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HomeMy WebLinkAboutPackets - Council Packets (1126) AGENDA ORO VALLEY TOWN COUNCIL REGULAR SESSION DECEMBER 01, 2004 ORO VALLEY COUNCIL CHAMBERS 11000 N. LA CANADA DRIVE REGULAR SESSION AT OR AFTER 5:30 PM CALL TO ORDER ROLL CALL EXECUTIVE SESSION AT OR AFTER 5:30 PM 1. Pursuant to ARS 38-431.03(A)(3) & (A)(7) Consultation with the Town Attorney for legal advice and discussion relating to procurement of real property for historic preservation 2. Pursuant to ARS 38-431.03(A)(3) & (A)(7) Consultation with the Town Attorney for legal advice and discussion relating to the purchase/lease of real property for Town Facilities (John Brady— outside legal counsel) 3. Pursuant to ARS 38-431.03 (A)(3) & (A)(4) Legal Advice, direction and settlement authority pertaining to a lawsuit filed September 17, 2004 regarding La Canada Drive/Lambert Lane Development/Extension of landscape completion date (0V12-02-06 and 6A) (Beztak Companies) REGULAR SESSION AT OR AFTER 7:00 PM CALL TO ORDER ROLL CALL PLEDGE OF ALLEGIANCE UPCOMING MEETING ANNOUNCEMENTS —TOWN MANAGER TOWN MANAGER'S REPORT COUNCIL REPORTS DEPARTMENT REPORTS 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 12/01/04 Agenda, Council Regular Session 2 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 Y agenda. Pursuant to the Arizona Open Meeting Law, individual Council Members mayask 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 maynot discuss or take legal action on matters raised during Y "Call to Audience." In order to speak during "Call to Audience" please specify whatY ou wish to discuss when completing the blue speaker card. 1. CONSENT AGENDA (Consideration and/or possible action) A. Minutes — 11-8-04; 11-17-04 B. Resolution No. (R)04-122 Approving an Intergovernmental Agreement between the Town of Oro Valley and Golder Ranch Fire District for the use of the Opticom Traffic Interruption System C. Resolution No. (R)04-123 Approval of an amendment of the Town of Oro Valley Transit Division 2004-2005 Budget D. Resolution No. (R)04-124 Authorizing and approving the Mayor to Contract with D.L. Lerew, Inc. in the amount of$59,200.00 for the Town Building Codes Expansion and amending the FY 04/05 Budget to provide for additional funding 2. TOWN COUNCIL ACCEPTANCE OF THE TOWN'S FINANCIAL AUDIT FOR THE FISCAL YEAR ENDED JUNE 30, 2004 3. PRESENTATION ON THE REGIONAL TRANSPORTATION AUTHORITY BY GARY HAYES, EXECUTIVE DIRECTOR OF PIMA ASSOCIATION OF GOVERNMENT (PAG) 4. FISCAL YEAR 2004-2005 FIRST QUARTER PERFORMANCE REPORT FROM THE GREATER TUCSON ECONOMIC COUNCIL (GTEC) 5. PUBLIC HEARING — ORDINANCE NO. (0)04-44 APPROVING THE EXPANSION OF A COMMUNITY SERVICE AGENCY, SPRINGBOARD HOME FOR YOUTH IN CRISIS FROM A TWELVE (12) TO TWENTY (20) BED FACILITY AS PROVIDED BY CONDITIONS OF APPROVAL BY PIMA COUNTY FOR THE CONDITIONAL USE PERMIT APPROVED APRIL 10, 2001 , LOCATED ON THE NORTH SIDE OF TANGERINE ROAD AND WEST OF LA CHOLLA BOULEVARD, PARCEL 224-42-014B 6. RECONSIDERATION OF RESOLUTION NO. (R)04-121 TO TEMPORARILY SUSPEND THE ECONOMIC INCENTIVE PORTIONS OF THE ECONOMIC DEVELOPMENT INCENTIVE POLICY GUIDELINES PENDING A COMPLETE REVIEW OF THE OVERALL EFFECTIVENESS AND BENEFIT TO THE TOWN OF ORO VALLEY 12/01/04 Agenda, Council Regular Session 3 7. RESOLUTION NO. (R)04-121 TO TEMPORARILY SUSPEND THE ECONOMIC INCENTIVE PORTIONS OF THE ECONOMIC DEVELOPMENT INCENTIVE POLICY GUIDELINES PENDING A COMPLETE REVIEW OF THE OVERALL EFFECTIVENESS AND BENEFIT TO THE TOWN OF ORO VALLEY Explanation: If this item is approved for reconsideration by the Mayor & Council, by Town Council Policy, this item will be continued for consideration at a future Council meeting. 8. DIRECTION TO STAFF TO CONSTRUCT THE GLOVER ROAD BIKE/PEDESTRIAN PATH 9. RESOLUTION NO. (R)04-125 AMENDING RESOLUTION NO. 01-80, CONTAINING THE REVISED TOWN COUNCIL PARLIAMENTARY RULES AND PROCEDURES AND CODE OF CONDUCT, SECTION 8 PROCEDURES FOR MEETINGS AND SECTION 9 PUBLIC HEARING PROCEDURE REGARDING NO ASSIGNMENT OF TIME 10. DISCUSSION AND POSSIBLE ACTION REGARDING TOWN COUNCIL MEMBERS GIVING DIRECTION TO TOWN STAFF DURING COUNCIL MEETINGS 11. DISCUSSION AND ACTION REGARDING THE IDENTIFICATION OF TOWN COUNCIL MEMBERS TO APPROVE THE SELECTION PROCESS FOR TOWN ATTORNEY SELECTION PROCESS 12. 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. ADJOURNMENT POSTED: 11/24/04 4:30 p.m. Ih 12/01/04 Agenda, Council Regular Session 4 When a,ossiblepacket of agenda materials as listed above is available for p 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 Valleycomplies 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 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. IfY ou 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 andg ive 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. Please state your name and address for the record. 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. A DRAFT MINUTES ORO VALLEY TOWN COUNCIL STUDY SESSION NOVEMBER 8, 2004 ORO VALLEY COUNCIL CHAMBERS 11,000 N. LA CANADA DRIVE STUDY SESSION: AT OR AFTER 4:30 PM CALL TO ORDER 4:34 p.m. ROLL CALL PRESENT: Paul Loomis, Mayor Paul Abbott, Vice Mayor K.C. Carter, Council Member(arrived at 4:45 p.m.) Coney Culver, Council Member EXCUSED: Barry Gillaspie, Council Member Terry Parish, Council Member 1. WEST LAMBERT LANE PARK MASTER PLAN UPDATE RECOMMENDED BY THE PARKS AND RECREATION ADVISORY BOARD Ainsley Reeder, Parks &Recreation Administrator, reported that in 1997 the original Master Plan for the West Lambert Lane Park was developed. In 2002, the Parks and Recreation Advisory Board (PRAB) agreed to begin work on a Master Plan Update and there were two (2) reasons to pursue and update. They were (1) the completion of the Naranja Town Site Master Plan and (2) requests from neighbors after Phase I construction was completed at West Lambert Lane Park. She introduced Thomas Honebrink, Chairman of the Parks and Recreation Advisory Board, who reviewed the West Lambert Lane Park: Master Plan Update Recommendations document created by PRAB. The suggested changes are as follows: • Move active recreation currently positioned on the north east side of the Park to the south, away from existing homes to the north. • Remove the lit parking lot on the north side, off of Canada Hills Drive. Provide pedestrian access only from the north. • Move the lighted tennis and basketball courts from the north east side of the park to the central east side of the park. • Add grass from the north east side to the central eastside of the park, near the active recreation areas. • Remove the skating facilities, as these facilities were provided for in the Naranja Town Site Master Plan accepted by Town Council in 2003. • Add a hard surface trail around the entire east side of the park, encompassing the active recreation development proposed for that area. 11/08/04 Town Council Minutes, Study Session 2 • Add trail connections from the existing trail system to the proposed hard surface trail. • Add a second Tot Lot to the south. • Place restrooms in the center of the active recreation area on the east side of the park. • Move thero osed southeast entrance into the park into a more western position, p p aligning with the existing neighborhood street to the south. This may remedy � g some of the visibility constraints associated with that area. • Add interpretive signage throughout the park. • Add drinking fountains throughout the park. • Leave the southwestern plan for the park in place, expanding the existing development as shown in the original plan. The following topics were discussed: • The proposed cost for the project and how it would be funded. • What would be the time-line for the development? • Status report on neighborhood input with regard to the new revisions. • Thep roposed skating facility and alternate location for the skating facility. • Noise level and how it would affect the community. • The square footage of the recommended turf area and alternatives for the turf and safety issues involved with the turf that is used. • The creation of a separate lot for older children. • It was recommended that the tot lot should not be located near the basketball court. • Needs assessment results. • The 85 %percent passive use on the site. • The elimination of the recreational use located in the northeast corner of the site. • The recommended priorities between the Naranja Town Site project and the West Lambert Park site development. • Additional insurance coverage for the skating facility. • Available space at the CDO River Front Park. • Private enterprise involvement and possible ownership for the skating park. Vice Mayor Abbott reported that after attending a conference in Albuquerque,New Mexico, regarding some of the community's recreational facilities and reviewing magazine material, she reported that she had learned a lot about skate parks as well as an interest regarding the misconception of what skate parks offer. She explained that she would like to do further research on the facility and asked that PRAB act accordingly. She suggested that the Board visit some of the sites located in Albuquerque and report back to the community on some of the concepts. She recommended that in the report, the Board should specifically address whether or not the skate park would produce any more decibels in noise. She stated that she also had concerns regarding the insurance coverage. 11/08/04 Town Council Minutes, Study Session 3 stated that there were still issues that needed to be addressed, such as the Mayor Loomis needs assessment and the 1.12 acres of property use that would be used for active recreation. He stated that he would like to get a better understanding of the property use segment in the proposal. Vice Mayor Abbott stated that she would like to see more lighted basketball courts because the older children do dominate the courts. She explained that the extra courts would give children more opportunity to use the facility and felt that this would younger er g pp y enhance the community. So rather than adding a second"tot lot", she suggested that the Board consider interjecting a second basketball court. question from Mayor Loomis, Tom Honebrink explained that he would In answer to a Y bringthe Council's issues and concerns back to the Board for discussion and do an overhaul of the revisions made in the Master Plan. My explained or Loomis that the revisions the Board makes in the proposal could be viewed as alternatives to the design which would be considered an addendum. He pointed out that what would end up in the West Lambert Lane Park project would depend upon the Naranj a Town Site development. Vice Mayor Abbott recommended that PRAB provide a copy of the proposed reconfigurations for the park to the Home Owners Association. 2. DISCUSSION REGARDING POSSIBLE REGULATION OF MOTORIZIED SCOOTERS, SKATEBOARDS AND OTHER MOTORIZED PLAY VEHICLES Danny Sharp, Chief of Police, reported that this item has been brought forward essentiallyto raise the level of awareness and discussion on the issue of motorized scooters, skateboards and other motorized play vehicles throughout the community. He reported orted that there has been a variety of approaches made to determine how motorized vehicles are dealt with in other communities such as Tucson, Phoenix, Gilbert and Tempe. He reported that the study focused on two (2) courses of action for consideration. 1) A regulatory procedure allowing use of these types of vehicles on Town streets. 2) A non-regulatory procedure banning this type of vehicle. He explained g that this item has been brought forward for Council to discuss and provide additional direction to staff on their preference on how to approach the issue. In answer to aq uestion from Mayor Loomis, Chief Sharp reported that as far as prevalence was concerned there had been no scientific studies conducted on motorized scooters or skateboards to determine usage and popularity. However, he explained that it lived,but that he suspected that after December 25th, the would depend on where a personp community would see a noticeable increase in use of these types of vehicles. He introduced Sergeant Teachout, Traffic Supervisor from the Oro Valley Police Department, who has dealt with these types of vehicles first hand. • 11/08/04 Town Council Minutes, Study Session 4 out explained that there were about five (5) different categories of Sergeant Teach p issues. He but would specifically address the motorized skateboard motorized vehicles, eci p as far as the motorizedgas or electric skateboards were concerned, the reported that department has not had anyextensive need to do any enforcement action or warn users to move off of thoroughfare anythorou hfare because the users are primarily in the neighborhoods. He reported that there has been only one (1) collision incident documented involving a motorized skateboard and an occasional documentation of noise complaints. (The a list of the current motorized vehicles on the market: pocket motorcycle, following is choppers, gosport carts, racer off road dirt bikes and 360 watt electric scooter.) The following topics were discussed: • The classification of these vehicles and the difference between them. • Sergeant Teachout reported that small motorcycles have been identified as motor vehicles and are enforceable under the Arizona Revised Statutes. • Safety concerns and if regulating the vehicle would be enough. • What are the current rules and regulations sold with the units; and could the suppliers be notified about the requirements, rules and regulations? • The use of these vehicles on the multi-use paths. • The enforcement of parental supervision. • What would be the appropriate age group to operate these types of vehicles? • How was the ordinance for motorized vehicles working in the City of Tucson? • How the vehicle will use cross roads and sidewalks. • SEGWAY -Electric Personal Assisted Mobility Device. • Developing a clear description of the penalties for parents and children to follow. P g • Should an ordinance bep assed to permit these vehicles in the Town and how the ordinance will affect homeowner's association regulations and gated communities? Council Member Dankwerth read an excerpt from page three (3) of the Motorized Scooters Ordinance Study.( "The"The top three designers of these types of vehicles had warnings in their user manuals that these vehicles did not meet Federal Motor Vehicle Safetystandards and should not be used on the roadway or streets. The use of this vehicle age a child under the a e of 16 is not recommended. If used, it needed to be monitored by a responsible adult. This and problems with street design, the intermixing of young unsupervised children in traffic, the amount of injuries as reported by U.S. Consumer Product SafetyCommission and liability were considered by the City Council in deciding . the current Cityordinance.") She suggested that the following additional wording be � helmets, not observing "the intermix of elderly drivers and children not wearing traffic rules and riding on unpaved shoulders."Furthermore, she felt that the gas powered p „ units were extremely noisy and would certainly constitute a"noise ordinance". She stated that she was concerned about the safety and well being of all citizens and not just children, but also drivers and, in particular, elderly drivers. Therefore, she would like to see an ordinance passed against this. Vice Mayor Abbott stated that she did not believe the vehicles should be banned outright because children were inured on bicycles and there were citizens who used these types of � • 11/08/04 Town Council Minutes, Study Session were verycareful and adhered to the strict standards. She stated that she vehicles that would like to see additional restrictions and requirements imposed such as using the vehicle in daylight hours only,headlight attachments,helmet, gas scooter muffler requirements, gloves, goggles,les, and footwear and knee pads. She noted that the report did not reveal weather condition issues or restrictions and explained that wet weather was conducive to more accidents. She further explained that she would like to see an injury studydone to review what types of injuries could occur while using these types of play vehicles, as compared to bicycles because there was nothing to use in comparison. Mayor Loomis asked that the information be resubmitted as an Ordinance with a y couple of additional clarifications in the communications 1. More discussion on the age requirement (14 ears old verses 16 years old) 2.Get feedback from the cities of q y Tucson, Phoenix, Tempe, Scottsdale and Glendale regarding their rules and if those rules were working and how those rules are being enforced? 3. How are adult motorized vehicles(SEGWAY'S)handled? ADJOURNMENT MOTION: Council Member Dankwerth moved to adjourn the meeting at 5:45 p.m. Council Member Culver seconded the motion. Motion carried, 5-0. Respectfully submitted, Linda Hersha, Senior Office Assistant MINUTES ORO VALLEY TOWN COUNCIL REGULAR SESSION NOVEMBER 17, 2004 ORO VALLEY COUNCIL CHAMBERS 11000 N. LA CANADA DRIVE REGULAR SESSION AT OR AFTER 6:00 PM CALL TO ORDER 6:00 p.m. ROLL CALL PRESENT: Paul Loomis, Mayor Paula Abbott,Vice Mayor Carter, Council Member .% K.C Helen Dankwerth, Council Me Barry Gillaspie, Council Me Ili.' /C,4", '' Terry Parish Council M wrl� /.: %,.,rill;::. ,. f,:/ EXCUSED: Conny Culver, Coe >! : i„lyt ;00- EXECUTIVE !fEXECUTIVE SESSION AT OR AFTER 6:00 PIN f , %T -•"'Yy': � .•f � ::� �: ric>v- SECONDED .�;A;�;;: :�� .;.....:: • '. and MOTION: A MOTION s', V` was made by : �. , �.::_ ber �. � by for the following Member Gillaspie to go into Ex:i ve ::": s, = !.•01 p.m. o purpose: .`-.410 logy l Advice, direction and settlement ARS 38-431.0-4''''O ' • .y: Pursuant to -� A)(4) �� stem 17 2004 regarding La Canada authorityt.!r.... /. !. ��.. pertaining to away quit fi: : � �,.�::,. . � � g Drive/Lambert Lane De `- .�.�•0,1 `;`:.:0' `of landscape completionletion date (0V12-02-06 C ,T,g aniand 6A) (Beztak41,, Aerkig,t, Mayor Looi _ : .nnounc ` Y= .at inuf 'ition to the Town Council, the Town Manager and the Town Town Ci• ttorne Joe Andrews, Community Development Director �,•�'.:�y j r y A y p `� oning Administrator Bryant Nodine, Town Brent Sincla (: ming a Engineer Bill Jansen and Bras ': :d : Xf •utsi de Legal Counsel from Moyes and Storey, would be present in Executit on. MOTION CARRIED, 6 —0. MOTION: A MOTION was made by Council Member Dankwerth and SECONDED by Council Member Parish tog o out of Executive Session at 7:10 p.m. Motion carried, 6-0. 11/17/04 Minutes,Council Regular Session 2 RESUME REGULAR SESSION AT OR AFTER 7:00 PM CALL TO ORDER 7:25 p.m. ROLL CALL PRESENT: Paul Loomis, Mayor Paula Abbott, Vice Mayor K.C. Carter, Council Member Helen Dankwerth, Council Member BarryGillaspie, Council Member Terry Parish,Council Member EXCUSED: Conny Culver, Council Member f,/ ALLEGIANCE r f PLEDGE OF r / Mayor Loomis led the audience in the Pledge of Allegianc UPCOMING MEETING ANNOUNCEMENTS `; ��r,i r:i " �i`Y�� w�/rs`".s and events. He also Town Manager Chuck Sweet reviewed the upcoin :..;;,;:,;e.; ; h announced that the Town Hall offices would be close .."r / ember 25th and 26 for the Thanksgiving Holiday '' ' • �%"•�r f i ��,vvf r %f:i iRff i,J r '"�/ifs COUNCIL REPORTS Council Member Dankwerth ri`"; :47/, that i !«. o n going effort to communicate wit e ublic various Council M- yrsbeen if tingwith residents at Sun City to up ate p • ' ' ' " She stated that it has been ` , etings etc them with information . : ing ..:. cil r: • :; ::.:• .� � ;:.:-:.jwill..:: . month with the Sun . be meeting once a well received and beginn! �� Cityav, residents insteav f 9 7, on/th as t ey are currentlydoing. �r�• twi��:.: �.�� ,:!.^.%,�f'.<'`;h"!iii'� '6 r"�".fly:::..:..,, f• r� f i /r: af,/ f at Painted "Carter `: ".� "she and Vice Mayor Abbott spent a day Council Me � �:• e . classes and one fourth rade class vi'"" with all the third gradeg Sky .....:�� School ��.. g fi!v:. Elem /� ry:�: : : regarding the.�� ` on: and. ®" istration process. He stated that it was fun and we ll regg ,.: .. -�� received. "2 /,,,4,/;,,,/r/ r /A DEPARTMENT RE" ORTS p Finance Director David Andrews reported that a resolution authorizing the sale of Bonds for the Oracle Road Improvement District (ORID) and the results of the Financial Audit for fiscayear ear ended June 30, 2004 would be presented to the Council at the December 1, 2004 Council meeting. TOWN MANAGER'S REPORT—No report. OF BUSINESS: Mayor Loomis announced that Item 10 would be moved ORDERy forward on the agenda to follow Item 5. 11/17/04 Minutes,Council Regular Session 3 CALL TO AUDIENCE- None. 1• CONSENT AGENDA Vice Mayor Abbott requested that Item K be pulled from the Consent Agenda. y MOTION: Council Member Dankwerth MOVED to APPROVE the Consent Agenda with the exception of Item K. Vice Mayor Abbott SECONDED the motion. Motion carried, 6-0. A. Minutes— 10-25-04; 10-27-04; 11-2-04; 11-3-04 B. BuildingSafety Activity Report—October 2004 ,�fl:. C. Police Department Report - October 2004 Monthly Data Report "riN�:, Run Progressive �: ::� i004 D. Coyote p —. ��.;. ;:,.: : No. R 04-115 Award of contract tot;?:�;' !..$ 0" " tiring, Inc. in the E. Resolution ( ) � �/ •� f'�Y.- "+ rin servl� ;v ,'r post design amount of$411,585.00 for professional en_+,+���`: g +,ry Improvement Distric ' i jest No. OV 3� -A10 08 for the Oracle Road ( ) F. Resolution No. R 04-116 Award of "� `;act t•• '`?ctus Trans sort, Inc. in the amount of$16,371.00 for the Rancho �� � �FII-FogSeal, Project No. + : �°'�y+-�� v.: � 4 OV 30 01/02 24 `! G. Resolution No. (R)04-117 Re ,.l of an I ` - ernmental Agreement the Town of Oro V -;. a Co : n order for the Town to betweenv�..:,�, . bill and collect sewer user fee `. ,,A,11 a County H. Resolution No. (R)04-118 De :r.r:,:.,: a `t is record that certain document #1041- .,;,.::.._ Valleyfiled with the Tok a "Town of Oro Personnel .� and e ,�,���;; .. ':dl..,�.��%.'; Policies and Pry'" `red de V:-!/1',/,I. Resolution ifiig that document known as the"Rules �:�::�� . .. _ and Committee and • �iii?:Ofp...r(' :. '.'•":�.'f%j.:�..� :':.I i`: Y' and Operating f9 c :. ,I;), , (a ley Budget and B ��' t a public record makin;,§340 do � ..M��. tion.:fyf <`•:� " }. 0 Approval of an Intergovernmental Agreement J. Res ► ����t�. `� : : :� (R :.::�r� pp g . • en the �' ' alley and Pima County/Tucson Metropolitan / ,c x:.':`" ;ter NarcoWAlliance (CNA) formerly known as Metropolitan Area . Traf- llInterdiction Squad (M.A.N.T.I.S.) ,�• K. Ador is4):W,;,;!,,,,,,-ficil Policy #11 related to a standard request form and basic informa.t . cessary for a member of the Town Council to request an item on the To 'n Council Agenda (PULLED FOR DISCUSSION) L. Approval of the revised Town Manager's Employment Agreement K. ADOPTION OF COUNCIL POLICY #11 RELATED TO A STANDARD REQUEST FORM AND BASIC INFORMATION NECESSARY FOR A MEMBER OF THE TOWN COUNCIL TO REQUEST AN ITEM ON THE TOWN COUNCIL AGENDA Vice Mayor Abbott commented that she was pleased to see the changes made to the Request Form in that all that would be required on the form was the title of the subject q and the reason for the request in order to add an item to the agenda. 11/17/04 Minutes,Council Regular Session 4 Gillaspie MOVED to APPROVE Item K. Council MOTION: Council Member p Member Dankwerth SECONDED the motion. Motion carried, 6 -0. 2. STATUS UPDATE BY THE DM-50 BY MIKE HARRIS, PRESIDENT President of DM-50, updated the Council on the Base Realignment and Mr. Mike Harris, p mandate. He further explained that the DM-50 group helps marshal Closure (BRAC) p to ensure that our region is represented in Washington D.C. as base closures resources g are beingdiscussed. He thanked Oro Valley for its interest and support and realignments for the DM-50 initiatives and invited the Council to visit Davis-Monthan Air Force Base. RECOGNITION OF IRONWOOD RIDGE HIGH SC r^ . 3. � 1 L STUDENT :ARMY TIEL BORG FOR HIS SELECTION TO PLAY IN TH ~yy DAl� :.' y,y ALL- AMERICAN BOWL ON JANUARY 15, 2005 !ry� vitt introduced Iron\. id e 'yf . hoofs football Public Information Office Bob Ko 64. g � � coach, Mr. Gary Minor and student Daniel Borg. Mr. Minor reviewed Daniel's outstandingscholas . v � t =tic accomplishments and reported that Daniel was one , of seventy-eight ht : . = Country that was selected to play in the U.S. Army All-Amerisenior y g " can Bo Mayor Loomis thenpresented Daniel a ouncil congratulated him on his achievements. y z 1 , � �,: 4. RECOGNITION OIC A OT �, T, MEMBER OF THE ORO � B '"RD FOR RECEIVING THE VALLEY PARKS A � '"�� CR"'�- E1� g' �� ' OM THE ARIZONA PARKS AND PROFESSIONAL , - -,�. �ry RECREATION A. OC (APRA FOR OUTSTANDING SERVICE IN f� . � ,r.y. THE FIELD ^�� �: A ` , r, CREATION S ia,.y~�h:-` ion .�:: = AinsleyReeder reported that Parks and Recreation Park and �w Adm � rator p -r "got Hurst has received the statewide honor of being Advisory Bo:t ember Arlt ,^ :'. �w nd Recreation Association Professional Emeritus Award or awarded the � , :; "�;✓M '�>.:,the field of parks and recreation. her outstanding se � �-�:q�: � Mayor Loomis congratulated Ms. Hurst and presented her with a Town pin. 5. FINANCE REPORT FOR QUARTER ENDED SEPTEMBER 30, 2004 Finance Director David Andrews reviewed an overhead presentation which represented an overview of the Town's financial status as of September 30, 2004. He reported that fiscal year-to-date revenue collections indicated that revenues will be above budget by $262,900 (1.3%) at fiscal year end with the primary sources contributing to this surplus being locals sales tax collections, state shared revenues and charges for services. 11/17/04 Minutes,Council Regular Session 5 further reviewed the Highway Mr. Andrews g Y Fund, Public Transportation Fund, Townwide Roadway Development ment Impact Fees and the Water Utility. He further reported Budget orted that the Bud and Bond Committee recommended forwarding the report to the Town Council for their approval. In a response to question from Council Member Dankwerth regarding the 18.6% increase p in sales taxes from restaurants and bars, Mr. Andrews explained that they do not specifically track the amount of revenues from Annexation Area"B". However, several p y months back, they reviewed the sales tax collections from those businesses and he believes that annexation of Area"B" increased the Town's local sales tax collections by approximately 35%. Member Dankwerth MOVED to ACCEPT! :ud et and Bond MOTION: Council / `..Af. g Committee Report for the quarter ended September 30, 2004A* it Member Carter SECONDED the motion. Motion carried, 6—0. /k< (Item 10 was moved forward on the agenda.) r r r i is:✓Fi f /Y rY 10. RESOLUTION NO. (R)04-121 TO TEMPO *: : - f� SUSPEND THE ECONOMIC INCENTIVE PORTIONS OF TI-1 'ECS;..;.;;; OMIC DEVELOPMENT tt INCENTIVE POLICY GUIDELINES.::. ;ETDING AA°::....` {!PLETE REVIEW OF l,��;r..:.:..,- � : �-:�HE TOWN OF ORO THE OVERALL EFFECTIVENESSTZ:, . FIT r VALLEY41,-.54/;/ Economic Development Ad n •,•r Jef 4,te,,,,O,r reported that in August 1999, the Town Lod i > du§...: .xIncent ;.;Polk and Guidelines. In October 2001, Council approved a g .... Y Council approved t "`"•f y.. 1 •i mit Incentive Policy and Guidelines. He the pp � � �:.,onoi r� ��e o �`rti'�'S��h�•rr'':•.. %y..F. F';;...}v•:4:r9r s�!j'f,;�:?;� ?cyrr`s;�'�rjy[�,�.t.�. �,k:.• j:- 'iCouncil has the total prerogative t. : : : r`:'j: a'� - ed, the p g explained that the way �� � ��� as to whether they;l;,,va;;.t to a ? �aout or even consider an Economic Development ������� r�`:N`,. •��"'f�`� consideration is independent and ':`°'/,ff w r`> `":. :.fi.` asized that each p Incentive at all ��•���•���' .:,rv::... 1 s separate fro ,:*:/4. and a s er a '„/e s. He stated that the Policy was set up so that through thy:' 7:.- o f incenti ; the Town could induce retail development and resorts Aof""' primarily to66:',4:::2,/.oiunity quicker than expected. the c.:.,... Discussion followed%V. girding: ➢ Careful deliberation was given towards bringing the policy into effect. It is at the discretion of the Council. The Town never knows what is "coming around the corner" and this Policy is a tool for the council to use if it so chooses. (Mr. Weir in response to C. M. Gillaspie.) ➢ As of date, the Town has not been formerly notified of any developments actively looking for an Economic Development Agreement (EDA.) (Could be in the form of new lodging.) Recommend that the Town continues to work with the"high tech" sector,medical services, etc. (Mr. Weir in response to C. M. Gillaspie.) ➢ Possible to create a Resolution or something in this Policy, that would allow any future EDA to be referred to the citizens. (V.M. Abbott) (Council could adopt a 11/17/04 Minutes,Council Regular Session 6 clause within the Policy stating that they would like this to be a referable matter.) (Civil Attorney Joe Andrews.) ➢ Court rulings on Town's past EDAs. (Mr. Andrews in response to V.M. Abbott.) ➢ Items #15 (Council has final authority) and #16 of Policy (each consideration is separate and independent.) No Council decisions would be made lightly on EDAs. Have requests specifically come to the Council, not done by any other staff member. (C.M. Dankwerth) ➢ Council responsible for all EDAs and no deals are done with staff and developers. (Mayor Loomis) ➢ Possible that 1-2 EDAs may be coming forward to the Council. (V.M Abbott) Mayor Loomis opened the floor for public comment. F, . Bill Adler, 10720 N. Eagle Eye Place, commented that the E1:107:`::' e entirely at the Council's discretion but he would prefer that it not be. He -ed f° ` `: s problem with EDAs is the adoptedpolicies and the difficulty the/!4f,„ cil's ha deciding the p �� whether the policies are met or not. He stated that ix ; `^e agreementsl !° :ply with all thepolicies,he would suspect that the EDAs wou :;. :`'obab : of be chara'"terized as p ��� �y„ "give-aways" and would probably be supported b " .: ;% ; s. He stated that the lack of consistencyand the lack of compliance with the p° l was the issue and he w the :.. pPolicy,that instead of a moratoriu �� F. Econ'c�� ;�%,y'ti.: evelopment t e :�f•'.� .•:�i!./...i;:. Iv* • � '������`��'°���������� int meet all adopted policies. Council ass a clause that required that ` : e !' • !,:/ °ate.f. at the Council should not fear a Chet Oldakowski, 11706 N Via de la ...'.rye. V era :J.i, 1,_, f+::,"` e fear`s at developers may go elsewhere and that freeze on the EDAs. H e stat- .E �����+y�: . ..:. ' � '!`"'' '''. "�`"�" promote growth in Oro Valle He the financial incentives ar-w o i ecessa y stated that the"Stop Or t i.::?/ ey C�,.?:: :�..�.�,.� " itical Action Committee has had . :�'/,,%:.1�1��% +�:/,}'?%'•Nj,�: `+`!t- :,�-:.:. r'.�:_:- have a different set of criteria discussions with local re .4.r.. + that they evaluating th-.busine ";::;-ntial of a project. He stated that if the economic when e g /:rN.:... p J analysis isos't i <:, e r-" will come. •�{l,sGc4io;. Art Segal, y • N• . Bight-,'.:utte stated that he endorses Mr. Adler's and most ofMr. Oldakowski'ls - ents• commented that it all comes down to what you believe: Mr. Weir's 9u,-,40^i- '% " Member Carter's comment about developer's expecting commen � w� l approval of an ED�y ; r`V c an item is "on the books." He stated that the Council needs pass ass something tha"'makes such items a legislative act so that the citizens can have their say. Jerry Hoy, 3380 W. Westfal Drive, re resentingthe Northern Pima County Chamber of Commerce, stated that they were opposedp to a moratorium on the Economic Incentive y Polic and Guidelines. He stated that it was not necessary as the Council has the ultimate power for approval. He stated that a moratorium would send the wrong message to the development community. Mr. Hoy also commented that if the Town does not have the retail sales tax revenues coming in, then there are only two options: cut services or a impose property tax. He stated that the Town is a living organism and if the Town is p not looking at growth, then it is in the process of dying. 11/17/04 Minutes,Council Regular Session 7 Jeff Jones, 569 W Sunview Drive, stated that increased tax revenues were going to be very much needed in the Town to continue to provide the increasing need for services and infrastructure. The onlyway to get the needed monies is from sales tax revenues or a property tax which no one wants. He questioned why the Council would want to remove a"tool from their toolbox"which maybe needed in the future. He stated that the current EconomicDevelopmentPolicy does not require the Council to approve any agreement and each one stands on its own. He stated that the Council can send a message to the developers that theywill consider EDAs for now through their statements and communications g through the Town staff. He urged the Council to leave the"tool" in place for future use, if needed. N. Wayfarer Way, explained that he was one o:;{ e council members Fran LaSala, 12530 y Y ..fi, ��% that voted in favor of the Economic Development Policy but th-, : : ncil never �' "� : anticipated some of the ramifications. He stated that the To : :: 4this policy, this . . . '�'` �'.'err • ' part and 1• He stated that it comes down to trust and responsibil� t k ncil's too 1'_. .r rr r•.r::;•-.� �J` could u`�" ��� �her something the citizens' art. He stated that he felt that the Town St " r 1: t:. p � .. that would allow the policy to stay in place but also 1,',,,0"(the ability fol*rendum. �x :r w ��'� ' staff(under Mr. Sweet's MOTION: Council Member Dankwerth MOVE ...::, .�y;. ,; ction to immediatelyresearch all economic ince -V4)",•rograms currently rf dere ;���::���; • ' ' -� g � �'��-`�•�� thereto, and the measurable implemented towns and cities -' n:. chanes mai.., p by Arizona •:y.�Y ,, , ;.?.�;4:. '-•Y��""'.�+-�'�'" ����,=d to the Council no later ' . . G.•:;`;9;�..i%:.;:�,::...,..r'��'�-^r•, !r.e sub�� `: effect on the Towns bottom line with t ;� N,r ��`•���� be"' the of Council, staff, and 17, 2005 :_y.: than JanuaryThat a Study Ses ' ": �w�" t ,�,,.. Economic Development Committee mem;i7,-0 n �;'?what changes, if any, might t be /4y 11/17/04 Minutes,Council Regular Session 8 would not want to have the Council's hands tied should such companies come forward and request some sort of incentive.) DISCUSSION: Council Member Parish stated that he was going to oppose both motions as he felt they would be"cutting their own throats." He stated that he knows that many people supported him in the election because of his stance on some of the past EDAs and p pp he still feels that the Town could have gotten a better deal. He stated that he felt that we property would be on the a to roadtax if we take away the Council's ability to have this extra"tool"toossibl influence a business to cross into the Town's limits. He agreed p Y that the Town should adopt a policy that would require the Council to follow the guidelines that the Council sets. Member Carter stated that when a business comes in, n .: °g Council would stop the JJT. Council from helping a business with something like a water : - };r tall or a roadway. He stated that the freeze would not stop the Council from ./(.4:§ideciik,uch help. He • `�"..:fated that : :;s7: . .reviewed rovisions 1 and 7 of the Policy Guidelines an;4 incentive p .. value being no more than 50%) should never been a • ed. He also s& .,®f. that Home ` .:: Depot and Target came to Oro Valley without suc enti N rand he felt others would too. �'/�Y'r'yr " • 40-/ • � �•�` '' $whether a Town Policy In response to a question from Vice Ma � k�bott regat ° ' �" �����;s:.%:. '�� °�•. �� ndrews stated that he did needed place to offer an incenti :. z. y �7. to be in ,::�;� .:,..;wt��;�rne � l�J:��� JJs.i�+'� � `f was necessary,but who: :er iff4"0:.,,,4",:'-t,,,,,as offered would have to be not think a policy ry, ; �' , included in a contract. ,;JSJy lf,j7P • '^r•' , •:.: .:.;•f.%.J.J., • F,:�.��.:`�f ,,�`:y!J!�, 4i„� .lace then the "skyis the limit." He p Mayor Loomis stated that : `��,,:ere i��': � olic , 'f' " !'`which the businesses are judged. There stated that there would e a set s,eil,eria g f s% i. �• that the olic sets 7 in lace• He stated p ywould not be a starting pc�� , :4cd1ik$otp out how the Town Wa� :ts to e the is▪ sues, sets limits and helps decide what is fair and yr/ / J /, f ,lifN reasonable. .� Y JY"%J , Vice May sf ..ott state.04 f what hat keeps a Council Member from going amuck" is � : � t aif i fear. She staync-" "ves were offered, the checks and balances would be the fear JfJSwected if you give away too much• If you do have a policy in that you . �: �:. .�.• would �� � t place, it needs to btya :9a de. She stated that she would like to freeze the policy with the exception of offering hcentives to high-tech industries that have high paying jobs. She questioned how the Town could support the businesses needed and also stated that we do notY et have an inventory of retail space as outlined in the policy. She stated that there are no checks and balances and no accountability for performance based guidelines. CALL FOR THE QUESTION: Council Member Gillaspie MOVED for the Call for the Question Dankwerth and Council Member SECONDED the motion. The Call for the Question carried, 4-2 with Vice Mayor Abbott and Council Member Carter opposed. MOTION ON THE AMENDMENT, failed 2 —4 with Mayor Loomis and Council Members Dankwerth, Gillaspie and Parish opposed. 11/17/04 Minutes,Council Regular Session 9 DISCUSSION: Council Member Dankwerth commented that in response to comments y made by Vice Ma or Abbott she was only concerned with doing the best possible job sheduring could do now this four-year term. She was not worried about making the right or wrong decisions so she would be re-elected. Council Member Gillaspie commented that this was a troubling issue and he was also confused by it. He stated that no matter what they do, it is ultimately in the Council's hands. He stated that there were important reasons why guidelines were in place from a and national perspective in terms of offering businesses something to look at regional p p when they want to come into town. He stated that he has faith that the Council would make thep rocess of changing the policies transparent, open and protective of the public's :.. interests. He stated that any council has the authority to enter into �' ,f_;-ements at any time ' OA the followingeven without Guidelines. To protect the public's interest he pro„ amendment to Council Member Dankwerth's original motio! `'' �� TO THE MOTION: Council Member,.'-:-: laspie MO-7'.1),` to AMEND AMENDMENT �� � r,., :ce,: •�,,,: motion byaddingguideline#17, stating that"an • on-omic Devel•` q t Agreement the r:�.''..r.'.:. ;:�•• .y the pub �'c. Vice ' �Oren d ' approved bythe Town of Oro Valley be subject t : / ,: pp .y:- rrrr, . Mayor Abbott SECONDED the motion.',,rr Oct err,•¢%) . .r. • rY/fG�i,��7 ' �r �•ose the amendment to the DISCUSSION: Mayor Loomis stated th thc,was goin g �: motion because by stating that any issue is e e ,.it end ;yT; taking away the"carrot" .404-00 in tri g to provide an incentive, trying ,;. son fi rw ne in a timely fashion. He � questioned when an item is referred v` { . .` w n also the next election will be. r� � •: y,r yrr r or Council Member Gillaspi-: stric eline has been established and he is not aware of any endin +. " r :" a,rd.• �e stated that the whole point was to get ;�.,r.,y,. ..::...::�::�',..:;;�xxz; �'�r: citizens. H�r,N{' °b re the C141;fi' ouncil and the the Economic Develo i1�`• Q' ������. �,�� %rrYr'r' 1 ` supported the amendment in that making it referable is Vice Mayor 9bo . tha . aupp& '.;:...,."" ;o unt ble ., ee public. She stated that her goal was to implement making the .,��"'-. �:"� cil ac `� � � Y. vas refera o'p �nd also allow the Town the ability to recruit bio-tech somethingt '' ::.,.: industries an {l: : -•ayin Ito;s. Mayor Loomis coni"{ f`a :ryKd that the Council Members are all responsible to the public and subject to public ' rutiny. He stated that it is as easy to recall a council member as it is to refer a decision. In a response to question from Council Member Dankwerth, Council Member Gillaspie p explained that he would like to have Guideline#17 kept in the motion but he would assume that it would still be subject to discussions during the next four months during the policy evaluation. Council Member Parish stated that whenever a Political Action Committee (PAC) opposes an EDA, they bring the process to a halt regardless of what the majority of the Town wants to do. Even if the PAC loses in Court or lost in the referendum process, it 11/17/04 Minutes,Council Regular Session 10 can have thenegating effect of ne atin the EDA and costing the Town money during the process or even losing the business. He stated that if every item was referable, then you might as well just throw out the policy. Vice Mayor Abbott stated that the reason we need a check and balance for this policy is that weare gg away millions of dollars of sales tax revenues that are needed for the sustainability of the Town. AMENDMENT TO THE MOTION failed, 3 —3 with Mayor Loomis and Council Members Dankwerth and Parish opposed. AMENDMENT TO THE ORIGINAL MOTION: Council Membe: , rish requested that f • 'nal motion time line bepushed back 1 month due to th .,:.: �ays. Council the original ,i ' �• ,:••¢� 3`•: - the original Member Dankwerth and Council Member Gillaspie agreed tc n�-,.. y. fr JfrJJ.. :sr>:, ' read: w., �:J{;: motion's dates to1" m l em en��..::..� .. research all economic incentive programs curren., f..: p , ey. Arizona and cities, anychanges made thereto, and the.,,` ••urable effect : Town's towns . �:::.• � •ncll " ater than e,i ruary 17, bottom line with that report to be submitted to the;;: ,.. d Session be held inclusive of ..,: `f, and Economic 2005. ThataStu y , velo ment Committee members to consider what " es, if any,might be made to De p ,�� : • "•� � s Policy Guidelines. Specific the existingposition of the Economic De. o:•ment Incer: � • e � ,f's rJ�{� d err , rges of any proposed reference to be given to the duration, -: • .f"."' �.``�.``: . '.���. �rch 19, 2005. Furthermore, The StudySession will be hel {` incentive. ���: �+ at•e�� ::` -:: t ro osed changes be presented to theLilili"'ell'sthission and commentary no later any p p • "y f :,nside "® ctment of any changes in the Economic than April 19, r 2005. That C"Q�Gjr: .. ��¢� •� Development Incentive Po. i'Gud- ones nsf ,, r than May 6, 2005. J/f .;rr•NYFr;::.'.. "!i. DISCUSSION• Vice 6,. xp: , :., tt.:.yt S• : 4..G:,v•r!/(/� ed that the Policy Guidelines were misused. stated that Coin:c•.. nees:tl; : f.:take into consideration the 1200 & 1300 signatures that She ...:...r�,,, •tte ' �`:� 1 "e •a 1'04s. She stated that the freeze would be insurance to • were submi d.:::� J• . /,fix.';.".,�,"•' � Je Coi i `.,::; ou y e t move forward before a complete review was done. c ens t : y,.. the itiz ..,,:: �� 46, also s y- at an enacted needs to be referable. She � Y p ,;-- Mayor Loomis 6bnithe ..; > ` at all policies when enacted are referable. He stated that the time that this policyk`` d have been referred was when it was first enacted. He also e that we are not ���•ivin awaysales tax. He stated that we don't have the sales tax if stated g g the companies don't come into the Town. MOTION AS AMENDED CARRIED 5 — 1, with Mayor Loomis opposed. Mayor Loomis recessed the meeting at 9:08 p.m. The meeting resumed at 9:18 p.m. 6. PUBLIC HEARING—ANNEXATION ORDINANCE NO. (0)04-43 EXTENDING AND INCREASING THE CORPORATE LIMITS OF THE TOWN OF ORO VALLEY, PIMA COUNTY, STATE OF ARIZONA, PURSUANT TO THE PROVISIONS OF TITLE 9, CHAPTER 4, ARTICLE 7, ARIZONA • 11/17/04 Minutes,Council Regular Session 11 REVISED STATUTES AND AMENDMENTS THERETO,BY ANNEXING THERETO CERTAIN TERRITORY CONTIGUOUS TO THE EXISTING TOWN LIMITS OF THE TOWN OF ORO VALLEY, ARIZONA (3.259 ACRES, ANNEXATION AREA I) J Special Projects Coordinator Scott Nelson reported that this annexation was initiated at p the p request of theproperty owners. On August 18, 2004, the Council voted to initiate the q annexation process for the 3.259 acre parcel knows as Annexation Area I. He further reported that the land is in conformity with the Town's General Plan and all legal requirements for annexation have been completed. MOTION: Council Member Gillas ie MOVED to ADOPT Annes•on Ordinance � ' �:� f Oro Valley. (0)04-43 extendingand increasing the corporate limits of the Tl `, y Council Member Parish SECONDED the motion. Motion • — 7. OV12-03-09 REQUEST FOR APPROVAL 9,St,'! RELY ' : :;;rRY PLAT AND DEVELOPMENT PLAN CONSISTING O .S 0 (2) OFF1 ' UILDINGS T (28) SINGLE-FAMIL: ,vYFJOTS y�b.Y- D AN AP"'EAL OF AhD TWENTY EIGHT ,�5���, };::>>� N::: �l REGARDING AN THE DEVELOPMENT REVIEW BOARD'S D. ���::�:;; 5!: .� .;-�� ALTERNATE PARKING PLAN FOR THE OF :. y/= DEVELOPMENT, LOCATED ON THE WEST SIDE OF:;, :;..R.ACLE Rof A; ORTH OF EL „�? jn�?��:r�,.�,U�y •' ..tom'•''' U ,9 EEN O"! -'aWy4 DRIVE PARCEL # 224- 33-1320 24- CONQUISTADOR :.t::: .. � WAY AND S O :�. �f:�:: 33 1320 `' ,/ esentiF 'X applicant, T.J. Bednar Homes, stated Craig Hunt, Entranco Engine `. r: pp have been workiz: . " 'th?'. _# n staf � y roduce a design that meets staff's that they conditions and that is i � ""•� ����`��` :. ling Code Revised. He stated that they �n , � �/pli an..:,. :::::.. N the held a neighborhood meets"" ., r p ° f: ' 2004 and concerns were expressed re ardin 2-sto ho:... e bem .. Feed next to adjacent homes. He stated that they have g g ry �:r. g !f"' ��'�� �'`'��"• Note 21.) Mr. Hunt stated ' �y'` .,_le story homes (General volunteered to � � :,.::•.Y.- . ....: that when t ' .A' m went ire t `"r ►evelo ment Review Board (DRB), areas of concern ;.:. p of!! N were raisef! 1) Lots '; „'ropos:.:..it-2 office buildings on the northern end of the property with residen h"R4 % n.: :. onsistent with home uses adjacent to the west. Proposed of size is typ `W 200 square feet with surrounding lots ranging from 2,400— �v , 3,600 square'eet. Believe it is a compatible development with the adjacent uses. 2) Access Primary access is off Oracle Road which is consistent with other developments such as Desert Willows on east side of Oracle Road. Zoning Code does not place any requirement on the number of accesses to developments. As requested by Town staff, they are working on a second access to connect to El Conquistador Way through the project to the south. (Mr. Hunt reviewed an overhead of the site depicting the access to the north and a future connection to an access to El Conquistador Way. (General Note 33 addresses access.) Area is under the jurisdiction of ADOT and they have addressed concerns regarding access to Oracle Road and are not planning on restricting • 11/17/04 Minutes,Council Regular Session 12 is (i.e. u-turns are ermitted and motorists entering Oracle Road would movemen p need to look for sufficient gaps in traffic flow.) Mr. Hunt further addressed some the Council's concerns and stated that they are proposing that General Note#33 time frame be changed to 2 years (instead of 1 year)to allow more time for the Town and the developer to come to an agreement for the cross access roadwayto El Conquistador Way.) They also would support signage for"No q Right Turn on Red" for traffic leaving the resort of El Conquistador Way. He further explained preliminary that theyhave had discussions with the property owner to the north of theirJ ro'ect and T.J. Bednar is looking into creating an emergency connection p between their office buildings and the access to the development to the north. Mr. Hunt further stated that they have tried to be responsive to the Council's,14,1 the neighbors' concerns, and they are requesting approval of the project. ij',; DISCUSSION FOLLOWED regarding: f NJJ r that ADOT look into a "No Ri' urn On ,J✓�. ' sign at the request ..��H �', ➢ Town can , �; On/44M' ' ay. This int�-4`�� ion• was built Intersection of Oracle Road and El Conquista : ��_;,..� ,, ;5P,/// /;tif. .J J to accommodate u-turns. J;f ' "`�`�"�-�� �•• �'` to provide an access to the ➢ -14 General Note 33 —Why is it the Town's re : ► s�ji p south? Place responsibility on the developer. w` r' equirement in the Zoning Code that requires the develo er hive a secori7 y,-ss.) (Only requirement • �'10:1_�� a�`-'... •~f 11/17/04 Minutes,Council Regular Session 13 General Note 3 3 to 2 years (or whatever amount of time that the Council change in preferred.) FURTHER DISCUSSION FOLLOWED REGARDING: ➢ DRB's approval of the parking plan—The rest of the plan was denied; therefore, the parking plan was not approved. Cross access does not have to be provided for this project to be viable. But in the ➢ long term, it is important. ➢ Sidewalks are provided internally but no provision in this development for sidewalks along Oracle Road. (ADOT consistently prohibits sidewalks in their right-of-way along Oracle Road.) ➢ Sound walls— Sound mitigation testing has been done for 1�, le Road widening (staff will check on final results.) New asphalt will be rug' zed asphalt which is a noise reduction equal to most sound walls. ➢ Hill alongside development is more effective than d /4/k,.absorbs and does p .� not reflect sound.) ' Mayor Loomis opened the floor for public comm ',.f. t ke 10130 N. Sawgrass, questioned t J`($)ic noise that would be Harold Kande s .� 'f• v:�ou h the interior of the head-light lacing a N '� generated and intrusion of car h /��'�'�� r:'•:• �` „ g • ���'`����`'��r:•� '��"•;: 4�evelo•Y�V .� t. He further commented project that would back up to houses in ®....+ _d.: ; that ADOT has said that the right in/righ :^ sce ll : . ,,,,acceptable and that u-turns were planned for the intersection at El Co tri§t.:4,ei .. and Oracle Road. He also e Way would o en u the back roads to stated that providing an acce ���. ����'�� onq r p�:; : :�, utt Wi . open - more traffic. This needs t•����} -Istu ��jj. furthe ..,;�� .'....:F�N....l:;..;...:.•::.�,,�.,, District, stated that Ken Scoville, 701 W. Wet ,,.re i pr 'Amphitheater School D , theyhave met with; Bet` `. .omes but to date, theyhave not entered into a voluntary / ''' : Y!!`,w thisproject at this ����..�� :::;: f�r_�:; '��-; of donation a ree� enf pwfore.�, istnct opposes the approval time. „ Geoff Masterg;,'```f r E. So Pines Drive, questioned what would happen tote wash area on the bac ;*o JF14-20 which sits on the east side of Mutterer Wash. •� Jim Malliet, 10124 N.`/ alle del Oro Drive, stated that he had a problem with the development. He stated that he was opposed to putting in the access road. He also stated that he has been making u-turns coming off of Greenock Road onto Oracle Road. He also expressed concerns regarding drainage, density and lot sizes and the fact that the p back of one of the office buildings would be facing their homes and taking away their view of the mountains. Bill Adler, 10720 N. Eagle Eye Place, stated that this was a"generica" development and it would not establish a sense of identity and is out of character with what people would like to see along the Oracle Road Scenic Corridor. He also stated that even though the hill would serve as a sound wall, it would obliterate the people's views and it is the views • 11/17/04 Minutes,Council Regular Session 14 that people relish. He further stated that larger lots should be required to protect the p ORSCOD and further enhance the area. Council Member Parish commented that the developer is: 1) Providing lower density than is required; 2) The recreation area is being placed in the safest possible place thus providing y "Eyes on the Park" from almost all sides; 3) He is sacrificing one lot to provide extra access from the rear of the property that is not required by the Code; and 4) Has emergency agreed to obtain access between the two office buildings to the north. g MOTION: Council Member Parish MOVED to APPROVE OV 12-03-09, the Villa Milagro office and residential Preliminary Plat and Development Plan and to approve the Applicant's Alternate Parking Plan subject to the conditions in Ex ii;,, "A"with the following added chanes/conditions: 1) General Note 33 will by r :.'aged from 1 year to 2 � ine whether or not ears, 2) Require that the applicant conduct a Sound Studyt:.:.:4 • along {-r�.r ter i ndary qthe it would be necessary to build screen/sound walls th ,,: "`%'n,;.. . ro the development or consult with AIa,...:$ ,r regarding% ,. . ? -xisting studies property p y to protect p l� ; , r.., that theymayhave and if determined necessary, their ation of the a sound walls would be the responsibility of the develo er 3) E r ni the `'`N screen w. 1 for light p y p � • "`icy � 'end 4) Direct the developer mitigation for neighbors near the south ingress/egr `;::-jo..;`fr an emergency access between the two offic . ings to the north. to obtain g y ; .. l'i�5 l/1l i r 1 /��l amendedper Motion ���f�'�ry��`°`�1't_: }rf EXHIBIT A (As ) J j ,•,1J yr�jN,,;11 1.1.. �;..,:;,>, r���y,�,r./1m-RAS r/ • The A li cant shall rovi $$` ` � modeling runs to /, 1 pp p ::4 �rre � . incorporate the follows /Ji'r%1. `� ',r,;:. s sho n Figure 4 to correspond with those a. Revise cr ::r ,: ...: .. : g p .1/� � /�; showVr ✓° r`�em schematics and their respective ,'. : � C-� �• river l �f/ elevations. -` /••% '✓•rr/li%r i`?•3i`'i:+ .Y'F' Y.G:I%s'1;•i'/ .J�if/f//%y.i. ,r-<:// fi`yr f 1 '1, f/:vY!,.;2.• ..•,'�.•F.N.,` annel geometry for Mutterer Wash Channel b. Show c�•-�:� �1� ,,y: 'npoint of improvements near lot 20 upto �:��% - :5:�: the starting p �:�fr�C r'v.5+r.;,� �"'��'�/l�l;/i:::. • � z''f an�° s ing t. lnal downstream cross-section approximately 220 11 ..%. ;x;11` feet nog • - f Greenock. 2• li ppc ::l. shall provide an additional topographic map (1"= 30', C.I• = %,V.:•'.. 'g cross-sections •7 •5 •3 •25 •2 and .1. Include a match line 3. The Applicant shall provide a sealed letter from a structural engineer pp approving the design of the screen/retaining wall as shown on detail 1/3. pp Letter shall address the sliding factor of upper wall footing. 4. Lot 13 on the Preliminary Plat,per General Note Number 33,has been designed to serve as a vehicular access roadway to the Wolfley Property, provided that the Town grants a grading exception and HDZ variance for the roadway within one year of approval of a Final Plat for this subdivision. Should the grading exception that would be required to build such a cross- access roadway not be approved by the Town within one year of Council pp a roval of the Villa Milagro Final Plat,the General Note could be removed 11/17/04 Minutes,Council Regular Session 15 by administrative action by the Town and the Applicant could then develop Lot 13 with a single-family home. 5. General Note 33 will be changed from 1 year to 2 years. 6. Require that the applicant conduct a Sound Study to determine whether or not it would be necessary to build screen/sound walls along the eastern boundary of the property to protect the development or consult with ADOT g re ardin anyexisting studies that they may have and if g determined necessary, the installation of the screen/sound walls would be the responsibility of the developer. 7. Extend the back screen wall for light mitigation for neighbors near the south ingress/egress point. 8. Direct the developer to obtain an emergency access /ween the two office buildings to the north. Jl/s' 1. *-7 ig,..Council Member Dankwerth SECONDED the motion. r ' 4 DISCUSSION: In response to a question from Maye: Hunted 7 •r?.::: . ,fir'omisMr. Hunted that the • �"�,"����`` ''•� rt of the la i dscape buffer developer is providing screen walls anda quantic •-oY . ees a { � along the back wall of the development as required .{f $:. ing Code. lff SF AMENDMENT TO THE MOTION: Co Member •ie suggested that the Town rs. aF:'F �y ' wn wOul�: of b ' . "''gated to build a sound request a note be added stating that ther :, �•.: ' g wall in the event of anymodification oft f .it "st� , - :l:on Oracle Road in the future. •~�� g 'lf"/ `yof the south ingress/egress point He also recommended a screen wall be bu ►tg : g if there is a future road built s 01'' 4,the deVeEsirient so that the lights won't bother the neighboring subdivisions. ; nc embe ': arish/Dankwerth agreed to add the screen wall extension as a con! ...�14;7 l..::: AMENDMENT T E `" N: Mayor Loomis suggested that the applicant ::°:v . etc • whether or not it would be necessary a Sou � .�. .:� : . ' . •; to build screen/sounc" s aloe F' east -I oundary of the property to protect the ;� developm sf r ouncil M''$ er Parish stated that he would accept this condition with the p - ,f�� ' ' ,.:} f`: OT regarding anyexistingstudies that theymayhave addition that suit w�t� AD g g "a"f`'` the installation of the screen/sound walls would be the andifetermine• - :,�: e :',;`,0f,,, responsibility of th ' `"yNf~`o er" be added. (Council Members Parish/Dankwerth agreed to add this condition. In response to a question from Vice Mayor Abbott regarding the hydrology and water run- off of the project, Mr. Hunt stated that discharge of rain water is determined by the quantity of water and the time. He stated that the staff report addresses the drainage from the site and the peak is only increased by 6 cubic feet per minute as the runoff from this development is discharged in advance of peak flows from the upstream water sheds. (Mr. Jansen agreed that the idea is to get the water into the major wash systems quickly to reduce the peak. He stated that to try and detain water run-off would add water to the peak flow. He explained that Mutterer's Wash has a capacity of 318 cubic feet per second (cfs) and the total flow including this development is projected to be 225 cfs.) 11/17/04 Minutes,Council Regular Session 16 In response to questions from the Council, Mr. Hunt explained that the developer p estimates the approximate number of homes purchased by families with children would be about 30-35% of the project. He also stated that the range of home sizes would be from 7,000 to 1,800 square feet. Vice Mayor Abbott stated that she would be voting against this motion and expressed concerns regarding comments from the DRB and comments from residents. She also stated that she did not believe that this project was meeting General Plan Policy 2.4A and that theJ ro•ect should be less dense and more compatible with the neighborhood. p Mayor Loomis stated that he also would be voting against this motion as he felt that the developer should be required to obtain the access to the other side, he is not convinced that General Note 33 completes that requirement. ,;, MOTION CARRIED, 4—2 with Mayor Loomis and Vice + or+ " " ,t pp o osed. ;f s �r:... Mayor Loomis recessed the meeting at 10:35 p.m. eeting resum- f 0:43 p.m. f11: '`Y`® 8 OV12-04-02 REQUEST FOR APPRO ���' ��d,..�� RELIMINARY PLAT FOR A 49 LOT SUBDIVISION LOCATED WI III s`.,, HE LA RESERVE PLANNED AREA DEVELOPMENT4W ON THE."�. wRTHWEST CORNER w�}�r r y Or- `� •'IDLE DRIVE OF PUSCH WILDERNESS DRIVE ,f ' :R. B `'` PARCEL #220-08-008K) THE FOOTHILLS :, , IIS 9 (ADJACENT TO ''';;;A:1; ,>/ : :h' ms °e property owners, stated that this parcel Steve Lenihan, 1810 E. Calle, .;a, :Yy�'%y'•�, o, on , .'N ,! ,`'?:'':'. e ea Dee ment (PAD) for apartments, certain is zoned in the La � '�����. Y .. Reserve; �f �-� � � commercial uses and fo..,Nr , -le fa: li ;4.re: Iden uses. He explained that they have :'- �i,������:%fir.r,,.;::; town `Y s: : ` ,-�, : there are three different levels in the chosen to build 49 � ; c1%�" � .. terrain, so they have: hree ro: lots on .ifferent levels which provides for different elevations and.a for !` .; :cti ;etsca e• Mr• Lenihan further reported that they are leaving apprp7iately Waif '=ir property as natural open space including the wash •� �; ov }` area• Hes they agreement with the first five conditions as provided by the staff but they44,e; " / e that _dition 6 (change layout between lots 24 & 25) is not -V �? :l'Y`�{iF f�` required by the °'y' i :, A:and certainly not by the La Reserve PAD• He asked that : Condition 6 be del e /..��is" In response to a question from Mayor Loomis, Mr. Lenihen explained that the common area would be owned and maintained by the Homeowner's Association. He stated that there is a restriction on the area across the wash and it is a recorded deed restriction. He stated that theywould be happy to provide that to Town staff. He also stated that . . . regarding the wash and natural open space, they would include a provision in the CC&Rs g that it would be maintained as natural open space. In a response to question from Vice Mayor Abbott regarding wrought iron fencing along p Lots 42-47, Mr. Lenihen stated that part of the property would not be in need of fencing 11/17/04 Minutes,Council Regular Session 17 due toost-develo ment terrain. He requested that this condition be addressed with the p p approval of the landscape plan and final plat to give them time to address it with staff. Community Development Director Brent Sinclair explained that the Development Review Board recommended denial of this preliminary plat due to applicable General Plan Policies. He explained,however, that the plat does meet the requirements of the La Reserve PAD and the La Reserve PAD supercedes the Town's Zoning Code. In response to a concern expressed by Vice Mayor Abbott regarding recreation areas, Mr. Lenihen stated that the central recreation area is comparatively flat, but other recreation areas are for passive recreation with flat areas being used for picnic tables and the slope areas would be utilized for trails. J�f Mayor Loomis opened the floor for public comment. " if Ken Scoville, 701 W. Wetmore, representing Amphithe ,?, chool :Ht, stated that they have met with the applicant,but they have not e :,-r-d into a Bona•(Cgreement with the District. Therefore, the District opposesd evelc, ent. Art Segal, 10148 N. Bighorn Butte, questioned the o 6/ �'� ' f. g: The property to the east of this development is a gated community „>�'ld-mess III'1',;4,.1/-4 , his development have ff,:. f ✓.rte✓/f 2%. access to the gated community? Secon e >.'...,,��;: Bans doh e construction equipment r enter this property? He also commented &.. i e :. `: -. is not voluntarily contributing to the aid of the schools, then ma be theyli:;; ,: ;,” ' ��p :::o�t r=�'�-�we as much consideration as those who see fit to contribut /,,; /,os„f • o-/ In response to follow-u r F stion;' .. FCoun ember Parish on behalf of Mr. Segal, r.,y_ s.:. their development would be through the Mr. Lenihen explained t "��.��: �;e• :� �� ,,,: g gate that serves Wilde-ness :- e explained that there is an emergency access that t1-4:':',C.:: ,,„,�N " ,�6''.;'• would exit befQ"e; : ;.4 H-:.; `reer explained that the access for construction equipment '' be frd : sch ' s emess Drive and they would probably enter the property b eon y/:he gate. f . In response to a'9/r ` ` st,,;, �f'y Council Member Gillaspie regarding the donation / agreement with thef� o District, Mr• Lenihen explained that they have met with Mr. Scoville. He stated that his partner has three calls into Mr. Todd Jaeger, Legal Counsel for the School District, and as to date, he has not heard back from Mr. Jaeger. He p ex lained that they are down zoning from 200 units to 49 units with house sizes ranging from 1,250 square feet to 1,400 square feet, so they did not think they would have many families with children. However, they continue talks with the School District. MOTION: Council Member Dankwerth MOVED to APPROVE 0V12-04-02, Preliminary Plat for La Reserve Villas with the conditions specified in Exhibit"A”with the following added condition: The Homeowner's Association (HOA) will provide restrictions and dedication for open space and preservation to be identified in the CC&Rs. 11/17/04 Minutes,Council Regular Session 18 EXHIBIT"A" (AMENDED PER MOTION) 1. Add a 4-ft. wide terrace between the bottom of the slope and the top of the retaining wall in the graded area adjacent to the retaining wall east of the west PAAL from station 10+40 to Station 10+67. 2. Show drainage and erosion protection for the graded area east of the retaining wall adjacent to the west PAAL from station 10+00 to station 13+00. 3. Add elevations to the top of bank protection at the east end of the site. 4. / .:F�� Correct all vertical curves throughout the subdivisioN ,: ave a 75-ft. minimum curve length per the Town of Oro Vail- , i,f evision Street ply/r: • Standards section 4.6-8• ''r• r r • ���` the US Are,�� : zF sof 5• The applicant shall supply a copy of a letter nc ; - g . .r rp • ��.: .mit Engineers about this project prior to final p ' : gay, 6. The layout between lots 24 & 25 must be redt)' / .ured to avoid side yard w` Hr%f to front yard conflicts. '7' , ,✓/. X,rr ��` %'rYy, ' restrictions and 7• The Homeowner's Association :? O'� {h .. v'- .e vide dedication for open space and pres , :r` •''`' "-.entified in the CC&Rs. • IF 8• Wrought iron fen `ar 1.. the `.�eation area will be installed as necessarywith , :� `ace " ,,a!and recreation area being acceptable ,.,,/i:�r.•,`.n yE'� '. to the Commune'�'� h � rs1 f or. Council Memb 7 ir� . � bfiv, D the motion. ,xr l/ • AMEND TO TH Ep- TION: Council Member Parish asked to add the condition ''.:; ` {' and leavingit upto staff as to the placement around the regarding wry ��:��"� ron fe� .� recreation area a : %r Yys,rryo4 also be acceptable to the Community Development Director. Council Member erth and Council Member Carter accepted the amendment. MOTION AS AMENDED CARRIED, 5 — 1 with Vice Mayor Abbott opposed. 9. DISCUSSION AND ACTION REGARDING GENERAL PLAN FUTURE PUBLIC INVOLVEMENT PROCESS; SCHEDULING; AND FUTURE EVENTS. Community Development Director Brent Sinclair reviewed the time frame for the General Plan Revision Committee's events including meetings, open houses, Council and Planning and ZoningCommission review,public outreach and the election for approval of the General Plan Update. 11/17/04 Minutes,Council Regular Session 19 DISCUSSION FOLLOWED REGARDING: ➢ General Plan Revision Committee participating in the outreach process and promotion of the Plan. ➢ 2 tasksg oing on—Revision of General Plan and the development of a Public Outreach Program (support from community leaders, restrictions with respect to staffs involvement (provide information but can not promote). ➢ Need to address the overall picture. Create legislative direction to the staff. Let staff come back with details/proposals so the Council can act on it and then allow the public time for adequate comment. MOTION: Council Member Gillaspie MOVED to DIRECT staff to develop a draft Public Input and Outreach Plan for the General Plan Update and in any e any advisory resources that theyneed includingTown Council Members, citir the General Plan • ���`�� review Revision Committee, and to present the draft to the Town Co,�., �-: ... by >�.a'.'�"..'i°.�,`.-.•,'��.�'mac,:: ,_ December 31, 2004. Council Member Dankwerth SECON- •D f f``' `` tion. • Inresponse to aquestion from Vice;•'r` =:-/or Abbott, M 4 ' m T; DISCUSSION. p �. � elair stated that the open houses are scheduled to be held in i '`' '' nua ''d mid-Ma ch. p 1. h}j�J'YU��l1) %•/J/.4•/./j iii"l i:.::::;::': MOTION CARRIED, 6 0. :0C-54*: Item (Item 10 was moved forward on the age ' r 11. DISCUSSION AND/OR POSSI ` ',A ►:. ''IC► is 0 SCHEDULE "OPEN HOUSE" OR "TOWN HA '_ .���:_";.iiii: :, r ::� 2005 •� �,,:: ETIh �� �:�,. JiJ'U- ;: �` :r .t Vi i.y,;:� ayor Abbott and Council Member Town Manager Chuck §„,• repc� :•�:. Carter requested that thi , ; bfoi e agenda to discuss the possibility of havingthree to fou., ;�o s en ha ::;.,:town hal meetings in the upcomingyear to discuss pertinent issue .:. :Tov `' to open the lines of communication between the ` ::i`y F' �' ::titue=:` `" n an informal setting. He further explained that Town Coun .�= d them` agendas in` >' A ::somewhaU',".ecific in order to not violate the Arizona Open Meeting Laws. r J:f Vice Mayor Abbot'44:9;:- that she applauded the work that Council Member Dankwerth and Council Member ``ulver are doing in Sun City with their town hall meetings. She stated that they would like to expand into other areas of the town. She also commented that the General Plan Update open houses could be combined with these meetings. She stated that she would like to see three to four open houses/town hall meetings throughout the year with one at Sun City, one at Town Hall or Casas Adobes Church and maybe one at the CDO Little Theater. She recommended that there be 2 —3 items on the agenda (1 item specific to the area, 1 general item, and item on General Plan,) with the meeting running about 1 1/2 hours, and including questions and answers and a Call to Audience. She then suggested that they end these meetings and go into the General Plan open house. She stated that she would like to have the full participation of the Town Council. 11/17/04 Minutes,Council Regular Session 20 DISCUSSION FOLLOWED REGARDING: ➢ Why necessity to have all council members at all meetings? If only have 3 present,resent, no violation of the Open Meeting Laws and could have interaction with the public. ➢ Helpful to have all Council present. Could break out into groups and discuss items openly. ➢ Open Meeting Laws have changed, need to watch for additional limitations. ➢ Concerns with mixing several items (i.e. Town Hall Open House/Town Hall meetings with General Plan Open House.) Consider not doubling up effort because of magnitude of the General Plan. ➢ Challenge is the length of time Town Hall meetings take (restrict to a maximum of 2 hours.) % ➢ Applaud Vice Mayor Abbott for her research but have c� "` s with Open Meeting Laws. (Good idea to have only 2 —3 council s , ';y .rs present.) ➢ Call to Audience provides time to hear from constit:, s. . :' 1 tool to bring issues forward. ➢ Understanding of town hall meetings is that,:,i,-* is interaction he public. ➢ Public business is done in public meetings;r ve o ;.::, ouse with specific topic. g ➢ Talkin about topics would not be the ro,�,` "`A sen houses. There are y� fv' concerns that deliberation mayinadvertently t� f1 ace. Can not take any action, can not deliberate! /�'�y -' }` ' %.j/ �� ' - wha'y, n staff would need to be r meetings would be aggress"' ;.`$ �•r ., ' ➢ Fou g ggti,-/ �::. present to answer questions. '. "' ,f fry ��� ;� r;f ➢ Have attorney at meeting to keep t �: ' . :•:1 i }ne. • ,:lei �j�. '•':/S:.ii /i/ • • a.' e/town' ,:meetin s in the next year. Look at ➢ Consider having 3 opt ° "::�� , � g Y tentative agendas, "`+ tative dates, topics and specific target ; u1 :rcilitie p p f�sr' ff, areas `'' • q;k: fr ; • 12. FUTURE4c, ND4 MSTheCouncil may bring forth general topics or'��"""`� / ��`��� not discuss deliberate or take anyaction future 1,!:11, :::S x::: Ida ;.:. . ncil may None requested on tl: 1sicspie'` �d `:Y, ant to ARS 38-431.02H)—fy. . CALL TO AU .: : C r0,7 one. ADJOURNMENT MOTION: Council Member Dankwerth MOVED to adjourn the meeting at 11:45 p.m. Council Member Parish SECONDED the motion. Motion carried, 6—0. Respectfully submitted, Roxana Garrity, CMC Deputy Town Clerk r a 11/17/04 Minutes,Council Regular Session 21 that the foregoing minutes are a true and correct copy of the minutes I hereby certify g g the regular session of the Town of Oro Valley Council of Oro Valley, Arizona held of g onday the 17th of November 2004. I further certify that the meeting was duly _ _ called and held and that a quorum was present. Dated this day of ,2004. Kathryn E. Cuvelier, CMC '?•.• 1,y�' r.7i�" � rf:' ,F dl�'. /�r�fy? " Town Clerk rl,' ,:f,`.•'moi,' rr;'rN.�rr` ,1r. t' .,.,40,04$71,!.;),:, ` *Ilk' ,, � +ijy � is �•.,.•,,�lc- ;;/,,#,F ; >'.4:41e/ rwr 'r��r1./r i; �y,, ��?4yt ry`?'f�' �S' �a�% r•�rr/it J `bp'ry /,' r. r is/i,;. :>�;;:;•r- -.4p.,;14,.y.r 'rte `;•,( �!< , J',r, 7 rrr�y .. rrr'!r;r 'k r'S ivl,-'Sf'' airy:;:r:;%.+ii'" 7,AMO. �`i b!?k�i! i.:�'+'C.�,'/.•' %%:'`'>. !' r/r{rrr. r. r y, 46,,e,:. :44;:t/'.. X51,r,.,i:., �., is fi y: /7 i„ ,;;;.,115;f ✓'Ty'rte%,r ler� IP ,;;. 'a:.':, �i.1j•.";rY,�[•,�.� .. r,�3..r/' pfR r. rFF,Yi j •v. 6a y.',• J',' �,.;+�s,.fir•!. `•+{c,'0, rfn`,'.:;i..•:, . /CLS`,;;': Y,.....rf•. r��liY,/�, ,"!,!0.0441,,,,.1,0 :,:+iii`• /r�^,�'�';s;y� `�" Q,:, voy.-yo,- ---- .�fx%:%' <r• `�/' 2�•�r,rrr. ys� Jry r!•�'�!(U/�.o'{t63?'{'xl'�jf',/'?.•r{j%�H r,"'��-'.f`:. , .+"ii h,• .:r �,��.�y1�p��%,J,�'���,,•'J ,.rrr ,r,( / .� /S>�' r. rye"'.'. '�n..it<-n��'%`��C�c,Syi�'r•�S/:.... ,��"'�r/,,5�.. '�r �; :.*": B TOWN OF ORO VALLEY COUNCIL COMMUNICATION MEETING DATE: December 1,2004 TO: HONORABLE MAYOR AND COUNCIL FROM: Daniel G. Sharp, Chief of Police SUBJECT: Resolution No. (R) 04-122 Intergovernmental Agreement for Opticom System SUMMARY: Request is to enter into an IGA(Intergovernmental Agreement)with Golder Ranch Fire District for the use of Golder Ranch Fire District's Opticom Traffic Interruption System. The Golder Ranch Fire District has installed and utilizes an Opticom Traffic Interruption System at certain intersections along Oracle Road,north from Hardy Drive,within the Town of Oro Valley. The Oro Valley Police Department seeks permanent use of this system for the Town's Law Enforcement emergency response. FISCAL IMPACT: FY 04/05 =None ATTACHMENTS: 1) Resolution No. (R) 04 -122 2) Copy of the Intergovernmental Agreement for Opticom System. RECOMMENDATIONS: Acceptance is recommended. SUGGESTED MOTION: I move that Resolution No. (R) 04 - 122 be adopted. Daniel G. Sharp,Of of Police Charles F. Sweet,Town Manager RESOLUTION NO. (R) 04- 122 A RESOLUTION OF THE MAYOR AND COUNCIL OF THE TOWN OF ORO VALLEY, ARIZONA, APPROVING AN INTERGOVERNMENTAL AGREEMENT BETWEEN THE TOWN OF ORO VALLEY AND GOLDER RANCH FIRE DISTRICT FOR THE USE OF THE OPTICOM TRAFFIC INTERRUPTION SYSTEM. WHEREAS, the Town of Oro Valley pursuant to Arizona Revised Statutes (A.R.S.) 11- 952 is authorized to enter into agreements for joint and cooperative action with other public agencies; and WHEREAS, the Town of Oro Valley is authorized to establish and maintain the Oro Valley Police Department, pursuant to A.R.S. 9-240 (B)(12); and WHEREAS, the Town of Oro Valley desires to enter into an intergovernmental agreement with Golder Ranch Fire District for using Golder Ranch Fire District's Opticom Traffic Interruption System (the "IGA"); and WHEREAS, it is the desire of the Town of Oro Valley to enter into the IGA in order to provide for the health, safety and welfare of the residents in the Town of Oro Valley; NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND TOWN COUNCIL OF THE TOWN OF ORO VALLEY, ARIZONA AS FOLLOWS: 1. That the Intergovernmental Agreement between the Town of Oro Valley and Golder Ranch Fire District for using Golder Ranch Fire District's Opticom Traffic Interruption System, is hereby approved. 2. That the Mayor of the Town of Oro Valley, Chief of Police and other administrative officials are hereby authorized to take such steps as necessary to execute and implement the terms of the IGA. PASS AND ADOPTED by the Mayor and Town Council of the Town of Oro Valley, Arizona, this 1st day of December , 2004. TOWN OF ORO VALLEY, ARIZONA Paul H. Loomis, Mayor ATTEST: APPROVED AS TO FORM: Kathryn E. Cuvelier, Town Clerk Town Attorney • INTERGOVERNMENTAL AGREEMENT FOR OPTICOM SYSTEM This Intergovernmental Agreement ("Agreement") is entered into pursuant to A.R.S. 11- 952 between the Golder Ranch Fire District ("District") and the Town of Oro Valley, a municipal corporation located in Pima County,Arizona ("Town") for the purpose of providing permanent use of the District's Opticom traffic interruption system for the Town's law enforcement emergency response. RECITALS A. District is a duly constituted fire district in Pima County, Arizona. B. Town is a duly constituted Town in Pima County,Arizona. C. District has installed and utilizes an Opticom traffic interruption system at certain intersections along Oracle Road,north from Hardy Drive,within the Town(the"Opticom system"). D. Town is familiar with the District's Opticom system and seeks permanent use for the Town's law enforcement emergency response. E. District and Town each desires to jointly exercise their power pursuant to the provisions of A.R.S. 11-951 et seq. Therefore, in consideration of the mutual covenants and conditions contained in this Agreement, and other good and valuable consideration, District and Town agree as follows: AGREEMENT 1. Recitals. The Recitals set forth above are incorporated into the terms and conditions of this Agreement. 2. Opticom A. The District herby authorizes the Town to utilize the District's Opticom system upon the terms and conditions set forth in this Agreement. B. The Town agrees to pay the District the sum of$100 each for installation of Opticom emitters installed by the District into the Town patrol vehicles. C. The Town agrees to pay the District 50% of the actual future reasonable maintenance costs, including parts and labor, for those intersections located within the Town's limits. The District shall provide maintenance costs statements in writing to the Town, which shall be due within thirty (30) days of the statements' date. Any statement left unpaid after sixty (60) days of its date,shall accrue interest at 18% per annum. D. If the Town installs or allows to be installed, Opticom at any of the Town intersections,the Town agrees to allow District emergency vehicles equipped with Opticom emitters to appropriately interrupt traffic when responding to District emergencies. 3. Term. This Agreement shall be fora period of one (1)year from the date of this agreement between the Town and District and shall automatically renew for consecutive one (1) year periods unless terminated by either party with a 30 day written notice. 4. Purpose. The Purpose of this Agreement is to allow the Town to permanently use the District's Opticom system related to its law enforcement emergency response within the Town. 5. No Partnership. This Agreement shall not be construed to create any partnership,joint venture or employment relationship between the parties of any employee of the parties.No party shall be responsible for any debts, obligations, accounts or liabilities of another party based upon this Agreement. This Agreement shall not be construed to release any jurisdictional responsibilities of any party. 6. Indemnification. Each party shall indemnify, defend and hold harmless the other party. Its directors, council members, officers, departments, employees, attorneys, and agents from and against any and all suits, actions, legal or administrative proceedings, claims, demands or damages of any kind or nature arising out of this Agreement which results from any negligent or intentional act or omission of the indemnifying party, or anyone acting under its direction, control or on its behalf. 7. Conflicts of Interest. Both parties to this Agreement agree to be bound by the conflict of interest provision of A.R.S. 38-501 et. seq. Not withstanding any provision to the contrary, either party may cancel this Agreement pursuant to the terms of A.R.S. 38-511 (A) et. seq. 8. Compliance. Each party shall comply with all applicable Federal and State statutes,regulations and ordinances. Each party shall comply with all legal requirements relating to civil rights and nondiscrimination in employment. 9. Insurance. Each party shall make available its insurance information. Including but not limited to verification of coverage to the other upon request of the other party, Each party shall provide the other with a copy q of its certification of insurance immediately upon execution of this agreement. 10. Funding. The parties represent that they have within their respective budgets sufficient funds to discharge the obligations and duties assumed under this Agreement. If, for any reason, either party does not appropriate sufficient funds for the purpose of maintaining this expiration of funding. Any obligation obli for indemnification arising under this agreement shall survive termination of the agreement for lack of funding. 11. Jurisdiction.Noting in this Agreement shall be construed as limiting or extendinglegal jurisdiction of any party.Nothing in this Agreement is intended to confer any right or remedies to any person or entity not a party to this Agreement. 12. Sey Severability. Ifprovision of this Agreement is held to be invalid, such any invalidity shall not affect other provisions or applications of this Agreement which can be given effect without the invalid provision or application an to this end, the provision of this Agreement are declared severable. 13. Authority. Each party has approved this Agreement by an official act of its governingbody. It has authorized the execution of this Agreement and all acts that are necessary or reasonably required to carry out its purposes. 14. Notices. All notices will be personal delivery,by U.S. Mail or overnight delivery service and directed to the parties at the following addresses: District: Attn: Fire Chief Golder Ranch Fire District 3535 E. Hawser Street Tucson, AZ 85739 Town: Attn: Town Manager Town of Oro Valley 11,000 N. La Canada Drive Oro Valley,AZ 85737 15. Governing Law. This Agreement shall be governed by Arizona law and g venue shall be proper in Pima County DATED the day of , 2004. DISTRICT Town Golder Ranch Fire District Town of Oro Valley By By Its Chairman Its Mayor Attested: Attested: By By Its Clerk Its Clerk The foregoing Intergovernmental Agreement is in the proper form pursuant to A.R.S. 11- g g . 11- 952 and is within the powers and authority granted under Arizona law. Attorney for District Attorney for Town TOWN OF ORO VALLEY COUNCIL COMMUNICATION MEETING DATE: December 1, 2004 TO: HONORABLE MAYOR & COUNCIL FROM: Chuck Kidwell CCTM Transit Administrator RESOLUTION NO. (R)04-123 SUBJECT: Consideration and possible Approval of an Amendment to the FY 2004-2005 Transit Division Budget. Background: The State of Arizona LTAF II fund ( Local Transportation Assistance Fund II ) is a fund administered by the Arizona Department of Transportation and is derived from Arizona Lottery revenues generated by lottery sales and is contingent on tickets sold. The Town of Oro Valley's Transit Division relies on the assistance of additional sources of funding from several sources such as the LTAF II Funding. The LTAF II funding is a fund that was created by the State Legislature and signed into law by Governor Hull in 1998 to assist local communities with their transportation needs. In 2000 the program was made "transit use only," i.e., unless a jurisdiction got less than $2,500 in distribution, the funds must be used for transit purposes (public transportation sponsored by a local governmental entity or special needs transportation). The LTAF II fund is one that fluctuates greatly from year to year and some years there is no money available in the fund; therefore there is no appropriate or accurate way in which to budget for the funding. The funding or lack there of is solely based on the states intake of lottery proceeds such as the Power ball etc. and the grant cycles fall within the middle of the Town of Oro Valley's Fiscal Year and because the State does not know in advance how much money if any will be available for distribution to local government there is know accurate way to make appropriate allocation into the transit budget. In September of this year The Town of Oro Valley was notified that it was authorized to apply by grant application for a total of $89,262.72 from the LTAF II fund. The Transit Administrator applied for these funds in October and the State Treasurer anticipates that on or before January 1, 2005 the funds will be distributed to local entities including The Town of Oro Valley for use in the Transit Division. Therefore the Town of Oro Valley Transit Division is requesting of Mayor & Council the approval of an amendment to the 2004-2005 Transit budget by utilizing the $89,262.72 LTAF II monies in the following manner: 1. $56,000.00 for the purchase of a new Transit Vehicle for use in the Coyote Run Para-transit service. 2. $10,000.00 to place in the transit division maintenance budget. 1 TOWN OF ORO VALLEY COUNCIL COMMUNICATION Page 3 of 3 3. $23,262.72 (the remainder of grant funds) into contingency/reserve. Attachments: 1. Resolution®04- 123 Fiscal Impact: The fiscal impact is negligible in negative terms because this money was an unanticipated source of revenue for fiscal 2004-2005. The fiscal impact in positive terms is substantial because it will allow (with council approval) the use of funds to purchase a much needed new transit vehicle and to help offset the cost associated with operating several transit vehicles. In addition it will allow the placement of $23,262.72 into the Town of Oro Valley Transit Division contingency/reserve budget item. RECOMMENDATIONS: Staff recommends approval of an amendment to the Town of Oro Valley's Transit Division Budget for fiscal year 2004-2005 in the amount ofa locatio.72 to be n of LTAF tlll fundsfor e thee uamount of $10,000 for rchase of a new transit vehicle at a cost of $56,000 and for the maintenance cost and the placement of the reminder or $23,262.72 in contingency/reserve. SUGGESTED MOTION: I move to approve Resolution Number ® 04- 1 7 3 , authorizing the amendment of the 2004-2005 Town of Oro Valley's Transit Division Budget in the amount of $89,262.72 to allow purchase of a new transit vehicle for the total amount of $56,000 and to allow the use of $10,000 to place in the transit maintenance budget and the remainder of$23,262.72 in contingency/reserve. Or I move to deny approval of Resolution Number® 04- 123, authorizing the amendment of the 2004- 2005 Town of Oro Valley's Transit Division Budget in the amount of$89,262.72 to allow purchase of a new transit vehicle for the total amount of$56,000 and to allow the use of$10,000 to place in the transit maintenance budget and the remainder of$23,262.72 in contingency/reserve. TOWN OF ORO VALLEY COUNCIL COMMUNICATION Page 3 of 3 Town Engineer \A Town Manager I RESOLUTION NO. (R) 04- 123 A RESOLUTION OF THE TOWN COUNCIL OF THE TOWN OF ORO VALLEY, ARIZONA, DECLARING THE APPROVAL OF AN AMENDMENT OF THE TOWN OF ORO VALLEY TRANSIT DIVISION 2004-2005 BUDGET. WHEREAS, the Town of Oro Valley will receive additional funding through the LTAF II Lottery fund for use in the Town of Oro Valley Transit Division Budget; and WHEREAS, The LTAF II funding is a fund that was created by the State Legislature and signed into law by Governor Hull in 1998 to assist local g 9 communities with their transportation needs; and WHEREAS; The LTAF II fund is one that fluctuates greatly from year to year and in someY ears there is no money available in the fund, therefore there is no appropriate ro riate or accurate way in which to budget for the funding. NOW, THEREFORE, BE IT RESOLVED, BY THE MAYOR AND COUNCIL OF THE TOWN OF ORO VALLEY, ARIZONA: 1) To approve the amendment of the Transit Division 2004-2005 budget to allow for the use of LTAF II funding as outlined in Council Communication. 2) Certifies that the Town complies with all appropriate state and federal regulations, policies, guidelines, and requirements as they relate to the LTAF II funds. 3) Certifies that the Town has matching funds necessary in the amount of 25% of the total LTAF II grant monies. 4) Certifies that the Town agrees that it is subject to a timely annual independent audit performed by a certified public accountant, and shall have such independent certified public accountant certify that expenditures are made as prescribed by ARS 28-8103. PASSED AND ADOPTED AND APPROVED by the Mayor and Town Council of the Town of Oro Valley, Arizona this 1ST day of DECEMBER , 2004. TOWN OF ORO VALLEY, ARIZONA Paul H. Loomis, Mayor ATTEST: Kathryn E. Cuvelier, Town Clerk APPROVED AS TO FORM: Tobin Sidles, Town Attorney TOWN OF ORO VALLEY COUNCIL COMMUNICATION MEETING DATE: December 1, 2004 TO: HONORABLE MAYOR & COUNCIL FROM: Jose N. Rodriguez, P.E., Engineering Division Manager SUBJECT: Resolution (R) 04- 124 Award of contract for Project No. OV30 03/04-05B Town Building Expansion Ex ansion and Amend the Budget to provide for additional funding SUMMARY: This1 roject involves remodeling the basement area by constructing office p spaces in the Town Hall Administration Building for the building codes inspectors and includes, but not limited to minor demolition, partition walls, plumbing, electrical, mechanical and other incidental work. In response to the advertisement for bids, the Town received four bid proposals. The bidro osals were opened by Town staff at 2:00 P.M., Friday, November p p 12, 2004. The following is a summary of the bids received along with the engineer's estimate: 1. D.L. Lerew, Inc.: $ 59,200.00 2. TRS AC Service and Construction, Inc.: $ 68,740.00 3. Sandpiper Construction, Inc.: $ 86,021.00 4. Niche Contractors, Inc.: $119,525.00 Engineer's Estimate: $ 60,000.00 FISCAL IMPACT: Funding for this project is available from budgeted Town funds Funding Summary: Fiscal year 03/04 $60,000.00 Design $15,649.10 Balance $44,350.90 Low Bid $59,200.00 Available Funds $44,350.90 Shortfall $14,849.10 TOWN OF ORO VALLEY COUNCIL COMMUNICATION Page 2 of 2 ATTACHMENTS: Resolution (R) 04 -124 RECOMMENDATION: Public Works staff recommends the awarding of this contract to D.L. Lerew, Inc. through the adoption of the attached resolution and to amend the Town's budget to cover the $14,849.10 shortfall from the General Fund Contingency Account. SUGGESTED MOTION: The Council may wish to consider one of the following motions: I move to approve Resolution (R) 04 - 124 OR I move to deny Resolution (R) 04 -12 4 Jose N. Rodriguez, P.E., Engineering Div. Manager il ' i I , ,f „_.4 -4,,.....-:. -::: William A. Jansen, PE::\ •wn Engin r / )' fl0 AL.-/_' I Chuck Sweet, Town Manager RESOLUTION NO. (R)04- 124 A RESOLUTION OF THE MAYOR AND TOWN COUNCIL OF THE TOWN OF ORO VALLEY, ARIZONA, AUTHORIZING AND APPROVING THE MAYOR TO CONTRACT WITH D.L. LEREW, INC FOR THE TOWN BUILDING CODES EXPANSION AND AMEND THE BUDGET TO PROVIDE ADDITIONAL FUNDING. WHEREAS, the Town Building Codes Expansion within the Town's property is necessary to the public health, safety, welfare and beautification; and WHEREAS, the Town Council deems it necessary, in the interest of providing for the health, safety, welfare, and beautification to the citizens of Oro Valley, to authorize the mayor to contract with D.L. Lerew, Inc. for the Town Building Codes Expansion and amend the budget to provide additional funding from the Town's General Fund Contingency Account; and NOW THEREFORE, BE IT RESOLVED BY THE MAYOR AND TOWN COUNCIL OF THE TOWN OF ORO VALLEY, ARIZONA: That the Mayor is authorized to contract with D.L. Lerew, Inc, for the Town Building Codes Expansion and amend the budget to provide additional funding. PASSED AND ADOPTED by the Mayor and Town Council of the Town of Oro Valley, Arizona this day of December, 2004. TOWN OF ORO VALLEY, ARIZONA Paul H. Loomis, Mayor Date ATTEST: APPROVED AS TO FORM: Kathryn Cuvelier, Town Clerk Date Tobin Sidles, Acting Town Attorney Date 2 TOWN OF ORO VALLEY OUNCIL COMMUNICATION MEETING DATE: December 1, 2004 TO: HONORABLE MAYOR & COUNCIL FROM: David L. Andrews, Finance Director SUBJECT:• Town Council Acceptance of the Town's Financial Audit for the Fiscal Year Ended June 30, 2004 SUMMARY: The certified public accounting tin firm of Cronstrom & Trbovich has completed the financial audit of the Town for the fiscal year ended June 30, 2004. The financial audit was conducted in accordance with generally accepted auditing standards and the auditors have rendered an opinion that the Town's general purpose financial statements fairly present the Town's financial position as of June 30, 2004. At the October 25, 2004 Budget et and Bond Committee meeting, committee members were presented with the results of the Town's audit. The committee recommended forwarding the audit to Council with a recommendation for acceptance. partner in the firm of Cronstrom & Trbovich, is here this evening to present an r. Dennis Osuch, overview of the audit to the Council and answer any questions the Council may have. ANALYSIS: • Town's financial operations for the fiscal year ended June 30, The following is an overview of the p 2004: b At June 30, 2004 the General Fund's unreserved/undesignated fund balance was $8,974,342 which increased by $1,402,395 or 18.5% compared to last fiscal year (page 30). The following items account for ti Ie increase: Revenues in excess of expenditures $959,392 Payment received from OV Water Utility For Payoff of Advance 330,729 Reduction of Long-Term Compensated Absences 112,274 Total $1,402,395 c=> General Fund revenues exceeded budget by $1,856,701 primarily related to local sales taxes ($941K), building permit fees ($361K), commercial building permit fees ($204K) and charges for services which include court costs, recreational fees and zoning and subdivision fees $231K (page 34). G:\COUNCIL\Audit 6-30-04.doc F,......— TOWN OF ORO VALLEY ,;OUNCIL COMMUNICATION PAGE 2 OF 4 * General Fund expenditures were below budget by $759K (excluding contingency reserves of $5,512,307). Several capital improvement projects totaling $440,919 were carried forward to fiscal year 2004/05 (page 34). b The Highway Fund's fund balance increased by $437K. Several road and street improvement projects were not completed in this fiscal year (page 35). a The Public Transportation Fund's (Coyote Run) fund balance was $97,987. $102K was transferred to this fund from the General Fund (page 36). b The Townwide Roadway Development Impact Fees Fund has a fund balance of$10,549,937. The Town received a HELP Loan in the amount of$5M from the Arizona Department of Transportation for the La Canada Drive Widening project (page 68). The following is the financial position of the Oro Valley Water Utility at June 30, 2004: b Revenues exceeded budget by $2,640,060 primarily related to water sales ($220K), ground water preservation fee ($402K), water connection fees ($749K) and capital contributions ($840K). * Expenses were under budget by $1,157K primarily in the following line items: outside professional services ($469), depreciation ($144K) and bond issuance costs ($493K). b Capital contributions of$840,096 are for line extension agreements with developers (page 38). * Net income of$3,244,676 and capital contributions of $840,096 increased retained earnings by $4,084,772. Total net assets at year end totaled $21,440,939 which includes $5,607,571 in capital contributions (page 38). * At June 30, 2004 the combined statement of cash flows-all proprietary fund types reflected the following cash balances (page 39): Operating Cash-Oro Valley Water Utility $4,654,780 Operating Cash-Stormwater Utility 247,494 Cash held by Trustee for debt service payments 3,191,274 Cash Project Improvements — 2000 Water Dev Fees 1,080,428 Cash Project Improvements — 2003 Sr. Lien Oblig. 24,802,197 Debt Service Reserve Fund 2,343,593 Total $36,319,766 G:\COLTNCIL\Audit 6-30-04.doc TOWN OF ORO VALLEY COUNCIL COMMUNICATION PAGE 3 OF 4 ATTACHMENTS: Select Page References from Comprehensive Annual Financial Report: 1. Independent Auditor's Report (pages 13-14) 2. Balance Sheet - Governmental Funds (page 30) 3. Statement of Revenues, Expenditures and Changes in Fund Balance-Governmental Funds (page 32) 4. Statement of Revenues, Expenditures and Changes in Fund Balance-Budget and Actual (page 34) 5. HURF Fund-Statement of Revenues, Expenditures and Changes in Fund Balance- Budget and Actual (page 35) 6. Public Transportation Fund - Statement of Revenues, Expenditures and Changes in Fund Balance-Budget and Actual (page 36) 7. Townwide Roadway Development Impact Fees Fund - Statement of Revenues, Expenditures and Changes in Fund Balance-Budget and Actual (page 68) 8. Statement of Net Assets —Water Utility and Stormwater Utility (page 37) 9. Statement of Revenues, Expenses, and Changes in Fund Net Assets —Water Utility and Stormwater Utility (page 38) 10. Statement of Cash Flows (page 39) 11. Full Copy— Fiscal Year Ended June 30, 2004— Comprehensive Annual Financial Report G:\COUNCIL\Audit 6-30-04.doc TOWN OF ORO VALLEY COUNCIL COMMUNICATION PAGE 4 OF 4 RECOMMENDATION: The Town's Budget and Bond Committee and staff recommend acceptance of the financial audit for the fiscal year ended June 30, 2004. SUGGESTED MOTION: I make a motion to accept the Town's financial audit for the fiscal year ended June 30, 2004. or I move to... aakza.,,,,,,._ David L. Andrews Finance Director i $ ' / l4 Chuck Sweet Town Manager G:\COUNCIL\Audit 6-30-04.doc fr", Sk- INDEPENDENT AUDITOR'S REPORT The Honorable Mayor and the Town Council of the Town of Oro Valley,Arizona We have audited the accompanying financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the Town of Oro Valley, Arizona (Town), as of and for the year ended June 30, 2004, as listed in the table of contents. These financial statements are the responsibility of the Town's management. Our responsibility is to express an opinion on these financial statements based on our audit. p �' We conducted our audit in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the respec ive nancial •.s _tion of .e v e tai activities the business-type activities, each major d, and the aggregate remaining fund information of the Town of Oro Valley, Arizona, as o une 30, 2004, and the respective changes in financial position and cash flows, where a—Tic el , thereof and the respective budgetary comparison for the General Fund, Fund pp and Public Transportation Fund for the year then ended in conformity with accounting principles generally accepted in the United States of America. The management's discussion and analysis on pages 15 - 25 and the Public Safety Personnel Retirement System Schedule of Funding Progress on page 62 are not a required part of the basic financial statements but are supplementary information required by the Governmental Accounting Standards Board. We have applied certain limited procedures, which consisted principally ally of inquiries of management regarding the methods of measurement and presentation t• of the required supplementary information. However, we did not audit the information and express no opinion on it. 13 .u•�-•�� Via,� !,"+:: ��.. 7,2' ' the financial state� - � �� �� �- rmin =' was conducted for the purpose of forming opinion Our audit • Town'sstatements. The introductory section, com• ��•': � __--_ collectively comprise the basic financial - • colle y p statistical section are presented for individual fund financial statements and schedules and and • • are not a required of the basic financial statements. The purposes of additional analysis andpart . p� financial statements and schedules have been subjected to the combining and individual fund finan • applied in the audit of the basic financial statements and, in our opinion, are auditing procedures whole. • in relation to the basic financial statements taken as a h fairly stated in all material respects - • . introductorysections have not been subjected to the auditing procedures The and statistical t of the basic financial statements and, accordingly, we express no opinion on applied in the audit them. Cronstrom&Trbovich,P.C. October 11, 2004 14 ,V7-4-'br0 A r----1,,, A TOWN OF ORO VALLEY, ARIZONA BALANCE SHEET GOVERNMENTAL FUNDS JUNE 30, 2004 Townwide Roadway Nonmajor Public Development Governmental Gene:-- ) HURF Transportation Impact Fees Funds Totals Assets Cash and cash equivalents $ 8,954,957 $ 1,969,825 $ 118,473 $ 9,832,763 $ 2,265,837 $ 23,141,855 Receivables,net751,133 - 1,785,418 - 2,536,551 Accounts receivable Taxes receivable - 1 233 848 - - 1,233,848 > - 73,745 - 786,966 Intergovernmental receivable 475,365 237,856 Interest receivable630,500 630,50011,418 - - -2,300 134 11,206 1,746 26,804 Due from other funds17,912 - - 17,912 Inventories 7.172 - - 7.172 Prepaid items Total assets $ 12.064.393 $ 2.227.893 $ 118.607 $ 11.703.132 $ 2.267.583 $ 28.381.60 8 Liabilities and Fund Balances Liabilities $ 991,400 $ 39,041 $ 4,484 $ 1,142,742 $ 2,112 $ 2,179,779 Accounts payable - wages and benefits 606,136 57,963 12,150 5,0736 681,3222 Accruedg - 2 26,033 - - ' Intergovernmental payable - - - 630,500 630,500 Due to other funds - Deferred revenue 4,919 478,913 473,994 - - - -202 - 757,785 838,802 Customer deposits payable 80,815 - Compensated absences -current 501.476 25.013 3.986 5.380535,855 Total liabilities 2.679.854 122.219 20.620 1.153.195 1.395.316 5.371.204 Fund balances -- - _ eserve r. 17,912 - - - 17,912 Inventories - _ - 7,172 Prepaid items 7,172 - nreserve• - 21,680,303 Undesignated 8,974,342 2,061,352 95,908 10,548,701 Un gn Designa es or long-term 1,236 - 212,303 compensated absences 207,713 3,354 - Designated for unemployment 195,312 23,056 2,079 - - 220,447 Unreserved,reported in nonmajor: - _ - 534,723 534,723 Special revenue funds - Debt service funds - - - 314,301 314,301_ 23.243 23.243 Capital projects funds - _ Total fund balances 9.384.539 2.105.674 97.987 10.549.937 872.267 23.010.404 Total liabilities and fund balances $ 12.064.393 $ 2.227.893 $ 118.607 $ 11.703.132 $ 2.267.583 $ 28.381.608 The notes to the basic financial statements are an intergral part of this statement. 30 -",..-.7-7---:, 7._ � lei ARIZONA -Q:: pi-F,,,, -� TOWN OF ORO VALLEY, , .� - ' �3 STATEMENT OF REVENUES,EXPENDITURES, AND CHANGES IN FUND B�� E GOVERNMENTAL FUNDS FOR THE YEAR ENDED JUNE 30, 2004 Townwide Roadway Nonmajor Public Development Governmental General HURF Transportation Impact Fees Funds Totals Revenues Taxes Sales taxes $ 7,898,956 $ 25,899 $ - $ - $ - 3- $ 7,924 4,855855 697 Franchise taxes 371,697 - - ' 7,736,382 2,568,169 232,816 13,437,638 15,000 23,990,005 Intergovernmental - 245,230 463,150 217 920 Fines and forfeitures 2,503,802 32,774 2,536 576 - - ' Licenses and permits823,287 785 299 5,978 32,010 Charges for services - -110 - 30,251 Impact fees Contributions and donations 30,141 - Investment earnings 164,067 25,659 1,798 78,739 11,255 281,51 - 8 229411 Other . 129.630 63.139 11.925 24.71749.411 Total Revenues 19.837.894 2.721.618 278.659 14.730.942 271.485 37. 598 Expenditures Current - 6,590 5,800,477 General government 5,793,887 - - - 9,313,688 - - 112,527 9,426,215 Public safety 17,193,322 2,284,206 337,960 14,571,156 Highways and streets - - _ 2,540,949 Culture and recreation 2,540,949 - Debt Service _ _ - 541,290 541,290 Principal retirement - 19,977 406,495 426,472 Interest on long-term debt - - - - 93.415 93.415 Issuance costs - Total Expenditures 17.648.524 2.284.206 337.960 14.591.133 1.160.317 36.022.140 Excess(deficiency)of revenues 1.818.458 over expenditures 139.809 2.189.370 437.412 (59.301) (888.832) Other financing sources(uses) -Transfers in - 101,592 - 1,080,576 1,182,168 - - (1,246,168) Transfers out (1,246,168) - Issuance of long-term loan - - 5,000,000 - 5,000,000 payable - - 5,572,700 5,572,700 Issuance of refunding debt - Payment to refunded debt _ - - (5.478.016) (5.478.016) escrow agent - Total other financing sources (uses) (1.246.168) - 101.592 5.000.000 1.175.260 5.030.684 Net change in fund balances 943,202 437,412 42,291 5,139,809 286,428 6,849,142 Fund balances,beginning_ year of 8.441.337 1.668.262 55.696 5.410.128 585.839 16.161.262 Fund balances,end of year $ 9.384.539 $ 2.105.674 $ 97.987 $ 10.549.937 $ 872.267 $ 23.010.404 C The notes to the basic financial statements are an integral part of this statement. 32 r �. 7-77,t-:--, .4, •r,C T�i ��- �v ., .r , 1j ,,,�;y. 107.-. ., !';,;;w':�I Vit. t"`� ;�, �• h�i'� :!�� BONA ^,, .�_ -. ; , TOWN OF 0'0 � _.__ENERAL FUND STATEMENT OF REVENUES, E i! i 1r-TU=llT , AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL FOR THE FISCAL YEAR ENDED JUNE 30, 2004 Original Variance with Budget Final Budget Actual Final Budget Revenues axes Sales taxes $ 6,952,000 $ 6,952,000 $ 7,898,956 $ 946,956 Franchise taxes 378,000 378,000 371,697 (6,303) 7,826,393 7,826,393 7,736,382 Intergovernmental 200,000 200,000 217,920 17 920 Fines and forfeitures 1,821,000 1,821,000 2,503,802 .82.80 Licenses and permits 554,300 554,300 785,299 30,99' Charges for services 24,500 24,500 30,141 5,641 Contributions and donations 125,000 125,000 164,067 39,067 Investment earnings 100.000 100.000 129.630 (.., Other 17.981.193 17.981.193 19.837.894 1.856.701 --)f Total Revenues Expenditures Current General government 141,088 141,088 145,454 (4,366) Town council 407,471 407,471 361,249 46,222 Town clerk Magistrate court 487,037 487,037 502,109 (15,072) 338,909 338,909 351,161 (12,252) Town manager 477,867 477,867 454,199 23,668 Finance 557,781 557,781 524,165 33,616 Legal 780,947 792,947 708,558 84,389 Planning and zoning administration 6,222,200 5,887,020 390,299 5,496,721 General Custodial facility maintenance 157,773 157,773 138,832 18,941 Economic development ment 1,039,630 1,039,630 884,353 155,277 Community development administration 355,701 392,201 390,287 1,914 Human resources 220,467 220,467 240,096 (19,629) Information systems 317,984 317,984 311,226 6,758 systems information 116,390 116,390 110,352 6,038 319.336 319.336 281.547 37.789 Public works Total general government 11.940.581 11.653.901 5.793.887 5.860.014 Public safety 8,488,268 8,488,268 8,238,572 249,696 Police Building safety 1.219.895 1.249.095 1.075.116 173.979 Total public safety 9.708.163 9.737.363 9.313.688 423.675 Culture and recreation Parks and recreation 1,373,436 1,566,916 1,622,413 (55,497) Library 962.098 962.098 918.536 43.562 Total culture and recreation 2.335.534 2.529.014 2.540.949 (11.935) Total Expenditures 23.984.278 23.920.278 17.648.524 6.271.754 P Excess(deficiency) of revenues over expenditures (6.003.085) (5.939.085) 2.189.370 8.128.455 Other financing sources(uses) Transfers out (1.182.168) (1.246.168) - (1.246.168) er financin sources(uses) (1.182.168) (1.246.168) (1.246.168) - Total oth g Net change in fund balances ces (7,185,253) (7,185,253) 943,202 8,128,455 Fund balances,beginning ofyear 7.185.253 7.185.253 8.441.337 1.256.084 $ - $ - $ 9.384.539 $ 9.384.539 Fund balances,end of year The notes to the basic financial statements are an integral part of this statement. 34 • .,-. TOWN OF ORO VALLEY, ARIZONA fib_, '"7-: HURF FUND STATEMENT OF REVENUES,EXPENDITURES, AND CHANGES IN FUND BALANCES —BUDGET AND ACTUAL FOR THE FISCAL YEAR ENDED JUNE 30, 2004 Original and Final Variance with Final Budget Actual Budget Revenues 25,899 $ 25,899 Taxes Intergovernmental 3,234,000 2,568,169 (665,831) Licenses and permits 22,000 32,774 10,774 Charges for services 6,000 5,978 (22) Investment earnings 20,000 25,659 5,659 s Inver g 2.000 63.139 61.139 Other Total Revenues 3.284.000 2.721.618 (562.382) Expenditures Current Highways and streets 4.718.133 2.284.206 2.433.927 Hi� y Total Expenditures 4.718.133 2.284.206 2.433.927 Excess(deficiency)of revenues over expenditures (1,434,133) 437,412 1,871,545 Fund balances,beginning year innin of 1.434.133 1.668.2.4 234.129 year balances,end of $ - $ 2.105.. 4 $ 2.105.674 --; 4('A- The notes to the basic financial statements are an integral part of this statement. 35 ARIZONA l j,...„,.,,J _ tal TO�JN OF ORO VALLEY, ; =ii— PUBLIC TRANSPORTATION FUND STATEMENT' 'SMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL FOR THE FISCAL YEAR ENDED JUNE 30, 2004 Original and Final Variance with Final Budget Actual Budget Revenues Intergovernmental $ 262,580 $ 232,816 $ (29,764) g32,010 510 Charges for services 31,500110 110 Contributions and donations - Investment earnings 1,000 1,798 798 - 11.925 11.925 Other Total Revenues 295.080 278.659 (16.421) Expenditures Current Highways and streets 438.320 337.960 100.360 � Total Expenditures 438.320 337.960 100.360 Excess(deficiency)of revenues over expenditures (143.240) (59.301) 83.939 Other financing sources(uses) Transfers in 101.592 101.592 - Total other financing sources(uses) 101.592 101.592 - Net change in fund balances (41,648) 42,291 83,939 Fund balances,beginning of year 41.648 55.6 6 14.048 � Fund balances,end of year $ - $ 9:--7:987 97.987 7f , The notes to the basic financial statements are an integral part of this statement. 36 :::101f' t-.40:'.=/it. ::-A' " ' ARIZONA .� `� { TOWN OF ORO VALLEY, _- ,';-L. TOW WIDE ROADWAY DEVELOPMENT IMPACT FEES FUND AND ACTUAL SCHEDULE OF REVENUES,EXPENDITURES,AND CHANGES IN FUND BALANCES-BUDGET FOR THE FISCAL YEAR ENDED JUNE 30,2004 Original and Final Variance with Final Budget Actual Budget Revenues $ 11,591,000 $ 13,437,638 $ 1,846,638 Intergovernmental 803,000 1,189,848 386,848 Impact fees - 78,739 78,739 Investment earnings 4.000 24,717 20.717 Other 12.398.000 14,730.942 2.332,942 Total Revenues Expenditures Current 26,868,373 14,571,156 12,297,217 Highways and streets Debt Service 19,977 (19.977) Total Expenditures on long-term debt - endit res 26.868.373 14.591.133 12.277.240 Excess(deficiency)of revenues over expenditures (14.470.373) 139.809 14.610.182 Other financing sources(uses) 400,000 - (400,000) Transfers in 5,576,000C-----00.000 --- � (5,576,000) Issuance of long-term debt _ 5.000.000 Total other financing sowces(uses)Issuance of long-term loan payable5.976.00000. (976.000) Net change in fund balances (8,494,373) 5,139,809 13,634,182 8.494.373/ 5,91f1„128 (3,084.245) Fund balances,beginning of year $ 0.549,937 S\ 10.549.937 • ( -L2....._-----z-------2 Fund balances,end of year S. - / 1,,q _s 68 i„4 .1i,. ; _ �• ! is , TOWN OF ORO VALLEY,ARIZONA .t -A. Ai '-- - STATEMENT OF NET ASSETS PROPRIETARY FUNDS JUNE 30,2004 . Stormwater Water Drainage Totals Assets Current assets Cash and cash equivalents $ 32,452,909 $ 247,494 $ 32,700,403 Receivables,net 1,556,292 Accounts receivable 1,556,292 - Interest receivable 54,958 - 54,958 Deferred charges 1,395,540 - 1,395,540 Restricted assets 3,619,363 - 3,619,363 Noncurrent assets Capital assets 10,303,525 Non-depreciable 10,303,525 - Depreciable(net) 40.407.913 - 40.407.913 Total Assets 89.790.500 247.494 90.037.994 Liabilities Current liabilities Accounts payable 510,122 7 510,129 Accrued wages and benefits 74,009 1,728 75,737 i Interest payable 1,611,484 - 1,611,484 Intergovernmental payable 341,526 - 341,526 Customer deposits payable 126,875 - 126,875 Compensated absences-current 13,526 - 13,526 Bonds,notes and loans payable-current 1,402,649 - 1,402,649 Noncurrent liabilities 47,010 Compensated absences 47,010 Bonds,notes and loans payable 64.222.361 - 64.222.361 Total liabilities 68.349.562 1.735 68.351.297 Net assets Invested in capital assets,net of related debt (14,913,572) - (14,913,572) Restricted for 1,148,895 Replacement and reserve 1,148,895 Debt service 2,343,593 - 2,343,593 Unrestricted 32.862.022 245.759 33.107.781 Total net assets $ 21.440.938 $ 245.759 $ 21.686.697 The notes to the basic financial statements are an integral part of this statement. 37 ,, Nor w w�.y VALLEY, ..z,._., ,f.„,,, 13 ARIZONA . ,, a Lt ' ` TOWN OF ORO --� STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN FUND NET ASSETS PROPRIETARY FUNDS FOR THE FISCAL YEAR ENDED JUNE 30, 2004 Stormwater Water Drainage Totals Operating revenues Charges for services $ 11.651.447 $ - $ 11.651.447 Total operating revenues 11.651.447 - 11.651.447 Operating expenses Costs of sales and services 4,543,738 45,551 4,589,289 Depreciation and amortization 1.764.055 - 1.764.055 Total operating expenses 6.307.793 45.551 6.353.344 Operating income(loss) 5.343.654 (45.551) 5.298.103 Nonoperating revenues(expenses) Impact fees 248,093 - 248,093 Investment earnings 285,118 - 285,118 Interest expense (2,650,195) - (2,650,195) Miscellaneous nonoperating revenues 18.006 - 18.006 Total nonoperating revenues(expenses) (2.098.978) - (2.098.978) Income(loss)before contributions and transfers 3,244,676 (45,551) 3,199,125 Capital contributions 840,0 - 840,096 Transfers in - 64.000 64.000 Change in net assets 4,084, 77 18,449 4,103,221 Total net assets,beginning of year 17.356.166 227.310 17.583.476 net assets,end ofyear 4 $ 21.440.938 ',i 245.759 $ 21.686.697 Total The notes to the basic financial statements are an integral part of this statement. 38 141T---4''?' 4+`..cam? v-7 ,� �.�..... it 'S 3 L ,A,L ''!� 'rid'- il TOWN OF ORO VALLEY,ARIZONA :g ,- 4,: STATEMENT OF CASH FLOWS PROPRIETARY FUNDS FOR THE FISCAL YEAR ENDED JUNE 30, 2004 Storm Water Water Drainage Totals Cash flows from operating activities from customers $ 11,300,553 $ - $ 11,300,553 Receipts Payments to suppliers (2,698,236) (43,816) (2,742,052) 1,614,730 to employees (1,614,730) - (1,614,730) Payments248,093 - 248,093 Impact fees - (400) (400) Intergovernmental revenues 18,006 18,006 Other revenue 47.059 47.059 Customer deposits 7.300.745 (44.216) 7.256.529 Net cash flows from operating activities Cash flows from noncapital financing activities - (330,729) Cash received from(paid to)other funds for interfund borrowing (330,729) - 64.000 64.000 Transfers in (330.729 64.000 (266.729) Net cash flows from noncapital financing activities Cash flows from capital and financing activities - (5�244�610) Purchase of capital assets (5,244,610) - Proceeds from capital debt 39,573,529 39,573,529 P Proceeds of refunding revenue bonds 3,522,088 - 3,522,088 Issuance costs (853,860) - (853,860)Payment to refunding escrow agent on refunded bonds (13919519) - (13,919,519) � 710) - (6,222,710) .222 6, , Principal payment on capital debt ( Interest payment on capital debt (2.075.588) (2.075.588) -Net cash flows from capital and financing activities ]4.779.330 - 14.779.330 Cash flows from investing activities Investment earnings 245.332 - 245.332 Net cash flows from investing activities 245.332 - 245.332 Net change in cash and cash equivalents 21,994,678 19,784 22,014,462 Cash and cash equivalents,beginning of year 14.077.594 227.710 14.305.304 Cash and cash equivalents,end of year(including$3,619,363 of restricted $ 36.072.272 $ 247.494 36.319.766 assets in the Water Fund) Reconciliation of operating income(loss)to net cash provided by operating activities Operating income(loss) $ 5,343,654 $ (45,551) $ 5,298,103 P g Adjustments to reconcile operating income(loss)to net cash provided (used)by operating activities: Depreciation and amortization - 1,764,055 1,764,055 P248,093 - 248,093 Impact fees Nonoperating receipts(payments) 18,006 - 18,006 Change in assets/liabilities: Receivables,net (365,185) - (365,185) Accountsy a able 198,448 7 198,455 P Intergovernmental payable 14,291 (400) 13,891 AccruedP �a oll and related benefits 19,377 1,728 21,105 - 12,947 Compensated absences 12,947 Customer de osits 47.059 - 47.059 P Net cash provided(used)by operating activities $ 7.300.745 $ (44.216) $ 7.256.529 Non-cash and investing activities Bond issuance costs of$63,359 were amortized during the year. In addition, the Town received $840,096 of assets contributed by developers recorded as capital contributions in the Statement of Revenues, Expenses and Changes in Fund Net Assets. The notes to the basic financial statements are an integral part of this statement. 39 T TOWN OF ORO VALLEY, ARIZONA COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED JUNE 30, 2004 Mr. Paul Loomis Mayor Ms. Paula Loomis Vice Mayor Councilmembers Mr. Kenneth Carter Ms. Conny Culver Ms. Helen Dankwerth Mr. Barry Gillaspie Mr. Terry Parish Chuck Sweet Town Manager David L. Andrews Finance Director Prepared by: Finance Department pa-, _,..:_._ la.„ 4. - ,..7_,5-.- TOWN OF ORO VALLEY, ARIZONA COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED JUNE 30, 2004 TABLE OF CONTENTS INTRODUCTORY SECTION Letter of Transmittal 1 Officials 7 List of Principal Organizational Chart 8 GFOA Certificate of Achievement 9 FINANCIAL SECTION dent Auditor's Report ort 13 p Management's Discussion and Analysis 15 Basic Financial Statements Statement of Net Assets 28 Statement of Activities 29 Balance Sheet- Governmental Funds 30 Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Assets 31 Statement of Revenues,Expenditures and Changes in Fund Balances - Governmental Funds 32 Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Statement of Activities 33 General Fund Statement of Revenues,Expenditures, and Changes in Fund Balances -Budget et and Actual 34 g HURF Fund Statement of Revenues, Expenditures, and Changes Budget and Actual 35 in Fund Balances - Bud g Public Transportation Fund Statement of Revenues, Expenditures, and Changesin Fund Balances -Budget and Actual 36 Statement of Net Assets - Proprietary Funds 37 p 8 Statement of Activities - Proprietary rietary Funds 3 p e ent of Cash Flows-Proprietary rietary Funds 39 m p Notes to the Financial Statements 41 Required Supplementary Information: C Public Safety Personnel Retirement System and Arizona Corrections Officer Retirement Plan Schedule of Funding Progress 62 'P TOWN OF ORO VALLEY,ARIZONA COA 1PREHENSIVE ANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED JUNE 30,2004 TABLE OF CONTENTS Combining and Individual Fund Statements and Schedules • -Nonmajor Governmental Funds 66 Combining Balance Sheet � binin Statement of Revenues, Expenditures, and Combining Changes in Fund Balances -Nonmajor Governmental Funds 67 Roadway Development Impact Fees Fund- Schedule of Townwide Ro y p Actual 68 Expenditures, and Changes in Fund Balances - Budget and Revenues, p StateSeizuresExp and and Forfeitures Fund- Schedule of Revenues, Expenditures Changes in Fund Balances -Budget and Actual 69 Federal Seizures and Forfeitures Fund- Schedule of Revenues, Expenditures, and Balances -Budget and Actual 70 Changes in Fund g Service Fund- Schedule of Revenues, Expenditures, and Municipal Debt 71 Changes in Fund Balances -Budget and Actual 'zli;:_; .?:,-;,,:, '.,-J.,--,. ,f,----:--..,., TOWN OF ORO VALLEY,ARIZONA COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED JUNE 30, 2004 TABLE OF CONTENTS STATISTICAL SECTION Government-wide information: Government-wide Expenses by Function 74 Government-wide Revenues 75 Fund Information: General Government Expenditures by Function 76 General Government Revenues by Source 77 State of Arizona Sales Tax Information Taxable Activities, Tax Rates and Distribution Shares 78 Transaction Privilege (Sales) Tax Rates by Category 79 Historical and Projected Excise Tax Collections 80 Town Transaction Privilege(Sales) and Franchise Tax Collections By �'Indust Classification 81 Special Assessment Billings and Collections 82 Estimated Debt Service Coverage Regarding Excise Tax Collections 83 Statement of Bonded Indebtedness 84 Direct and Overlapping General Obligation Bonded Debt 85 Computation of Legal Debt Margin 86 p Property Tax Assessment Ratios and Comparative Secondary p Assessed Valuation Histories 87 Comparative SecondaryAssessed Valuation Histories 88 Assessed Valuations and Tax Rates 89 Primary and Secondary Property Tax Rates Direct and Overlapping Governments 90 Net Assessed and Full Cash Values of Taxable Property 91 Secondary Assessed Valuation By Property Classification 92 Secondary Assessed Valuation of Major Taxpayers 93 Historical and Projected Water System Revenues, Expenses, Debt Service and Coverage 94 Oro ValleyWater Utility Schedule of Rates, Fees and Charges 95 Number of Meters Connected 100 Number of Connections by Type 101 History of Connections to the Water System 102 History of Building Permits 103 Schedule of the 15 Largest Water System Customers 104 Demographic Statistics 105 Property Value, Construction and Bank Deposits 107 Schedule of Top Employers Em to ers 108 -��yt���' -'��-'v\ Gi�'!w i:�_.•i�'s.�-moi - . INTRODUCTORY SECTION Get '„ THIS PAGE BLANK October 11, 2004 To the Honorable Mayor Loomis, Members of the Town Council, and Citizens of the Town of Oro Valley: • general-purpose localgovernments, publish within six months of the State law requires that all general perp close of each fiscalyear compete set of financial statements presented in conformity with U.S. a generally accepted principles accountingrind les (GAAP) and audited in accordance with generally Y accepted auditing standards b a firm of licensed certified public accountants. Pursuant to that herebyissue the Comprehensive Annual Financial Report of the Town of Oro requirement, we p Valley for the fiscal year ended June 30, 2004. This report consists of management's representations concerning the finances of the Town of Oro Valley. Consequently, management ement assumes full responsibility for the completeness and g ' ' of the information presented in this report. To provide a reasonable basis for reliability of all making these representations, management ement of the Town of Oro Valley has established a comprehensive internal control framework that is designed both to protect the Town's assets from loss, theft, or misuse and to compile sufficient reliable information for the preparation of the y Town of Oro Valley's financial statements in conformity with GAAP. Because the cost of internal controls should not outweigh their benefits, the Town of Oro Valley's comprehensive framework of internal controls has been designed to provide reasonable rather than absolute assurance ce that the financial statements will be free from material misstatement. As management, we assert that, to the best of our knowledge and belief, this financial report is complete and reliable in all material respects. y The Town of Oro Valley's financial statements have been audited by Cronstrom and Trbovich of licensed certified public accountants. The goal of the independent audit was to P. C., a firm provide reasonable assurance that the financial statements of the Town of Oro Valley for the fiscal year ended June 30, 2004, are free of material misstatement. The independent audit involved examining, on a test basis, evidence supporting the amounts and disclosures in the statements; assessingthe accounting principles used and significant estimates made by financial management; and evaluatingthe overall financial statement presentation. The independent auditor concluded, based upon the audit, that there was a reasonable basis for rendering an unqualified opinion that the Town of Oro Valley's financial statements for the fiscal year ended June 30, presented 2004, are fairly in conformity with GAAP. The independent auditor's report isp resented as the first component of the financial section of this report. 1 „ - 7-7._ GAAP requires that management provide a narrative introduction, overview, and analysis to g accompany the basic financial statements in the form of Management's Discussion and Analysis (MD&A). This letter of transmittal is designed to complement the MD&A and should be read in conjunction with it. The Town of Oro Valley's MD&A can be found immediately following the report of the independent auditors. Profile of the Government The Town of Oro was incorporated Valleyiorated in 1974. It is located in northeastern Pima County � and has a land area of 33.2 square miles. The Town's current population is 37,700. operates Town of Oro Valleyo erates under the Council-Manager form of government. PolicyPolicymakingg and legislative authority is vested in the Town Council, which consists of a Mayor and four Council Members. Council Members are elected to four-year staggered terms. The electthe citizens of Oro Valley Mayor. The Council, from among its members, selects the Vice- Mayor. The Town Council is responsible, among other things, for the adoption of local ordinances, budgetadoption,ado tion, the development of citizen advisory committees and the hiring of the Town MangManager Manager. The Mana is responsible for implementation of the policies of the Town Council • . The TownManager Mappoints all department heads except the Town Clerk, Chief of g pp Police, Town Engineer, Town Attorney and Magistrate. Oro Valleyprovides a full range of services including police protection; the The Town of construction and maintenance of streets and related infrastructure; the provision of water services; public transportation services; recreational activities, a public library and cultural general In addition to government activities, the governing body is financially accountable MunicipalProperty the Pro erty Corporation; therefore, this activity is included in the reporting entity. Additional information in regards to the Municipal Property Corporation can be found in Note 1 A in the notes to the financial statements. serves as the foundation for the Town of Oro Valley's financial planning and The annual budget control. All departments of the Town are required to submit requests for appropriation to the Town Manager in March of each year. The Town Manager uses these requests as the starting point for developing a evelo in proposed budget. The Town Manager then presents this proposed budget Council for review each year. The Council is required to hold public hearings on the to the proposed budget ud and to adopt a tentative budget by no later than the third Monday in July of each p year. The appropriated ro riated bud et is prepared by fund and department. The Town Manager, subject g to Town Councilapproval,a l, at any time transfer various unencumbered appropriation may balances or portions thereof between a department or activity. The adopted budget cannot be amended in any way without Town Council approval. The Town of Oro Valleymaintains extensive budgetary controls. The objective of these p controls is to ensure compliance with legal provisions embodied in the annual appropriated pp budget approved by the Town Council. g 2 Factors Affecting Financial Condition The information presented in the financial statements is perhaps best understood when it is from the broader perspective of the specific environment within which the Town of considered p p Oro Valley operates. Local economy The local economic outlook for the Town of Oro Valley in fiscal year 2003/04 continues to remain stable. Sales tax collections from construction, retail trade and hotel/motel lodging are the major industries which accounted for 83% of all sales tax receipts for fiscal year 2003/04. .As years in prior the Town relies heavily on construction sales taxes from residential construction activitywhich has declined in recent years. To this end the Town's Budget and Bond Committee was directed by the Town Council to recommend additional revenue sources for the General Fund. Based on a recommendation from the Town's Budget and Bond Committee, the Town increased the construction sales tax rate from 2% to 4% which became effective May 1, 2004. The Town will dedicate 75% of the 2% increase for streets and road maintenance and the remaining 25% will be used for general municipal purposes. Construction sales tax collections for fiscal year 2003/04 increased by $1,036K or 52% as compared to fiscal year 2002/03. In addition, single family residential building permits issued increased by as compared ared to last fiscal year. This increase may be attributed to a large p influx of construction activity related to the tax rate change. The Town anticipates that the increased construction volume will return to normal activity levels in fiscal year 2004/05. Sales tax collections from retail trade totaled $2,722K for fiscal year 2003/04. This is an increase of$ compared as com ared to the previous fiscal year. This increase is attributed to a full year includes retail sales collections from a newly annexed area south of Town limits which several retail businesses. gg The hotel/motel lodging industry makes up approximately 12.3% of the Town's sales tax base. Long-term financial planning The Town's Budget and Bond Committee continues to serve as a source for the Town Council in analyzing the Town's financial future. Financial projections on the Town's major operating funds such as the General fund, Highway Fund, Public Transportation Fund and Townwide Roadway g DevelopmentImpact Im act Fee Fund will be revised and analyzed on a continuous basis. Future recommendations will be brought forward by the Budget and Bond Committee to the Town Council for their review and action. 3 yjplgp' .p„ _: Cash management polices and practices The Town uses a system of consolidated cash g management. Cash from all funds is pooled in a central disbursement fund. Cash to be used for payment of current expenditures is maintained in a checking account; the balance of cash is maintained on deposit with the Arizona State Treasurer's Local Government Investment Pool. Cash in the Local Government Investment Pool (LGIP) is available upon 24 hours notice. The LGIP invests in U.S. Treasury Notes, U.S. Treasury Bills and federally guaranteed insurance contracts. The average interest rate for the fiscal year 2002/03 was 1.837% and 1.445% in fiscal year 2003/04. Investments held at LGIP earned $529,287 in interest revenue for the year ended June 30, 2004. LGIP accounts in the amount of$28,604,693 were established in December 2003 for the 2003 Municipal Property Corporation Senior Lien Water Project Revenue bonds. These funds are for the reclaimed water system improvement project. A debt service reserve fund was established in 1996 for the Municipal Property Corporation (MPC) municipal water system acquisition bonds. In 1999, MPC revenue bonds were issued for the construction of the community development building and for water system improvements and a reserve fund was also established. These reserve funds are maintained in trust accounts with Wells Fargo Bank. Funds on deposit in the trust accounts are invested solely in obligations that are issued or guaranteed by the U.S. Treasury, such as U.S. Treasury bills, bonds and notes ("U.S. TreasurySecurities"). Interest on investments held with the trustee earned $41,893 for fiscal year 2003/2004. Risk management The Town of Oro Valley participates in the Arizona Municipal Risk Retention Pool. Risk coverage includes general liability, errors and omissions, property and automobile insurance. Thep olicy insures up to $2,000,000 per incident occurrence plus any excess liability of up to a $10,000,000 limit per occurrence per year. Coverage is provided on a claims made basis. The Townp articipates in the Arizona Municipal Workers Compensation Pool for workers compensation insurance coverage. The Town of Oro Valley is self-insured for unemployment compensation. Unemployment reserves totaled $228,593 as of June 30, 2004 for the Town's 263 full-time, 18 part-time and 31 seasonal employees. The Town did not make an unemployment contribution in fiscal year 2003/2004. Pension benefits The Town of Oro Valley contributes to the Public Safety Personnel Retirement System (PSPRS), multiple-employer, a ent public employee retirement system that acts as a common investment g and administrative agent to provide retirement and death and disability benefits for all eligible commissioned police department personnel. All benefit provisions and other requirements are established by the state statutes. Employees were required to contribute 7.65 percent of their annual salary to PSPRS in FY 2003/04. The Town is required to contribute the remaining amounts necessary to fund the PSPRS, as determined by the actuarial basis specified by statute. The rate for FY 2003/04 was 10.12 percent of the annual covered payroll for PSPRS . 4 1,, policedispatchers Town of Oro Valley dis atchers contribute to the Arizona Correction Officers Retirement Plan (ACORP). The Correction Officers Retirement Plan is an agent multiple- employer which is administered in the same manner as the Public Safety Personnel Retirement required to contribute 8.50 percent while the Town contributed 3.85 System. Employees were req percent of their annual salary in FY 2003/04. All non-police and p employees certainart-time em loyees of the Town participate in a defined contribution 401 (a) administered the ICMA Retirement Corporation. All eligible employees pension plan by must participate inthe ate plan six months from the date they are hired. Contributions made by an employee vest immediatelyand contributions made by the Town vest after one year of service. An employee employment that leaves the em to ent of the Town is entitled to his/her contributions and the vested portion of the Town's contributions, plus interest earned. Each employee must contribute 5 percent of gross earnings. The Town must contribute 7 percent of gross earnings. The Town's last employer and employee contributions to the 401 (a) was August 31, 2003. On September 1, 2003, the Town Council approved the transfer of all 401 (a) assets held by employees to the Arizona State Retirement System (ASRS). The Arizona State Retirement System issharing, mu -em a cost lti loyer, public employee, tax qualified, defined benefit plan p (with the exception of the defined contributions portion). The ASRS Board is the governing body of the ASRS and is responsible for the administration and management of the ASRS and its Employees were required to contribute 5.2 percent for retirement and .5 percent for trust fund. ty long-term disability. The Town was required to contribute 5.2 percent for retirement and .5 percent for long-term disability. Additional information on the Town of Oro Valley's pension arrangements can be found in Note 4C pages 57 59. Awards and Acknowledgements The Government Finance Officers Association (GFOA) awarded a Certificate of Achievement for ExcellenceReporting in Financial Re ortin to the Town for its Comprehensive Annual Financial year for the ended June 30, 2003. In order to be awarded a Certificate of Achievement, the Town published an easilyreadable and efficiently organized comprehensive annual financial ort satisfied both U.S. generally accepted accounting principals and applicable report. The rep legal requirements. A Certificate of Achievement is valid for a period of one year only. We believe that our current Comprehensive Annual Financial Report continues to meet the Certificate of Achievement Program's requirements and we are submitting it to the GFOA to determine its eligibility for another certificate. 5 We would also like to extend our appreciation to the Mayor and Council for their leadership and aration of this Com rehensive Annual Financial Report was made possible by support. The prep p the dedicated work of the Finance Department staff. Respectfully submitted, Chuck Sweet Town Manager David L. Andrews Finance Director 6 TOWN OF ORO VALLEY,ARIZONA LIST OF PRINCIPAL OFFICIALS ELECTED OFFICIALS Mayor Mr.Paul Loomis Vice-Mayor Ms.Paula Abbott Council Member Mr. Kenneth Carter Council Member Ms. Conny Culver Council Member Ms.Helen Dankwerth Council Member Mr.Barry Gillaspie Council Member Mr. Terry Parish DEPARTMENT HEADS Town Manager Chuck Sweet Finance Director David L. Andrews Town Clerk KathrynE. Cuvelier Magistrate George Dunscomb Water Utility Director Alan Forrest Human Resources Director Jeff Grant Town Engineer Bill Jansen Chief of Police Daniel G. Sharp Acting Town Attorney Tobin Sidles Community Development Director H. Brent Sinclair 7 7joif.! .47.; .,:...,___, ..-.., ,,,„.• ,,.,•_,-_, 2...,...:„.. ,_,_ S _I .-... .„ ____, Org Chart 8 GFOA Certificate 9 . .77. 4,:aft THIS PAGE BLANK 10 _ , FINANCIAL SECTION 11 t' THIS PAGE BLANK 12 701�%'r.,jam.\ 77-s�.y�r v INDEPENDENT AUDITOR'S REPORT The Honorable Mayor and the Town Council of the Town of Oro Valley,Arizona We have audited the accompanying financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the Town of Oro Valley, Arizona (Town), as of and for the year ended June 30, 2004, as listed in the table of contents. These financial statements are the responsibility of the Town's management. Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the Town of Oro Valley, Arizona, as of June 30, 2004, and the respective changes in financial position and cash flows, where applicable, thereof and the respective budgetary comparison for the General Fund, HURF Fund and Public Transportation Fund for the year then ended in conformity with accounting principles generally accepted in the United States of America. The management's discussion and analysis on pages 15 - 25 and the Public Safety Personnel Retirement System Schedule of Funding Progress on page 62 are not a required part of the basic financial statements but are supplementary information required by the Governmental Accounting Standards Board. We have applied certain limited procedures, which consisted principally of inquiries of management regarding the methods of measurement and presentation of the required supplementary information. However, we did not audit the information and express no opinion on it. 13 1 "" •` ;lis" � � ... • 'mac: the financial state • ose of formingan opinion on • the �� �� Our audit was conducted for perpF ,� : �� ^�� _•��.;' �-. • Town'sstatements. The introductorysection com• = .' ___�_ collectively comprise the basic financial and individual fund financial statements and schedules and statistical section are presented for purposes of additional analysis and are not a required part of the basic financial statements. The combiningand individual fund financial statements and schedules have been subjected to the auditing proceduresapplied a lied in the audit of the basic financial statements and, in our opinion, are stated in all material resects in relation to the basic financial statements taken as a whole. fairly p The introductoryand statistical sections have not been subjected to the auditing procedures applied in the audit of the basic financial statements and, accordingly, we express no opinion on them. Cronstrom & Trbovich, P.C. October 11, 2004 14 Uti Management's Discussion and Analysis ; ..` As management of the Town of Oro Valley(Town), we offer readers of the Town of Oro Valley's financial statements this narrative overview and analysis of the financial activities of the Town of Oro Valley for the fiscal year ended June 30, 2004. We encourage readers to consider the informationp resented here in conjunction with additional information that we have furnished in our letter of transmittal. Financial Highlights • The assets of the Town of Oro Valley for FY 2003/04 exceeded liabilities by $75,439,724 (net assets). Of this amount, $52,356,493 (unrestricted net assets) may be used to meet the government's ongoing obligations to citizens and creditors. • The government's total net assets increased by$20,535,972. • As of June 30, 2004, the Town of Oro Valley's governmental funds reported combined ending fund balances of $23,010,404 which is an increase of $6,849,142 or 42%in comparison to last fiscal year. • At the end of the current fiscal year, unreserved fund balance for the General Fund was $9,377,367 or 53% of total General Fund expenditures. The unreserved fund balance included $207,713 designated for long-term compensated absences and $195,312 designated for unemployment. The remaining $8,974,342 was undesignated. • Total debt for the Town of Oro Valley at June 30, 2004 was $82,685,142. Compared to last fiscal year this was a net increase of$27,667,182 or 50%. A portion e of the increase was due to the issuance of bonds for water improvements and the partial refunding of existing bonds in the amounts of $31,750,000 and $15,750,000, respectively. Overview of the Financial Statements. This discussion and analysis are intended to serve as an introduction to the Town of Oro Valley's basic financial statements. The Town of Oro Valley's basic financial statements comprise three components: 1) government-wide financial statements, 2) fund financial statements, and 3) notes to the financial statements. This report also contains other supplementary information in addition tion to the basic financial statements themselves. Government-wide financial statements. The government-wide financial statements are designed to provide readers with a broad overview of the Town of Oro Valley's finances, in a manner similar to a private-sector business. 15 The statement of net assets presents information on all of the Town of Oro Valley's liabilities, with the difference between assets and liabilities reported as net assets. Over time, increases or decreases in net assets may serve as a useful indicator of whether the financial position of the Town of Oro Valley is improving or declining. of activitiespresents information about how the government's net assets changed The statement during the most recent fiscal year. Changes in net assets are reported when the underlying event to the change occurs, regardless of the timing of related cash flows. Thus, certain giving rise tog revenues andexpenses reported in this statement will result in cash flows in future fiscal periods (e.g., uncollected court fines and earned but unused vacation leave). financial statements distinguish functions of the Town of Oro Valley that� are principally supportedby local taxes and intergovernmental revenues (governmental activities) from other functions that are intended to recover all or a significant portion of their costs through feesand charges (business-type activities). The governmental activities of the Town of Oro user g includegeneralgovernment, public safety, highways and streets and culture and Valley recreation. The business-typeinclude activities of the Town of Oro Valley the Oro Valley Water Utility and Stormwater Utility. The government-wide financial statements include not only the Town of Oro Valley itself primary government), but also a legally separate Town of Oro Valley Municipal (known as . Corporation (MPC). The Town has a contractual obligation for the repayment of the Property rp Municipal Property yCororation's Municipal Facilities Revenue Bonds, Series es 1996, 1999, 2001 and 2003. These activities are accounted for in the Oro Valley Water Utility enterprise fund. Theg over ment-wide financial statements can be found on pages 28 - 29 of this report. Fund financial statements A fund is a grouping of related accounts that is used to maintain Fun control over resources that have been segregated for specific activities or objectives. The Town of y, Oro Valle like other state and local governments, uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. All of the funds of the Town of p Oro Valleyare divided into two categories: governmental funds and proprietary funds. Governmental funds Governmental funds are used to account for essentially the same functions reported asgovernmental activities in the government-wide financial statements. However, unlike the government-wide financial statements, governmental fund financial statements focus on near-term inflows and outflows of spendable resources, as well as on balances of spendable resources available at the end of the fiscal year. Such information may be useful in evaluating a government's near-term financing requirements. Because the focus of governmental funds is narrower than that of the government-wide financial statements, it is useful to compare the information presented for governmental funds with similar s � p informationp resented for governmental activities in the government-wide financial statements. By doing so readers may better understand the long-term impact of the government's near-term g financing decisions. Both the governmental fund balance sheet and the governmental fund fin g statement of revenues, expenditures, and changes in fund balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities. 16 governmental funds. Information i ` '' F T>�e�• i::-�-.; ,.: ten individual The Town of Oro Valley maintains in `-�' separately in the governmental fund balance sheet and the governmental fund statemen o �- revenues, expenditures, and changes in fund balances for the General Fund, Highway User Revenue Fund (HURF), Public Transportation Fund and Townwide Roadway Development Impact Fees Fund which are considered to be major funds. Data from the other six governmental funds are combined into a single, aggregated presentation. Individual fund data for each of these governmental nonmajor funds is provided in the form of combining statements elsewhere in this report. The Town of Oro Valley adopts an annual appropriated budget for its General Fund, certain Special Revenue Funds, the Debt Service Fund and Capital Project Funds. The level of budgetary control (i.e., the level at which expenditures cannot legally exceed the appropriated g �'y amount is the departmental level for the General Fund and in total by fund for the other funds. The Town also maintains an encumbrance accounting system as one method of maintaining budgetary control. Encumbered amounts lapse at year end. However, outstanding encumbrances g �'Y generally are . reappropriated as part of the subsequent year's budget. • Budget-to-actual pp are comparisons provided in this report for each individual governmental fund for which an p appropriated ro riated annual budget has been adopted. For the General Fund and Special Revenue Funds as major reported funds (HURF and the Public Transportation Funds), this comparison is p presentedon pages a es 34 - 36 as part of the basic financial statements for the governmental funds. Budgetary comparisons for all Non-major Governmental Funds with appropriated annual budgets g �'Y arep resented in the Combining and Individual Fund Statements and Schedules of this report on pages 68 - 71. As demonstrated by the statements and schedules included in the financial section of this report, the Town of Oro Valley continues to meet its responsibility for sound financial management. The basic governmental fund financial statements can be found on pages 30 - 33 of this report. Proprietary funds The Town of Oro Valleymaintains two different types of proprietary funds. Enterprise funds are used to report the same functions presented as business-type activities in the government-wide financial statements. The Town of Oro Valley uses enterprise funds to account for its Oro Valley Water Utility and Stormwater Utility. Proprietary funds provide the same type of information as the government-wide financial statements, only in more detail. The proprietary fund financial statements provide separate information for the Oro Valley Water Utility and the Stormwater Utility. The basicp roprietary fund financial statements can be found on pages 37 - 39 of this report. Notes to the basic financial statements The notes provide additional information that is essential to a full understanding of the data provided in the government-wide and fund financial statements. The notes to the financial statements can be found on pages 41 - 59 of this report. 17 174rt}, y ht_ • ' ' the basic financial statements and accompanym���� } �- �-�:"--- ` •-' r. In addition to - y information !�•' �•'=` .r: ;' �• Other report also presents certain required supplementary information concerning the Town of-Oro -- ' in fundingthe Arizona Public Safety Retirement System available to Valleys progress commissioned police officers and the Correction Officers Retirement Plan for police dispatchers. Required supplementary information can be found on page 62 of this report. pp ary The combining statements referred to earlier in connection with nonmajor governmental funds are presented immediately following the required supplementary information. Combining and individual fund statements and schedules can be found on pages 66 - 71 of this report. Government-wide Financial Analysis As noted earlier, over time net assets mayserve as useful indicators of a government's financial position. In the case of the Town of Oro Valley, assets exceeded liabilities by $75,439,724 at the close of fiscal year June 30, 2004. of Oro Valley's net assets (69 percent) reflects its unrestricted net far the lar est of the Town y By g assets and its investmentscapital in assets (e.g., land, buildings, machinery and equipment), less outstanding debt used to acquire those assets reflect 21 percent of the Town's total net any related outs g q assets. The Town uses of Oro Valleycapital assets to provide services to citizens; consequently, these assets are not available for future spending. Although the Town of Oro Valley's investment in capital assets is reported net of related debt, the resources needed to repay this debt must be provided from other sources, since the capital assets themselves cannot be used to liquidate these liabilities. Town of Oro Valley's Net Assets Governmental Activities Business-type Activities Total 2004 2003 2004 2003 2004 2003 Current and other assets $ 27,841,510 $ 19,287,825 $ 39,326,556 $ 16,101,546 $ 67,168,066 $ 35,389,371 Capital assets 47.606.414 33.668.131 50.711.438 46.282.997 98.317.852 79.951.128 Total assets 75.447,924 52.955.956 90.037.994 62.384.543 165.485.918 115.340.499 Long-term liabilities outstanding 17,808,290 13,187,933 65,685,546 42,585,433 83,493,836 55,773,366 Other liabilities 3.886.607 2.447.747 2.665.751 2.215.634 6.552.358 4.663.381 Total liabilities 21.694.897 15.635.680 68.351.297 44.801.067 90.046.194 60.436.747 Net assets: Invested in capital assets, 933 168 net of related debt 30,546,282 21,188,015 (14,913,572) 3,745,153 15,632,710 24,933,168 Restricted 3,958,033 2,303,550 3,492,488 3,575,789 7,450,521 5,879,339 Unrestricted 19.248.712 13.828.711 33.107.781 10.262.534 52.356.493 24.091.245 Total net assets $ 53.753.027 $ 37.320.276 $ 21.686.697 $ 17.583.476 $ 75.439.724 $ 54.903.752 An additionalp ortion of the Town of Oro Valley's net assets (10 percent) represents resources that subject subect to external restrictions. The remaining balance of unrestricted net assets ($52,356,493) maybe used to meet the government's ongoing obligations to citizens and creditors. 18 year, the Town of Oro Valley At the end of the current fiscal had positive net assets, both for the government as a whole, as well as for its separate governmental and business-type activities. current fiscalyear, the Town's net assets increased by $16,432,751 in governmental During the activities and $4,103,221 in business-type activities for a total of$20,535,972. activities increased primarily in the highway and streets function. $13M in state Governmental grants was received for street and road improvement projects. Currently there is $14M in street improvementprojects ects in construction which are scheduled for completion in fiscal year 2004/05. � In addition, a $5M loan from the Arizona Department of Transportation was received for the La Canada Drive Extension Project. Business-type activities in the Oro Valley Water Utility fund increased by $4K. Better than anticipated d revenues from water sales, charges for services and water connection fees accounted for the increase. Governmental and Business-type Activities. Governmental activities increased the Town of Oro Valley's by alle 's net assets $16,432,751 which accounts for 80% of the total growth in the net assets of the Town of Oro Valley. Key elements of this increase are shown as follows: ♦ Operating grants and contributions increased by $12M or 784% over last fiscal p g Year. State grants of$8M and Pima County bond proceeds of$4M were received for various road improvement reports. • Sales tax revenues increased by $2M as compared to last fiscal year. Construction ($1M) and retail trade ($63 7K) were the industries that accounted for the increase. • Total expenditures increased by $1.2 M or 6%. This increase was in line with inflation and growth in maintaining current service levels. On May 1, 2004 the sales tax on construction projects increased from 2%to 4%. The Town will dedicate 75% of the 2% increase to construction activities for streets and road maintenance and the remaining25% will be used for general municipal purposes. The $1M increase over last year ear in construction related activity is primarily attributed to the anticipated tax rate fiscal change. Business-type e activities increased the Town of Oro Valley's net assets by $4,103,221, which accounted for 20% of the total growth in the Town's net assets. Key elements of this increas are as follows: ♦ Revenues increased by $1,564K as compared to last fiscal year. A significant portion of this increase came from water sales ($494K), groundwater presevation fees ($402K) and water connection fees ($668). • Total expenses for the Oro Valley Water Utility were $8,957,988 which is a slight decrease from last fiscal year. 19 .- ate.:�. r' � i„,'15_ ,, --,,. ;-.-,.1:, .. .` . !I.I. Town of Oro Valley's Change in Net Assets Governmental Activities Business-type Activities Total 2004 2003 2004 2003 2004 2003 Revenues: Program Revenues Fees,fines and charges for services $ 4,072,567 $ 3,112,589 $11,917,546 $10,380,795 $15,990,113 $13,493,384 Operating grants and contributions 3,675,674 3,512,097 - 297,500 3,675,674 3,809,597 Capital grants and contributions 13,437,638 1,520,898 840,096 1,856,151 14,277,734 3,377,049 General Revenues Taxes Sales taxes 7,924,855 5,876,309 - - 7,924,855 5,876,309 Franchise taxes 371,697 341,489 - - 371,697 341,489 Impact Fees 1,189,848 885,371 - - 1,189,848 885,371 State revenue sharing 2,845,866 3,161,005 - - 2,845,866 3,161,005 State sales tax revenue sharing 2,686,614 2,322,772 - - 2,686,614 2,322,772 Auto lieu tax revenue sharing 1,374,464 1,307,305 - - 1,374,464 1,307,305 Investment earnings(loss) 281,518 (244,770) 285,118 (50,977) 566,636 (295,747) Loss on sale of capital assets - (30.525) - - - (30.525) Total Revenues 37.860.741 21.764.540 13.042.760 12.483.469 50.903.501 34.248.009 Expenses: General government 5,971,319 5,592,498 - - 5,971,319 5,592,498 Public safety 9,520,219 9,013,391 - - 9,520,219 9,013,391 Highways and streets 2,850,172 2,613,170 - - 2,850,172 2,613,170 Culture and recreation 2,566,173 2,352,445 - - 2,566,173 2,352,445 Interest on long-term debt 456,107 564,798 - - 456,107 564,798 Water - - 8,957,988 9,025,235 8,957,988 9,025,235 Stormwater drainage - - 45.551 104.948 45.551 104.948 Total Expenses 21.363.990 20.136.302 9.003.539 9.130.183 30.367.529 29.266.485 Increase in net assets before 16,496,751 1,628,238 4,039,221 3,353,286 20,535,972 4,981,524 transfers Transfers (64.000) - 64.000 - - - Increase in net assets 16,432,751 1,628,238 4,103,221 3,353,286 20,535,972 4,981,524 Net assets-beginning of year _37.320.276 35.692.038 17.583.476 14.230.190 54.903.752 49.922.228 Net assets-end of year $53.753.027 $37.320.276 $21.686.697 $17.583.476 $75.439.724 $54.903.752 Financial Analysis of the Govenment's Funds As noted earlier, the Town of Oro Valley uses fund accounting to ensure and demonstrate compliance with finance-relate legal requirments. Governmenal Funds. The focus of the Town of Oro Valley's governmental funds is to provide information on near-term inflows, outflows, and balances of spendable resorces. Such information is useful in assessing the Town of Oro Valley's financing requirements. In particular, unreserved fund balance may serve as a useful measure of a government's net resources available for spending at the end of the fiscal year. 20 11/17/04 Minutes,Council Regular Session 5 Mr. Andrews further reviewed the Highway Fund, Public Transportation Fund, Townwide Roadway DevelopmentImpact Im act Fees and the Water Utility. He further d et and Bond Committee recommended forwarding the report to th reported that the Budget Town Council for their approval. In response to a question from Council Member Dankwerth regarding the 18.6% increase in sales taxes from restaurants and bars, Mr. Andrews explained that they do not specifically track the amount of revenues from Annexation Area"B"• However, several months back, they reviewed the sales tax collections from those businesses and he believes that annexation of Area "B" increased the Town's local sales tax collections by approximately 35%. ``%�' MOTION: Council Member Dankwerth MOVED to ACCEPTudget and Bond ;:..> > . • Committee Report for the quarter ended September 30, 2004 -- - ... i Mem er rt p �y;�. r ,;,, the motion. Motion carried, 6—0. SECONDED /F Item 10 was moved forward on the agenda.) A� -- RESOLUTION11.4 A',;, NO. (R)04-121 TO TEMP( ``�,w R ,;°:>�Y SUSPEND THE 10. , , T INCENTIVE PORTIONS OF THEY- ' 1OMIC DEVELOPMENT ECONOMIC GUIDELINES �TDING A ' PLETE REVIEW OF INCENTIVE POLICY. .,.. � �. LL EFFECTIVENESS , h,1,7'N FIT T 43!; `HE TOWN OF ORO THE OVERALL Y.. sy„�,• VALLEY af�, ibn .;vG iy ' yr%✓,5, i, ,., "°` •r Jeff!",:,-,:” reported that in August 1999, the Town Economic Development Admi is , a Lodi : I 'dust. Incent Policy and Guidelines• In October 2001, Council approvedg •�,. sem,,�:.: e do i� .' t Incentive Policy and Guide Ines. the Council approved ti-,K;,", onoi 'gip He ��'��� ' `�{ e �� shed, the Council has the total prerogative explained that the way t 1 pl,' y whether theya t toa % out or even consider an Economic Development as toM. y ,. /� � f0.: s4also asized that each consideration is independent and Incentive at al �� :.�� _�.. .: If, :� id, er acs '4 s. He stated that the Policy was set up so that separate fro . e � and a ' � th ' e�o f incenti p the Town could induce retail development an resorts through ,� primarily to eti- e o the community quicker than expected. iding• Discussion follower :s, ➢ Careful deliberation was given towards bringing the policy into effect. It is at the discretion of the Council. The Town never knows what is "coming around the corner" and this Policyis a tool for the council to use if it so chooses. (Mr. Weir in response to C. M. Gillaspie.) As of date, the Town has not been formerly notified of any developments actively ➢ looking for an Economic Development Agreement (EDA.) (Could be in the form of new lodging.) Recommend that the Town continues to work with the high tech" sector,gin medical services, etc. (Mr. Weir in response to C. M. Gillaspie.) Possible to create a Resolution or something in this Policy, that would allow any ➢ future EDA to be referred to the citizens. (V.M. Abbott) (Council could adopt a 11/17/04 Minutes,Council Regular Session 6 clause withinPolicystating the that they would like this to be a referable matter.) (Civil Attorney Joe Andrews.) ➢ Courtg past rulings on Town's EDAs. (Mr. Andrews in response to V.M. Abbott.) Items #15 (Council has final authority) and #16 of Policy (each consideration is p p ➢ se arate and independent.) No Council decisions would be made lightly on p q EDAs. Have requests s ecifically come to the Council, not done by any other staff member. (C.M. Dankwerth) ➢ Council responsible for all EDAs and no deals are done with staff and developers. (Mayor Loomis) ➢ Possible that 1-2 EDAs may be coming forward to the Council. (V.M Abbott) Mayor Loomis opened the floor for public comment. y p .dr . r���;= . e entirelyat the Bill Adler, 10720 N. Eagle Eye Place, commented that the E :- "zex • .ped i';':"":04:s- problem with Council's discretion but he would prefer that it not be. He7 :; p the EDAs is the adopted policies and the difficulty the ; l cil's ha `" �, deciding policies the are met or not• He stated that i 4g/ e agreements " `ply with all thepolicies, he would suspect that the EDAs woul �'_ obab , ,, -- ' ; ot be chara tenzed as � ' - y, "give-aways" and would probably be supported by t £:c s. He stated that the lack of consistency and the lack of compliance with the po , : was the issue and he 5 the Econom Ievelopment Policy, the recommended that instead of a morator�u�} ,,, • '%�� E`�~event m>� �:.�y���"eet all adopted policies. Council pass a clause that required that a '� ,�.;,,. ,y,.�;ry :4'S"%/"� ..'cif R - , de l a Vera,/6 �.:Yi stat ed��`"at the Council should not fear a Chet Oldakowski, 11706 N Via �,,� ,,,.. J�JF/LI ry ` ... freeze on the E DAs• He stat 'the fears:s� at developers may go elsewhere and that y ;;�f���� �` r ' promote growth in Oro Valley. He the financial incentives ar-: trio A;•ecessa�n:no ted that the"StopOre: ;a e Gi ¶aw.a s itical Action Committee has had stated 'N/F'�'F� N G S:J discussions with local real ;�rs,g ,th y�s that they have a different set of criteria when evaluatingtheFbusiness:;;yy-ntial of a project. He stated that if the economic analysis is pos1:t;'eRY t . `; !e re' ; will come. �sF g e stated that he endorses Mr• Adler's and most of Mr. Art Segal, � '�• N. Blghc� r 'utt , wski's co:` ents. commented that it all comes down to what you believe: Mr. Oldako 3 a /: x4%5 • ' J r�ZN`y 7 y r✓amu,�F.. ' developer's Weirs comment ;o: o:u i" Member Carters comment about expecting a passsomething approval of an ED.Ar ;" : c an item is "on the books." He stated that the Council needs pp totha s such items a legislative act so that the citizens can have their say. JerryHo 3380 W. Westfal Drive, representing the Northern Pima County Chamber of y, . Commerce, stated that they were opposed to a moratorium on the Economic Incentive Policy and Guidelines. He stated that it was not necessary as the Council has the ultimate y power for approval. He stated that a moratorium would send the wrong message to the development community. Mr. Hoy also commented that if the Town does not have the p y retail sales tax revenues coming in, then there are only two options: cut services or imposeproperty pa tax. He stated that the Town is a living organism and if the Town is not looking at growth, then it is in the process of dying. 11/17/04 Minutes,Council Regular Session 7 Jeff Jones, 569 W Sun view Drive, stated that increased tax revenues were going to be very much needed in the Town to continue to provide the increasing need for services and infrastructure. The only way to get the needed monies is from sales tax revenues or a tax which no one wants. He questioned why the Council would want to remove property a "tool from their toolbox"which may be needed in the future. He stated that the current Economic Development Policy does not require the Council to approve any agreement and each one stands on its own. He stated that the Council can send a message to the developers that theywillg consider EDAs for now through their statements and p communications through the Town staff. He urged the Council to leave the "tool"in place for future use, if needed. N. Wayfarerexplained that he was one •;t'" e Fran LaSala, 12530N Way,y, council members that voted in favor of the Economic Development Policy but the .5" ncil never �f `':� this policy, this anticipated some of the ramifications. He stated that the To yee.4,�, rp Y, tool. He stated that it comes down to trust and VA:en t ncil's part and could u�"�6. er something the citizens' part. He stated that he felt that the Town st ,. ,p .,... r, that would allow thepolicy to stay in place but also a`' `'1 the ability fore., hrendum. •�r _• Dankwerth MOVED D ' ;fi.:,. staff(under Mr. Sweet's MOTION: Council Member ItOr direction) to immediately research all economic ince rograms currently implemented byArizona towns and citieran. changes mae thereto and the measurable the Town's bottom line with t `4 r� t ` •e subs -d to the Council no later effect on -o� r4N than January 17, 2005. That a Study Session bey'h s hy;usive of Council, staff, and Economic Development Committee mem• -$ 1.,%„,:0" nsi s what changes, if any, might be position o t conoi - c, : evelopment Incentive Policy Guidelines. folmade to the existing , ,& :y Specific reference to be gi `, tto then, urate o form ance and percentages of any proposed �,, incentive. Th-*ray Ses:ty'r ,w ill eld no later than February 19, 2005. Furthermore, any propo ro o "e• an s ,e pre ted to the public for discussion and commentaryno later than vr„,-;19,. 2005. That Council considers enactment of any �,x,, ' changes in the .�,r»a rnJ' ` everim n.en_t.Incentive Policy Guidelines no later than April 6; 2005 so tha changes,• ht *onsidered as appropriate in the implementation of �,r the 2005/21ud et. ,c' "til Member Gillaspie SECONDED the motion. NL'%N g �� C ryj y i DISCUSSION. : :yy`i' uc�' f. /ember Dankwerth stated that she also believed that Council ,;.:: ,. : could consider askirt .gl counsel to prepare information for the Council considering the advisability of changes so that referendum might be inclusive as part of the package. She stated that with the timeline as set out, she felt that it would put them on the path to resolving the issue while keeping the current policy intact for the time being. AMENDMENT TO THE MOTION: Council Member Carter MOVED to AMEND the motion toace a toplace temporary freeze on Exhibit "A" of the Economic Development p Incentive PolicyGuidelines. Vice Mayor Abbott SECONDED the motion. (Council Member Dankwerth did not accept the amendment as a friendly amendment. She explained that she made it a tight time frame which forces them to come up with an equitable solution. She stated that she felt the freeze was not necessary for the 4 months and as discussed, the Town would like to see more bio-tech companies come in and she Council 11/17/04 Minutes, Regular Session 8 would not want to have the Council's hands tied should such companies come forward and request some sort of incentive.) DISCUSSION: Council Member Parish stated that he was going to oppose both motions as he felt they would be "cuttingtheir own throats." He stated that he knows that many people supported him in the election because of his stance on some of the past EDAs and Town could have gotten a better deal. He stated that he felt that we he still feels that the To n • � • tax if we take away the Councils ability to have this would be on the road to a property , extra"tool" to possibly influence a business to cross into the Town's limits. He agreed that the Town should policy a adopt t olic that would require the Council to follow the guidelines that the Council sets. • a business comes in, not::: g would stop the Council Member Carter stated that when 'n a business with something like a water l ; rstall or a roadway. Council from helping � ,��-� � ;. n:y��+�� �����:.: ch help. He stated that the freeze would not stop the Council from der i s He • � tated. that ��'' -• incentive s 1 and 7 of the PolicyGuidelines ani-; �y. -• reviewed provision apt���� �. �� ..::,.; y: `���� `�f�that Home o i :' wed. He also sty: ,i4 50 o should never been a value being no more than /) Oro ValleyN:l:. without suc: :�� - ,�enti ��nd he felt i thers would • Depot and Target came to � �4j too t . ! • -. �y ::: tt regard �:��F�whether a Town Policy In response to a question from Vice Mayer A�bbo g �N. rry • .�ry��` � ° ° �� Andrews stated that he did needed to be in place to offer an incenti\ ;,�4 Attworney not think a policy was necessary,but wh: r�" � -� �:...:.�.s offered would have to be in�cen i y:. included in a contract. s° ' .]ace then the "sky is the limit."„ o olic” �x Mayor Loomis stated that � �,�ere i ,, ' p �,f,,, would 49pe a ser o criteria '. "which the businesses are judged. There stated that there �� %�y . � . `ot in place. He stated that the policy sets would not be a starting ©i fr.a •oli .. out how the Town wants e the issues, sets limits and helps decide what is fair and reasonable. x" ' *;'% • • / ',�f�� �'� atCouncil Member from "going amuck"is Vice Ma .r .•ott stated-t: what keeps a g g "'1 t if inc-";/Ives were offered, the checks and balances would be the fear fear. She stated::;h� ..::. f"fM$'�"% ected ifyou give away too much. If you do have a policy in that you wouldi�og14,14.7e /a� to freeze the policywith the place, it needs to bey e .le. She stated that she would like offering ncentives to high-tech industries that have high paying jobs. She exception of offe g g questioned how the Town could support the businesses needed and also stated that we do of retail space as outlined in the policy. She stated that there not yet have an inventory p are no checks and balances nces and no accountability for performance based guidelines. Council Member Gillaspie CALL FOR THE QUESTION: MOVED for the Call for the Question and Council Member Dankwerth SECONDED the motion. The Call for the • -- with Vice Mayor Abbott and Council Member Carter opposed. Question carried, 4 2 y MOTION ON THE AMENDMENT, failed 2 —4 with Mayor Loomis and Council Members Dankwerth, Gillaspie and Parish opposed. • 11/17/04 Minutes,Council Regular Session 9 DISCUSSION: Council Member Dankwerth commented that in response to comments made by Vice Mayor Abbott, she was onlyconcerned with doing the best possible job y she could do now during this four-year term. She was not worried about making the right or wrong decisions so she would be re-elected. Council Member Gillaspie ie commented that this was a troubling issue and he was also • confused by it. He stated that no matter what they do, it is ultimately in the Council's hands. He stated that there were important reasons why guidelines were in place from a lperspective in terms of offering businesses something to look at regional and nationa when they want to come into town. He stated that he has faith that the Council would make the process of changing policiesgthe transparent, open and protective of the public's ' interests. He stated that any council has the authority to enter into `�� ��y'�" the following eements at any time even without Guidelines. To protect the public's interest he pro `. amendment to Council Member Dankwerth's orig .;; , original motto � , tt it : Council Member, laspie MCS- :..;-'11! to AMEND AMENDMENT TO THE MOTION � tin that an,.;�� Onomic Deve]o�` :�t Agreement the motion byadding guideline#17, stating g " f • :,.4�:..:, d � v,-� the pub c." Vice approved by the Town of Oro Valley be subject t. ;00 eren �F r y pp ,h SECONDED Abbott the motion. `�`„ Mayor DISCUSSION: Mayor Loomis stated thate was goin m •.ose the amendment to the • Ue;s>: 00*, it end •taking away the"carrot" stating that any iss ' motion because by y, , • incentive, t in t��"��t so��et �!''1-•one in a timely fashion. He int trying to provide an rY g �,y f � �. s v� �n the next election will be? also questioned when an item is referred v 1 ,T Council Member Gillaspi-4a teed tha, a strict eline has been established and he is not aware of any pending E�, �, �f Y� F sward. e stated that the whole point was to get come� � H the Economic Developm of back b 'ere the Council and the citizens. e"n�r x .y • , �'5" �` '-,;,.,supported the amendment in that making it referable is Vice Mayor Abl�iof�- to � tha .;, • .��5 ' �`{ ` ��e public. She stated that her goal was to implement making the ��ci] accouhble� �.. /'y.a :v ferab and also allow the Town the ability to recruit bio-tech something t •�,xr�:as re ,,.. industries ai ' -•ayin T,f:;:Y . • N/, Loomis coni ":e ted that the Council Members are all responsible to the public Mayor ..... s.. and subject topublic 'Mutiny. He stated that it is as easy to recall a council member as it is to refer a decision. In response to a question from Council Member Dankwerth, Council Member Gillaspie explained that he would like to have Guideline#17 kept in the motion but he would assume that itsubject still be to discussions during the next four months during the policy evaluation. Council Member Parish stated that whenever a Political Action Committee (PAC) bring process an EDA, theythe to a halt regardless of what the majority of the Town wants to do. Even if the PAC loses in Court or lost in the referendum process, it 11/17/04 Minutes,Council Regular Session 10 can have the effect of negating the EDA and costing the Town money during the process that if every even losing the business. He stated item was referable, then you might as well just throw out the policy. Vice Mayor Abbott stated that the reason we need a check and balance for this policy is y giving that we are ivin away millions of dollars of sales tax revenues that are needed for the sustainability of the Town. ' —3 with Mayor Loomis and Council AMENDMENT TO THE MOTION failed, 3 y Members Dankwerth and Parish opposed. MOTION: Council Membea ,farish requested that AMENDMENT TO THE ORIGINAL � . : • time line bepushed back 1 month due to the :, : 'says. Council the original motion ���- Council Member Gillaspie agreed t•:c - the original Member D ank w erth and C o 4,4 F 4 motion's dates to read: 5,4p, • �`��•m lement-o4�� Arizona Nesearch all economic incentive programs current, m p 'f� s Town's and the "=.a`arable effect • .; and cities, anychanges made thereto, ?�--- towns ' ' %��ru a 17, ' Ancil Wer than ry line with that report to be submitted to thepo bottom p �;���� ' inclusive of� -�`�,�, �� �` , and Economic 2005. That a Study Session be held , ,w.� • members to consider what cyn..es, if any, might be made to• Development Committee �;,;t,.. ,�,,. Economic De, elo:: .ment Incen.t;.-,:Policy Guidelines. Specific the existing position of the ?���5 ,{, �,� duration e 'o :n an beaand per ges of any proposed reference to be given to the , p .�v�?��„����, �,� ,. • will be hel��� � lat:e�tha: �Y �rch 19, 2005. Furthermore, incentive. The Study Session . . ��. .,^�r discussion and commentary no later anyproposed changes be presented to the e • p p• "'' e�'enactment of any changes in the Economic than A ri119, 2005. That ,, ,:vonsid }'Gu #1nes nog° 'r than May 6, . Develo ment Incentive Pol.�: Development 0;7, Y44 ! p DISCUSSION: Vice t'6:01#:tiled that the Policy Guidelines were misused. "`� >`:`.take into consideration the 1200 & 1300 signatures that She stated that Co�nc need,,�:... ,, f Fib iN 'J �'�.0�y • `° .�y; e •ash.. . :�►s. She stated that the freeze would be insurance to were submitt ed �i�as�.. • • ' iii c' wvou 'eat move forward before a complete review was one. the citizens thf, a, e �''`y"� ��'h ,, enacted needs to be referable. She also s ate; hat any • sry„ r ' Mayor Loomis co„:"/ at allpolicies olicies when enacted are referable. He stated that the .e �-;,� � ✓ have been referred was when it was first enacted. He also time thatpoli c�� �'� d this ��• ' sales tax. He stated that we don't have the sales tax if stated that we are not wing away the companies don't come into the Town. MOTION AS AMENDED CARRIED, 5 — 1, with Mayor Loomis opposed. g the meetin at 9:08 p.m. The meeting resumed at 9:18 p.m. Mayor Loomis recessed HEARING—ANNEXATION ORDINANCE NO. (0)04-43 6. PUBLIC TOWN THE CORPORATE EXTENDING AND INCREASING LIMITS OF THE OF ORO VALLEY, PIMA COUNTY, STATE OF ARIZONA, PURSUANT TO THE PROVISIONS TS OF TITLE 9, CHAPTER 4, ARTICLE 7, ARIZONA TOWN OF ORO VALLEY COUNCIL COMMUNICATION MEETING DATE: December 1, 2004 TO: HONORABLE MAYOR & COUNCIL FROM: William A. Jansen, P.E., Town Engineer SUBJECT: The Glover Road Pedestrian Path. SUMMARY: , the Town Engineer briefed the Town Council meeting,At the November 3, 2004 Town g relatingto Glover Road and the Wilson School and Council on pedestrian safety issues of a bike/pedestrian path on Glover Road east of provided alternatives for the developmentp . Council to bringthis issue forward at the La Cholla Blvd. Staff was directed by the December 1, 2004 Town Council meeting for action consideration. The Department of Public Works recommends 3 options for Council consideration. These • described in Attachment 1 to this communication. This options and related costs are for as the number 1 priority in the Public Works CIP request project has been submitted order not to disrupt the existing school related bike/pedestrian the FY 2005/06 budget. In p , construction activityneeds to be done during the school s activity on Glover Road, all summer break period. FISCAL IMPACT: Funding for this project will come from the Town's Highway Fund. ATTACHMENT: 1. Option 1, 2 and 3 for the Glover Road Path. SUGGESTED MOTION: 1. I move to support the inclusion of the Glover Road bike/pedestrian path in the FY 2005/06 Town Wide CIP budget. OR staff to proceed with the design and construction of Option so as 2. I move to direct to have the project completedprior rior to the start of the 2005/06 school year for Wilson School. Willi. A. Jansen, PZsj own Engineer 0 4 Chuck Sweet, Town Manager GLOVER ROAD PATH EAST OF LA CHOLLA OPTION 1 •:• WIDEN ROAD BY 10 FEET FOR BIKE AND PEDESTRIAN PATH. •: STARTS AT LA CHOLLA AND ENDS AT MOUNTAIN BREEZE •:• SOUTH SIDE OF GLOVER •: LENGTH = 3,800 FEET •:• ESTIMATED COST = $131 ,284.00 Existing road New Asphalt S , 5' I 1 I 6" Concrete Curb OPTION 2 •3 SEPARATE 5 FEET WIDE CONCRETE SIDEWALK •3 STARTS AT LA CHOLLA AND ENDS AT VERCH WAY ❖ SOUTH SIDE OF GLOVER + LENGTH = 2,500 FEET •3 ESTIMATED COST = $88,270.00 Concrete Sidewalk Existing road 5' I OPTION 3 ❖ SEPARATE 5 FEET WIDE ASPHALT PATH •S STARTS AT LA CHOLLA AND ENDS AT MOUNTAIN BREEZE ❖ SOUTH SIDE OF GLOVER •3 LENGTH = 3,800 FEET •:• ESTIMATED COST = $63,008.00 Asphalt Path Existing road 5' TOWN OF ORO VALLEY 9 COUNCIL COMMUNICATION MEETING DATE: December 1, 2004 TO: HONORABLE MAYOR& COUNCIL FROM: Kathryn Cuvelier, Town Clerk SUBJECT: Resolution N .o (R)04- 125 Amending Resolution No. 01-80, Containing the revised Town Council ParliamentaryRules and Procedures and Code of Conduct, Section 8 Procedures for Meetings and Section 9 Public Hearing Procedure regarding No Assignment of Time SUMMARY: amends Section 8, Procedures for Meetings and Section 9, Public Hearing Procedure of The attached resolution the Town Council Parliamentary Rules and Procedures and Code of Conduct. This amendment clarifies that if on a matter, oneperson maynot assign his time to another. Citizen groups may select there are several speakers to make their presentation in their behalf within the allotted 3 minute time limit. a person ATTACHMENT: 1. Resolution No. (R)04-125 SUGGESTED MOTION: I MOVE to ADOPT Resolution No. (R)04- 125 Kat Cuvelier, Town Clerk Chuck Swe t, Town Manager RESOLUTION NO. (R)04- 125 A RESOLUTION OF THE MAYOR AND COUNCIL OF THE TOWN OF ORO VALLEY, ARIZONA, AMENDING RESOLUTION NO. 01-80, CONTAINING THE REVISED TOWN COUNCIL PARLIAMENTARY RULES AND PROCEDURES AND CODE OF CONDUCT, SECTION 8 PROCEDURES FOR MEETINGS AND SECTION 9 PUBLIC HEARING PROCEDURE REGARDING NO ASSIGNMENT OF TIME a 7, 1996, the Mayor and Council originally adopted the Town WHEREAS, On Februaryy Council Policies and Procedures, which were created for use by the Mayor and Council standards and usual procedures for the conduct of public meetings of the Council; to set and WHEREAS, on February16, 2000, the Mayor and Council re-enacted the Town Council Policies and Procedures by resolution; and WHEREAS, on September 19, 2001, the Mayor and Council adopted the Town Council ParliamentaryRules and Procedures and Code of Conduct to enact the old rules and replace certain Rules for the good of the Town; and WHEREAS, the Council has determined that an amendment to Section 8 Procedures for Meetings and Section 9 Public HearingProcedure of the Parliamentary Rules are in order as beingjust pp and appropriate, and are found to be in the best interest of the Town. NOW, THEREFORE, BE IT RESOLVED by the Mayor and Council of the Town of y, Oro Valle Arizona,by majority vote, that the adoption of the amendments to Sections 8 and 9 of the Town Council Parliamentary Rules and Procedures and Code of Conduct, attached hereto as Exhibit"A", is hereby approved. Mayor and ADOPTED bythe Ma or and Town Council of the Town of Oro Valley, Arizona, this 1st day of December , 2004. TOWN OF ORO VALLEY Paul H. Loomis,Mayor ATTEST: Kathryn E. Cuvelier, Town Clerk Tobin Sidles, Acting Town Attorney EXHIBIT "A" Section 8 PROCEDURES FOR MEETINGS 8.5 Call to the Audience The Council may make an open Call to the Audience during a public meeting so those individuals may address the Council on any issue within the jurisdiction of the Council. Each speaker must speak in a courteous and respectful manner and may be limited to p three (3) minutes. If necessary, the Mayor or Council may limit the total time offered speakers.. Ifthere are several speakers on a matter, one person may not assign his time p to another. Citizen groups may select a person to make their presentation in their behalf within the allotted 3 minute time limit. All such remarks shall be addressed to the Council as a whole, and are not to be addressed to any specific ecific Council Member. Should any item be addressed to a specific Council Member, it shall be ignored, and the Mayor shall remind the speaker that they must address theq uestion to the entire Council. No person other than the speaker shall enter into the discussion without the permission of the Mayor. At the conclusion of the open Call to the Audience and pursuant to state law, the Council may respond,but they make not take action on any item raised by the public during a call to the audience unless that item was properly placed on the agenda. 8.6 Public Input at Non-Public Hearings In the event a person in the audience wishes to address the Council on an issue on the agenda which is not a public hearing, the person should fill out a blue card located in the back of the Council Chambers and submit it to the Town Clerk. The Mayor, or upon a majority vote of the Council, shall determine whether the Council will hear from the Y public. Any such public address shall be limited to no more than three (3) minutes per person. If there are several speakers on a matter, one person may not assign his time to another. Citizen groups may select a person to make their presentation in their behalf within the allotted 3 minute time limit. Written communications related to an agenda item not submitted in the Council's meetingpacket should be delivered to the Town Clerk three(3) full working days in advance of the Council meeting and will be copied and delivered to each Council Member two (2) full working days in advance of the Council meeting. However, all such written communications shall not be read into the record by the Town Clerk unless,by a majority vote of the Council Members present, the Council votes to have the Town Clerk read the item into the record. Written communication may be delivered to the Town Clerk at the time of a person's address to the Council but these documents may not be reviewed, addressed, or commented on at the Council meeting by the Council. SECTION 9 PUBLIC HEARING PROCEDURE 9.1 Agenda Procedure for Public Hearing E) In the event a person in the audience wishes to address the Council on an issue on the agenda which is a Public Hearing, the person should fill out a blue card located in the back of the Council Chambers and submit it to the Town Clerk. That person may be permitted to speaker; however, any such public address shall be limited to three (3)minutes per person. If there are several speakers on a matter, one person may not assign his time to another. Citizen groups may select a person to make their presentation in their behalf within the allotted 3 minute time limit. All persons addressing the Council shall speak into the microphone so that the comments may be recorded. Written communications related to an agenda item not submitted in the Council's meeting packet should be delivered to the Town Clerk three (3) full working days in advance of the Council meeting and shall have been copied and delivered to each Council Member two (2) full working days in advance of the Council meeting. However, all such written communications shall not be read into the record by the Town Clerk unless,by a majorityvote of the members present, the Council votes to have the Town Clerk read the item into the record. Once the Public Hearing has been closed,no further verbal/written input shall be taken. Written communications may be delivered to the Town Clerk at the time of a person's address to the Council but these documents will not be reviewed, addressed, or commented on at the Council meeting by the Council. 1` TOWN OF ORO VALLEY COUNCIL COMMUNICATION MEETING DATE: December 1, 2004 TO: HONORABLE MAYOR AND COUNCIL FROM: CHUCK SWEET, TOWN MANAGER SUBJECT: DISCUSSION AND POSSIBLE ACTION REGARDING TOWN COUNCIL MEMBERS GIVING DIRECTION TO TOWN STAFF DURING COUNCIL MEETINGS SUMMARY: This agenda item has been requested byCouncil Member Gillaspie for Town Council discussion on tonight's q agenda. The existing Town Council Policywhich addresses the subject listed above is Town Council Policy No. 2 — coUN CIL/STAFF RELATIONSHIPS. This policy has been attached for your review. FISCAL IMPACT: None ATTACHMENTS: 1. TOWN COUNCIL POLICY NO. 2— COUNCIL/STAFF RELATIONSHIPS, dated 8/15/90 SUGGESTED MOTION: None CHUCK SWEET, TOWN MANAGER TU. 1 COUNCIL POLICY I DATE 01 WT IoM: August 15, 1990 • DATE Of REY I S I ON: 1: COUNCIL/STAFF RELATIONSHIPS Pagel of 2 I, Purpose and Need for Policy The purpose of this policy is to foster successful Council/staff relationships to insure that the Council and staff work as a team in order to accomplish the goals and objectives set by the Council. II, Policy It is the policyof the Council to establish appropriate ro riate guidelines for Council/ staff relations to � Insure that the requests of staff by Councilmembers are: 1. Handled thoroughly and expeditiously. 2. Handled at the appropriate organizational level. 3 . Handled with regard to the most efficient use of Town resources. III , Procedure to Accomplish Policy The Council should give instructions to theTown' s staff in a manner that accords with the principles of / g the council/manager er system. For example, assignments should be directed to the Town Manager and should originate from a consensus directive of the Council , not with individual Councilmembers. Councilmembers should contact staff directly only when the purpose is to communicate information ; e.g. , toreport on Conditions, information. a problem or request Councilmembers should not contact staff with special project requests or utilize large blocks of staff time pursue order to individual areas of interest. Meetings with staff should be arranged in advance, when practicable, through the Town Manager' s office. The Council should realize that only so much work can be undertaken at one time and should set clear priorities. The Council should show personal and professional respect for staff, and a staff member shouldnever be reprimandedpublic.in If a problem arises, the Council should alert the manager who can then handle thesituation quickly and privately. 411, The Council should also respect the staff ' s administrative and technical expertise. Although it may not choose to accept a staff recommendation, there is no need to be harshly critical of the recommendation or to engage e in personal attacks on staff in order to g justify selecting another course. IV. Respons ibil it and Authority Councilmembers shall be responsible for selecting the most appropriate method, consistent with this policy, of communicating with staff. The Town Manager shall be responsible for maintaining and monitoring an administrative system that accomplishes the stated purpose of this policy. APPROVED BY THE TOWN COUNCIL: e . /,__ _.. # .YO•- DATE: TOWN OF ORO VALLEY COUNCIL COMMUNICATION MEETING DATE: December 1, 2004 TO: HONORABLE MAYOR AND COUNCIL FROM: Jeff Grant, Human Resources Director SUBJECT: DISCUSSION AND POSSIBLE ACTION REGARDING THE IDENTIFICATION OF TOWN COUNCIL MEMBERS TO SERVE ON A SCREENING COMMITTEE FOR THE TOWN ATTORNEY SELECTION PROCESS SUMMARY: On September 15, 2004 the Oro Valley Town Council adopted Ordinance No. (0) 04-26, amending the Town Code to change the appointment process for the office of Town Attorney from the Town Manager to the Town Council. Subsequent to the adoption of Ordinance (0) 04-26, the Human Resources Director has suggested a recruitment process for the selection of the vacant Town Attorney position. The recruitment process includes an advertising campaign in the local press and the state and Pima County Bar publications, as well as related websites. We have also advertised with the League of Arizona Cities and Towns. As a result of the advertising campaign, and preparatory to a structured interview process, it has been recommended that the Town Council finalize a screening committee to review the resumes and applications received from candidates. It is expected that the screening will commence no earlier than December 15, 2004, and that the screening committee will be made up of Council members, with the assistance of the Human Resources Director and an Attorney. While the Human Resources Director originally recommended that three Council Members be named as the screening committee, to date at least five of the Council members have expressed an interest in serving as screening committee members. The Town Council needs to determine how many screening committee members are desired, and which Council members will serve in that capacity. FISCAL IMPACT: None SUGGESTED MOTION: I make a motion for the following Town Council members to serve on the Screening Committee for the Town Attorney selection process: 7) 9 71d- >Z6,1 Jeff Gr t , uman Resources Director ", 77" Economic Factors and Next Year's Budgets and Rates �.I�• ♦ The unemployment rate for the Town of Oro Valley is currently 2.6%. Pima County's and the State of Arizona's unemployment rates are 3.9% and 5.2% respectively. • The Town's secondary assessed valuation for the current year is $358 million an increase of 10% over last year. • Single family residential building permits issued in fiscal year 2003/04 increased by 82 permits or 19% over last year. • Average earning for Oro Valley residents are$70,404. • The average value of a home in Oro Valley is $177,400. The Town of Oro Valley's budget for FY 2004/05 fiscal year totaled $117,842,886 an increase of $14,623,030 or 14% over last year. Street and road improvement projects and the reclaimed water system improvement account for most of the increase. The General Fund's budgeted expenditures decreased by $1,738,695 for a total of$25,722,971. This reflects additional costs associated with maintaining the Town's current service levels. Requests for Information This financial report is designed to provide a general overview of the Town of Oro Valley's finances for all those with an interest in the government's finances. Questions concerning any of the information provided in this report of requests for additional financial information should be addressed to the following: David Andrews, Finance Director or Mary Rallis,Accounting Supervisor Town of Oro Valley 11,000 N. La Canada Drive Oro Valley, Arizona 85737 25 ir�?'� a tri"' .yjr ; ^, _ k.j: 1 THIS PAGE BLANK 26 ...._.; . ,,,,, ,,,--..,.., .._...... ,..„.., ,,, , I, ..,,�. . ,,,...„ ,'' ,„.„... ` - mac,,,. f tiS''i ,,, Basic Financial Statements 27 DRAFT 1 TOWN OF ORO VALLEY, ARIZONA STATEMENT OF NET ASSETS JUNE 30, 2004 Governmental Business-type Activities Activities Totals Assets Cash and cash equivalents $ 23,141,855 $ 32,700,403 $ 55,842,258 Receivables,net of allowance for doubtful accounts Accounts receivable 2,536,551 1,556,292. 4,092,843 Taxes receivable 1,233,848 - 1,233,848 Intergovernmental receivable 786,966 - 786,966 Interest receivable 26,804 54,958 81,762 Inventories 17,912 - 17,912 Prepaid items 7,172 - 7,172 Deferred charges 90,402 1,395,540 1,485,942 Restricted assets - 3,619,363 3,619,363 Capital assets Non-depreciable 28,958,370 10,303,525 39,261,895 Depreciable(net) 18.648.044 40.407.913 59.055,957 Total assets 75.447.924 90.037.994 165.485.918 Liabilities Accounts payable 2,179,779 510,129 2,689,908 Accrued wages and benefits 681,322 75,737 757,059 Interest payable - 1,611,484 1,611,484 Intergovernmental payable 26,033 341,526 367,559 Unearned revenue 160,671 - 160,671 Customer deposits payable 838,802 126,875 965,677 Noncurrent liabilities Due within one year 2,064,897 1,416,175 3,481,072 Due in more than one year 15.743.393 64.269.371 80.012.764 Total liabilities 21.694.897 68.351.297 90.046.194 Net assets Invested in capital assets,net of related debt 30,546,282 (14,913,572) 15,632,710 Restricted for Public safety 281,488 - 281,488 Highways and streets 2,203,661 - 2,203,661 Debt service 314,301 2,343,593 2,657,894 Capital outlay 900,429 - 900,429 Replacement and reserve - 1,148,895 1,148,895 Other 258,154 - 258,154 Unrestricted 19.248312 33.107.781 52.356.493 Total net assets $ 53.753.027 $ 21.686.697 $ 75.439.724 28 '•'tet':"".r49-,:. z%Yr Ire IL� , !i Yl� :.x7171. s . ,�,. 3 L: C7 en M t*—.-1 - ,-•I en N to N 00 .1- '� `J N N 'tet NN N O� --4 I O 0a0 0D0 0i0 \O �• 00 O\ N N V . .'--7 01 `O�t `O O\ � t� O .--1 Vr � co CT �n ct" �n �' • 00N 'f kr1 N CT ,:r in N NN00 -I- 00N � , en rn 'n .r N '�' H -- -CTCnN`. en in cn NM -NN.-r v O �t in \ ...i ---- N N cn VI O 15 O .c.-1 cn Q] •- il 00 O 00 N. 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'{;'?FIs ORO VALLEY, ARIZONA ,,,,:,--t- R- `, ` �` �_ 1 , '1 TOWN OF �1 r a,-_1 BALANCE SHEET GOVERNMENTAL FUNDS JUNE 30, 2004 Townwide Roadway Nonmajor Public Development Governmental General HURF Transportation Impact Fees Funds Totals Assets Cash and cash equivalents $ 8,954,957 $ 1,969,825 $ 118,473 $ 9,832,763 $ 2,265,837 $ 23,141,855 Receivables,net Accounts receivable 751,133 - - 1,785,418 - 2,536,551 Taxes receivable 1,233,848 - - - - 1,233,848 Intergovernmental receivable 475,365 237,856 - 73,745 - 786,966 Interest receivable 11,418 2,300 134 11,206 1,746 26,804 Due from other funds 630,500 - - - - 630,500 Inventories - 17,912 - - - 17,912 Prepaid items 7.172 - - - - 7.172 Total assets $ 12.064.393 $ 2.227.893 $ 118.607 $ 11.703.132 $ 2.267.583 $ 28.381.608 Liabilities and Fund Balances Liabilities Accounts payable $ 991,400 $ 39,041 $ 4,484 $ 1,142,742 $ 2,112 $ 2,179,779 Accrued wages and benefits 606,136 57,963 12,150 5,073 - 681,322 Intergovernmental payable 26,033 - - - - 26,033 Due to other funds - - - - 630,500 630,500 Deferred revenue 473,994 - - - 4,919 478,913 Customer deposits payable 80,815 202 - - 757,785 838,802 Compensated absences-current 501.476 25.013 3.986 5.380 - 535.855 Total liabilities 2.679.854 122.219 20.620 1.153.195 1.395.316 5,371.204 Fund balances - Reserved for: - - - - Inventories - 17,912 - - - 17,912 Prepaid items 7,172 - - - - 7,172 Unreserved: Undesignated 8,974,342 2,061,352 95,908 10,548,701 - 21,680,303 Designated for long-term compensated absences 207,713 3,354 - 1,236 - 212,303 Designated for unemployment 195,312 23,056 2,079 - - 220,447 Unreserved,reported in nonmajor: Special revenue funds - - - - 534,723 534,723 Debt service funds - - - - 314,301 314,301 Capital projects funds - - - - 23.243 23.243 Total fund balances 9.384.539 2.105.674 97.987 10.549 937 872.267 23.010.404 Total liabilities and fund balances $ 12.064.393 $ 2.227.893 $ 118.607 $ 11.703.132 $ 2.267.583 $ 28.381.608 The notes to the basic financial statements are an intergral part of this statement. 30 .,:i---.-.. ,-,---- - li , t• Gal.' .t TOWN OF ORO VALLEY, ARIZONA - RECONCILIATION OF THE BALANCE SHEET OF GOVERNMENTAL FUNDS TO THE STATEMENT OF NET ASSETS JUNE 30, 2004 Fund balances-total governmental funds $ 23,010,404 Amounts reported for governmental activities in the statement of net assets are different because: Capital assets used in governmental activities are not financial resources and therefore are not reported in the governmental funds. Governmental capital assets 52,789,234 Less accumulated depreciation (5.182.820) Capital assets used in governmental activities 47.606.414 Other long-term assets are not available to pay for current-period expenditures and are not susceptible to accrual. 318,242 Long-term liabilities,including bonds payable,are not due and payable in the current period and therefore are not reported in the governmental funds. Revenue bonds (10,304,324) Certificates of participation (610,000) Loans payable (6,716,000) Deferred amounts on the refunding 628,448 Deferred amount on the premium (58,256) Long-term compensated absences (212,303) Bond issuance costs 90.402 Net assets of governmental activities $ 53.753.027 The notes to the basic financial statements are an integral part of this statement. 31 EY ARIZONA , 4 ' 2) e_-'',-,\ P-----r,j- - ALL `+ , . TOWN OF ORO VALLEY, 1*� _, •. ��. ;�',; EXPENDITURES, AND CHANGES IN FUND BAS, S: -'---t6 "' STATEMENT OF REVENUES, EXPEND , GOVERNMENTAL FUNDS FOR THE YEAR ENDED JUNE 30,2004 Townwide Roadway Nonmajor Public Development Governmental General HURF Transportation Impact Fees Funds Totals Revenues Taxes Sales taxes $ 7,898,956 $ 25,899 $ - $ - $ - $ 7,924,855 Franchise taxes 371,697 - - - - 371,697 Intergovernmental 7,736,382 2,568,169 232,816 13,437,638 15,000 23,990,005 Fines and forfeitures 217,920 - - - 245,230 463,150 Licenses and permits 2,503,802 32,774 - - - 2,536,576 Charges for services 785,299 5,978 32,010 - - 823,287 Contributions and donations 30,141 - 110 - - 30,251 Impact fees - - - 1,189,848 - 1,189,848 Investment earnings 164,067 25,659 1,798 78,739 11,255 281,518 Other 129.630 63.139 11.925 24.717 - 229.411 Total Revenues 19.837.894 2.721.618 278.659 14.730.942 271.485 37.840.598 Expenditures Current General government 5,793,887 - - - 6,590 5,800,477 Public safety 9,313,688 - - - 112,527 9,426,215 Highways and streets - 2,284,206 337,960 14,571,156 - 17,193,322 Culture and recreation 2,540,949 - - - - 2,540,949 Debt Service Principal retirement - - - - 541,290 541,290 Interest on long-term debt - - - 19,977 406,495 426,472 Issuance costs - - - - 93.415 93.415 Total Expenditures 17.648.524 2.284.206 337.960 14.591.133 1.160.317 36.022.140 Excess(deficiency)of revenues over expenditures 2.189.370 437.412 (59.301) 139.809 (888.832) 1.818.458 Other financing sources(uses) Transfers in - - 101,592 - 1,080,576 1,182,168 Transfers out (1,246,168) - - - - (1,246,168) Issuance of long-term loan payable - - - 5,000,000 - 5,000,000 Issuance of refunding debt - - - - 5,572,700 5,572,700 Payment to refunded debt escrow agent - - - - (5.478.016) (5.478.016) Total other financing sources (uses) (1.246.168) - 101.592 5.000.000 1.175.260 5.030.684 Net change in fund balances 943,202 437,412 42,291 5,139,809 286,428 6,849,142 Fund balances,beginning of year 8.441.337 1.668.262 55.696 5.410A28 585.839 16.161.262 Fund balances,end of year $ 9.384.539 $ 2.105.674 $, 97.987 $ 10.549.937 $ 872.267 $ 23.010.404 The notes to the basic financial statements are an integral part of this statement. 32 nrtii,lire � J 7 11, -�� r��•'- r '[rte � pn'. VALLEY,ARIZONA ,t , i K.1��'': ;�� TOWN OF ORO �� y _fr�-- RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES FOR THE FISCAL YEAR ENDED JUNE 30, 2004 Net change in fund balances-total governmental funds $ 6,849,142 Amounts reported for governmental activities in the statement of activities are different because: Governmental funds report capital outlays as expenditures. However,in the statement of activities the cost of those assets is allocated over their estimated useful lives and reported as depreciation expense. Expenditures for capital assets 15,066,806 Less current year depreciation (1.118.998) Excess capital expenditures over depreciation 13.947.808 The statement of activities reports losses arising from the disposal of existing capital assets. Conversely, governmental funds do not report any gain or loss on disposals of capital assets. (9,525) Some revenues reported in the statement of activities do not provide current financial resources and therefore are not reported as revenues in governmental funds. Court fines 20,143 The issuance of long-term debt(e.g.bonds,leases)provides current financial resources to governmental funds,while the repayment of the principal of long-term debt consumes the current financial resources of governmental funds. Neither transaction,however,has any effect on net assets. The issuance of long- term debt increases long-term liabilities on the statement of net assets and the repayment of principal on long-term debt reduces long-term debt on the statement of net assets. Also,governmental funds report the effect of issuance costs,premiums,discounts,and similar items when the debt is first issued,whereas these items are deferred and amortized over the term of the long-term debt in the statement of activities. Principal payments on long-term debt 541,290 Issuance costs 93,415 Proceeds of loans payable (5,000,000) Proceeds of refunding debt issuance (5,572,700) Payment to refunded debt escrow agent 5,478,016 Amortization of the deferred amount on the refunding (28,566) Amortization of the deferred amount on the refunding and the premium 1,944 Amortization of the issuance cost (3,013) Some expenses reported in the statement of activities do not require the use of current financial resources and therefore are not reported as expenditures in the governmental funds. Long-term compensated absences 114.797 Change in net assets of governmental activities $ 16.432.751 The notes to the basic financial statements are an integral part of this statement. 33 rikA A row,. I ::' ,;'i--211 TOWN OF ORO VALLEY, ARIZONA '�` :.. AL--0,y_ W..:, ,i, GENERAL FUND STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES -BUDGET AND ACTUAL FOR THE FISCAL YEAR ENDED JUNE 30, 2004 Original Variance with Budget Final Budget Actual Final Budget Revenues Taxes Sales taxes $ 6,952,000 $ 6,952,000 $ 7,898,956 $ 946,956 Franchise taxes 378,000 378,000 371,697 (6,303) Intergovernmental 7,826,393 7,826,393 7,736,382 (90,011) Fines and forfeitures 200,000 200,000 217,920 17,920 Licenses and permits 1,821,000 1,821,000 2,503,802 682,802 Charges for services 554,300 554,300 785,299 230,999 Contributions and donations 24,500 24,500 30,141 5,641 Investment earnings 125,000 125,000 164,067 39,067 Other 100.000 100.000 129.630 29.630 Total Revenues 17.981.193 17.981.193 19.837.894 1.856.701 Expenditures Current General government Town council 141,088 141,088 145,454 (4,366) Town clerk 407,471 407,471 361,249 46,222 Magistrate court 487,037 487,037 502,109 (15,072) Town manager 338,909 338,909 351,161 (12,252) Finance 477,867 477,867 454,199 23,668 Legal 557,781 557,781 524,165 33,616 Planning and zoning 780,947 792,947 708,558 84,389 General administration 6,222,200 5,887,020 390,299 5,496,721 Custodial facility maintenance 157,773 157,773 138,832 18,941 Economic development 1,039,630 1,039,630 884,353 155,277 Community development administration 355,701 392,201 390,287 1,914 Human resources 220,467 220,467 240,096 (19,629) Information systems 317,984 317,984 311,226 6,758 Geographical information systems 116,390 116,390 110,352 6,038 Public works 319.336 319.336 281.547 37.789 Total general government 11.940.581 11.653.901 5.793.887 5.860.014 Public safety Police 8,488,268 8,488,268 8,238,572 249,696 Building safety 1.219.895 1.249.095 1.075.116 173.979 Total public safety 9.708.163 9.737.363 9.313.688 423.675 Culture and recreation Parks and recreation 1,373,436 1,566,916 1,622,413 (55,497) Library 962.098 962.098 918.536 43.562 Total culture and recreation 2.335.534 2.529.014 2.540.949 (11.935) Total Expenditures 23.984.278 23.920.278 17.648.524 6.271.754 Excess(deficiency)of revenues over expenditures (6.003.085) (5.939.085) 2.189.370 8.128.455 Other financing sources(uses) Transfers out (1.182.168) (1.246.168) (1.246.168) - Total other financing sources(uses) (1.182.168) (1.246.168) (1.246.168) - Net change in fund balances (7,185,253) (7,185,253) 943,202 8,128,455 Fund balances,beginning of year 7.185.253 7.185.253 8.441.337 1.256.084 Fund balances,end of year $ - $ - $ 9.384.539 $ 9.384.539 The notes to the basic financial statements are an integral part of this statement. 34 C' fir,•:. tlt:::;; "�'` play,. .,�. ha ... TOWN OF ORO VALLEY,ARIZONA HURF „„,ir.r _- FUND STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL FOR THE FISCAL YEAR ENDED JUNE 30, 2004 Original and Final Variance with Final Budget Actual Budget Revenues Taxes $ - $ 25,899 $ 25,899 Intergovernmental 3,234,000 2,568,169 (665,831) Licenses and permits 22,000 32,774 10,774 Charges for services 6,000 5,978 (22) Investment earnings 20,000 25,659 5,659 Other 2.000 63.139 61.139 Total Revenues 3.284.000 2,721.618 (562.382) Expenditures Current Highways and streets 4.718.133 2.284.206 2.433.927 Total Expenditures 4.718.133 2.284.206 2.433.927 Excess(deficiency)of revenues over expenditures (1,434,133) 437,412 1,871,545 Fund balances,beginning of year 1.434.133 1.668.262 234.129 Fund balances,end of year $ - $ 2.105.674 $ 2.105.674 The notes to the basic financial statements are an integral part of this statement. 35 �. g w,Z 1'_ r't,i' ORO :,A I. VALLEY, ARIZONA 10 _;- ,k .,.-1 (;-:: TOWN OF �, .s _4�: PUBLIC TRANSPORTATION FUND STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES — BUDGET AND ACTUAL FOR THE FISCAL YEAR ENDED JUNE 30, 2004 Original and Final Variance with Final Budget Actual Budget Revenues Intergovernmental $ 262,580 $ 232,816 $ (29,764) Charges for services 31,500 32,010 510 Contributions and donations - 110 110 Investment earnings 1,000 1,798 798 Other - 11.925 11.925 Total Revenues 295.080 278.659 (16.421) Expenditures Current Highways and streets 438.320 337.960 100.360 Total Expenditures 438.320 337.960 100.360 Excess(deficiency)of revenues over expenditures (143.240) (59.301) 83.939 Other financing sources(uses) Transfers in 101.592 101.592 - Total other financing sources(uses) 101.592 101.592 - Net change in fund balances (41,648) 42,291 83,939 Fund balances,beginning of year 41.648 55.696 14.048 Fund balances,end of year $ - $ 97.987 $ 97.987 The notes to the basic financial statements are an integral part of this statement. 36 TOWN OF ORO VALLEY,ARIZONA STATEMENT OF NET ASSETS PROPRIETARY FUNDS JUNE 30, 2004 Stormwater Water Drainage Totals Assets Current assets Cash and cash equivalents $ 32,452,909 $ 247,494 $ 32,700,403 Receivables,net Accounts receivable 1,556,292 - 1,556,292 Interest receivable 54,958 - 54,958 Deferred charges 1,395,540 - 1,395,540 Restricted assets 3,619,363 - 3,619,363 Noncurrent assets Capital assets Non-depreciable 10,303,525 - 10,303,525 Depreciable(net) 40.407.913 - 40.407.913 Total Assets 89.790.500 247.494 90.037,994 Liabilities Current liabilities Accounts payable 510,122 7 510,129 Accrued wages and benefits 74,009 1,728 75,737 Interest payable 1,611,484 - 1,611,484 Intergovernmental payable 341,526 - 341,526 Customer deposits payable 126,875 - 126,875 Compensated absences-current 13,526 - 13,526 Bonds,notes and loans payable-current 1,402,649 - 1,402,649 Noncurrent liabilities Compensated absences 47,010 - 47,010 Bonds,notes and loans payable 64.222.361 - 64.222.361 Total liabilities 68.349.562 1.735 68.351.297 Net assets Invested in capital assets,net of related debt (14,913,572) - (14,913,572) Restricted for Replacement and reserve 1,148,895 - 1,148,895 Debt service 2,343,593 - 2,343,593 Unrestricted 32.862.022 245,759 33.107.781 Total net assets $ 21.440.938 $ 245.759 $ 21.686.697 The notes to the basic financial statements are an integral part of this statement. 37 N.7:. �f _} fif:\ A\ las;--- i TOWN OF ORO VALLEY, ARIZONA Y,. ,= ,,; . .:.,la STATEMENT OF CASH FLOWS PROPRIETARY FUNDS FOR THE FISCAL YEAR ENDED JUNE 30, 2004 Storm Water Water Drainage Totals Cash flows from operating activities Receipts from customers $ 11,300,553 $ - $ 11,300,553 Payments to suppliers (2,698,236) (43,816) (2,742,052) Payments to employees (1,614,730) - (1,614,730) Impact fees 248,093 - 248,093 Intergovernmental revenues - (400) (400) Other revenue 18,006 - 18,006 Customer deposits 47.059 - 47.059 Net cash flows from operating activities 7.300.745 (44.216) 7.256.529 Cash flows from noncapital financing activities Cash received from(paid to)other funds for interfund borrowing (330,729) - (330,729) Transfers in - 64.000 64.000 Net cash flows from noncapital financing activities (330.729) 64.000 (266.729) Cash flows from capital and financing activities Purchase of capital assets (5,244,610) - (5,244,610) Proceeds from capital debt 39,573,529 - 39,573,529 Proceeds of refunding revenue bonds 3,522,088 - 3,522,088 Issuance costs (853,860) - (853,860) Payment to refunding escrow agent on refunded bonds (13,919,519) - (13,919,519) Principal payment on capital debt (6,222,710) - (6,222,710) Interest payment on capital debt (2.075.588) - (2.075.588) • Net cash flows from capital and financing activities 14.779.330 - 14.779.330 Cash flows from investing activities Investment earnings 245.332 - 245.332 Net cash flows from investing activities 245.332 - 245.332 Net change in cash and cash equivalents 21,994,678 19,784 22,014,462 Cash and cash equivalents,beginning of year 14.077.594 227.710 14.305.304 Cash and cash equivalents,end of year(including$3,619,363 of restricted assets in the Water Fund) $ 36.072.272 $ 247.494 $ 36.319.766 Reconciliation of operating income(loss)to net cash provided by operating activities Operating income(loss) $ 5,343,654 $ (45,551) $ 5,298,103 Adjustments to reconcile operating income(loss)to net cash provided (used)by operating activities: Depreciation and amortization 1,764,055 - 1,764,055 Impact fees 248,093 - 248,093 Nonoperating receipts(payments) 18,006 - 18,006 Change in assets/liabilities: Receivables,net (365,185) - (365,185) Accounts payable 198,448 7 198,455 Intergovernmental payable 14,291 (400) 13,891 Accrued payroll and related benefits 19,377 1,728 21,105 Compensated absences 12,947 - 12,947 Customer deposits 47.059 - 47.059 Net cash provided(used)by operating activities $ 7.300.745 $ (44.216) $ 7.256.529 Non-cash and investing activities Bond issuance costs of$63,359 were amortized during the year. In addition, the Town received $840,096 of assets contributed by developers recorded as capital contributions in the Statement of Revenues, Expenses and Changes in Fund Net Assets. The notes to the basic financial statements are an integral part of this statement. 39 THIS PAGE BLANK 40 TOWN OF ORO VALLEY, ARIZONA syr;. =;�= J . :; NOTES TO THE BASIC FINANCIAL STATEMENTS FISCAL YEAR ENDED JUNE 30, 2004 NOTE 1 -SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The accompanying financial statements of the Town of Oro Valley, Arizona (Town) have been prepared in conformity with U.S. generally accepted accounting principles applicable to governmental units adopted by the Governmental Accounting Standards Board (GASB). A summary of the Town's more significant accounting policies follows. A. Reporting Entity The Town is a municipal government that is governed by a separately elected governing body. It is legally separate from and fiscally independent of other state and local governments. The accompanying financial statements present the Town and its component units, entities for which the Town is considered to be financially accountable. Blended component units, although legally separate entities, are, in substance,part of the Town's operations. Included within the reporting entity: The Town of Oro Valley Municipal Property Corporation - The Town of Oro Valley Municipal Property Corporation's (MPC) board of directors consists of the three members which are appointed by the Town of Oro Valley Town Council. The MPC, which is a nonprofit corporation incorporated under the laws of the State of Arizona, was originally formed for the purpose of assisting the Town in obtaining financing for acquiring the Canada Hills Rancho Vistoso water companies. The Town has a contractual obligation for the repayment of the Municipal Property Corporation's Municipal Facilities Revenue Bonds, Series 1996 and 1999. The activity of the 1996 MPC is reported in the applicable water enterprise fund and the activity of the the Series 1999 MPC is reported in the applicable water enterprise and governmental funds. All related receivables and payables between the Town and the MPC have been eliminated. B. Government-wide and Fund Financial Statements The government-wide financial statements (i.e., the statement of net assets and the statement of changes in net assets) report information on all of the nonfiduciary activities of the primary government and its component units. The effect of interfund activity has been removed from these statements. Governmental activities are normally supported by taxes and intergovernmental revenues. 41 #•i,TOWN OF ORO VALLEY, ARIZONA 1 A_ �- NOTES TO THE BASIC FINANCIAL STATEMENTS FISCAL YEAR ENDED JUNE 30, 2004 The statement of activities demonstrates the degree to which the direct expenses of a given function or segment are offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. Program revenues include 1) charges to customers or applicants who purchase, use, or directly benefit from goods, services, or privileges provided es by a given function or segment and 2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function or segment. Taxes and other items not properly included among program revenues are reported instead as general revenues. Separate financial statements are provided for governmental funds. Major individual governmental funds are reported as separate columns in the fund financial statements. C. Measurement focus, Basis of Accounting, and Financial Statement Presentation The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Property taxes are recognized as revenues in the year for which they are levied. Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by the provider have been met. Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available. Revenues are considered to be available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the Town considers revenues to be available if they are collected within 60 days of the end of the current fiscal period. Expenditures generally are recorded when a liability is incurred, as under accrual accounting, except expenditures related to compensated absences and claims and judgments, which are recorded only when payment is due. However, since debt service resources are provided during the current year for payment of general long-term principal and interest due early in the following year, the expenditures and related liabilities have been recognized in the Debt Service Funds. Taxes, intergovernmental grants and aid, and interest associated with the current fiscal period are all considered to be susceptible to accrual and so have been recognized as revenues of the current fiscal period. All other revenue items are considered to be measurable and available only when cash is received by the government. The Town reports the following major governmental funds: The General Fund is the Town's primary operating fund. It accounts for all financial resources of the Town, except those required to be accounted for in another fund. 42 01%,10-7* /7.-; TOWN OF ORO VALLEY,ARIZONArye _ .. NOTES TO THE BASIC FINANCIAL STATEMENTS FISCAL YEAR ENDED JUNE 30, 2004 The Highway Users Revenue Fund (HURF) accounts for the operations of the street maintenance department. Financing is provided by the Town's share of state gasoline taxes. State law requires these gasoline taxes be used to maintain streets. The Public Transportation Fund accounts for the operation of the Town's public transportation system. The Townwide Roadway Development Impact Fees Fund accounts for the collection and capital expenditures of the Townwide Roadway Development Impact Fees. The Town reports the following major proprietary funds: The Water Fund accounts for the costs to operate, construct and finance the Town's water system. The Stormwater Drainage Fund accounts for the costs to operate, construct and finance the Town's storm drainage. In addition, it accounts for the cost to educate the public relating to storm drainage water as required by the E.P.A. Private-sector standards of accounting and financial reporting issued prior to December 1, 1989, generally are followed in the government-wide financial statements to the extent that those standards do not conflict with or contradict guidance of the Governmental Accounting Standards Board. As a general rule the effect of interfund activity has been eliminated from the government-wide financial statements. Amounts reported as program revenues include 1) charges for services, 2) operating grants and contributions, and 3) capital grants and contributions. Internally dedicated resources are reported as general revenues rather than as program revenues. Likewise, general revenues include all taxes. Proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary fund's principal ongoing operations. All revenues and expenses not meeting this definition are reported as nonoperating revenues and expenses. When both restricted and unrestricted resources are available for use, for governmental activities it is the Town's policy to use restricted resources first, then unrestricted resources as they are needed. 43 TOWN OF ORO VALLEY, ARIZONA . 4 rA 1 NOTES TO THE BASIC FINANCIAL STATEMENTS • FISCAL YEAR ENDED JUNE 30, 2004 D. Assets,Liabilities, and Net Assets or Equity 1. Deposits and Investments The Town's cash and cash equivalents are considered to be cash on hand, demand deposits, cash and investments held by the State Treasurer, and highly liquid investments with maturities of three months or less from the date of acquisition. Cash and investments are pooled except for funds required to be held by fiscal agents or restricted under provisions of bond indentures. Interest earned from investments purchased with such pooled monies is allocated to each of the funds based on the average daily cash balances. State statutes authorize the Town to invest in obligations of the U.S. Treasury and U.S. agencies, certificates of deposit in eligible depositories, repurchase agreements, obligations of the State of Arizona or any of its counties or incorporated cities, towns or duly organized school districts, improvement districts in this state and the State Treasurer's Local Government Investment Pool. 2. Receivables All trade accounts receivables are recorded net of allowance for doubtful accounts. 3. Short-term Interfund Receivables/Payables During the course of operations, individual funds within the Town's pooled cash accounts may borrow money from the other funds within the pool on a short-term basis. These receivables and payables are classified as "due from other funds" or "due to other funds" on the balance sheet of the fund financial statements and are eliminated in the preparation of the government- wide financial statements. 4. Inventories and Prepaid Items Inventories consist of expendable supplies held for consumption. Inventories are valued at cost using the first-in/first-out (FIFO) method. Inventories of governmental funds are recorded as expenditures when consumed rather than when purchased. Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid items in both government-wide and fund financial statements. 5. Restricted Assets Certainp roceeds of the Town's bonds, as well as certain resources set aside for their repayment, are classified as restricted assets on the statement of net assets because their use is limited by applicable bond covenants. 44 TOWN OF ORO VALLEY, ARIZONA t`` - NOTES TO THE BASIC FINANCIAL STATEMENTS FISCAL YEAR ENDED JUNE 30, 2004 6. Capital Assets Capital assets, which include property, plant, and equipment, are reported in the governmental p activities column in the government-wide financial statements. Capital assets are defined by the Town as assets with an initial, individual cost of more than $5,000 and an estimated useful life in excess of one year. Property,e plant and equipment purchased or acquired is carried at historical cost or estimated historical cost. Contributed assets are recorded at fair market value as of the date received. Additions, improvements and other capital outlays that significantly extend the useful life of an asset are capitalized. Other costs incurred for repairs and maintenance are expensed as incurred. General infrastructure assets acquired prior to July 1, 2002 are not reported in the basic financial statements. Those assets will be transitioned in over the next three fiscal years in accordance with GASB Statement No. 34. Depreciation on all assets is provided on a straight-line basis over the following estimated useful lives: Buildings 50 years Improvements other than buildings 20 years Infrastructure 50 years Furniture, machinery and equipment 5 years Vehicles 5 years 7. Compensated Absences • The liability for compensated absences reported in the government-wide statements consists of unpaid, accumulated leave balances. The liability has been calculated using the vesting method, in which leave amounts for both employees who currently are eligible to receive termination payments and other employees who are expected to become eligible in the future to receive such payments upon termination are included. 8. Long-Term Obligations In the government-wide financial statements, long-term debt and other long-term obligations are reported as liabilities in the applicable governmental activities. Bond premiums and discounts, as well as issuance costs, are deferred and amortized over the life of the bonds using the straight line method. Bonds payable are reported net of the applicable bond premium or discount. Bond issuance costs are reported as deferred charges and amortized over the term of the related debt. 45 TOWN OF ORO VALLEY,ARIZONA NOTES TO THE BASIC FINANCIAL STATEMENTS FISCAL YEAR ENDED JUNE 30, 2004 In the fund financial statements, governmental fund types recognize bond premiums and discounts, as well as bond issuance costs, during the current period. The face amount of debt issued is reported as other financing sources. Premiums received on debt issuances are reported as other financing sources while discounts on debt issuances are reported as other financing uses. Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as debt service expenditures. 9. Net Assets In the goverment-wide financial statements, net assets are reported in three categories: net assetsp invested in capital assets, net of related debt; restricted net assets; and unrestricted net assets. Net assets invested in capital assets, net of related debt is separately reported because the Town reports all Town assets which make up a significant portion of total net assets. Restricted net assets account for the portion of net assets restricted by parties outside the Town. Unrestricted net assets are the remaining net assets not included in the previous two categories. 10. Fund Equity the fund financial statements, governmental funds report reservations of fund balance for In amounts that are not available for appropriation or are legally restricted by outside parties for use for a specific purpose. Designations of fund balance represent tentative management plans p that are subject to change. NOTE 2 -STEWARDSHIP, COMPLIANCE, AND ACCOUNTABILITY A. Budgetary Information The Town Council follows these procedures in establishing the budgetary data reflected in the financial statements: 1. In accordance with Arizona Revised Statutes, the Town Manager submits a proposed budget for the fiscal year commencing the following July 1 to the Town Council. The g o eratin budget includes proposed expenditures and the means of financing them for p g the upcoming year. 2. Public hearings are conducted to obtain taxpayer comment. 46 ‘;.Pki .!Z EY TOWN OF ORO VALL , ARIZONA ' NOTES TO THE BASIC FINANCIAL STATEMENTS FISCAL YEAR ENDED JUNE 30, 2004 3. Prior to the second Monday in August, the expenditure limitation of the Town is legally enacted through the adopting of the budget. To ensure compliance with the State imposed expenditure limitation, a uniform expenditure report must be filed with the p p State each year. This report, issued under a separate cover, reconciles total Town expenditures from the audited financial statements to total expenditures for reporting in accordance with the State's uniform expenditure reporting system (A.R.S. §41-1279.07). 4. Expenditures may not legally exceed the expenditure limitation of all fund types as a whole. For management and legal purposes, the Town Council adopts a budget by department for the General Fund and in total by fund for all funds for which a budget is adopted (the Town did not adopt a budget for the Industrial Development Authority, Revegetation Assurance or Library Construction Nonmajor Funds). The Town Manager, subject to Town Council approval, may at any time transfer various unencumbered appropriation balances or portions thereof between a departments or activity. The adopted budget cannot be amended in any way without Town Council approval. 5. Formal budgetary integration is employed as a management control device during the year on the same modified accrual basis of accounting used to record actual revenues and expenditures. The Town is subject to the State of Arizona's Spending Limitation Law for Towns and Cities. This law does not permit the Town to spend more than budgeted revenues plus the carry-over unrestricted cash balance from the prior fiscal year. The limitation is applied to the total of the combined funds. The Town complied with this law during the year. No supplementary budgetary appropriations were necessary during the year. B. Excess of Expenditures Over Appropriations Expenditures exceeded appropriations in the following funds: Amount of Overexpenditure General Fund: Town council $ 4,366 Magistrate court 15,072 Town manager 12,252 Human resources 19,629 Parks and recreation 55,497 Nonmajor Governmental Funds: Federal Seizures and Forfeitures 20,074 47 TOWN OF ORO VALLEY,ARIZONA NOTES TO THE BASIC FINANCIAL STATEMENTS FISCAL YEAR ENDED JUNE 30, 2004 NOTE 3 -DETAILED NOTES ON ALL FUNDS A. Assets 1. Deposits and Investments Deposits and investments at June 30, 2004 consist of the following: Deposits Cash on hand $ 2,900 Cash in bank 8,222,118 Cash with the County Treasurer 334,934 Investments State Treasurer's Investment Pool 50.901.669 Total cash and investments 59,461,621 Restricted assets (3.619,363) Total cash and equivalents $ 55.842.258 Deposits - The Town's deposits at June 30, 2004, were entirely covered by federal depository insurance or by collateral held by the Town's custodial bank in the Town's name. Investments - The State Board of Deposit provides oversight for the State Treasurer's pools, and the Local Government Investment Pool Advisory Committee provides consultation and advice to the Treasurer. The fair value of a participant's position in the pool approximates the value of thatant pc artii 's pool shares. The shares are not identified with specific investments p and are not subject to custodial credit risk. In addition, the money market mutual fund is not subject to custodial credit risk. All other investments of the Town are uninsured and unregistered with the securities held by the counterparty's trust department or agent in the Town's name. 2. Restricted Assets Restricted assets in the Enterprise Fund at June 30, 2004 consisted of the following: Future debt service $ 2,343,593 Replacement reserve 1,148,895 Customer deposits 126.875 $ 3.619.363 48 .�'i1�a^i�: •-:� :', j, :,fig �� •. is- '=+ �. ^� jj TOWN OF ORO VALLEY,ARIZONA M f �y NOTES TO THE BASIC FINANCIAL STATEMENTS FISCAL YEAR ENDED JUNE 30, 2004 3. Receivables p Governmental funds report deferred revenue in connection with receivables for revenues that q are not considered to be available to liquidate liabilities of the current period. Governmental funds also defer revenue recognition in connection with resources that have been received, but • gm not yet earned. At the end of the current fiscal year, the various components of deferred revenue and unearned revenue reported in the governmental funds were as follows: Unavailable Unearned Prepaid developer fees . (General Fund) $ - $ 137,324 JCEF court enhancement funds (General Fund) - 18,428 Court fines (General fund) 318,242 - State seizures fund (Nonmajor g overnmenal fund) - 4.919 $ 318.242 $ 160.671 49 Ift4;sk 17.) '--r:\ i rt:'" TOWN OF ORO VALLEY, ARIZONA 1141':;: rpi, : NOTES TO THE BASIC FINANCIAL STATEMENTS FISCAL YEAR ENDED JUNE 30, 2004 4. Capital Assets Capitalasset activityfor the year ended June 30, 2004 was as follows: Beginning Ending Balance Increases Decreases Balance Governmental Activities: Capital assets not being depreciated: Land $ 10,021,765 $ - $ - $ 10,021,765 Construction progress in ro ess 4.663.250 14.273.355 - 18,93 6.605 Total capital assets, not being depreciated de reciated 14,685,015 14,273,355 - 28.958,370 Capital assets being depreciated: Infrastructure 1,499,764 399,004 - 1,898,768 Buildings and improvements 16,830,610 - - 16,830,610 Machinery, equipment and vehicles 5.091.315 394.447 (384.276) 5,101,486 Total capital assets being depreciated 23.421.689 793.451 (384.276) 23,83 0,864 Less accumulated depreciation for: Infrastructure astructure (31,036) (63,712) - (94,748) Buildings p uildin s and improvements (1,573,548) (390,542) - (1,964,090) Machinery, equipment and vehicles (2.833.989) (664.744) 374.751 _ (3,123,982) P Total accumulated depreciation (4,438.573) (1.118.998) 374,751 (5,182.820) Total capital assets, being depreciated,reciated, net 18,983.116 (325.547) (9.525) 18,648,044 Governmental activities capital a ital assets,net $ 33.668.131 $ 13,947.808 $ (9.525) $ 47.606,414 50 , /..ft e-y,-Tr, TOWN OF ORO VALLEY, ARIZONA ,uy: '_�.. 0 l_Mf :. NOTES TO THE BASIC FINANCIAL STATEMENTS FISCAL YEAR ENDED JUNE 30, 2004 Beginning Ending Balance Increases Decreases Balance Business-type Activities: Capital assets not being depreciated: Land $ 103,691 $ - $ - $ 103,691 Water rights 6,172,3 61 - - 6,172,3 61 Constructionin pro gess progress 719.229 3.396.918 (88.674) 4.027,473 gr' Total capital assets, depreciated beingde reciated 6,995,281 3.396,918 (88.674) 10,303.525 Capital assets being depreciated: Water system 47,159,089 2,718,292 - 49,877,3 81 y p Eq ui ment and vehicles 1.046.095 58.170 170 _ 1,104.265 Total capital assets being depreciated 48.205.184 2,776,462 - 50.981.646 Less accumulated depreciation for: Water system (8,483,565) (1,547,048)Wa - (10,030,613)y P Eq ui ment and vehicles (433.903) (109.217) - (543,120) Total accumulated depreciation (8.917,468) (1.656.265) - (10.573.733) Total capital assets, being depreciated,reciated, net 39,287,716 1,120,197 - 40,407,913 Business-type activities capital assets,net $ 46.282,997 $ 4.517.115 $ (88.674) $ 50,711,438 Depreciation expense was charged to functions/programs as follows: Governmental activities: General government $ 330,051 Public safety 337,601 Highways and streets 267,035 Culture and recreation 184.311 Total depreciation expense governmental activities $,1.118.998 Business-type activities: Water $ 1,65 6,265 CStorm water drainage Totaldepreciationexpense - business-type activities $ 1.656.265 51 t.r `k' l 1� ,..) /� ..\ ., ::t� ,:-tit rr,�. :.�/ PY; �� ��'�-� TOWN OF ORO VALLEY, ARIZONA ,� y NOTES TO THE BASIC FINANCIAL STATEMENTS FISCAL YEAR ENDED JUNE 30, 2004 5. Construction Commitments has active construction projects as of June 30, 2004. The governmental fund The Town p projects include road improvements and widening and Phase I of the reclaimed water project water infrastructure projects. At year end the government's commitments with and potablep contractors are as follows: Governmental Remaining Project Spent-to-date Commitment Calle Concordia Road $ 20,996 $ 59,000 La Canada Road extension 109,442 283,000 La Canada Road widening 231,780 7,493,640 Tangerine Road 3,262,156 3,223,102 Lambert Lane 18,196 307,519 Oracle Road improvement 212,831 54,968 Pusch View Road extension 353,873 50,000 First Avenue (Oracle to Tangerine) 453,976 143,832 $ 4.663.250 $ 11.615.061 Business-type Remaining Project Spent-to-date Commitment Phase I Reclaimed Water $ 566,279 $ 8,468,870 Potable -Mains 1,922,000 988,000 Potable- Boosters 112,000 20,000 Potable-Wells 698,242 230,019 Potable - Reservoirs 140,225 - $ 3.438'746 $ 9.706.889 52 Y�_7 Vii'' Vim') �- !TOWN OF ORO VALLEY,ARIZONA � � / I NOTES TO THE BASIC FINANCIAL STATEMENTS FISCAL YEAR ENDED JUNE 30, 2004 B. Interfund Receivables,Payables and Transfers As of June 30, 2004 interfund receivable and payables were as follows: Due From Nonmajor Governmental Due To Fund General Fund $ - 63 0.5 00 interfund receivables and payables is to cover a deficit cash balance at June 30, 2004 The above in the Municipal Debt Service Fund. Funds were received subsequent to June 30, 2004 to cover the deficit cash balance. Interfund transfers for the year ended June 30, 2004 consisted of the following: Transfers From General Transfers To Fund Public Transportation Fund $ 101,592 Nonmajor Governmental Fund 1,080,576 Storm Water Drainage Fund 64.000 $ 1.246.168 Transfers were made from the General Fund to subsidize the Public Transportation Fund and Storm Water Drainage Fund and to transfer funds to the Municipal Debt Service Fund to the g make the required principal and interest payments on outstanding bonded indebtedness. C. Long-term Obligations The Town has long-term bonds and loans payable issued to provide funds for the acquisition and constructionmajorcapital of ' ca ital facilities. The Town has also issued debt to refund earlier obligationsg funds. with higher interest rates. The debt is being repaid by various debt service absences arepaid bythe applicable fund where each employee is regularly paid, Compensated primarily the General Fund. 53 TOWN OF OVALROLEY ARIZONAig-Fi4, x-- ,:ry1.7=f- :�',.,: ���. Alt, . NOTES TO THE BASIC FINANCIAL STATEMENTSrtt. �� _ r FISCAL YEAR ENDED JUNE 30, 2004 -tern obligations for the year ended June 30, 2004 are as follows: Changes in long g Due Within July 1,2003 Increases Decreases June 30,2004 One Year Governmental Activities: Bonds and loans payable: 304 324 $ 456,290 Revenue bonds $ 6,594,116 $ 5,512,500 $ (1,802,292) $ 10,304,324 4,170,000 - (3,560,000) 610,000 190,000 Certificates of participation Loan payable 1.716.000 5,000,000 - 6 716.000 936.000 12,480,116 10,512,500 (5,362,292) 17,630,324 1,582,290 Less deferred amounts on: din (657,014) 28,566 (628,448) (57,132) Refunding - Premium 60 200 (1.944) 58.256 3.884 Total bondspayable and loans 12.480.116 9.915.686 (5.335.670) 17.060 132 1.529,042 Other liabilities: Compensated absences 707.817 361.210 (320.869) 748,158 535.855 Governmental activities long-term liabilities $ 13,187.933 $ 10.276.896 $ (5.656.539) $ 17.808.290 $ 2.064.897 Business-type Activities: Bonds and notes payable: Revenue bonds $ 38,535,884 $ 41,987,500 $(14,177,708) $ 66,345,676 $ 1,473,710 Notes payable 4.3 82,100 - (4.3 82,100) - - 42,917,984 41,987,500 (18,559,808) 66,345,676 1,473,710 Less deferred amount on: deferred amount on refunding - (1,515,258) 48,880 (1,466,378) (97,759)deferred amount on discount (380,140) - 122,943 (257,197) (17,795)44 493 deferred amount on premium - 1,025.155 (22.246) 1.002,909 Total bonds and notes payable 42.537.844 41,497.397 (18.410.231) 65.625.010 1,402.649 Other liabilities: Compensated absences 47.589 27,410 (14,463) 60.536 13.526 Business-type activities long-term liabilities $ 42.585.433 $ 41.524.807 $(18.424.694) $ 65.685.546 $ 1.416,175 54 tLiFA 1T..1 I.�?.Iii"•.. .t VALLEY, ARIZONA t.;)4, :� ORO t� TOWN � NOTES TO THE BASIC FINANCIAL STATEMENTS FISCAL YEAR ENDED JUNE 30, 2004 Debt service requirements on long-term debt at June 30, 2004 are as follows: Governmental Activities Business-type Activities Year Ending June 30 Principal Interest Principal Interest 2005 $ 1,582,290 $ 564,944 $ 1,473,710 $ 2,981,778 2006 1,437,638 568,142 1,907,362 2,923,235 2007 3,178,120 534,782 2,281,880 2,854,343 2008 3,057,352 440,550 2,557,648 2,772,559 2009 576,450 355,503 2,608,550 2,677,000 2010-14 2,937,166 1,435,237 13,237,834 11,688,495 2015-19 3,708,076 678,975 13,256,924 8,797,252 2020-21 1,153,232 50,676 14,421,768 5,630,396 2025-28 - - 14.600,000 1,669,719 $ 17.630.324 $ 4.628.809 $ 66.345,676 $ 41.994.777 During the year ended June 30, 2004, the Town issued $15,750,000 in excise tax revenue bonds, with an average interest rate of 3.42 percent; $3,400,000 in Municipal Property Corporation bonds, with an average interest rate of 3.91 percent; and $3,915,000 in Municipal Property Corporation bonds, with an average interest rate of 2.83 percent to advance refund $17,645,000 ($4,821,002 of governmental and $12,823,998 of business-type activities) of outstanding Certificates of Participation and Revenue Bonds and payoff the outstanding note payable due to the City of Tucson in the amount of $3,895,000. The net proceeds of $22,706,930 (after payment of $358,070 in underwriting fees, insurance, and other issuance costs) were used to purchase U.S. government securities. Those securities were deposited in an irrevocable trust with an escrow agent to provide for all future debt service payments of the refunded COPs and Revenue Bonds. As a result, the refunded COPs and Revenue Bonds are considered to be defeased, and the liability for those bonds have been removed from the Governmental and Business-type Activities. The Town advance refunded the COPs, Revenue Bonds and paid down the Note Payable to reduce its total debt service payments over the next 20 years by almost $303,303 and obtained an economic gain (i.e., difference between the present values of the debt service payments on the old and new debt) of$613,816. 55 ..^.:'y.y.:• rtG'd.,.lrp :nn�..:, F�,.�.�`r_v-reLj•F ORO VALLEY ARIZONA � ` ' � , TOWN OF r ,t� �-�� ` NOTES TO THE BASIC FINANCIAL STATEMENTS FISCAL YEAR ENDED JUNE 30, 2004 NOTE 4- OTHER INFORMATION A. Risk Management Valle Arizona, is exposed to various risks of loss related to torts; theft of, The Town of Oro y, p damage to and destruction of assets; errors and omissions; and natural disasters. The Town's insurance protectionprovidedby is the Arizona Muriicipal Risk Retention Pool, of which the Town is a participating member. The limit for basic coverage is for $2,000,000 per occurrence on a claims made basis. Excess coverage is for an additional $10,000,000 per occurrence on a follow form, claims made basis. The aggregate limit is also $10,000,000. No significant reduction in insurance coverage•occurred during the year and no settlements exceeded insurance coverage during any of the past three fiscal years. The Arizona Municipal Risk Retention Pool is structured such that member premiums are actuarial review that will provide adequate reserves to allow the pool to meet its based on an expected financialobligations. The pool obli ationshas the authority to assess its members additional premiums should reserves and annual premiums be insufficient to meet the pool's obligations. The Town is insured byArizona Municipal Workers Compensation Pool for potential worker related accidents. The Town is self-insured for unemployment insurance. Changes in the balances of claims liabilities during the past two years are as follows: 2004 2003 Unpaid claims,beginning of year $ - $ - Incurred claims(including IBNRs) 5,654 20,283 Claimpay ments (5,654) (20.283) Unpaid claims, end of year $ - $ - B. Contingent Liabilities Accumulated Sick Leave - Sick leave benefits provide for ordinary sick pay and are p cumulative but do not vest with employees unless an employee has exceeded 90 days of accrued sick leave, then one-half of the sick leave balance in excess of 90 days is paid upon termination. Unvested accumulated sick leave of Town employees at June 30, 2004, totaled $293,731. Lawsuits - The Town is a defendant in various lawsuits. In the opinion of the Town's attorney the outcome of these lawsuits is not presently determinable. 56 • ORO VALLEY,ARIZONA ` v{t ' tz4;' TOWN OF � ���� NOTES TO THE BASIC FINANCIAL STATEMENTS FISCAL YEAR ENDED JUNE 30, 2004 C. Retirement Plans Defined Contribution Pension Plan All non-peace officers and certain part-time employees of the Town participated in a defined contribution pension plan administered by the ICMA Retirement Corporation as a 401(a) plan during the months of July and August 2003. In September 2003 all non-peace officers and certain part-time employees began particpating in the Arizona State Retirement System. The payroll for the Town employees covered by this plan during the months of July and August 2003 was $1,454,970. The Town's total payroll for this period was $1,966,176. A defined contribution pension plan provides benefits in return for services rendered, provides an individual account for each participant, and specifies how contributions to the individual's account are determined instead of specifying the amount of benefit the individual is to receive. Under a defined contribution pension plan, the benefits a participant will receive depend solely on the amount contributed to the participant's account, the returns earned on investment of those contributions, and forfeitures of other participant's benefits that may be allocated to such participant's account. All non-peace officer full-time Town employees were required to participate in the pension plan within six months from the date they were hired. Contributions made by an employee vested immediately and contributions made by the Town vested after one year of service. An employee that leaves the employment of the Town is entitled to his or her contributions and the vested portion of the Town's contributions, plus interest earned. Each employee was required to contribute 5.0% of his or her gross earnings. The Town was required to contribute 7.0% of covered earnings. During the months of July and August 2003, the Town's required and actual contributions amounted to $101,848. The employees' contributions totaled $72,749. No pension ensiision changes occurred during the two months that the plan was in effect that provision affected the required contributions made by the Town or its employees. The ICMA Retirement Corporation held no securities of the Town or other related parties during the fiscal year 2002-03 or as of the close of the fiscal year. As previously discussed, the Town discontinued contributing to the 401(a) defined contribution plan and began contributing to the Arizona State Retirement System on September 1, 2003. 57 OWN OF T VALLEY ARIZONA ORO � r � � :,•�;�.���°�����. : NOTES TO THE BASIC FINANCIAL STATEMENTS FISCAL YEAR ENDED JUNE 30, 2004 Arizona State Retirement System Plan Description - The Town contributes to a cost-sharing multiple-employer defined benefit pension plan administered bythe Arizona State Retirement System. Benefits are established by state statute and generallyprovide retirement, death, long-term disability, survivor, and health insurance premium benefits. The system is governed by the Arizona State Retirement System Board according to the provisions of A.R.S. Title 38, Chapter 5,Article 2. The System issues a comprehensive annual financial report that includes financial statements y p . . required supplementary information. The most recent report may be obtained by writing and q pp �' the System, 3300 North Central Avenue, P.O. Box 33910, Phoenix, AZ 85067-3910 or by calling (602) 240-2000 or(800) 621-3778. FundingPolicy - The Arizona State Legislature establishes and may amend active plan members' and the Town's contribution rate. For the year ended June 30, 2004, active plan members and the Town were each required by statute to contribute at the actuarially determined rate of 5.7 percent (5.2 ercent retirement and 0.5 percent long-term disability) of the members' p annualcoveredpayroll.a roll. The Town's contributions to the System for the year ended June 30, 2004 was $341,135, which is equal to the required contributions for the year. This was the first year the Town contributed to the Arizona State Retirement System. Public SafetyPersonnel Retirement System (PSPRS) and Arizona Corrections Officer Retirement Plan (ACORP) Plan Description - The Town contributes to the Public Safety Personnel Retirement System (PSPRS), an agentmultiple-employer, public employee retirement system. During fiscal year ended June 30, 2003, the Town also began contributing to the Arizona Corrections Officer Retirement Plan (ACORP). This plan is also an agent multiple-employer, public employee retirement system administered by the Arizona Public Safety Retirement Personnel. These act as common investments and administrative agents to provide retirement and death and plans . benefits for public safety and corrections personnel who are regularly assigned disability hazardous employment dutyin the em to ent of the State of Arizona or a political subdivision thereof. All benefit provisions and other requirements are established by State statute. The PSPRS and ACORP issue publiclyavailable financial reports that include financial statements and required supplementary lement information for PSPRS and ACORP. The reports may be obtained by writing to Public SafetyPersonnel, 1020 E. Missouri Ave., Phoenix, AZ 85014 or by calling (602) 255- 5575. Funding Policy - Covered employees are required to contribute 7.65 and 8.50 percent of their Fun g p annual salaryto the PSPRS and ACORP, respectively. The Town is required to contribute the remaining amounts necessaryto fund the PSPRS and ACORP, as determined by the actuarial rem g basisspecified s ecified b y statute. The current rate is 8.93 and 8.74 percent of annual covered payroll for PSPRS and ACORP,respectively. 58 xe,A, TOWN OF ORO VALLEY, 1 s , ':1 ARIZONA � ; �v NOTES TO THE BASIC FINANCIAL STATEMENTS FISCAL YEAR ENDED JUNE 30, 2004 Annual Pension Cost - During the year ended June 30, 2003 (the date of the last available information), the Town of Oro Valley's annual pension cost of$311,931 and $21,643 for the PSPRS forp olice and the Oro Valley ACORP Dispatchers, respectively, was equal to the Town of Oro Valley's required and actual contributions. The required contribution was determined as part of the June 30, 2003 actuarial valuation using an en age actuarial funding method. Significant actuarial assumptions used in determining �' g the entry age e actuarial accrued liability include (a) a rate of return on the investment of present and future assets of 9.0%per year compounded annually, (b) projected salary increases of 6.5% per year compounded annually, and (c) additional projected salary increases and inflation of p 0.0%to 3.0%per year attributable to seniority/merit. The actuarial value of the Town of Oro Valley's assets was determined using techniques that smooth the effects of short-term volatility in the market value of investments over a four-year period. The Town of Oro Valley's unfunded actuarial accrued liability is being amortized as a levelercenta e of projected payroll on a closed basis. The remaining amortization period at p g June 30, 2003, was 20 years. Therecedin methods comply with the financial reporting standards established by the Thepreceding Governmental Accounting Standards Board. Three-Year Trend Information PSPRS Police Fiscal Year Annual Pension Percent Net Pension Ended June 30, Cost (APC) Contributed Obligation 2001 $ 331,950 100.0 % $ - 2002 353,121 100.0 - 2003 311,931 100.0 - Oro Valley ACORP Dispatchers Fiscal Year Annual Pension Percent Net Pension Ending June 30, Cost(APC) Contributed Obligation 2003 $ 21,643 100.0 % - Information prior to 2003 is not available for the ACORP. Additional historical trend information for the Town's PSPRS and ACORP is disclosed on page 62. Historical trend information is presented in order for a reader to assess the progress made in accumulating sufficient assets to pay pension benefits as they become payable. 59 145,17.11'4- NT , .11F47„ •+7,7, .i 1' :�� ;•,��'' • THIS PAGE BLANK 60 )rt Z n') i wy. 1,. rpt. _ :'V, Het'✓ r,�;1�-•: .;?'k�-a,5.:`iT'i=�Wi:-•�.. ��. ^iei, Required Supplementary Information 61 i ir. ., -.i 1 i s,-'..`'''- )0" _.,. - TOWN OF ORO VALLEY,ARIZONA 1/ l REQUIRED SUPPLEMENTARY INFORMATION PUBLIC SAFETY PERSONNEL RETIREMENT SYSTEM AND ARIZONA CORRECTIONS OFFICER RETIREMENT PLAN SCHEDULE OF FUNDING PROGRESS Oro Valley PSPRS Police (Over)Under Entry Age funded AAL Valuation Actuarial Actuarial (Over)Under Annual as a Percentage Date Value of Accrued Percent funded Covered of Covered June 30, Assets Liability(AAL) Funded AAL Payroll Payroll 1996 $ 1,591,318 $ 2,121,636 75.0 % $ (530,318) $1,440,638 (36.8)% 1997 2,239,319 2,614,221 85.7 % (374,902) 1,682,582 (22.3)% 1998 2,772,586 3,067,826 90.4 % (295,240) 1,890,076 (15.6)% 1999 3,623,182 3,956,207 91.6 % (333,025) 2,143,829 (15.5)% 2000 4,583,291 4,862,212 94.3 % (278,921) 2,493,062 (11.2)% 2001 5,766,661 5,168,557 111.6 % 598,104 2,948,683 20.3 % 2002 6,565,301 6,327,848 103.8 % 237,453 3,406,239 7.0 % 2003 7,939,646 7,226,436 109.9 % 713,210 3,660,509 19.5 % * Informationp rior to 1996 is not available. Oro Valley ACORP Dispatchers (Over)Under Entry Age funded AAL Valuation Actuarial Actuarial (Over)Under Annual as a Percentage Date Value of Accrued Percent funded Covered of Covered June 30, Assets Liability(AAL) Funded AAL Payroll Payroll 2002 $ - $ 433,070 - % $ (433,070) $ 395,386 (109.5)% 2003 $ 434,235 $ 749,710 57.9 % $ (315,475) $ 504,064 (62.6)% * Information prior to 2002 is not available. 62 Ei:---) 'f, 17-:` Oii,tig-1... Combining and Individual Fund Statements and Schedules 63 14/ 7,77QA . 4 • THIS PAGE BLANK 64 rrig?;IFFr.) i.f ..4. �L, ' • • fly::'t,1 �. Thi / '��aCtj w� NONMAJOR GOVERNMENTAL FUNDS SPECIAL REVENUE FUNDS Industrial Development Authority- accounts for the industrial development activities of the Town. Revegetation Assurances - accounts for monies received from developers to help ensure developments are properly revegetated to Town standards. State Seizures and Forfeitures- accounts for state police seizures and forfeitures received by the Town. Federal Seizures and Forfeitures - accounts for federal police seizures and forfeitures received by the Town. DEBT SERVICE FUND Municipal Debt Service - accounts for the payments of debt service on the 1996 Certificates of Participation and the 1999 Municipal Property Corporation Excise Tax Revenue Bonds. CAPITAL PROJECTS FUND Library Construction- accounts for the collection and capital expenditures of the Oro Valley Library. 65 • TOWN OF ORO VALLEY,ARIZONA I'-, ' J`� '' :' COMBINING BALANCE SHEET .:: !t > NONMAJOR GOVERNMENTAL FUNDS YL • =,,=`.`s, JUNE 30,2004 Capital Special Revenue Debt Service Projects Industrial Federal Nonmajor Development Revegetation State Seizures Seizures and Municipal Library Governmental Authority Assurances and Forfeitures Forfeitures Total Debt Service Construction Funds Assets Cash and cash equivalents $ 186 $ 1,014,595 $ 128,303 $ 155,291 $ 1,298,375 $ 944,219 $ 23,243 $ 2,265,837 Receivables,net Interest receivable - 1.158 6 - 1,164 582 - 1,746 Total assets $ 186 .$ 1.015.753 $ 128.309 $ 155.291 $ 1.299.539 $ 944.801 $ 23.243 $ 2.267.583 Liabilities and Fund Balances Liabilities Accountsa able $ - $ - $ - $ 2,112 $ 2,112 $ - $ - $ 2,112 p y _ - 630,500 - 630,500 Due to other funds - Deferred revenue - - 4,919 - 4,919 - - 4,919 Customer deposits payable - 757.785 - - 757.785 -- 757' 785 Total liabilities - 757.785 4,919 2.112 764.816 630,500 1.395 316 Fund balances Unreserved 186 257.968 123.390 153.179 534.723 314.301 23.243 872.267 Total fund balances 186 257.968 123.390 153,179 534,723 314.301 23,243 872.267 Total liabilities and fund balances $ 186 $ 1.015.753 $ 128.309 $ 155.291 $ 1.299.539 $ 944.801 $ 23.243 $ 2.267.583 66 r g V..1* t '1 :-•F''t„ .µe.Xl:•,- TOWN OF ORO VALLEY ARIZONA lz'i' ;x, j$ I ''N.:1 .1, ..cam .:4 r"�tt_. .A li-',, COMBINING STATEMENT OF REVENUES,EXPENDITURES,AND CHANGES IN FUND BALANCES-NONMAJOR GOVERNMENTAL FUNDS FOR THE FISCAL YEAR ENDED JUNE 30,2004 Capital Special Revenue Debt Service Projects Industrial Federal Nonmajor Development Revegetation State Seizures Seizures and Municipal Library Governmental Authority Assurances and Forfeitures Forfeitures Total Debt Service Construction Funds Revenues - - Intergovernmental $ - $ - $ - $ 15,000 $ 15,000 $ $ - $ 15,000 b78,298 166,932 245,230 - 245,230 Fines and forfeitures - - Investment earnings 3 12.275 (844) (3.906) 7.528 3.727 -- 11.255 Total revenues 3 12.275 77.454 178.026 267.758 3.727271.485 Expenditures Current 1,833 - 4,757 6,590 General government 10 - 1,823 - - - Public safety ' - - 1,214 111,313 112,527112,527 Debt Service _ - - 541,290 - 541,290 Principal retirement - - - 406,495 - 406,495 Interest on long-term debt - - - _ - _ 93,41593.415 Issuance costs - " Total expenditures 10 - 3.037 111.313 114,360 1.041.200 4,757 1.160.317 Excess(deficiency)of revenues over expenditures (7) 12.275 74,417 66.713 153.398 (1.037.473) (4,757) (888.832) Other financing sources(uses) Transfers in - - - - - _1,080,576 - 1,080,576 Issuance of refunding debt - - - - - 5,572,700 5,572,700 Payment to refunded debt escrow - - - ,(5.478.016) - (5.478.016) agent - -- - 1.175.260 - L175.260 Total other financing sources(uses) - Net change in fund balances (7) 12,275 74,417 66,713 153,398 137,787 (4,757) 286,428 Fund balances,beginning of year 193 245.693 48.973 86.466 381,325 176.514 28.000 585.839 year balances, end of $ 186 $ 257.968 $ 123.390 $ 153.179 $ 534.723 $ 314.301 $ 23.243 $ 872.267 67 OF ORO VALLEY,ARIZONA �_ b� `": TOWN �_ � ��1r)fi,"illi, — ;_ TOWNWIDE ROADWAY DEVELOPMENT IMPACT FEES FUND SCHEDULE OF REVENUES,EXPENDITURES,AND CHANGES IN FUND BALANCES-BUDGET AND ACTUAL FOR THE FISCAL YEAR ENDED JUNE 30,2004 Original and Final Variance with Final Budget Actual Budget Revenues Intergovernmental $ 11,591,000 $ 13,437,638 $ 1,846,638 Impact fees 803,000 1,189,848 386,848 p Investment earnings - 78,739 78,739 Other 4.000 24.717 20,717 Total Revenues 12.398.000 14,730.942 2.332,942 Expenditures Current Highways and streets 26,868,373 14,571,156 12,297,217 Debt Service 19,977 (19,977) Interest on long-term debt Total Expenditures 26.868,373 14,591.133 12.277.240 Excess(deficiency)of revenues over expenditures (14.470.373) 139.809 14.610.182 Other financing sources(uses) Transfers in 400,000 - (400,000) ) Issuance of long-term debt 5,576,000 - (5,576,000) Issuance of long-term loan payable - 5.000,000 5.000,000 Total other financing sources(uses) 5,976.000 5,000,000 (976.000) Net change in fund balances (8,494,373) 5,139,809 13,634,182 Fund balances,beginningof year 8.494.373 5,410,128 (3,084.245) balances,end of year $ - $ 10.549.937 $ 10.549,937 Fund 68 VALLEY,ARIZONA Idy- -0 is,v , , , _, TOWN OF ORO ALL ',..AL . - — ,• STATE SEIZURES AND FORFEITURES FUND ""`' • _ __ SCHEDULE OF REVENUES,EXPENDITURES,AND CHANGES IN FUND BALANCES-BUDGET AND ACTUAL FOR THE FISCAL YEAR ENDED JUNE 30,2004 Original and Final Variance with Final Budget Actual Budget Revenues Fines and forfeitures $ 10,000 $ 78,298 $ 68,298 Investment earnings - (844) (844) Total Revenues 10.000 77,454 67,454 Expenditures Current General government 2,361 1,823 538 Public safety 24.680 1.214 23,466 Total Expenditures 27.041 3.037 24.004 Excess(deficiency)of revenues over expenditures (17,041) 74,417 91,458 Fund balances,beginning of year 17.041 48,973 31,932 Fund balances,end of year $ - $ 123.390 $ 123.390 • 69 • Vis,: P � ..;.. .,,, f /; TOWN OF ORO VALLEY,ARIZONA FEDERAL SEIZURES AND FORFEITURES FUND SCHEDULE OF REVENUES,EXPENDITURES,AND CHANGES IN FUND BALANCES-BUDGET AND ACTUAL FOR THE FISCAL YEAR ENDED JUNE 30,2004 Original and Final Variance with Final Budget Actual Budget Revenues Intergovernmental $ - $ 15,000 $ 15,000 Fines and forfeitures 40,000 166,932 126,932 Investment earnings - (3.906) (3,906) Total Revenues 40.000 178.026 138.026 Expenditures Current Public safety 9L239 111.313 (20.074) Total Expenditures 91.239 111.313 (20,074) Excess(deficiency)of revenues over expenditures (51,239) 66,713 117,952 Fund balances,beginning of year 51.239 86.466 35.227 Fund balances,end of year $ - $ 153.179 $ 153.179 70 0-'14 pi 4...tti, Firk,,,..ia-, .:,... .!.?.,,,,s,,..��.,,\�:X_,i,1;,t.�'p' �i..�, . TOWN OF ORO VALLEY,ARIZONA "`-� "= ` ' MUNICIPAL DEBT SERVICE FUND SCHEDULE OF REVENUES,EXPENDITURES,AND CHANGES IN FUND BALANCES-BUDGET AND ACTUAL FOR THE FISCAL YEAR ENDED JUNE 30,2004 Original and Final Variance with Final Budget Actual Budget Revenues Investment earnings $ 3.000 $ 3.727 $ 727 Total Revenues 3.000 3,727 727 Expenditures Debt Service Principal retirement 541,290 541,290 - Interest on long-term debt 545,944 406,495 139,449 Issuance costs 166.600 93,415 73.185 Total Expenditures 1.253.834 1.041.200 212.634 Excess(deficiency)of revenues over expenditures (1.250.834) (1.037.473) 213.361 Other financing sources(uses) Transfers in 1,080,576 1,080,576 - Issuance of refunding debt - 5,572,700 5,572,700 Payment to refunded debt escrow agent - (5.478.016) (5,478.016) Total other financing sources(uses) 1.080.576 1.175.260 94.684 Net change in fund balances (170,258) 137,787 308,045 Fund balances,beginning of year 170.258 176.514 6.256 Fund balances,end of year $ - $ 314.301 $ 314.301 .71 T"7""::::., """"'-.1.' iii ,r� �>e*i•. • • THIS PAGE BLANK • 72 111141111 t,N.1 'NJ • . 1;17: F-.1. • STATISTICAL SECTION 73 *...,..0,T,---) 1 r-,i-77-1:-,. ---5.4„,... ....,_,..„.. .. . rl• -—1 • 00 N d' VI `p t` 0 N M E--- Q� O N M EA 00 — I.. d- to y G) O, E �c c:::, , a o 2 v) z E.'S 0 H 0o t--- U 0 =o o, o kr) EA O N ›..4 v) o cu < ci) W Tzi W Q `r' M Z W W zi o r—, cid 4t X 4E1 N" Ci) Q � a) v.) `C• W ril N.- .-c, ..-- . N N p4 O W 920 � � Z w kis O H ......., � 4 4.4 i E--4 E O HSO N Z < C) W o oo Ci OD cd W O C. o r-, O, o N En per., �? 4:4 EnZ E O a) 00 0, N Z CT M (., p O� � F!4 OO N 6 ud M d" O c� m a)O O Z w ,' N N Ch .---, itrIV.Ral') rJ,fr7iv, 1$77,1'i 1,,ii,;;,, r_ Q to r#,..,,,,,—,..,• •5')�_�_.��-n� o, .--41 00 O G� O CN1 CT O M to V). n a) N cat � to o y p Q N o vn 0 En O ..... w fas a bA r-,, a) N to > W 6 . N •1t oo d' tu bA O ON V) > 64 C Z W P4 r-. 00 O (/p tom.,, r) M 00 al o0 CT' o0 En W C7 ,--4 CS ' >-4 rin, � 4-1 W ►...� W < H � N o0 ►--a Q U 0, to au < v) r=) cn r-- kr) "CI N. CI o1 ° ZZZ CA oo a) r24W W 5 O E--4 E w � � O OD0 O 0 'C,.,.- �.. [--4 O V a cn L: C7 o cn r--, o CI) MI ' p, to E tom.,E a) .y :_ O t+ u. O M M00 • 0 0 ti) 00 ^+ a) .5 cua > M O P. V U N In w ct - - Mo N O 71 1- M d" N o ct O O w - N N o z t 1 • ,,,pf.,,, ,,,! OWN OF ORO VALLEY, �r: ' ' 4- ` ARIZONA ., >;z.. GENERAL GOVERNMENT EXPENDITURES `k,-„,r.: _ '`' BY FUNCTION LAST TEN FISCAL YEARS (UNAUDITED) Fiscal Year Highways Y Culture Claims General Public and Ended Government Sa and Capital and Debt fety Streets Recreation Outlay Judgements Service Total 111111111111111111111111111111111111.11111111111111111111111111111111 1995 $3,142,403 $3,125,016 $ 874,783 $ 126,861 $ 894,039 miimm$ - IMIIIIIIIIIIIIIIIII $ 306,585 milim$ 8,469,687 1996 2,778,347 3,670,514 1,216,141 407,484 167,662 398 ,348 8,638,496 1111111111111111111111111111111111111111111111 19972,613,830 4,240,676 1,224 977 500,850 4,951,011 1234 ,984 14,766,328 IIIIIIIIIIIIIIIIMIIEMINIIEIIIIIIII �......!.::.•.?tt......5... Y4F r4 �,A,<a;','t•.n4+.vSy j::fSi.^}..,:<.r....,:..•..• �1...Y..3:0:ma:•}'. S-�'...�.rrs•-e."n'",f�v2 S"s° 8 37 ,944 T : .� :r4 7 10,564,49 111111111111111111111111111111111111111 1111111111111111.1111111111111111111111111 IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIEIMIIIIIMI 81998 2,880,570 4,251,231 1,207,437 647,146 793,212878,843 12,015,714 3,317,668 5,240,616 1,149,073 636,302 19,809,5102000 4,128,050 6,216,390 1,855,146 637,084 5,537,058 600,000 1,0883415,077518870224,888,8682001 7,256,772 7,347,742 111211111111,924,119 1,193,846 3,628,630 2537,759 11111111111111111111111111111111111111111111 IIIIIIIIIIIIIIIIMil IIIIIIIIIIIIMIIIIIIIIIIIIIMII 2002 6,055,062 8,586,634 111131111111111111,144,676 1,474,667 8,094,782 2528,580 29,884,401 EIIIIMIIIIIIIIIIIIIIIIIIIIIIIIIIIIII 11111111111111 27,862,695 6,698,052 8,796,643 8,892,030 2,394,212 36,022,1402004 5,800,477 9,426,215 17,193,322 2,540,949 1,061,177 IIIIIIIE • Source: Oro Valley Finance Department :r,Yhrs;: iJflaYdN.?�;CZ0.,:>,amvvr ?Ty �r " if • A ,yS�:;h3f'+.f�.+ y�: <*r•:4f}4 :nLt .4: ;. 4,5 ! f+fSy3n,..£v,,,,„fy ^S4.„,f4•.�fh�+�i�'vr r`S5�,4° �b'Y 4+�{c<t�"�:yt >.ir rtfC.yvq .,4k �.L dai` < J S%�.$ :Ln?-/af•;nY 1x;:,,.'}4 �., ft � . < f .sov :�-,OD t '4 4s .... n. . .. :vrt,•,. �., ,,.:r.wr.j. !jr' r'f, QrcraT ri��4r s.�Cti,,, :{,{ � 12, )00 ■ 0y00`yt}akti y F >tr , ' i4 h 0ao�v�o401,,,f „ir +FinkIIIIII.11111.: aK2 �OV4YLw � er ✓� n" f9 ' 111111111r:: 0' ti)a`}4d^h,�ftw�tSf�#- ( f�+ t• Via. %.,,,:momj4:. y sof1fi+x�01V��Vi •' « k {�'>'wf'> 7�H , :ipIlk �� �K Rf44J,g,,, 4i.0.,f,} >, I. litopRpRogt.i. 1 11� <���� + yillimpur::".111r,,q111/ii: r u. #:Aviwir4v,,,,,,,,„,,,,, voc,,,,,,7,r _N:cA, p ' ;, •Li � . S " "� :�"��.' b .; ,Y6ifSYooYrS � ' ymr�. �s �” 4.#,.! w .�Tt� ,�T= 3:�( otsf %r ^:^f� ��' XVttfT•Vf-N00V.Aftty "L(. , !:„T, r e�� e,d:. aG",„.,"'".`.!,!,,,,,,z, rd ..1v,4.11•1111111#0110.10.1011014641•1111•11111111111101410114111 o'� • ag: r4J : S„ : 4ytfS, , ,}' � ; u�f.� y \ : �� .i �ng: . : i+Cy ¢ ,:':tfpg3y' t @�rftt3orN „%e � :s� :A ; �iS > 4eY hniK + % ! k> Kyp?Nfvtif �4 ea, : '4, 4::. d" t(%}6{...}>!i3,,vi:° :,+ +r 76 14.1 ��'. 1"F`to-ig, f 5 V ,i 1 3 r='` ..,.... TOWN OF ORO VALLEY,ARIZONA GENERALTOWN REVENUES BY SOURCE LAST TEN FISCAL YEARS (UNAUDI.1ED) Fiscal Fines Licenses Charges Contributions Year Inter- and and for and impact Ended Taxes Governmental Forfeitures Permits Services Donations Fees Interest Other Total 1995 $3,459,754 $ 2,455,266+ $407,933 $1,275,265 $224,759 $ 800+ $ 196,663 $384,742 $ 74,723 $8,479,905 1996 3,792,632 3,230,509 263,386 990,713 r 200,525_ 7,681 399,511 450,712 90,276 9,425,945 1997 3,865,996 5,380,979 280,644 941,888 198,948 28,052 804,907 498,158 48,036 12,047,608 1998 3,844,944 6,262,522 395,474_ 1,082,892 280,782 y 37,278 2,055,984 644,689 62,853 14,667,418 1999 4,518,732 6,780,403 331,032 1,411,820_ 239,945 2,001 2,472,834 960,231 50,902 16,767,900 2000 6,139,176 9,167,682 344,627 1,613,798 296,801 9,247 3,089,814 1,332,605 69,036 22,062,786 r r 2001 6,429,157_ 8,328,908+ 333,755 1,776,265 387,657 . 3,785 3,089,032 1,757,232 172,726 22,278,517 2002 6,674,725 12,991,454 316,339 1,430,157 549,440 r - 2,412,888 875,361 150,444 25,400,808 2003 6,217,798 11,786,746 307,570 1,784,568 633,406 37,331 885,371 _ (244,770) 178,376 21,586,396 2004 8,296,552 23,990,005 463,150 2,536,576 823,287 30,251 1,189,848 281,518 229,411 37,840,598 Source: Oro Valley Finance Department ? v :y r i?'.n`'%�x::yy<?<, ry K< wi wL>F r�y7 F 4�� 3..S• eJ s„�&Crt t s L adf > >>t,L xa,t�i yi iif t>r k<..,+�tsay�tS_f >� 'S;o say.sdr,::t,,,t,Y,;;'•.y£f..:r.•r.;f•*,.',;t-a�.,:F>..iCy..r;s!'>::.,ty.La:.,:°�t>.tt.c.n:c;;'+.1:�..rt..,:Y'::f:�.r.f%i.'1>f'3S Y'Lro:f;,••,,••>,y'-•f.nC.':924t..�£F.:L,'!j.J d.,:y.,»,r{j}L>' ,-t a., •f.+.;:fs.'!::•:: >.S 'G r/iy.)\ ,,,y, S X?.<:, ry.,tn...yb♦ •;>,;r;:f...,..?'aG:•t•'n�iMK^f»R'h"-i:dtjL�c"}':r,dy :jy.. to'L}•gJ•,k,;1,�+Y,j>.,�.:,,.Gf?ty?.3.r0...8i .,tjtrx:..!>:.:'a,R-:s; i•,.j;,!!c,fF....,<. :,A:rY:;l,.:,.s.;r ndi`�F i��;,'�.+:: `�.:.y::,Fr£sj•f,.G)•�,',%:%r':s;::Sf,.,yd ty.,y...!aS f.Y`S.a:r.::>.>-,:•At.t^.:..'a..1,!):no.n."'Y-.,...R.-...0:i::..:<N.,•-3f)w./d.n..i�°:. :atf c:•..,..ty .,/tSib:.a:,.f,r af-r:.,y•. ,,.J',t,F .•.S<,::f•Y,h•<o?.:r:x,,,,i•<4'afr.::--. -,.> ,:s:::,•-. q.vy•i,'o:,A<#ftp. a,.v:ry 0...,:;,.: .,,,,.?,,-. t%3r'':: i:.Y.a,.,,.,:,a•Y'>':S:fv.•:.w:-:.o.r y;,•.s... ;}':2+f!'.k",N'•f.;L.,,.,>:a<)••w,..t':•>n:?t:,..,.;•:..+d i s tt -,•:})t't):,z nc..--,' �....F::',.r,yaa.t. .a•�`'>,: S fa q.f5r,{/ n.a ,?:, :.st,.s..r. ...j,:04,,,.t1,¢:, ,S,4 .A.n.•, ...-.,•.d.oi"Y•..»iSy ..Jk). ?.51St.;::d:., y<..f'.L,.r,2,:.'•LY.S✓`�r"fs.hn E>•, ,ia:ti, ..i.3i! 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TOWN OF ORO VALLEY,ARIZONA :i. ) ,: -; fr6 = -4- ,,-,....-.,-,'. �:* 1�� s, STATE OF ARIZONA SALES TAX INFORMATION TAXABLE ACTIVITIES, TAX RATES AND DISTRIBUTION SHARES (UNAUDITED) Tax Distribution Business Activity Category Rate Share Mining-Severance 2.500% 80.00% _ Oil and Gas, Sand and Gravel 3.125%, 32.00% Trans ortaton-Persons and Freight 5.600% 20.00% p Utilities 5.600% 20.00% Communication 5.600% 20.00% Publishing lishin 5.600% 20.00% _ Job Printing 5.600% 20.00% Private Cars/Pipelines 5.600% 20.00% Prime Contracting 5.600% 20.00% Owner Buildings 5.600% 20.00% Restaurants and Bars 5.600% 40.00% Amusements 5.600% 40.00% Personal Property Rentals 5.600% 40.00% Retail (excluding food sales) 5.600% 40.00% Hotel/Motel 5.500% 50.00% Membership Camping _ 5.600% 40.00% Timbering- Severance (a) 80.00% 0 (a)The amount of severance tax levied on a severer engaged in the business of timbering shall be: (1) Two dollars thirteen cents per thousand board feet for timber products that are derived from ponderosa pine. (2) One dollar fifty-one cents per thousand board feet for timber products derived from all species except ponderosa pine. Source: Arizona Department of Revenue 78 777 TOWN OF ORO VALLEY, ARIZONA .1-A4 TRANSACTION PRIVILEGE (SALES) TAX RATES BY CATEGORY (UNAUDITED) Business Activity ty Category Rate Publishing 2.0% Printing and Advertising 2.0% Contracting 2.0% C g Retail Sales 2.0% Restaurants and Bars 2.0% Amusements 2.0% Miscellaneous 2.0% Hotel/Lodging Room Rentals 5.0% Source: Oro Valley Finance Department 79 !.4.'��C; .'",[4:K: 4-_-7.t. .�% rte-.) '�'l ri�S; •ti TOWN OF ORO VALLEY ARIZONA _._:.:V.'''''''':k'''.Tw. HISTORICAL A ND PROJECTED EXCISE TAX COLLECTIONS ($000's) JTJNE 30, 2004 (UNAUDITED) . Actual (a) Projected Fiscal Fiscal Fiscal Fiscal Fiscal Fiscal Year Year Year Year Year Year Revenue Source , 2000101 2001/02 2002/03 2003/04 2004/05 2005/06 Taxes 6 395 $20011/071255 6,675 $ 6,293 al 8,513 $ 7,990 $ 8,310 Town Sales and Franchise Tax $ _ ' 1,750 1,415 1,759 2,504 2,165 2,252 Licences and Permits . • 225 203 225 218 200 208 Fines State-Shared Sales Tax 1,845 2,289 2,323 2,687 2,834 2,947 State-Shared Income Tax 2 346 3 098 3,161 2,846 2,936 i 3,053 13, 3 680 S 13 761 $ 16,768 S 16,125 1 S 16,770 $ 12561 $ , ( I 1 Total 1 I es are resented on a modified accrual basis of accounting except for Town sales (a) All revenue sources p e resented on the cash basis of accounting per the Arizona Department of Revenue taxes which ar p Standard Industry Summary Local Taxes Collection Reports. Source: Oro Valley Finance Department • Pr- ..,:,:.,:, ed for bond re uirements only and the bond does not require Note. The above information is proved q ten years of data. 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SPECIAL ASSESSMENT BILLINGS AND COLLECTIONS LAST TEN FISCAL YEARS (UNAUDITED) Special Special Fiscal Assessment Assessment Year Billing , Collected 1995 120,000 119,620 1996 145,550 145,386 61 963 62,192 1997 r r ' 199831,424 54,651 1999 34,098 34,098 2000 3,138 3,138 . j + r 2001 - , - r 2002 2003 - - i 2004 - _ - - Source: Oro Valley Finance Department Includes only debt service funds. 82 8 Oii O 5 N c in'i..7 .o 1/40 O•ej O � .o 4 Men en N N N a., X O V ,4 W Q , b g =I 888888.E 8 OOOOOyo O 2 E--, 0' 0 0 0 0 0 OHO O vii I d• '� 'O 00 \C �O N N •o•v I .,fl 00 in 1O [ r-' ^ N p" W 0( °, N en en .o t,'0 '0 ... ..-. - .-' - N O N N 0 en O --- .D O O Off. N O en O O O O ,0 O .0 O -. e n en h h O. 00 0o t^c t' N N en t w v w,D O w 10 N O ON.,O.ON.in '�-or.00 'C v1 t.N N - v w w ^ E, '0 Cr, .p N 'O en O 0,'O N ' V. N 00 O 0\,O en 1/40 C r' 00 0o et ON 1 00 � � t7 n O � O ��� N O. N CO .0 1/40 1/40 'S O. O. O 00 Cr1 'C v1 1/40 N .O +,' N ,0 N Ow N N 0, N N N N O.0 0 ,:e v v v1 tt O 0 00 Q'Qw O.'O N t w N N U 1 N N N en en 4= .0 o V `D.D'0 h Cr1 Cr' v1 Cr' Cr'i Cr' en en en en en v'1 t1J E , ir9 69 ir9 69 ir9 69 s:.69 69 69 6/4 6A 69 i�4 69 (r9 69 69 i+9 69 69 i/4 i/9 69 6A S/9 69 69 i9 69 0 rn G et N 00 CI,-t,..---Cr' 00 •.:+ ... et 0o N en o en s,V 00 00 N cn Ow O.V 00 N L..,2 '- •-- Q ce ‘0 O 00 v1 t` -� 10 O. 0 U O, -- •-- O O O N 1,N N ,y < E- C - .zr 4 ',t NQN N 0 ez ta.. 69 69 49 69 69 69 g 69 69 72 NDE en en en en en en v1 v1 O O O 0 O O O0 O 00 O0 0 O 0 O O0 Cr' X 0 -0 E�N0 0 '0N N N0 en v} --. N O � in N O N N N Cr' N C'' N N W V i en Z.j V/ en Q1 W � V. � � V w w w w w w w w w w w ^ E�, C �- A „....-pv;,n 00 N eT 4 vi v1 v1 re10 O ,0 N O. O. O N 'C N N o0 en '-5 O t O � o •N 0 15' oO of '7 et � O O O -- eet 'S NNine^,nininini 0.000OOOooO0N. .NNN ty X 2 0HQ - 5N N N N N N N N N N N N N N N N N N N W S r,4r9 69 69 69 69 fig 69 69 69 69 69 69 69 4+9 69 6A 69 69 64 69 69 69 69 69 s O O O O O O O 0o 00 00 00 h v1 c O_ O .p � VD --" 10 'o eT d. O. O. en en en •�t ern CO a) 0 _ N z_ N N t� O�O'--^- r1 00 re, E.. y CO — �n 6 N O. '.o N N c en '.c N e -� v;O Q. en -0 '0 O - ' 'p 'p O. O. O. O. N O •-•' O O. O. 00 v1 en inc.,..P. N O. O. O. O. t".....O w ON.0 00 00 00 et N V 6 t� Q ; W69 E 69 6, 69 69 69 6A 4 iA 6A 69 69(A 69 69 69 (W.1 17, g . L v1 ,0.z.•,,r) .p '0- 00 .1 � in ' , O .D tel O. O O O O O e-1 L 00 O. en v 1 .". 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N OOOOOO O O O yp ,o0 .. w, , t� N n 0 t� t, - . --. .-. -•, = 0 r-- O -FE -o en en en en en N N N N .--1 0E MI = '5 W 69 69 69 ft 69 69 69 69 69 69 69 69 69 69 69 69 69 69 69 69 0 5 O 0�0 v.) O v1 v1 O v1 v-, t......-. N v- 'o z.o --. 1/40 eg O pp --. et ON.O t�F 00 'D Ow t^Cr,.., O __ 00 t-- N O O0 --' 00 O -- C y > O C O N N N N N5N N N N N .-. •U = Q F. -� x C4 go 6, 69 69 69 69 569 4.) 69 69 (A , J 0 N 00 O Cr' Cr'gr Cr' v1 v1 v., O O O O O vn in v1 v1 O v1 y< v1 O en CO 00 400 00 t- N en 'C N V N N N N O N _ N 00 .--- N '0 z N C71 v1 00 en•-. O v1 en en 00 00 VI WI - O. H -o v e3 eT epi O. O. re-, rn •-- v1 N O N M oo.O v1 -- Nen en en O. h 4, 0 e0 en 1D 1G 1G 1D `10 N. N. N N N N. 1/40 VD N N N N N N � • > �O N N N Cl N-.�..N N N N N N N N --" N N N N N N w4.; 69 69 69 69 69 5 69 49 69 69 69 69 69 69 69 69 69 69 69 69 69 rP E 0 0 in N '0 - oo o o o o O in o o in o O in o o o o in in o o cc,in .... ° � °O o 0 e V G .-. in N O0 v1 en O v1 ON v1 t+ N Cr' N N N N N N N N N t- -- vl N N �r • p,y 0 CO ..-,. 'p 'p Cr' 00 et 5 en O .-� N N � is N N N N N N N N N o0 --. O\ en O. -0- a\ o C! `n o 0 O o00 00 000 Cc Cc eT et eT ,:r 0 � .G .O .D •O .D '0 10 � Q.O.OO.^O.O.ON..,O 4, M < E 6A 69 6A 69 69 69.49 69 69 69 69 49 69 69 69 49 69 69 69 69 69 69 69 69 69 69 69 69 % P 1.4 ii bD -.. N en et O h .O t� 00 O. O ••-, N en •I' v1 .O N 00 O. O --- N en 0 v1 � N 00 �.., O cn O. O N N N N N N N N N '� 0 Or. 0 0 0 0 0O0 0 00 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 U = 0 --, N N N N N=N N N N N N N N N N N N N N N N N N N N N N N N erg W .-, r'• ,:,;,,,- , �,,,, .,,,,r) i t -;.�ry r[- v i*,._ 40 1 ,-,,,, TO WN OF ORO VALLEY,ARIZONA ' , , :_4,.% ` :_ J`""`�'�.‘ i. .- STATEMENT OF BONDED INDEBTEDNESS JUNE 30,2003 (UNAUDITED) Total General Obligation Bonded Debt None Primary Assessed Valuation $ 341,973,974 Secondary Assessed Valuation 358,081,078 Estimated Full Cash Value 3,128,410,721 Source:2004 State of Arizona Department of Revenue Abstract of the Assessment Roll Direct General Obligation Bonded Debt Outstanding None Water and Sewer Revenue Bonds Outstanding None Street and Highway User Revenue Bonds Outstanding None Issue Maturity Balance Series Purpose Dates Outstanding Municipal Property Corporation Bonds 1996 Water Company 07/01/26 $ 16,898,792 Certificates of Participation 1996 Land Acquisition 07/01/17 610,000 Municipal Prop.Corp.-Excise Tax Rev.Bonds 1999 Dev. Serv.Bldg. 07/01/09 1,025,000 Municipal Prop.Corp.-Excise Tax Rev.Bonds 1999 Water Improvements 07/01/19 2,640,054 Excise Tax Revenue Obligations 2000 Land Acquisition 07/01/20 1,03 5,000 Municipal Prop. Corp.-Excise Tax Rev.Bonds 2001 Water Improvements 07/01/20 4,562,133 Municipal Prop. Corp.-Excise Tax Rev.Bonds 2001 Library 07/01/20 2,731,824 P P Municipal Prop. Corp.-Senior Lien Water Project 2003 Water Improvements 07/01/28 32,644,715 Municipal Prop. Corp.-Excise Tax Rev.Refunding 2003 Refunding-Water 07/01/19 10,345,694 Municipal Prop. Corp.-Excise Tax Rev.Refunding 2003 Refunding-General Fund 07/01/19 5,512,500 84 TOWN OF ORO.VALLEY, ARIZONA • •, DIRECT AND OVERLAP P ING GENERAL OBLIGATION BONDED DEBT JUNE 30, 2003 (UNAUDITED) General Obligation Approx. Net Debt Overlapping Jurisdiction Bonded Debt Percent Amount State of Arizona None 0.80 None Pima County 229,457,000 6.36 14,593,465 Pima County Community College District 80,785,000 6.36 5,137,926 Pima County Flood Control District 3,805,000 7.30 277,765 Amphitheater Unified School District No. 10 99,985,000 34.49 34,4.84,827 Valley of Oro V y None 100.00 None Total direct and overlapping general obligation bonded debt $ 54,493,983 Direct and Overlapping General Obligation Debt Ratios As %of As % of Per Capita Town's Town's Bonded Debt Secondary Estimated Population Est. Assesssed Full Cash @ 37,700 Valuation Value Direct General Obligation Bonded Debt $ - 0.00% 0.00% Direct and Overlapping 1,445.46 15.22% 1.74% General Obligation Bonded Debt 85 7110) TOS OF ORO VALLEY, ARIZONA COMPUTATION OF LEGAL DEBT MARGIN JUNE 30, 2003 (UNAUDITED) Net secondary assessed valuation $ 358,081,078 Calculation of 20%Debt Limitation 20% of secondary net $ 71,616,216 assessed valuation Bonds outstanding 71,616,216 Net 20%Debt Limitation Calculation of 6%Debt Limitation 6% of secondary net 21,484,865 assessed valuation Bonds outstanding 21,484,865 Net 6%Debt Limitation $ 93,101,080 Total Bonding Capacity • obligation bonds (1) Under Arizona law, cities can issue general ob for general municipal g purposes up to an amount not exceeding 6% of assessed valuation. cities issue additional general obligation bonds for (2) Under Arizona law, cities can • services, such as water, sewer, lighting, parks and recreational supplying specific facilities up to• • an amount not exceeding 20% of assessed valuation. Source: Oro Valley Finance Department 86 TOWN OF ORO VALLEY,ARIZONA ,vn; ..' �-;s:. •�r:�:.•. .�:.„:�:�� l"cit PROPERTY TAX ASSESSMENT RATIOS AND COMPARATIVE SECONDARY ASSESSED VALUATION HISTORIES TAX YEARS 1995 THROUGH 2004 (UNAUDITED) 1 1996 I 1997 I 1998 I 1999 I 2000 12001 12002 2003 ' 2004 Property Classification l 1995 Mining 29% 28% 27% 26% 25% 25% 25%+ 25% 25% 25% _ Utility 29% 28% 27% 26% 25% 25% 25% 25% 25% 25% Commerical and Industrial 25% 25% 25% 25% 25% 25% 25% 25% 25% 25% _ 16% 16% 16% 16% 16% 16% 16% 16% 16% 16% Agriculture and Vacant Land _ Owner Occupied Residential 10% 10% 10% 10% 10% 10% 10% 10%_ 10% 10% p - . Leased or Rented Residential 10% 10% 10% 10% 10% 10% 10% 10% 10% 10% Railroa Private Car Company& 26% 24% 23% 22% 21°/‘; 21% 21°A; 21% 20% 21% d, Airline Flight Property - - - - - - - Source: Arizona Department of Revenue 87 y,•_,•j. t';t ?-.Aad. := TOWN OF ORO VALLEY, ARIZONA COMPARATIVE SECONDARY ASSESSED VALUATION HISTORIES TAX YEARS 1995 THROUGH 2004 (UNAUDITED) Pima State of Tax Year County Arizona 2004 5,633,321,019 44,480,893,202 2003 5,233,293,681 40,861,415,479 2002 4,837,084,048 36,825,660,973 2001 4,491,395,307 34,468,574,240 2000 4,196,858,967 32,071,738,214 1999 4,616,303,822 28,184,077,278 1998 4,915,883,987 26,793,103,101 1997 3,247,512,122 25,3 84,679,197 1996 3,218,883,605 23,022,330,962 1995 3,150,104,570 22,179,317,949 Source: Arizona Department of Revenue Note: The above information is provided for bond requirements only and the bond does not require ten years of data. 88 TOWN OF ORO VALLEY, ARIZONA `5j:�.•`,` ." `^_6,v-it!, ASSESSED VALUATIONS AND TAX RATES JUNE 30, 2003 (UNAUDITED) Arizona legislation limits increases in assessed valuation of residential properties, limits total property taxes, levied by counties, cities, towns, community college districts, fire districts and school districts, establishes maximum limits on annual expenditures by counties, cities towns, community college districts, fire districts and school districts subject to adjustments for population and cost of living changes. There is no provision which would limit the amount of taxes which may be levied or expended to pay debt service on existing or future bond issues. Direct and Overlapping Secondary Assessed Valuation and Tax Rates per$100 of Assessed Valuation (1) 2004 Secondary Primary Tax Rates Assessed Assessed Per$100 of OverlappingMunicipality Valuation Valuation Assessed Valuation State of Arizona $ 44,480,893,202 $ 41,886,818,760 0.0000 Pima County 5,633,321,019 5,423,410,351 5.3430 Pima Cty. Comm. College Dist. 5,633,321,019 5,423,410,351 1.3428 ty _ Pima CountyLibrary District 5,633,321,019 N/A 0.2124 Pima Cty.Flood Control Dist. 4,907,357,254 N/A 0.3546 Pima Cty.Fire Dist. 5,633,321,019 N/A 0.0427 Central AZ. Water Conservation District 5,633,321,019 N/A 0.1200 Golder Ranch Fire District 174,394,237 N/A 1.9500 Amphitheater Unified School District 1,038,222,730 996,784,900 6.3375 Total Tax Rates Per $100 of Assessed Valuation: Total Tax Rates Inside Town of Oro Valley, Golder Ranch Fire District and Amphitheater Unified School District District No. 10 15.7030 Total Tax Rates Inside Town of Oro Valley, and Amphitheater Unified School District No. 10 and Outside Golder Ranch Fire District 13.7530 (1) Based upon 2004 data obtained from the tax rolls of the Arizona Department of Revenue. 89 Ikt,i VI., •' ..> %:_..:�...r: ;;^YS- ;:. , ,' t✓ ._irt, :',: .fir TOWN OF ORO VALLEY ARIZONA +;��:�i',:,-\ ,,-.�':�ti=�w ,;.. ;i:� PRIMARY AND SECONDARY PROPERTY TAX RATES DIRECT AND OVERLAPPING GOVERNMENTS (PER$100 OF ASSESSED VALUE) LAST TEN FISCAL YEARS (UNAUDITED) Pima County Amphi. Flood Pima County Central Unified Fiscal State of Pima Control Comm. Free Arizona Fire School Town of Year Arizona County District College Library Project District Distirct Oro Valley Total 1995 0.4700 5.063 8 0• .3596 1.2183 0• .2124 0.1400 0.0539 8.1646 0.0000 15.6826 _ 1996 0.0000 5.0138 0• .3596 _ 1.2433 0• .2224 0.1400 0.0549 7.6789• 0.0000 14.7129 ' 1997 0.0000 5.1139 0• .3296 1.1836 0• .2224 0.1400 , 0.0517 7.5099 0.0000 14.5511 1998 0.0000 5.1802 0• .3246 1.1922 1 0.2224 0.1400 0.0515 7.0881 0.0000 14.1990 1999 0.0000 5.5287+ 0.3046 1.3696 0• .2024 0.• 1400 0.0511 7.1715 0.0000 14.7679 2000 0.0000 5.5193 0.3046 1.5574 0.2024 0.1300 0.0495 6.8816 0.0000 14.6448 _ 2001 0.0000 5.4644 0.3546 1.5470 0.2124+ 0.• 1300 0.0488 7.4427 _ 0.0000 15.1999 2002 0.0000 5.3759 0.3546 1.5333 0• .2124 0.• 1300 , 0.0458 7.0247 , 0.0000 14.6767 2003 0.0000 5.3587+ 0.3546 1.4884 0• .2124 0.1200 0.0441 _ 6.7601 0.0000 14.3383 2004 0.0000 5.3430 0.3546 1.3428 0.2124 0.1200 _ 0.0427 6.3375 0.0000 13.7530 1 Source: Arizona Tax Research Association Note: TheP rimary and secondary property tax rates for Pima County,Community College and the Amphitheater Unified School District jurisdictions are added together in the table. 2004 Property Tax Rates Town of Oro State of Arizona Valley ---\/- 0.0000 Pima Amphi.Unified 0.0000 Co. unty3587 School Distirct �x''K ' � f 6.7601 ��S • 'L ) ; - ' �ad r$H� h 4 r'�aC t Fire District ',:p..-k,,`4,1,.ff 0.0441 .. ` Pima County Flood Control Central Arizona7 District Project Pima Comm. 0.3546 0.1200 County Free College Library 1.4884 0.2124 90 0.,......,,_.„--,11.;%..:,,.. igyTf R,1BONA . St.,;71filji. L�,. 1 TOWN OF ORO VALLEY, NET ASSESSED AND FULL CASH VALUES OFT LE PROPERTY LAST TEN TAX YEARS (UNAUDITED) Secondary Total Tax Assessed Full Value to Full . Type T e Value Cash Value Cash Value 1995 Secondary 119,234,229 1,012,388,701 11.78% 1996 Secondary 130,338,325 1,134,829,789 11.49%o 1997 Secondary165,265,200 1,443,744,912 11.45% 1998 �' Second 178,766,882 1,547,098,212 11.55% 1999 Secondary196,647,641 1,660,678,769 11.84% 2000 Secondary 220,687,234 1,874,760,891 11.77% 2001 Secondary257,234,738 2,152,330,708 11.95% 2002 Secondary 294,649,424 2,536,114,768 11.62% 2003 Secondary 326,699,884 2,811,190,086 _ 11.62% 2004 Secondary 358,081,078 i 3,128,410,721 11.45% _ Source: Pima County Assessor .................................................................................................................................... 400, 000,000 0 , 0 00 ........................................................ ..................................:............................................................. , ^vim r7:!:!;350 000 000 ................... ...... :!:.:::::::i..;,:::::::::::::::.:::,::!:;:;!:.!:77.iliiiiilliiiiiiis:is,uuoi:o::.d.m:i!:::::i,, 0 0 00 0 00 3 0 .:, 250, 000 : ,,,..H .„.iiiiiiiiiiiiii;iii::,1.,:,it,:::,,,,,,.,,,,,.,,.:„.:,,,:,..,,,,:,,........... . ::. ......................... o ,,,,,,,,,:,,,,,,,,..:..,,.. . , , 200 ....... ......................... .. ............., ........... ........................... Y.. 1 ......::::::::::::::„.„.tm=iiiiiiiii .,.,i111,.,,..:,,;.:,,,,,,E,,,,,,,,,:........... ,50,000,000 0 , 0 0 0 0 00 . . :::::::::::....:.... ............................ .....................................::::::::::::': iii � i?Ee'E1 100,000,000 0 00 , 0 0 0 500, 000 : ...:...:::.iiiiiiiiiiiiiiiiiiimili;;i.ini.i.1.1.,,.:,..i:,,,:::.:,;..i.:,.:::::::::::::::.............:.......:...........„.........,.......,.......„.,.:„...,.:,:„.,,,,,,............,..:.-::::::.....: ...................... .:::::::::::::::::::::::.................................... i f , h ('�rO ('1 ('�o�`b o�°� 00 OP` 01' 'f)) OZP' wcb� p\C5 w� t.\ `� VO O �O (19 91 .::;i:14.7 i.;1:::,) j", ORO VALLEY,ARIZONA r'.f:'``r: til-;22_174 {--1 'li,-.',-7t:i:_1 TOWN OF :u�"�_.__. . i-i ., SECONDARY ASSESSED VALUATION BY PROPERTY CLASSIFICATION LAST FIVE TAX YEARS (UNAUDITED) 2000 2001 2002 2003 2004 Secondary Secondary Secondary Secondary Secondary Assessed Assessed Assessed Assessed Assessed Property Class Valuation Valuation Valuation Valuation Valuation Utilities $ 4,356,308 $ 4,224,746 $ 5,432,662 $ 5,478,784 $ 5,577,454 Commercial and Industrial 27,360,621 38,352,223 45,660,391 53,091,845 51,543,497 Agricultural and Vacant 26,182,766 30,114,158 35,879,382 36,099,358 38,447,925 Residential(owner occupied) 154 208,262 171,628,461 193,762,244 217,987,550 244,278,100 Residential(rental) , 8,579,277 12,915,150 13,914,745 14,042,347 _ 18,234,102 , Commercial Historical Property - - $ 220,687,234 $ 257,234,738 $ 294,649,424 $ 326,699,884 $ 358,081,078 Source: Arizona Department of Revenue,Abstract of the Assessment Role and the Assessor of the County. 92 ORO VALLEY,ARIZONA TOWN OF _.�,. ���._. .. ;:.;• SECONDARY ASSESSED VALUATION OF MAJOR TAXPAYERS JUNE 30,2003 (UNAUDITED) 2004 As%of Town's Secondary Total Secondary Assessed Assessed Taxpayer Valuation Valuation Con uistador CHH Tucson Partnership(El q Hotel) 14,654,679 4.49% Barclay Group 2,516,468 0.77% Ventana Medical Systems Inc. 2,346,445 0.72% Tucson Electric Power 1,844,217 0.56% Target Corp. 1,685,304 0.52% Fri Rock Ridge 1,655,514 0.51% Home Depot 1,625,106 0.50% Qwest 1,547,724 0.47% Rancho Vistoso Center LLC 1,421,425 0.44% Boulder Canyon 1,224,000 0.3 7% Totals $ 30,520,882 _ 8.52% Source: Pima County Assessor's Office 93 y 4:17,-e:�Tj z. ,�,� ,�+._ .0 OF OROARIZONA - I TOWN �'�-:.� ,Y��` F._, VALLEY, = �. —r: HISTORICAL AND PROJECTED WATER SYSTEM REVENUES, EXPENSES,DEBT SERVICE AND COVERAGE (UNAUDITED) Historical Actual 2000/01 2001/02 2002/03 2003/04 Revenues: Water revenues $ 6,719,666 $ 8,176,260 $ 8,599,299 $9,093,069 Water connection fees 1,3 99,574 1,185,3 86 1,082,727 1,668,623 Alternative water connection fees 275,526 194,099 188,250 248,093 Other revenues 495,386 536,881 510,444 907,761 Interest income 924,112 498,535 (50,977) 285,118 Total revenues 9,814,264 10,591,162 10,329,743 12,202,664 Expenses: Personnel 1,125,462 1,334,751 1,519,058 1,647,054 Operations&maintenance 1,929,066 2,443,757 3,057,416 2,505,747 CAP water costs 211,142 236,142 500,681 390,936 Total expenses 3,265,670 5,048,275 5,077,155 4,543,737 Net water system revenues 6,548,594 5,542,887 5,252,588 7;658,927 y _Water supported debt service: 1996 Water related debt service 1,826,875 1,935,563 1,938,313 1,454,400 1999 Water related debt service 263,808 269,130 269,285 263,685 2001 Water related debt service 426,225 426,950 _ 436,226 413,896 2003 Refunding debt service - - - 367,419 2003 Water related debt service - - - 1,247,396 Total water supported debt service $ 2,516,908 $ 2,631,642 $2,643,824 $3,746,796 Net water system revenues , d debt service coverage2.60 x _ 2.11 x 1.99 x 2.04 x Source: Oro Valley Finance Department Note: The above information is provided for bond requirements only and the bond does not require ten years of data. Historical financial statements re-stated to reflect Water Connection Fees Fund and Alternative Water Connection Fees Fund. 94 V'''-,k:.Ire) hi tk IP.,;:tti T`r �••. VALLEY,ARIZONA ,ifri''44' '� .,TOWN OF ORO ;.-1,-g+�.. .• � . r7 ORO VALLEY WATER UTILITY SCHEDULE OF RATES,FEES AND CHARGES . (UNAUDITED) SCHEDULE OF WATER RATES EFFECTIVE JULY 17,2004 METER BASE RATE COMMODITY COMMODITY COMMODITY SIZE includes TIER 1 TIER 2 TIER 3 ZERO gallons $1.98 per 1000 gallons $2.68 per 1000 gallons $3.58 per 1000 gallons 5/8 x 3/4 $12.65 0-10,000 10,001-25,000 over 25,000 3/4 x 3/4 $18.95 0-10,000 10,001-25,000 _ over 25,000 1 $31.50 0-16,000 16,001-27,000 over 27,000 1.5 $63.15 0-38,000 38,001-64,000 over 64,000 2 $101.00 0-80,000 80,001-134,000 over 134,000 3 $202.00 0-186,000 186,001-311,000 over 311,000 4 $316.00 0-169,000 169,001-283,000 over 283,000 6 $631.00 0-1,800,000 1,800,001-3,006,000 over 3,006,000 8 $1,262.00 0-1,800,000 _ 1,800,001-3,006,000 over 3,006,000 Golf course usage to be billed at Tier 1 rates. Tier 2&Tier 3 will be implemented for any usage in excess of ADWR allotment and will be billed after ADWR Annual report is filed. The Town entered into an agreement at the time of acquisition of the Rancho Vistoso Water Company that provides for a special rate for the Vistoso Partners golf courses. The commodity rate for any Vistoso Partners golf course is$194.00 per acre foot of water effective October 4,2002. This rate is valid until an alternative source of water can be provided to the golf courses. The following rates or service charges are effective July 17,2004: Service Charge Amount New Service Establishment Fee $20.00 Service Reconnection Fee $40.00 Service Reconnection Fee(after 5pm) $70.00 Meter Re-read Fee $20.00 Insufficient Funds/Return Check Fee $25.00 Document Reproduction Fee $1.50/Sheet Document Reproduction Fee Cost Backflow Prevention Install.Permit $35.00 Customer Requested Meter Test Cost Customer Security Deposit(basic) $40.00 Destruction of Property Cost Hydrant Meter Deposit $1,200.00 , Delinquent Payment Fee $5.00 Service Area Inclusion Fee $5.00 per acre or$2.00 per lot A 5.6%sales tax will be added to meter installation fees. 95 OF ORO VALLEY, i1 - `' `` - - TOWNARIZONA l �:=Z41 ,. �• wJT L, .,,,tom. , !'. - W.L J =� ', ORO VALLEY WATER UTILITY -' -- SCHEDULE OF RATES,FEES AND CHARGES (UNAUDITED) Meter Installation Meter Size Charges AWRD Fees (in inches) Effective 7/6/2002 Effective 8/13/1996 5/8"X 3/4" $150.00 $300.00 3/4"X 3/4" $175.00 $450.00 1"standard $200.00 $750.00 1.5"standard $390.00 $1,500.00 1.5"turbine $560.00 $1,500.00 2"standard $560.00 $2,400.00 2"turbine $550.00 $2,400.00 2"compound $1,365.00 $2,400.00 3"turbine $875.00 $4,500.00 3"compound $1,700.00 $4,500.00 4"turbine $1,600.00 $7,500.00 4"compound $2,750.00 $7,500.00 6"turbine $3,240.00 $15,000.00 6"compound $4,925.00 $15,000.00 8"turbine Time&Materials N/A Multifamily Per Unit Cost N/A $144.00 Turf Uses(per acre) Golf course turf areas $3,680.00 Lakes&opern water $4,640.00 Turf for cemeteries, $2,880.00 parks&schools Turf areas with 10 $2,880.00 acres or more turf Note: 5.6%sales tax must be added to meter installation fees. 96 • . N ; s�cj,.��, ,�� .: TOWN OF ORO VALLEY,ARIZONA x= p. M � ,,,��-��� ORO VALLEY WATER UTILITY SCHEDULE OF RATES,FEES AND CHARGES JULY 5,2000 (UNAUDITED) Potable Water System Development Impact Fee Schedule Single-Family *Comercial/ Irrigation(non-turf) Meter Size Residential Industrial Fees Meter Fees 5/8"X 3/4" $1,774 $4,080 $3,193 3/4"X 3/4" $1,774 N/A N/A 1" $4,435 $10,200 _ $7,983 1 1/2" $8,870 $20,400 $15,965 2" $14,192 $32,640 $25,544 3", $65,280 $51,088 4" ___ $102,000 $79,825 6" ___ $204,000 $159,650 8.. $408,000 _ $319,300 The meter component of the fee for master-metered residential uses is the higher of$834 per unit or the single-family residential fee(s)for the master meter(s)* Individual metered residential units shall pay the single-family residential fee for each meter. Turf usage fee is$18,351 per acre of turf. The total Potable Water System Development.Fee for commercial/industrial and master- metered residential uses is the sum of the meter component set forth above and the following supplemental fee based on fire flow for uses requiring more than 1,000 gpm of fire flow (based on the total area of development and the fire flow requirement as determined by the Fire Department): Fire-Flow Requirement SDIFs 1,001 - 1,500 gpm $3,230/meter 1,501 -2,000 gpm $14,847/meter 2,001 -2,500 gpm $26,151/meter For residential uses, this fee shall be paid when construction permits are issued. For all other uses, this fee shall be paid when a water meter is obtained. If water system enhancements are required in order to have sufficient capacity to provide water to a development which will be served pursuant to a line extension agreement, the line extension agreement may provide either that the developer pay the full fee provided by this section at the time of entering into the line extension agreement or that the developer construct all system enhancements needed to serve the development which is the subject of the line extension agreement. 97 ORO VALLEY, ARIZONA _ ,`, ��S . _ .167.�- TOWN OF � : _ ' ORO VALLEY WATER UTILITY SCHEDULE OF RATE,FEES AND CHARGES EFFECTIVE JULY 17,2004 New Development Hydraulic&Design Review Fees Hydaulic Review Design Review Base Sheet $155.00 $260.00 Each Add'l Sheet $25.00 $15.00 Plan Revision N/A $15.00 Each Fees include 2 hydraulic reviews and 2 design reviews. Additonal reviews to be$85.00 per review. Fees to be collected prior to receipt of approved plans. New Development Construction Inspection Fees Length of Water Main Fees (in feet) 0-500 $365.00 501-1000 $585.00 1001-1500 $805.00 1501-2000 $1,205.00 2001-2500 $1,245.00 2501-3000 $1,465.00 3001-3500 $1,685.00 3501-4000 $1,905.00 4001-4500 $2,125.00 4501-5000 $2,345.00 Repeat Pressure Test $60.00 per test Repeat Bacteria Test $75.00 per test Fees to be collected prior to project acceptance. For inspection services during other than normal working hours,this amount will bg e charged in addition to above fees: Labor Costs+30%Benefits 98 :rte �r:`•^ ••_•••_. .-3.., :���.. ,: VALLEY, t. _ . 1U*:'< \'' t' '' ARIZONA 40' TOWN OF ORO ORO VALLEY WATER UTILITY SCHEDULE OF RATE, FEES AND CHARGES FISCAL YEAR 2003/04 PROPOSED RECLAIMED WATER RATE DESIGN FOR FY 2003-2004 METER BASE RATE COMMODITY COMMODITY COMMODITY SIZE includes TIER 1 TIER 2 TIER 3 ZEROg allons $1.98 PER 1000 GALS. $2.68 PER 1000 GALS. $338 PER 1000 GALS. 5/8 x 3/4 $12.65 ALL USAGE N/A N/A 3/4 x 3/4 $18.95 ALL USAGE N/A N/A 1 $31.50 ALL USAGE N/A N/A 2 $63.15 ALL USAGE 4 N/A _ N/A 2 $101.00 ALL USAGE 4 N/A N/A 3 $202.00 ALL USAGE N/A N/A 4 $316.00 ALL USAGE N/A N/A 6 $631.00 ALL USAGE N/A N/A 8 $1,262.00 ALL USAGE N/A N/A 99 NumB EY ARIZONA � t . �._ ..1:if.„i= TOWNlagirif-11) OF ORO VALL , ER OF ME'1 ERS CONNECTED (UNAUDI'I'ED) Fiscal Meters Running Year Connected Total 9,863 Pre-05/01/96 * 9,863 1995/96 ** 152 10,015 1996/97 523 10,538 1997/98 802 11,340 1998/99 985 12,325 1999/00 *** 1,930 14,255 2000/01 789 15,044 2001/02 507 15,551 2002/03 470 16,021 2003/04 533 16,554 2004/05 450 17,004 2005/06 450 17,454 2006/07 450 17,904 2007/08 450 18,354 * Connections at the time the Town acquired the two private water companies. ** Connections added between May 1st and June 30, 1996. *** The Oro Valley water utility assumed management of the former OV #1 customers (977) in July 1999. Source: Oro Valley Water Utility :-S :kt•t:ti•{s:.r^:a•::i^{/'ai^:::!>£.a<.r•�.f:�,<f"<.;•g.•i...a•i�.:4�s9:`:3;.n:}..:^s ftk+♦�o:...b;r.�;o..:•Y.:a.,:•.,Y..�l..<-.«',{,a..,•r.r.,:.:,.qt.�).:'r�•.;f..'f'tty.:o�c!ws,a, :yi : .lf rQ tt�oX r0 � *, f + '': %' :�:vLa�sz,KKar Maf � � �rrfawarsFr} .f:::.;:;. ..,,,,,00#:$040".''' ',!'201000yr' £ » b� ! ti Sg rm .a YZ 'r f� �ig :18L000 a t Car� OfOyy ' A..♦ Y {> .1fi^ ik16,000 :^ Mp. @ { y w >,[c.j; : a &4 �a�{t2 �Yi:141000 }:�5SriUWif Y 'nJ:vii , 4y12,000 t c 0 : : : ::;:oS ? rb )t? iwxY. %0'000 pY £, 10)K ;} 4 i ) a:f g < fl „i V:? / f g � Li�*8f000 1t1 ? nf;>;3C $wYS * i�a7ZtiJ4$ a ?idw 11a�« ;60001� 26 1. w :< y giatifty ! n .r V4t000 y ; o• !et 's K ,!r ; ••"i . _2000 Ly1iy 1tieabi9?^i:ta• t; , I ••** `�.` \�� \�o� ** `�►, �\�fl, �^) O\OD� DSO- ���� OHO'` 1\00 �� �o�O Opo O'\ O`b BOO OOO OO OO`, Op OO OO OO OO I (4Z' CP '\ ,\Cb 100 7-ta-.7:7::;:.\ 1,._14';,-7,,,,,i 3::zi ri ,., TOWN OF ORO VALLEY, ARIZONA NUMBER OF CONNECTIONS BY TYPE FISCAL YEAR 2003/04 (UNAUDITED) Number Percentage Percentage of of Water of User Type Connections Total Revenues Total Residential 15,661 94.61% $ 6,396,018 70.34% Commercial 211 1.27% 499,034 5.49% Irrigation 342 2.07% 751,420 8.26% Construction 330 1.99% 253,128 2.78% Turf 9 0.05% 1,140,124 12.54% Wholesale/Unmetered 1 0.01% 53,346 0.59% Totals 16,554 100.0% $ 9,093,069 100.0% Source: Oro Valley Water Utility and Finance Department Turf Wholesale/Un 12.54% metered Construction 0.59% 2.78% Irrigation 8.26% ' Ip:-?2," .7:-.:0,,,,, abi .:_,,. tkAt.;?5‘,,;,:-IN m,,,,thk,:,,,,,.,,,,-,.1...„, Commercial Aai o � .�dL 5.49% Y � earrz . 'K3- w . -. Residential 70.34% 101 6' -‘,9 TOWN OF ORO VALLEY,ARIZONA ,_,..s,,,,,j, � . HISTORY OF CONNECTIONS TO THE WATER SYSTEM 1; '-1=-2_ -,-, ‘'t: 1pp LAST FIVE FISCAL YEARS (UNAUDITED) Fiscal Years Single Multi- Ending Family Family Commercial Irrigation Turf Total Total June 30 Connections Connections Connections Connections Connections Connections EDU's(a) 2000 927 24 33 21 1 1,006 (b) 1,397 2001 749 9 14 15 0 787 789 2002 477 1 11 18 0 507 666 2003 416 29 10 15 0 470 610 2004 468 28 21 16 0 533 497 (a) EDU1s are determined by dividing the total amount collected with respect to connections to the system by the then existing fee for a 5/8-inch connection. There can be no assurance that this level of connections or any other level will continue in future years. (b) On 7/1/99 the Town assumed managment of the OVWID#1 which consisted of 977 customers. These customers are not considered "new" connections and were not subject to impact fees, they have not been included in this figure. Source: The Town. Note: The above information is provided for bond requirements only and the bond does not require ten years of data. Total EDU's 1,3••. 1,400 ..~gel. 1,200 -- - . .1,000 ---:r.�•riii -;"‘•Vi: t .; 800 --J=:: i __���-µ 6 .1.02 600 fr.:�' o -...4.14 ...s ~•S-.1 r r14 .-(---,-,--r r• P�•r r..65, r y am••, 400 --- = 4 -.. :. , r • �' r-. T`� KA �'` te.. ^-z•�: .'t.F��F�, '1•iii�`� 2 00 ,r:. -:^• -,, _-:a 0 :..r'" ,e" ' i S F- 1 2 3 4 5 6 7 8 9 102 TOWN OF ORO VALLEY,ARIZONA =�_ ` ,q.I,t'.!-'.Pt! r..:.. . HISTORY OF BUILDING PERMITS —:_-� fr-_,A-,': _ LAST FIVE FISCAL YEARS (UNAUDITED) Fiscal Year Ending June 30, Building Permits 2000 1 1 2001 1 1 2002 1 2003 2004 Single Family Residential 1,144 793 534412 494 _ Office 14 4 16 10 21 Miscellaneous 102 290 180 157 149 Retail 11 6 11 8 5 Apartments 10 - - - - Total Commercial 137 300 207 175 175 Total 1,281 1,093 741 587 669 Source: The Town. Note: The above information is provided for bond requirements only and the bond does not require ten years of data. Single Family Residential ,�r:. 11 -.. 1,200 t 1,000 -- ! 793 800 , , i N i 534 494 600 -- 41 f r ,s‘7-41 400 -- 200 - ! ' 2000 2001 2002 2003 2004 103 TOWN OF ORO VALLEY,ARIZONA ig,:-:-,:yd f., � -CUSTOMERS ` -�- SCHEDULE OF THE 15 LARGEST WATER SYSTEM , - FISCAL YEAR 2002/03 (UNAUDITED) Annual Annual Gallons Water Water System Customer Delivered* Charges Hilton El Conquistador Golf Course & Country Club 308,091 $ 614,161 Sun City Golf Course 145,407 465,188 Hilton El Conquistador Resort 39,365 102,611 Vistoso Highland Golf Course 129,888 91,937 r 15,990 60,351 Sun City Community Association Stone Canyon Golf Course 228,508 143,389 Ventana Medical 4,665 15,336 Rockridge Apartments 20,131 57,217 La Reserve Apartments (Evans/Withycombe) 18,899 57,311 La Cholla Air Park 23,630 54,440 The Boulder Apartments 14,040 42,465 Fry's Grocery Store 8,142 25,212 Honeywell (Allied Signal) 6,148 19,028 Pusch Ridge Christian Academy 8,575 27,432 Marana Public School (DeGrazia) 4,263 13,907 To tals975,742 $ 1,789,985 * 000's omitted. Source: Town 104 ti IP) Of` ,�_.. L:; TOWN OF ORO VALLEY, ARIZONA `;^v'` ' , ,!i:'� DEMOGRAPHIC STATISTICS JUNE 30, 2003 (UNAUDITED) Population by Age Group Percentage Age Group Number of Total Under 5 1,893 5.02% 5 - 14 4,814 12.77% 15 - 19 2,032 5.39% 20 - 29 2,435 6.46% 30 - 39 4,400 11.67% 40 - 49 5,904 15.66% 50 - 64 7,662 20.32% 65 and over 8,560 22.72% Total 37,700 100.00% Sources: Town of Oro Valley Planning and Zoning Division Under 5 65 and over_ 5.02% 5- 14 22.71% 12.77% at��•c/�r•k'�• °^s �X < Y�g<,�rnwhrc^ 15- 19 5.39% PIr- 20-29 ^0mogaft sW.. 6.46% 50-64 20.32% 30-39 11.67% 40-49 15.66% 105 'oft OF ORO VALLEY # s f TOWN , ARIZONA DEMOGRAPHIC STATISTICS JUNE 30, 2003 (UNAUDITED) Population by Ethnic Background Percentage Category Number of Total `shite 33,232 88.15% Hispanic 2,816 7.47% Black/African American 385 1.02% Native American 113 0.30% Other 1,154 3.06% Total 37,700 100.00% Sources: Town of Oro Valley Planning and Zoning Division Black/African Native American American 1.02% 0.30% Other Hispanic 3.06% 7.47% Yr° ��T•.���'�'���r,�'4 h �'�.A °t< �,J s '�,`" ...a�yt tcr�^�s. • °a v` • —4... Sfur,.....ta..500.+'x. White 88.15% 106 + .Z.r ,,,,\ � 9----:1.. ''. •,yam c. �^ oi O 01 O1 -.4 O O 00 ^+ O. M O 00 kr) 00 v) N M O --- N N r--+ 00 N O On •1- t': Ln M 00 N kr) M 0o M et kr) V O *.., .-, .-+ N O1 • vim-) - - M O O wl O� 00 ON N M 00 ,--� M N ^ ^ ^ ^ ^ ^ ^ ^ r--+ .-. .-+ .-, .-y N N N vn 00 O 00 --. •'1- ,r s 00 O O1 ... O VD M r-+ 00 `O ',t `D cd `D M M t� CT O M OT 00 r-+ .cC OT t/7 O M ,-4 M �D VD `D .-r ON M .--+ i —, �-. in N N it = O O^ N O v ON ,t v? r-, Do- m. -7, o .--� \D —O � 00 - a, C0 N C N M t CN .. .-, .--+ .-y .-. .... •--I N N r- �. a1 M O O t` ON 00 00 -. O. p N O1 kr) N o0 M t- 'n -- N O N wn O t— t— -. 00 ^ ^ ^ ^ ^ ^ ^ ^ ^ CDrris •U M N O N O - M 01 ':t M 00 N N N M a) to N N- M O OT t� V') 00 ON C/) .. .-i .. .-- ,,,,� O E' E ,t '1- t- O\ � VD N O O O V at, , W Q d Z Z .� N .--. '1t O1 �t N N kr) M tt C/) •cn "O '1- M t-- M M M ON 00 ct' ken O W p vD oo 00 N vD N o0 �t '�t it N Q p M oo c*� o; �t oo v-i O‘ N O� N Z .) Q r-�, 00 N in .-� N M -, in tt O 00 O VD Q Q C M W^ ZQ c = O Q a `. HZN Q Q O ? 4QQ ' • V . n N M-+ .--+ Ivv:::, � r-+ �D N O o0 d' r-- 0 O p--, O� �D O� ,..� �n �n Z z `..� „ M O vD M O ^ N ^ Li. 0 E. c = ca vD t` O1 0o O t� -- 00 O M in N N 01 O N N N O V H O ? oo O^ N L c*^ M '�t t 4T, VS • W C/� •U r-+ t� N � t� �-+ N `D O VD Q .-, O N S 00 .1- ON O N • Ws., --r ..--, .-, ,--+ — — r-, .--+ .--- O � . H j o >4 V H �, . 4-4 WO be. cn CD N t- N Nm t- t- in CN .-+ ',D .1' kr) `D N 00 M ON a -t-.1co '.= .1. ,t M VD ON '- 00 N et t- Oj .-. r, .--r .-+ .-, N r--+ -, ,.. .-, zQ 0 ' . •O N 00 O o0 00 `D O VD �t OT 00 O et `D 00 O O *t ;> O h N .. oo M et .-, O N S Q O `t 0000 is N is n ON - ON ON >, U O 00 •-r VD O t"-- kr) `D O a �t d' •--+ N N M N oO .n co N M .--,, •--, N N cn 0 = V O N 00 kr) N 00 N in v) 0 E .� 4-+ N d' M N d' - - N - r-•, 0 C) O = O Dtzt V Z a > d 4 O 0 OO V z- 'n `D t- 00 O1 O — N M 30 .E alO. O. O. O. Q1 O O O O O • O1 O\ Oo O, O1 O O O O O H a .--. . 1 r-, .-, N N N N N , N TOWN OF ORO VALLEY,ARIZONA ' ii.f.,-,.--; i-.`,T.' :a =: SCHEDULE OF TOP EMPLOYERS 1�`r ro_ -� ' JUNE 30,2003 (UNAUDITED) Governmental The Town of Oro Valley was incorporated in April, 1974. The Town is governed by a mayor,four council members, and a town manager. There is a local police department and service from Golder Ranch Fire District and Rural-Metro Fire Department,a private company available through subscription. Number of Largest Employers Product/Service Employees Hilton El Conquistador Resort Dining/Recreation/Hotel 425 Ventana Medical Systems _Medical Research 413 Town of Oro Valley ,Government 334 Fry's Food Stores(2) Grocery Store 1 295 Hilton El Conquistador Country Club �Dining/Recreation _ 260 Canyon Del Oro High School ,School 140 Target ,Retail Store i 150 Long Realty i Real Estate 130 Home Depot `Retail Store 124 Stone Canyon Golf/Golf Club at Vistoso _ Dining/Recreation _ _ 117 Securaplane Aerospace 93 Safeway ,Grocery Store 99 Oro Valley Country Club Dining/Recreation 95 Aventis Pharmaceuticals Medical Research 70 Desert Point Assisted Living 60 Uno's Chicago Bar&Grill Restaurant/Bar 60 i Basha's Food Store Grocery Store 76 Risky Business Restaurant/Bar 49 Pizza Hut Restaurant 29 Walgreen's(2) Drug Store 36 Alterra Claire Bridge _,Assisted Living 30 Ross Stores Retail Store 35 Rubio's Baja Grill _ Restaurant 18 PetsMart .Retail Store 22 _ 1 Pusch Ridge Day Care Day Care 30 Albertson's +Grocery Store 83 Trader Joe's Grocery Store 48 Osco Drug Store 14 General • The Town of Oro Valley encompasses an area of approximately 33.2 square miles. Located in northeastern Pima County,the Town is six miles north of the Tuscon city limits. The Town's current population is 37,700 and recorded a 2.6%unemployment rate in 2004. 108 3 TOWN OF ORO VALLEY COUNCIL COMMUNICATION MEETING DATE: December 1, 2004 TO: HONORABLE MAYOR & COUNCIL FROM: Chuck Sweet, Town Manager SUBJECT: Presentation on the Regional Transportation Authority SUMMARY: Gary Hayes, Executive Director of the Pima Association of Governments, will brief the Mayor and Council on the formation of the Regional Transportation Authority (RTA) and an update on its progress. He will be available to answer questions concerning the RTA. Chuck Swee , Town Manager TOWN OF ORO VALLEY �UNCIL COMMUNICATION MEETING DATE: DECEMBER 1, 2004 ( TO: HONORABLE MAYOR & COUNCIL MEMBERS FROM: JEFFREY H. WEIR, CEcD ECONOMIC DEVELOPMENT ADMINISTRATOR SUBJECT: FISCAL YEAR 2004-2005 FIRST QUARTERS PERFORMANCE REPORT FROM THE GREATER TUCSON ECONOMIC COUNCIL (GTEC). SUMMARY: The existing Financial ParticipationAgreement l A reement between the Town of Oro Valley and GTEC requires that GTEC a performance erformance report at the end of each quarter of the current fiscal year. Representatives from GTEC will present the first quarter of FY 2004-2005 to the Council. ATTACHMENT: (11. GTEC Quarterly Report— 1st Quarter FY 2004-2005. fi .rp x 7/ JEFFREY H. WEIR, CEcD ECONOMIC DEVELOPMENT ADM. /4/4 CHUCK SWEET TOWN MANAGER GTEC Quarterly Report Town of Oro Valley 1St Qtr 2004 07/01/04-09/30/04 1. 12 real estate searches were conducted by GTEC for properties in the Greater Tucson region (Oro Valley included in all searches) 12 client visits were hosted by GTEC in Greater Tucson 0 client visits to sites in Oro Valley due to available properties not matching client requirements 2. 26 new projects during the quarter representing the following Clusters: 0=Aerospace 1 =Advanced Materials 1 = Environmental Technology 8= Information Technology 0= Life Sciences 0 = Optics 16 =Other(specify) 1 = Distribution 5= General 10 = Manufacturing 3. 1 company announced a decision to locate in Pima County in August, 2004: Silver State Helicopters (helicopter flight school): 60-80 announced jobs,$40,000-$70,000 estimated annual wages and$1.542.5 million capital investment. Company needed to be up and running right away and signed one year lease at TIA but still plans to build a permanent facility. Needs 10 acres. Miller Ranch was presented to them but zoned for retail and even if re-zoned,this location was too close to other retail and housing. 4. Oro Valley retention activity No help was requested of GTEC during the quarter. 5. Other Quarterly Pro-active Recruitment Activity: 1 3 site selector visits were made in Philadelphia, PA in July 2004 1 7 of conferences/trade shows were attended in Portland, Denver, Flagstaff, NYC, Las Vegas, Memphis and Ottawa 1 0 direct mail programs were conducted in the 1St quarter. 6. Activity post-quarter(results to be posted in next report): ➢ GTEC# 0304058: ADOC lead from 1/04 cancer therapeutics company. Notified Jeff Weir 10/29/04 that company may be interested in meeting with Oncology contacts to be located at new Northwest Hospital if they've been hired. Awaiting response to provide to company. ➢ GTEC Visited Ventana Medical Systems with 3 national site selectors 10/11. Learned that Ventana is trying to recruit"supplier companies"to locate near them. GTEC offered its assistance directly to the company but company declined offer for time being. GTEC also notified Jeff Weir of information and offered assistance to him. ➢ GTEC checked with Oro Valley company(copied J.Weir) in early October on availability of cGMP space—a GTEC client has expressed early interest but has not yet provided specific real estate requirements to GTEC. When GTEC receives, GTEC will send to company and copy J.Weir. TOWN OF ORO VALLEY STAFF REPORT TO THE TOWN COUNCIL MEETING DATE: December 1, 2004 TO: HONORABLE MAYOR& COUNCIL FROM: Robert Conant, Senior Planner SUBJECT: PUBLIC HEARING — ORDINANCE NO. (0) 04-44,OV8-04-05, SPRINGBOARD HOME FOR YOUTH IN CWSIS, REQUESTS EXPANSION OF A COMMUNITY SERVICE AGENCY FROM TWELVE (12) TO TWENTY (20) BED FACILITY, LOCATED NORTH OF TANGERINE ROAD AND WEST OF LA CHOLLA BOULEVARD, PARCEL 224-42-014B BACKGROUND: The Pima County Board of Supervisors approved a Conditional Use Permit for Springboard on April 10, 2001 for a twenty bed Community Service Agency. The following condition was adopted related to the Use Permit: This Conditional Use Permit approval for a Community Service Agency is limited to a total of twelve (12) beds for the first year and may be increased to a maximum of twenty (20) beds after approval by the Board of Supervisors. Any future expansion of the facility to provide for a larger resident population shall be subject to a new CUP application, re-notification of surrounding property owners, new public hearings. An advisory committee shall be established to make a recommendation to the Board of Supervisors. An advisory committee consisting of the following has been established: Larry Stevens, Town of Oro Valley Police Fred Sanders,DES Licensing Specialist Bryant Nodine, Town of Oro Valley Planning and Zoning Administrator Tori Ferrari, Springboard Center Director Rev. Bill Seale, Copper Mountain Assembly of God Pastor Rev. Bob Harvey, Church of the Apostle (neighboring property owner) The property was annexed by the Town of Oro Valley in 2002. SUMMARY: The Town of Oro Valley issued a building permit for Springboard in November 2002 and a certificate of occupancy in October 2003. The facility has a year of operation with twelve (12) beds, without any incidents, zoning violations or complaints from neighbors. Attached to this staff report for background, is a letter written in March of 2001 by the Rev. Snow Peabody the Executive Director of Teen Challenge giving the history of Springboard. The committee listed above met on November 3, 2004 and their report is attached. TOWN OF ORO VALLEY TOWN COUNCIL STAFF REPORT Page 2 FACTORS FOR: • The facility is in compliance with the original Conditional Use Permit and Conditions • The Town has not had complaints about activity at the facility • The facility is in compliance with State Regulations FACTORS AGAINST: None as the compliance request is in with the original conditions of approval by the Pima County Board of q Supervisors. SUGGESTED MOTIONS: The Town Council may wish to consider one of the following suggested motions: I move to approve Ordinance (0) 04- 44, OV8-04-05, Springboard Home for Youth in Crisis, expansion of a Community Service Facility from twelve to twenty beds. OR I move to approve Ordinance (0) 04- 44 , OV8-04-05, Springboard Home for Youth in Crisis, expansion of a pp Community Service Facility from twelve to twenty beds, subject to the following conditions: . OR I move to deny Ordinance (0) 04- 44 , OV8-04-05, Springboard Home for Youth in Crisis, expansion of a Community Service Facility from twelve to twenty beds, finding that: • Attachments: 1. Ordinance (0) 04- 44 2. Background letter March 2001 3. Minutes of the Advisory Committee dated November 18, 2004 .di i i Pla W . oni ic,—; dministrator roCu 'ty eve •pment Director i / i 4 Town Manager ORDINANCE NO. (0) 04-44 AN ORDINANCE OF THE TOWN OF ORO VALLEY, ARIZONA, APPROVING THE EXPANSION OF A COMMUNITY SERVICE AGENCY, SPRINBOARD HOME FOR YOUTH IN CRISES FROM TWELVE (12) TO TWENTY (20) BEDS AS APPROVIDED BY CONDITIONS OF APPROVAL BY PIMA COUNTY FOR THE CONDITIONAL USE PERMIT APPROVED APRIL 10, 2001. LOCATED ON THE NORTH SIDE OF TANGERINE ROAD AND WEST OF LA CHOLLA BOULEVARD, PARCEL 224-42-014B WHEREAS, g Sp rin board Home for Youth in Crisis, has requested to expand from its current twelve to twent (20)beds as rovided by the conditions of approval adopted by the Pima County Board of (12) Yp Supervisors on April 10, 2001; and WHEREAS, The Town of Oro Valley annexed the property located on the north side of Tangerine Road west of La Cholla Boulevard in 2002; and WHEREAS, The Town of Oro Valley accepted all of the conditions imposed by the Pima County Board of Supervisors per the approved Conditional Use Permit; and WHEREAS,An advisory committee, consistent with the conditions of approval, met on October 27, 2004 and have recommended approval of the increase in beds. NOW,THEREFORE, BE IT ORDAINED BY THE MAYOR AND TOWN COUNCIL OF THE TOWN OF ORO VALLEY: SECTION 1: That the expansion from twelve (12) to twenty(20)beds is consistent with the original conditions of the existing Conditional Use Permit and is therefore, approved. SECTION 2: That this ordinance and the various parts thereof are hereby declared to be revocable. If any section, sub-section, sentence, clause, word or phrase of this ordinance is for any reason held to be unconstitutional, such holdings shall not affect the validity of the remaining portion of this ordinance. PASSED Mayor AND ADOPTED bythe Ma or and Council of the Town of Oro Valley, Arizona this 1St day of December, 2004. ATTEST: Paul H. Looms, Mayor Kathryn Cuvelier, Town Clerk APPROVED AS TO FORM: Tobin Sidles, Acting Town Attorney TEEN CHALLENGE :ore,t INTERNATIONAL j: k.,; - The Proven Cure For The Drug Epidemic = TEEN CHALLENGE OF ARIZONA,INC. } F J March 30,2000 EXECUTIVE DIRECTOR Ms. Patricia Thomas,Chief Zoning Inspector Rev.Snow Peabody Pima County Planning and Zoning, 201 N. Stone Avenue STATE CORPORATE OFFICE Tucson, AZ 85701 698 E.Wetmore Rd. Suite 200 To Whom It May Concern: P.O.Box 5966 Tucson,Arizona 85703-5966 In 1976, Springboard began to provide resjdential care to youth, ages 8 up to their 18th birthday. The (520)292-2273 Arizona Department of Economic Security issued the original license and has re-licensed the home each (800)346-7859 year following an in-depth inspection. We have been in good standing with DES for 24 years. Fax(520)292-2257 GREATER PHOENIX � Originally, the home provided a 30-day program. In 1990,the program was extended to 90 days. It is a TEEN CHALLENGE group home rather than a temporary shelter. Approximately 95%of the females coming into the home MEN'S INDUCTION CENTER have experienced serious physical,sexual, and/or emotional abuse and are,therefore,victims, rather 1515 W.Grand Ave. than perpetrators of crime. A small percentage of those who come to us have a substance abuse P.O.Box 13444 problem, but none that require drug rehabilitation. There are no physicians on staff, thoughevery Phoenix,Arizona 85002-3444 (602)271-4084 resident is required to have a physical exam before they stay in the home.A licensed counselor screens Fax(602)271-9718 each and every youth to insure they are not a physical threat to themselves or others. When the children come into our foster home,we receive limited guardianship for their care. TUCSON TEEN CHALLENGE MEN'S INDUCTION CENTER All members of the staff are required to be fingerprinted before being hired and each is trained in the 2637 N.Oracle Rd. P.O. Box 77370 following areas: Tucson,Arizona 85703-7370 • CPR (520)792-1790 1 First Aid Fax(520)792-0049 • Food Handlers Training ♦ In-house Training with Senior Staff CHRISTIAN LIFE RANCH 47819 N.Fig Springs Road Phoenix,Arizona 85027-8181 A minimum of four(4) days of training_ is required each year after hiring as well. Areas of training (623)465-7810 include: Assisting victims of sexual abuse, communication skills, suicide prevention, conflict Fax(623)465-0335 resolution, prevention of substance abuse and building self-esteem. SPRINGBOARD HOME FOR After 24 years of successful operation and having an excellent standing in the community, Springboard YOUTH iN CRISIS now has the resources to expand. With the monumental need for residential programs, this expansion is P.O.Box 5966 TucsonArizona 85703-5966 past due. Any day of the week we currently have 20-25 girls on a waiting list needing to enter our c , (520)887-8773 program. Fax(520)887-8786 With much input from various adolescent programs across the country,the Springboard leadership has KINGMAN CONTACT developed plans for a 5,000 square-foot home to eventually care for 15-20 adolescent females, ages OFFICE P.O.Box 6957 8-18. The plan is to begin with ten(10)beds. After a year of successful foster care,the capacity would Kingman,Arizona 86402-6957 be increased to 15-20 beds, which are so desperately needed. (520)753-7994 Fax(520)753-7994 The Springboard leadership is extremely pleased to partner with Copper Mountain Assembly of God in sharing the expenses of developing the current 10-acre parcel of land in the Northwest area of Tucson. YUMA CONTACT OFFICE Therefore,we request the permission to pursue this avenue in helping young ladies overcome their P.O.Box 123 Yuma,Arizona 85366-0123 abusive past and to become the women in leadership for tomorrow. (520)539-0409 Fax(520)329-6928 Respectfully, Rev. Snow Peabody cAL u4e., Executive Director 21.ECFFii • SP/aj 41EMBER Enclosure ',A ct o U> Meeting Notes Conditional Use Permit - Advisory Committee RE: Springboard Home Pima County Conditional Use Permit P21-00-012 Date: November 3, 2004, 2:00 pm. Attendees: Bryant Nodine Town of Oro Valley Planning 229-4807 Larry Stevens Town of Oro Valley Police 229-4900 Fred Sanders D.E.S. 795-1858 ext205 Tori Ferrari Springboard Home - Director 887-8773 Rev. Robert (Bob) W. Harvey Church of the Apostles 744-7810 Rev. Bill Seale Copper Mountain Assembly of God Church 797-2582 Brian G. Hagedon Architect (observer) 250-6952 History: Impacts to the community were stated as This advisory committee was formed as a follows: requirement of the Conditional Use Permit (C.U.P.) P21-00-012 issued April 1, 2002 by 1.0 Noise Impact Pima County. A) Alarms B) Student Outdoor Activities The request by Springboard Home is to increase C) Increased Traffic the number of beds from the initial 12 beds to the maximum of 20 beds as allowed by the 2.0 Runaway Impact C.U.P. A) Increased Police presence B) Helicopters Springboard has been in compliant with the C) Vandalism and/or property damage items listed as special conditions on the C.U.P. 1. The design and layout is consistent with 3.0 Student Concerns the concept plan A) Police Calls 2. It is a Community Service Agency for 20 B) Violence beds maximum. C) Criminal Offenders 3. The age group of the Facility is limited to D) Drug / Alcohol Offenders ages 8-18. E) Screening of potential Students 4. It is a Community Service Agency and F) Suicide Attempts has not changed its use. G) Disorderly Conduct 5. The construction project disturbed no H) Assaults more than 4.8 acres verified by survey at the time of construction. The committee reviewed this list of issues and reviewed the record of the facility since its The committees'tasks are to review issues approval. The question discussed was, what is raised at the original hearing and evaluate the the current impact and what would the impact impact of an increase in beds based upon the be if the beds are increased a total of 8 beds? history of community impact at the site. In April 2002, Oro Valley residents expressed concerns about Springboard Home prior to the approval of the Conditional Use Permit. Dana 1 of 7 Springboard Home—Advisory Committee cont. All alarms for the facility are internal. There The Facility: have been two false alarms in the past year.The existing facility was designed and None have affected the neighborhood. g constructed to accommodate the maximum capacity of 20 beds. No additional expansion of Students: p tY the facility will be necessary to accommodate There have been few runaways since the increase in students. Springboard opened none of which have impacted the surrounding properties. The Police The Facilityis for abusedgirls ages 8 through 18 stated that they have not had any significant . years of age. The typical duration of stay for issues with the Home or it's residents. 9 each girl is 90 days. Facility Review: The girls attend of their own volition. D.E.S. (Department of Economic Security) Springboard screens all students and only takes reviews the facility on a regular basis. They girls that would not pose a threat to the other review the facility for compliance in various girls or staff. areas including: • Student Interviews All girls sign an agreement to abide by the rules • Staff Interviews of the Home. • Health inspection • Fire Inspection During the time that they are at Springboard • General facility review they do not attend school. Springboard provides It was noted by Fred Sanders (D.E.S. licensing some educational credits when necessary. representative) that the facility has always been in good standing with D.E.S. The existing building was reviewed by the Oro Valley Architectural Review Committee and the In addition to Springboard helping girls in the design is consistent with the scale and character community, Springboard reaches out to the required. community as well. • The girls visit shut-ins in the community Traffic: • Springboard, when funds are available, The current staff would be increased by 2. contributes to other organizations in the It was assumed that based on current activities community. that visits by persons other than staff might • Community service is a part of the increase by 2 additional visits per day. programs, teaching and training. • Tori Ferrari, center director, has Noise: personally committed to being available Currently with 12 students, the Police noted that to provide assistance to the police there has been no noise complaints lodged through counseling at no cost to the against the facility. With the increase in community. students, Springboards' policy is to limit exterior recreation activities to a maximum of 10 It is the recommendation of this committee that students at a time. Most physical recreation Springboard be allowed to expand to the activities are held off-site. maximum of 20 beds as permitted by the C.U.P. The facility hours of operation are supervised 24 Sincerely presented, hours a day, days 7 da s a week. Students wake-up Springboard Home C.U.P. Advisory Committee at 7:00 am and lights out at 10:00 pm. Notes Recorded by Bri n G. Hagedon Springboard Home—AdvisoryCommittee Page 2 of 2 TOWN OF ORO VALLEY "OUNCIL COMMUNICATION MEETING DATE: December 1, 2004 TO: HONORABLE MAYOR& COUNCIL FROM: Kathryn Cuvelier, Town Clerk SUBJECT: RECONSIDERATION OF RESOLUTION NO. (R)04-121 TO TEMPORARILY SUSPEND THE ECONOMIC INCENTIVE PORTIONS OF THE ECONOMIC DEVELOPMENT INCENTIVE POLICY GUIDELINES PENDING A COMPLETE REVIEW OF THE OVERALL EFFECTIVENESS AND BENEFIT TO THE TOWN OF ORO VALLEY SUMMARY: Council Member Carter has submitted a request to reconsider the above referenced item. Vice Mayor Abbott has seconded the request for reconsideration. Section 11.1 of the Council Parliamentary Rules &Procedures regarding Reconsideration of Motions states: "A. Once an item is discussed at a meeting and the Council has gone on to another agenda item, the item considered cannot be again considered at that same meeting unless it can be positively determined that all persons who were present when the item was first considered are still present. B. Said reconsideration of any action taken by Council must be by motion by a Council Member who was on the prevailing side of the vote. Such motion must be filed with the Council (Town Clerk's Office) and the Town Clerk shall place that item on the agenda prior to the next regularly scheduled Council meeting. At the time of that meeting before the matter may be considered, there must be a second to the Motion to Reconsider. C. If the motion to reconsider failed, the Council will skip the next agenda item,which will be the discussion and vote of the original issue. D. If the motion to reconsider was successful,the Council will continue that item to a specific date in the future." ATTACHMENTS: 1. Memorandum from Council Member Carter dated November 22, 2004. 2. Draft minutes dated 11-17-04 regarding Resolution No. (R)04.121. SUGGESTED MOTION: I MOVE to reconsider Resolution No. (R)04-121..... or I MOVE to DENY the reconsideration of Resolution No. (R)04-121. TOWN OF ORO VALLEY 7OUNCIL COMMUNICATION Page 2 f4(7-' C:4-z-zaz-k; Kathryn Cuvelier, Town Clerk Chuck Sweet, own Manager MEMORANDUM TO: Mayor & Oro Valley Council Members FROM: KC Carter, Council Member DATE: November 22, 2004 SUBJ: Reconsideration — November 17, 2004 Agenda Item #10 RESOLUTION NO. (R) 04-121 TO TEMPORARILY SUSPEND THE ECONOMIC INCENTIVE PORTIONS OF THE ECONOMIC DEVELOPMENT INCENTIVE POLICY GUIDELINES PENDING A COMPLETE REVIEW OF THE OVERALL EFFECTIVENESS AND BENEFIT TO THE TOWN OF ORO VALLEY Pursuant to the Town Code and as a Council Member voting on the prevailing side of the above-referenced Agenda Item, I am requesting a reconsideration of the Agenda Item #10 for the December 1 , 2004 Regular Council Meeting. Thank you. i I � I . KC Carter Council Member C: Kathi Cuvelier, Town Clerk Chuck Sweet, Town Manager Tobin Sidles, Acting Town Attorney TOWN OF ORO VALLEY 7 OUNCIL COMMUNICATION MEETING DATE: December 1, 2004 TO: HONORABLE MAYOR& COUNCIL FROM: Kathryn Cuvelier, Town Clerk SUBJECT: RESOLUTION NO. (R)04-121 TO TEMPORARILY SUSPEND THE ECONOMIC INCENTIVE PORTIONS OF THE ECONOMIC DEVELOPMENT INCENTIVE POLICY GUIDELINES PENDING A COMPLETE REVIEW OF THE OVERALL EFFECTIVENESS AND BENEFIT TO THE TOWN OF ORO VALLEY SUMMARY: Section 11.1 of the Council Parliamentary Rules &Procedures regarding Reconsideration of Motions states: "A. Once an item is discussed at a meeting and the Council has gone on to another agenda item, the item considered cannot be again considered at that same meeting unless it can be positively determined that all persons who were present when the item was first considered are still present. B. Said reconsideration of any action taken by Council must be by motion by a Council Member who was on the prevailing side of the vote. Such motion must be filed with the Council (Town Clerk's Office) and the Town Clerk shall place that item on the agenda prior to the next regularly scheduled Council meeting. .t the time of that meeting before the matter may be considered, there must be a second to the Motion to Reconsider. C. If the motion to reconsider failed, the Council will skip the next agenda item, which will be the discussion and vote of the original issue. D. If the motion to reconsider was successful, the Council will continue that item to a specific date in the future." SUGGESTED MOTION: If the motion to reconsider is approved by a majority of the Town Council, the motion shall be as follows: I MOVE to CONTINUE Resolution No. (R)04-121 to (a specific meeting date in the future) or If the motion to reconsider fails—No further action is taken. r ATTACHMENT: 11/17/04 Council Communication `, - c ' ' / ' Kai Cuvel, Town Clerk / f i _...e.46.4L.0 .44 Chuck Sweet, Town Manager TOWN OF ORO VALLEY LI-OUNCIL COMMUNICATION MEETING DATE: November 17, 2004 TO: HONORABLE MAYOR & COUNCIL MEMBERS FROM: JEFFREY H. WEIR, CEcD ECONOMIC DEVELOPMENT ADMINISTRATOR ACTION TO SUBJECT: DISCUSSION AND POSSIBLETEMPORARILY SUSPEND THE ECONOMIC INCENTIVE "ECONOMIC OF THE DEVELOPMENT INCENTIVE POLICY GUIDELINES" PENDING A COMPLETE REVIEW OF THE OVERALL EFFECTIVENESS S AND BENEFIT TO THE TOWN OF ORO VALLEY. SUM MARY: ViceAbbott this item has been placed on the agenda for the request of Mayor Paula - At q ' � StudySession on October 27, 2004 this meeting. Limited discussion during the Council's Viceresponding to a request from an area resident. I revealed that Mayor Abbott was p 9- - - intentdiscussion to considerplacing a moratorium on the use of believe it is the of the discu..s�on . the decision to temporarily suspend the economic %lio�n economic incentives through y n portion ortion of the Economic Development Incentive Policy Guidelines pending a complete review of the overall effectiveness ectiveness and benefit to the Town of Oro Valley. BACKGROUND: ' established a Lodging Industry Incentives Policy On August 4, 1999 the Town CouncilThis . gNo. (R) 99-79 A. action provided a throw h a roval of Resolution and Guidelines 9 pp ' ' request provided a lodging operator/owner the ability to r q set of guidelines that 9 9 . - On October 3, 2001 the Town Council expanded consideration sideration of sharing of the Bed Tax. - . - the sharingof new retail sales taxes for regional olio to included consideration of . the policy - (R) 01 -90 created the existing Thea roval of Resolution No sized retail developments. pp Economic Development ment Incentive Policy and Guidelines. - - includeconsideration for the retention of targeted businesses The guidelines potential . g to the Town resulting in the and the attraction of new or expanding businessestax of the existing t x base and the creation of employment opportunities. indicatesthat the Town maycansider using some form of The policystatement clearly - . . "guidelines"�� number of qualifying criteria when and if fines portion outlines a q fY incentives. The guidel ' incentive agreement. The types of projects incentives the Council were to consider an g _ . loS - - includeretail, commercial and industrial projects with an can be utilized for resorts, • identified aspreferable that are in the Community Economic emphasis on the industries - . p that the Council has the authority to look Development Strategy {CEOs). To assure P TOWN OF ORO VALLEY LOUNCIL COMMUNICATION PAGE 2 OF 3 - project solelyItem 16 contains the wording r 'ect request on the merits of that . at each p o] q actions .... . that"each action is separate and independent from all other ATTACHMENTS: 1. Resolution No. (R) 01_30, including- Exhibit A —Town of Oro Valley Economic Development ment Incentive Policy Guidelines. FISCAL IMPACT: Unknown. CONSIDERATIONS: 1. Pros: - "tool" to assist in deliberations concerning a. The Council has available a businesses that MAY require some relief. the Retention of existing i b. If the Council decides that some form of incentive is necessary to assist n the attraction of a "targeted" new business that will provide high paying ' ' the expansion of an existing business that is employment opportunities OR p this policyallows for those courted byanother community then being actions. usingan incentive creates a true "partnering" c. The consideration of the Town and the developer enhance and improve opportunity wherein both impact on the pp that results in a positive the proposed development in a way community and our residents. _ . new developments is the further diversification d. Aho hl desired outcome of p . highly thisassist the Council in achieving that 0 f the local economy and tool can goal. - - commitment of public existing policydoes NOT require any _ e. Currently the e 9 aspect of the proposed development being funds associated with any p offsite improvements are made by the developer. considered. All on-site and p 2. Cons: decision and not solely an a. The use of incentives is a highly charged political economics consideration. approval of an Economic interval between the b. Normally the timetax revenues t and the actual realization of new sales Development Agreement creating new employment can easily be two or more years OR the creation of project the is not going to be realized. a feeling of concern that c. Some believe that the use of incentives is not necessary and all that is and it will ha pen anyway approach. required is a wait p TOWN OF ORO VALLEY ill.LOUNCIL COMMUNICATION PAGE 3 of 3 POSSIBLE MOTIONS: I MOVE TO TEMPORARILY SUSPEND THE ECONOMIC INCENTIVE PORTION OF THE ECONOMIC DEVELOPMENT INCENTIVE POLICY GUIDELINES UNTIL A COMPLETE AND COMPREHENSIVE REVIEW OF THE GUIDELINES CAN BE COMPLETED. OR I MOVE TO LEAVE IN PLACE THE EXISTING ECONOMIC DEVELOPMENT INCENTIVE POLICY GUIDELINES AT THIS TIME. r \ %;,1 %PP JEFFREY H. WEIR, CEcD ECONOMIC DEVELOPMENT ADM. 4.4 CHUCK SWEET TOWN MANAGER 1111, RESOLUTION NO. (R) 01 - 90 OF THE MAYOANTOl '� COUNCIL OF THE TOWN OF A RESOLUTION ADOPTING ECONOMIC DEVELODEVELOPMENTARIZONA, ORO VALLEY, INCENTIVE POLICY GUIDELINES. pursuing diversification of Oro Valley's General Plan has identified �'�'IiEREA S,the Town of �' the community, and; e local economy as highly desirable and is well supported by th ' Development Strategy states that one major existingCommunity Economic De p • WHEREAS,the of a Business Incentive Policy, and, • desired is the development and adoption action step ' Development Strategy further states that the WHEREAS,the existingCommunity Economic De p • some form of incentives to attract or retain targeted Town mayfrom time to time wish to use businesses, and; ' importance of developing a policy and Town of Oro Valley recognizes the p ed WHEREAS,the the retention and expansion of existing target - include similar considerations for guidelines that of new targeted businesses; g businesses as those that apply to the attraction 41100 RE BE IT RESOLVED BY THE MAYOR AND TOWN COUNCIL OF NOW TRER.EFO THE TOWN OF ORO VALLEY, ARIZONA: Economic Development Incentive Policy ' of Exhibit A, Town of Oro Valley The adoption of items that a business owner/developer may Guidelines,> attached herewith, provides examples request consideration for. PASSED, ADOPTED AND APPROVED by the Mayor or and Town Council of the Town of Oro Valley, Arizona,this 3rd day of octob r2001 . TOWN OF ORO VAL EY, ARIZONA Paul H. Loomis, Mayor ATTEST: Kat In Cuvelier, Town Clerk PROVED : FO ' IIA. • Dan L. Dudley, Town Attorney EXHIBIT A 4111kr TOWN OF ORO VALLEY ECONOMIC DEVELOPMENT INCENTIVE POLICY GUIDELINES Townset ofguidelines that assist in the retention of targeted GOAL: Toprovide the Council a - targeted businesses to the Town of Oro Valley and the attraction of new or expanding g . businesses of the existingtax base and the creation of employment resulting in the diversification opportunities. • mayconsider usingsome form of incentives in order to POLICIES: 1n certain cases the Town ' These incentives will only be used when the Town satisfies attract or retain targeted businesses. itself that the addition of the new business or retention and/or expansion of an existing business positive effect on the Oro Valley economy. The need for would have a significant, � sales tax local economywhich minimizes dependence of residential diversification of the and existingbusinesses necessity.. This policy places a priority emphasis on new revenues is a y p followinglistingcan be viewed as significant sales tax revenues. As a guideline the that generate g , 2. Retail 3. Other Lodging, 4. High Tech Job Creation, and a prioritized preference: ]. Resorts, , 5. Service Providers. The following general provisions shall be considered prior to offering incentives. offered if they are actually necessary in order to affect the kilo° �. Incentives will only be �retention and/or expansionthe of an existing business or to attract a new business to Town. This would include: - A situation in which the Town of Oro Valley has determined that the retention of an existing business is desirable. - A situation in which the Town of Oro Valley is competing with other cities for the expansion of an existing business to the Town or where incentives are actually necessary to affect the expansion of an existing business. - A situation wherein incentives are needed to induce a business to relocate or expand Town of Oro Valley operation to the from an existing site in another city. - situation wherein incentives are needed to induce a business to locate their A operation to the Town of Oro Valley. 2. A high priority should be placed on the businesses "targeted" in the Community Economic Development Strategic (CEDS)Plan (1997, or the most recent update). P positive economic impact on the community, i.e.;the 3. The project will have a substantial nu rnb er of j ob s created or the sales tax created by the project in the long-term will offset the short-term costs offeredby incentives. Additionally, the project will be of such size or consequence to produce significant employment or sales in related sectors. 4. Incentives should not continue for more than a 10 year period. • firms that provide diversification (within targeted An emphasis should be placed on � 5. p theTown's economy. industrial or commercial sectors)to willCie buy existingbuildings or construct buildings for purely private 6. The Town not land or g ' ' should be to offer incentives that have a relationship to objectives. The Town's position ' • Improvements such as streets; water lines,traffic signals, storm drainage, public benefit. ]mpro e are parks and open space, and similar publicly assessed improvements parking structures, • • ruction p p and const financed incentives. Acquisition of property examples of public-private ofbui buildings, if necessary, must be related to a public purpose. 7. The dollar amount of the incentives offered shall not exceed the cost of the project • incentive value be more than considered nor shall the 50%that the project could reasonably expect to return in benefits within a ten year period. utilized whenever possible to up-front identified project costs 8. Private dollars should be . . the Town to avoid straining the Town's operational or and then to be reimbursed by p Y bonding capacity and reduce the Town's front-end risks. 9. Incentives can be utilized for resort, retail, commercial and industrial projects Town- wide. own-wie. instances1incentivesmaybe offered in conjunction with annexation activities 0, In certain which�re viewed ew edas important strategically. In the case of large-scaledevelopment • " ' where feasible, areas, in�en tives should be combined with a community facilitiesdistrict, to offer maximum flexibility in attracting development. unmeasurable benefits of a business to a community, such as the 11. The •�ntang�ble or location of a headquarters facility, enhancement of attractiveness to other similar other similar image-related items are also very important and businesses or suppliers, or g should be considered alongwith other factors when making decisions on incentives. ' hich qualify should generate significant sales tax revenues 12. Generally Retail p ro�ects w similar to projectsnormally identified at a community or regional shopping center level. 13. Specific performance ce criteria for each project will be established. 14. New Retail development should have an emphasis on meeting a need not currently being inor providinga higher level of service/goods /products than filled the community, g ovidin similar services in an area not currently being served. presently available, or pr g 15. Final authority for any approval of the use of an incentive and/or inducement rests with the Town Council. p 16. Each action is separate and independent from all other actions associated with the approval of the use of an incentive and/or inducement.