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Home My WebLink AboutPackets - Council Packets (1122)Council Meeting Regular Session and Study Session July 17, 2019 1 Upcoming Meetings 2 July 24 Town Council Special Session Oro Valley Church of the Nazarene, 500 W. Calle Concordia 3 4 5 6 Fiscal Year 2018/2019 Financial Update Through May 2019 July 17, 2019 Thank you Mayor and Council, I’m pleased to report that the Town’s finances continue to perform well and within budget through the month of April 7 General Fund In the General Fund, total revenues collected this year through Apr are $32.5M compared to $32M collected last year through this month. We are about 83% of the way through the fiscal year, and trending right in line with where we expect to be. Expenditures through Apr total $31.1M compared to $28.4M spent last fiscal year through this month. So through the month of April total collected revenues exceed expenditures by approx. $1.4M. 8 General Fund Highlights Local sales taxes trending over budget by $564K License and permit revenues trending over budget by $224K State-shared revenues trending over budget by $77K Revenues estimated to end year over budget by $843K Expenditures estimated to end year under budget by $2.2M OV Marketplace tax rebates ended 12/31/18, savings of $260K No subsidy transfer to Highway Fund ($550K) Savings in utilities, fleet maintenance, elections, outside professional services and judicious budget management by departments Year-end fund balance estimated at $16.6M A few highlights in the General Fund : Local sales taxes are trending to end the year over budget by $564K, driven primarily by construction sales tax collections over the past few months. Meanwhile, State shared revenues are trending right on budget at year-end Overall, we are estimating to end the year with revenues coming in over budget by $560,000 or 1.4% Gen Fund expenditures are estimated to come in under budget by about $2.3M, with about $600K due to personnel savings, $1M in estimated O&M savings, of which about $260K in savings is due to the expiration of the OV Marketplace sales tax rebate ending as of December 31st. Additional savings of $550K is due to not making the subsidy transfer to the Highway Fund. And remaining savings are being seen in areas across the budget such as utilities, fleet maintenance, and outside professional services. As a result, the ending fund balance is estimated at $16.4M. 9 Highway Fund In the Highway Fund, total revenues collected this year through Apr are $3.1M compared to $2.8M collected last year through this month. The total revenue budget is $4.1M. Expenditures through Apr total $2.5M compared to $3M spent last fiscal year through this month. Total expenditure budget is $4.6M. So through the month of April total collected revenues exceed expenditures by just over $600,000. 10 Highway Fund Highlights HURF gas tax revenues trending over budget by $328K Revenues estimated to end year under budget by $227K No subsidy transfer from General Fund Expenditures estimated to end year under budget by $312K Year-end fund balance estimated at $528K For Highway Fund highlights, HURF gas tax revenues are still trending over budget by $328K Overall, revenues are estimated to come in under budget by $232K mainly due to the eliminated need for the General Fund subsidy transfer Expenditures are estimated to come in under budget by $312K due primarily to the Tangerine Access to Safeway CIP project of $250,000 rolling over to next year’s budget. Year –end fund balance is estimated at $523K 11 Community Center Fund In the Community Center Fund, total revenues collected this year through Apr are $5.6M compared to $5.7M collected last year through this month. The total revenue budget is $6.7M. Expenditures through Apr total $4.9M compared to $5.4M spent last fiscal year through this month. Total expenditure budget is $6.6M. So through the month of April total collected revenues within the fund exceed expenditures by nearly $770K. (savings – tennis, water, management fee) 12 Community Center Fund Highlights Total fund revenues estimated to end year over budget by $22K Total fund expenditures estimated to end year under budget by $315K Year-end fund balance estimated at $354K Overall, total revenues at year-end are estimated to come in about .6% or $39K underbudget Total expenditures are estimated to end the year under budget by $295K With a year-end fund balance in the fund of $273K 13 QUESTIONS? 14 Oro Valley Town Council Study Session Economic Development 7-17-19 15 Pima County Economic Development Plan Goals Identify ways to overcome limitations that affect successes Diversify the economy Increase the number of jobs Increase disposable Income Identify multiple paths to enhance the regional workforce Develop new local development funding sources Creation of a regional identity 16 Overcoming Limitations Maximize available developable commercial land Time to Move-in – Continue to enhance permitting Roads – Maintenance and planning for technology Preinstalled conduit and dark fiber Smart Vehicles Planning with regional partners – PAG & others 17 20% or our workforce due to retire in 10 years or less Low unemployment Still under-employment left over from recession Millennials Not Interested in the Trades Job Fair – 52 companies and over 500 applicants Workforce – Our greatest Challenge 18 Growing number of jobs require post-secondary education STEM – State falling behind – Funding Issues – Still in lower 10% Trades, JTED, Amphi, Non-Profits, Public-Private Partnerships Pima Community College –Centers of Excellence focus on needed trades and skill development - Flexible curriculum University of Arizona – Many Outstanding programs Bio-5 – Biotech Industry Optical Science Aerospace Engineering – Hypersonic Wind Tunnel World Class Mining Technology Soon to be approved Veterinary School Education 19 Climate Lifestyle Development Services focus on process and timing University Connection Infrastructure investment – including data Competitive Utility rates Why Oro Valley? 20 Why Oro Valley? MSA Population over 1 Million Increasingly Diversified Economy Stability of Talent Pool – Less Churn Pool of Talent for Critical Industries – Biotech Tourism – Visit, Move Here, Never Leave Resident Opportunities – Live here – Bring Businesses 21 Thank You! John Moffatt, Ph.D. 520-724-4444 john.moffatt@pima.gov 22 ACA MISSION CREATE Partner with entrepreneurs to create new Arizona businesses in targeted industries EXPAND Work with existing Arizona Companies to grow their businesses here and beyond ATTRACT Recruit out-of-state and international companies to establish operations in Arizona The mission of the Arizona Commerce Authority is to grow and strengthen Arizona’s economy and facilitate the creation of quality jobs for its citizens by attracting and supporting business in high- growth industries throughout the state. Why? Because a vibrant, diverse, state-wide economy means increased opportunities for our citizens. It’s about helping people. FIVE-YEAR GOALS CAPITAL INVESTMENT Attract $7 billion in capital investment to Arizona. WAGE GROWTH Increase average wage of the jobs created to 150% of the state’s 2017 median wage. JOB CREATION Lead efforts to create 80,000 projected new jobs with a focus on high-wage target industries. INCREASED EXPORTS Expand export revenues across target industries by 25% over five years. ENTREPRENEURIAL VITALITY Elevate Arizona to a top-five state as measured by entrepreneurial density, funding and connectivity. INDUSTRIES & MARKETS The ACA has strategically chosen to focus on developing six established industries Today’s global economy presents strategic opportunities and markets for Arizona’s products, services and ideas ASIA CALIFORNIA CANADA EUROPE MEXICO RESULTS $13.35B CAPITAL INVESTMENT 119,974 NEW JOBS 705 PROJECTS ACA RESULTS 2011-2018 272,242 DIRECT, INDIRECT & INDUCED JOBS $164B ECONOMIC OUTPUT FY ‘19 YTD RESULTS NEW JOBS 23,372 AVERAGE WAGE $65,829 CAPEX $2.6B SOUTHWEST 11,306 NEW JOBS $1.2B CAPEX MIDWEST 1,396 NEW JOBS $502M CAPEX EAST 5,511 NEW JOBS $455M CAPEX 182 NEW JOBS $66M CAPEX 2,854 NEW JOBS $94M CAPEX CALIFORNIA INTERNATIONAL 686 NEW JOBS $118M CAPEX PROJECTS 103 SOUTHEAST 703 NEW JOBS $159M CAPEX WEST ACA FY ‘19 CLIENT HIGHLIGHTS BUSINESS ATTRACTION & EXPANSION *Not all client logos reflected ACA FY ‘19 CLIENT HIGHLIGHTS BUSINESS ATTRACTION & EXPANSION #3 ARIZONA RANKS 3RD IN THE NATION FOR PERSONAL INCOME GROWTH #5 ARIZONA RANKS 5TH BEST STATE FOR GROWTH PROSPECTS IN 2019 #3 ARIZONA RANKS 3RD FOR ECONOMIC MOMENTUM IN THE U.S. 4TH FASTEST GROWING STATE IN THE NATION ARIZONA FOUNDATION FOR SUCCESS #4 ARIZONA RANKS 4TH FOR STARTUP ACTIVITY IN THE NATION 5TH LARGEST CITY IN THE U.S. PHOENIX 1ST IN THE NATION FOR POPULATION GROWTH MARICOPA COUNTY 2ND FASTEST GROWING CITY IN THE U.S. PHOENIX WHY ARIZONA? PRO-INNOVATION POLICIES INSTITUTE FOR AUTOMATED MOBILITY (IAM) A consortium of private sector companies, public officials and university research faculty that will collaborate on state-of-the-art research and testing in Arizona. AN OPPORTUNITY FOR INNOVATION $61 BILLION EXPECTED R&D SPEND IN AUTOMATED VEHICLES BY 2023 $200 BILLION EXPECTED GLOBAL ADMINISTRATIVE SAFETY SYSTEM MARKET REACH BY 2026 PRO-BUSINESS ENVIRONMENT 676 REGULATORY BURDENS ELIMINATED $48 M IN LOST PRODUCTIVTY SAVED 130K MILES OF HIGHWAY 85M CONSUMERS REACHED 40 PUBLIC TRANSIT SYSTEMS 6 PORTS OF ENTRY WITH MEXICO 4TH LARGEST ECONOMY CALIFORNIA 10TH LARGEST ECONOMY TEXAS 17TH LARGEST ECONOMY MEXICO SKYBRIDGE ARIZONA 1ST INTERNATIONAL AIR CARGO HUB TO HOUSE BOTH MEXICAN AND UNITED STATES CUSTOMS STRATEGIC LOCATION TOP TALENT 3.3 M ARIZONA LABOR FORCE 37.4 MEDIAN POPULATION AGE WORLD-CLASS EDUCATION 132 UNIVERSITIES & COLLEGES 219 TECHNICAL SCHOOLS $10M FOR CTE PROGRAM EXPANSION ASU RANKED #1 MOST INNOVATIVE IN THE NATION 4 YEARS IN A ROW 7 PROFESSIONAL SPORTS TEAMS 400+ GOLF COURSES 9 JAMES BEARD CHEFS 5 WINERIES SCORED 90+ 300+ SUNNY DAYS PER YEAR 22 NATIONAL PARKS MONUMENTS & PRESERVES EXCEPTIONAL QUALITY OF LIFE FINANCIAL PROGRAM HIGHLIGHTS THE PIPELINE TOTAL PIPELINE BY INDUSTRY TOTAL PIPELINE BY PROJECT TYPE 243 projects $22.7B capex 52,839 jobs $68,263 wages TOTAL 2.8% ARIZONA ECONOMIC GROWTH IN 2019 2.7% ARIZONA EMPLOYMENT GROWTH IN 2019 6.4% ARIZONA PERSONAL INCOME GROWTH IN 2019 . . 1.6% ARIZONA POPULATION GROWTH IN 2019 . “Overall, Arizona is forecast to outpace the nation in all macroeconomic indicators.” - George W. Hammond, Ph.D., EBRC director and UA research professor, Fourth Quarter 2018 Economic Outlook Update 2019 ARIZONA FORECAST THANK YOU