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HomeMy WebLinkAboutPackets - Council Packets (1879)Town Council Meeting Regular Session June 5, 2024 Town Council Meeting Announcements Upcoming meetings Meetings are subject to change. Check the Town website for meeting status. Water Utility Commission – CANCELED June 10 Budget and Finance Commission June 18 at 4:00 p.m. Council Chambers Town Council Regular Session June 19 at 6:00 p.m. Council Chambers 4 Town Council Meeting Regular Session June 5, 2024 6 Mayor and Council Reports Town Council Meeting Regular Session June 5, 2024 Fiscal Year 2023/24 Financial Update through March 2024 June 5, 2024 Overview/Reminders All amounts are preliminary, unaudited and subject to change Year-end estimates may not include adjusting audit entries required at year-end Year-end estimates should not be relied upon as precise predictors of year-end balances; they are fluid, informational, and based on currently available data The Town’s financial performance throughout the fiscal year is best indicated by comparing actuals to the adopted budget Highlights Revenues and expenditures generally performing well compared to budget Strong growth in state shared revenue from last year (trending with budget) Local sales tax roughly flat to last fiscal year, 0.5% growth (budgeted 3% decline) Restaurant & bar 0% growth Utilities 10.7% growth Bed tax 16.0% decline Retail 1.9% growth Construction 7.3% decline (budgeted 16.6% decline) Budgeted Use of Fund Balance: ($5.3M) Estimated Use of Fund Balance: ($2.8M) Estimated Ending Fund Balance: $21.0M 42.0% of budgeted expenditures Exceeds Council 30% Policy by $5.9M General Fund ources ses ctual ctual udget General Fund Revenues – Year to Date FY23 Actuals FY24 Actuals Budget % of Budget Year-End Estimate Local Sales Taxes $ 20,186,384 $ 20,200,896 $ 26,398,318 76.5%$ 27,466,094 State Shared Revenues 14,043,976 16,939,798 22,953,222 73.8%22,911,519 Charges for Services 2,056,809 2,136,708 3,204,246 66.7%2,851,256 Licenses & Permits 2,197,033 1,657,292 1,717,118 96.5%1,988,582 Grant Revenue 453,583 361,654 657,415 55.0%749,751 All Other 1,839,778 2,328,759 2,557,500 91.1%3,035,027 Total $ 40,777,562 $ 43,625,106 $ 57,487,819 75.9%$ 59,002,229 General Fund Uses – Year to Date FY23 Actuals FY24 Actuals Budget % of Budget Year-End Estimate Personnel $ 23,188,876 $ 25,234,346 $ 35,698,399 70.7%$ 34,746,544 Operations & Maintenance 8,921,789 9,717,899 14,149,058 68.7%14,063,360 Capital 181,164 290,289 680,257 42.7%680,257 Transfers Out 11,048,965 9,636,644 12,274,644 78.5%12,274,644 Total $ 43,340,794 $ 44,879,178 $ 62,802,358 71.5%$ 61,764,805 Budgeted Use of Fund Balance: ($536,183) Estimated Use of Fund Balance: ($514,754) Estimated Ending Fund Balance: $364,178 Highway Fund ources ses ctual ctual udget Highway Fund Sources - Year to Date FY23 Actuals FY24 Actuals Budget % of Budget Year-End Estimate State Shared Revenues $ 3,025,678 $ 3,084,605 $ 4,334,608 71.2%$ 4,200,000 Licenses & Permits 19,792 15,596 25,000 62.4%23,000 All Other 107,644 1,640,266 1,573,000 104.3%1,684,826 Total $ 3,153,113 $ 4,740,467 $ 5,932,608 79.9%$ 5,907,826 Highway Fund Expenditures – Year to Date FY23 Actuals FY24 Actuals Budget % of Budget Year-End Estimate Personnel $ 867,410 $ 896,352 $ 1,262,861 71.0%$ 1,205,650 Operations & Maintenance 376,134 628,057 1,010,930 62.1%1,128,930 Capital 1,233,584 3,597,839 4,195,000 85.8%4,088,000 Total $ 2,477,128 $ 5,122,248 $ 6,468,791 79.2%$ 6,422,580 Community Center Fund Budgeted Use of Fund Balance: ($449,233) Estimated Increase of Fund Balance: $460,176 Estimated Ending Fund Balance: $1,468,409 ources ses ctual ctual udget FY23 Actuals FY24 Actuals Budget % of Budget Year-End Estimate Local Sales Tax $ 2,720,227 $ 2,796,901 $ 3,726,016 75.1%$ 3,826,601 Contracted Operating Revenues 3,818,837 4,497,491 4,609,486 97.6%5,183,890 Town Operating Revenues 776,680 933,669 1,175,800 79.4%1,425,725 Other Revenues 209,403 185,453 197,150 94.1%199,198 Total $ 7,525,146 $ 8,413,515 $ 9,708,452 86.7%$ 10,635,414 Community Center Fund Revenues – Year to Date FY23 Actuals FY24 Actuals Budget % of Budget Year-End Estimate Contracted Operating Expenditures $ 3,514,583 $ 3,958,019 $ 4,965,264 79.7%$ 5,279,587 Town Operating Expenditures 1,401,712 1,258,837 1,654,718 76.1%1,769,711 Capital Outlay 1,061,736 1,214,527 1,820,500 66.7%1,408,737 Transfers Out 2,028,066 1,717,203 1,717,203 100.0%1,717,203 Total $ 8,006,097 $ 8,148,586 $ 10,157,685 80.2%$ 10,175,238 Community Center Fund Uses – Year to Date Q & A FY 2023/24 Financial Update through March 2024 Town Council Meeting Regular Session June 5, 2024 Public Hearing: Proposed Extra Space Storage Expansion, Southeast of Oracle and Hardy June 5, 2024 Purpose Self-Storage Facility and Vehicle Storage Expansion Item A – Type 2 General Plan Amendment Item B – Rezoning Both are discretionary asks Discussion and possible action Action on Item B is dependent on Item A Proposed Storage Building Existing Storage Facility Proposed RV Parking Existing Storage Facility Proposed Storage Expansion Area Location History 1986: Existing self storage facility and existing accessory vehicle storage plans and construction approved by Pima County 1987: Larger region annexed into Oro Valley The existing self storage facility and vehicle storage, along with other structures in this area, became a legal non-conforming use Built prior to OV annexation to Pima County standards Pima County standards do not align with OV standards 1998: Expansion to maximum allowed through code Board of Adjustment approves .44 Floor Area Ratio Town Council approves Conditional Use Permit to expand, as allowed by a 1997 code amendment Development Plan for expansion approved 2006: Development Plan for northern parcels approved Site plan includes restaurant and medical office Development Plan expired without finding interested parties 2023: Board of Adjustment Hearing Reduced size requirement to enable PAD request Use of PAD potentially allows business expansion Annexed 1984 Annexed 1990 Annexed 1984 Annexed 1978 Annexed 1978 Annexed 1974 Annexed 1987 Expired Development Plan Restaurant Medical / Office Medical / Office Restaurant: 4,000 sq. ft. Medical / Office: 20,000 sq. ft. Proposed Site Plan Access off Oracle Rd. and Hardy Rd. Indoor storage building Two stories and 29-feet tall 51,700 square feet 68 covered vehicle storage spaces Shielded lighting Screen wall and landscaped bufferyards 27% open space (20% required) Proposed Storage Building Proposed New Development (Area 2) Existing Storage Facility (Area 1) Hardy Rd Item A: Type II General Plan Amendment Change from Neighborhood Commercial/Office to Community/Regional Commercial Amendment Criteria per the 2016 Your Voice, Our Future General Plan General conformance to the Vision, Guiding Principles, Goals and Policies Appropriately addresses neighbor concerns Contributes to the long-term stability of the Town (Accommodates C-1 & C-2)(Accommodates C-N & C-1) Item A: Type II General Plan Amendment CRC designation fits site better than existing NCO designation Compatibility measures and considerations that avoid/minimize impacts: Lowering the building below natural grade on the east end Screen wall Enhanced 15-foot bufferyard Exceeds the required ’ building setback This structure remains further set back from eastern properties than the existing apartments to the north Low traffic generating use Low economic contribution, but providing a community need through expanding an existing use is better than developing a new site (Accommodates C-1 & C-2)(Accommodates C-N & C-1) Item B: Rezone to Planned Area Development (PAD) pplicant’s Goals PAD Area 1: Tailor code to recognize existing development as code compliant Setbacks, wall heights, lack of internal landscaping around structures Staff condition prevents exceptions from applying to a new use or new development within this Area. Brings area into compliance over time PAD Area 2: Allow expansion of existing self storage and accessory vehicle storage uses Allow covered RV parking within building setbacks Existing C-1 and C-2 Zoning Proposed PAD Zoning PAD Area 2 PAD Area 1 Item B: Proposed Site Plan – Oracle Rd Scenic Corridor Overlay Area 1 The existing facility in Area 1 was built before ORSCOD Legal non-conforming to the ORSCOD requirement that % of the first ’ of a site must be free of buildings With the proposed conditions, this area will be brought into compliance with the underlying code over time. Area 2 Applicant is proposing to keep 100% of Area 2 clear to a depth of ’, to bring the entire D closer to compliance with this section of code. This is more than the 60% of Area 2 that would be required for a permitted use entering this area. Proposed Storage Building Proposed New Development (Area 2) Existing Storage Facility (Area 1) Informational Video: January 4, 2023 Neighborhood Meetings January 19, 2023 & February 27, 2024 Planning and Zoning Commission Hearing: April 2 & May 7, 2024 Key Issues: Building height and setbacks Bufferyards and screen walls Drainage Compatibility measures and considerations that avoid/minimize impacts: Lowering the building below natural grade on the east end Walls that screen accessory vehicle storage use from eastern properties 15-foot bufferyard Exceeds the required ’ building setback This structure remains further set back from eastern properties than the existing apartments to the north Low traffic generating use Public Participation General Plan Conformance Analysis Amendments are part of the General Plan itself “During the map revision process, residents recommended changes to the map be handled through the plan amendment process, due to the robust public engagement involved in a formal application. As such, it is anticipated that changes to the map will occur during the lifespan of this plan.” Through the following efforts and design, the proposal has conformed with the Vision as well as 15 of the 17 applicable Guiding Principles, Goals, and Policies: Meets: Providing amenities that meet the needs of current and future residents of the community. Meets: Creating effective transitions between differing land uses and intensities in the community. Does not meet: A robust local economy and job market that provide opportunities for quality employment, build on Oro Valley’s assets, and encourage high-quality growth. Summary Area 1: Customized PAD zoning to match existing development Change of use, or major construction requires compliance with standard zoning Area 2: C-2 and ORSCOD compliant 51,700 sq. ft. self-storage facility expansion with 68 RV parking spaces Both items are consistent with respective General Plan and Zoning Code review criteria Recommendations Approval of Item A, General Plan Amendment Conditional approval of Item B, Rezoning to PAD Valley Vista Proposed Storage Building Proposed New Development (Area 2) Existing Storage Facility (Area 1) Hardy Rd Summary and Recommendation Town Council Meeting Regular Session June 5, 2024 Extra Space Storage Expansion SEC Oracle & Hardy PAD Rezoning & Type 2 General Plan Amendment Town of Oro Valley Town Council June 5, 2024 38 Development Team Clint Kleppe Developer & Operator Chris Leon Project Manager & Engineer Jon Gillespie Zoning Attorney Aerial Exhibit E Hardy Rd Existing Conditions E Hardy Rd Existing Facility Adjacent Parcels154’ Zoning Map C-1 C-2 R1-36 R-6 R-6 •Rezoning to PAD (Underlying C-2) •General Plan Amendment from Neighborhood Commercial/Office to Community/Regional Commercial R1-36 R-6 R-6 PAD (C-2) C-1 By-Right Allowed Uses include: Animal Services (Veterinarian, long term boarding, etc.) Bars Fitness Center Fire Stations and Rescue Facilities, Private Food Processing, Artisanal Marijuana Establishment Medical Services Mobile Food Trucks Office Rental Establishments, Less Than 10 Vehicles Research and Development Restaurant Schools, Private and Public Including Charter Schools Vehicle Storage Facility, Including Parking Garage Existing Residential & Business Market Study Who uses Storage? Growing populations in municipalities that emphasize interior storage of items and equipment Persons going through major life events (death, divorce, job changes, etc.) Small businesses without warehouse space Local e-commerce users (Etsy, etc.) Existing Site Conceptual Site Plan •Two-Story Indoor Self Storage •Covered RV Parking •Meets 300-foot Scenic Preservation •Preserve 27% Open Space Landscape Plan 47 Architecture (Looking East from Oracle Road) New Building Updated Façade of Existing Building Preserving Views Cross-Section Viewing South from Hardy Road Screening and Wall East Boundary Oracle Road Continued Operation A history of being an excellent neighbor No noise complaints No vagrancy issues No pest complaints from neighbors No issues with RV storage; washing RVs, running generators, etc. On-Site Caretaker and Security Cameras Unit access: 6:00 AM – 10:00 PM daily Total construction costs will be ~$10,700,000 Public Participation & Changes to Site Plan Informational Video: January 4, 2023 Neighborhood Meeting #1: January 19, 2023 Formal Rezoning and General Plan Amendment Submittal: March 17, 2023 Neighborhood Meeting #2: February 27, 2024 First Planning and Zoning Hearing: April 2, 2024 Second Planning and Zoning Hearing: May 7, 2024 – Unanimous Approval 52 Oro Valley General Plan Your Voice, Our Future – Vision and Guiding Principles Preserve the scenic beauty and environment by complying with 300’ Scenic Preservation Overlay, enhancing landscaping, and designing into existing property grade Focus on community safety and maintain low crime by providing highly secured, low-impact use Keep the unique community identity as a special place using site specific design and public art Community Goals: Meet the Town’s long-term financial and economic stability and sustainability by creating in-fill storage space that supports a robust local economy comprised of local businesses and residents Development Goals: Creatively integrates new landscape, architecture, and open space to effectively transition an already existing use and reduce building and surface heat absorption. Thank You! Questions? Contact: Jon Gillespie, Rose Law Group (480) 240-5641 JGillespie @roselawgroup.com Town Council Meeting Regular Session June 5, 2024 Oro Valley Water Utility FY 2024-25 Water Rates Presentation June 5, 2024 The Oro Valley Water Utility 65 The Water Utility is an Enterprise Fund Funded solely from water sales, fees and charges All revenues are used for operating costs of the Utility Not dependent on the Town’s General Fund Administrative service fees are paid to the General Fund Water Rates Analysis Process, Goals & Assumptions 66 Goals: Meets revenue, cash reserve & debt service coverage requirements Recovers the cost of service Promotes water conservation & maintains the financial health of the Utility Assumptions: Water resource costs, growth, inflation, interest rates & personnel requirements Planned use of cash for existing system improvements Process: Annually, Utility staff prepares a water rate analysis report that is reviewed by the Water Utility Commission The Commission and Utility staff make a recommendation to Council on the proposed water rates 67 Potable Water Rates & Fee Recommendations: Increases to potable base rates Increases to potable commodity rates (Tiers 1-4) commercial and master-metered multifamily No other changes to potable water rates Increase to potable groundwater preservation fee Why do we need a potable water rate & fee increase: Increase in rates to offset increasing CAP water delivery & wheeling costs Increasing water resource costs: CAP deliveries & COT CAP wheeling Revenue shortfall in fiscal year 2022/23 Increase in GPF fee to pay for NWRRDS WIFA loan debt service for existing customers Proposed Potable Water Rates & Fee Recommendations Proposed Potable Water Rates & Fee Proposed Potable Water Base Rate Increase: Water base rates increase by meter size: 87% of customers have a 5/8-inch meter and will see a $1.06 per month increase in the base rate Proposed Potable Water Commodity Rate Increase: Commodity rates: The commodity rate is based on consumption tiers as shown to the right Commodity Tiers For 5/8-inch meter Per 1,000 gallons Current Proposed Increase Tier 1 (67%) - 14271 0 - 7,000 $ 2.65 $ 2.92 $ 0.27 (10%) Tier 2 (27%) - 5751 7,001 – 16,000 $ 3.88 $ 4.85 $ 0.97 (25%) Tier 3 (5%) - 1065 16,001 – 32,000 $ 6.05 $ 8.17 $ 2.12 (35%) Tier 4 (1%) - 213 Over 32,000 $ 8.80 $ 12.32 $ 3.52 (40%) Meter Size Current Proposed Monthly (in inches)Potable Base Rates Potable Base Rates Increase 5/8 $ 21.14 $ 22.20 $ 1.06 (5%) 3/4 $ 31.69 $ 33.27 $ 1.58 (5%) 1 $ 52.82 $ 55.46 $ 2.64 (5%) 1.5 $ 105.64 $ 110.92 $ 5.28 (5%) 2 $ 169.03 $ 177.48 $ 8.45 (5%) 3 $ 338.03 $ 354.93 $ 16.90 (5%) 4 $ 528.19 $ 554.60 $ 26.41 (5%) 6 $1,056.37 $1,109.19 $ 52.82 (5%) 8 $1,690.20 $1,774.71 $ 84.51 (5%) Proposed Potable Water Commodity Rate Increase: Groundwater Preservation Fee: Increase from $0.90 to $1.00 per $1,000 gallons Potable Water Cost Comparisons 69 Monthly water bill comparisons to other water providers: 87% of Oro Valley Water Utility customers have a 5/8-inch meter and consume an average of 7,000 gallons per month These customers will see an increase to their monthly bill of $3.65 or 7.9% increase Water Provider Cost for 7,000 Gallons Cost for 15,000 Gallons Cost for 25,000 Gallons Cost for 40,000 Gallons Oro Valley Current $45.99 $84.23 $151.56 $277.81 Oro Valley Proposed $49.64 (7.9%)$96.44 (14.50%)$184.82 (22%)$355.57 (28%) Metro Water $56.05 $102.85 $175.90 $301.90 Marana Water $55.50 $104.56 $179.26 $319.81 Tucson Water $55.28 $136.25 $286.19 $585.48 In Closing 70 Recommendation for approval: The Water Utility Commission and Water Utility staff respectfully recommend approval of water rate increases to the potable base rates, potable commodity rates and reclaimed commodity rate If the proposed rates are approved, they will become effective July 6th and will be reflected on the water bills beginning in August of the new fiscal year 71 Questions? Town Council Meeting Regular Session June 5, 2024 Tentative Budget Fiscal Year 2024/25 Budget Presentation Five Year Forecast - Pessimistic 74 Five Year Forecast - Optimistic 75 Personnel No new FTEs Part-time and reclassifications Pre-hiring for PD Market competitiveness (recruitment & retention) Our history, local comps, DOL Inflation 76 Tentative Budget totals $151,210,253 $5,176,827 decrease from the Recommended Budget ($156,387,080) $2,720,862, or 1.8%, increase from FY 2023/24 Adopted Budget ($148,489,391) FY24/25 expenditure limitation calculated by Economic Estimates Commission - $170,938,815 General Fund Budget totals $53,102,838 $12,278 decrease from the Recommended Budget ($53,115,116) $2,296,776, or 4.2%, decrease from FY 2023/24 Adopted Budget ($55,399,614) Tentative udget brings forward all changes from anager’s Recommended udget as outlined in the Council communication, including updated and revised CIP budget figures If approved, Tentative Budget establishes the overall expenditure limitation Structurally balanced budget reflects the careful allocation of available resources 77 FY 24/25 Tentative Budget 78 Estimated Ending Fund Balances Beginning Fund Balance Revenue Transfers In Personnel O&M Capital Debt Service Contingency Total Budget Appropriation Transfers Out Ending Fund Balance General Fund 20,755,916 57,106,788 - 35,831,559 14,590,879 680,400 - 2,000,000 53,102,838 9,403,341 17,356,526 Special Revenue Funds Highway Fund 364,178 4,461,146 4,000,000 1,333,798 1,281,505 5,481,000 - 200,000 8,296,303 - 729,021 Grants & Contributions 188,296 4,613,595 2,299,905 - 670,950 6,014,150 - 200,000 6,885,100 - 416,696 Seizures & Forfeitures 275,195 105,000 - - 100,000 - - 280,195 380,195 - 280,195 Community Center Fund 1,468,409 10,685,399 - 1,222,583 5,993,655 2,167,500 222,945 500,000 10,106,683 1,717,149 829,976 Debt Service Funds Municipal Debt Svc Fund 394,199 254,975 3,900,379 - 10,000 - 4,020,354 100,000 4,130,354 - 519,199 Capital Project Funds Capital Fund 15,769,854 2,396,872 7,139,787 - - 9,238,462 - 2,500,000 11,738,462 6,174,530 9,893,521 WRSDIF Fund 14,091,030 13,545,841 6,860,000 - 162,000 26,485,424 55,711 500,000 27,203,135 - 7,793,736 TWDIF Fund 2,471,234 268,027 - - - 100,000 - 300,000 400,000 - 2,639,260 PAG/RTA Fund 462,897 95,125 - - - 50,000 - 120,000 170,000 - 508,022 Parks & Rec Impact Fee Fund 155,640 175,464 - - - - - 185,000 185,000 - 331,104 Police Impact Fee Fund 58,474 44,385 - - - - - 50,000 50,000 42,718 60,141 Rec In Lieu Fee Fund 17,716 500 - - - - - 18,216 18,216 - 18,216 Internal Service Funds Benefit Self Insurance Fund 2,821,346 4,746,753 - - 4,746,753 - - 500,000 5,246,753 - 2,821,346 Enterprise Funds Water Utility Fund 8,448,111 31,162,383 - 3,992,428 11,198,284 1,785,330 3,391,568 500,000 20,867,610 6,862,333 12,380,551 Stormwater Utility Fund 1,003,379 1,747,500 - 1,018,770 425,834 735,000 - 250,000 2,429,604 - 571,275 68,745,874 131,409,753 24,200,071 43,399,138 39,179,860 52,737,266 7,690,578 8,203,411 151,210,253 24,200,071 57,148,785 Total Budget Appropriation SOURCES USES 3 - The ending fund balance excludes contingency reserves. Fund Balance Report FY 2024/25 TENTATIVE BUDGET 1 - Per Town budgetary and financial policy 1-1-4.0, the budget shall include contingency appropriation to provide for unanticipated increases in service delivery costs, emergencies, and needs that may arise through the fiscal year. The contingency appropriation, except Seizures and Forfeitures Funds, may only be expended upon Town Council approval. 2 - The total budget appropriation excludes transfers out and does not include non-cash outlays for depreciation or amortization. $151,210,253 1 2 3 2 79 By Category:By Function: FY 24/25 Tentative Budget – $151,210,253 80 By Category:By Function: FY 24/25 Tentative General Fund Budget - $53,102,838 FY 24/25 Sources: $151,210,253 81 FY 24/25 Capital Improvement Program (CIP): $52,150,076 82 Town Council Meeting Regular Session June 5, 2024