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Home My WebLink AboutAGENDApacket__04-11-23_0401_472 NOTICE OF MEETING WORK SESSION - BUDGET WORKSHOP FOUNTAIN HILLS TOWN COUNCIL Mayor Ginny Dickey Vice Mayor Peggy McMahon Councilmember Sharron Grzybowksi Councilmember Hannah Toth Councilmember Gerry Friedel Councilmember Brenda J. Kalivianakis Councilmember Allen Skillicorn TIME:4:30 P.M. – WORK SESSION - BUDGET WORKSHOP WHEN:TUESDAY, APRIL 11, 2023 WHERE:FOUNTAIN HILLS COUNCIL CHAMBERS 16705 E. AVENUE OF THE FOUNTAINS, FOUNTAIN HILLS, AZ Councilmembers of the Town of Fountain Hills will attend either in person or by telephone conference call; a quorum of the Town’s various Commission, Committee or Board members may be in attendance at the Council meeting. Notice is hereby given that pursuant to A.R.S. §1-602.A.9, subject to certain specified statutory exceptions, parents have a right to consent before the State or any of its political subdivisions make a video or audio recording of a minor child. Meetings of the Town Council are audio and/or video recorded and, as a result, proceedings in which children are present may be subject to such recording. Parents, in order to exercise their rights may either file written consent with the Town Clerk to such recording, or take personal action to ensure that their child or children are not present when a recording may be made. If a child is present at the time a recording is made, the Town will assume that the rights afforded parents pursuant to A.R.S. §1-602.A.9 have been waived. AGENDA 1.CALL TO ORDER – Mayor Ginny Dickey 2.ROLL CALL – Mayor Dickey 3.REGULAR AGENDA A.PRESENTATION: Fiscal Year 2023-2024 Proposed Budget. 4.ADJOURNMENT 4.ADJOURNMENT CERTIFICATE OF POSTING OF NOTICE The undersigned hereby certifies that a copy of the foregoing notice was duly posted in accordance with the statement filed by the Town Council with the Town Clerk. Dated this ______ day of ____________________, 2023. _____________________________________________ Linda G. Mendenhall, MMC, Town Clerk The Town of Fountain Hills endeavors to make all public meetings accessible to persons with disabilities. Please call 480-816-5199 (voice) or 1-800-367-8939 (TDD) 48 hours prior to the meeting to request a reasonable accommodation to participate in the meeting or to obtain agenda information in large print format. Supporting documentation and staff reports furnished the Council with this agenda are available for review in the Clerk's Office. Town Council Work Session of April 11, 2023 2 of 2 ITEM 3. A. TOWN OF FOUNTAIN HILLS STAFF REPORT Meeting Date: 04/11/2023 Meeting Type: Town Council Budget Workshop Agenda Type: Regular Agenda Submitting Department: Administration Prepared by: Linda Mendenhall, Town Clerk Staff Contact Information: David Pock, Finance Director Request to Town Council Budget Workshop (Agenda Language): PRESENTATION: Fiscal Year 2023-2024 Proposed Budget. Staff Summary (Background): On April 11, 2023, a budget workshop will be held for the Town Council. At the workshop, staff will present an update on the town's estimated fiscal year-end fund balances and the Proposed FY 2023-24 Budget. In addition to the materials attached to this report, an online electronic version of the FY24 Proposed Budget is available at www.fountainhillsazlgov/budget. The workshop will be televised live on Channel 11, the town's website, and on the town's YouTube Channel. Attachments Presentation Form Review Inbox Reviewed By Date Town Attorney Linda Mendenhall 04/04/2023 10:30 AM Finance Director David Pock 04/06/2023 11:48 AM Town Attorney Aaron D. Arnson 04/06/2023 01:40 PM Interim Town Manager Rachael Goodwin 04/06/2023 01:48 PM Form Started By: Linda Mendenhall Started On: 04/03/2023 05:28 PM Final Approval Date: 04/06/2023 TO WN O F F O UNTAIN H ILLS WWW.FOUNTAINHILLSAZ.GOV FY24 Budget Workshop David Pock, Chief Financial Officer April 11, 2023 TO WN O F F O UNTAIN H ILLS WWW.FOUNTAINHILLSAZ.GOV FY23 Year-End Estimates WWW.FOUNTAINHILLSAZ.GOV Restricted Funds (Externally restricted by statute or entity) 6/30/2022 (actual) 6/30/2023 (estimated) Streets Fund $3,536,762 $574,779 Special Revenue Fund (Grants)(8,441)0 Debt Service Funds (GO, MPC, EMCFD)180,120 183,096 Cottonwood Maintenance District Fund 13,358 11,175 Fire & EMS Development Fee Fund 388,545 415,176 Streets Development Fee Fund 340,478 574,779 Parks Development Fee Fund 1,216,141 1,443,633 Total Restricted Fund Balance $5,666,963 $3,202,638 WWW.FOUNTAINHILLSAZ.GOV Committed Funds (Imposed by Council action) 6/30/2022 (actual) 6/30/2023 (estimated) Stabilization Fund (Rainy Day)$3,497,244 $3,980,307 Capital Projects Fund 4,068,310 6,744,413 Downtown Strategy Fund 518,590 587,302 Economic Development Fund 317,312 446,718 Tourism Fund 206,181 187,082 Public Art Fund 68,641 91,037 Court Enhancement Fund 402,374 424,719 Total Committed Fund Balance $9,078,652 $12,461,578 WWW.FOUNTAINHILLSAZ.GOV Assigned Funds (Imposed by Town policy) 6/30/2022 (actual) 6/30/2023 (estimated) Environmental Fund $266,339 $288,977 Facilities Reserve Fund 5,925,920*6,825,994* Technology Replacement Fund 118,728 158,203 Vehicle Replacement Fund 1,627,503 1,979,268 Total Assigned Fund Balance $7,938,490 $9,252,442 6/30/2022 (actual) 6/30/2023 (estimated) Total Unassigned Fund Balance $9,587,896 $5,266,833 Unassigned Funds (Budgeted Operational Expenditures) * Includes $4.2M General Fund savings as a result of ARPA WWW.FOUNTAINHILLSAZ.GOV Summary All Funds 6/30/2022 (actual) 6/30/2023 (estimated) Restricted $5,666,963 $3,202,638 Committed 9,078,652 12,461,578 Assigned 7,938,490*9,252,442* Unassigned 9,587,896 5,266,833 Total Fund Balance $32,272,001 $30,183,491 Stability Metrics As of 6/30/2022 As of 6/30/2023 5-Year General Fund Annual Average Revenues $17,977,995 $19,901,535 Unassigned Balance As % of Average Revenues 53.3%26.5% Unassigned Balance As # of Months of Average Revenue 6.4 3.2 * Includes $4.2M General Fund savings as a result of ARPA TO WN O F F O UNTAIN H ILLS WWW.FOUNTAINHILLSAZ.GOV FY24 Projections WWW.FOUNTAINHILLSAZ.GOV •Proposed Budget book is available on the Town’s website •Budget authority is not the same as fund balance or contract authority •Subject to Financial Policies •Fund Balance = Cash in the bank •Budget Authority = Permission to use cash •Subject to Procurement Policies •Contract Authority = Terms and Conditions agreed to by the Town and Vendor after procurement criteria met (IFB, RFP, Cooperative Purchasing, etc.) Overall Budget Considerations WWW.FOUNTAINHILLSAZ.GOV •FY24 Expenditure Limitation is $34,364,380 •Some exclusions are allowed (i.e., grants, debt, HURF) •If revenues are less than expected, expenditures must also be reduced to maintain fund balance (cash) •Tentative Budget to be considered on May 2nd and will set the maximum budgeted expenditure amount for FY24 •Final Budget to be adopted on June 6th may reduce budgeted expenditures approved in the Tentative Budget, but it may not increase them Overall Budget Considerations WWW.FOUNTAINHILLSAZ.GOV •Staff remains conservative when estimating revenues •Revenues from prior years are used to develop trends and forecasts using a 98% confidence level •Revenues are not included for expected or incomplete construction projects (i.e. TPT for Park Place) •Preliminary State Shared Revenue estimates were received from the League in March, which are based on ADOT and ADOR projections for FY24 Revenue Assumptions WWW.FOUNTAINHILLSAZ.GOV •Contingency o Included in General Government o Provides budget authority for unforeseen expenditures only if expected revenues are received o $3.5M included for FY23-24 •Expenditures excluding Contingency o $20.4M for FY22-23 o $21.8M for FY23-24 •Recommended budget supplements are included Expenditure Considerations WWW.FOUNTAINHILLSAZ.GOV All Fund Revenues Total All Funds = $36.8M WWW.FOUNTAINHILLSAZ.GOV All Fund Expenditures Total All Funds = $47.5M TO WN O F F O UNTAIN H ILLS WWW.FOUNTAINHILLSAZ.GOV Supplements WWW.FOUNTAINHILLSAZ.GOV Non -Personnel On -Going Supplements Request Title Department Revenue Source FY24 Costs Manager Recommendation Offset? Ongoing Food & Beverage Increase Due to Fire Department Admin General Fund $1,200.00 $1,200.00 Ongoing Workers Compensation Deductibles Anticipated Due to Fire Department Admin General Fund $4,000.00 $4,000.00 Ongoing Payroll System, Drug, and Background Screening Fees for Fire Department Admin General Fund $9,448.00 $9,448.00 Evening with Santa, Breakfast with Santa and Sensitive Santa Comm Svcs Offsets $5,000.00 $5,000.00 (5,000.00) Supplement Parks Operating Supplies Comm Svcs General Fund $14,471.00 Supplement Parks Electrical Repairs and Maintenance Comm Svcs General Fund $10,050.00 $10,050.00 Supplement Parks Plumbing Comm Svcs General Fund $4,050.00 $4,050.00 Supplement Avenue Linear Park Paver Repairs Comm Svcs General Fund $3,000.00 $3,000.00 Supplement Parks Landscape Contract Comm Svcs General Fund $20,642.00 Supplement Park Irrigation Parts for Repairs Comm Svcs General Fund $7,700.00 Supplement Parks Cleaning and Janitorial supplies Comm Svcs General Fund $12,482.00 $12,482.00 Bank Merchant Processing Fees Comm Svcs General Fund $12,000.00 $12,000.00 Volunteer Reception Cost Increase Adjustment Comm Svcs Offsets $4,000.00 $4,000.00 (4,000.00) WWW.FOUNTAINHILLSAZ.GOV Non -Personnel On -Going Supplements Request Title Department Revenue Source FY24 Costs Manager Recommendation Offset? Community Center Holiday Event Supplement Comm Svcs General Fund & Offsets $4,250.00 $4,250.00 (2,000.00) Court Conferences Muni Court General Fund $5,000.00 $5,000.00 Facilities Operations Base Budget Increase Public Works General Fund $20,000.00 $10,000.00 Anti-Viral Cleaning/Safety Supplies Public Works General Fund $3,500.00 $1,500.00 Facilities Operations Staff Training Public Works General Fund $3,000.00 $1,500.00 Town Campus Building Roof Spot Repairs Public Works General Fund $25,000.00 $25,000.00 Roof Drain Repairs Public Works General Fund $25,000.00 $25,000.00 Special Requested Janitorial Services Public Works General Fund $35,000.00 $35,000.00 Driver for Teen Trips Comm Svcs General Fund $1,890.00 $1,890.00 Music Fest SE 220 Comm Svcs Offsets $5,000.00 $5,000.00 (5,000.00) Irish Fest SE210 Comm Svcs General Fund & Offsets $6,200.00 $6,200.00 (5,000.00) Fourth at the Fountain SE 200 Comm Svcs General Fund & Offsets $21,000.00 $21,000.00 (5,000.00) Spooky Blast SE 180 Comm Svcs General Fund & Offsets $10,200.00 $10,200.00 (5,000.00) Concerts on the Avenue Fall and Spring Comm Svcs General Fund $2,000.00 $2,000.00 Eggstravaganza SE 130 Comm Svcs General Fund $4,000.00 $4,000.00 Back to School Bash SE 110 Comm Svcs General Fund $1,000.00 $1,000.00 WWW.FOUNTAINHILLSAZ.GOV Non -Personnel On -Going Supplements Request Title Department Revenue Source FY24 Costs Manager Recommendation Offset? Turkey Trot SE 100 Comm Svcs Offsets $23,460.00 $23,460.00 (23,460.00) Graphic Designer-Digital Media Consultant Admin General Fund $10,000.00 $10,000.00 Golden Eagle Park- Irrigation Reservoir Lease Comm Svcs General Fund $6,000.00 $3,000.00 FD Start Up Fire & EMS General Fund $312,240.00 $312,240.00 2023 Bond Election Town Clerk General Fund $25,000.00 $25,000.00 Downtown Advertising Econ Dev Downtown Strat. Fund $5,000.00 $5,000.00 Downtown Placemaking Econ Dev Downtown Strat. Fund $50,000.00 $25,000.00 Econ Dev Marketing Econ Dev Economic Dev $15,000.00 $15,000.00 Tourism Marketing Enhancements Econ Dev Tourism $17,000.00 $17,000.00 Visitor Analysis Software Econ Dev Tourism $16,000.00 $16,000.00 Fountain of Light Insurance Comm Svcs Public Art $2,112.00 $2,112.00 $761,895.00 $677,582.00 (54,460.00) WWW.FOUNTAINHILLSAZ.GOV Non -Personnel One -Time Supplements Request Title Department Revenue Source FY24 Costs Manager Recommended One-Time Fire Department Drug and Background Screenings Admin General Fund $1,400.00 $1,400.00 Community Center Dance Floor Comm Svcs General Fund $24,000.00 $24,000.00 Supplement Fountain Park Amphitheater Erosion/Landscape Repairs Comm Svcs General Fund $30,000.00 $30,000.00 Supplement Adero Trailhead Entrance Comm Svcs General Fund $15,000.00 $15,000.00 Civil Engineering Inspector Traffic Signal Certification Public Works General Fund $2,000.00 $2,000.00 Security Camera in Safe Room Muni Court Court Enhancement $3,000.00 $3,000.00 Courtroom Benches- Refinishing Muni Court Court Enhancement $1,600.00 $1,600.00 $77,000.00 $77,000.00 WWW.FOUNTAINHILLSAZ.GOV Personnel Supplements Request Title Department FY24 Costs Manager Recommended Human Resources Analyst Admin $102,575 $102,575 Volunteer Coordinator Reclassification Comm Svcs $9,715 $9,715 Reclassification to Park Supervisor Comm Svcs $11,261 $11,261 Information Technology Support Specialist to Full-Time Admin $38,591 $38,591 Court Clerk to Senior Clerk Muni Court $6,207 $6,207 Recreation Assistant Comm Svcs $22,429 $22,429 FD Start Up Personnel Fire & EMS $1,898,045 $1,898,045 $2,088,822 $2,088,822 WWW.FOUNTAINHILLSAZ.GOV Cost of Living Adjustment Phoenix / Scottsdale Consumer Price Index (CPI)9.5% Employment Cost Index (ECI) for State and Local Government Workers (Previous Year) 4.7% State of Arizona Minimum Wage COLA Increase 8.2% Social Security COLA Increase 8.7% Previous Year Average COLA Increase for Valley Cities & Towns 5% Estimated Average COLA Increase for Valley Cities & Towns (FY 2024) 6.9% Average of Above COLA Data 7.16% Summary of COLA Data 1% = $56,307 in FY24 payroll costs TO WN O F F O UNTAIN H ILLS WWW.FOUNTAINHILLSAZ.GOV General Fund WWW.FOUNTAINHILLSAZ.GOV General Fund FY24 Balanced Budget of $25.2M WWW.FOUNTAINHILLSAZ.GOV General Fund Revenues WWW.FOUNTAINHILLSAZ.GOV General Fund Expenditures -Function WWW.FOUNTAINHILLSAZ.GOV General Fund Expenditures –Expense Type WWW.FOUNTAINHILLSAZ.GOV General Fund Expenditures –Town Council WWW.FOUNTAINHILLSAZ.GOV General Fund Expenditures –Administration WWW.FOUNTAINHILLSAZ.GOV General Fund Expenditures –General Government WWW.FOUNTAINHILLSAZ.GOV General Fund Expenditures –Municipal Court WWW.FOUNTAINHILLSAZ.GOV General Fund Expenditures –Public Works WWW.FOUNTAINHILLSAZ.GOV General Fund Expenditures –Development Services WWW.FOUNTAINHILLSAZ.GOV General Fund Expenditures –Community Services WWW.FOUNTAINHILLSAZ.GOV General Fund Expenditures –Fire WWW.FOUNTAINHILLSAZ.GOV General Fund Expenditures –Law Enforcement TO WN O F F O UNTAIN H ILLS WWW.FOUNTAINHILLSAZ.GOV Streets Fund WWW.FOUNTAINHILLSAZ.GOV Streets Fund WWW.FOUNTAINHILLSAZ.GOV Streets Fund Revenues WWW.FOUNTAINHILLSAZ.GOV Streets Fund Expenditures TO WN O F F O UNTAIN H ILLS WWW.FOUNTAINHILLSAZ.GOV Capital Projects WWW.FOUNTAINHILLSAZ.GOV Capital Projects Fund FY24 Capital Project Listing WWW.FOUNTAINHILLSAZ.GOV Capital Projects Fund Cost Total FY24 Capital Projects $10,953,731 Funding Sources: FY23 Capital Projects Fund Balance 6,744,400* FY23 Excess General Fund Revenues Over Expenditures 0* FY24 Construction Transaction Privilege Tax 685,000* Grants 4,603,000 Parks Development Fee Fund & Downtown Fund 1,235,000 Total Available for Capital Projects $13,267,400 TO WN O F F O UNTAIN H ILLS WWW.FOUNTAINHILLSAZ.GOV Environmental Fund WWW.FOUNTAINHILLSAZ.GOV Environmental Fund WWW.FOUNTAINHILLSAZ.GOV Environmental Fund Revenues WWW.FOUNTAINHILLSAZ.GOV Environmental Fund Expenditures TO WN O F F O UNTAIN H ILLS WWW.FOUNTAINHILLSAZ.GOV Economic Development WWW.FOUNTAINHILLSAZ.GOV Economic Development Fund WWW.FOUNTAINHILLSAZ.GOV Economic Development Fund Revenues WWW.FOUNTAINHILLSAZ.GOV Economic Development Fund Expenditures TO WN O F F O UNTAIN H ILLS WWW.FOUNTAINHILLSAZ.GOV Tourism WWW.FOUNTAINHILLSAZ.GOV Tourism Fund WWW.FOUNTAINHILLSAZ.GOV Tourism Fund Revenues WWW.FOUNTAINHILLSAZ.GOV Tourism Fund Expenditures TO WN O F F O UNTAIN H ILLS WWW.FOUNTAINHILLSAZ.GOV Downtown Strategy Fund WWW.FOUNTAINHILLSAZ.GOV Downtown Strategy Fund WWW.FOUNTAINHILLSAZ.GOV Downtown Strategy Fund Revenues WWW.FOUNTAINHILLSAZ.GOV Downtown Strategy Fund Expenditures TO WN O F F O UNTAIN H ILLS WWW.FOUNTAINHILLSAZ.GOV Miscellaneous Funds WWW.FOUNTAINHILLSAZ.GOV Public Art Fund Court Enhancement Fund Cottonwoods Maintenance Dist. Fund Development Fee Funds Internal Service Funds Debt Service Funds TO WN O F F O UNTAIN H ILLS WWW.FOUNTAINHILLSAZ.GOV Questions