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HomeMy WebLinkAboutPackets - Council Packets (1518)Budget Study Session FY 2020-21 Recommended Budget May 28, 2020 Community and Economic Development Department JJ Johnston, Director Major Accomplishments -CED FY 19/20 at a glance Full implementation of digital submittal and review of zoning, permitting and use of Skype for specific inspection requests Processed 1,916 building permits; 115 zoning related applications; 7 in-person neighborhood meetings and 8 electronic ones; and 28,000 inspections. Development and implementation of zoning and building code amendments. Outreach to over 650 businesses to assist with retention and sharing of available resources on the new COVID 19 Business Resouces website. Adoption of the Comprehensive Economic Development Strategy and implementation of more than a dozen goals and objectives 38 public meetings 29 pre-apps. 20 development plans 3 CED Essential Functions for OV Implementing the Your Voice, Our Future General Plan Planning, permitting, inspections and monitoring of construction projects Protection of property and public health via review and approval processes Business retention, expansion and attraction programs Creation of new job opportunities and services Expansion of tax base to generate new financial resources for the community 4 CED Major Goals for 2020 Align CED Budget with Town Council Strategic Leadership Plan (SLP) Goal 1A-Attract, grow and retain primary employers Innovate Economic Development marketing efforts Expand use of primary employer incentives, process improvements and site options for primary employers Goal 1B -Expansion in commercial centers Reimagine the Oro Valley Market Place with its mixed land use transition to Oro Valley Village Center Enable focused range of new light Tech Park uses in commercial centers Expand local business outreach to help ensure retention during the economic recovery Goal 5A-Ensure quality development Zoning code updates Goal 6A-Expand community engagement Targeted use of video and web-based outreach in addition to in- person meetings Goal 6C-Identify internal efficiency opportunities Acquire new permitting and building inspection software to achieve maximum efficiency gains 5 CED Goals 2020 Key Goals Inspection and Permitting: Activate new permitting software and fully enable on-line payments Improve customer service through use of Electronic Submittal process and Skype inspections Provide additional support to CED priority projects Planning: Final draft presentation to Town Council of the following zoning code updates: 1) Commercial and Economic Expansion zone update,2) Odor abatement code,3) Regulation of noise for specific land use proposals 4) Development review process improvements Timely completion of the following major development review projects: 1) Vistoso Golf General Plan amendment and rezoning, 2) 1st & Tangerine General Plan amendment and rezoning, 3) Oro Valley Marketplace Explore targeted use of video and web-based outreach to expand community outreach as a supplement to in-person meetings Economic Development: Innovate ED sales and marketing efforts/expand site selectors information Update opportunity briefings to prospects and business location organizations Innovate economic recovery programs that will create new Business Retention/Expansion and Attraction projects 6 CED Summary Budget Comparison FY 19/20 and FY 20/21 Operations & Maintenance Expenditures 0 20,000 40,000 60,000 80,000 100,000 120,000 Administration Permitting Planning Inspection and Compliance Economic Development FY 2019/20 Budget FY 2020/21 Recommended Budget Administration $96,850 $29,900 Permitting $101,385 $98,315 Planning $54,710 $29,910 Inspection & Compliance $13,555 $9,874 Economic Development $104,578 $20,821 TOTAL:$371,078 $188,820 CED Summary Budget Comparison FY 19/20 and FY 20/21 7 S u mmary CED provides multiple essential functions Major accomplishments this year include: Implementation of 100% digital zoning and permitting submittals and targeted Skype inspections Increased customer service Increased business attraction, retention and expansion efforts FY 20/21 goals align with 5 core Strategic Leadership Plan goals and represent essential functions Reduced budget for operations and same high expectations for accomplishment Budget request for permitting and building inspection software to achieve maximum efficiency gains 8 Parks & Recreation Department Kristy Diaz Trahan, Director FY 19/20 Major Accomplishments –Parks & Recreation Secured grant for Adaptive Reuse Study at Steam Pump Ranch Implemented new recreation management software system (CivicRec) Developed RFP for Parks Needs Assessment and Master Plan, selected PRO’s Consulting and began work in December 2019 (final report presented to Council May 2020) Developed RFP for new playground at Naranja Park with first phase of infrastructure in February –Expected completion Fall 2020 Expanded October community event programming –10,000 participants throughout the month Installed two new pickleball courts 10 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. 11 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. 12 Divisions Parks & Recreation Department Administration Aquatics Community Center Park Management Recreation and Cultural Golf it’s in our nature 13 Administration Division Needs Assessment and Master Plan Phase II Travel/Training reduced Volunteer Program Strategic Plan Focus •Goal 2A •Goal 6A 14 Aquatics Division Lifeguard training and retention Improved facility safety Swim meets, Synchro meets, and Triathlons Strategic Plan Focus •Goal 2A •Goal 6D 15 Community Center Focus on Membership recruitment and retention Staff training and retention Lighting for new Pickleball courts New treadmills Strategic Plan Goals •Goal 2A •Goal 1E 16 Recreation and Culture Strategic Plan Goals •Goal 2A •Goal 1E Community Events reduction Sport and recreation programming Steam Pump Ranch programming Historic Preservation 17 Park Management Focus on overall park improvements Replacement of site amenities Installation of an ADA walkway at Steam Pump Ranch Strategic Plan Goals •Goal 2A 18 O&M Comparison FY 19/20 and 20/21 Department Comparison –General Fund Administration Aquatics Recreation and Culture Park Management FY 19/20 $200,133 $608,240 $167,770 $700,950 FY 20/21 $108,273 $310,200 $157,420 $828,750 $- $100,000 $200,000 $300,000 $400,000 $500,000 $600,000 $700,000 $800,000 $900,000 FY 19/20 FY 20/21 19 Thank You 20 Water Utility Department Peter Abraham, Director FY 19/20 Major Accomplishments –Water Utility Pumped 1,764 acre feet of groundwater less than the estimated sustainable production rate Delivered over 2.9 billion gallons of water to our customers 49% of water deliveries were supplies other than groundwater Took 3,820 water quality samples with all results meeting regulatory requirements 293 new metered connections for a total customer base of 20,481connections The WaterSmart customer portal has 5,068 registered users and has provided over 7,000 leak alerts directly to customers 22 The Water Utility is an Enterprise Fund Oro Valley Water Utility Self-supporting and funded solely from Utility revenues Does not receive any funds from the Town’s General Fund All revenue is used for operating costs of the Utility Pays administrative service costs to the General Fund for departmental support Mayor and Council Water Policies require annual review of the water rates 23 Recommendation on water rates 2020 preferred financial scenario proposes: Base rate potable water increase ($1/mo. for 5/8-inch meter) Reduction in reclaimed water commodity rate Reduction in reclaimed water Groundwater Preservation Fee (GPF) Staff recommends: No potable water base rate increase due to potential hardships realized by the community due to COVID-19 pandemic Reduction in reclaimed water commodity rate Reduction in reclaimed water GPF 24 Operating Fund Budget Revenues Water Sales $13,078,000 Service Charges 3,086,500 Interest Income 75,000 NW Reliability Proceeds 754,995 Bond Proceeds 2,188,000 Total $19,182,495 Expenses Personnel $ 3,458,800 O&M 8,044,042 Capital 3,208,622 Debt Service 4,775,055 Transfer to WRSDIF (NWRRDS Project)2,203,200 Transfer to Debt Service 2,521 Total $21,692,240 Estimated Cash Reserves $ 8,500,000 Oro Valley Mayor and Council Water Policy: “The Utility shall maintain a cash reserve in the Operating Fund of not less than 20% of the combined total of the annual budgeted amounts for personnel, operations and maintenance, and debt service. This cash reserve amount specifically excludes budgeted amounts for capital projects, depreciation, amortization and contingency. No cash reserve is required for the water utility impact fee funds.”25 Operating Fund Expenses –Personnel Authorized positions: 39.48 FTEs Requested 1 additional FTE Increase of $88,221 Includes requested FTE No merit increases Retirement contributions 26 Operating Fund Expenses –O&M Renewable Water Costs CAP wheeling $1,787,719 CAP water delivery 1,689,000 Reclaimed water delivery 569,646 CAP capital charges 482,130 General Fund Services 902,203 Electric Power Costs 905,000 Outside Professional Services 612,335 Repair & Maintenance of Capital Assets 326,134 Fleet Maintenance / Fuel 115,000 All other operating costs 654,875 Total O&M $8,044,042 27 Operating Fund Expenses –Capital Water Main Replacement Projects $ 340,000 Well Replacement & Upgrades 963,000 Booster Station Upgrades 468,000 Equipment / Meters / Vehicles 537,622 Reservoir Replacement 750,000 Production Facility Improvements 150,000 Total Capital $3,208,622 28 Operating Fund Expenses –Debt Service Annual debt service $ 4,775,055 Total outstanding debt $31,185,046 The Utility balances the planned use of cash reserves with the issuance of new debt to minimize rate increases 29 Impact Fee Fund Water Resource and System Development Impact Fee Fund Revenue -Impact fees, interest, transfer $4,274,611 Expenses –NWRRDS & Steam Pump Well $6,158,000 Estimated Ending Fund Balance $15,000,000 30 We’ll be back in 10 minutes (8:10) FY 2020-21 Recommended Budget May 27 and 28, 2020 Town Administration Chris Cornelison, Assistant Town Manager FY 19/20 Major Accomplishments –Administration Town projected to absorb COVID -19 financial impact for FY 19-20 Continued to align Town’s capital investments with Council’s Strategic Leadership Plan and financial policies Broadened electronic access to contracts -633 documents to electronic document database Increased participation in OV Peak Performance initiative ($55,000 cost savings for FY) Earned bond upgrade from AA -rating to AAA, (second highest for local governments) Trained Senior Management Team in the Peak Leadership initiative Implemented robust 2020 Census outreach program -Oro Valley with highest citizen response rate in State of Arizona Increased video utilization for resident communication, resulting higher resident engagement Developed/launched new Town website (more user-friendly and public engagement) 33 Administrative Department Overviews Town Manager’s Office Town Clerk Finance HR IT General Administration Legal Services Magistrate Court 34 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 35 Budget Comparison Department FY 19/20 Budget FY 20/21 Recommended Variance Town Clerk $366,336 $428,524 +$62,188 Finance $936,820 $832,888 ($103,932) Human Resources $463,048 $457,347 ($5,701) Information Technology $3,248,502 $3,386,094 +$137,592 Town Manager’s Office $1,314,145 $1,287,034 ($27,111) Town Council $206,001 $197,019 ($8,982) General Administration *$5,327,161 $9,739,833 +$4,412,672 Legal Services $874,057 $870,592 ($3,465) Magistrate Court $923,561 $864,826 ($58,735) Total $13,659,631 $18,064,157 +$4,404,526 * Includes contingency amounts 36 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 20/21: Education campaign for Permanent Base Adjustment for ballot Expand Town Manager’s Peak Performance Initiative within Innovation & Technology Department 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 Implement smooth transition of golf course operator FY19/20 –FY20/21 Strategic Leadership Plan Goals 1C, 2A, 6A, 6B, 6C 37 Town Clerk Duties include business licensing, records management, elections, voter registration and notary services Major initiative for FY 20/21: Explore and implement a new business licensing software system that would provide a more streamlined and efficient user experience Conduct successful election process in cooperation with the Pima County Elections Department FY19/20 –FY20/21 Strategic Leadership Plan Goals 6A, 6B, 6C 38 Finance Duties include accounting, payroll/accounts payable, annual audit coordination, budget development, debt and investment management and procurement Major initiatives for FY 20/21: Town-wide overhead review project Draft Comprehensive Annual Financial Report in -house Improve integration with Human Resources Research open books transparency solution –multi -year project FY19/20 –FY20/21 Strategic Leadership Plan Goals 6B, 6C, 7A 39 Human Resources Duties include employee recruitment/retention, compensation analysis, employee and labor relations, benefits administration, training/education, policy/procedure administration, performance management Major initiatives for FY 20/21: Implement updated Employee On-boarding process Develop Employee Handbook Update Town Personnel Policies and Administrative Directives Review and update town job descriptions and classifications, comparison to market Revise Employee Town-wide Survey and Exit Survey, develop Employee Exit Interview and Stay Survey FY19/20 –FY20/21 Strategic Leadership Plan Goals 6C, 6D 40 Town Benefits Overview Self-Funded Medical (United Healthcare) –PPO and HDHP As of 3rd quarter, annual costs are down 15.4% No premium increase Self-Insurance Benefit Fund reserves total over $1.1 million Dental (Delta Dental) –Low and High Plan FY 19/20 premium credit will be applied to next FY No rate increase Town provided Life and Disability Benefit (Mutual of Omaha) No premium increase Employee On-site Health Clinic For employees and dependents participating in TOV plans Maximum capacity at 2,040 encounters, increasing hours next FY Value on Investment of $3.39 for every $1 invested in clinic 41 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 20/21: Transition Department from IT to Innovation and Technology, integrating Strategic Initiatives Evaluate feasibility of Town fiber optic network Replacement of Permits, Code Enforcement, and Business License software FY19/20 –FY20/21 Strategic Leadership Plan Goals 1A, 6B, 6C 42 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 per agreement) Visit Tucson -$275,000 (reduced $25,000) Greater Oro Valley Chamber of Commerce -$40,000 (level funding) SAACA -$25,000 (reduced $15,000) UA Center for Innovation -$30,000 Includes $1.0M in budget for potential CARES Act Funding Payments to Outside Agencies –ADOR ($119,000), Veterans Court ($11,000), Pima County jail costs ($180,000), Pima Animal Care Center ($139,337) Budgeted contingency increased from $841,000 in FY 19/20 to $5 million in FY 20/21 to provide flexibility during economic uncertainty FY19/20 –FY20/21 Strategic Leadership Plan Goals 1E, 6A, 7A 43 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 20/21: Work with Police Department and Magistrate Court to continue exploring feasibility of “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 44 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 20/21: Work with Police Department and Legal Services to continue expanding Resolution Court, which includes drug court and mental health court. Resolution Court provides opportunities for individuals convicted of certain crimes to address substance abuse issues (which are often in conjunction with mental health issues). FY19/20 –FY20/21 Strategic Leadership Plan Goal 3A 45 Capital Improvement Program Mary Jacobs, Town Manager CIP Overview Ten-year plan Year one is budgeted in the FY 20/21 Recommended Budget Years two through ten are placeholders Includes all funds Fluid document subject to shifts, changes, deletions and additions Reevaluated each year with budget process Projects included in the plan reflect goals and strategies of the Council-adopted Strategic Leadership Plan 47 FY20/21 Recommended CIP $20,465,287 (All Funds Combined) 48 FY 20/21 CIP –Streets and Roads Widening of La Cholla, from Overton to Tangerine-$3.6 million $1.8 million RTA funds; $1.8 million roadway impact fees Project scheduled to be complete mid FY 2021 Identified as part of Infrastructure Improvement Program as well as RTA program Pavement preservation-$1.5 million Funding maintains current overall condition index rating Part of Strategic Leadership Plan –4A Lambert Lane pavement overlay-$320,000 Lambert Lane Park (West of La Cañada ) to La Cholla Provide a uniform look with the La Cholla project & protect roadway from deterioration Part of Strategic Leadership Plan –4A La Cañada Safety Enhancements -$200,000 Safety modifications at the intersection of La Cañada and the Leman school Project scheduled for summer 2020 Transportation Art By Youth (TABY) Grant-$75,000 Funding providing through TABY Grant by PAG Part of Strategic Leadership Plan –4A 49 FY 20/21 CIP –Water System Northwest Recharge, Recovery and Delivery System-$5.5 million Projects associated with the intergovernmental agreement between the Town of Oro Valley, Town of Marana and Metro Water Funding from water impact fees, groundwater preservation fees, Central Arizona Project (CAP) funds Part of Strategic Leadership Plan –4B as well as Infrastructure Improvement Program Reservoirs and wells-$2.14 million Allied Signal Reservoir -$750,000 Nakoma Sky -$738,000 Steam Pump -$650,000 Part of Strategic Leadership Plan –4B Woodburn Booster relocation-$373,000 El Con & Cmo. Diestro main & valve replacement-$200,000 Re-design of a transmission main and valve to create redundancy and system reliability Part of Strategic Leadership Plan –4B Continuing well rehabilitation program-$150,000 Includes video assessment, brush bail, patch, pump efficiency evaluation/replacement Part of Strategic Leadership Plan –4B 50 FY 20/21 CIP –Parks & Recreation Golf course irrigation -$800,000 Design element with portion of construction planned for end of FY 20/21 Timing dependent on sufficient revenues being generated in Community Center fund Part of Strategic Leadership Plan –2A Steam Pump Ranch garage -$550,000 Restores historic structure as part of master plan Allows for movement of staff to Steam Pump Ranch; facilities open six days a week vs. one Additional public recreation access and recreation programming, including revenue opportunities Part of Strategic Leadership Plan –2A Riverfront Park batting cage & bullpen-$140,000 Joint venture with Oro Valley Fast Pitch Softball ($67,000) Installation and expansion of a lighted hitting cage and bull pen Part of Strategic Leadership Plan –2A Parks & Recreation Needs Assessment Amenities -$300,000 Provides funding to begin projects identified from needs assessment results Part of Strategic Leadership Plan -2A 51 Public Safety FY 20/21 CIP –Safety & Other Public Facilities Emergency communications center console replacement-$220,000 Replacing the five existing consoles and adding a sixth Needed due to end-of-life on current consoles Part of Strategic Leadership Plan –3A Emergency Operations Center generator-$133,566 With lack of FEMA grant funding, Town will pursue purchase Part of Strategic Leadership Plan –3A Other Public Facilities Town Hall sidewalks, ADA & wayfinding improvements -$200,000 Provide even walking surfaces which are ADA compliant Include wayfinding for citizens to easily located needed services Pavement preservation: non-roads -$60,000 Preservation and treatment of Town owned parking lots and multi-use paths Part of Strategic Leadership Plan –2A 52 FY 20/21 CIP –Technology & Vehicles Vehicle Replacements Permits software replacement -$200,000 Part of Strategic Leadership Plan –6A Backup hardware replacement -$200,000 Part of Strategic Leadership Plan –7A Utility billing software -$150,000 Part of Strategic Leadership Plan –6A Technology Enhancements FY 20/21 Town wide vehicle replacement program -$925,100 Police, Public Works, Parks, Water Reserves are set aside annually for the eventual replacement of an asset Part of Strategic Leadership Plan –7A 53 FY 20/21 CIP –Budgeted Project Carryover Project Name Carryover Source Anticipated Carryover Amt. Total FY2021 Budget La Cholla Blvd. Phase II Road Impact Fees 1,700,000 3,600,000 Shannon Rd Design & Reconstruct Highway Fund 80,000 80,000 EOC Generator Capital Fund 133,566 133,566 Naranja Park Playground Park Impact Fees 310,000 685,000 Steam Pump Well Water Impact Fees 650,000 650,000 Nakoma Sky Well Replacement Water Utility 738,000 738,000 Well Rehabilitation (D1/CS1)Water Utility 150,000 150,000 Hydropneumatic Tank Replacement (F-1)Water Utility 75,000 75,000 Hydropneumatic Tank Replacement (High Mesa "F")Water Utility 75,000 75,000 Booster Station Relocation (Woodburn)Water Utility 70,000 373,000 Fire Line Backflow Protection Water Utility 20,000 20,000 54 Questions? 55 Thank you for watching! FY 2020-21 Recommended Budget May 28, 2020