HomeMy WebLinkAboutAGENDApacket__04-09-24_0502_600
NOTICE OF MEETING
WORK SESSION - BUDGET WORKSHOP
FOUNTAIN HILLS TOWN COUNCIL
Mayor Ginny Dickey
Vice Mayor Brenda J. Kalivianakis
Councilmember Peggy McMahon
Councilmember Hannah Toth
Councilmember Gerry Friedel
Councilmember Sharron Grzybowski
Councilmember Allen Skillicorn
TIME:4:30 P.M. – WORK SESSION - BUDGET WORKSHOP
WHEN:TUESDAY, APRIL 9, 2024
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 2024-2025 Proposed Budget.
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 ____________________, 2024.
_____________________________________________
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.
On the day of the Council Meeting, the Council Chamber doors open at 4:15 p.m. for public seating.
Town Council Work Session of April 9, 2024 2 of 2
ITEM 3. A.
TOWN OF FOUNTAIN HILLS
STAFF REPORT
Meeting Date: 04/09/2024 Meeting Type: Town Council Work Session - 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 Work Session - Budget Workshop (Agenda Language): PRESENTATION: Fiscal Year
2024-2025 Proposed Budget.
Staff Summary (Background):
On April 09, 2024, 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 2024-25 budget. In addition
to the materials attached to this report, an online electronic version of the FY25 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 04/02/2024 08:04 AM
Finance Director David Pock 04/04/2024 02:50 PM
Town Attorney Linda Mendenhall 04/04/2024 02:52 PM
Town Manager Linda Mendenhall 04/04/2024 03:02 PM
Form Started By: Linda Mendenhall Started On: 04/02/2024 08:01 AM
Final Approval Date: 04/04/2024
FY25 Budget Workshop
David Pock, Chief Financial OfficerPaul Soldinger, Chief Financial Officer
April 9, 2024
FY24 Year-End Estimates
Restricted Funds
(Externally restricted by statute or entity)
6/30/2023
(actual)
6/30/2024
(estimated)
Streets Fund $6,922,858 $7,966,000
Special Revenue Fund (Grants)103,147 103,000
Debt Service Funds (GO, MPC, EMCFD)185,846 177,000
Cottonwood Maintenance District Fund 15,339 14,000
Fire & EMS Development Fee Fund 419,221 186,000
Streets Development Fee Fund 546,764 694,000
Parks Development Fee Fund 1,164,139 1,347,000
Total Restricted Fund Balance $9,357,314 $10,487,000
Committed Funds
(Imposed by Council action)
6/30/2023
(actual)
6/30/2024
(estimated)
Stabilization Fund (Rainy Day)$4,334,367 $4,467,000
Capital Projects Fund 5,691,999 6,913,000
Downtown Strategy Fund 625,922 630,000
Economic Development Fund 592,942 808,000
Tourism Fund 134,212 122,000
Public Art Fund 64,583 81,000
Court Enhancement Fund 415,678 428,000
Total Committed Fund Balance $11,859,703 $13,449,000
Assigned Funds
(Imposed by Town policy)
6/30/2023
(actual)
6/30/2024
(estimated)
Environmental Fund $394,618 $471,000
Facilities Reserve Fund 6,784,056*5,272,000*
Technology Replacement Fund 160,181 259,000
Vehicle Replacement Fund 2,049,593 2,278,000
Total Assigned Fund Balance $9,388,448 $8,280,000
Unassigned Funds
(Budgeted Operational Expenditures)
6/30/2023
(actual)
6/30/2024
(estimated)
Total Unassigned Fund Balance $11,617,625 $11,278,000
*$4 million
assigned for
future lake liner
Summary All Funds
6/30/2023
(actual)
6/30/2024
(estimated)
Restricted $9,357,314 $10,487,000
Committed 11,859,703 13,449,000
Assigned 9,388,448*8,280,000
Unassigned 11,320,029 11,278,000
Total Fund Balance $41,925,494 $43,494,000
Stability Metrics
As of 6/30/2023 As of 6/30/2024
5-Year General Fund Annual Average Revenues $19,901,535 $22,333,910
Unassigned Balance As % of Average Revenues 56.9%50.5%
Unassigned Balance As # of Months of Average Revenue 6.8 6.1
* Includes $4.2M General Fund
savings as a result of ARPA
FY25 Projections
Budget Process
•Start at base budgets from prior year
•Supplements submitted by departments
•Discussed during departmental meetings
•Internal needs assessment completed
•Town Manager recommendations included in proposed budget to maintain core services and programs
•Input from Council incorporated into Tentative Budget in May 2024
•Final budget adoption in June 2024
Overall Budget Considerations
•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
•FY25 Expenditure Limitation is $35,588,003
•Some exclusions are allowed (i.e., grants, debt, HURF)
•Town has no outstanding bond debt
•If revenues are less than expected, expenditures must also be reduced to maintain fund balance (cash)
Revenue Assumptions
•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 Four Peaks)
•Preliminary State Shared Revenue estimates were received from the League in March, which are based on ADOT and ADOR projections for FY25
Expenditure Considerations
•Contingency
•Included in General Government
•Provides budget authority for unforeseen expenditures only if
expected revenues are received
•$2.4M included for FY24-25
•General Fund Expenditures excluding Contingency
•$23.1M for FY23-24
•$23.4M for FY24-25
•Recommended budget supplements are included
All Fund Revenues
Total All Funds = $36.6 million
All Fund Expenditures
Total All Funds = $47.1 million
Supplements
Supplements Summary
Non-Personnel On-Going Supplements (GF)
Number Request Title Department
Revenue
Source FY25 Costs
Manager
Recommenda
tion Offsets
BA-100-01 Splash Pad Sealant Comm Svcs General fund $15,000 $15,000
BA-100-02 3CMA National Membership Admin General fund 500 500
BA-100-06 Constituent Communications Admin General fund 1,300 1,300
BA-100-08 Annual Security Camera Maint.Admin General fund 50,000 50,000
BA-100-13 Turkey Trot Portable Restrooms Comm Svcs General fund 1,500 1,500 (1,500)
BA-100-14 Turkey Trot T-Shirts Comm Svcs General fund 9,550 9,550 (9,550)
BA-100-15 MADD Projected Costs Comm Svcs General fund 1,400 1,400
BA-100-17 Transcription for Commissions Dev Svcs General fund 1,500 1,500
BA-100-18 Code Publishing Admin General fund 4,000 4,000
BA-100-19 Transcription Service for Council Admin General fund 13,000 9,000
BA-100-20 Add'l Citizenserve User Subscriptions Dev Svcs General fund 7,200 7,200
BA-100-21 Sophos AntiVirus XDR Upgrade Admin General fund 5,000 5,000
BA-100-22 Microsoft Office 365 License Upgrades Admin General fund 15,000 15,000
$124,950 $120,950 (11,050)$
Non-Personnel On-Going Supplements (Econ Dev)
Number Request Title Department
Revenue
Source FY25 Costs
Manager
Recommendation Offsets
BA-300-02 Downtown Advertising Admin Downtown 5,000 5,000
BA-310-02 ED- Special Events/Contractual Services Admin Econ Dev 55,000 55,000
BA-310-03 ED - Marketing Admin Econ Dev 15,000 15,000
BA-310-04 ED - Professional Fees Admin Econ Dev 10,000 10,000
BA-310-05 ED - Printing Admin Econ Dev 9,000 9,000
BA-320-01 Tourism - Professional Services Admin Tourism 50,000 50,000
$144,000 $144,000 -$
Non-Personnel On-Going Supplements (Court)
Number Request Title Department
Revenue
Source FY25 Costs
Manager
Recommendation
BA-420-01 Video Jail Court Appearance Muni Court Court Enh 2,500 2,500
$2,500 $2,500
Personnel Supplements
Number Request Title Department
Revenue
Source FY25 Costs
Manager
Recommendation Offsets
BAP-100-04 Recreation Assistant Community Services General 25,700 25,700 (16,000)
BAP-100-09 Senior Building Inspector Development Services General 121,920 121,920 (110,000)
147,620$ 147,620$ (126,000)$
Non-Personnel One-Time Supplements
Number Request Title Department
Revenue
Source FY25 Costs
Manager
Recommendation
100-03 New Vehicle for Building Safety Public Works General fund 40,000 40,000
100-07 Golden Eagle Park Painting Comm Svcs General fund 10,000 10,000
100-08 NRPA Directors School Comm Svcs General fund 4,000 4,000
100-10 Election Services Admin General fund 54,900 54,900
$108,900 $108,900
Staff Pay Adjustment Data
1% = $103,741* in FY25 payroll costs
*Includes Fire Department
General Fund
General Fund
General Fund Revenues
General Fund Expenditures - Function
General Fund Expenditures – Expense Type
General Fund Expenditures – Town Council
General Fund Expenditures – Administration
General Fund Expenditures – General Government
General Fund Expenditures – Municipal Court
General Fund Expenditures – Public Works
General Fund Expenditures – Development Services
General Fund Expenditures – Community Services
General Fund Expenditures – Fire
General Fund Expenditures – Law Enforcement
Streets Fund
Streets Fund
Streets Fund Revenues
100% of VLT (FY24 was 70%)
Streets Fund Expenditures
Capital Projects Fund
Capital Projects Fund
Cost
Total FY25 Proposed Capital Projects $10,300,000
Funding Sources:
FY24 projected ending Capital Projects Fund Balance 6,900,000*
FY24 Excess General Fund Revenues Over Expenditures 4,700,000*
FY25 Construction Transaction Privilege Tax 905,000*
Grants 2,652,500
Parks Devel Fee Fund & Downtown Fund transfers 1,050,000
Total Available for Capital Projects $16,207,500
Capital Projects Fund
*Estimated
Green Light Projects in Community Services
Capital Projects FY25
Four Peaks Park Pickleball Courts $ 180,000
Golden Eagle Park Playground Replacement 150,000
P3054 Sidewalk Replacement (Multi Year)100,000
Avenue Linear Park Improvements (Multi Year)235,000
Total FY25 Green Light Projects – Community Services $665,000
Alternate Funded Projects FY25
Panorama Park (Development Fees)250,000
Pleasantville Park (Development Fees)800,000
Total FY25 Green Light Projects – Alternative Funded Projects $1,050,000
Green Light Projects in Public Works
Capital Projects FY 25
Sidewalk Infill & Design (Multi-Year)$ 300,000
Sidewalk Gap Infill, Palisades & Saguaro (Owner’s Allowance)200,000
Town Wide Guardrail Replacement (Multi-Year)85,000
Bridge Repair (Multi-Year)75,000
Palisades Boulevard & La Montana Drive Intersection Improvements - Design 150,000
Pedestrian Marked Crosswalks (Multi-Year)150,000
Golden Eagle Impoundment Improvements 2,500,000
Town Wide Storm Water Infrastructure Rehabilitation (Multi-Year)150,000
Total FY25 Green Light Projects – Public Works $3,610,000
Total Green Light Projects = $5.325 million
Yellow Light Projects
Capital Projects – Public Works FY 25
Community Center Renovations Phase III 750,000
Total FY25 Yellow Light Projects $750,000
Alternate Funded Projects – Community Services FY25
Public Restroom Facility on the Avenue of the Fountains (Downtown Fund, Multi-Year)475,000
Total FY25 Community Services CIP – Alternative Funded Projects $475,000
Yellow Light Projects – Grant Funded
Grant Funded Projects
FY 25
Initial Town
Expenditure
Grant
Reimbursement
Town Final
Expenditure after Reimbursement
Shea Boulevard Widening – Palisades to FHBLVD (Prop 400)$ 2,500,000 $ 1,750,000 $ 750,000
Shea Boulevard Widening – FHBLVD to Technology Dr (Prop 479)700,000 490,000 210,000
Courtside Villas Storm Water Improvements (SPAP)150,000 112,500 37,500
Low-Flow Roadway Drainage Crossing Improvement Program (SPAP)200,000 150,000 50,000
Fountain Hills Boulevard/Legend Wash Crossing (SPAP, Multi-Year)200,000 150,000 50,000
Total Public Works Grant Funded FY25 Projects $ 3,750,000 $ 2,652,500 $ 1,097,500
Total Yellow Light Projects = $4.975 million
Wayfinding Signs
•Council directed staff to begin competitive bidding process
•Staff will review budgetary limits for potential inclusion in Tentative Budget
Environmental Fund
Environmental Fund
Environmental Fund Revenues
Environmental Fund Expenditures
Other Funds
Court Enhancement Fund
Cottonwoods Maintenance Dist. Fund
Public Art Fund
Internal Service Funds *
Development Fee Funds
Debt Service Funds
Eagle Mountain Debt Service Fund
*$0 budgeted in FY25 for 3 required vehicle
replacements deferred in FY24
Economic Development Fund
Downtown Strategy Fund
Tourism Fund
Council questions?