The URL can be used to link to this page

Home My WebLink AboutPackets - Council Packets (1961)Town Council Meeting Regular Session June 4, 2025 Town Council Meeting Regular Session June 4, 2025 Town Council Meeting Announcements Upcoming meetings Meetings are subject to change. Check the Town website for meeting status. Budget and Finance Commission June 17 at 4 p.m. Council Chambers Planning and Zoning Commission June 17 at 6 p.m. Hopi Conference Room Town Council Regular Session June 18 at 6 p.m. Council Chambers 5 Town Council Meeting Regular Session June 4, 2025 7 Council Reports Town Council Meeting Regular Session June 4, 2025 Oro Valley Water Utility FY 2025-26 Water Rates Presentation June 4, 2025 The Oro Valley Water Utility 10 The Water Utility is an Enterprise Fund Funded solely from water sales, fees and charges All revenues are used for operating costs of the Utility Not dependent on the Town’s General Fund Administrative service fees are paid to the General Fund Water Rates Analysis Process & Goals 11 Goals: Meets revenue, cash reserve & debt service coverage requirements Recovers the cost of service Promotes water conservation & maintains the financial health of the Utility Process: Annually, Utility staff prepares a water rate analysis report that is reviewed by the Water Utility Commission The Commission and Utility staff make a recommendation to Council on the proposed water rates Water Rates Analysis Modeling 12 Rate modeling is in alignment with the General Fund Cost Projections & Water Utility specific Cost Projections General Fund Cost Projections Include ► Employee health care costs ► Employee wage adjustments ► Administrative fees ► Interest rates ► Inflation rates ► Growth rates Water Utility specific Cost Projections Include ► Maintain current staffing levels ► Water resource costs ► Cash funding existing system CIP ► Water use trends ► Regulatory compliance costs ► Debt management (Operating / GPF / Impact Fees) Rate Drivers over the 5-year projection window 13 What is driving a water rate increase? Increasing water resource costs: CAP deliveries (up $257,450 / 8.9%) Cash funding existing system improvements over the 5-year projection period without issuing any new debt ($10.8 M) – Pay as you go Maintain adequate cash reserve balance for unplanned expenses Cash reserve requirements Utility must maintain an operating cash reserve requirement of 20% of personnel, O&M and debt Cash reserves at end of FY must exceed cash reserve requirement Proposed Potable & Reclaimed Water Rates & Fees 14 Potable Water Rates & Fee Recommendations: Increases to potable water base rates Increases to potable water commodity rates (Tiers 1&2), commercial & master-metered multifamily No other changes to potable water rates or fees Reclaimed Water Rates & Fee Recommendations: No increases to reclaimed water base rates No increases to reclaimed water commodity rates No other changes to reclaimed water rates or fees Proposed Potable Water Rates & Fees Proposed Potable Water Base Rate Increases: Water base rates increase by meter size: 84% of customers have a 5/8-inch meter and will see a $1.11 per month increase in the base rate Proposed Potable Water Commodity Rate Increases: Commodity rates: The commodity rate is based on consumption tiers as shown to the right Meter Size Current Proposed Monthly (in inches)Potable Base Rates Potable Base Rates Increase 5/8 $ 22.20 $ 23.31 $ 1.11 (5%) 3/4 $ 33.27 $ 34.93 $ 1.66 (5%) 1 $ 55.46 $ 58.23 $ 2.77 (5%) 1.5 $ 110.92 $ 116.47 $ 5.55 (5%) 2 $ 177.48 $ 186.35 $ 8.87 (5%) 3 $ 354.93 $ 372.68 $ 17.75 (5%) 4 $ 554.60 $ 582.33 $ 27.73 (5%) 6 $1,109.19 $1,164.65 $ 55.46 (5%) 8 $1,774.71 $1,863.45 $ 88.74 (5%) Commodity Tiers Current Proposed Increase Tier 1 $ 2.92 $ 3.02 $ 0.10 (3.5%) Tier 2 $ 4.85 $ 5.02 $ 0.17 (3.5%) Tier 3 $ 8.17 $ 8.17 $ 0.00 (0.0%) Tier 4 $ 12.32 $12.32 $ 0.00 (0.0%) Potable Water Cost Comparisons 16 Monthly water bill comparisons to other water providers: 84% of Oro Valley Water Utility customers have a 5/8-inch meter and consume an average of 7,000 gallons per month These customers will see an increase to their monthly bill of $1.81 or 3.6% increase Water Provider Cost for 7,000 Gallons Cost for 15,000 Gallons Cost for 25,000 Gallons Cost for 40,000 Gallons Oro Valley Current $49.64 $96.44 $184.82 $355.57 Oro Valley Proposed $51.45 (3.6%)$99.61 (3.3%)$188.61 (2.1%)$358.91 (.9%) Metro Water $57.10 $105.10 $179.65 $307.90 Marana Water $55.50 $104.56 $179.26 $319.81 Tucson Water $56.74 $139.10 $288.21 $581.49 In Closing 17 Recommendation for approval: The Water Utility Commission and Water Utility staff respectfully recommend approval of water rate increases to the potable base rates & potable commodity rates If the proposed rates are approved, they will become effective July 5th and will be reflected on the water bills beginning in August of the new fiscal year 18 Questions? Town Council Meeting Regular Session June 4, 2025 FY 2025/26 Tentative Budget Adoption June 4, 2025 FY 2025/26 TENTATIVE BUDGET Tentative Budget totals $151,499,550 $4,352,889 increase from the Recommended Budget $664.297, or 0.4%, increase from the FY 2024/25 Adopted Budget FY2025/26 expenditure limitation calculated by Economic Estimates Commission: $175,243,841 General Fund Budget totals $54,616,627 $727,908 increase from the Recommended Budget ($53,888,719) $1,513,789, or 2.9%, increase from FY 2024/25 Adopted Budget ($53,102,838) Tentative Budget brings forward all changes from Manager’s Recommended Budget as outlined in the Council communication, including updated and revised CIP budget figures If approved, Tentative Budget establishes the overall expenditure limitation Structurally balanced budget reflects the careful allocation of available resources Estimated Ending Fund Balances Beginning Fund Balance Revenue Transfers In Personnel O&M Capital Debt Service Contingency Total Budget Appropriation Transfers Out Ending Fund Balance General Fund 18,933,292 57,408,739 - 37,454,076 14,951,551 211,000 - 2,000,000 54,616,627 7,288,279 16,437,125 Special Revenue Funds Community Center Fund 2,286,821 11,192,213 - 1,309,228 6,738,334 2,643,700 229,060 500,000 11,420,322 1,716,268 842,444 Highway Fund 1,453,238 4,623,169 2,000,000 1,348,218 1,317,935 4,790,000 - 200,000 7,656,153 - 620,254 Seizures & Forfeitures 342,860 40,000 - - 100,000 - - 282,860 382,860 - 282,860 Debt Service Fund 91,502 126,504 3,918,566 - 10,000 - 4,013,070 100,000 4,123,070 - 113,502 Capital Project Funds Capital Fund 16,868,939 1,538,926 5,000,000 - - 6,417,864 - 6,500,000 12,917,864 2,234,200 14,755,801 Grants & Contributions 17,815 1,689,950 361,950 - 771,500 1,171,000 - 100,000 2,042,500 - 127,215 TWDIF Fund 3,225,739 588,915 - - 4,287 746,945 - 300,000 1,051,232 - 3,063,422 PAG/RTA Fund 447,141 44,000 - - 80,000 75,000 - 120,000 275,000 - 336,141 Parks & Rec Impact Fee Fund 393,909 382,897 - - 2,001 250,000 - 185,000 437,001 - 524,805 Police Impact Fee Fund 164,209 107,596 - - 572 - - 50,000 50,572 38,765 232,468 Rec In Lieu Fee Fund 18,776 800 - - - - - 18,216 18,216 - 19,576 Internal Service Funds Benefit Self Insurance Fund 3,921,356 4,079,376 - - 4,884,557 - - 500,000 5,384,557 - 3,116,175 Enterprise Funds Water Utility Fund 15,576,746 22,088,000 - 3,982,137 11,552,175 2,327,639 3,890,977 500,000 22,252,928 9,883,004 6,028,814 WRSDIF Fund 15,489,306 1,105,078 9,880,000 - 181,144 24,964,494 804,494 500,000 26,450,132 - 524,252 Stormwater Utility Fund 936,669 1,786,200 - 1,007,761 444,755 718,000 - 250,000 2,420,516 - 552,353 80,168,318 106,802,363 21,160,516 45,101,420 41,038,811 44,315,642 8,937,601 12,106,076 151,499,550 21,160,516 47,577,207 SOURCES USES FY 25/26 Tentative Budget - $151,499,550 By Category:By Function: FY 25/26 Tentative General Fund Budget - $54,616,627 By Category:By Function: FY 25/26 Sources: $151,499,550 FY 25/26 Capital Improvement Program (CIP): $44,541,642 Water System $27.2M, 61.1% Streets/Roads $5.8M, 13% Parks & Recreation $5.2M, 11.6% Public Facilities, Vehicles & Equipment $5.1M, 11.4% Stormwater $0.7M, 1.5% Public Safety $0.6M, 1.4% Final Notes and Next Steps Tentative Budget adoption sets the maximum spending ceiling at $151,499,550 Once approved, expenditure authority may only be reallocated or reduced Council has authority to amend budget throughout the fiscal year (but cannot increase expenditure authority) Publish Tentative Budget for two consecutive weeks Final Budget approval and public hearing set for June 18th regular session Town Council Meeting Regular Session June 4, 2025 Tourism Advisory Commission Paul Melcher, Community and Economic Development Director 30 Tourism Advisory Commission Purpose The 5-member Tourism Advisory Commission primarily advises the Town Council on: 1)Items related to tourism and hospitality issues, 2)Reviews the Town’s Tourism Plans and Strategies, 3)Tourism Budgets, and 4)May also study and make recommendations to Town Council on topic-specific items as requested by resolution of the Town Council or by the Town Manager. Councilmember Murphy would serve as Town Council liaison to the Commission. 31 Meetings For the first 12 months after the Commission’s formation: 1)Meetings will be held monthly on the third Monday of each month. 2)At the end of the twelve-month period, the regular meeting will be held on a quarterly basis on the third Monday of that month. 32 Initial Commission Agenda 1.Resort/Hotel Support Updates 2.Sports Tourism Lead Pipeline Review 3.Strategy, Marketing, and Website 4.Special Events 5.Sponsorships 6.Budget Review 33 Questions Paul Melcher, Community and Economic Development Director Town Council Meeting Regular Session June 4, 2025 Town Council Meeting Regular Session June 4, 2025