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HomeMy WebLinkAboutPackets - Council Packets (1517)Council Meeting Budget Study Session May 8, 2019 Community and Economic Development Department FY 2019-20 Recommended Budget May 8, 2019 Community and Economic Development (CED) Department Coordinate all facets of development Strive for best practices in both community and economic development facilitation and regulation Help to ensure the health, safety and welfare of the public within the built environment Implement a public-approved comprehensive plan to ensure that OV benefits from a robust and sustainable economy, which includes diverse opportunities for local residents What we do CED Organizational Chart Director J.J. Johnston Economic Development J.J. Johnston Permitting David Laws Inspection and Compliance Chuck King Planning Bayer Vella At a Glance CED Major Accomplishments Realigned and staffed the CED Department Updated Building Codes to 2018 Standards Developed a Draft Comprehensive Economic Development Strategy (CEDS) Charted progress of General Plan implementation Expanded services and trained staff to digitally review applications Processed strategic rezones and code amendments via public input 38 public meetings 29 pre-apps. 20 development plans CED Budget Summary (FY 19 -20) 0 500,000 1,000,000 1,500,000 2,000,000 2,500,000 FY 2020 Budget FY 2019 Projected FY 2019 Budget Residential Building Permits Commercial Building Permits Other Fees Revenues 2019 Budget 2019 Projected 2020 Budget Total Revenue $2,132,096 $2,165,817 $1,950,818 CED Budget Summary (FY 19 -20) Expenditures 0 200,000 400,000 600,000 800,000 1,000,000 1,200,000 Administration Permitting Planning Inspection and Compliance Economic Development FY 2019 Budget FY 2019 Projected FY 2020 Budget 2019 Budget 2019 Projected 2020 Budget Total Expenditures $2,869,324 $2,743,269 $3,044,421 CED Budget Summary (FY 19 -20) Budget Variances Administration: $275K-$314K Economic Development: $110K-$188K Key projects (some formerly housed in Town Manager budget) $40K Facilitate development of the OVIL $30K Industry specific sales and marketing $70K Targeted Retail Study Administration 10% Permitting 35% Planning 20% Inspection and Compliance 29% Economic Development 6% Administration 9% Permitting 36% Planning 20% Inspection and Compliance 31% Economic Development 4% FY 2019 Projected FY 2020 Budget Trends, Projections and Solutions CED Permitting Permit Issuance FY 17-18: 2472 issued FY 18-19: 2325 estimated Commercial Fees FY 19-20: $233K projected FY 20-21: $219K projected Growing the Economy Series of timely and strategic investments into the SLP Economic Vitality Areas •Fill vacant buildings •Attract new investments •Generate new primary employment Align CED Budget with Town Council Strategic Leadership Plan (SLP) CED Major Goals for 2020 Goal 1A -Economic Vitality Retain, Expand and Attract Primary Employers Goal 1B-Attract Investment Invest in retail and commercial centers Complete targeted retail study Facilitate industry specific presentations to clients and prospects Goal 1C-Develop Comprehensive Annexation Blueprint Key Goals CED Goals 2020 Inspection and Permitting: Utilization of self-service website for digital application submittals Planning: Finalize work with State Land for Council consideration Develop new code recommendations as identified in the SLP (Goal 5A). Focus areas include the Environmentally Sensitive Land Ordinance Economic Development: Complete modifications to the Comprehensive Economic Development Strategic (CEDS) plan per Council direction Implement areas as directed by Town Manager beginning this summer Summary CED Budget is holding steady except for proposals to increase investments in SLP adopted economic development goals CED Director will allocate internal resources and staff to each of the Council’s SLP Goals and Objectives Now to your questions FY 2019-2020 Police Department Recommended Budget May 8, 2019 3. Community Your Voice, Our Future General Plan 2016 First and foremost, Oro Valley is committed to preserving a safe environment for its residents. 3.1 Introduction Fiscal year comparison FY 2019/2020 -Anticipated revenue to help offset total is $948,999. FY 18/19 FY 19/20 Personnel $15,621,515 $15,803,064 O & M $770,810 $872,255 Capital $165,230 $303,450 Totals $16,557,555 $16,978,769 Increases Explained Administration Utilities for Evidence/Substation Training for Interdiction for the Protection of Children Criminal Investigations Investigative equipment Evidence Facility New equipment and trending increase for replacement equipment Capital Grant capacity was increased to include potential funding for: Two DUI vehicles Equipment TOWN COUNCIL FOCUS AREA 3: Goal 3A Town of Oro Valley Strategic Plan and Public Safety Support strategies that result in a safe community with low crime, safe neighborhoods and positive relationships between law enforcement and community members. TOWN COUNCIL FOCUS AREA 3: Goal 3A Town of Oro Valley Strategic Plan and Public Safety Objective: Deploy the High Visibility Enforcement (HiVE) in high collision areas to address the increasing volume of traffic and associated issues in and around Oro Valley roadways. Objective: Adopt new businesses as they open to create positive relationships and educate them on safety trends locally and regionally. TOWN COUNCIL FOCUS AREA 3: Goal 3A Town of Oro Valley Strategic Plan and Public Safety Objective: Implement officer training in Interdiction for the Protection of Children (IPC), with a focus on applying to the Oracle Road corridor to protect endangered children. Community vision, values and priorities “Oro Valley is valued for being a safe community with a low crime rate, along with its natural beauty.” Key public safety elements: School safety High visibility Crime prevention programs Community preparedness Your Voice, Our Future Project Comparative Survey Findings (February 2014) Departmental approach Provide a full service community policing organization Emphasize community outreach and education geared toward crime prevention Mitigation of the effects of increased traffic with emphasis on safety Service readiness through staffing, training and technology Conclusion A safe community is a healthy community! “Oro Valley is the safest city in Arizona.” Safewise.com –Arizona’s 20 Safest Cities of 2019 Parks & Recreation Fiscal Year 2019/2020 Budget Presentation May 8, 2019 Commitment to the General Plan Big Picture Community Goals A high -quality parks, recreation and open space system that is accessible, comprehensive, connected and serves the community’s needs. Diverse, enriching and quality education opportunities, arts and culture experiences and amenities accessible to all residents. Promote Oro Valley as an ideal destination for economic activity, tourism, shopping, cultural attractions, research and development. Environmental Goals The protection and preservation of significant cultural sites, properties and resources that enhance community character and heritage. Strategic Plan Implementation Goals Strategic Focus Areas that connect to the Parks and Recreation budget recommendation 1E Economic Vitality Identify opportunities to increase sustainable tourism investment in the community. 2A Culture and Recreation Invest in and maintain a high quality parks, recreation and trail system that is accessible, comprehensive, connected and serves the community’s needs. •Conduct a comprehensive, community-wide needs assessment for parks and recreation •Implement the Town Council’s decision regarding golf course property and Community Center •Install a new playground and related amenities at Naranja Park •Develop a comprehensive, Town-wide Parks and Recreation master plan •Review the Steam Pump Ranch master plan 6A Effective and Efficient Government Strengthen community engagement and citizen outreach •Effectively maximize the use of communication tools such as social media, website and other marketing avenues . 6D Effective and Efficient Government Recruit and retain talented employees to effectively carry out the Town’s mission. Divisions Parks & Recreation Department Administration Aquatics Community Center Park Management Recreation and Cultural Golf it’s in our nature Administration Division Needs Assessment and Master Plan Travel/Training consolidation Marketing and promotions material Strategic Plan Focus •Goal 2A •Goal 6A Aquatics Division Lifeguard recruitment and retention Swim teams and programming Swim meets, Synchro meets, and Triathlons Improved water quality and filtration system Strategic Plan Focus •Goal 2A •Goal 6D Community Center Community and Membership events Grow programming Improved site furnishings Strategic Plan Goals •Goal 2A •Goal 1E Recreation and Culture Strategic Plan Goals •Goal 2A •Goal 1E Community Events Sport and recreation programming Steam Pump Ranch programming Historic Preservation Park Management Focus on overall park improvements Replacement of site amenities (benches, chairs, water fountains) Continue overseed program Strategic Plan Goals •Goal 2A Comparison FY 18/19 and 19/20 Department Comparison Administration Aquatics Community Center Recreation and Culture Park Management FY18/19 $81,713 $585,290 $2,142,553 $206,010 $732,000 FY 19/20 $217,902 $661,090 $2,030,622 $180,520 $726,950 $- $500,000 $1,000,000 $1,500,000 $2,000,000 $2,500,000 FY18/19 FY 19/20 Troon Operations Strategic Plan Goals •Goal 2A Focus on increasing daily fee play Focus on Jr. Golf and youth development Continue marketing efforts Key Budget Assumptions Continuance of 45 Holes of Operation for 2019-2020 DRAFT Budget was completed in March 2019 Represents stable membership levels, continuing overall revenue growth 236 Members as of April 30, 2019 vs 249 Members projected as of April 30, 2020 Return to normal rainfall levels with water expenses expected to rise approximately $50,000 Annualized Full Time Equivalent Employees stable at 52.2 Payroll reflects 2.5% annual cost of living increase and minimum wage increases to $12 First full year of tennis transition to an independent contractor Key Overall Objective is to continue to provide asset the community is proud of while minimizing expenses Evaluation Process –Notable Trends Continued non member golf growth 90.6% golfnow.com rating from the customer feedback Non member golf revenue growth will near $1.2 million in 2019 2019 YE Net Operating Income will likely eclipse the 2019 budgeted targets by approximately $200k Food and beverage revenues remain stable Revenue Analysis Analysis 2016 2017 2018 2019 Act + Fcst 2020 DRAFT Budget TOTAL TOTAL TOTAL TOTAL TOTAL Member Rounds 26,180 19,676 17,474 17,440 17,302 Non Member Rounds 22,971 23,075 29,717 31,578 33,997 Comp/Trade Rounds 2,859 4,100 4,594 3,593 3,499 TOTAL ROUNDS played 52,010 46,851 51,785 52,611 54,798 Revenues: Golf Fees, net of discounts 745,061 730,720 961,260 1,175,260 1,231,063 Trail Fees & Member Cart Fees 148,946 203,407 221,434 202,454 212,428 Golf - Group Services (2) 2,611 2,957 1,609 2,300 Range, Rentals, Other Golf related 36,555 43,484 75,895 52,790 58,505 Golf Lessons 6,877 7,125 7,693 4,717 4,987 Income - Golf Schools - 7,125 10,706 6,040 6,005 Total Member Dues 876,133 725,610 784,070 766,394 799,921 Other Member Income 1,074 1,275 1,381 (1,171) 1,026 Swim/Tennis Revenues 273,700 333,317 362,268 77,964 - Income - Other (non - golf)6,589 14,754 12,922 16,721 9,873 Merchandise, net of discounts 212,592 197,073 200,504 183,636 212,314 Food and Beverage, net of discounts 606,271 708,591 745,766 650,603 665,849 Total Revenues 2,913,796 2,975,092 3,386,856 3,137,017 3,204,271 Expense Analysisnse Analysis Total Cost of Sales 567,968 655,043 646,861 431,709 339,117 Gross Profit 2,345,828 2,320,049 2,739,995 2,705,308 2,865,154 Operating Expenses: Payroll 1,806,179 1,633,085 1,690,998 1,646,007 1,750,373 Employee Benefits 409,578 393,190 412,042 387,240 390,886 Employee Related 42,092 36,244 31,387 36,586 33,648 Advertising & Marketing 80,045 93,336 134,082 126,167 116,291 Repair & Maintenance 527,443 373,289 360,512 372,057 399,892 Operating Expenses 288,387 300,800 259,975 249,715 240,755 Total Operating Expenses 3,153,724 2,829,944 2,888,996 2,817,772 2,931,845 Operating Profit (807,896) (509,895) (149,001) (112,464) (66,691) Leases - Carts 152,789 99,000 120,330 145,200 186,900 Leases - Equipment 248,939 252,417 251,568 251,568 251,568 Utilities 1,234,439 1,485,475 1,296,110 1,120,871 1,188,556 Fixed Operating Expenses 1,636,167 1,836,892 1,668,008 1,517,639 1,627,024 Net Operating Income Analysis Gross Operating Profit (2,444,063) (2,346,787) (1,817,009) (1,630,103) (1,693,715) Insurance 872 1,147 1,175 1,194 1,183 Fees, Permits & Licenses 1,357 390 734 720 525 Base Management Fees 108,000 144,000 144,000 126,000 120,000 Bad Debt, Property Taxes, 8,565 6,915 5,809 1,684 1,500 Total Other Expenses 118,794 152,452 151,718 129,598 123,208 Net Operating Income (2,562,857) (2,499,239) (1,968,727) (1,759,701) (1,816,923) Thank You Town Administration FY 2019-20 Recommended Budget May 8, 2019 Department Overviews Town Clerk Administrative Services –(Finance, HR, IT) Town Manager’s Office Town Council General Administration Legal Services Magistrate Court Strategic Leadership Plan Goals and Objectives Strategic Leadership Plan goals Goal 1A: Attract, grow and retain primary employers, expand local job opportunities Goal 1C: Develop comprehensive annexation blueprint Goal 1E: Increase sustainable tourism investment in the community Goal 2A: Invest in high quality parks, recreation and trail system Goal 3A: Community safety with low crime, safe neighborhoods and positive community relationships with law enforcement Goal 6A: Strengthen community engagement and citizen outreach Goal 6B: Greater transparency, more efficient community access to town information Goal 6C: Internal efficiency opportunities for continuous improvement, high performing organization Goal 6D: Recruit and retain talented employees Goal 7A: Ensure the Town’s financial future remains stable Budget Comparison Department FY 18/19 Budget FY 19/20 Recommended Variance Town Clerk $444,559 $366,336 ($78,223) Finance $910,367 $936,820 +$26,453 Human Resources $424,488 $477,048 +$52,560 Information Technology $3,115,700 $3,263,502 +$147,802 Town Manager’s Office $1,251,370 $1,314,145 +$62,775 Town Council $210,494 $206,001 ($4,493) General Administration $7,397,214 $4,919,646 ($2,477,568) Legal Services $793,567 $972,228 +$178,661 Magistrate Court $884,385 $923,561 +$39,176 Town Clerk Duties include business licensing, records management, elections, voter registration and notary services Major initiatives for FY 19/20: Explore fully automated business licensing application and payment process New video/audio recording solution for public meetings Solution for public access to electronic procurement contracts FY19/20 –FY20/21 Strategic Leadership Plan Goals 6A, 6B, 6C Administrative Services -Finance Duties include accounting, payroll/accounts payable, annual audit coordination, budget development, debt and investment management and procurement Major initiatives for FY 19/20: Town-wide fee review projects Implement eProcurement and Expense Reporting modules in financial system Bond financing, as needed, for Community Center and golf course improvements Research open books transparency solution –multi -year project FY19/20 –FY20/21 Strategic Leadership Plan Goals 2A, 6A, 6B, 6C, 7A Administrative Services –Human Resources Duties include employee recruitment/retention, compensation analysis, employee relations, benefits administration, training and education, policy/procedure administration Major initiatives for FY 19/20: Evaluate salary/step plans for compression, comparison to market New employee onboarding and training program Streamlined employee performance evaluation process Update Town Personnel Policies and Procedures, as needed FY19/20 –FY20/21 Strategic Leadership Plan Goals 6C, 6D Town Benefits Overview Self-Funded Medical (United Healthcare) –PPO and HDHP Estimated savings of nearly $2M since moving to self -funding 5% premium increase + dependent coverage cost shift for FY 19/20 Self-Insurance Benefit Fund reserves total approximately $700,000 Dental (Delta Dental) –Low and High Plan Lower renewal increase (30%) with 2 -yr rate guarantee vs MetLife (45% proposed increase) Overall cost increase of $45,000 Employee On-site Health Clinic For employees and dependents participating in TOV plans 11% increase in utilization over previous year $321,224 saved in what would have been office visit charges and lost productivity Return on investment (ROI) of $2.60 for every $1 invested in clinic Administrative Services –Information Technology Duties include Town computer network security/management, application development and support, database management, Geographic Information System (GIS) mapping, and management of all Town voice and data systems Major initiatives for FY 19/20: Evaluate feasibility of Town fiber optic network Implement new Parks and Recreation software, CivicRec Expand use of asset management system, Cartegraph Implement new modules in ERP system, MUNIS FY19/20 –FY20/21 Strategic Leadership Plan Goals 1A, 6B, 6C Town Manager’s Office Serves as Chief Administrative Officer of the Town, intergovernmental programs, tourism promotion, communications, and coordination of administrative functions of Town departments Major initiatives for FY 19/20: Develop new Town website, implement new web-based community engagement platform Support regional marketing efforts for Census 2020 Expand Town Manager’s Peak Performance Initiative Develop performance management dashboards town -wide Develop annexation strategy, propose annexations for Town Council consideration Implement Town Council’s decision regarding golf courses and Community Center FY19/20 –FY20/21 Strategic Leadership Plan Goals 1C, 2A, 6A, 6B, 6C Town Council Seven-member elected body who provides policy direction by adopting rules, regulations and procedures to meet community needs Strategic Leadership Plan focus areas and highlights Economic Vitality –Retail assessment, OV Innovation Lab, recruitment, etc. Culture & Recreation –Golf courses and Community Center, parks investments, needs assessment/master plans & programming/special events Public Safety –Evidence facility, fleet, building remodel & training Roads, Water and Town Assets –Infrastructure investments Land Use –Zoning Code evaluation and update Effective & Efficient Government –Increased communication and engagement & evaluation for increased access to public documents and financials Town Finances –PSPRS unfunded liability plan & conservative approach to funding capital investments and programming based on projections General Administration Accounts for overhead, non-departmental costs, community partnerships and transfers to other funds Budget highlights Children’s Museum support -$75,000 (level funding) Visit Tucson -$300,000 (level funding) Greater Oro Valley Chamber of Commerce -$40,000 (level funding) SAACA -$30,000 2020 Census efforts -$5,000 Tohono Chul Pavilion partnership final funding -$125,000 Pima County Jail IGA ($180,000) and Animal Control IGA ($155,000, offset with $90,000 in license permit revenues) Payments to Outside Agencies –ADOR ($119,000), Veterans Court ($11,000), PSPRS payment ($500,000) FY19/20 –FY20/21 Strategic Leadership Plan Goals 1E, 6A, 7A Legal Services Duties include handling of civil matters for the Town Council, Town Manager and departments, and prosecuting misdemeanor crimes and traffic violations Major initiatives for FY 19/20: Work with Police Department and Magistrate Court to explore the feasibility of establishing a “Drug Court” to provide opportunities for individuals convicted of certain crimes to address substance abuse issues FY19/20 –FY20/21 Strategic Leadership Plan Goal 3A Magistrate Court Duties include processing and adjudication of misdemeanor criminal and traffic cases, Town code violations, collecting fees and fines, issuing orders of protection, issuing marriage licenses and performing weddings Major initiatives for FY 19/20: Work with Police Department and Legal Services to explore the feasibility of establishing a “Drug Court” to provide opportunities for individuals convicted of certain crimes to address substance abuse issues FY19/20 –FY20/21 Strategic Leadership Plan Goal 3A Questions?