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HomeMy WebLinkAboutPackets - Budget and Finance Committee (59)       AGENDA ORO VALLEY BUDGET AND FINANCE COMMISSION REGULAR SESSION SEPTEMBER 16, 2025 COUNCIL CHAMBERS 11000 N. LA CAÑADA DRIVE        REGULAR SESSION AT OR AFTER 4:00 PM   CALL TO ORDER   ROLL CALL   PLEDGE OF ALLEGIANCE   CALL TO AUDIENCE - at this time, any member of the public is allowed to address the Commission on any issue not listed on today’s agenda. Pursuant to the Arizona open meeting law, individual Commission members may ask Town staff to review the matter, ask that the matter be placed on a future agenda, or respond to criticism made by speakers. However, the Commission may not discuss or take legal action on matters raised during "Call to Audience." In order to speak during "Call to Audience", please specify what you wish to discuss when completing the blue speaker card.   STAFF LIAISON REPORT   REGULAR SESSION AGENDA   1.REVIEW AND APPROVAL OF THE AUGUST 19, 2025 REGULAR SESSION MEETING MINUTES   2.PRESENTATION AND POSSIBLE DISCUSSION OF THE TOWN'S FY24/25 FINANCIAL UPDATE THROUGH JUNE 2025 (PLEASE REFERENCE ATTACHMENTS)   3.DISCUSSION AND POSSIBLE RECOMMENDATION TO TOWN COUNCIL OF NEW TAXES AND REVISED FEES   COUNCIL LIAISON COMMENTS   ADJOURNMENT   POSTED: 9/12/25 at 5:00 PM by ck POSTED: 9/12/25 at 5:00 PM by ck When possible, a packet of agenda materials as listed above is available for public inspection at least 24 hours prior to the Commission meeting in the Town Clerk's Office between the hours of 8:00 a.m. – 5:00 p.m. The Town of Oro Valley complies with the Americans with Disabilities Act (ADA). If any person with a disability needs any type of accommodation, please notify the Town Clerk’s Office at least five days prior to the Commission meeting at 229-4700. INSTRUCTIONS TO SPEAKERS Members of the public have the right to speak during any posted public hearing. However, those items not listed as a public hearing are for consideration and action by the Commission during the course of their business meeting. Members of the public may be allowed to speak on these topics at the discretion of the Chair. If you wish to address the Commission on any item(s) on this agenda, please complete a blue speaker card located on the Agenda table at the back of the room and give it to the Recording Secretary. Please indicate on the speaker card which item number and topic you wish to speak on, or if you wish to speak during “Call to Audience,” please specify what you wish to discuss when completing the blue speaker card. Please step forward to the podium when the Chair announces the item(s) on the agenda which you are interested in addressing. 1. For the record, please state your name and whether or not you are a Town resident. 2. Speak only on the issue currently being discussed by the Commission. Please organize your speech, you will only be allowed to address the Commission once regarding the topic being discussed. 3. Please limit your comments to 3 minutes. 4. During “Call to Audience”, you may address the Commission on any issue you wish. 5. Any member of the public speaking must speak in a courteous and respectful manner to those present. Thank you for your cooperation. “Notice of Possible Quorum of the Oro Valley Town Council, Boards, Commissions and Committees: In accordance with Chapter 3, Title 38, Arizona Revised Statutes and Section 2-4-4 of the Oro Valley Town Code, a majority of the Town Council, Board of Adjustment, Historic Preservation Commission, Parks and Recreation Advisory Board, Stormwater Utility Commission, and Water Utility Commission may attend the above referenced meeting as a member of the audience only.”    Budget and Finance Commission 1. Meeting Date:09/16/2025   Submitted By:Melissa Flores, Legal SUBJECT: REVIEW AND APPROVAL OF THE AUGUST 19, 2025 REGULAR SESSION MEETING MINUTES RECOMMENDATION: Staff recommends approval EXECUTIVE SUMMARY: N/A BACKGROUND OR DETAILED INFORMATION: N/A FISCAL IMPACT: N/A SUGGESTED MOTION: I MOVE to approve (approve with changes) the August 19, 2025 regular session meeting minutes Attachments Draft Minutes 08192025  D R A F T MINUTES BUDGET AND FINANCE COMMISSION REGULAR SESSION AUGUST 19, 2025 COUNCIL CHAMBERS 11000 N. LA CAÑADA DRIVE            REGULAR SESSION AT OR AFTER 4:00 PM   CALL TO ORDER by Vice Chair Karlsberg, at 4:02 PM   ROLL CALL Present: Dan Karlsberg, Vice Chair Eloho Okeze, Commissioner Michael Mason, Commissioner Absent:Joyce Garland, Chair (EXCUSED) Matthew Miller, Commissioner (EXCUSED) Staff Present: David Gephart, Chief Financial Officer Wendy Gomez, Deputy Finance Director Chris Hutchison, Senior Budget Analyst PLEDGE OF ALLEGIANCE lead by Vice Chair Karlsberg   CALL TO AUDIENCE - No Comments were received   STAFF LIAISON REPORT Chief Financial Officer, David Gephart, reported the following: Town Council approved moving the Half-Cent Sales Tax into the General Fund from the Community Center Fund Town Council approved the purchase of property to be used as a future police facility Staff has been working on closing year-end and closing out last fiscal year in preparation for auditors Town Council agreed to and approved a new police MOU that went into effect at the start of this fiscal year At the next Town Council Meeting there will be a public hearing on updated building codes, amendments, and discussion on "No Parking" signs on Moore Rd. and Calle Buena Vista   REGULAR SESSION AGENDA   1.REVIEW AND APPROVAL OF THE MAY 20, 2025 REGULAR SESSION MEETING MINUTES       Motion by Commissioner Michael Mason, seconded by Commissioner Eloho Okeze to approve the 8/19/25 Minutes, Budget and Finance Commission Regular Session 1  Motion by Commissioner Michael Mason, seconded by Commissioner Eloho Okeze to approve the May 20, 2025 regular session meeting minutes  Vote: 3 - 0 Carried   2.REVIEW AND APPROVAL OF THE JUNE 17, 2025 REGULAR SESSION MEETING MINUTES       Motion by Commissioner Michael Mason, seconded by Commissioner Eloho Okeze to approve the June 17, 2025 regular session meeting minutes  Vote: 3 - 0 Carried   3.PRESENTATION AND POSSIBLE DISCUSSION OF THE TOWN'S FY24/25 FINANCIAL UPDATE THROUGH MAY 2025 (PLEASE REFERENCE ATTACHMENTS) Presentation by Wendy Gomez, Deputy Finance Director. Discussion ensued amongst staff and commissioners.      4.UPDATE AND DISCUSSION ON NEW TAX CATEGORIES AND FEE PROPOSALS Presentation by David Gephart, Chief Financial Officer. Discussion ensued amongst staff and commissioners.      COUNCIL LIAISON COMMENTS No comments were received.   ADJOURNMENT   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 Budget and Finance Commission of Oro Valley, Arizona held on the 19 day of August, 2025. I further certify that the meeting was duly called and held and that a quorum was present. Dated this 19 day of August, 2025. ___________________________ Melissa Flores Legal Secretary 8/19/25 Minutes, Budget and Finance Commission Regular Session 2    Budget and Finance Commission 2. Meeting Date:09/16/2025   Submitted By:Christopher Hutchison, Finance SUBJECT: PRESENTATION AND POSSIBLE DISCUSSION OF THE TOWN'S FY24/25 FINANCIAL UPDATE THROUGH JUNE 2025 (PLEASE REFERENCE ATTACHMENTS) RECOMMENDATION: N/A EXECUTIVE SUMMARY: Please reference attachments for this item. BACKGROUND OR DETAILED INFORMATION: N/A FISCAL IMPACT: N/A SUGGESTED MOTION: N/A Attachments June 2025 Monthly Financial Report  Town Manager’s Office TOWN COUNCIL REPORT DATE: September 2, 2025 TO: Mayor and Council FROM: Jeff Wilkins, Town Manager David Gephart, Chief Financial Officer SUBJECT: June 2025 Financial Update This financial update is intended to provide an overview and status of revenues and expenditures for the Town’s selected funds through June 2025 for fiscal year 2024/25. Funds included in this financial update are the General Fund, Highway Fund, Community Center Fund and Capital Fund. Also included are the two enterprise funds, Water and Stormwater. Please note that a ll amounts are preliminary, un-audited and subject to change. Additionally, figures may not include any adjusting audit entries required at year-end. Please note the new format of the report. Pages 1-15 are the financial status reports for the funds. Appendix 1 and 2 provide further details on golf activity and contractor performance. Appendix 3 is the consolidated report of all Town funds. Appendix 4 is the General Fund sales tax collections. Appendix 5 is the General Fund state shared revenues. Appendix 6 is a breakdown of the Town’s outstanding debt service principal and interest payments. Appendix 7 is a summary of operating investment values and earnings by month. Appendix 8 lists the specific infrastructure projects that are eligible to receive funding from impact fees. General Fund Financial Status Fiscal Year to Date: June 2025 Revenues ` Amount Percent Local Sales Tax 27,494,515$ 26,682,630$ 28,708,825$ (2,026,195)$ 93% State Shared Revenues 22,785,500 20,602,911 20,432,937 169,974 101% Licenses & Permits 2,122,503 1,798,222 1,673,022 125,200 107% Grants 448,271 656,042 659,982 (3,940) 99% Intergovernmental 2,027,141 2,201,884 1,981,555 220,329 111% Charges for Service 2,920,458 3,063,846 2,966,467 97,379 103% Other Revenue 1,373,238 1,669,532 684,000 985,532 244% Total Revenues 59,171,625$ 56,675,067$ 57,106,788$ (431,721)$ 99% Uses Amount Percent Personnel Services 34,847,443$ 34,743,810$ 36,476,126$ 1,732,316$ 95% Operations and Maintenance 13,003,899 13,588,495 14,882,125 1,293,630 91% Capital Outlay 180,402 261,411 506,600 245,189 52% Transfers Out 12,274,644 9,153,341 9,403,341 250,000 97% Total Uses 60,306,388$ 57,747,057$ 61,268,192$ 3,521,135$ 94% Change in Fund Balance Total Revenues 59,171,625$ 56,675,067$ 57,106,788$ 56,933,816$ Total Uses (60,306,388) (57,747,057) (61,268,192) (59,224,074) Change in Fund Balance (1,134,762)$ (1,071,991)$ (4,161,404)$ (2,290,258)$ Beginning Fund Balance 22,081,503$ Estimated Ending Fund Balance 21,009,512$ Note: The estimated ending fund balance exceeds the Town's 30% expenditure reserve policy by a margin of $6.4 million. FY 2023/24 Actuals FY 2024/25 Actuals FY 2024/25 Budget Actual Vs. Budget FY 2024/25 Budget Year End Estimate FY 2023/24 Actuals FY 2024/25 Actuals FY 2024/25 Budget Actual Vs. Budget FY 2023/24 Actuals FY 2024/25 Actuals Page 1 of 15 General Fund Financial Status Fiscal Year to Date: June 2025 Local Sales Tax Revenue Amount Percent Construction 5,524,238$ 3,876,815$ 5,875,681$ (1,998,866)$ 66% Utilities 4,015,841 3,958,432 4,097,824 (139,392) 97% Retail 9,282,717 9,345,646 9,447,680 (102,034) 99% Remote Seller 1,884,621 1,881,094 1,914,724 (33,630) 98% Bed Tax 2,043,280 2,523,496 2,464,858 58,638 102% Restaurant & Bar 2,736,422 2,852,219 2,726,271 125,948 105% Other 1,292,063 1,565,902 1,465,987 99,915 107% Cable Franchise 715,334 679,027 715,800 (36,773) 95% Local Sales Tax Total 27,494,515$ 26,682,630$ 28,708,825$ (2,026,195)$ 93% State Shared Revenue Amount Percent State Income Tax 12,779,482$ 10,277,099$ 10,276,631$ 468$ 100% State Sales Tax 7,281,900 7,417,134 7,300,876 116,258 102% Vehicle License Tax 2,438,980 2,621,504 2,520,803 100,701 104% Smart and Safe 285,138 287,173 334,627 (47,454) 86% State Shared Total 22,785,500$ 20,602,911$ 20,432,937$ 169,974$ 101% Actual to budget variance of $2 million or 7%: This was primarily due to lower-than-expected construction sales tax, caused by the timing and delays of various construction projects. Although aggregate retail and remote seller sales grew compared to the previous year, they did not meet original projections. However, this shortfall was partially mitigated by higher-than-expected revenue from restaurant & bar, and other. Bed tax revenue also exceeded expectations, largely because of back tax payments received from the prior year. Please refer to Appendix 4 for a detailed breakdown of General Fund local sales tax collections. FY 2023/24 Actuals FY 2024/25 Actuals FY 2024/25 Budget Actual Vs. Budget Actual to budget variance of $170,000 or 0.8%: The favorable budget variance is due to state shared sales tax and vehicle license tax revenues. FY 2023/24 Actuals FY 2024/25 Actuals FY 2024/25 Budget Actual Vs. Budget $10.3 $7.4 $2.6 $0.3 $0 $2 $4 $6 $8 $10 $12 $14 State Income Tax State Sales Tax Vehicle License Tax Smart and SafeMillions FY 2023/24 Actuals FY 2024/25 Actuals FY 2024/25 Budget $3.9 $4.0 $9.3 $1.9 $2.5 $2.9 $1.6 $0.7 $0 $2 $4 $6 $8 $10 Millions FY 2023/24 Actuals FY 2024/25 Actuals FY 2024/25 Budget Page 2 of 15 General Fund Financial Status Fiscal Year to Date: June 2025 Licenses & Permits Revenue Amount Percent Business Licenses & Permits 206,918$ 224,808$ 200,200$ 24,608$ 112% Residential Building Permits 1,326,813 1,053,074 951,806 101,268 111% Commercial Building Permits 398,687 318,821 360,856 (42,035) 88% Other Building Permits and Fees 190,086 201,518 160,160 41,358 126% Licenses & Permits Total 2,122,503$ 1,798,222$ 1,673,022$ 125,200$ 107% Grants Revenue Amount Percent Federal grants 296,793$ 577,122$ 509,415$ 67,707$ 113% State Grants 151,478 78,920 150,567 (71,647) 52% Grants Total 448,271$ 656,042$ 659,982$ (3,940)$ 99% Actual to budget variance of $125,000 or 7.5%: A total of 112 Single Family Residential (SFR) permits have been issued through June (95 budgeted for the year). Other building permit and fee revenues have exceeded expectations, primarily due to grading permit fees. FY 2023/24 Actuals FY 2024/25 Actuals FY 2024/25 Budget Actual Vs. Budget Actual to budget variance of $(4,000) or -0.6%: A significant portion of the budgeted grants are allocated to the Police Department. These grants can fluctuate based on factors such as officer scheduling, overtime, and the timing of reimbursements and awards from grant programs. About $75,000 of budgeted state grants is related to school resource officer reimbursements for Leman Academy. FY 2024/25 Actuals FY 2024/25 Budget Actual Vs. Budget FY 2023/24 Actuals $0.2 $1.1 $0.3 $0.2 $0.0 $0.5 $1.0 $1.5 Business Licenses & Permits Residential Building Permits Commercial Building Permits Other Building Permits and FeesMillions FY 2023/24 Actuals FY 2024/25 Actuals FY 2024/25 Budget $0.6 $0.1 $0.0 $0.2 $0.4 $0.6 $0.8 Federal grants State GrantsMillions FY 2023/24 Actuals FY 2024/25 Actuals FY 2024/25 Budget Page 3 of 15 General Fund Financial Status Fiscal Year to Date: June 2025 Intergovernmental Revenue Amount Percent School Resource Officers 90,301$ 251,029$ 90,000$ 161,029$ 279% RTA Reimbursements 1,930,657 1,939,978 1,886,000 53,978 103% PC Library District Reimburse 6,183 10,877 5,555 5,322 196% Intergovernmental Total 2,027,141$ 2,201,884$ 1,981,555$ 220,329$ 111% Charges for Service Revenue Amount Percent Enterprise Funds Cost Allocation 1,653,935$ 1,701,759$ 1,701,759$ -$ 100% Recreation Fees 928,375 1,013,030 856,640 156,390 118% Development Fees 98,638 104,892 92,100 12,792 114% Court Fees 135,352 144,290 155,000 (10,710) 93% Other 104,157 99,875 160,968 (61,093) 62% Charges for Service Total 2,920,458$ 3,063,846$ 2,966,467$ 97,379$ 103% FY 2023/24 Actuals FY 2024/25 Actuals FY 2024/25 Budget Actual Vs. Budget FY 2023/24 Actuals FY 2024/25 Actuals FY 2024/25 Budget Actual Vs. Budget Actual to budget variance of $220,000 or 11%: Greater than expected RTA reimbursements from the Regional Transportation Authority for Sun Shuttle Dial-a- Ride operations in Oro Valley based on ridership. School Resource Officer revenue exceeded budget due to a new agreement effective January 2025 between the Town and Amphitheater School District to provide three additional School Resource Officers (SROs). These payments are based on actual hours worked at the schools, and as such, they are limited to the school year. Actual to budget variance of $97,000 or 3%: Cost allocation charges to the Town’s enterprise funds for services provided, as well as Parks & Recreation fees, make up the bulk of this revenue category. The enterprise funds cost allocation is the budget amount simply spread out equally over 12 months. Recreation fees exceeded expectations due to both contracted and in-house programs. $0.3 $1.9 $0.0 $0.0 $0.5 $1.0 $1.5 $2.0 $2.5 School Resource Officers RTA Reimbursements PC Library District ReimburseMillions FY 2023/24 Actuals FY 2024/25 Actuals FY 2024/25 Budget $1.7 $1.0 $0.1 $0.1 $0.1 $0.0 $0.5 $1.0 $1.5 $2.0 Enterprise Funds Cost Allocation Recreation Fees Development Fees Court Fees OtherMillions FY 2023/24 Actuals FY 2024/25 Actuals FY 2024/25 Budget Page 4 of 15 General Fund Financial Status Fiscal Year to Date: June 2025 Other Revenue Amount Percent Fines 61,640$ 67,674$ 55,000$ 12,674$ 123% Interest Earnings 716,939 857,345 400,000 457,345 214% Miscellaneous 594,658 744,513 229,000 515,513 325% Other Revenue Total 1,373,238$ 1,669,532$ 684,000$ 985,532$ 244% FY 2023/24 Actuals FY 2024/25 Actuals FY 2024/25 Budget Actual Vs. Budget Actual to budget variance of $986,000 or 144%: Interest earnings are favorable due to a higher rate of return on investments than expected. Miscellaneous is favorable due to a one-time rebate received from the Arizona Municipal Risk Retention Pool (AMRRP). $0.1 $0.9 $0.7 $0.00 $0.20 $0.40 $0.60 $0.80 $1.00 Fines Interest Earnings MiscellaneousMillions FY 2023/24 Actuals FY 2024/25 Actuals FY 2024/25 Budget Page 5 of 15 General Fund Financial Status Fiscal Year to Date: June 2025 Expenditures by Department Amount Percent Clerk 403,496$ 514,388$ 564,954$ 50,566$ 91% Community & Econ. Dev. 3,548,853 3,652,543 4,289,037 636,494 85% Council 184,698 215,600 241,102 25,502 89% Finance 825,859 856,458 867,767 11,309 99% Non-Departmental 2,420,253 3,061,793 3,048,603 (13,190) 100% Human Resources 632,584 667,283 764,005 96,722 87% Information Technology 5,193,821 5,671,755 6,099,638 427,883 93% Legal 1,071,067 1,139,202 1,175,969 36,767 97% Town Manager 1,596,585 1,654,950 1,742,926 87,976 95% Parks & Recreation 4,464,202 4,648,320 4,782,096 133,776 97% Police 20,170,048 19,357,910 20,220,736 862,826 96% Public Works 6,535,148 6,134,231 6,944,467 810,236 88% Town Court 985,129 1,019,285 1,123,551 104,266 91% Total Department Expenditures 48,031,744$ 48,593,716$ 51,864,851$ 3,271,135$ 94% FY 2023/24 Actuals FY 2024/25 Actuals FY 2024/25 Budget Actual Vs. Budget $0.5 $3.7 $0.2 $0.9 $3.1 $0.7 $5.7 $1.1 $1.7 $4.6 $19.4 $6.1 $1.0 $0.0 $5.0 $10.0 $15.0 $20.0 $25.0 Millions FY 2023/24 Actuals FY 2024/25 Actuals FY 2024/25 Budget Actual to budget favorable variance of $3.2 million or 6.2%: Non Departmental exceeded budget due to insurance costs. Actual expenditures through June exceed the prior year's levels primarily due to two factors: 1) A shift in accounting practices for General Fund insurance premiums, which are now fully recorded in Non- Departmental rather than allocated across departments. 2) Increased vehicle replacement reserves due to growth in the fleet and rising vehicle prices. Departmental variances are explained below if they individually exceed $25,000 and 5%. Clerk’s Office: Realized savings due to position vacancies and reduced election-related costs. Community and Economic Development: Did not utilize budgeted funds for contracted staff associated with the social media communications website. Council: Achieved savings by underspending in travel and training, as well as special events. Human Resources: Savings were realized from position vacancies and lower expenditures in travel and training. Information Technology: Experienced favorable variances due to vacancies in the GIS Analyst and IT Technician positions, in addition to reduced operations and maintenance costs for equipment replacements. Town Manager’s Office: Achieved savings from the vacancy of a Management Analyst position, as well as lower-than-anticipated travel, training, and professional services expenditures. Public Works: Realized savings from position vacancies, reduced fuel costs, and lower equipment purchases. Town Court: Achieved savings from the vacancy of a Court Clerk II position, as well as reduced expenditures in travel, training, and professional services. Page 6 of 15 Highway Fund Financial Status Fiscal Year to Date: June 2025 Sources ` Amount Percent Licenses & Permits 25,869$ 40,389$ 25,000$ 15,389$ 162% Highway User Revenue 4,221,036 4,262,644 4,283,146 (20,502) 100% Interest Earnings 185,013 123,210 150,000 (26,790) 82% Miscellaneous 14,715 8,825 3,000 5,825 294% Transfers In 1,500,000 4,000,000 4,000,000 - 100% Total Sources 5,946,633$ 8,435,067$ 8,461,146$ (26,079)$ 100% Expenditures Amount Percent Personnel 1,241,700$ 1,320,865$ 1,333,798$ 12,933$ 99% O&M 1,052,092 1,251,427 1,306,505 55,078 96% Capital Outlays 3,921,615 4,876,765 5,456,000 579,235 89% Total Expenditures 6,215,406$ 7,449,056$ 8,096,303$ 647,247$ 92% Change in Fund Balance Total Sources 5,946,633$ 8,435,067$ 8,461,146$ 8,426,551$ Total Expenditures (6,215,406) (7,449,056) (8,096,303) (7,558,154) Change in Fund Balance (268,774)$ 986,011$ 364,843$ 868,397$ Beginning Fund Balance 606,047$ 606,047$ Estimated Ending Fund Balance 1,592,058$ 1,474,444$ FY 2023/24 Actuals FY 2024/25 Actuals FY 2024/25 Budget Actual Vs. Budget FY 2023/24 Actuals FY 2024/25 Actuals FY 2024/25 Budget Actual Vs. Budget FY 2023/24 Actuals FY 2024/25 Actuals FY 2024/25 Budget Year End Estimate Revenues: Actual to budget unfavorable variance of $26,000 or 0.3%: This was primarily caused by lower-than-projected revenues from Highway User Revenue (HURF) and interest earnings, which were 0.5% and 18% below budget, respectively. The shortfall was partially mitigated by revenues from right-of-way permits and miscellaneous revenues, which both exceeded expectations due to insurance recoveries. Transfers in of $4 million are from the Capital Fund for road projects. Expenditures: Actual to budget favorable variance of $647,000 or 8%: Operations and maintenance (O&M) savings primarily from the bridge maintenance program. Capital outlay expenditures were lower than planned primarily because the Shannon Road Improvements project budget was carried over to the next fiscal year. This was coupled with cost savings from other roadway projects and equipment purchases. Page 7 of 15 Community Center Fund Financial Status Fiscal Year to Date: June 2025 Revenues Amount Percent Local Sales Tax 3,792,744$ 3,904,926$ 3,879,440$ 25,486$ 101% Contracted Operating Revenues 6,037,684 6,418,398 5,240,575 1,177,823 122% Town Operating Revenues 1,314,997 1,581,103 1,386,052 195,051 114% Other Revenues 197,254 199,891 179,332 20,559 111% Total Revenues 11,342,678$ 12,104,318$ 10,685,399$ 1,418,919$ 113% Uses Amount Percent Contracted Operating Expenditures 5,425,401$ 5,638,594$ 5,343,893$ (294,701)$ 106% Town Operating Expenditures 1,856,190 2,497,504 2,204,790 (292,714) 113% Capital Outlay 1,659,167 1,136,453 1,534,749 398,296 74% Debt Service 22,677 22,677 - (22,677) na Transfers Out 1,717,203 1,717,149 1,717,149 - 100% Total Uses 10,680,639$ 11,012,377$ 10,800,581$ (211,796)$ 102% Change in Fund Balance Total Revenues 11,342,678$ 12,104,318$ 10,685,399$ 12,458,393$ Total Uses (10,680,639) (11,012,377) (10,800,581) (11,293,439) Change in Fund Balance 662,039$ 1,091,941$ (115,182)$ 1,164,954$ Beginning Fund Balance 1,815,118$ 1,815,118$ Estimated Ending Fund Balance 2,907,058$ 2,980,072$ FY 2023/24 Actuals FY 2024/25 Actuals FY 2023/24 Actuals FY 2024/25 Actuals FY 2024/25 Budget Actual Vs. Budget FY 2024/25 Budget Year End Estimate FY 2023/24 Actuals FY 2024/25 Actuals FY 2024/25 Budget Actual Vs. Budget Page 8 of 15 Community Center Fund Financial Status Fiscal Year to Date: June 2025 Local Sales Tax Revenue Amount Percent Retail 2,320,679$ 2,336,411$ 2,361,920$ (25,508)$ 99% Remote Seller 471,155 470,274 478,681 (8,408)$ 98% Restaurant & Bar 684,106 713,055 681,568 31,487 105% Other 316,804 385,187 357,271 27,916 108% Local Sales Tax Total 3,792,744$ 3,904,926$ 3,879,440$ 25,486$ 101% Contracted Operating Revenue Amount Percent Golf Revenue, Trail & Cart Fees 3,264,184$ 3,452,744$ 2,572,302$ 880,442$ 134% Member Dues 1,583,698 1,729,349 1,501,560 227,789 115% Food & Beverage (Overlook)766,679 865,944 771,858 94,086 112% Merchandise & Other 423,123 370,361 394,855 (24,494) 94% Contracted Revenue Total 6,037,684$ 6,418,398$ 5,240,575$ 1,177,823$ 122% FY 2023/24 Actuals FY 2024/25 Actuals FY 2023/24 Actuals FY 2024/25 Actuals Actual to budget variance of $25,000 or 0.7%: While overall retail and remote seller sales exceeded prior- year levels, they fell short of initial projections. In contrast, restaurant and bar sales tax revenues outperformed expectations. Actual to budget variance of about $1.2 million or 22%: The favorable variance was due to increased revenue from member dues, greens fees, and food and beverage. Through June, 111,115 rounds of golf had been played which is up 8.2% from the prior year and 13.8% greater than budget. Golf member dues also exceeded budget by 15%. Please refer to Appendix 3 for or a more in-depth analysis of golf revenues, expenses, and historical comparisons Actual Vs. Budget Note: Estimated sales tax collections on golf operations for FY 2024/25 is $165,463. FY 2024/25 Budget FY 2024/25 Budget Actual Vs. Budget $3.5 $1.7 $0.9 $0.4 $0.0 $0.5 $1.0 $1.5 $2.0 $2.5 $3.0 $3.5 $4.0 Golf Revenue, Trail & Cart Fees Member Dues Food & Beverage (Overlook) Merchandise & OtherMillions FY 2023/24 Actuals FY 2024/25 Actuals FY 2024/25 Budget $2.3 $0.5 $0.7 $0.4 $0.0 $0.5 $1.0 $1.5 $2.0 $2.5 Retail Remote Seller Restaurant & Bar OtherMillions FY 2023/24 Actuals FY 2024/25 Actuals FY 2024/25 Budget Page 9 of 15 Community Center Fund Financial Status Fiscal Year to Date: June 2025 Town Operating Revenue Amount Percent Daily Drop-Ins 78,352$ 71,709$ 76,000$ (4,291)$ 94% Member Dues 836,380 996,505 832,038 164,467 120% Recreation Programs 376,300 418,778 388,850 29,928 108% Facility Rental Income 23,964 94,111 89,164 4,947 106% Town Operating Revenue Total 1,314,997$ 1,581,103$ 1,386,052$ 195,051$ 114% Other Revenue Amount Percent Interest Income 33,052$ 38,392$ 16,682$ 21,710$ 230% HOA Contributions 159,050 159,050 159,050 - 100% Miscellaneous 5,151 2,449 3,600 (1,151) 68% Other Revenue Total 197,254$ 199,891$ 179,332$ 20,559$ 111% Actual to budget variance of $195,000 or 14%: The favorable variance was primarily driven by higher member dues, along with revenues from recreational programs and facility rentals that exceeded budget. Membership across the CRC, OV Aquatic Center, golf, and archery range peaked at 5,756 (227 net new members) in January before ending the fiscal year at 5,491, essentially flat compared to the prior year, with a net increase of 12 members. FY 2023/24 Actuals FY 2024/25 Actuals FY 2023/24 Actuals FY 2024/25 Actuals FY 2024/25 Budget Actual Vs. Budget Actual to budget variance of about $21,000 or 11.5%: The favorable variance is due to greater than expected interest earnings. This is the final year of agreed upon annual contributions to golf from HOAs on the 36-hole course. FY 2024/25 Budget Actual Vs. Budget $0.1 $1.0 $0.4 $0.1 $0.0 $0.2 $0.4 $0.6 $0.8 $1.0 $1.2 Daily Drop-Ins Member Dues Recreation Programs Facility Rental IncomeMillions FY 2023/24 Actuals FY 2024/25 Actuals FY 2024/25 Budget $0.0 $0.2 $0.0 $0.0 $0.1 $0.2 Interest Income HOA Contributions MiscellaneousMillions FY 2023/24 Actuals FY 2024/25 Actuals FY 2024/25 Budget Page 10 of 15 Community Center Fund Financial Status Fiscal Year to Date: June 2025 Contracted Operating Expenditures Amount Percent Personnel 1,908,269$ 1,964,500$ 1,839,522$ (124,978)$ 107% Food & Beverage (Overlook) 684,037 756,376 701,378 (54,998) 108% Operations & Maintenance 2,670,413 2,750,609 2,640,332 (110,277) 104% Equipment Leases 162,682 167,110 162,661 (4,449) 103% Contracted Expenditures Total 5,425,401$ 5,638,594$ 5,343,893$ (294,701)$ 106% Actual to budget variance of $(294,000) or 6%: Higher-than-expected utilities, labor costs, and cost of sales led to an unfavorable variance. The growth in golf operating revenue is a contributing factor to these increased costs. FY 2023/24 Actuals FY 2024/25 Actuals FY 2024/25 Budget Actual Vs. Budget $2.0 $0.8 $2.8 $0.2 $0.0 $0.5 $1.0 $1.5 $2.0 $2.5 $3.0 Personnel Food & Beverage (Overlook) Operations & Maintenance Equipment LeasesMillions FY 2023/24 Actuals FY 2024/25 Actuals FY 2024/25 Budget Page 11 of 15 Community Center Fund Financial Status Fiscal Year to Date: June 2025 Town Operating Expenditures Amount Percent Personnel 1,216,983$ 1,324,613$ 1,222,583$ (102,030) 108% Operations & Maintenance 639,208 1,172,891 982,207 (190,684) 119% Town Operating Expenditures Total 1,856,190$ 2,497,504$ 2,204,790$ (292,714)$ 113% FY25 Revised Budget Community Center Flat Roof Surface Replacement 104,344 CRC Golf Maintenance Sewer Connection 75,000 CRC Restaurant Cooler/Freezer Modernization & Floor Repair 35,405 Golf Conquistador Lake Dredging 80,000 Golf John Deere Tractor Replacement 125,000 Pusch Ridge Golf Bridge Replacement 400,000 Pusch Ridge Tennis Bleachers and ADA Accessibility 200,000 Will carryover into FY26 Reelmaster Mower Replacement 105,000 Vistoso Trails Nature Preserve Site Improvements 200,000 VTNP Maintenance Facility Roof Repair and Security 210,000 1,534,749 List of FY25 Capital Projects: Actual to budget unfavorable variance of $293,000 or 13%: The budget overage was mainly due to higher staffing needs to support pool operations and community events. In addition, credit card processing fees and park maintenance costs were higher than expected, which also contributed to the variance. Please note that FY25 Operations & Maintenance costs are significantly higher than the prior year because they now include the maintenance expenses for all Town-owned parks and park facilities. FY 2023/24 Actuals FY 2024/25 Actuals FY 2024/25 Budget Actual Vs. Budget $1.3 $1.2 $0.0 $0.2 $0.4 $0.6 $0.8 $1.0 $1.2 $1.4 Personnel Operations & MaintenanceMillions FY 2023/24 Actuals FY 2024/25 Actuals FY 2024/25 Budget Page 12 of 15 Capital Fund Financial Status Fiscal Year to Date: June 2025 Sources ` Amount Percent Federal Grants -$ 1,000,000$ 1,000,000$ -$ 100% RTA Reimbursements 464,000 164,417 - 164,417 na Vehicle Reserves 892,540 933,490 933,490 - 100% Interest Earnings 716,598 646,662 348,382 298,280 186% Miscellaneous 203,745 165,182 115,000 50,182 144% Transfers In from General Fund 10,000,000 7,139,787 7,139,787 - 100% Total Sources 12,276,883$ 10,049,538$ 9,536,659$ 512,879$ 105% Uses Amount Percent Personnel 278,321$ -$ -$ -$ na O&M 102,004 390,108 37,000 (353,108) 1054% Capital Outlays 18,199,379 5,550,302 10,286,569 4,736,267 54% Transfers Out 1,500,000 4,000,000 4,174,530 174,530 96% Total Uses 20,079,704$ 9,940,410$ 14,498,099$ 4,557,689$ 69% Change in Fund Balance Total Sources 12,276,883$ 10,049,538$ 9,536,659$ Total Uses (20,079,704) (9,940,410) (14,498,099) Change in Fund Balance (7,802,821)$ 109,128$ (4,961,440)$ Beginning Fund Balance 16,677,730$ Estimated Ending Fund Balance 16,786,858$ FY 2023/24 Actuals FY 2024/25 Actuals FY 2024/25 Budget FY 2023/24 Actuals FY 2024/25 Actuals FY 2024/25 Budget Actual Vs. Budget FY 2023/24 Actuals FY 2024/25 Actuals FY 2024/25 Budget Actual Vs. Budget Sources: Federal grants: Arizona State Parks granted $1 million for Naranja Park's pump track and skatepark received this year. Transfers in from the General Fund are to fund CIP projects are made based on the budget and occur quarterly. A yearly reserve is set aside for vehicle replacement, calculated based on the purchase price and estimated lifespan of Town-owned vehicles. This reserve is spread out over 12 months and charged to the general fund each month. Uses: O&M costs are from the purchase of smaller, non-capitalized equipment used in the Steam Pump Ranch - Solar Lighting CIP project. Capital expenditures were $4.07 million under budget due to delays, changes in scope, and savings across multiple projects. This includes the postponement and rescheduling of several initiatives, such as the Town Court Expansion, Police Facility programming, and the Steam Pump Farmers Market, with funds for these projects carrying over to the next fiscal year. The VTNP Revegetation and Beautification project was also modified by the Town Council to include a pond, and its budget will roll over. Furthermore, the 680 Fuel Station renovation was delayed and re- scoped because initial bids exceeded the budget, and a planned upgrade to desktop operating systems was reassessed and did not proceed. The transfers out include $4 million in transfers to the Highway Fund for capital improvement projects. Page 13 of 15 Water Utility Fund Financial Status Fiscal Year to Date: June 2025 Sources ` Amount Percent Water Sales 16,252,902$ 18,212,809$ 18,000,000$ 212,809$ 101% Charges For Services 3,288,475 3,506,480 3,424,000 82,480 102% Grants - 358,361 - 358,361 - Interest Earnings 373,269 339,482 100,000 239,482 339% Miscellaneous 38,752 63,827 - 63,827 - Transfers In 522,701 - - - - Total Sources 20,476,098$ 22,480,958$ 21,524,000$ 956,958$ 104% Uses Amount Percent Personnel 3,547,356$ 3,553,560$ 3,992,428$ 438,868$ 89% O&M 10,039,979 10,937,669 11,198,284 260,615 98% Capital Outlays 209,896 1,873,356 1,785,330 (88,026) 105% Debt Service 3,745,669 3,391,569 3,391,568 (1) 100% Transfers Out 3,554,480 4,744,630 6,862,333 2,117,703 69% Total Uses 21,097,380$ 24,500,784$ 27,229,943$ 2,729,159$ 90% Note: Excludes non-cash outlays for depreciation & amortization Change in Fund Balance Total Sources 20,476,098$ 22,480,958$ 21,524,000$ 22,666,635$ Total Uses (21,097,380) (24,500,784) (27,229,943) (23,715,884) Change in Fund Balance (621,283)$ (2,019,825)$ (5,705,943)$ (1,049,248)$ Beginning Fund Balance 9,354,336$ 9,354,336$ Estimated Ending Fund Balance 7,334,511$ 8,305,087$ FY 2023/24 Actuals FY 2024/25 Actuals FY 2024/25 Budget Year End Estimate FY 2023/24 Actuals FY 2024/25 Actuals FY 2024/25 Budget Actual Vs. Budget FY 2023/24 Actuals FY 2024/25 Actuals FY 2024/25 Budget Actual Vs. Budget Sources: Actual to budget favorable variance of $957,000 or 4.4%: The variance was primarily driven by an unbudgeted WIFA grant received for the NWRRDS infrastructure project, coupled with higher-than- expected interest earnings on investments. Additionally, water sales and service charges slightly exceeded expectations. Uses: Actual to budget favorable variance of $2.7 million or 10%: Personnel savings due to various vacancies in Water Operations and Engineering. Operational and maintenance (O&M) savings due to CAP water delivery charges and system repair and maintenance. Capital outlay exceeded budget due to meter replacements. Debt Service: The full annual principal payment for debt service is recorded at the start of the year. Interest payments are made twice yearly, in January and June. For a complete breakdown of outstanding debt issuances, please refer to Appendix 6. Transfers out are primarily to the Water Resource Impact Fee fund to fund the NWRRDS capital projects and represents 40% of groundwater preservation fees. This transfer is recorded at the end of the fiscal year and may vary based on revenue collections. There is also a small transfer of $2,333 to the Debt Service Fund for debt service. Page 14 of 15 Stormwater Utility Fund Financial Status Fiscal Year to Date: June 2025 Revenues ` Amount Percent Charges For Services 1,522,218$ 1,531,701$ 1,518,500$ 13,201$ 101% Grants - 210,991 210,000 991 100% Interest Earnings 29,206 46,598 19,000 27,598 245% Total Revenues 1,551,424$ 1,789,289$ 1,747,500$ 41,789$ 102% Expenses Amount Percent Personnel 956,423$ 904,549$ 1,018,770$ 114,221$ 89% O&M 359,233 298,961 425,834 126,873 70% Capital Outlays - 367,725 735,000 367,275 50% Total Expenses 1,315,656$ 1,571,235$ 2,179,604$ 608,369$ 72% Note: Excludes non-cash outlays for depreciation Change in Fund Balance Total Revenues 1,551,424$ 1,789,289$ 1,747,500$ 1,575,499$ Total Expenses (1,315,656) (1,571,235) (2,179,604) (1,702,672) Change in Fund Balance 235,768$ 218,054$ (432,104)$ (127,173)$ Beginning Fund Balance 1,062,883$ 1,062,883$ Estimated Ending Fund Balance 1,280,938$ 935,710$ FY 2023/24 Actuals FY 2024/25 Actuals FY 2024/25 Budget Year End Estimate FY 2023/24 Actuals FY 2024/25 Actuals FY 2024/25 Budget Actual Vs. Budget FY 2023/24 Actuals FY 2024/25 Actuals FY 2024/25 Budget Actual Vs. Budget Revenues: Actual to budget favorable variance of $42,000 or 2.3%: The variance is due to interest earning and stormwater utility fees exeeding expectations. Expenses: Actual to budget favorable variance of $608,000 or 27.9%: Personnel savings from employee vacancies and turnover in the division manager position. Operational and maintenance (O&M) savings across several areas, including professional services, vehicle maintenance, field supplies, and travel and training. Capital outlay savings of $300,000 from the delay of the Oro Valley Drive Drainage and Pavement Improvement project until the next fiscal year. Page 15 of 15 APPENDIX 1El Conquistador Golf Mgmt., LLC Report Date: 6/30/2025 El Conquistador Golf Course Jun - 2025 Budget Jun - 2024 Bud Var PY Var Jun - 2025 Budget Jun - 2024 Bud Var PY VarRoundsPublic 3,722 2,000 3,219 1,722 503 60,923 51,300 53,987 9,623 6,936Member3,464 3,000 3,033 464 431 48,439 43,405 46,233 5,034 2,206Tournament 296 300 454(4) (158)9,235 8,250 9,224 985 11Total Rounds 7,482 5,300 6,706 2,182 776 118,597 102,955 109,444 15,642 9,153Membership Fees 138,360.57 100,000.00 114,898.68 38,360.57 23,461.89 1,729,348.93 1,501,560.00 1,579,340.94227,788.93 150,007.99Total Membership Revenue 138,360.57 100,000.00114,898.68 38,360.57 23,461.89 1,729,348.93 1,501,560.001,579,340.94227,788.93 150,007.99Sales - Green Fees120,135.31 65,000.00 100,679.05 55,135.31 19,456.26 2,521,556.49 1,891,250.00 2,088,356.60 630,306.49 433,199.89Sales - Tournament6,109.92 6,000.00 10,825.33 109.92(4,715.41)371,847.94 308,000.00 379,624.57 63,847.94(7,776.63)Sales - Member Rounds 432.00 150.00 153.00 282.00 279.00 5,201.49 3,400.00 3,691.80 1,801.49 1,509.69Golf Lessons 850.00 2,000.00 1,565.00(1,150.00) (715.00)22,343.00 36,250.00 31,899.72(13,907.00) (9,556.72)Range, Rental & Other Golf Related 20,644.28 3,700.00 22,461.31 16,944.28(1,817.03)149,443.01 93,630.00 141,249.02 55,813.01 8,193.99Cart Fees 31,574.20 24,750.00 30,084.81 6,824.20 1,489.39 382,352.03 325,502.00 340,152.87 56,850.03 42,199.16Golf Fees Revenue179,745.71 101,600.00165,768.5078,145.71 13,977.21 3,452,743.962,658,032.002,984,974.58794,711.96467,769.38Sales - Soft Goods 8,924.74 6,700.00 9,824.22 2,224.74(899.48)190,128.50 172,650.00 176,679.83 17,478.50 13,448.67Sales - Hard Goods 13,931.57 5,250.00 6,843.07 8,681.57 7,088.50 143,470.83 110,075.00 117,800.23 33,395.83 25,670.60Merchandise Revenue 22,856.31 11,950.00 16,667.29 10,906.31 6,189.02 333,599.33 282,725.00294,480.0650,874.33 39,119.27Other Revenue 6,428.79 900.00(7,551.83)5,528.79 13,980.62 2,463.09 26,400.00 3,938.91(23,936.91) (1,475.82)Other Revenue6,428.79 900.00(7,551.83)5,528.79 13,980.62 2,463.09 26,400.00 3,938.91(23,936.91) (1,475.82)Sales - Food 35,818.59 21,625.00 13,095.51 14,193.59 22,723.08 461,050.07 383,125.00 381,924.67 77,925.07 79,125.40Food - Member & Employee Discounts 0.00 0.00 0.00 0.00 0.00 0.00 0.00 1,371.79 0.00(1,371.79)Net Food 35,818.59 21,625.00 13,095.51 14,193.59 22,723.08 461,050.07 383,125.00 383,296.46 77,925.07 77,753.61Sales - Beer17,884.50 13,500.00 16,217.91 4,384.50 1,666.59 281,690.01 264,750.00 258,396.98 16,940.01 23,293.03Sales - Wine 1,522.42 1,100.00 703.82 422.42 818.60 23,806.09 23,000.00 20,570.67 806.09 3,235.42Sales - Liquor6,052.61 3,925.00 3,691.78 2,127.61 2,360.83 102,297.49 85,983.00 86,438.45 16,314.49 15,859.04Group Service Charges 10,161.40 0.00(808.03)10,161.40 10,969.43 31,399.20 15,000.00 19,347.94 16,399.20 12,051.26Food & Beverage Revenue71,439.52 40,150.00 32,900.99 31,289.52 38,538.53 900,242.86771,858.00768,050.50128,384.86132,192.36TOTAL REVENUE 418,830.90 254,600.00 322,683.63 164,230.90 96,147.27 6,418,398.17 5,240,575.00 5,630,784.99 1,177,823.17 787,613.18ExpensesCOS - Merchandise 17,794.16 8,515.00 10,982.22(9,279.16) (6,811.94)256,357.20 198,255.73 209,676.55(58,101.47) (46,680.65)COS - Food 14,314.48 7,568.75 10,763.46(6,745.73) (3,551.02)173,177.77 133,837.50 158,120.95(39,340.27) (15,056.82)COS - Beer4,479.62 4,050.00 5,190.66(429.62)711.04 82,019.63 79,425.00 72,131.95(2,594.63) (9,887.68)COS - Wine 2,050.77 330.00 310.71(1,720.77) (1,740.06)9,094.45 6,900.00 6,255.26(2,194.45) (2,839.19)COS - Liquor1,292.90 1,177.50 1,344.74(115.40)51.84 26,818.24 25,794.34 22,078.22(1,023.90) (4,740.02)Cost of Sales39,931.93 21,641.25 28,591.79(18,290.68) (11,340.14)547,467.29 444,212.57 468,262.93(103,254.72) (79,204.36)Gross Margin 378,898.97 232,958.75 294,091.84145,940.22 84,807.13 5,870,930.884,796,362.43 5,162,522.061,074,568.45 708,408.82Month-to-Date Year-to-Date APPENDIX 1El Conquistador Golf Mgmt., LLC Report Date: 6/30/2025 El Conquistador Golf Course Jun - 2025 Budget Jun - 2024 Bud Var PY Var Jun - 2025 Budget Jun - 2024 Bud Var PY VarMonth-to-Date Year-to-DateSalaries & Wages 210,010.88 172,803.00 200,255.62(37,207.88) (9,755.26)2,021,505.42 1,848,305.00 1,953,222.61(173,200.42) (68,282.81)Payroll Taxes 16,285.15 11,212.50 15,991.03(5,072.65) (294.12)163,529.79 152,771.06 158,821.99(10,758.73) (4,707.80)Workers Comp 2,407.56 1,920.00 2,017.51(487.56) (390.05)34,103.56 23,000.00 27,288.08(11,103.56) (6,815.48)Employee Benefits 11,435.82 9,670.00 10,683.94(1,765.82) (751.88)136,159.14 132,000.00 129,847.00(4,159.14) (6,312.14)Other Employee Benefits 1,954.26 1,150.00 1,313.90(804.26) (640.36)19,169.49 13,800.00 17,086.94(5,369.49) (2,082.55)Total Payroll & Benefits242,093.67 196,755.50230,262.00(45,338.17) (11,831.67)2,374,467.402,169,876.062,286,266.62(204,591.34) (88,200.78)Meals & Entertainment458.31 325.00(437.18) (133.31) (895.49)8,931.54 5,100.00 4,978.25(3,831.54) (3,953.29)Travel 0.00 375.00 0.00 375.00 0.00 4,948.26 7,500.00 2,497.31 2,551.74(2,450.95)Other Employee Related 0.00 0.00 1,800.00 0.00 1,800.00 769.89 0.00 1,800.00(769.89)1,030.11Total Employee Related 458.31 700.00 1,362.82 241.69 904.51 14,649.69 12,600.00 9,275.56(2,049.69) (5,374.13)R&M - Equipment 14,501.36 12,850.00 18,368.41(1,651.36)3,867.05 153,710.58 108,735.00 124,125.14(44,975.58) (29,585.44)R&M - Building 6,046.52 3,000.00 5,421.00(3,046.52) (625.52)21,133.38 32,800.00 29,730.35 11,666.62 8,596.97R&M - Golf Course & Tennis Courts 3,367.88 1,000.00 1,692.39(2,367.88) (1,675.49)43,390.49 26,235.00 30,226.15(17,155.49) (13,164.34)R&M - Other413.07 400.00 401.04(13.07) (12.03)4,435.50 4,800.00 4,695.68 364.50 260.18Sod 0.00 500.00 0.00 500.00 0.00 1,067.72 1,000.00 398.82(67.72) (668.90)Sand & Gravel 2,515.13 6,000.00 3,253.68 3,484.87 738.55 35,272.74 25,300.00 31,887.04(9,972.74) (3,385.70)Seed & Mulch 0.00 0.00 2,981.55 0.00 2,981.55 125,961.34 147,200.00 143,204.56 21,238.66 17,243.22Gas, Diesel, Oil & Lubricants 5,179.21 4,550.00 4,879.85(629.21) (299.36)46,665.22 55,000.00 52,876.19 8,334.78 6,210.97Fertilizers 7,426.45 2,000.00 10,156.13(5,426.45)2,729.68 78,467.74 86,300.00 89,359.25 7,832.26 10,891.51Chemicals 6,619.88 10,775.00 11,616.99 4,155.12 4,997.11 77,441.95 83,950.00 78,471.88 6,508.05 1,029.93Total Repairs & Maintenance 46,069.50 41,075.00 58,771.04(4,994.50)12,701.54587,546.66571,320.00584,975.06(16,226.66) (2,571.60)Professional Fees 0.00 0.00 226.00 0.00 226.00 176.00 0.00 452.00(176.00)276.00Marketing & Advertising 930.50 1,800.00 3,585.37 869.50 2,654.87 21,093.33 37,184.00 45,374.15 16,090.67 24,280.82Computer Related 942.00 0.00 0.00(942.00) (942.00)4,905.90 1,500.00 3,600.00(3,405.90) (1,305.90)Dues & Subscriptions 1,455.00 2,260.00 1,632.92 805.00 177.92 38,073.68 27,120.00 14,423.21(10,953.68) (23,650.47)Operating Supplies 15,580.92 6,225.00 8,148.55(9,355.92) (7,432.37)136,843.09 109,025.00 116,348.45(27,818.09) (20,494.64)Linens & Laundry768.45 500.00 686.84(268.45) (81.61)9,257.97 7,600.00 7,398.93(1,657.97) (1,859.04)Postage 0.00 75.00 8.39 75.00 8.39 988.92 775.00 882.26(213.92) (106.66)Member Relations 59.00 0.00(186.80) (59.00) (245.80)6,240.62 3,500.00 4,195.43(2,740.62) (2,045.19)Uniforms 317.31 1,075.00 132.96 757.69(184.35)7,818.19 12,575.00 8,721.45 4,756.81 903.26Other Operating 0.00 0.00 45.00 0.00 45.00 1,198.55 500.00 1,953.37(698.55)754.82Merchant Processing Fees 8,819.66 10,570.00 7,261.20 1,750.34(1,558.46)107,525.41 108,685.00 86,054.46 1,159.59(21,470.95)Bank Fees 31.83 25.00 0.00(6.83) (31.83)1,036.39 1,150.00 2,592.12 113.61 1,555.73Cash Short / (Over)(77.90)0.00 0.00 77.90 77.90(77.90)0.00 0.00 77.90 77.90Late Fees & Penalties0.00 0.00 0.00 0.00 0.00 22.56 0.00 0.00(22.56) (22.56)Centralized Services 1,922.23 2,050.00 1,964.54 127.77 42.31 26,309.78 24,600.00 25,120.46(1,709.78) (1,189.32)Tournament Expenses 0.00 0.00 0.00 0.00 0.00 969.15 0.00 0.00(969.15) (969.15)Total Operating Expenses 30,749.00 24,580.00 23,504.97(6,169.00) (7,244.03)362,381.64334,214.00317,116.29(28,167.64) (45,265.35)Operating Profit59,528.49(30,151.75) (19,808.99)89,680.2479,337.48 2,531,885.49 1,708,352.371,964,888.53 823,533.12 566,996.96 APPENDIX 1El Conquistador Golf Mgmt., LLC Report Date: 6/30/2025 El Conquistador Golf Course Jun - 2025 Budget Jun - 2024 Bud Var PY Var Jun - 2025 Budget Jun - 2024 Bud Var PY VarMonth-to-Date Year-to-DateElectric & Gas 25,513.50 23,565.00 26,441.69(1,948.50)928.19 271,634.36 280,880.00 296,119.81 9,245.64 24,485.45Water82,253.87 105,155.00 92,313.23 22,901.13 10,059.36 1,013,677.99 991,360.00 944,055.53(22,317.99) (69,622.46)Telephone & Internet Connection 665.92 950.00 717.59 284.08 51.67 8,854.60 11,400.00 8,313.32 2,545.40(541.28)Other Third-party Services9,458.65 6,205.00 1,943.11(3,253.65) (7,515.54)65,915.93 67,910.00 60,453.33 1,994.07(5,462.60)Total Utilities 117,891.94135,875.00121,415.62 17,983.06 3,523.68 1,360,082.881,351,550.001,308,941.99(8,532.88) (51,140.89)Lease Expense - Fixed 17,113.40 13,259.00 13,258.76(3,854.40) (3,854.64)162,959.76 159,108.00 159,105.12(3,851.76) (3,854.64)Lease Expense - Short-term & Other298.11 831.11 298.11 533.00 0.00 4,150.17 10,973.32 14,474.82 6,823.15 10,324.65Total Leases 17,411.51 14,090.11 13,556.87(3,321.40) (3,854.64)167,109.93 170,081.32 173,579.942,971.39 6,470.01Fixed Operating Expenses 135,303.45 149,965.11 134,972.49 14,661.66(330.96)1,527,192.81 1,521,631.32 1,482,521.93(5,561.49) (44,670.88)Gross Operating Profit(75,774.96) (180,116.86) (154,781.48)104,341.9079,006.52 1,004,692.68186,721.05 482,366.60817,971.63 522,326.08Insurance 5,877.20 5,610.00 6,408.28(267.20)531.08 74,103.91 67,210.00 43,930.09(6,893.91) (30,173.82)Property Taxes 2,934.25 0.00 0.00(2,934.25) (2,934.25)2,934.25 0.00 0.00(2,934.25) (2,934.25)Other Taxes 0.00 0.00 0.00 0.00 0.00 0.00 0.00 400.99 0.00 400.99Bad Debt Expense 50.93 150.00(186.80)99.07(237.73)5,125.16 1,800.00 1,973.42(3,325.16) (3,151.74)Fees, Permits, & Licenses 2,465.64 4,200.00 4,967.44 1,734.36 2,501.80 9,498.26 9,375.00 14,802.45(123.26)5,304.19Base Management Fees10,824.32 10,930.00 10,612.08 105.68(212.24)129,891.84 131,160.00 127,344.96 1,268.16(2,546.88)Other Expenses 22,152.3420,890.00 21,801.00(1,262.34) (351.34)221,553.42 209,545.00188,451.91(12,008.42) (33,101.51)Net Operating Income(97,927.30) (201,006.86) (176,582.48)103,079.5678,655.18 783,139.26(22,823.95)293,914.69 805,963.21 489,224.57Other Income 0.00 0.00(30,163.90)0.00(30,163.90)0.00 0.00(390,329.36)0.00(390,329.36)Incentive Management Fee 100,889.30 40,000.00 89,865.08(60,889.30) (11,024.22)108,919.92 40,000.00 89,865.08(68,919.92) (19,054.84)NET INCOME(198,816.60) (241,006.86) (236,283.66)42,190.26 37,467.06 674,219.34(62,823.95)594,378.97 737,043.29 79,840.37EBITDA(198,816.60) (241,006.86) (236,283.66)42,190.26 37,467.06 674,219.34(62,823.95)594,378.97 737,043.29 79,840.37 APPENDIX 2Operating:Through JunBudgetCumulativeFY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 FY2024 FY2025 FY 2025 ActualsRevenue36 Hole 500,158 1,883,452 1,798,304 2,171,484 2,367,136 2,593,395 3,522,083 3,674,489 3,856,880 4,724,718 4,933,178 4,015,000 32,025,277 Pusch Ridge - 105,370 99,134 59,726 106,184 98,316 - 380,375 414,225 528,346 619,276 479,025 2,410,952 F&B - Overlook - 606,171 708,594 745,766 671,582 554,336 448,782 671,479 725,222 766,679 865,944 746,550 6,764,555 Total Revenue500,158 2,594,993 2,606,032 2,976,976 3,144,902 3,246,047 3,970,865 4,726,343 4,996,327 6,019,743 6,418,398 5,240,575 41,200,784 Expenses36 Hole 1,112,252 3,588,714 3,936,889 3,817,932 3,771,706 3,891,341 3,915,216 3,740,982 3,929,757 4,263,007 4,365,456 4,183,688 40,333,252 Pusch Ridge - 253,513 256,769 236,160 230,196 287,112 - 319,702 390,959 478,320 516,762 458,827 2,969,494 F&B - Overlook - 861,740 823,383 841,866 785,499 701,538 440,382 630,509 596,910 684,037 756,376 701,378 7,122,239 Total Expenses1,112,252 4,703,967 5,017,041 4,895,958 4,787,401 4,879,991 4,355,598 4,691,193 4,917,626 5,425,364 5,638,594 5,343,893 50,424,985 Profit/(Loss)36 Hole (612,094) (1,705,262) (2,138,585) (1,646,448) (1,404,570) (1,297,946) (393,133) (66,493) (72,877) 461,711 567,722 (168,688) (8,307,975) Pusch Ridge - (148,143) (157,635) (176,434) (124,012) (188,796) - 60,673 23,266 50,026 102,514 20,198 (558,541) F&B - Overlook - (255,569) (114,789) (96,100) (113,917) (147,202) 8,400 40,970 128,312 82,642 109,569 45,172 (357,684) Total Operating Profit/(Loss)(612,094) (2,108,974) (2,411,009) (1,918,982) (1,642,499) (1,633,944) (384,733) 35,150 78,701 594,379 779,804 (103,318) (9,224,201) Capital Investments45,116 47,909 29,464 - - 131,035 2,828,061 4,619,904 2,184,848 743,897 835,000 10,630,234 Initial purchase (1)300,000 350,000 350,000 1,000,000 Notes: (1) $1,000,000 original purchase of courses and community center1/2 cent sales tax 506,710 2,030,750 2,199,466 2,330,941 2,463,034 2,584,916 2,947,420 3,535,507 3,707,578 3,792,744 3,904,926 3,726,016 30,003,992 HOA contributions - - - - - - 125,000 159,050 159,050 159,050 159,050 159,050 761,200 POST AGREEMENTPRE AGREEMENTTown of Oro ValleyGolf AnalysisAPPENDIX 2Page 1 OF 2 APPENDIX 2Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May JunFY 2023Gross Margin 218,180 210,232 258,241 252,747 499,632 394,901 472,032 541,889 636,010 523,324 315,175 231,708 Expenses 306,974 296,210 432,727 576,529 322,700 297,856 310,847 307,918 355,497 313,621 429,007 558,232 Net Income/(Loss) (88,794) (85,978) (174,487) (323,782) 176,932 97,044 161,185 233,971 280,512 209,703 (113,832) (326,524) FY 2024Gross Margin 213,698 225,040 295,419 332,783 495,412 480,305 525,109 589,339 694,275 586,473 430,577 294,092 Expenses 406,558 333,614 420,523 454,504 412,959 349,298 308,213 291,616 334,623 326,900 398,960 530,376 Net Income/(Loss) (192,860) (108,573) (125,103) (121,721) 82,453 131,007 216,896 297,723 359,652 259,573 31,617 (236,284) FY 2025Gross Margin 263,005 299,163 297,857 375,363 594,117 556,764 534,838 706,996 737,685 675,958 450,287 378,899 Expenses 411,466 416,806 442,887 488,946 531,458 378,085 374,611 318,371 420,446 381,953 453,967 476,826 Net Income/(Loss) (148,461) (117,643) (145,030) (113,583) 62,659 178,679 160,226 388,625 317,239 294,005 (3,681) (97,927) Town of Oro ValleyGolf Analysis - Contractor Financials - 200,000 400,000 600,000 800,000Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May JunComparison of Gross Income by Month - Total Golf OperationsFY 2023FY 2024FY 2025 - 200,000 400,000 600,000 800,000Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May JunComparison of Total Expenses by Month - Total Golf OperationsFY 2023FY 2024FY 2025 (400,000) (200,000) - 200,000 400,000 600,000Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May JunComparison of Net Income/(Loss) by Month - Total Golf OperationsFY 2023FY 2024FY 2025APPENDIX 2Page 2 of 2 APPENDIX 3Consolidated Year-to-Date Financial Report through June 2025FY 2024/2025FundFY 24/25Beginning BalanceRevenueOther Fin Sources/Transfers InTotal In Personnel O&M CapitalDebt ServiceOther Fin Uses/ Transfers OutTotal OutFund Balance Through June 2025General Fund 22,081,503 56,675,067 56,675,067 34,743,810 13,588,495 261,411 9,153,341 57,747,057 21,009,512 Highway Fund 606,047 4,435,067 4,000,000 8,435,067 1,320,865 1,251,427 4,876,765 7,449,056 1,592,058 Grants and Contributions Fund (185,555) 827,598 125,375 952,973 77,115 426,422 205,425 708,962 58,455 Seizure & Forfeiture - Justice/State 331,063 43,845 43,845 - 374,908 Community Center Fund 1,815,118 12,104,318 12,104,318 1,324,613 6,811,485 1,136,453 22,677 1,717,149 11,012,377 2,907,058 Municipal Debt Service Fund 326,002 106,928 3,650,379 3,757,307 9,154 4,020,354 4,029,508 53,800 Water Resource System & Dev. Impact Fee Fund 14,427,924 1,659,208 4,742,297 6,401,506 229,835 14,214,404 55,711 14,499,950 6,329,480 Townwide Roadway Dev Impact Fee Fund 2,550,696 531,375 531,375 8,556 8,556 3,073,515 Parks & Recreation Impact Fee Fund 185,297 194,954 194,954 959 959 379,291 Police Impact Fee Fund 73,057 92,212 92,212 274 42,718 42,992 122,276 Capital Fund 16,677,730 2,909,751 7,139,787 10,049,538 - 390,108 5,550,302 4,000,000 9,940,410 16,786,858 PAG/RTA Fund 430,485 57,569 57,569 43,043 43,043 445,010 Water Utility 9,354,336 22,480,958 - 22,480,958 3,553,560 10,937,669 1,873,356 3,391,569 4,744,630 24,500,784 7,334,511 Stormwater Utility 1,062,883 1,789,289 1,789,289 904,549 298,961 367,725 1,571,235 1,280,938 Benefit Self Insurance Fund 3,404,005 4,858,321 4,858,321 4,286,514 4,286,514 3,975,812 Recreation In-Lieu Fee Fund 17,976 33,842 33,842 - 51,818 Total 73,158,566 108,800,301 19,657,838 128,458,139 41,924,512 38,282,902 28,485,841 7,490,311 19,657,838 135,841,404 65,775,301 APPENDIX 4General Fund Local Sales Tax Collections FY 2024/25JULAUGSEPOCTNOVDECJANFEBMARAPRMAYJUNTOTALConstruction Sales Tax427,032 291,729 371,199 324,860 545,601 253,973 356,030 414,112 171,326 130,317 296,873 293,764 3,876,815 Utility Sales Tax306,838 399,701 417,156 405,901 370,322 335,865 288,120 341,375 312,662 259,576 253,922 266,994 3,958,432 Retail Sales Tax750,336 715,116 684,389 714,418 739,186 827,763 1,054,115 782,626 713,089 825,844 800,879 737,884 9,345,646 Remote Seller Sales Tax131,633 141,042 139,202 140,153 150,391 183,215 220,084 154,652 143,119 160,766 156,956 159,881 1,881,094 Bed Tax107,778 180,045 136,688 120,312 177,934 231,333 286,851 209,622 320,232 321,945 252,906 177,851 2,523,496 Restaurant & Bar Sales Tax217,007 191,436 200,970 229,592 214,851 229,614 299,860 224,492 251,749 306,309 224,410 261,930 2,852,219 All Other Local Sales Tax *95,050 111,599 95,492 97,497 104,248 138,553 167,658 144,417 176,214 179,760 147,140 108,273 1,565,902 Monthly Total 2,035,673$ 2,030,668$ 2,045,096$ 2,032,733$ 2,302,532$ 2,200,315$ 2,672,718$ 2,271,295$ 2,088,391$ 2,184,519$ 2,133,086$ 2,006,576$ 26,003,603$ Cumulative Total2,035,673$ 4,066,341$ 6,111,437$ 8,144,170$ 10,446,702$ 12,647,017$ 15,319,736$ 17,591,031$ 19,679,422$ 21,863,941$ 23,997,027$ 26,003,603$ Monthly variance(64,697)$ (236,208)$ (51,407)$ (113,889)$ 81,336$ (103,069)$ 213,054$ (207,120)$ 315,412$ (328,149)$ (222,092)$ (58,751)$ Cumulative variance(64,697)$ (300,905)$ (352,312)$ (466,200)$ (384,865)$ (487,934)$ (274,879)$ (481,999)$ (166,586)$ (494,735)$ (716,827)$ (775,578)$ FY 2023/24JULAUGSEPOCTNOVDECJANFEBMARAPRMAYJUNTOTALConstruction Sales Tax 566,321 609,737 391,196 422,231 488,917 493,394 486,229 411,515 164,695 578,910 513,988 397,105 5,524,238 Utility Sales Tax 250,515 368,788 435,027 373,297 365,463 336,739 321,251 411,797 336,202 217,994 338,593 260,175 4,015,841 Retail Sales Tax 728,452 730,517 682,418 725,728 645,288 841,754 1,049,364 772,676 735,897 833,289 774,387 762,947 9,282,717 Remote Seller Sales Tax 131,471 138,602 128,741 129,290 237,669 179,485 185,936 146,170 154,687 150,204 147,819 154,547 1,884,621 Bed Tax 144,726 137,921 139,535 141,666 163,605 153,950 115,408 326,484 83,195 279,300 195,470 162,019 2,043,280 Restaurant & Bar Sales Tax 192,259 193,105 215,297 223,296 212,172 217,665 234,122 232,257 227,823 298,144 260,586 229,695 2,736,422 All Other Local Sales Tax *86,626 88,207 104,287 131,114 108,083 80,397 67,352 177,516 70,480 154,827 124,334 98,840 1,292,063 Monthly Total 2,100,370$ 2,266,876$ 2,096,503$ 2,146,622$ 2,221,197$ 2,303,384$ 2,459,664$ 2,478,415$ 1,772,979$ 2,512,668$ 2,355,178$ 2,065,327$ 26,779,181$ Cumulative Total2,100,370$ 4,367,246$ 6,463,748$ 8,610,370$ 10,831,567$ 13,134,951$ 15,594,615$ 18,073,030$ 19,846,008$ 22,358,676$ 24,713,854$ 26,779,181$ *Does not include cable franchise fees or sales tax audit revenues APPENDIX 5General Fund State Shared RevenuesFY 2024/25JULAUGSEPOCTNOVDECJANFEBMARAPRMAYJUNTOTALState Shared Income Tax 856,425 856,425 856,425 856,425 856,425 856,425 856,425 856,425 856,425 856,425 856,425 856,425 10,277,099 State Shared Sales Tax 593,796 582,212 575,094 597,416 614,349 622,937 724,079 596,353 582,965 677,435 632,153 618,346 7,417,134 County Auto Lieu 237,795 215,615 204,204 224,993 189,831 182,939 128,184 304,691 257,209 119,394 230,779 325,869 2,621,504 Smart and Safe- - - - - 138,177 - - 15 - - 148,981 287,173 Monthly Total 1,688,016$ 1,654,252$ 1,635,723$ 1,678,834$ 1,660,605$ 1,800,479$ 1,708,688$ 1,757,469$ 1,696,614$ 1,653,254$ 1,719,357$ 1,949,620$ 20,602,911$ Cumulative Total 1,688,016$ 3,342,268$ 4,977,991$ 6,656,825$ 8,317,430$ 10,117,909$ 11,826,596$ 13,584,065$ 15,280,679$ 16,933,933$ 18,653,291$ 20,602,911$ Monthly variance (151,985)$ (229,616)$ (189,309)$ (190,136)$ (175,547)$ (183,187)$ (274,755)$ (83,157)$ (181,426)$ (278,225)$ (182,412)$ (62,833)$ Cumulative variance (151,985)$ (381,601)$ (570,909)$ (761,046)$ (936,593)$ (1,119,780)$ (1,394,535)$ (1,477,693)$ (1,659,119)$ (1,937,343)$ (2,119,755)$ (2,182,589)$ FY 2023/24JULAUGSEPOCTNOVDECJANFEBMARAPRMAYJUNTOTALState Shared Income Tax 1,064,957 1,064,957 1,064,957 1,064,957 1,064,957 1,064,957 1,064,957 1,064,957 1,064,957 1,064,957 1,064,957 1,064,957 12,779,482 State Shared Sales Tax 585,790 598,642 580,255 602,020 587,629 599,429 695,594 581,121 577,773 652,448 617,138 604,061 7,281,900 County Auto Lieu 189,254 220,268 179,819 201,993 183,567 183,086 222,892 194,548 235,310 214,074 219,675 194,493 2,438,980 Smart and Safe- - - - - 136,194 - - - - - 148,944 285,138 Monthly Total 1,840,001$ 1,883,868$ 1,825,032$ 1,868,970$ 1,836,152$ 1,983,666$ 1,983,443$ 1,840,626$ 1,878,040$ 1,931,479$ 1,901,769$ 2,012,454$ 22,785,500$ Cumulative Total 1,840,001$ 3,723,869$ 5,548,900$ 7,417,870$ 9,254,023$ 11,237,689$ 13,221,132$ 15,061,758$ 16,939,798$ 18,871,277$ 20,773,046$ 22,785,500$ APPENDIX 6Debt Service ExpenseAdopted Forecast Forecast Forecast Forecast Forecast Forecast Forecast Final Payment 2024/25 2025/26 2026/27 2027/28 2028/29 2030-2034 2035-2039 2040-2043DateMunicipal Debt Service FundExcise Tax Revenue Bonds- - - 2010 CREBS 191,318 186,370 176,066 170,437 - - - - 20282012 Revenue Bonds 226,718 224,631 227,147 224,125 - - - - 20282015a Refunding Excise Tax (1) 306,079 304,379 - - - - - - 20262016 Excise Tax 172,224 172,968 172,635 172,236 172,760 516,654 - - 20322017a Refunding Excise Tax (2) 138,657 138,645 138,626 - - - - - 20272018a Excise Tax Revenue Obligations (3) 171,718 171,515 171,446 171,502 171,429 855,649 - - 20342021 Parks & Rec Excise Tax 1,544,925 1,543,300 1,544,800 1,539,425 1,542,050 7,693,700 7,684,600 4,599,500 20422021 Pension Obligation Bonds 1,268,715 1,271,262 1,266,350 1,264,118 1,264,461 6,313,500 6,298,141 2039Total Municipal Debt Service Fund4,020,354 4,013,070 3,697,070 3,541,843 3,150,700 15,379,503 13,982,741 4,599,500 Community Center FundContracts PayableLeased Fitness Equipment 20,374 7,668 - - - - - - 2026Financed Fitness Equipment 30,126 22,677 7,559 - - - - - 2027Golf Carts 162,661 130,867 76,339 - - - - - 2027Total Community Center Fund213,161 161,212 83,898 - - - - - WRSDIF FundExcise Tax Revenue Bonds2021a Excise Tax Revenue Obligations (4) 55,711 56,550 56,693 56,295 34,889 202955,711 56,550 56,693 56,295 34,889 - - - Water Utility FundExcise Tax Revenue Bonds2015b Refunding Revenue Bonds (1) 149,356 148,500 - - - - - - 20262017b Refunding Revenue Bonds (2) 1,620,250 1,619,650 1,619,032 - - - - - 20272018b Excise Tax Revenue Obligation (3) 509,310 508,532 508,144 508,118 507,710 2,530,976 - - 20342021b Excise Tax Revenue Obligations (4) 740,667 751,828 753,730 748,434 463,845 111,139 - - 2030Water Revenue LoansWIFA Loan, 2014 371,985 376,299 376,178 376,054 375,926 - - - 2029Total Water Utility Fund3,391,568 3,404,809 3,257,084 1,632,606 1,347,481 2,642,115 - - TOTAL DEBT SERVICE - ALL FUNDS7,680,794 7,635,641 7,094,745 5,230,744 4,533,070 18,029,978 13,982,741 4,599,500 (1) Series 2015 for municpal operation facilities debt service is split between General Fund excise tax revenue (67%) and water revenue (33%.)(2) Series 2017 debt service is split between General Fund excise tax revenue (8%) and water revenue (92%.)(3) Series 2018 for water infrastucture and police evidence and substation facility. Debt service is split between General Fund excise tax revenue (25%) and water revenue (75%.)(4) Series 2021 debt service is split between the Water Utility Fund (93%) and the Water Impact fee Fund (7%.) APPENDIX 7Town of Oro ValleyOperating Investment SummaryFiscal Year 2024/25JUL AUG SEP OCT NOV DEC JAN FEB MAR APR MAY JUNLGIPEnding Market Value3,180,476$ 3,442,323$ 3,896,068$ 3,495,246$ 3,479,412$ 7,779,571$ 8,677,052$ 4,854,118$ 8,038,871$ 13,923,747$ 14,482,128$ 7,259,736$ Investment Income16,989$ 15,807$ 13,771$ 14,795$ 16,950$ 23,753$ 31,580$ 17,465$ 28,449$ 45,289$ 49,706$ 46,800$ 1-Month Yield5.42% 5.32% 5.04% 4.84% 4.65% 4.51% 4.41% 4.36% 4.33% 4.33% 4.33% 4.34%PFM Asset ManagementClosing Market Value55,564,717$ 54,718,509$ 53,177,796$ 50,876,284$ 49,493,292$ 48,491,572$ 46,056,334$ 44,406,976$ 43,344,947$ 41,951,150$ 43,566,778$ 40,866,537$ Investment Income242,494$ 212,354$ 138,428$ 115,743$ 214,420$ 122,153$ 344,426$ 182,558$ 88,866$ 128,660$ 246,997$ 177,163$ Annualized Yield to Maturity at Cost4.01% 3.98% 4.11% 4.20% 4.24% 4.29% 4.30% 4.35% 4.39% 4.43% 4.42% 4.49%Wells Fargo SweepEnding Balance3,651,439$ 4,348,204$ 2,832,971$ 3,463,068$ 5,557,936$ 3,919,949$ 3,927,620$ 5,825,831$ 3,744,407$ 2,662,789$ 3,893,632$ 6,570,722$ Investment Income18,152$ 12,122$ 15,630$ 11,743$ 11,590$ 13,504$ 11,635$ 20,615$ 12,799$ 13,690$ 13,000$ 14,178$ 7-Day Simple Yield5.19% 5.17% 4.80% 4.72% 4.52% 4.36% 4.26% 4.23% 4.21% 4.20% 4.17% 4.20%Total Ending Balance62,396,632$ 62,509,037$ 59,906,835$ 57,834,599$ 58,530,640$ 60,191,093$ 58,661,006$ 55,086,925$ 55,128,225$ 58,537,687$ 61,942,539$ 54,696,995$ Total Investment Income277,635$ 240,283$ 167,829$ 142,281$ 242,960$ 159,409$ 387,641$ 220,638$ 130,115$ 187,639$ 309,702$ 238,141$ APPENDIX 8 Town of Oro Valley - Development Impact Fee Fund Projects Parks and Recreation Facilities Description Cost Completed? Skate Park $1,500,000 Yes Playground and Parking Lot $1,700,000 Yes Multiuse Fields (lighted) $1,200,000 Yes Dog Park $150,000 Yes Developed Park Land $927,694 Park Amenities $2,501,696 Police Police Substation Debt $1,198,500 Police Vehicles $846,050 Street Facilities La Cholla Blvd, Tangerine Rd-Lambert Ln - Road Widening $1,700,000 Yes Shannon Rd, Tangerine Rd-Naranja Dr - New Road $1,000,000 Lambert Ln. .5 mi E of Shannon-Rancho Sonora - Road Widening $1,000,000 Rancho Vistoso & Woodburne - Intersection Improvement $750,000 Oracle Rd & Rams Field Intersection - Intersection Improvement $750,000 Moore Rd La Cholla Blvd - Intersection Improvement $900,000 Moore Rd - Extension E of Rancho Vistoso Blvd - New Road & Intersection $1,026,840 Yes Moore Rd & La Canada Dr Intersection - Intersection Improvement $1,200,000 Yes Glover Rd Multi Use Path - Multi-modal facility $150,000 Yes Glover Rd south half widening - Road Widening $500,000 Yes Water Facilities Water Supply Steam Pump D-Zone Well $1,500,000 Program Management Support Services (P) $1,050,000 Yes Well Improvement Analysis and Recovery Permits (P) $150,000 Yes Well Drilling and Testing (P) $300,000 Yes Construction Permitting, Drilling, Development and Testing (P) $1,500,000 Yes Well Equipment Design and Site Improvements (P) $1,800,000 Storage Palisades C-Zone Storage Tank and Pipeline $4,250,000 Pressure Zone G Storage Expansion $8,000,000 Pressure Zone G, H and I Storage Expansion $4,000,000 Forebay Design (P)$99,231 Forebay Reservoir Construction (P) $900,000 Shannon Rd Forebay Reservoir And Booster Station Prop (Ind.) $240,000 Yes Forebay Reservoir Booster Station Design (Ind.) $90,000 Yes Shannon Rd Forebay Reservoir and Booster Station Design (Ind.) $180,000 Yes Booster Station Construction Forebay Res. (Ind.) $300,000 Yes Shannon Road Forebay Res. Construction (Ind.) $840,000 Yes Shannon Road Forebay Res. Construction (Ind.) $540,000 Yes Arizona municipalities can charge development fees to cover the cost of infrastructure improvements needed to support new development. These fees are one-time payments used to fund projects like building new roads, parks, or water facilities. The amount of the fee is determined by an Infrastructure Improvements Plan (IIP) and land use assumptions. Importantly, development fees can only be used for building new infrastructure or paying off debt for growth-related projects. They cannot be used for ongoing maintenance, repairs, or addressing existing problems. The Town's IIP includes public services for parks and recreation facilities, police facilities, street facilities, and water facilities. Below is a list of identified IIP projects use in the latest impact fee study to calculate the development fees. These are projects that would be eligible to be funded by development fees as outlined in ARS § 9-463.05 (T)(7)(a). APPENDIX 8 Page 1 of 2 APPENDIX 8 Water Facilities Continued Description Cost Completed? Distribution Moore Road F-Zone Interconnect $750,000 Water Plant 14 Booster Capacity Expansion $250,000 Pipeline Design (Recovery Water & Transmission) (P) $660,692 Pipeline Construction (P) $4,320,000 Pipeline Route Study and Preliminary Design (Ind.) $120,000 Yes Pipeline Easement Acquisition (Ind.) $450,000 Yes Pipeline Design (Ind.) $600,000 Yes Pipeline Construction NWRRDS to La Canada Res. (Ind.) $5,880,000 Interconnect to Tangerine Rd. (Ind.) $270,000 Interconnect to Lambert Lane (Ind.) $510,000 Yes APPENDIX 8 Page 2 of 2    Budget and Finance Commission 3. Meeting Date:09/16/2025   Requested by: Bayer Vella, Community and Economic Development  Submitted By:Michael Spaeth, Community and Economic Development SUBJECT: DISCUSSION AND POSSIBLE RECOMMENDATION TO TOWN COUNCIL OF NEW TAXES AND REVISED FEES RECOMMENDATION: Staff recommends approval of the new taxes and revised fee proposals included in:  Attachment 1 (New taxes)1. Attachment 2 (Stormwater Utility Fee)2. Attachment 3 (Parks and Recreation Fees). 3. EXECUTIVE SUMMARY: The purpose of this report is to provide an update on the community engagement outreach effort regarding new tax categories and revised fee proposals and seek a final recommendation from the Budget and Finance Commission (BFC). The proposals included in Attachment 1 (New Taxes), Attachment 2 (Stormwater Fees) and Attachment 3 (Parks and Recreation Fees) remain the same as those reviewed by the Budget and Finance Commission (BFC) and Town Council at study sessions earlier this year. Both BFC and 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. 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 Objective 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 to augment the Town's local sales tax collections. These tax categories include the following:  Use tax1. Telecommunications tax2. Commercial Rental tax3. 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 the utilization of these funds toward Town capital needs, which currently does 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. 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). 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 to engage as many residents as possible to be a part of the discussion surrounding the new tax and fee increase proposals. Three (3) virtual meetings were held in July (one for each proposal) with the aim of ensuring the background and rationale were 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. Finally, the Town hosted a business forum jointly with the Oro Valley Chamber of Commerce on September 11, 2025, gathering specific feedback from members of the Oro Valley business community. Staff will provide an update to BFC during the meeting on September 16, 2025.  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.  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 new tax categories and revised fees are summarized below and included in Attachment 1 (New Taxes), Attachment 2 (Stormwater Fee) and Attachment 3 (Parks and Recreation Fees). NEW TAX CATEGORIES (ATTACHMENT 1) The Town is proposing three additional tax 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 is conducting 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.   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.  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. Staff will provide an update to the BFC at the meeting on September 16, 2025.  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 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.   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 BFC at the study session in May and staff recommends approval. 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 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 Stormwater Fee The proposed rate increase is estimated to generate $691,000 annually. Parks and Recreation Fees  The proposed rate increases are estimated to generate $400,000 annually for the department, which would roughly be split 50/50 between the General Fund and Community Center Fund.   SUGGESTED MOTION: The Budget and Finance Commission may wish to consider one of the following motions: The Budget and Finance Commission may wish to consider one of the following motions: I move to RECOMMEND APPROVAL of the new taxes and revised fee proposals included in Attachment 1, Attachment 2 and Attachment 3, based on a finding that it is consistent with Your Voice, Our Future General Plan and all applicable department policies.  OR  I move to RECOMMEND DENIAL of the new taxes and revised fee proposal included in Attachment 1, Attachment 2 and Attachment 3, based on a finding that ____________________.  Attachments ATTACHMENT 1 - TAX COMPARISON MATRIX  ATTACHMENT 2 - STORMWATER RATE ANALYSIS REPORT 2024  ATTACHMENT 3 - PARKS AND REC DEPARTMENT FEE PROPOSAL OVERVIEW  ATTACHMENT 4 - COMMUNITY ENGAGEMENT SUMMARIES  Marana Sahuarita Tucson Oro Valley Advertising 0.00%0.00%0.00%2.50% Amusements 2.50%2.00%2.60%2.50% Contracting - Prime 4.00%4.00%2.60%4.00% Contracting - Speculative Builders 4.00%4.00%2.60%4.00% Contracting - Owner Builder 4.00%4.00%2.60%4.00% Job Printing 2.50%2.00%2.60%2.50% Manufactured Buildings 2.00%2.00%2.60%2.50% Timbering and Other Extraction 2.50%2.00%2.60%2.50% Severance - Metal Mining 0.10%0.10%0.10%0.10% Publication 2.50%2.00%2.60%2.50% Hotels 2.50%2.00%6.00%2.50% Bed Surtax (Additional Tax) (Per Night)0.00%0.00%4.00$ 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