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Home My WebLink AboutPackets - Council Packets (1307)Council Meeting Study Session will begin at 8:15 p.m. May 20, 2020 1 2 Town Council Meeting Announcements 3 Upcoming Meetings 4 Upcoming Meetings 5 6 7 Overview of FY 2020/21 Town Manager’s Recommended Budget May 20, 2020 8 Overview Budget timeline Synopsis of Recommended Budget Financial Overview Economic Conditions and Revenue Projections Expenditure Highlights Strategic Leadership Plan focus areas Capital Investment Highlights 9 FY 2020/21 Budget Timeline MARCH Department budget requests due Community input via FlashVote FEBRUARY Council planning retreat to identify priorities for coming fiscal year Following same timeline as in previous years 10 Budget Snapshot FY 2020/21 Town Manager’s Recommended Budget Recommended Budget total = $100.9 M $10.1 M, or 9.1%, decrease from FY19/20 adopted budget General Fund is 3.7% less than last year $2.3 M in planned use of excess reserves; $900,000 for capital Ending fund balance is $14.8M (35.8% of budget), leaving $4.7 above Town Council 25% reserve policy $5 M in contingency included in General Fund 11 Year-over-Year Budget Comparison Financial Overview (Continued) These next few slides highlight additional details of the budget through charts and graphs This slide is a year over year comparison of the various categories in the budget – Personnel, O&M, Capital and Debt Service You will see the Personnel category of the budget is up by just about $1M, or 2.8%, over the current year budget, and this represents the Town’s investment in merit/steps, health benefits and pension costs. The O&M category is up by about $1.2M or 4.4% due to various increases we are seeing in software license costs, insurance, and some increased capacity in the Water Utility Fund for the purchase of groundwater extinguishment credits. The capital category is down slightly by about $1M due to the status of completion of some of the few multi-year projects, mainly the La Cholla widening project. Finally, debt service costs on our outstanding bonds is staying the same at about $7.4M 12 Financial Overview 13 Financial Overview (Continued) The Town’s budget is comprised of nearly 20 separate funds that collect revenue and budget expenditures for various purposes. This slide depicts the proportion of those funds in the budget. You can see the largest is, of course, our main operating fund, the General Fund at 42% of the budget. The General Fund is our most discretionary, non-restricted fund in terms of how we spend those revenues. While the other funds in the budget, the largest being the Water Utility Fund, along with the other funds shown to the left of that for self insurance, capital, PAG/RTA, impact fee funds, and debt service are restricted as to the purposes for which those funds are used. 14 Key Budget Factors – General Fund Economic Conditions/Revenue Projection Highlights FY 20/21 local sales tax revenues $1.2 M (6.1%) lower than adopted FY 19/20 budget Licenses and permit revenues $392,000 (19.7%) lower Projecting 225 SFR permits vs. 300 in current FY Commercial permit down 40% from projected year-end Charges for services $313,000 (12.3%) lower; most related to Parks and Recreation Increase of $664,000 (5.3%) in state shared revenues, attributable to a 12.3% increase in income-tax portion 15 Key Budget Factors – General Fund Expenditure Highlights Department operations and maintenance (O&M) budgets $1.2M (11.5%) lower than FY19/20 Personnel costs reflective of seven frozen positions through 12/31/20 No step or merit increases included Other personnel costs and benefits relatively flat except retirement costs (PSPRS up $289K; ASRS up $14K) $5M contingency funds included $1M in capacity for potential CARES Act expenditures 5% General Fund transfer to capital fund of $911,000 16 Town Operations Focus on continuing service levels - minimize community impact Conservative approach to personnel Maintain benefit levels to help keep employees whole, with planned premium holiday One new position in Water, authorization of PT to FT for IT Help Desk position Reclassification of 16 positions Addition of $1M in capacity for potential CARES Act funded programs to assist local businesses Continue necessary capital maintenance/replacements Adequate contingency to address unforeseen revenues losses and unexpected expenditures Preserve Town Council 25% Reserve for future, if crisis extends 17 Strategic Focus Area Investment Highlights Economic Vitality– UA Center for Innovation $30K; Visit Tucson $275K: Chamber $40K Recreation and Culture – Master Plan development $30K; targeted capital investments Public Safety – Training focus; 911 console replacement $220K Land Use – Plan to continue with code changes 18 Water, Roads and Town Assets – Recommendation to suspend potable water rate increase; Water Utility capital investments; Pavement preservation $1.5M; ongoing facility/asset maintenance Effective and Efficient Government – Innovation and Technology Department; continued investment in OV Peak Performance Town Finances – Conservative budgeting and substantial contingency of $5M; Opportunity to make additional payment to PSPRS at fiscal year-end. Strategic Focus Area Investment Highlights 19 Capital Funding Council financial policy requires excess reserves to be dedicated towards capital funding or PSPRS unfunded liability Prior transfers, required 5% annual set-asides, and additional $900,000 in excess reserves allow for funding of $3.6M in total capital projects from Capital Fund Some of the projects continued from FY 19/20 include the Naranja Park improvements, the generator at the Emergency Operations Center, and two new wells for the Water Utility Vehicle reserve program ensured available funding for needed vehicle replacements 20 Major Capital Investments - Highlights General Fund Replacement of permitting software - $200,000 IT backup hardware replacements - $200,000 911 console replacements - $220,000 MUP path repair for OV Marketplace - $400,000 Riverfront batting cage/bull pen - $140,000 ($67,000 private) Steam Pump Ranch Garage - $550,000 Main campus sidewalks/ADA - $200,000 Tennis court resurfacing - $90,000 14 vehicle replacements - $841,100 Non-General Fund Golf Course irrigation design/initial construction - $800,000 La Cholla widening - $3.6M for last phase ($1.8M impact fees) Pavement preservation - $1.5M Lambert Lane pavement overlay - $320,000 $9.3M for 22 capital projects in Water Utility 21 Financial Overview (Continued) Capital Improvement Program (CIP) Total CIP projects = $20.5M Town-wide This slide shows an overview of the Capital Program for next year totaling almost $33M. Nearly half of this amount is in the Streets/ Roads category for the La Cholla project and the pavement preservation program. The Water Utility has $7.6M in projects for next year, with a portion of those funded with the bonds we issued last year. Parks and Rec Facilities at $4.7M includes the $3M bond capacity for improvements to the golf courses. We also have vehicle replacements included and funded at about the same level as we did in the current year budget. These are paid for from our set aside funding in fleet reserves. We also show the investments in technology and some of our other facility improvements as well. 22 Awards and Accolades Government Finance Officers Association (GFOA) Distinguished Budget Presentation Award – 12th consecutive year GFOA Certificate of Achievement for Excellence in Financial Reporting – 27th consecutive year GFOA Popular Annual Financial Reporting (PAFR) Award – 7th consecutive year S&P Global updated the Town of Oro Valley’s bond rating to AA+/stable. The prior rating had been AA-. The Town has been fortunate to have been recognized in the past for its financial publications and we take very seriously our commitment to continue these efforts. Our goal is to continuously improve in this area and to enhance transparency and better understanding of the Town’s finances through the publication of our annual budget, Comprehensive Annual Financial Report (CAFR) and our Popular Annual Financial Report (PAFR). In fact, for those who are interested, copies of our latest PAFR are on the back table for the taking. And that concludes our presentation, Mr. Mayor and Council. 23 24 25 Parks and Recreation Master Plan 26 Agenda Influencing Factors - Demographics Community Engagement Prioritized Needs Next Steps 27 Influencing Factors 28 Population Town Average Annual Growth rate = 1% US Average Annual Growth Rate = 0.8% 29 Age Segmentation Today, 48.7% of the population is 55+ By 2034, 58.1% of population will be 55+ 30 Ethnicity Culture often influences park and recreation experiences 31 Income Higher Income Levels. Provide high quality experiences with a focus on cost recovery 32 Holistic and Continuous Public Input 33 Collaborative Planning 34 Focus Group/Town Hall Meeting – Key Themes Strong Advocacy and Appreciation for the System Economic Development through Park Development Invest in Existing Park System Open Space Preservation Trails, Trails, Trails Financial Strategies to maintain and grow the system 35 Project Website www.planyourparksov.com/ 36 The website has generated 926+ open ended comments since January Website Participation and Key Themes 37 Purpose: Prioritize Importance of Park and Recreation Facilities and Amenities Administered by Consulting Team and Parks and Recreation Advisory Board February 7th – March 16th, 2020 Nine dates and times at various locations and events Total of 404 participants Intercept Surveys 38 Intercept Survey Feedback 39 Administered via Survey Monkey Developed in partnership with the Town April 20 – May 3, 2020 Total of 372 completed surveys 4,451 residents represented by the 372 completed surveys Online Survey 40 On-Line Survey Priorities 41 Statistically Valid Survey 42 Only scientific and defensible method to understand community needs Administered by mail/phone/web Developed in partnership with the Town Methodology allows high return rate (25%-35%) Total of 443 completed surveys, 95% level of confidence with a margin of error of +/- 4.6% (Goal was 375) Statistically-Valid Survey 43 Survey Response Location Map 44 Advocacy 45 46 Park and Facility Visitation and Condition 47 48 Ninety-five percent (95%) of Oro Valley’s parks and recreation facilities were given a condition rating that exceeded the national benchmark for excellent of 29%. 49 Program Participation and Quality 50 The national benchmark for program participation is 33%. 51 The national benchmark for excellent is 33%. Excellent Good Fair Poor 52 53 54 Recreation Program and Activity Needs 55 National Benchmarks Community special events - 21% Senior programs and services 16% Adult fitness programs – 48% Adult learning classes 14% 56 57 58 Park, Facility and Amenity Needs 59 National Benchmarks Walking and biking trails (multi‐use paved) 45% Walking & hiking trails (natural surface) 33% Open Space Conservation Areas/Trails – 24% Golf - 9% 60 61 Public Support 62 63 Community Needs 64 65 Needs Analysis Methodology This model evaluates both quantitative and qualitative data. Quantitative data includes the local demographics, recreation trends, statistically valid survey and the on-line. Qualitative data includes community input via stakeholder interviews, staff input, intercept surveys, the project website, and planning team observations. A weighted scoring system is used to determine the priorities for facilities and programs and services The results of the priority ranking are tabulated into three categories: High Priority, Medium Priority, and Low Priority. 65 Recreation Programs and Services Prioritized Needs 66 Park, Facility, and Amenity Prioritized Needs 67 Next Steps 68 Next Steps June – October/November Park Level of Service Standards and Geographical Analysis through Mapping Recreation Programming Assessment and Operational Funding Analysis Capital Improvement Plan Funding and Revenue Strategies for Capital Improvement Plan Strategic Action Plan Development Final Master Plan Development 69 70 Thank you for watching! 71