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NOTICE OF THE EXECUTIVE
AND REGULAR SESSIONS OF THE
FOUNTAIN HILLS TOWN COUNCIL
TIME: 5:30 P.M. – EXECUTIVE SESSION
(Executive Session will be held in the Fountain Conference Room - 2nd floor)
6:30 P.M. – REGULAR SESSION
WHEN: THURSDAY, MARCH 19, 2015
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.
PROCEDURE FOR ADDRESSING THE COUNCIL
Anyone wishing to speak before the Council must fill out a speaker’s card and submit it to the Town Clerk
prior to Council discussion of that Agenda item. Speaker Cards are located in the Council Chamber
Lobby and near the Clerk’s position on the dais.
Speakers will be called in the order in which the speaker cards were received either by the Clerk or the
Mayor. At that time, speakers should stand and approach the podium. Speakers are asked to state their
name and whether or not they reside in Fountain Hills (do not provide a home address) prior to
commenting and to direct their comments to the Presiding Officer and not to individual Councilmembers.
Speakers’ statements should not be repetitive. If a speaker chooses not to speak when called, the speaker
will be deemed to have waived his or her opportunity to speak on the matter. Speakers may not (i)
reserve a portion of their time for a later time or (ii) transfer any portion of their time to another speaker.
If there is a Public Hearing, please submit the speaker card to speak to that issue during the Public
Hearing.
Individual speakers will be allowed three contiguous minutes to address the Council. Time limits may be
waived by (i) discretion of the Town Manager upon request by the speaker not less than 24 hours prior to
a Meeting, (ii) consensus of the Council at Meeting or (iii) the Mayor either prior to or during a Meeting.
Please be respectful when making your comments. If you do not comply with these rules, you will be
asked to leave.
Mayor Linda M. Kavanagh
Vice Mayor Dennis Brown Councilmember Henry Leger
Councilmember Nick DePorter Councilmember Alan Magazine
Councilmember Cassie Hansen Councilmember Cecil A. Yates
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EXECUTIVE SESSION AGENDA
CALL TO ORDER – Mayor Linda M. Kavanagh
1. ROLL CALL AND VOTE TO GO INTO EXECUTIVE SESSION: Pursuant to A.R.S.
§38-431.03(A)(1), discussion or consideration of employment, assignment, appointment,
promotion, demotion, dismissal, salaries, disciplining or resignation of a public officer,
appointee or employee of any public body (Specifically, for the purpose of discussing the
Town Manager’s annual review).
2. ADJOURNMENT.
REGULAR SESSION AGENDA
CALL TO ORDER AND PLEDGE OF ALLEGIANCE – Mayor Linda M. Kavanagh
INVOCATION – Julie Orwin, from the Temple Beth Hagivot.
ROLL CALL – Mayor Linda M. Kavanagh
MAYOR’S REPORT
i) The Mayor will read a PROCLAMATION declaring APRIL 2015 AS
VOLUNTEER MONTH in the Town of Fountain Hills.
ii) RECOGNITION that the Town of Fountain Hills has received, for the 19th
consecutive year, the CERTIFICATE OF ACHIEVEMENT FOR EXCELLENCE
IN FINANCIAL REPORTING for Fiscal Year ending June 30, 2014, for its
Comprehensive Annual Financial Report (CAFR) from the Government Finance
Officers Association (GFOA) of the United States and Canada.
SCHEDULED PUBLIC APPEARANCES/PRESENTATIONS
i) The Mayor may review RECENT EVENTS attended relating to ECONOMIC
DEVELOPMENT.
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 t ake 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.
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CONSENT AGENDA ITEMS
All items listed on the Consent Agenda are considered to be routine, non-controversial matters and will be
enacted by one motion and one roll call vote 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 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.
1. CONSIDERATION of approving the TOWN COUNCIL MEETING MINUTES from
March 5, 2015.
2. CONSIDERATION of approving a BUDGET TRANSFER in the amount of $132,920.59
from the Streets Development Fees Fund to the CIP Fund, Project S6005 - Shea Boulevard,
Technology Drive to Cereus Wash.
REGULAR AGENDA ITEMS
3. CONSIDERATION of the request by the Public Art Committee to ACCEPT A
DONATED PAINTING titled, "Red Rock Crossing" for placement in the Yavapai Room in
the Community Center.
4. CONSIDERATION of a request by the Community Services Advisory Commission to
provide UPGRADES AND FUNDING not to exceed $7,500 for the Desert Vista Dog Park
to help control barking.
5. DISCUSSION WITH POSSIBLE DIRECTION TO STAFF regarding
RECOMMENDATIONS of how to revise, enhance or streamline the A-frame sign
permitting process for compliance.
6. PRESENTATION AND DISCUSSION of a LETTER OF INTENT from the Strategic
Planning Advisory Commission regarding a potential update to Strategic Plan 2010.
7. CONSIDERATION of ORDINANCE 15-01, amending the Town of Fountain Hills Town
Code, Chapter 1, relating to civil citations.
8. CONSIDERATION of RESOLUTION, 2015-08, adopting the Town of Fountain Hills
Financial Policies, amended and restated March 19, 2015.
9. DISCUSSION WITH POSSIBLE DIRECTION TO STAFF relating to any item
included in the League of Arizona Cities and Towns weekly LEGISLATIVE BULLETIN
or relating to any ACTION PROPOSED OR PENDING BEFORE THE STATE
LEGISLATURE.
10. COUNCIL DISCUSSION/DIRECTION to the Town Manager.
Item(s) listed below are related only to the propriety of (i) placing such item(s) on a future agenda
for action or (ii) directing staff to conduct further research and report back to the Council:
i.) None.
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11. SUMMARY OF COUNCIL REQUESTS and REPORT ON RECENT ACTIVITIES by the
Mayor, Individual Councilmembers, and the Town Manager.
12. ADJOURNMENT.
DATED this 12th day of March, 2015.
Bevelyn J. Bender, Town Clerk
The Town of Fountain Hills endeavors to make all public meetings accessible to persons with disabilities. Please call 480 -816-5100
(voice) or 1-800-367-8939 (TDD) 48 hours prior to the meeting to request a reasonable accommodation to participate in this 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.
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NOTICE OF THE EXECUTIVE
AND REGULAR SESSIONS OF THE
FOUNTAIN HILLS TOWN COUNCIL
TIME: 5:30 P.M. – EXECUTIVE SESSION
(Executive Session will be held in the Fountain Conference Room - 2nd floor)
6:30 P.M. – REGULAR SESSION
WHEN: THURSDAY, MARCH 19, 2015
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.
PROCEDURE FOR ADDRESSING THE COUNCIL
Anyone wishing to speak before the Council must fill out a speaker’s card and submit it to the Town Clerk
prior to Council discussion of that Agenda item. Speaker Cards are located in the Council Chamber
Lobby and near the Clerk’s position on the dais.
Speakers will be called in the order in which the speaker cards were received either by the Clerk or the
Mayor. At that time, speakers should stand and approach the podium. Speakers are asked to state their
name and whether or not they reside in Fountain Hills (do not provide a home address) prior to
commenting and to direct their comments to the Presiding Officer and not to individual Councilmembers.
Speakers’ statements should not be repetitive. If a speaker chooses not to speak when called, the speaker
will be deemed to have waived his or her opportunity to speak on the matter. Speakers may not (i)
reserve a portion of their time for a later time or (ii) transfer any portion of their time to another speaker.
If there is a Public Hearing, please submit the speaker card to speak to that issue during the Public
Hearing.
Individual speakers will be allowed three contiguous minutes to address the Council. Time limits may be
waived by (i) discretion of the Town Manager upon request by the speaker not less than 24 hours prior to
a Meeting, (ii) consensus of the Council at Meeting or (iii) the Mayor either prior to or during a Meeting.
Please be respectful when making your comments. If you do not comply with these rules, you will be
asked to leave.
Mayor Linda M. Kavanagh
Vice Mayor Dennis Brown Councilmember Henry Leger
Councilmember Nick DePorter Councilmember Alan Magazine
Councilmember Cassie Hansen Councilmember Cecil A. Yates
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EXECUTIVE SESSION AGENDA
CALL TO ORDER – Mayor Linda M. Kavanagh
1. ROLL CALL AND VOTE TO GO INTO EXECUTIVE SESSION: Pursuant to A.R.S.
§38-431.03(A)(1), discussion or consideration of employment, assignment, appointment,
promotion, demotion, dismissal, salaries, disciplining or resignation of a public officer,
appointee or employee of any public body (Specifically, for the purpose of discussing the
Town Manager’s annual review).
2. ADJOURNMENT.
REGULAR SESSION AGENDA
CALL TO ORDER AND PLEDGE OF ALLEGIANCE – Mayor Linda M. Kavanagh
INVOCATION – Julie Orwin, from the Temple Beth Hagivot.
ROLL CALL – Mayor Linda M. Kavanagh
MAYOR’S REPORT
i) The Mayor will read a PROCLAMATION declaring APRIL 2015 AS
VOLUNTEER MONTH in the Town of Fountain Hills.
ii) RECOGNITION that the Town of Fountain Hills has received, for the 19th
consecutive year, the CERTIFICATE OF ACHIEVEMENT FOR EXCELLENCE
IN FINANCIAL REPORTING for Fiscal Year ending June 30, 2014, for its
Comprehensive Annual Financial Report (CAFR) from the Government Finance
Officers Association (GFOA) of the United States and Canada.
SCHEDULED PUBLIC APPEARANCES/PRESENTATIONS
i) The Mayor may review RECENT EVENTS attended relating to ECONOMIC
DEVELOPMENT.
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 t ake 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.
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CONSENT AGENDA ITEMS
All items listed on the Consent Agenda are considered to be routine, non-controversial matters and will be
enacted by one motion and one roll call vote 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 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.
1. CONSIDERATION of approving the TOWN COUNCIL MEETING MINUTES from
March 5, 2015.
2. CONSIDERATION of approving a BUDGET TRANSFER in the amount of $132,920.59
from the Streets Development Fees Fund to the CIP Fund, Project S6005 - Shea Boulevard,
Technology Drive to Cereus Wash.
REGULAR AGENDA ITEMS
3. CONSIDERATION of the request by the Public Art Committee to ACCEPT A
DONATED PAINTING titled, "Red Rock Crossing" for placement in the Yavapai Room in
the Community Center.
4. CONSIDERATION of a request by the Community Services Advisory Commission to
provide UPGRADES AND FUNDING not to exceed $7,500 for the Desert Vista Dog Park
to help control barking.
5. DISCUSSION WITH POSSIBLE DIRECTION TO STAFF regarding
RECOMMENDATIONS of how to revise, enhance or streamline the A-frame sign
permitting process for compliance.
6. PRESENTATION AND DISCUSSION of a LETTER OF INTENT from the Strategic
Planning Advisory Commission regarding a potential update to Strategic Plan 2010.
7. CONSIDERATION of ORDINANCE 15-01, amending the Town of Fountain Hills Town
Code, Chapter 1, relating to civil citations.
8. CONSIDERATION of RESOLUTION, 2015-08, adopting the Town of Fountain Hills
Financial Policies, amended and restated March 19, 2015.
9. DISCUSSION WITH POSSIBLE DIRECTION TO STAFF relating to any item
included in the League of Arizona Cities and Towns weekly LEGISLATIVE BULLETIN
or relating to any ACTION PROPOSED OR PENDING BEFORE THE STATE
LEGISLATURE.
10. COUNCIL DISCUSSION/DIRECTION to the Town Manager.
Item(s) listed below are related only to the propriety of (i) placing such item(s) on a future agenda
for action or (ii) directing staff to conduct further research and report back to the Council:
i.) None.
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11. SUMMARY OF COUNCIL REQUESTS and REPORT ON RECENT ACTIVITIES by the
Mayor, Individual Councilmembers, and the Town Manager.
12. ADJOURNMENT.
DATED this 12th day of March, 2015.
Bevelyn J. Bender, Town Clerk
The Town of Fountain Hills endeavors to make all public meetings accessible to persons with disabilities. Please call 480-816-5100
(voice) or 1-800-367-8939 (TDD) 48 hours prior to the meeting to request a reasonable accommodation to participate in this 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.
Government Finance Officers Association
203 N.LaSalle Street -Suite 2700
Chicago,IL 60601
Phone (312)977-9700 Fax (312)977-4806
February 18,2015
The Honorable Linda Kavanagh
Mayor
Town of Fountain Hills
16705 East Avenue of the Fountains
Fountain Hills AZ 85268
Dear Mayor Kavanagh:
We are pleased to notify you that your comprehensive annual financial report for the fiscal year ended June 30, 2014
qualifies for a Certificate of Achievement for Excellence in Financial Reporting. The Certificate of Achievement is the
highest form of recognition in governmental accounting and financial reporting, and its attainment represents a significant
accomplishment by a government and its management
An award for the Certificate of Achievement has been shipped to:
Craig Rudolphy
Finance Director
We hope that you will arrange for a formal presentation of the Certificate and Award of Financial Reporting Achievement,
and that appropriate publicity will be given to this notable achievement.A sample news release is enclosed to assist with
this effort. In addition,details of recent recipients of the Certificate of Achievement and other information about
Certificate Program results are available in the "Awards Program" area of our website, www.gfoa.org.
We hope that your example will encourage other government officials in their efforts to achieve and maintain an
appropriate standard of excellence in financial reporting.
Sincerely,
Government Finance Officers Association
Stephen J. Gauthier,Director
Technical Services Center
SJG/ds
Government Finance Officers Association
203 N.LaSalle Street -Suite 2700
Chicago,IL 60601
Phone (312)977-9700 Fax (312)977-4806
02/18/2015
NEWS RELEASE
For Information contact:
Stephen Gauthier (312)977-9700
(Chicago)-The Certificate of Achievement for Excellence in Financial Reporting has been
awarded to Town of Fountain Hills by the Government Finance Officers Association of the
United States and Canada (GFOA)for its comprehensive annual financial report (CAFR).The
Certificate of Achievement is the highest form of recognition in the area of governmental
accounting and financial reporting,and its attainment represents a significant accomplishment by a
government and its management
An Award of Financial Reporting Achievement has been awarded to the individual(s),
department or agency designated by the government as primarily responsible for preparing the
award-winningCAFR. This has been presented to:
Administration Department,Finance Division,Town of Fountain Hills
TheCAFRhas beenjudged byan impartial panelto meetthe highstandardsof the program
including demonstratinga constructive"spiritof fulldisclosure"to clearly communicateits
financialstory and motivate potential users and user groups to read the CAFR.
TheGFOAis a nonprofit professionalassociationservingapproximately 17,500 government
finance professionals with offices in Chicago, IL, and Washington,D.C.
Government Finance Officers Association
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
Town of Fountain Hills
Arizona
For its Comprehensive Annual
Financial Report
for the Fiscal Year Ended
June 30,2014
Executive Director/CEO
\
TOWN OF FOUNTAIN HILLS
TOWN COUNCIL
AGENDA ACTION FORM
Meeting Date:3/19/2015 Meeting Type:Regular Session
Agenda Type:Consent Submitting Department:Administration
Staff Contact Information:Bevelyn J.Bender,Town Clerk;480-816-5115;bbender@fh.az.gov
Council Goal:
Strategic Values:Civic Responsibility C3 Solicit feedback in decision-making
REQUEST TO COUNCIL (Agenda Language):CONSIDERATION of approving the TOWN COUNCIL MEETING
MINUTES from March 5,2015.
Applicant:NA
Applicant Contact Information:
Property Location:
Related Ordinance,Policy or Guiding Principle:A.R.S.§38-431.01
Staff Summary (background):The intent of approving previous meeting minutes is to ensure an accurate
account of the discussion and action that took place at that meeting for archival purposes.Approved minutes
are placed on the Town's website in compliance with state law.
Risk Analysis (options or alternatives with implications):
Fiscal Impact (initial and ongoing costs;budget status):
Budget Reference (page number):
Funding Source:NA
If Multiple Funds utilized,list here:
Budgeted;if No,attach Budget Adjustment Form:na
Recommendation(s)by Board(s)or Commission(s):
Staff Recommendation(s):Approve
List Attachment(s):None
SUGGESTED MOTION (for Council use):Move to approve the consent agenda as listed
Prepared by:Approved:
Bevelyn Bender,Town Clerk 3/10/2015 Ken Buchanan,Town Manager 3/10/2015
Page 1 of 1
TOWN OF FOUNTAIN HILLS
TOWN COUNCIL
AGENDA ACTION FORM
Meeting Date:3/19/2015 MeetingType:Regular Session
Agenda Type:Consent Submitting Department:Administration
Staff Contact Information:Craig Rudolphy,Finance Director,480-816-5162,crudolphy@fh.az.gov
Strategic Planning Goal:Not Applicable (NA)Operational Priority:Not Applicable (NA)
REQUEST TO COUNCIL (Agenda Language):CONSIDERATION of approving a BUDGET TRANSFER in the amount
of $132,920.59 from the Streets Development Fees Fund to the CIP Fund,Project S6005.Shea -Blvd.,Technology Drive
to Cereus Wash.
Applicant:
Applicant Contact Information:
Property Location:
Related Ordinance,Policy or Guiding Principle:Town Financial Policies
Staff Summary (background):This item was origianlly budgeted at $275,000.The Streets Development Fees
were budgeted this year to pay partofthe cost for JIP ProjectS6005 -Shea Blvd.However,the new
Development Fee Schedule adopted and implemented in August 2014 does not provide for the collection of
any additional develpopment fees for Streets.Any money that remains in theStreets Development Fees Fund
must be spent on growth related projects prior to 2020.Since some of the fund was dedicated to Project
S6005,staff feels it is prudent to utilize all remaining moneis in this fund toassist in the payment of costs for
this project.
Risk Analysis (options or alternatives with implications):Without this budget transfer,these development fees
cannot be used forany other project now underway or contemplated before 2020.
Fiscal Impact (initial and ongoing costs; budget status):$132,920.59
Budget Reference (page number): pp 299,331
Funding Source:Development Fee Fund
If Multiple Funds utilized,list here:
Budgeted;if No,attach Budget Adjustment Form:Yes
Recommendation(s)by Board(s)or Commission(s):
Staff Recommendation(s):Staff recommends approval.
List Attachment(s):Budget Transfer approval form
Page 1 of 2
SUGGESTED MOTION (for council use):Move to approve the inter-fund budget transfer from the Streets
Development Fees Fund tothe Capital Improvement Fund in the amount of $132,920.59 for fiscal year endina
June 30,2015.
Beafa Bogdan,Accountant "3/10/2015
Director's Approve
CUW>ft _
Craig Rudolphy,Finance Director I 3/10/2015
Approved:^^^—j
Ken Buchanan,Town Manager
Page 2 of 2
TOWN OF FOUNTAIN HILLS
03/03/2015 07:07
BBogdan
CLERK:BBogdan
YEAR PER JNL
SRC ACCOUNT
EFF DATE
TOWN OF FOUNTAIN HILLS
BUDGET AMENDMENT JOURNAL ENTRY PROOF
JNL DESC REF 1 REF 2
2015 9 32
BUA DFST-6904
03/02/2015 DFST-S6005 DFST INCREASE
BUA CIPST-4904-S6005
03/02/2015 DFST-S6005 DFST INCREASE
BUA SRAD-4401
03/02/2015 DFST-S6005 DFST INCREASE
BUA SRAD-7010
03/02/2015 DFST-S6005 DFST INCREASE
APPROVED
MAYOR
REF 3
fimiMtmfaimimimtfZ'jtf.
P 2
bgamdent
ACCOUNT DESC T OB DEBIT CREDIT
LINE DESC
TRANSFER OUT 5 132,920.59
INCREASE FUNDING TO S6005
TRANSFER IN 5 132,920.59
INCREASE FUNDING TO S6005
GRANTS 5 132,920.59
INCREASE FUNDING TO S6005
CONTINGENCY 5 132,920 .59
INCREASE FUNDING TO S6005
JOURNAL 2015/09/32 TOTAL .00 .00
DATE
TOWNOFFOUNTAINHILLS03/03/201507:07BBogdan[TOWNOFFOUNTAINHILLS[BUDGETAMENDMENTS JOURNAL ENTRY PROOFLNORGACCOUNTOBJECTPROJORGDESCRIPTIONYEAR-PERJOURNALEFF-DATEREF1REF2201509 3203/02/2015DFSTINCREASE1DFST6904STREETSDEVFEE730-40-30-302-000-0415-6904-2CIPST4904S6005STREETSCAPPROJECTS600-40-30-302-000-1610-4904-S60053SRAD44 01SPECREV-ADMIN400-10-10-105-000-0710-4401-4SRAD7010SPECREV-ADMIN400-10-10-105-000-0710-7010-ACCOUNTDESCRIPTIONLINEDESCRIPTIONEFFDATEBUDGETCHANGESRCJNL-DESCENTITYAMENDBUADFST-S600517TRANSFEROUT275,000.00132,920.59INCREASEFUNDINGTOS600503/02/2015TRANSFERIN-275,000.00-132,920.59INCREASEFUNDINGTOS600503/02/2015GRANTS-1,500,000.00132,920.59-1INCREASEFUNDINGTOS600503/02/2015CONTINGENCY1,356,227.82-132,920.591INCREASEFUNDINGTOS600503/02/2015**JOURNALTOTAL0 .00P1bgamdentAMENDEDBUDGETERR407,920.59-407,920.59.367,079.41223,307.23
TOWN OF FOUNTAIN HILLS
TOWN COUNCIL
AGENDA ACTION FORM
Meeting Date:3/19/2015 Meeting Type:Regular Session
Agenda Type: Regular Submitting Department:Community Services
Staff Contact Information:Mark Mayer mmayer@fh.az.gov 480.816.5190
Strategic Planning Goal:Not Applicable (NA)Operational Priority:Not Applicable (NA)
REQUEST TO COUNCIL (Agenda Language):CONSIDERATION of the requestby the PublicArt Committee toaccepta
donated painting titled, "Red Rock Crossing" for placement in the Yavapai Room in the Community Center.
Applicant:
Applicant Contact Information:
Property Location:
Related Ordinance,Policy or Guiding Principle:Public Art Master Plan.
Staff Summary (background):The Public Art Committee is requesting that the Town accept the painting titled
"Red Rock Crossing"for placement in the Yavapai Room in the Community Center.The painting, by artist
Karen Holloway,has a value of $750.
Risk Analysis (options or alternatives with implications):
Fiscal Impact (initial and ongoing costs;budget status):There will be an annual cost of $3.23 to insure the
painting.
Budget Reference (page number):
Funding Source:NA
If Multiple Funds utilized,list here:
Budgeted;if No,attach Budget Adjustment Form:NA
Recommendation(s)by Board(s)or Commission(s):
Staff Recommendation(s):Staff is recommending acceptance of the painting and its placement in the
Community Center as requested.
List Attachment(s):Letter from Public Art Committee Chair Sandi Thompson,picture of the painting,and a
site map of the proposed location.
SUGGESTED MOTION (for Council use):Approve the request by the Public Art Committee to accept a donated
painting titled,"Red Rock Crossing"for placement in the Yavapai Room in the Community Center.
Page 1 of 2
Director's Approval:
^—si,C.4MarkMayer,CommunityServices Directory 3/4/2015
3/10/2015
Page 2 of2
FOUNTAIN HILLS CULTURAL &
CIVIC ASSOCIATION
Post Office Box 1 8254
Fountain Hills,AZ 85269
February 26, 2015
Honorable Mayor Kavanagh
Town Council Members
Town of Fountain Hills
Fountain Hills,AZ 85268
Dear Ladies &Gentlemen,
The Public Art Committee of the Fountain Hills Cultural &Civic Association would like to
propose the acquisition of a painting named "Red Rock Crossing"by Karen Holloway. The piece is
4'tall x 3'wide.The piece is being donated by the Karen Holloway Estate.
This piece has a value of $750.
We are recommending the piece be placed in the Yavapai Room of the Community Center.
This acquisition has been approved by the Public Art Committee and the FHCCA Board.
Photo of this piece has been sent to you in a separate email.
Very Truly Yours,
Sa/uti Sffompaaa
Sandi Thompson
Chair,Public Art Committee
FHCCA
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TOWN OF FOUNTAIN HILLS
TOWN COUNCIL
AGENDA ACTION FORM
Meeting Date:3/19/2015 Meeting Type:Regular Session
Agenda Type:Regular Submitting Department:Community Services
Staff Contact Information:Mark Mayer -816-5190 /mmayer@fh.az.gov
Strategic Planning Goal:Not Applicable (NA)Operational Priority:Not Applicable (NA)
REQUEST TO COUNCIL (Agenda Language):Consideration of a request by the Community Services Advisory
Commission to provide upgrades and funding not to exceed $7,500 for the Desert Vista dog park to help control barking
Applicant:N/A
Applicant Contact Information:N/A
Property Location:Desert Vista Park
Related Ordinance,Policy or Guiding Principle:
Staff Summary (background):The Community Services Advisory Commission at their November 24,2014
meeting received several complaints from property owners in the area adjacent to the dog park in Desert Vista
Park.At the January 26,2015 meeting the Commission agreed to refer the issue to the Parks/Facilities Study-
Group and to provide information back to the Commission at their February 23 meeting.
The Parks/Facilities Study Group met with representatives of the adjacent condominiums and the Morningside
development on February 5 and 18. In addition,representatives from the users of the dog park also attended
representing users of both the large/aggressive and the small/non-aggressive areas.This combined group
met twice to determine the issues for the group to study and to determine potential options and costs.
The Parks and Facilities Study-Group brought the results of their meeting and research to the Community
Services Advisory Commission at its February 23 meeting.Attendees from both sides of the issue attended
the meeting and spoke to the Commission.A motion was made to recommend to the Town Council the
following:
1)Creating a barrier between the two dog parks by:
Add Chain Link Fence on Top of the 2' Block Wall on the Inside of the Small Dog Park
Add PVC Cloth to the Service Gate and Small Dog Entrance Area
2) With regard to Rules:
Adoption of the new rules suggested
Add to rule #5 Dog handlers must control continuous barking
Add new -must conform to park hours
Add new -must be respectful of neighboring residents sensitivity to loud talking, yelling,and dogs
barking
Page 1 of 3
Adoption of the signage as suggested
Leash law signage outside near parking area
Reposition fence signs to where people congregate
Adoption of the enforcement as suggested
Enlisting Maricopa Animal Control and the Sheriff toenforce parkhoursand the leash law outsidethe
park
3) With regard to communications:
Adoption ofthe suggestion of fliers,distributed in park,Town Hall, vets, groomers, Chamberof
Commerce,pet shops
Restart ADOG/FIDO (Dennis Continocommitted$1000 from ADOG towards whatever solution is
adopted)
4) With regard to Fees:
Adoption ofthe $1 dollaradd-on to dog license fees to establish a fundfordog related expenses at the
parks
5) With regard to park hours and days open:
As suggested - no change
Costs are estimated by the committee as follows:
1)Fencing along top of planter -$3,400
PVC cloth across small dog entrance and service gate - $2,700
2)Adddog park rules and replace/relocate signage -$1,200
3)Printed flyers -$200
4)N/A
5)N/A
Total $7,500 -*$1,000 ADOG =$6,500
*Dennis Contino has committed $1,000 of ADOG funds
Commissioner Don Doty will be making a presentation to the Council on this item
Risk Analysis (options or alternatives with implications):
Fiscal Impact (initial and ongoing costs;budget status):
Budget Reference (page number):
Funding Source:NA
If Multiple Funds utilized,list here:
Budgeted;if No,attach Budget Adjustment Form:na
Recommendation(s)by Board(s)or Commission(s):Recommended by the Community Services Advisory
Commission
Staff Recommendation(s):
List Attachment(s):
SUGGESTED MOTION (for council use):Motion to Approve the recommendations of the Community Services
Advisory Commission and to approve funding not to exceed $7,500 for the changes as listed
Page 2 of 3
Prepared by:
NA 1/15/2014
Director's Approval:
a ^.ou g w
NA \7 3/9/2015
Approved:approved:^m^s -n
Ken Buchanan,town Manager 3/11/2015
Page 3 of3
Sliding gate
Small dog area
Large dog area Raised planter
Existing
3 ft block wall
Existing 3 foot wall
With 3 foot fence on top
Add 3 foot fence on top of
Existing wall
Entry way Entry way
Add cover to
Block visibility
Add cover to to
Block visibility
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Other features
of
Acoustifence:
•UV Tolerant
Paintable
(acrylic latex
vinyl based)
Easy to install or
remove from
existing fence
Impervious to
water
Totally non-mold
(rated 10 of 10)
Made from over
90%recycled or
organic material
100%recyclable
Vermin proof
Easily washed
•STC 28
independent lab
certified
Made in U.S.A.
from all U.S.
materials
Acoustifence vs.Padded Sound Blankets
Unlike padded "blanket sound barriers,"the Acoustifence:
• Is only 1/8"thick
Is impervious to water or fluids
Will not mold or mildew
Will not develop or hold odors
Will not weigh more when wet changing structural
requirements
Can easily wash off virtually anything including graffiti with
power washer
Will not become a home for vermin or insects
Is printable for signage as well as paintable
Will not hold oils or fluids which could be a fire or toxic hazard
Takes much less space to store -each 30'section rolls up into
a mere 11"roll
Can even be used as temporary roofing
jlCdd^TlfyLd^.CW //\C0U$T)CfiL_FG^Ct >ph P
Option
#DESCRIPTION PRO's CON's High Level
Estimated Cost
Estimated
Effectivenesss
Rating (1-5 with
1 being weakest)
Estimated Visual
Appearance
Rating (1-5 with
1 being the
weakest)
Notes
Inexpensive May not be aesthetically appealing
May use volunteers to install Likely Not Permanent
Corrugated design may deflect more
sound
Would Keep Small Dogs out of Planter Would Limit Access into planting area for
maintainence
Would mimic look of rest of park Will not deflect sound
Is likely more permanent
Inexpensive Will not deflect sound
May use volunteers to install Would Not Provide Visual Block of 100%
Will reduce sound Expensive
Will Provide 100% visual blockage Not permanent (5-10 yrs)
May not be aethesitcally appealing
Would provide100% visual Blockage Expensive
May provide sound barrier May be visually unappealing.
Looks attractive Does not provide good visual blockage
May help with sound dispersement Would take years for plants to mature
Water and trimming costs
Expensive
Not permanent (5-10 yrs)
May not be aethesitcally appealing
Expensive
Not permanent (5-10 yrs)
May not be aethesitcally appealing
Lots of options in color and quality May not be permanent (2-5 years depending
on product)
Inexpensive Durabilty - may not hold up to dogs scratching
at it
Could Use volunteers to install Some options may not be aesthetically appealling
Will not deflect sound
Excess dirt readily available Would Not Provide Visual Block of 100%
Inexpensive May not deflect enough sound
Would require planting to ensure visual appeal
Would provide visual blockage / barrier PVC Panels likely not permanent
Consistent look to current Would Limit Access into planting area for
maintainence
Chain Link Fence Section is permanent Will not deflect sound
Would provide visual blockage / barrier Noise Cloth Panels likely not permanent
Consistent look to current Would Limit Access into planting area for
maintainence
Chain Link Fence Section is permanent Noise cloth is expensive
5
4
Add Chain Link Fence on Top of the 2' Block Wall on
the Inside of the Small Dog Park AND Noise Cloth
Cloth to Service Gate and Small Dog Entrance Area
5,800.00$ 5
This option would provide consistent visual
appearance and provide visual blockage.
Benefit of the noise cloth has not been
validated by team to be worth the cost.
12
2
5
4
3
3
10
54,500.00$
Not Determined 1
Not Determined
Add Trees / shrubs / plants to the planting area in
the little dog park and trees / plants on the
outside of the North perimeter of the large dog
park.
1
Replace Chain Link Fence With 6' Block Wall in
Sections A & B 18,000.00$
Costs are estimated and will depend on the
type of PVC Cloth selected. This option would
provide consistent visual appearance and
provide visual blockage.
11
Use dirt to create barriers aroud various areas
along fencing
1
2
3
4
5
6
7
8
9 $600 - 2700 4 Would need to ensure that the highest visual
blockage was used.
Add Noise Barrier AcusticFence to Entire Perimeter
of North Section of Large Dog Park Will reduce sound 27,000.00$ 2 Will not have any impact on the barking
between small and large dogs
Add PVC cloth to the entire section of A and B
between the large / small dog sections (including
Entrance and Service Gate)
3
4
4
This option may be considered along with other
options listed to improve asthetics and help
with sound
Add Noise Barrier AcusticFence to Small Area by
Main Large Dog Park Gazebo to block dog & people
sound
700.00$ 1 Will only block sound from the Gazebo AreaWill reduce sound
5
3
Would require that the Service Gate into the
small dog park area be moved near the
entrance. That cost is not included. Removal of
existing fence is also not included.
5
4 (rating if
only this was
done)
1
5
5
Add Slats to existing Chain Link Fence Along
Sections A & B (including Entrance and Service
Gate)
This option is not preferred as it does not
provide adequate visual blockage2,600.00$
Add Noise Barrier AcusticFence to Sections A & B
(including Entrance and Service Gate)8,500.00$ Rolls are 6'x30'and $699 per Roll
PolyCarbonate Panels to cover fencing along
Sections A & B (including Entrance and Service
Gate)
3,000.00$
Add Chain Link Fence on Top of the 2' Block Wall on
the Inside of the Small Dog Park 3,400.00$
Cost just includes install of chain link fence on
top of existing block wall. This option needs to
be done in conjuction with other options along
the entrance and service gate area.
TOWN OF FOUNTAIN HILLS
TOWN COUNCIL
AGENDA ACTION FORM
Meeting Date: 3/19/2015 Meeting Type: Regular Session
Agenda Type: Regular Submitting Department:Development Services
Staff Contact Information:Robert Rodgers,Senior Planner rrodgers@fh.az.com 480-816-5138
Strategic Planning Goal:NotApplicable (NA)Operational Priority:NotApplicable (NA)
REQUEST TO COUNCIL (Agenda Language):
DISCUSSION WITH POSSIBLE DIRECTION TO STAFF regarding RECOMMENDATIONS of how to revise,
enhance or streamline the A-frame sign permitting process for better compliance.
Applicant:Fountain Hills Development Services Department
Applicant Contact Information:Robert Rodgers, Senior Planner
Property Location:NA
Related Ordinance,Policy or Guiding Principle:
Fountain Hills Zoning Ordinance Section 6.03 -Sign Permits;Fees
Fountain Hills Zoning Ordinance Section 6.07.1.13 -Prohibited Signs
Fountain Hills Zoning Ordinance Section 6.08.B.11 -A-Frame Signs
Fountain Hills Comprehensive Fee Schedule
Staff Summary (background):
The A-frame sign permit requirement was added by Council in 2009.The requirement was intended to ensure
that business owners who put out A-frame signs would be advised of the regulations when they were picking
up their sign permit.The price of the permit is currently $5 and it consists of a sticker which must be affixed to
the sign.All these permits expire annually on the same date as the sunset clause and must be renewed at the
beginning of each year once/if Council agrees to extend the expiration date for another year.
In December,2014 the Town Council approved a one-year extension of Zoning Ordinance Section 6.08.B.11,
the "sunset clause"for A-frame signs.The extension is until December 31,2015.
During the discussions it was noted that while there were many reasons listed for non-compliance,the majority
of the non-compliance issues were due to the sign owner's failure to get the required permit. Council directed
staff to look at the town's current regulations and processes regarding these permits and return with an
analysis and recommendations to better address both the non-compliance issues and the enforcement issues
being encountered.
Staff has reviewed our internal permitting and permit tracking abilities as well as the current ordinances.The
following options were considered:
Page 1 of 3
1. Do Nothing;
This would leave everything as it is currently. However, this option has been shown to be less than
optimal in that the non-compliance rate has steadily gottenworse underthe current methodology,the
current permitting fees do not cover the costs of staff time or materials involved in the permitting
process, and the current process is the reason that this report is being written.Staff does not support
this option.
2.Increase the Permit Fee;
This would increase the fee for the A-frame sign from $5 to $25 in order to cover the costs of staff time
and materials in the administration of the permits. While addressing the issue of cost, this option does
not address the majorityofthe underlying issues of non-compliance.Staff does not support this option.
3.Allow for Multi-Year Permits;
This could also be done in conjunction with #2 above.Allowing permits for up to three years would
address some cost issues as well as potentially lowering the incidence of non-compliance due to lack of
a permit since one permit would last much longer. However, this option would certainly require that
some sort of reminder notice be sent out annually to the businesses withan A-frame sign permit due to
expire that year.This reminder system is not currently in place and staff discussions have found that
the town's Business License software will not support such a system and installing any sort of new
automated system would be cost prohibitive. Devising and using a manual reminder system would then
be necessary and would again increase staff time and materials costs.
This option would also require that the annual expiration "sunset clause"be removed from the zoning
ordinance.If that section is not removed from the ordinance the possibility of A-frame signs being once
again banned while active and valid permits are still in effect could be a distinct possibility.Staff does
not support this option.
4.Eliminate the Permit Requirement;
Removing the requirement that A-frame signs get an annual permit will dramatically increase the
compliance rate,reduce staff administration costs,and allow businesses to display the signs as they
currently do while not eliminating the requirement that they abide by the remainder of the sign
ordinance regulations.This would also require that the zoning ordinance be amended so as not to
require the permit but still keep the signs subject to the annual expiration in the sunset clause.Staff
believes that the original reason for requiring the permit,(education of the business owner)has been
shown to be ineffective.The permit has also been proven to not be cost effective.Staff supports the
elimination of the A-frame Sign Permit requirement.
Risk Analysis (options or alternatives with implications):NA
Fiscal Impact (initial and ongoing costs;budget status):Various depending on the option chosen.
Budget Reference (page number):NA
Funding Source:NA
IfMultiple Funds utilized,listhere: NA
Budgeted;if No,attach Budget Adjustment Form:na
Recommendation(s)by Board(s)or Commission(s):NA
Staff Recommendation(s):
Staff requests that Council agree to the implementation of option #4,the elimination of the A-Frame Sign
Permit requirement.
Page 2 of3
List Attachment(s):
12/18/2014 Town Council Meeting Minutes (excerpt)
SUGGESTED MOTION (for council use):
Move that the Town Council direct staff to proceed with the necessary ordinance and policy revisions in order
to eliminate the requirement that A-frame signs get annual permits.
Prepared by:
(Robert (Rodgers
Robert Rodgers,Senior Planner 3/4/2015
Director's Approval:
Paul Mood,Development Services Director
3/10/2015
Approved:
Ken Buchanan,Town Manager 3/11/2015
Paec3of3
Excerpt from:
TOWN OF FOUNTAIN HILLS
MINUTES OF THE REGULAR SESSION OF THE
FOUNTAIN HILLS TOWN COUNCIL
DECEMBER 18,2014
AGENDA ITEM #7 -PUBLIC HEARING REGARDING ORDINANCE #14-07,A TEXT
AMENDMENT TO THE TOWN OF FOUNTAIN HILLS ZONING ORDINANCE,CHAPTER 6,
SIGN REGULATIONS,SECTIONS 6.08.B.13 AND 6.08.D.3.THE AMENDMENTS EXTEND
THE EXPIRATION DATE TO DECEMBER 31,2015 FOR A-FRAME SIGNS AND BANNERS
FOR SPECIAL SALES EVENTS.CASE #Z2014-05
Mayor Kavanagh advisedthatthere will beone staff reportforAgendaItems#7 and#8.
The Mayor declared the public hearing open at 7:31 p.m.
Senior Planner Bob Rodgers addressed the Council relative to this agenda item and briefly reviewed the
Staff Report (copy available on line and in the office of the Town Clerk). He referred to Sections
6.08.B.13 and 6.08.D.3 (Fountain Hills Zoning Ordinance, Chapter 6, Sign Regulations) and said that the
current Sign Ordinance was adopted in 2009 and these two sign types were typically given annual
expiration dates to December 31st.He added that in 2012 the Council agreed to a two-yearextensionto
December 31,2014 and that is why they are here this evening. He showed a slide that depicted the
various extensions that have been granted by Council and said that this year's request is similar to past
requests with a one-year extension from December 31,2014 to December 31,2015.Hesaidthatstaffwas
directedbya previousTownManagerto be lenientduringthese pastcouple of years, letthingsgo and see
how these two ordinances work (A-Frame Signs and Banners for Special Sales Events). He reported that
this has resulted in continued poor compliance regarding A-Frame Signs. He advised that staff is
requesting a more pro-active approach in the future if Councildecidestonightto grant the extension.He
said that there has been no real difference in A-Frame Sign compliance and in fact it is slowly getting
worse (compliance is currently at about 20%).He added that Banner compliance is gradually getting
better and has become relatively manageable (compliance is a little over 60%).
Mr.Rodgers informed the Council that staff feels that five years is enough time to assess the business
community's abilityto self policeand abideby the A-Frame ordinances and it is apparent thattheycan't
do that. He added that the businessescommunityhas,however,begun to embracethe Banner provisions
and should probably be allowed to continue for another year.He noted that the Planning &Zoning
commission recommended an additional stipulation that the compliancerate for A-Frame Signsbe flipped
to 80%compliance ratherthan 80%non-compliance this yearor the extension nextyear should not even
be considered.He pointed outthat Draft Ordinance #14-07 lists allof those changes including Planning &
Zoning's recommendation/added stipulation and thatis also inthe Council's packets.He further stated that
staff recommends thattheCouncilapproveboththe expiration extensionsfor oneyear untilDecember31,
2015 subject to the additional stipulation that Planning &Zoning recommended and that Code
Enforcement staff be authorized to enforce the regulations a little more strictly.
Mayor Kavanagh advised that she attended the Planning &Zoning Board's meeting and she heard a lotof
discussion there and she knows they kind of passed this reluctantly because they were disturbed by the
amount of non-compliance and she was too.She said that she spoke to staff in reference to how they
handle dog and business licenses because she talked to some ofthe business owners who know that it is
only $5.00 for the sticker and they know the size ofthe A-Frame Sign they should be using and they also
know where they should be placed (there is no excuse for not doing so).She added that as far as the
Page 1 of 5
sticker they said they got busy and forgot. She stated that she was wondering if the Council might
consider some sort of notices,either in the form of robo calls or actual mailed notices,just like they do for
dog licenses (they do a renewal notice and then if necessary they do a follow up for those who haven't
paid and then a robo call). She reported that staff has advised that the robo calls actually work the best.
She expressed the opinion that they have to do something else besides send Code Enforcement personnel
out.
Mr. Rodgers pointed out that in order to get robo calls for A-Frame Signs the businesses would have to be
in the system so they will have had to have gotten a permit at least once.
Mayor Kavanagh commented that she isjust trying to achieve more compliance, assuming that they are
forgetting. She asked whether there were any violations on the digital boards and Mr. Rodgers stated that
they are not part of this permit but no there were no violations.
Councilmember Brown advised that in 2013 the number of A-Frame permits issued was 59 but
unfortunately there was no survey that year and that was the most permits ever issued and if you look at
the Banner permits in 2013 there were actually more permits issued than the Banners displayed the year
before. He asked whether there was any explanation for this.
Mr. Rodgers responded that a lot of peopleare coming in and asking about the Banner permitsand they
seem to be much more manageable.He noted that they loosened up the Banner regulations to allow for
the more promotional bannersto go up so peopleare beginningto understand thatthe Towndoes letthem
havethose banners ifthey come in and get the permits so they have been doing that.
Councilmember Brown pointedout that in 2013 39 Banner permitswere issuedand in 2014they had 17
and28 displayed with 11 violations.Hestatedthat iftheycouldfigureout what prompted the permits that
were issued in 2013 to be almost greater than the number of actual signs and banners displayed, they
might be able to find a sensible solution to the problem.
Mr.Rodgers said that his expectation would be that enforcement in 2012 is what prompted the 2013
compliance (they had enforcement thenbutitwasslack—thatwasaftertheyhad77%non-compliance).
Councilmember Brown noted that the definition of insanity is doing the same thing year after year after
year and expecting a different solution and so far he is not seeingany of this and he certainly does not
have any recommendations for staff or the Council on howto resolve.He added that it is a shame that
whenthey had them off the streets they letthem put them backon.
Mayor Kavanagh asked if they all expire the same time and Mr.Rodgers said yes,it is an annual
expiration at the end of each year (December 31st).
Councilmember Leger commented thatheis certainly in favor of extending thisfor another year under the
conditions that have been stated.He pointed out that they do havean enforcement policy and he would
strongly recommend thatthey begin enforcing that policy and noted thatthis is being recommended by
staff as well. He said that when they look at the numbers provided by Mr. Rodgers they are quite
revealing -- of the 104 violations that were reported,77of those were related to either signs not having
permits or having outdated permits.He stated thathe agrees with the Mayor in that they probably need to
look at that particular process.He added that he would like to suggest that in addition to the staffs
recommendations that they also place as part of their motion a stipulation that staff has 90 days for
example to come back with a recommendation in terms of enhancing permitting.He noted that in essence
the 77 violations consist of signsthat don't have permits and are completely illegal and others that have
permits but they are outdated.He advised that he had an opportunity to speak with stafftoday and they do
have a process in place today --they use the Munis System annually for notifying businesses that they
Page 2 of 5
need to renew their business licenses. He said that if they could dovetail onto that and have an additional
criteria on there, for example,"Do you currently have an A-Frame" and if they do the annual business
license is $35.00 and if they indicated that they have an A-Frame sign they would be charged an
additional $5.00. He pointed out that it would go along with this annual process that they engage in with
re-establishing businesses licenses.
Councilmember Leger further stated that anyone who has history of the Town knows that the permitting
fee doesn't even cover the Town's costs and the reason for that was education ~ it was an opportunity for
people once a year to come back, go to the counter and receive education.He expressed the opinion that
that is not a user-friendly process and he would like to see a different system in place. He added that if
they could tag this along with the business license renewal process, when they are sending back the
business license they could attach bullet points that indicate some of the requirements. He stated that he
agrees with Councilmember Brown in that if they always do what they have always done they will always
get what they have always got and he thinks that enforcement is really going to help with the issues. He
said that permitting will always be an inconvenience for businesses. He recommended that they give staff
some time to come back with a recommendation for how to deal with permitting and he just used a
specific example that he believes would be user friendly and not burden staff.
Councilmember Magazine advised that all of them whether they were members of the SPAC (Strategic
PlanningAdvisoryCommission)or this Council they are very much in favor of economic development
and want to see more businesses in Town and the retail establishments become extremely successful. He
statedthat he is concerned that apparently the Town has a reputation of not being business friendly and he
has heard this from a lot of people but he has never heard any specifics and he would like to hear them.
He noted that he is in favor of Planning & Zoning's recommendation but with some trepidation. He
expressed the opinion that the A-Frame Signs do nothing to enhance the beauty of their Town and he
doesn't know whether they work. He said that he has talked to several store owners and managers and
what he got in response was a very wishy-washy "well, we kind of think they help." He stated that he
doesn'tthink they will ever be able to measurethat but it is an issue. He pointedout that they have one
Code Enforcement Officer and asked whether they can really expect one person with that kind of
workload in a Town of 23,000 to go around to the numerous retail establishments —can one individual
really have an impact on bringing about any change?He added that he agrees with the other
Councilmemberswho have said that doing the same thing over and over again is just a big waste of time.
He stated that he also wonders whether the Chamber has been involved in any way ~ has staff called
upon the Chamber to be active with regard to trying to impress upon their membership the importance of
complying with signage regulations?
Mr.Rodgers responded that that is oneof the things thatthe Chamber said thatthey would do when the
ordinance was adopted and at least get their membership up to speed on this. He added that they were
provided with a number of fliers and things like thatbut there haven't been any meetings with them since
then.
Councilmember Magazine advised thathe would suggest thatstaff follow upwiththe Chamber as well as
the BusinessAllianceand tell them how importantthis is. He stated that he assumes that Council is going
to approve thisfor one more year with the stipulation placed on it by Planning &Zoning andhe thinks
they have to know thatthisis pretty serious and regulations are passed fora reason.Hesaidhe thinks that
bothofthose organizations coulddo a wholelotmorethantheyhave apparently done.
Mayor Kavanagh commented thatas they all know,the Chamber hasa new Chief Executive Officer and
she hasmetwith himseveraltimes and he seemsextremelywillingto help. She addedthat shethinks it is
a really great suggestion that they reach outto Scott and John from the Business Alliance.She asked
whetherthere are other staff members who assist Roy in his enforcement efforts.
Page 3 of 5
Mr.Rodgersrepliedthat thereare a few other peoplewhoare authorizedCode Officers—an Engineering
Officer, a Building Code Officer ~ and they are all authorized as Code Officers but they have their own
little specialties.He statedthat they could be part of a task force for a couple of weeksto helpout and do
that.
Mayor Kavanagh asked whether three months would be an adequate timefor staffto get upto speed on
this as recommendedbyCouncilmemberLegerand Mr. Rodgersresponded probably.
Councilmember Legerclarifiedthat he suggested threemonthsto comebackwitha recommendation and
addedthat he thinks it is important becausewhen they really look at this and how largethe problem is,
75% of it is with permitting and if they can automate that then they can reducethe amountof stafftime
spenton this.Hesaidthathe willgivethe benefitof the doubtto the business owners andsay maybe the
current process of having to come in is notthat business friendly.He added that perhaps staffwill come
back in three months and tell the Council how perhaps they can dovetail the automated business license
renewal process which runs pretty smoothly.
Mayor Kavanagh advised that she knows staff is working on waysto improve that and added that one
staff member saidthat theyare working on the robocallsthat nowwill go out a coupleof weeks before
anything is due so thattheyget a head starton a reminder that their business license or dog license is
comingupfor renewal ratherthanwaitinguntilafterwards.
Councilmember Magazine stated that he is a little concerned that with one Code Officer and the
possibility ofa few others helping out and asked what does that mean that they won't be doing (carrying
out their regular responsibilities).He pointed out that he doesn't have a real feel for all of their
responsibilities and if this is just a one-time sweep then it is certainly worth doing but if it requires
ongoing vigilance it probably will mean that people arenot doing some other things that they need tobe
doing particularlywith a small staff.
There were no citizens wishing to speak on these agenda items
Councilmember Hansencommentedthat havingbeenon the most previousSign Committeethere werea
number of business owners who really spoke to how they personally saw that A-frames helped their
business -- bythe ability to putout daily specials for example,they had a lotof good examples of how
this had a positive impact.She stated that hopefully with Mr.Rodgers'help they will start getting the
wordout therethat enforcement,whichwas relaxedfor quite sometime, is no longergoingto be relaxed;
she doesn't think it will takea lotof people having their signs picked upor being fined to getthe word out
inthe community andthe business community thatthey need to start being a little more careful because
the Town is starting to enforce the ordinance.She further stated thatif they have an ordinance in place
then itis their responsibility to enforce it regardless ofstaff numbers.She added that as Mr.Rodgers said,
someoftheotherscan double taskand iftheyareoutandtheyseea violation,it isnota big production to
just pay a call onthe business owner and start being a little more outinthe community.
Mayor Kavanagh also stressed the importance of being fair to the members of the business community
who are complying and say itis not fair that they are following all of the rules and no one else is so why
should they bother doing itso then they start losing more and more people who are complying.
Councilmember Brown advised that they continually hearthat the Town of Fountain Hills is business
unfriendly and said that he thinks they are one of the most business friendly towns in the State of Arizona.
He pointed out that they reach out to their businesses,help them,watch out for them and attempt every
time to do what isbestfor them.He reported thathehas 2,080 hours logged on sign committees overthe
Page 4 of 5
last ten years and so far they have not resolved the A-Frame Signs. He added that they are not a business
unfriendlyTown and they need to stop talking about it, quit publishing it and start turning that statement
around to "Hey listen, we are a business-friendly Town and we are working with our people and we want
you to come to Town."He recommended that they turn that one comment around.He stated that as far as
the A-Frames Signs, he agrees with the Mayor that they should not be punishing or shaking their fingers
at the guys who are truly doing it right —they need to be enforcing their ordinance,it is the law and they
need to turn it around.
Mayor Kavanagh declared the public hearing closed at 7:54 p.m.
AGENDA ITEM #8,CONSIDERATION OF ORDINANCE #14-07,A TEXT AMENDMENT TO
THE TOWN OF FOUNTAIN HILLS ZONING ORDINANCE,CHAPTER 6,SIGN
REGULATIONS,SECTIONS 6.08.B.13 AND 6.08.D.3.THE AMENDMENTS EXTEND THE
EXPIRATION DATE TO DECEMBER 31,2015 FOR A-FRAME SIGNS AND BANNERS FOR
SPECIAL SALES EVENTS.CASE #Z2014-05
For discussion of this Agenda Item please see Agenda Item #7 above.
Councilmember Leger MOVED to approve staffs recommendations including Planning & Zoning's
recommendations to adhere to enforcement policy or existing policy and also add a stipulation that staff
comes back with a recommendation for the Council regarding revising,enhancing or streamlining the
permitting process and Councilmember Brown SECONDED the motion, which CARRIED
UNANIMOUSLY (7-0).
Page 5 of 5
TOWN OF FOUNTAIN HILLS
TOWN COUNCIL
AGENDA ACTION FORM
Meeting Date:3/19/15 Meeting Type:Regular Session
Agenda Type:Regular Submitting Department:Administration
Staff Contact Information:Ken Buchanan,Town Manager,480-816-5130,kbuchanan@fh.az.gov
Strategic Priority:All Council Goal:All
REPORT TO COUNCIL (Agenda Language):PRESENTATION AND DISCUSSION of a LETTER OF INTENT
from the Strategic Planning Advisory Commission regarding a potential update to Strategic Plan
2010.
Applicant:NA
Applicant Contact Information:NA
Property Location:NA
Related Ordinance,Policy or Guiding Principle:
Staff Summary (background):Strategic Planning Advisory Commission (SPAC) bylaws state,under
Section ll(E),that the commission shall have the power and duty to,"Update the Strategic Plan at least once
every five years dependant on appropriations by the Town Council." SPAC will present the attached Letter of
Intent regarding a potential update.Ajoint meeting between Council and SPAC has been scheduled on
March 31,2015,at 5:30 p.m. in Council Chambers to discuss the potential update process.If appropriate after
the jointmeeting, SPAC will bringthe matter back to Councilat a regular meeting for possible directionand
funding.
Risk Analysis (options or alternatives with implications):NA
Fiscal Impact (initial and ongoing costs;budget status):NA
Budget Reference (page number):NA
Recommendation(s)by Board(s)or Commission(s):NA
Staff Recommendation(s):NA
Attachment(s):Letter of Intent to Mayor and Town Council from Peter Bordow,Chair of the Strategic
Planning Advisory Commission,dated March 2,2015,regarding a potential 5-year update to Strategic
Plan 2010.
SUGGESTED MOTION (forCouncil):
Approved:
oj^s 2iMJS
Ken Buchanan,Town Manager Date
lofl
Town of FOUNTAIN HILLS
March 2,2015
Mayor and Town Council
Town of Fountain Hills
16705 East Avenue of the Fountains
Fountain Hills,AZ 85268
Re:Letter of Intent for five-year update of the Strategic Plan
Dear Mayor and Town Council:
As part of the annual strategic planning process,the Strategic Planning Advisory
Commission (SPAC) identified and communicated our recommended strategic priorities
for the 2015/2016 fiscal year.
As you know, this year SPAC Commissioners are also tasked with considering the more
substantial five-year update to our Town's Strategic Plan. To that end,SPAC
commissioners have performed a detailed assessment of the current plan, paying special
attention to content,organization,structure,usability,and overall value.As was done in
the 2010 five-year update process,SPAC Commissioners have spent considerable time
discussing this effort.
After a number of extended meetings and discussions,the Commission unanimously
agreed that the current (2010)Strategic Plan offers significant opportunity for revision,
refocus,and restructuring as part of the 2015 five-year update process.
Before embarking on this critical and lengthy update process,SPAC Commissioners also
unanimously agreed to present and request agreement of the conceptual approach we so
strongly recommend for the 2015 update of the Strategic Plan.Following are the key
conceptual points the Commissioners feel are central to our approach in creating a
valuable,workable 2015 strategic document for the Town.
1.The current 2010 Strategic Plan reads as a very long-term, almost unobtainable
vision document.Its focus is almost exclusively centered on a wide field of vision
16705 E.Avenue of the Fountains -Fountain Hills,Arizona 85268 -(480)816-5100 - Fax (480)837-3145
Mayor and Town Council
Page2
March 2,2015
and values that provide a general framework to describe our Town.It does not
delineate or describe specific,obtainable goals and measurable outcomes.
2.An updated, restructured 2015 planshould:
o Provide a long-term vision and clear articulation of our Town's core
values and commitments as atextual context and underpinning forthe
strategicgoals.
o Define,present,andclearly articulate specific shorter-term strategic goals
- extending goalsandmeasuresno farther than five to eight years;
o Include only high-priority goalsthat can be accomplished in that five to
eight year period.
o Create,leverage,and include inthe planadecision matrix that clearly
illustratesthe factors and measures used to identify and prioritize the
stated five to eight year goals. This should include risk, reward, cost, and
accountability details.
o Createand include specific measurable metrics and success criteriafor
each stated goal.
The Commission also wants to underline its commitment to developing a cost-effective,
inclusive, andcomprehensive StrategicPlanupdate processthat actively engagesour
citizens,business community,and stakeholders for input and feedback. The SPAC
Commissioners are very excited and honored to lead this effort.
On behalf of all commissioners,thank you for your time and consideration.
Peter Bordow
Chair, Strategic Planning Advisory Commission
cc:Town Manager Ken Buchanan
16705 E. Avenue of the Fountains - Fountain Hills, Arizona 85268 - (480)837-2003-Fax (480)837-3145
TOWN OF FOUNTAIN HILLS
TOWN COUNCIL
AGENDA ACTION FORM
Meeting Date:3/19/2015 Meeting Type:Regular Session
Agenda Type:Regular Submitting Department:Development Services
Staff Contact Information:Robert Rodgers,Senior Planner rrodgers@fh.az.com 480-
816-5138
Strategic Planning Goal:
Not Applicable (NA)Operational Priority:Not Applicable (NA)
REQUEST TO COUNCIL (Agenda Language):
CONSIDERATION of ORDINANCE #15-01,amending the Fountain Hills Town Code,Chapter 1,
General Regulations,Section 1-8-3(D),relating to the service of Civil Citations.
Applicant:Town of Fountain Hills Development Services Department
Applicant Contact Information:Robert Rodgers,Senior Planner 480-816-5138
Property Location:Town-Wide
Related Ordinance,Policy or Guiding Principle:
Fountain Hills Town Code Chapter 1 -General Regulations
Staff Summary (background):
Code Enforcement has encountered a number of instances in which out of state property owners
and/or business owners have not been cooperative or responsive to requests for compliance with the
Town's codes or ordinances.The proposed amendments will allow the Code Officer to leave a
citation with any responsible adult on the property or place of business rather than being required to
mail a citation to non-local locations in an attempt to cite the owner of the property or business who in
some cases is a corporation rather than a person.
Risk Analysis (options or alternatives with implications):NA
Fiscal Impact (initial and ongoing costs;budget status):NA
Budget Reference (page number):NA
Funding Source:NA
If Multiple Funds utilized,list here:NA
Budgeted;if No,attach Budget Adjustment Form:NA
Recommendation(s)by Board(s)or Commission(s):NA
Page 1 of 2
ORD #15-01
Civil Citations
Staff Recommendation(s):
Staff recommends approval of ORD #15-01,amending the Fountain Hills Town Code,Chapter 1,
General Regulations,Section 1-8-3(D),relating to the service of Civil Citations,as presented.
List Attachment(s):
Ordinance #15-01
SUGGESTED MOTION (for Council use):
Move to approve ORD #15-01,amending the Fountain Hills Town Code,Chapter 1,General
Regulations,Section 1-8-3(D), relating to the service of Civil Citations,as presented.
Prepared by:
(Robert (Rodgers
Robert Rodgers,Senior Planner 3/9/2015
Director's Approval;
Palil Mp6d,Development Services Director 3/10/2015
Approved:
Ken Buchanan,Town Manager 3/11/2015
Page 2 of 2
2317143.2
ORDINANCE NO. 15-01
AN ORDINANCE OF THE MAYOR AND COUNCIL OF THE TOWN OF
FOUNTAIN HILLS, ARIZONA, AMENDING THE TOWN OF FOUNTAIN
HILLS TOWN CODE, CHAPTER 1, RELATING TO CIVIL CITATIONS.
BE IT ORDAINED BY THE MAYOR AND COUNCIL OF THE TOWN OF
FOUNTAIN HILLS as follows:
SECTION 1. The Fountain Hills Town Code, Chapter 1 (General), Article 1-8
(Penalty), Section 1-8-3 (Civil Penalty Provisions), Subsection 1-8-3(D) (Civil Citations), is
hereby amended as follows:
D. Civil Citations.
1. Unless otherwise designated as a criminal offense, if a violation continues past the
compliance time set forth in the notice of violation, a civil citation may be issued
to the person or entity responsible for the violation.
2. A civil citation may be issued by the Town Manager or authorized designee.
3. The civil citation shall include the date of the violation, a reference to the
sections(s) violated and, if applicable, the location of the property or site at issue.
4. The civil citation shall direct the defendant to pay the fine imposed pursuant to
subsection 1-8-3(E) below or appear in the Fountain Hills Municipal Court within
ten days of issuance of ON THE DATE NOTED ON the citation, WHICH DATE
SHALL NOT BE LESS THAN TEN DAYS AFTER CITATION ISSUANCE.
5. The civil citation shall provide notice that if the defendant fails to pay the fine or
appear in the Fountain Hills Municipal Court as directed, a default judgment will
be entered in the amount of the fine designated on the citation for the violation.
In addition, a default fee may be imposed for failure to appear.
6. Service of the citation may be accomplished and will be deemed proper and
complete by any of the following methods:
a. Hand delivering the citation to the defendant. IF THE DEFENDANT IS
A BUSINESS, SERVICE MAY BE BY HAND DELIVERY TO THE
BUSINESS OWNER, ANY ADULT MANAGER OF THE BUSINESS,
OR ANY ADULT EMPLOYEE OF THE BUSINESS.
b. Mailing a copy of the citation by certified or registered mail, return receipt
requested, to the defendant's last known address. IF THE DEFENDANT
IS A BUSINESS, SERVICE MAY BE BY CERTIFIED OR
2317143.2
2
REGISTERED MAIL, RETURN RECEIPT REQUESTED, TO THE
CURRENT BUSINESS ADDRESS.
c. Any means allowed by the Arizona Rules of Civil Procedure for the
Superior Courts of Arizona.
SECTION 2. If any section, subsection, sentence, clause, phrase or portion of this
Ordinance is for any reason held to be invalid or unconstitutional by the decision of any court of
competent jurisdiction, such decision shall not affect the validity of the remaining portions of
this Ordinance.
SECTION 3. The Mayor, the Town Manager, the Town Clerk and the Town Attorney
are hereby authorized and directed to execute all documents and take all steps necessary to carry
out the purpose and intent of this Ordinance.
PASSED AND ADOPTED BY the Mayor and Council of the Town of Fountain Hills,
March 19, 2015.
FOR THE TOWN OF FOUNTAIN HILLS: ATTESTED TO:
Linda M. Kavanagh, Mayor Bevelyn J. Bender, Town Clerk
REVIEWED BY: APPROVED AS TO FORM:
Kenneth W. Buchanan, Town Manager Andrew J. McGuire, Town Attorney
TOWN OF FOUNTAIN HILLS
TOWN COUNCIL
AGENDA ACTION FORM
Meeting Date:3/19/2015 Meeting Type:Regular Session
Agenda Type: Regular Submitting Department:Administration
Staff Contact Information:Craig Rudolphy,Finance Director,480-816-5162,crudolphy@fh.az.gov
Strategic Planning Goal:NotApplicable (NA)Operational Priority:NotApplicable (NA)
REQUEST TO COUNCIL (Agenda Language):CONSIDERATION of RESOLUTION 2015-08 amending and restating
the Town of Fountain Mills Financial Policies.
Applicant:
Applicant Contact Information:
Property Location:
Related Ordinance,Policy or Guiding Principle:Financial Policies
Staff Summary (background): The Town originally adopted Financial Policies by Resolution 2003-14. A Debt
Policy was adopted with Resolution 2003-50 and the funding and use ofthe Capital Improvement Program was
added with Resolution 2005-50.The establishment of the Rainy Day Fund occurred in Resolution 2009-05 and
the distribution of construction sales tax was made in Resolution 2010-16.A separate amendment to the
Investment Policy was adopted in Resolution 2010-21;GASB Statement 54 compliancewas added in
Resolution 2012-02.New Issuance and Post-Issuance Compliance Procedures were created with Resolution
2014-03.
The following are a few ofthe more significant proposed revisions:1)change the Rainy Day Fund from 10%or
30 days of operating expensitures to20%ofthe average actual General Fund revenues for the preceding five
fiscal years, 2)add a newsectionon Cash Handling,and 3)revisethe ratio of privilege tax/excise taxto debt
servicegoal from 3.5:1 to 2.5:1.The attachmentcontains a recap ofthe significant changes that are proposed
to be made to the Financial Policies, through the adoption ofthe Financial Policies,as amended and restated.
Risk Analysis (options or alternatives with implications):Council has never adopoted a Cash Handling policy
that will impact how employees process receipts.Lack ofa policy could result in cash shortages.Increasing
the Rainy Day Fund balance will provide a better reserve should the Town find itself with financial difficulties.
Fiscal Impact (initial and ongoing costs;budget status):None
Budget Reference (page number):N/A
Funding Source:NA
If Multiple Funds utilized,list here:
Budgeted;if No,attach Budget Adjustment Form:NA
Recommendation(s)by Board(s)or Commission(s):
Page 1 of 2
Staff Recommendation(s):Adopt the Financial Policies
List Attachment(s):Resolution 2015-08 -Financial Policies as amended and restated,Recap of Significant
Changes to Financial Policies
SUGGESTED MOTION (for council use):Move to approve RESOLUTION 2015-08,amending and restating the
Town of Fountain Hills Financial Policies dated March 19,2015.
Prepared by:
NA 8/1/2011
Director's Approval/;toK's Approval^«r\/}
Ia%{JuMmu
Rudolph*,Finance Directo?/Craig Rudolph/,Finance Director /3/10/2015
ApproJ/ed:
Ken Bi/chanan,Town Manager 3/10/2015
Page 2 of 2
Recap of Significant Changes to Financial Policies
•Removed reference to ten key ratios of financial condition from 1993
• Redefined fund balance to correspond with current GASB standards
•Changed Rainy Day fund from 10%or30 days of operating expenditures to 20%of average
actual General Fund revenues for the preceding five fiscal years
•Removed requirementof approval by Town Council forthe useofthe 10%assigned fund
balance because Town Council already delegated the authority tothe Finance Director to assign
fund balances and nonspendable items via Resolution 2012-02 (and as may be amended by
Town Council in the future)
• Rewrote Excise Tax Fundsbyremovingspecificreference to source offundingto maintain
flexibility for designation byTown Council to specificsources
• Amended policy to reflectcurrent allocation ofconstructionsalestaxto 50%beingtransferred
to Capital Projects Fund monthly,versus85%of revenues transferred annually
•Added newsection on Cash Handling Policy to establishinternal controlsto safeguardthe
Town's cash
• Revised Debt Policyto remove outdated list of projects relevant to a town's constitutional debt
limit,referring to the constitution itselfto capture any future changes to the constitution
• Revised privilege/excise tax to debt service goal from 3.5:1 to 2.5:1
•Revised allowablemethods for issuanceofobligationsto correspond withstate law,subject to
Town Council approval before issuance
2312543.2
2068044.3
RESOLUTION 2015-08
A RESOLUTION OF THE MAYOR AND COUNCIL OF THE TOWN OF
FOUNTAIN HILLS, ARIZONA, ADOPTING THE TOWN OF FOUNTAIN
HILLS FINANCIAL POLICIES, AMENDED AND RESTATED MARCH 19,
2015.
WHEREAS, the Mayor and Council of the Town of Fountain Hills (the “Town
Council”) approved Resolution No. 2003-14, adopting the Town of Fountain Hills Financial
Policies (the “Original Financial Policies”) to establish the framework for the Town’s fiscal
planning and management; and
WHEREAS, pursuant to Resolution No. 2003-50, the Original Financial Policies were
amended on August 21, 2003 (the “2003 Amended Financial Policies”) to include the Town’s
debt policy as reserved under the Original Financial Policies; and
WHEREAS, pursuant to Resolution No. 2009-05, the 2003 Amended Financial Policies
were amended and restated on June 18, 2009 (the “2009 Amended Financial Policies”) to
incorporate Rainy Day Fund procedures and to make other technical corrections; and
WHEREAS, pursuant to Resolution No. 2010-16, the 2009 Amended Financial Policies
were amended on June 17, 2010 (the “2010 Amended Financial Policies”) to modify the sales tax
revenues allocation for the Capital Projects Fund; and
WHEREAS, pursuant to Resolution No. 2012-02, the 2010 Amended Financial Policies
were amended and restated on June 7, 2012 (the “2012 Amended Financial Policies”) to adopt
financial policies consistent with, and to implement, Governmental Accounting Standards Board
Statement 54 requirements; and
WHEREAS, the Town Council desires to further amend the 2012 Amended Financial
Policies to incorporate the Town’s separate cash handling policies and to update certain
provisions of the Town’s debt policy.
NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND COUNCIL OF
THE TOWN OF FOUNTAIN HILLS as follows:
SECTION 1. The recitals above are hereby incorporated as if fully set forth herein.
SECTION 2. The document known as Town of Fountain Hills Financial Policies,
Amended and Restated March 19, 2015 (the “Amended and Restated Financial Policies”) is
hereby adopted in substantially the form and substance attached hereto in Exhibit A and
incorporated herein by reference.
SECTION 3. The Mayor, the Town Manager, the Town Clerk and the Town Attorney
are hereby authorized and directed to take all steps necessary to carry out the purpose and intent
of this Resolution.
2068044.3
2
PASSED AND ADOPTED BY the Mayor and Council of the Town of Fountain Hills,
Arizona, March 19, 2015.
FOR THE TOWN OF FOUNTAIN HILLS: ATTESTED TO:
Linda M. Kavanagh, Mayor Bevelyn J. Bender, Town Clerk
REVIEWED BY: APPROVED AS TO FORM:
Kenneth W. Buchanan, Town Manager Andrew J. McGuire, Town Attorney
2068044.3
EXHIBIT A
TO
RESOLUTION 2015-08
[Amended and Restated Financial Policies]
See following pages.
2044898.6
TOWN OF
FOUNTAIN HILLS
FINANCIAL POLICIES
Amended and Restated March 19, 2015
2044898.6
i
Table of Contents
I. INTRODUCTION .............................................................................................................. 1
II. OVERALL GOALS............................................................................................................ 1
2.1 Fiscal Conservatism ......................................................................................................... 1
2.2 Maintaining Bond Rating ................................................................................................. 1
2.3 Stability ............................................................................................................................ 1
2.4 Delivering Quality Services ............................................................................................. 1
III. FUND BALANCE .............................................................................................................. 2
3.1 Fund Balance Categories. ................................................................................................ 3
3.2 General Fund. ................................................................................................................... 4
3.3 Special Revenue Funds. ................................................................................................... 6
3.4 Debt Service Funds. ......................................................................................................... 6
3.5 Capital Projects Fund. ...................................................................................................... 7
IV. FINANCIAL PLANNING.................................................................................................. 7
4.1 Adopting Budget.. ............................................................................................................ 7
4.2 Budget Preparation........................................................................................................... 7
4.3 Operating Budget. ............................................................................................................ 8
4.4 Revenue Sources .............................................................................................................. 8
4.5 Revenue Estimate............................................................................................................. 8
4.6 Staffing ............................................................................................................................. 8
4.7 Budget Preparation Schedule ........................................................................................... 8
4.8 Performance Measurement .............................................................................................. 8
4.9 Efficiency Analysis. ......................................................................................................... 9
4.10 Department Responsibility............................................................................................... 9
4.11 Quarterly Report. ............................................................................................................. 9
4.12 Deficit.. ............................................................................................................................ 9
V. EXPENDITURE CONTROL ............................................................................................. 9
5.1 Budgeted Expenditures .................................................................................................... 9
5.2 Purchasing System and Policies....................................................................................... 9
5.3 Internal Controls. ............................................................................................................. 9
5.4 State Expenditure Limit. .................................................................................................. 9
5.5 Capitalized Assets .......................................................................................................... 10
VI. REVENUES AND COLLECTIONS ................................................................................ 10
6.1 Balanced Revenue Base ................................................................................................. 10
6.2 Stable Revenue Base. ..................................................................................................... 10
6.3 Monitoring Collection. ................................................................................................... 10
6.4 Intergovernmental Aid ................................................................................................... 10
6.5 Cost Recovery ................................................................................................................ 10
6.6 Growth Revenues.. ......................................................................................................... 11
VII. USER FEE COST RECOVERY ...................................................................................... 11
7.1 Establishing Fees ........................................................................................................... 11
7.2 Recalculation.................................................................................................................. 11
2044898.6
ii
VIII. CASH HANDLING POLICY .......................................................................................... 11
8.1 Individual Responsibilities............................................................................................. 11
8.2 Establishing Cash Handling Sites. ................................................................................. 12
8.3 Procedures for Cash Collection. .................................................................................... 12
8.4 Receipts. ......................................................................................................................... 13
8.5 Cash Received in Person. ............................................................................................... 14
8.6 Cash Received Through the Mail. ................................................................................. 16
8.7 Check Acceptance. ......................................................................................................... 16
8.8 Credit Card Acceptance. ................................................................................................ 18
8.9 Balancing of Cash Receipts. .......................................................................................... 18
8.10 Cash Over & Short. ........................................................................................................ 19
8.11 Returned Check Procedures. .......................................................................................... 20
8.12 Preparation of Deposits (performed by the Finance Division). ..................................... 21
8.13 Exceptions to Cash Handling Policy.............................................................................. 21
8.14 Records Retention .......................................................................................................... 21
IX. DEBT POLICY ................................................................................................................. 22
9.1 General. .......................................................................................................................... 22
9.2 Capital Improvement Plan. ............................................................................................ 22
9.3 Financing Alternatives. .................................................................................................. 25
9.4 Issuance of Obligations. ................................................................................................. 27
2044898.6
1
I. INTRODUCTION
The Mayor and Town Council (the “Town Council”) of the Town of Fountain Hills (the
“Town”) understands that principles of sound financial management establish the framework for
overall fiscal planning and management. The principles set forth guidelines for both current
activities and long range planning. Following these principles will enhance the Town’s financial
health as well as its image and credibility with its citizens, the public in general, bond rating
agencies and investors. The policies will be reviewed periodically to assure the highest standards
of fiscal management. Policy changes will be needed as the Town continues to grow and
becomes more diverse and complex in the services it provides, as well as the organization under
which it operates, to provide these services to its citizens. The Town Manager and staff have the
primary role of reviewing and providing guidance in the financial area to the Town Council.
II. OVERALL GOALS
The overall financial goals underlying these principles are:
2.1 Fiscal Conservatism. To ensure that the Town is, at all times, in a solid financial
condition, defined as:
A. Cash solvency – the ability to pay bills.
B. Budgetary solvency – the ability to balance the budget.
C. Long run solvency – the ability to pay future costs.
D. Service level solvency – the ability to provide needed and desired services.
E. Adhering to the highest accounting and management practices as well as the
financial reporting and budgeting standards established by the Government
Finance Officers Association, by the Governmental Accounting Standards Board
(GASB) and by other professional organizations.
2.2 Maintaining Bond Rating. To maintain an Aa3 or better bond rating in the financial
community to assure the Town taxpayers that the Town government is well managed and
financially sound.
2.3 Stability. To have the ability to withstand local and regional economic fluctuations, to
adjust to changes in the service requirements of our community, and to respond to
changes in Federal and State priorities and funding as they affect the Town’s residents.
2.4 Delivering Quality Services. To deliver quality services in an affordable, efficient and
cost-effective basis providing full value for each tax dollar.
2044898.6
2
III. FUND BALANCE
Fund balance is defined as the cumulative difference of all revenues and expenditures, also
considered the difference between a fund’s assets and deferred outflows of resources and its
liabilities and deferred inflows of resources. The purpose of this policy is to establish a key
element of the financial stability of the Town by setting guidelines for fund balance. It is
essential that the Town maintain adequate levels of fund balance to mitigate financial risk that
can occur from unforeseen revenue fluctuations, unanticipated expenditures and similar
circumstances. The fund balance also provides cash flow liquidity for the Town’s general
operations. Fund balance is an important indicator of the Town’s financial position and adequate
reserves must be maintained to allow the Town to continue providing services to the community
during periods of economic downturns and/or unexpected emergencies or requirements.
The level of fund balance is related to the degree of uncertainty that the Town faces. A prudent
level of financial resources is necessary to protect against the need to reduce service levels or
raise taxes and fees due to temporary revenue shortfalls or unpredicted one-time expenditures.
With the Town dependency upon State shared income and State sales tax revenues for
approximately one third of the General Fund budget, there is increased opportunity for
fluctuation. Additionally, a significant portion of Town revenue is received from sales taxes –
both state shared and local – which are sensitive to fluctuations in the economy. Therefore, the
level of reserves needs to be sufficient to ensure stability in ongoing government operations
during a slowdown in the economy or legislative changes to the revenue sharing formula.
Fund balance is one of the most widely used elements of state and local government financial
statements by (1) municipal bond analysts through credit reviews and ratings, (2) taxpayer
associations, (3) research organizations and oversight bodies, (4) state, county and local
legislators and officials, (5) financial statement users and (6) reporters.
Other objectives that influence the size of the fund balance are:
1. Credit reviews performed by municipal bond analysts.
2. Preserving or improving the Aa3 bond rating.
3. Maintaining a positive trend to historical fund balances.
4. Maintaining a rating equal to or better than surrounding communities.
The Governmental Accounting Standards Board (“GASB”) has found that usefulness and value
of fund balance information provided is significantly reduced by misunderstandings regarding
the message that it conveys and the inconsistent treatment and financial reporting practices of
governments. GASB issued a pronouncement, GASB Statement No. 54 (“GASB 54”), which
applies to all financial reports of all state and local governmental entities; GASB 54 intended to
improve financial reporting by providing fund balance categories and classifications that will be
more easily understood.
2044898.6
3
3.1 Fund Balance Categories. An accounting distinction is made between portions of fund
balance that are spendable and nonspendable. These portions are broken into five
categories:
(A) Nonspendable fund balance—Includes amounts either not in spendable form or
legally or contractually required to be maintained intact. This amount includes
inventory, prepaids, and non-current receivables such as long-term loan and notes
receivable and property held for resale (unless the proceeds are restricted,
committed or assigned).
(B) Restricted fund balance— Includes amounts that are either (1) externally
imposed by creditors (such as through debt covenants), grantors, contributors, or
laws or regulations of other governments or (2) imposed by law through
constitutional provisions or enabling legislation. Restricted fund balance means
“restricted net assets” as defined in the government-wide Statement of Net Assets,
GASB Statement No. 34, as amended by GASB Statement No. 46.
(C) Committed fund balance—Includes amounts that are committed for specific
purposes by formal action of the Town Council. Amounts classified as
“committed” are not subject to legal enforceability like restricted fund balance;
however, those committed amounts cannot be used for any other purpose unless
the Town Council removes or changes the limitation by taking the same form of
action it employed to previously impose the limitation. The action to commit fund
balances must occur prior to year end; however, actual amounts can be
determined in the subsequent period.
(D) Assigned fund balance—Includes amounts that are intended by the Town to be
used for specific purposes, but are neither restricted nor committed. Intent should
be expressed by the Town Council itself or a subordinate high-level body or
official possessing the authority to assign amounts to be used for specific
purposes in accordance with policy established by the Town Council. This
assignment would include any activity reported in a fund other than the General
Fund that is not otherwise restricted more narrowly by the above definitions. The
Town is not allowed to assign balances that result in a residual deficit.
(E) Unassigned fund balance—Includes any remaining amounts after applying
categories (A)-(D) above (amounts not classified as nonspendable, restricted,
committed or assigned). Planned spending in the subsequent year’s budget would
be included in the unassigned fund balance category. The General Fund is the
only fund that will report a positive unassigned balance.
2044898.6
4
3.2 General Fund.
The fund balance of the Town General Fund may consist of up to five components, as
described previously. In order to satisfy the objective of maintaining a bond rating equal
to or better than surrounding peer communities, a combined General Fund operating fund
balance of at least 30% of revenues is recommended.
A. Committed Fund Balance. The Town will maintain a committed fund balance in
the General Fund of 20% of the average actual General Fund revenues for the
preceding five fiscal years, indicating stable fiscal policies. The maintenance of
this fiscal balance is a particularly important factor considered by credit rating
agencies in their evaluation of the credit worthiness of the Town. It is of primary
importance that the Town’s credit rating be protected.
(1) Rainy Day Fund to be Maintained. As a component of the Committed
fund balance, the Town will maintain a Rainy Day Fund, separate and
apart from the Unassigned General Fund, which shall be designated for
use in the event of an unanticipated expenditure or loss of revenue. The
Rainy Day Fund balance at the end of any fiscal year will be equal to a
minimum of 20% of the average actual General Fund revenues for the
preceding five fiscal years. This contingency will provide for the
temporary financing of an unforeseen nature for that year. Expenditures
for these emergency or unforeseen appropriations can only be undertaken
with Town Manager approval and only if funds are not available in the
department requesting the contingency funding.
(2) Guidelines for Rainy Day Fund. In order to achieve the objectives of this
policy, and to maintain sufficient working capital and a comfortable
margin of safety to address emergencies and unexpected declines in
revenue without borrowing, the following guidelines shall be adhered to
by the Town Manager, Town staff and Town Council:
(a) Deposit Rules. At the end of each fiscal year, the Town Council
shall transfer 5% of any surplus revenues (before transfers to the
Capital Projects Fund) to the Rainy Day Fund. Deposits shall be
made as set forth herein until the Rainy Day Fund balance is equal
to at least 20% of the average actual General Fund revenues for the
preceding five fiscal years.
(b) Use Rules. Rainy Day Funds may only be expended for any one of
the following purposes or under the following circumstances:
(i) To replace the loss of more than 25% of the Town’s local
share of State shared revenues received pursuant to ARIZ.
REV. STAT. § 43-206.
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(ii) For any event that threatens the health, safety or welfare of
the Town’s citizens.
(iii) For any event that threatens the fiscal stability of the Town.
(iv) To address any matter declared as an emergency by the
Governor or the Mayor.
(c) Withdrawal Rules. All withdrawals from the Rainy Day Fund shall
be subject to the following rules:
(i) Any appropriation shall require the approval by at least 2/3
of the entire Town Council.
(ii) The maximum amount of Rainy Day withdrawals in any
fiscal year shall not exceed one-half of the total balance in
the Fund.
(d) Replenishment Rules. Any amounts withdrawn from the Rainy
Day Fund shall be replenished as follows (and such repayment
shall be in addition to the annual deposits set forth above):
(i) All amounts shall be repaid in not more than five years, in
annual installments of not less than 1% of the previous
fiscal year General Fund balance.
(ii) Repayments shall be appropriated as part of the annual
budget adoption.
B. Assigned Fund Balance. The Town will maintain an assigned fund balance in the
General Fund of a minimum 10% of the average actual General Fund revenues for
the preceding five fiscal years. This assigned fund balance will be assigned for (1)
“pay-as-you-go” capital replacement expenditures, (2) vehicle or equipment
replacement, (3) capital projects, (4) prepaying or defeasing existing Town debt
or (5) any other expenditure that is non-recurring in nature. The 10% is the
minimum and may be increased to accelerate accumulation of funds for a large
capital expenditure. To the extent these balances are expended, additional funds
necessary to restore this additional 10% amount will be provided in at least
approximately equal contributions during the five fiscal years following the fiscal
year in which the event occurred. The assigned General Fund balance can be
authorized for expenditure only in accordance with Resolution 2012-02 adopted
by the Mayor and Town Council on June 7, 2012, as may be amended from time
to time.
C. Unassigned Fund Balance. Funds in excess of the balances described in the
preceding paragraphs will be unassigned General Fund balance, unless otherwise
assigned in accordance with GASB 54. By Resolution, the Town Council has
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allocated General Fund surplus funds to be (1) transferred to the Rainy Day Fund,
(2) used to supplement “pay as you go” capital replacement expenditures in the
Capital Projects Fund or (3) used to prepay or defease existing Town debt. These
funds may not be used to establish or support costs that are recurring in nature.
During the annual budget process, the Town Manager will estimate the surplus or
deficit for the current year and prepare a projection of the year-end unassigned
General Fund balance. Such projection will include an analysis of trends in fund
balance levels on an historical and future projection basis.
The Finance Director is authorized to assign available fund balance for specific
purposes in accordance with GASB 54. It is the policy of the Town that
expenditures for which more than one category of fund balance could be used,
that the order of use is: Nonspendable fund balance, restricted fund balance,
committed fund balance, assigned fund balance and unassigned fund balance.
These guidelines will be reviewed by the Town Manager periodically following
adoption (or sooner at the direction of the Town Council).
3.3 Special Revenue Funds.
A. HURF. The Highway User Revenue Fund (“HURF”) is restricted in use solely for
street and highway purposes. The fund depends upon State shared revenues for
over 90% of annual revenues. The restricted fund balance will be based on the
minimum requirement as specified in the schedule for projects funded with
Special Revenue or grant funds. The schedule will be reviewed on an annual basis
to determine the required amount to be set aside as restricted fund balance.
B. Excise Tax Funds. The excise tax funds are committed funds that the Town
Council may dedicate for specific purposes by resolution or as part of the annual
budget adoption.
3.4 Debt Service Funds.
The Debt Service Fund is established for the payment of principal and interest on bonded
indebtedness and as such is a restricted fund. Revenues are derived from a property tax
levy, pledged excise taxes, municipal property lease payments and shared revenues.
Revenues are received in amounts sufficient to pay the annual debt service payment;
therefore, the restricted fund balance will be no less than the annual debt service payment
due on July 1 of the new fiscal year and no more than the annual debt service payment
due on July 1 plus an amount equal to the average annual delinquency factor based on the
prior three years ’ delinquency rates.
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3.5 Capital Projects Fund.
A Capital Projects Fund has been established to allow the Town to accumulate monies for
(1) purchase of land or buildings, (2) improvements to Town-owned properties, (3) grant
matches associated with capital improvements, (4) public safety projects and equipment
purchases, (5) economic development projects and (6) such other capital projects as
determined by the Town Council. The Capital Projects Fund will be funded by: (A) sales
of real and personal property belonging to the Town; (B) General Fund transfer of any
excess revenues collected over budgeted and unexpended appropriations not needed to
meet fund balance requirements or re-appropriation; and (C) interest earnings on the
balance of the fund invested per the Town’s investment policy. Accounted for separately,
but considered part of the Capital Projects Fund, are accumulated development fees
collected pursuant to ARIZ. REV. STAT. § 9-463.05 that are assessed on new construction
for the purpose of funding growth. These funds are restricted to growth-related capital
expenditures as designated in the Town’s adopted Infrastructure Improvements Plan. The
fund balance will be established each fiscal year during the budget process depending on
planned expenditures but cannot exceed accumulated revenues. The Town shall first be
entitled to recoup the cost of any capital improvements, infrastructure, marketing or
sales-related costs associated with the disposition of property before crediting the Capital
Projects Fund (for funds other than development fees). The Town Council may approve
the uses of the Capital Projects Fund as a part of its annual budget or by motion and
affirmative vote at the time the expenditures are approved.
IV. FINANCIAL PLANNING
Financial planning refers to the process of identifying resources and allocating those resources
among competing purposes. The primary vehicle for this planning is the preparation, monitoring
and analyses of the Town’s budget. It is increasingly important to monitor the performance of the
programs competing to receive funding.
4.1 Budget Adoption. The Town Manager shall prepare a proposed annual budget, which
shall be submitted to the Town Council and the public for review in accordance with
ARIZ. REV. STAT. § 42-17001, et seq. The Town will budget revenues and expenditures
on the basis of a fiscal year beginning July 1 and ending the following June 30. The
Town Council will adopt the budget no later than June 30, and the Town Manager shall
execute the Town Council policies as set forth in the finally adopted budget.
4.2 Budget Preparation. The Town Manager or authorized designee will prepare a budget in
accordance with the guidelines established by the Government Finance Officers
Association in its Distinguished Budget Award Program. The proposed budget will
contain the following:
A. Revenue estimates by major category, by major fund.
B. Expenditure estimates by department levels and major expenditure category, by
fund.
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C. Estimated fund balance by fund.
D. Debt service by issue detailing principal and interest amounts by fund.
E. Proposed personnel staffing levels.
F. A detailed schedule of capital projects, including a capital improvement program.
G. Any additional information, data, or analysis requested of management by the
Town Council.
4.3 Operating Budget. The operating budget will be based on the principle that current
operating expenditures, including debt service, will be funded with current revenues,
creating a balanced budget. The Town will not balance the current budget at the expense
of meeting future years’ expenditures; for example, accruing future years’ revenues or
rolling over short-term debt to avoid planned debt retirement.
4.4 Revenue Sources. Ongoing operating costs should be supported by ongoing, stable
revenue sources. This policy protects the Town from fluctuating service levels and avoids
crises when one-time revenues are reduced or removed. Revenues from growth or
development should be targeted to costs related to development, or invested in
improvements that will benefit future residents or make future service provision efficient.
4.5 Revenue Estimate. The Town Manager will provide an estimate of the Town’s revenues
annually for each fiscal year, as well as estimates of special (grant, excise tax, etc.)
revenues and interfund transfers.
4.6 Staffing. The budget will fully appropriate the resources needed for authorized regular
staffing. At no time shall the number of regular full-time employees on the payroll
exceed the total number of full-time positions authorized by the Town Council. All
personnel actions shall be in conformance with applicable Federal and State law and all
Town ordinances and policies.
4.7 Budget Preparation Schedule. Annually, the Town Manager shall provide a budget
preparation schedule outlining the preparation timelines for the proposed budget. Budget
packages for the preparation of the budget, including forms and instructions, shall be
distributed to Town Departments in a timely manner for the Department’s completion.
Department Directors shall prepare and return their budget proposals to the
Administration Department, as required in the budget preparation schedule.
4.8 Performance Measurement. Performance measurement indicators will be integrated into
the budget process as appropriate.
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4.9 Efficiency Analysis. Alternatives for improving the efficiency and effectiveness of the
Town’s programs and the productivity of its employees will be considered during the
budget process. Duplication of services and inefficiency in service delivery should be
eliminated wherever they are identified.
4.10 Department Responsibility. Department Directors are required to monitor revenues and
control expenditures to prevent exceeding their total departmental expenditure budgets.
Department Directors shall immediately notify the Town Manager of any exceptional
circumstances that could cause a departmental expenditure budget to be exceeded.
4.11 Quarterly Report. A quarterly report on the status of the General Fund budget and trends
will be prepared within 60 days of the end of each quarter by the Town Manager or
authorized designee. In addition, the quarterly report shall include revenue and
expenditure projections through the end of the fiscal year.
4.12 Deficit. If a deficit is projected during any fiscal year, the Town will take steps to reduce
expenditures, increase revenues or, if a deficit is caused by an emergency, consider using
the Rainy Day Fund, to the extent necessary to ensure a balanced budget at the close of
the fiscal year. The Town Manager may institute a cessation during the fiscal year on
hirings, promotions, transfers and capital equipment purchases. Such action will not be
taken arbitrarily or without knowledge and support of the Town Council.
V. EXPENDITURE CONTROL
The Town Manager shall ensure compliance with the legally adopted budget. In addition,
purchases and expenditures must comply with all applicable legal requirements.
5.1 Budgeted Expenditures. Expenditures will be controlled by an annual budget at the
departmental level. The Town Council shall adopt appropriations through the budget
process. Written procedures will be maintained for administrative approval and
processing of certain budget transfers within funds.
5.2 Purchasing System and Policies. The Town will maintain a purchasing system that
provides needed materials in a timely manner to avoid interruptions in the delivery of
services. All purchases shall be made in accordance with the Town’s purchasing policies,
guidelines and procedures and applicable State and Federal laws. The Town will
endeavor to obtain supplies, equipment and services as economically as possible.
5.3 Internal Controls. Expenditures will be controlled through appropriate internal controls
and procedures in processing invoices for payment.
5.4 State Expenditure Limit. The State of Arizona sets a limit on the expenditures of local
jurisdictions. The Town will comply with these expenditure limitations and will submit
an audited expenditure limitation report, audited financial statements and audited
reconciliation report as defined by the Uniform Expenditure Reporting System (ARIZ.
REV. STAT. § 41-1279.07) to the State Auditor General each year.
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5.5 Capitalized Assets. All assets of $10,000 or more will be capitalized and recorded in the
Town of Fountain Hills Summary of Capital Assets.
VI. REVENUES AND COLLECTIONS
All government employees are considered stewards of public funds. In order to provide funding
for service delivery, the Town must have reliable revenue sources. These diverse revenues must
be collected equitably, timely and efficiently.
6.1 Balanced Revenue Base. The Town’s goal is a General Fund revenue base that is equally
balanced between sales taxes, State shared revenues, property tax, service fees and other
revenue sources.
6.2 Stable Revenue Base. The Town will strive for a diversified and stable revenue base to
shelter it from economic changes or short-term fluctuations and in any one revenue
source by doing the following:
A. Establishing new charges and fees as needed and as permitted by law at
reasonable levels.
B. Pursuing legislative change, when necessary, to permit changes or establishment
of user charges and fees.
C. Aggressively collecting all revenues, late penalties, outstanding taxes owed and
related interest as authorized by law.
6.3 Monitoring Collection. The Town Manager or authorized designee will monitor all taxes
to ensure they are equitably administered and collections are timely and accurate. Fees
and charges should be based on benefits and/or privileges granted by the Town, or based
on costs of a particular service.
6.4 Intergovernmental Aid. The Town Manager or authorized designee should pursue
intergovernmental aid for those programs and activities that address a recognized need
and are consistent with the Town’s long-range objectives. Any decision to pursue
intergovernmental aid should include the consideration of the following:
A. Present and future funding requirements.
B. Cost of administering the funds.
C. Costs associated with special conditions or regulations attached to the grant
award.
6.5 Cost Recovery. The Town will attempt to recover all allowable costs (both direct and
indirect) associated with the administration and implementation of programs funded
through intergovernmental aid. In the case of the Fountain Hills Unified School District,
the Town may determine to recover less than full cost of services provided. In the case of
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State and Federally mandated programs, the Town will attempt to obtain full funding for
the service from the governmental entity requiring the service be provided. Allowable
costs will be determined based upon a “Cost Allocation Study” prepared periodically.
6.6 Growth Revenues. Local sales tax revenues are derived from several sources with a
significant portion from construction related activity. To ensure that the revenues from
growth or development are targeted to costs related to development, or invested in
improvements that will benefit future residents or make future service provision efficient,
the Town will designate 50% of those one-time revenues to the Capital Projects Fund.
Monthly, these revenues will be transferred from the General Fund to the Capital Projects
Fund for future appropriation.
VII. USER FEE COST RECOVERY
User fees and charges are payments for voluntarily-purchased, publicly-provided services that
benefit specific individuals. The Town relies on user fees and charges to supplement other
revenue sources in order to provide public services.
7.1 Establishing Fees. The Town may establish user fees and charges for certain services
provided to users receiving a specific benefit. User fees and charges will be established
to recover as much as possible the direct and indirect costs of the program or service,
unless the percentage of full cost recovery has been mandated by specific action of the
Town Council. It is recognized that occasionally competing policy objectives may result
in reduced user fees and charges that recover a smaller portion of service costs.
7.2 Recalculation. Periodically, the Town will recalculate the full costs of activities
supported by user fees to identify the impact of inflation and other attendant costs.
VIII. CASH HANDLING POLICY
Collecting and controlling cash at the Town are very important functions. The Customer Service
Representatives and Permit Technicians are the Town’s cash handling agents. Strong internal
controls for cash collection and handling are necessary to prevent mistreatment of Town funds
and to safeguard and protect employees from unwarranted charges of mishandling funds.
Historical practices shall not constitute justification for deviation from these procedures. The
material contained in this Section supersedes any previous policies and procedures regarding the
handling of cash followed within the Town and/or within Departments. The Finance Division
will conduct periodic reviews of cash handling procedures. Any amendments to the policies
require Town Council approval, but the Town Manager may make interpretations and exceptions
to the policies contained in this Section as more particularly set forth in Subsection 8.13 below.
8.1 Individual Responsibilities. All cash transactions are to be processed by Town staff
(including cash, credit cards, checks, etc.) and not volunteers. Any Department Director
or manager with responsibilities for managing Town cash receipts and those employees
who are entrusted with the receipt, deposit and reconciliation of cash for Town-related
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activities shall be responsible for knowledge of and compliance with this Section VIII. A
reference to this Section should be included as part of all departmental policies and
procedures.
8.2 Establishing Cash Handling Sites. Ideally, from a control perspective, collecting and
controlling cash should be centralized in one location; however, that is not always
possible or practical. As a result, the collection of money is, in part, decentralized. The
Finance Division must authorize all cash handling sites, including one-time requests for
cash for special events. Departments requesting status as a cash handling site (or special
events where money is being collected and a cash float is needed) must submit a request
to the Finance Division at least 24 hours prior to the special event that includes:
A. Reason(s) why cash handling site or cash float is needed.
B. A list of the personnel involved with the cash handling site, descriptions of their
duties and how segregation of duties will be maintained.
C. Whether a change drawer will be needed.
D. A description of the reconciliation process, including frequency of reconciliation.
E. A description of the process for safeguarding cash until it is deposited.
F. A schedule of how often and where cash deposits will be made.
8.3 Procedures for Cash Collection.
A. “Cash” is defined as any of the following accepted methods of payment for Town
transactions:
(1) Cash (coin and currency).
(2) Checks (made payable to the Town, no third party checks).
(3) Credit Cards (MasterCard, Visa, Discover, American Express-ACTIVE
Net only).
(4) Money Orders.
B. Cash should be physically protected through the use of vaults, safes, cash
registers, etc. Each Department is responsible to make the necessary provisions to
properly safeguard the cash receipts in its area and maintain the necessary safe or
vault that will ensure the security. Generally, any amount of cash on hand must be
maintained in a vault or heavy safe (one which cannot be easily moved by two
persons using a hand cart). Cash should not be retained in desk drawers or
standard file cabinets without a locking mechanism; petty cash must be secured in
a locked file cabinet and keys should be secured separately.
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C. The cash drawer should be kept shut when not in use and after each transaction.
The cash drawer, when open, should not be left unattended when it contains
money. The contents of cash drawers should be placed in a safe, vault, or an
approved, locked location after each day; all safes are to be kept locked.
8.4 Receipts.
A. Procedures must be in place to record the daily beginning and ending receipt
numbers of the cash register, and include safeguards to prevent manipulation of
register totals, receipt numbers, etc. Automatic numbering of receipts through a
computerized system is an acceptable alternative.
B. Receipts should be generated from either receipt books or cash register receipt
system.
C. Cash registers must be programmed to issue receipts, which shall contain all
information required by the accounting system to properly credit and track
payments.
D. Receipt books, if issued for special events, must be issued in sequential order. All
books should be accounted for from the time of delivery and returned to the
Finance Division.
E. Only those receipt books that have been distributed by the Finance Division may
be used.
F. At a minimum, sequential, pre-numbered receipt forms must contain the
following information:
(1) Date issued.
(2) Cashier and/or Department issuing the receipt.
(3) Name of payor (not the department name or revenue source).
(4) Net amount received.
(5) Sufficient information to identify the purpose of the payment.
(6) Form of payment (cash, check, credit card, etc.).
G. The receipt forms should also:
(1) Contain all available identifying numbers and other pertinent, descriptive
information including invoice numbers.
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(2) Be issued in a minimum of two copies, one for the payor and one to
accompany the deposit.
(3) Never be altered; if any type of change is necessary, all copies of the
receipt must be clearly marked “void” and a new receipt issued.
(4) Be filed sequentially and retained by the Department (including void
receipts).
8.5 Cash Received in Person.
A. When a customer produces a mutilated bill (where a portion is missing), the
receiver should request that the customer have a bank redeem the bill. No bill will
be considered for acceptance if both serial numbers are not present.
B. A printed receipt must be issued for each payment received when the customer
pays in person. At a remote location (for special events), manual pre-numbered
receipts may be used when cash register receipts are not available.
C. Departments may not accept post-dated checks, IOU’s, or third party checks.
D. All cash received must be recorded through the computerized accounting system
(MUNIS and/or ACTIVE Net) with computer-generated official Town cash
receipts. When a cash handling site with a computerized accounting system has to
use temporary cash receipts, those temporary receipts must be converted over to
computerized receipts as soon as possible. If the conversion cannot be
accomplished within 48 hours, the cash should be deposited into the Department’s
safe and tracked in detail until it is recorded on the computerized accounting
system.
E. The customer must be presented an official Town receipt form with a duplicate
record being retained by the receiving Department. All numbered receipts must be
accounted for, including the original of voided receipts.
F. The cash handling site must maintain a clear separation of duties. An individual
should not have responsibility for more than one of the cash handling
components: collecting, depositing, disbursement and reconciling.
G. The procedures below are to be followed to safeguard the employee and the cash:
(1) Account for cash as soon as is it received – count the cash in front of
customer.
(2) Keep cash received in view of the customer until the transaction is
complete.
(3) If change is required, count all cash and change in front of customer.
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(4) Reconcile the funds received to the computerized accounting system cash
report or to the total of the temporary receipts at the end of the day or at
the end of each shift and balance the receipts as set forth in Subsection 8.9.
(5) Immediately place all cash in a cash drawer, safe or other secure place
until deposited. A secure area for processing and safeguarding funds
received should be provided and restricted to authorized personnel.
(6) Personal transactions with Town cash funds are prohibited. Monies may
never be borrowed nor loaned from cash funds, nor may personal checks
be cashed from receipts.
(7) All employees paying for Town services (rentals, movie tickets, animal
license, business license, etc.) must be rung up by a different employee
under a separate user ID.
(8) Deposit all cash intact and not intermingled or substituted with other cash.
(9) Pay refunds or expenditures through the appropriate Town bank account
on a Town-generated check from the main accounts payable account or
petty cash for the smaller accounts. If the original payment was made
using credit/debit card, then refunds will be issued through the credit card
per credit card regulations.
(10) Provide printed receipts generated by the point of sale (POS) program for
every transaction involving money.
(11) Voided cash receipts must be approved and initialed by a supervisor
before the daily deposit is done, noting the reason for voiding the
transaction.
(12) Deposit daily cash report and cash promptly at the end of each day into the
Finance Division safe.
(13) Place cash in amounts over $500.00 in the Finance Division safe
immediately following the transaction until the end of day close out.
(14) Cashiers should enter transactions using their personal logins (switch user)
during a single shift.
(15) All packaged coin or strapped currency received as payment should be
removed from the package or straps and verified.
H. Cashing checks from Town deposits, borrowing cash for personal use, lapping
receipts to cover shortages in cash receipts, withholding checks for deposit in
order to float checks, commingling personal and Town funds and modifying cash
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records are all serious offenses and may result in discipline up to and including
immediate discharge from employment.
8.6 Cash Received Through the Mail.
A. When mail is opened, if the cash received is not credited directly into the
appropriate Town account or issued a receipt through a computerized accounting
system, a log of the checks, credit card transactions and or cash should be
prepared and submitted to the Finance Division. The log should include the
customer’s name, amount received, check number and any other information
available that may assist in proper allocation of the funds. The envelope also
should be retained as part of the records.
B. When mail is opened, checks must be endorsed promptly with a restrictive
endorsement stamp. Checks must be stored in a safe or other secure place
approved by the Finance Division until deposited.
C. Unidentified receipts must be deposited to a depository account approved for such
purposes. All reasonable attempts should be made to identify the correct account
and transfer the funds.
8.7 Check Acceptance.
A. The Federal Reserve has established a regulation to standardize check
endorsements:
(1) Checks must be made payable to the Town of Fountain Hills and endorsed
promptly with a restrictive endorsement stamp payable to the Town of
Fountain Hills. The endorsement stamps must be distributed by the
Finance Division; this stamp protects the check if lost or stolen.
(2) All depositor’s endorsements are limited to the top 1.5 inches on the back
side of the check, at the trailing edge of the check. This area is where
endorsements are normally placed. If you look at the face of the check, the
endorsement area is directly behind where “Pay to the Order of” is printed.
(3) Any check that has been endorsed may not be returned to the customer.
Any marks below the 1.5 inches on the check may obscure the bank
routing number, cause delays in returning checks, and forfeit the Town’s
right to recovery. The purpose of this regulation is to speed collection and
returns.
(4) The endorsement must include the following:
FOR DEPOSIT ONLY
TOWN OF FOUNTAIN HILLS
[Account Number]
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(5) Checks should have the customer information pre-printed on the face of
the check. Bank issued/generated checks are acceptable.
(6) Personal checks from employees for cash may not be cashed at any
counter in a Town facility.
(7) Checks or credit card transactions will not be cashed or processed for
more than the amount of purchase. Departments are not authorized to
return currency to the payor in the event that the check exceeds the
amount due to the Town.
B. Be sure that the name, branch, city and state where the drawer’s bank is located is
printed on the check.
C. The Town will not accept a check that is:
(1) Illegible or not written out clearly; checks should be written out in blue or
black ink only.
(2) For anything other than the exact amount (no change will be given).
(3) A third party check (that is, checks made out to someone other than the
Town).
(4) Altered or changed.
(5) Undated, post-dated or stale dated (older than six months).
(6) Not signed.
(7) A starter check, i.e. a check without the name, address and check number
on the face of the check.
(8) Not in U.S. funds.
(9) From a foreign bank, even if payable in U.S. funds.
(10) Transfer checks.
D. If the written amount on a check does not match the numerical amount, the
written amount will govern.
E. Money orders should be filled out by the customer in the presence of Town staff;
the customer must countersign and write Town of Fountain Hills in the payee
section.
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8.8 Credit Card Acceptance.
A. Credit cards accepted are Visa, MasterCard, Discover and American Express
(ACTIVE Net only).
B. When presented with a credit card, the Department cashier shall:
(1) Verify that the card has not been altered and is not expired.
(2) Check customer identification to verify that the name on the card and the
account name are the same, unless someone is paying for other family
members.
(3) Retain the credit card until the transaction is complete.
(4) Enter the credit card transaction by swiping the card through the terminal
on the keyboard; if the keyboard does not have a terminal, the swipe reader
is not functioning or payment is being taken over the telephone, the credit
card number should be entered manually when prompted by ACTIVE Net
or Class software programs.
(5) If the credit card information is being input from a paper registration form
that includes the card number and payor signature, shred or permanently
mark over the portion of the form that includes the credit card information
as soon as the transaction is complete and the card is accepted.
(6) If receiving credit card information over the phone, verify the caller’s name
as it appears on the card, verify the amount to be processed, enter the credit
card number, expiration date and security code directly into the ACTIVE
Net or Class program – immediately shred any piece of paper where the
information can be viewed or taken.
8.9 Balancing of Cash Receipts.
A. All funds collected must be balanced daily, by mode of payment, by comparing
the total of the cash, checks and credit cards to the computerized accounting
reports, to the manual receipts totals, including the totals of the money received
by mail. All cash receipts and supporting documentation (daily deposit slip,
system receipts, and system reports) should be transferred daily to the accounting
system and all discrepancies should be resolved before the end of the day/shift.
B. Daily cash counts and reconciliations will be performed on a random basis by the
Accountant or other senior Finance Division staff member. These reconciliations
should be signed and dated by the reviewer. The total monthly receipts should be
balanced with the monthly bank account statements and accounting system
monthly reports and all discrepancies should be resolved.
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C. Currency and coin must be reconciled separately from checks, credit cards and
money orders by comparing actual cash received to the cash total from the cash
report or to the sum of the cash sales from the manual receipts.
D. Over/short amounts must be separately recorded, investigated and resolved to the
extent possible as set out in the over/short portion of this Section.
E. Because balancing can be a time-consuming task and requires attention to detail,
it is recommended that each cashier pre-balance his/her own drawer periodically
during the day.
NOTE: On the rare occasion that a check needs to be forwarded to another party
by the Town of Fountain Hills, the check cannot be endorsed. Any of the
following positions are authorized to approve this receipt without endorsement:
the Town Manager, the Finance Director and the Town Clerk. Approval to accept
this instrument in this manner requires approval from one of the Town’s
authorized signatories in writing prior to the presentation of the instrument.
F. End of day close out process for cash collection points includes the following:
(1) Two signatures on the daily cash report before submitting to the Finance
Division.
(2) Total deposit must match the printed report from the software program.
(3) Deposits are turned in daily and deposited in the Finance Division safe by
the responsible party.
8.10 Cash Over & Short.
A. A daily accounting of cash received should be balanced against the total amount
on the daily reports run by the Department. Any amount that is over or short shall
be reported on the same day to the Department Director and the Accountant.
B. The discipline procedures set forth below should be followed if the established
dollar limits and frequency of overages and/or shortages are exceeded. The
current established dollar limit is five dollars. A log should be established to
record any overages and shortages, and the employee’s name and date. Patterns,
frequencies and inconsistencies should be noted on the employee’s performance
review. Overages or shortages of $50.00 or more are to be reported to the Finance
Director.
C. Warnings or exceptions involving cash overages or shortages shall be retained in
the employee’s permanent file.
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D. If the shortage is the result of a suspected or documented theft, the shortage must
be reported immediately and in writing to the Accountant, the Finance Director
and the Town Manager who will submit to law enforcement for investigation,
regardless of amount.
E. Employees who handle cash are expected to be careful and accurate and to
balance their funds each day without overages or shortages. Failure to follow
internal controls and checks and balances as approved by the Finance Division is
considered to be at least negligence and could be considered misconduct subject
to the following disciplinary procedures:
(1) Verbal Warning. A verbal warning will be given if an employee has:
(i) Two or more over/shorts in any 90-day period (regardless of the
amount).
(ii) Cumulative over/shorts of $75.00 or more in any 30-day period.
(2) Written Warning.
(i) After an employee has received two verbal warnings, the third
warning will be in the form of a written warning. A fourth warning
will be subject to disciplinary action as determined by the
Department Director.
(ii) A written warning will be issued if an employee exceeds a
cumulative total of $100.00 or more cash short in any month
regardless of the number of verbal warnings.
8.11 Returned Check Procedures.
A. Any checks returned by the Town’s depository bank as uncollected shall be sent
to the Finance Division. Examples of returned checks include: non-sufficient
funds (NSF), account closed, payor’s signature missing, refer to maker and post-
dated or stale-dated checks.
B. When a check is returned, the Finance Division prepares a negative entry to the
revenue journal, debiting the originating account for the amount of the check and
at the same time assessing a service fee in the amount set forth in the Town’s
adopted fee schedule. It is the responsibility of the Department that was credited
with the revenue to notify the check writer and use due diligence to collect the
amount of the check and the service fee. The check writer will be prohibited from
receiving Town services until the Town is paid the full amount, plus the returned
check fee. Restitution should be in the form of currency, money order, cashier’s
check or certified check. The Finance Division will maintain an aging report on
all non-collectable items; this report will be submitted monthly to the Finance
Director.
2044898.6
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C. When restitution is obtained, the same account should be used that was used on
the negative entry and the deposit should be transferred to the Customer Service
Representative for inclusion in the daily deposit.
D. If after proper due diligence is performed, collection has not been made, the
Accountant may be consulted regarding returned items that remain uncollected for
further action through the State.
8.12 Preparation of Deposits (performed by the Finance Division).
A. The Finance Division shall prepare all deposits.
B. All checks must be made payable to Town of Fountain Hills and endorsed. A
calculator tape of the checks should be included with the checks bundled together.
C. Cash must be recorded on the deposit slip in the appropriate space.
D. Only depository-issued deposit slips, including the appropriate account number(s)
and sub-code(s) are to be used.
E. Someone not involved with collecting the cash, opening the mail or reconciling
the deposit must prepare the deposit.
F. Deposit from the Municipal Court should be secured in locking deposit bags,
which are available from the bank.
G. Trips to the bank should be at random times during each day.
8.13 Exceptions to Cash Handling Policy.
A. Any exception to this Section must be approved in writing by the Department
Director and requires the concurrence of the Finance Director. For example, in
cases where there is not enough staff available to maintain complete separation of
duties, an alternate process to safeguard Town funds must be established and
approved by the Finance Director. Requests for exceptions to these procedures
must be submitted to the Finance Director in writing.
B. Town personnel are prohibited from depositing Town cash into checking or other
bank accounts unless the account has been set up by the Finance Division.
8.14 Records Retention. All cash receipts and related documents must be maintained in
accordance with Records Retention Schedules pursuant to ARIZ. REV. STAT. §§ 39-101
through 39-103 and 41-151.15 through 41-151.19. Accounting reports, deposit slips,
credit card receipts, copies of manual cash receipts, etc. should be kept for the period
specified by the Records Retention Schedules.
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IX. DEBT POLICY
The purpose of this debt policy is to provide for the preservation and enhancement of the Town’s
bond ratings, the maintenance of adequate debt service reserves, compliance with debt
instrument covenants and provisions and required disclosures to investors, underwriters and
rating agencies. The Town’s overall debt management policy is to ensure that financial resources
are adequate in any general economic situation to not preclude the Town’s ability to pay its debt
when due.
These policies are meant to supplement the legal framework of public debt laws provided by the
Arizona Constitution, State Statutes, Federal tax laws and the Town’s current bond resolutions
and covenants.
9.1 General.
A. The Town will (1) use current revenues to pay for short-term capital projects,
repair and maintenance items and (2) reserve long-term debt for capital
improvements with useful lives of ten years or more. The Town will not use long-
term debt to fund current governmental operations and will manage its cash flow
in a fashion that will prevent any borrowing to meet working capital needs.
However, exclusive reliance upon “pay-as-you -go” funds for capital
improvements requires existing residents to pay for improvements that will
benefit new residents who relocate to the area after the expenditure is made.
Financing capital projects with debt provides for an “intergenerational equity,” as
the actual users of the capital asset pay for its cost over time, rather than one
group of users paying in advance for the costs of the asset. Where there is a
benefit to all future residents, debt financing should be given consideration.
B. To increase its reliance on current revenue to finance its capital improvements,
and promote a “pay-as-you-go” philosophy, the Town will appropriate each year a
percentage of current revenues to maintain a minimum 10% of average actual
General Fund revenues for the preceding five fiscal years in the assigned fund
balance.
9.2 Capital Improvement Plan.
A. As part of the budget process each year, the Town Manager or authorized
designee will prepare a capital spending plan that provides a detailed summary of
specific capital projects for the five fiscal years subsequent to the fiscal year
presented. The plan will include the name of the project, project schedule, capital
cost by fiscal year and a recommended specific funding source. The five year
capital improvement plan will be developed within the constraints of the Town’s
ability to finance the plan.
B. The Town Manager and Department Directors will develop formal ranking
criteria that will be used in the evaluation of all capital projects. The ranking
criteria will give greatest weight to those projects that protect the health and
2044898.6
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safety of its citizens. “Pay-as-you-go” project financing shall be given the highest
priority. Capital improvements that must rely upon debt financing shall be
accorded a lower priority and projects with a useful life of less than ten years shall
not be eligible for inclusion in bond issues except in extraordinary circumstances.
C. Lease-purchase financing shall be undertaken only when the project is considered
essential to the efficient operation of the Town or to remove expenditures that
would exceed the State-imposed expenditure limitation. The Town Manager or
authorized designee shall be responsible for ensuring that “pay-as-you-go”
expenditures do not cause the State-imposed expenditure limitation to be
exceeded in any fiscal year.
D. All capital project requests will be accompanied by a description of the sources of
funding to cover project costs. Where borrowing is recommended, a dedicated
source of funds to cover debt service requirements must be identified. All capital
project requests will be required to identify any impact the project may have on
future operating costs of the Town. The Town will seek grants to finance capital
improvements and will favor those projects that are likely to receive grant money.
E. All capital project appropriations and amendments to the capital improvement
plan must be approved by the Town Council.
F. The capital plan will include all equipment and facilities with a useful life of
greater than ten years and a cost greater than $50,000. Debt financing shall not
exceed the useful life of the infrastructure improvement or asset.
G. The following steps shall be used to prepare the Capital Improvement Program
(“CIP”):
(1) Establish Capital Improvement policies, including:
(a) Time period the CIP will cover.
(b) Facilities/equipment that will be included in the CIP.
(c) How acquisition of multiple items (e.g., computers) will be treated.
(d) Identification of projects that are expected to be undertaken, but
fall outside the time horizon of the plan.
(2) Adopt standards to rank project requests.
(a) Projects that address a public health or safety concern are given top
priority.
2044898.6
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(b) Projects mandated by a court of competent jurisdiction or a
government with authority over the Town are equal with public
health or safety.
(c) Major maintenance (preservation of assets).
(d) Replacement of obsolete equipment (improving efficiency).
(e) Expansion to meet demand caused by growth.
(f) Coordination of projects to achieve cost savings.
(g) Availability of cash to finance improvements from current
revenues.
(h) Acquisition of open space.
(3) Perform and maintain a capital inventory and identify useful life.
(4) Identify projects.
(a) Status review of previously approved projects.
(b) Identification of new projects.
(c) Assess capital project alternatives.
(d) Complete project request forms.
(5) Assess funding sources.
(a) Available grants.
(b) Development fees shall be utilized to fund capital projects before
“pay-as-you-go” and bond issuance financing.
(c) Developer contributions.
(d) Private contributions.
(e) Issuance of securities.
(f) Capital leases.
(6) Approve the CIP and Budget.
(a) Town Council review.
2044898.6
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(b) Public hearing.
(c) Adoption of the CIP and capital budget.
All capital project requests will be accompanied by a description of the sources of funding to
cover project costs. Where borrowing is recommended, the source of funds to cover debt service
requirements must be identified. All capital project requests will be required to identify any
impact the project may have on future operating costs of the Town.
Department Directors will submit detailed descriptions of the useful life of capital projects
submitted in conjunction with the preparation of the Town’s CIP. The Town Manager shall
incorporate an estimate of the useful life of proposal capital improvements in developing an
amortization schedule for each bond issue. If a short-lived asset or project (less than ten years) is
included in a bond issue then the bond amortization schedule shall be adjusted to reflect the
asset’s rapid depreciation. At no time shall the amortization exceed the life of the asset.
9.3 Financing Alternatives.
A. Financing alternatives include, but are not limited to:
(1) Grants.
(2) Developer Contributions.
(3) General Obligation (“GO”) Bond – requires voter approval, supported by
an ad valorem (property) tax.
(4) Revenue Bonds – repaid with dedicated revenue source (HURF, revenue
generated by project).
(5) Municipal Property Corporation (“MPC”) Bonds – repaid with a dedicated
revenue source.
(6) Community Facilities District (“CFD”) or Special District Bonds –
supported by an ad valorem property tax, revenues of the district or
assessments of the cost of public infrastructure or enhanced municipal
services.
(7) Capital Leases – repaid within operating budget.
(8) Commercial Paper (CP) or Bond Anticipation Notes (BAN) with terms
less than two years.
B. Town debt service costs (GO Bonds, Revenue Bonds, MPC Bonds, Leases) shall
not exceed 20% of the Town’s operating revenue in order to control fixed costs
and ensure expenditure flexibility. Improvement District, CFD and Special
2044898.6
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District debt service is not included in this calculation because it is paid by district
property owners and is not an obligation of the general citizenry. Separate criteria
for CFDs have been established and included within the Town’s CFD policy.
C. The Town shall comply with all U.S. Internal Revenue Service arbitrage rebate
requirements for bonded indebtedness.
D. Where applicable, the Town will structure GO bond issues to create level debt
service payments over the life of the issue. The goal will be to strive for a debt
repayment schedule to be no more than 15 years; at no time will the debt exceed
25 years.
E. Refunding bonds will be measured against a standard of the net present value debt
service savings exceeding 3% of the principal amount of the bonds being
refunded, or if savings exceed $750,000, or for the purposes of modifying
restrictive covenants or to modify the existing debt structure to the benefit of the
Town. Refinancings undertaken for other reasons should proceed only when the
advantages have been clearly shown in a cost/benefit analysis of the transaction.
F. The Town will seek to maintain and, if possible, improve the current bond rating
in order to minimize borrowing costs and preserve access to credit.
G. An analysis showing how a new issue combined with current debt impacts the
Town’s debt capacity and conformance with Town debt policies will accompany
every future bond issue proposal. The debt capacity analysis should reflect a
positive trend and include:
(1) Percent of debt outstanding as a percent of the legal debt limit.
(2) Measures of the tax and revenue base.
(3) Evaluation of trends relating to expenditures and fund balance.
(4) Debt service as a percentage of assessed valuation.
(5) Measures of debt burden on the community.
(6) Tax-exempt market factors affecting interest costs.
(7) Debt ratios.
H. MPC and contractual debt, which is non-voter approved, will be utilized only
when a dedicated revenue source (e.g., excise taxes) can be identified to pay debt
service expenses. The project to be financed will generate net positive revenues
(i.e., the additional revenues generated by the project will be greater than the debt
service requirements).
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I. The Town’s privilege/excise tax to debt service goal will be a ratio of at least
2.5:1 to ensure the Town’s ability to pay for long-term debt from this elastic
revenue source.
9.4 Issuance of Obligations.
A. The Town shall select the underwriter and the paying agent/registrar for each debt
issuance based on competitive bid. The underwriter must be a firm with an office
in the Phoenix area and a record of prior working relationships.
B. The request for proposals process will be designed to select the service providers
that offer the Town the best combination of expertise and price. The Town is not
required to select the firm offering the lowest price, but a report must be prepared
by the Town Manager providing justification to the Town Council for a
recommendation when other than the lowest bidder is chosen. The review of all
proposals submitted shall be the responsibility of the Town Manager.
C. The Town will sell bonds through public sale, online bidding process or an
accelerated bidding process unless the Town Council authorizes the bond to be
sold by negotiated sale or private placement.
D. The Town Manager or designee and Town Attorney will coordinate their
activities to ensure that all securities are issued in the most efficient and cost-
effective manner and in compliance with the governing statutes and regulations.
The Town Manager and the Town Attorney shall consult and jointly select the
bond counsel for a bond issue.
E. The Town Manager or authorized designee will seek a rating on all new issues
which are being sold in the public market if economically feasible.
F. The Town will report all financial information on an annual basis and notices of
listed events in a timely manner, not in excess of ten business days after the
occurrence of event, to the rating agencies and the Municipal Securities
Rulemaking Board’s (“MSRB’s”) Electronic Municipal Market Access (EMMA)
system. The annual report will include but not be limited to the Town’s annual
Comprehensive Annual Financial Report (CAFR) and other items specified in the
Town’s continuing disclosure undertakings.
G. Any institution or individual investing monies as an agent for the Town shall do
so in a manner consistent and in compliance with the Town’s adopted Investment
Policy.
H. The Town Manager or authorized designee will provide detailed draw schedules
for any project to be funded with borrowed monies. The Town will invest the
proceeds or direct a trustee to invest the proceeds of all borrowings in a manner
that will ensure the availability of funds as described in the draw schedules.
2044898.6
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I. The Town acknowledges the responsibilities of the underwriting community and
pledges to make all reasonable efforts to assist underwriters in their efforts to
comply with Securities and Exchange Commission Rule 15c2-12 and MSRB Rule
G-36. The Town will follow its adopted issuance and post-issuance compliance
procedures relating to its tax-exempt financings.
Issue 8 ‐ March 6, 2015
Legislative Overview
Today marks th e 54th day of se ssion. Th e state bud ge t has bee n this we ek's focu s. Late We dne sday, th e Governor
and l egislative le ade rship an nou n ced th at the y h ad reache d an agree men t. As a resu l t, Thu r sday saw le ngthy
Appropriations he arin gs on a package of bu dget bil l s in both ch ambe rs. Fl oor sessions are sl ate d for today, al th ough it
is u ncl e ar if bills have the n ecessar y votes for passage at th is time . Bel ow is a detaile d article on budge tary items
that mu nicipalities face .
Budget
Th is we e k, Governor Duce y an d legisl ative l eade rs r e ache d agre eme nt on budget fr amework for FY 15‐16. Bu dge t
bil ls we re he ard in th e Hou se an d Sen ate Appropriation s Committe es on Th u r sday afte r n oon and e ven ing, an d were
sche dul e d for Cau cus, Rul e s, an d COW on Friday. As of press time, it is u n known if all bil l s have en ough vote s to pass.
Howeve r, le adership is pressing to h ave th e bills approved and sen t to the Gove rnor with cle an ‐u p l angu age to
fol low in subse que nt b il ls.
As containe d in the origin al Gove rn or's bu dge t, cities and towns are stil l bein g assesse d for partial ope ration s of th e
De partmen t of Reve nu e . Ove r the last fe w we e ks, as directed by th e Executive Committe e, we have be en working
with staff in the Gove r n or's Office on an MOU th at itemize s a fe e‐for ‐se r vice arran ge me nt with me asureabl e
pe rfor mance standards from DOR for ou r payme nts. Un fortu nately, th at l anguage did not appear in the budget bil ls,
bu t we are working on ame ndmen ts to add th ese provision s.
Th e bill s containing th e assessmen t ar e HB 2673 and SB 1471. The city asse ssment por tion is in Section 7.
Waste Collection
On M on day, SB 1079 solid waste coll ection; mu ltifamil y h ou sing was he ard an d he l d in the Hou se En ergy, Environmen t
and N atu ral Re sou rce s Committee . Spon sore d by Se n. Gail Griffin (R‐Here for d) this b il l se eks to classify mu l ti‐family
hou sin g as comme rcial prope rty for the sake of waste col le ction , thereby ope n ing it up to private h aul in g compan ies.
Th e Le ague h as bee n oppose d to th is measu re due to con cerns abou t th e consiste ncy of se rvice , p rivate h aule r s
focu sin g sole l y on th e most l ucrative con tracts, and the ability to de preciate equ ipme nt u n de r decreased service
le vel s. Th e bill will be he ard again and vote d on this coming M onday.
Guns in Public Buildings
HB 2320 fir e ar ms; pe r mit holders; pu blic place s passe d th e Committee of th e Whol e l ast we ek, bu t has n ot moved.
Spon sore d by Rep. Bren da Barton (R‐Payson) this bill requires publ ic buil dings and e vents to have e l ectronic
scre en in g de vices and se curity guards at pu blic e ntrances if th e pu bl ic en tities de cide to den y en try to an arme d
pe rson with a val id permit to carry a con ce ale d we apon . The Le agu e is oppose d as th e cost of impl eme nting th ese
proce dures is e xtremel y expensive.
Intergovernmental Agreements
On Wedne sday, th e Se nate Governme nt Committee passed HB 2324 intergovernmen tal agree men ts; pu bl ic age ncy
indemn ification, by a vote of 7‐0. The bil l state s that an intergovernmental agree men t may re quire on e public
agen cy to defen d, ind e mn ify or hol d h ar mle ss th e other pu blic age n cy for l iabil itie s, damage s, l osse s and costs on ly
to the exten t caused by n egl igence , re ckl essness or in te n tional wron gfu l con duct. Th e r e is broad sup por t for this bil l
and the Le ague is working with th e Gove rn or's Office on an amendme n t to cl ean up pote ntial u nin te nde d
conse que n ces. We e xpect th at ame n dme nt to be adopte d in th e Committee of the Wh ole . The Leagu e is grate ful to
Re presen tative Wen inge r (R‐Chan dle r ) for his sponsorsh ip of this Le ague Re sol ution.
Legislative Bill Monitoring
(All bil l s be ing active l y monitore d by the Leagu e can b e found he re .)
SB 1079: sol id waste col le ction ; multifamily housing
HB 2570: municipalities; ve getation re quirements; pr oh ibition
HB 2320: fire arms; pe r mit hol ders; pub l ic pl aces
SB 1133: TPT; municipalities; customer refu nd claims
HB 2324: in te rgove rn me n tal agree me n ts; pu blic agen cy inde mn ification
HB 2447: (n ow) re al pr operty man agers; con sol idated r e tu rns
HB 2563: h e alth facil itie s; substance abu se recovery
Legislative Bulletin is published b y the League of Arizona Cities and Towns.
Forward your comments or suggestions to league@azleague.org.
Issue 9 ‐ March 13, 2015
Legislative Overview
Startin g last Fr iday n ight and going into the early mor n ing of Saturday, the Legislature passe d the bu dget package
essen tial l y al ong par ty l ine s. You can fin d more infor mation on the bu dgetary impacts to citie s and town s be l ow.
Today is th e 61st day of se ssion , and to date the re h ave be e n 19 bill s signed, as Governor Duce y officiall y signe d th e
bu dge t package on M arch 12th.
Budget
Foll owing an al l ‐n ight session on Friday, the FY 15‐16 Bu dget bill s passed ou t of th e l egislature on Satu rday morn ing
and the bil l package was transmitted to Governor Du cey on Mon day an d sign ed on Thu rsday.
As in the original Gove r n or's budge t, cities an d towns are be ing assesse d to fun d partial ope rations of the De partmen t
of Re venu e, now for a total of $20.8 mil lion . Althou gh th e current lan gu age doe s n ot r e fl e ct it, we h ave bee n tol d
that th ey wan t to spl it th at figure as eve nl y as possible betwee n cities an d cou nties, at rough l y $10.7 and $10.1
mil lion re spectivel y. Al so in the bil l is an asse ssme nt on non ‐program citie s for DOR tax system chan ges, at the rate
of $0.76 per popul ation in the 2010 ce n su s.
Over the l ast few wee ks, as dire cte d by th e Exe cutive Committe e, we have be en working with staff in the Governor's
Office on an M OU that ite mize s a fe e‐for ‐se rvice arrange men t with me asu re abl e performan ce standards from DOR for
our paymen ts. Althou gh that spe cific lan guage did not appear in the b u dge t bill , we u nde rstand that we stil l h ave
the su pport of the Gove r n or 's office for this p l an. We are h ope ful th at wh e n we mee t with DOR to wor k ou t how
these paymen ts will actual l y occur we wil l have an opportunity to e xplore objective pe rformance me asu re s with in
an M OU betwee n the l ocal gove rn me n ts an d th e Dep artme nt.
Attorney Fees
HB 2131 tax adjudication s; attorne y fe es, sponsored by Re p. Darin M itch e ll (R‐Litch fiel d Park) was h e ld in Se nate
Finan ce, but wil l be he ard ne xt we ek. This bil l removes all of the caps on attorn ey fe e s that can be awarde d to a
succe ssfu l taxpayer in tax case s, made such an award man dator y u nle ss th e taxpayer acte d in specific ways to de lay
the process, and incl ud e d con tin gen cy fe e s as an e lemen t of attorn e y fe es that coul d be awarde d. The Leagu e
participated in a stakeh ol de r meetin g on We dn e sday to discuss an amen dme n t th at wil l be drafte d for Se nate
Finan ce n e xt Wedne sday. It is ou r un de rstandin g th at the amen dme nt will re move both th e man datory an d
contin ge ncy fe e ele me n ts, an d exten d th e curre nt $30,000 pe r court le vel cap to $75,000 per l e vel , in cluding
administrative h earings, in de xe d to the local CPI. With th ose chan ge s, th e Leagu e 's position on th is bil l will be
chan ged from Opposed to Ne utral wh en th e bill is he ar d.
Waste Collection and Processing
Th re e bill s th at affe ct mu nicipal waste proce sses passe d this we ek ‐ SB 1079, SB 1187 and SB 1342. Each on e was
spon sored by Sen. Gail Griffin (R‐Here for d).
SB 1079, solid waste coll e ction; mu ltifamil y housing ch an ges mul ti‐famil y housing from reside ntial to commercial for
the purpose s of waste col l ection. Th e Le ague has be en opposed to this me asu r e sin ce its introdu ction as it is
conce r n ed th at se rvice delive r y will be dimin ished. The bill passed th e Hou se Ene rgy, Environmen t and Natural
Re sou r ce s Committe e on Mon day by a vote of 7‐2 an d n ow goe s to th e Rul e s Committe e.
SB 1187 service s outside mun icipal boundarie s; re qu ire men ts passe d th e Hou se Governme nt an d High er Education
Committe e on Thu rsday by a vote of 8‐1. This bill seeks to place standards of operation on mun icipal recyclin g,
proce ssing an d lan dfil l se rvices th at wou ld mirror private se ctor stan dards. Stakeh olde rs agree d prior to the h earing
to mee t and discu ss conce rn s and try to re ach some livabl e agreemen t. Th at commitme n t was re fle cte d in
testimony. For some cities th e issue of violation of intergovern men tal agree men ts is th e main con ce r n an d for othe r s
it is th e small er, non ‐commercial customer u sage an d r e gul atin g that it of primary focus. The stakehol de rs wil l
conce ntr ate primaril y on th e se two issue s. Th e bill now goe s to the Ru l es Committee .
SB 1342, respon sibil ity of paymen t; u til ity services, al so passed th e Hou se Gove rn men t and High e r Education
Committe e on Th ursday, by a vote of 7‐0. The me asu re states th at for r e siden tial pr operty of four or fewe r u nits, a
garbage colle ction service pr ovider, pr ivate wate r compan y or sewer corporation is proh ibited from requiring
paymen t of garbage colle ction service rates and charge s by anyon e othe r th an the pe rson wh o the provide r or
company contracted with to pr ovide the service , who ph ysical ly r e sides or reside d at the property, and wh o re ceive s
or re ce ived th e se rvice . Th e same con ditions apply to a mun icipality's abil ity to requ ire payme nt of un paid utility
user fee s. However re ce nt focus on th e bill has come fr om Section On e, wh ich addre sses th e cle an‐u p of prope rty by
mu nicipal itie s and l ien s. Just prior to th e committe e the sponsor, propon e nts, a fe w cities and the Leagu e met to
discu ss possible amen dme nts to address the citie s' con ce rns, and th e spon sor agr e ed to do so. The bil l now goe s to
the Ru l es Committee .
Pawnbrokers, Gold, and Fees
On M onday, th e Hou se passe d HB 2480 mu n icipal itie s; pawnbroke rs; gold; proh ibited fe es by a vote of 31‐28.
Spon sore d by Re p. Warr e n Petersen (R‐Gil be rt), the bil l proh ibits mu nicipal itie s from imposing a fe e, tax, or
asse ssme nt on a pawnbroke r or person in the busin e ss of bu ying gold in con ne ction with an y reportabl e transaction .
Th e Leagu e op pose s th e bil l as it th reatens succe ssfu l pol icing tool s th at h elp locate an d return stole n goods to
owne r s. Pawnbroke r an d gol d de aler tr an saction fee s ar e directly tie d to programs th at fund police de te ctives an d
computer syste ms th at sol ve crime s and h el p pawnbrokers comply with state law. Th e bil l now move s to the Se nate
Governme nt Committee .
Municipal Elections
On Th ursday, the Senate Ju diciary Committe e passed a strike‐e verything amendme n t to HB 2214, by a vote of 7‐0.
Th e str ike ‐e veryth ing amen dme nt mirror s th e original HB 2543 and e stabl ish es a formul a for determin in g the majority
of votes cast in mun icipal e l ections for the office of mayor or city council . If more candidate s rece ive a majority of
votes th an th ere are se ats to be fille d for th at office, the can didate s who receive th e h ighe st numbe r of votes shal l
be declare d e le cte d to th at office. If no candidates or not e nou gh can didate s receive the majority of votes cast, th e
nu mb e r of candidate s wh o advan ce to th e ge neral or run off e lection must be e qual to twice th e nu mbe r of seats to
be fil le d. The Leagu e su pports th e amen dme nt, as it is a Le ague Re sol ution th at will save taxpaye r dol l ar s by
el imin atin g u nne cessary el e ctions. We are grate ful to Repre se ntative M ichel le Ugen ti (R‐Scottsdal e) for sponsoring
the original bil l (HB 2543) in the Hou se an d to Re pr e se ntative Warre n Petersen (R‐Gil be rt) for champion in g the issu e
after it was bogged d own by procedural h urdl es. It n ow moves to the Ru l es Committee .
Legislative Bill Monitoring
(All bil l s be ing active l y monitore d by the Leagu e can b e found he re .)
SB 1079: sol id waste col le ction ; multifamily housing
SB 1291: fire arms; state pre e mption ; pen al ties
HB 2570: municipalities; ve getation re quirements; pr oh ibition
HB 2320: fire arms; pe r mit hol ders; pub l ic pl aces
SB 1133: TPT; municipalities; customer refu nd claims
HB 2324: in te rgove rn me n tal agree me n ts; pu blic agen cy inde mn ification
HB 2447: (n ow) re al pr operty man agers; con sol idated r e tu rns
HB 2480: municipalities; pawnbroke rs; gold; proh ibited fe e s
HB 2563: h e alth facil itie s; substance abu se recovery
Legislative Bulletin is published b y the League of Arizona Cities and Towns.
Forward your comments or suggestions to league@azleague.org.