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HomeMy WebLinkAboutPackets - Council Packets (1975)       *AMENDED (9/30/25, 2:30 PM) AGENDA ORO VALLEY TOWN COUNCIL REGULAR AND STUDY SESSION OCTOBER 1, 2025 ORO VALLEY COUNCIL CHAMBERS 11000 N. LA CAÑADA DRIVE For information on public comment procedures, please see the instructions for in person and/or virtual speakers at the end of the agenda. To watch and/or listen to the public meeting online, please visit https://www.orovalleyaz.gov/town/departments/town-clerk/meetings-and-agendas 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   MAYOR AND COUNCIL REPORTS ON CURRENT EVENTS   TOWN MANAGER'S REPORT ON CURRENT EVENTS   ORDER OF BUSINESS: MAYOR WILL REVIEW THE ORDER OF THE MEETING   INFORMATIONAL ITEMS   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   CONSENT AGENDA (Consideration and/or possible action)   A.Minutes - September 17, 2025   B.Appointment to the Stormwater Utility Commission (SWUC)   REGULAR AGENDA   1.PUBLIC HEARING: ORDINANCE NO. (O)25-06, DISCUSSION AND POSSIBLE ACTION TO ADOPT CHANGES TO TOWN CODE SECTION 6-1-7 RESIDENTIAL CODE AND 6-1-10 PROPERTY MAINTENANCE CODE TO AMEND AND CLARIFY INTENT TO ADD TWO EXCEPTIONS: 2024 IRC SECTION 105 PERMITS, AND 106 CONSTRUCTION DOCUMENTS AND REVISE 2024 IPMC SECTION 303.2 ENCLOSURES   2.PUBLIC HEARING: ORDINANCE NO. (O)25-07, DISCUSSION AND POSSIBLE ACTION REGARDING TOWN CODE AMENDMENTS TO CHAPTER 10, OFFENSES, ARTICLE 10-1-4, NOISE, AND ZONING CODE CHAPTER 27.9, GRADING, TO REFLECT RECENT STATE LAW CHANGES REGARDING PERMITTED CONSTRUCTION HOURS   3.*PUBLIC HEARING: ORDINANCE NO. (O)25-08, DISCUSSION AND POSSIBLE ACTION REGARDING HIRING A TOWN ATTORNEY WHO REPORTS TO TOWN COUNCIL INCLUDING DISCUSSION AND POSSIBLE ACTION ON ANY CODE AMENDMENTS TO ORO VALLEY TOWN CODE 3-2-5 NECESSARY TO EFFECTUATE SUCH CHANGE   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 OF THE REGULAR SESSION   STUDY SESSION   CALL TO ORDER   STUDY SESSION AGENDA   1.DISCUSSION ONLY REGARDING THE FOLLOWING: NEW TAX CATEGORIES (USE, COMMERCIAL RENTAL, AND TELECOMMUNICATIONS) AND RATES A. PARKS AND RECREATION FEE INCREASESB. STORMWATER UTILITY FEE INCREASEC.   2.DISCUSSION REGARDING PROPOSED CODE AMENDMENTS TO REFLECT RECENT STATE LAW CHANGES REGARDING THE APPROVAL PROCESS FOR CERTAIN DEVELOPMENT APPLICATIONS   ADJOURNMENT   POSTED: 9/26/25 at 5:00 p.m. by ck AMENDED AGENDA POSTED: 9/30/25 at 3:30 p.m. by ck The Mayor and Council may, at the discretion of the meeting chairperson, discuss any Agenda item. 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. PUBLIC COMMENT ON AGENDA ITEMS The Town has modified its public comment procedures for its public bodies to allow for limited remote/virtual comment via Zoom. The public may provide comments remotely only on items posted as required Public Hearings, provided the speaker registers 24 hours prior to the meeting. For all other items, the public may complete a blue speaker card to be recognized in person by the Mayor, according to all other rules and procedures. Written comments can also be emailed to Town Clerk Michael Standish at mstandish@orovalleyaz.gov for distribution to the Town Council prior to the meeting. Further instructions to speakers are noted below. INSTRUCTIONS TO IN-PERSON SPEAKERS Members of the public shall be allowed to speak on posted public hearings and during Call to Audience when attending the meeting in person. The public may be allowed to speak on other posted items on the agenda at the discretion of the Mayor. If you wish to address the Town Council on any item(s) on this agenda, please complete a blue speaker card located on the Agenda table at the back of the room and give it to the Town Clerk. Please indicate on the blue speaker card which item number and topic you wish to speak on, or, if you wish to speak during Call to Audience, please specify what you wish to discuss. Please step forward to the podium when the Mayor calls on you to address the Council. 1. For the record, please state your name and whether or not you are a Town resident. 2. Speak only on the issue currently being discussed by Council. You will only be allowed to address the Council one time regarding the topic being discussed. 3. Please limit your comments to 3 minutes. 4. During Call to Audience, you may address the Council on any matter that is not on the agenda. 5. Any member of the public speaking must speak in a courteous and respectful manner to those present. INSTRUCTIONS TO VIRTUAL SPEAKERS FOR PUBLIC HEARINGS Members of the public may attend the meeting virtually and request to speak virtually on any agenda item that is listed as a Public Hearing. If you wish to address the Town Council virtually during any listed Public Hearing, please complete the online speaker form by clicking here https://forms.orovalleyaz.gov/forms/bluecard at least 24 hours prior to the start of the meeting. You must provide a valid email address in order to register. Town Staff will email you a link to the Zoom meeting the day of the meeting. After being recognized by the Mayor, staff will unmute your microphone access and you will have 3 minutes to address the Council. Further instructions regarding remote participation will be included in the email. Thank you for your cooperation.    Town Council Regular Session A. Meeting Date:10/01/2025   Submitted By:Michelle Stine, Town Clerk's Office Department:Town Clerk's Office SUBJECT: Minutes - September 17, 2025 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 September 17, 2025, minutes.  Attachments 9-17-25 Draft Minutes  D R A F T   MINUTES ORO VALLEY TOWN COUNCIL REGULAR SESSION SEPTEMBER 17, 2025 ORO VALLEY COUNCIL CHAMBERS 11000 N. LA CAÑADA DRIVE            REGULAR SESSION AT OR AFTER 5:00 PM   CALL TO ORDER    Mayor Winfield called the meeting to order at 5:01 p.m.   ROLL CALL Present: Joseph C. Winfield, Mayor Harry Greene, Councilmember Mary Murphy, Councilmember Elizabeth Robb, Councilmember Absent:Melanie Barrett, Vice-Mayor Joyce Jones-Ivey, Councilmember Josh Nicolson, Councilmember EXECUTIVE SESSION   1.Pursuant to A.R.S. §38-431.03 (A)(1) and (A)(3) Personnel matter - Town Manager performance review       Motion by Mayor Joseph C. Winfield, seconded by Councilmember Harry Greene to go into Executive Session at 5:02 p.m., pursuant to A.R.S. §38-431.03 (A)(1) and (A)(3) Personnel matter — Town Manager performance review.  Vote: 4 - 0 Carried    Mayor Winfield announced that the following staff members would be joining the Council in the Executive Session: Town Manager Jeff Wilkins, Town Attorney Nathan Rothschild, and Town Clerk Mike Standish.   RESUME REGULAR SESSION AT OR AFTER 6:00 PM   9/17/25 Minutes, Oro Valley Town Council Regular Session  1           CALL TO ORDER    Mayor Winfield resumed the regular session at 6:02 p.m.   ROLL CALL     Present: Joseph C. Winfield, Mayor Harry Greene, Councilmember Mary Murphy, Councilmember Josh Nicolson, Councilmember (Attended via Zoom) Elizabeth Robb, Councilmember Absent: Melanie Barrett, Vice-Mayor Joyce Jones - Ivey, Councilmember   1.APPROVAL OF ANY DIRECTION TO THE TOWN ATTORNEY AND/OR NECESSARY STAFF AS DISCUSSED IN EXECUTIVE SESSION PERTAINING TO THE PERFORMANCE REVIEW OF THE TOWN MANAGER       Motion by Mayor Joseph C. Winfield, seconded by Councilmember Mary Murphy to move as directed in Executive Session.  Vote: 5 - 0 Carried   PLEDGE OF ALLEGIANCE    Mayor Winfield led the audience in the Pledge of Allegiance.   UPCOMING MEETING ANNOUNCEMENTS    Town Clerk Mike Standish announced the upcoming Town meetings and events.   MAYOR AND COUNCIL REPORTS ON CURRENT EVENTS    Vice Mayor Barrett joined the meeting via Zoom at 6:05 p.m. Councilmember Robb recognized Collin Little, an 8th grader at Wilson K-8 school, for his outstanding academics and community involvement. Councilmember Greene reported that he attended the All Seasons Oro Valley 5-Year Anniversary ribbon cutting event, which was held on Friday, September 5, 2025. Councilmember Murphy reported that Oro Valley had held their first ever Tourism Advisory Commission meeting, on Monday, September 15, 2025. Mayor Winfield reported that he had attended the Arizona Heroes Memorial Board's 9/11 Recognition Day event. The event included special guest speakers who recounted memories of 9/17/25 Minutes, Oro Valley Town Council Regular Session  2  their 9/11 experiences 24 years ago. Mayor Winfield encouraged residents to support the Arizona Heroes Memorial Board for future events at that Arizona Heroes Memorial site. Councilmember Robb reported that she had attended the Pusch Ridge Tennis Facility Event Space ribbon-cutting ceremony, which officially marked the completion of the Pusch Ridge Tennis Facility Event Space. Councilmember Robb also reported that she had attended the El Presidio Chapter of the Daughters of The American Revolutions Constitution Week event to commemorate the signing of the U.S. Constitution. The Bells Across America event was held on September 17, 2025, at the Oro Valley Public Library, where Councilmember Robb presented a proclamation to proclaim the week of September 17 through September 23, 2025, as Constitution Week in Oro Valley.   TOWN MANAGER'S REPORT ON CURRENT EVENTS    Town Manager Jeff Wilkins reported on the following: Information regarding the Oro Valley Community Academy Information on the proposed new taxes and fees for Oro Valley Information regarding a Russian Thistle weed pull event Oro Valley State of the Town event will be held on October 30, 2025. Friday night concert series update Information on upcoming Town events   ORDER OF BUSINESS    Mayor Winfield reviewed the order of business and stated that it would stand as posted.   INFORMATIONAL ITEMS    There were no informational items.   CALL TO AUDIENCE    Oro Valley resident Rick Bolash voiced his concerns regarding the lack of development at the Oro Valley Market Place. Oro Valley resident Tony D'Angelo provided an update regarding efforts to explore bringing a world-class performing arts center to Oro Valley.   PRESENTATIONS   1.Proclamation - National Service Dog Month       Mayor Winfield proclaimed the month of September 2025 as National Service Dog Month in the Town of Oro Valley. Ms. Debbie Vanzee accepted the proclamation on behalf of service dog handlers in Oro Valley.   9/17/25 Minutes, Oro Valley Town Council Regular Session  3    2.Presentation of the Charter for the new Disabled American Veterans Chapter 39, Oro Valley       Mayor Winfield welcomed the Charter for the new Disabled American Veterans Chapter 39, Oro Valley. The State Commander for the Disabled American Veterans presented the Chapter 39 charter to Commander William Jarvis of Chapter 39, Oro Valley.   3.Presentation and possible discussion of the Town's FY 24/25 Quarterly Financial Update through June 2025       Chief Financial Officer Dave Gephart presented this item and included the following: General Fund Highway Fund Community Center Fund Capital Fund Water Utility Fund Stormwater Utility Fund Golf Analysis Consolidated Year-to-Date Financial Report through June General Fund Local Sales Tax Collections General Fund State Shared Revenues Debt Service Expense Operation Investment Summary Development Impact Fee Fund Projects   CONSENT AGENDA   A.Minutes - September 3, 2025      B.Resolution No. (R)25-47, authorizing the Chief of Police to sign and enter into, on behalf of the Town, an Intergovernmental Agreement (IGA) between the Town of Oro Valley and the City of Tucson for use of the Southern Arizona Law Enforcement Training center; and directing the Town Manager, Chief of Police, 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       Motion by Mayor Joseph C. Winfield, seconded by Councilmember Harry Greene to approve Consent items (A) and (B).  Vote: 6 - 0 Carried   REGULAR AGENDA   2.DISCUSSION AND POSSIBLE ACTION REGARDING THE VISTOSO TRAILS NATURE PRESERVE DESERT ECOSYSTEM RESTORATION PROJECT       Deputy Parks and Recreation Director Matt Jankowski provided a brief overview of item #2 and 9/17/25 Minutes, Oro Valley Town Council Regular Session  4   Deputy Parks and Recreation Director Matt Jankowski provided a brief overview of item #2 and introduced Ms. Rebeca Field with Kimley-Horn. Ms. Field presented the following information: Agenda Next Steps Update on Progress Restoration Area Seed Mix - Sonoran Upland Seed Mix - Low -Grow Site/Pond Design Planting Design - Trees Planting Design — Shrubs Planting Design - Accents Preliminary Costs: Golf Course Restoration, Driving Range & Cart Path Shoulder Improvements Preliminary Cost Assessment: 2.5 Acre Pond Next Steps Discussion ensued amongst Council, staff, and Ms. Field regarding item #2. Councilmember Nicolson joined the meeting in person at 6:54 p.m. during Ms. Fields presentation. Mayor Winfield reiterated that the best scenario for a shovel in the ground would be April 2026 for this project, and, if possible, work to have a shovel in the ground a month early, by March 2026.    The following individuals spoke regarding item #2. Oro Valley resident Phil Zielinski Oro Valley resident Richard Beam Oro Valley resident Eileen Rubelmann Oro Valley resident Matt Wood Oro Valley resident Charlene Donovan Oro Valley resident Tom Stegman Oro Valley resident Madeline Dailey Oro Valley resident Rosa Dailey Oro Valley resident Charles Stack Oro Valley resident Joe Bell Discussion continued amongst Council, staff and Ms. Field regarding item #2. Mayor Winfield requested that Town Manager Jeff Wilkins work with staff and Ms. Field to look at the project as a whole, and then, based on that, make a reasonable decision about what minimal parking is needed at this particular site. Mayor Winfield recessed the meeting at 7:59 p.m. Mayor Winfield reconvened the meeting at 8:16 p.m.   3.DISCUSSION AND POSSIBLE ACTION ON THE COMMUNITY COMMENT (60%) DRAFT OF THE COMMUNITY'S NEXT 10-YEAR ACTION PLAN, KNOWN AS OV'S PATH FORWARD       Principal Planner Milini Simms presented item #3 and included the following: 9/17/25 Minutes, Oro Valley Town Council Regular Session  5   Principal Planner Milini Simms presented item #3 and included the following: Purpose Creating the Draft Plan Going from a 30% to a 60% draft Clarify and Broaden Land Use Map Neighborhood Commercial Office (NCO) Designation and Amendment Process Building Height Guiding Principle The BIG Community Review Next Steps Summary and Possible Motion The following individuals spoke regarding item #3. Oro Valley resident Bill Rodman Oro Valley resident Joe Erceg Oro Valley resident and President and CEO of the Greater Oro Valley Chamber of Commerce Kristen Sharp Discussion ensued among Council and staff regarding the Community's next 10-Year Action Plan, known as OV's Path forward. Vice Mayor Barrett joined the meeting in person during the presentation for item #3.    Motion by Councilmember Elizabeth Robb, seconded by Councilmember Mary Murphy to accept the OV's Path Forward Community Comment (60%) DRAFT, with the option three (3) for the height guiding principle for the community to consider as part of their review, and direct staff to draft additional sustainability goals, principles, and action items to reflect support for small-scale food production and animal husbandry.  Vote: 6 - 0 Carried   4.DISCUSSION AND POSSIBLE ACTION TO INITIATE A GENERAL PLAN AMENDMENT AND REZONING (PLANNED AREA DEVELOPMENT AMENDMENT) FOR THE TOWN CENTRE PLANNED AREA DEVELOPMENT AS IT APPLIES TO THE TOWN-OWNED PROPERTY (AREAS 3 AND 4) LOCATED EAST OF THE INTERSECTION OF ORACLE ROAD AND PUSCH VIEW LANE       Principal Planner Michael Spaeth presented item #4 and included the following: Purpose Oro Valley Town Centre map Background — Oro Valley Town Centre PAD Background — PAD Zoning Area 3 Background — PAD Zoning Area 4 Potential Amendments in line with request Summary Discussion ensued among Council and staff regarding item #4.    Motion by Mayor Joseph C. Winfield, seconded by Councilmember Mary Murphy to initiate the 9/17/25 Minutes, Oro Valley Town Council Regular Session  6   Motion by Mayor Joseph C. Winfield, seconded by Councilmember Mary Murphy to initiate the requested General Plan Amendment and rezoning for the Town Centre PAD to achieve the following: Consider building heights in Area 3 to 30 feet + 10 feet to 39 feet + 10 feet to include commercial and residential 1. Limit maximum building heights of hotel uses in Area 3 to 39 feet + 10 feet for architectural features 2. Remove first floor commercial requirement for multi-family residential uses in Area 33. Change the permitted uses in Area 4 to open space and other limited recreational uses4. Expand an appropriate area for commercial zoning in the area along Oracle Road, immediately south and adjacent to Area 2 5. Vice Mayor Barrett requested a friendly amendment to have Area 3 designated Neighborhood Commercial Office. Mayor Winfield approved the friendly amendment, seconded by Councilmember Murphy. Councilmember Robb requested a friendly amendment to add another area south called Area 6. Mayor Winfield approved the friendly amendment, seconded by Councilmember Murphy.    Motion by Mayor Joseph C. Winfield, seconded by Councilmember Mary Murphy FINAL MOTION AS AMENDED, to initiate the requested General Plan Amendment and rezoning for the Town Centre PAD to achieve the following: Consider building heights in Area 3 to 30 feet + 10 feet, to 39 feet + 10 feet to include commercial and residential 1. Limit maximum building heights of hotel uses in Area 3 to 39 feet + 10 feet for architectural features 2. Remove first floor commercial requirement for multi-family residential uses in Area 33. Change the permitted uses in Area 4 to open space and other limited recreational uses4. Expand an appropriate area for commercial zoning in the area along Oracle Road, immediately south and adjacent to Area 2 5. To have Area 3 designated Neighborhood Commercial Office6. To add another area south called Area 67.  Vote: 6 - 0 Carried   5.RESOLUTION NO. (R)25-48, DISCUSSION AND POSSIBLE ACTION TO MOVE THE GENERAL FUND RESERVE POLICY BACK TO 25%       Motion by Vice-Mayor Melanie Barrett, seconded by Councilmember Josh Nicolson to approve Resolution No. (R)25-48, and allocate the additional one-time revenue that is created by this change to the purchase of the police station. Vice Mayor Barrett provided the reason for requesting this item. Discussion ensued among Council and staff regarding item #5. Town Attorney Nathan Rothschild requested that the motion be clarified.    Motion by Vice-Mayor Melanie Barrett, seconded by Councilmember Josh Nicolson FINAL MOTION, to approve Resolution No. (R)25-48, and allocate the additional one-time revenue that is created by this change to the purchase of the police station, and with the amendment to the Town finance procedures, that the one-time saving of the 5% will go to the Capital Fund. In future years, any amounts above 25% will proceed according to the funding policy.  Vote: 6 - 0 Carried 9/17/25 Minutes, Oro Valley Town Council Regular Session  7    FUTURE AGENDA ITEMS    Vice Mayor Barrett requested a future agenda item for the October 1, 2025, Regular Session, for discussion and possible action regarding hiring a Town Attorney who reports to the Town Council. Seconded by Councilmember Nicolson.   ADJOURNMENT    Motion by Mayor Joseph C. Winfield, seconded by Vice-Mayor Melanie Barrett to adjourn the meeting at 9:26 p.m.  Vote: 6 - 0 Carried     ______________________________________ Michelle Stine, MMC, CPM 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, Arizona held on the 17th day of September 2025. I further certify that the meeting was called and held and that a quorum was present. ______________________________________ Michael Standish, MMC Town Clerk 9/17/25 Minutes, Oro Valley Town Council Regular Session  8     Town Council Regular Session B. Meeting Date:10/01/2025   Submitted By:Michelle Stine, Town Clerk's Office Department:Town Clerk's Office SUBJECT: Appointment to the Stormwater Utility Commission (SWUC) RECOMMENDATION: Outlined below is information for the Stormwater Utility Commission with regard to the appointment recommendation:  Stormwater Utility Commission (SWUC) The SWUC interview panel has recommended the following appointment to fill a partial term expiring 12/31/2026:  Robert Aguayo EXECUTIVE SUMMARY: N/A BACKGROUND OR DETAILED INFORMATION: The application for the prospective new commission member is attached. FISCAL IMPACT: N/A SUGGESTED MOTION: I MOVE that Robert Aguayo be appointed to the Stormwater Utility Commission (SWUC), for a partial term effective October 2, 2025, and that this partial term shall not be counted against the term limits established by the Town Council Parliamentary Rules and Procedures.  Attachments Robert Aguayo Application  Submit Date: Jul 29, 2025 First Name Middle Initial Last Name Suffix Email Address Street Address Suite or Apt City State Postal Code Primary Phone Alternate Phone Town of Oro Valley Boards & Commissions Profile Are you a full time Oro Valley resident (resides in Oro Valley 6 or more months a year) * Yes Number of years in Oro Valley (If less than 1 year, please state the number of months followed by Mo.) AZ Which Boards would you like to apply for? Storm Water Utility Commission: Submitted Interests & Experiences Please list your volunteer services in Oro Valley and with other organizations including any boards or commissions on which you have served : (board/commission , civic, educational, cultural, social, etc.) Knights of Columbus at St Mark's in Oro valley Adopt a street program Through my job, volunteering monthly all over Tucson How does your previous volunteer service prepare you for the board or commission appointment for which you have applied? Please describe an issue considered at a meeting of the Board or Commission for which you are applying. For me it's the aspect of giving back and caring. So when it comes to the city I live in, being a part of it in one way or another is a way that I can give back and care for it Robert Aguayo Oro Valley AZ 85737 Mobile: Home: Robert Aguayo Upload a Resume Please attach any additional documents here Briefly describe your educational/vocational background. College graduate at UCSB in California Have you attended the Community Academy or CPI? Yes No If yes, what year? If no, are you willing to attend and complete the Community Academy within your first full term? Yes No Please Agree with the Following Statement I agree that the information provided in my application is true and correct I Agree * Robert Aguayo    Town Council Regular Session 1. Meeting Date:10/01/2025   Requested by: Larry Merrell  Submitted By:Larry Merrell, Community Development & Public Works Department:Community and Economic Development SUBJECT: PUBLIC HEARING: ORDINANCE NO. (O)25-06, DISCUSSION AND POSSIBLE ACTION TO ADOPT CHANGES TO TOWN CODE SECTION 6-1-7 RESIDENTIAL CODE AND 6-1-10 PROPERTY MAINTENANCE CODE TO AMEND AND CLARIFY INTENT TO ADD TWO EXCEPTIONS: 2024 IRC SECTION 105 PERMITS, AND 106 CONSTRUCTION DOCUMENTS AND REVISE 2024 IPMC SECTION 303.2 ENCLOSURES RECOMMENDATION: Staff respectfully requests this revision as a minor corrective action to ensure the adopted amendments to the 2024 IRC and the 2024 IPMC are complete and accurate.   Recommendation:  Revise the newly adopted 2024 IRC Section 101.1, Title., by adding two exceptions after Section 101.1, Title. SECTION 105 PERMITS., AND 106 CONSTRUCTION DOCUMENTS. and add the word NOTE: before the text. (Deleted sections are administered by the 2024 IBC, Chapter 1)  Revise the newly adopted 2024 IPMC, Section 303.2 Enclosures. with the following: Private swimming pools, hot tubs, and spas, containing water more than 24 INCHES (610MM) 18” INCHES (457MM) IN DEPTH shall…(Remainder of text is unchanged). EXECUTIVE SUMMARY: Revision Summary: The revised amendment document:  Correctly preserves 2024 International Residential Code (IRC) Section 105 – Permits and Section 106 – Construction Documents  in their entirety and to be part of the amended exception(s) and not deleted from the chapter. (See attached document)  In the 2024 International Property Maintenance Code (IPMC) Section 303.2 Enclosures. A change from 24” to 18” to align with the 2024 International Swimming Pool and Spa Code (ISPSC) under the Town’s adoption. Maintains alignment with administrative provisions coordinated with the 2024 International Building Code (IBC). Ensures internal consistency and clarity between the adopted Town amendments and the model code. BACKGROUND OR DETAILED INFORMATION: On September 3, 2025, the Town Council approved the Oro Valley amendments to the 2024 IRC. During final review and preparation of the adoption package, a minor oversight was identified in the text related to 2024 IRC Sections 105 (Permits) and 106 (Construction Documents) and 2024 IPMC Section 303.2 (Enclosures). The oversight did not reflect the Council’s intent or the staff’s recommendation. Specifically, language in the adoption package is needed to clarify that Sections 105 and 106 of the IRC remain in effect under the Town’s local amendments, as originally presented and will not be deleted. (The main issue of intent is to adopt the exact code sections as they are written in both the IBC and the IRC.) In the 2024 IPMC Section 303.2 (Enclosures), it changes inches from 24 inches (610mm) to 18 inches (457mm) (Remainder of text is unchanged). FISCAL IMPACT: N/A. N/A. SUGGESTED MOTION: I MOVE to Adopt Ordinance No. (O)25-06, adopting changes to Town Code Section 6-1-7 references Residential Code and 6-1-10 references Property Maintenance Code to amend and clarify intent to add two exceptions: 2024 IRC Section 105 Permits, and 106 Construction documents. And revise 2024 IPMC Section 303.2 Enclosures.   Attachments (O)25-06 IRC IPMC Amendments  2024 IRC Chapter 1 Amendment  ORDINANCE NO. (O)25-06 AN ORDINANCE OF THE TOWN OF ORO VALLEY, ARIZONA AMENDING CHAPTER 6, SECTION 6-1-7 ENTITLED “RESIDENTIAL CODE” AND SECTION 6-1-10 ENTITLED “PROPERTY MAINTENANCE CODE” IN ORDER TO MODIFY THE TOWN’S ADOPTED VERSIONS OF THE INTERNATIONAL RESIDENTIAL CODE AND INTERNATIONAL PROPERTY MAINTENANCE CODE; AND REPEALING ALL RESOLUTIONS, ORDINANCES, AND RULES OF THE TOWN OF ORO VALLEY IN CONFLICT THEREWITH; AND PRESERVING THE RIGHTS AND DUTIES THAT HAVE ALREADY MATURED AND PROCEEDINGS THAT HAVE ALREADY BEGUN THEREUNDER WHEREAS, on December 6, 1995, the Town Council approved Ordinance No. (O)95-85, which adopted that certain document entitled, Oro Valley Town Code (OVTC), Chapter 6, “Building”, as the sixth chapter of the official Town Code; and WHEREAS, OVTC Chapter 6, Building, Section 6-1-7 is the Town of Oro Valley’s Residential Code; and WHEREAS, OVTC Chapter 6, Building, Section 6-1-10 is the Town of Oro Valley’s Property Maintenance Code; and WHEREAS, On September 3, 2025, via Ordinance (O)25-05, the Town of Oro Valley approved changes to OVTC Chapter 6, “Building”, which included changes to Section 6-1-7, “Residential Code” and Section 6-1-10, “Property Maintenance Code”; and WHEREAS, an oversight was noticed after the changes to Section 6-1-7, “Residential Code” and  Section  6-1-10,  “Property  Maintenance  Code”  were  adopted  which  necessitates  further changes to these code sections. NOW, THEREFORE, BE IT ORDAINED by the Mayor and the Council of the Town of Oro Valley, Arizona that: SECTION 1.    Oro  Valley  Town  Code  6-1-7,  Residential  Code,  is  hereby amended in order to modify the Town’s adopted version of the 2024 International Residential Code as shown in the attached Exhibit A. SECTION 2.  Oro Valley Town Code 6-1-10, Property Maintenance Code, is hereby  amended  in  order  to  modify  the  Town’s  adopted  version  of  the  2024 International Property Maintenance Code as shown in the attached Exhibit B. 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 Ordinance are hereby repealed. SECTION 4. If any section, subsection, sentence, clause, phrase or portion of this Ordinance 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.  That  the  Town  Manager,  Town  Clerk,  Town  Legal  Services Director, or their duly authorized officers and agents are hereby authorized and directed to take all steps necessary to carry out the purposes and intent of this ordinance. SECTION 6. In compliance with ARS § 9-802, the exhibits to this Ordinance are on file at the Town Clerk’s Office. PASSED AND ADOPTED by Mayor and Town Council, the Town of Oro Valley, Arizona, this 1st day of October, 2025. TOWN OF ORO VALLEY                                                                                                                                          Joseph C. Winfield, Mayor ATTEST: APPROVED AS TO FORM: Michael Standish, Town Clerk Andrew Votava, Interim Legal Services Director Date: Date:  EXHIBIT A TOWN OF ORO VALLEY AMENDMENTS TO THE INTERNATIONAL RESIDENTIAL CODE, 2024 EDITION The  following  provision  of  the  International  Residential  Code,  2024  Edition,  as  published  by  the International Code Council, Inc., is hereby amended as follows: CHAPTER 1 Delete Chapter 1 Scope and Administration, with the exception of Section R101.1 Title, SECTION 105  PERMITS,  AND  SECTION  106  CONSTRUCTION  DOCUMENTS.  NOTE: (Deleted sections are administered by the 2024 IBC, Chapter 1). Revise Section R101.1 Title, by replacing [name of jurisdiction] with Town of Oro Valley, Az. CHAPTER 3 At Table R301.2(1) Climatic and geographic design criteria, insert the following text: GROUND SNOW LOAD 0 PSF TOPOGRAPHIC EFFECTS AS REQUIRED WIND SPEED 105 MPH (168.981 KPH) 3 SECOND GUST SEISMIC DESIGN CATEGORY B WEATHERING NEGLIGIBLE FROST LINE DEPTH 0 TERMITE MODERATE TO HEAVY WINTER DESIGN TEMPERATURE REFER TO N1101.09.1 FLOOD HAZARDS NFIP: FEBRUARY 2005 FIRM: SEPTEMBER 28, 2012 Revise Section R302.1 Exterior walls, by deleting text and tables and replacing them with the following: Exterior walls with a fire separation distance less than 3 feet (914 mm) shall have not less than a one-hour fire-resistive rating with exposure from both sides. Projections shall not extend to a point closer than 2 feet (610 mm) from the line used to determine the fire separation distance. Projections extending into the fire separation distance shall have not less than one-hour fire- resistive construction on the underside. The above provisions shall not apply to walls which are perpendicular to the line used to determine the fire separation distance. Exceptions: 1. Detached garages accessory to a dwelling located within 2 feet (610 mm) of a lot line may have roof eave projections not exceeding 4 inches (102 mm). 2. Tool  and  storage  sheds,  playhouses,  ramadas  and  similar  structures  exempted  from permits  are  not  required  to  provide  wall  protection  based  on  location  on  the  lot. Projections beyond the exterior wall shall not extend over the lot line. Add new Section R302.1.1 as follows: Section R302.1.1 Openings. Openings shall not be permitted in the exterior wall of a dwelling with  a  fire  separation  distance  less  than  3  feet  (914  mm).  This  distance  shall  be  measured perpendicular to the line used to determine the fire separation distance. Exception: 1. Penetrations  shall  be  permitted  in  walls  that  are  perpendicular  to  the  line  used  to determine the fire separation distance. 2. Foundation vents installed in compliance with this code are permitted. Delete Section R309 Automatic fire sprinkler systems, in its entirety. Delete Section R317.5 Fire sprinklers, in its entirety. Revise Section R325 Light, ventilation and heating, title by replacing the word “heating” with the words “temperature control.” Revise Section R325.4.1 Intake openings, by adding Exception 4 to read: Exception: 4. Replacement of existing evaporative coolers where the building official determines that the replacement does not constitute a high degree of hazard. Revise Section R325.8 Required heating, by adding Exceptions 1 and 2 to read: Exceptions: 1. Interior spaces where the primary purpose is not associated with human comfort. 2. Interior spaces able to maintain 60ºF (15.6ºC) at a point 3 feet (914 mm) above the floor and 2  feet  (610  mm)  from  exterior  walls  in  all habitable  rooms  over  a  48  hour  period  as demonstrated by Section N1105 simulated performance alternative. Add new Section R325.9 Required cooling, as follows: Section R325.9 Required cooling. Dwelling units and sleeping units located in climate zones 0, 1, 2, 3, 4, 5A, and 5B, where the summer dry-bulb temperature is greater than 85º F (29.4º C), shall be provided with cooling systems capable of maintaining an indoor temperature at or below 80ºF (26.7º C) in the occupied space. Where permanently installed fans are capable of generating 120 fpm (0.6 m/s) air speed inside the occupied space, the required cooling system shall be capable of maintaining indoor temperature at or below 85º F (29.4º C). The installation of one or more portable systems shall not be used to achieve compliance with this section. Exception: Interior spaces where the primary purpose is not associated with human comfort. CHAPTER 5 Revise Section R506.3.3 Vapor retarder, by deleting Exception #4 and replace with the following: 4. Where designed by a qualifying registered design professional, based on soil conditions and floor finishing such as exposed concrete surfaces. CHAPTER 6 Revise Section R606.6.4.2.1 Roof structures, by deleting section in its entirety and replacing it with the following: Masonry walls with ledgers shall be anchored to roof structures with metal strap purlin anchors of 800 lb minimum capacity (ASD) installed in accordance with the manufacturer’s installation requirements, and at intervals not to exceed 48 inches (1219 mm). Revise Section R606.4.2.2 Floor diaphragms, by deleting section in its entirety and replacing it with the following: Masonry walls with ledgers shall be anchored to floor structures with metal strap purlin anchors of 800 lb minimum capacity (ASD) installed in accordance with the manufacturer’s installation requirements, and at intervals not to exceed 48 inches (1219 mm). CHAPTER 8 Revise Section R802.11.1 Uplift resistance, by deleting section in its entirety and adding the following:   Uplift resistance to minimize microburst effects shall be determined by either method 1 or 2 below: 1.Design-based wind uplift criteria: wind uplift requirements shall be determined by using the design wind value of 110 mph (177.028 kph) within Table R802.11 for the continuous load path transmitting the uplift forces from the rafter or truss ties to the foundation. 2. Prescriptive-based wind uplift criteria: (please  note  that  the  requirements  of  this  section  are  in addition to those required for the structural connection of wood members). 2.1. Conventionally framed wood or cold-formed steel structures: All bearing wall vertical connections shall be connected by an approved structural sheathing or approved metal connector to provide a continuous load path from the joist, rafter, or truss through the ledger or top plate to the bottom wall plate. Where connectors are used, they shall have a minimum uplift load capacity of 500 lbs, of configuration to match connection and spaced at intervals not to exceed 24 inches (610 mm).   At openings, lower cripple studs do not require connectors, but king/trimmer studs require double connectors at bottom and upper cripples require both full clipping connectors to header as well as header  to  king  stud.  All  platform  framing  requires  either  strapping  listed  for  the  purpose  or continuous sheathing over rim joist from stud to stud vertically at each floor level. All non- bearing exterior walls shall be connected as above except that the spacing may be extended not to exceed every other stud. 2.2. Masonry or concrete structures: If lateral design requires larger anchors or more conservative spacing, these may be used in lieu of those called out in this section. 2.2.1. Roof bearing on wall top plate: Top plates shall be secured to masonry or concrete walls with minimum 0.5 inch (13 mm) anchor bolts embedded minimum 7 inches (180mm) and spaced at intervals not to exceed 48 inches (1219 mm). Each joist, rafter, or truss shall be connected to the plate at each bearing location with metal connectors with a minimum uplift load capacity of 500 lbs. and of configuration to match connection. Gable end joists or trusses shall also be clipped at intervals not to exceed 48 inches (1219 mm). 2.2.2 roof bearing on wall ledger: Joists or trusses bearing on a wall ledger shall be secured to masonry or concrete walls with  metal  strap  purlin  anchors  of  800  lb.  minimum  capacity  (ASD)  installed  in accordance  with  the  manufacturer’s  installation  requirements,  and  at  intervals  not  to exceed  48”  inches  (1219  mm).  Nonbearing  roof  diaphragm  edges  shall  likewise  be anchored to the wall using metal strap purlin anchors connected to one framing bay or 24 inches (610 mm) minimum length of blocking, whichever is greater. 2.3. Structural steel structures: Structural steel buildings shall have roof members attached by either welds, bolts, screws or other similarly approved connections at intervals not to exceed 48" inches (1219 mm). Ledger designs shall connect to roof trusses with strapping listed for the purpose at intervals not to exceed 48" inches  (1219  mm)  on  all  diaphragm  sides.  If  lateral  design  requires  larger  anchors  or  more conservative spacing, the lateral design requirements shall be used in lieu of those called out in this section. CHAPTER 11 Delete Chapter 11 Energy Efficiency, in its entirety and replace it with the following: Chapter 11 Energy efficiency. Residential buildings regulated by this code shall comply with the International Energy Conservation Code (IECC) as adopted and amended per Town of Oro Valley. Reference to Chapter 11 in other sections of this code shall be for reference to the corresponding IECC Section(s) only. CHAPTER 14 Revise Section M1411.9 Condensate disposal, by adding the following at the end of the paragraph:   Condensate disposal shall be allowed to terminate as follows: 1. Into an approved fixture tailpiece, funnel drain, waste air gap fitting, floor sink, slop sink and laundry tray. 2. At or below grade outside the building in an area capable of absorbing the condensate flow without surface drainage. 3. Over roof drains or gutters or downspouts that connect to drainage pipes, provided they terminate at or above grade in an area capable of absorbing the condensate flow without surface drainage. Add new Section M1413.2 as follows: Section M1413.2 Water conservation.  Evaporative  cooling  systems  shall  be  provided  with  a recirculating water system. Any bleed off rate used by the system shall be limited to that recommended by the manufacturer. Once- through evaporative cooling systems using potable water shall not be permitted. CHAPTER 24 Revise Section G2407.11 (304.11) Combustion air ducts, by adding a new number 9 as follows: 9. Outside combustion air shall be provided through an opening or duct located within 12 inches (305 mm) of the top and within 12 inches (305 mm) of the bottom of enclosed spaces. Openings may connect to spaces directly communicating with the outdoors, such as ventilated attics or crawl  spaces.  A  single  duct  or  opening  shall  not  serve  both  combustion  air  openings.  Ducts serving the lower opening for liquid petroleum gas (LPG) appliances shall be located at the lowest possible floor level and shall not contain pockets where LPG could accumulate. Revise Section G2415.12 Minimum burial depth as follows:   G2415.12 (404.12) minimum burial depth. Metallic underground piping systems shall be installed a minimum depth of 12 inches (305 mm) below grade. Non-metallic piping shall be located not less than 18 inches (457 mm) below grade. Delete Section G2415.12.1 (404.12.1) Individual outside appliances. in its entirety. Revise Section G2427.6.4, Item 1. as follows: 1. Gas vents that are 12 inches (305 mm) or less in size and located not less than 4 feet (1219 mm) from a vertical wall or similar obstruction shall terminate above the roof in accordance with figure G2427.6.4. Vents located within 4 feet (1219 mm) of a parapet wall must terminate not less than 12 inches (305 mm) above the top of the wall. CHAPTER 26 Add new Section P2601.2.1 as follows: Section P2601.2.1 Gray water piping optional. Note: (if optional grey water piping is installed, it must comply with the following). 1. All new residential dwelling units shall include piping to allow a separate discharge of gray water for direct irrigation in accordance with Table 2601.2. When feasible, all gray water discharge piping shall be installed to allow for gravity distribution. 2.All  gray  water  systems  shall  be  designed  and  operated  according  to  the  provisions  of  the applicable permit authorized by ADEQ under the Arizona Administrative Code, Title 18, Chapter 9. Table P2601.2 Minimum Gray Water Fixture Requirements Available distribution areaa (square feet) Gray water fixturesb Less than 200 Optional 200 to 400 1 Greater than 400 At least one plus all bathing fixtures with drainage piping above gradec plus all clothes washing machinesd a. Available distribution area is the area of the parcel excluding areas within ten (10) feet of load-bearing foundations, two (2) feet of property lines, utility or drainage  easements,  driveways,  and  not  covered  by  permanent  impervious surfaces such as parking pads and patios. b. For purposes of this section, gray water fixtures are defined as bathing fixtures (such as bathtubs and showers) and clothes washing machines. c. For  purposes  of  this  section,  fixtures  roughed  in  below  a  slab  on  grade  are considered below grade, regardless of the soil elevation on the perimeter of the structure. d. Clothes washing machines located in rooms on grade, with no walls common to the exterior of the structure are not required to be supplied with gray water piping. At Sub-Section P2603.5.1 Sewer depth, where [number] is requested insert [12 inches (305 mm)] in both locations. CHAPTER 28 Revise Section P2804.6.1 Requirements for discharge pipe, by deleting item number 2. CHAPTER 29 Revise Section P2902.5.4 Connection to automatic fire sprinkler systems, by deleting all text therein and replacing it with the following: The potable water supply to automatic fire sprinkler and standpipe systems shall be protected against backflow in accordance with ARS § 41-2168. Revise Table 2903.1 Required capacities at point of outlet discharge, by deleting the column titled “Flow Pressure (psi)” in its entirety. Revise Section P2903.2 Maximum flow and water consumption, by deleting Section P2903.2 and replace with the following: The maximum water consumption flow rates and quantities for plumbing fixtures and fixture fittings shall be  in  accordance  with Table P2903.2  and  such  fixtures  and  fixture  fittings  shall  be  Environmental Protection Agency (EPA) Watersense certified fixtures or within the maximum flow or quantity required of  Watersense  certified  fixtures,  excluding  fixture  types  that  are  not  included  under  the  Watersense program. Exception: Replacement of existing fixtures that do not require a permit. Revise Table P2903.2, by deleting the table in its entirety and replace with the following: Table P2903.2 Maximum Flow Rates and Consumption for Plumbing Fixtures and Fixture Fittingsb Plumbing fixture or fixture fitting Maximum flow rate or quantityb Lavatory faucet 1.5 gpm at 60 psi Shower heada 2.5 gpm at 80 psi Sink faucet 1.8 gpm at 60 psi Water closet 1.28 gallon per flushing cycle For SI: 1 gallon per minute = 3.785l/m, 1 pound per square inch = 6.895 kpa a. A hand-held shower spray shall be considered to be a shower head b. Consumption tolerances shall be determined from referenced standards. Delete Section P2904.1.1 Required sprinkler locations, in its entirety and replace with the following: Amendments to the Golder Ranch Fire District Fire (GRFD Code 2024 Edition designated as public record in: Golder Ranch Fire District fire headquarters office pursuant to Golder Ranch Fire District Resolution 2024-0012 adopted October 15, 2024, effective: July 1, 2025, adopted by the Town of Oro Valley adopted (GRFD) amendments in their entirety with no exceptions. CHAPTER 30 Revise Section P3008.1 Where required, by deleting paragraph and adding new text as follows: P3008.1 where required.  Where the finish floor elevation is less than 12 inches (305 mm) above the elevation of the manhole cover of the next upstream manhole in the public sewer, the fixtures shall be protected by a backwater valve installed in the building drain, branch of the building drain or horizontal branch, serving that floor level. Plumbing fixtures on floor levels at elevations 12 inches (305 mm) or greater above the elevation of the manhole cover of the next upstream manhole in the public sewer shall not discharge through a backwater valve, serving a lower floor level. Delete Section P3009 Graywater soil absorption systems, in its entirety and replace with the following: Graywater systems shall comply with Arizona Administrative Code Title 18, Chapter 9. CHAPTER 37 Add new Section E3703.8 dishwasher and garbage disposer branch circuits – dwelling units: E3703.8 Dishwasher and garbage disposer branch circuits (dwelling units).  In  residential occupancies, dishwasher and garbage disposers may share a single 20-ampere branch circuit. Revise Section E3705.2 Correction factor for ambient temperatures, by adding the following:   The ambient temperature for application of Table 3705.2 [310.15 B(1)] for outdoor installations shall be not less than 45° C (113° F). CHAPTER 38 Add new Section E3802.10 Earthen material wiring method as follows:   Section E3802.9 E3802.10 Earthen material wiring method. Type UF cable shall be permitted to be used in mortar joints of adobe construction in occupancies where the use of nonmetallic sheathed cable is permitted by this code. APPENDICIES Adopt Appendices BB (Tiny Houses); BF (Patio Covers); BH (Automatic Vehicular Gates); BI (Light Straw-Clay Construction); BJ (Strawbale Construction); BK (Cobb Construction, Monolithic Adobe); BL (Hemp-Lime (Hempcrete) Construction); BM (3D-Printed Construction); CA (Sizing and Capacities of Gas Piping); CB (Sizing of Venting Systems serving Appliances Equipped with Draft Hoods, Category 1 Appliances  and  Appliances  Listed  for  use  with  Type  B  Vents); CD  (Piping  Standard  for  Various Applications); CE  (Venting  Methods); CF  (Sizing  of  Water  Piping  System); NB  (Solar-Ready Provisions); NE (Electric Vehicle Charging Infrastructure). APPENDIX BB Revise Section BB103.1 Minimum ceiling height, by adding the following after the first sentence: For rooms with sloped ceilings, at least 50 percent of the floor area of the room must have a ceiling height of at least 6 feet 8 inches (2032 mm) and no portion of the floor area of the room may have a ceiling height of less than 5 feet (1524 mm). APPENDIX NB Revise Section NB103.1 General, by deleting the text, “oriented between 90 degrees and 270 degrees of true north”. Revise Section NB103.4 Obstructions, by replacing the word “vent” with the word “exhaust”. Delete Section NB103.6 Capped roof penetrations sleeve, in its entirety. Delete Section NB103.10 Construction documentation certificate, in its entirety. APPENDIX NE Revise Section NE101.1 Definitions, by deleting the definition of Electric Vehicle Ready Space (EV Ready Space) in its entirety and replace it with the following: Electric vehicle ready space (EV ready space). A designated parking space which is provided with one 40-ampere  minimum  208-volt  or  240-volt  dedicated  single  phase  branch  circuit  for  EVSE  servicing electric vehicles. The circuit shall terminate in a suitable termination point such as a NEMA 14-50R receptacle or an EVSE and be located within 10 feet of the proposed location of the EV parking space(s). The ampere and volt minimums described above can be modified with administrative approval to allow for advances in industry standards. Exception: Provide one EV ready space for future circuit in panel and a minimum ¾” (19.05mm) conduit to minimum 2-gang box at location of EV space. Revise Section NE101.2 Electric vehicle power transfer infrastructure, by deleting the Section in its entirety and replace with the following: New construction shall facilitate future installation and use of electric vehicle supply equipment (EVSE) in accordance with Sections NE101.2.1 through NE101.3 and NFPA-70, National Electrical Code as adopted. Delete Section NE101.2.1 Quantity, in its entirety and replace with the following: For each new one- and two-family dwelling and townhouse unit, provide at least one EV ready space. The EV ready panel space branch circuit shall be identified as “EV ready” in the service panel or subpanel directory, and the termination location shall be marked as “EV ready.” Exception: EV ready spaces are not required where no on-site parking spaces are provided. Delete Section NE101.2.3 EV ready spaces, in its entirety. Delete Section NE101.2.4 EVSE spaces, in its entirety. Add new Section Ne101.3 Documentation as follows:   Section NE101.3 Documentation.  Construction  documents  shall  indicate  the  electric  vehicle  supply equipment (EVSE) location and shall provide information on wiring methods, circuiting and electrical load calculations which demonstrate that the premises electrical system has load capacity to accommodate the EV charging load. EXHIBIT B TOWN OF ORO VALLEY AMENDMENTS TO THE INTERNATIONAL PROPERTY MAINTENANCE CODE, 2024 EDITION The following provision of the International Property Maintenance Code, 2024 Edition, as published by the International Code Council, Inc., is hereby amended as follows: CHAPTER 1 Revise Section 101.1 Title, by replacing [name of jurisdiction] with Town of Oro Valley, AZ. Revise Section 101.2 Scope, by deleting the paragraph and replacing it with the following: The provisions of this code shall apply to all vacant and/or unsecured dangerous buildings, as herein defined, which are now in existence or which may hereafter become dangerous in this jurisdiction. Revise Section 101.3 Purpose, by deleting the paragraph and replacing it with the following: It is the purpose of this code to provide a just, equitable and practicable method, to be cumulative with and  in  addition  to  any  other  remedy  provided  by  the  building  code,  or  otherwise  available  by  law, whereby buildings or structures which from any cause endanger the life, limb, health, morals, property, safety or welfare of the general public or their occupants may be required to be secured, repaired, vacated or demolished. Add new Section 101.5 Duty to clean and secure vacant buildings and structures, as follows: Section 101.5 Duty to clean and secure vacant buildings and structures.  The  owner  of  a  vacant building or structure shall remove accumulation of weeds, combustible waste or rubbish from the interior of the building or structure and the surrounding yards; and shall secure all doors, windows, and other openings as required by the code official. Revise Section 102.3 Application of other codes, by deleting the paragraph and replacing it with the following: Section 102.3 Application of other codes. Repairs, additions or alterations to a structure, or change of occupancy, shall be done in accordance with the procedures and provisions of the regulatory codes as adopted by this jurisdiction which are in effect at the time such work is undertaken. Delete Section 103 Code Compliance Agency, in its entirety. Delete Section 104 Fees, in its entirety. Revise Section 105.5 Notice and Orders, by deleting the sentence and replacing it with the following: The code  official shall  issue  all  necessary  notices  or  orders  to  ensure  compliance  with  this  code,  in accordance with Oro Valley Town Code Chapter 1, Article 1-8. Delete Section 106 Means of Appeal, in its entirety. (Deleted section is administered by the 2024 IBC, Chapter 1). Revise Section 108.4 Failure to comply, by deleting the paragraph and replacing it with the following: Any person who shall continue any work after having been served with a stop work order, except such work as that person is directed to perform to remove a violation or unsafe condition, shall be subject to Oro Valley Town Code Chapter 1, Article 1-8. Revise Section 109.4 Notice, by deleting the paragraph and replacing it with the following: Whenever the code official determines that there has been a violation of this code or has grounds to believe that a violation has occurred, notice shall be given in the manner prescribed in Oro Valley Town Code Chapter 1, Article 1-8 to the owner or the owner's authorized agent, for the violation as specified in this code. Notices for condemnation procedures shall comply with this section. Delete Section 109.4.1 Form, in its entirety. Delete Section 109.4.4 Method of service, in its entirety. Delete Section 110.6 Hearing, in its entirety. (Deleted section is administered by the 2024 IBC, Chapter 1). CHAPTER 3 Revise Section 302.4 Weeds. as follows: 302.4 Weeds. Premises and exterior property shall be maintained free from weeds or plant growth in a manner that will prevent flowering and re-germination or a maximum of 12 inches (30.48 cm) in height. (Remainder of text is unchanged). Revise Section 303.2 Enclosures. as follows: Private swimming pools, hot tubs and spas, containing water more than 24 18 inches (610 457 mm) in depth shall include an enclosure or barrier in accordance with the swimming pool and spa code in effect at the time when the pool or spa was constructed. Self-closing and self-latching gates and doors shall be maintained such that the gate or door will positively close and latch when released from a minimum 45 degree open position from the gate post or door jamb. No existing pool enclosure shall be removed, replaced or changed in a manner that reduces its effectiveness as a safety barrier and alteration to an approved barrier or enclosure is subject to all permits required by the currently adopted ordinance. Construction of new barriers and enclosures shall be in accordance with the code that is in effect at the time of the alteration or replacement. (Remainder of text is unchanged). Revise Section 304.14 Insect screens, as follows: Every door, window and other outside opening required for ventilation of habitable rooms, food preparation areas, food service areas or any areas where products to be included or utilized in food for human consumption are processed, manufactured, packaged or stored shall be supplied with approved tightly fitting screens of minimum 16 mesh per inch (16 mesh per 25 mm), and every screen door used for insect control shall have a self-closing device in good working condition. Exception: Screens shall not be required where other approved means, such as air curtains or insect repellent fans, are employed. CHAPTER 6 Revise Section 602.3 Heat supply, by replacing [DATE] to [DATE] with October 1 to March 31. Revise Section 602.4 Occupiable work spaces, by replacing [DATE] to [DATE] with October 1 to March 31. Delete Sections 605.2 and 605.3 in their entirety and replace with the following: 605.2 Receptacles and luminaires. Receptacles and luminaires shall be installed as required by the edition of the National Electrical Code in effect at the time of construction. Delete Chapter 7 Fire Safety Requirements in its entirety. (Deleted Chapter is administered by the 2024 IFC). Memorandum To: Mayor and Members of the Oro Valley Town Council From: Larry Merrell, Chief Building Official Date: September 9, 2025 Subject: Correction to Adopted Building Code Amendment Purpose This memorandum provides clarification regarding the necessary revision to the Town’s adopted amendments to the 2024 International Residential Code (IRC), Chapter 1. Background On September 3, 2025, the Town Council approved the Oro Valley amendments to the 2024 IRC. During final review and preparation of the adoption package, a minor oversight was identified in the text related to 2024 IRC Sections 105 (Permits) and 106 (Construction Documents) and 2024 IPMC Section 303.2 (Enclosures). The oversight did not reflect the Council’s intent or the staff’s recommendation. Specifically, language in the adoption package is needed to clarify that Sections 105 and 106 of the IRC remain in effect under the Town’s local amendments, as originally presented and not be deleted. Revision Summary The revised amendment document: • Correctly preserves 2024 IRC Section 105 – Permits and Section 106 – Construction Documents in their entirety and in the 2024 IPMC Section 303.2 Enclosures. A change from 24” to 18” to align with the 2024 ISPSC under the Town’s adoption. • Maintains alignment with administrative provisions coordinated with the 2024 International Building Code (IBC). • Ensures internal consistency and clarity between the adopted Town amendments and the model code. • Provide for the 2024 IRC Section 105 – Permits and Section 106 – Construction Documents to be part of the exception: and included, not deleted from the chapter. (See document below) Impact This correction is administrative only: • No change to the intent of the Council’s prior adoption. • No impact on construction costs, enforcement, or compliance requirements beyond what was already approved. • Provides clarity for staff, design professionals, and contractors, reducing the risk of confusion in code administration. • Provides the use of the residential code sections as intended. Recommendation Staff respectfully request the Town Council acknowledge this revision as a minor corrective action to ensure the adopted amendments to the 2024 IRC are complete and accurate. TOWN OF ORO VALLEY AMENDMENTS TO THE INTERNATIONAL RESIDENTIAL CODE, 2024 EDITION • The following provision of the International Residential Code, (IRC) 2024 Edition, as published by the International Code Council, Inc., is hereby amended as follows: Revise Section R101.1 Title, by replacing [name of jurisdiction] with Town of Oro Valley, AZ. Delete Chapter 1 Scope and Administration, except for Section 101.1, Title., SECTION 105 PERMITS., AND 106 CONSTRUCTION DOCUMENTS. NOTE: (Deleted sections are administered by the 2024 IBC, Chapter 1). • The following provision of the International Property Maintenance Code, (IPMC) 2024 Edition, as published by the International Code Council, Inc., is hereby amended as follows: Revise Section 303.2 Enclosures. As follows: Private swimming pools, hot tubs, and spas, containing water more than 24 inches (610mm) 18” (457) IN DEPTH shall…    Town Council Regular Session 2. Meeting Date:10/01/2025   Requested by: Bayer Vella, Community and Economic Development  Submitted By:Michael Spaeth, Community and Economic Development Case Number:2501062 SUBJECT: PUBLIC HEARING: ORDINANCE NO. (O)25-07, DISCUSSION AND POSSIBLE ACTION REGARDING TOWN CODE AMENDMENTS TO CHAPTER 10, OFFENSES, ARTICLE 10-1-4, NOISE, AND ZONING CODE CHAPTER 27.9, GRADING, TO REFLECT RECENT STATE LAW CHANGES REGARDING PERMITTED CONSTRUCTION HOURS RECOMMENDATION: The Planning and Zoning Commission recommends approval of the proposed amendments included in Attachment 1.  EXECUTIVE SUMMARY: The purpose of this item is to consider proposed code amendments (Attachment 1) to comply with recent state law changes regarding permitted construction hours. Key elements include:  Establishing new construction hours for summer months only (May 1st - October 15th) Permitting concrete activities one hour earlier than other construction activities Maintaining existing hours for winter months (October 16th - April 30th) In Senate Bill (SB) 1182 (Attachment 2), the state recently enacted changes that impact the town's existing permitted construction hours.   The proposed amendments establish new hours for concrete and other construction activities during summer months (May 1st – October 15th) in conformance with the new state requirements. Winter months (October 16th - April 30th) remain unchanged. A summary is provided below: 1. Concrete activities  A. Summer months (May 1st - October 15th) - required to comply with state law Weekdays: 4am - 7pm Weekends: 6am - 7pm B. Winter months (October 16th - April 30th) - same as existing code Weekdays: 6am - 6pm Weekends: 7am - 6pm 2. Construction activities  A. Summer months (May 1st - October 15th) - required to comply with state law Weekdays: 5am - 7pm Weekends: 7am - 7pm B. Winter months (October 16th - April 30th) - same as existing code Weekdays: 6am - 6pm Weekends: 8am - 6pm 3. Extended Construction Hours Work Permits (ECHWP): Permitted year-round as appropriate. Same as existing code.     The legislation was signed into law as "Emergency Legislation", which made the new construction hours effective as of May 13, 2025. While the town is currently operating under the new legislation signed by the governor, to be in compliance with the new requirements, the town must adopt revisions to the code.  The Planning and Zoning Commission considered the proposed amendments at a Public Hearing on September 10th and has recommended approval.  Additional detail is provided in the "Background or Detailed Information" section of this report.        BACKGROUND OR DETAILED INFORMATION: The Governor recently signed SB 11882 (Attachment 2) into law as "emergency legislation" related to permitted construction hours. The new standards apply statewide and have been in effect since May 13, 2025. The adopted legislation is included below:  A MUNICIPALITY MAY NOT ENACT OR ENFORCE ANY NOISE ORDINANCE, RULE OR REGULATION THAT PROHIBITS ANY GENERAL CONSTRUCTION ACTIVITIES BETWEEN MAY 1 AND OCTOBER 15 OF EACH YEAR BETWEEN THE HOURS OF 5:00 A.M. AND 7:00 P.M. EACH BUSINESS DAY AND BETWEEN THE HOURS OF 7:00 A.M. AND 7:00 P.M. ON SATURDAY IF THE CONSTRUCTION WORK IS BEING PERFORMED PURSUANT TO A VALIDLY ISSUED BUILDING PERMIT ISSUED BY THE MUNICIPALITY.  1. THE MUNICIPALITY SHALL ALLOW CONCRETE TO BE POURED AT LEAST ONE HOUR BEFORE THE TIME THAT GENERAL CONSTRUCTION ACTIVITIES ARE REGULARLY SCHEDULED TO BEGIN.  2. While the town has been operating under the new requirements, the town must adopt updates to comply with the new standards. PROPOSED AMENDMENTS A summary of the proposed amendments is included below: TOWN CODE SECTION 10-1-4, NOISE Concrete activities EXISTING The following existing requirements for concrete activities are being removed:  5am through 7pm between April 15th and October 15th1. 6am through 6pm between October 16th and April 14th2. PROPOSED In compliance with state law, concrete activities are permitted one-hour before other construction activities. The following amendments are proposed: Concrete. The pouring of concrete and all associated work may be conducted BETWEEN THE TIMEFRAMES ESTABLISHED IN TABLE 10-1-4(A) AND TABLE 10-1-4(B) UNLESS OTHERWISE AUTHORIZED PURSUANT TO AN EXTENDED CONSTRUCTION HOURS WORK PERMIT (ECHWP) ISSUED UNDER ORO VALLEY TOWN CODE SECTION 6-6-2: For weekend concrete activities, the same "one-hour earlier" before other construction activities standard is required during summer months. For consistency, the same "one hour earlier" standard is proposed for winter months as shown below: Construction activities (Town Code Section 10-1-4.C.6.b) EXISTING The following existing requirements for construction activities are being removed:  5am through 6pm - when located more than 500 feet from a residential zone1. 6am through 6pm - when located within 500 feet of a residential zone2. PROPOSED Construction activities are now permitted on weekdays between 5am and 7pm during summer months regardless of proximity to residential zones, which is no longer applicable during summer months. Because state law supersedes the "proximity to residential zones" standard for summer months, for consistency, the proposed amendment removes the "proximity to residential zones" standard during winter months and simply uses the most restrictive existing standard (i.e. highest level of protection for residents). As a result, the proposed amendment includes the following: ALL OTHER CONSTRUCTION ACTIVITIES MAY BE CONDUCTED BETWEEN THE TIMEFRAMES ESTABLISHED IN TABLES 10-1-4(C) AND 10-1-4-(D) UNLESS OTHERWISE AUTHORIZED PURSUANT TO AN EXTENDED CONSTRUCTION HOURS WORK PERMIT (ECHWP) ISSUED UNDER ORO VALLEY TOWN CODE SECTION 6-6-2: To comply with the new state standard, construction activities are allowed between 7am and 7pm on weekends, two hours later than weekdays. For consistency, construction activities are permitted on weekends two hours later during winter months, as included in the table below: Extended Construction Hours Work Permit (ECHWP) Applicants will continue to be able to apply for an ECHWP year round, when appropriate, in accordance with Town Code Section 6-6-2.  ZONING CODE SECTION 27.9, GRADING The existing code language in this section is being removed as it is now redundant. The attached amendments propose moving all construction hours-related requirements to Town Code Section 10-1-4, Noise.  The Planning and Zoning Commission considered the proposed amendments at a Public Hearing on September 10th.   The proposed amendments detailed above and included in Attachment 1 comply with the new state requirements and the Planning and Zoning Commission recommends approval.  FISCAL IMPACT: N/A N/A SUGGESTED MOTION: Town Council may wish to consider one of the following motions: I MOVE to APPROVE Ordinance No. (O)25-07, the Town Code Amendments included in Attachment 1 to reflect recent state law changes regarding permitted construction hours within the Town. OR  I MOVE to DENY Ordinance No. (O)25-07, the Town Code Amendments based on that ___________________________. Attachments ATTACHMENT 1 - Ordinance No. (O)25-07 PROPOSED CODE AMENDMENTS  ATTACHMENT 2 - SENATE BILL 1182 (SIGNED)  Staff Presentation  ORDINANCE NO. (O)25-07   AN  ORDINANCE  OF  THE  TOWN  OF  ORO  VALLEY,  ARIZONA, AMENDING ORO VALLEY TOWN CODE SECTION 10-1-4, NOISE, AND ORO VALLEY ZONING CODE SECTION 27.9, GRADING, IN ORDER TO BRING  THE  TOWN’S  CODES  INTO  COMPLIANCE  WITH  RECENT ARIZONA STATE LAW CHANGES   WHEREAS, on September 27, 1989, the Mayor and Council adopted Ordinance (O) 89-21, adopting that certain document entitled “Oro Valley Town Code” (OVTC); and WHEREAS, on March 31, 1981, the Mayor and Council approved Ordinance (O) 81-58, which adopted that certain document entitled “Oro Valley Zoning Code Revised” (OVZCR); and WHEREAS, Senate Bill 1182 passed on May 13, 2025, and was adopted immediately as an emergency measure, adjusting the hours during which construction may be conducted during the summer; and WHEREAS, the Planning and Zoning Commission held a meeting on September 10, 2025, and voted to approve the amendments to OVTC Section 10-1-4, Noise, and OVZCR, Section 27.9, Grading; and   WHEREAS, in order to bring the Town of Oro Valley’s Codes into compliance with the recent changes to state law, it is necessary to amend OVTC Section 10-1-4, Noise, and OVZCR, Section 27.9, Grading, as shown in the attached Exhibit “A”.   NOW, THEREFORE, BE IT ORDAINED by the Mayor and Council of the Town of Oro Valley, Arizona that: SECTION 1.  The OVTC Section 10-1-4, Noise, and OVZCR, Section 27.9, Grading, are hereby amended as shown in the attached Exhibit “A”. SECTION 2.   All Oro Valley Ordinances, Resolutions, or Motions and parts of Ordinances, Resolutions or Motions of the Council in conflict with the provisions of this Ordinance are hereby repealed.   SECTION 3.   If any section, subsection, sentence, clause, phrase or portion of this Ordinance 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 4. In compliance with ARS § 9-802, the exhibits to this Ordinance are on file at the Town Clerk’s Office. PASSED AND ADOPTED by Mayor and Town Council of the Town of Oro Valley, Arizona this 1st day of October, 2025. 2 TOWN OF ORO VALLEY Joseph C. Winfield, Mayor ATTEST: APPROVED AS TO FORM: Michael Standish, Town Clerk Andrew Votava, Interim Legal Services Director Date:Date: Deletions are shown in red strikethrough Additions are shown in BLUE CAPS 3 Exhibit “A” ARTICLE 10-1-4 NOISE A. No person shall negligently make, cause, or permit unreasonable noise. B.  FACTORS THAT MAY BE CONSIDERED IN DETERMINING THE REASONABLENESS OF THE NOISE ARE, BUT NOT LIMITED TO: 1. THE LEVEL, CHARACTER, FREQUENCY AND DURATION OF THE NOISE 2. THE NECESSITY OF THE NOISE 3. THE PROXIMITY OF THE SOURCE TO INHABITED STRUCTURES 4. HARDSHIP TO THE PERPETRATOR IF NOISE DISCONTINUED OR LIMITED 5. CHARACTER AND ZONING OF NEIGHBORHOOD 6. TIME OF NOISE C. Noise made for the following purposes is exempt from subsection (A) of this section: 1. Emergency activities necessary to restore property to a safe condition after a natural disaster or occurrence; 2. Protecting people or property from imminent danger; 3. Governmental activities; 4. Activities sponsored or sanctioned by the Town Council; 5. Operation, maintenance, or repair of heavy equipment between sunrise or 6:00 a.m., whichever is later, and sunset. 6. Noise generated by construction, demolition, excavation, REPAIR OF HEAVY EQUIPMENT or grading according to the following restrictions: a. Concrete. The pouring of concrete and all associated work may be conducted from April 15th through October 15th between the hours of 5:00 and 7:00 p.m., and from October 16th through April 14th between the hours of 6:00 a.m. and 6:00 p.m., or as authorized pursuant to an Extended Construction Hours Work Permit (ECHWP) issued under Oro Valley Town Code Section 6-6-2. BETWEEN Deletions are shown in red strikethrough Additions are shown in BLUE CAPS 4 THE TIMEFRAMES ESTABLISHED IN TABLE 10-1-4(A) AND TABLE 10-1- 4(B) UNLESS OTHERWISE AUTHORIZED PURSUANT TO AN EXTENDED CONSTRUCTION HOURS WORK PERMIT (ECHWP) ISSUED UNDER ORO VALLEY TOWN CODE SECTION 6-6-2: Table 10-1-4(A) PERMITTED WEEKDAY HOURS FOR CONCRETE ACTIVITIES PERMITTED HOURS DAYS OF THE YEAR 4:00 A.M. - 7:00 P.M.MAY 1ST – OCTOBER 15TH 6:00 A.M. - 6:00 P.M.OCTOBER 16TH – APRIL 30TH Table 10-1-4(B) PERMITTED WEEKEND HOURS FOR CONCRETE ACTIVITIES PERMITTED HOURS DAYS OF THE YEAR 6:00 A.M. - 7:00 P.M.MAY 1ST – OCTOBER 15TH 7:00 A.M. - 6:00 P.M.OCTOBER 16TH – APRIL 30TH b. All Other Construction. Within five hundred (500) feet of a residential zone, all other construction may occur between the hours of 6:00 a.m. and 6:00 p.m. Construction sites more than five hundred (500) feet from a residential zone may conduct work between the hours of 5:00 a.m. and 6:00 p.m. Construction hours may be extended pursuant to an ECHWP issued under Oro Valley Town Code Section 6-6-2. The distance from a residential zone shall be determined by measuring from all property lines of the construction site. ALL OTHER CONSTRUCTION ACTIVITIES MAY BE CONDUCTED BETWEEN THE TIMEFRAMES ESTABLISHED IN TABLES 10-1-4(C) AND 10-1-4-(D) UNLESS OTHERWISE AUTHORIZED PURSUANT TO AN EXTENDED CONSTRUCTION HOURS WORK PERMIT (ECHWP) ISSUED UNDER ORO VALLEY TOWN CODE SECTION 6-6-2: Table 10-1-4(C) PERMITTED WEEKDAY HOURS FOR CONSTRUCTION ACTIVITIES PERMITTED HOURS DAYS OF THE YEAR 5:00 A.M. - 7:00 P.M.MAY 1ST – OCTOBER 15TH 6:00 A.M. - 6:00 P.M.OCTOBER 16TH – APRIL 30TH Table 10-1-4(D) PERMITTED WEEKEND HOURS FOR CONSTRUCTION ACTIVITIES PERMITTED HOURS DAYS OF THE YEAR 7:00 A.M. - 7:00 P.M.MAY 1ST – OCTOBER 15TH 8:00 A.M. - 6:00 P.M.OCTOBER 16TH – APRIL 30TH C. The exact time of sunrise and sunset will be as reported by the National Weather Service. D. Factors that may be considered in determining the reasonableness of the noise are, but not limited to: 1. The level, character, frequency and duration of the noise; 2. The necessity of the noise; Deletions are shown in red strikethrough Additions are shown in BLUE CAPS 5 3. The proximity of the source to inhabited structures; 4. Hardship to the perpetrator if noise discontinued or limited; 5. Character and zoning of neighborhood; 6. Time of noise. E. Violation of this section is a Class 1 misdemeanor. ((O)08-09, 05/07/2008) Zoning Code Section 27.9.C.9 9. Hours of Grading a. Grading equipment operation within one-half (1/2) mile of an occupied residential structure shall only be conducted between 6:00 a.m. and sunset Monday through Friday. Grading equipment operation shall only be conducted between the hours of 8:00 a.m. and 5:00 p.m. on Saturdays and Sundays. b. Equipment maintenance involving lights, motors, or generators, and occurring within six hundred (600) feet of an occupied residential structure, shall not be conducted after sunset, or before 6:00 a.m. c. The Town may allow grading equipment operation or maintenance during other hours, if such operations are not detrimental to the health, safety, or welfare of the residents of surrounding properties. d. Permitted hours of operation or maintenance may be shortened by written notice to the permittee. If the Town finds a substantial adverse effect on the health, safety, or welfare of the surrounding community. - i - House Engrossed Senate Bill landlords; property manager; contact information. (now: municipalities; counties; construction hours) State of Arizona Senate Fifty-seventh Legislature First Regular Session 2025 SENATE BILL 1182 AN ACT AMENDING TITLE 9, CHAPTER 4, ARTICLE 8, ARIZONA REVISED STATUTES, BY ADDING SECTION 9-500.52; AMENDING TITLE 11, CHAPTER 2, ARTICLE 4, ARIZONA REVISED STATUTES, BY ADDING SECTION 11-269.30; RELATING TO SUMMERTIME CONSTRUCTION HOURS. (TEXT OF BILL BEGINS ON NEXT PAGE) S.B. 1182 - 1 - Be it enacted by the Legislature of the State of Arizona: 1 Section 1. Title 9, chapter 4, article 8, Arizona Revised Statutes, 2 is amended by adding section 9-500.52, to read: 3 9-500.52. Construction; summertime hours; prohibition on 4 restriction 5 A. A MUNICIPALITY MAY NOT ENACT OR ENFORCE ANY NOISE ORDINANCE, 6 RULE OR REGULATION THAT PROHIBITS ANY GENERAL CONSTRUCTION ACTIVITIES 7 BETWEEN MAY 1 AND OCTOBER 15 OF EACH YEAR BETWEEN THE HOURS OF 5:00 A.M. 8 AND 7:00 P.M. EACH BUSINESS DAY AND BETWEEN THE HOURS OF 7:00 A.M. AND 9 7:00 P.M. ON SATURDAY IF THE CONSTRUCTION WORK IS BEING PERFORMED PURSUANT 10 TO A VALIDLY ISSUED BUILDING PERMIT ISSUED BY THE MUNICIPALITY. 11 B. THE MUNICIPALITY SHALL ALLOW CONCRETE TO BE POURED AT LEAST ONE 12 HOUR BEFORE THE TIME THAT GENERAL CONSTRUCTION ACTIVITIES ARE REGULARLY 13 SCHEDULED TO BEGIN. 14 Sec. 2. Title 11, chapter 2, article 4, Arizona Revised Statutes, 15 is amended by adding section 11-269.30, to read: 16 11-269.30. Construction; summertime hours; prohibition on 17 restriction 18 A. A COUNTY MAY NOT ENACT OR ENFORCE ANY NOISE ORDINANCE, RULE OR 19 REGULATION THAT PROHIBITS ANY GENERAL CONSTRUCTION ACTIVITIES BETWEEN MAY 20 1 AND OCTOBER 15 OF EACH YEAR BETWEEN THE HOURS OF 5:00 A.M. AND 7:00 P.M. 21 EACH BUSINESS DAY AND BETWEEN THE HOURS OF 7:00 A.M. AND 7:00 P.M. ON 22 SATURDAY IF THE CONSTRUCTION WORK IS BEING PERFORMED PURSUANT TO A VALIDLY 23 ISSUED BUILDING PERMIT ISSUED BY THE COUNTY. 24 B. THE COUNTY SHALL ALLOW CONCRETE TO BE POURED AT LEAST ONE HOUR 25 BEFORE THE TIME THAT GENERAL CONSTRUCTION ACTIVITIES ARE REGULARLY 26 SCHEDULED TO BEGIN. 27 Sec. 3. Emergency 28 This act is an emergency measure that is necessary to preserve the 29 public peace, health or safety and is operative immediately as provided by 30 law. 31 Public Hearing: State Law changes regarding permitted construction hours Town Council October 1, 2025 Purpose Town Code Amendments: •Expansion of permitted construction work hours in summer •Construction activities •Concrete activities •Simplify requirements and retain winter hours Zoning Code Amendment •Eliminate redundant standards Emergency legislation already in effect Planning and Zoning Commission recommends approval Background STATE LAW (MAY 1 – OCT. 15 TH) Construction Activities 5am – 7pm (Mon – Fri) 7am – 7pm (Sat) Concrete Activities One hour earlier EXISTING CODE Construction Activities 5am – 6pm (more than 500ft to residential) 6am – 6pm (less than 500ft to residential) Concrete Activities 5am – 7pm (April 15 th – October 15 th) 6am – 6pm (October 16 th – April 14 th) Proposed amendments New extended hours for “summer months” per state law Retained most restrictive hours for “winter months” Removed “proximity to residential” standard due to new uniform high standard Applies only to activities associated with an issued building permit Extended Construction Work Hours Permit (ECHWP) Eliminates ZC Section 27.C.9 as redundant Summary Town Code Amendments: •Expansion of permitted construction work hours in summer •Construction activities •Concrete activities •Simplify requirements and retain winter hours Zoning Code Amendment •Eliminate redundant standards Emergency legislation already in effect Planning and Zoning Commission recommends approval    Town Council Regular Session 3. Meeting Date:10/01/2025   Requested by: Vice Mayor Barrett and Councilmember Nicolson  Submitted By:Mike Standish, Town Clerk's Office Department:Town Clerk's Office SUBJECT: *PUBLIC HEARING: ORDINANCE NO. (O)25-08, DISCUSSION AND POSSIBLE ACTION REGARDING HIRING A TOWN ATTORNEY WHO REPORTS TO TOWN COUNCIL INCLUDING DISCUSSION AND POSSIBLE ACTION ON ANY CODE AMENDMENTS TO ORO VALLEY TOWN CODE 3-2-5 NECESSARY TO EFFECTUATE SUCH CHANGE RECOMMENDATION: N/A EXECUTIVE SUMMARY: This item was requested by Vice Mayor Barrett and Councilmember Nicolson at the September 17, 2025, Town Council Meeting. BACKGROUND OR DETAILED INFORMATION: What follows is the current Town Code Regarding the position of Town Attorney for reference: 3-2-5 Town Attorney. A. The Legal Services Director shall act as the legal counselor and advisor to the Council and Town officials and, as such, shall give an opinion in writing when requested; shall draft all deeds, contracts, conveyances, ordinances, resolutions and other legal instruments when required; shall approve as to form, in writing, all drafts of contracts and all official or other bonds before final approval or acceptance thereof by the Council; shall return within fourteen (14) days all ordinances and resolutions submitted for consideration by the Council, with notes referencing approval or disapproval as to form, together with reasons therefor; shall supervise the prosecution and defense, or cause to be prosecuted and defended, all criminal and civil suits, actions or causes where the Town is a party and shall report to the Council, when required, the condition of any suit or action to which the Town is a party; and shall have the authority to settle all claims against the Town of Oro Valley valued at less than ten thousand dollars ($10,000) in accordance with Section 3-7-1(A) of this code. Notwithstanding this section, for the purposes of the Town Code, Oro Valley Zoning Code revised and all other Town policies and procedures, wherever the term “Town Attorney” is used it shall mean the Legal Services Director. The Legal Services Director is appointed by the Town Manager. An annual evaluation shall be conducted by the Town Manager. B. The contract Town Attorney shall act as the legal counselor and advisor to the Council for all Town Council meetings and special projects as set forth by contract. The contract Town Attorney shall serve at the pleasure of the council under the terms of the contract. ((O)13-15, 05/15/2013; (O)07-37, 09/05/2007; (O)02-03, 01/09/2002) FISCAL IMPACT: N/A SUGGESTED MOTION: I MOVE to (Approve or Deny) Ordinance No. (O)25-08. Attachments (O)25-08 Town Attorney Appointment  ORDINANCE NO. (O)25-08   AN ORDINANCE OF THE TOWN OF ORO VALLEY, ARIZONA, AMENDING  ORO  VALLEY  TOWN  CODE  SECTION  3-2-5, TOWN  ATTORNEY,  IN  ORDER  TO  CHANGE  THE  LEGAL SERVICES  DIRECTOR  POSITION  FROM  BEING  APPOINTED BY  THE  TOWN  MANAGER  TO  BEING  APPOINTED  BY  THE TOWN COUNCIL   WHEREAS, on September 27, 1989, the Mayor and Council adopted Ordinance (O) 89- 21, adopting that certain document entitled “Oro Valley Town Code” (OVTC); and WHEREAS, OVTC Section 3-2-5, Town Attorney, defines the Town Attorney to mean the Legal Services Director and dictates that the Legal Services Director be appointed by the Town Manager; and WHEREAS, On September 17, 2025, Town Council expressed their desire to have the Legal Services Director be appointed by and report to the Town Council; and   WHEREAS, in order to change who appoints the Legal Services Director and who the Legal Services Director reports to it is necessary to amend OVTC Section 3-2-5, Town Attorney, as shown in the attached Exhibit “A”.   NOW, THEREFORE, BE IT ORDAINED by the Mayor and Council of the Town of Oro Valley, Arizona that: SECTION 1.  OVTC Section 3-2-5, Town Attorney, is hereby amended as shown in the attached Exhibit “A”. SECTION 2.   All Oro Valley Ordinances, Resolutions, or Motions and parts of Ordinances, Resolutions or Motions of the Council in conflict with the provisions of this Ordinance are hereby repealed.   SECTION  3.     If  any  section,  subsection,  sentence,  clause,  phrase  or portion  of  this  Ordinance  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  4.  In  compliance  with  ARS  §  9-802,  the  exhibits  to  this Ordinance are on file at the Town Clerk’s Office. 2 PASSED AND ADOPTED by Mayor and Town Council of the Town of Oro Valley, Arizona, this 1st day of October, 2025. TOWN OF ORO VALLEY Joseph C. Winfield, Mayor ATTEST: APPROVED AS TO FORM: Michael Standish, Town Clerk Andrew Votava, Interim Legal Services Director Date:Date: 3 Exhibit “A” 4 3-2-5 Town Attorney A.  The  Legal  Services  Director  shall  act  as  the  legal  counselor  and  advisor  to  the Council and Town officials and, as such, shall give an opinion in writing when requested; shall  draft  all  deeds,  contracts,  conveyances,  ordinances,  resolutions  and  other  legal instruments when required; shall approve as to form, in writing, all drafts of contracts and all official or other bonds before final approval or acceptance thereof by the Council; shall  return  within  fourteen  (14)  days  all  ordinances  and  resolutions  submitted  for consideration by the Council, with notes referencing approval or disapproval as to form, together with reasons therefor; shall supervise the prosecution and defense, or cause to be prosecuted and defended, all criminal and civil suits, actions or causes where the Town is a party and shall report to the Council, when required, the condition of any suit or action to which the Town is a party; and shall have the authority to settle all claims against the Town of Oro Valley valued at less than ten thousand dollars ($10,000) in accordance with Section 3-7-1(A) of this code. Notwithstanding this section, for the purposes of the Town  Code,  Oro  Valley  Zoning  Code  revised  and  all  other  Town  policies  and procedures, wherever the term “Town Attorney” is used it shall mean the Legal Services Director. The Legal Services Director is appointed by the Town Manager COUNCIL. An annual evaluation shall be conducted by the Town Manager COUNCIL. B.    The  contract  Town  Attorney  shall  act  as  the  legal  counselor  and  advisor  to  the Council for all Town Council meetings and special projects as set forth by contract. The Contract Town Attorney shall serve at the pleasure of the council under the terms of the contract. 5 4921-1247-1406, v. 1    Town Council Regular Session 1. Meeting Date:10/01/2025   Requested by: Bayer Vella, Community and Economic Development  Submitted By:Michael Spaeth, Community and Economic Development Case Number:2501170 SUBJECT: DISCUSSION ONLY REGARDING THE FOLLOWING:  NEW TAX CATEGORIES (USE, COMMERCIAL RENTAL, AND TELECOMMUNICATIONS) AND RATESA. PARKS AND RECREATION FEE INCREASESB. STORMWATER UTILITY FEE INCREASEC. RECOMMENDATION: This item is for discussion only. The new tax categories and rates, the Parks and Recreation fee proposals and a Notice of Intent (NOI) to raise the Stormwater Utility Fee will be presented for discussion and possible action on October 15. Specific action to increase the Stormwater Utility fee will be considered at a public hearing in January 2026. EXECUTIVE SUMMARY: The purpose of this report is to discuss three proposals regarding new tax categories/rates and revised fees and provide an update on the associated community engagement outreach effort. The proposals included in Attachment 1 (New tax categories and rates), Attachment 2 (Stormwater Fees) and Attachment 3 (Parks and Recreation Fees) remain the same as those reviewed by Town Council at the study session held on June 18, 2025. At the study session, Town Council recognized the need to look into potentially adding the new taxes and revenue sources to maintain the high level of service provided by the Town and expressed specific interest in hearing resident feedback. Additionally, evaluating the potential for adding new tax categories supports Goal 7.1 of the Town Council approved Strategic Plan, and more specifically Objective 7.1.1. that states, "Prioritize financial stability by evaluating current revenue sources and exploring new opportunities annually ." A brief summary of each proposal is included below with more detail provided in the "Background or Detailed Information" section of this report.  NEW TAXES PROPOSALS The Town is proposing the following new tax categories and rates to augment the Town's local sales tax collections. These categories include the following:  Use tax1. Telecommunications tax2. Commercial Rental tax3. All three categories are collected by the Town's nearest neighbors, including the City of Tucson, Town of Marana, and Town of Sahuarita. If adopted by Town Council, staff recommends restricting the use of these funds to Town capital needs (large improvement projects exceeding $50,000), which currently do not have a dedicated funding source. A comparison of local tax collection is provided in Attachment 1. STORMWATER UTILITY FEE The existing Stormwater Utility Rate does not adequately address the fundamental expenses associated with stormwater management, specifically capital improvement and projects associated with infrastructure maintenance and repair. This is a signigicant concern because the Stormwater Utility operates as an Enterprise Fund that is fully funded by user fees. The Stormwater Utility Commission unanimously supports a one-time rate increase from $4.50 per ERU (Equivalent Residential Unit) to $6.50 per ERU. On November 21, 2024, the Stormwater Utility Commission reviewed staff recommendations derived from a stormwater rates analysis to ensure consistency with Town policies and voted to endorse the approval of the Stormwater Rates Analysis Report (Attachment 2). However, given a recent windfall by the County picking up the Oro Valley Drive drainage project, staff can support a one-year phasing in of the utility fee increase. Raising the fee this upcoming year by $1 per ERU per month, coupled with the money not spent on the Oro Valley Drive project, would place the Utility in relatively the same financial position as discussed previously with Council. Then the following year, staff will request another increase of $1 per ERU per month to get to the same revenue generation to fund upcoming projects. PARKS AND RECREATION FEES The Parks and Recreation Department is proposing fee increases for department memberships and rentals, with a focus on increases to non-resident rates for use (Attachment 3).  The majority of proposed fees have not been increased in more than 10 years, while costs have steadily risen over this time. The department has been proactive in its approach, as evidenced by numerous meetings held with local organizations and leagues who would be impacted by these new fees. All meetings have been well received as the increases proposed have been deemed reasonable and fair. This proposal is the effort of many staff over a period of years to ensure all due diligence was completed as it relates to comparison fees and value included. It is important to note, that the increased fees generated by this proposal will be designated for future capital improvement projects within the department. After careful consideration of community feedback, the Parks and Recreation Advisory Board (PRAB) voted to recommend approval of the proposal at their meeting on September 9, 2025. COMMUNITY ENGAGEMENT EFFORT The Town conducted online Zoom meetings over the summer to engage as many residents as possible to be a part of the discussion. Three virtual meetings were held in July (one for each proposal) with the aim of ensuring the background and rationale for each proposal was presented to residents in a clear, transparent and understandable manner. A key objective was to garner community feedback on each proposal. The meetings were recorded and are available on the town's website at www.orovalleyaz.gov. Additional details regarding resident feedback are provided in the "Background or Detailed Information" section of this report as well as the summary of all resident feedback provided in Attachment 4.  Finally, the Town hosted a business forum jointly with the Oro Valley Chamber of Commerce on September 11, 2025, with the aim of gathering specific feedback from members of the Oro Valley business community. The meeting was well attended and included a healthy discussion of the anticipated impacts of both the proposed new tax categories and Stormwater Utility rate increases on the business community. A summary of the questions and comments received during the forum, as well as responses from Town staff to each question, is provided in Attachment 5. BACKGROUND OR DETAILED INFORMATION: The Town is proposing new taxes and revised fees to maintain the Town's high quality and level of service. The The Town is proposing new taxes and revised fees to maintain the Town's high quality and level of service. The new tax categories and revised fees are summarized below and included in Attachments 1, 4 and 5 (New Taxes), Attachment 2 (Stormwater Fee) and Attachment 3 (Parks and Recreation Fees). NEW TAX CATEGORIES (ATTACHMENTS 1, 4 and 5) The Town is proposing three additional categories to augment the Town’s local sales tax collections. These tax categories are the following:  Use tax1. Telecommunications tax2. Commercial Rental tax3. A brief summary of each is provided below: Use Tax The use tax is a standard part of the Model City Tax Code “MCTC” and the League of Arizona Cities and Towns strongly recommends implementing for all cities and towns as good tax policy promoting fairness for all sellers.  A use tax is a tax on goods purchased where no sales tax is collected.  Adding a use tax is a complementary tax to retail (TPT) that simply promotes competitive equality for local businesses by eliminating the financial incentive for local businesses making purchases outside of the Town.  It protects local businesses from potential lost revenue by removing any motivation for buyers to purchase outside of Oro Valley.  Lastly, all out-of-state retailers are required to collect both State use tax and any municipal use taxes, should the Town adopt a use tax. This will include all online purchases where no prior sales tax has been collected.  As a rough estimate, a use tax could bring in anywhere from $375,000 - $600,000 on an annual basis in additional revenue. Telecommunications Tax A telecommunication tax is a tax on businesses providing telecommunication services in the Town.  This tax is levied on both wireless and wired communication service providers that would be paid for by users of the system.  As a rough estimate, a telecommunication tax could bring in anywhere from $130,000 - $280,000 on an annual basis in additional revenue. Commercial Rental Tax A commercial rental tax is a tax on the rental, leasing, and licensing for use of real property for commercial purposes.  This tax applies to landlords of commercial office leases and storage facilities. The Town’s current tax code exempts these activities from transaction privilege tax collection under Section 8A-445(m).  As a rough estimate, a commercial rental tax could bring in anywhere from $425,000 - $1,000,000 on an annual basis in additional revenue. All three of these categories are collected by the Town’s nearest neighbors, including the City of Tucson, Town of Marana, and Town of Sahuarita. It is the intent of staff to restrict utilization of these funds toward public safety capital, which currently does not have a dedicated funding source. A comparison of local tax collection is provided in Attachment 2. The Town held three online community engagement events in July to discuss the new tax and revised fee proposals. The second of three online community engagement events held in July was to discuss the proposed new tax categories. Key aspects of the discussion are detailed below: USE TAX AND TELECOMMUNICATIONS TAX There were no questions for either of these proposed tax categories.  COMMERCIAL RENTAL TAX  Being in commercial real estate for 30 years, 28 here in the greater Tucson area, I strongly advise against the commercial rental tax. Tenants regularly pursue cost savings when deciding where to lease space and rental tax is a significant issue. While I have been a champion of the Town of Oro Valley, most of my commercial real estate peers assert that new taxes are something to be avoided at all costs, considering the challenges to open new businesses as a whole. Respectfully, this will have the effect of steering commercial renters out of Oro Valley more than they already are by the perception of the Town being unfriendly to businesses. Staff response: Staff conducted a business forum on September 11, 2025, to gather additional feedback from the Oro Valley business community to help inform the ultimate Town Council decision. A summary of questions and comments from the forum are provided in Attachment 5.    OTHER TAX RELATED QUESTIONS  If the RTA fails to pass, would the Town be in a position of having to raise additional taxes to make-up the difference? Staff response: If the RTA is not approved, the Town would need to look at potentially raising the sales tax to help address the Town's funding needs. Costs continue to rise for things like the Town's "Pavement Preservation Program" and the Town needs to be prepared if there are funding shortfalls.     Would these funds be used for debt service for capital projects? Staff response: These funds could potentially be used for debt service.    Is there any chance of raising the sales tax or instituting a property tax down the road? Staff response: The aim is for these new tax categories to address Town funding needs without needing to make either of these changes. These are possible options in Oro Valley's future. However, the proposed tax categories/rates would raise revenue and achieve parity with adjacent jurisdictions. This keeps Oro Valley competitive in the region.  The Town conducted an Oro Valley Business Forum jointly with the Oro Valley Chamber of Commerce on September 11, 2025. The aim of the meeting was to focus on impacts specific to the business community and provide an opportunity for them to ask questions and provide feedback. The meeting was well attended and included a detailed discussion of the anticipated impacts to local businesses should the proposals be adopted by Town Council.  A recording of the meeting is available on the town's website at www.orovalleyaz.gov and a summary of questions and comments received during the forum is provided in Attachment 5.  STORMWATER UTILITY FEE (ATTACHMENT 2) As per Town Code 15-24-13 Section H, the Base Rate for the Stormwater Utility is required to guarantee adequate revenues to meet the expenses associated with stormwater management, which encompasses operations, maintenance, and capital improvements of the stormwater system in the Town. Following 1.5 years of dedicated effort by the Stormwater Utility Commission and a thorough examination of the current rate, it has been determined that the existing rate is inadequate. This rate does not adequately address the fundamental expenses associated with stormwater management, specifically capital improvement and projects associated with infrastructure maintenance and repair. The Stormwater Utility team conducted an analysis of the rates to establish the essential base rate required for financing the stormwater management program. The Stormwater Utility Commission unanimously supports a one-time rate increase from $4.50 per ERU (Equivalent Residential Unit) to $6.50 per ERU. The Town held the final online community engagement event on July 15, 2025, to discuss the proposed increase to the Stormwater Utility Fee. The Town did not receive any questions specific to the proposed fee increase.  On November 21, 2024, the Stormwater Utility Commission assessed staff recommendations derived from a stormwater rates analysis to ensure consistency with Town policies and voted to endorse the approval of the Stormwater Rates Analysis Report (Attachment 2). PARKS AND RECREATION FEES (ATTACHMENT 3) The Parks and Recreation Department is proposing fee increases for department memberships and rentals, with a focus on increases to non-resident rates for use (Attachment 3). The majority of proposed fees have not been increased in more than 10 years, while costs have steadily risen over this time. The department has been proactive in its approach, as evidenced by numerous meetings held with local organizations and leagues who would be impacted by these new fees. All meetings have been well received as the increases proposed have been deemed reasonable and fair. This proposal is the effort of many staff over a period of years to ensure all due diligence was completed as it relates to comparison fees and value included. It is important to note, that the increased fees generated by this proposal will be designated for future capital improvement projects within the increased fees generated by this proposal will be designated for future capital improvement projects within the department. The first of three online community engagement events held in July was to discuss the proposed increases to Parks and Recreation Fees. Key aspects of the discussion are detailed below: FACILITY MEMBERSHIP FEES  Why are only the younger memberships held the same? There was a resident inquiry regarding why youth memberships and why they aren't being increased at the same rate as other membership types.  Staff response: There is an ongoing effort to incentivize youth memberships due to generally low participation rates. Keeping the youth membership fees lower helps achieve the aim of the program.   Nominal increases every year make sense rather than big jumps every couple of years. Also, better at accounting for inflation? Proposal seems to make sense, and it would be a good move to be more systematic about yearly rate increases. Many residents expressed support for increasing parks and recreation fees nominally every 1–2 years, rather than more substantial rate increases every few years.  Staff response: Town staff agree that it could be beneficial in the future to incorporate nominal increases more frequently.  FACILITY AND FIELD RENTAL FEES  Why are pickleball court rental rates doubling, when others are increasing at a much lower percentage? Seems to be targeting the pickleball community. Pickleball rates for commercial indoor facilities are not too far from the proposed raters. Seems like the proposed rates have gone a little too far for the market. Raters for wholesale supply of players is in the same ballpark as commercial. Several questions were raised regarding the proposed pickleball court rental cost increase and whether it is proportional to other proposed increases. Staff response: The proposed rate for pickleball court rentals is commensurate with neighboring jurisdictions and staff consider the rate fair and appropriate.  After careful consideration of community feedback, the proposal included in Attachment 3 remains the same as the version considered by BFC in May and PRAB voted to recommend approval of the proposal at their meeting on September 9, 2025. SUMMARY AND RECOMMENDATION After careful consideration of the feedback received from the community, the proposals included in Attachment 1 (New Taxes), Attachment 2 (Stormwater Fee) and Attachment 3 (Parks and Recreation Fees) have not changed from the version considered by Town Council at the study session in June. On September 16, 2025 the Budget and Finance Commission voted to recommend approval of all three proposals.  FISCAL IMPACT: An estimate of the anticipated financial impact of each proposal is summarized below with additional information in each respective attachment: New tax categories and rates The proposed taxes are estimated to generate the following annual revenues:  Use tax: $375,000 - $600,00 Telecommunications tax: $130,000 - $280,000 Commercial rental tax: $425,000 - $1,000,000 Commercial rental tax: $425,000 - $1,000,000 Stormwater Utility Fee increase The proposed rate increase is estimated to generate $691,000 annually. This figure would be $345,500 for the first year and then $691,000 the second year if Council chooses to phase the implementation by $1 per ERU per month the first year and then another $1 per ERU per month the second year. Parks and Recreation Fee increases  The proposed rate increases are estimated to generate $400,000 annually for the department, which would roughly be split 50/50 between the General Fund and Community Center Fund.   SUGGESTED MOTION: This item is for discussion only. The new tax categories and rates, the Parks and Recreation fee proposals and a Notice of Intent (NOI) to raise the Stormwater Utility Fee will be presented for discussion and possible action on October 15. The formal Stormwater Utility fee rate increase will be considered at a public hearing in January 2026.   Attachments ATTACHMENT 1 - COMPARISON MATRIX  ATTACHMENT 2 - STORMWATER RATE ANALYSIS REPORT 2024  ATTACHMENT 3 - PARKS AND REC DEPARTMENT FEE PROPOSAL OVERVIEW  ATTACHMENT 4 - COMMUNITY ENGAGEMENT SUMMARIES  ATTACHMENT 5 - ORO VALLEY BUSINESS FORUM Q and A  Staff Presentation  Marana Sahuarita Tucson Oro Valley Advertising 0.00%0.00%0.00%2.50% Amusements 2.50%2.00%2.60%2.50% Contracting - Prime 4.00%4.00%2.60%4.00% Contracting - Speculative Builders 4.00%4.00%2.60%4.00% Contracting - Owner Builder 4.00%4.00%2.60%4.00% Job Printing 2.50%2.00%2.60%2.50% Manufactured Buildings 2.00%2.00%2.60%2.50% Timbering and Other Extraction 2.50%2.00%2.60%2.50% Severance - Metal Mining 0.10%0.10%0.10%0.10% Publication 2.50%2.00%2.60%2.50% Hotels 2.50%2.00%6.00%2.50% Bed Surtax (Additional Tax) (Per Night)0.00%0.00%4.00$ 0.00% Hotel/Motel (Additional Tax)6.00%2.00%0.00%6.00% Commercial Rental, Leasing, & Licensing for Use 2.50%2.00%2.60%0.00% Rental Occupancy 2.50%0.00%0.00%2.00% Rental, Leasing, & Licensing for Use of TPP 2.50%2.00%2.60%2.50% Restaurant and Bars 2.50%2.00%2.60%2.50% Retail Sales 2.50%2.00%2.60%2.50% MRRA Amount 2.50%2.00%2.60%2.50% Communications 4.00%2.00%2.60%0.00% Public Utility (Additional Communications)0.00%0.00%4.50%0.00% Transporting 2.50%2.00%2.60%2.50% Utilities 4.00%4.00%2.60%4.00% Public Utility (Additional Utility)0.00%0.00%4.50%0.00% Public Utility Right of Way 0.00%0.00%1.50%0.00% Use Tax Purchases 2.50%2.00%2.60%0.00% Use Tax From Inventory 2.50%2.00%2.60%0.00% Stormwater Utility Rate Analysis Report September 2024 DRAFT TOWN OF ORO VALLEY STORMWATER UTILITY STORMWATER RATE ANALYSIS REPORT SEPTEMBER 2024 ORO VALLEY TOWN COUNCIL Joseph Winfield, Mayor Melanie Barrett, Vice Mayor Timothy Bohen, Councilmember Harry “Mo” Green, II, MD, Councilmember Joyce Jones-Ivey, Councilmember Josh Nicolson, Councilmember Steve Solomon, Councilmember ORO VALLEY STORMWATER UTILITY COMMISSION Richard Crocker, Commission Chair Gary Mattson, Commission Vice-Chair Richard Hawkinson, Commission Member Robert Schlicher, Commission Member TOWN STAFF John Spiker, P.E., Stormwater Utility Manager Aimee Ramsey, Public Works Deputy Director DRAFT TABLE OF CONTENTS SECTION TITLE PAGE Executive Summary 1 Introduction 3 Methodology 4 Growth Rates 5 Future Drainage Needs 6 Debt Service 6 Cash Reserve Policy 6 Revenue Forecast 7 Revenue Needs 9 Proposed Financial Scenario 10 Recommendation on Stormwater Rates 12 Conclusion 12 Appendix DRAFT APPENDIX A. Proposed Financial Scenario Pro Forma A Stormwater Fund B. Proposed Stormwater Utility Fund Scenarios B-1 One Time Increase (SWUC Preferred) B-2 Every Two Years Increase B-3 Variable Increase B-4 Status Quo B-5 No Increase No Grant Funds B-6 Increase With Grant Funds B-7 Increase No Grant Funds C. 10-Year Capital Improvement Schedules C Stormwater Fund D. Assumptions for Proposed Financial Scenario D Stormwater Fund DRAFT - 1 - TOWN OF ORO VALLEY STROMWATER UTILITY STORMWATER RATES ANALYSIS REPORT SEPTEMBER 2024 Executive Summary An annual review of the revenue requirements and stormwater rates is an integral component in ensuring the long- term financial health of the Stormwater Utility. The Oro Valley Stormwater Utility Commission reviews and makes recommendations for stormwater revenue requirements, stormwater rates and fee structures. The Commission evaluates staff recommendations based on a rates analysis to ensure compliance with Town policies. Stormwater rates and service charges are reviewed annually in accordance with Town Code 15-24-13- H-3. This Stormwater Rates Analysis Report contains detailed information on the Stormwater Utility Fund. The Stormwater Utility Fund accounts for both operating as well as Capital Improvement Program expenses. Funds are analyzed annually to project revenue and revenue requirements. As an enterprise of the Town, the Stormwater Utility generates revenue from rates, fees and service charges and does not receive revenue from taxes or other monies from the General Fund. In accordance with policy, the stormwater rates analysis is performed annually based on the most up- to-date information available for a ten-year period. Although the analysis is forecasted for ten years, any rate adjustment considered would be approved only for the first year in the ten-year projection period. The Stormwater Utility Commission has made a recommendation on the proposed financial scenario. Under the proposed financial scenario, the Stormwater Utility Fund is projected to have a cash balance of $427,761 at the end of the ten-year projection period. This exceeds the cash reserve requirement described in Town Code 15-24-10. Operational needs and capital improvements are included in the analysis. The proposed financial scenario does not intend to utilize reserves to finance operational nor capital projects. DRAFT - 2 - The Stormwater Utility Commission and Stormwater Utility staff have made the following recommendations on stormwater rates in the proposed financial scenario for Fiscal Year 2025/26: A. Increase to the stormwater base rates A. The current and proposed monthly base rates for stormwater are shown in Table 1 below: Table 1 Account Type Current Rate Proposed Rate Monthly Increase Developed Residential Property* $4.50 per ERU $6.50 per ERU $2.00 per ERU Developed Commercial Property** $4.50 per ERU $6.50 per ERU $2.00 per ERU * Developed Residential Properties equal one Equivalent Residential Unit ** Developed Commercial Properties are billed the Stormwater Base Rate multiplied by the Equivalent Residential Unit The financial impact of the proposed base for a residential customer is an increase of $2.00 per month for a total of $6.50 per month. Commercial customers will experience the same Equivalent Residential Unit (ERU) increase of $2.00 per month but is a variable increase to each commercial property based upon the amount of impervious surface located on site. An ERU on commercial properties is derived from the amount of calculated impervious surface area divided by 4,000 square feet. The Stormwater Utility presents this stormwater rates analysis in support of the recommended rates contained in the proposed financial scenario. The Oro Valley Stormwater Utility Commission and Stormwater Utility staff respectfully recommend the proposed increase to the stormwater base rates as detailed in the proposed financial scenario. DRAFT - 3 - TOWN OF ORO VALLEY STORMWATER UTILITY STORMWATER RATES ANALYSIS REPORT SEPTEMBER 2024 Introduction The Oro Valley Stormwater Utility was established in 2001 as a self-supporting enterprise of the Town. The Stormwater Utility is comprised of a single fund established to meet federal, state and local stormwater quality and flood control regulations. Revenues for this fund include stormwater fees, service fees, miscellaneous charges, interest income, and non-Oro Valley grant funds. The expenses in this fund include personnel, operations, and maintenance of drainage infrastructure and programs, capital costs for existing drainage infrastructure improvements and related debt service. The Stormwater Utility pays the General Fund for services received including finance, human resources, fleet services, information technology, legal, insurance and rental of office space; however, it does not receive revenue from taxes or other payments from the General Fund. The revenue and expenses of the Stormwater Fund are used to determine if the Stormwater Utility meets any debt service coverage requirement as well as reserves established in the Town Code. DRAFT - 4 - Methodology Step 1: Ten-Year Financial Plan The first step of the stormwater rates analysis is to develop a ten-year financial plan that projects the Stormwater Utility’s revenues, expenses, capital project financing, annual debt service, and cash reserve funding. The factors used in determining the projections are growth rates, future stormwater regulations, any debt service coverage requirements, cash reserve requirements and inflation rates. The financial plan is used to determine the revenue adjustment, which allows the Stormwater Utility to recover adequate revenues to fund expenses and meet cash reserves. Step 2: Revenue Requirement Determination for Test Year After completing the ten-year financial plan, the rate making process can begin by determining the revenue requirement for the test year, also known as the rate-setting year. The test year for this water rates analysis is Fiscal Year 2024/25 which will be used to capture the rate impacts resulting from a change in rate structure without a revenue adjustment. The revenue requirement should sufficiently fund the Stormwater Utility’s operating and maintenance (O&M) costs, any debt service, capital improvement program (CIP) costs, and cash reserve funding for the upcoming Fiscal Year 2025/26 budget. Step 3: Stormwater Rates Analysis The annual cost of providing stormwater service, or the revenue requirements, is then distributed to residential and commercial customers based on their Equivalent Residential Units. Fixed and variable costs are analyzed to determine the impact on customers. Step 4: Rate Design and Calculation After allocating the revenue requirements to each customer, the rate design and calculation process can start. Rates are designed to properly support and optimize the Stormwater Utility’s policies and objectives. Rates also act as a public information tool in communicating these policy objectives to customers. Step 5: Administrative Record Preparation and Rate Adoption The final step in a stormwater rates analysis is to develop the administrative record in preparation for the rate adoption process. The administrative record, also known as the Stormwater Rates Analysis Report, documents the results of the stormwater rate analysis and presents the methodologies, rationale, justifications, and calculations utilized to determine the proposed stormwater rates. DRAFT - 5 - Growth Rates As indicated in the graph below, new stormwater customers continue to remain stable due to continued development within the Town. The Stormwater Utility had a total of 111 new Equivalent Residential Units (ERU) added over the last fiscal year. At the end of Fiscal Year 2023/24, the customer base totaled 27,534 ERU’s. In developing the growth projections, assistance was received from the Town’s Community and Economic Development Department for the current housing inventory, along with plans that have been submitted for review, to conservatively estimate future growth. The growth projections used for this report are consistent with the Town’s financial forecasting and are shown below in Table 2. Table 2 Annual Growth Fiscal Year 2017/18 2018/19 2019/20 2020/21 2021/22 2022/23 2023/24 2024/25 2025/26 Residential Unit ERUs 16446 16556 16669 18215 18460 19173 19284 19383 19478 Commercial Units ERUs 6229 6229 6229 8154 8250 8250 8250 8662 8819 Fiscal Year 2026/27 2027/28 2028/29 2029/30 2030/31 2031/32 2032/33 2033/34 2034/35 Residential Unit ERUs 19608 19780 19900 19980 19980 19980 19980 19980 19980 Commercial Units ERUs 8819 8819 8819 8819 8819 8819 8819 8819 8819 DRAFT - 6 - Future Drainage Needs – Project and Asset Assessment The Stormwater Utility staff are routinely evaluating the existing public drainage assets for operational and conditional function. This task is to ensure originally intended capacity and stability are maintained and ready for the next storm event. These evaluations of existing drainage infrastructure deliver an overall condition index (OCI) rating of the asset taking into account asset age, structural integrity and operational condition. The OCI helps the Stormwater Utility assign necessary maintenance tasks to promote a longer lifespan of the asset and ensure a measure of safety to the public. The Stormwater Utility is also tasked with developing a Capital Improvement Program for drainage needs. These tasks/projects are considered larger than an operational and maintenance level work effort. A project evaluation is completed for each drainage need identified. Impacts to health safety and welfare are paramount when evaluating future drainage needs, followed by compliance to the stormwater quality and quantity regulations. Other criteria taken into account for drainage project ranking are construction impacts to the public, operations and maintenance impacts, asset preservation and partnering opportunities. Debt Service The Stormwater Utility does not currently hold any debt nor is any forecasted in the future ten-year plan. Stormwater Utility operating and capital needs are proposed to be funded out of the Stormwater Fund. Cash Reserve Policy The cash reserve policy may be found in the Town Code 15-24-10. The code states, “The Stormwater Utility shall maintain reserve funds for unexpected and/or emergency needs. The need for use of said funds shall be determined by the Board with recommendations from the Commission, or in the case of an emergency where the Commission cannot be convened in a timely manner, with recommendation from the Director. This reserve shall be fifteen percent (15%) of the collected annual stormwater fees.” The emergency needs related to flooding will more than likely far exceed available monies in the stormwater utility reserve fund. The intent is to begin contacting for services to address emergency needs utilizing the stormwater reserve funds while full direction is realized. In the proposed financial scenario, the projected cash reserve balance for the Stormwater Fund for each year in the analysis is listed below in Table 3 showing compliance in all years. Table 3 Stormwater Fund FY/24/25 FY/25/26 FY26/27 FY27/28 FY/28/29 FY/29/30 FY30/31 FY31/32 FY32/33 FY/33/34 FY/34/35 Cash Reserve Requirement $ 227,550 $ 332,610 $ 334,620 $ 336,015 $ 33,696 $ 336,960 $ 336,960 $ 336,960 $ 336,960 $ 336,960 $ 336,690 Cash Reserve Balance $ 667,553 $ 1,029,126 $ 1,296,680 $ 1,343,990 $ 1,653,516 $ 1,652,719 $ 1,410,243 $ 1,369,765 $ 990,144 $ 1,009,919 $ 427,761 DRAFT - 7 - Cash reserve balances are projected to remain stable over the ten-year projection period. This is a result of the Stormwater Utility’s ability to leverage support from the Pima County Regional Flood Control District as well as successful award of grant funds from the Federal Emergency Management Agency and the Arizona Department of Emergency and Military Affairs. These two avenues of support are expected to continue in the future. Stormwater Fund Revenue Forecast The Stormwater Fund is projected to have a cash balance of $1,029,126 at the beginning of Fiscal Year 2025- 26 and is projected to have a balance of $427,761 at the end of Fiscal Year 2034/35. These funds may be used for operating costs including personnel, operations and maintenance, capital improvements for the existing stormwater system. The following revenue forecast was based on analysis of the Stormwater Utility’s historic trends and projected growth in the number of new developed properties. The revenue forecast includes proposed increases in the stormwater base rates as shown below in Table 4. Table 4 Account Type Current Rate Proposed Rate Monthly Increase Developed Residential Property* $4.50 per ERU $6.50 per ERU $2.00 per ERU Developed Commercial Property** $4.50 per ERU $6.50 per ERU $2.00 per ERU DRAFT - 8 - The stormwater base rate is projected to increase once at the beginning of Fiscal Year 2025/26 and be annually reviewed per code. The proposed base rate increase will generate a 46 percent increase in operations and maintenance and capital improvement program areas. The Stormwater Fee is proposed to increase from $4.50 per Equivalent Residential Unit (ERU) per month to $6.50 for residential customers and $4.50 per 4,000 square feet of impervious surface per month to $6.50 per 4,000 square feet of impervious surface per month. This model of stormwater billing has been adopted as the most equitable approach as it correlates the fee to the stormwater runoff based upon property impervious surface amount. Other revenue generated by the Utility consists of service fees and charges. Service fees and charges include funds received include, but are not limited to, new service establishment fees, late fees, inspection fees and plan review fees. The total of all service fees and charges are projected to generate annual revenue of $1,500. Projections for interest income for the Stormwater Fund are a cumulative total over the ten-year period. The interest rate assumed for the projection period is 3 percent annually. Table 5 Stormwater Fund FY/24/25 FY/25/26 FY26/27 FY27/28 FY/28/29 FY/29/30 FY30/31 FY31/32 FY32/33 FY/33/34 FY/34/35 Revenue $ 1,517,000 $2,217,400 $2,230,800 $2,240,100 $2,246,400 $2,246,400 $2,246,400 $2,246,400 $2,246,400 $2,246,400 $2,246,400 DRAFT - 9 - Revenue Needs Below in Table 6 is a summary of revenue needs for the Stormwater Fund that were used in the financial analysis. Table 6 Stormwater Fund Expenses FY/24/25 FY/25/26 FY26/27 FY27/28 FY/28/29 FY/29/30 Personnel $1,018,770 $1,046,277 $1,074,526 $1,101,389 $1,128,924 $1,157,147 Operations and Maintenance $ 421,834 $ 434,950 $ 448,500 $ 562,350 $ 476,550 $ 641,250 Administrative Services $ 250,638 $ 258,250 $ 266,100 $ 274,200 $ 282,500 $ 291,050 Professional Services $ 67,436 $ 69,550 $ 71,700 $ 173,900 $ 76,150 $ 228,500 Capital Improvement Program $ 440,000 $ 372,100 $ 257,720 $ 326,550 $ 328,900 $ 446,300 Stormwater Fund Expenses FY30/31 FY31/32 FY32/33 FY/33/34 FY/34/35 Personnel $1,186,076 $1,215,728 $1,246,121 $1,277,274 $1,309,206 Operations and Maintenance $ 556,550 $ 522,350 $ 538,500 $ 555,201 $ 572,402 Administrative Services $ 299,850 $ 308,950 $ 318,250 $ 327,850 $ 337,750 Professional Services $ 130,950 $ 83,500 $ 86,100 $ 88,750 $ 91,450 Capital Improvement Program $ 463,750 $ 546,300 $ 838,900 $ 391,650 $ 594,450 Projected personnel costs include 3 percent annual merit increases, retirement contributions of 12.29 percent and 3 percent annual increases in health care costs. There are no new employees being added within the ten- year projection period. The projected operations and maintenance (O&M) costs for the stormwater systems are based on the Fiscal Year 2024/25 budget and include inflationary increases of 3 percent annually. Projected capital outlay for existing system improvements in this analysis includes drainage infrastructure repair and improvements, equipment replacement, town wide drainage studies, storm sewer system analysis, and vehicle replacement. These projects will be cash-funded in the ten-year projection period. The schedule for ten-year capital improvements may be found in Appendix C. DRAFT - 10 - Proposed Financial Scenario Prior to developing forecasts, financial considerations were evaluated relating to projected operating costs, capital expenses and the Stormwater Utility’s existing cash reserves. When developing a proposed financial scenario, the goal of the Stormwater Utility is to ensure all existing rate setting requirements are met and proposed rate adjustments are palatable to the existing customers. The development of the stormwater fee structure began in 2004 when impervious surface square footage was utilized to develop a commercial rate commiserate with residential properties. This equitable approach is utilized by other government agencies within the state of Arizona and allows for the collection of stormwater revenues based upon expected stormwater runoff from a given property. The City of Flagstaff has been utilizing this methodology since 2003. The Stormwater Utility has utilized this method to encourage reduction in impervious surfaces, thereby minimizing stormwater runoff onto public and private properties. This approach also encourages stormwater collection on site, known as stormwater harvesting, which reduces downstream floodwaters and promotes vegetative growth on the subject property thereby reducing heat island effects. Several scenarios have been presented to the Stormwater Utility Commission for their evaluation. Variable rates increases, sunset rate increases, and multiple one time rate increases to the stormwater rate were evaluated. These scenarios are provided in Appendix B. Stormwater Rates vary across the country with little to no consistency on how stormwater quality and quantity are accomplished. Here in the state of Arizona there exists very few dedicated local government Stormwater Utilities. Most entities absorb the stormwater requirements through existing entities; Public Works Departments, Environmental Quality Departments, Development Services Department, and Water and Sanitary Sewer entities make up the majority of government led stormwater services. Fees are similarly collected in a variety of manners; permit fees, utility fees, and property taxes are the primary source of revenue. The Oro Valley Stormwater Utility Rate was structured after the City of Flagstaff Stormwater Rate which also utilize the Equivalent Residential Unit billing structure. Table 7 below illustrates how the City of Flagstaff Stormwater Utility has increased their base rates to compensate for stormwater quality and floodplain management needs. The City of Surprise has also been selected as a close approximation of the Oro Valley Stormwater Utility Rate model for comparative purposes DRAFT - 11 - Table 7 Year Oro Valley* Flagstaff** Surprise*** 2018 $4.50 per ERU $3.74 per ERU $2.75 per ERD 2019 $4.50 per ERU $3.74 per ERU $2.75 per ERD 2020 $4.50 per ERU $3.74 per ERU $2.75 per ERD 2021 $4.50 per ERU $3.74 per ERU $2.75 per ERD 2022 $4.50 per ERU $3.74 per ERU $2.75 per ERD 2023 $4.50 per ERU $4.19 per ERU $2.75 per ERD 2024 $4.50 per ERU $4.69 per ERU $2.75 per ERD 2025 $6.50 per ERU $5.25 per ERU $2.75 per ERD 2026 $6.50 per ERU $5.88 per ERU $2.75 per ERD 2027 $6.50 per ERU $6.59 per ERU $2.75 per ERD 2028 $6.50 per ERU $7.38 per ERU $2.75 per ERD 2029 $6.50 per ERU $7.38 per ERU $2.75 per ERD 2030 $6.50 per ERU $7.38 per ERU $2.75 per ERD 2031 $6.50 per ERU $7.38 per ERU $2.75 per ERD 2032 $6.50 per ERU $7.38 per ERU $2.75 per ERD 2033 $6.50 per ERU $7.38 per ERU $2.75 per ERD 2034 $6.50 per ERU $7.38 per ERU $2.75 per ERD * Oro Valley Equivalent Residential Units equal one for residential properties and are calculated based upon every 4,000 square feet of impervious surface for commercial properties ** Flagstaff Equivalent Residential Units are calculated based upon every 1,200 square feet of impervious surface *** Surprise Equivalent Dwelling Units are one for residential properties and are calculated based upon every 3,420 square feet of impervious surface for commercial properties The Stormwater Utility developed a proposed financial scenario that supports key financial and policy goals. The proposed scenario generates the revenue needed to maintain an adequate cash balance over the projected ten-year period therefore meeting the cash reserve requirements in each year. The pro forma for the proposed financial scenario may be found in Appendix A. The assumptions used to develop the financial projections in the proposed financial scenario may be found in Appendix D. DRAFT - 12 - Recommendation on Stormwater Rates After reviewing the analysis of the revenue requirements contained in the proposed financial scenario, the Stormwater Utility Commission and Stormwater Utility staff recommend the following for Fiscal Year 2025/26: A. Increase to the stormwater monthly base rate A. Tables 8 shown below are the proposed stormwater base rate increases for Equivalent Residential Units. Oro Valley Stormwater Utility customers will see an increase in their bill of $2.00 per Equivalent Residential Unit per month. Table 8 Account Type Current Rate Proposed Rate Monthly Increase Developed Residential Property* $4.50 per ERU $6.50 per ERU $2.00 per ERU Developed Commercial Property** $4.50 per ERU $6.50 per ERU $2.00 per ERU Conclusion On an annual basis, the stormwater rates analysis is prepared with the most up-to-date information available. Operational needs and capital improvement requirements change annually and are carefully evaluated when they are included in the analysis. It is important that the Stormwater Utility performs a rate analysis every year to plan for changes in operating costs, capital costs or debt service. This Stormwater Rate Analysis Report is presented in support of the stormwater rates contained in the proposed financial scenario. The Oro Valley Stormwater Utility Commission and the Stormwater Utility staff respectfully recommend approval of the stormwater rate detailed in the proposed financial scenario. The Oro Valley Stormwater Utility staff and Commission are dedicated to serving the Town of Oro Valley and the customers of its Stormwater Utility and extend their appreciation to the Mayor and Council for consideration of the recommended stormwater rate. DRAFT APPENDIX A Proposed Financial Scenario Pro Forma A Stormwater Fund DRAFT Stormwater Fund 10 Year Forecast One Tme Increase FY 2022/23 FY 2023/24 FY 2024/25 FY 2025/26 FY 2026/27 FY 2027/28 FY 28/29 FY 29/30 FY 30/31 FY 31/32 FY 32/33 FY 33/34 FY 34/35 Fiscal Previous Approved # of Units: Residential 19,173 19,284 19,383 19,478 19,608 19,780 19,900 19,980 19,980 19,980 19,980 19,980 19,980 NEW:projected Residential 222 99 95 130 172 120 80 - - - - - - Commercial 8,250 8,250 8,662 8,819 8,819 8,819 8,819 8,819 8,819 8,819 8,819 8,819 8,819 NEW:projected Commercial - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Total Units:27,645 27,633 28,140 28,427 28,599 28,719 28,799 28,799 28,799 28,799 28,799 28,799 28,799 Carry forward Fund Balance Match Finance 1,125,140$ 844,508$ 1,014,657$ 667,553$ 1,029,126$ 1,296,680$ 1,343,990$ 1,653,516$ 1,652,719$ 1,410,243$ 1,369,765$ 990,144$ 1,009,919$ Includes vehicle cash reserve Revenue: Monthly Stormwater Utility Fee/Unit 4.50$ 4.50$ 4.50$ 6.50$ 6.50$ 6.50$ 6.50$ 6.50$ 6.50$ 6.50$ 6.50$ 6.50$ 6.50$ Gross Revenues 1,476,786$ 1,512,000$ 1,517,000$ 2,217,400$ 2,230,800$ 2,240,100$ 2,246,400$ 2,246,400$ 2,246,400$ 2,246,400$ 2,246,400$ 2,246,400$ 2,246,400$ Grant Funds Federal - 210,000 - 480,000 3,800,000 - - - - - - - Other (Grants or Pima County)- - - - 400,000 - - - - - - - - Late Fees 310 310 1,500 1,500 1,500 1,500 1,500 1,500 1,500 1,500 1,500 1,500 1,500 Interest 11,683 11,683 19,000 - - - - - - - - - - 1,488,779$ 1,523,993$ 1,747,500$ 2,218,900$ 3,112,300$ 6,041,600$ 2,247,900$ 2,247,900$ 2,247,900$ 2,247,900$ 2,247,900$ 2,247,900$ 2,247,900$ Expenses: Personnel Total Personnel:865,272$ 951,557$ 1,018,770$ 1,046,277$ 1,074,526$ 1,101,389$ 1,128,924$ 1,157,147$ 1,186,076$ 1,215,728$ 1,246,121$ 1,277,274$ 1,309,206$ Contracts/Services Outside Professional Services*128,592 40,000 67,436 69,550 71,700 173,900 76,150 228,500 130,950 83,500 86,100 88,750 91,450 Administration & Financial Serv Health Clinic 3,636 3,650 4,421 4,600 4,750 4,900 5,050 5,250 5,450 5,650 5,850 6,050 6,250 General Outside Reviews - - - - - - - - - - - - - Drainage Reviews 78040 - - - - - - - - - - - - - Surveys/Data Management Studies 78041 28,303 10,000 10,000 10,300 10,650 11,000 11,350 11,700 12,100 12,500 12,900 13,300 13,700 Drainage Criteria Manual Update 78042 - - - - - - - - - - - - - Reviews/Surveys/Data/Studies 26,848 26,350 53,015 54,650 56,300 58,000 59,750 61,550 63,400 65,350 67,350 69,400 71,500 DCM Computation Add On 39,908 - - - - - - - - - - - - Mutterer's Feasibility And Alternatives Study 29,898 - - - - - - - - - - - - Stormdrain Asset Camera Condition Assessment - - - - - - 150,000 - - - - - Town-Wide Drainage Study - - - - 100,000 - - - - - - - Catalina Alternative - - - - - - - 50,000 - - - - Misc Studies - - - - - - - - - - - - Vehicle Repair & Maintenance a 2,820 5,384 5,384 5,550 5,750 5,950 6,150 6,350 6,550 6,750 7,000 7,250 7,500 Equipment Repair & Maintenance a 49,093 27,951 27,951 28,800 29,700 30,600 31,550 32,500 33,500 34,550 35,600 36,700 37,850 Rentals a - 1,000 1,000 1,050 1,100 1,150 1,200 1,250 1,300 1,350 1,400 1,450 1,500 Telecommunications - 69 - - - - - - - - - 1 2 Postage a 50 - 300 350 400 450 500 550 600 650 700 750 800 Printing & Binding a 1,023 114 1,500 1,550 1,600 1,650 1,700 1,800 1,900 2,000 2,100 2,200 2,300 Travel & Training a 2,780 1,191 8,800 9,100 9,400 9,700 10,000 10,300 10,650 11,000 11,350 11,700 12,100 Membership a 375 807 2,925 3,050 3,150 3,250 3,350 3,500 3,650 3,800 3,950 4,100 4,250 Office Supplies a 1,690 1,472 4,150 4,300 4,450 4,600 4,750 4,900 5,050 5,250 5,450 5,650 5,850 Gasoline a 23,096 14,173 13,000 13,400 13,850 14,300 14,750 15,200 15,700 16,200 16,700 17,250 17,800 Non-Capitalized Equipment 304 - - - - - - - - - - - - Uniforms*a 603 1,824 2,550 2,650 2,750 2,850 2,950 3,050 3,150 3,250 3,350 3,500 3,650 Bad Debt Expense a 2,966 2,500 2,500 2,600 2,700 2,800 2,900 3,000 3,100 3,200 3,300 3,400 3,550 Field Supplies a 237 21,003 25,000 25,750 26,550 27,350 28,200 29,050 29,950 30,850 31,800 32,800 33,800 Depreciation - - - - - - - - - - - - - Regulatory 5,001 5,000 7,200 7,450 7,700 7,950 8,200 8,450 8,750 9,050 9,350 9,650 9,950 Safety a - 1,500 1,500 1,550 1,600 1,650 1,700 1,800 1,900 2,000 2,100 2,200 2,300 Administration & Financial Serv 173,166 172,300 250,638 258,250 266,100 274,200 282,500 291,050 299,850 308,950 318,250 327,850 337,750 Financial & Budget - 50,400 - - - - - - - - - - - Human Resources - 14,300 - - - - - - - - - - - Innovation and Technology - 60,600 - - - - - - - - - - - Legal - 8,500 - - - - - - - - - - - Public Works - 11,600 - - - - - - - - - - - Town Clerk - 1,600 - - - - - - - - - - - Town Manager's Office - 25,300 - - - - - - - - - - - General Services Indirect 175,938 181,250 186,700 192,350 198,150 204,100 210,250 216,600 223,100 229,800 236,700 General Services Direct 1,700 1,800 1,900 2,000 2,100 2,200 2,300 2,400 2,500 2,600 2,700 Water Billing - - 73,000 75,200 77,500 79,850 82,250 84,750 87,300 89,950 92,650 95,450 98,350 Software Maintenance & Lic - - - - - - - - - - - - - Stormwater Maintenance (OPS)- - - - - - - - - - - - - Total Operations/Maintenance:391,797$ 296,287$ 421,834$ 434,950$ 448,500$ 562,350$ 476,550$ 641,250$ 556,550$ 522,350$ 538,500$ 555,201$ 572,402$ Capital Outlay/Projects Other - - - - - - - - - - - - - Minor Assets - 6,000 4,000 4,000 4,000 4,000 4,000 4,000 4,000 4,000 4,000 4,000 4,000 Grant Capacity - - - - - - - - - - - - - Vehicle - - - - - - 45,000 - - - - 45,000 - Building (Gate)- - - - - - - - - - - - - Equipment 6,654 - - - 350,000 - - - 280,000 - - - 350,000 Equipment - - - - - - - - - - - - - Town wide Drainage Projects 507,896 100,000 650,000 372,100 967,720 4,326,550 328,900 446,300 463,750 546,300 838,900 391,650 594,450 General Infrastructure Maintenance - 20,000 20,000 20,600 21,250 21,900 22,600 23,300 24,000 24,750 25,500 26,300 27,100 General Culvert Cleaning - Contractor 48,673 50,000 50,000 51,500 53,050 54,650 56,300 58,000 59,750 61,550 63,400 65,350 67,350 Other - - - - - - - - - - - - - Saddlehorn Place - - - - - - - - - - - - - Camino Bajio & Paseo Cordona - - - - - - - - - - - - - MUP Market Place - - - - - - - - - - - - - El Con Golf Path - - - - - - - - - - - - - Rancho Vistoso Culvert Repair - 30,000 - - - - - - - - - - - Mutterer's Construction - - - - - 250,000 250,000 - - - - - - Cat Ridge Alt - Erosion Repair 2 290,502 - - - - - - - - - - - - Gravel Pit Wash - - - - - - - - - - - - - Sierra Wash Construction (3-Phases)SW003 168,720 - 280,000 - 310,000 - - - - - - - - Pusch Ridge Golf Course Hole 9 Pathway Bank Protection - - - 300,000 - - - - - - - - Oro Valley Country Club SW004 - 300,000 - - - - - - - - - - Pomegranate - - - - 183,420 - - - - - - - - Highland Wash - - - - 400,000 4,000,000 - - - - - - - Lamber Lane II - - - - - - - - - - - - - Proposed Future Projects - - - - - - - - - - - - - Highlands Wash at Tangerine Road Culvert - - - - - - 365,000 - - - - Gravel Pit Wash at Tangerine Road Culvert - - - - - - - 380,000 - - - Carmack Wash at Shadow Mountian Estates - - - - - - - - 750,000 - - Highlands Wash at Monterra Ridge - - - - - - - - 460,000 - - Naranja Park Drainage Improvements - - - - - - - - - 300,000 - Canada Golf Course Driange Improvements - - - - - - - - - - 250,000 Conquistador Golf Course Driange Improvements 250,000 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - CAPITAL LEASE PRINCIPAL-43937 - - - - - - - - - - - - - CAPITAL LEASE INTEREST - - - - - - - - - - - - - Total Capital Outlay 514,550$ 106,000$ 654,000$ 376,100$ 1,321,720$ 4,330,550$ 332,900$ 450,300$ 747,750$ 550,300$ 842,900$ 395,650$ 948,450$ Total Expenses:1,771,619$ 1,353,844$ 2,094,604$ 1,857,327$ 2,844,746$ 5,994,289$ 1,938,374$ 2,248,697$ 2,490,376$ 2,288,378$ 2,627,521$ 2,228,125$ 2,830,058$ Surplus /(Deficit)(282,840) 170,149 (347,104) 361,573 267,554 47,311 309,526 (797) (242,476) (40,478) (379,621) 19,775 (582,158) Total Cash Balance 842,300$ 1,014,657$ 667,553$ 1,029,126$ 1,296,680$ 1,343,990$ 1,653,516$ 1,652,719$ 1,410,243$ 1,369,765$ 990,144$ 1,009,919$ 427,761$ Contingency - 433,100$ -$ 241,500$ 806,800$ 802,600$ 1,047,000$ 996,000$ 969,400$ 878,700$ 423,800$ 443,500$ 161,200$ Vehicle Cash Reserve 304,607$ 354,774$ 404,940$ 455,107$ 155,274$ 205,440$ 269,607$ 319,774$ 103,940$ 154,107$ 229,474$ 229,474$ (70,360)$ Cash Balance 537,693$ 659,883$ 262,612$ 574,019$ 1,141,406$ 1,138,550$ 1,383,909$ 1,332,945$ 1,306,302$ 1,215,658$ 760,670$ 780,445$ 498,121$ 36.4%43.6%17.3%25.9%51.2%50.8%61.6%59.3%58.2%54.1%33.9%34.7%22.2% Total 842,300 1,014,657 667,553 1,029,126 1,296,680 1,343,990 1,653,516 1,652,719 1,410,243 1,369,765 990,144 1,009,919 427,761 Reserves 57.0%67.1%44.0%46.4%58.1%60.0%73.6%73.6%62.8%61.0%44.1%45.0%19.0% 2025 Projected 10 Year CIP Senario Stormwater Fee Increase Grant Funding Received DRAFT A-3 APPENDIX B Proposed Financial Scenarios B-1 One Time Increase (SWUC Preferred) B-2 Every Two Years Increase B-3 Variable Increase B-4 Status Quo B-5 No Increase No Grant Funds B-6 Increase With Grant Funds B-7 Increase No Grant Funds DRAFT Stormwater Fund 10 Year Forecast One Tme Increase FY 2022/23 FY 2023/24 FY 2024/25 FY 2025/26 FY 2026/27 FY 2027/28 FY 28/29 FY 29/30 FY 30/31 FY 31/32 FY 32/33 FY 33/34 FY 34/35 Fiscal Previous Approved # of Units: Residential 19,173 19,284 19,383 19,478 19,608 19,780 19,900 19,980 19,980 19,980 19,980 19,980 19,980 NEW:projected Residential 222 99 95 130 172 120 80 - - - - - - Commercial 8,250 8,250 8,662 8,819 8,819 8,819 8,819 8,819 8,819 8,819 8,819 8,819 8,819 NEW:projected Commercial - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Total Units:27,645 27,633 28,140 28,427 28,599 28,719 28,799 28,799 28,799 28,799 28,799 28,799 28,799 Carry forward Fund Balance Match Finance 1,125,140$ 844,508$ 1,014,657$ 667,553$ 1,029,126$ 1,296,680$ 1,343,990$ 1,653,516$ 1,652,719$ 1,410,243$ 1,369,765$ 990,144$ 1,009,919$ Includes vehicle cash reserve Revenue: Monthly Stormwater Utility Fee/Unit 4.50$ 4.50$ 4.50$ 6.50$ 6.50$ 6.50$ 6.50$ 6.50$ 6.50$ 6.50$ 6.50$ 6.50$ 6.50$ Gross Revenues 1,476,786$ 1,512,000$ 1,517,000$ 2,217,400$ 2,230,800$ 2,240,100$ 2,246,400$ 2,246,400$ 2,246,400$ 2,246,400$ 2,246,400$ 2,246,400$ 2,246,400$ Grant Funds Federal - 210,000 - 480,000 3,800,000 - - - - - - - Other (Grants or Pima County)- - - - 400,000 - - - - - - - - Late Fees 310 310 1,500 1,500 1,500 1,500 1,500 1,500 1,500 1,500 1,500 1,500 1,500 Interest 11,683 11,683 19,000 - - - - - - - - - - 1,488,779$ 1,523,993$ 1,747,500$ 2,218,900$ 3,112,300$ 6,041,600$ 2,247,900$ 2,247,900$ 2,247,900$ 2,247,900$ 2,247,900$ 2,247,900$ 2,247,900$ Expenses: Personnel Total Personnel:865,272$ 951,557$ 1,018,770$ 1,046,277$ 1,074,526$ 1,101,389$ 1,128,924$ 1,157,147$ 1,186,076$ 1,215,728$ 1,246,121$ 1,277,274$ 1,309,206$ Contracts/Services Outside Professional Services*128,592 40,000 67,436 69,550 71,700 173,900 76,150 228,500 130,950 83,500 86,100 88,750 91,450 Administration & Financial Serv Health Clinic 3,636 3,650 4,421 4,600 4,750 4,900 5,050 5,250 5,450 5,650 5,850 6,050 6,250 General Outside Reviews - - - - - - - - - - - - - Drainage Reviews 78040 - - - - - - - - - - - - - Surveys/Data Management Studies 78041 28,303 10,000 10,000 10,300 10,650 11,000 11,350 11,700 12,100 12,500 12,900 13,300 13,700 Drainage Criteria Manual Update 78042 - - - - - - - - - - - - - Reviews/Surveys/Data/Studies 26,848 26,350 53,015 54,650 56,300 58,000 59,750 61,550 63,400 65,350 67,350 69,400 71,500 DCM Computation Add On 39,908 - - - - - - - - - - - - Mutterer's Feasibility And Alternatives Study 29,898 - - - - - - - - - - - - Stormdrain Asset Camera Condition Assessment - - - - - - 150,000 - - - - - Town-Wide Drainage Study - - - - 100,000 - - - - - - - Catalina Alternative - - - - - - - 50,000 - - - - Misc Studies - - - - - - - - - - - - Vehicle Repair & Maintenance a 2,820 5,384 5,384 5,550 5,750 5,950 6,150 6,350 6,550 6,750 7,000 7,250 7,500 Equipment Repair & Maintenance a 49,093 27,951 27,951 28,800 29,700 30,600 31,550 32,500 33,500 34,550 35,600 36,700 37,850 Rentals a - 1,000 1,000 1,050 1,100 1,150 1,200 1,250 1,300 1,350 1,400 1,450 1,500 Telecommunications - 69 - - - - - - - - - 1 2 Postage a 50 - 300 350 400 450 500 550 600 650 700 750 800 Printing & Binding a 1,023 114 1,500 1,550 1,600 1,650 1,700 1,800 1,900 2,000 2,100 2,200 2,300 Travel & Training a 2,780 1,191 8,800 9,100 9,400 9,700 10,000 10,300 10,650 11,000 11,350 11,700 12,100 Membership a 375 807 2,925 3,050 3,150 3,250 3,350 3,500 3,650 3,800 3,950 4,100 4,250 Office Supplies a 1,690 1,472 4,150 4,300 4,450 4,600 4,750 4,900 5,050 5,250 5,450 5,650 5,850 Gasoline a 23,096 14,173 13,000 13,400 13,850 14,300 14,750 15,200 15,700 16,200 16,700 17,250 17,800 Non-Capitalized Equipment 304 - - - - - - - - - - - - Uniforms*a 603 1,824 2,550 2,650 2,750 2,850 2,950 3,050 3,150 3,250 3,350 3,500 3,650 Bad Debt Expense a 2,966 2,500 2,500 2,600 2,700 2,800 2,900 3,000 3,100 3,200 3,300 3,400 3,550 Field Supplies a 237 21,003 25,000 25,750 26,550 27,350 28,200 29,050 29,950 30,850 31,800 32,800 33,800 Depreciation - - - - - - - - - - - - - Regulatory 5,001 5,000 7,200 7,450 7,700 7,950 8,200 8,450 8,750 9,050 9,350 9,650 9,950 Safety a - 1,500 1,500 1,550 1,600 1,650 1,700 1,800 1,900 2,000 2,100 2,200 2,300 Administration & Financial Serv 173,166 172,300 250,638 258,250 266,100 274,200 282,500 291,050 299,850 308,950 318,250 327,850 337,750 Financial & Budget - 50,400 - - - - - - - - - - - Human Resources - 14,300 - - - - - - - - - - - Innovation and Technology - 60,600 - - - - - - - - - - - Legal - 8,500 - - - - - - - - - - - Public Works - 11,600 - - - - - - - - - - - Town Clerk - 1,600 - - - - - - - - - - - Town Manager's Office - 25,300 - - - - - - - - - - - General Services Indirect 175,938 181,250 186,700 192,350 198,150 204,100 210,250 216,600 223,100 229,800 236,700 General Services Direct 1,700 1,800 1,900 2,000 2,100 2,200 2,300 2,400 2,500 2,600 2,700 Water Billing - - 73,000 75,200 77,500 79,850 82,250 84,750 87,300 89,950 92,650 95,450 98,350 Software Maintenance & Lic - - - - - - - - - - - - - Stormwater Maintenance (OPS)- - - - - - - - - - - - - Total Operations/Maintenance:391,797$ 296,287$ 421,834$ 434,950$ 448,500$ 562,350$ 476,550$ 641,250$ 556,550$ 522,350$ 538,500$ 555,201$ 572,402$ Capital Outlay/Projects Other - - - - - - - - - - - - - Minor Assets - 6,000 4,000 4,000 4,000 4,000 4,000 4,000 4,000 4,000 4,000 4,000 4,000 Grant Capacity - - - - - - - - - - - - - Vehicle - - - - - - 45,000 - - - - 45,000 - Building (Gate)- - - - - - - - - - - - - Equipment 6,654 - - - 350,000 - - - 280,000 - - - 350,000 Equipment - - - - - - - - - - - - - Town wide Drainage Projects 507,896 100,000 650,000 372,100 967,720 4,326,550 328,900 446,300 463,750 546,300 838,900 391,650 594,450 General Infrastructure Maintenance - 20,000 20,000 20,600 21,250 21,900 22,600 23,300 24,000 24,750 25,500 26,300 27,100 General Culvert Cleaning - Contractor 48,673 50,000 50,000 51,500 53,050 54,650 56,300 58,000 59,750 61,550 63,400 65,350 67,350 Other - - - - - - - - - - - - - Saddlehorn Place - - - - - - - - - - - - - Camino Bajio & Paseo Cordona - - - - - - - - - - - - - MUP Market Place - - - - - - - - - - - - - El Con Golf Path - - - - - - - - - - - - - Rancho Vistoso Culvert Repair - 30,000 - - - - - - - - - - - Mutterer's Construction - - - - - 250,000 250,000 - - - - - - Cat Ridge Alt - Erosion Repair 2 290,502 - - - - - - - - - - - - Gravel Pit Wash - - - - - - - - - - - - - Sierra Wash Construction (3-Phases)SW003 168,720 - 280,000 - 310,000 - - - - - - - - Pusch Ridge Golf Course Hole 9 Pathway Bank Protection - - - 300,000 - - - - - - - - Oro Valley Country Club SW004 - 300,000 - - - - - - - - - - Pomegranate - - - - 183,420 - - - - - - - - Highland Wash - - - - 400,000 4,000,000 - - - - - - - Lamber Lane II - - - - - - - - - - - - - Proposed Future Projects - - - - - - - - - - - - - Highlands Wash at Tangerine Road Culvert - - - - - - 365,000 - - - - Gravel Pit Wash at Tangerine Road Culvert - - - - - - - 380,000 - - - Carmack Wash at Shadow Mountian Estates - - - - - - - - 750,000 - - Highlands Wash at Monterra Ridge - - - - - - - - 460,000 - - Naranja Park Drainage Improvements - - - - - - - - - 300,000 - Canada Golf Course Driange Improvements - - - - - - - - - - 250,000 Conquistador Golf Course Driange Improvements 250,000 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - CAPITAL LEASE PRINCIPAL-43937 - - - - - - - - - - - - - CAPITAL LEASE INTEREST - - - - - - - - - - - - - Total Capital Outlay 514,550$ 106,000$ 654,000$ 376,100$ 1,321,720$ 4,330,550$ 332,900$ 450,300$ 747,750$ 550,300$ 842,900$ 395,650$ 948,450$ Total Expenses:1,771,619$ 1,353,844$ 2,094,604$ 1,857,327$ 2,844,746$ 5,994,289$ 1,938,374$ 2,248,697$ 2,490,376$ 2,288,378$ 2,627,521$ 2,228,125$ 2,830,058$ Surplus /(Deficit)(282,840) 170,149 (347,104) 361,573 267,554 47,311 309,526 (797) (242,476) (40,478) (379,621) 19,775 (582,158) Total Cash Balance 842,300$ 1,014,657$ 667,553$ 1,029,126$ 1,296,680$ 1,343,990$ 1,653,516$ 1,652,719$ 1,410,243$ 1,369,765$ 990,144$ 1,009,919$ 427,761$ Contingency - 433,100$ -$ 241,500$ 806,800$ 802,600$ 1,047,000$ 996,000$ 969,400$ 878,700$ 423,800$ 443,500$ 161,200$ Vehicle Cash Reserve 304,607$ 354,774$ 404,940$ 455,107$ 155,274$ 205,440$ 269,607$ 319,774$ 103,940$ 154,107$ 229,474$ 229,474$ (70,360)$ Cash Balance 537,693$ 659,883$ 262,612$ 574,019$ 1,141,406$ 1,138,550$ 1,383,909$ 1,332,945$ 1,306,302$ 1,215,658$ 760,670$ 780,445$ 498,121$ 36.4%43.6%17.3%25.9%51.2%50.8%61.6%59.3%58.2%54.1%33.9%34.7%22.2% Total 842,300 1,014,657 667,553 1,029,126 1,296,680 1,343,990 1,653,516 1,652,719 1,410,243 1,369,765 990,144 1,009,919 427,761 Reserves 57.0%67.1%44.0%46.4%58.1%60.0%73.6%73.6%62.8%61.0%44.1%45.0%19.0% 2025 Projected 10 Year CIP Senario Stormwater Fee Increase Grant Funding Received DRAFT Stormwater Fund 5 Year Forecast Increases every two years FY 2022/23 FY 203/24 FY 2024/25 FY 2025/26 FY 2026/27 FY 2027/28 FY 28/29 FY 29/30 FY 30/31 FY 31/32 FY 32/33 FY 33/34 FY 34/35 Fiscal Current Budget REQ. # of Units: Residential 19,173 19,284 19,383 19,478 19,608 19,780 19,900 19,980 19,980 19,980 19,980 19,980 19,980 NEW:projected Residential 222 99 95 130 172 120 80 - - - - - - Commercial 8,250 8,250 8,662 8,819 8,819 8,819 8,819 8,819 8,819 8,819 8,819 8,819 8,819 NEW:projected Commercial - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Total Units:27,645 27,633 28,140 28,427 28,599 28,719 28,799 28,799 28,799 28,799 28,799 28,799 28,799 Carry forward Fund Balance Match Finance 1,125,140$ 844,508$ 1,014,657$ 655,130$ 672,312$ 437,093$ 319,309$ 463,437$ 470,240$ 365,562$ 375,929$ 577,400$ 678,515$ Includes vehicle cash reserve Revenue: Monthly Stormwater Utility Fee/Unit 4.50$ 4.50$ 4.50$ 5.50$ 5.50$ 6.00$ 6.00$ 6.50$ 6.50$ 7.00$ 7.00$ 7.00$ 7.00$ Gross Revenues 1,476,786$ 1,512,000$ 1,517,000$ 1,876,200$ 1,887,600$ 2,067,800$ 2,073,600$ 2,246,400$ 2,246,400$ 2,419,200$ 2,419,200$ 2,419,200$ 2,419,200$ Grant Funds Federal - 210,000 - 280,000 3,800,000 Other (Grants or Pima County)- - - - 400,000 - - - - - - - - Late Fees 310 310 1,500 1,500 1,500 1,500 1,500 1,500 1,500 1,500 1,500 1,500 1,500 Interest 11,683 11,683 - - - - - - - - - - - 1,488,779$ 1,523,993$ 1,728,500$ 1,877,700$ 2,569,100$ 5,869,300$ 2,075,100$ 2,247,900$ 2,247,900$ 2,420,700$ 2,420,700$ 2,420,700$ 2,420,700$ Expenses: Personnel Total Personnel:865,272$ 951,557$ 1,018,858$ 1,046,367$ 1,074,619$ 1,101,485$ 1,129,022$ 1,157,247$ 1,186,178$ 1,215,833$ 1,246,229$ 1,277,384$ 1,309,319$ Contracts/Services Outside Professional Services*128,592 40,000 60,771 62,650 64,600 166,600 68,650 220,800 123,050 75,350 77,700 80,100 82,550 Vehicle Repair & Maintenance a 2,820 5,384 5,384 5,550 5,750 5,950 6,150 6,350 6,550 6,750 7,000 7,250 7,500 Equipment Repair & Maintenance a 49,093 27,951 27,951 28,800 29,700 30,600 31,550 32,500 33,500 34,550 35,600 36,700 37,850 Rentals a - 1,000 1,000 1,050 1,100 1,150 1,200 1,250 1,300 1,350 1,400 1,450 1,500 Telecommunications - 69 - - - - - - - - - 1 2 Postage a 50 - 300 350 400 450 500 550 600 650 700 750 800 Printing & Binding a 1,023 114 1,500 1,550 1,600 1,650 1,700 1,800 1,900 2,000 2,100 2,200 2,300 Travel & Training a 2,780 1,191 8,800 9,100 9,400 9,700 10,000 10,300 10,650 11,000 11,350 11,700 12,100 Membership a 375 807 2,925 3,050 3,150 3,250 3,350 3,500 3,650 3,800 3,950 4,100 4,250 Office Supplies a 1,690 1,472 4,150 4,300 4,450 4,600 4,750 4,900 5,050 5,250 5,450 5,650 5,850 Gasoline a 23,096 14,173 13,000 13,400 13,850 14,300 14,750 15,200 15,700 16,200 16,700 17,250 17,800 Non-Capitalized Equipment 304 - - - - - - - - - - - - Uniforms*a 603 1,824 2,550 2,650 2,750 2,850 2,950 3,050 3,150 3,250 3,350 3,500 3,650 Bad Debt Expense a 2,966 2,500 2,500 2,600 2,700 2,800 2,900 3,000 3,100 3,200 3,300 3,400 3,550 Field Supplies a 237 21,003 25,000 25,750 26,550 27,350 28,200 29,050 29,950 30,850 31,800 32,800 33,800 Depreciation - - - - - - - - - - - - - Regulatory 5,001 5,000 7,200 7,450 7,700 7,950 8,200 8,450 8,750 9,050 9,350 9,650 9,950 Safety a - 1,500 1,500 1,550 1,600 1,650 1,700 1,800 1,900 2,000 2,100 2,200 2,300 Administration & Financial Serv 173,166 172,300 250,638 258,250 266,100 274,200 282,500 291,050 299,850 308,950 318,250 327,850 337,750 Financial & Budget - 50,400 - - - - - - - - - - - Human Resources - 14,300 - - - - - - - - - - - Innovation and Technology - 60,600 - - - - - - - - - - - Legal - 8,500 - - - - - - - - - - - Public Works - 11,600 - - - - - - - - - - - Town Clerk - 1,600 - - - - - - - - - - - Town Manager's Office - 25,300 - - - - - - - - - - - General Services Indirect 175,938 181,250 186,700 192,350 198,150 204,100 210,250 216,600 223,100 229,800 236,700 General Services Direct 1,700 1,800 1,900 2,000 2,100 2,200 2,300 2,400 2,500 2,600 2,700 Water Billing - - 73,000 75,200 77,500 79,850 82,250 84,750 87,300 89,950 92,650 95,450 98,350 Software Maintenance & Lic - - - - - - - - - - - - - Stormwater Maintenance (OPS)- - - - - - - - - - - - - Total Operations/Maintenance:391,797$ 296,287$ 415,169$ 428,050$ 441,400$ 555,050$ 469,050$ 633,550$ 548,650$ 514,200$ 530,100$ 546,551$ 563,502$ Capital Outlay/Projects Other - - - - - - - - - - - - - Minor Assets - 6,000 4,000 4,000 4,000 4,000 4,000 4,000 4,000 4,000 4,000 4,000 4,000 Grant Capacity - - - - - - - - - - - - - Vehicle - - - - - - 45,000 - - - - 45,000 - Building (Gate)- - - - - - - - - - - - - Equipment 6,654 - - - 350,000 - - - 280,000 - - - 350,000 Equipment - - - - - - - - - - - - - Town wide Drainage Projects 507,896 100,000 650,000 382,100 934,300 4,326,550 328,900 446,300 333,750 676,300 438,900 491,650 394,450 General Infrastructure Maintenance - 20,000 20,000 20,600 21,250 21,900 22,600 23,300 24,000 24,750 25,500 26,300 27,100 General Culvert Cleaning - Contractor 48,673 50,000 50,000 51,500 53,050 54,650 56,300 58,000 59,750 61,550 63,400 65,350 67,350 Other - - - - - - - - - - - - - Saddlehorn Place - - - - - - - - - - - - - Camino Bajio & Paseo Cordona - - - - - - - - - - - - - MUP Market Place - - - - - - - - - - - - - El Con Golf Path - - - - - - - - - - - - - Rancho Vistoso Culvert Repair - 30,000 - - - - - - - - - - - Mutterer's Construction - - - - - 250,000 250,000 - - - - - - Cat Ridge Alt - Erosion Repair 2 290,502 - - - - - - - - - - - - Gravel Pit Wash - - - - - - - - - - - - - Sierra Wash Construction (3-Phases)SW003 168,720 - 280,000 310,000 - - - - - - - - Pusch Ridge Golf Course Pathway Bank Protection Improvements - - - - 300,000 - - - - - - - Oro Valley Country Club SW004 - 300,000 - - - - - - - - - - Pomegranate - - - - 160,000 - - - - - - - - Highland Wash - - - - 400,000 4,000,000 - - - - - - - Lamber Lane II - - - - - - - - - - - - - Proposed Future Projects - - - - - - - - - - - - - Highlands Wash at Tangerine Road Culvert - - - - - - 365,000 - - - - Gravel Pit Wash at Tangerine Road Culvert - - - - - - - 250,000 130,000 - - - Carmack Wash at Shadow Mountian Estates - - - - - - - - 350,000 400,000 Highlands Wash at Monterra Ridge - - - - - - - - 460,000 - - Naranja Park Drainage Improvements - - - - - - - - - 300,000 Canada Golf Course Driange Improvements - - - - - - - - - - Conquistador Golf Course Driange Improvements - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - CAPITAL LEASE PRINCIPAL-43937 - - - - - - - - - - - - - CAPITAL LEASE INTEREST - - - - - - - - - - - - - Total Capital Outlay 514,550$ 106,000$ 654,000$ 386,100$ 1,288,300$ 4,330,550$ 332,900$ 450,300$ 617,750$ 680,300$ 442,900$ 495,650$ 748,450$ Total Expenses:1,771,619$ 1,353,844$ 2,088,027$ 1,860,517$ 2,804,319$ 5,987,085$ 1,930,972$ 2,241,097$ 2,352,578$ 2,410,333$ 2,219,229$ 2,319,585$ 2,621,271$ Surplus /(Deficit)(282,840) 170,149 (359,527) 17,183 (235,219) (117,785) 144,128 6,803 (104,678) 10,367 201,471 101,115 (200,571) Total Cash Balance 842,300$ 1,014,657$ 655,130$ 672,312$ 437,093$ 319,309$ 463,437$ 470,240$ 365,562$ 375,929$ 577,400$ 678,515$ 477,944$ Contingency - 433,100$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 86,200$ 185,500$ Vehicle Cash Reserve 304,607$ 354,774$ 404,940$ 455,107$ 155,274$ 205,440$ 269,607$ 319,774$ 103,940$ 154,107$ 229,474$ 229,474$ (70,360)$ Cash Balance 537,693$ 659,883$ 250,189$ 217,205$ 281,820$ 113,868$ 193,830$ 150,466$ 261,621$ 221,822$ 347,926$ 449,041$ 548,303$ 36.4%43.6%16.5%11.6%14.9%5.5%9.3%6.7%11.6%9.2%14.4%18.6%22.7% Total 842,300 1,014,657 655,130 672,312 437,093 319,309 463,437 470,240 365,562 375,929 577,400 678,515 477,944 Reserves 57.0%67.1%43.2%35.8%23.2%15.4%22.3%20.9%16.3%15.5%23.9%28.0%19.8% 2025 Projected 10 Year CIP Senario Stormwater Fee Increase Grant Funding Received DRAFT Stormwater Fund 5 Year Forecast Variable Increases FY 2022/23 FY 203/24 FY 2024/25 FY 2025/26 FY 2026/27 FY 2027/28 FY 28/29 FY 29/30 FY 30/31 FY 31/32 FY 32/33 FY 33/34 FY 34/35 Fiscal Current Budget REQ. # of Units: Residential 19,173 19,284 19,383 19,478 19,608 19,780 19,900 19,980 19,980 19,980 19,980 19,980 19,980 NEW:projected Residential 222 99 95 130 172 120 80 - - - - - - Commercial 8,250 8,250 8,662 8,819 8,819 8,819 8,819 8,819 8,819 8,819 8,819 8,819 8,819 NEW:projected Commercial - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Total Units:27,645 27,633 28,140 28,427 28,599 28,719 28,799 28,799 28,799 28,799 28,799 28,799 28,799 Carry forward Fund Balance Match Finance 1,125,140$ 844,508$ 1,014,657$ 655,130$ 511,812$ 326,593$ 398,809$ 465,737$ 645,340$ 583,462$ 723,829$ 525,300$ 726,415$ Includes vehicle cash reserve Revenue: Monthly Stormwater Utility Fee/Unit 4.50$ 4.50$ 4.50$ 5.00$ 5.50$ 6.00$ 6.50$ 7.00$ 7.00$ 7.00$ 7.00$ 7.00$ 7.00$ Gross Revenues 1,476,786$ 1,512,000$ 1,517,000$ 1,705,700$ 1,887,600$ 2,067,800$ 2,246,400$ 2,419,200$ 2,419,200$ 2,419,200$ 2,419,200$ 2,419,200$ 2,419,200$ Grant Funds Federal - 210,000 - 280,000 3,800,000 Other (Grants or Pima County)- - - - 400,000 - - - - - - - - Late Fees 310 310 1,500 1,500 1,500 1,500 1,500 1,500 1,500 1,500 1,500 1,500 1,500 Interest 11,683 11,683 - - - - - - - - - - - 1,488,779$ 1,523,993$ 1,728,500$ 1,707,200$ 2,569,100$ 5,869,300$ 2,247,900$ 2,420,700$ 2,420,700$ 2,420,700$ 2,420,700$ 2,420,700$ 2,420,700$ Expenses: Personnel Total Personnel:865,272$ 951,557$ 1,018,858$ 1,046,367$ 1,074,619$ 1,101,485$ 1,129,022$ 1,157,247$ 1,186,178$ 1,215,833$ 1,246,229$ 1,277,384$ 1,309,319$ Contracts/Services Outside Professional Services*128,592 40,000 60,771 62,650 64,600 166,600 68,650 220,800 123,050 75,350 77,700 80,100 82,550 Vehicle Repair & Maintenance a 2,820 5,384 5,384 5,550 5,750 5,950 6,150 6,350 6,550 6,750 7,000 7,250 7,500 Equipment Repair & Maintenance a 49,093 27,951 27,951 28,800 29,700 30,600 31,550 32,500 33,500 34,550 35,600 36,700 37,850 Rentals a - 1,000 1,000 1,050 1,100 1,150 1,200 1,250 1,300 1,350 1,400 1,450 1,500 Telecommunications - 69 - - - - - - - - - 1 2 Postage a 50 - 300 350 400 450 500 550 600 650 700 750 800 Printing & Binding a 1,023 114 1,500 1,550 1,600 1,650 1,700 1,800 1,900 2,000 2,100 2,200 2,300 Travel & Training a 2,780 1,191 8,800 9,100 9,400 9,700 10,000 10,300 10,650 11,000 11,350 11,700 12,100 Membership a 375 807 2,925 3,050 3,150 3,250 3,350 3,500 3,650 3,800 3,950 4,100 4,250 Office Supplies a 1,690 1,472 4,150 4,300 4,450 4,600 4,750 4,900 5,050 5,250 5,450 5,650 5,850 Gasoline a 23,096 14,173 13,000 13,400 13,850 14,300 14,750 15,200 15,700 16,200 16,700 17,250 17,800 Non-Capitalized Equipment 304 - - - - - - - - - - - - Uniforms*a 603 1,824 2,550 2,650 2,750 2,850 2,950 3,050 3,150 3,250 3,350 3,500 3,650 Bad Debt Expense a 2,966 2,500 2,500 2,600 2,700 2,800 2,900 3,000 3,100 3,200 3,300 3,400 3,550 Field Supplies a 237 21,003 25,000 25,750 26,550 27,350 28,200 29,050 29,950 30,850 31,800 32,800 33,800 Depreciation - - - - - - - - - - - - - Regulatory 5,001 5,000 7,200 7,450 7,700 7,950 8,200 8,450 8,750 9,050 9,350 9,650 9,950 Safety a - 1,500 1,500 1,550 1,600 1,650 1,700 1,800 1,900 2,000 2,100 2,200 2,300 Administration & Financial Serv 173,166 172,300 250,638 258,250 266,100 274,200 282,500 291,050 299,850 308,950 318,250 327,850 337,750 Financial & Budget - 50,400 - - - - - - - - - - - Human Resources - 14,300 - - - - - - - - - - - Innovation and Technology - 60,600 - - - - - - - - - - - Legal - 8,500 - - - - - - - - - - - Public Works - 11,600 - - - - - - - - - - - Town Clerk - 1,600 - - - - - - - - - - - Town Manager's Office - 25,300 - - - - - - - - - - - General Services Indirect 175,938 181,250 186,700 192,350 198,150 204,100 210,250 216,600 223,100 229,800 236,700 General Services Direct 1,700 1,800 1,900 2,000 2,100 2,200 2,300 2,400 2,500 2,600 2,700 Water Billing - - 73,000 75,200 77,500 79,850 82,250 84,750 87,300 89,950 92,650 95,450 98,350 Software Maintenance & Lic - - - - - - - - - - - - - Stormwater Maintenance (OPS)- - - - - - - - - - - - - Total Operations/Maintenance:391,797$ 296,287$ 415,169$ 428,050$ 441,400$ 555,050$ 469,050$ 633,550$ 548,650$ 514,200$ 530,100$ 546,551$ 563,502$ Capital Outlay/Projects Other - - - - - - - - - - - - - Minor Assets - 6,000 4,000 4,000 4,000 4,000 4,000 4,000 4,000 4,000 4,000 4,000 4,000 Grant Capacity - - - - - - - - - - - - - Vehicle - - - - - - 45,000 - - - - 45,000 - Building (Gate)- - - - - - - - - - - - - Equipment 6,654 - - - 350,000 - - - 280,000 - - - 350,000 Equipment - - - - - - - - - - - - - Town wide Drainage Projects 507,896 100,000 650,000 372,100 884,300 4,136,550 578,900 446,300 463,750 546,300 838,900 391,650 544,450 General Infrastructure Maintenance - 20,000 20,000 20,600 21,250 21,900 22,600 23,300 24,000 24,750 25,500 26,300 27,100 General Culvert Cleaning - Contractor 48,673 50,000 50,000 51,500 53,050 54,650 56,300 58,000 59,750 61,550 63,400 65,350 67,350 Other - - - - - - - - - - - - - Saddlehorn Place - - - - - - - - - - - - - Camino Bajio & Paseo Cordona - - - - - - - - - - - - - MUP Market Place - - - - - - - - - - - - - El Con Golf Path - - - - - - - - - - - - - Rancho Vistoso Culvert Repair - 30,000 - - - - - - - - - - - Mutterer's Construction - - - - - 500,000 - - - - - - Cat Ridge Alt - Erosion Repair 2 290,502 - - - - - - - - - - - - Gravel Pit Wash - - - - - - - - - - - - - Sierra Wash Construction (3-Phases)SW003 168,720 - 280,000 - 310,000 - - - - - - - - Pusch Ridge Golf Course Pathway Bank Protection Improvements - - - 300,000 - - - - - - - - Oro Valley Country Club SW004 - 300,000 - - - - - - - - - - Pomegranate - - - - 100,000 60,000 - - - - - - - Highland Wash - - - - 400,000 4,000,000 - - - - - - - Lamber Lane II - - - - - - - - - - - - - Proposed Future Projects - - - - - - - - - - - - - Highlands Wash at Tangerine Road Culvert - - - - - - 365,000 - - - - Gravel Pit Wash at Tangerine Road Culvert - - - - - - - 380,000 - - - Carmack Wash at Shadow Mountian Estates - - - - - - - - - 750,000 - Highlands Wash at Monterra Ridge - - - - - - - - 460,000 - - Naranja Park Drainage Improvements - 300,000 - Canada Golf Course Driange Improvements - - - - - - - - - - 250,000 Conquistador Golf Course Driange Improvements - - - - - - - - - 200,000 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - CAPITAL LEASE PRINCIPAL-43937 - - - - - - - - - - - - - CAPITAL LEASE INTEREST - - - - - - - - - - - - - Total Capital Outlay 514,550$ 106,000$ 654,000$ 376,100$ 1,238,300$ 4,140,550$ 582,900$ 450,300$ 747,750$ 550,300$ 842,900$ 395,650$ 898,450$ Total Expenses:1,771,619$ 1,353,844$ 2,088,027$ 1,850,517$ 2,754,319$ 5,797,085$ 2,180,972$ 2,241,097$ 2,482,578$ 2,280,333$ 2,619,229$ 2,219,585$ 2,771,271$ Surplus /(Deficit)(282,840) 170,149 (359,527) (143,317) (185,219) 72,215 66,928 179,603 (61,878) 140,367 (198,529) 201,115 (350,571) Total Cash Balance 842,300$ 1,014,657$ 655,130$ 511,812$ 326,593$ 398,809$ 465,737$ 645,340$ 583,462$ 723,829$ 525,300$ 726,415$ 375,844$ Contingency - 433,100$ -$ -$ -$ -$ -$ -$ 116,700$ 206,900$ -$ 134,100$ 83,400$ Vehicle Cash Reserve 304,607$ 354,774$ 404,940$ 455,107$ 155,274$ 205,440$ 269,607$ 319,774$ 103,940$ 154,107$ 229,474$ 229,474$ (70,360)$ Cash Balance 537,693$ 659,883$ 250,189$ 56,705$ 171,320$ 193,368$ 196,130$ 325,566$ 479,521$ 569,722$ 295,826$ 496,941$ 446,203$ 36.4%43.6%16.5%3.3%9.1%9.4%8.7%13.5%19.8%23.6%12.2%20.5%18.4% Total 842,300 1,014,657 655,130 511,812 326,593 398,809 465,737 645,340 583,462 723,829 525,300 726,415 375,844 Reserves 57.0%67.1%43.2%30.0%17.3%19.3%20.7%26.7%24.1%29.9%21.7%30.0%15.5% 2025 Projected 10 Year CIP Senario Stormwater Fee Increase Grant Funding Received DRAFT Stormwater Fund 5 Year Forecast 5/9/2024 FY 2022/23 FY 203/24 FY 2024/25 FY 2025/26 FY 2026/27 FY 2027/28 FY 28/29 FY 29/30 FY 30/31 FY 31/32 FY 32/33 FY 33/34 FY 34/35 Fiscal Current Budget REQ. # of Units: Residential 19,173 19,284 19,383 19,478 19,608 19,780 19,900 19,980 19,980 19,980 19,980 19,980 19,980 NEW:projected Residential 222 99 95 130 172 120 80 - - - - - - Commercial 8,250 8,250 8,662 8,819 8,819 8,819 8,819 8,819 8,819 8,819 8,819 8,819 8,819 NEW:projected Commercial - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Total Units:27,645 27,633 28,140 28,427 28,599 28,719 28,799 28,799 28,799 28,799 28,799 28,799 28,799 Carry forward Fund Balance Match Finance 1,125,140$ 844,508$ 1,014,657$ 655,130$ 811,812$ 566,593$ 448,809$ 765,737$ 1,010,340$ 963,462$ 1,183,829$ 1,275,300$ 1,076,415$ Includes vehicle cash reserve Revenue: Monthly Stormwater Utility Fee/Unit 4.50$ 4.50$ 4.50$ 5.00$ 5.50$ 6.00$ 6.50$ 7.00$ 7.00$ 7.00$ 7.00$ 7.00$ 7.00$ Gross Revenues 1,476,786$ 1,512,000$ 1,517,000$ 1,705,700$ 1,887,600$ 2,067,800$ 2,246,400$ 2,419,200$ 2,419,200$ 2,419,200$ 2,419,200$ 2,419,200$ 2,419,200$ Grant Funds Federal - 210,000 - 280,000 3,800,000 Other (Grants or Pima County)- - - - 400,000 - - - - - - - - Late Fees 310 310 1,500 1,500 1,500 1,500 1,500 1,500 1,500 1,500 1,500 1,500 1,500 Interest 11,683 11,683 - - - - - - - - - - - 1,488,779$ 1,523,993$ 1,728,500$ 1,707,200$ 2,569,100$ 5,869,300$ 2,247,900$ 2,420,700$ 2,420,700$ 2,420,700$ 2,420,700$ 2,420,700$ 2,420,700$ Expenses: Personnel Total Personnel:865,272$ 951,557$ 1,018,858$ 1,046,367$ 1,074,619$ 1,101,485$ 1,129,022$ 1,157,247$ 1,186,178$ 1,215,833$ 1,246,229$ 1,277,384$ 1,309,319$ Contracts/Services Outside Professional Services*128,592 40,000 60,771 62,650 64,600 166,600 68,650 220,800 123,050 75,350 77,700 80,100 82,550 Vehicle Repair & Maintenance a 2,820 5,384 5,384 5,550 5,750 5,950 6,150 6,350 6,550 6,750 7,000 7,250 7,500 Equipment Repair & Maintenance a 49,093 27,951 27,951 28,800 29,700 30,600 31,550 32,500 33,500 34,550 35,600 36,700 37,850 Rentals a - 1,000 1,000 1,050 1,100 1,150 1,200 1,250 1,300 1,350 1,400 1,450 1,500 Telecommunications - 69 - - - - - - - - - 1 2 Postage a 50 - 300 350 400 450 500 550 600 650 700 750 800 Printing & Binding a 1,023 114 1,500 1,550 1,600 1,650 1,700 1,800 1,900 2,000 2,100 2,200 2,300 Travel & Training a 2,780 1,191 8,800 9,100 9,400 9,700 10,000 10,300 10,650 11,000 11,350 11,700 12,100 Membership a 375 807 2,925 3,050 3,150 3,250 3,350 3,500 3,650 3,800 3,950 4,100 4,250 Office Supplies a 1,690 1,472 4,150 4,300 4,450 4,600 4,750 4,900 5,050 5,250 5,450 5,650 5,850 Gasoline a 23,096 14,173 13,000 13,400 13,850 14,300 14,750 15,200 15,700 16,200 16,700 17,250 17,800 Non-Capitalized Equipment 304 - - - - - - - - - - - - Uniforms*a 603 1,824 2,550 2,650 2,750 2,850 2,950 3,050 3,150 3,250 3,350 3,500 3,650 Bad Debt Expense a 2,966 2,500 2,500 2,600 2,700 2,800 2,900 3,000 3,100 3,200 3,300 3,400 3,550 Field Supplies a 237 21,003 25,000 25,750 26,550 27,350 28,200 29,050 29,950 30,850 31,800 32,800 33,800 Depreciation - - - - - - - - - - - - - Regulatory 5,001 5,000 7,200 7,450 7,700 7,950 8,200 8,450 8,750 9,050 9,350 9,650 9,950 Safety a - 1,500 1,500 1,550 1,600 1,650 1,700 1,800 1,900 2,000 2,100 2,200 2,300 Administration & Financial Serv 173,166 172,300 250,638 258,250 266,100 274,200 282,500 291,050 299,850 308,950 318,250 327,850 337,750 Financial & Budget - 50,400 - - - - - - - - - - - Human Resources - 14,300 - - - - - - - - - - - Innovation and Technology - 60,600 - - - - - - - - - - - Legal - 8,500 - - - - - - - - - - - Public Works - 11,600 - - - - - - - - - - - Town Clerk - 1,600 - - - - - - - - - - - Town Manager's Office - 25,300 - - - - - - - - - - - General Services Indirect 175,938 181,250 186,700 192,350 198,150 204,100 210,250 216,600 223,100 229,800 236,700 General Services Direct 1,700 1,800 1,900 2,000 2,100 2,200 2,300 2,400 2,500 2,600 2,700 Water Billing - - 73,000 75,200 77,500 79,850 82,250 84,750 87,300 89,950 92,650 95,450 98,350 Software Maintenance & Lic - - - - - - - - - - - - - Stormwater Maintenance (OPS)- - - - - - - - - - - - - Total Operations/Maintenance:391,797$ 296,287$ 415,169$ 428,050$ 441,400$ 555,050$ 469,050$ 633,550$ 548,650$ 514,200$ 530,100$ 546,551$ 563,502$ Capital Outlay/Projects Other - - - - - - - - - - - - - Minor Assets - 6,000 4,000 4,000 4,000 4,000 4,000 4,000 4,000 4,000 4,000 4,000 4,000 Grant Capacity - - - - - - - - - - - - - Vehicle - - - - - - 45,000 - - - - 45,000 - Building (Gate)- - - - - - - - - - - - - Equipment 6,654 - - - 350,000 - - - 280,000 - - - 350,000 Equipment - - - - - - - - - - - - - Town wide Drainage Projects 507,896 100,000 650,000 72,100 944,300 4,326,550 328,900 381,300 448,750 466,300 548,900 791,650 994,450 General Infrastructure Maintenance - 20,000 20,000 20,600 21,250 21,900 22,600 23,300 24,000 24,750 25,500 26,300 27,100 General Culvert Cleaning - Contractor 48,673 50,000 50,000 51,500 53,050 54,650 56,300 58,000 59,750 61,550 63,400 65,350 67,350 Other - - - - - - - - - - - - - Saddlehorn Place - - - - - - - - - - - - - Camino Bajio & Paseo Cordona - - - - - - - - - - - - - MUP Market Place - - - - - - - - - - - - - El Con Golf Path - - - - - - - - - - - - - Rancho Vistoso Culvert Repair - 30,000 - - - - - - - - - - - Mutterer's Construction - - - - - 250,000 250,000 - - - - - - Cat Ridge Alt - Erosion Repair 2 290,502 - - - - - - - - - - - - Gravel Pit Wash - - - - - - - - - - - - - Sierra Wash Construction (3-Phases)SW003 168,720 - 280,000 - 310,000 - - - - - - - - Pusch Ridge Golf Course Pathway Bank Protection Improvements - - - - - - - 300,000 - - - - - Oro Valley Country Club SW004 - 300,000 - - - - - - - - - - Pomegranate - - - - 160,000 - - - - - - - - Highland Wash - - - - 400,000 4,000,000 - - - - - - - Lamber Lane II - - - - - - - - - - - - - Proposed Future Projects - - - - - - - - - - - - - Highlands Wash at Tangerine Road Culvert - - - - - - - 365,000 - - - - Gravel Pit Wash at Tangerine Road Culvert - - - - - - - - 380,000 - - - Calle Concordia Roadside Drainage - - - - - - - - - - - 150,000 Carmack Wash at Shadow Mountian Estates - - - - - - - - - 460,000 - - Moore Road Roadside Drainage - 150,000 - Shannon Road Roadside Drianage - - - - - - - - - - 150,000 750,000 Highlands Wash at Monterra Ridge - - - - - - - - - 400,000 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - CAPITAL LEASE PRINCIPAL-43937 - - - - - - - - - - - - - CAPITAL LEASE INTEREST - - - - - - - - - - - - - Total Capital Outlay 514,550$ 106,000$ 654,000$ 76,100$ 1,298,300$ 4,330,550$ 332,900$ 385,300$ 732,750$ 470,300$ 552,900$ 795,650$ 1,348,450$ Total Expenses:1,771,619$ 1,353,844$ 2,088,027$ 1,550,517$ 2,814,319$ 5,987,085$ 1,930,972$ 2,176,097$ 2,467,578$ 2,200,333$ 2,329,229$ 2,619,585$ 3,221,271$ Surplus /(Deficit)(282,840) 170,149 (359,527) 156,683 (245,219) (117,785) 316,928 244,603 (46,878) 220,367 91,471 (198,885) (800,571) Total Cash Balance 842,300$ 1,014,657$ 655,130$ 811,812$ 566,593$ 448,809$ 765,737$ 1,010,340$ 963,462$ 1,183,829$ 1,275,300$ 1,076,415$ 275,844$ Contingency - 433,100$ -$ 100,900$ 128,200$ -$ 159,200$ 327,700$ 496,700$ 666,900$ 683,000$ 484,100$ -$ Vehicle Cash Reserve 304,607$ 354,774$ 404,940$ 455,107$ 155,274$ 205,440$ 269,607$ 319,774$ 103,940$ 154,107$ 229,474$ 229,474$ (70,360)$ Cash Balance 537,693$ 659,883$ 250,189$ 356,705$ 411,320$ 243,368$ 496,130$ 690,566$ 859,521$ 1,029,722$ 1,045,826$ 846,941$ 346,203$ 36.4%43.6%16.5%20.9%21.8%11.8%22.1%28.5%35.5%42.6%43.2%35.0%14.3% Total 842,300 1,014,657 655,130 811,812 566,593 448,809 765,737 1,010,340 963,462 1,183,829 1,275,300 1,076,415 275,844 Reserves 57.0%67.1%43.2%47.6%30.0%21.7%34.1%41.8%39.8%48.9%52.7%44.5%11.4% Assumption Growth in Benefits & Wages a 3.0% Outside funding including local match 1 Assumes SWU receives funds from grant requests 2025 Projected 10 Year CIP Senario Stormwater Fee Increase - annual minimum increases - Grant Funding Received DRAFT Stormwater Fund 5 Year Forecast Revised:2/6/2023 FY 2020/21 FY 2021/22 FY 2022/23 FY 2023/24 FY 2024/25 FY 2025/26 FY 2026/27 FY 2027/28 Final Final Fiscal # of Units: Residential 18,214 18,460 19,173 19,284 19,406 19,510 19,594 19,636 NEW:projected Residential 225 275 222 243 209 168 84 102 Commercial 8,154 8,154 8,250 8,250 8,250 8,250 8,250 8,450 NEW:projected Commercial - - - - - - 200 - - - - - - - - - - - - - - - - - Total Units:26,593 26,667 27,645 27,777 27,865 27,928 28,128 28,188 Carry forward Fund Balance 529,949$ 774,137$ 1,131,179$ 1,320,744$ 1,140,793$ 733,207$ 884,640$ 503,557$ Includes vehicle cash reserve Revenue: Monthly Stormwater Utility Fee/Unit 4.50$ 4.50$ 4.50$ 4.50$ 4.50$ 4.50$ 4.50$ 4.50$ Gross Revenues 1,473,177$ 1,494,024$ 1,492,900$ 1,500,000$ 1,504,700$ 1,508,200$ 1,519,000$ 1,522,200$ Grant Funds 152,152$ 16,906$ - - - - - Other 8,734 29 399,513 - - - - - Late Fees 635 1,155 1,500 1,500 1,500 1,500 1,500 1,500 Interest (385) 2,942 1,500 1,500 1,500 1,500 1,500 1,500 1,634,313$ 1,515,056$ 1,895,413$ 1,503,000$ 1,507,700$ 1,511,200$ 1,522,000$ 1,525,200$ Expenses: Personnel Total Personnel:808,588$ 844,505$ 826,266$ 848,575$ 871,487$ 895,017$ 919,182$ 942,162$ Contracts/Services Outside Professional Services*99,836 66,436 118,324 60,000 61,850 63,800 65,800 167,850 Administration & Financial Serv Health Clinic 3,493 3,492 3,500 3,650 3,800 3,950 4,100 4,250 General Outside Reviews - 14,986 - - - - - - Drainage Reviews 78040 - - - - - - - - Surveys/Data Management Studies 78041 - - - 10,000 10,300 10,650 11,000 11,350 Drainage Criteria Manual Update 78042 - - 49,824 - - - - - Reviews/Surveys/Data/Studies 96,343 - 25,000 46,350 47,750 49,200 50,700 52,250 DCM Computation Add On - 47,958 - - - - - - Mutterer's Feasibility And Alternatives Study - - 40,000 - - - - - Stormdrain Asset Camera Condition Assessment - - - - - Town-Wide Drainage Study - - - - 100,000 Catalina Alternative - - - - - - - Vehicle Repair & Maintenance a 7,771 2,845 10,000 10,000 10,300 10,650 11,000 11,350 Equipment Repair & Maintenance a 26,107 30,769 17,000 17,000 17,550 18,100 18,650 19,250 Rentals a 999 - 1,000 1,000 1,050 1,100 1,150 1,200 Telecommunications 123 - - - - - - Postage a 167 - 300 300 350 400 450 500 Printing & Binding a 1,490 1,749 1,500 1,500 1,550 1,600 1,650 1,700 Travel & Training a 1,213 3,724 9,600 9,600 9,900 10,200 10,550 10,900 Membership a 1,025 1,260 2,675 2,425 2,500 2,600 2,700 2,800 Office Supplies a 3,219 4,022 4,000 4,150 4,300 4,450 4,600 4,750 Gasoline a 10,534 21,760 39,000 39,000 40,200 41,450 42,700 44,000 Non-Capitalized Equipment 285 205 - - - - - - Uniforms*a 882 1,003 3,100 3,100 3,200 3,300 3,400 3,550 Bad Debt Expense a 1,482 2,570 1,500 2,500 2,600 2,700 2,800 2,900 Field Supplies a 5,110 2,315 25,000 27,000 27,850 28,700 29,600 30,500 Depreciation - - 177,000 179,000 181,000 183,000 185,000 187,000 Regulatory 5,000 5,000 5,000 5,000 5,150 5,350 5,550 5,750 Safety a - 1,100 1,500 1,550 1,600 1,650 1,700 Administration & Financial Serv 200,642 169,728 166,970 172,300 177,650 183,150 188,650 194,750 Financial & Budget 48,850 50,400 51,950 53,550 55,200 56,900 Human Resources 13,850 14,300 14,750 15,200 15,700 16,200 Innovation and Technology 52,300 60,600 62,450 64,350 66,300 68,300 Legal 8,220 8,500 8,800 9,100 9,400 9,700 Public Works 11,250 11,600 11,950 12,350 12,750 13,150 Town Clerk 1,500 1,600 1,650 1,700 1,800 1,900 Town Manager's Office 24,500 25,300 26,100 26,900 27,750 28,600 IT Direct Costs 6,500 - - - - - Software Maintenance & Lic - Stormwater Maintenance (OPS)- Total Operations/Maintenance:365,762$ 313,509$ 583,069$ 535,375$ 548,550$ 562,150$ 575,900$ 690,450$ Capital Outlay/Projects Other - - - - - - - - Minor Assets - - 4,000 6,000 6,000 6,000 6,000 6,000 Grant Capacity - - - - - - - - Vehicle 37,749 - - - - - - - Building (Gate)- - - - - - - Equipment 6,154 - - - 280,000 - 45,000 - Equipment - - - - - - - - Town wide Drainage Projects 171,872 - 469,513 472,000 390,250 79,600 542,000 84,500 General Infrastructure Maintenance - - 120,000 50,000 51,500 53,050 54,650 56,300 General Culvert Cleaning - Contractor - - - 25,000 25,750 26,550 27,350 28,200 Other 13,109 - - - - - - - Saddlehorn Place 45,315 - - - - - - - Camino Bajio & Paseo Cordona 44,817 - - - - - - - MUP Market Place 38,932 - - - - - - - El Con Golf Path 29,699 - - - - - - - Rancho Vistoso Culvert Repair - - - 30,000 - - - - Naranja @ Ironwood RHS Spillway Repair - - - 35,000 - - - - Mutterer's Construction - - - - - - - *500,000 Cat Ridge Alt - Erosion Repair 2 - - 149,513 - - - - - Gravel Pit Wash - - PC 515,001 - - - - - Sierra Wash Construction (3-Phases)- - 200,000 282,000 313,000 - - - Pusch Ridge Golf Course Pathway Bank Protection Improvements 50,000 - - 300,000 - Pomegranate - - - - - - 160,000 - Highland Wash - - - - *400,000 *4,000,000 - - Lamber Lane II - - - - - - - - CAPITAL LEASE PRINCIPAL-43937 - - - - - - - - CAPITAL LEASE INTEREST - - - - - - - - Total Capital Outlay 215,775$ -$ 473,513$ 478,000$ 676,250$ 85,600$ 593,000$ 90,500$ Total Expenses:1,390,125$ 1,158,014$ 1,882,848$ 1,861,950$ 2,096,287$ 1,542,767$ 2,088,082$ 1,723,112$ Surplus /(Deficit)244,188 357,041 12,565 (358,950) (588,587) (31,567) (566,082) (197,912) Total Cash Balance 774,137$ 1,131,179$ 1,320,744$ 1,140,793$ 733,207$ 884,640$ 503,557$ 492,646$ Contingency - - 561,100$ 382,600$ 483,400$ 95,500$ -$ Vehicle Cash Reserve 215,073$ 259,840$ 304,607$ 354,774$ 124,940$ 175,107$ 180,274$ 230,440$ Cash Balance 559,064$ 871,339$ 1,016,137$ 786,020$ 608,266$ 709,533$ 323,284$ 262,205$ 37.9%58.3%68.1%52.4%40.4%47.0%21.3%17.2% Total 774,137 1,131,179 1,320,744 1,140,793 733,207 884,640 503,557 492,646 Reserves 52.5%75.7%88.5%76.1%48.7%58.7%33.2%32.4% Assumption Growth in Benefits & Wages a 3.0% Outside funding including local match 1 Assumes SWU receives funds from grant requests Stormwater Fee Increase - $4.50 (No Increase) - No Grant Funding 2023 Projected 2/6/2023 https://orovalleyaz.sharepoint.com/sites/publicworks/Stormwater Utility/Stormwater Utility BUDGET Files/STORMWATER UTILITY Budget_STATUS QUE_FY 2025 DRAFT Stormwater Fund 5 Year Forecast Revised:2/6/2023 FY 2020/21 FY 2021/22 FY 2022/23 FY 2023/24 FY 2024/25 FY 2025/26 FY 2026/27 FY 2027/28 Final Final Fiscal # of Units: Residential 18,214 18,460 19,173 19,284 19,406 19,510 19,594 19,636 NEW:projected Residential 225 275 222 243 209 168 84 102 Commercial 8,154 8,154 8,250 8,250 8,250 8,250 8,250 8,450 NEW:projected Commercial - - - - - - 200 - - - - - - - - - - - - - - - - - Total Units:26,593 26,667 27,645 27,777 27,865 27,928 28,128 28,188 Carry forward Fund Balance 529,949$ 774,137$ 1,131,179$ 1,320,744$ 1,300,793$ 1,121,707$ 1,020,090$ 584,357$ Includes vehicle cash reserve Revenue: Monthly Stormwater Utility Fee/Unit 4.50$ 4.50$ 4.50$ 4.50$ 4.50$ 4.50$ 4.50$ 4.75$ Gross Revenues 1,473,177$ 1,494,024$ 1,492,900$ 1,500,000$ 1,504,700$ 1,508,200$ 1,519,000$ 1,606,800$ Grant Funds 152,152$ 16,906$ 210,000 280,000 3,800,000 Other 8,734 29 399,513 - 400,000 - - - Late Fees 635 1,155 1,500 1,500 1,500 1,500 1,500 1,500 Interest (385) 2,942 1,500 1,500 1,500 1,500 1,500 1,500 1,634,313$ 1,515,056$ 1,895,413$ 1,713,000$ 2,187,700$ 5,311,200$ 1,522,000$ 1,609,800$ Expenses: Personnel Total Personnel:808,588$ 844,505$ 826,266$ 848,575$ 871,487$ 895,017$ 919,182$ 942,162$ Contracts/Services Outside Professional Services*99,836 66,436 118,324 60,000 61,850 63,800 65,800 167,850 Administration & Financial Serv Health Clinic 3,493 3,492 3,500 3,650 3,800 3,950 4,100 4,250 General Outside Reviews - 14,986 - - - - - - Drainage Reviews 78040 - - - - - - - - Surveys/Data Management Studies 78041 - - - 10,000 10,300 10,650 11,000 11,350 Drainage Criteria Manual Update 78042 - - 49,824 - - - - - Reviews/Surveys/Data/Studies 96,343 - 25,000 46,350 47,750 49,200 50,700 52,250 DCM Computation Add On - 47,958 - - - - - - Mutterer's Feasibility And Alternatives Study - - 40,000 - - - - - Stormdrain Asset Camera Condition Assessment - - - - - Town-Wide Drainage Study - - - - 100,000 Catalina Alternative - - - - - - - Vehicle Repair & Maintenance a 7,771 2,845 10,000 10,000 10,300 10,650 11,000 11,350 Equipment Repair & Maintenance a 26,107 30,769 17,000 17,000 17,550 18,100 18,650 19,250 Rentals a 999 - 1,000 1,000 1,050 1,100 1,150 1,200 Telecommunications - - - - - - - Postage a 167 123 300 300 350 400 450 500 Printing & Binding a 1,490 1,749 1,500 1,500 1,550 1,600 1,650 1,700 Travel & Training a 1,213 3,724 9,600 9,600 9,900 10,200 10,550 10,900 Membership a 1,025 1,260 2,675 2,425 2,500 2,600 2,700 2,800 Office Supplies a 3,219 4,022 4,000 4,150 4,300 4,450 4,600 4,750 Gasoline a 10,534 21,760 39,000 39,000 40,200 41,450 42,700 44,000 Non-Capitalized Equipment 285 205 - - - - - - Uniforms*a 882 1,003 3,100 3,100 3,200 3,300 3,400 3,550 Bad Debt Expense a 1,482 2,570 1,500 2,500 2,600 2,700 2,800 2,900 Field Supplies a 5,110 2,315 25,000 27,000 27,850 28,700 29,600 30,500 Depreciation - - 177,000 179,000 181,000 183,000 185,000 187,000 Regulatory 5,000 5,000 5,000 5,000 5,150 5,350 5,550 5,750 Safety a - 1,100 1,500 1,550 1,600 1,650 1,700 Administration & Financial Serv 200,642 169,728 166,970 172,300 177,650 183,150 188,650 194,750 Financial & Budget 48,850 50,400 51,950 53,550 55,200 56,900 Human Resources 13,850 14,300 14,750 15,200 15,700 16,200 Innovation and Technology 52,300 60,600 62,450 64,350 66,300 68,300 Legal 8,220 8,500 8,800 9,100 9,400 9,700 Public Works 11,250 11,600 11,950 12,350 12,750 13,150 Town Clerk 1,500 1,600 1,650 1,700 1,800 1,900 Town Manager's Office 24,500 25,300 26,100 26,900 27,750 28,600 IT Direct Costs 6,500 - - - - - Software Maintenance & Lic - Stormwater Maintenance (OPS) - Total Operations/Maintenance: 365,762$ 313,509$ 583,069$ 535,375$ 548,550$ 562,150$ 575,900$ 690,450$ Capital Outlay/Projects Other - - - - - - - - Minor Assets - - 4,000 6,000 6,000 6,000 6,000 6,000 Grant Capacity - - - - - - - - Vehicle 37,749 - - - - - - - Building (Gate) - - - - - - - Equipment 6,154 - - - 280,000 - 45,000 - Equipment - - - - - - - - Town wide Drainage Projects 171,872 - 469,513 522,000 841,750 4,132,650 596,650 140,800 General Infrastructure Maintenance - - 120,000 75,000 77,250 79,600 82,000 84,500 General Culvert Cleaning - Contractor - - - 50,000 51,500 53,050 54,650 56,300 Other 13,109 - - - - - - - Saddlehorn Place 45,315 - - - - - - - Camino Bajio & Paseo Cordona 44,817 - - - - - - - MUP Market Place 38,932 - - - - - - - El Con Golf Path 29,699 - - - - - - - Rancho Vistoso Culvert Repair - - - 30,000 - - - - Naranja @ Ironwood RHS Spillway Repair - - - 35,000 - - - - Mutterer's Construction - - - - - - - *500,000 Cat Ridge Alt - Erosion Repair 2 - - 149,513 - - - - - Gravel Pit Wash - - PC 515,001 - - - - - Sierra Wash Construction (3-Phases)- - 200,000 282,000 313,000 - - - Pusch Ridge Golf Course Pathway Bank Protection Improvements - - - 50,000 - - 300,000 - Pomegranate - - - - - - 160,000 - Highland Wash - - - - 400,000 4,000,000 - - Lamber Lane II - - - - - - - - CAPITAL LEASE PRINCIPAL-43937 - - - - - - - - CAPITAL LEASE INTEREST - - - - - - - - Total Capital Outlay 215,775$ -$ 473,513$ 528,000$ 1,127,750$ 4,138,650$ 647,650$ 146,800$ Total Expenses: 1,390,125$ 1,158,014$ 1,882,848$ 1,911,950$ 2,547,787$ 5,595,817$ 2,142,732$ 1,779,412$ Surplus /(Deficit)244,188 357,041 12,565 (198,950) (360,087) (284,617) (620,732) (169,612) Total Cash Balance 774,137$ 1,131,179$ 1,320,744$ 1,300,793$ 1,121,707$ 1,020,090$ 584,357$ 601,746$ Contingency - - 721,100$ 771,100$ 618,800$ 176,300$ 130,300$ Vehicle Cash Reserve 215,073$ 259,840$ 304,607$ 354,774$ 124,940$ 175,107$ 180,274$ 230,440$ Cash Balance 559,064$ 871,339$ 1,016,137$ 946,020$ 996,766$ 844,983$ 404,084$ 371,305$ 37.9%58.3%68.1%63.1%66.2%56.0%26.6%23.1% Total 774,137 1,131,179 1,320,744 1,300,793 1,121,707 1,020,090 584,357 601,746 Reserves 52.5%75.7%88.5%86.7%74.5%67.6%38.5%37.4% Stormwater Fee Increase - $4.75 (6% Increase) - Grant Funding 2023 Projected 2/6/2023 https://orovalleyaz.sharepoint.com/sites/publicworks/Stormwater Utility/Stormwater Utility BUDGET Files/STORMWATER UTILITY Budget_STATUS QUE_FY 2025 DRAFT Stormwater Fund 5 Year Forecast Revised:2/6/2023 FY 2020/21 FY 2021/22 FY 2022/23 FY 2023/24 FY 2024/25 FY 2025/26 FY 2026/27 FY 2027/28 Final Final Fiscal # of Units: Residential 18,214 18,460 19,173 19,284 19,406 19,510 19,594 19,636 NEW:projected Residential 225 275 222 243 209 168 84 102 Commercial 8,154 8,154 8,250 8,250 8,250 8,250 8,250 8,450 NEW:projected Commercial - - - - - - 200 - - - - - - - - - - - - - - - - - Total Units:26,593 26,667 27,645 27,777 27,865 27,928 28,128 28,188 Carry forward Fund Balance 529,949$ 774,137$ 1,131,179$ 1,320,744$ 1,090,793$ 631,707$ 813,790$ 462,357$ Includes vehicle cash reserve Revenue: Monthly Stormwater Utility Fee/Unit 4.50$ 4.50$ 4.50$ 4.50$ 4.50$ 4.75$ 4.75$ 4.75$ Gross Revenues 1,473,177$ 1,494,024$ 1,492,900$ 1,500,000$ 1,504,700$ 1,591,900$ 1,603,300$ 1,606,800$ Grant Funds 152,152$ 16,906$ - - - Other 8,734 29 399,513 - - - - - Late Fees 635 1,155 1,500 1,500 1,500 1,500 1,500 1,500 Interest (385) 2,942 1,500 1,500 1,500 1,500 1,500 1,500 1,634,313$ 1,515,056$ 1,895,413$ 1,503,000$ 1,507,700$ 1,594,900$ 1,606,300$ 1,609,800$ Expenses: Personnel Total Personnel:808,588$ 844,505$ 826,266$ 848,575$ 871,487$ 895,017$ 919,182$ 942,162$ Contracts/Services Outside Professional Services*99,836 66,436 118,324 60,000 61,850 63,800 65,800 167,850 Administration & Financial Serv Health Clinic 3,493 3,492 3,500 3,650 3,800 3,950 4,100 4,250 General Outside Reviews - 14,986 - - - - - - Drainage Reviews 78040 - - - - - - - - Surveys/Data Management Studies 78041 - - - 10,000 10,300 10,650 11,000 11,350 Drainage Criteria Manual Update 78042 - - 49,824 - - - - - Reviews/Surveys/Data/Studies 96,343 - 25,000 46,350 47,750 49,200 50,700 52,250 DCM Computation Add On - 47,958 - - - - - - Mutterer's Feasibility And Alternatives Study - - 40,000 - - - - - Stormdrain Asset Camera Condition Assessment - - - - - Town-Wide Drainage Study - - - - 100,000 Catalina Alternative - - - - - - - Vehicle Repair & Maintenance a 7,771 2,845 10,000 10,000 10,300 10,650 11,000 11,350 Equipment Repair & Maintenance a 26,107 30,769 17,000 17,000 17,550 18,100 18,650 19,250 Rentals a 999 - 1,000 1,000 1,050 1,100 1,150 1,200 Telecommunications 123 - - - - - - Postage a 167 - 300 300 350 400 450 500 Printing & Binding a 1,490 1,749 1,500 1,500 1,550 1,600 1,650 1,700 Travel & Training a 1,213 3,724 9,600 9,600 9,900 10,200 10,550 10,900 Membership a 1,025 1,260 2,675 2,425 2,500 2,600 2,700 2,800 Office Supplies a 3,219 4,022 4,000 4,150 4,300 4,450 4,600 4,750 Gasoline a 10,534 21,760 39,000 39,000 40,200 41,450 42,700 44,000 Non-Capitalized Equipment 285 205 - - - - - - Uniforms*a 882 1,003 3,100 3,100 3,200 3,300 3,400 3,550 Bad Debt Expense a 1,482 2,570 1,500 2,500 2,600 2,700 2,800 2,900 Field Supplies a 5,110 2,315 25,000 27,000 27,850 28,700 29,600 30,500 Depreciation - - 177,000 179,000 181,000 183,000 185,000 187,000 Regulatory 5,000 5,000 5,000 5,000 5,150 5,350 5,550 5,750 Safety a - 1,100 1,500 1,550 1,600 1,650 1,700 Administration & Financial Serv 200,642 169,728 166,970 172,300 177,650 183,150 188,650 194,750 Financial & Budget 48,850 50,400 51,950 53,550 55,200 56,900 Human Resources 13,850 14,300 14,750 15,200 15,700 16,200 Innovation and Technology 52,300 60,600 62,450 64,350 66,300 68,300 Legal 8,220 8,500 8,800 9,100 9,400 9,700 Public Works 11,250 11,600 11,950 12,350 12,750 13,150 Town Clerk 1,500 1,600 1,650 1,700 1,800 1,900 Town Manager's Office 24,500 25,300 26,100 26,900 27,750 28,600 IT Direct Costs 6,500 - - - - - Software Maintenance & Lic - Stormwater Maintenance (OPS) - Total Operations/Maintenance: 365,762$ 313,509$ 583,069$ 535,375$ 548,550$ 562,150$ 575,900$ 690,450$ Capital Outlay/Projects Other - - - - - - - - Minor Assets - - 4,000 6,000 6,000 6,000 6,000 6,000 Grant Capacity - - - - - - - - Vehicle 37,749 - - - - - - - Building (Gate) - - - - - - - Equipment 6,154 - - - 280,000 - 45,000 - Equipment - - - - - - - - Town wide Drainage Projects 171,872 - 469,513 522,000 441,750 132,650 596,650 140,800 General Infrastructure Maintenance - - 120,000 75,000 77,250 79,600 82,000 84,500 General Culvert Cleaning - Contractor - - - 50,000 51,500 53,050 54,650 56,300 Other 13,109 - - - - - - - Saddlehorn Place 45,315 - - - - - - - Camino Bajio & Paseo Cordona 44,817 - - - - - - - MUP Market Place 38,932 - - - - - - - El Con Golf Path 29,699 - - - - - - - Rancho Vistoso Culvert Repair - - - 30,000 - - - - Naranja @ Ironwood RHS Spillway Repair - - - 35,000 - - - - Mutterer's Construction - - - - - - - *500,000 Cat Ridge Alt - Erosion Repair 2 - - 149,513 - - - - - Gravel Pit Wash - - PC 515,001 - - - - - Sierra Wash Construction (3-Phases)- - 200,000 282,000 313,000 - - - Pusch Ridge Golf Course Pathway Bank Protection Improvements 50,000 - - 300,000 - Pomegranate - - - - - - 160,000 - Highland Wash - - - - *400,000 *4,000,000 - - Lamber Lane II - - - - - - - - CAPITAL LEASE PRINCIPAL-43937 - - - - - - - - CAPITAL LEASE INTEREST - - - - - - - - Total Capital Outlay 215,775$ -$ 473,513$ 528,000$ 727,750$ 138,650$ 647,650$ 146,800$ Total Expenses: 1,390,125$ 1,158,014$ 1,882,848$ 1,911,950$ 2,147,787$ 1,595,817$ 2,142,732$ 1,779,412$ Surplus /(Deficit)244,188 357,041 12,565 (408,950) (640,087) (917) (536,432) (169,612) Total Cash Balance 774,137$ 1,131,179$ 1,320,744$ 1,090,793$ 631,707$ 813,790$ 462,357$ 479,746$ Contingency - - 511,100$ 281,100$ 399,900$ -$ -$ Vehicle Cash Reserve 215,073$ 259,840$ 304,607$ 354,774$ 124,940$ 175,107$ 180,274$ 230,440$ Cash Balance 559,064$ 871,339$ 1,016,137$ 736,020$ 506,766$ 638,683$ 282,084$ 249,305$ 37.9%58.3%68.1%49.1%33.7%40.1%17.6%15.5% Total 774,137 1,131,179 1,320,744 1,090,793 631,707 813,790 462,357 479,746 Reserves 52.5%75.7%88.5%72.7%42.0%51.1%28.8%29.9% Stormwater Fee Increase - $4.75 (6% Increase) - No Grant Funding 2023 Projected 2/6/2023 https://orovalleyaz.sharepoint.com/sites/publicworks/Stormwater Utility/Stormwater Utility BUDGET Files/STORMWATER UTILITY Budget_STATUS QUE_FY 2025 DRAFT C-1 APPENDIX C 10-Year Capital Improvement Schedules C Stormwater Fund DRAFT C-2 10-Year Capital Improvement Program Stormwater Utility Project Name FY/24/25 FY/25/26 FY26/27 FY27/28 FY/28/29 FY/29/30 FY30/31 FY31/32 FY32/33 FY/33/34 FY/34/35 Sierra Wash at Via Mandarina $280,000 Sierra Wash at Glover Road $310,000 Pusch Ridge Hole 9 Bank Protection $300,000 Oro Valley Country Club Drainage Improvements $300,000 Pomegranate Drive Drainage Improvements $182,420 Highlands Wash Drainage Improvements $400,000 $4,000,000 Mutterer Wash Drainage Improvements $250,000 $250,000 Highlands Wash at Tangerine Road Culvert Repair $365,000 Gravel Pit Wash at Tangerine Road Culvert Repair $380,000 Carmack Wash Drainage Improvements $750,000 Highlands Wash at Monterra Vista Vegetation Management $460,000 Naranja Park Drainage Improvements $300,000 Canada Golf Course Drainage Improvements $250,000 Conquistador Golf Course Drainage Improvements $250,000 Vehicle Replacement $350,000 $280,000 $350,000 Fiscal Year DRAFT APPENDIX D Assumptions for Proposed Financial Scenario D Stormwater Fund DRAFT E-1 PROPOSED FINANCIAL SCENARIO ASSUMPTIONS FOR THE STORMWATER UTILITY FUND The Stormwater Fund is the primary fund for the Stormwater Utility. The sources of revenue are stormwater fees. Expenses for administration, operations, existing system improvements and debt service are accounted for in this fund. Beginning Cash Balance The beginning cash balance is estimated based on budgeted revenues, expenses and known cost over runs for FY 2024/25. Actual cash balances on the 6/30/24 balance sheet is added to budgeted revenues, less budgeted expenses and known unbudgeted expenses. Cash Reserve Requirement Town Code requires the Utility to maintain cash reserves in the Stormwater Fund of not less than 15% of the combined total of the annual revenue. Growth Projections New Development growth projections for FY 2024-25 through FY 2028-29 were based on data provided by the Town’s New Development Permitting Manager and were updated with information from the Town’s Finance Department to be consistent with the Town’s financial forecasting. Service-Related Revenues Service-related revenues are based on the proposed FY 2025-26 budget. Service-related revenues include service-related revenues including late fees, engineering plan review fees and construction inspection fees. Interest Income Interest rates are projected at 3% annually over the 10-year pro-forma. The projected interest rate was provided by the Town’s Finance Department. Personnel No new employees were added during the projection period. Annual merit increases are projected to be 3% annually and health care costs are projected to increase by 3% annually. It is projected that the Arizona State Retirement System (ASRS) contribution is projected to increase 1% annually over the five-year projection period. Inflation Rates Inflation rates are projected at 3% annually over the 10-year pro-forma. O&M Expenses These expenses are based on the Stormwater Utility’s budget for FY 2024-25 plus 3% inflation. Capital Improvement Program (CIP) – Existing System Improvements The capital costs associated with Existing System Improvements CIP are primarily to ensure continued reliability and efficiency of the Utility’s drainage system. These costs are determined as part of an annual review of the drainage system. DRAFT Membership Current Fee Proposed Fee Current NR Fee NR Proposed Fee Established 2015 - CRC Classic Memberships Youth $20.00 $20.00 $25.00 $30.00 Senior $30.00 $35.00 $35.00 $45.00 Adult $40.00 $45.00 $45.00 $55.00 Couple $60.00 $70.00 $70.00 $90.00 Family $70.00 $80.00 $80.00 $100.00 Drop-in $5.00 $7.00 $5.00 $10.00 Family Drop-in $14.00 $15.00 $14.00 $20.00 Established 2015 - CRC Premium Memberships Youth $25.00 $25.00 $30.00 $35.00 Senior $50.00 $60.00 $55.00 $70.00 Adult $60.00 $75.00 $65.00 $85.00 Couple $75.00 $100.00 $85.00 $120.00 Family $100.00 $130.00 $110.00 $150.00 Established 2013 - OVAC Memberships Youth $20.00 $20.00 $25.00 $30.00 Senior $20.00 $25.00 $25.00 $35.00 Adult $30.00 $35.00 $35.00 $45.00 Couple $40.00 $45.00 $50.00 $65.00 Family $60.00 $70.00 $70.00 $90.00 Drop-in $5.00 $7.00 $5.00 $10.00 Family Drop-in $14.00 $15.00 $14.00 $20.00 Established 2013 - Archery Range Memberships Youth $20.00 $20.00 $20.00 $30.00 Adult $60.00 $75.00 $60.00 $85.00 Family $135.00 $150.00 $135.00 $170.00 Drop-in $5.00 $7.00 $5.00 $10.00 RENTALS Location Current Fee Proposed Fee NR Proposed Fee Established 1999 - FIELDS Res/Non-Profit Non-Peak Hourly Rate $5.00 $12.00 Previous Non-Peak Time NR/For Profit Non-Peak Hourly Rate $10.00 $24.00 6:00 am - 5:00 pm Res/Non-Profit Peak Hourly Rate $10.00 $12.00 Previous Peak Time NR/For Profit Peak Hourly Rate $20.00 $24.00 5:00 pm - 10:00 pm Established 2014 - PARK AMENITIES Archery Range Facility Areas $10.00 $20.00 Ramada Hourly Rate $10.00 $15.00 Established 2013 - OVAC & CRC LAP LANES Short Course Lap Lane (OVAC & CRC) Res/Non-Profit $6.00 $7.00 Short Course Lap Lane (OVAC & CRC) NR/For-Profit $12.00 $14.00 Long Course Lap Lane (OVAC & CRC) Res/Non-Profit $12.00 $14.00 Long Course Lap Lane (OVAC & CRC) NR/For-Profit $24.00 $28.00 Established 2008 - SPR RESERVATIONS Private/non-profit Events $ 175-1,500 $ 350-1,800 Public/for-profit Events $ 225-2,200 $ 700-3,600 New - EVENTS Naranja Park hourly rate $410.00 $425.00 $625.00 Skate Park and Pumptrack only hourly rate NA $200.00 $400.00 Riverfront Park hourly rate $95.00 $150.00 $250.00 JDK Park hourly rate $70.00 $300.00 $500.00 (SC meet)OVAC hourly rate per ln/hr $6.00 $7.00 $14.00 (LC meet)OVAC hourly rate per ln/hr $12.00 $14.00 $28.00 OVAC Special Event per day $250.00 $350.00 $450.00 (Group) OVAC per ln/hr $6.00 $7.00 $14.00 OVAC After Hours Rental 1-99 $350.00 $400.00 $500.00 OVAC After Hours Rental 100+$500.00 $550.00 $650.00 OVAC Classroom/Ramada Rental $150.00 $200.00 $200.00 Established 2019 - CRC PICKLEBALL COURTS CRC Pickleball Courts Res/Non-Profit $5.00 $10.00 $10.00 CRC Pickleball Courts NR/For-Profit $10.00 $20.00 $20.00 PARKS & RECREATION FEE INCREASE PROPOSAL MEMBERSHIPS New Fees and Revenues Community Engagement Project Community Engagement Event Summaries The town conducted three online Zoom Community Engagement Events to provide residents with background information and provide feedback on three proposals related to increasing the Town’s revenues. The three proposals include: 1. Revising the Park’s and Recreation Fees (July 9, 2025) 2. Adopting several new taxes including (July 10, 2025): a. Use tax b. Commercial Rental tax c. Telecommunications tax 3. Revising the Stormwater Utility Fee (July 15, 2025) A summary of the comments, questions and concerns that were provided by residents is provided below. Additional information is available on www.orovalleyaz.gov. Facility Membership fees 1. Why are only the younger memberships held the same? 2. Does golf membership fall under any of this? If not, how often are those increased? 3. Nominal increases every year makes sense rather than big jumps every couple of years. Also, better at accounting for inflation? 4. Proposal seems to make sense and it would be a good move to be more systematic about yearly rate increases. 5. What is the benefit of having a premium membership? Facility and Field Rental fees 1. Steam Pump Ranch charges for nonprofit events, does that include the OV Historical Society? 2. Is there a timeframe associated with new event rates? 3. What were the full-day park rental rates previously? 4. Why are pickleball court rental rates doubling, when others are increasing at a much lower percentage? Seems to be targeting the pickleball community. 5. Pickleball rates for commercial indoor facilities are not too far from the proposed raters. Seems like the proposed rates have gone a little too far for the market. Raters for wholesale supply of players is in the same ballpark as commercial. 6. Is there a difference between resident and for-profit fees for a full-day park rental? 7. How much was spent on [renovating] the pickleball and tennis courts at the Community Recreation Center? 8. Consider charging more for full-day rentals. Proposal is asking too little even just for the space. Community Engagement Event 1 – Parks and Recreation fees 9. Is the charge for pickleball courts only after open play? If a member wants to reserve a court after open play is there a charge? 10. What are the 2-3 highest revenue sources from the [rental] fees? Use tax 1. No questions Telecommunications tax 1. No questions Commercial Rental tax 1. Being in commercial real estate for 30 years, 28 here in the greater Tucson area, I strongly advise against the commercial rental tax. Tenants regularly pursue cost savings when deciding where to lease space and rental tax is a significant issue. While I have been a champion of the Town of Oro Valley, most of my commercial real estate peers assert that new taxes are something to be avoided at all costs, considering the challenges to open new businesses as a whole. Respectfully, this will have the effect of steering commercial renters out of Oro Valley more than they already are by the perception of the Town being unfriendly to businesses. Thank you for your consideration. Other 1. If the RTA fails to pass, would the Town be in a position of having to raise taxes to account for the loss? 2. Would be helpful for residents to understand that the new taxes will be used for capital purposes. How does staff confirm they are only used for capital purposes? How can people be ensured the revenues go where they are intended? 3. Does the town intend on transferring money from the general fund to reserves? 4. Would these funds be used for debt service for capital projects? 5. Is there any chance of raising the sales tax or instituting a property tax down the road? 1. Do homeowners near floodplains or flood prone areas pay more? 2. Smaller, more incremental increases annually would be better than larger increases every few years. 3. What is the current Stormwater Utility budget? 4. Do developers have more responsibility for stormwater impacts when they increase the amount of impermeable surface? Community Engagement Event 2 – New taxes Community Engagement Event 3 – Stormwater Utility fee 2025 Taxes Q&A based on questions and comments at the OV Chamber’s Oro Valley Business Forum on 9/11/25 For your reference, a recording of the video is available at www.orovalleyaz.gov. CONCERNS expressed RE: tax rates due to high property valuations COMMENTS from FORUM ATTENDEES: The costs of doing business in Oro Valley are much higher than just down the road in Pima County [based on property valuations]. Pima County already has the highest property taxes in the state. Something that isn’t talked about enough is how high property valuations impact local businesses (e.g. Triple Net Taxes that already go to Pima County). RESPONSE: From an average tax rate perspective, properties within Oro Valley have a slightly lower average tax rate than the overall County average. They also have a lower average tax rate than Marana and Sahuarita. (Per Pima County) When we look at actual taxes paid, it is true that higher property values in Oro Valley result in higher taxes paid by residents and businesses, which can impact the bottom line. Since most property taxes are ad valorem (according to value), higher valued properties will generally pay more in property taxes. This is evident in many places in Pima County—not just Oro Valley. However, it is important to note the following: Per a recent report from Cushman & Wakefield/Picor: “Average lease rates [in Oro Valley] rose 4.3% year-over-year to $20.10 per sf, outpacing the national increase of 2.0%. Premiums of 20–25% remain in high-demand areas like Oro Valley and key eastside arterials.” In their opinion: o “Hot submarkets included Oro Valley, Catalina Foothills, and the I-10 corridor, where high- income demographics drive demand.” o “Oro Valley is a high demand area and premiums are charged between 20%-25%.” Per Economic Development Director Paul Melcher: Based on staff tracking, we still see a number of businesses opening in OV: The Marketplace boasts the following activities: o Two new businesses since June 2025: Bloom Tea Wellness and Picklr. o Dunkin Donuts is working on tenant improvements to begin business in WalMart. o Happy Joe’s Pizza and Ice Cream is finalizing tenant improvements in the previous Red Lobster building and will likely open in the next 3-6 months There are 3 retail businesses in the process of opening or that have opened recently along Oracle Road, including The Good Feet Store, Ciao Down Pizza, and Hooked Up. QUESTIONS from attendees RE: New tax proposals 1. When was the last time the town did an efficiency audit? The Town has not engaged an outside consultant to perform an efficiency audit. However, the Town does participate in Lean Six Sigma principles for organizational efficiency and has sponsored a number of internal projects performed by staff to become more efficient and save money. Over the past couple of years through the annual budget process, the Town has undertaken a number of “belt-tightening” measures which have yielded estimated expenditure reductions in the General Fund of approximately $3.7 million.  (see chart below)  2. When would the taxes be implemented? At the earliest, any new taxes and fees would not be implemented until January 1, 2026. 3. How does the town’s tax revenue growth compare to the Town of Marana? The Town of Marana is growing much faster than the Town of Oro Valley which is helping them increase their tax base as well as development-related revenues. Since FY22, Marana’s total sales tax collections have increased approximately 38%, while Oro Valley’s sales tax collections have been flat. 4. If these tax categories already exist, why did the town set them at 0% Current staff does not have insight into previous decisions made by past Town Councils.  It was likely delayed in anticipation of future implementation for future needs.      The strategic plan directs staff to analyze revenues and explore new revenue opportunities. Implementation of these categories are consistent with neighboring communities.     5. Why isn’t a property tax considered rather than “piecemeal” approaches that represent short -term solutions? Property taxes would require an affirmative vote from residents at the ballot box to implement which would take time and add additional cost.  Over the history of the Town, residents have not favored the use of any property tax, and thus, it would not likely be accepted by the community at this time. Additionally, surrounding communities such as Marana and Sahuarita do not have a property tax, which would place our community at a competitive disadvantage. Lastly, unlike sales taxes, property taxes are difficult to pass on to non-residents benefiting from Town services.  6. Why are all the taxes aimed at businesses and not residents? If approved, residents will be subject to the same additional taxes as businesses. Further, any additional taxes paid by businesses will likely be borne by customers comprised of non-residents and residents. 7. If approved, do these new taxes cover the anticipated shortfall for public safety and road maintenance into the future? Staff expects the new taxes to cover the recent inflation experienced in pavement preservation, which is approximately $1.5 million. The new taxes/fees could also potentially be utilized for replacement police vehicles and/or the new police facility just purchased; however, that direction would need to come from Town Council. 8. What is the “net” leakage from the town? $1.8 billion goes out annually, how much comes back in? Net leakage is estimated to be $1.8 billion, equating to $45 million in tax revenues. We don’t know how much comes back into the Town by non-residents, but we do expect the figure to be significantly less than the leakage figure. 9. Leakage is concerning—especially when you see developments that have to “fight” for Town Council approval like the OV Marketplace. Is that part of the reason OV continues to see so much leakage? Staff believe more factors contribute to leakage than just one particular development or project. There are many reasons for leakage.  Dominant factors include lack of certain business sectors to meet resident wants and needs, insufficient local market metrics (ie. population, income, visibility) required by certain businesses and consumer awareness of the importance to shop local.  10. Will these taxes be specifically assigned to capital projects or the general fund? The proposed tax categories are intended to be assigned to the capital fund for capital needs, but this will be a Town Council decision. 11. Will all three taxes be voted on individually or as a package? Do they require separate ordinances? Will there be options presented for each? Ultimately this is Town Council’s decision. They can choose to approve any of the suggested three, or individually. Separate ordinances should not be required. Options will be provided and discussed to include phasing in and timing of implementation. 12. How do you tax commercial leases? Commercial leases would be taxed the same way we collect tax on other categories. The Arizona Department of Revenue, via an intergovernmental agreement, is responsible for collecting transaction privilege taxes and remitting appropriate amounts to member jurisdictions. 13. You say the town needs to grow. What is being done about annexation? Staff are pursuing annexation opportunities to the extent possible.  Oro Valley has a formally adopted Annexation Strategy on the Town website at  Annexation – Oro Valley | it's in our nature.    However, annexations are legally dependent on the property owner’s willingness and terms to participate.  Once approved, they can take a significant amount of time to produce revenue. Our most recent commercial annexation was Westward Look. Ongoing and active conversations with property owners include: State Land properties near the intersection of Thornydale and Tangerine Roads Multiple existing commercial sites Honeywell site on Oracle Road and adjacent to the Foothills Business Park 14. What were tax revenues like prior to 2020? The Town was averaging about 10% growth per year in local sales tax revenues for the decade of 2010-2019. Since FY2020, total Townwide local sales tax revenues grew at about 6% per year but have been flat since FY2022.  However, all growth in tax revenues since FY2020 occurred in the period from FY2020-FY2022. 15. How is the [Stormwater Utility] fee measured? The Stormwater Utility fee is calculated based on an impervious surface measurement from each property. That measurement is then divided by the equivalent residential unit (ERU), which is typically 2,588 square feet. The result is then multiplied by the monthly fee rate. The current fee for residents and most small businesses is $4.00/month.  The proposed fee is $6.50/month.  Study Session: New taxes and fees proposals Town Council October 1, 2025 New Taxes and Revised Fees proposals PHASE 1 STEP 1 – DEVELOPMENT by STAFF April 4th A.Draft Communications Outreach Plan •Explorer article •Print ads •Informational videos •Outreach to B&C, HOA and Community •Vista Newsletter •Parks & Rec Eblast •Social media •Website B.Assemble All Department Proposals •Parks and Recreation Fees •Stormwater Utility Fees •Other Revenue Sources C.Comprehensive Staff Report and PPT Presentation of A + B STEP 2 – STUDY SESSIONS A.Parks and Recreation Advisory Board April 15th B.Budget and Finance Commission May 20th C.Town Council June 18th PHASE 2 STEP 3 – COMMUNITY ENGAGEMENT ZOOM EVENTS A.Parks & Rec July 9th B.Other Revenues July 10th C.Stormwater July 15th STEP 4 – ORO VALLEY BUSINESS FORUM September 11th PHASE 3 STEP 5 – B&C RECOMMENDATIONS A.Stormwater Utility Commission November 2024 B.Parks and Recreation Advisory Board September 9th C.Budget and Finance Commission September 16th STEP 6 – COUNCIL STUDY SESSION October 1st STEP 7 – COUNCIL DECISION October 15th Public Hearing: Discussion and possible action on the following items: A.Issue “Notice of Intent” to raise Stormwater rate B.Increase Parks and Recreation fees C.Adopt proposed taxes STEP 8 – COUNCIL DECISION Public Hearing: Discussion and Possible action to raise Stormwater rate January 2026 Town new taxes and revised fees proposals Parks and Recreation Fees New Taxes Stormwater Utility Fee Community Engagement Boards and Commissions – April thru June 2025 Community Outreach Plan – June 2025 Online Zoom Engagement Meetings – July 2025 OV Business Forum – September 2025 Boards and Commissions recommended proposals – September 2025 Town Council decision – October 2025 Proposed new Taxes and Rates Financial Stability Guiding Principle 1 “Develop a balanced revenue portfolio by diversifying income streams, structuring fees to align with maintenance and capacity needs, and exploring new revenue sources acceptable to the community...” Town Council approved Strategic Plan Items “Benchmark Revenue Sources” Strategic Plan Project “Conduct ongoing monitoring and benchmarking of the Town’s major revenue sources against municipalities in the region to enhance financial resilience, maintain competitiveness, and adapt to evolving economic conditions.” Updated Five-Year Forecast (no additional taxes) FY 24/25 Forecast FY 25/26 Forecast FY 26/27 Forecast FY 27/28 Forecast FY 28/29 Forecast FY 29/30 Forecast GENERAL FUND Revenue 56,675,067 61,204,029 62,411,886 63,289,354 65,954,311 67,125,786 Inflows 56,675,067 61,204,029 62,411,886 63,289,354 65,954,311 67,125,786 Personnel 34,760,097 37,473,980 38,552,079 39,750,885 40,991,205 42,145,100 O&M 13,030,564 14,951,551 15,637,205 16,132,999 16,804,489 17,352,467 Capital 336,530 211,000 245,190 231,446 239,769 248,162 Transfers Out 9,153,341 11,447,129 10,739,693 7,006,830 6,817,724 8,925,340 Outflows 57,280,532 64,083,660 65,174,167 63,122,160 64,853,188 68,671,069 Beginning Fund Balance 22,081,503 20,855,294 17,975,664 15,213,382 15,380,577 16,481,700 Ending Fund Balance 20,855,294 17,975,664 15,213,382 15,380,577 16,481,700 14,936,417 HIGHWAY FUND Revenue 4,435,067 4,587,867 4,689,906 4,893,029 5,031,945 5,180,448 Transfers In 4,000,000 2,000,000 4,000,000 3,000,000 3,000,000 2,000,000 Inflows 8,435,067 6,587,867 8,689,906 7,893,029 8,031,945 7,180,448 Personnel 1,320,865 1,348,218 1,375,257 1,402,840 1,430,977 1,459,679 O&M 1,251,427 1,317,935 1,298,212 1,335,577 1,374,064 1,413,705 Capital 4,876,765 4,790,000 6,351,800 5,487,500 5,244,315 3,164,000 Outflows 7,449,056 7,456,153 9,025,269 8,225,917 8,049,355 6,037,383 Beginning Fund Balance 606,047 1,592,058 723,771 388,408 55,520 38,109 Ending Fund Balance 1,592,058 723,771 388,408 55,520 38,109 1,181,174 Updated Five-Year Forecast (cont) FY 24/25 Forecast FY 25/26 Forecast FY 26/27 Forecast FY 27/28 Forecast FY 28/29 Forecast FY 29/30 Forecast CAPITAL FUND Revenue 2,909,751 1,538,926 1,612,094 1,561,674 1,537,507 1,525,387 Transfers In 7,139,787 5,000,000 5,410,984 1,622,920 1,715,963 4,925,702 Inflows 10,049,538 6,538,926 7,023,078 3,184,594 3,253,470 6,451,089 O&M 390,108 871 - - - - Capital 5,565,173 6,617,864 8,583,500 4,229,800 3,269,500 4,176,000 Transfers Out 4,000,000 2,234,200 4,117,008 3,120,518 3,124,134 2,127,858 Outflows 9,955,281 8,852,935 12,700,508 7,350,318 6,393,634 6,303,858 Beginning Fund Balance 16,677,730 16,771,987 14,457,978 8,780,548 4,614,823 1,474,660 Ending Fund Balance 16,771,987 14,457,978 8,780,548 4,614,823 1,474,660 1,621,890 COMMUNITY CENTER FUND Revenue 12,109,517 7,219,293 7,415,945 7,657,091 7,904,189 8,130,889 Transfers In - 1,200,000 1,800,000 2,000,000 2,000,000 900,000 Inflows 12,109,517 8,419,293 9,215,945 9,657,091 9,904,189 9,030,889 Personnel 1,324,613 1,303,239 1,341,245 1,380,369 1,420,645 1,462,106 O&M 6,821,594 7,184,962 7,119,338 7,246,581 7,378,250 7,512,917 Capital 1,136,453 2,443,700 365,000 965,000 925,000 230,000 Transfers Out 1,717,149 172,968 172,635 172,236 172,760 172,207 Outflows 10,999,810 11,104,869 8,998,218 9,764,186 9,896,655 9,377,230 Beginning Fund Balance 1,815,118 2,924,825 239,248 456,975 349,880 357,415 Ending Fund Balance 2,924,825 239,248 456,975 349,880 357,415 11,073 Five-Year Forecast Ending Fund Balances Belt-tightening Measures/Impact Did not backfill two project manager positions in FY26 Did not hire any additional f/t staff for FY25. Implemented more stringent new personnel process in FY24. Implemented new travel/training Administrative Directive in FY25 requiring more justification of requests and limiting out-of-state travel. Required no department O&M increases from prior year for FY26 budget. Townwide O&M decreased $328K for FY25 from FY24 Implemented revised, more stringent CIP request process in FY24 and deferred a number of projects. Belt-tightening Measures/Impact (cont) Actual results of belt tightening measures are illustrated on the chart below. Approximately $3.7M in savings through reduced spending has been achieved since FY23. What kinds of taxes and fees do OV RESIDENTS pay? REQUISITE TAXES: 4% Utility tax on gas, electric and water EXAMPLE: For a small business account with a $150/month utility bill (gas & electric), pays $6 per month. Water utility tax adds about $2/month. Fees are used to support a wide range of Town services and departments, including Police, Parks and Recreation, Public Works, and General Government departments, as well as provide funding for capital projects and debt service payments on Town-issued bonds. USER FEES: Water and Stormwater EXAMPLE: Average small business account uses 7,000 gallons of water per month and pays $50 per month. Each business contributes to operate the stormwater system and generally pays $4.50 per month. User fees are used solely for water and stormwater operations and capital construction projects. OV SALES TAX: 2.5% EXAMPLE: $100 purchase of taxable items in OV (groceries are exempt), contributes $2.50. Sales taxes are used to support a wide range of Town services and departments, including Public Safety, Parks and Recreation, Public Works, and general government departments, as well as provide funding for capital projects and debt service payments on Town-issued bonds. PSST! What about property taxes? Good news: The Town of Oro Valley does NOT levy a property tax! The Issue – Stagnant Revenues, Rising Costs The General Fund is the backbone of Town services provided to businesses and residents, funding essential services. While total General Fund revenues have increased 10% since 2021, costs of Police services have increased 23%, absorbing 80% of General Fund revenue growth. Additionally, road maintenance costs have increased a staggering 107% since 2021, requiring the General Fund to help augment the Road Fund. In short – the need is being driven by increasing Public Safety and Road Maintenance costs. History of Pavement Preservation Costs Sales Taxes The Town is funded through a variety of revenue sources. However, Sales Taxes is the primary operating revenue source of the Town comprising over 45% of total General Fund revenues. Over the past three years, Sales Tax growth has been flat. The Town loses about $1.18 billion in taxable transactions to retail “leakage”. Stagnant Revenues $20 $22 $24 $26 $28 $30 $32 Jul-20Aug-20Sep-20Oct-20Nov-20Dec-20Jan-21Feb-21Mar-21Apr-21May-21Jun-21Jul-21Aug-21Sep-21Oct-21Nov-21Dec-21Jan-22Feb-22Mar-22Apr-22May-22Jun-22Jul '22 Aug '22 Sep '22 Oct '22 Nov '22 Dec '22 Jan '23 Feb '23 Mar '23 Apr '23 May '23 Jun '23Jul '23 Aug '23 Sep '23 Oct '23 Nov '23 Dec '23 Jan '24 Feb '24 Mar '24 Apr '24 May '24 Jun '24Jul '24 Aug '24 Sep '24 Oct '24 Nov '24 Dec '24 Jan '25 Feb '25 Mar '25 Apr '25 May '25 Jun '25Local Sales Tax 12 Month Rolling in Millions FY 21/22 FY 22/23 FY 23/24 FY 20/21 FY 24/25 YTD Opportunities for increased revenue MARANA SAHUARITA TUCSON ORO VALLEY PROPOSED Use Tax (when no sales tax currently collected) 2.5%2%2.6%2.5% Commercial Rental Tax 2.5%2%2.6%2.5% Telecommunications Tax 4%2%2.6%2.5% Taxes and Fees currently levied by neighboring municipalities, not levied by Oro Valley These new taxes would mostly impact OV BUSINESSES USE TAX: 2.5% •What is it? A tax on goods purchased where no sales tax is currently collected •Who pays it? Individuals and businesses would pay it when making purchases outside of Oro Valley, if no sales tax was collected at the time of purchase. •Purpose/how it’s used: Proposed to be restricted towards capital needs COMMERCIAL RENTAL TAX: 2.5% •What is it? A tax on the rental, leasing, and licensing for use of real property for commercial purposes •Who pays it? Landlords of commercial office leases and storage facilities •Purpose/how it’s used: Proposed to be restricted towards capital needs TELECOMMUNICATIONS TAX: 2.5% •What is it? A tax on businesses providing telecommunication services in the Town •Who pays it? Wireless communication service providers. •Purpose/how it’s used: Proposed to be restricted towards capital needs Examples of Impacts – Use Tax Use Tax is primarily paid by businesses who purchase capital or inventory items outside of the State of Arizona. $10,000/mo. In purchases outside the State of Arizona would cost an additional $250. Examples of Impacts – Commercial Rental Tax A $100/mo. Rent would cost an additional $2.50. A $1,000/mo. Rent would cost an additional $25.00. Examples of Impacts – Telecommunications Tax A $50/mo. Cell phone bill = $1.25 A $100/mo. Cell phone bill = $2.50 A $250/mo. Cell phone bill = $6.25 Benefits to Businesses and Residents Keeps Town competitive with the highest level of Public Safety response and Road quality in Southern Arizona Provides increased ability to withstand shocks and adverse economic events by diversifying Town revenues Provides funding for necessary capital projects ie. Police facility, police vehicles, roads Further insulates Town from adverse State legislative actions Facilitates more pay-as-you-go for future capital needs, reducing reliance on future debt issuances Assigned Use All three new tax categories, if adopted by Town Council, are proposed to be utilized for Public Safety Capital needs. The Town is reliant on operational surpluses to fund capital projects. Summary Increases in road maintenance and police costs have caused pressure to the Town General Fund. While the Town has performed operational cost controls and “belt tightening” these past two budget cycles, expenditure cuts alone are not sufficient to remedy the issue without impacting current service levels. Additional revenue is necessary. What is being proposed has already been implemented by surrounding Southern Arizona communities. Strategic Plan Goal 7.1 for last fiscal year. Strategic Plan Focus Area 7 – Financial Stability – “Benchmark Revenue Sources” for current fiscal year. Parks and Recreation proposed Fee Increases Why revise Parks and Recreation fees Current fees inadequate to address needed Parks and Recreation improvements and sustain current service levels Increases cost recovery Fee increases will be utilized for future parks improvements (Capital Improvement Projects) Most fees established 10+ years ago and have not been updated Areas of Proposed Increases Memberships Community & Recreation Center (CRC) •Classic Memberships •Premium Memberships Oro Valley Aquatic Center (OVAC) Archery Range Rentals Fields Archery Range Ramadas Lap Lanes (OVAC & CRC) Steam Pump Ranch Park Rates Pickleball Courts Parks and Recreation fee proposal summary Nominal increases for most categories Proposed fee structure continues to provide an outstanding value for residents Larger increases for non-residents Most fees established 10+ years ago and have not been updated User groups have expressed support regarding the proposed fees El Conquistador Tennis Pusch Ridge Archers OV Community & Recreation Center Advisory Group OV Sports Alliance members OV swim team organizations Fee increases will be utilized for future parks improvements (Capital Improvement Projects) Stormwater Utility proposed Fee Increase Residents $4.50 per month Commercial $4.50 per Equivalent Resident Unit (ERU) Meets regulatory & asset management requirements Allows for program design and development In-house infrastructure design and construction documents Grant management & Pima County partnership Current Fee SWC Proposed Fee Residents $6.50 per month Commercial $6.50 per Equivalent Resident Unit (ERU) Community Expectation Complete Infrastructure Projects Design Construction New Program Requirements General Inflation Continue to seek outside funding FEMA Grants & Pima County Partnerships Existing Rate vs. Proposed Rate Rate Increase Drivers & Timeline What is driving the fee increase? Needed infrastructure repairs - Increased material costs Cash balance will fall to 12% without increase after 2027 Utility must maintain an operating cash reserve requirement of 15% The Stormwater Utility Commission unanimously supported a one-time rate increase $2.00 per ERU. 10/15/25 Town Council - Notice of Intent (NOI) to increase Stormwater fee 01/14/25 Town Council - Public Hearing (at least 60-days from NOI) - Town Council considers adoption of Stormwater fee 07/05/25 New rates become effective – align with FY 26/27 Rate Increase Summary However, at the June 18th Study Session, Council requested that this fee be phased in to lessen its impact: from 10% per year to a 25% over 4 years to a per project basis. For consistency of implementation and predictability for the public, staff is requesting the original $2.00 per ERU fee increase, as an escalating three-part, three-year implementation. That would be 67¢ per ERU per years 1&2 and 66¢ third year increase. The impact is a diminishing year over year increase of 15% first year, 13% the second year and 11% the third year. We feel that this meets the spirit of what the SWUC reviewed & approved while meeting Council direction and providing predictability to the public and funding to accomplish some projects.    Town Council Regular Session 2. Meeting Date:10/01/2025   Requested by: Bayer Vella, Community and Economic Development  Submitted By:Michael Spaeth, Community and Economic Development Case Number:2500805 SUBJECT: DISCUSSION REGARDING PROPOSED CODE AMENDMENTS TO REFLECT RECENT STATE LAW CHANGES REGARDING THE APPROVAL PROCESS FOR CERTAIN DEVELOPMENT APPLICATIONS RECOMMENDATION: This item is presented for discussion only. The formal code amendment will be presented for discussion and possible action on December 3. EXECUTIVE SUMMARY: The purpose of this item is to discuss upcoming zoning code amendments to reflect recent state law changes regarding the required review process of development and design review applications for permitted or entitled (non-discretionary) projects. More specifically, this includes the review of development plans, preliminary/final plats, architecture, art and other design-related development applications. In House Bill (HB) 2447 (Attachment 1), the state recently enacted changes to ARS § 9-500.49 that impact the town's current approval process for permitted or entitled (non-discretionary) code-compliant projects. The new language includes the following:    Notwithstanding any other law, the legislative body of a city or town SHALL by ordinance do the following: 1. Authorize administrative personnel to review and approve site plans, development plans, land divisions, lot line adjustments, lot ties, preliminary plats, final plats and plat amendments WITHOUT A PUBLIC HEARING [Emphasis added]. 2. Authorize administrative personnel to review and approve design review plans based on objective standards WITHOUT A PUBLIC HEARING [Emphasis added]. 3. Allow at-risk submittals for certain on-site preliminary grading and drainage work or infrastructure. 4. Allow applicants with a history of compliance with building codes and regulations to be eligible for expedited permit review.   Town Council initiated a Zoning Code amendment in May directing staff to update code language to comply with the new state law.  The anticipated code amendments will include the following key elements: Enabling administrative approval for permitted or entitled (non-discretionary) code-compliant applications1. Utilizing the existing Board of Adjustment appeal process for administrative approval of permitted or entitled (non-discretionary) applications 2. Changes to other sections of code (Economic Expansion Zone, Design Standards)3. Allow at-risk submittal of certain grading and drainage applications4. Allow expedited review of zoning and grading applications5. Require a Conditional Use Permit for building height increase requests in the Private School (PS) zoning district 6. Town staff have been in communication with both the League of Arizona Cities and Towns (League) and members of the City of Scottsdale planning department (who are similarly impacted by the new legislation) to discuss potential amendments that comply with the intent of the new legislation. The League drafted a model ordinance (Attachment 2) for communities impacted by the original legislation adopted in 2023 as a guide for potential changes. Staff anticipate the code amendments will draw on the general framework of this model code moving forward. To ensure compliance with the new legislation, the town has until December 31, 2025, to adopt the new code amendments as the new law becomes effective on January 1, 2026. Once adopted, the new code will apply retroactively to non-discretionary applications currently under review. The Planning and Zoning Commission discussed the proposed amendments at a study session on September 10, 2025, and had only minor questions and comments.  Staff is currently developing the proposed amendments, which will be formally presented to Town Council at a public hearing in December with the aim of becoming effective prior to the state-mandated deadline. This item is presented for discussion only and more information is provided in the Background or Detailed Information section of this report.  BACKGROUND OR DETAILED INFORMATION: In 2023, the state passed legislation giving local jurisdictions the option of making the approval process for non-discretionary development and design review applications (e.g. Development and Landscape Plans, Preliminary and Final Plats, etc.), administrative. This year, in HB 2447 (Attachment 1), the legislature made the process mandatory for all jurisdictions. The new language includes the following:    Notwithstanding any other law, the legislative body of a city or town SHALL by ordinance do the following: 1. Authorize administrative personnel to review and approve site plans, development plans, land divisions, lot line adjustments, lot ties, preliminary plats, final plats and plat amendments WITHOUT A PUBLIC HEARING [Emphasis added]. 2. Authorize administrative personnel to review and approve design review plans based on objective standards WITHOUT A PUBLIC HEARING [Emphasis added]. 3. Allow at-risk submittals for certain on-site preliminary grading and drainage work or infrastructure. 4. Allow applicants with a history of compliance with building codes and regulations to be eligible for expedited permit review The anticipated code amendments will have the following key elements. 1. Administrative approval for non-discretionary code-compliant applications For the town, this will represent a change as many non-discretionary development or design review applications that currently require Town Council approval. While this represents a significant change for the town, to comply with state law, the proposed amendments will include the following: The "non-discretionary" development or design review applications listed below will be reviewed and approved administratively when deemed code-compliant: Development Plans and Master Development Plans Preliminary Plats Final Plats Commercial Architecture Model Home Architecture Public Art Other design review applications (e.g. Alternative Parking Ratio's, etc.) The following "discretionary" applications where new entitlements or uses are requested will continue to require Planning and Zoning Commission recommendation and Town Council approval: General Plan Amendments Rezoning/PAD Amendments Conditional Use Permits Grading Exceptions Other Use Requests like Alternative Parking Analysis All applications will continue to be reviewed for conformance with all existing code requirements (General Plan, Design Principles, Design Standards, Oracle Road Scenic Corridor Overlay District, etc.).  2. Establish that the existing "appeal of administrative decisions" process through the Board of Adjustment will be used for administrative approval of permitted/entitled (non-discretionary) applications Arizona Revised Statutes Section 9-462.02 establishes that "A board of adjustment shall hear and decide appeals from the decisions of the zoning administrator..." Administrative approvals of "non-discretionary" development and design review applications in compliance with state law are "decisions of the zoning administrator" and are to be appealed in the same manner and venue (e.g. Board of Adjustment) as other administrative decisions of the Planning and Zoning Administrator.  It is worth noting the League's model ordinance (Attachment 2) includes the following elements: Defines who can appeal Appeal criteria and procedure Reviewing entity Staff recommends tailoring elements to utilize the existing Board of Adjustment appeal process for administrative decisions.  3. Changes to other sections of code The anticipated changes will also impact other sections of code, namely the Economic Expansion Zone (EEZ) and Design Standards. Permitted or entitled (non-discretionary) code-compliant projects within the EEZ are currently approved administratively, while discretionary projects require Town Council approval. This change will make much of the EEZ redundant and unnecessary as the same approval process will apply to all properties in town. Some components of EEZ (e.g. allowing pre-grading of development parcels) will remain limited to those areas. With regard to Design Standards, as a result of the code amendments, they should be sharpened and made more specific (without being overly prescriptive). The aim will be to maintain the Town's high level of design requirements while allowing for aesthetic variety throughout the town. An update to the Design Standards previously approved as an Strategic Plan item that is anticipated to be presented to Town Council later this year. 4. Allow at-risk submittal of certain grading and drainage applications This legislation does not enable/require pre-grading prior to development application approval - just review of a grading and/or drainage plan. No code changes will be necessary to comply with part of the new legislation. 5. Allow expedited review of zoning and grading applications The Town currently allows for expedited reviews of building permit applications only (with an additional expedited fee). The code amendments will need to include language enabling expedited reviews of all applications for applicants with a history of compliance. Additionally, the Town's Development Fee Schedule will need to be revised to add an expedited review option (with associated costs) for all applications. 6. Require a Conditional Use Permit for building height increase requests in the Private School (PS) zoning district A building height increase application in PS zoning entails Planning & Zoning Commission decision-making - with the ability to appeal to Town Council. It would be timely to amend the code by requiring a conditional use permit with final determination by Town Council. The Town has until December 31, 2025, to adopt the new code amendments as the new law becomes effective on January 1, 2026. Once adopted, the new code will apply retroactively to non-discretionary applications currently under review. The Planning and Zoning Commission discussed the proposed amendments at a study session on September 10, 2025 and had only minor questions and comments.  This item is for discussion only and staff is currently working to develop the proposed amendments, which will be presented to Town Council at a public hearing in December with the aim of them becoming effective prior to the state-mandated deadline. FISCAL IMPACT: FISCAL IMPACT: N/A SUGGESTED MOTION: This item is for discussion only. The formal code amendment will be presented for discussion and possible action on December 3. Attachments ATTACHMENT 1 - HB 2447  ATTACHMENT 2 - DRAFT MODEL ORDINANCE OF SITE PLANS AUG 2023  Staff Presentation  ACAA Attorney Working Group Draft Model Ordinance on the Administrative Review and Approval of Site Plans to Expedite Construction (SB1103) August 2023 version* (*Please note: This draft will be modified based on feedback from municipalities and stakeholders) ORDINANCE NO. __________ AN ORDINANCE OF THE COMMON COUNCIL OF THE [CITY / TOWN] OF _________________, ARIZONA, AMENDING THE CODE OF ___________, ARIZONA BY [ADOPTING / AMENDING] ARTICLE _____ RELATING TO ADMINISTRATIVE  REVIEW  AND  APPROVAL  OF  SITE  PLANS; INCORPORATING  THE  RECITALS  BY  REFERENCE;  ESTABLISHING  A PURPOSE;  SETTING  FORTH  DEFINITIONS;  [ADOPTING  APPLICATION FEES];  ESTABLISHING  FINES  AND  PENALTIES  FOR  VIOLATIONS; PROVIDING  FOR  ENFORCEMENT;  PROVIDING  FOR  THE  REPEAL  OF CONFLICTING  ORDINANCES;  PROVIDING  FOR  SEVERABILITY; ESTABLISHING AN EFFECTIVE DATE. WHEREAS, S.B. 1103 provides that local governments, by ordinance, may authorize administrative personnel to review and approve site plans; WHEREAS, administrative approval of site plans can help shorten the overall time it takes to complete a project; WHEREAS, the [City/Town] deems it necessary to XXX; WHEREAS, [add]. NOW THEREFORE, BE IT ORDAINED by the Common Council of the [City/Town] of __________, Arizona, as follows: Section I. General. The Code of ___________, Arizona, is hereby amended by [amending/adding Article X- X, Site Plans], to read as follows: ARTICLE X-X. SITE PLANS AND AMENDED SITE PLANS. Sec. X-X-1 Purposes. This Article describes application requirements, review procedures, and approval criteria utilized by [City/Town] staff when reviewing new site plans, as well as modifications to approved plans. The specific purposes of the site plan review process are to: (A) Ensure the proposed development plan complies with the development and design requirements of the [City/Town]. (B) Facilitate the orderly development of the [City/Town] by promoting the public health, safety, and general welfare, and character of the community; (C) Mitigate adverse impacts on traffic circulation and adjacent developments and land uses; and   (D) Support a safe and efficient multi-modal transportation system with adequate off-street parking and loading facilities, bicycle facilities, and pedestrian amenities. Sec. X-X-2 Definitions.1  [add definitions, as applicable] Sec. X-X-3 Administrative Authority; Applicability. (A) Administrative Review and Approval.    Except  as  otherwise  expressly  provided  in this Article [or as otherwise required by Council stipulation2], the [Zoning Administrator3] shall have the authority to approve, conditionally approve, or deny an application seeking the approval of a site plan or an amended site plan. (B) Applicability. A site plan application must be submitted for [all new and existing developments that propose qualifying building additions, alterations, or site improvements. Site plan review is not required for one duplex, triplex, or detached single-family residence on one lot]. This section applies to reviews of applications for initial site plans and amended site plans. 1 Most cities have a comprehensive definition section in their subdivision code.  This only addresses those definitions that need to change. 2 This language is optional for cities that may have Council stipulations related to site plan in zoning ordinances or development agreement. 3 Modify as needed based on the applicable approval authority. (C) Application Requirements.  Applications for initial site plans and amended site plans shall be filed with the [add department name] on form(s) provided by the Department and shall include all the information identified in the application form(s) and4 other data that may be required by the [Zoning Administrator] to ensure compliance with the requirements.  Site plan applications must be signed by the property owner(s) or an authorized agent of the property owner(s) and all applicable fees shall be paid when the application is submitted. (D) Approval Criteria. (1) The Department shall review site plan applications in accordance with applicable zoning  ordinance  regulations,  subdivision  regulations,  engineering  standards,  flood prevention and control regulations, development agreement, development master plan, and all other applicable federal, state, and local laws, ordinances, codes, rules, regulations, policies and/or guidelines. (2) Approval of a site plan application shall be given only when in the judgement of the [City/Town], such an approval is consistent with the intent and purpose of this Article, and it is determined that the proposed application is: (a) Consistent with the health, safety, and welfare of the community; (b) Consistent with purposes and intent of this Article, the general plan, and any adopted plan for the area; (c) Will not cause traffic related concerns that cannot be mitigated as determined by the [City/Town] Engineer; and (d) Failure to comply with provisions of the codes, standards, and procedures of the [City/Town] shall be the sole basis for denial. (E) Notice of Decision. (1) The Department shall notify the applicant, in writing, of the decision to approve or deny the application, and shall state any conditions for approval or reasons for denial in said letter. (2) The Department shall provide notice of the decision to those property owners within 300 feet of the proposed site plan.5 (3) If no appeal is filed within the timeframe specified in [subsection F of this section], then the decision of the Department shall be final. 4 Add reference(s) to application requirements that may be located elsewhere (e.g., an administrative process manual, engineering standards, etc.) 5 This is consistent with state law on zoning.  Some cities require more notice, in essence giving adjacent property owners more rights to contest an administrative site plan, than legislative zoning. (F) Appeal Criteria and Procedure. (1) The Notice of Decision by the Department may be appealed by the applicant, any [City/Town] property owner, and property owners within 300 feet of the proposed site plan. 6 (2) Basis for Appeal. (a) The purpose of the appeal criteria provided herein is to fairly accommodate the appeal right of a party aggrieved7 by a [City/Town] decision, while also ensuring the appeal is conducted fairly and expeditiously and ensuring finality in land use decisions and development permitting. (b) An appeal of a site plan decision is limited to instances where an aggrieved party alleges there was an error in a decision or determination in the enforcement of a specific zoning ordinance or regulatory requirement. (3) To initiate an appeal regarding a site plan application: (a) A written notice of appeal must be submitted on a form prescribed by the Department and must include citations to the specific zoning ordinance or other regulatory requirement the appellant believes the site plan does not comply with; and (b) The written notice of appeal [and the applicable fee8] must be received by the Department not later than ten (10) calendar days after the notice of decision has been issued. the deadline shall be extended to the end of the next business day when the deadline occurs on a non-business day. (G) Appeal; Department Director. (1) Upon receipt of a valid appeal, the Department Director shall make a determination as to the nature of the appeal and shall determine the appropriate type of review. (2) Appeals of a technical nature, such as but not limited to utility locations, grading and drainage, or traffic mitigation measures shall be reviewed by the [City/Town Engineer], or designee thereof. (3)  All  other  types  of  appeals,  including  but  not  limited  to  exactions  or  dedications associated with the site plan, shall be heard by the [hearing officer9] (“Reviewing Entity”). 6 This is consistent with state law on zoning.  Some cities require more notice, in essence giving adjacent property owners more rights to contest an administrative site plan, than legislative zoning. 7 Some cities may want to expressly define “aggrieved party” for the purpose of who can appeal a decision. 8 Many cities do not require the payment of a fee for an appeal. 9 Modify as needed. (H) Appeal; Reviewing Entity. (1) The Reviewing Entity shall hold a review hearing and provide the appellant, applicant, Department staff, and those property owners and registered homeowner's associations within the required notification radius of the subject property an opportunity to present their position. The hearing shall be informal and the rules of evidence and civil procedure shall not apply. The Reviewing Entity may approve, approve with modifications, conditionally approve, or deny the appeal. (2) The Reviewing Entity’s decision shall be in writing and shall be provided to the appellant,  applicant,  the  Department,  and  any  property  owners  and  homeowner's association representatives who attended the hearing. (3) The decision of the Reviewing Entity shall be final. (I) Building Permits Based upon Approved Site Plan. (1) For all development subject to site plan review, an approved site plan and proper zoning are required prior to the commencement of any construction or development on the site. (2) The applicant shall obtain the necessary building and/or construction permits within eighteen (18) months of the date of approval of the site plan application, if not obtained within  the  eighteen  (18)  month  time  frame,  the  applicant  may,  prior  to  the  date  of expiration,  file  a  request  for  an  extension,  whereupon  the  [Planning  Manager]  may authorize a one-time, six (6) month extension. If the time frame has expired, the applicant shall submit a new site plan, together with the applicable documents and fees as stipulated in the above provisions. (J) Amendments to Approved Site Plans. (1) When a site plan has been previously approved and alterations to the proposed buildings or site improvements are desired, a site plan amendment will be required if those changes are deemed by the [Planning Manager] or designee to be substantial in nature. (2) Substantial changes are: (a) a ****** (***) percent increase in a project gross land area; (b) a ****** (***) percent increase in building or buildings' square footage; (c) a ****** (***) percent increase in a multi-family project's density; (d) a material change to the project's land use; (e) a material change or an alteration to the project's circulation pattern that in the judgment of the [City/Town] Engineer requires a revised Traffic Impact Analysis. (3) A site plan amendment shall be submitted, reviewed, and approved in accordance with the same site plan approval criteria as identified herein. (4) Any modification which does not substantially change the approved site plan. shall be not require the applicant to obtain new site plan approval and may be addressed through the building permit process. [see next page for remainder of the adopting ordinance] Section II. Penalties. [Add penalty clause].10 Section III. Providing for Repeal of Conflicting Ordinances. All  ordinances  and  parts  of  ordinances  in  conflict  with  the  provisions  of  this Ordinance or any part of the Code adopted herein by reference, are hereby repealed. Section IV. Recitals. The recitals above are fully incorporated in this Ordinance by reference. Section V. Effective Date. The effective date of this Ordinance shall be ___ days following adoption by the [City/Town] Council. Section VI. Preservation of Rights and Duties. This Ordinance does not affect the rights and duties that matured, penalties that were incurred, or proceedings that were begun before the effective date of this Ordinance. Section VII.Providing for Severability. If any section, subsection, sentence, clause, phrase or portion of this Ordinance or any  part  of  the  Code  adopted  herein  by  reference,  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. 10 A penalty clause cannot be adopted by reference.  See A.R.S. §§ 9-802, 9-803. As a result, if a violation of the ordinance is subject to a penalty or civil sanction, the penalty or civil sanction must be fully described in the ordinance itself. In addition to any local requirements, an ordinance containing a penalty, fine, forfeiture or other punishment must be published after its enactment by posting it: (1) at city or town hall or in one public place within the city or town; (2) on the city’s or town’s website, and (3) any additional public notice as is reasonable and practicable. See A.R.S. § 9-813. Exhibits to the ordinance may be excluded from the postings if the city or town lists in the postings where the exhibits are available for public use and inspection. See A.R.S. § 9-813. Posting may be established by the affidavit of the person who posted the ordinance filed with the clerk. See A.R.S. § 9-813. PASSED AND ADOPTED by the [City/Town] Council of _______________ this ____ day of ______________, 202_. ATTEST:  CITY/TOWN OF _______________, an Arizona municipal corporation ________________________ __________________________ ________________________ ________________________ City/Town Clerk  Mayor APPROVED AS TO FORM: ________________________ ________________________ City/Town Attorney I, ___________________, [CITY/TOWN] CLERK, DO HEREBY CERTIFY THAT A TRUE AND  CORRECT  COPY  OF  THE  ORDINANCE  NO.  _______  ADOPTED  BY  THE [CITY/TOWN] OF ___________________ ON THE ____ DAY OF _____________, 202_, WAS POSTED IN THREE PLACES ON THE _____ DAY OF ______________, 202_. Study Session: State Law changes regarding approval of development and design review applications Town Council October 1, 2025 Purpose Zoning Code Amendments: •Administrative approval of development design review applications •Types of applications •Impacts to other sections of code •Appeals •At-risk grading and drainage submittals •Expedited reviews •CUP for building height increase in Private School (PS) zoning December 31st deadline Presented for discussion only Public Hearing in December Application types Design: Non-discretionary Proposed Administrative approval Master Development Plans Development Plans Preliminary Plats Final Plats Architecture •Commercial •Model Home Public Art Alternative Parking Ratio Sign Criteria Minor Communication Facilities Use: Discretionary Retain Town Council approval General Plan Amendments Rezoning/PAD Amendments Conditional Use Permits Grading Exceptions Signs Master Sign Programs PAD Exemptions Major Communication Facilities Anticipated Code Amendments continued Impacts to other sections of code: •Appeals of Administrative Decisions to Board of Adjustment as established by State Law •Eliminate much of Economic Expansion Zone (EEZ) •Make Design Standards more precise (Strategic Plan) “At-risk” grading and drainage submittals Specifically enable expedited reviews CUP for building height increase in PS zoning Summary Anticipated Zoning Code Amendments: •Administrative approval of development and design review applications •“At-risk” grading and drainage submittals •Specifically enable xpedited reviews •CUP for building height increase in Private School (PS) zoning December 31st deadline Discussion only Public hearing in December