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HomeMy WebLinkAboutPackets - Council Packets (1609)         AGENDA ORO VALLEY TOWN COUNCIL REGULAR SESSION JULY 7, 2021 ONLINE ZOOM MEETING Click link to join: https://orovalley.zoom.us/j/96070780591 To attend via phone only, dial 1-346-248-7799 then enter Meeting/Webinar ID 960 7078 0591   The Town recently updated its Zoom capability to allow for increased public attendance and to better facilitate the Town's virtual meetings. When you log in to the meeting you will be added as an attendee. You will be able to address the Town Council during the "Call to Audience," public hearing and public comment items on the agenda. If you wish to address the Council during those parts of the agenda, select "Raise your hand" from the Zoom controls and wait until you are called upon to speak by the Mayor. Town staff will then unmute your microphone and camera. For additional information about the Town's Zoom meetings, visit https://www.orovalleyaz.gov/Government/Departments/Town-Clerk/Zoom-meeting-attendance   Executive Sessions – Upon a vote of the majority of the Town Council, the Council may enter into Executive Sessions pursuant to Arizona Revised Statutes §38-431.03 (A)(3) to obtain legal advice on matters listed on the Agenda.        REGULAR SESSION AT OR AFTER 6:00 PM   CALL TO ORDER   ROLL CALL   PLEDGE OF ALLEGIANCE   UPCOMING MEETING ANNOUNCEMENTS   COUNCIL REPORTS   TOWN MANAGER'S REPORT   The Mayor and Council may consider and/or take action on the items listed below: ORDER OF BUSINESS: MAYOR WILL REVIEW THE ORDER OF THE MEETING   INFORMATIONAL ITEMS   1.Town of Oro Valley FY 20/21 financial update through May 2021 (Please reference the attachments for the Town's monthly financial update)   CALL TO AUDIENCE – At this time, any member of the public is allowed to address the Mayor and Town Council CALL TO AUDIENCE – At this time, any member of the public is allowed to address the Mayor and Town Council on any issue not listed on today’s agenda. Pursuant to the Arizona Open Meeting Law, individual Council 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 Mayor and Council 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.   PRESENTATIONS   1.Proclamation - Child Support Awareness Month   2.Proclamation - Drowning Impact Awareness Month   CONSENT AGENDA  (Consideration and/or possible action)   A.Minutes - June 16, 2021   B.Approval to cancel the July 21, 2021 regular Town Council meeting   C.Request for approval of Conceptual Architecture for a pediatric dental building located in the Mercado at Cañada Hills commercial plaza in proximity to the northeast intersection of La Cañada Drive and Lambert Lane   D.Item A: Resolution No. (R)21-32 (Attachment 1), authorizing and approving the dedication of a public sewer easement from the Town of Oro Valley to Pima County Item B: Resolution No. (R)21-33 (Attachment 2), authorizing and approving the dedication of a private sewer easement from the Town of Oro Valley to the Tranquilo at Rancho Vistoso Homeowners' Association   E.Resolution No. (R)21-34, authorizing and approving the dedication of an easement for the access, maintenance, and construction of soil cement bank protection from the Town of Oro Valley to Pima County   F.Resolution No. (R)21-35, authorizing and approving an Intergovernmental Agreement between Pima County and the Town of Oro Valley for the joint formation and operation of specialized law enforcement teams among public agencies within Pima County, superseding and replacing the existing SWAT IGA   G.Resolution No. (R)21-36, approving the Agenda Committee assignment for the period of September 1, 2021, to November 30, 2021   REGULAR AGENDA   1.DISCUSSION OF THE CURRENT STATUS REGARDING THE EFFORTS TO PRESERVE THE FORMER VISTOSO GOLF COURSE, SUBJECT TO EXISTING CONFIDENTIALITY REQUIREMENTS -Council may adjourn into Executive Session to seek legal advice regarding this item pursuant to A.R.S. 38-431.03(A)(3), (A)(4) and/or (A)(7)   2.RESOLUTION NO. (R)21-37, PRESENTATION, DISCUSSION AND POSSIBLE ACTION TO ADOPT REVISED FINANCIAL AND BUDGETARY POLICIES   3.DISCUSSION AND POSSIBLE ACTION SETTING PRIORITIES FOR SPECIFIC PROJECTS TO BE INCLUDED WITHIN THE PARKS AND RECREATION BOND   FUTURE AGENDA ITEMS (The Council may bring forth general topics for future meeting agendas. Council may not discuss, deliberate or take any action on the topics presented pursuant to ARS 38-431.02H)   ADJOURNMENT The Mayor and Council may, at the discretion of the meeting chairperson, discuss any Agenda item.   POSTED:  6/30/21 at 5:00 p.m. by pp When possible, a packet of agenda materials as listed above is available for public inspection at least 24 hours prior to the Council meeting in the office of the Town Clerk 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 Council meeting at 229-4700.    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 Town Council 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.  In accordance with Amendment #2 of the Mayoral Proclamation of Emergency issued on March 27, 2020, the following restrictions have been placed on all public meetings until further notice: 1. In-person attendance by members of the public is prohibited. 2. Members of the public can either watch the public meeting online https://www.orovalleyaz.gov/town/departments/town-clerk/meetings-and-agendas  or, if they would like to participate in the meeting (e.g. speak at Call to Audience or speak on a Regular Agenda item), they can attend the meeting and participate via the on-line meeting application, Zoom, https://orovalley.zoom.us/j/96070780591 , or may participate telephonically only by dialing 1-346-248-7799 then enter Meeting ID: 960 7078 0591 prior to or during the posted meeting. 3. If a member of the public would like to speak at either Call to Audience or on a Regular Agenda item, please "Raise Your Hand" during the meeting when the Chair announces that it is the appropriate time to do so. For those participating in the meeting through Zoom, place your cursor towards the bottom, middle of the page and look for the "Raise Hand" icon and click on it to "Raise Your Hand" to speak. For those participating via phone only, press *9 to "Raise Your Hand". 4. All members of the public who participate in the Zoom meeting either with video or telephonically will enter the meeting with microphones muted. For those participating via computer/tablet/phone device, you may choose whether to turn your video on or not. Those participating via computer/tablet/phone device can click the "Raise Your Hand" button during the Call to the Public or Regular Agenda item, and the Chair will call on you in order. For those participating by phone, you can press *9, which will show the Chair that your hand is raised. When you are recognized at the meeting by the Chair, your microphone will be unmuted by a member of staff and you will have three minutes to speak before your microphone is again muted. 5. If a member of the public would like to submit written comments to the Town Council for their consideration prior to the meeting, please email those comments to mstandish@orovalleyaz.gov no later than sixty minutes before the public meeting. Those comments will then be electronically distributed to the public body prior to the meeting.  If you have questions, please contact Town Clerk, Mike Standish, at 520-229-4700 or email at  mstandish@orovalleyaz.gov Thank you for your cooperation.    Town Council Regular Session 1. Meeting Date:07/07/2021   Submitted By:Michael Dyckman, Finance Subject Town of Oro Valley FY 20/21 financial update through May 2021 (Please reference the attachments for the Town's monthly financial update) Attachments May Financial Memo  Attachment A - General Fund  Attachment B - Highway Fund  Attachment C1 - Community Center Fund  Attachment C2 - Cash Flow Statement  Attachment D - Summary All Funds  Attachment E - General Fund Sales Tax  Attachment F - General Fund State Shared Revenues  Oro Valley, it’s in our nature. www.orovalleyaz.gov 11000 N. La Cañada Drive • Oro Valley, Arizona 85737 phone: (520) 229-4700 • fax: (520) 229-0428 Town Manager’s Office M E M O R A N D U M TO: Mayor and Councilmembers FROM: Mary Jacobs, Town Manager David Gephart, Chief Financial Officer DATE: July 7, 2021 SUBJECT: May 2021 Financial Update This financial report is intended to provide an overview and status of revenues and expenditures for the Town’s selected funds through May 2021. Funds included in this financial update are the General Fund, Highway Fund and Community Center Fund. All amounts are preliminary, un- audited and subject to change based upon adjusting entries, as necessary. EXECUTIVE SUMMARY: The Town has successfully navigated the challenges posed by the COVID -19 pandemic. Staff is pleased to report that financial performance across all funds has exceeded expectations. Revenues are strong, especially for single-family residential permits and construction sales taxes due to a strong housing market, as well as retail and online sales tax collections. There are also indications of improvement in restaurant/bar and bed tax collections. With much of the fiscal year complete, budgeted projects and programs that were temporarily deferred due to the uncertainty with revenues collections are underway and progressing as the market allows. General Fund Overall, General Fund revenues and expenditures continue to trend better than anticipated through May (See Attachment A). Due to strong local sales tax and permit fee collections, revenues total $45.0 million or 103.7% of budget, while expenditures are below budget at $36.3 million or 81.3% of the total budget. Highway Fund Revenues and expenditures for the Highway Fund are trending as expected through May (See Attachment B). Revenues total approximately $3.4 million or 92.4% of budget, while expenditures total $2.6 million or 68.3% of budget. Community Center Fund Current revenues and expenditures for the Community Center Fund are largely as anticipated through May (See Attachment C-1 & C-2). Revenues total $7.0 million or 98.7% of budget, while expenditures total $5.0 million or 72.0% of budget. BACKGROUND AND DETAILED INFORMATION: GENERAL FUND Attachment A shows General Fund revenues and expenditures through May, as well as year-end estimates for each category. The estimated year -end projections in the General Fund are as follows: Revenues: $55,890,669 Less: Expenditures: ($42,477,005) Preliminary Estimated Change in Fund Balance: $13,413,664 * *The adopted fiscal year 2020/21 budgeted change in fund balance is $(1,225,025) General Fund Revenues • Local sales tax collections in the General Fund total $19.7 million or 108.5% of the budget amount of $18.1 million and are higher than anticipated. Construction sales tax collections total $4.5 million through May, compared to the budget amount of $3.4 million. Retail collections in the General Fund total $7.3 million through May and are $655,000 or 9.9% higher than collections through the same period last fiscal year. Restaurant/bar collections and bed tax collections are down 3.7% and 11.8% respectively, compared to collections through the same period last fiscal year. Due to strong collections in construction, retail and remote collections, General Fund sales taxes are estimated to end the year $2.9 million, or 16.2% over budget. Please see Attachment E for detailed information on General Fund local sales tax collections. • License and permit revenues total $3.0 million or 191.1% of the budget amount of $1.6 million through May. Single Family Residential (SFR) permits issued through May total 458 and are a large portion of this revenue. For reference, through May of last fiscal year, the Town had issued 249 SFR permits . Commercial permit revenue is another main portion of this category and includes large one-time permit revenues . In total, this revenue category is expected to come in over budget by approximately $1.6 million. • State shared revenues , which include shared sales tax, income tax and auto-lieu fees, total $13.0 million or 98.8% of the budget amount of $13.2 million. Through May, state shared sales taxes and auto-lieu fees are trending above budget. Overall, this revenue category is anticipated to end the fiscal year $925,000 or 7.0% over budget. Please see Attachment F for detailed information on General Fund state shared revenue collections. • Other intergovernmental revenues include RTA reimbursements for transit services, school resource officers, and animal control revenues. Actuals through May total $934,000 or 55.9% of budget and are anticipated to end the fiscal year $673,000 or 40.3% below budget. This is mainly due to reduced ridership demand as a result of COVID-19, which caus ed reductions in RTA transit reimbursements. • Charges for services revenues total $1.7 million or 78.1% of the budget amount of $2.2 million. A large portion of these revenues are associated with Parks & Recreation programming and farebox revenues. As anticipated, these revenues sources are lagging due to COVID-19. At this point in time, these revenues are anticipated to end the fiscal year $243,000 or 10.8% below budget. • Federal grant revenues include the Town’s allotted $5.3 million of AZ Cares funding, which was received earlier in the fiscal year. Year-end estimates also include $7.7 million in anticipated revenues associated with the American Rescue Plan Act , the first of two anticipated payments . The second payment will be received in FY 21/22. General Fund Expenditures • General Fund expenditures are trending below budget through May and are estimated to come in under budget by about $2.1 million, or 4.7%. This is due to personnel savings from position vacancies , estimated O&M savings from departments and one-time operating projects , as well as project carry-over into next fiscal year. The General Fund is expected to end the fiscal year with a total fund balance of $34.3 million, or 77.0% of budgeted expenditures. HIGHWAY FUND Highway Fund Revenues • State shared highway user funds total $3.4 million or 97.3% of the budget amount of $3.5 million. At this point, these revenues are estimated to come in above budget by $233,000 or 6.7%, based on current trends . • State grant revenues are reimbursable costs by the RTA related to the La Cholla Road widening project. As this project is substantially complete, there are no additional reimbursements expected. Transportation Engineering expenditures have been reduced accordingly. • All other revenue sources for the Highway Fund are expected to end the fiscal year near budgeted levels. Highway Fund Expenditures • Highway Fund expenditures are currently $2.6 million or 68.3% of the adopted budget of $3.9 million. These costs will increase when the second phase of the Pavement Preservation Program is officially recorded in June. • Highway Fund expenditures are estimated to come in under budget by $603,000 due to reimbursable costs related to the La Cholla Road widening project , anticipated project carry-over for the Lambert Lane Overlay CIP project , and various O&M savings . The Highway Fund is expected to end the fiscal year with a fund balance of approximately $1.3 million. COMMUNITY CENTER FUND Attachment C-1 shows the consolidated financial status of the Community Center Fund with all revenues and expenditures from the golf operator and Town-managed operations. Attachment C-2 shows the monthly line item detail for the contract-managed operations , specifically revenues and expenditures associated with the golf, food and beverage operations. The totals in the revenue and expenditure categories in Attachment C -2 tie to the contracted operating revenues and expenditures in Attachment C-1. Community Center Fund Revenues • Revenues in the Community Center Fund through May total $7.0 million or 98.7% of the budget amount of $7.1 million. • Contracted operating revenues from the golf operator total $3.7 million. This is approximately $703,000 or 23.3% higher than revenues through the same period last fiscal year. Contracted revenues are estimated to come in over budget by approximately $442,000 or 12.6%, primarily due to increased golf, trail and cart revenues. • Due to facility closures and reduced patronage from COVID-19, Town operating revenues through May total $452,000 or 47.3% of budget. This revenue source is expected to end the fiscal year approximately 46.5% or $444,000 below budget. Savings in Town operating costs are expected to partially cover this shortfall. • Local sales tax revenues through May total $2.7 million or 107.1% of the budget amount of $2.5 million. Due to strong retail and remote collections, this category is expected to come in over budget by approximately $416,000 or 16.7%. Community Center Fund Expenditures • Expenditures in the Community Center Fund total $5.0 million or 72.0% of the budget amount of $6.9 million. • Contracted operating expenditures from the golf operator total $4.1 million, or 90.7% of the budgeted amount of $4.5 million. Contracted expenditures are estimated to come in under budget by approximately $50,000 or 1.1%, due to personnel and equipment lease savings. • Budgeted c apital outlay is comprised of several minor capital items , in addition to $1.1 million for the golf course irrigation project. As construction for the irrigation project is on hold, the bulk of this year’s budgeted project cost will not be spent. • Overall, expenditures for the fund are estimated to come in under budget by $1.3 million or 19.1% due to a combination of anticipated personnel, O&M, and capital outlay savings . At this time, the Community Center Fund is projected to end the fiscal year with a total fund balance of about $2.8 million. The year-end sales tax support for golf operations is estimated to be $291,443. This figure includes a projected ($499,519) for contracted golf operations, $125,000 in outside HOA contributions, and $83,076 in local sales taxes generated from golf related operations. Please see Attachments A and B for additional details on the General Fund and Hi ghway Fund. See Attachments C-1 and C-2 for additional details on the Community Center Fund. See Attachment D for a fiscal year-to-date consolidated summary of all Town Funds. See attachments E and F for a breakdown of monthly local sales tax collections and state shared revenue collections for the General Fund. ATTACHMENT A May YTD Financial Status General Fund % Budget Completion through May --- 91.7% % Actuals YE % Variance to Budget to Budget REVENUES:` LOCAL SALES TAX 19,676,800 18,128,304 108.5%21,067,775 16.2% LICENSES & PERMITS 3,042,716 1,592,500 191.1%3,208,858 101.5% FEDERAL GRANTS 5,667,874 5,790,969 97.9%13,424,503 131.8% STATE GRANTS 90,635 75,000 120.8%100,000 33.3% STATE/COUNTY SHARED 13,041,149 13,194,438 98.8%14,119,511 7.0% OTHER INTERGOVERNMENTAL 934,045 1,672,000 55.9%998,817 -40.3% CHARGES FOR SERVICES 1,748,381 2,239,675 78.1%1,996,756 -10.8% FINES 120,665 125,000 96.5%125,000 0.0% INTEREST INCOME 408,341 150,000 272.2%468,341 212.2% MISCELLANEOUS 220,669 262,500 84.1%261,108 -0.5% TRANSFERS IN - 120,000 0.0%120,000 0.0% TOTAL REVENUES 44,951,275 43,350,386 103.7%55,890,669 28.9% % Actuals YE % Variance to Budget to Budget EXPENDITURES: CLERK 357,326 428,524 83.4%423,238 -1.2% COMMUNITY & ECON. DEV.2,394,750 2,779,661 86.2%2,715,503 -2.3% COUNCIL 150,820 197,019 76.6%185,199 -6.0% FINANCE 743,384 832,888 89.3%832,888 0.0% GENERAL ADMINISTRATION 4,235,297 5,251,466 80.6%5,068,966 -3.5% HUMAN RESOURCES 388,841 457,347 85.0%445,200 -2.7% INNOVATION & TECHNOLOGY 3,150,685 3,944,198 79.9%3,802,183 -3.6% LEGAL 761,819 870,592 87.5%843,609 -3.1% MAGISTRATE COURT 687,663 864,826 79.5%849,701 -1.7% MANAGER 816,213 1,028,734 79.3%969,694 -5.7% PARKS & RECREATION 2,683,652 3,478,517 77.1%3,244,198 -6.7% POLICE 14,544,163 16,953,228 85.8%16,333,071 -3.7% PUBLIC WORKS 3,339,463 4,898,891 68.2%4,174,037 -14.8% TRANSFERS OUT 1,996,139 2,589,520 77.1%2,589,520 0.0% TOTAL EXPENDITURES 36,250,215 44,575,411 81.3%42,477,005 -4.7% SURPLUS / (DEFICIT)8,701,060 (1,225,025) 13,413,664 BEGINNING FUND BALANCE 20,899,548 Plus: Surplus / (Deficit)13,413,664 ENDING FUND BALANCE **34,313,212 * Year-end estimates are subject to further revision ** Ending fund balance amounts are estimates and are subject to further revision FY 2020/2021 Year End Estimate * Budget Year End Estimate * Actuals thru 05/2021 Actuals thru 05/2021 Budget ATTACHMENT B May YTD Financial Status FY 2020/2021 % Budget Completion through May --- 91.7% Actuals thru 05/2021 Budget % Actuals to Budget Year End Estimate * YE % Variance to Budget REVENUES: LICENSES & PERMITS 32,147 25,000 128.6%32,197 28.8% STATE GRANTS - 210,000 0.0%- -100.0% STATE/COUNTY SHARED 3,366,876 3,458,929 97.3%3,691,876 6.7% INTEREST INCOME 12,832 5,000 256.6%14,855 197.1% MISCELLANEOUS 7,274 2,000 363.7%7,300 265.0% TOTAL REVENUES 3,419,129 3,700,929 92.4%3,746,228 1.2% Actuals thru 05/2021 Budget % Actuals to Budget Year End Estimate * YE % Variance to Budget EXPENDITURES: TRANSPORTATION ENGINEERING 2,396,190 3,512,881 68.2%2,941,088 -16.3% STREET MAINTENANCE 242,086 348,220 69.5%317,086 -8.9% TOTAL EXPENDITURES 2,638,276 3,861,101 68.3%3,258,174 -15.6% SURPLUS / (DEFICIT)780,853 (160,172) 488,054 BEGINNING FUND BALANCE 818,962 Plus: Surplus / (Deficit)488,054 ENDING FUND BALANCE **1,307,016 * Year-end estimates are subject to further revision ** Ending fund balance amounts are estimates and are subject to further revision - Highway Fund ATTACHMENT C-1 May YTD Financial Status % Budget Completion through May --- 91.7% % Actuals YE % Variance to Budget to Budget REVENUES: CONTRACTED OPERATING REVENUES Golf Revenues, Trail and Cart Fees 2,177,480 1,567,840 138.9%2,303,000 46.9% Member Dues 931,527 850,000 109.6%1,010,000 18.8% Food & Beverage 411,305 760,776 54.1%425,000 -44.1% Merchandise & Other 201,113 325,933 61.7%208,750 -36.0% 3,721,425 3,504,548 106.2%3,946,750 12.6% TOWN OPERATING REVENUES Daily Drop-Ins 28,339 30,000 94.5%30,000 0.0% Member Dues 306,510 707,000 43.4%355,000 -49.8% Recreation Programs 69,700 160,000 43.6%76,000 -52.5% Swim Team/Swim Lessons - 8,000 0.0%- -100.0% Facility Rental Income 46,993 50,500 93.1%50,000 -1.0% Concession Sales 126 100 126.0%130 30.0% 451,668 955,600 47.3%511,130 -46.5% OTHER REVENUES Local Sales Tax 2,670,464 2,492,960 107.1%2,909,305 16.7% Real Property Rental Income 19,502 19,502 100.0%19,502 0.0% Interest Income 16,953 1,000 1695.3%19,945 1894.5% Miscellaneous 127,060 125,000 0.0%127,060 1.6% 2,833,979 2,638,462 107.4%3,075,812 16.6% TOTAL REVENUES 7,007,072 7,098,610 98.7%7,533,692 6.1% % Actuals YE % Variance to Budget to Budget EXPENDITURES: CONTRACTED OPERATING EXPENDITURES Personnel 1,295,018 1,687,606 76.7%1,440,000 -14.7% Operations & Maintenance 2,541,931 2,513,430 101.1%2,757,347 9.7% Capital Equipment Purchases 53,873 - 0.0%53,873 0.0% Equipment Leases 187,058 294,792 63.5%195,049 -33.8% 4,077,880 4,495,828 90.7%4,446,269 -1.1% TOWN OPERATING EXPENDITURES Personnel 553,528 762,713 72.6%638,949 -16.2% Operations & Maintenance 95,860 216,037 44.4%123,393 -42.9% 649,388 978,750 66.3%762,343 -22.1% CAPITAL OUTLAY 68,481 1,124,500 6.1%73,480 -93.5% TRANSFERS OUT 158,302 278,302 56.9%278,302 0.0% TOTAL EXPENDITURES 4,954,051 6,877,380 72.0%5,560,394 -19.1% SURPLUS / (DEFICIT)2,053,021 221,230 1,973,298 BEGINNING FUND BALANCE 862,818 Plus: Surplus / (Deficit)1,973,298 ENDING FUND BALANCE **2,836,116 * Year-end estimates are subject to further revision ** Ending fund balance amounts are estimates and are subject to further revision FY 2020/2021 Actuals thru 05/2021 Budget Year End Estimate * Community Center Fund Actuals thru 05/2021 Budget Year End Estimate * ATTACHMENT C-2 July 2020 Aug. 2020 Sept. 2020 Oct. 2020 Nov. 2020 Dec. 2020 Jan.2021 Feb. 2021 Mar. 2021 April 2021 May 2021 June 2021 YTD FY 2021 FY 2021 Actual Actual Actual Actual Actual Actual Actual Actual Actual Actual Actual Actual Actual Budget Forecast REVENUES: Green Fees 104,791 105,899 122,143 93,295 171,862 161,787 162,631 229,807 269,410 241,815 163,971 1,827,411 1,333,602 1,900,000 Cart Fees 18,898 19,444 19,752 20,236 19,956 20,761 21,970 24,066 23,626 23,767 22,925 235,401 234,237 257,000 Driving Range 1,644 2,670 4,685 5,054 4,366 3,876 3,846 6,781 4,907 5,323 3,600 46,752 65,695 49,000 Golf Cards/Passes (709) - 709 - - - - - - - - - - - Pro Shop Sales 11,834 10,009 10,825 8,276 14,099 21,293 16,957 17,213 35,312 27,457 15,166 188,441 222,238 194,250 Other Golf Rev.4,015 3,186 4,282 2,300 9,313 6,704 4,985 2,124 3,582 3,325 1,635 45,451 3,000 74,000 Clinic/School Rev.360 1,243 1,184 864 1,927 2,089 4,302 3,634 2,878 2,146 1,838 22,465 15,000 23,000 Monthly Dues 74,950 82,272 75,649 77,485 79,933 87,318 84,558 91,219 93,616 94,466 90,061 931,527 850,000 1,010,000 Misc. & Discounts (642) 323 133 951 (448) 1,375 1,140 1,289 1,193 (712) 8,070 12,672 20,000 14,500 Food & Beverage 24,734 22,371 23,461 22,740 36,582 34,969 33,510 43,846 52,541 60,691 55,860 411,305 760,776 425,000 TOTAL REVENUES:239,875 247,417 262,823 231,201 337,590 340,172 333,899 419,979 487,065 458,278 363,126 - 3,721,425 3,504,548 3,946,750 COST OF SALES: Pro Shop 9,815 8,835 10,735 5,880 11,797 21,621 10,803 11,629 23,458 19,847 11,628 146,048 144,454 154,097 Lessons & Group Services - - - - - - - - - - - 13,350 - Food & Beverage 8,569 7,784 8,471 9,529 12,831 12,235 9,909 13,001 15,485 18,454 16,288 132,556 256,095 140,500 TOTAL COST OF SALES:18,384 16,619 19,206 15,409 24,628 33,856 20,712 24,630 38,943 38,301 27,916 - 278,604 413,899 294,597 GROSS INCOME:221,491 230,798 243,617 215,792 312,962 306,316 313,187 395,349 448,122 419,977 335,210 - 3,442,821 3,090,649 3,652,153 EXPENDITURES: Personnel 93,134 127,987 105,158 119,665 114,075 136,159 128,485 115,287 122,195 114,720 118,153 1,295,018 1,687,606 1,440,000 Golf Operations 5,503 1,778 2,224 6,329 17,209 8,906 3,681 12,133 7,201 4,414 7,036 76,414 30,900 81,000 G&A 20,792 52,369 24,364 12,231 22,577 30,873 72,503 28,926 35,216 33,613 40,392 373,856 135,509 420,000 Maintenance 148,148 151,140 221,930 219,568 118,088 67,554 12,972 68,592 86,897 101,845 139,825 1,336,559 1,524,660 1,440,000 Sales & Marketing 1,284 2,415 2,083 3,515 1,691 910 6,580 1,172 1,105 3,993 1,514 26,262 42,100 27,000 Food & Beverage 18,238 17,444 16,756 17,386 24,209 23,907 23,370 20,536 23,339 24,758 25,641 235,584 241,362 250,000 Management Fees 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 110,000 120,000 120,000 Golf Cart Leases 13,041 13,041 13,041 13,041 18,092 13,041 13,041 13,041 13,041 13,041 13,041 148,501 156,488 156,492 Equipment Leases 19,277 19,280 - - - - - - - - - 38,557 138,304 38,557 Capital Equipment Purchases - - - - - - - - 53,873 - 53,873 - 53,873 Other Expenses 12,590 - - - - 450 6,248 - 20,930 8,728 7,668 56,614 3,000 72,250 Insurance - P&C 3,300 3,300 3,300 3,300 9,115 4,463 4,600 4,600 3,812 3,380 4,868 48,038 2,000 52,500 TOTAL EXPENDITURES:345,306 398,754 398,856 405,035 335,056 296,263 281,480 274,287 323,736 372,365 368,138 - 3,799,276 4,081,929 4,151,672 NET INCOME:(123,815) (167,956) (155,239) (189,243) (22,094) 10,053 31,707 121,062 124,386 47,612 (32,928) - (356,455) (991,280) (499,519) El Conquistador Cash Flow Statement ATTACHMENT D Consolidated Year-to-Date Financial Report through May 2021 FY 2020/2021 FY 20/21 Capital Leases/Left in Accounts Begin Bal.Transfer Out Thru May 2021 General Fund 20,899,548 44,951,275 44,951,275 1,996,139 24,354,799 9,133,687 765,590 36,250,215 29,600,608 Highway Fund 818,962 3,419,129 3,419,129 1,067,329 375,568 1,195,379 2,638,276 1,599,815 Seizure & Forfeiture - Justice/State 244,194 46,462 46,462 - 52,937 22,715 75,652 215,004 Community Center Fund 862,818 7,007,072 7,007,072 345,360 1,848,546 2,691,664 68,481 4,954,051 2,915,839 Municipal Debt Service Fund 169,721 122,194 1,076,200 1,198,394 6,438 1,215,445 1,221,883 146,232 Oracle Road Debt Service Fund 6,841 173,184 173,184 1,800 174,038 175,838 4,187 Water Resource System & Dev. Impact Fee Fund 16,545,872 3,752,019 3,752,019 40,500 2,423,981 298,074 2,762,555 17,535,336 Townwide Roadway Dev Impact Fee Fund 2,966,188 466,559 466,559 1,647,354 1,647,354 1,785,393 Parks & Recreation Impact Fee Fund 779,573 344,741 344,741 849,932 849,932 274,382 Police Impact Fee Fund 103,398 152,838 152,838 100,000 100,000 156,236 Capital Fund 2,410,736 812,377 1,180,762 1,993,139 1,887,000 1,887,000 2,516,875 PAG/RTA Fund 382,519 2,197,649 2,197,649 1,200,445 1,200,445 1,379,723 Water Utility 14,006,448 16,121,344 955,279 17,076,623 2,521 2,993,073 6,649,534 2,452,441 4,319,531 16,417,100 14,665,971 Stormwater Utility 628,026 1,369,230 1,369,230 710,430 284,796 51,743 1,046,969 950,287 Benefit Self Insurance Fund 2,088,823 3,527,153 3,527,153 2,941,694 2,941,694 2,674,282 Recreation In-Lieu Fee Fund 16,100 933 933 - 17,033 Total 62,929,767 84,464,159 3,212,241 87,676,400 2,444,020 30,974,177 22,178,618 12,565,061 - 6,007,088 74,168,964 76,437,203 Fund Revenue Other Fin Sources/ Tfrs Total In Debt Service Total OutPersonnelO&M Capital Contingency ATTACHMENT E General Fund Local Sales Tax Collections FY 2020/21 CATEGORY JULY AUG SEP OCT NOV DEC JAN FEB MAR APR MAY JUNE TOTAL Construction Sales Tax 643,435 471,705 517,101 483,032 384,176 321,621 305,338 241,562 254,568 450,343 409,924 4,482,805 Utility Sales Tax 267,771 337,260 350,040 360,019 286,715 249,286 245,891 271,681 241,698 227,632 221,458 3,059,451 Retail Sales Tax 647,068 579,089 560,008 613,570 607,315 709,153 889,306 606,222 620,243 748,368 700,138 7,280,479 Bed Tax 42,564 33,546 32,879 38,003 170,718 105,673 36,242 40,721 99,686 148,989 144,442 893,463 Restaurant & Bar Sales Tax 127,814 114,578 118,223 130,147 158,913 137,151 142,356 130,977 154,257 183,628 167,142 1,565,186 All Other Local Sales Tax *117,419 174,520 141,653 120,588 200,416 200,756 183,337 164,894 171,734 218,085 193,522 1,886,924 TOTAL 1,846,071$ 1,710,698$ 1,719,904$ 1,745,360$ 1,808,253$ 1,723,640$ 1,802,470$ 1,456,056$ 1,542,186$ 1,977,045$ 1,836,626$ 19,168,309$ FY 2019/20 CATEGORY JULY AUG SEP OCT NOV DEC JAN FEB MAR APR MAY JUNE TOTAL Construction Sales Tax 517,637 462,244 615,858 617,534 412,787 459,531 281,257 380,036 315,236 504,767 492,156 511,642 5,570,685 Utility Sales Tax 234,537 311,362 320,239 325,272 244,544 210,285 218,262 264,950 224,019 198,472 192,478 226,165 2,970,585 Retail Sales Tax 555,057 542,964 524,735 491,087 630,262 661,184 892,958 582,264 553,726 630,299 560,570 634,962 7,260,068 Bed Tax 54,830 91,322 99,278 104,342 120,624 123,846 109,383 142,745 100,338 51,680 14,780 21,154 1,034,323 Restaurant & Bar Sales Tax 142,433 139,049 154,388 151,118 150,996 176,520 173,479 175,764 138,125 129,206 93,589 119,171 1,743,839 All Other Local Sales Tax *46,762 59,797 66,191 63,774 119,804 155,857 181,405 158,895 123,624 111,669 101,265 108,652 1,297,696 TOTAL 1,551,256$ 1,606,738$ 1,780,689$ 1,753,127$ 1,679,017$ 1,787,223$ 1,856,744$ 1,704,654$ 1,455,069$ 1,626,093$ 1,454,838$ 1,621,747$ 19,877,196$ * Note: Does not include cable franchise fees or sales tax audit revenues ATTACHMENT F General Fund State Shared Revenues FY 2020/21 CATEGORY JULY AUG SEP OCT NOV DEC JAN FEB MAR APR MAY JUNE TOTAL State Shared Income Tax 548,361 548,361 548,361 548,361 548,361 548,361 548,361 548,361 548,361 548,361 548,361 6,031,971 State Shared Sales Tax 243,577 416,638 351,744 490,371 615,415 523,608 454,947 376,182 433,435 572,504 533,020 5,011,441 County Auto Lieu 98,728 256,745 217,528 201,958 162,796 190,665 190,824 175,212 182,116 216,303 104,863 1,997,738 TOTAL 890,666$ 1,221,744$ 1,117,633$ 1,240,690$ 1,326,572$ 1,262,634$ 1,194,132$ 1,099,755$ 1,163,912$ 1,337,168$ 1,186,244$ 13,041,150$ FY 2019/20 CATEGORY JULY AUG SEP OCT NOV DEC JAN FEB MAR APR MAY JUNE TOTAL State Shared Income Tax 489,186 489,186 489,186 489,186 489,186 489,186 489,186 489,186 489,186 489,186 489,186 489,186 5,870,232 State Shared Sales Tax 367,929 418,577 314,216 381,361 447,490 322,597 408,444 563,756 324,864 540,907 349,280 255,070 4,694,491 County Auto Lieu 89,556 184,257 174,793 173,529 183,209 157,268 177,671 183,502 159,026 80,587 138,405 371,622 2,073,425 TOTAL 946,671$ 1,092,020$ 978,195$ 1,044,076$ 1,119,885$ 969,051$ 1,075,301$ 1,236,444$ 973,076$ 1,110,680$ 976,871$ 1,115,878$ 12,638,148$    Town Council Regular Session 1. Meeting Date:07/07/2021   Proclamation - Child Support Awareness Month Subject Proclamation - Child Support Awareness Month Summary Attachments Proclamation     Town Council Regular Session 2. Meeting Date:07/07/2021   Proclamation - Drowning Impact Awareness Month Subject Proclamation - Drowning Impact Awareness Month Summary Attachments Proclamation     Town Council Regular Session A. Meeting Date:07/07/2021   Requested by: Mike Standish Submitted By:Michelle Stine, Town Clerk's Office Department:Town Clerk's Office SUBJECT: Minutes - June 16, 2021 RECOMMENDATION: Staff recommends approval. EXECUTIVE SUMMARY: N/A BACKGROUND OR DETAILED INFORMATION: N/A FISCAL IMPACT: N/A SUGGESTED MOTION: I MOVE to approve (approve with the following changes) the June 16, 2021, minutes. Attachments 6-16-21 Draft Minutes  D R A F T   MINUTES ORO VALLEY TOWN COUNCIL REGULAR, SPECIAL AND STUDY SESSION JUNE 16, 2021 ONLINE ZOOM MEETING            REGULAR SESSION AT OR AFTER 6:00 PM   CALL TO ORDER    Mayor Winfield called the meeting to order at 6:00 p.m.   ROLL CALL Present: Joseph C. Winfield, Mayor Tim Bohen, Councilmember Harry Greene, Councilmember Joyce Jones-Ivey, Councilmember Steve Solomon, Councilmember Absent:Melanie Barrett, Vice-Mayor Josh Nicolson, Councilmember PLEDGE OF ALLEGIANCE    Councilmember Nicolson joined the meeting. Councilmember Bohen led the audience in the Pledge of Allegiance.   UPCOMING MEETING ANNOUNCEMENTS    Town Clerk Mike Standish announced the upcoming Town meetings.   COUNCIL REPORTS    Councilmember Greene reported that the Stormwater Utility Division Manager had written a very good article regarding monsoon storms on the horizon. The article would be available on the Town's website.   6-16-21 Minutes, Regular, Special and Study Session  1         TOWN MANAGER'S REPORT    Town Manager Mary Jacobs reported the following information: Update regarding This is Oro Valley podcast Update on the Public Safety Pension Bonds interest rate Update regarding Oracle Road paving project Update regarding the Oro Valley Market Place multi-use path paving preservation project Status update regarding the former Vistoso Golf Course Status update regarding the fourth of July fireworks show   ORDER OF BUSINESS    Mayor Winfield reviewed the order of business and stated that the order would stand as posted. Mayor Winfield provided the guidelines for participation in the Town Council's Regular, Study and Special Session Zoom meeting.   INFORMATIONAL ITEMS   1.Town of Oro Valley FY 20/21 financial update through April 2021      CALL TO AUDIENCE    Oro Valley resident Dan McLaughlin spoke regarding the Vistoso Golf Course. Oro Valley resident Teresa Morrow spoke regarding the Vistoso Golf Course. Oro Valley resident John Medlen spoke regarding the Vistoso Golf Course. Councilmember Solomon requested a future agenda item be added to the July 7th Council meeting to consider action regarding the efforts to preserve the former Vistoso golf course. To facilitate this item, the Town Attorneys are to work with all involved parties to obtain any confidential releases necessary to allow for an open public discussion. Seconded by Councilmember Greene.   PRESENTATIONS    There were no presentation items.   ADJOURNMENT OF THE REGULAR SESSION    Mayor Winfield adjourned the Regular Session at 6:18 p.m.   6-16-21 Minutes, Regular, Special and Study Session  2         SPECIAL SESSION   CALL TO ORDER    Mayor Winfield called the Special Session to order at 6:19 p.m.   SPECIAL SESSION AGENDA   1.PUBLIC HEARING: RESOLUTION NO. (R)21-26, APPROVING THE ADOPTION OF THE FINAL BUDGET OF THE TOWN OF ORO VALLEY FOR FISCAL YEAR 2021/22, INCLUDING APPROVAL OF THE 10-YEAR CAPITAL IMPROVEMENT PROGRAM (CIP) FROM FY 2021/22 THROUGH FY 2030/31 AND THE FY 2021/22 SALARY CLASSIFICATION PLAN       Chief Financial Officer Dave Gephart provided an overview of Special Session item #1 and included the following: FY 2021/22 Final Budget Final Notes and Next Steps Mayor Winfield opened the public hearing. No comments were received. Mayor Winfield closed the public hearing. Discussion ensued amongst Council and staff regarding the adoption of the final budget of the Town of Oro Valley for Fiscal Year 2021/22.    Motion by Mayor Joseph C. Winfield, seconded by Councilmember Harry Greene to approve Resolution No. (R)21-26, approving the adoption of the final budget of the Town of Oro Valley for the fiscal year 2021/22, including the FY 2021/22 Salary Classification Plan, and further MOVE to approve the Town of Oro Valley 10-year Capital Improvement Program for FY 2021/22 through FY 2030/31.  Vote: 6 - 0 Carried   ADJOURNMENT OF THE SPECIAL SESSION    Mayor Winfield adjourned the Special Session at 6:35 p.m.   RECONVENE THE REGULAR SESSION    Mayor Winfield reconvened the Regular Session at 6:36 p.m.   CONSENT AGENDA   A.Minutes - June 2, 2021    6-16-21 Minutes, Regular, Special and Study Session  3    B.Reappointment of citizen member Richard Tracy to the Public Safety Personnel Retirement System (PSPRS) Local Board      C.Resolution No. (R)21-27, authorizing and approving an Intergovernmental Agreement (IGA) between the Town of Oro Valley and the Pima County Jail to provide officer coverage for video proceedings between the jail and the Court      D.Resolution No. (R)21-28, authorizing and approving an Intergovernmental Agreement (IGA) between the Town of Oro Valley and Pima County regarding payment for the incarceration of municipal prisoners      E.Request for approval of revised architecture for Development Area C of the La Posada Senior Living Facility, located on the southeast corner of Naranja Drive and 1st Avenue      F.Approval to move the September 1 and September 15, 2021 regular Council meeting dates to September 8 (2nd Wed.) and September 22 (4th Wed.), 2021, respectively      G.Resolution No. (R)21-29, approving an Intergovernmental Agreement (IGA) between the Town of Oro Valley and Pima County to provide funding for the Pima Early Education Program and directing Town Manager, Town Clerk, Town Legal Services Director, or their duly authorized officers and agents to take all steps necessary to carry out the purpose and intent of this resolution      H.Resolution No. (R)21-30, adopting the Public Safety Personnel Retirement System (PSPRS) pension funding policy and accepting the Town's share of assets and liabilities under the PSPRS actuarial valuation report       Motion by Mayor Joseph C. Winfield, seconded by Councilmember Josh Nicolson to approve Consent Agenda items (A) - (H).  Vote: 6 - 0 Carried   REGULAR AGENDA   1.PUBLIC HEARING: DISCUSSION AND POSSIBLE ACTION REGARDING AN APPLICATION FOR A SERIES 12 (RESTAURANT) LIQUOR LICENSE FOR TUK TUK THAI, LOCATED AT 12125 N. ORACLE ROAD, #169       Town Clerk Mike Standish presented item #1. Mayor Winfield opened the public hearing. No comments were received. Mayor Winfield closed the public hearing.    Motion by Councilmember Harry Greene, seconded by Councilmember Joyce Jones-Ivey to approve the issuance of a Series 12 Liquor License to the Arizona Department of Liquor Licenses and Control for Kevin Arnold Kramber for Tuk Tuk Thai, located at 12125 N. Oracle Road, #169.  Vote: 6 - 0 Carried   6-16-21 Minutes, Regular, Special and Study Session  4  2.PUBLIC HEARING: DISCUSSION AND POSSIBLE ACTION REGARDING AN APPLICATION FOR A SERIES 12 (RESTAURANT) LIQUOR LICENSE FOR SEIS KITCHEN, LOCATED AT 9740 N. ORACLE ROAD       Town Clerk Mike Standish presented item #2. Mayor Winfield opened the public hearing. No comments were received. Mayor Winfield closed the public hearing.    Motion by Councilmember Tim Bohen, seconded by Councilmember Steve Solomon to approve the issuance of a Series 12 Liquor License to the Arizona Department of Liquor Licenses and Control for Jake Jesus Munoz Jr. for Seis Kitchen, located at 9740 N. Oracle Road.  Vote: 6 - 0 Carried   3.DISCUSSION AND POSSIBLE ACTION REGARDING A PROPOSED ZONING CODE AMENDMENT TO CHAPTER 21 AND OTHER ASSOCIATED CHAPTERS OF THE ORO VALLEY ZONING CODE TO REVISE THE PLANNING DIVISION WORK PLAN ADOPTION PROCESS A. RESOLUTION NO. (R)21-31, DECLARING THE PROPOSED ZONING CODE AMENDMENTS TO CHAPTER 21 AND OTHER ASSOCIATED SECTIONS OF THE ORO VALLEY ZONING CODE IN ATTACHMENT 1 AND FILED WITH THE TOWN CLERK, A PUBLIC RECORD B. PUBLIC HEARING: ORDINANCE NO. (O)21-08, AMENDMENTS TO CHAPTER 21 AND OTHER ASSOCIATED CHAPTERS OF THE ORO VALLEY ZONING CODE       Motion by Mayor Joseph C. Winfield, seconded by Councilmember Harry Greene to approve Resolution No. (R)21-31, declaring the proposed code amendment to Chapter 21 and other associated sections of the code in Attachment 1 and filed with the Town Clerk, a public record.  Vote: 6 - 0 Carried    Town Manager Mary Jacobs provided an overview of item #3B. Mayor Winfield opened the public hearing. No comments were received. Mayor Winfield closed the public hearing. Discussion ensued amongst Council and staff regarding item #3B.    Motion by Councilmember Joyce Jones-Ivey, seconded by Councilmember Harry Greene to approve Ordinance No. (O)21-08, amending Chapter 21 and other associated chapters of the Oro Valley Zoning Code. Discussion continued amongst Council and staff regarding item #3B.    Motion by Councilmember Joyce Jones-Ivey, seconded by Councilmember Harry Greene to 6-16-21 Minutes, Regular, Special and Study Session  5   Motion by Councilmember Joyce Jones-Ivey, seconded by Councilmember Harry Greene to approve Ordinance No. (O)21-08, amending Chapter 21 and other associated chapters of the Oro Valley Zoning Code.  Vote: 6 - 0 Carried   FUTURE AGENDA ITEMS    No future agenda items were requested.   ADJOURNMENT OF THE REGULAR SESSION    Motion by Mayor Joseph C. Winfield, seconded by Councilmember Steve Solomon to adjourn the Regular session at 6:56 p.m.  Vote: 6 - 0 Carried   STUDY SESSION   CALL TO ORDER    Mayor Winfield called the Study Session to order at 6:57 p.m.   STUDY SESSION AGENDA   1.PRESENTATION AND POSSIBLE DISCUSSION REGARDING AMENDMENTS TO TOWN CODE CHAPTER 15, WATER CODE, PROHIBITING WATER WASTING, IMPOSE RESTRICTIONS DURING TOWN DECLARED POTABLE WATER SHORTAGES AND IMPOSE PENALTIES FOR FAILURE TO COMPLY WITH WATER CONSERVATION REQUIREMENTS       Water Utility Director Peter Abraham presented Study Session item #1 and included the following: Town Code - Genesis of Water Code Amendments Town Code - Proposed Changes Town Code - Examples of Water Wasting Town Code - Chapter 15, Proposed Water Code Amendments Discussion ensued amongst Council and staff regarding Study Session item #1.   ADJOURNMENT OF THE STUDY SESSION    Mayor Winfield adjourned the Study Session at 7:45 p.m.     _________________________________ 6-16-21 Minutes, Regular, Special and Study Session  6  _________________________________ Michelle Stine, MMC Deputy Town Clerk I hereby certify that the foregoing minutes are a true and correct copy of the minutes of the regular session of the Town of Oro Valley Council of Oro Valley, Arizona held on the 16th day of June 2021. I further certify that the meeting was duly called and held and that a quorum was present. __________________________________ Michael Standish, CMC Town Clerk 6-16-21 Minutes, Regular, Special and Study Session  7     Town Council Regular Session B. Meeting Date:07/07/2021   Submitted By:Mike Standish, Town Clerk's Office Department:Town Clerk's Office SUBJECT: Approval to cancel the July 21, 2021 regular Town Council meeting RECOMMENDATION: N/A EXECUTIVE SUMMARY: At their regular meeting on December 2, 2020, the Town Council approved the 2021 regular Town Council meeting schedule, which included a regular meeting scheduled for July 21, 2021. Currently, there is no business scheduled for the July 21 regular Town Council meeting. In the event that the Town Council would like to cancel the July 21 regular Town Council meeting, the Town Council must take formal action. BACKGROUND OR DETAILED INFORMATION: N/A FISCAL IMPACT: N/A SUGGESTED MOTION: I MOVE to cancel the July 21, 2021 regular Town Council meeting. Attachments No file(s) attached.    Town Council Regular Session C. Meeting Date:07/07/2021   Requested by: Bayer Vella, Community and Economic Development  Case Number: 2101224 SUBJECT: Request for approval of Conceptual Architecture for a pediatric dental building located in the Mercado at Cañada Hills commercial plaza in proximity to the northeast intersection of La Cañada Drive and Lambert Lane RECOMMENDATION: The Planning and Zoning Commission will consider this item on July 6, 2021. Please refer to the forthcoming Council communication for the Planning and Zoning Commission's recommendation. EXECUTIVE SUMMARY: The purpose of this request is to consider Conceptual Architecture for a new pediatric dentist office (see Attachment 1) in the Mercado at Cañada Hills Commercial Center (outlined in orange on the image to the right), located near the northeast corner of La Cañada Drive and Lambert Lane. The proposed dental office is a 4,673 sq.ft. single-story building located on 0.42 acres of the approximately 8.16 acre larger commercial area (see blue outlined and shaded area on the image to right). The focus of this item is only on the architectural design, as the Development Plan, including traffic circulation and all building sites, was previously approved in July 2005. The proposed Conceptual Architecture includes the following:  A contemporary southwest design consistent with the existing style in the Mercado at Cañada Hills Commercial Center Colors and materials including stucco finished walls, exposed block, and steel similar to the existing buildings on site that blend with the Sonoran Desert Fully articulated and cohesive design on all four sides of the building Staff finds the request is in conformance with the Town's Design Principles and applicable design standards.  BACKGROUND OR DETAILED INFORMATION: The Town Council's focus is on the architectural design only. The parameters for consideration are the building facade's compliance with the Town's Design Principles (Section 22.9.D.5) and applicable design standards (Addendum A, Section 2.2). Details analyzing the design for zoning conformance are provided below. Notable requirements are shown in italics, followed by staff commentary. Existing Site Conditions: Zoning: El Conquistador Country Club PAD, Area D (mixed residential and commercial) Lot size: 0.42 acres Approvals to Date: November 1983: El Conquistador Country Club PAD zoning approved by Town Council July 2005: Development Plan and Preliminary Plat for commercial plaza approved April 2006: Public Art for commercial plaza approved September 2007: Final Plat for commercial plaza approved May 2012: CSP and Conceptual Architecture for adjacent fuel lot approved December 2012: Minor Plat Amendment to adjust lot lines between fuel center and project site approved September 2020: Revised Sign Criteria for commercial plaza approved Below: Development Plan for Mercado at Cañada Hills Design Principles (Section 22.9.D.5) review: Section 22.9.D.5.b.i: Design: Building architectural design shall be appropriate for the climate and characteristics of the Sonoran Desert, including indigenous and traditional textures, colors, and shapes found in and around Oro Valley. All development shall maintain and strengthen the high quality of design exemplified in Oro Valley through project creativity and design excellence. The project is coherent and uniform with existing approved architectural designs in the commercial center. The center as a whole is appropriate for the climate and characteristics of the Sonoran Desert, and maintains and strengthens the high quality of design exemplified in Oro Valley. The proposed dental office uses similar colors and materials to the existing center, and creates a consistent experience throughout the plaza. Below: Existing structures within the Mercado at Cañada Hills commercial plaza. Below: Colored elevations showing the view from each compass direction. Section 22.9.D.5.b.ii: Scale, Height, and Mass: Building scale, height, and mass shall be consistent with the Town-approved intensity of the site, designated scenic corridors, and valued mountain views. Buildings shall be designed to respect the scale of adjoining areas and should mitigate the negative and functional impacts that arise from scale, bulk, and mass. The proposed building height of 26 feet is within the approved allowance per the El Conquistador Country Club PAD (which allows 38 feet) and is compatible with surrounding uses and structures in Mercado at Cañada Hills. The single story building mass is broken up with columns, shade awnings, and roofline variations including a tower, which mirrors other towers on the property. Section 22.9.D.5.b.iii: Facade Articulation: All building facades shall be fully articulated, including variation in building massing, roof planes, wall planes, and surface articulation. Architectural elements including, but not limited to, overhangs, trellises, projections, awnings, insets, material, and texture shall be used to create visual interest that contributes to a building's character. The proposed architecture includes a varied roofline, overhangs, and columns to provide fully articulated architecture and visual interest on all four sides. Furthermore, the project uses a number of materials including exposed block, metal, and stucco. Section 22.9.D.5.b.v: Screening: Building design and screening strategies shall be implemented to conceal the view of loading areas, refuse enclosures, mechanical equipment, appurtenance , and utilities from adjacent public streets and neighborhoods. Mechanical equipment is screened by parapets on the roof, and no new trash enclosure is proposed. The existing trash enclosure is screened to Town standards. Design Standards (Addendum A, Section 2.2) review:  The scale of development shall be appropriate to the land use type and promote human scale development - The project accomplishes this through color and material variations, as well as the use of exposed block at the entrance and overhangs for shade on windows along the north and south facades. 1. Variations in rooflines shall be used to add interest and reduce the scale of larger buildings - The roofline is varied through the use of columns and a tower featuring a sloped roof at the entrance. 2. Use of historic architectural styles or a contemporary interpretation is encouraged - Design is a contemporary style that utilizes materials and colors previously approved for other buildings in the commercial plaza. The stucco material, stone veneer and metal roof and shade awnings are all common in Oro Valley, creating a contemporary design reflective of the Sonoran Desert and vernacular of the region. 3. Visual impact of commercial buildings shall be moderated to reduce scale - The proposed building is relatively small, and the effect of other design elements such as varied facades, materials, colors, and rooflines breaks the structure into smaller portions. 4. Clearly articulated building entries and pedestrian elements - With a sloped roof over the entry and a glass wall lobby, the entrance is well articulated and defined. Pedestrian elements include shade awnings and pedestrian scale stone veneer at the entrance as well as on columns facing the sidewalk along the southern facade.  5. Public Participation: Public notice has been provided as follows:  Posting at Town Hall Posting on the Town's websites All affected HOAs Summary and Recommendation In summary, the proposed architecture (Attachment 1) meets the Design Principles and applicable design standards. The Planning and Zoning Commission will consider this item on July 6, 2021, and an updated Council communication will be provided. Given the planned Town Council recess in August, Town staff is accommodating the applicant to expeditiously move to the building permit stage. FISCAL IMPACT: N/A SUGGESTED MOTION: The Town Council may consider the following motions: I MOVE to APPROVE the pediatric dental Conceptual Architecture based on the finding it is in conformance with the Design Principles and design standards of the Oro Valley Zoning Code Revised. OR I MOVE to DENY the pediatric dental Conceptual Architecture based on the finding that ________________. Attachments Attachment 1 - Applicant Submittal  Addendum/Draft Minutes added 7-7-21  DAVIS PEDIATRIC DENTISTRYLOT 9AORO VALLEY, ARIZONAMERCADOScheme 5.1Dakota WheatSW 9023LRV 54Canyon ClaySW 6054LRV 13BaggueteSW 6123LRV 31CMU Color toMatch ExistingShopping Center DAVIS PEDIATRIC DENTISTRY Scheme 5.1 LOT 9A ORO VALLEY, ARIZONAMERCADO LOBBYHYG-1,2GASMECH.STORAGEO.M.CL.RECEPTIONWORKAREABREAKROOMT-1T-2T-3OFFICEF.R.JAN.STERILEPANOHYG-3,4HYG-5,6,7TODDLEROP-1T-4HYG.-8,9,10,11OP-2OP-3OP-4SVR.Scheme 5.2DAVIS PEDIATRIC DENTISTRYLOT 9AORO VALLEY, ARIZONAMERCADO DAVIS PEDIATRIC DENTISTRYLOT 9A ORO VALLEY, ARIZONAMERCADO Scheme 5.1 DAVIS PEDIATRIC DENTISTRYLOT 9A ORO VALLEY, ARIZONAMERCADO Scheme 5.1 ADDENDUM TO TOWN COUNCIL REGULAR SESSSION REPORT Meeting Date: July 7, 2021 Requested by: Bayer Vella, Planning Manager Case Number: 2101224 SUBJECT: Addendum to Town Council Meeting Consent Item C Report, Request for approval of Conceptual Architecture for a pediatric dental building located in the Mercado at Cañada Hills commercial plaza in proximity to the northeast intersection of La Cañada Drive and Lambert Lane UPDATED RECOMMENDATION: During their Regular Session on July 6, 2021 the Planning and Zoning Commission voted to recommend approval of Conceptual Architecture for a dental office at Mercado at Cañada Hills, northeast of the La Cañada and Lambert intersection, based on the finding that it meets Town design principles and design standards. There were no conditions associated with the recommendation. Draft minutes from the July 6, 2021 Planning and Zoning Commission Regular Session are attached. ATTACHMENTS Draft Minutes for Planning & Zoning Commission 7-6-21 meeting D R A F T MINUTES ORO VALLEY PLANNING AND ZONING COMMISSION REGULAR SESSION MEETING HELD VIA ZOOM            REGULAR SESSION AT OR AFTER 6:00 PM   CALL TO ORDER Vice Chair Herrington called the meeting to order at 6:00 p.m.   ROLL CALL Present: Hal Bergsma, Commissioner Robert Henderson, Commissioner Ellen Hong, Commissioner Skeet Posey, Commissioner Daniel Sturmon, Commissioner Jacob Herrington, Vice Chair Absent: Celeste Gambill, Chair Staff Present:Bayer Vella, Planning Manager Joe Andrews, Chief Civil Deputy Attorney Attendees: Melanie Barrett, Town Council Liaison PLEDGE OF ALLEGIANCE Vice Chair Herrington recited the Pledge of Allegiance to the Commission and audience.   CALL TO AUDIENCE There were no speaker requests.   COUNCIL LIAISON COMMENTS Council Liaison Melanie Barrett provided an update on recent and upcoming Town Council agenda items as related to Planning.   REGULAR SESSION AGENDA   1.REVIEW AND APPROVAL OF THE JUNE 1, 2021 REGULAR SESSION MEETING MINUTES       Motion by Commissioner Daniel Sturmon, seconded by Commissioner Hal Bergsma to approve the June 1, 2021 regular session meeting minutes.    A roll call vote was taken: Commissioner Bergsma: Aye Commissioner Henderson: Aye Commissioner Hong: Aye Commissioner Posey: Aye Commissioner Sturmon: Aye Vice Chair Herrington: Aye    Vote: 6 - 0 Carried   2.DISCUSSION AND POSSIBLE ACTION ON A CONCEPTUAL ARCHITECTURE FOR A PEDIATRIC DENTAL BUILDING LOCATED IN THE MERCADO AT CAÑADA HILLS COMMERCIAL PLAZA, IN PROXIMITY TO THE NORTHEAST INTERSECTION OF LA CAÑADA DRIVE AND LAMBERT LANE       Planner Kyle Packer provided a presentation that included the following: - Purpose - Location and site design - Design Principles and Standards - design elements and facade articulation - Design Principles and Standards - scale, height, mass - Design Standards - colors and materials - Design Standards - compatibility - Summary and recommendation Discussion ensued among the Commission, staff and applicant, Architect Evan Eglin.    Motion by Commissioner Hal Bergsma, seconded by Commissioner Skeet Posey to recommend approval of the pediatric dental Conceptual Architecture based on the finding it is in conformance with the Design Principles and design standards of the Oro Valley Zoning Code Revised.    A roll call vote was taken: Commissioner Bergsma: Aye Commissioner Henderson: Aye Commissioner Hong: Aye Commissioner Posey: Aye Commissioner Sturmon: Aye Vice Chair Herrington: Aye    Vote: 6 - 0 Carried   PLANNING UPDATE (INFORMATIONAL ONLY) Planning Manager Bayer Vella provide updates on the August meeting agenda and upcoming neighborhood meetings for the Oro Valley Village Center.   ADJOURNMENT    Motion by Commissioner Daniel Sturmon, seconded by Commissioner Skeet Posey to adjourn the meeting.    Vice Chair Herrington adjourned the meeting at 6:37 p.m.     I hereby certify that the foregoing minutes are a true and correct copy of the minutes of the regular session of the Town of Oro Valley Planning and Zoning Commission of Oro Valley, Arizona held on the 6th day of July, 2021. I further certify that the meeting was duly called and held and that a quorum was present. ___________________________ Jeanna Ancona Senior Office Specialist    Town Council Regular Session D. Meeting Date:07/07/2021   Requested by: Bayer Vella, Community and Economic Development  Submitted By:Hannah Oden, Community and Economic Development Case Number: N/A SUBJECT: Item A: Resolution No. (R)21-32 (Attachment 1), authorizing and approving the dedication of a public sewer easement from the Town of Oro Valley to Pima County Item B: Resolution No. (R)21-33 (Attachment 2), authorizing and approving the dedication of a private sewer easement from the Town of Oro Valley to the Tranquilo at Rancho Vistoso Homeowners' Association RECOMMENDATION: Staff recommends approval.  EXECUTIVE SUMMARY: This item involves two separate sewer easement dedications located on Town-owned property at the Big Wash Trailhead shown on the map to the right. Item A is for the Town to dedicate a public sewer easement to Pima County for the construction, installation, maintenance, repair, operation, replacement and removal of sewer lines, manholes, and associated facilities. Item B is for the dedication of a private sewer easement to the Tranquilo at Rancho Vistoso Homeowners' Association (HOA) for the installation, maintenance, and improvements associated with sewer infrastructure.  The dedication of these easements will enable a sewer connection to the proposed subdivision and the future public restrooms at the Big Wash Trailhead. The cost of all sewer infrastructure will be borne by the developer (Pulte Homes) with maintenance by either the HOA (for the private sewer easement) or Pima County (for the public sewer easement). There will be no cost to the Town.  BACKGROUND OR DETAILED INFORMATION: The sewer easements will serve both the future Tranquilo at Rancho Vistoso residential subdivision and the future restroom facilities at the Big Wash Trailhead at no cost to the Town. More specifically, the proposed dedications will allow for the installation of a new public manhole adjacent to Rancho Vistoso Blvd. and associated sewer infrastructure to allow a connection into an existing public sewer main beneath Rancho Vistoso Blvd. which is owned, operated and maintained by the Pima County Regional Wastewater Reclamation Pima County Regional Wastewater Reclamation Department.  In order for the associated infrastructure to be installed, the Town must dedicate a public sewer easement to Pima County (Item A, Attachment 1) and a private sewer easement to the Tranquilo at Rancho Vistoso HOA (Item B, Attachment 2) as the proposed easements are located on Town owned property at the Big Wash Trailhead. FISCAL IMPACT: The cost of all sewer infrastructure will be borne by the developer (Pulte Homes) with maintenance by either the HOA or Pima County. There will be no cost to the Town.  SUGGESTED MOTION: Item A I MOVE to APPROVE Resolution No. (R) 21-32, authorizing and approving a public sewer easement dedication to Pima County. Item B I MOVE to APPROVE Resolution No. (R) 21-33, authorizing and approving a private sewer easement dedication to the Tranquilo at Rancho Vistoso Homeowners' Association. Attachments Attachment 1: (R)21-32 Public Sewer Easement Dedication  Attachment 2: (R)21-33 Private Sewer Easement Dedication  RESOLUTION NO. (R)21-32 A RESOLUTION OF THE MAYOR AND COUNCIL OF THE TOWN OF ORO VALLEY, ARIZONA, AUTHORIZING AND APPROVING A SEWER EASEMENT BETWEEN THE TOWN OF ORO VALLEY, AND PIMA COUNTY WH EREAS, the Town of Oro Valley owns the land more specifically described in the Public Sewer Easement attached hereto as Exhibit “A”; and WHEREAS, the Town of Oro Valley desires to gr ant a permanent easement to Pima County for the construction, installation, maintenance, repair, operation, replacement and removal of sewer lines, manholes and appurtenances for a public sewer; and WHEREAS, it is in the best interest of the Town to grant the Sewer Easement, attached hereto as Exhibit “A”, to Pima County for a public sewer NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND TOWN COUNCIL OF THE TOWN OF ORO VALLEY, ARIZONA AS FOLLOWS: SECTION 1. The Sewer Easement between the Town of Oro Valley and the Pima County attached hereto as Exhibit “A” is hereby authorized and approved. SECTION 2. All Oro Valley resolutions or motions and parts of resolutions or motions of the Council in conflict with the p rovision of this Resolution are hereby repealed. SECTION 3. If any section, subsection, sentence, clause, phrase or portion of this Resolution or the Easement Agreement attached hereto as Exhibit “A” is for any reason held to be invalid or unconstitutional by the decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions thereof. PASSED AND ADOPTED by the Mayor and Town Council of the Town of Oro Valley, Arizona, this 7th day of July, 2021. TOWN OF ORO VALLEY, ARIZONA _______________________________ Joseph C. Winfield, Mayor ATTEST: APPROVED AS TO FORM : Michael Standish, Town Clerk Tobin Sidles, Legal Services Director Date: Date: 2 EXHIBIT “A” 3 4 5 RESOLUTION NO. (R)21-33 A RESOLUTION OF THE MAYOR AND COUNCIL OF THE TOWN OF ORO VALLEY, ARIZONA, AUTHORIZING AND APPROVING A SEWER EASEMENT BETWEEN THE TOWN OF ORO VALLEY, AND THE TRANQUILLO AT RANCHO VISTOSO HOMEOWNERS’ ASSOCIATION WH EREAS, the Town of Oro Valley owns the land more specifically described in the Private Sewer Easement attached hereto as Exhibit “A”; and WHEREAS, the Town of Oro Valley desires to gr ant a permanent easement to the Tranq uillo at Rancho Vistoso Homeowners’ Association for a private sewer, together with access for the installation, maintenance and improvements of utilities and appurtenances in, over, under and across the real property; and WHEREAS, it is in the best interest of the Town to grant the Easement, attached hereto as Exhibit “A”, to the Tranquillo at Rancho Vistoso Homeowner’s Association for a private sewer NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND TOWN COUNCIL OF THE TOWN OF ORO VALLEY, ARIZONA AS FOLLOWS: SECTION 1. The Sewer Easement between the Town of Oro Valley and the Tranquillo at Rancho Vistoso Homeowners’ Association attached hereto as Exhibit “A” is hereby authorized and approved. SECTION 2. All Oro Valley resolutions or motions and parts of resolutions or motions of the Council in conflict with the provision of this Resolution are hereby repealed. SECTION 3. If any section, subsection, sentence, clause, phrase or portion of this Resolution or the Easement Agreement attached hereto as Exhibit “A” is for any reason held to be invalid or unconstitutional by the decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions thereof. PASSED AND ADOPTED by the Mayor and Town Council of the Town of Oro Valley, Arizona, this 7th day of July, 2021. 2 TOWN OF ORO VALLEY, ARIZONA _______________________________ Joseph C. Winfield, Mayor ATTEST: APPROVED AS TO FORM : Michael Standish, Town Clerk Tobin Sidles, Legal Services Director Date: Date: 3 EXHIBIT “A” 4 5 6    Town Council Regular Session E. Meeting Date:07/07/2021   Requested by: Bayer Vella, Community and Economic Development  Submitted By:Hannah Oden, Community and Economic Development Case Number: N/A SUBJECT: Resolution No. (R)21-34, authorizing and approving the dedication of an easement for the access, maintenance, and construction of soil cement bank protection from the Town of Oro Valley to Pima County RECOMMENDATION: Staff recommends approval. EXECUTIVE SUMMARY: This item is for the dedication of an easement for the access, maintenance, and construction of soil cement bank protection from the Town of Oro Valley to Pima County (Attachment 1). The proposed easement is located on Town owned property at the Big Wash Trailhead as shown on the map to the right. Construction of the new bank protection will protect the existing trailhead from flooding and erosion. The developer, Pulte Homes, will be responsible for the construction of the bank protection and all associated costs. Once complete, the Pima County Flood Control District will be responsible for all maintenance.  BACKGROUND OR DETAILED INFORMATION: New soil cement bank protection along the eastern edge of the Town's Big Wash Trailhead property is to be constructed by the developer (Pulte) of the Tranquilo at Rancho Vistoso residential subdivision. Key Considerations:  The developer is required to provide improvements to the trailhead as a condition of the rezoning approval for the Tranquilo property. 1. The soil cement will protect the Big Wash Trailhead from the effects of flooding and erosion.  2. The soil cement bank protection will include a 10-foot wide multi-use path and improved access into the wash adjacent to the trailhead. All construction costs will be borne by the 3. developer. Once constructed, the ownership and maintenance of the bank protection improvements will be by the Pima County Flood Control District.  4. FISCAL IMPACT: The developer, Pulte Homes, will be responsible for the construction of the bank protection and all associated costs. Once complete, the Pima County Flood Control District will be responsible for all maintenance. There will be no cost to the Town. SUGGESTED MOTION: I MOVE to APPROVE Resolution No. (R)21-34, authorizing and approving an easement for the access, maintenance, and construction of soil cement bank protection to Pima County. Attachments Attachment 1: (R)21-34 for bank protection easement dedication  RESOLUTION NO. (R)21-34 A RESOLUTION OF THE MAYOR AND COUNCIL OF THE TOWN OF ORO VALLEY, ARIZONA, AUTHORIZING AND APPROVING AN EASEMENT BETWEEN THE TOWN OF ORO VALLEY, AND PIMA COUNTY FOR THE ACCESS, MAINTENANCE, AND CONSTRUCTION FOR SOIL CEMEN T BANK PROTECTION WH EREAS, the Town of Oro Valley owns the land more specifically described in the Access, Maintenance and Construction Easement attached hereto as Exhibit “A”; and WHEREAS, the Town of Oro Valley desires to gr ant a permanent easement to Pima County for the access, maintenance, and construction for soil cement bank protection; and WHEREAS, it is in the best interest of the Town to grant the Access, Maintenance and Construction Easement, attached hereto as Exhibit “A”, to Pima County for access, maintenance, and construction for soil cement bank protection. NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND TOWN COUNCIL OF THE TOWN OF ORO VALLEY, ARIZONA AS FOLLOWS: SECTION 1. The Access, Maintenance and Construction Easement between the Town of Oro Valley and the Pima County attached hereto as Exhibit “A” is hereby authorized and approved. SECTION 2. All Oro Valley resolutions or motions and parts of resolutions or motions of the Council in conflict with the p rovision of this Resolution are hereby repealed. SECTION 3. If any section, subsection, sentence, clause, phrase or portion of this Resolution or the Easement Agreement attached hereto as Exhibit “A” is for any reason held to be invalid or unconstitutional by the decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions thereof. PASSED AND ADOPTED by the Mayor and Town Council of the Town of Oro Valley, Arizona, this 7th day of July, 2021. 2 TOWN OF ORO VALLEY, ARIZONA _______________________________ Joseph C. Winfield, Mayor ATTEST: APPROVED AS TO FORM : Michael Standish, Town Clerk Tobin Sidles, Legal Services Director Date: Date: 3 EXHIBIT “A” 4 5    Town Council Regular Session F. Meeting Date:07/07/2021   Requested by: Kara Riley Submitted By:Catherine Hendrix, Police Department Department:Police Department SUBJECT: Resolution No. (R)21-35, authorizing and approving an Intergovernmental Agreement between Pima County and the Town of Oro Valley for the joint formation and operation of specialized law enforcement teams among public agencies within Pima County, superseding and replacing the existing SWAT IGA RECOMMENDATION: Staff recommends approval. EXECUTIVE SUMMARY: This Intergovernmental Agreement (IGA) is among public agencies located in Pima County, Arizona, on behalf of their respective law enforcement agencies. The purpose of this IGA is to set forth the terms and conditions under which the Parties, through their law enforcement agencies, will collectively form and operate the Regional Teams such as SWAT Team, Bomb Squad, Mobile Field Force Team and Critical Incident Team. BACKGROUND OR DETAILED INFORMATION: In the past, the Pima Regional Teams had separate IGA's for each team and different terms. All the parties have agreed to combine the Regional Team's IGA's in addition to adding the Pima Regional Critical Incident Team. This will create efficiencies for all agencies involved. The Pima Regional Critical Incident Team may respond to officer-involved shootings, in-custody deaths or critical incidents when requested by a participating agency, which will enhance the accountability, transparency, communication and increase trust to improve the legitimacy of independent investigations. FISCAL IMPACT: Each Party will fund the procurement of all necessary equipment for its members of the Unit and shall bear the costs of its employees incurred in the implementation of this IGA, including wages (including overtime), health insurance, benefits and workers’ compensation. Sufficient capacity for these costs are included in the upcoming FY 2021/22 budget. SUGGESTED MOTION: I MOVE to APPROVE Resolution No. (R)21-35, authorizing and approving an Intergovernmental Agreement between Pima County and the Town of Oro Valley for the joint formation and operation of specialized law enforcement teams among public agencies within Pima County, superseding and replacing the existing SWAT IGA. Attachments (R)21-35 Pima Regional Teams  Pima Regional Teams IGA  RESOLUTION NO. (R)21-35 A RESOLUTION OF THE MAYOR AND COUNCIL OF THE TOWN OF ORO VALLEY, ARIZONA, AUTHORIZING AND APPROVING AN INTERGOVERNMENTAL AGREEMENT BETWEEN PIMA COUNTY AND THE TOWN OF ORO VALLEY FOR THE JOINT FORMATION AND OPERATION OF SPECIALIZED LAW ENFORCEMENT TEAM S AMONG PUBLIC AGENCIES WITHIN PIMA COUNTY, SUPER SEDING AND REPLACING THE EXISTING SWAT IGA WHEREAS, pursuant to A.R.S. § 11-952, the Town is authorized to enter into or renew agreements for joint and cooperative action with other public agencies; and WHEREAS, the Town is authorized to establish and maintain the Oro Valley Police Department, pursuant to A.R.S. § 9-240 (B)(12); and WHEREAS, the Town and several public agencies previously entered into an agreement to form and operate the Pima Regional Special Weapons and Tactics (“SWAT”) Team; and WHEREAS, operation of the Pima Regional SWAT Team has demonstrated the value of a regional team with specialized training, skills and capabilities to maintain and enhance the ability of law enforcement agencies to respond to certain situations; and WHEREAS, application of the regional team concept to other areas of law enforcement requiring specialized training, skills and capabilities will further maintain and enhance the ability of the Town and public agencies, through their various law enforcement agencies, to respond to situations in which use of these regional teams is appropriate; and WHEREAS, the Town desires to enter into an Intergovernmental Agreement (IGA) with Pima County to form and operate specialized law enforcement teams among public agencies within Pima County as described in the IGA attached hereto as Exhibit “A”; and WHEREAS, the IGA attached hereto as Exhibit “A” will supersede and replace the aforementioned Pima Regional SWAT team agreement, which shall terminate; and WHEREAS, it is in the best interest of the Town to enter into the IGA, attached hereto as Exhibit “A” and incorporated herein by this reference, to provide for the health, safety and welfare of the residents in the Town of Oro Valley. NOW, THEREFORE, BE IT RESOLVED by the Mayor and Town Council of the Town of Oro Valley, Arizona, that: SECTION 1. The IGA between the Town of Oro Valley and Pima County attached hereto as Exhibit “A”, for the fo rmation and operation of specialized law enforcement teams among public agencies within Pima County is hereby approved. SECTION 2. The previously entered Pima Regional SWAT team agreement is hereby superseded and replaced with the IGA attached hereto as Exhibit “A”. SECTION 3. The Mayor, the Chief of Police and any other administrative officials are hereby authorized to take such steps as necessary to execute and implement the terms of the Agreement. SECTION 4. If any section, subsection, sentence, clause, phrase, or portion of the resolution or any part of the IGA between the Town of Oro Valley and Pima County, attached hereto as Exhibit “A”, is for any reason held to be invalid or unconstitutional by the decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions thereof. SECTION 5. All Oro Valley resolutions, or motions and parts of resolutions or motions of the Council in conflict with the provisions of this Resolution are hereby repealed. PASSED AND AD OPTED by the Mayor and Town Council of the Town of Oro Valley, Arizona, this 7th day of July, 2021. TOWN OF ORO VALLEY _______________________________ Joseph C. Winfield, Mayor ATTEST: APPROVED AS TO FORM: Michael Standish, Town Clerk Tobin Sidles, Legal Services Director Date: Date: EXHIBIT “A” 1 INTERGOVERNMENTAL AGREEMENT REGARDING JOINT FORMATION AND OPERATION OF SPECIALIZED LAW ENFORCEMENT TEAMS AMONG PUBLIC AGENCIES WITHIN PIMA COUNTY This Intergovernmental Agreement (“IGA”) is entered into by and among public agencies located in Pima County, Arizona, on behalf of their respective law enforcement agencies (referred to collectively as the “Parties”). Any public agency, as that term is defined in Arizona Revised Statutes § 11 -951, that executes this IGA in counterpart form shall be a Party as of the date of execution. Recitals A. WHEREAS public agencies may contract for services and enter into agreements with one another for joint or cooperative action pursuant to A.R.S. § 11-951, et seq.; and B. WHEREAS the Pascua Yaqui Tribe may contract for services and enter into agreements for joint or cooperative action pursuant to Article VI, Section 1(a) of the Constitution of the Pascua Yaqui Tribe; and C. WHEREAS several public agencies previously entered into an agreement to form and operate the Pima Regional Special Weapons and Tactics (“SWAT”) Team; and D. WHEREAS operation of the Pima Regional SWAT team has demonstrated the value of a regional team with specialized training, skills and capabilities to maintain and enhance the ability of law enforcement agencies to respond to certain situations; and E. WHEREAS application of the regional team concept to other areas of law enforcement requiring specialized training, skills and capabilities will further maintain and enhance the ability of the Parties, through their various law enforcement agencies, to respond to situatio ns in which use of these regional teams is appropriate; and F. WHEREAS upon execution this IGA shall supersede and replace the aforementioned Pima Regional SWAT agreement, which shall terminate. NOW, THEREFORE, the Parties, pursuant to the above, and in consideration of the matters and things hereinafter set forth, do mutually agree as follows: 2 Agreement I. Purpose The purpose of this IGA is to set forth the terms and conditions under which the Parties, through their law enforcement agencies, will collectively form and operate the Regional Teams described in Section II below. II. Scope The Parties will collectively form and operate the following: Pima Regional SWAT Team, the mission of which is to respond when requested by a Party or other law enforcement entity to potentially life -threatening situations and/or incidents requiring specialized skills, tactics and/or equipment, and to secure, isolate and resolve situations in a manner consistent with escalation of force theories and the preservation of life. Pima Regional Bomb Squad, the mission of which is to respond when requested by a Party or other law enforcement entity to any of the following: Suspected explosive devices or suspicious packages believed to be hazardous, explosive recoveries, protective sweeps for dignitaries or special events by Explosive Detection Canine teams, post-blast investigations, or other situations requiring specialized training or equipment related to explosive hazards. Pima Regional Mobile Field Force Team (“MFF”), the mission of which is to respond when requested by a Party or other law enforcement entity to any of the following: civil disobedience, protest, civil disturbance, riot, or sports riot, which requires the response of a cohesive unilateral law enforcement response to mitigate protestor actions during a civil disorder event and to secure, isolate and resolve situations in a manner consistent with escalation of force theories and the preservation of life. Pima Regional Critical Incident Team, the mission of which is to respond to officer-involved shootings, in-custody deaths or critical incidents when requested by a Party to enhance accountability, transparency, communication and increase trust to improve the legitimacy of independent investigations. The Parties may choose particular Regional Teams in which to participate. The Parties are not obligated to participate in all Regional Teams. The Chief Executive Officers of the respective law-enforcement agencies shall provide written notice to the others of which Regional Teams they wish to join. The Parties, through their respective law enforcement agencies, shall develop Standard Operating Procedures and Policies manuals (the “Manuals”) specific to each of the regional teams formed under this IGA. The Parties shall work together in good faith through their law enforcement agencies to form and operate the Pima 3 Regional SWAT Team, the Pima Regional Bomb Squad, the Pima Regional MFF Team and the Pima Regional Critical Incident Team as set forth in each respective Manual, which are incorporated herein by this reference. Additional public agencies may be permitted to join in this IGA upon the unanimous consent of all the then Parties, and execution of a resolution and a counterpart signature page to this IGA by the public agency’s governing body. Any new agency so admitted will be deemed to be a “Party” hereunder. All individuals selected to participate as members of any Regional Team, w ill continue to be employees of the Parties with which they are associated. III. Financing Each Party will fund the procurement of all necessary equipment for its members of the Unit. Grant funds obtained for the Pima Regional SWAT Team, the Pima Regional Bomb Squad, the Pima Regional MFF Team and the Pima Regional Critical Incident Team shall be used fo r the benefit of all Parties. In the event a Part y withdraws from a Regional Team pursuant to Section V(A) or (B) of this IGA, the Party shall not be entitled to any share of grant funds existing at the date of withdrawal, and all such funds shall continue to be used for the benefit of the remaining Parties. Each Party shall bear the costs of its employees incurred in the implementation of this IGA, including wages (including overtime), health insurance, benefits and workers’ compensation. IV. Term The init ial term of this IGA shall be five years beginning July 1, 2021. The parties shall have the option to extend the term of this IGA for two additional five (5) year periods or any portion thereof. Any modification or term extension of this IGA shall be by formal written amendment executed by the Parties. V. Termination A. Withdrawal without Cause. A Party may terminate its participation in any of the Regional Teams with no less than sixty (60) calendar day written notice to the other Parties. If a Party terminates as a result of a failure of its governing body to budget and appropriate sufficient funds to support that Party’s participation, and a sixty calendar day notice is not possible, it shall give the other Parties written notice of the non-appropriation within ten (10) days after the final budget is adopted by its governing body. B. Withdrawal for Cause. A Party may withdraw immediately in the event that a Regional Team, for reasons other than the actions or directions of that Party’s Team members, materially breaches the standard operating procedures in a manner that exposes that Party to significant additional legal liability, or the 4 Team or one or more other Parties materially breaches this IGA. Because each Party understands and acknowledges that its withdrawal will cause significant disruption to the operation of the Regional Teams, it shall not exercise this termination option unless the breach or exposure is significant, material, and of an on-going nature. C. Termination in Event of Pima County Withdrawal. In the event that Pima County terminates its participation in this IGA, and after the duties set forth in subsection D below, this IGA shall terminate as to all Parties. The withdrawal of any Party other than Pima County shall not affect the validity and continuation of the IGA as to the other Parties. D. Shutting Down Operations. Upon expiration of this IGA, or in the event of an earlier termination as to all the Parties, whether by agreement of the Parties or as a result of Pima County’s withdrawal, the remaining Parties hereto shall cooperate in good faith to close the operation of the Regional Teams in a manner that is safe and fiscally sound. The Parties at the time of the termination or expiration shall continue to be liable in their proportionate shares on any long-term financial obligation of the Regional Teams, such as the payment of rent, provided that such obligations were authorized by them under this IGA or any supplement. E. Disposition of Equipment . In the event a Party terminates its participation or withdraws from the Team pursuant to Section V (A) or (B), any uniforms purchased through grant funding and assigned to members of the terminating or withdrawing Party shall remain the property of the Jurisdiction. All equipment purchased through grant funding and assigned as Team equipment will remain with the remaining Parties. A terminating or withdrawing Party shall retain any personal equipment purchased for its members by the Party. In the event this IGA is terminated pursuant to Section V(C), all equipment purchased for the Team through grant funding shall be d ivided proportionally among the Parties. VI. Insurance Each Party shall obtain and maintain at its own expense, during the entire term of such Party’s participation in this IGA, the following type(s) and amounts of insurance: a) Commercial General Liability in the amount of $2,000,000.00 combined, single limit Bodily Injury and Property damage; b) Commercial or Business automobile liability coverage for owned, non- owned and hired vehicles used in the p erformance of this IGA with limits in the amount of $1,000,000.00 combined single limit or $1,000,000.00 Bodily Injury, $1,000,000.00 Property Damage; 5 c) Worker’s compensation coverage, including employees’ liability coverage, as required by law. A Party may self-insure as permitted by law. VII. Indemnification. To the extent permitted by law, each Party (as “indemnitor”) agrees to indemnify, defend and hold harmless each of the other Parties (as “indemnitee(s)”) from and against any and all claims, losses, liability, costs, or expenses, including reasonable attorney’s fees (hereinafter collectively referred to as “claims”) arising out of bodily injury, including death, or property damage, but only to the extent that such claims which result in vicarious/derivative liability to the indemnitee(s), are caused by the act, omission, negligence, misconduct, or other fault of the indemnitor, its officers, officials, agents, employees or volunteers. VIII. Compliance with Laws The Parties shall comply with all applicable federal, state and local laws, rules, regulations, standards and Executive Orders, without limitation to those designated within this IGA. As to parties that are Indian tribes, an Executive Order shall only be deemed to be applicable if it specifically names “Indian tribes” as being within the scope of the order, and the person issuing the Order has lawful authority to issue an Executive Order that would be lawfully binding upon Indian tribes. The laws and regulations of the State of Arizona shall govern the rights of the parties, the performance of this IGA and any disputes hereunder. Any action relating to this IGA shall be brought in any court of competent jurisdiction. IX. Non-Discrimination In performance of this IGA the Parties shall not discriminate against any employee, client or any other individual in any way because of that person’s age, race, creed, color, religion, sex, disability or national origin in the course of carrying out their duties pursuant to this IGA. The Parties who are not Indian tribes shall comply with the provisions of Executive Order 75-5, as amended by Executive Order 99-4, which is incorporated into this IGA by reference, as if set forth in full herein. Those parties that are Indian Tribes shall comply with all anti-discrimination laws and ordnances specifically made applicable to Indian tribes by law. X. ADA The Parties shall comply with all applicable provisions of the Americans with Disabilities Act (Public Law 101 -336, 42 U.S.C. 12101-12213) and all applicable federal regulations under the Act, including 28 CFR Parts 35 and 36. 6 XI. Severability If any provision of this IGA, or any application thereof to the parties or any person or circumstances, is held invalid, such invalidity shall not affect other provisions or applications of this IGA which can be given effect, without the invalid provision or application and to this end the provisions of this IGA are declared to be severable. XII. Conflict of Interest This IGA is subject to cancellation for conflict of interest pursuant to A.R.S. § 38 - 511, the pertinent provisions of which are incorporated herein by referenc e. XIII. Legal Authority No Party warrants to the other its legal authority to enter into this IGA. If a court, at the request of a third person, should declare that either party lacks authority to enter into this IGA, or any part of it, then the IGA, or parts of it affected by such order, shall be null and void, and no recovery may be had by either party against the other for lack of performance or otherwise. XIV. Workers’ Compensation. Each Party who is not an Indian tribe shall comply with the notice of A.R.S. § 23 - 1022 (E). For purposes of A.R.S. § 23-1022, each Party shall be considered the primary employer of all personnel currently or hereafter employed by that Party, irrespective of the operations of protocol in place, and said party shall have the sole responsibility for the payment of Workers’ Compensation benefits or other fringe benefits of said employees. XV. No Joint Venture. It is not intended by this IGA to, and nothing contained in this IGA shall be construed to, create any partnership, joint venture or employment relationship between the Parties or create any employer-employee relationship between one Party’s employees, and any other Party hereunder. No Party shall be liable for any debts, accounts, obligations or other liabilities whatsoever of the other, including (without limitation) the other party's obligation to withhold Social Security and income taxes for itself or any of its employees. XV. No Third-Party Beneficiaries. Nothing in the provisions of this IGA is intended to create duties or obligations to or rights in third parties not parties to this IGA or affect the legal liability of any Party to the IGA by imposing any standard of care with respect to the maintenance o f public facilities different from the standard of care imposed by law. 7 XVI. Sovereign Immunity. Nothing in this IGA shall be construed as an express or implied waiver of the sovereign immunity of any party in any forum or jurisdiction. Provisions of t his IGA shall apply to Native American jurisdictions only to the extent that they do not violate Native American sovereignty. XVII. Immigration Laws. The Parties hereby warrant that they will at all times during the term of this IGA comply with all federal immigration laws applicable to each party’s employment of its employees, and with the current requirements of A.R.S. § 23 -214(A) (together the “State and Federal Immigration laws”). The Parties shall further ensure that each subcontractor who performs any work for the party under this IGA likewise complies with the State and Federal Immigration Laws. XVIII. Entire Agreement. This document constitutes the entire agreement between the Parties pertaining to the subject matter hereof, and all prior or contemporaneous agreements and understandings, oral or written, are hereby superseded and merged herein. This IGA shall not be modified, amended, altered or extended except through a written amendment executed by the governing bodies of the Parties. XIX. Counterparts. This IGA may be executed in two or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. The signature pages from one or more counterpart may be removed from such counterpart and attached to a single instrument. -REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK - 8 In Witness Whereof , each Parties has caused this Intergovernmental Agreement to be executed by a representative of that Jurisdiction’s governing body, and attested by its clerk, upon resolution of its governing body. PIMA COUNTY: ATTEST: Sharon Bronson Date Chairman, Board of Supervisors Julie Castaneda Date Clerk of the Board Chris Nanos Date Sheriff of Pima County 9 In Witness Whereof , each Parties has caused this Intergovernmental Agreement to be executed by a representative of that Jurisdiction’s governing body, and attested by its clerk, upon resolution of its governing body. TOWN OF ORO VALLEY ATTEST: Joseph C. Winfield Date Mayor of Oro Valley Michael Standish Date Town Clerk Kara Riley Date Chief of Police, Oro Valley 10 In Witness Whereof , each Parties has caused this Intergovernmental Agreement to be executed by a representative of that Jurisdiction’s governing body, and attested by its clerk, upon resolution of its governing body. TOWN OF SAHUARITA ATTEST: Tom Murphy Date Mayor of Sahuarita Lisa Cole Date Town Clerk John Noland Date Chief of Police, Sahuarita 11 In Witness Whereof , each Parties has caused this Intergovernmental Agreement to be executed by a representative of that Jurisdiction’s governing body, and attested by its clerk, upon resolution of its governing body. CITY OF SOUTH TUCSON ATTEST: Bob Teso Date Mayor of South Tucson Veronica Moreno Date City Clerk Manuel Amado Date Chief of Police, South Tucson 12 In Witness Whereof , each Parties has caused this Intergovernmental Agreement to be executed by a representative of that Jurisdiction’s governing body, and attested by its clerk, upon resolution of its governing body. TOWN OF MARANA ATTEST: Ed Honea Date Mayor of Marana Cherry Lawson Date Town Clerk Reuben Nunez Date Chief of Police, Marana 13 In Witness Whereof , each Parties has caused this Intergovernmental Agreement to be executed by a representative of that Jurisdiction’s governing body, and attested by its clerk, upon resolution of its governing body. PASCUA YAQUI TRIBE ATTEST: Peter Yucupicio Date Tribal Council Chairman Francisco Valencia Date Tribal Council Secretary Michael Valenzuela Date Chief of Police, Pascua Yaqui Tribe 14 In Witness Whereof , each Parties has caused this Intergovernmental Agreement to be executed by a representative of that Jurisdiction’s governing body, and attested by its clerk, upon resolution of its governing body. TUCSON AIRPORT AUTHORITY ATTEST: Danette Bewley Date President/CEO Tucson Airport Authority Cathy Borders Date Executive Assistant to the President Chief Scott Bader Date Tucson Airport Police Department 15 In Witness Whereof , each Parties has caused this Intergovernmental Agreement to be executed by a representative of that Jurisdiction’s governing body, and attested by its clerk, upon resolution of its governing body. CITY OF TUCSON ATTEST: Regina Romero Date Mayor of the City of Tucson Roger Randolph Date City Clerk Chris Magnus Date Chief of Police, City of Tucson 16 Intergovernmental Agreement Determination The foregoing Intergovernmental Agreement has been reviewed pursuant to A.R.S. § 11 - 952 by the undersigned, who have determined that it is in proper form and is within the powers and authority granted under the laws of the State of Arizona to those parties to the Intergovernmental Agreement represented by the undersigned. Sean Holguin Date Tobin Sidles Date Deputy County Attorney, Pima County Oro Valley Legal Services Director Daniel J. Hochuli Date Bobby Yu Date Sahuarita Town Attorney City of South Tucson Attorney Jane Fairall Date Alfred Urbina Date Marana Town Attorney Attorney General, Pascua Yaqui Tribe Christopher Schmaltz Date Mike Rankin Date General Counsel, Tucson Airport Authority Tucson City Attorney    Town Council Regular Session G. Meeting Date:07/07/2021   Submitted By:Mike Standish, Town Clerk's Office Department:Town Clerk's Office SUBJECT: Resolution No. (R)21-36, approving the Agenda Committee assignment for the period of September 1, 2021, to November 30, 2021 RECOMMENDATION: Staff recommends approval. EXECUTIVE SUMMARY: Per the Town Council Parliamentary Rules and Procedures & Code of Conduct, the Town Council shall set and approve the Agenda Committee meeting assignments. Attached is the proposed Agenda Committee meeting assignment of Councilmember Greene for the period of September 1, 2021, to November 30, 2021. BACKGROUND OR DETAILED INFORMATION: N/A FISCAL IMPACT: N/A SUGGESTED MOTION: I MOVE to APPROVE Resolution No. (R)21-36, approving the Agenda Committee assignment for the period of September 1, 2021, to November 30, 2021. Attachments (R)21-36 Agenda Committee Assignment  RESOLUTION NO. (R)21-36 A RESOLUTION OF THE MAYOR AND COUNCIL OF THE TOWN OF ORO VALLEY, ARIZONA, ASSIGNING COUNCILMEMBER GREENE TO THE AGENDA COMMITTEE FOR THE PERIOD OF SEPTEMBER 1, 2021 THROUGH NOVEMBER 30, 2021; AND DIRECTING THE TOWN MANAGER, TOWN CLERK, TOWN LEGAL SERVICES DIRECTOR, OR THEIR DULY AUTHORIZED OFFICERS AND AGENTS TO TAKE ALL STEPS NECESSARY TO CARRY OUT THE PURPOSES AND INTENT OF THIS RESOLUTION WHEREAS, on September 19, 2001, the Mayor and Council adopted the Town Council Parliamentary Rules and Procedures and Code of Conduct; and WHEREAS, pursuant to section 5.2 (A) Town Council Parliamentary Rules and Procedures & Code of Conduct , the Town Council shall set and approve the agenda committee meeting assignments; and WHEREAS, Town Council wishes to assign Councilmember Greene to the agenda committee for the period of September 1, 2021 through November 30, 2021. NOW, THEREFORE, BE IT RESOLVED by the Mayor and Council of the Town of Oro Valley, Arizona, as follows: SECTION 1. That Councilmember Greene is hereby assigned to the Agenda Committee for the period of September 1, 2021 through November 30, 2021. SECTION 2. That the Town Manager, Town Clerk, Town Legal Services Director, or their duly authorized officers and agents to take all steps necessary to carry out the purposes and intent of this resolution. PASSED AND ADOPTED by the Mayor and Town Council of the To wn of Oro Valley, Arizona, this 7th day of July, 2021. TOWN OF ORO VALLEY ___________________________ Joseph C. Winfield, Mayor ATTEST: APPROVED AS TO FORM : ____________________________ __________________________________ Michael Standish, Town Clerk Tobin Sidles, Legal Services Director Date: _______________________ Date: _____________________________    Town Council Regular Session 1. Meeting Date:07/07/2021   Requested by: Councilmember Solomon & Councilmember Greene  Submitted By:Mike Standish, Town Clerk's Office Department:Town Clerk's Office SUBJECT: DISCUSSION OF THE CURRENT STATUS REGARDING THE EFFORTS TO PRESERVE THE FORMER VISTOSO GOLF COURSE, SUBJECT TO EXISTING CONFIDENTIALITY REQUIREMENTS -Council may adjourn into Executive Session to seek legal advice regarding this item pursuant to A.R.S. 38-431.03(A)(3), (A)(4) and/or (A)(7) RECOMMENDATION: N/A EXECUTIVE SUMMARY: Councilmember Solomon and Councilmember Greene have requested this agenda item. BACKGROUND OR DETAILED INFORMATION: N/A FISCAL IMPACT: N/A SUGGESTED MOTION: This item is for discussion only. Attachments No file(s) attached.    Town Council Regular Session 2. Meeting Date:07/07/2021   Submitted By:David Gephart, Finance Department:Finance SUBJECT: RESOLUTION NO. (R)21-37, PRESENTATION, DISCUSSION AND POSSIBLE ACTION TO ADOPT REVISED FINANCIAL AND BUDGETARY POLICIES RECOMMENDATION: The Budget and Finance Commission and Town staff recommend approval. EXECUTIVE SUMMARY: The purpose of this item is to submit for review, consideration and adoption by the Town Council, a resolution adopting proposed updates to the financial policies for the Town of Oro Valley. BACKGROUND OR DETAILED INFORMATION: Periodically, it is necessary to review and update Town financial and budgetary policies to incorporate best practices and modernize format and language to reflect current business practices and philosophy.  As such, last fiscal year staff began a comprehensive and thorough process of reviewing and updating the Town Financial and Budgetary Policies.  Existing financial and budgetary policies had undergone minimal review when last approved on June 19, 2020.  Prior to that, a more substantive review was approved by Council on June 6, 2018.  Government Finance Officers' Association (GFOA) best practices recommend review and approval on an annual basis. Many of the substantive changes from existing policies relate to formatting.  Further, the Town had separate Investment and PSPRS Pension Funding Policies, which are both being folded into the revised Town financial and budgetary policies providing a singular reference source.  Both the current Financial and Budgetary Policy and Investment Policy have been attached for reference.  While existing financial and budgetary, and investment policies have served the Town well in strengthening the financial position of the Town and protecting Town assets, staff recommends that significant improvement could be made in improving the structure of the policies to improve clarity and organization. Staff presented proposed changes for review and comment to the Budget and Finance Commission (BFC) over four (4) separate meetings from August 18, 2020, through November 17, 2020.  Much thought and deliberation has been invested by both the BFC and staff to ensure the revised policy document reflects the highest degree of professionalism, best practices, and structure, reflecting current Town processes and priorities. The proposed revisions and updates have been unanimously recommended for Council approval by the BFC. As mentioned, current and proposed policy documents are attached.  Further, a "crosswalk" has been included to assist in understanding how current policies are incorporated into the proposed comprehensive policy document. FISCAL IMPACT: N/A. SUGGESTED MOTION: I MOVE to APPROVE Resolution No. (R)21-37, adopting revised financial and budgetary policies. Attachments (R)21-37 Financial and Invest Policies  Attachment A - Proposed Financial Policies  Attachment B - Current Financial Policies  Attachment C - Current Investment Policy  Attachment D - Crosswalk  Staff Presentation  RESOLUTION NO. (R)21-37 A RESOLUTION OF THE MAYOR AND COUNCIL OF THE TOWN OF ORO VALLEY, ARIZONA, AMENDING AND APPROVING UPDATES TO THE FINANCIAL AND BUDGETARY POLICIES AND THE INVESTMENT POLICY FOR THE TOWN OF ORO VALLEY WHEREAS, on June 17, 2015, the Town Council approved Resolution No. (R) 15-50, adopting the “Town of Oro Valley Financial and Budgetary Policies” as amended; and WHEREAS, on September 15, 2010, the Town Council approved Resolution No. (R) 10-65, adopting the “Town of Oro Valley Investment Policy” as amended; and WHEREAS, the Council has determined that it is appropriate and necessary to update and combine the “Town of Oro Valley Financial and Budgetary Policies” and the “Town of Oro Valley Investment Policy” to bring the policies in line with current financial practices, procedures, and strategies of the Town by replacing, as of the date of this Resolution, such policies with the documents attached hereto as Exhibit “A” (Town of Oro Valley Financial and Budgetary Policies), and incorporated by reference. NOW, THEREFORE, BE IT RESOLVED by the Mayor and Council of the Town of Oro Valley, Arizona that: SECTION 1. The updates to the Town of Oro Valley Financial and Budgetary Policies now including the revised Town of Oro Valley Investment Policy is hereby adopted and approved. SECTION 2. The Town Manager and any other administrative officials, or their designees of the Town of Oro Valley are hereby authorized to take such steps as are necessary to implement the Town of Oro Valley Financial and Budgetary Policies as amended. SECTION 3. All Oro Valley Ordinances, Resolutions, or Motions and parts of Ordinances, Resolutions or Motions of the Council in conflict with the provisions of this Resolution are hereby repealed. PASSED AND AD OPTED by the Mayor and Council of the Town of Oro Valley, Arizona, this 7th day of July, 2021. TOWN OF ORO VALLEY Joseph C. Winfield, Mayor ATTEST: APPROVED AS TO FORM: Michael Standish, Town Clerk Tobin Sidles, Legal Services Director Date: Date: EXHIBIT “A” 1 Town of Oro Valley, Arizona Financial and Budgetary Policies Guiding Principles: The Town of Oro Valley has an important responsibility to its residents to carefully account for public funds, manage its finances prudently and plan for the adequate funding of services desired by the public. Sound financial policies help ensure the Town’s capability to adequately fund and provide government services desired by the community. The policies contained herein are designed to foster and support the continued financial strength and stability of the Town of Oro Valley. Following these policies enhances the Town’s financial health as well as its image and reputation with residents, the general public, bond and credit rating agencies and investors. The policies serve as guidelines for the Town’s overall fiscal planning and management. In addition, both the Government Finance Officers Association (GFOA) and the National Advisory Council on State and Local Budgeting (NACSLB) recommend formal adoption of financial policies by the jurisdiction’s governing board. The most recent Town Council amendment and re-adoption of the policies occurred on June 17, 2020 per Resolution (R)20-30. 2 Table of Contents 1-1 Annual Budget Process 3 1-2 Strategic Long-Range Financial Planning 6 1-3 Fiscal Monitoring & Reporting 7 1-4 Banking and Investments 8 1-5 Capital Expenditures and Improvements 14 1-6 PSPRS Pension Funding 16 1-7 Revenues 20 1-8 Expenditures 22 1-9 Debt 24 1-10 Fund Balance 26 1-11 Internal Controls 29 1-12 Grants 30 1-13 Accounting, Auditing, and Financial Reporting 31 3 Town of Oro Valley Policy Annual Budget Process 1-1 Last Review Review Month Responsible for maintaining & applying this policy: Finance Next Review: ______________________________________________________________________________ Purpose: To establish policy for setting guidelines for budgeting to help ensure a financially sound, accountable, and transparent process. Scope: All personnel Definitions: Appropriations: The legal authority to spend money granted through an adopted budget. Balanced budget: A financial plan in which all resources are equal to all requirements. Budget: A financial plan estimating revenues and expenditures over a set period of time, which is usually one fiscal year. Capital budget: A financial plan specific to procurement of durable, higher value purchases which satisfy requirements of the capital threshold of the Town, along with the resources necessary to fund the capital purchases. Contingency: Planned financial reserves in a fund that are not dedicated to a particular function, department or activity, whose purpose is to mitigate uncertainty inherent in cost estimates, as well as unpredictable risk exposure. Fiscal year: A year utilized for financial reporting and budgeting purposes. For the Town, th e fiscal year begins July 1 and ends June 30. Fund: A fiscal and accounting entity with a self -balancing set of accounts. One-time revenues: Revenues which are expected to only be received once, and do not provide an ongoing inflow of monies to the Town. Operating budget: A financial plan of current annual spending, along with the resources necessary to pay for it. 4 Recurring expenditures: Expenditures which are expected to be incurred regularly and routinely required by Town operations. Recurring revenues: Revenues which are expected to provide an ongoing inflow of monies to the Town. Structurally balanced budget: A budget in which all recurring revenues are equal to all recurring expenditures. Policy: 1.0 Operating Budget and Capital Budget – The operating budget and capital budget shall serve as the annual financial plan of the Town. The budget shall provide staff with the resources necessary to accomplish the Town Council’s determined service levels, and will serve as the policy documents of the Town Council for implementing its Strategic Leadership Plan and other plans as periodically adopted by the elected body or voted on by the community. 2.0 Budget Timelines – The Town Manager shall annually prepare and present a Town Manager’s Recommended Budget to Town Council at least two months prior to the beginning of a new fiscal year. Based upon feedback from Town Council, a Tentative Budget shall be developed and approved by Town Council prior to the beginning of a new fiscal year establishing the maximum level of spending for the new fiscal year. The final budget shall be adopted by Town Council no later than July 31. The Town Manager shall meet all budget requirements specified in State Law. 3.0 Balanced Budget – The proposed budget will be balanced for the ensuing fiscal year. Deferrals, short-term loans, or one-time revenue sources will be avoided as budget balancing techniques. 4.0 Contingency – The budget shall include contingency appropriation to provide for unanticipated increases in service delivery costs, emergencies, and needs that may arise through the fiscal year. The contingency appropriation may only be expended upon Town Council approval. 5.0 Current Funding Basis – The Town shall budget and operate on a current funding basis. Expenditures shall be budgeted and controlled so as not to exceed expected current revenues. The Town shall strive to achieve a structurally balanced budget whereby recurring expenditures are funded exclusively with recurring revenues. 6.0 Budget Development – The Town will use strategic, multi-year fiscal planning, conservative revenue forecasts and a program/performance-based budgeting method. This method requires each department to establish fiscal year goals and objectives that will be evaluated to determine the effectiveness and efficiency of both department and Town resources, such process and procedure to be up to the Town Manager . Utilization of the program/performance budget format will provide a basis for evaluation of service and other impacts of potential increases or decreases in funding. The budget will incorporate the best available estimates of revenues and expenditures. 5 7.0 Budget Management – The Town Council shall delegate authority to the Town Manager in managing the budget after it is formally adopted, including transfer of funds within programs, categories, and departments. The Town Manager may further delegate levels of authority for the daily operation of the budget. 8.0 Level of Budget Adoption – The annual budget shall be adopted at the fund level, except in the General Fund where it shall be adopted at the department level. To provide sufficient control and accountability, budgets shall be prepared and monitored by major expenditure categories (personnel, operations and maintenance, capital outlay, debt service). 9.0 Appropriations – All appropriations shall lapse at the end of the fiscal year. There is no carryover of appropriations from year to year. 6 Town of Oro Valley Policy Strategic Long-Range Financial Planning 1-2 Last Review Review Month Responsible for maintaining & applying this policy: Finance Next Review: ______________________________________________________________________________ Purpose: To establish policy for long-range forecasting and planning to help ensure a financially sound, accountable, and transparent Town. Scope: All personnel Definitions: None Policy: 1.0 Five-year Forecast of Revenues and Expenditures – A five-year forecast of revenues and expenditures, to include a discussion of major trends affecting the Town’s financial position, shall be prepared in anticipation of the annual budget process. The forecast shall also examine critical issues facing the Town, economic conditions, and the outlook for the upcoming budget year. 7 Town of Oro Valley Policy Fiscal Monitoring & Reporting 1-3 Last Review Review Month Responsible for maintaining & applying this policy: Finance Next Review: ______________________________________________________________________________ Purpose: To establish policy for preparing and presenting regular reports that analyze, evaluate, and forecast the Town’s financial performance and economic condition . Scope: All personnel Definitions: None Policy: 1.0 Financial Status and Performance Reports – Monthly reports comparing expenditures and revenues to current budget, projecting expenditures and revenues through the end of the fiscal year, noting the status of fund balances to include dollar amounts and percentages, and outlining any remedial actions necessary to maintain the Town’s financial position shall be prepared for review by the Town Manager and Town Council. 2.0 Status Report on Capital Projects – A summary report on the contracts awarded, capital projects completed, and the status of the Town’s various capital programs will be prepared at least quarterly and presented to the Town Manager and Town Council. 3.0 Compliance with Financial Policy Statements – Financial policies will be reviewed annually by the Town Council and updated, revised or refined as deemed necessary. Policy statements adopted by the Council are guidelines and occasionally exceptions may be appropriate and required. However, exceptions to stated policies will be specifically identified and the need for the exception will be documented and fully explained. 8 Town of Oro Valley Policy Banking and Investments 1-4 Last Review Review Month Responsible for maintaining & applying this policy: Finance Next Review: ______________________________________________________________________________ Purpose: To establish policy for investing Town cash and investments to ensure its safety, provide for necessary liquidity, and optimize yield. Scope: All personnel Definitions: Credit risk: The risk of loss due to the failure of the security or backer and/or banks. Interest rate risk: The risk that the market value of securities will fall or rise due to changes in market interest rates. Policy: 1.0 Objective – While conforming to federal, state, and other legal requirements the primary objectives of the Town of Oro Valley investment activities shall be: Safety, Liquidity and Yield. These objectives shall be achieved through mitigating credit risk and interest rate risk. 1.1 Safety – The principal goal of the investment program is the preservation and safety of the capital of all Town Funds. Each investment transacti on shall seek to first ensure that capital losses are avoided, whether they are from security defaults or erosion of market value. 1.2 Liquidity – The Town’s investment portfolio shall remain sufficiently liquid in order to meet the operati ng requirements that may be reasonably foreseen. The investment portfolio should be composed in such a way that securities mature concurrent with cash needs to meet required demands . Furthermore, since all possible cash demand cannot be anticipated, the portfolio should consist largely of securities with active secondary or resale markets (dynamic liquidity). Alternati vely, a portion of the portfolio may be placed in money market mutual funds or local government investment pools which offer same-day liquidity for short-term funds. 9 1.3 Yield – The Town’s investment portfolio shall attain the highest rate of yield through budgetary and economi c cycles taking into account the constraints imposed by its safety objectives, cash flow considerations and state laws that restrict the placement of certain public funds. Yield on investment is of secondary importance compared to the safety and liquidity objectives above. The investments are limited to relatively low risk securities in anticipation of earning a fair yield relative to the risk being assumed. Securities shall generally be held until maturity with the following exceptions: 1.3.1 A security with declining credit may be sold early to minimize loss of principal. 1.3.2 A security swap that would improve the quality, expected return, or target duration in the portfolio. 1.3.3 Liquidity needs of the portfolio require that the security be sold . 1.4 Credit risk – The Town will minimize credit risk by: 1.4.1 Limiting investments to the types of securities listed in this investment policy. 1.4.2 Pre-qualifying financial institutions, brokers/dealers, intermediaries, and advisors with which the Town will do business in accordance to this policy. 1.4.3 Diversifying the investment portfolio so that the impact of potential losses from any one type of security or from any one individual issuer will be minimized. 1.5 Interest rate risk – The Town will minimize interest rate risk by: 1.5.1 Structuring the investment portfolio so that securities mature to meet cash requirements for ongoing operations, thereby avoiding the need to sell securities on the open market prior to maturity. 1.5.2 Investing operating funds primarily in shorter-term securities, money market mutual funds or similar investment pools limiting the average maturity in the portfolio in accordance with this policy. 2.0 Delegation of Authority – Authority to manage the investment program is granted to the Town Finance Director/CFO, under the supervision of the Town Manager. Responsibility of the operation of the daily investment program is delegated to the Finance Director/CFO , who shall carry out the operation of the investment program consistent with this investment policy. No employee may engage in an investment transaction except as provided under the terms of this policy and the procedures established by the Finance Director/CFO. 3.0 Prudence – The standard of prudence to be used by the Finance Director/CFO shall be the "prudent person" standard and shall be applied in the context of managing the overall portfolio . The Finance Director/CFO, shall exercise due diligence and not be liable for losses . The "prudent person" standard with respect to Town Investments shall be the exercise of judgment and care, with prudence , discretion and intelligence that a person would exercise in their own affairs, not for speculation, but for investment, considering the primary objectives set forth in Section 1-1 of this policy. 10 4.0 Ethics and Conflicts of Interest – Employees involved in the investment process will refrain from conducting personal business activity that could conflict with the proper execution and management of the investment program, or that could impair their ability to make impartial decisions. Employees will disclose any material interests in financial institutions with which they conduct business. They will disclose any personal financial/investment positions that could be related to the performance of the investment portfolio. Employees shall refrain from undertaking personal investment transactions with the same individual that conducts business with the Town. 5.0 Safekeeping and Custody – To protect against potential fraud or embezzlement, the investments of the Town shall be secured through third-party custody and safekeeping procedures. Ownership shall be protected through third-party custodial safekeeping. The Town’s external auditor shall review safekeeping procedures annually. 5.1 Internal Controls – The Finance Director/CFO is responsible for establishing and maintaining an internal control structure designed to ensure that the assets of the Town are protected from loss, theft or misuse. The controls shall be designed to prevent the loss of public funds arising from fraud, employee error, third party misrepresentation, unanticipated changes in financial markets or imprudent actions by employees and officers of the Town. 5.2 Independent Financial Institution - The Town shall contract with a single, independent financial institution for custodial and safekeeping services for the Town’s investment portfolio. 5.3 Delivery vs. Payment – All trades of marketable securities will be executed by delivery vs. payment (DVP) to ensure that securities are deposited in an eligible financial institution simultaneously to the release of funds. 5.4 Authorized Financial Dealers and Institutions – The Finance Director/CFO will review the financial condition and registration of qualified bidders. Financial institutions and broker/dealers who would like to become qualified bidders for investment transactions with the Town must supply the following: • Audited financial statements • Proof of National Association of Securities Dealers (NASD) certification • Proof of stated registration • Certification of having read and understood and agreeing to comply with the Town’s investment policy • Evidence of adequate insurance coverage An annual review of the financial condition and registration of all qualified financial institutions and broker/dealers wi ll be conducted by the Finance Director/CFO. If the Town utilizes an external investment advisor, the advisor may be authorized to transact with its own Approved Broker/Dealer List on behalf of the Town. If the investment advisor utilizes its own Broker/Dealer List, the advisor will perform due diligence for the brokers/dealers on its Approved List. 6.0 Investment Types – Suitable and authorized investments include the following: 11 6.1 Authorized investments for the debt service reserve funds shall be consistent with those set forth in the trust indentures or the long-term debt issuances. 6.2 Fully insured or collateralized certificates of deposit (CD) that are FDIC-insured in eligible depositories if the interest rate bid is 103% or more of the equivalent bond yield of the offer side of treasury bills. 6.3 Interest bearing savings accounts in qualified banks and savings and loan institutions which are FDIC insured. 6.4 Repurchase agreements with maximum maturity of 180 days. 6.5 The pooled investment funds established by the State Treasurer pursuant to A.RS. 35-326. 6.6 Bond or other evidence of indebtedness of the United States or any of its agencies or instrumentalities when the obligations are guaranteed as to principal and interest by the United States or by any agency or instrumentality of the United States. 6.7 Bonds or other evidences of indebtedness of this State, any county, city, town, or school district. Ratings of these investments must be AAA or equivalent. 6.8 Bonds, notes or evidences of indebtedness of any county or municipal district within this State which are payable from revenues or earnings specifically pledged for the payment of the principal and interest on the obligations, if they meet certain criteria as specified in A.RS .35-323. Ratings of these investments must be AAA or equivalent. 6.9 Bonds, notes or other evidences of indebtedness issued by any municipal improvement district in this State to finance local improvements authorized by law, if the principal and the interest of the obligations are payable from assessments on real property within the local improvement district. Ratings of these investments must be AAA or equivalent. 6.10 Money market mutual funds regulated by the Securities and Exchange Commission and whose portfolios consist of dollar-denominated securities. Money market mutual funds must always be priced at $1/share. 6.11 Commercial paper, rated in the highest tier (e.g., A-1, P-1, F-1, or D-1 or higher) by a nationally recognized rating agency. 6.12 Bonds, debentures, notes or other evidences of indebtedness that are denominated in United States dollars and that carry at a minimum an “A” or better rating at the time of purchase, from at least two nationally recognized rating agencies. 6.13 Bonds, debentures, notes or other evidences of indebtedness that are denominated in United States dollars and that carry at a minimum an “A” or better rating at the time of purchase, from at least two nationally recognized rating agencies. 6.14 Negotiable or brokered certificates of deposit issued by a nationally or state- chartered bank or savings and loan association. Callable securities are not permitted. 12 6.15 Collateralization of 102% will be required on two types of Town investments: certificates of deposit and repurchase agreements. 7.0 Investment Parameters – Investment parameters include the following: 7.1 Diversification - The investments shall be diversified by: 7.1.1 Limiting investments to avoid over-concentration in securities from a specific issuer or business sector (excluding U.S. Treasury securities) 7.1.2 Limiting investment in securities that have higher credit risks 7.1.3 Investing in securities with varying maturities 7.1.4 Investing a portion of the portfolio in readily available funds such as local government investment pools (LGIP’s), overnight repurchase agreements, or other overnight accounts to ensure that appropriate liquidity is maintained in order to meet ongoing obligations 7.2 Maturities - Reserve funds are subject to different requirements on maximum maturities than those for other Town funds according to the terms and provisions as outlined in the trust indenture of the long-term debt issuances. To ensure liquidity the Town shall attempt to match its investments with anticipated cash flow requirements . As all possible cash demands cannot be anticipated, a portion should consist of securities with active secondary and resale markets. The Town will not invest in securities with maximum maturities greater than those allowed under A.R.S. 35-323, Investment of Public Monies. Currently, maximum maturities are: 7.2.1 Securities and deposits: 5 years 7.2.2 Repurchase agreements: 30/180 days in accordance with A.R.S 35-323. 7.3 Competitive Procurement Process/Use of Cooperative Contract - Before the Town invests any public funds, a competitive procurement process should be conducted for the necessary services or investment instruments. If a specific maturity date is required, either for cash flow purposes or in order to conform to maturity guidelines, bids will be requested for instruments which meet the maturity requirement. If no specific maturity is required, a market trend (yield curve) analysis will be conducted to determine which maturities would be most advantageous. The competitive process will follow the policies and procedures outlined in the Town’s Procurement Code and comply with A.R.S. 35 -323. The Town may also choose to use an existing cooperative contract provided the contract meets all requirements of the Town’s Procurement Standards. 8.0 Shock Test – The purpose of the shock test is to analyze the impact of changes in market interest rates on the potential value of the portfolio. The investment portfolio shall be shock tested quarterly by the safekeeping agent as part of their contract responsibility. At a minimum, the stress test will value the portfolio assuming interest rates rise or fall by up to 300 basis points across the entire yield curve. Information obtained from the stress test combined with current economic and interest rate forecasts will assist in determining appropriate maturities for new investments considering risks. 13 9.0 Benchmarks – The investment portfolio held by authorized financial institutions will be managed in accordance with the parameters specified within this policy. The portfolio should obtain a market average rate of return of stable interest rates which are equal to or exceed that obtained through investing in the State of Arizona Local Government Investment Pool (LGIP), which is managed by the State Treasurer. Performance will be monitored quarterly. 10.0 Banking Services – The Town will execute a contract with its financial depository which shall designate the requirements of serving as a depository for the Town, including collateralization of Town funds invested at such depository and the related safekeeping requirements of the pledged securities. The Town will evaluate and request bids on banking services every five years. 14 Town of Oro Valley Policy Capital Expenditures and Improvements 1-5 Last Review Review Month Responsible for maintaining & applying this policy: Finance Next Review: ______________________________________________________________________________ Purpose: To establish policy for annually reviewing and monitoring the state of the Town’s capital equipment and infrastructure, setting priorities for its replacement and renovation based on needs, funding alternatives, and availability of resources. Scope: All personnel Definitions: Capital asset: Any item with an acquisition cost of $5,000 or more, and an estimated useful life of two or more years. Capital improvement program (CIP): A planning document comprised of capital projects expected to be funded over the next 10 years. The purpose of the CIP is to systematically identify, plan, schedule, finance, track and monitor capital projects to ensure cost effectiveness as well as conformance to established policies and Council goals and priorities. Capital project: A project expected with an estimated cost of $50,000 or more, and expected to have a useful life of five or more years. Minor assets: Assets with an acquisition cost of $1,000 or more, but less than $5,000, and an estimated useful life of two or more years. Policy: 1.0 Capital Improvements – The Town shall annually review the needs for capital improvements, including the current status of the Town infrastructure, replacement and renovation needs, and potential new projects. All projects, both ongoing and proposed, shall be prioritized based on an analysis of current needs and resource availab ility at the direction of the Town Manager. For every proposed capital project, all operation, maintenance, and replacement costs shall be fully costed. Proposed capital projects will not be authorized or awarded until a funding source is identified. 15 2.0 Capital Assets – Capital assets shall be depreciated over their estimated useful lives utilizing the straight-line method and shall be included in the operating budget. 3.0 Capital Projects – Capital projects shall be depreciated over their estimated useful lives utilizing the straight-line method and shall be included in both the capital improvement program (CIP) and capital budget. 4.0 Capital Improvement Program (CIP) – A minimum ten-year capital improvement program will be developed and updated annually, encompassing both anticipated funding sources and any estimated operating expenditures. Estimated operating expenditures associated with capital projects will be included in the operating budget. Estimated first-year capital expenditures in the CIP shall be included in the Capital Fund. A quarterly status report will be prepared for Council to facilitate monitoring of each project’s progress and identify any significant issues. 5.0 Prioritization – Prioritization shall occur first at the department level, and then at the Town-wide level by a cross-departmental capital project team. Financing sources will then be identified for the projects ranking the highest based on evaluation criteria and available resources. 6.0 Minimum Funding Level – In order for the Town to provide sustainable funding for capital improvements and asset repair/maintenance needs each year, the annual budget shall include the allocation of a minimum of 5% of the Town ’s General Fund estimated sales tax revenues (not including state-shared revenues) to fund these needs, subject to Council approval and funding availability. These funds will be accounted for in a separate Capital Fund. 7.0 Capital Expenditure Financing – The Town recognizes that there are three basic methods of paying for capital requirements. It can budget the funds from curre nt resources (pay as you go), it can take the funds from fund balance as allowed by the Fund Balance Policy (another pay as you go method), or it can borrow money through debt. Debt financing includes general obligation bonds, revenue bonds, certificates of obligation, lease/purchase agreements, certificates of participation, commercial paper, and other debt instruments permitted under Arizona law. Guidelines for incurring debt are set forth in the Debt Policy Statements. 8.0 Audits – The Finance Department shall be responsible for verifying the actual physical existence of capital and minor assets and the accuracy of the Town’s asset database. The process will be monitored through asset audits of Town departments and divisions. Any significant irregularities will be reported to the Town Manager. The Town shall strive to perform a complete inventory of capital items at least every two years. 16 Town of Oro Valley Policy PSPRS Pension Funding 1-6 Last Review Review Month Responsible for maintaining & applying this policy: Finance Next Review: ______________________________________________________________________________ Purpose: To establish policy for clearly communicating the Town of Oro Valley’s Public Safety Personnel Retirement System (PSPRS) and Correction Officer Retirement Plan (CORP) pension funding objectives, its commitment to public safety employees of the Town, and sound financial management. Further, to comply with ARS 38-863.01. Scope: The Town’s sworn police employees who are regularly assigned hazardous duty participate in the PSPRS. Selected individuals who serve as dispatchers in the Oro Valley Police Department participate in the CORP plan, which is administered by PSPRS. Definitions: Unfunded actuarial accrued liability (UAAL): The difference between trust assets and the estimated future cost of pensions earned by employees. This UAAL results from actual results (investment income, member mortality, disability rates, payroll increases, etc.) being different from the assumptions used in previous actuarial valuations. Annual required contribution (ARC): The annual amount required to pay into the pension funds, as determined through annual actuarial valuations. It is comprised of two primary components: normal pension cost - which is the estimated cost of pension benefits earned by employees in the current year; and amortization of UAAL - which is the cost needed to cover the unfunded portion of pensions earned by employees in previous years. The UAAL is collected over a period of time referred to as the amortization period. The ARC is a percentage of the current payroll. Funded ratio: A ratio of fund assets to actuarial accrued liability. The higher the ratio, the better funded the pension is with 100% being fully funded. Intergenerational equity: A concept meant to ensure that no generation is burdened by substantially more or less pension costs than past or future generations. 17 Policy: 1.0 Public Safety Personnel Retirement System (PSPRS) 1.1 PSPRS is administered as an agent multiple-employer pension plan. An agent multiple-employer plan has two main functions: 1.1.1 To comingle assets of all plans under its administration, thus achieving economies of scale for more cost-efficient investments and invest those assets for the benefit of all members under its administration . 1.1.2 To serve as the statewide uniform administrator for the distribution of benefits. 1.2 Under an agent multiple-employer plan, each agency participating in the plan has an individual trust fund reflecting that agencies’ assets and liabilities. Under this plan all contributions are deposited to and distributions are made from that fund’s assets, each fund has its own funded ratio and contribution rate, and each fund has a unique annual actuarial valuation. The Town of Oro Valley has one trust fund for police employees. The Town also contributes to the Correction Officer Retirement Plan (CORP), administered by the Public Safety P ersonnel Retirement System, on behalf of selected individuals who serve as dispatchers in the Oro Valley Police Department. CORP maintains one trust fund for dispatchers. 1.3 Council formally accepts the assets, liabilities, and current funding ratio of the Town’s PSPRS and CORP trust funds from the June 30, 2020 actuarial valuations specified below. Trust Fund Assets Accrued Liability Unfunded Actuarial Accrued Liability Funded Ratio Oro Valley Police $41,498,361 $67,240,526 $25,742,165 61.7% Oro Valley Dispatchers $ 1,504,732 $ 3,374,933 $ 1,870,201 44.6% 1.4 PSPRS and CORP Funding Goal – Pensions that are less than fully funded place the cost of service provided in earlier periods (amortization of UAAL) on current taxpayers. Fully funded pension plans are the best way to achieve taxpayer and member intergenerational equity. 1.5 The Council’s PSPRS and CORP funding ratio goal is 100% (fully funded) by June 30, 2036 and beyond. Council establishes this goal for the following reasons: 1.5.1 The PSPRS and CORP trust funds represent only the Town of Oro Valley’s liability. 1.5.2 The fluctuating cost of an UAAL causes strain on the Town’s budget, affecting the Town’s ability to provide services. 1.5.3 A fully funded pension is the best way to achieve taxpayer and member intergenerational equity. 1.6 Council has determined that in order to achieve the 100% funding r atio goal, the following actions will be taken as early as possible in fiscal year 21/22 with a July 2021 target completion: 1.6.1 Make a $10 million payment from reserves in FY22 to the plan. 18 1.6.2 Issue $17 million in pension obligation debt in FY22, proceeds to be deposited into the plan. 1.6.3 Maintain ARC payment from operating revenues – Council is committed to maintaining the full ARC payment (normal cost and UAAL amortization) from operating funds. The estimated combined ARC for FY21/22 is estimated at $3.5 million for PSPRS and at $171,000 for CORP and shall be paid from operating funds. 1.6.4 At such time the ARC is projected to be reduced, the Town should endeavor to continue paying the ARC at the higher rate (currently 41.62% for Police), to maintain the funding ratio goal of 100%, based on funding availability. This is due to historically poor investment performance in the Plan and should assist in mitigating risk should it continue. 1.6.5 Retain the 20-year amortization of unfunded liability. 1.6.6 Review Local board practices annually. 1.6.7 Periodically engage consultants to review actual results and recommend possible adjustments or corrections as necessary. 1.7 Payments to PSPRS will be as follows: 1.7.1 In FY21, the Town will make approximately $2.9M in payments based upon a 41.62% contribution rate. 1.7.2 In FY22, the Town will make approximately $3.5M in payments based upon a 43.57% contribution rate, plus a one-time $10M payment from reserves and an approximately $17M payment from pension obligation bond issuance. The two additional payments will not be reflected in funding ratio until fiscal year 2024. 1.7.3 In FY23, the Town will make approximately $3.5M in payments based upon a 43.57% contribution rate. 1.7.4 In FY24 and subsequent years, the Town will continue maintaining a 100% funding ratio. If the funding ratio grows to over 110%, the Town Manager through the budget process, may recommend applying funding to other Town priorities. If the funding ratio falls below 100%, future additional payments will be made to restore the funding ratio back to 100%. 1.8 It is hereby the Town Council’s intent to achieve its goal of 100% funding by June 30, 2036, in accordance with the amortization timeline set forth by the PSPRS and CORP June 30, 2020 Actuarial Valuation. 1.9 The following shows the historical performance of the unfunded actuarial accrued liability: Unfunded Accrued Actuarial Accrued Funded Year Trust Fund Assets Liability Asset/(Liability) Ratio 2014 Oro Valley Police $23,567,852 $36,122,643 $(12,554,791) 65% 2014 Oro Valley Dispatchers $ 1,216,956 $ 2,269,744 $ (1,052,788) 54% 19 2015 Oro Valley Police $26,200,389 $40,452,911 $(14,252,522) 65% 2015 Oro Valley Dispatchers $ 1,205,067 $ 2,362,604 $ (1,157,537) 51% 2016 Oro Valley Police $29,296,195 $48,414,270 $(19,118,075) 61% 2016 Oro Valley Dispatchers $ 1,163,258 $ 2,524,360 $ (1,361,102) 46% 2017 Oro Valley Police $31,882,797 $53,037,566 $(21,154,769) 60% 2017 Oro Valley Dispatchers $ 1,260,798 $ 3,077,649 $ (1,816,851) 41% 2018 Oro Valley Police $34,172,618 $57,022,056 $(22,849,438) 60% 2018 Oro Valley Dispatchers $ 1,337,558 $ 2,945,307 $ (1,607,749) 45% 2019 Oro Valley Police $37,842,906 $62,278,853 $(24,435,947) 61% 2019 Oro Valley Dispatchers $ 1,424,947 $ 3,240,399 $ (1,815,452) 44% 2020 Oro Valley Police $41,498,361 $67,240,526 $(25,742,165) 62% 2020 Oro Valley Dispatchers $ 1,504,732 $ 3,374,933 $ (1,870,201) 45% 20 Town of Oro Valley Policy Revenues 1-7 Last Review Review Month Responsible for maintaining & applying this policy: Finance Next Review: ______________________________________________________________________________ Purpose: To establish policy for designating, maintaining, and administering a revenue system that assures a reliable, equitable, diversified, and sufficient revenue stream to support desired Town services. Scope: All Personnel Definitions: None Policy: 1.0 Balance and Diversification in Revenue Sources – The Town shall strive to maintain a balanced and diversified revenue system to protect it from fluctuations in any one source due to changes in local economic conditions which adversely impact that source. 2.0 User Fees and Charges – For services that benefit specific users, the Town shall establish and collect fees to recover the costs of those services. The Town Council shall determine the appropriate cost recovery level and establish the fees. Where feasible and desirable, the Town shall seek to recover full direct and indirect costs. Material user fees shall be reviewed on an annual basis to calculate their full cost recovery levels, to compare them to the current fee structure, and to recommend adjustments where necessary. 3.0 Revenue Estimates for Budgeting – To maintain a stable level of services, the Town shall use a conservative, objective and analytical approach when preparing revenue estimates. The process shall include analysis of probable economic changes and their impacts on revenues, historical collection rates, and trends in revenues. This approach should reduce the likelihood of actual revenues falling short of budget estimates during the year and should avoid mid-year service reductions. 4.0 Revenue Collection and Administration – The Town shall maintain high collection rates for all revenues by keeping the revenue system as simple as possible to facilitate payment. In addition, because revenue should exceed the cost of producing it, the Town shall strive to control and reduce administrative costs. The Town shall pursue to the full extent allowed by state law all delinquent taxpayers and others overdue in payments to the Town. 21 5.0 Write-off of Uncollectible Accounts – The Town shall monitor payments due the Town (accounts receivable) and the Town Manager or designee shall periodically write-off accounts where collection efforts have been exhausted and/or collections efforts are not feasible or cost-effective. 6.0 Use of One-time Revenues – The Town shall discourage the use of one-time revenues for ongoing expenditures. 7.0 Use of Unpredictable Revenues – The Town shall exercise caution with the use of unpredictable revenues for ongoing expenditures. 22 Town of Oro Valley Policy Expenditures 1-8 Last Review Review Month Responsible for maintaining & applying this policy: Finance Next Review: ______________________________________________________________________________ Purpose: To establish policy for identifying priority services, establish appropriate service levels, and administer the expenditure of available resources to assure fiscal stability and the effective and efficient delivery of Town services. Scope: All Personnel Definitions: None Policy: 1.0 Current Funding Basis – The Town shall operate on a current funding basis. Expenditures shall be budgeted and controlled so as to not exceed current revenues plus the planned use of fund balance accumulated through prior year savings. (The use of fund balance shall be guided by the Fund Balance Policy Statements). 2.0 Avoidance of Operating Deficits (Governmental Funds) – The Town Manager shall take immediate corrective actions if, at any time during the fiscal year, expenditure and revenue re-estimates are such that an operating deficit (projected expenditures in excess of projected revenues) is projected at year-end. Corrective actions may include a hiring freeze, employee reductions, expenditure reductions, fee increases, use of fund balance within the Fund Balance Policy or other actions that may be deemed necessary and appropriate. Expenditure deferrals into the following fiscal year, short-term loans or use of one-time revenue sources shall be avoided in attempt to achieve fiscal structural balance. Corrective actions referenced above shall be presented to Town Council at the earliest possible time for approval. 3.0 Maintenance of Capital Assets – Within the resources available each fiscal year, the Town shall maintain capital assets and infrastructure at a sufficient level to protect the Town’s investment, to minimize future replacement and maintenance costs, and to continue service levels. 4.0 Periodic Program Reviews – The Town Manager shall undertake periodic staff and third - party reviews of Town programs for both efficiency and effectiveness. Privatization and contracting with other governmental agencies will be evaluated as alternative 23 approaches to service delivery. Programs which are determined to be inefficient and/or ineffective shall be reduced in scope or eliminated. 5.0 Purchasing – The Town shall conduct its purchasing and procurement functions efficiently and effectively, fully complying with applicable Federal and State laws, and the Town Procurement Code. Staff shall make every effort to maximize any discounts offered by creditors/vendors. Staff shall also utilize competitive bidding or cooperative purchasing agreements to attain the best possible price on goods and services. Procurement policy and procedures are found in Town AD 2-2. 6.0 Uniform Expenditure Reporting System – The Arizona Constitution imposes a limit on the expenditures of local jurisdictions. The Town will comply with these expenditure limitations and submit an audited expenditure limitation report, audited financial statements, and audited reconciliation report as defined by the Uniform Expenditure Reporting System to the State Auditor General within prescribed timelines in accordance with A.R.S. 41-1279.07. 7.0 Budget Amendments and Transfers – To provide flexibility in the management of department budgets for major expenditures (personnel, operations & maintenance, capital outlay, and debt service) the following amendment and transfer provisions shall apply: 7.1 Transfers of budget capacity between funds shall require the recommendation of the Town Manager and formal action by the Town Council. 7.2 Transfers of budget capacity between line items within each major expenditure category shall be permitted upon recommendation of the Department Head and approval by the Town Manager. 7.3 Transfers of budget capacity between line items or major expenditure categories to fund additional personnel or increased expenditures as a re sult of personnel reclassifications shall require the recommendation of the Town Manager and formal action by the Town Council. 7.4 Transfers of budget capacity that reduce or eliminate funding for items designated in the adopted Capital Improvement Program shall require the recommendation of the Town Manager and approval of the Town Council. 7.5 Transfers of budget capacity that reduce or eliminate funding for debt service shall require the recommendation of the Town Manager and approval of the Town Council. 24 Town of Oro Valley Policy Debt 1-9 Last Review Review Month Responsible for maintaining & applying this policy: Finance Next Review: ______________________________________________________________________________ Purpose: To establish policy for establishing guidelines for debt financing that provides needed capital equipment and infrastructure improvements while minimizing the impact of debt payments on current revenues. Scope: All Personnel Definitions: Excise Tax: Excise taxes for purposes of debt repayment include Town Sales and Franchise Fees, Licenses and Permits, Fines, State-shared Sales Tax, and State-shared Income Tax revenues. Policy: 1.0 Use of Debt Financing – Debt financing, to include general obligation bonds, certificates of participation, commercial paper, lease/purchase agreements, and other obligations permitted to be issued or incurred under Arizona law, shall only be used to purch ase capital assets that cannot be prudently acquired from either current revenues or fund balance. The useful life of the asset or project shall exceed the repayment schedule of any debt the Town assumes. The Town shall not use long-term debt to finance current operations. 2.0 Future Bond Proposals – Future bond proposals will be accompanied by an analysis showing how the new issue, combined with current debt, impacts the Town’s debt capacity and conformance with Town debt policies. 3.0 Bond Rating – The Town will seek to maintain, and if possible, improve current bond ratings in order to minimize borrowing costs and preserve access to credit. The Town will encourage and maintain good relations with financial bond rating agencies and will follow a policy of full and open disclosure. 4.0 Utilization of Bond Proceeds – Proceeds from bonded debt will be used in accordance with the purpose of the issuance. Funds remaining after the project is completed will be used in accordance with the provisions stated in the bond ordinance that authorized the issuance of the debt. 25 5.0 Arbitrage Rebate – The Town shall comply with Internal Revenue Service arbitrage rebate requirements for bonded debt. 6.0 Interest Earnings on Bond Proceeds – Interest earnings on bond proceeds will be limited to 1) funding or acquiring the improvement(s), or 2) payment of debt service on the bonds. 7.0 Bond Project Eligibility – All projects funded with bonded debt must be included in the Town’s Capital Improvement Program. 8.0 Bond Refunding – When considering refunding any outstanding bonded debt, either the Town or its financial advisor will perform a cost benefit analysis to determine if the cost savings of refunding will be greater than the cost to refund. Considerations will be made with regard to existing bond covenants when refunding any bonded debt. 9.0 Pledging of Utility Revenues – When utility revenues are pledged as debt service payments, the Town will strive to maintain a 1.3 times debt service coverage ratio to ensure debt coverage in times of revenue fluctuation. This will be in addition to the required ratio of the bond indenture. 10.0 Debt Limit – Article IX, Section 8 of the Arizona Constitution limits the Town’s bonded debt capacity (outstanding principal) to a certain percentage of the Town’s secondary assessed valuation by the type of project to be constructed. The limit for general purpose municipal projects is 6%. For water, light, sewer, open space, public safety, park, law enforcement, fire and emergency services, and streets and transportation facilities projects, the limit is 20%. 11.0 Post-Issuance Compliance – The Town will comply with all post-issuance compliance requirements in conformance with federal tax laws. 12.0 Bonded Indebtedness Report – In accordance with A.R.S. 35-501 and 35-502, new bond and securities issuances will be reported to the State Treasurer within 60 days of issuance. Further, the Town will produce an annual bonded indebtedness report to the Arizona Department of Administration. 26 Town of Oro Valley Policy Fund Balance 1-10 Last Review Review Month Responsible for maintaining & applying this policy: Finance Next Review: ______________________________________________________________________________ Purpose: To establish policy for maintaining the fund balance of various operating funds at sufficient levels to protect the creditworthiness of the Town as well as its financial position for emergencies. Scope: All Personnel Definitions: Nonspendable Fund Balance: That portion of a fund balance that includes amounts that cannot be spent because they are either (a) not in spendable form, such as prepaid items, supplies inventory, or loans receivable; or (b) legally or contractually required to be main tained intact, such as the principal portion of an endowment. Restricted Fund Balance: That portion of a fund balance that reflects constraints placed on the use of resources (other than nonspendable items) that are either (a) externally imposed by creditors, such as debt covenants, grantors, contributors, or laws or regulations of other governments; or (b) imposed by law through constitutional provisions or enabling legislation. Committed Fund Balance: That portion of a fund balance that includes amounts that can only be used for specific purposes pursuant to constraints imposed by formal action of the government’s highest level of decision-making authority and remain binding unless removed in the same manner. Town Council action must be taken on or before June 30 of the applicable fiscal year. Assigned Fund Balance: That portion of a fund balance that includes amounts that are constrained by the government’s intent to be used for specific purposes, but that are neither restricted nor committed. Such intent needs to be established at either the highest level of decision making, or by the Town Manager. Unassigned Fund Balance: That portion of a fund balance that includes amounts which do not fall into one of the above four categories. The General Fund is the only fund that should report this category of fund balance. 27 Policy: 1.0 Committed Fund Balance – The Town shall strive to maintain the General Fund balance at 25% of regular General Fund operating expenditures. After completion of the annual audit, if the fund balance exceeds 25%, the excess must be specifically designated for capital project funding and/or reducing the Town’s Public Saf ety Personnel Retirement System (PSPRS) unfunded actuarial accrued liability (UAAL). 2.0 Use of Fund Balance – Fund Balance shall be used only for emergencies, non-recurring expenditures or major capital purchases that cannot be accommodated through current year savings. Should such use reduce the balance below the appropriate level set as the objective for that fund, restoration recommendations will accompany the decision to utilize said balance. 3.0 Governmental Accounting Standards Board (GASB) Statement No.54 – In accordance with GASB Statement No.54, fund balances will be classified in the following components: 3.1 Nonspendable Fund Balance 3.2 Restricted Fund Balance 3.3 Committed Fund Balance 3.4 Assigned Fund Balance 3.5 Unassigned Fund Balance The following matrix depicts to which classification fund balances of Town governmental funds will be applied: Fund Restricted Committed Assigned Unassigned Comments State & Justice Seizure Funds X Restricted by State Statute Municipal Debt Service Fund X Restricted by Debt Covenants Oracle Road Improvement District Fund X Restricted by Debt Covenants Townwide Roadway Impact Fee Fund X Restricted by State Statute Parks & Recreation Impact Fee Fund X Restricted by State Statute Police Impact Fee Fund X Restricted by State Statute Highway Fund X Restricted by State Constitution & Statute PAG/RTA Fund X Restricted by PAG/RTA Community Center Fund X Committed by Town Council Capital Fund X General Fund Council 25% Reserve Policy on Contingency X Committed by Town Council Planned Use of Fund Balance/Budget Deficit X Bed Tax Collections X Compensated Absences X Unemployment Claims X 4.0 Town Council Authorization – Fund balance reserves may only be appropriated by authorization of the Town Council. 5.0 Utilization Priority – When multiple categories of fund balance reserves are available for expenditure (i.e. a construction project is being funded partly by a grant, funds set aside by Town Council and unassigned fund balance) the Town will start with the most restricted category – spending those funds first – before moving down to the next category with available funds. 28 6.0 Water Enterprise Fund – The Water Enterprise Fund 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. 7.0 Annual Review – All Town budgetary fund designations and reserves will be evaluated annually for long-term adequacy and use requirements in conjunction with development of the Town’s long-term financial forecast. 29 Town of Oro Valley Policy Internal Controls 1-11 Last Review Review Month Responsible for maintaining & applying this policy: Finance Next Review: ______________________________________________________________________________ Purpose: To establish policy for maintaining an internal control structure designed to provide reasonable assurance that Town assets are safeguarded and that the possibilities for material errors in the Town’s financial records are minimized . Scope: All Personnel Definitions: None Policy: 1.0 Proper Authorizations – Procedures shall be designed, implemented, and maintained to ensure that financial transactions and activities are properly monitored, reviewed, and authorized. 2.0 Separation of Duties – Job duties will be adequately separated to reduce to an acceptable level the opportunities for any person to be able to both perpetrate and conceal errors or irregularities in the normal course of assigned duties. 3.0 Proper Recording – Procedures shall be developed and maintained that will ensure financial transactions and events are properly recorded and that all financial reports may be relied upon as accurate, complete and current. 4.0 Access to Assets and Records – Procedures shall be designed and maintained to ensure that adequate safeguards exist over access to and use of financial assets and records. 5.0 Independent Checks – Independent checks and audits will be made on staff performance to ensure compliance with established procedures and proper valuation of recorded amounts. 6.0 Costs and Benefits – Internal control systems and procedures must have an apparent benefit in terms of reducing and/or preventing losses. The cost of implementing and maintaining any control system will be evaluated against the expected benefits to be derived from that system. 7.0 Information Technology – The Town will follow policies and procedures outlined in AD4- 1 Information Security and Computer Usage to minimize risk associated with electronic financial records being compromised. 30 Town of Oro Valley Policy Grants 1-12 Last Review Review Month Responsible for maintaining & applying this policy: Finance Next Review: ______________________________________________________________________________ Purpose: To establish policy for seeking, applying for and effectively administering federal, state and foundation grants which address Town priorities and policy objectives. Scope: All Personnel Definitions: None Policy: 1.0 Grant Guidelines – The Town shall apply for only those grants consistent with the objectives and high priority needs previously identified by the Town Council. The potential for incurring ongoing costs, to include the assumption of support for grant- funded positions from operating revenues, will be considered prior to applying for a grant. 2.0 Indirect Costs – The Town shall attempt to recover full indirect costs unless the funding agency does not allow it to do so. The Town may waive or reduce ind irect costs if it is deemed to be advantageous to the Town. 3.0 Grant Review – All anticipated grant requests will be evaluated by the Town Budget Committee. Federal or State grant requests less than $15,000 will not be considered. All grant submittals shall be reviewed for their cash match requirements, their potential impact on the operating budget, and the extent to which they meet Town policy objectives. If there are cash match requirements, the source of funding shall be identified prior to application submittal. 4.0 Grant Program Termination – The Town shall terminate grant-funded programs and associated positions when grant funds are no longer available unless alternate ongoing funding is identified. 31 Town of Oro Valley Policy Accounting, Auditing, and Financial Reporting 1-13 Last Review Review Month Responsible for maintaining & applying this policy: Finance Next Review: ______________________________________________________________________________ Purpose: To establish policy for complying with prevailing federal, state and local statutes and regulations, as well as current professional standards, principles and practices. Scope: All Personnel Definitions: None Policy: 1.0 Conformance to Accounting Principles and Recommended Practices – The Town accounting practices and financial reporting shall conform to generally accepted accounting principles (GAAP) as promulgated by the Governmental Accounting Standards Board (GASB), and best practices recommended by the American Institute of Certified Public Accountants (AICPA) and the Government Finance Officers Association (GFOA). 2.0 Selection of Auditors – The Town shall request proposals from qualified, independent certified public accounting firms every five years, including the current auditors if their past performance has been satisfactory. The audit firm selected shall perform an annual audit of the books of account, records and transactions, opining on the Basic Financial Statements and Single Audit Report (if necessary). 3.0 Audit Completion – The Town shall strive to have its Comprehensive Annual Financial Report (CAFR), Alternative Expenditure Limitation Report, and Single Audit Report (if necessary) completed and available within 180 days, 270 days, and 270 days, respectively, after the close of its previous fiscal year ending June 30. 4.0 Report Submission to GFOA – The Town shall annually submit its budget to the GFOA Distinguished Budget Presentation Program. Further, the Town shall also annually submit its CAFR to the GFOA Certificate of Achievement for Excellence in Financial Reporting program. Financial and Budgetary Policies The Town of Oro Valley has an important responsibility to its residents to carefully account for public funds, manage its finances prudently and plan for the adequate funding of services desired by the public. Sound financial policies help to ensure the Town’s capability to adequately fund and provide the government services desired by the community. The policies contained herein are designed to foster and support the continued financial strength and stability of the Town of Oro Valley. Following these policies enhances the Town’s financial health as well as its image and reputation with residents, the general public, bond and credit rating agencies and investors. The policies serve as guidelines for the Town’s overall fiscal planning and management. In addition, both the Government Finance Officers Association (GFOA) and the National Advisory Council on State and Local Budgeting (NACSLB) recommend formal adoption of financial policies by the jurisdiction’s governing board. The most recent Town Council amendment and readoption of the policies occurred on June 6, 2018 per Resolution (R)18-25. (Guiding Principles-Page 1) A. Financial Planning Policies A.1 Balanced Budgeting and Fiscal Planning Policies Fiscal planning is the process of identifying resources and allocating those resources among multiple and competing needs. The primary vehicle for this planning is the preparation, monitoring and analysis of the Town’s budget. (No corresponding Crosswalk data items found) The Town shall develop an annual budget whereby recurring Town revenues shall be sufficient to support recurring operating expenditures with no use of General Fund contingency to support ongoing operational expenses. (Section 1-1, Policy 5.0) The Town’s annual budget will include contingency appropriation to provide for unanticipated increases in service delivery costs, emergencies, and needs that may arise through the fiscal year. The contingency appropriation may only be expended upon Council approval. (Section 1-1, Policy 4.0) Budget development will use strategic multi-year fiscal planning; conservative revenue forecasts and a program/performance based budgeting method. This method requires each department to establish fiscal year goals and objectives that will be evaluated to determine the effectiveness and efficiency of both department and Town resources. Utilization of a program/performance budget format will provide a basis for evaluation of service and other impacts of potential increases or decreases in funding. (Section 1-1, Policy 6.0) Monthly budget to actual revenue and expenditure reports will be prepared for all Town funds by the Finance Department and presented to Town Council. The reports will also include revenue and expenditure projections through the end of the fiscal year. (Section 1-3, Policy 1.0) The Town will not use one-time (non-recurring) revenues to fund continuing (recurring) uses or use external borrowing for operational requirements. The budget will incorporate the best available estimates of revenues and expenditures. (Section 1-7, Policy 8.0; Section 1-1 Policy 6.0) EXHIBIT A All budgetary appropriations that have not been expended or lawfully encumbered shall lapse at the end of the fiscal year, June 30th. Appropriations for capital projects in progress at fiscal year- end shall be made for the subsequent fiscal year. (Section 1-1, Policy 9.0) The Town shall work to minimize the financial burden on its taxpayers by routinely evaluating both its administrative and direct service delivery systems in terms of efficiency, effectiveness and responsiveness. Technology shall be utilized when feasible to increase efficiency and cost- effectiveness. (Section 1-1, Policy 6.0) Any fiscal year-end special revenue fund balance amounts in other special revenue funds of the Town shall be maintained, preserved separately, and carried forward within those funds and not considered as part of the contingency reserve requirement for the Town’s General Fund. (No corresponding Crosswalk data items found The Town’s annual budget shall be adopted by the Town Council at the fund level, except in the General Fund, where it shall be adopted at the department level. To provide sufficient control and accountability, budgets shall be prepared and monitored by major expenditure categories (personnel, operations and maintenance, capital outlay, debt service). (A fund is a fiscal and accounting entity with a self-balancing set of accounts recording cash and other financial resources). (No corresponding Crosswalk data items found The Town shall promote the understanding that its employees are its most valuable resource and shall employ sound management practices when planning for service delivery. The Town is committed to maintaining and improving the productivity of staff through a pleasant working environment, appropriate equipment including office automation and computer applications, necessary training and adequate supplies and materials as resources and adopted policies permit. (No corresponding Crosswalk data items found A.2 Long Range Planning As part of the annual Town budget preparation cycle, the Finance Department shall prepare a minimum five-year financial forecast of projected revenues and expenditures to measure the financial sustainability of the Town’s operations and service levels. (Section 1-2, Policy 1.0) A.3 Cash Management & Investment Policy Cash and investment programs will be maintained in accordance with the Town’s adopted Investment Policy and will ensure that proper controls and safeguards are maintained. Town funds are managed with an emphasis of safety of principal, liquidity and financial yield, in that order. (Section 1-4, Purpose) Bond funds will be segregated from all other funds for arbitrage and accounting purposes. (No corresponding Crosswalk data items found Ownership of the Town’s investment securities will be protected through third party custodial safekeeping. (Section 1-4, Policy 5.0) All Town bank accounts shall be reconciled and reviewed on a monthly basis. The Town will consolidate cash balances from various funds for investment purposes, and will allocate investment earnings to each participating fund. This will allow the Town to maximize yields from its overall portfolio. (No corresponding Crosswalk data items found Investment performance will be reviewed and reported on as outlined in the current adopted investment policy. (No corresponding Crosswalk data items found All treasury activities with financial institutions will be conducted based upon written contracts between the Town and the respective financial institution(s). (Section 1-4, Policy 7.3 and 10.0) A.4 Asset Inventory Capital assets are assets with an acquisition cost of $5,000 or more and an estimated useful life of two or more years. Such assets shall be depreciated in the Town’s financial statements over their estimated useful lives. (Section 1-5, Definition of ‘Capital Asset’) Minor assets are assets with an acquisition cost of $1,000 or more but less than $5,000 and an estimated useful life of two or more years. Such assets will not be depreciated in the Town’s financial statements (Section 1-5, definition of Minor Asset” Expendable items are machinery and equipment purchases whose cost is less than $1,000. These items will not be depreciated. (No corresponding Crosswalk data items found The Town will depreciate capital assets using the straight-line depreciation method. (Section 1- 5, Policy 2.) The Town will project equipment and vehicle replacement needs for the next five years and will update this projection each year. Subject to funding availability, Town departments will be charged an annual contribution amount to accumulate funds for this purpose based on a portion of their annual asset depreciation. (No corresponding Crosswalk data items found The Finance Department shall be responsible for verifying the actual physical existence of capital and minor assets and the accuracy of the Town’s asset database. The process will be monitored through asset audits of Town departments and divisions. Any significant irregularities are reported to the Town Manager. (Section 1-5, Policy 8.0) The Town will maintain capital assets and infrastructure at a sufficient level to protect the Town’s investment, to minimize future replacement and maintenance costs, and to continue service levels. (No corresponding Crosswalk data items found B. Revenue Policies B.1 Revenue Diversification The Town will strive for a General Fund revenue base consisting of a balance of sales taxes, state shared revenues, user fees and other revenue sources. (No corresponding Crosswalk data items found The Town will maintain a diversified and stable revenue base to protect against short term fluctuations in any single revenue source and economic changes locally and nationally. (Section 1-7, Policy 1.0) The Town will estimate revenues in a realistic and moderate manner in order to minimize the risk of a revenue shortfall. (Section 1-7, Policy 5.0) B.2 Fees and Charges All non-enterprise user fees and charges shall be examined annually to determine the cost recovery rate. The acceptable recovery rate and any associated changes to user fees and charges will be approved by Town Council or as otherwise specified in Town code. (Section 1-7, Policy 2.0) Development impact fees for capital expenses attributable to new development will be reviewed periodically to ensure the fees recover all direct and indirect development related expenses and be approved by Town Council. (Section 1-7, Policy 3.0) For enterprise fund operations, the Town will establish rates and fees at levels to cover fully the total direct and indirect costs, including operations, capital outlay, debt service, debt coverage requirements and unrestricted cash reserve balances. Enterprise funds will not be used to subsidize the operations of other funds. Interfund charges will be assessed for the administrative support of the enterprise activity. (Section 1-7, Policy 4.0) B.3 Use of One-Time Revenues The Town will utilize one-time (non-recurring) revenues to fund one-time operating expenditures, prepay existing debt, or supplement “pay as you go” capital outlay. One-time revenues shall not be used to fund recurring expenditures. (Section 1-7, Policy 8.0) B.4 Use of Unpredictable Revenues If the Town should receive unpredictable revenues from sales tax audits, unbudgeted grant funding, gifts or donations, the Town shall account for these revenues as one-time revenues. They shall not be used to fund recurring expenditure.(Section 1-7, Policy 9.0) C. Expenditure Policies C.1 Debt Capacity, Issuance and Management The Town will seek to maintain and, if possible, improve its current bond rating in order to minimize borrowing costs and preserve access to credit. The Town will encourage and maintain good relations with financial bond rating agencies and will follow a policy of full and open disclosure. (Section 1-9, Policy 3.0) Future bond issue proposals will be accompanied by an analysis showing how the new issue, combined with current debt, impacts the Town’s debt capacity and conformance with Town debt policies. (Section 1-9, Policy 2.0) The general policy of the Town is to fund capital projects with new, dedicated streams of revenue or voter-approved debt. Non voter-approved debt may be utilized when a dedicated revenue source other than general revenue can be identified to pay debt service expenditures. (No corresponding Crosswalk data items found Financing shall not exceed the useful life of the acquired asset. (Section 1-9, Policy 1.0) The Town shall not use long term debt to finance current operations. (Section 1-9, Policy 1.0) The Town will establish debt repayment schedules with fixed annual principal and interest payments. (No corresponding Crosswalk data items found Proceeds from bonded debt will be used in accordance with the purpose of the issuance. Funds remaining after the project is completed will be used in accordance with the provisions stated in the bond ordinance that authorized the issuance of the debt. (Section 1-9, Policy 4.0) The Town shall comply with the Internal Revenue Service arbitrage rebate requirements for bonded indebtedness. (Section 1-9, Policy 5.0) Interest earnings on bond proceeds will be limited to 1) funding or acquiring the improvement(s) or asset(s) or 2) payment of debt service on the bonds. (Section 1-9, Policy 6.0) All projects funded with bonded debt must be included in the Town’s Capital Improvement Program. (Section 1-9. Policy 7.0) When considering refunding any outstanding bonded debt, the Town will perform a cost benefit analysis to determine if the cost savings of refunding will be greater than the cost to refund. Considerations will be made with regard to the existing bond covenants when refunding any bonded debt. (Section 1-9, Policy 8.0) When utility revenues are pledged as debt service payments, the Town will strive to maintain a 1.3 times debt service coverage ratio to ensure debt coverage in times of revenue fluctuation. This will be in addition to the required ratio in the bond indenture (Section 1-9, Policy 9.0) The Town will communicate, and where appropriate, coordinate with all jurisdictions with which we share a common tax base concerning our collective plans for future debt issues. (No corresponding Crosswalk data items found The Arizona Constitution limits the Town’s bonded debt capacity (outstanding principal) to a certain percentage of the Town’s secondary assessed valuation by the type of project to be constructed. The limit for general purpose municipal projects is 6%. For water, light, sewer, open space, public safety, park, law enforcement, fire and emergency services, and streets and transportation facilities projects, the limit is 20%. (Section 1-9, Policy 10.0) C.2 Capital Improvement Program The purpose of the Capital Improvement Program (CIP) is to systematically identify, plan, schedule, finance, track and monitor capital projects to ensure cost effectiveness as well as conformance to established policies. (Section 1-5, ‘Capital Improvement program’ definition) A minimum ten-year Capital Improvement Program will be developed and updated annually, including anticipated funding sources. Capital improvement projects are defined as infrastructure, equipment purchases or construction which results in or makes improvements to a capitalized asset costing more than $50,000 and having a useful life of five or more years. (Section 1-5, ‘Capital project’ definition) The Capital Improvement Program will include, in addition to estimated operating maintenance expenditures, adequate funding to support repair and replacement of deteriorating infrastructure and avoidance of a significant unfunded liability. (Section 1-5, ‘Purpose statement’) Proposed capital projects will be reviewed and prioritized by a cross-departmental team regarding accurate costing (design, capital and operating) and overall consistency with the Town’s goals and objectives. Financing sources will then be identified for the projects ranking the highest based on the established ranking systems and limited monies. (Section 1-5, Policy 1.0) In order for the Town to provide sustainable funding for capital improvements and asset repair and maintenance needs each year, the annual budget shall include the allocation of a minimum of 5% of the Town’s estimated excise tax collections to fund these needs, subject to Council approval and funding availability. These funds will be accounted for in a separate Capital Fund. (Section 1-5, Policy 6.0) Capital improvement lifecycle costs will be coordinated with the development of the operating budget. Future operating, maintenance and replacement costs associated with new capital improvements will be forecast, matched to available revenue sources and included in the operating budget. (Section 1-5, Policy 4.0) The current fiscal year of the Capital Improvement Program will become the capital budget. (Section 1-5, Policy 4.0) Staff will monitor projects to ensure their timely completion or determine if an adjustment to the Capital Improvement Plan needs to be presented to Council. A quarterly status report will be presented to the Town Council to monitor each project’s progress and identify any significant issues. (Section 1-5, Policy 4.0) C.3 Fund Balance Reserve Policies Fund balance reserves will be established to offset difficult economic times, stabilize fluctuations in cash flow requirements, provide for emergency situations threatening the public health or safety and provide for unanticipated increases in service delivery costs, unanticipated declines in revenues, unforeseen opportunities and contingencies. Use of reserves should be utilized only after all budget sources have been examined for available funds, and subject to Town Council approval. (Section 1-10, Policy 4.0) In accordance with Governmental Accounting Standards Board Statement No. 54, fund balances will be classified in the following components: (Section 1-10, Policy 3.0-3.5) A. Nonspendable Fund Balance: That portion of a fund balance that includes amounts that cannot be spent because they are either (a) not in spendable form, such as prepaid items, supplies inventory or loans receivable; or (b) legally or contractually required to be maintained intact, such as the principal portion of an endowment. (Section 1-10, Definition of ‘Nonspendable fund balance’) B. Restricted Fund Balance: That portion of a fund balance that reflects constraints placed on the use of resources (other than nonspendable items) that are either (a) externally imposed by creditors, such as debt covenants, grantors, contributors, or laws or regulations of other governments; or (b) imposed by law through constitutional provisions or enabling legislation.(Section 1- 10, Definition of ‘Restricted fund balance’) C. Committed Fund Balance: That portion of a fund balance that includes amounts that can only be used for specific purposes pursuant to constraints imposed by formal action of the government’s highest level of decision making authority, and remain binding unless removed in the same manner. (Section 1-10, Definition of Committed Fund balance) D. Assigned Fund Balance: That portion of a fund balance that includes amounts that are constrained by the government’s intent to be used for specific purposes, but that are neither restricted nor committed. Such intent needs to be established at either the highest level of decision making, or by an official designated for that purpose. (Section 1-10, Definition of ‘Assigned Fund Balance’ E. Unassigned Fund Balance: That portion of a fund balance that includes amounts that do not fall into one of the above four categories. The General Fund is the only fund that should report this category of fund balance. (Section 1-10, Definition of Unassigned Fund Balance” The following matrix depicts to which classification fund balances of Town governmental funds will be applied: (Section 1-10, Matrix below Policy 3.0-3.5) Fund Restricted Committed Assigned Unassigned Comments State & Justice Seizure Funds X Restricted by State Statute Muncipal Debt Service Fund X Restricted by Debt Covenants Oracle Road Improvement District Fund X Restricted by Debt Covenants Townwide Roadway Impact Fee Fund X Restricted by State Statute Parks & Recreation Impact Fee Fund X Restricted by State Statute Police Impact Fee Fund X Restricted by State Statute Highway Fund X Restricted by State Constitution & Statute PAG/RTA Fund X Restricted by PAG/RTA Community Center Fund X Committed by Town Council Capital Fund X General Fund Council 25% Reserve Policy on Contingency X Committed by Town Council Planned use of fund balance/budget deficit X Bed tax collections X Compensated absences X Unemployment claims X The Town shall maintain, at a minimum, a fund balance contingency reserve in the General Fund that represents 25% of the General Fund’s annual expenditures with no use of the General Fund contingency to support ongoing operational expenditures. This minimum reserve amount will be incorporated into the General Fund budget adopted by formal action taken by the Town Council. Accordingly, these reserves will be classified as committed fund balances. Any excess funds that accumulate over the 25% balance shall be allocated toward capital project funding and reducing the Town’s Public Safety Personnel Retirement System (PSPRS) unfunded liability. (Section 1-10, Policy 1.0) Fund balance reserves may only be appropriated by authorization of the Town Council. A plan will be developed to adequately replenish reserves when appropriations are projected to reduce reserves below the required minimum levels. (Section 1-10, Policy 2.0) When multiple categories of fund balance reserves are available for expenditure (for example, a construction project is being funded partly by a grant, funds set aside by the Town Council and unassigned fund balance), the Town will start with the most restricted category – spending those funds first – before moving down to the next category with available funds. (Section 1-10, Policy 5.0) The Water Enterprise Fund 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 & 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. (Section 1-10, Policy 6.0) All Town budgetary fund designations and reserves will be evaluated annually for long-term adequacy and use requirements in conjunction with development of the Town’s long-term financial forecast. (Section 1-10, Policy 7.0) C.4 Operating Expenditure Accountability Expenditures will be controlled as outlined in the approved budget. (Section 1-8, Policy 1.0) Department heads are responsible for monitoring expenditures to prevent exceeding their total departmental expenditure budget. It is the responsibility of department heads to immediately notify the Finance Director and Town Manager of any circumstances that could result in a departmental budget being exceeded. (No corresponding Crosswalk data items found The Arizona Constitution sets a limit on the expenditures of local jurisdictions. The Town will comply with these expenditure limitations and will submit an audited expenditure limitation report, audited financial statements and audited reconciliation report as defined by the Uniform Expenditure Reporting System to the State Auditor General within prescribed timelines. (Section 1-8, Policy 6.0) Monthly budget to actual revenue and expenditure reports will be prepared, for all Town funds, by the Finance Department and presented to the Town Council. The reports will also include revenue and expenditure projections through the end of the fiscal year. (Section 1-3, Policy 1.0) To provide flexibility in the management of departmental budgets for major expenditures (personnel, operations & maintenance, capital outlay and debt service) the following budget amendment and transfer provisions shall apply: (Section 1-8, Policy 7.0) A. Transfers between funds shall require the recommendation of the Town Manager and formal action by the Town Council. (Section 1-8, Policy 7.1) B. Transfers between the line items within each major expenditure category shall be permitted upon recommendation of the Department Head and approval by the Town Manager. (Section 1-8, Policy 7.2) C. Transfers between the line items or major expenditure categories to fund additional personnel or increased expenditures as a result of personnel reclassifications shall require the recommendation of the Town Manager and formal action by the Town Council. (Section 1-8, Policy 7.3) D. Transfers between the operations and maintenance and capital outlay major expenditure categories shall be permitted upon recommendation of the Department Head and approval by the Town Manager. (No corresponding Crosswalk data items found E. Transfers that would reduce or eliminate funding for items designated in the adopted Capital Improvement Program shall require the recommendation of the Town Manager and approval of the Town Council. (Section 1-8, Policy 7.4) F. Transfers that would reduce or eliminate funding for debt service shall require the recommendation of the Town Manager and formal Council action. (Section 1-8, Policy 7.5) D. Financial Reporting Policies The Town’s accounting and financial reporting systems will be maintained in conformance with all state and federal laws, generally accepted accounting principles (GAAP) and standards of the Governmental Accounting Standards Board (GASB) and the Government Finance Officers Association (GFOA). (Section 1-13, Policy 1.0) An annual audit of the Town’s financial statements will be performed by an independent certified public accounting firm, with an audit opinion to be included with the Town’s published Comprehensive Annual Financial Report (CAFR). (Section 1-13, Policy 3.0) The Town’s CAFR will be submitted to the GFOA Certification of Achievement for Excellence in Financial Reporting Program. The financial report should be in conformity with GAAP, demonstrate compliance with finance related legal and contractual provisions, disclose thoroughness and detail sufficiency, and minimize ambiguities and potentials for misleading inference. (Section 1-13, Policy 4.0) The Town’s budget will be submitted annually to the GFOA Distinguished Budget Presentation Program. (Section 1-13, Policy 4.0) The budget should satisfy criteria as a financial and programmatic policy document, as a comprehensive financial plan, as an operations guide for all organizational units and as a communications device for all significant budgetary issues, trends and resource choices. Financial systems will maintain internal controls to monitor revenues, expenditures and program performance on an ongoing basis (Section 1-11, Policy 1.0-6.0) FY 2021/22 Financial Policy Approval July 7, 2021 FY 2021/22 FINANCIAL POLICIES GFOA recommends regular and systematic review, updating and approval of financial policies Budget and Finance Commission performed comprehensive and thorough review over four separate meetings New policy includes two separate policies that historically have stood on their own: Investment Policy PSPRS Pension Funding Policy Financial policies are central to a strategic, long-term approach to financial management FINANCIAL POLICY PURPOSE Institutionalize good financial management practices Clarify and crystallize strategic intent for financial management Define boundaries Support good bond ratings and thereby reduce the cost of borrowing Promote long-term and strategic thinking Manage risks to financial condition Comply with established public management best practices Structure and organization has been improved Added Table of Contents Added Policy Purpose, Scope, and Definitions Added numerical structure for policy statements New policies Internal Controls Grants NOTABLE ITEMS Major/Significant Policies Kept In Tact 25% of expenditures General Fund reserve One-time revenues supporting one-time expenditures 10-year CIP 5-year operational forecast Monthly financial reporting to Town Council Quarterly CIP reporting to Town Council Contingency reallocations requiring Town Council authorization Questions?    Town Council Regular Session 3. Meeting Date:07/07/2021   Requested by: Kristy Diaz-Trahan  Submitted By:Kristy Diaz-Trahan, Parks and Recreation Department:Parks and Recreation SUBJECT: DISCUSSION AND POSSIBLE ACTION SETTING PRIORITIES FOR SPECIFIC PROJECTS TO BE INCLUDED WITHIN THE PARKS AND RECREATION BOND RECOMMENDATION: Staff recommends Council identify priority projects with associated amenities to be included within the $25 million Parks and Recreation Bond.    EXECUTIVE SUMMARY: At the May 5, 2021, Regular Town Council meeting, Council approved Ordinance No. (O)21-05, broadening the use of the revenue resulting from the 0.5% increase to the Transaction Privilege Tax currently utilized for the Community Center Fund. The Council subsequently voted to specify that the broadening of this use was intended to allow for bond financing of Parks and Recreation capital projects. During the meeting, Vice Mayor Barrett presented an Example List (Attachment 1 - VM Barrett PPT) of potential projects totaling a projected $21 million; however, Council did not vote to confirm specific projects.   The FY 21/22 budget includes $25 million in projected bond proceeds to finance Parks and Recreation capital projects.  Staff is seeking confirmation from Town Council for specific projects to be included as part of the Bond. Should Council want to include projects different than what is on the Example List, the list of projects reviewed in the Parks and Recreation Master Plan process (Attachment 2 - Master Plan Costs Opinion) is attached for reference. Due to inflation, construction cost volatility, expected design and project management costs, and the unknown Bond interest rate, among other variables, staff recommends priority projects total $20 - $21 million to allow for the remainder of the bond proceeds to be reserved for the other noted costs plus contingency. BACKGROUND OR DETAILED INFORMATION: At the May 5, 2021, Town Council meeting, Council directed staff to include bond financing for capital projects utilizing the 0.5% sales tax that exceeds the amount needed to operate the Cañada, Conquistador and Pusch Ridge golf courses, Community Center and tennis courts according to the following criteria:  At least 50% be allocated toward Naranja Park. The remainder shall be allocated towards exterior community center/golf course improvements, Steam Pump Ranch improvements and allocations toward Amphitheater School District partnership, multi-use paths and/or other high priority needs. Vice Mayor Barrett provided a brief presentation (Attachment 1) that outlined a list of potential projects that could be included in the Bond. These items are listed as follows:  Naranja Park  Earthwork 2 Oversized multi-use fields Splash Pad Basketball and Pickleball Courts Restrooms Restrooms Parking/Entry Road Other (paths, landscape etc.) Community Center Exterior Improvements  Golf Course Irrigation Resurfacing/reconfiguring parking lot Tennis Court Replacement Steam Pump Ranch Improvements Amphitheater Partnership for Little League fields and other amenities Multi-use Paths The presentation also included a preliminary cost estimate totaling $21 million, with the costs taken from the recently completed Parks and Recreation Master Plan. No other projects and/or amenities were discussed. Staff is seeking confirmation of priority projects from Council in order to move forward with the final design and bidding processes. With the current volatility in construction costs, it is unknown whether the $25 million bond will fund all priorities or if additional funding will be required.  The Town Manager will keep Council informed and will bring forward any proposals for additional funding or further prioritization, if necessary, once designs are completed and more detailed cost estimates are developed.  FISCAL IMPACT: The May 5, 2021, Ordinance No. (O)21-05 established bond financing from the excess 0.5% sales tax revenue for the Community Center Fund, which projects to fund approximately $25 million of parks and recreation capital projects. The $25 million bond has been included in the adopted FY21/22 budget.   SUGGESTED MOTION: I MOVE to direct staff to include the following projects/amenities within the Parks and Recreation Bond:   Attachments Attachment 1 - Vice Mayor Barrett PPT  Attachment 2 - Master Plan Costs Opinion  Attachment 3 - MP Exec Summary  Local Sales Tax Collection by Year –Community Center Fund 506,710 2,030,750 2,199,466 2,330,941 2,463,034 2,584,916 2,767,485 2,850,510 2,936,025 3,024,106 3,114,829 3,208,274 - 500,000 1,000,000 1,500,000 2,000,000 2,500,000 3,000,000 3,500,000 FY 14/15 FY 15/16 FY 16/17 FY 17/18 FY 18/19 FY 19/20 FY 20/21 FY 21/22 FY 22/23 FY 23/24 FY 24/25 FY 25/26 Local Sales Tax Collections by Year -Community Center Fund Golf Sales Tax Subsidy –Community Center Fund (364,821) (2,567,385) (2,512,938) (1,993,040) (1,674,187)(1,621,876) (905,284) (3,000,000) (2,500,000) (2,000,000) (1,500,000) (1,000,000) (500,000) - FY 14/15 FY 15/16 FY 16/17 FY 17/18 FY 18/19 FY 19/20 FY 20/21 Golf Sales Tax Subsidy Operating Subsidy Annually subsidy around $1.25M to break-even Difference in sales taxes collected and $1.25M will be available for debt repayment or other uses, as directed by Council. Bond Issuance Expected amount of issuance: $20M to $25M Estimated interest rate: 2% -3% Timetable: Flexible within the next fiscal year Reimbursement resolution for expenses 3 months from beginning to end Bond Proposal Bond financing for capital projects exceeding the amount necessary to operate the golf courses and Community Center. Minimum 50% of the bond will be allocated to Naranja Park. The remainder will go toward: Exterior Community Center and golf improvements Steam Pump Ranch Amphitheater School District Partnership Multi-use paths Other high priority needs Example of $21M Bond Financing Proposal Naranja Park Approximately $11 Million Earthwork $1M 2 Oversize Multi-use Fields $3M $1M Splash Pad $1M Basketball Courts $.4M Pickleball Courts $.7M Restrooms $.7M Parking $2M Entry Road $1.1M Other (Paths, landscape, etc)$1.1M Community Center Exterior Improvements Approximately $6 Million Golf Course Irrigation $4M Resurfaced/Reconfigured Parking $.8M Tennis Court Replacement $1.2M Steam Pump Ranch Approximately $2 Million Amphitheater Partnership for Little League Fields and Other Amenities Approximately $1 Million Multi-use Paths Approximately $1 Million COMMUNITY CENTER AMENITY QUANTITY UNIT UNIT COST TOTAL Enhanced Landscape (Irrigated)2 AC $50,000.00 $100,000.00 Resurfaced/Reconfigured Parking 135,000 SF $6.00 $810,000.00 Updated pool deck, equipment and cover 7,000 SF $75.00 $525,000.00 Tennis Court Replacement 15 EA $75,000.00 $1,125,000.00 $3,352,150.00 LOS Pickleball Court Replacement 6 EA $44,525.00 $267,150.00 $1,044,050.00 NEW Refurbish Shade Structures 1,000 SF $25.00 $25,000.00 New Paved Paths 4.0 MI $215,000.00 $860,000.00 Pickleball Court w/Lighting 2.0 EA $79,525.00 $159,050.00 Play Area 1.0 LS $25,000.00 $25,000.00 Demolition of Existing Pathway/Features/Structures 1 LS $500,000.00 $500,000.00 $4,396,200.00 STEAMPUMP RANCH AMENITY QUANTITY UNIT UNIT COST TOTAL New Market Space/Pavilion 4,000 SF $385.00 $1,540,000.00 Decorative Arch 1 LS $15,000.00 $15,000.00 Restroom 1,200 SF $350.00 $420,000.00 New Market Building 2,500 SF $350.00 $875,000.00 $2,157,250.00 LOS Rehabilited/Refurbished Buildings 1 LS $1,500,000.00 $1,500,000.00 $3,215,000.00 NEW New Parking Area 80 Per Space $3,800.00 $304,000.00 Enhanced Trail Connection 4 EA $10,000.00 $40,000.00 Rentable Picnic Table/Ramada Space 2,100 SF $10.00 $21,000.00 Enhanced Plaza Area 4,000 SF $35.00 $140,000.00 Lawn (Irrigated)5,000 SF $1.45 $7,250.00 Restored Natural Desert Landscape 4 AC $10,000.00 $40,000.00 Refurbished Gravel Parking Lot/Road 55,000 SF $4.00 $220,000.00 Demolition of Existing Pathway/Features 1 LS $250,000.00 $250,000.00 $5,372,250.00 JDK PARK AMENITY QUANTITY UNIT UNIT COST TOTAL Enhanced Landscape (Irrigated)2 AC $50,000.00 $100,000.00 Entry Monument 1 LS $10,000.00 $10,000.00 Lighting (Volleyball Court/Walking Path)1 LS $150,000.00 $150,000.00 Basketball Court w/Lighting 3 EA $96,720.00 $290,160.00 Enhanced Plaza Area 15,000 SF $50.00 $750,000.00 $3,000,000.00 LOS Ramada (Large)7 EA $55,000.00 $385,000.00 $4,918,160.00 NEW Ramada (Small)11 EA $35,000.00 $385,000.00 Restroom 1,200 SF $350.00 $420,000.00 Lawn (Irrigated)100,000 SF $1.45 $145,000.00 Maintenance Facility 10,000 SF $15.00 $150,000.00 New Paved Paths 2.0 MI $215,000.00 $430,000.00 Offleash Dog Park 1 AC $65,000.00 $65,000.00 New Playground 1 LS $750,000.00 $750,000.00 Refurbished Playground 1 LS $400,000.00 $400,000.00 New Parking Area 260 Per Space $3,800.00 $988,000.00 Drainage Improvements 1 LS $500,000.00 $500,000.00 Pool Facility Upgrades 20,000 SF $75.00 $1,500,000.00 Demolition of Existing Pathway/Features/Structures 1 LS $500,000.00 $500,000.00 $7,918,160.00 RIVERFRONT PARK AMENITY QUANTITY UNIT UNIT COST TOTAL Enhanced Landscape (Irrigated)1 AC $50,000.00 $50,000.00 Resurfaced Parking 125,000 SF $4.00 $500,000.00 LED Field Lighting 1 LS $800,000.00 $800,000.00 Updated Concession Stand 900 SF $175.00 $157,500.00 $2,355,500.00 LOS Resurfaced/Covered Basketball Court 1 EA $60,000.00 $60,000.00 $1,372,050.00 NEW New Covered Basketball Court w/Lighting 1 EA $120,000.00 $120,000.00 Updated Open Lawn Amphitheater 20,000 SF $5.00 $100,000.00 Shade Structure (Stage)1,800 SF $35.00 $63,000.00 Resurfaced Paved Paths 1.2 MI $215,000.00 $258,000.00 Lighting (Volleyball Court/Walking Path)1 LS $120,000.00 $120,000.00 Updated Restroom 1,800 SF $100.00 $180,000.00 Splash Pad 5,000 SF $115.00 $575,000.00 Refurbished Playground 1 LS $150,000.00 $150,000.00 Lawn (Irrigated)25,000 SF $1.45 $36,250.00 Entry Road 22,000 SF $12.00 $264,000.00 Refurbished Equestrian Staging Area 1 LS $50,000.00 $50,000.00 New Parking Area 51 Per Space $3,800.00 $193,800.00 Demolition of Existing Pathway/Features/Structures 1 LS $50,000.00 $50,000.00 $3,727,550.00 NARANJA PARK AMENITY QUANTITY UNIT UNIT COST TOTAL Multiuse Field (Lighted)2 EA $1,500,000.00 $3,000,000.00 New Parking Area 630 Per Space $3,800.00 $2,394,000.00 Basketball Court w/Lighting 4 EA $96,720.00 $386,880.00 Pickleball Court w/Lighting 9 EA $79,525.00 $715,725.00 Pump Track 1 LS $150,000.00 $150,000.00 Skate Park 18,000 SF $75.00 $1,350,000.00 New Soft Paths 2 MI $106,000.00 $212,000.00 Splash Pad 8,500 SF $115.00 $977,500.00 Entry Road 90,000 SF $12.00 $1,080,000.00 Ramada (Large)11 EA $55,000.00 $605,000.00 Restroom 2,000 SF $350.00 $700,000.00 Enhanced Landscape (Irrigated)20 AC $50,000.00 $1,000,000.00 Lawn (Irrigated)70,000 SF $1.45 $101,500.00 Restored Natural Desert Landscape 20 AC $10,000.00 $200,000.00 New Paved Paths 3.5 MI $215,000.00 $752,500.00 Lighting (Walking Path)1 LS $500,000.00 $500,000.00 Maintenance Facility 65,000 SF $15.00 $975,000.00 Earthwork 1 LS $1,000,000.00 $1,000,000.00 $16,100,105.00 MULTIUSE PATH (TANGERINE TO RANCHO VISTOSO) (A) AMENITY QUANTITY UNIT UNIT COST TOTAL Multiuse Path (12 ft width)2.1 MI $500,000.00 $1,050,000.00 $1,050,000.00 MULTIUSE PATH (CATALINA STATE PARK CONNECTION) (B) AMENITY QUANTITY UNIT UNIT COST TOTAL Multiuse Path (12 ft width)0.3 MI $500,000.00 $150,000.00 $150,000.00 PEDESTRIAN BRIDGE OVER CDO (C) AMENITY QUANTITY UNIT UNIT COST TOTAL Pedestrian Bridge 1 LS $1,000,000.00 $1,000,000.00 Multiuse Path (12 ft width)0.1 MI $500,000.00 $50,000.00 $1,050,000.00 MULTIUSE PATH (CDO WASH TO JDK PARK) (D) AMENITY QUANTITY UNIT UNIT COST TOTAL Multiuse Path (12 ft width)1.5 MI $500,000.00 $750,000.00 $750,000.00 MULTIUSE PATH (LINDA VISTA) (E) AMENITY QUANTITY UNIT UNIT COST TOTAL Multiuse Path (12 ft width)0.4 MI $500,000.00 $200,000.00 $200,000.00 MULTIUSE PATH (NARANJA DRIVE) (F) AMENITY QUANTITY UNIT UNIT COST TOTAL Multiuse Path (12 ft width)2.0 MI $500,000.00 $1,000,000.00 $1,000,000.00 MULTIUSE PATH (LA CANADA DRIVE) (G) AMENITY QUANTITY UNIT UNIT COST TOTAL Multiuse Path (12 ft width)1.0 MI $500,000.00 $500,000.00 $500,000.00 MULTIUSE PATH (CALLE CONCORDIA) (H) AMENITY QUANTITY UNIT UNIT COST TOTAL Multiuse Path (12 ft width)0.7 MI $500,000.00 $350,000.00 $350,000.00 MULTIUSE PATH (NORTHERN AVENUE TO MAGEE) (I) AMENITY QUANTITY UNIT UNIT COST TOTAL Multiuse Path (12 ft width)1.5 MI $500,000.00 $750,000.00 $750,000.00 MULTIUSE PATH (NORTHERN AVENUE TO TOHONO CHUL) (J) AMENITY QUANTITY UNIT UNIT COST TOTAL Multiuse Path (12 ft width)0.7 MI $500,000.00 $350,000.00 $350,000.00 MULTIUSE PATH (CHAPALA DRIVE) (K) AMENITY QUANTITY UNIT UNIT COST TOTAL Multiuse Path (12 ft width)0.5 MI $500,000.00 $250,000.00 $250,000.00 MULTIUSE PATH (LA CHOLLA BLVD) (L) AMENITY QUANTITY UNIT UNIT COST TOTAL Multiuse Path (12 ft width)1.0 MI $500,000.00 $500,000.00 $500,000.00 MULTIUSE PATH (LAMBERT LANE) (M) AMENITY QUANTITY UNIT UNIT COST TOTAL Multiuse Path (12 ft width)1.0 MI $500,000.00 $500,000.00 $500,000.00 MULTIUSE PATH (RANCHO VISTOSO LOOP) (N) AMENITY QUANTITY UNIT UNIT COST TOTAL Multiuse Path (12 ft width)6.0 MI $300,000.00 $1,800,000.00 $1,800,000.00 MULTIUSE PATH (VISTOSO GOLF CONNECTION) (O) AMENITY QUANTITY UNIT UNIT COST TOTAL Multiuse Path (12 ft width)0.7 MI $500,000.00 $350,000.00 $350,000.00 MULTIUSE PATH (MOORE ROAD) (P) AMENITY QUANTITY UNIT UNIT COST TOTAL Multiuse Path (12 ft width)1.5 MI $500,000.00 $750,000.00 $750,000.00