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Home My WebLink AboutPackets - Council Packets (1645)Town Council Meeting Regular Session September 22, 2021 Council meeting will resume at or after 6:00 p.m. Town Council Meeting Regular Session September 22, 2021 Town Council Meeting Announcements Upcoming Meetings Meetings are subject to change. Check the Town website for meeting status. Board of Adjustment Sept. 28 at 3 p.m. Council Chambers Historic Preservation Commission Oct. 4 at 5 p.m. Hopi Conference Room Planning and Zoning Commission -CANCELED Oct. 5 at 6 p.m. Council Chambers Town Council Regular Session Oct. 6 at 6 p.m. Council Chambers Spotlight on Youth Charles Elliott Town Council Meeting Regular Session September 22, 2021 Fiscal Year 2020/21 Financial Update Through June 2021 September 22, 2021 Note: Revenues and expenditures listed in this report are preliminary, unaudited and subject to change based upon adjusting entries, as necessary. GENERAL FUND REVENUES REVENUE SOURCE Budget Actuals Thru 06/2021 % of Budget $ Actuals to Budget Notes Local Sales Taxes $ 18,128,304 $ 21,832,073 120.4%$ 3,703,769 Over budget due to strong collections in most areas including retail and online State Shared Revenues 13,194,438 14,435,338 109.4%1,240,900 Over budget due to strong state shared sales tax collections and VLT revenues Charges for Services 2,239,675 1,991,889 88.9%(247,786)Under budget due to COVID-19 disruptions to parks & recreation and transit revenues Licenses & Permits 1,592,500 3,325,826 208.8%1,733,326 Over budget due to strong residential and commercial permitting activity Grant Revenue 5,865,969 13,570,416 231.3%7,565,293 Figure includes CARES and ARPA funding along with various other grant revenues All Other 2,329,500 1,733,197 74.4%(596,303) Includes other intergovernmental revenue, transfers, interest income, misc. revenue TOTAL GENERAL FUND REVENUES $ 43,350,386 $ 56,888,739 131.2%$ 13,538,353 Over budget by $13.5 million or 31.2% due to strong local sales tax revenue and federal aid revenues GENERAL FUND SALES TAXES - 100,000 200,000 300,000 400,000 500,000 600,000 700,000 800,000 Jul-18 Oct-18 Jan-19 Apr-19 Jul-19 Oct-19 Jan-20 Apr-20 Jul-20 Oct-20 Jan-21 Apr-21 Construction Utility Retail Hotel/Bed Restaurant & Bar All Other “Wayfair” ruling 3-month rolling average GENERAL FUND EXPENDITURES EXPENDITURE CATEGORY Budget Actuals Thru 06/2021 % of Budget $ Actuals to Budget Notes Personnel $ 28,976,810 $ 27,834,992 96.1%$ (1,141,818) Slightly under budget due to personnel vacancy savings Operations & Maintenance 11,451,081 9,995,731 87.3%(1,455,350) Below budget due to intentional savings in first half of fiscal year, in addition to some project carry-over into the next fiscal year Capital 1,558,000 1,620,671 104.0%62,671 Slightly over budget due to re-labeling several O&M projects and Capital as part of best practices Transfers Out 2,589,520 2,586,520 99.9%(3,000)On budget. Transfers are related to debt service payments and CIP Transfers. TOTAL GENERAL FUND EXPENDITURES $ 44,575,411 $ 42,037,914 94.3%$ (2,537,497) Under budget by $2.5 million or 5.7% due to O&M and personnel savings Year -End Surplus: $14.9M Budgeted Deficit/Use of Fund Balance = $(1.2M) Estimated Ending Fund Balance: $35.8M 85.1% of budgeted expenditures Exceeds Council 25% Policy by $25.3M GENERAL FUND $41.7M $39.9M $56.9M $42.0M$43.4M $44.6M $.0M $10.0M $20.0M $30.0M $40.0M $50.0M $60.0M Revenues Expenditures General Fund FY 20/21 Through June PY Actual CY Actual CY Budget HIGHWAY FUND REVENUES REVENUE SOURCE Budget Actuals Thru 06/2021 % of Budget $ Actuals to Budget Notes Licenses & Permits $ 25,000 $ 37,108 148.4%$ 12,108 Over budget due to increased permitting activity State Grants 210,000 16,588 7.9%(193,412) Budgeted reimbursements associated with La Cholla widening. No reimbursements received, as costs were incurred in prior FY State Shared Revenues 3,458,929 3,714,572 107.4%255,643 Over budget due to strong HURF revenues All Other 7,000 8,564 122.3%1,564 Includes interest income and other miscellaneous revenue TOTAL HIGHWAY FUND REVENUES $ 3,700,929 $ 3,776,832 102.1%$ 75,903 Over budget by $76,000 or 2.1% due to strong HURF revenue collections HIGHWAY FUND EXPENDITURES EXPENDITURE CATEGORY Budget Actuals Thru 06/2021 % of Budget $ Actuals to Budget Notes Personnel $ 1,387,651 $ 1,203,687 86.7%$ (183,964)Under budget due to personnel vacancy savings from La Cholla widening project Operations & Maintenance 642,950 599,777 93.3%(43,173) Slightly under budget due to savings in various line- items Capital 1,830,500 1,549,352 84.6%(281,148) Under budget due to CIP project timing and carry- over TOTAL HIGHWAY FUND EXPENDITURES $ 3,861,101 $ 3,352,816 86.8%$ (508,285) Under budget by $508,000 or 13.2% due to personnel and O&M savings and CIP project carry- over Year -End Surplus: $424,000 Budgeted Deficit/Use of Fund Balance: $(160,172) Estimated Ending Fund Balance: $1,242,978 HIGHWAY FUND $4.1M $4.1M $3.8M $3.4M $3.7M $3.9M $.0M $.5M $1.0M $1.5M $2.0M $2.5M $3.0M $3.5M $4.0M $4.5M $5.0M Revenues Expenditures Highway Fund FY 20/21 Through June PY Actual CY Actual CY Budget COMMUNITY CENTER FUND REVENUES REVENUE SOURCE Budget Actuals Thru 06/2021 % of Budget $ Actuals to Budget Notes Contracted Operating Revenues $ 3,504,548 $ 3,970,865 113.3%$ 466,317 Over budget due to golf and member related revenues Town Operating Revenues 955,600 512,957 53.7%(442,643) Below budget due to disruptions and prior closures caused by COVID-19 Other Revenues 2,638,462 3,098,436 117.4%459,974 Includes 1/2 cent sales tax revenues, HOA contributions, interest income and other misc. revenues TOTAL COMM. CENTER FUND REVENUES $ 7,098,610 $ 7,582,258 106.8%$ 483,648 Over budget by $484,000 or 6.8% due to strong golf related revenues and half-cent sales tax collections COMMUNITY CENTER FUND EXPENDITURES EXPENDITURE CATEGORY Budget Actuals Thru 06/2021 % of Budget $ Actuals to Budget Notes Contracted Operating Expenditures $ 4,495,828 $ 4,635,553 103.1%$ 139,725 Over budget due to costs associated with Pusch course Town Operating Expenditures 978,750 839,977 85.8%(138,773) Under budget due to personnel and O&M savings from closures caused by COVID-19 Capital Outlay 1,124,500 139,657 12.4%(984,843) Under budget due to roll-over of golf course irrigation project Transfers Out 278,302 158,302 56.9%(120,000) Under budget due to not completing previously scheduled transfer to General Fund TOTAL COMM. CENTER FUND EXPENDITURES $ 6,877,380 $ 5,773,489 83.9%$ (1,103,891) Under budget by $1.1 million or 16.1% due to CIP carry-over, transfers, and operating savings Year -End Surplus: $1.8M Budgeted Surplus/Addition to Fund Balance: $221,230 Estimated Ending Fund Balance: $2,671,587 COMMUNITY CENTER FUND $6.6M $6.2M $7.6M $5.8M $7.1M $6.9M $.0M $1.0M $2.0M $3.0M $4.0M $5.0M $6.0M $7.0M $8.0M Revenues Expenditures Community Center Fund FY 20/21 Through June PY Actual CY Actual CY Budget MONTHLY FINANCIAL UPDATE QUESTIONS? Town Council Meeting Regular Session September 22, 2021 $25M Parks & Recreation Revenue Bonds September 22, 2021 Process Followed and Timeline April 21, 2021 –Public hearing on broadening use of ½ cent transaction privilege tax beyond Community Center/Golf purposes May 5, 2021 –Town Council approves Ordinance No.(O)21-05, broadening use of revenue resulting from ½ cent transaction privilege tax June 16, 2021 –Town Council adopted FY21/22 budget, inclusive of $25 million parks & recreation bond issuance July 7, 2021 –Town Council identifies specific priority parks and recreation projects with associated amenities Town Council Approved Projects Community Center Exterior Improvements Naranja Park Amenities (at least 50% of bond proceeds) Multiuse Path Connections Community Center Exterior Improvements Community Center Exterior Improvements Conquistador Golf Course irrigation replacement Cañada Golf Course irrigation replacement Tennis court surface replacement Resurfacing/reconfiguring parking lot 2 multi-use fields Splash pad Pickleball courts Basketball courts Pump track At least 50% of bond proceeds Naranja Park Amenities Skate park New paved paths Ramadas Restrooms Associated infrastructure Multiuse Path Connections •La Cañada Dr. between Lambert and Naranja •Naranja Dr. between La Cañada and Park entrance •CDO wash to James D. Kriegh Park Multiuse Path Connections Why a bond issuance? Intergenerational equity Quicker disposition of projects Low cost of capital relative to inflation Historical 10-year Treasury Yields US Inflation (1.0) - 1.0 2.0 3.0 4.0 5.0 6.0 Jan '14 Mar '14 May '14 Jul '14 Sep '14 Nov '14 Jan '15 Mar '15 May '15 Jul '15 Sep '15 Nov '15 Jan '16 Mar '16 May '16 Jul '16 Sep '16 Nov '16 Jan '17 Mar '17 May '17 Jul '17 Sep '17 Nov '17 Jan '18 Mar '18 May '18 Jul '18 Sep '18 Nov '18 Jan '19 Mar '19 May '19 Jul '19 Sep '19 Nov '19 Jan '20 Mar '20 May '20 Jul '20 Sep '20 Nov '20 Jan '21 Mar '21 May '21 Jul '21 US Inflation Rates by Month (2014-Current) MONTHLY FINANCIAL UPDATE QUESTIONS? Town Council Meeting Regular Session September 22, 2021