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HomeMy WebLinkAboutPackets - Council Packets (1327)Town Council Regular Session June 17, 2020 1 2 Town Council Meeting Announcements 3 Upcoming Meetings 4 5 Good Evening Public Hearing: Amending Oro Valley’s Development Impact Fees June 17, 2020 Presented by: Amanda Jacobs, Strategic Initiatives Manager 6 Purpose The purpose of this agenda item is to present Council the Development Impact Fees for approval or denial in accordance with State Law. 7 Impact Fee Process 8 Proposed Development Impact Fees 9 Arizona Fee Comparison 10 Non-Residential Fee Comparison 11 Key State Law Requirements The Town is required to evaluate development impact fees at least every five years. Fees must be proportionate to the impacts a land use designation makes on the infrastructure needed for new growth. Proportionality is determined through analysis, with primary determination based on trip generation of land use types If a category is reduced from the 100% of maximum supportable fees calculated in analysis, then all categories must be reduced commensurately to meet proportionality. The Town must make whole any impact fee fund when waivers are allowed. 12 Options Approve all fees as recommended, with the state-mandated 75 day waiting period (September 1, 2020). Deny the new fee schedule. All current fees would remain in place until a new study is conducted Approve all fees as recommended effective July 1, 2021 (staff recommendation) Provides an extension for fee increases, while also limiting the wait time for fee reductions to just one year Grandfathering provisions in state law and town code still apply Approve all fees except commercial/retail change (33% increase) Does not meet proportionality requirement of state law Town could make up difference, which still poses potential liability To make proportionate, Council could reduce all fees in new schedule by 33% 13 Grandfathering Fee Provisions State law allows for 24 month grandfathering provision, allowing for the lower of the new or old fees to apply. For residential projects, Town Code establishes start date of 24 months at issuance of first SFR permit issued for subdivision. For nonresidential and multi-family projects, Town Code establishes start date of 24 months at approval of Site Plan or Final Plat.  14 Grandfathering Project Examples 15 Questions? 16 17 Good Evening FY 2020/21 Tentative Budget Adoption June 17, 2020 18 FY2021 Tentative Budget Tentative Budget brings forward all changes from Manager’s Recommended Budget, including: AZCares funding Updated Golf operations from new operator If approved, Tentative Budget establishes the overall expenditure limitation (Home Rule) Budget reflects the careful allocation of available resources 19 FY 20/21 Tentative Budget by Fund 20 FY 20/21 Revenue Sources - $105.4M 21 FY 20/21 Expenditure Categories - $105.4M 22 FY 20/21 Capital Improvement Program (CIP) Total CIP program for FY 20/21 = $21,045,287 23 FY 20/21 General Fund Overview General Fund Sources: $43.35M General Fund Uses: $43.33M Projected ending fund balance of $17.2 million 41.4% 24 Final Notes and Next Steps Tentative Budget adoption sets the maximum spending ceiling at $105,435,626 Expenditure authority may only be reallocated or reduced 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 July 15th regular session 25 26 Good Evening PSPRS Funding Policy June 17, 2020 27 Overview – Pension Funding Policy Town Council’s Funding Goal – 100% funded by June 30, 2036 Maintain Annual Required Contribution (ARC) payment from operating revenues Retain 20-year amortization period Review Local Board practices annually Establish funding targets Apply adopted financial policies, dedicating surplus funds at year-end toward reducing the unfunded liability and strive to designate an ongoing revenue source toward future additional contributions Budget an additional payment toward the unfunded liability. For both FY 19/20 and 20/21, this includes an additional contribution of $500,000 to PSPRS 28 Plan Financial Position – June 30, 2019 29 Oro Valley Police 30 Summary report – Contribution Rate – Page 2 31 Summary report – Funded Status Page 2 32 Contribution Requirements 2019 (Police Pension) Page 4 of report 33 Asset Support – Page 14 34 Impact of additional contributions – page 8 35 PSPRS Police Employer Cost by Year 36 Thank you for watching! 37