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HomeMy WebLinkAboutPackets - Council Packets (1603) **AMENDED (06/12/98, 3:35 P.M.) AGENDA ORO VALLEY TOWN COUNCIL BUDGET REVIEW SESSION JUNE 15, 1998 Oro Valley Town Council Chambers 11,000 N. La Canada Drive STUDY SESSION - At or after 4:00 p.m. CALL TO ORDER ROLL CALL 1. Review of items from June 8, 1998 Budget Review Session 2. Public Works Department a) Water Utility Fund b) Water Connection Fees Fund c) Alternative Water Resources Development Fee d) Water Company Acquisition Fund e) Highway Fund 0 Townwide Roadway Development Impact Fees Fund 3. Community Development Department a) Administration Division b) Planning & Zoning Division c) Building Safety Division d) Parks & Recreation Division e) Heritage Fund Grant f) Public Transportation g) Custodial & Facilities Maintenance Division **4. Policy Procedures/Appointments Adjournment 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 Kathryn Cuvelier, Town Clerk, at 297-2591. Posted: AMENDED AGENDA POSTED: 06/12/98 06/12/98 12:00 noon 3:35 P.M. sr SR (6 AGENDA ORO VALLEY TOWN COUNCIL BUDGET REVIEW SESSION JUNE 15, 1998 Oro Valley Town Council Chambers 11,000 N. La Canada Drive STUDY SESSION - At or after 4:00 p.m. CALL TO ORDER ROLL CALL 1. Review of items from June 8, 1998 Budget Review Session 2. Public Works Department a) Water Utility Fund b) Water Connection Fees Fund c) Alternative Water Resources Development Fee d) Water Company Acquisition Fund e) Highway Fund fl Townwide Roadway Development Impact Fees Fund 3. Community Development Department a) Administration Division b) Planning & Zoning Division c) Building Safety Division d) Parks & Recreation Division e) Heritage Fund Grant 0 Public Transportation g) Custodial & Facilities Maintenance Division Adjournment 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 Kathryn Cuvelier, Town Clerk, at 297-2591. Posted: 06/12/98 12:00 noon sr MEMORANDUM TO: Mayor and Council FROM: Chuck Sweet, Town Manager David Andrews, Finance Director DATE: June 15, 1998 SUBJ: Follow-up Issues From June 8 Budget Review Session A number of issues were raised during the Mayor and Council's Budget Review Session of June 8. This memorandum serves as staff follow-up to those issues. 1. Issue: Does the revenue estimate for cable franchise fees take into consideration the 5% rate increase recently received by Jones Intercable? Response: The estimate did not consider the Jones rate increase. The revised figure including the increase should be $194,000 rather than$185,000. 2. Issue: Does the revenue estimate for sales tax include sales tax that will be generated from the new Safeway grocery store? Response: Approximately $15 —$20,000 is included in the estimate based on a grand opening date of April 1, 1999. This estimate may be conservative as Safeway officials p g have recently indicated an opening date of January 1, 1999. 3. Issue: Does the revenue estimate for county auto lieu(vehicle registration fees) tax consider the reduction in vehicle registration fees recently enacted by the State? Response: The State reduced vehicle registration fees by 16% during its last session. However, the legislation"held cities and towns harmless"therefore, the State's action will have no impact on the Town of Oro Valley's revenue estimate. 4. Issue: Are LTAF state-shared revenues that are used to fund Coyote Run transportation services in jeopardy due to the November 1998 election? Response: In the November 1998 General Election, voters of the state will decide whether or not to continue the state lottery. If the voters decide to discontinue the lottery, the discontinuance would be effective July 1, 1999. Therefore, there would be no negative impact to LTAF revenues in FY 1998-99. Staff will pay close attention to the November election and seek out new funding sources for the Coyote Run should the lottery be discontinued. 5. Issue: Does the revenue estimate for sales tax include sales tax that will be generated from the new Holiday Inn Express? Response: No. Revenue estimates are generally moderate to conservative. Holiday Inn P officials recently indicated a construction start date of July 15. 1998 and a grand opening date of January 1, 1999. Revenue estimates could be $20— S30.000 too low based on that information. However, staff does not recommend making an adjustment for this item. 6. Issue: Feasibility, design, and implementation of a cafeteria-style benefits plan for Town employees. Response: The Human Resources Director will research the cafeteria-style plan and providepreliminary report within 90 days of the beginning of the new fiscal year. a imStaff'splement nitial estimate is that the plan would take at least one year to implement due to the technical issues that would need to be researched. 7. Issue: Oro Valley employees should be compensated within the top 1/3 of the pay ranges of cities and towns in Arizona of comparable size. Response: The Human Resource Director will research Oro Valley's existing ranking in terms of the top third parameter and estimate the cost implications, if any, associated with the issue. 8. Issue: The proposed budget contains $1.6M in funding for the construction of CDO Riverfront Park Phase I. Staff was directed to explore the feasibility of constructing Phase I and Phase II in the upcoming fiscal year 1998-99. Response: The total combined cost of Phase I and II is $2,554,132 per the report prepared byMcGann and Associates. Pima County has indicated they will provide p $1,250,000 in bond proceeds for park construction; $166,000 to be paid in FY 1998-99 and the balance of$1,084,000 in FY 1999-2000. The following outlines the financial implications for the Town: $2,554,132 Phase I & Phase II Costs - 1,250,000 Pima County's Portion - $479,210 1996 COP Funding $824,922 General Fund's Portion In order to fund both phases in FY 1998-99, the transfer from the General Fund would need to be increased to $1,908,922 ($2,554,132 - $166,000 - $479,210). Of the $1,908,922 amount, $1,084,000 would be repaid by Pima County in FY 1999-2000. The increased transfer would decrease the General Fund contingency from the current amount of$4,397,273 to a revised amount of$3,443,141. The minimum contingency pursuant to Council policy is currently $2,815,494. 9. Issue: The proposed budget contains $50,000 of Pima County funds for site analysis and preliminary design of a new Town library. It now appears that Pima County does not have funding available to the Town for these tasks. Response: Modify the budget to transfer$20,000 in funding from the General Fund to the Library Construction Fund. Staff appreciates the opportunity to review these issues with the Mayor and Council. CC: Jeff Grant, Human Resources Director