Loading...
HomeMy WebLinkAboutPackets - Council Packets (1873)Town Council Meeting Regular Session May 1, 2024 Town Council Meeting Announcements Upcoming meetings Meetings are subject to change. Check the Town website for meeting status. Historic Preservation Commission May 6 at 5:00 p.m. Hopi Conference Room Planning and Zoning Commission May 7 at 6:00 p.m. Council Chambers Water Utility Commission Regular Session May 13 at 5:00 p.m. Hopi Conference Room Stormwater Utility Commission May 16 at 4:00 p.m. Hopi Conference Room Budget and Finance Commission May 21 at 4:00 p.m. Council Chambers Parks and Recreation Advisory Board May 21 at 6:00 p.m. Hopi Conference Room Town Council Regular Session May 22 at 6:00 p.m. Council Chambers 4 OV’s Path Forward Upcoming Community Events Tuesday, May 7 12 PM – 2 PM La Hacienda Mexican Family Restaurant Saturday, May 18 9 AM – 11 AM Naranja Park Grand opening Friday, May 17 6 PM Battle of the Bands 5 More events coming in August. Join the online conversation at www.OVPathForward.com Town Council Meeting Regular Session May 1, 2024 Five-Year Financial Forecast May 1, 2024 OVERVIEW General Fund, Highway Fund, Capital Fund, and Community Center Fund Snapshot based upon known current information Serves as planning document for future budgets Forecast is updated annually as part of the budget process Sources: University of Arizona, Joint Legislative Budget Committee, AZ Department of Transportation, as well as the knowledge, expertise and professional judgment by Town management and staff OVERVIEW (continued) Two scenarios are presented Forecast shows a reduction in the excess amount that operating revenues exceed operating expenditures in the General Fund State shared revenues decline over next two years causing total General Fund revenue decline for those years Street maintenance and road capital project increases GENERAL FUND SOURCES - ASSUMPTIONS Assumes no major economic downturns Continued growth of 2-5% in most local sales tax categories No new tax categories are included Construction sales tax reflect relatively stable activity in near term, with slight declines beginning FY 26/27 due to reduced available land for new development Conservative commercial permitting activity forecast Single family residential permits State shared revenues Income tax rate reduction and cap of 2.5% expected to affect FY 24/25 onward FY 22/23 Actual FY 23/24 Forecasted FY 24/25 Forecasted FY 25/26 Forecasted FY 26/27 Forecasted FY 27/28 Forecasted FY 28/29 Forecasted 199 148 95 130 172 120 80 GENERAL FUND SOURCES - FORECAST Town of Oro Valley Five-Year Forecast FY 22/23 Actual FY 23/24 Forecast FY 24/25 Forecast FY 25/26 Forecast FY 26/27 Forecast FY 27/28 Forecast FY 28/29 Forecast SOURCES Taxes 27,213,164$ 27,419,438$ 28,708,825$ 28,837,932$ 29,368,835$ 29,767,924$ 30,301,504$ State Shared Revenue 18,969,633 22,911,519 20,580,407 20,030,171 20,977,564 22,020,528 23,132,520 Charges for Services 2,897,311 2,863,987 2,966,467 3,045,234 3,126,739 3,211,060 3,297,803 Licenses & Permits 2,643,013 1,920,582 1,673,022 2,257,364 1,903,656 2,026,406 1,476,695 Intergovernmental 1,857,521 1,869,500 1,981,555 2,000,471 2,019,575 2,038,871 2,058,360 Grants 653,525 744,251 659,982 667,645 675,447 683,390 691,479 Miscellaneous 2,961,402 546,480 229,000 231,290 233,603 235,939 238,298 Fines 84,454 55,000 55,000 55,550 56,106 56,667 57,233 Interest Income 372,378 500,000 400,000 408,000 416,160 424,483 432,973 Total Sources 57,652,401 58,830,757 57,254,257 57,533,657 58,777,684 60,465,268 61,686,866 GENERAL FUND GENERAL FUND SOURCES - FORECAST F t a F t a F t a F t a F t a F t a F t a F For ast d F For ast d F For ast d F For ast d F For ast d F For ast d o a a s a tat har d s s P r ts har s or r s Oth r GENERAL FUND USES - ASSUMPTIONS Employee pay adjustments and Police step increases included in all years of forecast Very modest capacity for new FTEs Continued capacity for normal increases in employee-related personnel costs (ERE) Continuation of elevated PSPRS payments O&M assumes current service levels Transfers for CIP projects assumed at 5% of sales tax collections per Town Council financial policies, plus all fund balance over 30% reserve excluding contingency GENERAL FUND USES - FORECAST Town of Oro Valley Five-Year Forecast FY 22/23 Actual FY 23/24 Forecast FY 24/25 Forecast FY 25/26 Forecast FY 26/27 Forecast FY 27/28 Forecast FY 28/29 Forecast USES Personnel 33,329,692 35,007,347 35,742,353 36,771,651 37,817,797 38,986,268 40,186,655 O&M 11,944,698 13,443,775 14,663,279 15,421,527 16,268,004 17,021,628 17,887,241 Capital Outlay 2,972,965 1,342,555 680,400 374,604 397,080 416,934 437,781 Transfers Out 15,996,977 12,274,644 9,403,343 3,733,080 3,452,351 3,332,881 2,924,786 Total Uses 64,244,332 62,068,321 60,489,375 56,300,862 57,935,232 59,757,711 61,436,463 Surplus/(Use of Fund Balance)(6,591,931) (3,237,564) (3,235,118) 1,232,795 842,452 707,557 250,403 Beginning Fund Balance 30,390,423 23,798,492 20,560,928 17,325,810 18,558,605 19,401,056 20,108,613 Ending Fund Balance 23,798,492$ 20,560,928$ 17,325,810$ 18,558,605$ 19,401,056$ 20,108,613$ 20,359,016$ Reserve as % of Expenditures 37.0%41.3%33.9%35.3%35.6%35.6%34.8% GENERAL FUND GENERAL FUND USES - FORECAST F t a F t a F t a F t a F t a F t a F t a F For ast d F For ast d F For ast d F For ast d F For ast d F For ast d P rso O a ta O t a ra s rs O t GENERAL FUND FORECAST HIGHWAY FUND SOURCES - ASSUMPTIONS Arizona Department of Transportation forecasts moderate growth, 3.4 - 3.6%, in highway user gas tax (HURF) revenues Other revenue sources assume modest and incremental growth Transfers in from the Capital Fund supplement HURF revenues for roadway projects identified in the ten-year CIP First Avenue mill/overlay - $1.7 million in FY 27/28 Rancho Vistoso Blvd mill/overlay - $2 million in FY 27/28 Tangerine Road mill/overlay - $2.6 million in FY 26/27 Annual pavement preservation program - $3.2-$3.6 million per year HIGHWAY FUND SOURCES - FORECAST Town of Oro Valley Five-Year Forecast FY 22/23 Actual FY 23/24 Forecast FY 24/25 Forecast FY 25/26 Forecast FY 26/27 Forecast FY 27/28 Forecast FY 28/29 Forecast SOURCES State Shared Revenue 4,129,268$ 4,334,608$ 4,307,805$ 4,458,649$ 4,610,326$ 4,771,171$ 4,932,849$ Licenses & Permits 27,565 25,000 25,000 25,500 25,755 26,013 26,273 Interest Income 169,554 150,000 150,000 77,863 58,397 46,718 112,123 Miscellaneous 10,611 15,625 3,000 3,030 3,060 3,091 3,122 Transfers from Capital Fund - 1,500,000 4,000,000 4,000,000 5,000,000 5,000,000 2,000,000 Total Sources 4,336,998 6,025,233 8,485,805 8,565,042 9,697,539 9,846,993 7,074,367 HIGHWAY FUND HIGHWAY FUND USES - ASSUMPTIONS Personnel and O&M figures reflect similar assumptions to General Fund Pavement preservation funding is included at $3.2 – $3.6 million per year Capital outlay reflects ten-year, tentative CIP schedule HIGHWAY FUND USES - FORECAST Town of Oro Valley Five-Year Forecast FY 22/23 Actual FY 23/24 Forecast FY 24/25 Forecast FY 25/26 Forecast FY 26/27 Forecast FY 27/28 Forecast FY 28/29 Forecast USES Personnel 1,195,566 1,257,857 1,334,281 1,361,028 1,388,316 1,416,153 1,444,551 O&M 874,503 1,003,930 1,281,505 1,269,832 1,342,260 1,419,034 1,486,851 Capital Outlay 2,594,981 4,195,000 5,481,000 6,276,300 7,228,315 7,208,000 3,583,000 Total Uses 4,665,050 6,456,787 8,096,786 8,907,160 9,958,891 10,043,187 6,514,402 Surplus/(Use of Fund Balance)(328,052)(431,554)389,019 (342,118)(261,352)(196,194)559,965 Beginning Fund Balance 1,206,985 878,932 447,378 836,397 494,279 232,928 36,733 Ending Fund Balance 878,933$ 447,378$ 836,397$ 494,279$ 232,928$ 36,733$ 596,698$ HIGHWAY FUND HIGHWAY FUND FORECAST HIGHWAY FUND FORECAST F t a F t a F t a F t a F t a F t a F t a F For ast d F For ast d F For ast d F For ast d F For ast d F For ast d P rso O a ta O t a CAPITAL FUND SOURCES - ASSUMPTIONS Capital Fund is supported by General Fund transfers, vehicle reserves for fleet replacements, bond proceeds and grants Miscellaneous revenues, including sale of assets and insurance recoveries held steady in the forecast Non-enterprise fund vehicle reserves charged to General Fund based on replacement cost of each vehicle over useful life and includes 10% cost inflation Transfers annually from the General Fund reflect 5% of sales tax and excess fund balance over 30% reserve CAPITAL FUND SOURCES - FORECAST Town of Oro Valley Five-Year Forecast FY 22/23 Actual FY 23/24 Forecast FY 24/25 Forecast FY 25/26 Forecast FY 26/27 Forecast FY 27/28 Forecast FY 28/29 Forecast SOURCES State Grants -$ 620,000$ 1,000,000$ -$ -$ -$ -$ Bond Proceeds - - - - 11,000,000 - - Interest Income 530,338 500,000 348,382 230,933 361,138 216,683 65,005 Miscellaneous 166,739 140,000 115,000 115,000 115,000 115,000 115,000 Vehicle Reserves 820,008 892,540 933,490 961,495 1,001,102 1,041,897 1,083,916 Transfers from General Fund 13,500,000 10,000,000 7,139,787 1,441,897 1,468,442 1,488,396 1,515,075 Transfer from Community Center Fund 4,767,786 - - - - - - Total Sources 19,784,871 12,152,540 9,536,659 2,749,325 13,945,682 2,861,976 2,778,996 CAPITAL FUND CAPITAL FUND USES - ASSUMPTIONS Capital outlay reflects ten-year, tentative CIP schedule, excluding the new police station, pending an identified funding source New vehicle purchases (in addition to replacements) assumed at one patrol vehicle and two other vehicles annually 10% inflation for vehicle replacements Transfers out to the Highway Fund for roadway CIP projects CAPITAL FUND USES - FORECAST Town of Oro Valley Five-Year Forecast FY 22/23 Actual FY 23/24 Forecast FY 24/25 Forecast FY 25/26 Forecast FY 26/27 Forecast FY 27/28 Forecast FY 28/29 Forecast USES Personnel 236,738 254,765 - - - - - O&M 8,091 2,500 - - - - - Capital Outlay 18,942,684 19,153,657 10,030,338 2,666,143 3,215,553 4,190,293 3,317,493 Debt Service - - - - 791,583 791,583 791,583 Transfers to Highway Fund - 1,500,000 4,000,000 4,000,000 5,000,000 5,000,000 2,000,000 Transfers to Grants Fund - - 381,448 329,000 339,000 349,250 359,750 Total Uses 19,187,513 20,910,922 14,411,786 6,995,143 9,346,136 10,331,126 6,468,826 Surplus/(Use of Fund Balance)597,358 (8,758,382)(4,875,127)(4,245,819)4,599,546 (7,469,150)(3,689,830) Beginning Fund Balance 23,952,930 24,550,288 15,791,906 10,916,779 6,670,960 11,270,506 3,801,356 Ending Fund Balance 24,550,288$ 15,791,906$ 10,916,779$ 6,670,960$ 11,270,506$ 3,801,356$ 111,526$ CAPITAL FUND CAPITAL FUND FORECAST F For ast F For ast F For ast F For ast F For ast ra s rs O t Oth r P Pro ts V h t a t Pro ra CAPITAL FUND FORECAST COMMUNITY CENTER FUND SOURCES - ASSUMPTIONS Local sales tax figures follow same growth as General Fund for relevant categories Conservative 1% growth for Parks & Recreation related revenues to account for potential discretionary spending decreases as result of inflation Golf rounds stay flat – 1% increase HOA contributions end after FY 24/25, upon completion of five-year contracts COMMUNITY CENTER FUND SOURCES - FORECAST Town of Oro Valley Five-Year Forecast FY 22/23 Actual FY 23/24 Forecast FY 24/25 Forecast FY 25/26 Forecast FY 26/27 Forecast FY 27/28 Forecast FY 28/29 Forecast SOURCES Taxes 3,713,654$ 3,803,267$ 3,879,440$ 4,014,055$ 4,151,115$ 4,293,223$ 4,459,304$ Charges for Services 6,265,647 6,563,012 6,630,227 6,800,355 6,975,467 7,155,718 7,341,269 Interest Income 110,723 35,000 16,682 17,459 9,042 9,762 44,345 Miscellaneous 271,567 159,050 159,050 1,500 1,515 1,530 1,545 Total Sources 10,361,591 10,560,329 10,685,399 10,833,369 11,137,140 11,460,233 11,846,465 COMMUNITY CENTER FUND COMMUNITY CENTER FUND USES - ASSUMPTIONS Personnel and O&M figures reflect similar assumptions to General Fund Contracted expenditures include Pusch 9-hole course Capital outlay reflects ten-year, tentative CIP schedule $200K annually for Vistoso Trails Nature Preserve maintenance $150,000 annually for building improvements and minor assets (non-CIP) Debt service transfers for Parks and Recreation bonds and energy efficiency bonds COMMUNITY CENTER FUND USES – FORECAST Town of Oro Valley Five-Year Forecast FY 22/23 Actual FY 23/24 Forecast FY 24/25 Forecast FY 25/26 Forecast FY 26/27 Forecast FY 27/28 Forecast FY 28/29 Forecast USES Personnel 1,065,775 1,187,609 1,167,368 1,205,725 1,245,362 1,286,321 1,328,644 O&M 5,706,520 5,610,959 5,993,655 6,125,425 6,255,521 6,389,858 6,521,020 Capital Outlay 1,467,015 1,279,698 2,420,302 1,532,500 2,070,000 1,800,000 450,000 Debt Service (Leases)178,654 210,684 222,945 236,322 250,501 265,531 278,808 Transfers to Debt Service 2,028,066 1,717,203 1,717,149 1,716,268 1,717,435 1,711,661 1,714,810 Transfers to Capital Fund 4,767,786 - - - - - - Total Uses 15,213,816 10,006,153 11,521,419 10,816,239 11,538,819 11,453,370 10,293,282 Surplus/(Use of Fund Balance)(4,852,225) 554,176 (836,020) 17,130 (401,680) 6,863 1,553,182 Beginning Fund Balance 5,860,458 1,008,233 1,562,409 726,389 743,519 341,839 348,702 Ending Fund Balance 1,008,233$ 1,562,409$ 726,389$ 743,519$ 341,839$ 348,702$ 1,901,884$ COMMUNITY CENTER FUND COMMUNITY CENTER FUND FORECAST COMMUNITY CENTER FUND FORECAST F t a F t a F t a F t a F t a F t a F t a F For ast d F For ast d F For ast d F For ast d F For ast d F For ast d P rso O a ta O t a ra s r to t r ra s r to P TOTAL NON-ENTERPRISE DEBT SERVICE DUE BY YEAR 0 500,000 1,000,000 1,500,000 2,000,000 2,500,000 3,000,000 3,500,000 4,000,000 4,500,000 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042 Questions? Town Council Meeting Regular Session May 1, 2024 Town of Oro Valley Assured Water Supply May 2024 By: Peter A. Abraham, P.E. May 1, 2024 100-Year Assured Water Supply - Why was the Program Created? 39 ► The ADWR Assured Water Supply (AWS) program was created to: ► Established in 1980: Address the problem of limited groundwater supplies in Arizona ► Evaluate the availability of a 100-year water supply considering current and committed demands as well as growth projections ► sta th stat ’s o o h a th ► Preserve groundwater resources ► Promote long-term water supply planning ► Protect homebuyers ► Ensure sustainable growth 100-Year Assured Water Supply – Oro Valley’s AWS designation history 40 ► Oro Va ’s ss r d Wat r – Designation history ► Prior to the Town purchasing the two private water companies: ► Rancho Vistoso Water Company and Canada Hills Water Company were designated as having an AWS in part based on their membership to the central Arizona Groundwater Replenishment District (CAGRD) ► Through the acquisitions, Oro Valley was assigned the membership contracts and assumed responsibility for the associated groundwater replenishment obligation ► First AWS designation was January 28, 1997 ► Designation allowed for up to 7,900 acre-ft. of groundwater to be pumped per year ► Modification to the AWS designation on June 26, 2003 ► Designation allowed for up to 15,049 acre-ft./yr. of groundwater to be pumped per year ► Modification to the AWS designation on June 6, 2013 ► New hydrological study was performed ► Modified designation allowed for up to 13,384 acre-ft. of groundwater to be pumped per year ► Designation was good for 10-years ► Application to modify the AWS designation was submitted in December of 2023. ► Expect new designation order by the end of calendar year 2024 or early 2025 ► New designation order will be good for 10 years before a new application to modify the AWS is required ► Expect new designation order of up to 12,889 acre-ft./year of groundwater available for 100 years 100-Year Assured Water Supply – How do you get a AWS designation 41 ► The Town of Oro Valley has been designated, by the state as having a 100-year water supply ► To obtain this designation the Utility has to demonstrate 7 things: ► Demonstrate that the water supply is physically available for 100-years ► Demonstrate that the water supply is legally available for 100-years ► Demonstrate that the water supply is continuously available for 100-years ► Demonstrate that the water supply is of sufficient quality ► Demonstrate that the water supply is consistent with the management goals of the area ► Demonstrate that the water use is consistent with the management goals of the area ► Demonstrate that the Utility has the financial capability to deliver the water resources 100-Year Assured Water Supply – AWS modification highlights 42 ► Hired Engineering Consultant Firm to assist with application process ► Process begins with pre-application meeting with ADWR (February 2023) ► Consultant & Water Utility staff work closely with ADWR staff during application review process ► Application highlights: 10 year population and demand projections ► Population projections: Consistent with 2022 Subcounty Population Projections for Pima County produced by the PAG and adopted by the Arizona Office of Economic Opportunity ► Demand Projections: Based on the 2022 Annual Water Withdrawal and Use Report ► Current designation demonstrated that 13,384 AF/Yr. of groundwater will be available for at least 100 years beginning in 2013 ► Subtracting the groundwater pumped between 2013 to 2023 leaves a future Town designation of 12,889 AF/Yr. of groundwater available for use for at least 100 years. Summary: The Utility has the groundwater capacity to serve the community for more than 100-years, but water resources need to be used wisely 43 Questions?