Mayor
ATTEST: APPROVED AS TO FORM:
Michael Standish, Town Clerk Tobin Sidles, Legal Services Director
Date: Date:
EXHIBIT “A”
Monthly Base Rates:
Cost per month.
Meter Size Reclaimed Potable
(in inches) Base Rate Base Rate
5/8 $ 14.62 $ 18.26
3/4 $ 21.93 $ 27.38
1 $ 36.54 $ 45.63
1.5 $ 73.08 $ 91.26
2 $ 116.94 $ 146.03
3 $ 233.86 $ 292.03
4 $ 365.41 $ 456.31
6 $ 730.83 $ 912.62
8 $1,169.32 $1,460.19
TOWN OF ORO VALLEY
WATER UTILITY
WATER RATES ANALYSIS REPORT
MARCH 2019
TOWN OF ORO VALLEY
WATER UTILITY
WATER RATES ANALYSIS REPORT
MARCH 2019
ORO VALLEY TOWN COUNCIL
Joseph C. Winfield, Mayor
Melanie Barrett, Vice Mayor
Joyce Jones-Ivey, Council Member
Josh Nicolson, Council Member
Rhonda Piña, Council Member
Bill Rodman, Council Member
Steve Solomon, Council Member
ORO VALLEY WATER UTILITY COMMISSION
Byron McMillian, Chair
Anne Campbell, Vice Chair
Chuck Hollingsworth, Commission Member
Charlie Hurt, Commission Member
Robert Milkey, Commission Member
Rick Reynolds, Commission Member
Winston Tustison, Commission Member
TOWN STAFF
Mary Jacobs, Town Manager
Stacey Lemos, CPA, Chief Financial Officer
Peter A. Abraham, P.E., Water Utility Director
Shirley Kiel, Water Utility Administrator
Danielle Tanner, Senior Office Specialist
TABLE OF CONTENTS
SECTION TITLE PAGE
Index of Appendices
Executive Summary 1
Introduction 3
Growth Rates 4
Water Use Trends 4
Debt Service 5
Debt Service Coverage Requirements 6
Cash Reserve Policy for Operating Fund 7
Operating Fund
Revenue Forecast 8
Revenue Requirements 10
Alternative Water Resources Development Impact Fee Fund 12
Potable Water System Development Impact Fee Fund 13
Preferred Financial Scenario 14
Recommendation on Water Rates, Fees & Charges 16
Conclusion 18
Appendices
INDEX OF APPENDICES
APPENDIX
A. Preferred Financial Scenario Pro Forma
A-1 Operating Fund
A-2 Groundwater Preservation Fee
A-3 Alternative Water Resources Development Impact Fee Fund
A-4 Potable Water System Development Impact Fee Fund
A-5 Summary of all Funds
B. Rate Schedules & Tables for Bill Comparisons
B-1 Proposed Water Rate Schedule
B-2 Tables for Bill Comparisons by Meter Size - Potable
B-8 Tables for Bill Comparisons by Meter Size – Reclaimed
C. 5-Year Capital Improvement Schedules
C-1 Operating Fund
C-2 Groundwater Preservation Fee
C-3 Alternative Water Resources Development Impact Fee Fund
C-3 Potable Water System Development Impact Fee Fund
D. Assumptions for Preferred Financial Scenario
D-1 Operating Fund
D-6 Alternative Water Resources Development Impact Fee Fund
D-7 Potable Water System Development Impact Fee Fund
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TOWN OF ORO VALLEY
WATER UTILITY
WATER RATES ANALYSIS REPORT
MARCH 2019
Executive Summary
An annual review of the revenue requirements and water rates is a critical component in ensuring the
long-term financial health of the Water Utility. Functions of the Oro Valley Water Utility Commission
include reviewing and developing recommendations for water revenue requirements, water rates and fee
structures. The Commission evaluates staff recommendations based on a rates analysis to ensure the
recommendations meet Town policies and bond covenants. Water rates and charges are reviewed
annually in accordance with Mayor and Town Council Water Policies – II.A.2.b(4).
The Utility has based this financial analysis on the American Water Works Associations (AWWA) Cash
Needs Approach. The AWWA is the largest national organization that develops water and wastewater
policies, specifications and rate setting guidelines accepted by both government-owned and private water
and wastewater utilities worldwide.
This Water Rates Analysis Report contains detailed information on the three funds that comprise the Oro
Valley Water Utility:
Operating Fund
Alternative Water Resources Development Impact Fee Fund
Potable Water System Development Impact Fee Fund
Each fund is individually analyzed with regard to revenue and revenue requirements. As an enterprise of
the Town, the Utility generates revenue from rates, fees and charges and does not receive revenue from
taxes or other monies from the General Fund. Additionally, revenue generated by the Utility does not
fund operating costs of any other Town department.
In accordance with policy, the water rates analysis is prepared annually based on the most up-to-date
information available for a five year period. Although the analysis is for five years, any rate increase
considered would be approved only for the first year in the five year projection period.
In the past, emphasis was placed on developing commodity rates that would promote water
conservation. The current tiered rate structure for the commodity rates encourages water conservation as
intended. Because of the decline in water consumption, the emphasis of the rate design has transitioned
to increase the Utility’s fixed cost recovery for revenue stability. This is accomplished over time with
increases to the monthly base rate.
The Water Utility Commission has made a recommendation for a Preferred Financial Scenario. Under the
Preferred Financial Scenario, the Operating Fund is projected to have a cash balance of $4,845,543 at the
end of the five year projection period. This meets the cash reserve requirement. In addition, the debt
service coverage ratio of 1.3 is met or exceeded each year. Operational needs and capital improvements
are included in the analysis. The Preferred Financial Scenario demonstrates a strategic balance between
incurring new debt and a planned use of cash reserves to finance capital projects.
- 2 -
The Preferred Financial Scenario evaluates the impact of future costs and the revenue sources that will be
required to meet those costs. The proposed water rates in the Preferred Financial Scenario will increase
the Utility’s fixed cost recovery. The Water Utility Commission and Water Utility staff have made the
following recommendation on water rates in the Preferred Financial Scenario:
Increase in the potable water base rates in FY 2019-20
Current and proposed monthly base rates for potable water use are provided in Table 1 below:
Table 1
Meter Size Current Proposed Monthly
(in inches) Base Rate Base Rate Increase
5/8 $ 16.45 $ 18.26 $ 1.81
3/4 $ 24.67 $ 27.38 $ 2.71
1 $ 41.11 $ 45.63 $ 4.52
1.5 $ 82.22 $ 91.26 $ 9.04
2 $ 131.56 $ 146.03 $ 14.47
3 $ 263.09 $ 292.03 $ 28.94
4 $ 411.09 $ 456.31 $ 45.22
6 $ 822.18 $ 912.62 $ 90.44
8 $1,315.49 $1,460.19 $144.70
Cost per month.
The financial impact of the proposed rates for a customer with a 5/8-inch meter is an increase of $1.81
per month. Since this is a base rate increase only, the increase will be the same for all customers with this
meter size regardless of the volume of water used. Customers with a 5/8-inch meter represent 87 percent
of the total customer base and include residential, commercial and irrigation classifications with the vast
majority of those being residential.
The potable and reclaimed Groundwater Preservation Fees (GPF) will remain unchanged over the
projection period. The financial analysis illustrates expenses to be funded with GPF revenue are being met
with the existing GPF rates.
The reclaimed base rates and commodity rates are proposed to increase annually beginning in FY 2020-
21. The financial analysis illustrates that a portion of the reclaimed operating costs are being funded with
revenue from the potable water rates in the last four years of the projection period. The rate increases
will reduce the subsidy while continuing to incentivize the use of reclaimed water.
The Preferred Financial Scenario also results in financially sound cash balances in the two development
impact fee funds. In compliance with state statutes, these cash balances will be used to finance capital
projects to meet the demands of new growth.
The Water Utility presents this Water Rates Analysis in support of the proposed rates contained in the
Preferred Financial Scenario. The Oro Valley Water Utility Commission and Water Utility staff respectfully
recommend approval of rate increase detailed in the Preferred Financial Scenario.
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TOWN OF ORO VALLEY
WATER UTILITY
WATER RATES ANALYSIS REPORT
MARCH 2019
Introduction
The Oro Valley Water Utility was established in 1996 as a self-supporting enterprise of the Town. The
Utility is comprised of three separate funds that have been established for specific purposes. The Funds
are as follows:
Operating Fund
Alternative Water Resources Development Impact Fee Fund
Potable Water System Development Impact Fee Fund
The Operating Fund is the primary fund for the Utility. Revenue for this fund includes water sales, service
fees, miscellaneous charges and interest income. The expenses managed from this fund include
personnel, operations and maintenance for both potable and reclaimed water systems, capital costs for
existing potable water system improvements and related debt service. The Utility pays the General Fund
for services received including finance, human resources, fleet services, information technology, legal,
insurance and rental of office space; however, it does not receive revenue from taxes or other payments
from the General Fund. Groundwater Preservation Fee (GPF) revenue and expenses are accounted for
within the Operating Fund but are segregated because GPF revenue is restricted for specific uses. This is
illustrated in Appendix A, Page A-2.
The Alternative Water Resources Development Impact Fee Fund (AWRDIF Fund) was established in 1996
to manage capital expenses related to alternative water resources including reclaimed water and Central
Arizona Project (CAP) water. Revenue for this fund is from impact fees collected at the time water meters
are purchased and from interest income. Expenses include capital repayment obligation charges for the
Town’s CAP allotment, CAP infrastructure and associated debt incurred to deliver CAP water to the Town
to meet the demands of future growth.
The Potable Water System Development Impact Fee Fund (PWSDIF Fund) was established in 1996 to
manage capital expenses related to expansion or growth-related potable water capital projects and
related debt service. Revenue for this fund is from impact fees collected at the time water meters are
purchased and from interest income. Expenses include wells, pump stations, reservoirs and mains for the
potable water system required to meet the demands of future growth.
The revenue and expenses of all three funds are combined to determine if the Utility meets the debt
service coverage requirement established in the Mayor and Town Council Water Policies and current
bond covenants. Otherwise, each fund is independent with regard to revenue and expenses. Pursuant to
Arizona Revised Statute (ARS) 9-463.05 Section B.9., impact fees must be placed in a separate fund and
accounted for separately. ARS 9-463.05 Section B.5. states that the impact fees may not be used for
operations and maintenance of existing facilities. Each impact fee fund is addressed in more detail on
pages 12 and 13 of the report.
- 4 -
Growth Rates
The Utility’s growth rates have fluctuated during the past several years. Figure 1 illustrates the Utility’s
growth of 1,859 new metered connections over the last 10 years. At the end of FY 2017-18 the customer
base totaled 19,924 metered connections.
Figure 1
Throughout the rates analysis process, Utility staff collaborated with other Town staff. In developing the
growth projections, assistance was received from the Community and Economic Development staff who
reviewed the current housing inventory, along with plans that have been submitted for review, to
conservatively estimate future growth. The growth projections used for this analysis were developed early
in 2018 and are shown in the following table.
Table 2
New Metered Connections 2019-20 2020-21 2021-22 2022-23 2023-24
Single Family Residential 387 415 344 227 204
Commercial, Multi-Family, Irrigation 4 4 4 4 4
Water Use Trends
The Utility has experienced a reduction in water use, both potable and reclaimed, over the last 9 years.
Figure 2 illustrates this reduction in total water use from FY 2008-09 through FY 2016-17. The graph
depicts an overall decline in water use even though the Utility experienced growth of 1,859 metered
connections in that same time frame. Water use increased slightly in FY 2017-18. This was largely the
result of the hot, dry weather conditions. During FY 2017-18, a single family residential customer with a
5/8-inch water meter used an average of 7,900 gallons of water per month. The weather conditions in the
current fiscal year are significantly different that last fiscal year. Because of the increased rain and cooler
temperatures, residential water use is trending closer to 7,000 gallons per month in FY 2018-19. For a
conservative approach, the revenue projections in this analysis used water patterns similar to those in FY
2016-17 when the average water use was 7,300 gallons per month which is consistent with prior years.
196
68 61
97
214
165 155
232
340 331
0
50
100
150
200
250
300
350
400
08-09 09-10 10-11 11-12 12-13 13-14 14-15 15-16 16-17 17-18
Annual Growth
- 5 -
Figure 2
The historical decline in water use has been experienced not only on a local level, but also on regional and
national levels. This can be largely attributed to water conservation – both intentional and unintentional.
Intentional water conservation is the conscious effort to reduce water use by commonly known measures
including changing landscape to drought tolerant plants and the removal of lawns. Unintentional water
conservation is a result of plumbing code changes and other regulatory changes regarding water
efficiency. For example, all new water using appliances and fixtures are required to be low flow. The
consumer’s intention may not have been to conserve water when they chose to replace an aging or
broken dishwasher, clothes washer or bathroom faucet.
Debt Service
The current annual debt service obligations are met with revenue generated from water rates, the GPF
and impact fees in the PWSDIF Fund. A summary of the existing debt and the outstanding balances at the
December 31, 2018 are provided in Table 3.
Table 3
3,100
3,026
3,115 3,063
2,948
3,071
2,889 2,929
3,045
3,288
2,800
2,900
3,000
3,100
3,200
3,300
3,400
08-09 09-10 10-11 11-12 12-13 13-14 14-15 15-16 16-17 17-18Gallons in MillionsFiscal Year
Potable & Reclaimed Water Deliveries
Repayment Year Description of Debt Purpose Balance
Water Rates 2009 WIFA Loan Existing Potable System $ 1,381,098
Water Rates 2012 Sr. Lien Bonds – Refinance 2003 Existing Potable System $ 2,676,450
Water Rates 2013 Excise Tax Bonds - Refinance 2003 Existing Potable System $ 1,010,000
Water Rates
Water Rates
2014
2015
WIFA Loan
Excise Tax Bonds – Refinance 2005
AMI Meter Replacement
Land for MOC
$ 3,307,164
$ 985,710
Water Rates 2017 Excise Tax Bonds – Refinance 2007 Existing Potable System $ 11,924,226
Water Rates 2018 Excise Tax Bonds Existing Potable System $ 6,105,000
GPF 2008 WIFA Loan Reclaimed Water System $ 2,390,918
GPF 2012 Sr. Lien Bonds – Refinance 2003 Reclaimed Water System $ 4,878,556
PWSDIF 2012 Sr. Lien Bonds – Refinance 2003 Potable System Expansion $ 1,504,999
Total Debt $ 36,164,121
- 6 -
The Utility will make the final principal payment on the Series 2013 Bonds in the amount of $1,010,000 on
July 1, 2019. These bonds were initially issued in 2003 with an average interest rate of 4.13 percent and
later refinanced in 2013 with an interest rate of 1.45 percent without extending the term of the bonds.
This refinancing resulted in an interest savings of $284,828 to the Utility.
The Town entered into an IGA with Metropolitan Domestic Water Improvement District and the Town of
Marana to construct a recharge, recovery and delivery system known as the NWRRDS project to bring
additional CAP water into the Town. This rates analysis includes an assumption for new debt in the
amount of $10,000,000 in FY 2022-23 to finance portions of the NWRRDS project. The timing of this debt
is dependent on the progress of the project. If the project is delayed, the debt will also be delayed. It is
assumed that the Utility will issue traditional bonds with a 20-year term at a six percent interest rate. The
debt will be repaid with both GPF and Alternative Water Resource Development Impact Fees. Repayment
will be prorated based on the beneficiaries of the projects – existing customers and new development.
Project costs are identified for the NWRRDS project in the five year capital plan shown in Appendix C.
Debt Service Coverage Requirements
The method for calculating the debt service coverage ratio is pursuant to the Town Financial and
Budgetary Policies adopted by the Town Council in 2008. Section C.1 – Debt Capacity, Issuance &
Management states the following with respect to debt service coverage ratios:
“When utility revenues are pledged as debt service payments, the Town will strive to maintain a 1.3 debt
service coverage ratio or the required ratio in the bond indenture (whichever is greater) to ensure debt
coverage in times of revenue fluctuation.”
The Water Utility currently pays debt service on a number of outstanding debt issuances and loans. For
the Series 2012 Senior Lien Water Revenue Bonds, the 2008, 2009 and 2014 Water Infrastructure Finance
Authority (WIFA) Loans, Water Utility revenues are specifically pledged as the repayment source for these
obligations at 1.3 times coverage per the Town’s adopted financial policy.
The remaining outstanding debt obligations of the Water Utility are excise tax pledged obligations
meaning that the Town’s unrestricted sources of sales taxes, fines, permit fees and state shared revenues
are pledged as the repayment sources for these bonds in the bond indentures. Even though the bond
indentures pledge these excise taxes as the repayment source, the Water Utility is responsible to pay for
these debt service payments from water sales revenues. However, since excise taxes are pledged as
coverage, a calculated debt service coverage ratio of 1.0 is applied to avoid double coverage when
calculating the debt service coverage ratio for these excise tax-backed bonds in the water rates analysis.
It is important to note that the bond indentures for the excise tax-backed bonds require that the Town’s
excise tax collections each fiscal year total at least 2.5 times the annual debt service requirements in order
to avoid having to fund a debt service reserve fund. These conditions have been met annually in the past
and are expected to continue in the future. For FY 2017-18 the debt service coverage ratio was 21.97 for
the General Fund which substantially exceeds the 2.5 requirement.
This methodology of segregating the water utility revenue-pledged debt from the excise tax-pledged debt
in the rates analysis process is an accepted practice in the industry and has been reviewed by the Town’s
Finance Director and the Town’s financial advisors with Stifel, Nicolaus & Company, Inc.
- 7 -
The debt service coverage ratio is determined by dividing the annual net operating revenue by the annual
debt service payments. Using the methodology described above is in accordance with the 2008 policy and
reduces the amount of the debt service coverage requirement amount. Applying this methodology has
been key in minimizing water rate increases.
Debt service coverage for the Water Utility’s outstanding senior lien debt issuances and loans in the
Preferred Financial Scenario is shown in Table 4. This includes current and proposed new debt.
Table 4
2019-20 2020-21 2021-22 2022-23 2023-24
Debt Service Coverage 2.77 2.66 2.72 2.40 3.41
Cash Reserve Policy
The cash reserve policy may be found in the Town of Oro Valley Mayor and Council Water Policies Section
II.A.1.d. The policy states “The Utility shall maintain a cash reserve in the Operating Fund of not less than
20% of the combined total of the annual budgeted amounts for personnel, operations and maintenance,
and debt service. This cash reserve amount specifically excludes budgeted amounts for capital projects,
depreciation, amortization and contingency. No cash reserve is required for the water utility impact fee
funds.” In the Preferred Financial Scenario, the projected cash reserve balance for the Operating Fund for
each year in the analysis is listed in Table 5 showing compliance in all years. The projected cash reserve
balances include annual increases in the monthly base rates.
Table 5
Operating Fund 2019-20 2020-21 2021-22 2022-23 2023-24
Cash Reserve Requirement $ 3,190,227 $ 3,057,334 $ 3,044,715 $ 3,101,970 $ 3,088,894
Cash Reserve Balance $ 6,530,572 $ 6,390,768 $ 5,640,186 $ 5,196,379 $ 4,845,543
Cash reserve balances in the Operating Fund are projected to be stable throughout the analysis. This is a
result of strategically balancing the required financing of capital projects with the planned used of cash
reserves. The Utility works diligently to balance the use of cash reserves with the issuance of new debt to
minimize rate increases.
There is no cash reserve requirement for revenue from the GPF because these funds are restricted to pay
for renewable water resources, infrastructure and associated debt. Although accounted for in the
Operating Fund, the GPF cash is segregated from the Operating Fund cash. It would not be fiscally prudent
to combine cash that has a restricted use with cash that has unrestricted use when determining
compliance with a cash reserve policy. Similarly, the expenses paid by GPF revenue are segregated from
the general operating expenses for purposes of calculating the cash reserve requirement. In the Preferred
Financial Scenario, the projected cash reserve balance for the GPF in each year of the analysis is listed in
Table 6.
Table 6
Groundwater Preservation Fees 2019-20 2020-21 2021-22 2022-23 2023-24
Cash Reserve Balance $ 2,796,479 $ 2,826,086 $ 1,902,970 $ 2,304,345 $ 816,726
- 8 -
GPF cash reserve balances are projected to decrease by the end of the five year projection period. This is
a direct result of using the cash to pay for capital projects associated with the delivery of additional CAP
water through the NWRRDS project. The on-going revenue from the GPF will be used to pay future annual
debt service on the portion of capital costs that will be financed. The planned use of GPF cash reserves to
pay NWRRDS project costs will result in the Utility’s ability to reduce future debt for the NWRRDS project
by approximately $6.2 million based on the 2018 estimated construction costs.
Operating Fund
Revenue Forecast
The Operating Fund is projected to have a cash balance of $8,060,642 at the beginning of FY 2019-20 and
is projected to have a balance of $4,845,543 at the end of FY 2023-24. These funds may be used for
operating costs including personnel, operations and maintenance, capital improvements for the existing
potable water system and debt service. Groundwater Preservation Fees are included in the Operating
Fund; however, the revenues, expenses and cash balances for the GPF are accounted for separately
within the Operating Fund. As discussed above, use of GPF funds is restricted to renewable water
resources, infrastructure and associated debt.
The revenue forecast was based on analysis of the Utility’s water use trends for FY 2016-17 and projected
growth in the number of new connections detailed in Table 2 on page 4. The revenue forecast includes
proposed increases in the potable water base rates shown below in Table 7.
Table 7
Base Rates
Potable Water
Current
Rates
Proposed
Rates
Proposed
Rates
Proposed
Rates
Proposed
Rates
Proposed
Rates
Meter Sizes (inches) 2019-20 2020-21 2021-22 2022-23 2023-24
5/8 $ 16.45 $ 18.26 $ 20.09 $ 21.19 $ 22.36 $ 23.59
3/4 $ 24.67 $ 27.38 $ 30.12 $ 31.78 $ 33.53 $ 35.37
1 $ 41.11 $ 45.63 $ 50.20 $ 52.96 $ 55.87 $ 58.94
1.5 $ 82.22 $ 91.26 $ 100.39 $ 105.91 $ 111.74 $ 117.88
2 $ 131.56 $ 146.03 $ 160.63 $ 169.47 $ 178.79 $ 188.62
3 $ 263.09 $ 292.03 $ 321.23 $ 338.90 $ 357.54 $ 377.20
4 $ 411.09 $ 456.31 $ 501.94 $ 529.55 $ 558.67 $ 589.40
6 $ 822.18 $ 912.62 $1,003.88 $1,059.10 $1,117.35 $1,178.80
8 $1,315.49 $1,460.19 $1,606.21 $1,694.56 $1,787.76 $1,886.08
The potable water base rates are projected to increase annually beginning in FY 2019-20. There are no
recommended increases in potable water commodity rates while the Utility continues to focus the rate
design on increase fixed cost recovery. Fixed costs are costs the Utility incurs that do not fluctuate based
on the volume of water sold. Examples of fixed costs include, but are not limited to, debt service,
personnel, billing costs, fleet maintenance and regulatory costs. The current base rates generate a 44
percent fixed cost recovery. The remaining 56 percent of the fixed costs are recovered with revenue
generated from the volume of water sold. Increasing the Utility’s ability to recover fixed costs with fixed
rate revenue or base rates will ensure revenue stability. Water rates dependent on the volume of water
sales to pay for fixed costs can result in revenue volatility.
- 9 -
The reclaimed base rates and commodity rates are proposed to increase from year two through year five
of the projection period as shown in Table 8. The proposed increases will reduce the amount of the
reclaimed operating costs that are subsidized with revenue from potable water rates but will still provide
an incentive to use reclaimed water.
Table 8
Base Rates
Reclaimed Water
Current
Rates
Proposed
Rates
Proposed
Rates
Proposed
Rates
Proposed
Rates
Proposed
Rates
Meter Sizes (inches) 2019-20 2020-21 2021-22 2022-23 2023-24
5/8 $ 14.62 $ 14.62 $ 16.08 $ 17.69 $ 19.46 $ 21.41
3/4 $ 21.93 $ 21.93 $ 24.12 $ 26.54 $ 29.19 $ 32.11
1 $ 36.54 $ 36.54 $ 40.19 $ 44.21 $ 48.63 $ 53.50
1.5 $ 73.08 $ 73.08 $ 80.39 $ 88.43 $ 97.27 $ 107.00
2 $ 116.94 $ 116.94 $ 128.63 $ 141.50 $ 155.65 $ 171.21
3 $ 233.86 $ 233.86 $ 257.25 $ 282.97 $ 311.27 $ 342.39
4 $ 365.41 $ 365.41 $ 401.95 $ 442.15 $ 486.36 $ 535.00
6 $ 730.83 $ 730.83 $ 803.91 $ 884.30 $ 972.73 $1,070.01
8 $1,169.32 $1,169.32 $1,286.25 $1,414.88 $1,556.36 $1,712.00
Commodity Rates
Reclaimed Water
All Usage $ 2.27 $ 2.27 $ 2.28 $ 2.29 $ 2.30 $ 2.31
The potable and reclaimed GPF rates will remain unchanged over the projection period. The financial
analysis illustrates that expenses to be funded with GPF revenue are being met with the existing GPF
rates.
Table 9 provides the water sales and GPF revenue forecast for the five year projection period using the
proposed base rates in Tables 7 and 8. The Utility will be utilizing $684,000 in funds conditionally allocated
to the Town by the Central Arizona Project. The funds are restricted and may only be used for
infrastructure that would provide the Town with water resource reliability. The funds will be used to pay
for NWRRDS project costs.
Table 9
Revenue Source 2019-20 2020-21 2021-22 2022-23 2023-24
Potable Water $12,555,452 $13,284,323 $13,798,350 $14,294,036 $14,787,634
Reclaimed Water $ 1,516,323 1,526,920 1,537,872 1,549,211 1,557,957
Total Water Sales
GPF Revenue
NW Reliability Funds
$14,071,775
$ 2,402,352
$ 684,000
$14,811,243
$ 2,419,133
$15,336,222
$ 2,433,164
$15,843,247
$ 2,442,616
$16,345,591
$ 2,451,153
Other revenue generated by the Utility consists of charges for services. Charges for services include funds
received as a result of an IGA with the Pima County Wastewater Reclamation Department to provide
monthly billing services on their behalf. The IGA was renewed in June 2018 and included an increase in
the amount to be paid to the Water Utility. The IGA is reviewed annually to ensure cost recovery. Charges
for services also include, but are not limited to, new service establishment fees, late fees, reconnection
fees, inspection fees and plan review fees. The total of all charges for services are projected to generate
annual revenue ranging from $748,300 to $757,693.
- 10 -
Projections for interest income are a cumulative total of $1,072,596 over the five year period. The interest
rates assumed for the projection period varied annually and ranged from 2.0% to 2.75%. This interest rate
is consistent with the Town’s financial planning.
Revenue Requirements
Table 10 is a summary of revenue requirements for the Operating Fund that were used in the financial
analysis. These revenue requirements exclude expenses to be paid with GPF revenue.
Table 10
Operating Fund 2019-20 2020-21 2021-
22
2022-23 2023-
24 Expenses
Personnel $ 2,951,761 $ 3,054,981 $ 3,162,068 $ 3,273,181 $ 3,388,482
Operations/Maintenance 2,825,701 2,855,337 2,535,417 2,565,948 2,596,938
Power for Pumping 862,818 879,010 898,096 910,690 920,341
CAP Wheeling Costs 1,777,118 1,872,548 1,926,758 1,983,122 2,041,742
CAP Recharge Costs 1,663,925 1,674,230 1,715,450 1,756,670 1,828,805
Reclaimed Personnel 514,681 532,775 551,552 571,038 591,263
Reclaimed Operations/Maint. 937,534 952,917 968,532 984,378 1,000,464
Reclaimed Power for Pumping 54,513 54,513 59,964 59,964 59,964
Subtotal Expenses $ 11,588,051 $ 11,876,311 $ 11,817,837 $ 12,104,991 $ 12,427,999
Debt Service 4,363,084 3,410,359 3,405,739 3,404,859 3,016,473
Capital Outlay 661,000 661,500 1,844,000 1,736,800 2,141,600
Total Expenses $ 16,612,135 $ 15,948,170 $ 17,067,576 $ 17,246,650 $ 17,586,072
Projected personnel costs include three percent annual merit increases, two and half percent increases in
retirement contributions and five percent annual increases in health care costs. There are no new
employees being added within the five year projection period. These projected increases are consistent
with the General Fund’s financial planning. A portion of the personnel costs have been allocated to the
reclaimed water system. The allocations vary depending on the functions of staff in each division. Five
percent of administrative labor costs are allocated to reclaimed operations while 23 percent of all
operations labor is allocated throughout this analysis.
The projected operations and maintenance (O&M) costs for both the potable and reclaimed water
systems are based on the FY 2018-19 budget and include inflationary increases of one and one half
percent annually. The inflation factors are consistent with the General Fund’s financial planning. The
potable O&M costs include funds in each year to purchase groundwater extinguishment credits to bolster
the Utility’s groundwater allowance account with the Arizona Department of Water Resources. The
reclaimed O&M costs include allocations for various administrative and operational costs. The allocations
were based on the gallons of reclaimed water sold compared to the total gallons of all water sold. The
reclaimed allocations for operations and maintenance represent 23 percent of the total applicable costs.
Power costs for the potable and reclaimed water systems were segregated from the traditional O&M
costs because they are not subject to annual inflationary increases. Tucson Electric Power has historically
increased its pumping rates every four years. In 2017, the power rate increased by 10 percent. Another 10
percent rate increase has been projected in FY 2021-22.
- 11 -
CAP wheeling costs are the fees charged by Tucson Water to wheel Oro Valley’s CAP water through their
recharge and recovery system. The IGA with Tucson Water was renegotiated in FY 2016-17. Based on the
new IGA, costs are assumed to increase annually by seven percent. In FY 2019-20, the Utility will take
delivery of an additional 480 acre feet of CAP water as allowed in the IGA. The total annual delivery of
2,510 acre feet is projected in all five years.
CAP water recharge costs represent costs to take annual delivery of the Utility’s entire CAP water
allotment of 10,305 acre feet. This water will be recharged and stored in various recharge facilities
including the Tucson Water facilities. Costs to take delivery of and store the CAP water are based on the
rate schedule adopted by the Central Arizona Project.
Projected capital outlay for existing system improvements in this analysis includes drilling and equipping
two replacement wells, booster station modifications, water main replacements, fire line backflow
prevention, vehicles and SCADA instrumentation. The schedule for five year capital improvements may be
found in Appendix C.
Debt service costs are significantly reduced after the Series 2013 Bonds are paid in full in July 2019. In
addition, debt service costs gradually decline over the next four years because of the payment structure
defined in the amortization schedule for Series 2012 Bonds.
Table 11 is a summary of revenue requirements paid with GPF revenue that were used in this financial
analysis.
Table 11
Groundwater Preservation Fees 2019-20 2020-21 2021-22 2022-23 2023-24
Expenses
Capital Cost of $6,748 AF of CAP $ 367,766 $ 479,108 $ 489,230 $ 468,986 $ 465,612
Capital Cost for NWRRDS project 1,570,616 546,000 1,509,000 - 2,391,000
Debt Service 1,367,470 1,364,418 1,358,050 1,572,255 1,082,160
Total GPF Expenses $ 3,305,852 $ 2,389,526 $ 3,356,280 $ 2,041,241 $ 3,938,772
Expenses paid with GPF funds include the existing customers’ portion of the CAP water capital costs
associated with ownership of the CAP water allotment. These costs increase annually based on projected
rates developed by the Central Arizona Project. In FY 2018-19, the Utility began incurring costs on the
NWRRDS project. During FY 2018-19 and FY 2019-20, a total of $924,000 in restricted funds will be used to
offset the Utility’s costs of this project. The Central Arizona Project conditionally allocated these funds to
the Utility with the requirement that the funds be used solely for a project that would result in water
reliability. The NWRRDS meets the intent of the Central Arizona Project requirements.
Debt service for the reclaimed water system is paid with GPF funds. Outstanding debt on the reclaimed
water system will be paid in full by July 2029. This analysis includes an assumption that the Utility will
borrow an additional $5 million in FY 2022-23 to complete the existing customers’ portion of the NWRRDS
project which will be repaid with GPF revenue.
- 12 -
Development Impact Fee Funds
Alternative Water Resources Development Impact Fee Fund
The Alternative Water Resources Development Impact Fee Fund (AWRDIF Fund) is projected to have a
cash balance of $8,811,210 at the beginning of FY 2019-20 and is projected to have $2,954,049 at the end
of FY 2023-24. The revenue sources for the AWRDIF Fund are from impact fees collected when a water
meter is purchased and from interest earned on cash balances. Interest income is projected to be a total
of $932,416 for this analysis. The interest rate assumed for the projection period varied annually and
ranged from 2.0% to 2.75%. This interest rate is consistent with the Town’s financial planning.
The revenue forecast was based on new service units related to the number of new connections. A service
unit is the equivalent of one single family residential (SFR) 5/8-inch water meter. The SFR service units are
equal to the number of new connections. Other service units are forecast based on pending development
projects within the Town. Other service units include commercial, multi-family and irrigation uses with the
number of service units depending on the estimated meter sizes for each project.
The impact fee for a SFR 5/8-inch water meter or one service unit is $4,045. It is assumed that the existing
Alternative Water Resources Development Impact Fees will not change during this five year projection
period. Table 12 provides the projected growth in service units and the revenue associated with that
growth. These growth projections are consistent with the Town’s financial planning.
Table 12
Growth / Revenue 2019-20 2020-21 2021-22 2022-23 2023-24
SFR Service Units 387 415 344 227 204
Other Service Units 10 10 10 10 10
Projected Revenue $1,605,865 $1,719,125 $1,431,930 $958,665 $865,630
AWRDIF funds may be used for capital expenses related to CAP water. Capital expenses during this
projection period total $12,721,857 and include the capital costs assessed by the Central Arizona Project
for 3,557 acre feet of our CAP water allotment and design and construction of the NWRRDS project that
will deliver additional CAP water to the Town. These projects are identified in the five year capital
improvement project schedule shown in Appendix C. It is assumed that the Utility will finance $5 million
of the project costs in FY 2022-23. This is in addition to the debt for the existing customers’ portion of the
project. The annual capital expenses and debt service for the AWRDIF Fund are listed in Table 13 below.
Table 13
Expenses 2019-20 2020-21 2021-22 2022-23 2023-24
CAP Capital Charges $ 193,857 $ 252,547 $ 257,883 $ 247,212 $ 245,433
CAP Facilities $ 2,355,923 $ 819,000 $ 2,263,501 $ 3,856,501 $ 2,230,000
Debt Service $ 216,312 $ 432,624
Total Expenses $ 2,549,780 $ 1,071,547 $ 2,521,384 $ 4,320,025 $ 2,908,057
- 13 -
Potable Water System Development Impact Fee Fund
The Potable Water System Development Impact Fee Fund (PWSDIF Fund) is projected to have a cash
balance of $5,707,306 at the beginning of FY 2019-20 and is projected to have $2,394,063 at the end of FY
2023-24. The revenue sources for the PWSDIF Fund are from impact fees collected when a water meter is
purchased and from interest earned on cash balances. Interest income is projected to be a total of
$609,912 for this analysis. The interest rate assumed for the projection period varied annually and ranged
from 2.0% to 2.75%. This interest rate is consistent with the Town’s financial planning.
The revenue forecast was based on new service units related to the number of new connections. A service
unit is the equivalent of one single family residential (SFR) 5/8-inch water meter. The SFR service units are
equal to the number of new connections. Other service units are forecast based on historic trends and
pending development projects within the Town. Other service units include commercial, multi-family and
irrigation uses with the number of service units depending on the meter sizes for each project.
The impact fee for a SFR 5/8-inch water meter or one service unit is $2,015. It is assumed that the existing
Potable Water System Development Impact Fees will not change during this five year projection period.
Table 14 provides the projected growth in service units and the revenue associated with that growth.
These growth projections are consistent with the Town’s financial planning.
Table 14
Growth / Revenue 2019-20 2020-21 2021-22 2022-23 2023-24
SFR Service Units 387 415 344 227 204
Other Service Units 10 10 10 10 10
Projected Revenue $799,955 $856,375 $713,310 $477,555 $431,210
PWSDIF funds may be used for capital expenses related to potable water system improvements including
wells, booster stations, reservoirs and water mains that are required to meet the demands of new
growth. Capital expenses in this analysis total $5,800,000 and include equipping a new well, new water
main installation, property acquisition, construction of a reservoir and booster station to meet demands
of future growth. These projects are identified in the five year capital improvement plan shown in
Appendix C. Debt service for previously constructed growth-related facilities is also paid from revenues
collected from impact fees. There is no new debt projected in this analysis. Table 15 lists all expenses
forecast for the PWSDIF Fund.
Table 15
Expenses 2019-20 2020-21 2021-22 2022-23 2023-24
Debt Service $ 325,996 $ 325,099 $ 323,180 $ 322,578 $ 104,707
Capital Projects 800,000 1,250,000 $ 300,000 $ 1,450,000 $ 2,000,000
Total Expenses $ 1,125,996 $ 1,575,099 $ 623,180 $ 1,772,578 $ 2,104,707
All expenses will be paid for with impact fees collected. Projects will be constructed commensurate with
the timing of new development demands.
- 14 -
Preferred Financial Scenario
Prior to developing forecasts, financial considerations were evaluated relating to projected operating
costs, capital expenses, the Utility’s existing cash reserves, existing outstanding debt and debt service
payments. When developing a Preferred Financial Scenario, the goals of the Utility are to ensure that all
existing rate setting policies are met, cash reserves are utilized to minimize future debt and proposed rate
increases do not result in rate shock. One of the rate setting policies included in the Mayor and Council
Water Policies is for rate structures to be designed to encourage water conservation.
The development of water conservation pricing, also known as a tiered commodity rate, began in 1999
when a second tier was added to the uniform or flat commodity rate. That structure evolved into four
tiers by 2007. Over the last 12 years, the Utility has increased the tiered commodity rates to a level that
encourages water conservation. Having achieved rates that encourage water conservation, the Utility is
continuing to place emphasis on the rate design that will increase fixed cost recovery to ensure revenue
stability.
With the exception of FY 2017-18, Figure 3 illustrates the decline in water deliveries even though the
Utility experienced growth in the customer base. The nine percent increase in water deliveries in FY 2017-
18 is largely due to the extreme weather conditions. Water deliveries for the current fiscal year are
already trending at 10 percent less than last year’s deliveries.
Figure 3
To stabilize revenue when water deliveries decline or fluctuate, it is necessary to increase fixed charge
revenue which is revenue received from base rates. Fixed costs are costs incurred by the Utility that do
not fluctuate based on the volume of water delivered. These costs include, but are not limited to, billing
related costs, regulatory expenses, personnel, debt service, insurance, fleet maintenance and
administrative services paid to the Town’s General Fund. These costs are all incurred every year
regardless of the volume of water delivered. The Utility’s fixed costs projected for FY 2019-20 total $11.5
million. Ideally, these costs would be paid by revenues received from the base rate revenue. Base rates
charged to customers are the same every month regardless of the volume of water delivered. The existing
- 15 -
base rates generate just under $5 million or 44 percent of the fixed costs. As a result, the Utility is
dependent on water sales to generate the revenue needed to recover the remaining fixed costs as well as
the variable costs.
Variable costs are those costs incurred by the Utility that fluctuate based on the volume of water
delivered. If the deliveries decrease, the costs decrease and likewise, if deliveries increase, the costs
increase. Variable costs include, but are not limited to, power for pumping, chemicals for disinfection,
delivery of reclaimed water, CAP water wheeling costs and maintenance on plant facilities. The Utility’s
variable costs projected for FY 2019-20 total $3.7 million. These costs are paid by revenues received from
the variable charge revenue also known as commodity rate revenue. Commodity rates are charged on the
volume of water delivered which varies from customer to customer and from month to month. The
existing commodity rates generate $8.3 million. Funds in excess of the variable costs are used to help pay
for fixed costs.
The Utility’s customer base is not diverse enough to rely so heavily on revenue from commodity rates. To
increase revenue stability, the Utility will need to reduce its dependence on water sales for fixed cost
recovery. This can be accomplished by increasing the monthly base rates. Declining water consumption
has impacted water providers on a regional level. The table below illustrates how regional water providers
have increased their base rates to compensate for the declines in water consumption as compared to the
historical and the 2019 proposed rates for Oro Valley.
Table 16
Year Oro Valley Metro Marana Tucson
2019 18.26 29.50 19.09 16.33
2018 16.45 29.50 19.09 15.00
2017 14.62 29.50 19.09 14.39
2016 14.19 29.50 18.18 12.67
2015 14.19 27.00 17.31 11.90
2014 14.19 22.00 16.18 11.00
2013 14.19 20.00 15.12 9.68
2012 14.19 17.50 15.12 8.27
2011 14.19 17.50 15.12 7.53
2010 14.19 15.03 15.12 5.87
The Water Utility developed a Preferred Financial Scenario that supports key financial and policy goals.
The scenario generates the revenue needed to maintain an adequate cash balance in all funds over the
projected five year period thus meeting the cash reserve requirements in each year. Additionally, the
scenario balances the use of both available cash and proposed new debt to finance capital projects. Under
this scenario, the fixed cost recovery is projected to increase from 44 percent to 48 percent by the end of
FY 2019-20. If all proposed rate increases are implemented as shown in the Preferred Financial Scenario,
fixed cost recovery could increase to approximately 60 percent by the end of FY 2023-24.
The financial projections for the Operating Fund, AWRDIF Fund and the PWSDIF Fund were combined to
evaluate the overall debt service coverage at the end of each fiscal year. Analysis indicates that, under the
Preferred Financial Scenario, the Utility will meet the debt service coverage requirement established by
the Mayor and Council Water Polices and bond covenants for all five years.
The pro forma for the Preferred Financial Scenario may be found in Appendix A. The assumptions used to
develop the financial projections contained in the Preferred Financial Scenario may be found in Appendix
D.
- 16 -
Recommendation on Rates, Fees & Charges
After reviewing the analysis of the three funds and their respective revenue requirements contained in
the Preferred Financial Scenario, the Water Utility Commission and Utility staff recommend the following:
Increase in the potable water monthly base rates in FY 2019-20
There is no recommended increase in the potable water commodity rates. In the past, emphasis was
placed on developing commodity rates that would promote water conservation. The current tiered rate
structure for the commodity rates encourages water conservation as intended. Because of the decline in
water consumption, the continued emphasis of the rate design will be to increase the Utility’s fixed cost
recovery to ensure revenue stability. This will be accomplished with increases to the monthly base rates.
The reclaimed base rates and commodity rates are both proposed to increase beginning in FY 2020-21
through FY 2023-24. The financial analysis illustrates that the current reclaimed rates will not recover the
reclaimed operating costs during those years.
The potable and reclaimed GPF rates will remain unchanged over the projection period. The financial
analysis illustrates that the expenses to be funded with GPF revenue are being met with the existing GPF
rates. The planned use of GPF cash reserves will result in the Utility’s ability to reduce future debt service
for the NWRRDS project by approximately $6.2 million based on the estimated construction costs
attributed to existing customers.
With regard to the recommendation to increase the water rates, the following table shows the proposed
potable water base rates for each meter size. Approximately 87 percent of the Utility’s customers use a
5/8-inch water meter and will see an increase of $1.81 per month regardless of the volume of water they
use.
Table 17
Meter Size Current Proposed Monthly
(in inches) Base Rate Base Rate Increase
5/8 $ 16.45 $ 18.26 $ 1.81
3/4 $ 24.67 $ 27.38 $ 2.71
1 $ 41.11 $ 45.63 $ 4.52
1.5 $ 82.22 $ 91.26 $ 9.04
2 $ 131.56 $ 146.03 $ 14.47
3 $ 263.09 $ 292.03 $ 28.94
4 $ 411.09 $ 456.31 $ 45.22
6 $ 822.18 $ 912.62 $ 90.44
8 $1,315.49 $1,460.19 $144.70
Monthly charge.
Table 18 illustrates Oro Valley’s current and proposed water rates for a customer with a 5/8-inch water
meter. Water rates of other water providers in the region are included for comparison of the base rates
and the cost per 1,000 gallons.
- 17 -
Table 18
Water Provider
Monthly
Base Rate
Tier 1
Tier 2
Tier 3
Tier 4
Tier 5
GPF or Water
Resource Fee
Oro Valley Current $16.45 $2.34 $3.25 $4.53 $6.29 --- $0.90
Oro Valley Proposed $18.26 $2.34 $3.25 $4.53 $6.29 --- $0.90
Metro Water $29.50 $2.75 $4.65 $6.20 $7.25 --- $0.60
Marana Water $19.09 $3.11 $4.33 $5.63 $6.94 $9.97 $0.50
Tucson Water $16.33 $2.77 $5.12 $11.24 $17.33 --- $1.07
Tier rates and GPF are the cost per 1,000 gallons.
Direct comparison of specific base rates and commodity rates is not ideal for cost comparisons because of
the varying rate structures of each utility. A more effective comparison is to calculate the cost for specific
consumption levels for one month. Table 19 provides a calculation of a monthly bill amount for a single
family residential customer with a 5/8-inch meter for the water utilities surrounding the Oro Valley Water
Utility service area. The following bill comparisons include water rates and water resource fees similar to
the Utility’s GPF.
Table 19
Water Provider
Cost for
7,000 Gallons
Cost for
15,000 Gallons
Cost for
25,000 Gallons
Cost for
40,000 Gallons
Oro Valley Current $39.13 $ 72.33 $125.35 $220.88
Oro Valley Proposed $40.94 $ 74.14 $127.16 $222.69
Metro Water $44.70 $ 84.80 $152.30 $270.05
Marana Water $44.36 $ 79.34 $134.14 $239.19
Tucson Water $47.32 $119.80 $258.19 $533.61
Table 20 illustrates the financial impact to customers with varying meter sizes based on monthly water
use for specific customer classifications. These charges are for Oro Valley Water Utility customers and
include the base rates, commodity rates and groundwater preservation fees.
Table 20
Classification Meter Size
(inches)
Water Use
(gallons) Current Bill Proposed Bill Increase
SF Residential 5/8 7,000 $ 39.13 $ 40.94 $ 1.81
SF Residential 5/8 15,000 $ 72.33 $ 74.14 $ 1.81
Irrigation 5/8 25,000 $ 125.35 $127.16 $ 1.81
Commercial 5/8 40,000 $ 146.05 $147.86 $ 1.81
Irrigation 1 27,000 $ 137.69 $142.21 $ 4.52
Commercial 2 57,000 $ 316.24 $330.71 $ 14.47
MF Residential 4 700,000 $ 2,679.09 $ 2,724.31 $ 45.22
Turf – Potable 4 4,000,000 $13,371.09 $13,416.31 $ 45.22
Commercial 6 6,000,000 $20,262.18 $20,352.62 $ 90.44
- 18 -
Proposed rates for all Oro Valley Water Utility meter sizes may be found in Appendix B. Tables that
calculate monthly bills under the proposed rates may also be found in Appendix B. Monthly bill amounts
are calculated in 1,000 gallon increments for the 5/8-inch meters and a variety of increments for larger
meter sizes.
Conclusion
Each year the water rates analysis is prepared based on the most up-to-date information available.
Operational needs and capital improvement requirements change annually and are carefully evaluated
when they are included in the analysis. It is important that the Utility perform a water rates analysis every
year to plan for changes in debt service, operating or capital costs.
This Water Rates Analysis Report is presented in support of the proposed water rates contained in the
Preferred Financial Scenario. The Oro Valley Water Utility Commission and the Water Utility staff
respectfully recommend approval of the water rates detailed in the Preferred Financial Scenario.
The Oro Valley Water Utility staff and Commission are dedicated to serving the Town of Oro Valley and
the customers of its water utility and extend their appreciation to the Mayor and Council for
consideration of the proposed water rates.
APPENDIX A
Preferred Financial Scenario Pro Forma
A-1 Operating Fund
A-2 Groundwater Preservation Fee
A-3 Alternative Water Resources Development Impact Fee Fund
A-4 Potable Water System Development Impact Fee Fund
A-5 Summary of all Funds
FY 2019-20 FY 2020-21 FY 2021-22 FY 2022-23 FY 2023-24
REVENUES
Water Sales
Potable Water Sales (excluding golf courses) 12,371,195$ 12,921,589$ 13,254,577$ 13,605,879$ 13,976,503$
Potable Water Sales from Growth - Res. & Com. 86,344 264,274 444,981 589,016 711,621
Potable Water Sales - Golf Course 97,913 98,460 98,792 99,141 99,510
Total Potable Water Sales 12,555,452 13,284,323 13,798,350 14,294,036 14,787,634
Reclaimed Water Sales 1,516,323 1,526,920 1,537,872 1,549,211 1,557,957
Total Water Sales 14,071,775 14,811,243 15,336,222 15,843,247 16,345,591
Other Operating Revenue
Service Fees & Charges 748,300 750,623 752,946 755,269 757,693
Interest Income 261,990 246,500 227,827 204,327 131,952
Total Other Operating Revenue 1,010,290 997,123 980,773 959,596 889,645
Total Operating Revenue 15,082,065$ 15,808,366$ 16,316,995$ 16,802,843$ 17,235,236$
OPERATING EXPENSES
Potable Operating Expenses
Personnel 2,951,761 3,054,981 3,162,068 3,273,181 3,388,482
Operations & Maintenance 2,825,701 2,855,337 2,535,417 2,565,948 2,596,938
Power for Pumping 862,818 879,010 898,096 910,690 920,341
CAP Wheeling Costs 1,777,118 1,872,548 1,926,758 1,983,122 2,041,742
CAP Water Recharge Costs 1,663,925 1,674,230 1,715,450 1,756,670 1,828,805
Total Potable Operating Expenses 10,081,323$ 10,336,106$ 10,237,789$ 10,489,611$ 10,776,308$
Reclaimed Operating Expenses
Personnel 514,681 532,775 551,552 571,038 591,263
Operating & Maintenance 937,534 952,917 968,532 984,378 1,000,464
Power for Pumping 54,513 54,513 59,964 59,964 59,964
Total Reclaimed Operating Expenses 1,506,728$ 1,540,205$ 1,580,048$ 1,615,380$ 1,651,691$
Total Operating Expenses 11,588,051$ 11,876,311$ 11,817,837$ 12,104,991$ 12,427,999$
Net Operating Revenue 3,494,014$ 3,932,055$ 4,499,158$ 4,697,852$ 4,807,237$
DEBT SERVICE - POTABLE
P&I - 2009 WIFA Loan - Exist. System CIP 149,123 149,069 149,014 148,956 148,897
P&I - 2012 Sr. Lien Bonds - Exist. System-Refi 2003 579,744 578,149 574,737 573,666 186,209
P&I - 2013 Refunding - Excise - Private Placement 1,017,323 - - - -
P&I - 2014 WIFA Loan - Sr. Lien - AMI 376,959 376,856 376,751 376,642 376,530
P&I - 2015 Excise Tax Bonds - Refinance 2005 151,106 149,797 149,756 149,975 151,098
P&I - 2017 Excise Tax Bonds - Refinance 2007 1,641,382 1,640,923 1,640,567 1,640,294 1,639,079
P&I - 2018 Excise Tax Bonds - Exist. System CIP- 15 yrs.447,447 515,565 514,914 515,326 514,660
Total Potable System Debt Service 4,363,084$ 3,410,359$ 3,405,739$ 3,404,859$ 3,016,473$
Other Obligations
Meters & Equipment & Vehicles 351,000$ 241,500$ 474,000$ 136,800$ 141,600$
Capital Improvements: Existing System 310,000 420,000 1,370,000 1,600,000 2,000,000
Total Other Obligations 661,000$ 661,500$ 1,844,000$ 1,736,800$ 2,141,600$
Net Balance From Operations (1,530,070)$ (139,804)$ (750,581)$ (443,807)$ (350,836)$
Beginning Cash Balance 8,060,642$ 6,530,572$ 6,390,768$ 5,640,186$ 5,196,379$
Net Balance From Operations (1,530,070) (139,804) (750,581) (443,807) (350,836)
Ending Cash Balance 6,530,572$ 6,390,768$ 5,640,186$ 5,196,379$ 4,845,543$
A-1
Operating Fund
FY 2019-20 FY 2020-21 FY 2021-22 FY 2022-23 FY 2023-24
GPF Beginning Balance 3,015,979$ 2,796,479$ 2,826,086$ 1,902,970$ 2,304,345$
Revenue
GPF Revenue - Potable 2,079,840 2,079,840 2,079,840 2,079,840 2,079,840
GPF Revenue - Reclaimed 307,379 307,379 307,379 307,379 307,379
GPF Revenue - Growth 15,133 31,914 45,945 55,397 63,934
Total GPF Revenue 2,402,352$ 2,419,133$ 2,433,164$ 2,442,616$ 2,451,153$
NW Reliability Restricted Cash 684,000 -
Total All Revenue 3,086,352$ 2,419,133$ 2,433,164$ 2,442,616$ 2,451,153$
GPF Expenses
Capital Cost for CAP Allotment 6,748 AF 367,766 479,108 489,230 468,986 465,612
Capital Costs for NWRRDS Project 1,570,616 546,000 1,509,000 - 2,391,000
P&I - 2007 Sr. Lien - WIFA -Reclaimed Ph.2 310,728 310,584 310,435 310,281 310,121
P&I - 2012 Sr. Lien Bonds - Reclaimed Ph.1 1,056,742 1,053,834 1,047,615 1,045,662 339,415
P&I - 2023 Sr. Lien Bonds - NWRRDS - - - 216,312 432,624
Total GPF Expenses 3,305,852 2,389,526 3,356,280 2,041,241 3,938,772
GPF Ending Balance 2,796,479$ 2,826,086$ 1,902,970$ 2,304,345$ 816,726$
Groundwater Preservation Fund
A-2
FY 2019-20 FY 2020-21 FY 2021-22 FY 2022-23 FY 2023-24
REVENUES
AWRD Impact Fee Revenue 1,605,865$ 1,719,125$ 1,431,930$ 958,665$ 865,630$
Subtotal Revenue 1,605,865 1,719,125 1,431,930 958,665 865,630
Other Operating Revenue
Interest Income 216,167 225,429 230,880 180,325 79,615
Subtotal Other Operating Revenue 216,167 225,429 230,880 180,325 79,615
Total Operating Revenue 1,822,032$ 1,944,554$ 1,662,810$ 1,138,990$ 945,245$
OPERATING EXPENSES
N/A - - - - -
Total Operating Expenses -$ -$ -$ -$ -$
Net Operating Revenue 1,822,032$ 1,944,554$ 1,662,810$ 1,138,990$ 945,245$
DEBT SERVICE
P&I - Sr. Lien Bonds - NWRRDS - Growth (2023) - - - 216,312 432,624
Total Debt Service -$ -$ -$ 216,312$ 432,624$
OTHER OBLIGATIONS
Capital Improvements:
CAP Capital Charges 3557 acre feet 193,857 252,547 257,883 247,212 245,433
Capital Costs for NWRRDS Project 2,355,923 819,000 2,263,501 3,856,501 2,230,000
Total Other Obligations 2,549,780$ 1,071,547$ 2,521,384$ 4,103,713$ 2,475,433$
Net Balance From Operations (727,748)$ 873,007$ (858,574)$ (3,181,035)$ (1,962,812)$
Beginning Cash Balance 8,811,210$ 8,083,463$ 8,956,469$ 8,097,895$ 4,916,861$
Net Balance From Operations (727,748)$ 873,007$ (858,574)$ (3,181,035)$ (1,962,812)$
Ending Cash Balance 8,083,463$ 8,956,469$ 8,097,895$ 4,916,861$ 2,954,049$
A-3
Alternative Water Resources Development Impact Fee Fund
FY 2019-20 FY 2020-21 FY 2021-22 FY 2022-23 FY 2023-24
REVENUES
Development Impact Fees 799,955$ 856,375$ 713,310$ 477,555$ 431,210$
Subtotal Revenue 799,955$ 856,375$ 713,310$ 477,555$ 431,210$
Other Operating Revenue
Interest Income 143,393 139,752 136,145 125,906 64,716
Subtotal Other Operating Revenue 143,393 139,752 136,145 125,906 64,716
Total Operating Revenue 943,348$ 996,127$ 849,455$ 603,461$ 495,926$
OPERATING EXPENSES
N/A - - - - -
Total Operating Expenses -$ -$ -$ -$ -$
Net Operating Revenue 943,348$ 996,127$ 849,455$ 603,461$ 495,926$
DEBT SERVICE
P&I - Sr. Lien Bonds - Expansion Related (2012) 325,996$ 325,099$ 323,180$ 322,578$ 104,707$
Total Water System Debt Service 325,996$ 325,099$ 323,180$ 322,578$ 104,707$
OTHER OBLIGATIONS
Growth Related Capital Projects 800,000 1,250,000 300,000 1,450,000 2,000,000
Total Other Obligations 800,000$ 1,250,000$ 300,000$ 1,450,000$ 2,000,000$
Net Balance From Operations (182,648)$ (578,972)$ 226,275$ (1,169,117)$ (1,608,781)$
Beginning Cash Balance 5,707,306$ 5,524,658$ 4,945,686$ 5,171,961$ 4,002,844$
Net Balance From Operations (182,648)$ (578,972)$ 226,275$ (1,169,117)$ (1,608,781)$
Ending Cash Balance 5,524,658$ 4,945,686$ 5,171,961$ 4,002,844$ 2,394,063$
A-4
Potable Water System Development Impact Fee Fund
FY 2019-20 FY 2020-21 FY 2021-22 FY 2022-23 FY 2023-24
REVENUES
Water Sales
Potable Water Sales (exclude golf courses) 12,371,195$ 12,921,589$ 13,254,577$ 13,605,879$ 13,976,503$
Potable Water Sales from Growth 86,344 264,274 444,981 589,016 711,621
Potable Water Sales - Golf Course 97,913 98,460 98,792 99,141 99,510
Total Potable Water Sales 12,555,452 13,284,323 13,798,350 14,294,036 14,787,634
Reclaimed Water Sales 1,516,323 1,526,920 1,537,872 1,549,211 1,557,957
Total Water Sales 14,071,775 14,811,243 15,336,222 15,843,247 16,345,591
Other Operating Revenue
Groundwater Preservation Fees
Groundwater Preservation Fee - Potable 2,079,840 2,079,840 2,079,840 2,079,840 2,079,840
Groundwater Preservation Fee - Reclaimed 307,379 307,379 307,379 307,379 307,379
Groundwater Preservation Fee - Growth 15,133 31,914 45,945 55,397 63,934
Total Groundwater Preservation Fees 2,402,352 2,419,133 2,433,164 2,442,616 2,451,153
Potable Water Impact Fees 799,955 856,375 713,310 477,555 431,210
Alternative Water Impact Fees 1,605,865 1,719,125 1,431,930 958,665 865,630
Service Fees & Charges 748,300 750,623 752,946 755,269 757,693
NW Reliabiity Restricted Cash 684,000 - - - -
Interest Income 621,550 611,681 594,852 510,558 276,283
Total Other Operating Revenue 6,862,022 6,356,937 5,926,202 5,144,663 4,781,969
Total Operating Revenue 20,933,797$ 21,168,180$ 21,262,424$ 20,987,910$ 21,127,560$
OPERATING EXPENSES
Potable Operating Expenses
Personnel 2,951,761 3,054,981 3,162,068 3,273,181 3,388,482
Operations & Maintenance 2,825,701 2,855,337 2,535,417 2,565,948 2,596,938
Power for Pumping 862,818 879,010 898,096 910,690 920,341
CAP Wheeling Costs 1,777,118 1,872,548 1,926,758 1,983,122 2,041,742
CAP Recharge Costs 1,663,925 1,674,230 1,715,450 1,756,670 1,828,805
Costs paid by GPF Revenue (excludes debt & capital project)367,766 479,108 489,230 468,986 465,612
Total Potable Operating Expenses 10,449,090$ 10,815,214$ 10,727,019$ 10,958,597$ 11,241,920$
Reclaimed Operating Expenses
Personnel 514,681 532,775 551,552 571,038 591,263
Operating & Maintenance 937,534 952,917 968,532 984,378 1,000,464
Power for Pumping 54,513 54,513 59,964 59,964 59,964
Total Reclaimed Operating Expenses 1,506,728$ 1,540,205$ 1,580,049$ 1,615,381$ 1,651,690$
Total Operating Expenses 11,955,817$ 12,355,419$ 12,307,067$ 12,573,978$ 12,893,610$
Net Operating Revenue 8,977,980$ 8,812,761$ 8,955,357$ 8,413,932$ 8,233,950$
A-5
Summary of Funds
Debt Service
Debt Service - Potable- Existing System
P&I - 2009 WIFA Loan - Exist. System CIP 149,123 149,069 149,014 148,956 148,897
P&I - 2012 Sr. Lien Bonds - Existing System-Refinance 2003 579,744 578,149 574,737 573,666 186,209
P&I - 2013 Refunding - Excise - Private Placement 1,017,323 - - - -
P&I - 2014 WIFA Loan - Sr. Lien - AMI 376,959 376,856 376,751 376,642 376,530
P&I - 2015 Excise Tax Bonds - Refinance 2005 151,106 149,797 149,756 149,975 151,098
P&I - 2017 Excise Tax Bonds - Refinance 2007 1,641,382 1,640,923 1,640,567 1,640,294 1,639,079
P&I - 2018 Excise Tax Bonds - Exist. System CIP- 15 yrs. 447,447 515,565 514,914 515,326 514,660
Total Potable Existing System Debt Service 4,363,085$ 3,410,359$ 3,405,739$ 3,404,858$ 3,016,473$
Debt Service - GPF
P&I - Sr. Lien - WIFA -Reclaimed Ph.2 (2007) 310,728$ 310,584$ 310,435$ 310,281$ 310,121$
P&I - Sr. Lien Bonds - Reclaimed Ph.1 (2012) 1,056,742 1,053,834 1,047,615 1,045,662 339,415
P&I - Sr. Lien Bonds - NWRRDS - Exist. Customers (2023)- - - 216,312 432,624
Total GPF Debt Service 1,367,470$ 1,364,418$ 1,358,050$ 1,572,255$ 1,082,160$
Debt Service - AWRDIF - Growth Related
P&I - Sr. Lien Bonds - NWRRDS - Growth Related (2023)- - - 216,312 432,624
Total AWRDIF Growth Related Debt Service -$ -$ -$ 216,312$ 432,624$
Debt Service - Potable - Growth Related
P&I - Sr. Lien Bonds - Growth Related (2012) 325,996 325,099 323,180 322,578 104,707
Total Potable Growth Related Debt Service 325,996$ 325,099$ 323,180$ 322,578$ 104,707$
Total Water System Debt Service 6,056,550$ 5,099,875$ 5,086,968$ 5,516,003$ 4,635,964$
Other Obligations
Meters & Equipment & Vehicles 351,000$ 241,500$ 474,000$ 136,800$ 141,600$
Capital Improvements:
Existing System 310,000 420,000 1,370,000 1,600,000 2,000,000
Groundwater Preservation Fees 1,570,616 546,000 1,509,000 - 2,391,000
Alternative Water Resources 2,549,780 1,071,547 2,521,384 4,103,713 2,475,433
Potable Water System Expansion 800,000 1,250,000 300,000 1,450,000 2,000,000
Total Other Obligations 5,581,396$ 3,529,047$ 6,174,384$ 7,290,513$ 9,008,033$
Net Balance From Operations (2,659,965)$ 183,839$ (2,305,995)$ (4,392,584)$ (5,410,047)$
Growth - New Metered Connections 391 419 348 231 208
Monthly increase to residential customer using 7K gals.4.6% 4.5% 2.6% 2.7% 2.7%
Monthly increase to residential customer using 7K gals.$1.81 $1.83 $1.10 $1.17 $1.23
Monthly increase to reclaimed customer using 10M gals.0.0% 0.6% 0.6% 0.7% 0.7%
Monthly increase to reclaimed customer using 10M gals.$0.00 $173.08 $180.39 $188.43 $197.28
Debt Service Coverage Requirement Amount 7,030,572$ 6,092,623$ 6,075,963$ 6,633,725$ 5,489,700$
DS Coverage Ratio: 2012 Sr. Lien Bonds & WIFA 2.77 2.66 2.72 2.40 3.41
Debt Service Coverage Requirement = 1.30
Required Cash Reserves (20% of personnel, O&M, debt)3,190,227$ 3,057,334$ 3,044,715$ 3,101,970$ 3,088,894$
(does not include depreciation/amortization)
Operating Fund 6,530,572$ 6,390,768$ 5,640,186$ 5,196,379$ 4,845,543$
Groundwater Preservation Fees 2,796,479 2,826,086 1,902,970 2,304,345 816,726
AWRD Impact Fee Fund 8,083,463 8,956,469 8,097,895 4,916,861 2,954,049
PWSD Impact Fee Fund 5,524,658 4,945,686 5,171,961 4,002,844 2,394,063
Total Ending Cash Balance 22,935,172$ 23,119,008$ 20,813,012$ 16,420,428$ 11,010,380$
A-6
APPENDIX B
Rate Schedules & Tables for Bill Comparisons
B-1 Proposed Water Rate Schedule
B-2 Tables for Bill Comparisons by Meter Size - Potable
B-8 Tables for Bill Comparisons by Meter Size - Reclaimed
METER SIZE
(in inches)
5/8 x 3/4 $18.26 $14.62
3/4 x 3/4 $27.38 $21.93
1 $45.63 $36.54
1.5 $91.26 $73.08
2 $146.03 $116.94
3 $292.03 $233.86
4 $456.31 $365.41
6 $912.62 $730.83
8 $1,460.19 $1,169.32
METER COMMODITY COMMODITY COMMODITY COMMODITY
SIZE TIER 1 TIER 2 TIER 3 TIER 4
$2.34 $3.25 $4.53 $6.29
COST PER 1000 GALS. COST PER 1000 GALS. COST PER 1000 GALS. COST PER 1000 GALS.
5/8 x 3/4 0 - 7,000 7,001 - 16,000 16,001 - 32,000 OVER 32,000
3/4 x 3/4 0 - 10,000 10,001 - 24,000 24,001 - 48,000 OVER 48,000
1 0 - 17,000 17,001 - 40,000 40,001 - 80,000 OVER 80,000
1.5 0 - 35,000 35,001 - 80,000 80,001 - 160,000 OVER 160,000
2 0 - 56,000 56,001 - 128,000 128,001 - 256,000 OVER 256,000
3 0 - 112,000 112,001 - 256,000 256,001 - 512,000 OVER 512,000
4 0 - 175,000 175,001 - 400,000 400,001 - 800,000 OVER 800,000
6 0 - 860,000 860,001 - 2,000,000 2,000,001 - 3,500,000 OVER 3,500,000
8 0 - 860,000 860,001 - 2,000,000 2,000,001 - 3,500,000 OVER 3,500,000
RECLAIMED WATER $ 0.47 per 1000 gallons for all water use
MASTER-METERED MULTIFAMILY CLASSIFICATION $2.32 per 1000 gallons for all water use
CONSTRUCTION WATER $7.05 per 1000 gallons for all water use
ORO VALLEY WATER UTILITY
PROPOSED WATER RATES
POTABLE BASE RATE RECLAIMED BASE RATE
COMMODITY RATES - POTABLE WATER
RESIDENTIAL & IRRIGATION CLASSIFICATIONS
COMMERCIAL CLASSIFICATION
B-1
GROUNDWATER PRESERVATION FEES
COMMODITY RATES - RECLAIMED WATER
ALL RECLAIMED WATER USES & CLASSIFICATIONS
$2.32 per 1000 gallons for all water use
$ 2.27 per 1000 gallons for all water use
POTABLE WATER $ 0.90 per 1000 gallons for all water use
TABLE FOR MONTHLY CHARGES & PERCENT INCREASE COMPARISON
RESIDENTIAL & IRRIGATION CUSTOMERS WITH A 5/8-INCH METER Tier Levels
GALLONS CURRENT CURRENT CURRENT PROPOSED PROPOSED PROPOSED TOTAL PERCENT
USED WATER GPF MONTHLY WATER GPF MONTHLY MONTHLY INCREASED
BILL BILL INCREASE
0 16.45 - 16.45 18.26 - 18.26 1.81 11.0%
1,000 18.79 0.90 19.69 20.60 0.90 21.50 1.81 9.2%
2,000 21.13 1.80 22.93 22.94 1.80 24.74 1.81 7.9%
3,000 23.47 2.70 26.17 25.28 2.70 27.98 1.81 6.9%
4,000 25.81 3.60 29.41 27.62 3.60 31.22 1.81 6.2%
5,000 28.15 4.50 32.65 29.96 4.50 34.46 1.81 5.5%
6,000 30.49 5.40 35.89 32.30 5.40 37.70 1.81 5.0%
7,000 32.83 6.30 39.13 34.64 6.30 40.94 1.81 4.6%
8,000 36.08 7.20 43.28 37.89 7.20 45.09 1.81 4.2%
9,000 39.33 8.10 47.43 41.14 8.10 49.24 1.81 3.8%
10,000 42.58 9.00 51.58 44.39 9.00 53.39 1.81 3.5%
11,000 45.83 9.90 55.73 47.64 9.90 57.54 1.81 3.2%
12,000 49.08 10.80 59.88 50.89 10.80 61.69 1.81 3.0%
13,000 52.33 11.70 64.03 54.14 11.70 65.84 1.81 2.8%
14,000 55.58 12.60 68.18 57.39 12.60 69.99 1.81 2.7%
15,000 58.83 13.50 72.33 60.64 13.50 74.14 1.81 2.5%
16,000 62.08 14.40 76.48 63.89 14.40 78.29 1.81 2.4%
17,000 66.61 15.30 81.91 68.42 15.30 83.72 1.81 2.2%
18,000 71.14 16.20 87.34 72.95 16.20 89.15 1.81 2.1%
19,000 75.67 17.10 92.77 77.48 17.10 94.58 1.81 2.0%
20,000 80.20 18.00 98.20 82.01 18.00 100.01 1.81 1.8%
21,000 84.73 18.90 103.63 86.54 18.90 105.44 1.81 1.7%
22,000 89.26 19.80 109.06 91.07 19.80 110.87 1.81 1.7%
23,000 93.79 20.70 114.49 95.60 20.70 116.30 1.81 1.6%
24,000 98.32 21.60 119.92 100.13 21.60 121.73 1.81 1.5%
25,000 102.85 22.50 125.35 104.66 22.50 127.16 1.81 1.4%
26,000 107.38 23.40 130.78 109.19 23.40 132.59 1.81 1.4%
27,000 111.91 24.30 136.21 113.72 24.30 138.02 1.81 1.3%
28,000 116.44 25.20 141.64 118.25 25.20 143.45 1.81 1.3%
29,000 120.97 26.10 147.07 122.78 26.10 148.88 1.81 1.2%
30,000 125.50 27.00 152.50 127.31 27.00 154.31 1.81 1.2%
31,000 130.03 27.90 157.93 131.84 27.90 159.74 1.81 1.1%
32,000 134.56 28.80 163.36 136.37 28.80 165.17 1.81 1.1%
33,000 140.85 29.70 170.55 142.66 29.70 172.36 1.81 1.1%
34,000 147.14 30.60 177.74 148.95 30.60 179.55 1.81 1.0%
35,000 153.43 31.50 184.93 155.24 31.50 186.74 1.81 1.0%
36,000 159.72 32.40 192.12 161.53 32.40 193.93 1.81 0.9%
37,000 166.01 33.30 199.31 167.82 33.30 201.12 1.81 0.9%
38,000 172.30 34.20 206.50 174.11 34.20 208.31 1.81 0.9%
39,000 178.59 35.10 213.69 180.40 35.10 215.50 1.81 0.8%
40,000 184.88 36.00 220.88 186.69 36.00 222.69 1.81 0.8%
41,000 191.17 36.90 228.07 192.98 36.90 229.88 1.81 0.8%
42,000 197.46 37.80 235.26 199.27 37.80 237.07 1.81 0.8%
43,000 203.75 38.70 242.45 205.56 38.70 244.26 1.81 0.7%
44,000 210.04 39.60 249.64 211.85 39.60 251.45 1.81 0.7%
45,000 216.33 40.50 256.83 218.14 40.50 258.64 1.81 0.7%
46,000 222.62 41.40 264.02 224.43 41.40 265.83 1.81 0.7%
47,000 228.91 42.30 271.21 230.72 42.30 273.02 1.81 0.7%
48,000 235.20 43.20 278.40 237.01 43.20 280.21 1.81 0.6%
49,000 241.49 44.10 285.59 243.30 44.10 287.40 1.81 0.6%
50,000 247.78 45.00 292.78 249.59 45.00 294.59 1.81 0.6%
B-2
TABLE FOR MONTHLY CHARGES AND PERCENT INCREASE COMPARISON
FOR SF & MF RESIDENTIAL & IRRIGATION CUSTOMERS WITH A 3/4-INCH METER
BASE RATE 27.38$
COMMODITY RATE: TIER 1 = 2.34$ FOR 0 - 10,000 GALLONS
TIER 2 = 3.25$ FOR 10,001 - 24,000 GALLONS
TIER 3 = 4.53$ FOR 24,001 - 48,000 GALLONS
TIER 4 = 6.29$ FOR ALL USAGE OVER 48,000 GALLONS
GALLONS CURRENT CURRENT CURRENT PROPOSED PROPOSED PROPOSED TOTAL PERCENT
USED IN WATER GPF MONTHLY WATER GPF MONTHLY MONTHLY INCREASED
1 MONTH BILL BILL INCREASE
0 24.67 - 24.67 27.38 - 27.38 2.71 11.0%
7,000 41.05 6.30 47.35 43.76 6.30 50.06 2.71 5.7%
11,000 51.32 9.90 61.22 54.03 9.90 63.93 2.71 4.4%
28,000 111.69 25.20 136.89 114.40 25.20 139.60 2.71 2.0%
50,000 214.87 45.00 259.87 217.58 45.00 262.58 2.71 1.0%
TABLE FOR MONTHLY CHARGES AND PERCENT INCREASE COMPARISON
FOR COMMERCIAL CUSTOMERS WITH A 3/4-INCH METER
BASE RATE 27.38$
COMMODITY RATE: TIER 1 = 2.34$ FOR ALL WATER USAGE
TIER 2 = N/A
TIER 3 = N/A
TIER 4 = N/A
GALLONS CURRENT CURRENT CURRENT PROPOSED PROPOSED PROPOSED TOTAL PERCENT
USED IN WATER GPF MONTHLY WATER GPF MONTHLY MONTHLY INCREASED
1 MONTH BILL BILL INCREASE
0 24.67 - 24.67 27.38 - 27.38 2.71 11.0%
7,000 41.05 6.30 47.35 43.76 6.30 50.06 2.71 5.7%
11,000 50.41 9.90 60.31 53.12 9.90 63.02 2.71 4.5%
28,000 90.19 25.20 115.39 92.90 25.20 118.10 2.71 2.4%
50,000 141.67 45.00 186.67 144.38 45.00 189.38 2.71 1.5%
TABLE FOR MONTHLY CHARGES AND PERCENT INCREASE COMPARISON
FOR SF & MF RESIDENTIAL & IRRIGATION CUSTOMERS WITH A 1-INCH METER
BASE RATE 45.63$
COMMODITY RATE: TIER 1 = 2.34$ FOR 0 - 17,000 GALLONS
TIER 2 = 3.25$ FOR 17,001 - 40,000 GALLONS
TIER 3 = 4.53$ FOR 40,001 - 80,000 GALLONS
TIER 4 = 6.29$ FOR ALL USAGE OVER 80,000 GALLONS
GALLONS CURRENT CURRENT CURRENT PROPOSED PROPOSED PROPOSED TOTAL PERCENT
USED IN WATER GPF MONTHLY WATER GPF MONTHLY MONTHLY INCREASED
1 MONTH BILL BILL INCREASE
0 41.11 - 41.11 45.63 - 45.63 4.52 11.0%
17,000 80.89 15.30 96.19 85.41 15.30 100.71 4.52 4.7%
27,000 113.39 24.30 137.69 117.91 24.30 142.21 4.52 3.3%
38,000 149.14 34.20 183.34 153.66 34.20 187.86 4.52 2.5%
50,000 200.94 45.00 245.94 205.46 45.00 250.46 4.52 1.8%
B-3
TABLE FOR MONTHLY CHARGES AND PERCENT INCREASE COMPARISON
FOR COMMERCIAL CUSTOMERS WITH A 1-INCH METER
BASE RATE 45.63$
COMMODITY RATE: TIER 1 = 2.34$ FOR ALL WATER USAGE
TIER 2 = N/A
TIER 3 = N/A
TIER 4 = N/A
GALLONS CURRENT CURRENT CURRENT PROPOSED PROPOSED PROPOSED TOTAL PERCENT
USED IN WATER GPF MONTHLY WATER GPF MONTHLY MONTHLY INCREASED
1 MONTH BILL BILL INCREASE
0 41.11 - 41.11 45.63 - 45.63 4.52 11.0%
15,000 76.21 13.50 89.71 80.73 13.50 94.23 4.52 5.0%
27,000 104.29 24.30 128.59 108.81 24.30 133.11 4.52 3.5%
38,000 130.03 34.20 164.23 134.55 34.20 168.75 4.52 2.8%
50,000 158.11 45.00 203.11 162.63 45.00 207.63 4.52 2.2%
TABLE FOR MONTHLY CHARGES AND PERCENT INCREASE COMPARISON
FOR IRRIGATION CUSTOMERS WITH A 1.5-INCH METER
BASE RATE 91.26$
COMMODITY RATE: TIER 1 = 2.34$ FOR 0 - 35,000 GALLONS
TIER 2 = 3.25$ FOR 35,001 - 80,000 GALLONS
TIER 3 = 4.53$ FOR 80,001 - 160,000 GALLONS
TIER 4 = 6.29$ FOR ALL USAGE OVER 160,000 GALLONS
GALLONS CURRENT CURRENT CURRENT PROPOSED PROPOSED PROPOSED TOTAL PERCENT
USED IN WATER GPF MONTHLY WATER GPF MONTHLY MONTHLY INCREASED
1 MONTH BILL BILL INCREASE
0 82.22 - 82.22 91.26 - 91.26 9.04 11.0%
38,000 173.87 34.20 208.07 182.91 34.20 217.11 9.04 4.3%
64,000 258.37 57.60 315.97 267.41 57.60 325.01 9.04 2.9%
90,000 355.67 81.00 436.67 364.71 81.00 445.71 9.04 2.1%
125,000 514.22 112.50 626.72 523.26 112.50 635.76 9.04 1.4%
TABLE FOR MONTHLY CHARGES AND PERCENT INCREASE COMPARISON
FOR COMMERCIAL & MULTIFAMILY CUSTOMERS WITH A 1.5-INCH METER
BASE RATE 91.26$
COMMODITY RATE: TIER 1 = 2.34$ FOR ALL WATER USAGE
TIER 2 = N/A
TIER 3 = N/A
TIER 4 = N/A
GALLONS CURRENT CURRENT CURRENT PROPOSED PROPOSED PROPOSED TOTAL PERCENT
USED IN WATER GPF MONTHLY WATER GPF MONTHLY MONTHLY INCREASED
1 MONTH BILL BILL INCREASE
0 82.22 - 82.22 91.26 - 91.26 9.04 11.0%
30,000 152.42 27.00 179.42 161.46 27.00 188.46 9.04 5.0%
64,000 231.98 57.60 289.58 241.02 57.60 298.62 9.04 3.1%
90,000 292.82 81.00 373.82 301.86 81.00 382.86 9.04 2.4%
125,000 374.72 112.50 487.22 383.76 112.50 496.26 9.04 1.9%
B-4
TABLE FOR MONTHLY CHARGES AND PERCENT INCREASE COMPARISON
FOR IRRIGATION CUSTOMERS WITH A 2-INCH METER
BASE RATE 146.03$
COMMODITY RATE: TIER 1 = 2.34$ FOR 0 - 56,000 GALLONS
TIER 2 = 3.25$ FOR 56,001 - 128,000 GALLONS
TIER 3 = 4.53$ FOR 128,001 - 256,000 GALLONS
TIER 4 = 6.29$ FOR ALL USAGE OVER 256,000 GALLONS
GALLONS CURRENT CURRENT CURRENT PROPOSED PROPOSED PROPOSED TOTAL PERCENT
USED IN WATER GPF MONTHLY WATER GPF MONTHLY MONTHLY INCREASED
1 MONTH BILL BILL INCREASE
0 131.56 - 131.56 146.03 - 146.03 14.47 11.0%
57,000 265.85 51.30 317.15 280.32 51.30 331.62 14.47 4.6%
130,000 505.66 117.00 622.66 520.13 117.00 637.13 14.47 2.3%
250,000 1,049.26 225.00 1,274.26 1,063.73 225.00 1,288.73 14.47 1.1%
325,000 1,510.45 292.50 1,802.95 1,524.92 292.50 1,817.42 14.47 0.8%
TABLE FOR MONTHLY CHARGES AND PERCENT INCREASE COMPARISON
FOR COMMERCIAL & MULTIFAMILY CUSTOMERS WITH A 2-INCH METER
BASE RATE 146.03$
COMMODITY RATE: TIER 1 = 2.34$ FOR ALL WATER USAGE
TIER 2 = N/A
TIER 3 = N/A
TIER 4 = N/A
GALLONS CURRENT CURRENT CURRENT PROPOSED PROPOSED PROPOSED TOTAL PERCENT
USED IN WATER GPF MONTHLY WATER GPF MONTHLY MONTHLY INCREASED
1 MONTH BILL BILL INCREASE
0 131.56 - 131.56 146.03 - 146.03 14.47 11.0%
57,000 264.94 51.30 316.24 279.41 51.30 330.71 14.47 4.6%
128,000 431.08 115.20 546.28 445.55 115.20 560.75 14.47 2.6%
250,000 716.56 225.00 941.56 731.03 225.00 956.03 14.47 1.5%
325,000 892.06 292.50 1,184.56 906.53 292.50 1,199.03 14.47 1.2%
TABLE FOR MONTHLY CHARGES AND PERCENT INCREASE COMPARISON
FOR IRRIGATION CUSTOMERS WITH A 3-INCH METER
BASE RATE 292.03$
COMMODITY RATE: TIER 1 = 2.34$ FOR 0 - 112,000 GALLONS
TIER 2 = 3.25$ FOR 112,001 - 256,000 GALLONS
TIER 3 = 4.53$ FOR 256,001 - 512,000 GALLONS
TIER 4 = 6.29$ FOR ALL USAGE OVER 512,000 GALLONS
GALLONS CURRENT CURRENT CURRENT PROPOSED PROPOSED PROPOSED TOTAL PERCENT
USED IN WATER GPF MONTHLY WATER GPF MONTHLY MONTHLY INCREASED
1 MONTH BILL BILL INCREASE
0 263.09 - 263.09 292.03 - 292.03 28.94 11.0%
50,000 380.09 45.00 425.09 409.03 45.00 454.03 28.94 6.8%
150,000 648.67 135.00 783.67 677.61 135.00 812.61 28.94 3.7%
300,000 1,192.49 270.00 1,462.49 1,221.43 270.00 1,491.43 28.94 2.0%
500,000 2,098.49 450.00 2,548.49 2,127.43 450.00 2,577.43 28.94 1.1%
B-5
TABLE FOR MONTHLY CHARGES AND PERCENT INCREASE COMPARISON
FOR COMMERCIAL & MULTIFAMILY CUSTOMERS WITH A 3-INCH METER
BASE RATE 292.03$
COMMODITY RATE: TIER 1 = 2.34$ FOR ALL WATER USAGE
TIER 2 = N/A
TIER 3 = N/A
TIER 4 = N/A
GALLONS CURRENT CURRENT CURRENT PROPOSED PROPOSED PROPOSED TOTAL PERCENT
USED IN WATER GPF MONTHLY WATER GPF MONTHLY MONTHLY INCREASED
1 MONTH BILL BILL INCREASE
0 263.09 - 263.09 292.03 - 292.03 28.94 11.0%
50,000 380.09 45.00 425.09 409.03 45.00 454.03 28.94 6.8%
150,000 614.09 135.00 749.09 643.03 135.00 778.03 28.94 3.9%
300,000 965.09 270.00 1,235.09 994.03 270.00 1,264.03 28.94 2.3%
500,000 1,433.09 450.00 1,883.09 1,462.03 450.00 1,912.03 28.94 1.5%
TABLE FOR MONTHLY CHARGES AND PERCENT INCREASE COMPARISON
FOR IRRIGATION CUSTOMERS WITH A 4-INCH METER
BASE RATE 456.31$
COMMODITY RATE: TIER 1 = 2.34$ FOR 0 - 175,000 GALLONS
TIER 2 = 3.25$ FOR 175,001 - 400,000 GALLONS
TIER 3 = 4.53$ FOR 400,001 - 800,000 GALLONS
TIER 4 = 6.29$ FOR ALL USAGE OVER 800,000 GALLONS
GALLONS CURRENT CURRENT CURRENT PROPOSED PROPOSED PROPOSED TOTAL PERCENT
USED IN WATER GPF MONTHLY WATER GPF MONTHLY MONTHLY INCREASED
1 MONTH BILL BILL INCREASE
0 411.09 - 411.09 456.31 - 456.31 45.22 11.0%
300,000 1,226.84 270.00 1,496.84 1,272.06 270.00 1,542.06 45.22 3.0%
550,000 2,231.34 495.00 2,726.34 2,276.56 495.00 2,771.56 45.22 1.7%
700,000 2,910.84 630.00 3,540.84 2,956.06 630.00 3,586.06 45.22 1.3%
850,000 3,678.34 765.00 4,443.34 3,723.56 765.00 4,488.56 45.22 1.0%
TABLE FOR MONTHLY CHARGES AND PERCENT INCREASE COMPARISON
FOR COMMERCIAL & MULTIFAMILY CUSTOMERS WITH A 4-INCH METER
BASE RATE 456.31$
COMMODITY RATE: TIER 1 = 2.34$ FOR ALL WATER USAGE
TIER 2 = N/A
TIER 3 = N/A
TIER 4 = N/A
GALLONS CURRENT CURRENT CURRENT PROPOSED PROPOSED PROPOSED TOTAL PERCENT
USED IN WATER GPF MONTHLY WATER GPF MONTHLY MONTHLY INCREASED
1 MONTH BILL BILL INCREASE
0 411.09 - 411.09 456.31 - 456.31 45.22 11.0%
300,000 1,113.09 270.00 1,383.09 1,158.31 270.00 1,428.31 45.22 3.3%
550,000 1,698.09 495.00 2,193.09 1,743.31 495.00 2,238.31 45.22 2.1%
700,000 2,049.09 630.00 2,679.09 2,094.31 630.00 2,724.31 45.22 1.7%
850,000 2,400.09 765.00 3,165.09 2,445.31 765.00 3,210.31 45.22 1.4%
B-6
TABLE FOR MONTHLY CHARGES AND PERCENT INCREASE COMPARISON
FOR RESIDENTIAL & IRRIGATION CUSTOMERS WITH A 6-INCH METER
BASE RATE 912.62$
COMMODITY RATE: TIER 1 = 2.34$ FOR 0 - 860,000 GALLONS
TIER 2 = 3.25$ FOR 860,001 - 2,000,000 GALLONS
TIER 3 = 4.53$ FOR 2,000,001 - 3,500,000 GALLONS
TIER 4 = 6.29$ FOR ALL USAGE OVER 3,500,000 GALLONS
GALLONS CURRENT CURRENT CURRENT PROPOSED PROPOSED PROPOSED TOTAL PERCENT
USED IN WATER GPF MONTHLY WATER GPF MONTHLY MONTHLY INCREASED
1 MONTH BILL BILL INCREASE
0 822.18 - 822.18 912.62 - 912.62 90.44 11.0%
425,000 1,816.68 382.50 2,199.18 1,907.12 382.50 2,289.62 90.44 4.1%
1,000,000 3,289.58 900.00 4,189.58 3,380.02 900.00 4,280.02 90.44 2.2%
1,500,000 4,914.58 1,350.00 6,264.58 5,005.02 1,350.00 6,355.02 90.44 1.4%
2,000,000 6,539.58 1,800.00 8,339.58 6,630.02 1,800.00 8,430.02 90.44 1.1%
TABLE FOR MONTHLY CHARGES AND PERCENT INCREASE COMPARISON
FOR COMMERCIAL & MULTIFAMILY CUSTOMERS WITH A 6-INCH METER
BASE RATE 912.62$
COMMODITY RATE: TIER 1 = 2.34$ FOR ALL WATER USAGE
TIER 2 = N/A
TIER 3 = N/A
TIER 4 = N/A
GALLONS CURRENT CURRENT CURRENT PROPOSED PROPOSED PROPOSED TOTAL PERCENT
USED IN WATER GPF MONTHLY WATER GPF MONTHLY MONTHLY INCREASED
1 MONTH BILL BILL INCREASE
0 822.18 - 822.18 912.62 - 912.62 90.44 11.0%
425,000 1,816.68 382.50 2,199.18 1,907.12 382.50 2,289.62 90.44 4.1%
1,000,000 3,162.18 900.00 4,062.18 3,252.62 900.00 4,152.62 90.44 2.2%
1,500,000 4,332.18 1,350.00 5,682.18 4,422.62 1,350.00 5,772.62 90.44 1.6%
2,000,000 5,502.18 1,800.00 7,302.18 5,592.62 1,800.00 7,392.62 90.44 1.2%
TABLE FOR MONTHLY CHARGES AND PERCENT INCREASE COMPARISON
FOR CUSTOMERS WITH A 8-INCH METER
BASE RATE 1,460.19$
COMMODITY RATE: TIER 1 = 2.34$ FOR 0 - 860,000 GALLONS
TIER 2 = 3.25$ FOR 860,001 - 2,000,000 GALLONS
TIER 3 = 4.53$ FOR 2,000,001 - 3,500,000 GALLONS
TIER 4 = 6.29$ FOR ALL USAGE OVER 3,500,000 GALLONS
GALLONS CURRENT CURRENT CURRENT PROPOSED PROPOSED PROPOSED TOTAL PERCENT
USED IN WATER GPF MONTHLY WATER GPF MONTHLY MONTHLY INCREASED
1 MONTH BILL BILL INCREASE
0 1,315.49 - 1,315.49 1,460.19 - 1,460.19 144.70 11.0%
425,000 2,309.99 382.50 2,692.49 2,454.69 382.50 2,837.19 144.70 5.4%
1,000,000 3,782.89 900.00 4,682.89 3,927.59 900.00 4,827.59 144.70 3.1%
1,500,000 5,407.89 1,350.00 6,757.89 5,552.59 1,350.00 6,902.59 144.70 2.1%
2,000,000 7,032.89 1,800.00 8,832.89 7,177.59 1,800.00 8,977.59 144.70 1.6%
(There are no active 8-inch potable meters in the OVWU system)
B-7
TABLE FOR MONTHLY CHARGES AND PERCENT INCREASE COMPARISON
FOR COMMERCIAL AND MULTIFAMILY CUSTOMERS WITH A 8-INCH METER
BASE RATE 1,460.19$
COMMODITY RATE: TIER 1 = 2.34$ FOR ALL WATER USAGE
TIER 2 = N/A
TIER 3 = N/A
TIER 4 = N/A
GALLONS CURRENT CURRENT CURRENT PROPOSED PROPOSED PROPOSED TOTAL PERCENT
USED IN WATER GPF MONTHLY WATER GPF MONTHLY MONTHLY INCREASED
1 MONTH BILL BILL INCREASE
0 1,315.49 - 1,315.49 1,460.19 - 1,460.19 144.70 11.0%
425,000 2,309.99 382.50 2,692.49 2,454.69 382.50 2,837.19 144.70 5.4%
1,000,000 3,655.49 900.00 4,555.49 3,800.19 900.00 4,700.19 144.70 3.2%
1,500,000 4,825.49 1,350.00 6,175.49 4,970.19 1,350.00 6,320.19 144.70 2.3%
2,000,000 5,995.49 1,800.00 7,795.49 6,140.19 1,800.00 7,940.19 144.70 1.9%
(There are no active 8-inch potable meters in the OVWU system)
TABLE FOR MONTHLY CHARGES AND PERCENT INCREASE COMPARISON
FOR CUSTOMERS WITH A 1.5-INCH METER - RECLAIMED WATER USE
BASE RATE 73.08$
COMMODITY RATE: TIER 1 = 2.27$ FOR ALL WATER USAGE
TIER 2 = N/A
TIER 3 = N/A
TIER 4 = N/A
GALLONS CURRENT CURRENT CURRENT PROPOSED PROPOSED PROPOSED TOTAL PERCENT
USED IN WATER GPF MONTHLY WATER GPF MONTHLY MONTHLY INCREASED
1 MONTH BILL BILL INCREASE
0 73.08 - 73.08 73.08 - 73.08 0.00 0.0%
50,000 186.58 23.50 210.08 186.58 23.50 210.08 0.00 0.0%
135,000 379.53 63.45 442.98 379.53 63.45 442.98 0.00 0.0%
200,000 527.08 94.00 621.08 527.08 94.00 621.08 0.00 0.0%
250,000 640.58 117.50 758.08 640.58 117.50 758.08 0.00 0.0%
TABLE FOR MONTHLY CHARGES AND PERCENT INCREASE COMPARISON
FOR CUSTOMERS WITH A 2-INCH METER - RECLAIMED WATER USE
BASE RATE 116.94$
COMMODITY RATE: TIER 1 = 2.27$ FOR ALL WATER USAGE
TIER 2 = N/A
TIER 3 = N/A
TIER 4 = N/A
GALLONS CURRENT CURRENT CURRENT PROPOSED PROPOSED PROPOSED TOTAL PERCENT
USED IN WATER GPF MONTHLY WATER GPF MONTHLY MONTHLY INCREASED
1 MONTH BILL BILL INCREASE
0 116.94 - 116.94 116.94 - 116.94 0.00 0.0%
150,000 457.44 70.50 527.94 457.44 70.50 527.94 0.00 0.0%
240,000 661.74 112.80 774.54 661.74 112.80 774.54 0.00 0.0%
450,000 1,138.44 211.50 1,349.94 1,138.44 211.50 1,349.94 0.00 0.0%
600,000 1,478.94 282.00 1,760.94 1,478.94 282.00 1,760.94 0.00 0.0%
B-8
TABLE FOR MONTHLY CHARGES AND PERCENT INCREASE COMPARISON
FOR CUSTOMERS WITH A 3-INCH METER - RECLAIMED WATER USE
BASE RATE 233.86$
COMMODITY RATE: TIER 1 = 2.27$ FOR ALL WATER USAGE
TIER 2 = N/A
TIER 3 = N/A
TIER 4 = N/A
GALLONS CURRENT CURRENT CURRENT PROPOSED PROPOSED PROPOSED TOTAL PERCENT
USED IN WATER GPF MONTHLY WATER GPF MONTHLY MONTHLY INCREASED
1 MONTH BILL BILL INCREASE
0 233.86 - 233.86 233.86 - 233.86 0.00 0.0%
20,000 279.26 9.40 288.66 279.26 9.40 288.66 0.00 0.0%
80,000 415.46 37.60 453.06 415.46 37.60 453.06 0.00 0.0%
100,000 460.86 47.00 507.86 460.86 47.00 507.86 0.00 0.0%
150,000 574.36 70.50 644.86 574.36 70.50 644.86 0.00 0.0%
TABLE FOR MONTHLY CHARGES AND PERCENT INCREASE COMPARISON
FOR CUSTOMERS WITH A 4-INCH METER - RECLAIMED WATER USE
BASE RATE 365.41$
COMMODITY RATE: TIER 1 = 2.27$ FOR ALL WATER USAGE
TIER 2 = N/A
TIER 3 = N/A
TIER 4 = N/A
GALLONS CURRENT CURRENT CURRENT PROPOSED PROPOSED PROPOSED TOTAL PERCENT
USED IN WATER GPF MONTHLY WATER GPF MONTHLY MONTHLY INCREASED
1 MONTH BILL BILL INCREASE
0 365.41 - 365.41 365.41 - 365.41 0.00 0.0%
220,000 864.81 103.40 968.21 864.81 103.40 968.21 0.00 0.0%
300,000 1,046.41 141.00 1,187.41 1,046.41 141.00 1,187.41 0.00 0.0%
450,000 1,386.91 211.50 1,598.41 1,386.91 211.50 1,598.41 0.00 0.0%
600,000 1,727.41 282.00 2,009.41 1,727.41 282.00 2,009.41 0.00 0.0%
TABLE FOR MONTHLY CHARGES AND PERCENT INCREASE COMPARISON
FOR CUSTOMERS WITH A 6-INCH METER - RECLAIMED WATER USE
BASE RATE 730.83$
COMMODITY RATE: TIER 1 = 2.27$ FOR ALL WATER USAGE
TIER 2 = N/A
TIER 3 = N/A
TIER 4 = N/A
GALLONS CURRENT CURRENT CURRENT PROPOSED PROPOSED PROPOSED TOTAL PERCENT
USED IN WATER GPF MONTHLY WATER GPF MONTHLY MONTHLY INCREASED
1 MONTH BILL BILL INCREASE
0 730.83 - 730.83 730.83 - 730.83 0.00 0.0%
900,000 2,773.83 423.00 3,196.83 2,773.83 423.00 3,196.83 0.00 0.0%
5,000,000 12,080.83 2,350.00 14,430.83 12,080.83 2,350.00 14,430.83 0.00 0.0%
10,000,000 23,430.83 4,700.00 28,130.83 23,430.83 4,700.00 28,130.83 0.00 0.0%
15,000,000 34,780.83 7,050.00 41,830.83 34,780.83 7,050.00 41,830.83 0.00 0.0%
20,000,000 46,130.83 9,400.00 55,530.83 46,130.83 9,400.00 55,530.83 0.00 0.0%
B-9
APPENDIX C
5-Year Capital Improvement Schedules
C-1 Operating Fund
C-2 Groundwater Preservation Fee
C-3 Alternative Water Resources Development Impact Fee Fund
C-3 Potable Water System Development Impact Fee Fund
Oro Valley Water Utility
Proposed Capital Projects Program
Project No. Project Name 2019-20 2020-21 2021-22 2022-23 2023-24 5 YearTotals
Wells
1 Nakoma Sky D Zone Well 800,000$ 800,000$
2 Well D8 Replacement Drill & Construct 700,000$ 900,000$ 1,600,000$
3 Mag Meter Replacements (10/yr.) 75,000$ 75,000$
4 Hydropneumatic Tank Replacement (1/yr) 150,000$ 100,000$ 100,000$ 100,000$ 100,000$ 550,000$
5 Well Rehabilitation (D1 & CS, E5B & E3, TBD)150,000$ 150,000$ 150,000$ 450,000$
6 Well Rehabilitation (TBD, TBD)150,000$ 150,000$ 300,000$
Subtotal 1,175,000$ 250,000$ 250,000$ 950,000$ 1,150,000$ 3,775,000$
Reservoirs
7 Reservoir Rehabilitation (no planned work)-$
Subtotal -$ -$ -$ -$ -$ -$
Boosters
8 High Mesa E & F Zone Bstr. Enhancements 50,000$ 50,000$
9 El Con Storage - Operational Improvements 50,000$ 50,000$
10 Replace Crimson Canyon Booster Station 250,000$ 250,000$
11 Hydropneumatic Tank Replace (High Mesa) 100,000$ 100,000$ 200,000$
12 E-F Booster Station at LC Res. (Woodburn) 100,000$ 500,000$ 600,000$
13 Booster Rehab (RDO & Woodshade) 150,000$ 150,000$
14 Booster Rehab (WP4 & TBD) 150,000$ 150,000$ 300,000$
15 Booster Rehab (TBD & TBD)150,000$ 150,000$ 300,000$
Subtotal 400,000$ 750,000$ 400,000$ 150,000$ 200,000$ 1,900,000$
Mains
16 12-inch F-zone main (Woodburn Booster) 100,000$ 100,000$
17 Fireline Backflow Protection 200,000$ 200,000$ 400,000$
18 Drinking Fountain Re-work 50,000$ 50,000$
19 Palisades Neighborhood Pipeline Redudancy 500,000$ 500,000$
20 Countryside DVA Replacements 210,000$ 210,000$
21 6-inch PRV on Rancho Sonora Dr 70,000$ 70,000$
22 6-inch PRV on Stargazer Dr.70,000$ 70,000$
23 Rancho Verde Hydrants 100,000$ 100,000$
24 Main Valve Replacements 50,000$ 50,000$ 50,000$ 150,000$
25 La Cholla -Lambert to Tangerine (RTA) 480,000$ 480,000$
26 Hilton Hotel & Casitas Main Replacement 150,000$ 150,000$
27 Linda Vista Citrus Tracts Main Replacement 250,000$ 250,000$ 250,000$ 750,000$
28 Pusch Ridge Estates Main Replacement 250,000$ 250,000$ 500,000$
Subtotal 940,000$ 720,000$ 720,000$ 500,000$ 650,000$ 3,530,000$
Structures & Walls
29 Wall Upgrades and Improvements 100,000$ 100,000$
Subtotal 100,000$ -$ -$ -$ -$ 100,000$
Meters & Equipment
30 Water Meters - New Connections 106,000$ 116,500$ 99,000$ 66,800$ 61,600$ 449,900$
31 SCADA Legacy Replacement 100,000$ 100,000$
32 Instrumentation Replacement 250,000$ 250,000$
33 Electric Sub-metering Wells/Boosters 75,000$ 75,000$
Subtotal 281,000$ 116,500$ 349,000$ 66,800$ 61,600$ 874,900$
Vehicles
34 Replacement Vehicles - Meter Operations 75,000$ 50,000$ 125,000$
35 Replacement Vehicles - Dist Vehicles 50,000$ 70,000$ 120,000$
36 Replacement Vehicles - Production Vehicles 70,000$ 75,000$ 145,000$
37 Replacement Vehicles - Const Inspectors 80,000$ 80,000$
Subtotal 70,000$ 125,000$ 125,000$ 70,000$ 80,000$ 470,000$
Total Existing System Improvements 2,966,000$ 1,961,500$ 1,844,000$ 1,736,800$ 2,141,600$ 10,649,900$
Existing System Improvement
Water Utility Operating Fund
C-1
Oro Valley Water Utility
Proposed Capital Projects Plan
Project Project Name % 2019-20 2020-21 2021-22 2022-23 2023-24 5 Year Total
NWRRDS Partnered Projects:
1 Program Support Services 40% 44,000$ 192,000$ 296,000$ 8,000$ 540,000$
2 Pipeline Design (recovered water & transmission)40% 440,462$ 440,462$
3 NWRRDS Forebay Design 40% 66,154$ 66,154$
4 Well Improvement Analysis & Recovery Permits 40% 40,000$ 40,000$
5 Well Drilling & Testing 40% 234,000$ 234,000$
6 Pipeline Construction 40% 880,923$ 880,923$ 1,761,846$
7 NWRRDS Forebay Reservoir Construction 40% 132,077$ 132,077$ 264,154$
8 Construction Permitting, Drill, Develop, Testing 40%780,000$ 780,000$
9 Well Equiping Design & Site Improvements 40%390,000$ 390,000$
Subtotal NWRRDS Partnered Projects 590,616$ 426,000$ 1,309,000$ 2,191,000$ -$ 4,516,616$
NWRRDS Independent Projects:
10 Pipeline Route Study & Prelim Design 40%-$
11 Shannon Rd Forebay Res & Bstr Prop Acquistion 40% 80,000$ 80,000$
12 Pipeline Easement Acquisition (9.68 miles) 40% 300,000$ 300,000$
13 Pipeline Design (9.68 miles 16-inch DIP) 40% 560,000$ 560,000$
14 NWRRDS Forebay Reservoir Bstr Station Design 40% 40,000$ 40,000$
15 Shannon Rd. Forebay Res & Bstr Station Design 40% 120,000$ 120,000$
16 Bstr Station Construct at NWRRDS Forebay Reservoir40% 200,000$ 200,000$
17 Shannon Rd Forebay Reservoir Construction 40%280,000$ 280,000$ 560,000$
18 Bstr Station Construct at Shannon Rd Forebay Reservoir40%100,000$ 100,000$ 200,000$
19 Pipe Const. from Bstr. at NWRRDS to LC Reservoir 40%3,920,000$ 3,920,000$
Subtotal NWRRDS Independent Projects 980,000$ 120,000$ 200,000$ 380,000$ 4,300,000$ 5,980,000$
NWRRDS Internal Projects:
20 NWRRDS Interconnect to Tangerine Rd. 40%180,000$ 180,000$
21 NWRRDS Interconnect to Lambert Ln. 40%340,000$ 340,000$
Subtotal NWRRDS Internal Projects -$ -$ -$ -$ 520,000$ 520,000$
Total NWRRDS Capital Improvements 1,570,616$ 546,000$ 1,509,000$ 2,571,000$ 4,820,000$ 11,016,616$
Groundwater Preservation Fees
CAP Water Delivery System Improvements (Existing Customers)
C-2
Oro Valley Water Utility
Proposed Capital Projects Plan
Project Project Name % 2019-20 2020-21 2021-22 2022-23 2023-24 5 Year Total
NWRRDS Partnered Projects:
1 Program Support Services 60% 66,000$ 288,000$ 444,000$ 12,000$ 810,000$
2 Pipeline Design (recovered water & transmission)60% 660,692$ 660,692$
3 NWRRDS Forebay Design 60% 99,231$ 99,231$
4 Well Improvement Analysis & Recovery Permits 60% 60,000$ 60,000$
5 Well Drilling & Testing 60% 351,000$ 351,000$
6 Pipeline Construction 60% 1,321,385$ 1,321,385$ 2,642,770$
7 NWRRDS Forebay Reservoir Construction 60% 198,116$ 198,116$ 396,232$
8 Construction Permitting, Drill, Develop, Testing 60%1,170,000$ 1,170,000$
9 Well Equiping Design & Site Improvements 60%585,000$ 585,000$
Subtotal NWRRDS Partnered Projects 885,923$ 639,000$ 1,963,501$ 3,286,501$ -$ 6,774,925$
NWRRDS Independent Projects:
10 Pipeline Route Study & Prelim Design 60%-$
11 Shannon Rd Forebay Res & Bstr Prop Acquistion 60% 120,000$ 120,000$
12 Pipeline Easement Acquisition (9.68 miles) 60% 450,000$ 450,000$
13 Pipeline Design (9.68 miles 16-inch DIP) 60% 840,000$ 840,000$
14 NWRRDS Forebay Reservoir Bstr Station Design 60% 60,000$ 60,000$
15 Shannon Rd. Forebay Res & Bstr Station Design 60% 180,000$ 180,000$
16 Bstr Station Construct at NWRRDS Forebay Reservoir60% 300,000$ 300,000$
17 Shannon Rd Forebay Reservoir Construction 60%420,000$ 420,000$ 840,000$
18 Bstr Station Construct at Shannon Rd Forebay Reserv oir60%150,000$ 150,000$ 300,000$
19 Pipe Const. from Bstr. at NWRRDS to LC Reservoir 60%5,880,000$ 5,880,000$
Subtotal NWRRDS Independent Projects 1,470,000$ 180,000$ 300,000$ 570,000$ 6,450,000$ 8,970,000$
NWRRDS Internal Projects:
20 NWRRDS Interconnect to Tangerine 60%270,000$ 270,000$
21 NWRRDS Interconnect to Lambert 60%510,000$ 510,000$
Subtotal NWRRDS Internal Projects -$ -$ -$ -$ 780,000$ 780,000$
Total NWRRDS Capital Improvements 2,355,923$ 819,000$ 2,263,501$ 3,856,501$ 7,230,000$ 16,524,925$
Project Project Name Category 2019-20 2020-21 2021-22 2022-23 2023-24 5 Year Total
1 Steam Pump D-Zone Well Potable 800,000$ 800,000$
2 Palisades C-Zone Storage Tank & Pipe Potable 500,000$ 300,000$ 1,450,000 2,000,000 4,250,000$
3 Moore Rd. Interconnect F-Zone Potable 750,000$ 750,000$
Total Expansion Related Capital Improvements 800,000$ 1,250,000$ 300,000$ 1,450,000$ 2,000,000$ 5,800,000$
Expansion Related Improvements
Alternative Water Resources Develoment Impact Fee Fund
CAP Water Delivery System Improvements (New Growth)
Potable Water System Develoment Impact Fee Fund
C-3
APPENDIX D
Assumptions for Preferred Financial Scenario
D-1 Operating Fund
D-6 Alternative Water Resources Development Impact Fee Fund
D-7 Potable Water System Development Impact Fee Fund
D-1
PREFERRED FINANCIAL SCENARIO
ASSUMPTIONS FOR OPERATING FUND
Growth
SFR growth rates for FY 2019-20 through FY 2023-24 were based on worksheets provided by D. Laws on
2/26/18 and are consistent with Town financial forecasting. Other growth rates include commercial, irrigation
and multi-family connections that were projected by Water Utility Staff.
Connections FY 19-20 FY 20-21 FY 21-22 FY 22-23 FY 23-24
SFR 387 415 344 227 204
Other 4 4 4 4 4
Current Water Rate Structure
The following base rates are for both the potable and reclaimed water meters:
Meter Sizes (in inches) Potable Reclaimed
5/8 x ¾ $ 16.45 $ 14.62
3/4 x ¾ $ 24.67 $ 21.93
1 $ 41.11 $ 36.54
1.5 $ 82.22 $ 73.08
2 $ 131.56 $ 116.94
3 $ 263.09 $ 233.86
4 $ 411.09 $ 365.41
6 $ 822.18 $ 730.83
8 $ 1,315.49 $ 1,169.32
The following commodity rates are the cost per 1,000 gallons for potable and reclaimed water use:
Classifications Tier 1 Tier 2 Tier 3 Tier 4
Single Family Residential $ 2.34 $ 3.25 $ 4.53 $ 6.29
Irrigation $ 2.34 $ 3.25 $ 4.53 $ 6.29
Multi-family Residential $ 2.34 --- --- ---
Commercial $ 2.34 --- --- ---
Construction Water $ 7.29 --- --- ---
Reclaimed Water $ 2.27 --- --- ---
GPF – Potable $ 0.90 --- --- ---
GPF – Reclaimed $ 0.47 --- --- ---
Proposed Water Rate Structure for FY 2019-20
The following are the proposed base rates for the potable and reclaimed water meters:
Meter Sizes (in inches) Potable Reclaimed
5/8 x 3/4 $ 18.26 $ 14.62
3/4 x 3/4 $ 27.38 $ 21.93
1 $ 45.63 $ 36.54
1.5 $ 91.26 $ 73.08
2 $ 146.03 $ 116.94
3 $ 292.03 $ 233.86
4 $ 456.31 $ 365.41
6 $ 912.62 $ 730.83
8 $ 1,460.19 $ 1,169.32
D-2
PREFERRED FINANCIAL SCENARIO
ASSUMPTIONS FOR OPERATING FUND continued
The following proposed commodity rates are the cost per 1,000 gallons for potable and reclaimed water use:
Classifications Tier 1 Tier 2 Tier 3 Tier 4
Single Family Residential $ 2.34 $ 3.25 $ 4.53 $ 6.29
Irrigation $ 2.34 $ 3.25 $ 4.53 $ 6.29
Multi-family Residential $ 2.34 --- --- ---
Commercial $ 2.34 --- --- ---
Construction Water $ 7.29 --- --- ---
Reclaimed Water $ 2.27 --- --- ---
GPF – Potable $ 0.90 --- --- ---
GPF – Reclaimed $ 0.47 --- --- ---
There are no proposed changes to the usage allowed in each tier of the SF Residential and Irrigation
classifications.
Proposed Potable Water Rate Increases
The “overall increase” and “monthly impact” are representative of a customer with a 5/8-inch water
meter using 7,000 gallons of water per month.
Base Overall Monthly
Rate Tier 1 Tier 2 Tier 3 Tier 4 GPF Increase Impact
FY 19-20 11.0% 0.0% 0.0% 0.0% 0.0% 0.0% 4.6% $ 1.81
FY 20-21 10.0% 0.0% 0.0% 0.0% 0.0% 0.0% 4.5% $ 1.83
FY 21-22 5.5% 0.0% 0.0% 0.0% 0.0% 0.0% 2.6% $ 1.10
FY 22-23 5.5% 0.0% 0.0% 0.0% 0.0% 0.0% 2.7% $ 1.17
FY 23-24 5.5% 0.0% 0.0% 0.0% 0.0% 0.0% 2.7% $ 1.23
Proposed Reclaimed Water Rate Increases
The proposed reclaimed rate increases are shown below:
Base Commodity Overall Monthly
Rate Rate GPF Increase Impact
FY 19-20 0.0% 0.0% 0.0% 0.0% $ 0.00
FY 20-21 10.0% 0.5% 0.0% 0.6% $ 173.08
FY 21-22 10.0% 0.5% 0.0% 0.6% $ 180.39
FY 22-23 10.0% 0.5% 0.0% 0.7% $ 188.43
FY 23-24 10.0% 0.3% 0.0% 0.7% $ 197.28
Groundwater Preservation Fee Rates (cost per 1,000 gallons)
There are no proposed changes in the GPF throughout the five-year projection period.
Water Use Trends
The average monthly water use for a residential customer with a 5/8-inch water meter increased in FY 2017-18
to 7,900 gallons per month due to extreme weather conditions. However, this analysis assumes the same water
use trends as the last 3 years which was 7,300 gallons per month as this provides a more realistic projection.
Projected reclaimed deliveries were reduced by 100 million gallons annually for the reduction in water
deliveries to Vistoso Golf Course.
Other Revenue
Other revenue is based on FY 2018-19 proposed budget. With the exception of revenue from sewer billing,
Other revenue is not projected to increase because misc. charges fluctuate annually. Other revenue includes
Late fees, reconnect fees, new service establishment fees, sewer billing, stormwater billing and meter income.
Sewer billing is projected to increase 1% annually over the five-year period.
D-3
PREFERRED FINANCIAL SCENARIO
ASSUMPTIONS FOR OPERATING FUND continued
Beginning Cash Balance
Cash balance is estimated based on budgeted revenue, expenditures and known cost over runs for FY 2018-19.
Began with actual cash balance at 6/30/18 as shown on the Balance Sheet report dated 10-17-18, added
budgeted revenues, subtracted budgeted and known unbudgeted expenditures.
Interest Income
The interest rates vary for the five years in the analysis period. FY 2019-20 through 2022-23 were provided by
the Finance Department on 8/29/18. FY 2023-24 was estimated by the Water Utility Staff.
FY 19-20 FY 20-21 FY 21-22 FY 22-23 FY 23-24
2.58% 2.69% 2.73% 2.75% 2.00%
Personnel Costs
No new employees were added during the projection period. The following increases were provided by the
Finance Department on 8/29/18 and are consistent with Town financial forecasting: the annual merit increase
is projected to be 3% annually and health care costs are projected to increase by 5% annually. It is projected
that the state pension is projected to increase 2.5% annually over the five-year projection period.
O&M Costs - Potable
Based on the Utility’s proposed budget for FY 2018-19 plus 1.5% inflation. Costs increase annually by 1.5%
inflation except power costs. Projected 10% increase in power costs for a potential Tucson Electric rate
increase in FY 2021-22.
Groundwater Extinguishment Credits
Costs for the purchase of Groundwater Extinguishment Credits are included in potable O&M costs. The
following table outlines Groundwater Extinguishment credits to be purchased during this projection period:
FY 19-20 FY 20-21 FY 21-22 FY 22-23 FY 23-24
$850,000 $850,000 $500,000 $500,000 $500,000
O&M Costs - Reclaimed
Due to the reduction in reclaimed water usage by Vistoso Golf course, costs specific to reclaimed water
deliveries (chemicals, power and reclaimed water wheeling costs) were reduced by $87,983. Remaining O&M
costs are based on the Utility’s proposed budget for FY 2018-19 plus 1.5% inflation. Costs increase annually by
1.5% inflation except power costs. Projected 10% increase in power costs for a potential Tucson Electric rate
increase in FY 2021-22. The O&M costs now include allocations for personnel, administrative costs, fleet service
costs and trustee services which had not been done in the past. The allocations were based on the gallons of
reclaimed water sold compared to the total gallons of water sold. The allocations represent 23% of the total
applicable costs with the exception of personnel costs. Personnel costs have been allocated based on the
function of the staff within a division as follows: Administration = 5%; Billing = 5%; Conservation = 0%;
Engineering = 5%; Construction Inspection = 0%; Operations = 23%.
Inflation Rates
The Town’s Finance Department provided a range of 1-2% per year for inflation rates on 8/29/18. For purposes
of this report, the inflation rate will be 1.5% annually for the 5-year period.
FY 19-20 FY 20-21 FY 21-22 FY 22-23 FY 23-24
1.5% 1.5% 1.5% 1.5% 1.5%
D-4
PREFERRED FINANCIAL SCENARIO
ASSUMPTIONS FOR OPERATING FUND continued
Reclaimed Water Wheeling Costs
Pursuant to the existing IGA, the reclaimed water is delivered on a non-interruptible basis at an interruptible
rate. Inflationary increases of 1.5% are included annually.
CAP Wheeling Costs
Costs include the fees charged by Tucson Water to wheel the CAP water through their recharge and recovery
system. Tucson Water fees are in accordance with an IGA. The increases will be 7% for FY 19-20 and 4% each
following year. It is also assumed that the Utility will wheel 2,510 AF annually for the 5-year period.
CAP Recharge Costs
Costs are based on the rate schedule adopted by CAP 6/07/18. The figures represent the annual cost to deliver
the Utility’s entire allotment of CAP water (10,305 AF) for recharge.
Capital Improvements – Operating Fund
The following table identifies the amount of the capital projects for the existing potable water system for
each fiscal year and the projected financing as identified in the revised five-year CIP dated 12/26/18.
Fiscal Total Project Financing
Year Capital Costs Cash Reserves New Debt
2019-20 $ 2,966,000 $ 661,000 $ 2,305,000
2020-21 $ 1,961,500 $ 661,500 $ 1,300,000
2021-22 $ 1,844,000 $ 1,844,000 -------
2022-23 $ 1,736,800 $ 1,736,800 -------
2023-24 $ 2,141,600 $ 2,141,600 ___-------___
$10,649,900 $ 7,044,900 $ 3,605,000
Capital Improvements – Groundwater Preservation Fee
The following table identifies the capital projects for the existing customers’ portion of the NWRRDS
CAP water delivery system and the projected financing as identified in the revised CIP dated 12/26/18.
The projects will be both cash funded with revenue from groundwater preservation fees and new debt.
Fiscal Total Project Financing
Year Capital Costs Cash Reserves New Debt
2019-20 $ 1,570,616 $ 1,570,616 ------
2020-21 $ 546,000 $ 546,000 ------
2021-22 $ 1,509,000 $ 1,509,000 ------
2022-23 $ 2,571,000 $ 0 $ 2,571,000
2023-24 $ 4,820,000 $ 2,391,000 $ 2,429,000
$ 11,016,616 $ 6,016,616 $ 5,000,000
Debt Service
The following table identifies the existing and proposed debt service included in this pro forma:
Bonds Type Description Amortization Schedule By
2008 Sr. Lien Reclaimed Ph. 2 WIFA
2009 Sr. Lien Existing System CIP WIFA
2012 Sr. Lien Refunding (Reclaim Ph. 1) Stone & Youngberg
2012 Sr. Lien Refunding (2003) Stone & Youngberg
2014 Sr. Lien AMI Project WIFA
2015 Excise Tax Refunding (2005) Stifel & Nicolaus & Co.
2017 Excise Tax Refunding (2007) Stifel & Nicolaus & Co.
2018 Excise Tax Existing System CIP Stifel & Nicolaus & Co.
2023 Sr. Lien NWRRDS Oro Valley Water Utility Staff
D-5
PREFERRED FINANCIAL SCENARIO
ASSUMPTIONS FOR OPERATING FUND continued
Minimum Debt Service Coverage Requirement
1.30 debt service coverage ratio for 2012 Sr. Lien Bonds, proposed 2023 Sr. Lien Bonds & all WIFA Loans
1.00 debt service coverage ratio for all Excise Tax Pledged Bonds
Cash Reserve Requirement
Mayor and Town Council Water Policies require the Utility to maintain cash reserves in the Operating Fund of
not less than 20% of the combined total of the annual budgeted amounts for personnel, O&M and debt service.
This specifically excludes costs for capital projects, depreciation, amortization and contingency.
D-6
PREFERRED FINANCIAL SCENARIO
ASSUMPTIONS FOR AWRDIF FUND
Growth
SFR growth rates for FY 2019-20 through FY 2023-24 were provided by the Finance Department on 8/29/18
and are consistent with Town financial forecasting. The projected growth for FY 2023-24 has been estimated
based on worksheets provided by D. Laws on 2/6/18. Other Service Units (SU’s) include commercial, irrigation
and multi-family connections and were projected by Water Utility staff.
FY 19-20 FY 20-21 FY 21-22 FY 22-23 FY 23-24
SFR SU’s 387 415 344 227 204
Other SU’s 10 10 10 10 10
AWRD Impact Fees
Impact fees are $4,045 per service unit, Ordinance No. (O) 14-05, effective 7/01/14. The mandatory 5-year
Impact Fee Analysis will be performed in 2019. It is not anticipated that the fees will increase.
Beginning Cash Balance
Cash balance is estimated based on budgeted revenue and expenditures for FY 2018-19. Began with
actual cash balance on 6/30/18 as shown on the Balance Sheet report dated 10-17-18, added budgeted
revenue and subtracted budgeted expenditures.
Interest Income
The interest rates vary for the five years in the analysis period. FY 2019-20 through 2022-23 were provided by
the Finance Department on 8/29/18. FY 2023-24 was an estimated projection by the Water Utility Staff
FY 19-20 FY 20-21 FY 21-22 FY 22-23 FY 23-24
2.58% 2.69% 2.73% 2.75% 2.00%
Debt Service
There is no new debt in this fund during the projection period. The following table identifies the existing debt
service included in this pro forma:
Bonds Type Description Amortization Schedule By
2023 Sr. Lien NWRRDS Oro Valley Water Utility Staff
Debt Service Coverage
1.3 debt service coverage ratio for the proposed 2023 Senior Lien Bonds
CAP Capital Costs
Based on 3,557 AF at rate schedule adopted by CAP 6/07/18.
Capital Improvements
The following table identifies the amount of the NWRRDS CAP water capital projects for each fiscal year
and the related financing as identified in the revised five year CIP dated 12/26/18:
Fiscal Total Project Financing
Year Capital Costs Cash Reserves New Debt
2019-20 $ 2,355,923 $ 2,355,923 ------
2020-21 $ 819,000 $ 819,000 ------
2021-22 $ 2,263,501 $ 2,263,501 ------
2022-23 $ 3,856,501 $ 3,856,501 ------
2023-24 $ 7,230,000 $ 2,230,000 $ 5,000,000
$16,524,925 $11,524,925 $ 5,000,000
D-7
PREFERRED FINANCIAL SCENARIO
ASSUMPTIONS FOR PWSDIF FUND
Growth
SFR growth rates for FY 2019-20 through FY 2022-24 were provided by the Finance Department on 8/29/18
and are consistent with Town financial forecasting. The project growth for FY 2023-24 has been estimated
based on worksheets provided by D. Laws on 2/26/18. Other Service Units (SU’s) include commercial, irrigation
and multi-family connections and were projected by Water Utility staff.
FY 19-20 FY 20-21 FY 21-22 FY 22-23 FY 23-24
SFR SU’s 387 415 344 227 204
Other SU’s 10 10 10 10 10
PWSD Impact Fees
Impact fees are $2,015 per service unit, Ordinance No. (O) 14-05, effective 7/01/14. The mandatory 5-year
Impact Fee Analysis will be performed in 2019. It is not anticipated that the fees will increase.
Beginning Cash Balance
Cash balance is estimated based on budgeted revenue and expenditures for FY 2018-19. Began with
actual cash balance on 6/30/18 as shown on the Balance Sheet report dated 10-17-18, added budgeted
revenue and subtracted budgeted expenditures.
Interest Income
The interest rates vary for the five years in the analysis period. FY 2019-20 through 2022-23 were provided by
the Finance Department on 8/29/18. FY 2023-24 was an estimated projection by the Water Utility Staff.
FY 19-20 FY 20-21 FY 21-22 FY 22-23 FY 23-24
2.58% 2.69% 2.73% 2.75% 2.00%
Debt Service
There is no new debt in this fund during the projection period. The following table identifies the existing debt
service included in this pro forma:
Bonds Type Description Amortization Schedule By
2012 Sr. Lien Refunding (2003) Stone & Youngberg
Debt Service Coverage
1.30 debt service coverage ratio for 2012 Sr. Lien Bonds
Capital Improvements
The following table identifies the amount of growth-related capital projects for each fiscal year
and the related financing as identified in the revised five year CIP dated 12/26/18:
Fiscal Total Project Financing
Year Capital Costs Cash Reserves New Debt
2019-20 $ 800,000 $ 800,000 ------
2020-21 $ 1,250,000 $ 1,250,000 ------
2021-22 $ 300,000 $ 300,000 ------
2022-23 $ 1,450,000 $ 1,450,000 ------
2023-24 $ 2,000,000 $ 2,000,000 ------
$ 5,800,000 $ 5,800,000
Town Council Regular Session 3.
Meeting Date:05/15/2019
Requested by: Stacey Lemos Submitted By:Stacey Lemos, Finance
Department:Finance
Information
SUBJECT:
PUBLIC HEARING: RESOLUTION NO. (R)19-22, ADOPTION OF THE TENTATIVE BUDGET FOR FY 2019/20
AND SETTING THE LOCAL ALTERNATIVE EXPENDITURE LIMITATION FOR FY 2019/20
RECOMMENDATION:
Staff recommends approval, and the Budget and Finance Commission are scheduled to meet on May 14, 2019 to
review and discuss the budget and may provide their recommendations.
EXECUTIVE SUMMARY:
This item is for Council consideration and adoption of the Town's Tentative Budget for FY 2019/20 in the amount of
$111,019,716, a $690,531 increase from the FY 2019/20 Recommended Budget of $110,329,185, presented on
April 17, 2019. This increase is attributable to three things:
First, new information has been presented to the Town Manager regarding the potential financial
participation by area HOAs in an approach to the operation of the Town's golf courses. While the
outcome of the conceptual proposal is unknown at this time, the potential addition of this private funding
source to the operation would be better accounted for in the current, separate fund structure within the
existing Community Center Fund. Due to the immediacy of the budget approval schedule in advance of
determining whether this proposal will come to fruition, the Town Manager is recommending that the
Community Center Fund remain in place for FY 2019/20 and be revisited next year following the Town
Council's decision on the golf courses. By making this change and keeping this fund separate, the overall
budget total increases by $545,531, the amount of year-end contingency reserves calculated for the
Community Center Fund operations.
Second, the Town will need to rollover to next fiscal year the Town Facilities Roof Replacements capital
improvement project budgeted in the current fiscal year in the Capital Fund in the amount of $225,000. The Town
was unable to secure an affordable, responsive bid for this project and will plan to rebid this project after the start of
the new fiscal year.
Third, the above increase is offset by a decrease of $80,000 from $375,000 to $295,000 in the cost of the CED/PW
Building Front Office Enhancement capital project requested for FY 19/20 based on updated estimates provided by
the Public Works Director.
Finally, the budget for gasoline in the Fleet division in the General Fund was increased by $100,000 to
accommodate for the trend in increasing fuel costs. This increase will be offset by a reduction in the General Fund
contingency reserves of $100,000 (from $1,000,000 to $900,000) for a net zero impact on the overall General Fund
budget amount.
Adoption of this resolution will also set the maximum local expenditure limitation at $111,019,716. Once the
limitation is set, expenditures for the year may not exceed that amount. The Council has the authority to make
changes to the budget prior to the final budget adoption scheduled for June 5, 2019; however, the total amount of
the final budget may not exceed the expenditure limitation set this evening. The Council also has the authority to
modify the budget throughout the fiscal year.
BACKGROUND OR DETAILED INFORMATION:
Staff presented the FY 2019/20 Manager's Recommended Budget in the amount of $110,329,185 at the April 17,
2019 regular Town Council meeting. The full copy of the Recommended Budget has been posted on the Town's
website, www.orovalleyaz.gov.
The FY 2019/20 Tentative Budget is presented for approval this evening in the amount of $111,019,716, an
increase of $690,531 from the Recommended Budget. This increase is attributable to the rollover of the Town
Facilities Roof Replacements project budgeted in the current fiscal year in the Capital Fund to next fiscal year in
the amount of $225,000. This increase is offset by a decrease of $80,000 from $375,000 to $295,000 in the
estimated cost of the CED/PW Building Front Office Enhancement capital project requested for FY 19/20 based on
updated estimates provided by the Public Works Director.
Additionally, as discussed in the Executive Summary above, the impact of removing the Community Center Fund
operating revenues and expenditures from the General Fund and maintaining the status quo with the separate
Community Center Fund results in a budget increase of $545,531 due to the need to budget the year-end
calculated contingency reserves for the Community Center Fund operations.
Finally, the budget for gasoline in the Fleet division in the General Fund was increased by $100,000 to
accommodate for the trend in increasing fuel costs. This increase will be offset by a reduction in the General Fund
contingency reserves of $100,000, leaving the overall General Fund budget unchanged.
These adjustments have been incorporated into the budget figures shown in the attached Official Auditor General
budget forms (to be delivered prior to the meeting date of May 15, 2019).
Council budget study sessions were held on April 24 and May 8, 2019, to provide overviews of the larger service
delivery department budgets, Town administrative department budgets and the Capital Improvement Program. The
Budget and Finance Commission are scheduled to review and discuss the budget at their May 14, 2019 meeting,
and may provide their recommendations. This agenda item is a public hearing and approval of the resolution to
adopt the FY 2019/20 Tentative Budget in the amount of $111,019,716. Once approved, the Auditor General
Budget forms with the approved budget amounts will be published for two consecutive weeks prior to the next
public hearing for Final Budget approval scheduled for June 5, 2019.
FISCAL IMPACT:
The proposed Tentative Budget for FY 19/20 is an increase of $690,531 over the Recommended Budget presented
on April 17, 2019. This increase in attributable to the following:
Maintain separate Community Center Fund
with contingency reserves $545,531
Rollover of Town Facilities Roof Project $225,000
Reduced CED/PW Bldg Enhancements ($80,000)
Total net increase $690,531
SUGGESTED MOTION:
I MOVE to (approve or deny) Resolution No. (R)19-22, adopting the Tentative Budget for Fiscal Year 2019/20, and
setting the local alternative expenditure limitation for Fiscal Year 2019/20 at $111,019,716.
or
I move...
Attachments
(R)19-22 Tentative Adopt Resolution
AG Schedules FY 19/20
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RESOLUTION NO. (R)19-22
A RESOLUTION OF THE MAYOR AND TOWN COUNCIL OF THE
TOWN OF ORO VALLEY, ARIZONA, ADOPTING ESTIMATES OF THE
AMOUNTS REQUIRED FOR THE FISCAL YEAR 2019/2020 AS A
TENTATIVE BUDGET; SETTING FORTH THE RECEIPTS AND
EXPENDITURES/EXPENSES FOR THE FISCAL YEAR 2019/2020;
GIVING NOTICE OF THE TIME FOR THE FINAL PUBLIC HEARING
FOR ADOPTING THE BUDGET FOR THE FISCAL YEAR 2019/2020;
PROVIDING FOR CONTINGENCIES; PROVIDING FOR THE USE OF
FUNDS; SETTING THE LOCAL ALTERNATIVE EXPENDITURE
LIMITATION FOR FISCAL YEAR 2019/2020
WHEREAS, the A.R.S. 42-17101 requires that cities and towns in Arizona adopt a tentative
budget by the third Monday in July of each year; and
WHEREAS, the Town Council and staff held Council Budget Study Sessions on April 24 and
May 8, 2019 to establish and review the proposed budget; and
WHEREAS, adoption of the budget will allow the Town of Oro Valley local government to
provide the necessary public services for the health, welfare and safety of its citizenry.
NOW, THEREFORE, BE IT RESOLVED by the Mayor and Town Council of the Town of
Oro Valley, Arizona that:
SECTION 1. The statements and schedules of the tentative budget for the fiscal year 2019/2020
accompany and be included as part of this Resolution as attached hereto.
SECTION 2. The statements and schedules herein contained be adopted for the purpose as
hereafter set forth as the tentative budget for the Town of Oro Valley, Arizona for the fiscal year
2019/2020
SECTION 3. The statements setting forth the receipts, expenditures/expenses and amounts
collectible for the fiscal year 2019/2020 accompany and be included as part of this resolution.
SECTION 4 The local alternative expenditure limitation as noted on the Summary Sched ule of
Estimated Revenues and Expenditures/Expenses for the fiscal year 2019/2020 be included as part
of this resolution.
SECTION 5. The Town Clerk is hereby authorized and directed to publish in the manner
prescribed by law, the estimates of expenditure s/expenses, as hereinafter set forth, together with a
notice that the Town Council will meet for the purpose of final public hearing and for adoption of
the budget for fiscal year 2019/2020 for the Town of Oro Valley, Arizona on the 5th day of June ,
2019.
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SECTION 6. The money from any fund may be used for any of the appropriations except money
specifically restricted by State Law or by Town Ordinance or Resolution.
SECTION 7. The various Town officers and employees are hereby directed to perform all acts
necessary or desirable to give effect to this resolution.
PASSED AND ADOPTED by the Mayor and Town Council of the Town of Oro Valley, Arizona ,
this 15th day of May, 2019.
TOWN OF ORO VALLEY
___
Joseph C. Winfield, Mayor
ATTEST: APPROVED AS TO FORM:
____________________________
Michael Standish, Town Clerk Tobin Sidles, Legal Services Director
Date:_______________________ Date:_____________________
OFFICIAL BUDGET FORMS
Town of Oro Valley
Fiscal Year 2020
4/19 Arizona Auditor General's Office Official City/Town Budget Forms
Fiscal YearGeneral FundSpecial Revenue Fund Debt Service FundCapital Projects Fund Permanent FundEnterprise Funds AvailableInternal Service FundsTotal All Funds2019 Adopted/Adjusted Budgeted Expenditures/Expenses* E149,243,35711,862,3501,315,66443,558,6000 32,519,3674,406,893142,906,2312019 Actual Expenditures/Expenses** E235,913,53710,544,1921,215,98414,078,0200 20,176,9653,830,45485,759,1522020 Fund Balance/Net Position at July 1*** 315,369,503723,83896,062 22,193,1169,941,184736,50849,060,2112020 Primary Property Tax LevyB4002020 Secondary Property Tax LevyB502020 Estimated Revenues Other than Property Taxes C639,236,221 10,859,512325,421 14,110,5630 20,562,7004,014,97289,109,3892020 Other Financing Sources D70 0 0 3,000,0000 2,305,0000 5,305,0002020 Other Financing (Uses) D80 0 00000 02020 Interfund Transfers In D9120,000 0 1,046,7181,350,0000 0 0 2,516,7182020 Interfund Transfers (Out) D102,145,436268,810 0 100,000 0 2,472 0 2,516,7182020 Reduction for Amounts Not Available11LESS: Amounts for Future Debt Retirement:0Future Capital Projects14,577,2625,697,93020,275,192Maintained Fund Balance for Financial Stability11,943,184236,50812,179,692002020 Total Financial Resources Available1240,637,10411,314,5401,468,201 25,976,4170 27,108,4824,514,972111,019,7162020 Budgeted Expenditures/ExpensesE1340,637,10411,314,5401,468,201 25,976,4170 27,108,4824,514,972111,019,716EXPENDITURE LIMITATION COMPARISON2019 20201Budgeted expenditures/expenses142,906,231$ 111,019,716$ 2Add/subtract: estimated net reconciling items3Budgeted expenditures/expenses adjusted for reconciling items142,906,231 111,019,716 4Less: estimated exclusions5Amount subject to the expenditure limitation142,906,231$ 111,019,716$ 6EEC expenditure limitation142,906,231$ 111,019,716$ X******Town of Oro ValleySummary Schedule of Estimated Revenues and Expenditures/ExpensesFiscal Year 2020Includes actual amounts as of the date the proposed budget was prepared, adjusted for estimated activity for the remainder of the fiscal yeaAmounts on this line represent Fund Balance/Net Position amounts except for amounts not in spendable form (e.g., prepaids and inventories) or legally or contractually required to be maintained intact (e.g., principal of a permanent fund).SchFUNDSIncludes Expenditure/Expense Adjustments Approved in the current year from Schedule E. The city/town does not levy property taxes and does not have special assessment districts for which property taxes are levied. Therefore, Schedule B has been omitted. 4/19 Arizona Auditor General's OfficeSCHEDULE AOfficial City/Town Budget Forms
ESTIMATED
REVENUES
ACTUAL
REVENUES*
ESTIMATED
REVENUES
2019 2019 2020
GENERAL FUND
Local taxes
Local Sales Tax $ 18,752,418 $ 19,081,797 $ 18,686,206
Cable Franchise Tax 685,000 620,000 625,000
Licenses and permits
Licenses 204,000 204,300 206,300
Permits 1,797,596 1,753,734 1,624,818
Fees 134,500 178,062 153,000
Intergovernmental
State/County Shared 11,708,575 11,708,575 12,530,715
State Grants 118,800 75,000 75,000
Federal Grants 596,162 409,607 549,543
Reimbursements 1,715,900 1,311,639 1,585,000
Other 90,000 90,000 90,000
Charges for services
Reimbursements 135,000 173,400 152,400
Fees 1,259,945 1,317,567 1,369,700
Other 1,013,917 1,013,958 1,030,539
Fines and forfeits
Fines 120,000 120,000 120,000
Interest on investments
Interest Income 150,000 150,000 150,000
Miscellaneous
Miscellaneous 306,750 316,600 288,000
Total General Fund $ 38,788,563 $ 38,524,239 $ 39,236,221
*
Town of Oro Valley
Revenues Other Than Property Taxes
Fiscal Year 2020
Includes actual revenues recognized on the modified accrual or accrual basis as of the date the proposed budget was
prepared, plus estimated revenues for the remainder of the fiscal year.
SOURCE OF REVENUES
4/19 Arizona Auditor General's Office SCHEDULE C Official City/Town Budget Forms
ESTIMATED
REVENUES
ACTUAL
REVENUES*
ESTIMATED
REVENUES
2019 2019 2020
Town of Oro Valley
Revenues Other Than Property Taxes
Fiscal Year 2020
SOURCE OF REVENUES
SPECIAL REVENUE FUNDS
Highway User Revenue Fund
Highway User Fuel Tax $ 3,291,659 $ 3,620,156 $ 3,604,407
Permits 48,700 30,500
Interest Income 50,000 50,000
State Grants 165,000 126,767 180,000
Other 3,000 1,894 1,500
$ 3,558,359 $ 3,829,317 $ 3,785,907
Seizures & Forfeitures
Seizures & Forfeitures $ 325,000 $ 75,730 $ 325,000
Interest Income 7,000
$ 325,000 $ 82,730 $ 325,000
Community Center Fund
Local Sales Tax $ 2,384,558 $ 2,431,038 $ 2,478,552
Charges for Services 4,253,088 4,068,121 4,250,551
Other 19,502 19,377 19,502
$ 6,657,148 $ 6,518,536 $ 6,748,605
Total Special Revenue Funds $ 10,540,507 $ 10,430,583 $ 10,859,512
DEBT SERVICE FUNDS
Municipal Debt Service Fund
Federal Grants $ 47,578 $ 47,578 $ 43,509
Interest Income 8,000 5,000
Miscellaneous 100,000 100,000 100,000
$ 147,578 $ 155,578 $ 148,509
Oracle Road Improvement District
Special Assessments $ 184,428 $ 176,076 $ 176,912
$ 184,428 $ 176,076 $ 176,912
Total Debt Service Funds $ 332,006 $ 331,654 $ 325,421
* 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.
4/19 Arizona Auditor General's Office SCHEDULE C Official City/Town Budget Forms
ESTIMATED
REVENUES
ACTUAL
REVENUES*
ESTIMATED
REVENUES
2019 2019 2020
Town of Oro Valley
Revenues Other Than Property Taxes
Fiscal Year 2020
SOURCE OF REVENUES
CAPITAL PROJECTS FUNDS
Alternative Water Resources Development Impact Fee Fund
Development Impact Fees $ 1,476,597 $ 1,497,625 $ 1,276,190
Interest Income 34,485 34,485 40,000
$ 1,511,082 $ 1,532,110 $ 1,316,190
Potable Water System Development Impact Fee Fund
Development Impact Fees $ 735,557 $ 709,669 $ 635,728
Interest Income 37,238 31,726 36,800
$ 772,795 $ 741,395 $ 672,528
Townwide Roadway Development Impact Fee Fund
Development Impact Fees $ 510,964 $ 413,044 $ 541,430
Interest Income 10,000 50,000 30,000
State Grants 250,000 250,000
$ 770,964 $ 713,044 $ 571,430
Parks and Recreation Impact Fee Fund
Development Impact Fees $ 261,936 $ 269,403 $ 244,816
Interest Income 2,000 500
$ 263,936 $ 269,903 $ 244,816
Police Impact Fee Fund
Development Impact Fees $ 111,678 $ 103,093 $ 111,074
Interest Income 1,000
$ 111,678 $ 104,093 $ 111,074
General Government Impact Fee Fund
Interest Income $ $ 25 $
$$25$
Capital Fund
Miscellaneous $ 420,400 $ 700,755 $ 536,900
State Grants 100,000 100,000
Federal Grants 229,500
$ 420,400 $ 800,755 $ 866,400
PAG/RTA Fund
State Grants $ 11,964,000 $ 5,489,953 $ 10,300,000
Other 22,500 28,125 28,125
Miscellaneous 1,387
$ 11,986,500 $ 5,519,465 $ 10,328,125
Total Capital Projects Funds $ 15,837,355 $ 9,680,790 $ 14,110,563
* 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.
4/19 Arizona Auditor General's Office SCHEDULE C Official City/Town Budget Forms
ESTIMATED
REVENUES
ACTUAL
REVENUES*
ESTIMATED
REVENUES
2019 2019 2020
Town of Oro Valley
Revenues Other Than Property Taxes
Fiscal Year 2020
SOURCE OF REVENUES
ENTERPRISE FUNDS
Water Utility Fund
Water Sales $ 13,152,900 $ 12,648,100 $ 13,714,000
Charges for Services 3,183,500 3,164,900 3,262,700
Interest Income 62,333 62,333 63,000
$ 16,398,733 $ 15,875,333 $ 17,039,700
Stormwater Utility Fund
Charges for Services $ 1,407,000 $ 1,409,157 $ 1,422,000
Interest Income 2,000 1,300 1,000
State Grants 2,000,000 2,100,000
Miscellaneous 210
$ 3,409,000 $ 1,410,667 $ 3,523,000
Total Enterprise Funds $ 19,807,733 $ 17,286,000 $ 20,562,700
INTERNAL SERVICE FUNDS
Benefit Self Insurance Fund
Miscellaneous $ 3,828,334 $ 3,830,454 $ 4,014,972
$ 3,828,334 $ 3,830,454 $ 4,014,972
Total Internal Service Funds $ 3,828,334 $ 3,830,454 $ 4,014,972
TOTAL ALL FUNDS $ 89,134,498 $ 80,083,720 $ 89,109,389
* 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.
4/19 Arizona Auditor General's Office SCHEDULE C Official City/Town Budget Forms
FUND SOURCES (USES)IN (OUT)
GENERAL FUND
Transfer from Community Center Fund $ $ $ 120,000 $
Transfer to Capital Fund 1,350,000
Transfer to Debt Service Fund 795,436
Total General Fund $ $ $ 120,000 $ 2,145,436
SPECIAL REVENUE FUNDS
Community Center Fund$$$$268,810
Total Special Revenue Funds $$$$268,810
DEBT SERVICE FUNDS
Municipal Debt Service Fund $ $ $ 1,046,718 $
Total Debt Service Funds $ $ $ 1,046,718 $
CAPITAL PROJECTS FUNDS
Capital Fund $ $ $ 1,350,000 $
Community Center Bond Fund 3,000,000
Police Impact Fee Fund 100,000
Total Capital Projects Funds $ 3,000,000 $ $ 1,350,000 $ 100,000
ENTERPRISE FUNDS
Water Utility Fund $ 2,305,000 $ $ $ 2,472
Total Enterprise Funds $ 2,305,000 $ $ $ 2,472
TOTAL ALL FUNDS $ 5,305,000 $ $ 2,516,718 $ 2,516,718
2020 2020
Town of Oro Valley
Other Financing Sources/(Uses) and Interfund Transfers
Fiscal Year 2020
OTHER FINANCING INTERFUND TRANSFERS
4/19 Arizona Auditor General's Office SCHEDULE D Official City/Town Budget Forms
ADOPTED
BUDGETED
EXPENDITURES/
EXPENSES
EXPENDITURE/
EXPENSE
ADJUSTMENTS
APPROVED
ACTUAL
EXPENDITURES/
EXPENSES*
BUDGETED
EXPENDITURES/
EXPENSES
FUND/DEPARTMENT 2019 2019 2019 2020
GENERAL FUND
Administrative Services $ 4,450,555 $ $ 4,333,677 $ 4,677,370
Clerk 444,559 414,826 366,336
Community and Economic Development 2,869,324 2,743,269 3,044,421
Council 210,494 203,910 206,001
General Administration 2,696,700 2,375,724 2,625,400
Legal 793,567 773,423 972,228
Magistrate Court 884,385 873,266 923,561
Town Manager's Office 1,251,370 1,247,578 1,314,145
Parks and Recreation 3,606,586 3,519,644 3,818,366
Police 16,557,555 16,064,374 16,978,769
Public Works 3,518,946 3,363,846 4,810,507
Contingency Reserve 11,959,316 900,000
Total General Fund $ 49,243,357 $ $ 35,913,537 $ 40,637,104
SPECIAL REVENUE FUNDS
Highway User Revenue Fund $ 4,912,895 $ $ 4,162,204 $ 4,213,739
Seizures & Forfeitures 604,393 437,137 372,883
Community Center Fund 6,345,062 5,944,851 6,727,918
Total Special Revenue Funds $ 11,862,350 $ $ 10,544,192 $ 11,314,540
DEBT SERVICE FUNDS
Municipal Debt Service Fund $ 1,121,499 $ $ 1,038,671 $ 1,282,049
Oracle Road Improvement District Fund 194,165 177,313 186,152
Total Debt Service Funds $ 1,315,664 $ $ 1,215,984 $ 1,468,201
CAPITAL PROJECTS FUNDS
Townwide Roadway Dev Impact Fee Fund $ 3,152,090 $ $ 5,000 $ 3,010,000
Alternative Water Rscs Dev Impact Fee Fund 9,297,630 529,730 2,859,800
Potable Water System Dev Impact Fee Fund 6,706,102 989,296 1,435,996
Parks and Recreation Impact Fee Fund 502,602 5,000 781,806
Police Impact Fee Fund 760,029 5,000 764,149
General Government Impact Fee Fund 3,539 3,580
Recreation In Lieu Fee Fund 15,718 15,718
Capital Fund 7,253,256 6,790,988 3,315,100
PAG/RTA Fund 12,867,634 5,753,006 10,790,268
Community Center Bond Fund 3,000,000 3,000,000
Total Capital Projects Funds $ 43,558,600 $ $ 14,078,020 $ 25,976,417
ENTERPRISE FUNDS
Water Utility Enterprise Fund $ 28,415,612 $ $ 18,880,517 $ 23,060,077
Stormwater Utility Fund 4,103,755 1,296,448 4,048,405
Total Enterprise Funds $ 32,519,367 $ $ 20,176,965 $ 27,108,482
INTERNAL SERVICE FUNDS
Benefit Self Insurance Fund $ 4,406,893 $ $ 3,830,454 $ 4,514,972
Total Internal Service Funds $ 4,406,893 $ $ 3,830,454 $ 4,514,972
TOTAL ALL FUNDS $ 142,906,231 $ $ 85,759,152 $ 111,019,716
*
Expenditures/Expenses by Fund
Fiscal Year 2020
Town of Oro Valley
Includes actual expenditures/expenses recognized on the modified accrual or accrual basis as of the date the proposed budget was prepared,
plus estimated expenditures/expenses for the remainder of the fiscal year.
4/19 Arizona Auditor General's Office SCHEDULE E Official City/Town Budget Forms
ADOPTED
BUDGETED
EXPENDITURES/
EXPENSES
EXPENDITURE/
EXPENSE
ADJUSTMENTS
APPROVED
ACTUAL
EXPENDITURES/
EXPENSES*
BUDGETED
EXPENDITURES/
EXPENSES
2019 2019 2019 2020
Administrative Services:
General Fund $ 4,450,555 $ $ 4,333,677 $ 4,677,370
Department Total $ 4,450,555 $ $ 4,333,677 $ 4,677,370
Clerk:
General Fund $ 444,559 $ $ 414,826 $ 366,336
Department Total $ 444,559 $ $ 414,826 $ 366,336
Community & Economic Development:
General Fund $ 2,869,324 $ $ 2,743,269 $ 3,044,421
Department Total $ 2,869,324 $ $ 2,743,269 $ 3,044,421
Council:
General Fund $ 210,494 $ $ 203,910 $ 206,001
Department Total $ 210,494 $ $ 203,910 $ 206,001
General Administration:
General Fund $ 2,696,700 $ $ 2,375,724 $ 2,625,400
General Fund - Contingency Reserve 11,959,316 900,000
Municipal Debt Service Fund 1,121,499 1,038,671 1,282,049
Oracle Road Improvement District Fund 194,165 177,313 186,152
Benefit Self Insurance Fund 4,406,893 3,830,454 4,514,972
General Government Impact Fee Fund 3,539 3,580
Capital Fund 7,253,256 6,790,988 3,315,100
Department Total $ 27,635,368 $ $ 14,213,150 $ 12,827,253
Legal:
General Fund $ 793,567 $ $ 773,423 $ 972,228
Department Total $ 793,567 $ $ 773,423 $ 972,228
Magistrate Court:
General Fund $ 884,385 $ $ 873,266 $ 923,561
Department Total $ 884,385 $ $ 873,266 $ 923,561
Town Manager's Office:
General Fund $ 1,251,370 $ $ 1,247,578 $ 1,314,145
Department Total $ 1,251,370 $ $ 1,247,578 $ 1,314,145
Parks and Recreation:
General Fund $ 3,606,586 $ $ 3,519,644 $ 3,818,366
Parks and Recreation Impact Fee Fund 502,602 5,000 781,806
Recreation In Lieu Fee Fund 15,718 15,718
Community Center Fund 6,345,062 5,944,851 6,727,918
Community Center Bond Fund 3,000,000 3,000,000
Department Total $ 13,469,968 $ $ 9,469,495 $ 14,343,808
Police:
General Fund $ 16,557,555 $ $ 16,064,374 $ 16,978,769
Seizures and Forfeitures 604,393 437,137 372,883
Police Impact Fee Fund 760,029 5,000 764,149
Department Total $ 17,921,977 $ $ 16,506,511 $ 18,115,801
Public Works:
General Fund $ 3,518,946 $ $ 3,363,846 $ 4,810,507
Highway Fund 4,912,895 4,162,204 4,213,739
Stormwater Utility Fund 4,103,755 1,296,448 4,048,405
PAG/RTA Fund 12,867,634 5,753,006 10,790,268
Townwide Roadway Dev Impact Fee Fund 3,152,090 5,000 3,010,000
Department Total $ 28,555,320 $ $ 14,580,504 $ 26,872,919
Water Utility:
Water Utility Fund $ 28,415,612 $ $ 18,880,517 $ 23,060,077
Alternative Water Rscs Dev Impact Fee Fund 9,297,630 529,730 2,859,800
Potable Water System Dev Impact Fee Fund 6,706,102 989,296 1,435,996
Department Total $ 44,419,344 $ $ 20,399,543 $ 27,355,873
*
Expenditures/Expenses by Department
Fiscal Year 2020
Town of Oro Valley
Includes actual expenditures/expenses recognized on the modified accrual or accrual basis as of the date the proposed budget was
prepared, plus estimated expenditures/expenses for the remainder of the fiscal year.
DEPARTMENT/FUND
4/19 Arizona Auditor General's Office SCHEDULE F Official City/Town Budget Forms
Full-Time Equivalent (FTE)Employee Salaries and Hourly Costs Retirement Costs Healthcare CostsOther Benefit CostsTotal Estimated Personnel Compensation2020 2020 2020 2020 2020 2020307 $ 19,714,874 $ 4,408,550 $ 2,728,460 $ 2,033,663 $ 28,885,547Highway User Revenue Fund 15 $ 1,021,661 $ 123,723 $ 133,082 $ 99,732 $ 1,378,198Community Center Fund 22 732,846 16,976 39,064 61,848 850,734Seizures and Forfeitures 1 50,870 19,631 5,480 6,865 82,846Total Special Revenue Funds38 $ 1,805,377 $ 160,330 $ 177,626 $ 168,445 $ 2,311,778Water Utility Fund 39 $ 2,441,056 $ 293,582 $ 405,920 $ 230,021 $ 3,370,579Stormwater Utility Fund 10 574,862 69,616 84,156 56,946 785,580Total Enterprise Funds50 $ 3,015,918 $ 363,198 $ 490,076 $ 286,967 $ 4,156,159TOTAL ALL FUNDS394 $ 24,536,169 $ 4,932,078 $ 3,396,162 $ 2,489,075 $ 35,353,484FUNDTown of Oro ValleyFull-Time Employees and Personnel CompensationFiscal Year 2020GENERAL FUNDSPECIAL REVENUE FUNDSENTERPRISE FUNDS 4/19 Arizona Auditor General's Office SCHEDULE G Official City/Towns Budget Forms