HomeMy WebLinkAboutPackets - Council Packets (1234)Council Meeting
Regular Session
May 15, 2019
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Town Council Meeting Announcements
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Upcoming Meetings
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Upcoming Meetings
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Fiscal Year 2018/2019
Financial Update Through March 2019
May 15, 2019
Thank you Mayor and Council, I’m pleased to report that the Town’s finances continue to perform well and within budget through the month of February
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General Fund
In the General Fund, total revenues collected this year through Feb are $25.6M compared to $25.2M collected last year through this month. We are about 67% of the way through the fiscal
year, and trending right in line with where we expect to be.
Expenditures through Feb total $25.2M compared to $22M spent last fiscal year through this month.
So through the month of February total collected revenues exceed expenditures by just over $325,000.
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General Fund Highlights
Local sales taxes trending over budget by $264K
State-shared revenues trending on budget
Revenues estimated to end year over budget by $159K
Expenditures estimated to end year under budget by $2.0M
OV Marketplace tax rebates ended 12/31/18, savings of $260K
No subsidy transfer to Highway Fund
Year-end fund balance estimated at $15.7M
A few highlights in the General Fund :
Local sales taxes are trending to end the year over budget by $264K, driven primarily by a slight uptick in construction sales tax collections over the past few months.
Meanwhile, State shared revenues are trending right on budget at year-end
Overall, we are estimating to end the year with revenues coming in a very slight 2 tenths of a percent (.2%) under budget or about $64K
Gen Fund expenditures are estimated to come in under budget by about $1.9M, with about $577K due to personnel savings, $772K due to O&M savings, of which about $260K in savings is due
to the expiration of the OV Marketplace sales tax rebate ending as of December 31st. The remainder of the savings is due to not making the subsidy transfer to the Highway Fund in anticipation
of the planned move of some of the Highwy Fund expenses into the General Fund next fiscal year as mentioned in the budget presentation.
As a result, the ending fund balance is estimated at $15.4M.
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Highway Fund
In the Highway Fund, total revenues collected this year through Feb are $2.4M compared to $2.3M collected last year through this month. The total revenue budget is $4.1M.
Expenditures through Feb total $2M compared to $2.5M spent last fiscal year through this month. Total expenditure budget is $4.6M.
So through the month of February total collected revenues exceed expenditures by just over $475,000.
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Highway Fund Highlights
HURF gas tax revenues trending over budget by $328K
Revenues estimated to end year under budget by $236K
No subsidy transfer from General Fund
Expenditures estimated to end year under budget by $286K
Year-end fund balance estimated at $493K
For Highway Fund highlights, HURF gas tax revenues are still trending over budget by $328K
Overall, revenues are estimated to come in under budget by $279K mainly due to the eliminated need for the General Fund subsidy transfer
Expenditures are estimated to come in under budget by $264K due to the Tangerine Access to Safeway CIP project of $250,000 rolling over to next year’s budget.
Year –end fund balance is estimated at $428K
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Community Center Fund
In the Community Center Fund, total revenues collected this year through Feb are $4.2M compared to $4.3M collected last year through this month. The total revenue budget is $6.7M.
Expenditures through Feb total $3.9M compared to $4.3M spent last fiscal year through this month. Total expenditure budget is $6.6M.
So through the month of February total collected revenues within the fund exceed expenditures by just over $290,000.
(savings – tennis, water, management fee)
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Community Center Fund Highlights
Total fund revenues estimated to end year under budget by $89K
Total fund expenditures estimated to end year under budget by $373K
Year-end fund balance estimated at $302K
Overall, total revenues at year-end are estimated to come in about 2% or $139K underbudget
Total expenditures are estimated to end the year under budget by $369K
With a year-end fund balance in the fund of $248K
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QUESTIONS?
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Oro Valley Town Centre rezoning (PAD Amendment)
Town Council
May 15, 2019
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Good evening Mayor, members of the Council
My name is…
Purpose
Proposed rezoning to Area 4
Background
Applicant’s revised proposal
Area 4
Our Purpose is to consider a revised rezoning application for the OVTC PAD
Background on the PAD
Briefly discuss the applicant’s proposed changes following the meeting in March
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Oracle Road
Pusch View Lane
1st Avenue
El Con Patio Homes
La Reserve
Subject Property
Area 4
Subject property located at…
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Existing
Proposed – 3.6.2019
Revision
I’d like to walk thru the changes to the site plan regarding
Lots
Lot size
Open space
Max cut
Setback from Oracle Rd.
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Area 4 Changes & New Information
Oracle Rd.
Lots - 77
4 Lot sizes
6,000 sf (16 lots or 20%)
6,600 sf (15 lots or 19%)
7,200 sf (6 lots or 9%)
7,500 sf (40 lots or 52%)
Side setbacks
7.5 ft. (80%)
5 ft. (20%)
Setback from El Conquistador Patio Homes
Open space - 72% preservation
Grading
Fill no more than 8 ft.
Reduced number of lots with avg. cuts more than 8 ft. (23 14)
Recreation Area & Trails
Roads
Realigned access road
Removed 2 roads
Noise
In response to feedback received during the March meeting, the applicant has incorporated numerous changes. I would like to briefly highlight those changes as the applicant is going
to go into much greater detail. Those changes include:
Reducing the total number of lots to 77
Increasing the side setbacks to 7.5 feet for 80% of the subdivision
Increasing the open space % to 72%
Reducing the amount of fill and cuts for a number of lots
Moving the rec area to a less visible location
Additional trails to improve connectivity
Removing several roads to help preserve more natural open space
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Summary and Recommendation
Similar footprint as approved site plan
Larger lot sizes than nearest neighborhood
Neighborhood resolutions
Revisions to address concerns
Planning and Zoning Commission recommends approval
Summary:
- similar footprint
- larger lot sizes than nearest neighborhood
- compromises with neighbors are still maintained
PZC has recommended approval
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OVTC PAD AMENDMENT REQUEST
AREA 4
APPLICANT PRESENTATION TO TOWN COUNCIL
MAY 15, 2019
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PRIMARY ISSUES AND CONCERNS DISCUSSED AT MARCH 6, 2019 TOWN COUNCIL HEARING
EROSION CONTROL
GRADING
OPEN SPACE
SIDE YARD SETBACKS/DISTANCE BETWEEN HOUSES
NOISE FROM ORACLE ROAD
RECREATION AREA
TRAIL CONNECTIVITY
MIX OF USES IN PAD
VIEWS FROM ORACLE ROAD
ORACLE ROAD SCENIC CORRIDOR OVERLAY DISTRICT (ORSCOD) EXCEPTIONS
WALKABILITY
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SITE PLAN PRESENTED ON MARCH 6, 2019
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PROPOSED SITE PLAN
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PREVIOUS PLAN
PROPOSED PLAN
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GRADING
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OPEN SPACE
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OPEN SPACE AREA COMPARISON – PROPOSED AND EXISTING (WITH CONSTRUCTED OPEN SPACE)
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NOISE
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TRAIL CONNECTIVITY
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MIX OF USES IN THE PAD
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VIEWS FROM ORACLE ROAD
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LOT SIZES
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SLOPE TREATMENTS
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LOT SIZE COMPARISON EXHIBIT AND COMPATIBILITY WITH SURROUNDING DEVELOPMENT
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WILDLIFE CONNECTIVITY
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COMMUNITY OUTREACH
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87 LOT SITE PLAN SHOWN AT FIRST NEIGHBORHOOD MEETING IN APRIL 2018
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SITE PLAN SHOWN AT SECOND NEIGHBORHOOD MEETING IN NOVEMBER 2018
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CURRENT SITE PLAN
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SITE PLAN COMPARISON
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CURRENT SITE PLAN
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EXISTING SITE PLAN
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THANK YOU FOR THE OPPORTUNITY TO PRESENT THE PROJECT TO YOU TONIGHT!
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RESERVE SLIDES FOR USE DURING DISCUSSION AS NEEDED
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AERIAL PHOTO
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LIMITS OF COMMERCIAL AND RESIDENTIAL AREA
EXHIBIT CC-1
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LANDSCAPE BUFFER
EXHIBIT CC-2
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SLOPE TREATMENT OPTIONS
EXHIBIT CC-3
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ENTRY ROAD LANDSCAPE BUFFER
EXHIBIT CC-4
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EXISTING AND PROPOSED CONCEPTUAL GRADING PLAN
EXHIBIT CC-1
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PRELIMINARY CUT AND FILL PLAN – PREVIOUS PLAN
EXHIBIT CC-9
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PRELIMINARY GRADING LIMIT COMPARISON
EXHIBIT CC-10
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EXISTING PAD SITE PLAN – AREA 4
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WASH CORRIDORS
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EXISTING TOPOGRAPHY
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RICHARD AMERICAN HOUSING
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VIEWSHED ANALYSIS
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20 FEET BETWEEN HOUSES
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EXISTING PAD SITE PLAN
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EXISTING TDP
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RIDGE TOP HOUSES IN EXISTING PAD PLAN
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Oro Valley Water Utility
FY 2019-20
Water Rates Presentation
May 15, 2019
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The Water Utility is an Enterprise Fund
Oro Valley Water Utility
Self-supporting and funded solely from Utility revenues
All revenue is used for operating costs of the Utility
Does not receive any funds from the Town’s General Fund
Pays administrative service costs to the General Fund for departmental support
Mayor and Council Water Policies require annual review of
the water rates
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Water rate setting goals
Water rates are developed to generate sufficient revenue that:
Meets revenue and cash reserve requirements
Meets debt service coverage requirements
Promotes water conservation
Enhances revenue stability and predictability
Levelizes increases to avoid rate shock
Be based on cost of service - fair to all user classifications
Maintains the overall financial health of the Utility
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Water Utility rate analysis utilizes assumptions provided by the General Fund and those specific to the Water Utility
Water rate analysis assumptions
General Fund
Employee health care costs
Employee merit increases
Administrative fees
Interest rates
Inflation rates
Growth rates
Water Utility
Maintain staffing level
Water resource management
Capital projects
Planned use of cash
Debt management
Water use trends
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Recommendation on water rates
Recommendation:
Increase potable water base rates only
No increases for the following:
Potable water commodity rates
Reclaimed water rates
Groundwater preservation fees
Service fees
Recommendation reflects preferred financial scenario
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Why do we increase base rates?
Utility’s revenue is generated from base rates and commodity rates
Base rates generate a consistent revenue stream regardless of water
usage
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Proposed rates by meter size
What does the rate increase look like and for whom?
87% of our customers have a 5/8-inch meter and will see a $1.81 per month increase in their bill regardless of how much water they use.
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Base rate comparisons
Comparison of 5/8-inch base rates to other service providers
87% of Oro Valley Water customers use a 5/8-inch meter
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Cost comparisons
Comparison of monthly bills to other service providers
for a 5/8-inch SFR meter. The average Oro Valley customer
will see $1.81 or 4.6% increase in their bill.
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The Utility’s financial plan is the sum of many parts
In summary …
Components include assumptions for:
Growth, inflation, regulatory changes, strategic planning efforts
Planned use of cash; new debt for capital projects
Policy requirements – cash reserves, debt service coverage
Increase fixed cost recovery
Levelized rate increases over multiple years
Impact of not increasing rates in FY 2019-20
Utility will not meet the budgeted revenue
Utility will meet all budgeted expenses for operations, capital and debt service
Potential rate shock in meeting future revenue and cash reserve requirements
The proposed rate increase for FY 2019-20 is key in ensuring the
financial health of the utility over the next 3 to 5 years.
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Recommendation for approval
The Water Utility Commission and Water Utility staff
respectfully recommend approval of the proposed increase
to the potable water base rates for FY 2019-20.
If the proposed rates are approved, they will become
effective on June 15 and will be reflected on the water bills
beginning in July of the new fiscal year.
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Questions?
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FY 2019/20
Tentative Budget Adoption
May 15, 2019
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FY 2019/20 Budget Timeline
MARCH 1
Department budget requests due to Finance
JANUARY
One-on-one meetings with Councilmembers to outline budget priorities
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FY 19/20 Tentative Budget by Fund
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Changes from Recommended Budget of $110.3M
Preservation of separate Community Center Fund – budget increase of approximately $546K for contingency reserve balance
Capital Outlay and CIP
Roll over FY 18/19 Town campus roof replacement CIP project – budget increase of $225K
Reduced cost for CED/PW safety improvement project, from $375K to $295K – budget decrease of $80K
Operations & Maintenance
Increase Fleet Maintenance O&M budget by $100K for fuel (General Fund) – net zero budget impact; offset with reduction in budgeted contingency reserve
Tentative Budget Total = $111,019,716
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FY 19/20 Revenue Sources - $111.0M
This slide depicts the revenue sources and beginning fund balances of all funds included in the budget of $142.9M. Our fund balances make up nearly $48M or 33% of the budget, while sales
taxes comprise 15% at $21.8M, Charges for Svcs at 8% or $11.3M, State Shared revenues at 11% or $15M, Water Sales at 9% or $13.2M and Outside Funding Sources (mainly PAG and RTA funds)
at 17% or $23.9M.
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FY 19/20 Expenditure Categories - $111.0M
This slide depicts the Town’s expenditure categories with the Personnel making up about a quarter of the budget at $34.4M, O&M at nearly $28M, Capital at $32.2M, Debt Service at $7.4M
and our Contingency Reserves at $41.3M.
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FY 19/20 Capital Improvement Program (CIP)
Total CIP projects for FY 19/20 = $32,682,039
The Capital Improvement Program for FY 18/19 is displayed on this slide and totals $31.2M.
You will notice that the largest segment of this budget is for street/road improvements at $15.5M, mainly for La Cholla widening, with outside funding from the RTA.
Water system improvements at $4.8M
Cover others…
The full detailed listing of all projects is included in the budget document.
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FY 19/20 General Fund Overview
SOURCES
$39,356,221
USES
$41,882,540
$2.5M planned use of reserves for one-time expenditures and set-aside funding for future years
Ending fund balance of $12.8M = 30.7% of expenditures
This slide is a quick snapshot of the General Fund Budget totaling nearly $42M, excluding the fund balance amount. As you can see, we now have a planned use of reserves for one-time
capital expenditures of $3.1M. The estimated ending fund balance is $12M or 28.5% of our expenditure budget, which is well above the Council policy of 25%.
Just a few highlights – on the revenue sources chart – 80% of General Fund revenues come from local sales tax and state shared revenues. Just a reminder – town does not collect property
taxes to fund its operations.
On the Uses Chart – Personnel costs comprise 64% of the budget as is fairly common in local government.
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Final Notes and Next Steps
Tentative Budget adoption sets the maximum spending ceiling
Final Budget cannot exceed Tentative Budget maximum amount
Council has authority to amend budget throughout the fiscal year
Publish Tentative Budget for two consecutive weeks
Final Budget approval and public hearing set for June 5th regular session
Finally, tonight’s adoption of the Tentative Budget sets the maximum spending cap of $142.9M. When we come back on June 6th for adoption of the Final Budget, any potential changes to
the budget cannot cause this cap to be exceeded.
It’s important to note that the Council has the authority to amend the budget throughout the fiscal year.
After the spending cap is set tonight, we will publish the budget for 2 consecutive weeks and plan to hold our 2nd public hearing for the final adoption of the budget on June 6th.
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Questions?
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