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HomeMy WebLinkAbout150319P z:\council packets\2015\r150319\150319a.docx Last Printed: 3/11/2015 11:40 AM Page 1 of 4 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 z:\council packets\2015\r150319\150319a.docx Last Printed: 3/11/2015 11:40 AM Page 2 of 4 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. z:\council packets\2015\r150319\150319a.docx Last Printed: 3/11/2015 11:40 AM Page 3 of 4 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. z:\council packets\2015\r150319\150319a.docx Last Printed: 3/11/2015 11:40 AM Page 4 of 4 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. z:\council packets\2015\r150319\150319a.docx Last Printed: 3/11/2015 11:40 AM Page 1 of 4 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 z:\council packets\2015\r150319\150319a.docx Last Printed: 3/11/2015 11:40 AM Page 2 of 4 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. z:\council packets\2015\r150319\150319a.docx Last Printed: 3/11/2015 11:40 AM Page 3 of 4 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. z:\council packets\2015\r150319\150319a.docx Last Printed: 3/11/2015 11:40 AM Page 4 of 4 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 MoinEntranceCenterCourtyardArea&SouthNorthCOMMUNITYCENTERFLOORPLANEast—vr.~® 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 $7,500 for the changes as listed Page 2 of 3 Prepared by: NA 1/15/2014 Director's Approval: a ^.ou g w NA \7 3/9/2015 Approved:approved:^m^s -n Ken Buchanan,town Manager 3/11/2015 Page 3 of3 Sliding gate Small dog area Large dog area Raised planter Existing 3 ft block wall Existing 3 foot wall With 3 foot fence on top Add 3 foot fence on top of Existing wall Entry way Entry way Add cover to Block visibility Add cover to to Block visibility -r *-.„•1 40 • Mr 'vp .\ *mif$ z,r y.y-<; I :\§. kz'zz-' i^-.:.,.v-.m t %7mm'•• it '.--^•^^JRmtzz~zr^Z ..z-;:''£z:.-.-z-zz.-z±-^^^V^Kfc&Xi''./ti-/.:'./^^•-' i 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. 2044898.6 5 (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 2044898.6 6 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. 2044898.6 7 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. 2044898.6 8 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. 2044898.6 9 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. 2044898.6 10 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 2044898.6 11 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 2044898.6 12 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. 2044898.6 13 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. 2044898.6 14 (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. 2044898.6 15 (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 2044898.6 16 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] 2044898.6 17 (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. 2044898.6 18 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. 2044898.6 19 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. 2044898.6 20 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 21 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. 2044898.6 22 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 23 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 24 (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 25 (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 26 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). 2044898.6 27 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 28 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.