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Home My WebLink AboutAGENDApacket__12-03-24_1110_635 NOTICE OF MEETING - AMENDED REGULAR MEETING FOUNTAIN HILLS TOWN COUNCIL Mayor Ginny Dickey Vice Mayor Councilmember Brenda J. Kalivianakis Councilmember Peggy McMahon Councilmember Vice Mayor Hannah Toth Councilmember Gerry Friedel VACANT Councilmember Allen Skillicorn TIME:5:30 P.M. – REGULAR MEETING WHEN:TUESDAY, DECEMBER 3, 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 a 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. REQUEST TO COMMENT The public is welcome to participate in Council meetings. TO SPEAK TO AN AGENDA ITEM, please complete a Request to Comment card, located in the back of the Council Chambers, and hand it to the Town Clerk prior to discussion of that item, if possible. Include the agenda item on which you wish to comment. Speakers will be allowed three contiguous minutes to address the Council. Verbal comments should be directed through the Presiding Officer and not to individual Councilmembers. TO COMMENT ON AN AGENDA ITEM IN WRITING ONLY, please complete a Request to Comment card, indicating it is a written comment, and check the box on whether you are FOR or AGAINST and agenda item, and hand it to the Town Clerk prior to discussion, if possible. TO COMMENT IN WRITING ONLINE: Please feel free to provide your comments by visiting https://www.fountainhillsaz.gov/publiccomment and SUBMIT a Public Comment Card by 3:00 PM on the day of the meeting . These comments will be shared with the Town Council. NOTICE OF OPTION TO RECESS INTO EXECUTIVE SESSION Pursuant to A.R.S. §38-431.02, notice is hereby given to the members of the Town Council, and to the general public, that at this meeting, the Town Council may vote to go into executive session, which will not be open to the public, for legal advice and discussion with the Town's attorneys for legal advice on any item listed on the following agenda, pursuant to A.R.S. §38-431.03(A)(3). 1.CALL TO ORDER AND PLEDGE OF ALLEGIANCE – Mayor Dickey 2.INVOCATION - Worship Leader Dee Pavia, Christ's Church of Fountain Hills 3.ROLL CALL – Mayor Dickey 4.RECOGNITION OF THE OUTGOING MAYOR A.Comments from Mayor Dickey B.Comments from the Current Councilmembers C.Comments from the public 5.SWEARING-IN CEREMONY A.Swearing-in of the Incoming Mayor and Councilmember by the Town of Fountain Hills Municipal Court Judge Robert Melton 6.RECESS - Twenty Minutes 7.ROLL CALL - Mayor Friedel 8.STATEMENT OF PARTICIPATION 9.COMMENTS FROM THE INCOMING COUNCILMEMBERS 10.PRESENTATIONS A.PRESENTATION: Update on the Maricopa County Sheriff's Office by Captain Larry Kratzer. B.PRESENTATION: Fountain Park Lake Liner. 11.CALL TO THE PUBLIC Pursuant to A.R.S. §38-431.01(H), public comment is permitted (not required) on matters NOT listed on the agenda. Any such comment (i) must be within the jurisdiction of the Council, and (ii) is subject to reasonable time, place, and manner restrictions. The Council will not discuss or take legal action on matters raised during Call to the Public unless the matters are properly noticed for discussion and legal action. At the conclusion of the Call to the Public, individual councilmembers may (i) respond to criticism, (ii) ask staff to review a matter, or (iii) ask that the matter be placed on a future Council agenda. 12.CONSENT AGENDA ITEMS All items listed on the Consent Agenda are considered to be routine, noncontroversial matters and will be enacted by one motion of the Council. All motions and subsequent approvals of consent items will include all recommended staff stipulations unless otherwise stated. There will be no separate discussion of these items unless a Town Council Regular Meeting of December 3, 2024 2 councilmember or member of the public so requests. If a councilmember or member of the public wishes to discuss an item on the Consent Agenda, he/she may request so prior to the motion to accept the Consent Agenda or with notification to the Town Manager or Mayor prior to the date of the meeting for which the item was scheduled. The items will be removed from the Consent Agenda and considered in its normal sequence on the agenda. 13.REGULAR AGENDA A.CONSIDERATION AND POSSIBLE ACTION: Review FY2024 Fund Balances with Recommended Transfer and Q1 FY2025 Revenue Update 14.COUNCIL DISCUSSION/DIRECTION to the TOWN MANAGER The Council may (1) request the Town Manager to follow-up on matters presented at that meeting; and/or (2) a consensus of the Council may request the Town Manager to research a matter and report back to the Council. 15.FUTURE AGENDA ITEMS 16.ADJOURNMENT Dated this ______ day of ____________________, 2024. _____________________________________________ Kandace French Contreras, 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 reasonable accommodation to participate in the meeting or to obtain agenda information in large print format. Supporting documentation and staff reports furnished to 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 5:15 p.m. for public seating. Town Council Regular Meeting of December 3, 2024 3 ITEM 10. A. TOWN OF FOUNTAIN HILLS STAFF REPORT Meeting Date: 12/03/2024 Meeting Type: Town Council Regular Meeting Agenda Type: Presentations Submitting Department: Administration Prepared by: Kandace French Contreras, Town Clerk Request to Town Council Regular Meeting (Agenda Language): PRESENTATION: Update on the Maricopa County Sheriff's Office by Captain Larry Kratzer. Staff Summary (Background) Related Ordinance, Policy or Guiding Principle Risk Analysis Recommendation(s) by Board(s) or Commission(s) Staff Recommendation(s) SUGGESTED MOTION Presentation only. No action required. Form Review Form Started By: Kandace French Contreras Started On: 11/26/2024 11:18 AM Final Approval Date: 11/26/2024 ITEM 10. B. TOWN OF FOUNTAIN HILLS STAFF REPORT Meeting Date: 12/03/2024 Meeting Type: Town Council Regular Meeting Agenda Type: Presentations Submitting Department: Administration Prepared by: Angela Padgett-Espiritu, Town Clerk Staff Contact Information: Request to Town Council Regular Meeting (Agenda Language): PRESENTATION: Fountain Park Lake Liner. Staff Summary (Background) In April 2020, the Town Council approved a contract with Black and Veatch Engineering to conduct a comprehensive assessment of the fountain, lake, and related systems at Fountain Park. With the fountain reaching its 50th anniversary, this analysis aimed to evaluate the condition of the facilities and identify any potential repair or replacement needs for this community landmark. Part of the study included testing the integrity of the lake liner to ensure it was functioning properly and not leaking. At that time, the assessment found no issues, though Black and Veatch recommended repeating the evaporation test every 4–5 years as a precaution. In September of this year, Black and Veatch conducted the evaporation test again. This process involves shutting off all water to the lake to prevent refilling, turning off the irrigation system, and halting the fountain for the duration of the test. Over a 5-day period, the team measured the lake's water level and compared it to a separate water pool to detect any differences. The results this year showed no significant variations, indicating that the lake liner is currently intact with no signs of leakage. We will continue to monitor the liner's condition by conducting the same test in another 4–5 years. Attachments Fountain Lake Liner Test Memo Form Review Form Started By: Angela Padgett-Espiritu Started On: 11/13/2024 10:34 AM Final Approval Date: 11/13/2024 Black & Veatch 2231 E Camelback Road, Suite 300, Phoenix, AZ 85016 P +1 602-381-4400 E baumgardnera@bv.com 11/7/2024 Town of Fountain Hills Fountain Hills Lake Liner Testing 16705 E Avenue of Fountains B&V PN: 420868 Fountain Hills, AZ, 85268 Attention: Brandon Putman Subject: Fountain Hills Lake Liner Testing An evaporation test was performed from September 23 to September 28 to evaluate leakage from the Fountain Hills Lake liner. By measuring the evaporation rate from the lake and comparing this with a controlled evaporation measurement it can be determined if the lake is losing more water than would be solely due to evaporative losses. If the lake level is observed to decrease more than the level measured in the controlled test, it could suggest a liner leak. The lake evaporation test was performed when the inflows to and outflows from the lake could be eliminated. Irrigation of the Fountain Park turf was suspended, and water delivery to the lake by the Fountain Hills Sanitary District (FHSD) was stopped for the duration of the test. Additionally, operation of the lake fountain was suspended during the test. No rain was recorded during the duration of the test. Therefore, only the losses from lake surface evaporation and potential liner leakage would remain. A standardized Class A evaporation pan with a diameter of 47.5 inches was temporarily installed near the Fountain Lake pump house. A temporary lake level gauge was installed at the pump inlet bay to measure the lake level. At approximately the same time each morning, measurements were recorded for the evaporation pan loss and the lake level for the six-day duration of the test. Although lake level data from FHSD was available, the accuracy of the data and the measurement device was unknown. Therefore, only physical observations made on the temporary level gauge were used for the test. The loss of water in the evaporation pan was determined by measuring the volume of water required to return the pan to a fixed level. Using this volume measurement provides a more accurate reference loss measurement than directly measuring the change in the pan water level. The volume measurement was then converted into an equivalent depth measurement. The lake water loss measured by the lake level gauge was compared to the loss of the evaporation pan using a pan evaporation coefficient. The corrected values from the evaporation pan were also compared to values obtained by AZMET at the Desert Ridge weather station for verification. The pan evaporation coefficient accounts for the different characteristics of the metallic evaporation pan in comparison to the lake. The coefficient accounts for heat transfer from the surrounding environment, relative humidity of the test location and impacts from wind. For the conditions of this specific test, a coefficient of 0.60 was determined to be appropriate. Figure 1-1 shows the results of the test including the lake level, control evaporation pan data, and data from the nearby AZMET site. First, relatively good correlation between the pan evaporative losses and the AZMET data is observed. Minor deviations between these data sets are anticipated to be due to location 11/7/2024 | Page 2 differences. This provides a good level of confidence in the pan data. Excellent correlation is observed between the cumulative measured pan evaporation and lake evaporation. The cumulative measured pan evaporation was found to have slightly less water loss than the lake on certain test days, but over the course of the test period the total losses are nearly equal. These findings suggest that the lake is not experiencing a magnitude of water loss through the liner that can be detected within the level of accuracy of the evaporation test. This does not definitively conclude that there are no water losses due to liner leakage, but only that no losses due to leakage were measured. In the June 2021 Fountain Lake Existing Facilities Condition Assessment technical memorandum, Black & Veatch recommended an evaporation pan test within 5 years and annual tests thereafter. In line with this recommendation, annual testing would begin in the Fall of 2026. Evaporation pan testing or other appropriate investigations would be recommended sooner if the Town observes a change in conditions at or near the lake that suggests the liner may be leaking. Figure 1-1 – Cumulative Lake Evaporation vs. Pan Evaporation Very truly yours, Black & Veatch Andrew Baumgardner Project Manager ITEM 13. A. TOWN OF FOUNTAIN HILLS STAFF REPORT Meeting Date: 12/03/2024 Meeting Type: Town Council Regular Meeting Agenda Type: Regular Agenda Submitting Department: Administration Prepared by: Paul Soldinger, Chief Financial Officer Request to Town Council Regular Meeting (Agenda Language): CONSIDERATION AND POSSIBLE ACTION: Review FY2024 Fund Balances with Recommended Transfer and Q1 FY2025 Revenue Update Staff Summary (Background) Staff will discuss Fiscal Year 2024 year-end audited fund balances by Fund: General Fund: $17.6 million Streets Fund: $9.6 million Capital Projects Fund: $8.8 million Facilities Reserve Fund: $5.3 million All other funds (other than internal service funds for vehicle and technology replacement): $5.0 million The Council approved $4.0 million of transfers from the General Fund into the Streets Fund and Facilities Reserve Fund in the FY2025 adopted budget. After accounting for these already-processed transfers, the General Fund still has about $13.6 million of fund balance. Further, Town financial policies require staff to retain 20% of the average past 5 years of General Fund Revenues in a Rainy Day committed and unassigned fund balance (total of 40% or about $8.9 million) within the General Fund. Therefore, this leaves $4.7 million of leftover reserves that would be required by policy to be transferred into the Capital Projects Fund. However, the Capital Projects Fund already has sufficient fund balance of $8.8 million (before current year activity) to support capital projects. Instead, staff is recommending an additional $2.0 million transfer from the General Fund into the Streets Fund for streets purposes. This would still leave $2.7 million that would be transferred into the Capital Projects Fund, in accordance with policy. Lastly, staff will present an update on Quarter 1 of Fiscal Year 2025 revenues. Related Ordinance, Policy or Guiding Principle Town Financial Policies Risk Analysis Not approving the $2.0 million transfer from the General Fund into the Streets Fund would result in Not approving the $2.0 million transfer from the General Fund into the Streets Fund would result in additional funding for the Capital Projects fund Recommendation(s) by Board(s) or Commission(s) N/A Staff Recommendation(s) Approval of the funding transfer of $2.0 million from the General Fund into the Streets Fund. SUGGESTED MOTION MOVE to approve of the funding transfer of $2.0 million from the General Fund into the Streets Fund. Fiscal Impact Fiscal Impact:$2,000,000 Budget Reference:FY2025 Funding Source:General Fund If Multiple Funds utilized, list here:Transfer into Streets Fund Budgeted: if No, attach Budget Adjustment Form: Attachments Presentation Form Review Inbox Reviewed By Date Town Attorney Aaron D. Arnson 11/20/2024 08:53 AM Interim Town Manager Angela Padgett-Espiritu 11/25/2024 04:26 PM Town Manager Angela Padgett-Espiritu 11/26/2024 09:08 AM Form Started By: Paul Soldinger Started On: 11/19/2024 12:15 PM Final Approval Date: 11/26/2024 FY24 Year End Fund Balances & FY25 Quarter 1 Revenues Paul Soldinger, Chief Financial Officer December 3, 2024 Ending FY24 Audited Fund Balances FY2024 Year-End Highlights •General Fund revenues exceeded expectations by $5.2M. General Fund expenditures were below adopted budget amounts by $3.9M •Total GF positive variances => $9.1M •Transfers into Streets Fund brought its fund balance to about $9.6M at FY24 year-end for streets current and future needs Fund Balances – Fiscal Year End 2024 Year End Audited Fund Balances The Town had total fund balances of about $46.3 million as of June 30, 2024 (not including Internal Service funds Net Position of $2.7M) General Fund Streets Fund Cap Projects Fund Facilities Reserve Fund All Other Funds* $17.6M $9.6M $8.8M $5.3MAbout $4.0M for Future Lake Liner Project $5.0M *Other funds include Economic Dev, Tourism, Downtown, Environmental, Impact Fees, etc Fund Balance Policy •Financial Policies require 20% of the average past 5 years of General Fund Revenues ($4.47M) to be kept in: •Rainy Day = Committed Fund Balance in General Fund •Unassigned Fund Balance in General Fund for operations •Total required GF reserves = $8.9M •FY2025 budget included $4.0M of Council-approved transfers from General Fund: •$2.0M to Streets Fund •$2.0M to Facilities Reserve Fund ($1.0M for Lake Liner) •Leftover reserves after Council-approved transfers are required to be transferred to Capital Projects Fund Current Fund Balances – After FY2025 Transfers Fund Balances after FY2025 Budgeted Transfers General Fund Streets Fund Cap Projects Fund Facilities Reserve Fund All Other Funds* $17.6M-4.0M (transfers) ------------ $13.6M Required reserves of about $8.9M leaves $4.7M available $9.6M+2.0M (transfers) ------------- $11.6M $8.8M $5.3M+2.0M (transfers in) ------------ $7.3MAbout $5.0M for Future Lake Liner Project $5.0M *Other funds include Economic Dev, Tourism, Downtown, Environmental, etc Staff Recommends Another $2.0M Transfer into Streets Fund •General Fund excess of $4.7M would be transferred into Capital Projects Fund, which already has healthy fund balance of $8.8M •Staff recommends transferring another $2.0M to the Streets Fund for possible additional Streets paving needs •The remaining $2.6M would be transferred into the Capital Projects Fund 1st Quarter FY25 Revenue Update Net Taxable Activity •Total Net Taxable Activity for Q1 of FY25 was $153.7M •Decreased by $0.7M from the same period in FY24 (but $15.0M more than Q1 of FY23) 1st Quarter Revenue Update FY2025 1st Quarter 153,679,678$ Total Net Taxable Activity within the Town $0 $20 $40 $60 $80 $100 $120 Jul 1 Aug 2 Sep 3 Oct 4 Nov 5 Dec 6 Jan 7 Feb 8 Mar 9 Apr 10 May 11 Jun 12 Mi l l i o n s Net Taxable Activity by Fiscal Year & Period 2021 2022 2023 2024 2025 Total TPT Collections •Includes all TPT reporting categories for all funds •Budgeted $3.77M •Collected $4.25M •$0.48M more than projections •Increase of $62K compared to Q1 FY24 $- $0.50 $1.00 $1.50 $2.00 $2.50 $3.00 Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Mi l l i o n s Total TPT Collections by Fiscal Year 2021 2022 2023 2024 2025 FY2023 FY2024 FY2025 Change from FY24 1st quarter 4,480,377 4,188,306 4,250,022 1.47% TPT Revenues 1st Quarter Revenue Update Retail Sales •Includes Local and Online Retail Sales and Use Tax •Budgeted $2.15M •Collected $2.26M •$107K more than expected •Decrease of $49K compared to Q1 of FY24 $- $200 $400 $600 $800 $1,000 $1,200 Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Th o u s a n d s Retail - TPT Collections by Fiscal Year 2021 2022 2023 2024 2025 FY2023 FY2024 FY2025 Change from FY24 1st quarter 2,214,863 2,307,337 2,258,775 -2.10% Retail Sales 1st Quarter Revenue Update Retail Sales – without food sales FY2023 FY2024 FY2025 Change from FY24 1st quarter 1,786,536 1,858,340 1,817,463 -2.20% Retail sales - without food sales $0.0 $0.2 $0.4 $0.6 $0.8 $1.0 $1.2 $1.4 $1.6 $1.8 $2.0 FY2023 FY2024 FY2025 Mi l l i o n s Retail TPT - without Food Tax 1st quarter •Retail sales excluding food tax may better indicate local shopping trends •Decrease of $41k compared to Q1 of FY24 1st Quarter Revenue Update Retail Sales – Remote Sellers FY2023 FY2024 FY2025 Increase from FY24 1st quarter 312,705 359,792 382,435 6.29% Total Remote Sellers $0 $50,000 $100,000 $150,000 $200,000 $250,000 $300,000 $350,000 $400,000 FY2023 FY2024 FY2025 Retail TPT - Remote Sellers 1st quarter •Remote sales (within retail sales) may better indicate online shopping trends •Increase of $23k compared to Q1 of FY24 1st Quarter Revenue Update Construction •Includes Prime Contracting and Speculative Builders •Budgeted $380K •Collected $583K •$203K more than expected •Decrease of $55K compared to Q1 of FY24 Large Taxable Event & Audit Collection in FY23 $- $200 $400 $600 $800 $1,000 $1,200 Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Th o u s a n d s Construction - TPT Collections by Fiscal Year 2021 2022 2023 2024 2025 FY2023 FY2024 FY2025 Change from FY24 1st quarter 939,274 637,858 582,874 -8.62% Construction 1st Quarter Revenue Update Utilities & Communications •Includes Water, Sewer, Electricity, Cable, Natural Gas, and Internet Services •Budgeted $338K •Collected $554K •$216K more than expected •Increase of $54K compared to Q1 of FY24 $- $50 $100 $150 $200 $250 Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Th o u s a n d s Utilities - TPT Collections by Fiscal Year 2021 2022 2023 2024 2025 FY2023 FY2024 FY2025 Change from FY24 1st quarter 483,991 499,547 553,976 10.90% Utilities & Communications 1st Quarter Revenue Update Real Estate •Includes Long-Term Residential and Commercial Rentals •Budgeted $269K •Collected $211K •$58K less than expected •Decrease of $52K compared to Q1 of FY24 $- $50 $100 $150 $200 $250 Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Th o u s a n d s Real Estate - TPT Collections by Fiscal Year 2021 2022 2023 2024 2025 FY2023 FY2024 FY2025 Change from FY24 1st quarter 257,795 263,394 210,949 -19.91% Real Estate 1st Quarter Revenue Update Restaurants and Bars •Includes Local Restaurants (drive thru, sit-down, and delivery) and Bars •Budgeted $290K •Collected $253K •$37K less than expected •About the same compared to Q1 of FY24 $- $20 $40 $60 $80 $100 $120 $140 $160 $180 $200 Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Th o u s a n d s Restaurants/Bars - TPT Collections by Fiscal Year 2021 2022 2023 2024 2025 FY2023 FY2024 FY2025 Change from FY24 1st quarter 268,312 252,574 252,750 0.07% Restaurants & Bars 1st Quarter Revenue Update Services •Includes Hotels, Golf, Tours, and Short-Term Residential Rentals •Budgeted $338K •Collected $390K •$52K more than expected •Increase of $163K compared to Q1 of FY24 FY2023 FY2024 FY2025 Change from FY24 1st quarter 317,323 227,440 390,269 71.59% Services $- $50 $100 $150 $200 $250 $300 $350 $400 $450 $500 Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Th o u s a n d s Services - TPT Collections by Fiscal Year 2021 2022 2023 2024 2025 1st Quarter Revenue Update State Shared Revenue •Budgeted $907K •Collected $856K •Budgeted $1.28M •Collected $1.26M $400 $350 $300 $250 $200 $150 $100 $50 Jul 1 Aug 2 Sep 3 Oct 4 Nov 5 Dec 6 Jan 7 Feb 8 Mar 9 Apr 10 May 11 Jun 12 Th o u s a n d s State Shared Revenue - Sales Tax 2021 2022 2023 2024 2025 $600 $550 $500 $450 $400 $350 $300 $250 $200 Jul 1 Aug 2 Sep 3 Oct 4 Nov 5 Dec 6 Jan 7 Feb 8 Mar 9 Apr 10 May 11 Jun 12 Th o u s a n d s State Shared Revenue - Income Tax 2021 2022 2023 2024 2025 1st Quarter Revenue Update State Shared Revenue •Budgeted $462K •Collected $445K •Budgeted $305K •Collected $310K $210 $190 $170 $150 $130 $110 $90 $70 $50 Jul 1 Aug 2 Sep 3 Oct 4 Nov 5 Dec 6 Jan 7 Feb 8 Mar 9 Apr 10 May 11 Jun 12 Th o u s a n d s Highway User Revenue Fund (HURF) 2021 2022 2023 2024 2025 $150 $125 $100 $75 $50 $25 Jul 1 Aug 2 Sep 3 Oct 4 Nov 5 Dec 6 Jan 7 Feb 8 Mar 9 Apr 10 May 11 Jun 12 Th o u s a n d s State Shared Revenue - Vehicle License Tax 2021 2022 2023 2024 2025 1st Quarter Revenue Update Questions?