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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?