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HomeMy WebLinkAboutPackets - Council Packets (1265)Council Meeting Regular Session and Study Session January 22, 2020 1 Town Council Meeting Announcements 2 Upcoming Meetings 3 Upcoming Meetings 4 5 6 Steam Pump Ranch Past to Present Presentation January 22, 2020 7 Steam Pump Ranch – Past to Present Steam Pump Ranch The Pusch/Zellweger era (1870’s – 1930’s) Proctor/Leiber era (1933 - 2004 Pima County Bond Formation of Historic Preservation Commission (HPC) and the Oro Valley Historical Society (OVHS) Acquisition and Stabilization Preservation projects Programs and events Looking forward 8 Steam Pump Ranch 9 The Pusch/Zellweger era (1870’s – 1930’s) Matilda, George Jr. George, Gurtrude (family dog under table) 10 Proctor/Leiber era (1933 – 2007) Jack Proctor and Prize Bull Guests partying in sun porch 11 Proctor/Leiber era (1933 – 2007) Hank and Betty Leiber 12 2004 Pima County Bond Pima County Bond (2004) issue project for the Steam Pump Ranch Acquisition $2,000,000 for Steam Pump Ranch (SPR) $3,000,000 transferred from the Naranja Townsite Project to SPR Intergovernmental Agreement approved October 6, 2006 Preservation easement – to assure that the architectural, historic, landscape, and culture features of the Site will be retained and maintained forever… 13 The Commission and The Society Missions Historic Preservation Commission (HPC) Adopted October 2006 The mission of the HPC is to promote the educational, cultural and economic welfare of the Town of Oro Valley by ensuing the preservation of historic buildings, districts, landmarks, structures, documents, photographs and other artifacts that represent the historic background and development of the greater Oro Valley area. Oro Valley Historical Society (OVHS) Incorporated July 2005 The mission is to promote, research, preservation, education and dissemination of history related to the greater Oro Valley area. The OVHS is a nonprofit 501(c)3 organization. 14 Acquisition and Improvements 15 Pump House and Ghosted Structure 16 Chicken Coop Preservation 17 Pusch House Repairs and Landscape 18 Programs and Events 19 Saturday’s at SPR Concert series Special events Youth recreation Senior recreation Programming Preservation Looking forward Landscape plan implementation The Garage The BBQ (Carlo’s house) Proctor/Leiber house Bunkhouses Pusch House security 20 Next steps FY19/20 CIP implementation Adaptive reuse analysis – SHPO grant Parks and Recreation Needs Assessment and Master Plan Future Capital Improvement prioritization plan 21 22 Town of Oro Valley Town Council Presentation Heinfeld, Meech & Co., P.C. 23 Town of Oro Valley Financial Statements 2019 Audit Presented by: Christopher W. Heinfeld, CPA 24 Financial Statements Comprehensive Annual Financial Report (CAFR) Introductory Section Transmittal Letter, Organizational Chart, List of Principal Officials Financial Section Auditor’s Report Management’s Discussion and Analysis Basic Financial Statements Required Supplementary Information (RSI) Combining and Individual Fund Financial Statements and Schedules Statistical Section 25 25 Audit Approach Planning Procedures On-site (fieldwork) Procedures 2 weeks on-site 3-4 individuals each visit Revenues, expenditures/expenses, and cash and investments Receivables, liabilities, capital assets, debt, pension and OPEB related accounts and activity, information technology, fund balance/net position classifications/restrictions Wrap-up (concluding) Procedures 26 26 Final Notes Questions and Comments Access to Auditors: Christopher W. Heinfeld, CPA christopher.heinfeld@heinfeldmeech.com 520-903-6864 27 27 28 Fiscal Year 2019/2020 Financial Update Through November 2019 January 22, 2020 Thank you Mr. Mayor, members of the Council for the opportunity to present our August financials tonight. I’m pleased to report that things continue to look positive for the Town in all of our funds at this point in the fiscal year, with revenues trending at or over budget and expenditures trending at or under budget 29 General Fund In the General Fund, total revenues collected this year through Aug are $6.3M compared to $5.9M collected last year through this month. We are about 17% of the way through the fiscal year, and trending right in line with where we expect to be. Expenditures through Aug total $6.4M compared to $5.5M spent last fiscal year through this month. So through the month of August our total expenditures exceed total revenues by about $130K, which is typical at this point. Our summer months are lower in terms of revenue collections, and on the expenditure side, we always make our transfer out to the debt service fund in July for our debt service payments, so that entire transfer for the year is in the YTD expenditures, and we’ve also already made our $500K budgeted lump sum payment to PSPRS towards our unfunded liability. 30 General Fund Highlights Local sales tax collections estimated to exceed budget by about $1.7M or 8.7%, primarily due to construction & retail sales tax gains License and permit revenues estimated to exceed budget by $292K or 14.7%, due to residential and commercial building and grading permits Interest income estimated to exceed budget by $441K, due to better than expected interest earnings on investments Expenditures estimated to end year under budget by $320K or 0.8%, due to personnel savings Year-end fund balance estimated at $19.7M A few highlights in the General Fund : Local sales taxes are trending to end the year on budget, currently at about $3.0M or 15.6% of budget License and permit revenues are trending over budget, at almost $500K, or about 25% of budget. We budgeted 300 single family residential permits, and we’re already at 54 through August. We also had an unbudgeted commercial project, which is the expansion of Leman Academy, and that has contributed to our commercial building permit revenues. Overall for this category, we’re estimating to end the year about $200K over budget. State shared revenues are trending right on budget Charges for services revenues typically trend a little high early on in the fiscal year, due to summer recreation programs and aquatic revenues, so those are still expected to end the year on budget. Expenditures are estimated to end under budget by $170K due to personnel savings. Overall, we are estimating to end the year with expenditures exceeding revenues by about $2.2M and an ending fund balance of about $17.4M, or about 41% of budgeted expenditures. As a reminder, our Council-adopted reserve policy for the Gen Fund is 25% of expenditure, so very positive there 31 Highway Fund In the Highway Fund, total revenues collected this year through Aug are $823K compared to $581K collected last year through this month. The total revenue budget is $3.8M. Expenditures through Aug total $218K compared to $363K spent last fiscal year through this month. Total expenditure budget is $4.1M. So through the month of Aug total collected revenues exceed expenditures by just over $600,000. 32 Highway Fund Highlights HURF gas tax revenues expected to exceed budget by about $197K, due to a one-time distribution to Cities & Towns approved in the state budget Total revenues estimated to exceed budget by $290K primarily due to increased HURF and misc. revenue sources Expenditures estimated on budget at this time Year-end fund balance estimated at $820K For Highway Fund highlights, HURF gas tax revenues are expected to end the year over budget by about $200K, due to one-time allocation approved in final state budget. Total revenues estimated to end the year over budget by about $227K Expenditures are estimated on budget at this time Overall, expenditures expected to exceed revenues by about $110K, which results in a year-end fund balance of roughly $760K 33 Community Center Fund In the Community Center Fund, looking positive as well. Total revenues collected this year through Aug are $964K compared to $870K collected last year through this month. The total revenue budget is $6.7M. Expenditures through Aug are roughly flat to last fiscal year, at about $1.1M So through the month of Aug total expenditures within the fund exceed revenues by roughly $175K. To note, that figure was $252K last year through Aug, so seeing some improvement there. 34 Community Center Fund Highlights Revenues estimated to exceed budget by about $189K or 2.8%, due primarily to operating revenues related to outside play on the member course Expenditures estimated under budget by roughly $68K or 1.1% Total revenues in the fund projected to exceed total expenditures by $555K Year-end fund balance estimated at $1.1M Overall, total revenues at year-end are estimated to come in just over budget, by about $50K, due primarily to our contracted revenues for golf and F&B. Total expenditures are estimated about on budget, just under by about $6K Total revenues in fund projected to exceed total expenditures by $355K With a year-end fund balance of just over $850K 35 QUESTIONS? 36 37 Alternative Expenditure Limitation January 22, 2020 38 Background Arizona Constitution and Arizona Revised Statutes impose an expenditure limitation on every City and Town in the State. Baseline expenditures from FY 1979-80 FY 79/80 base - $272,317 State Economic Estimates Commission adjusts limitation each year Standard inflation rate Population growth FY 19/20 expenditure Limitation $25,711,875 39 Background FY 1979/80 Base Limit $272,317 Inflation adjustment 3.0822 Population adjustment 30.6332 FY 19/20 State-imposed limit $25,711,875 40 Background Expenditures from certain revenue sources are excluded from the expenditure limitation Bond proceeds Interest income Grants Intergovernmental revenues Staff estimate for exclusions total $14.3M 41 Estimated State-Imposed Limitation 42 Why doesn’t the State-Imposed Limitation work in Oro Valley? Assumes the 1979/80 budget provided sufficient service levels Parks and Recreation Water Service Does not account for new revenue sources Impact fees for new growth Additional water revenues Increases in sales tax rates Does not account for increases in commercial activity Growth factor covers population and average inflation Regional shopping destination 43 Home Rule Option Allows Town to set alternative expenditure limitation at adopted budget amount Local control Home Rule option has been in place for 40 years Must be approved by the voters Approval required every 4 years 44 Permanent Base Adjustment Option Permanent base adjustment modifies the expenditure base from 1979-80 One-time approval by the voters Reduction of election costs and staff time every 4 years Provides stability to service levels 45 Capital Projects/One-time Override Useful in instances where State-Imposed limitation is adequate for operating costs Must be approved by the voters Not a viable option for Oro Valley 46 Budget and Finance Commission (BFC) Town Manager requested BFC to review the State-Imposed Expenditure Limitation and make a recommendation to Council Alternative Expenditure Limitation options were presented to BFC at the November, December and January meetings BFC recommended forwarding the Permanent Base Adjustment option to Council for consideration (consistent with Staff recommendation) BFC recommended an adjustment of the FY 79/80 base limit to $1.65M (consistent with Staff recommendation) 47 Permanent Base adjustment to $1.65M 48 Base Adjustment to $1,650,000 FY 1979/80 Base Limit as adjusted $1,650,000 Inflation adjustment 3.0822 Population adjustment 30.6332 FY 19/20 State-imposed limit $155,789,120 49 Calendar 50 51 52