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ORO VALLEY TOWN COUNCIL/BUDGET & BOND COMMITTEE
JOINT STUDY SESSION AND SPECIAL SESSION OF THE TOWN COUNCIL
JANUARY 12, 2004
ORO VALLEY TOWN COUNCIL CHAMBERS
11000 N. LA CANADA DRIVE
JOINT STUDY SESSION - AT OR AFTER 4:30 P.M.
CALL TO ORDER
ROLL CALL
1. REVIEW OF BUDGET AND BOND ADVISORY COMMITTEE RECOMMENDATION
REGARDING REVENUE ENHANCEMENT ORDINANCES
ADJOURN STUDY SESSION
SPECIAL SESSION — Immediately following the 4:30 p.m. study session
CALL TO ORDER
ROLL CALL
1. CONSIDERATION AND/OR POSSIBLE ACTION RELATING TO ORO VALLEY PROJECTS
POTENTIALLY APPEARING ON THE MAY 2004 BOND ELECTION
2. EXECUTIVE SESSION - PURSUANT TO ARS 38-431.03 (A)(7)PURCHASE OR LEASE OF
REAL PROPERTY REGARDING TOWN FACILITIES RESEARCH INFORMATION.
ADJOURNMENT
The Town of Oro Valley complies with the Americans with Disabilities Act (ADA). If any person with
a disability needs any type of accommodation, please notify the Town Clerk's Office at 229-4700.
Posted: 01/08/04
4:30 p.m.
Ih
TOWN OF ORO VALLEY
COUNCIL COMMUNICATION MEETING DATE: January 12, 2004
TO: HONORABLE MAYOR & COUNCIL
Budget and Bond Committee Members
FROM: David L. Andrews, Finance Director
SUBJECT: Status Report with Regard to Budget and Bond Committee's Recommended Town
Revenue Plan.
SUMMARY:
On December 4, 2002 the Town's Budget and Bond Committee was directed to develop a revenue
plan for the Town. Since that time, the Committee has held several special and regular meetings
discussions, the
includingtwo joint study sessions with the Town Council. As a result of these d scu ,
Budget and Bond Committee has taken the following actions:
• Favorablyrecommends increasing the construction sales tax rate from 2% to 4% with 75% of
the 2% increase earmarked for streets and roads maintenance. Please refer to the draft
ordinance included with this communication. The rate would be modified via ordinance and
the two earmarkings could be accomplished with a resolution.
• Recommends tabling/no action on a Town use tax based on the assumption that it would not
help local businesses. These thoughts are based in part on comments made to the Committee
by Economic Development Administrator Jeff Weir and the Northern Pima County Chamber of
Commerce.
• Will consider utility and telecommunications taxes at its January 2004 meeting. The
Committee is not optimistic that the local revenue base will significantly improve over the next
three to five years but would like to wait and see if things other than construction activity
improve. Please refer to the draft ordinances that are included with this communication.
Additionally, the Budget and Bond Committee has included long range revenue projections dated
November 17, 2003 for Council consideration.
ATTACHMENTS:
1. Construction Contracting Activities - Summary Sheet and Draft Ordinance
2. Telecommunications Services - Summary Sheet and Draft Ordinance
3. Utility Services - Summary Sheet and Draft Ordinance
4. General, Highway, Public Transportation and Town Wide Roadway Development Impact Fees
Funds Financial Projections.
t::.;.(-()s: .!�..:1313C Report to Council i 2-(-O 3.doc
TOWN OF ORO VALLEY Page 2 of 2
COUNCIL COMMUNICATION MEETING DATE: January 12, 2004
SUGGESTED MOTION:
N/A
IifelArzida
David L. Andrews
Finance Director
0441A'43r
Chuck Sweet
Town Manager
• .,T• • •..
EXHIBIT A
SUMMARY SHEET
Local Tax Description: Construction Contracting
• Town Code Sections: 8A-415; 8A-416; 8A-417
Proposed
Increase the tax rate on construction contracting activities by 2%from the currentrate of
2% to a total rate of 4%.
Revenue Impact
The amount of revenue estimated to be collected from the additional2% increase in the
tax rate is $2,100,000. Historical collections at the existing 2%tax rate are as follows:
FY FY FY FY FY FY
1998/99 1999/00 2000/01 2001/02 2002/03 2003/04
Actuals Actuals Actuals Actuals Actuals Budget
Collections $2,398,000 $3,023,000 $2,913,000 $2,779,000 $1,978,000 $2,100,000
Special Considerations
75%of additional 2% to be earmarked for streets and roads ongoing operations and
maintenance would provide approximately $1.6 M in additional annual revenues to the
Highway Fund.
ORDINANCE NO. (0) 03 -
AN ORDINANCE OF THE TOWN OF ORO VALLEY, ARIZONA
AMENDING THE TAX CODE OF THE TOWN OF ORO VALLEY,
ARTICLE IV, CHAPTER 8A, SECTION 415, SECTION 416 AND
SECTION 417 RELATING TO THE CONSTRUCTION CONTRACTING
TAX RATE AND REPEALING ALL RESOLUTIONS, ORDINANCES,
AND RULES OF THE TOWN OF ORO VALLEY IN CONFLICT
THEREWITH; PRESERVING THE RIGHTS AND DUTIES THAT HAVE
ALREADY MATURED AND PROCEEDINGS THAT HAVE ALREADY
BEGUN THEREUNDER.
WHEREAS, Arizona cities and towns have the authority to levy taxes under ARS § 9-
240(B)(26); and
WHEREAS, on July 13, 1988, the Town of Oro Valley adopted the Model City Tax Code
("Code") pursuant to Arizona law; and
WHEREAS, amendments to the Code are required to be made in accordance with ARS § 42-
6054; and
WHEREAS, on December 4, 2002, the Mayor and Town Council (the "Council") directed the
Oro Valley Budget and Bond Committee (the "Committee") to develop a proposed Town
Revenue Plan ("Plan"); and
WHEREAS, in a joint Study Session between the Council and the Committee held on March 24,
2003, the Committee presented an initial draft of the Plan to Council; and
WHEREAS, in a further joint Study Session between the Council and the Committee held on
August 18, 2003, the Council directed the Committee to develop a prioritized list of local sales
and use taxes for future Council consideration based on the Plan; and
WHEREAS, the Committee developed the priority list, which recommended increasing the
current construction contracting tax, and instituting taxes for telecommunications service, utility
service and a use tax; and
WHEREAS, it is in the best interest of the Town that the Council adopt the recommendations of
the Committee by increasing the current construction contracting tax, and instituting taxes for
telecommunications service, utility service and a use tax.
NOW, THEREFORE, BE IT ORDAINED by the Mayor and the Council of the Town of Oro
Valley, Arizona that the certain document, known as "The Tax Code of the Town of Oro Valley,
Arizona," is hereby amended as follows:
SECTION 1. Section 8A-415 (a) of the Tax Code of the Town of Oro Valley is amended as
follows, with additions being shown in ALL CAPS and deletions in Strikeout text:
ORD to Amend Tax Code Office of the Oro Valley Town Attorney/JNA 9.22.2003
(a) The tax rate shall be at an amount equal to two FOUR percent (2 4%) of the
gross income from the business upon every construction contractor engaging or
continuing in the business activity of construction contracting within the Town.
SECTION 2. Section 8A-416 (a) of the Tax Code of the Town of Oro Valley is amended as
follows, with additions being shown in ALL CAPS and deletions in Strikeou—t :
(a) The tax shall be equal toe FOUR percent (2 4%) of the gross income from
the business activity upon every person engaging or continuing in business as a
speculative builder within the Town.
SECTION 3. Section 8A-417 (a) of the Tax Code of the Town of Oro Valley is amended as
follows, with additions being shown in ALL CAPS and deletions in Strikeout-text
(a) At the expiration of twenty-four (24) months after improvement to the
property is substantially complete, the tax liability for an owner-builder who is
not a speculative builder shall be at an amount equal to twe FOUR percent (2
4%) of:
SECTION 4. Pursuant to ARS § 41-1346, the Town shall maintain efficient record management
for localp ublic records and it has been determined that this Ordinance is a public record with
three copies of said Ordinance to remain on file in the office of the Town Clerk.
SECTION 5. All Oro Valley Ordinances, Resolutions, or Motions and parts of Ordinances,
Resolutions, or Motions of the Council in conflict with the provisions of this Ordinance are
hereby repealed.
SECTION 6. If any section, subsection, sentence, clause, phrase or portion of this Ordinance is
for any reason held to be invalid or unconstitutional by the decision of any court of competent
jurisdiction, such decision shall not affect the validity of the remaining portions thereof.
PASSED AND ADOPTED by Mayor and Town Council, the Town of Oro Valley, Arizona,
this day of , 2003.
TOWN OF ORO VALLEY
ATTEST: Paul H. Loomis, Mayor
Kathryn E. Cuvelier, Town Clerk
APPROVED AS TO FORM:
Mark J. Langlitz, Town Attorney
ORD to Amend Tax Code Office of the Oro Valley Town Attorney/JNA 9.22.2003
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SUMMARY SY SHEET
Local Tax Description: Telecommunication Services
{ Town Code Sections: 8A-470
Proposed
Set the
local sales tax rate for telecommunication services at 4%. Current rate is 0%.
Telecommunication services include among other items, local telephone services,
intrastate long distance, and cable television services.
Revenue Impact
Telephone services: 37,260 population;ulation; 2.41 persons per household; $40 per month
average bill; 4%rate yields $297,000 annually.
Cable television services: $378,000 collections at 5% franchise fee yields $302,000
annually at 4% local sales tax rate.
Special Considerations
Local Option DD which exempts cable TV income from the local sales tax will need to be
generate to order
in
local sales tax revenues for this item. This income would be
in addition to the 5%franchise fee currently collected by the Town.
.
ORDINANCE NO. (0) 03 -
AN
ORDINANCE OF THE TOWN OF ORO VALLEY, ARIZONA
AMENDING THE TAX CODE OF THE TOWN OF ORO VALLEY,
ARTICLE IV, CHAPTER 8A, SECTION 470 RELATING TO THE
TELECOMMUNICATIONS TAX RATE AND REPEALING ALL
RESOLUTIONS, ORDINANCES, AND RULES OF THE TOWN OF ORO
VALLEY IN CONFLICT THEREWITH; PRESERVING THE RIGHTS
AND DUTIES THAT HAVE ALREADY MATURED AND PROCEEDINGS
THAT HAVE ALREADY BEGUN THEREUNDER.
WHEREAS, Arizona cities and towns have the authority to levy taxes under ARS § 9-
240(B)(26); and
WHEREAS, on July 13, 1988, the Town of Oro Valley adopted the Model City Tax Code
("Code") pursuant to Arizona law; and
WHEREAS, amendments to the Code are required to be made in accordance with ARS § 42-
6054; and
WHEREAS, on December 4, 2002, the Mayor and Town Council (the "Council") directed the
Oro Valley Budget and Bond Committee (the "Committee") to develop a proposed Town
Revenue Plan ("Plan"); and
WHEREAS, in a joint Study Session between the Council and the Committee held on March 24,
2003, the Committee presented an initial draft of the Plan to Council; and
WHEREAS, in a further joint Study Session between the Council and the Committee held on
August 18, 2003, the Council directed the Committee to develop a prioritized list of local sales
and use taxes for future Council consideration based on the Plan; and
WHEREAS, the Committee developed the priority list, which recommends increasing the
current construction contracting tax and instituting taxes for telecommunications service, utility
service and a use tax; and
WHEREAS, it is in the best interest of the Town that the Council adopt the Committee's
recommendations by increasing the current construction contracting tax and instituting taxes for
telecommunications service, utility service and a use tax.
NOW, THEREFORE, BE IT ORDAINED by the Mayor and the Council of the Town of Oro
Valley, Arizona that the certain document, known as "The Tax Code of the Town of Oro Valley,
Arizona," is hereby amended as follows:
SECTION 1. Sections 8A-470(a) and (e) of the Tax Code of the Town of Oro Valley is
amended as follows, with additions being shown in ALL CAPS and deletions in Strikeout tom:
ORD to Amend Tax Code Office of the Oro Valley Town Attorney/JNA 9.22.2003
(a) The tax rate shall be at an amount equal to zero FOUR percent (8 4%) of the gross income
from the business activity upon every person engaging or continuing in the business of providing
telecommunication services to consumers within this Town.
• .
•
(e) - • • - = : - • - - •.. .. - -
• •.. . •.. .• .-. •. £ • •. 1 . .- - -.. . • •.. .•
tax imposed by this Section. (RESERVED)
SECTION 2. Pursuant to ARS § 41-1346, the Town shall maintain efficient record management
for local public records and it has been determined that this Ordinance is a public record with
three copies of said Ordinance to remain on file in the office of the Town Clerk.
SECTION 3. All Oro Valley Ordinances, Resolutions, or Motions and parts of Ordinances,
Resolutions, or Motions of the Council in conflict with the provisions of this Ordinance are
hereby repealed.
SECTION 4. If any section, subsection, sentence, clause, phrase or portion of this Ordinance is
for any reason held to be invalid or unconstitutional by the decision of any court of competent
jurisdiction, such decision shall not affect the validity of the remaining portions thereof.
PASSED AND ADOPTED by Mayor and Town Council, the Town of Oro Valley, Arizona,
this day of , 2003.
TOWN OF ORO VALLEY
ATTEST: Paul H. Loomis, Mayor
Kathryn E. Cuvelier, Town Clerk
APPROVED AS TO FORM:
Mark J. Langlitz, Town Attorney
ORD to Amend Tax Code Office of the Oro Valley Town Attorney/JNA 9.22.2003
yS-wP
4�..:„I.-
SUMMARY SHEET
•
Local Tax Description: Utility Services
Town Code Sections: 8A-480
Proposed
Increase the local sales tax rate on utility services from the current rate of 0%to a
proposed rate of 4%. Utility services include electricity, gas, and water.
Revenue Impact
For purposes of estimation, the average monthly consumption of gas and electricity was
assumed to be $150. 15,461 households; 2.41 persons per household; 4% local tax rate
yields, $1,115,000 annually.
Annual water sales by the Oro Valley Water Utility are approximately$8,600,000
including $870,000 in water sales for "Countryside". A 4% local sales tax rate on all
water sales would yield approximately$344,000 annually.
Special Considerations
The revenue estimate for water sales includes sales to customers outside the Town's
corporate limits that are located in the "Countryside" area. The de-reservation of local
option GG, Section 8A-480 (a)(2) would tax these water sales.
ORDINANCE NO. (0) 03 -
AN ORDINANCE OF THE TOWN OF ORO VALLEY, ARIZONA
AMENDING THE TAX CODE OF THE TOWN OF ORO VALLEY,
ARTICLE IV, CHAPTER 8A, SECTION 480, RELATING TO THE
UTILITY SERVICES TAX RATE AND REPEALING ALL
RESOLUTIONS, ORDINANCES, AND RULES OF THE TOWN OF ORO
VALLEY IN CONFLICT THEREWITH; PRESERVING THE RIGHTS
AND DUTIES THAT HAVE ALREADY MATURED AND PROCEEDINGS
THAT HAVE ALREADY BEGUN THEREUNDER.
WHEREAS, Arizona cities and towns have the authority to levy taxes under ARS § 9-
240(B)(26); and
WHEREAS, on July 13, 1988, the Town of Oro Valley adopted the Model City Tax Code
("Code") pursuant to Arizona law; and
WHEREAS, amendments to the Code are required to be made in accordance with ARS § 42-
6054; and
WHEREAS, on December 4, 2002, the Mayor and Town Council (the "Council") directed the
Oro Valley Budget and Bond Committee (the "Committee") to develop a proposed Town
Revenue Plan ("Plan"); and
WHEREAS, in a joint Study Session between the Council and the Committee held on March 24,
2003, the Committee presented an initial draft of the Plan to Council; and
WHEREAS, in a further joint Study Session between the Council and the Committee held on
August 18, 2003, the Council directed the Committee to develop a prioritized list of local sales
and use taxes for future Council consideration based on the Plan; and
WHEREAS, the Committee developed the priority list, which recommended increasing the
current construction contracting tax, and instituting taxes for telecommunications service, utility
service and a use tax; and
WHEREAS, it is in the best interest of the Town that the Council adopt the recommendations of
the Committee by increasing the current construction contracting tax, and instituting taxes for
telecommunications service, utility service and a use tax.
NOW, THEREFORE, BE IT ORDAINED by the Mayor and the Council of the Town of Oro
Valley, Arizona that the certain document, known as "The Tax Code of the Town of Oro Valley,
Arizona," is hereby amended as follows:
SECTION 1. Section 8A-480 (a) of the Tax Code of the Town of Oro Valley is amended as
follows, with additions being shown in ALL CAPS and deletions being shown in :
ORD to Amend Tax Code Office of the Oro Valley Town Attorney/JNA 9.22.2003
(a) The tax rate shall be at an amount equal to zero FOUR percent (8 4%) of the
gross income from the business activity upon every person engaging or
continuing in the business of producing, providing, or furnishing utility services, •
including electricity, electric lights, current, power, gas (natural or artificial), or
water to:
SECTION 2. Pursuant to ARS § 41-1346, the Town shall maintain efficient record management
for local public records and it has been determined that this Ordinance is a public record with
three copies of said Ordinance to remain on file in the office of the Town Clerk.
SECTION 3. All Oro Valley Ordinances, Resolutions, or Motions and parts of Ordinances,
Resolutions, or Motions of the Council in conflict with the provisions of this Ordinance are
hereby repealed.
SECTION 4. If any section, subsection, sentence, clause, phrase or portion of this Ordinance is
for any reason held to be invalid or unconstitutional by the decision of any court of competent
jurisdiction, such decision shall not affect the validity of the remaining portions thereof
PASSED AND ADOPTED by Mayor and Town Council, the Town of Oro Valley, Arizona,
this day of , 2003.
TOWN OF ORO VALLEY
ATTEST: Paul H. Loomis, Mayor
Kathryn E. Cuvelier, Town Clerk
APPROVED AS TO FORM:
Mark J. Langlitz, Town Attorney
ORD to Amend Tax Code Office of the Oro Valley Town Attorney/JNA 9.22.2003
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TOWN OF ORO VALLEY
COUNCIL COMMUNICATION MEETING DATE: January 12, 2004
TO: HONORABLE MAYOR & TOWN COUNCIL
FROM: Chuck Sweet, Town Manager
SUBJ: ORO VALLEY PROJECTS - PIMA COUNTY BOND ELECTION MAY
2004
SUMMARY:
This agenda item is on this afternoon's agenda in order to provide Town Council an
opportunity to review the current list of Oro Valley projects that the Pima County Board
of Supervisors are considering for the proposed May 2004 Bond Election.
The following is a list of Oro Valley projects as it stands today:
➢ Kelly Ranch $2.5 million
➢ Steam Pump Ranch $2.0 million
➢ Honey Bee Village $1.0 million
➢ Oro Valley Public Library Expansion $1.1 million
Bob Jennens, currently representing the Town of Oro Valley on the Pima County Bond
Steering Committee, has been invited here tonight to provide input from his prospective
regarding these bond projects and to answer any questions you might have.
Chuck Sweet
Town Manager
PIMA COUNTY BOARD OF SUPERVISORS 5es C.11L1 114Th
JrP DISTRICT 3
j r, 130 WEST CONGRESS STREET, 11 FLOOR
��' ' '' ' TUCSON,ARIZONA 85701-1317
\*I t' 1;;! (520)740-8126
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1-4,0)9".-/ /
ddurazo@exchange.co.pima.az.us
SHARON BRONSON
LESLIE NIXONEXECUTIVE ASSISTANT
CHAIR
DIANA DURAZO-GRUBB
SPECIAL STAFF ASSISTANT
January 7, 2004 KAnE MODAFFERI
SPECIAL STAFF ASSISTANT
KIKI BARCELO
SPECIAL STAFF ASSISTANT
The Honorable Paul Loomis, Mayor
Town of Oro Valley
11000 North La Canada Drive
Oro Valley, Arizona 85737-7015
Re: Joint Meeting on the County Bond Advisory Committee Recommended May 2004
Bond Program
Dear Mayor Loomis:
In a letter dated December 4, 2003, Mayor Walkup requested a joint meeting of the Board of
Supervisors and Tucson Mayor and Council to discuss the May 2004 bond program recommended
by the County Bond Advisory Committee. At the meeting of December 9, 2003, the Board voted
unanimously to refer the question of a joint meeting to the County Bond Advisory Committee for
their recommendation. We referred this question to the Committee out of deference to the
Committee for its hard work.
The Committee met yesterday to consider the issue of a joint meeting. The Committee's
unanimous decision was that the Committee would host a joint meeting of the governing bodies
of all local jurisdictions, with the purpose of allowing the Committee to present its
recommendations to the local elected officials, facilitate a public dialogue between elected
officials, and solicit support from the officials for the recommended bond program. The
Committee was concerned that there would not be enough time for the Board of Supervisors to
call the meeting because its next meeting is not until January 13, 2004 and a decision on the
bonds must be made by January 2.0, 2004. The Committee determined that an evening meeting
on January 14, 2003, from 7:00 p.m. to 9:00 p.m., would be preferable, since more people could
attend an evening session prior to the January 20, 2003 Board of Supervisors meeting. The
meeting will be held at the Manning House.
I believe that the Committee has made a valuable and constructive offer. I am writing to invite
you and the City Council to this meeting.
Sincerely,
iiiiiiir
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Sharon Bronson, Chair
Pima County Board of Supervisors
c: The Honorable Members, Pima County Board of Supervisors
C.H. Huckelberry, County Administrator
Chuck Sweet, Manager, Town of Oro Valley
Larry Hecker, Chair, Pima County Bond Advisory Committee
Bob Jennens, Member, County Bond Advisory Committee
NOTICE OF PUBLIC MEETING
Section 7.6.2
Notice of Public Meeting of the
Pima County Bond Advisory Committee
Pursuant to A.R.S. §38-431.02, notice is hereby given to the members of the Pima County Bond
Advisory Committee and to the general public that the Pima County Bond Advisory Committee will
hold a meeting open to the public on:
January 14, 2004
7:00 p.m.
The Manning House
450 West Paseo Redondo
Tucson, Arizona
AGENDA:
1. Welcome/Introduction/Agenda and Purpose for meeting Larry Hecker
2. Welcome from Pima County Board of Supervisors Sharon Bronson
3. Presentation of County Bond Advisory Committee recommendations for
a May 18, 2004 County bond election Larry Hecker
4. Comments/discussion from Jurisdictions
Town of Marana
Town of Oro Valley
Town of Sahuarita
City of South Tucson
City of Tucson
Tohono O'Odham Nation
Pascua Yaqui Tribe
5. Call to the audience
1\1\01/40)150
6. Adjournment
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Jan 11 04 06: 53p Tom & Karen Rogers 520-742-5033 p. 1
"HELM-
THE LAND CONSERVATION COMMITTEE
t�.t...a . .P ¢tr ..ra■+. � • � . •tae• ••
503 W.Flaxen Drive
Oro Valley,AZ 85737
Phone(520)498.5024
ovticc@yahoo.com
January 11,2004
Town of Oro Valley
Town Council
11,000 N.LaCanada Drive
Oro Valley,AZ 85 737
RE:Pima County Bond Issue,Oro Valley Requests
Dear Mayor Loomis and Town Council Members,
This letter is concerning the upcoming Pima County Bond issue
The Land Conservation Committee (TLCC) understands that the current allocations may be
shifted to other areas. We strongly recommend that the current requests for Steampump Ranch,
Kelly Ranch, and Honey Bee Village remain as is. These areas represent the cultural, historical
and environmental resources that connects Oro Valley with its past and will provide our heritage
for future generations.
Once again, we urge the Town Council not to approve reallocation of Bond funds to other areas
within the town.
Sincerely,
a7/2(r,i4.40,1,1,4#.0 j3
Al Kunisch
Chairperson TLCC
Copy to:
Chuck Sweet, Oro Valley Town Manager
Bob Jennens
Linda Mayro,Cultural Resources Manager,Pima County Administrator Office
Bill Collins,Historian, State Historic Preservation Office,State of Arizona
THE LAND CONSERVATION COMMITTEE
AL KUNISCH—CHAIR. KAREN ROGERS—SECRETARY MARILYN COOK
DICK EGGERDING RICHARD EEINBER.G JIM KRIEGH PAT SPOERL
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