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HomeMy WebLinkAboutPackets - Budget and Finance Committee (49)       AGENDA ORO VALLEY BUDGET AND FINANCE COMMISSION REGULAR SESSION FEBRUARY 20, 2024 COUNCIL CHAMBERS 11000 N. LA CAÑADA DRIVE        REGULAR SESSION AT OR AFTER 4:00 PM   CALL TO ORDER   ROLL CALL   PLEDGE OF ALLEGIANCE   CALL TO AUDIENCE - at this time, any member of the public is allowed to address the Commission on any issue not listed on today’s agenda. Pursuant to the Arizona open meeting law, individual Commission members may ask Town staff to review the matter, ask that the matter be placed on a future agenda, or respond to criticism made by speakers. However, the Commission may not discuss or take legal action on matters raised during "Call to Audience." In order to speak during "Call to Audience", please specify what you wish to discuss when completing the blue speaker card.   STAFF LIAISON REPORT   REGULAR SESSION AGENDA   1.REVIEW AND APPROVAL OF THE JANUARY 16, 2024 REGULAR SESSION MEETING MINUTES   2.PRESENTATION ABOUT THE COMMUNITY'S EFFORT TO CREATE THE NEXT 10-YEAR PLAN, KNOWN AS OV'S PATH FORWARD   3.PRESENTATION AND POSSIBLE DISCUSSION OF THE TOWN'S FY 23/24 FINANCIAL UPDATE THROUGH DECEMBER 2023 (Please reference attachments)   4.REVIEW AND DISCUSSION ON PROPOSED TOWN FINANCIAL AND BUDGETARY POLICIES   5.PRESENTATION AND DISCUSSION OF PSPRS PENSION FUNDING   COUNCIL LIAISON COMMENTS   ADJOURNMENT   POSTED: 2/16/24 at 5:00 PM by dt. When possible, a packet of agenda materials as listed above is available for public inspection at least 24 hours prior to the Commission meeting in the Town Clerk's Office between the hours of 8:00 a.m. – 5:00 p.m. The Town of Oro Valley complies with the Americans with Disabilities Act (ADA). If any person with a disability needs any type of accommodation, please notify the Town Clerk’s Office at least five days prior to the Commission meeting at 229-4700. INSTRUCTIONS TO SPEAKERS INSTRUCTIONS TO SPEAKERS Members of the public have the right to speak during any posted public hearing. However, those items not listed as a public hearing are for consideration and action by the Commission during the course of their business meeting. Members of the public may be allowed to speak on these topics at the discretion of the Chair. If you wish to address the Commission on any item(s) on this agenda, please complete a blue speaker card located on the Agenda table at the back of the room and give it to the Recording Secretary. Please indicate on the speaker card which item number and topic you wish to speak on, or if you wish to speak during “Call to Audience,” please specify what you wish to discuss when completing the blue speaker card. Please step forward to the podium when the Chair announces the item(s) on the agenda which you are interested in addressing. 1. For the record, please state your name and whether or not you are a Town resident. 2. Speak only on the issue currently being discussed by the Commission. Please organize your speech, you will only be allowed to address the Commission once regarding the topic being discussed. 3. Please limit your comments to 3 minutes. 4. During “Call to Audience”, you may address the Commission on any issue you wish. 5. Any member of the public speaking must speak in a courteous and respectful manner to those present. Thank you for your cooperation. “Notice of Possible Quorum of the Oro Valley Town Council, Boards, Commissions and Committees: In accordance with Chapter 3, Title 38, Arizona Revised Statutes and Section 2-4-4 of the Oro Valley Town Code, a majority of the Town Council, Board of Adjustment, Historic Preservation Commission, Parks and Recreation Advisory Board, Stormwater Utility Commission, and Water Utility Commission may attend the above referenced meeting as a member of the audience only.”      Budget and Finance Commission AGENDA ITEM: 1. Meeting Date:02/20/2024   Submitted By:Melissa Flores, Legal SUBJECT: REVIEW AND APPROVAL OF THE JANUARY 16, 2024 REGULAR SESSION MEETING MINUTES RECOMMENDATION: Staff recommends approval. EXECUTIVE SUMMARY: N/A BACKGROUND OR DETAILED INFORMATION: N/A FISCAL IMPACT: N/A SUGGESTED MOTION: I MOVE to approve the January 16, 2024 regular session meeting minutes. Attachments Draft Minutes 011624      Budget and Finance Commission AGENDA ITEM: 2. Meeting Date:02/20/2024   Requested by: Bayer Vella, Community and Economic Development Submitted By:Milini Simms, Community and Economic Development SUBJECT: PRESENTATION ABOUT THE COMMUNITY'S EFFORT TO CREATE THE NEXT 10-YEAR PLAN, KNOWN AS OV'S PATH FORWARD RECOMMENDATION: This item is for information and discussion purposes only. EXECUTIVE SUMMARY: This item serves to let the community know how the OV's Path Forward Community Engagement Plan is being implemented and opportunities for them to participate in this important effort. OV's Path Forward, the community's next 10-year action plan, was launched at the end of October 2023. Community participation is critical to ensuring the plan reflects all demographic groups and geographic areas in the town and produces meaningful results when implemented. To achieve a high level of community participation, a resident-driven Community Engagement Plan was approved by the Town Council. The Community Engagement Plan details the tools and methods to implement an inclusive, accessible and transparent outreach process. The process to create OV's Path Forward is divided into three phases. Phase 1: Let's Talk aims to: Raise awareness and educate the community about the importance of the 10-year plan and their involvement.1. Engage and listen to the community's ideas and perspectives to establish their vision and goals for OV’s future. 2. The result of Phase 1 sets the foundation for the rest of the plan. The plan effects all quality of life aspects, including housing, land use, water, parks and recreation, environment and views, public safety and more. It is imperative for everyone to share their ideas about each topic on OVPathForward.com. Implementing the Community Engagement Plan (Attachment 1) 1. Awareness and Education: Being intentional with clearly stated objectives and messaging is a guiding principle in the resident-driven, Community Engagement Plan. Consistent messaging about the importance of the plan, the community's involvement, and topics such as housing were promoted through the following: 24 articles or ads 3 podcast episodes 42 social media posts 43 posters were distributed to 19 locations around town. This includes apartments, parks, the Community Rec Center, OV Aquatic Center and along the loop. 30 magnets were placed on town vehicles. 12 large signs were placed around the community. 7 background reports and associated videos were posted online to provide baseline information about OV's history, demographics, housing, economic development and tourism, public safety, roadways and mobility, parks and recreation, and environmental conservation. 2. Engagement: Making outreach efforts sincere, creative, collaborative, interactive and fun is also a guiding principle of the Community Engagement Plan. There are several opportunities to participate online and in the community. To date, the most popular social media posts have been related to upcoming events. The most used online engagement tools include the discussion forums and the mapping tool. Online engagement includes: 13 discussions to share ideas and perspectives on housing, economic development, demographics, challenges and values. 1 mapping tool to identify areas where roadway, trail, bike, pedestrian or other safety improvements 7 polls to quickly understand the priorities and expectations related to transportation, public safety, and environmental conservation. 1 comment board to share ideas on the types of outdoor amenities or activities wanted in the future 1 giveaway game to stimulate online participation In addition to online participation, several opportunities were launched in the community to meet the people where they are. Between October and January, OV's Path Forward participated in 33 events or meetings. An interactive map is online at www.OVPathForward.com to let the community know where they can find and participate in OV's Path Forward. Examples include: Community wide events such as National Night Out, HallOVeen Spooktacular and SnOV Youth sports practices at Naranja and Riverfront Parks Recreation areas along the loop, Honeybee Canyon and Big Wash Trailhead Businesses including Stacks Book Club and both Fry's stores Play groups at James D. Kriegh Park Schools such as Ironwood High and Copper Creek Elementary School Booths were at all board and commission meetings. Members, including any public in attendance, were encouraged to share their ideas and perspectives. Community Participation The community provided 1,736 post-comments and 1,170 online contributions (comments, map pins, votes, etc.) between October and January 25. Three main questions are being answered by the community through events and online discussions. Themes will be derived from the responses to establish the community's values, priorities and expectations for the future. Detailed lists of the individual responses to the following questions along with preliminary analysis to capture key topic areas are attached. What do you like best about Oro Valley? (Attachment 1) What do you think will be OV's biggest challenges in the next 10 years? (Attachment 2) What should OV be known for? (Attachment 3) So far, the community has said: Oro Valley is a friendly, clean and safe community. Oro Valley should be known for its natural beauty, views, kindness, and outdoor activities. Managing growth, specifically as it relates to traffic, water use and services, types of housing available, and having more retail or restaurants are all challenges facing OV in the next 10 years. Survey and upcoming opportunities There are plenty of opportunities for the community to get involved in shaping Oro Valley's future. On February 1, a community-wide survey will be launched online at OVPathForward.com and conducted by FMR Associates via phone. The survey seeks to understand the community's priorities and expectations for the future. For comparison, it also includes some questions that were asked in 2013. In addition to the survey, the last sections of the background report and associated videos will be published by the end of February. This includes information about water use, supply and conservation, climate and sustainability, land use and zoning, and town finances. Most importantly, new tools to discuss each topic will be available. The community is highly encouraged to go to OVPathForward.com to learn more and participate in all the discussions. BACKGROUND OR DETAILED INFORMATION: Please see executive summary. FISCAL IMPACT: Not applicable. SUGGESTED MOTION: This item is for information and discussion purposes only. Attachments ATTACHMENT 1 - IMPLEMENTATION OF THE CEP ATTACHMENT 2 - LIKE BEST RESPONSES ATTACHMENT 3 - CHALLENGE RESPONSES ATTACHMENT 4 - KNOWN FOR RESPONSES      Budget and Finance Commission AGENDA ITEM: 3. Meeting Date:02/20/2024   Submitted By:Christopher Hutchison, Finance SUBJECT: PRESENTATION AND POSSIBLE DISCUSSION OF THE TOWN'S FY 23/24 FINANCIAL UPDATE THROUGH DECEMBER 2023 (Please reference attachments) RECOMMENDATION: N/A EXECUTIVE SUMMARY: Please reference attachments for this item. BACKGROUND OR DETAILED INFORMATION: N/A FISCAL IMPACT: N/A SUGGESTED MOTION: N/A Attachments Consolidated December 2023 Monthly Financial Report      Budget and Finance Commission AGENDA ITEM: 4. Meeting Date:02/20/2024   Submitted By:David Gephart, Finance SUBJECT: REVIEW AND DISCUSSION ON PROPOSED TOWN FINANCIAL AND BUDGETARY POLICIES RECOMMENDATION: N/A for discussion only. EXECUTIVE SUMMARY: Draft proposed financial and budgetary policies have been attached. Key changes to existing Council-approved financial and budgetary policies are as follows: 1) Policy 1-5 Capital Expenditures and Improvements: Definitions section removes "Minor Assets" which are not referenced anywhere else in the policy, and increases the capital threshold for a Capital Asset from $5,000 to $25,000. Also, a definition for Subscription-based Information Technology Arrangements (SBITAs) has been added. Finally, the Capital Improvement Program (CIP) threshold is increased from $50,000 to $150,000. 2) Policy 1-5 Capital Expenditures and Improvements: Policy 3.0 has been updated to include Subscription-based Information Technology Arrangements (SBITA) capitalization thresholds due to implementation of GASB-96. 3) Policy 1-6 PSPRS Pension Funding: Updated to conform to the latest proposed policy effective for next fiscal year. BACKGROUND OR DETAILED INFORMATION: The most significant change between the proposed financial policies and current financial policies deals with an increase in the capitalization and CIP thresholds for capital assets. The Town has kept the same dollar threshold ($5,000) for capitalizing assets since GASB-34 was implemented by the Town for fiscal year June 30, 2003, which is a full 20 years ago. Total Town Net Assets in FY2003 was reported at $54.9 million. As of June 30, 2023, the total Town Net Position was $331.8 million. As a result, staff performed an analysis to determine what impact a change might have on the Town's capital asset register. The analysis yielded the following: Total assets less than $25,000 make up a very small percentage of total assets - 1.48% for Governmental Activities and 1.68% of Business-type Activities. 1. When examining FY23 additions, increasing the threshold from $5,000 to $25,000 still captures 98.2% of total additions from the current policy. 2. Last fiscal year, there were 55 asset additions capitalized under $25,000 out of 102 total asset capitalizations in the Governmental activities funds, representing 54%. In the Business-type activities funds, there were 4 asset additions under $25,000 out of 31 total asset capitalizations, representing 13%. 3. With respect to increasing the CIP threshold, increasing the amount from $50,000 to $150,000 seemed reasonable with respect to how inflation has significantly impacted and increased prices of capital projects over the past couple years. Additionally, the proposed policy change is consistent with the same limit or threshold applied to lessor leases. 4. FISCAL IMPACT: N/A SUGGESTED MOTION: N/A for discussion only. N/A for discussion only. Attachments Draft Financial and Budgetary Policies Existing financial and budgetary policies      Budget and Finance Commission AGENDA ITEM: 5. Meeting Date:02/20/2024   Submitted By:David Gephart, Finance SUBJECT: PRESENTATION AND DISCUSSION OF PSPRS PENSION FUNDING RECOMMENDATION: N/A - this item is for presentation and discussion only. EXECUTIVE SUMMARY: This agenda item is intended to update the Budget and Finance Commission on the funding status of the PSPRS plan, especially as it relates to Town police pensions, in anticipation of updating the PSPRS Pension Funding Policy for next fiscal year ending June 30, 2025. BACKGROUND OR DETAILED INFORMATION: Actuarial reports for the fiscal year ended June 30, 2023, have been released by PSPRS. Both the Town police plan and dispatch (CORP) plan have been attached. Plan investment yields last year were 7.6% net of fees, which exceeds the assumed earnings rate of 7.2% for tier 1/tier 2. Also, the reports now reflect the additional funding contributed last fiscal year to the CORP plan for Town dispatchers. The police tier 1/tier 2 funding status has dropped from 102% to 95%, while the dispatch tier 1/tier 2 funding status has increased from 46% to 100.5%. Due to the drop in funding status on the police tier 1/tier 2 plan, the Town has an unfunded actuarial accrued liability for police estimated at $4,317,242. For the CORP plan, the Town has a net pension asset of $19,516. As a reminder, the Town is contributing an additional $2.5 million toward the police plan this fiscal year which, according to the report on page 8 (all else being equal) would bring the funding status up to about 97.9% at the end of this fiscal year. FISCAL IMPACT: N/A SUGGESTED MOTION: N/A Attachments 2023 PSPRS Actuarial Report 2023 CORP Actuarial Report FY24 PSPRS Pension Funding Policy