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Home My WebLink About160211PTown of Fountain Hills Town Council Retreat Agenda February 11, 2016 1. Town Manager’s Overview of 2015-16 2. Proposed FY 2016-17 Budget, Fiscal and Financial Policies, Five Year Financial Forecast, and Strategies to Address Financial Challenges a. Review Fiscal/Financial Policies b. Review Existing Fund Balances c. Review Town’s Debt Service d. Review 2015-16 Annual Budget e. Review Proposed 2016-17 Annual Budget f. Five Year Financial Forecast g. Capital Reserve Study h. Strategies to Address Financial Challenges 3. Capital Projects Report a. Project Status b. CIP Funding Status 4. Transportation Report a. Capital Road Projects Status b. Pavement Management Plan Update c. Next Major Street Priorities 5. Core Services a. Public Safety b. Administration c. Community Services d. Development Services 6. Operational Priorities 7. Strategic Planning Update 8. Economic Development and Tourism Updates 9. Public Safety a. Law Enforcement b. Fire/Emergency Medical Services 10. Good of the Order 11. Adjournment Town of Fountain Hills Town Council Retreat Agenda February 11, 2016 1. Town Manager’s Overview of 2015-16 2. Proposed FY 2016-17 Budget, Fiscal and Financial Policies, Five Year Financial Forecast, and Strategies to Address Financial Challenges a. Review Fiscal/Financial Policies b. Review Existing Fund Balances c. Review Town’s Debt Service d. Review 2015-16 Annual Budget e. Review Proposed 2016-17 Annual Budget f. Five Year Financial Forecast g. Capital Reserve Study h. Strategies to Address Financial Challenges 3. Capital Projects Report a. Project Status b. CIP Funding Status 4. Transportation Report a. Capital Road Projects Status b. Pavement Management Plan Update c. Next Major Street Priorities 5. Core Services a. Public Safety b. Administration c. Community Services d. Development Services 6. Operational Priorities 7. Strategic Planning Update 8. Economic Development and Tourism Updates 9. Public Safety a. Law Enforcement b. Fire/Emergency Medical Services 10. Good of the Order 11. Adjournment TOWN OF FOUNTAIN HILLS Town Council Retreat February 11, 2016 Council Retreat Agenda •Town Manager’s Overview •Proposed FY 2016-17 Budget, Fiscal and Financial Policies, and Five Year Forecast –Review Fiscal/Financial Policies –Review Existing Fund Balances –Review Debt Service –Review 2015/16 Annual Budget –Review Proposed 2016/17 Annual Budget –Five year Financial Forecast –Capital Reserve Study –Possible Measures to Address Financial Challenges •Core Services •Operational Priorities •Review 2015/16 Operational Priorities •Establish 2016/17 Operational Priorities •Strategic Planning Update –Review 2015/16 Strategic Planning Goals –Discuss Strategic Plan Update •Capital Projects Report –Project Status –CIP Funding Status •Transportation Report –Capital Projects - Initiated –Pavement Management Plan –Pavement Replacement Plan •Economic Development Plan –Economic Development Update –Tourism Update •Public Safety –Law Enforcement –Fire/EMS Town Manager’s Overview •Capital Projects Fire Station #2 Alley Paving , Phase IV Adero Canyon Trailhead Ashbrook Wash Fountain Lake Water Quality Bus Barn Removal Fountain Hills Blvd. Shoulder Paving Fountain Park Improved Access •Environmental Fee •Fire Services Contract Negotiations –2 Year Extension, or –5 Year Negotiated Contract •Solid Waste Contract –Consider adding other services to contract – household hazardous collection and electronics recycling –Contract until November 2016 with renewal options through November 2018 Financial Policies Financial Policies •Current Policies –Financial Policies – includes cash handling –Capital Asset –Grant –Procurement –Investment –Issuance and Post-issuance Compliance •Policies to be Developed –Travel Financial Policies –continued •Policies to be Revised –Financial Policies •Amend use and designation of General Fund reserves, including Rainy Day fund (also when to move surplus operating fund monies) •Change allocation of construction sales tax –Investment Policy •Originally developed in March 2003 •Current investment management advisor recommends a review to consider current investment vehicles and market conditions Financial Policies –continued •Policies to be Revised –Grant Policy •Needs update to conform with Uniform Guidance document for Single Audit requirements Fund Balances Fund Balances Operating Funds 99 Rainy Day Fund 2,624,843$ 100 General Fund 5,621,670 410 Public Art Fund 5,919 800 Internal Service Fund (7,395) 810 Vehicle Replacement Fund 668,521 8,913,558$ All Fund Balances are as of 12/31/2015 Fund Balances - continued 200 Highway User Revenue Fund (HURF)668,627 668,627 Special Revenue Funds 400 Special Revenue Fund 54,643 420 Court Enhancement Fund 284,259 460 Environmental Fund 13,711 550 Cottonwoods Maintenance District Fund 13,338 365,951 Excise Tax Funds 300 Downtown Strategy Fund 886,729 310 Economic Development Fund 57,905 320 Tourism Fund 88,920 1,033,554 Debt Service 510 General Obligation Debt Service Fund 1,530,848 520 Eagle Mountain CFD Debt Service Fund 297,157 530 MPC Debt Service Fund 426,986 2,254,991 All Fund Balances are as of 12/31/2015 Fund Balances - continued Capital Projects 600 Capital Projects Fund 5,599,910 610 Facilities Replacement Fund 170,227 5,770,137 Development Fees 710 Law Enforcement 203,484 720 Fire & Emergency 97,008 730 Streets - 740 Parks & Recreation 229,338 750 Open Space 1,660,059 760 Library/Museum - 2,189,889 All Fund Balances are as of 12/31/2015 Debt Service Debt Service •General Obligation (GO) Bonds –Backed by full faith, credit and taxing power –Finance a variety of public projects –Repayment from secondary property tax revenues –Requires voter approval •Municipal Property Corporation (MPC) Bonds –Backed by excise taxes, including local sales tax, franchise tax, State-shared sales tax –Debt issued to purchase municipal facilities and lease to the Town –Does not require voter approval OUTSTANDING BONDS at 6/30/2016 Revenue bonds include Community Center General Obligation Bonds include Library/Museum, Preserve and Saguaro Bond Purpose Date of Interest Date of Original Principal Principal Amount Outstanding Type of Issue Bond Issue Rate Maturity Amount Amount Retired Refunded Principal GO Refunding 6/1/2005 4.00 7/1/2019 7,225,000$ 6,025,000$ -$ 1,200,000$ GO Road Construction 12/18/2014 2.00- 3.00 7/1/2020 7,565,000 1,360,000 - 6,205,000 Total GO 14,790,000 7,385,000 - 7,405,000 Rev Refunding 6/4/2015 1.62 7/1/2020 1,880,000 480,000 - 1,400,000 Total Rev 1,880,000 480,000 - 1,400,000 GO Eagle Mtn 6/4/2015 1.76 7/1/2021 2,300,000 365,000 - 1,935,000 Total GO - Eagle Mtn 2,300,000 365,000 - 1,935,000 Grand Total 18,970,000$ 8,230,000$ -$ 10,740,000$ GO General Obligation Bonds Rev Revenue Bonds 2015/2016 Annual Budget Current FY15/16 Budget By Core Services From All Funds •Public Safety $ 7,185,767 •Administration $ 2,668,401 •Downtown Excise Fund/ED $ 1,015,908 •Development Services $ 4,646,749 •Community Services $ 2,260,575 •Debt Service $ 3,027,313 •Special Revenue Funds $ 2,378,899 •Capital $14,664,106 •Internal $ 99,555 Total $37,947,273 Revenues FUND YTD FY14-15 YTD FY15-16 YTD FY15-16 Budget % YTD FY15-16 Budget % Incr/(Decr) from Prior Year Operating Funds 6,697,739$ 7,060,191$ 7,096,742$ 99.5%5.4% HURF 1,067,494 1,135,029 1,155,231 98.3%6.3% Dev Fees 231,700 135,673 96,178 141.1%(41.4%) Special Revenue 941,842 388,861 1,149,199 33.8%(58.7%) Excise Tax 354,571 362,487 293,000 123.7%2.2% Debt Svc MPC 261,952 253,714 208,348 121.8%(3.1%) Debt Svc GO 614,755 1,450,091 1,436,084 101.0%135.9% CIP 9,478,092 179,205 1,519,585 11.8%(98.1%) Grand Total All Funds 19,648,145$ 10,965,251$ 12,954,367$ 84.6%(44.2%) Current Year Revenues - YTD Ending December 31 - All Funds Expenditures FUND YTD FY14-15 YTD FY15-16 YTD FY15-16 Budget % YTD FY15-16 Budget % Incr/(Decr) from Prior Year Operating Funds 7,276,619$ 7,079,415$ 7,006,463$ 101.0%(2.7%) HURF 551,535 2,017,363 1,424,061 141.7%265.8% Dev Fees 268 14,519 200,611 7.2%5317.5% Special Revenue 139,237 13,669 1,099,019 1.2%(90.2%) Excise Tax 1,318,544 408,985 537,113 76.1%(69.0%) Debt Svc MPC 51,092 23,276 205,926 11.3%(54.4%) Debt Svc GO 41,250 259,595 1,366,982 19.0%529.3% CIP 2,210,765 5,359,805 7,133,464 75.1%142.4% Grand Total All Funds 11,589,310$ 15,176,627$ 18,973,639$ 80.0%31.0% Current Year Expenditures - YTD Ending December 31 - All Funds 2016/2017 Proposed Budget Assumptions •Revenue projections are determined using some trend analyses as well as estimates of building activity; they are our best guesses for future revenues •2% reduction in distribution of State Shared revenues – the mid-decade census will affect our proportionate share of distributions (negatively) – impact of Governor Ducey’s Executive Budget on State Shared revenues is unknown at this time •The existing level of service is maintained •Building permit activity projected to include permits for Adero Canyon, Firerock and Summit at Crestview •Additional priority staffing levels will be considered dependent upon necessity •No inflation factor for FY17, 2.5% for FY18 and 3.5% for FY19, FY20 & FY21 •Public safety contracts increase 3.5% - 10.0% through FY21 •Annual General Fund payment for Community Center is required beginning in FY16-17. •The projections do not presume development in the former State Trust land within the next five years. *additional staff is dependent upon budget availability. FY17 BUDGET ASSUMPTIONS FY16-17 FY17-18 FY18-19 FY19-20 FY20-21 New staff 1* 0 1* 0 0 MCSO Increase 7.0% 10.0% 10.0% 10.0% 10.0% Rural Metro Increase 3.5% 3.5% 3.5% 3.5% 3.5% Inflation 0% 2.5% 3.5% 3.5% 3.5% Building Permits 41 54 54 59 59 Election Costs $55,000 $22,000 $0 $24,000 $0 Community Center debt payment subsidy $249,055 $377,586 $381,754 $305,760 $0 General Fund contingency $100,000 $100,000 $100,000 $100,000 $100,000 BUDGET BY CORE SERVICES FROM ALL FUNDS FY15-16 FY16-17 Public Safety 7,185,767$ 7,589,313$ Administration 2,668,401 2,756,971 Downtown Strategy Fund/ED/Tourism 1,049,225 1,033,585 Development Services 4,646,749 4,255,232 Community Services 2,260,575 2,502,231 Debt Service 3,027,313 2,921,671 Special Revenue Funds 2,345,582 2,329,708 Capital 14,664,106 7,344,106 Internal Funds 99,555 358,930 TOTAL 37,947,273$ 31,091,747$ ED BUDGET RECAP EXCISE TAX/ECONOMIC DEVELOPMENT PLAN •20% of Excise Tax-Downtown Strategy $ 69,278 •80% of Excise Tax-ED Plan 277,111 $346,389 Estimated Balance in the Downtown Strategy - Excise Tax Fund is $ 900,000 Five Year Financial Forecast $5.0 $7.0 $9.0 $11.0 $13.0 $15.0 $17.0 FY16-17 FY17-18 FY18-19 FY19-20 FY20-21 FY2017-2021 Projected General Fund Revenues and Expenditures OPERATING EXPENDITURES OPERATING REVENUE GENERAL FUND PROJECTIONS GENERAL FUND PROJECTIONS FISCAL YEAR (July to June) STATE SHARED REVENUES LOCAL REVENUES TOTAL GF EXPEND. SURPLUS/ (SHORTFALL) 2016-17 4,796,127 9,813,850 14,545,851 64,126 2017-18 4,913,475 9,614,569 15,164,386 (636,342) 2018-19 5,033,813 9,847,712 16,009,090 (1,127,565) 2019-20 5,157,220 9,897,021 16,741,962 (1,687,721) 2020-21 5,283,777 10,064,662 17,382,211 (2,033,772) GENERAL FUND PROJECTIONS $13.2 $14.1 $13.9 $14.6 $14.5 $14.9 $15.1 $15.3 $3.0 $6.0 $9.0 $12.0 $15.0 $18.0 FY13-14 FY14-15 FY15-16 FY16-17 FY17-18 FY18-19 FY19-20 FY20-21 Actual Projected General Fund Revenues (in millions) GENERAL FUND PROJECTIONS $12.5 $13.4 $13.9 $14.5 $15.2 $16.0 $16.7 $17.4 $3.0 $6.0 $9.0 $12.0 $15.0 $18.0 FY13-14 FY14-15 FY15-16 FY16-17 FY17-18 FY18-19 FY19-20 FY20-21 Actual Projected General Fund Expenditures (in millions) $4.5 $4.8 $4.9 $4.8 $4.9 $5.0 $5.2 $5.3 $2.0 $3.0 $4.0 $5.0 $6.0 $7.0 FY13-14 FY14-15 FY15-16 FY16-17 FY17-18 FY18-19 FY19-20 FY20-21 Actual Projected General Fund State Shared Revenues (in millions) GENERAL FUND PROJECTIONS $7.1 $7.5 $7.3 $7.5 $7.7 $7.8 $8.0 $8.1 $2.0 $3.0 $4.0 $5.0 $6.0 $7.0 $8.0 $9.0 FY13-14 FY14-15 FY15-16 FY16-17 FY17-18 FY18-19 FY19-20 FY20-21 Actual Projected General Fund Local Sales Tax Revenues (in millions) GENERAL FUND PROJECTIONS HURF REVENUES Source: League of Arizona Cities and Towns 2015 Municipal Policy Statement Roughly $250,000,000 $1.4 $1.1 $1.2 $1.3 $1.4 $1.4 $1.4 $1.4 $1.5 $1.5 $1.6 $800,475 $858,874 $885,292 $922,180 $959,067 $995,511 $1,033,341 $1,069,508 $63,016 $69,116 $4,796 $22,156 $3,022 $12,000 $15,000 $15,000 $15,000 $15,000 $15,000 $500,000 $1,000,000 $1,500,000 $2,000,000 $2,500,000 $3,000,000 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 (est.) 2016-17 (est.) 2017-18 (est.) 2018-19 (est.) 2019-20 (est.) 2020-21 (est.) HIGHWAY USER (HURF) REVENUE FUND HURF VLT In Lieu HURF REVENUES PERSONNEL •New staff positions under consideration: –One, dependent upon budget availability •43 Full Time Employees/22 Part Time Employee •53.32 Total Full Time Equivalent Employees. PERSONNEL Delivery of service to the citizens of Fountain Hills is dependent upon the available funding and the number of employees and volunteers who can perform the services. 115 106 77 77 82 87 88 87 80 61 58 57 51 51 52 53 40 50 60 70 80 90 100 110 120 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 Number of FTE Employees Development Services Citizens of Fountain Hills Presiding Judge Town of Fountain Hills Organization Engineering/GIS Streets/ Fleet Recreation Community Services Fire / EMS Administration Law Enforcement Mayor and Town Council Town Manager Town Attorney Community Center Planning/ Code Enforcement Building Safety Facilities Finance/I.T. Town Clerk Human Resources/ Risk Management Senior Services Parks Executive Assistant Town Prosecutor Economic Development Specialist Appointed by Council Contracted Volunteer Coordinator Tourism Capital Reserve Study Capital Reserve Study •30 year period – 2016 through 2045 •Inflation rate of 3%; interest rate of 1.65% •Fully funded reserve balance - $7,127,225 •Recommended monthly reserve contribution - $84,600 or $1,015,200 annually •Annual increases of 3% for 10 years followed by annual increases of 2% for the remaining 20 years Strategies to Address Financial Challenges Financial Strategies •Increase sales tax rate (on some or all tax categories) such as retail, bed tax, commercial rental – bed tax would require vote of residents •Implement public safety fee (estimate to replace Rural Metro contract would increase expenditures by $450,000) – current experience with environmental fee is not good Financial Strategies- continued •Impose a primary property tax – would require a vote of the residents •Reduce staff - staff has been reduced two previous times •Explore contracting out more basic services – would need to develop comprehensive RFPs •Hire a financial advisor to assess Town’s finances and recommend strategies to address future revenue shortfalls Financial Strategies - continued •Engage TPT auditor to pursue residential rental taxes from rental properties – •Reduce coverage for police and/or fire – could reduce MCSO beats – per 2011 request, cost savings to reduce beats from 3.8 currently to 3.4 would result in savings of $215,270 (adjusted to 2016-2017, savings would be $300,000 annually) Financial Strategies - continued •TPT rate increase –Estimate that each one tenth of one percent (0.1%) increase in rates (all categories) would generate approximately $340,000 in additional revenue –Current rate for Town only is 2.6% –Total State tax rate is 8.9% Financial Strategies - continued •Raise Town fees –Licenses and permits not building related amounted to $174,208 in FY14-15 –Rental fees for FY14-15 amounted to $126,965 –Charges for services amounted to $157,339 for FY14-15 –Any increases would not be significant in relation to the total Town budget (FY14-15 total was $458,512) Financial Strategies - continued •Consider lease/purchase of vehicles instead of outright purchase Questions/ Comments Operational Priorities Pavement Management Program Economic Development Plan Rural/Metro Contract Negotiations Solid Waste Services Negotiations/RFP Saguaro Blvd Project Fire Station #2 Environmental Fee Operational Priorities FY15-16 Operational Priorities FY16-17 Stabilize Town Finances Pavement Management Program Economic Development Plan Fountain Lake Water Quality Fire Station #2 Facilities Reserve Fund State Land Traffic Studies Strategic Planning Update SPAC’S Recommended Strategic Planning Goals FY2015-16 C3 Solicit Public/Stakeholder Feedback EV4 Promote retention, expansion and relocation of Quality Businesses I2 Develop reliable funding source for infrastructure maintenance CR7 Communicate the Role of Local Government I6 Adequate infrastructure and amenities for downtown development CR4 Implement communications plan for civic involvement EV3 Promote a mixed use core EV6 Identify slate of economic development tools and strategies CR6 Evaluate Customer Satisfaction on regular basis SPAC recommended emphasis Strategic Planning Goals FY 2016-17 C3 Solicit Public/Stakeholder Feedback EV4 Promote retention, expansion and relocation of Quality Businesses I2 Develop reliable funding source for infrastructure maintenance CR7 Communicate the Role of Local Government I3 Pavement Management Index Program EV3 Promote a mixed use core CR4 Implement communications plan for civic involvement EV1 Develop Economic Development Plan CR6 Evaluate Customer Satisfaction on regular basis Strategic Plan Update •The Strategic Planning Advisory Commission (SPAC) is in process of a major update of 2010 Fountain Hills Strategic Plan •Last Fall SPAC analyzed the 2010 SWOT Analysis and determined what was still relevant •SPAC Chair Dana Saar presented outline of strategic plan project approach at Jan. 4 Town Council meeting •SPAC is partnering with the Fountain Hills Cultural and Civic Assoc. on a visioning process which includes a web-based community survey launched Feb. 3 Strategic Plan Update •The results from the community survey will be compiled and utilized during a town hall meeting held at the Community Center on Saturday, May 7, 2016 •The report and outcome from the visioning town hall event will provide the data and citizen input allowing SPAC to prepare its update to the 2015-16 Plan •SPAC anticipates that its first draft of the Strategic Plan Update will be completed no later than the end of 2016 •After completion of the draft Strategic Plan, SPAC will take the newly updated Strategic Plan to the Town Council for review and possible adoption Capital Projects Report 2015/16 Major Capital Projects •Ashbrook Wash Channelization Improvements ($2,145,000 total; $1,310,000 CIP; $835,000 Grant) - initiated •Miscellaneous Drainage Projects ($50,000 CIP) - initiated •Downtown Vision Plan “Avenue/Lakeside Project” ($200,000 Downtown Fund) - not initiated •Fire Station #2 Relocation Project ($3,650,000) – initiated •Fountain Park Improvements ($910,000 CIP; actual approx. $750,000) - completed •Fountain Lake Water Quality Improvements ($200,000 CIP) – initiated •Adero Canyon Trailhead ($20,000) - initiated Major Capital Projects cont…… •Shea/Saguaro Street Project ($1,000,000 total: $300,000 CIP; $700,000 MAG/McDOT) - completed •Saguaro Blvd. Road Bond Reconstruction ($5,000,000 bonds) - completed •Palisades/Saguaro Traffic Signal Upgrades ($380,000 CIP) - completed •Fountain Hills Blvd. Shoulder Paving Project ($500,000 total; $245,000 CIP; $255,000 grant) - initiated •McDowell Mountain Road Repairs ($65,000 CIP) - initiated •Contingency ($272,885 CIP) Total $14,392,885 Capital Projects CIP Funding Status Fund Balance at 12/31/2015 $ 5,599,910 Less: Projects initiated but not yet complete D6030 – Drainage-Ashbrook Wash 759,544 F4005 – Fire Station 2 Relocation 3,649,004 S6005 – Shea Blvd. Widening 131,339 S6010 – Saguaro Blvd Reconstruction 241,444 S6053 – Fountain Hills Boulevard Shoulder Paving 481,165 Other projects 445,272 Available Balance $ <107,858>* * Does not reflect monies to be received from grants ($2,002,955) or development fees ($686,549) Capital Projects FY16-17 Capital Projects •D6030 – Ashbrook Wash ($700,000 CIP) •D6047 – Miscellaneous Drainage Improvements ($50,000 CIP) •E8502 – Downtown Vision Master Plan ($400,000 Downtown Strategy Fund) •F4005 – Fire Station No. 2 Relocation (Total $3,650,000; $3,395,700 CIP; $254,300 Development Fees) •F4030 – Chiller Installation ($250,000 CIP) •G5203 – Tennis Courts Rehabilitation (Total $390,000; $179,000 CIP; $211,000 Grant) Capital Projects - continued FY16-17 Capital Projects - continued •P3022 – Fountain Lake Water Quality Improvements ($205,000 CIP) •P3025 – Adero Canyon Trailhead (Total $2,285,000; $485,669 CIP; $1,799,331 Development Fees) •P3026 – Fountain Park Access Improvements ($375,000 CIP) •P3027 – Four Peaks Park – Phase I (bus barn removal) ($75,000) •S6003 – Unpaved Alley Paving – Phase IV ($255,000) •S6053 – Fountain Hills Blvd. Shoulder Paving (Total $500,000; $245,000 CIP; $255,000 Grant) Total $9,135,000 Capital Projects-continued FY16-17 Capital Projects – continued Funding: CIP $6,215,369 Development Fees $2,053,631 Grants $466,000 Downtown Strategy Fund $400,000 Total $9,135,000 Town of Fountain Hills Pavement Management Program Historical Streets Revenue & Road Maintenance Fiscal Year HURF Revenue Total Road Maintenance GF/CIP Contribution 2001 $ 1,061,521 $ 1,281,528 $ 1,034,234 2002 $ 1,254,816 $ 968,745 $ 588,100 2003 $ 1,310,997 $ 306,356 $ - 2004 $ 1,400,448 $ 540,428 $ - 2005 $ 1,471,032 $ 595,289 $ - 2006 $ 1,574,453 $ 548,074 $ 519,869 2007 $ 1,750,051 $ 1,171,728 $ - 2008 $ 1,682,055 $ 1,275,378 $ 171,089 2009 $ 1,468,335 $ 651,214 $ - 2010 $ 1,391,100 $ 432,334 $ 33,028 2011 $ 1,396,075 $ 331,690 $ 323,431 2012 $ 1,126,762 $ 112,548 $ 80,951 2013 $ 1,232,187 $ 1,057,135 $ - 2014 $ 1,268,564 $ 1,980,509 $ 994,000 2015 $ 1,392,806 $ 163,897 $ - Total $ 20,563,845 $ 11,253,310 $ 3,744,702 Pavement Management Practices Historical pavement management practices have consisted of crack sealing, surface seals and slurry seals by maintenance zone once every seven years and was funded through a combination of HURF, General Funds and CIP Funds. The January 2009 Pavement Management Report completed by Stantec Engineering suggested the need for $1.2 million annually for pavement management projects. Stantec Engineering estimated that $2.8 million annually will be required to provide asphalt mill & overlays to 20% of the Town’s streets as well as slurry seal or surface seal treatments to the remaining streets. This is a long term pavement management program that will target one of seven pavement management zones each year and will replace the entire public street network over a 35 year period. The Town Council approved a budget of approximately $1million toward an annual street maintenance program to maintain an acceptable asphalt condition to the street system. While this will provide some benefit to prolonging the lifespan of the streets it is not a long-term, sustainable program without an asphalt replacement program. The maintenance program is perpetual in nature but will not address reconstruction of the poorly rated roads such as Saguaro Boulevard, for which the voters of Fountain Hills recently provided a much needed road bond to address replacement of this 40-year-old arterial street. Additionally, Surface Maintenance Seals are no longer an option for 40 year or older streets. It will be necessary that other similar aged arterial streets in need of replacement be approached in the same manner as the Saguaro Road Bond Project in the future. Pavement Management Practices cont….. All asphalt needs to be removed and replaced. In order to create a Sustainable Asphalt Replacement Program will require a minimum of $2 million annually operational capital to begin replacement of asphalt with a combination of future CIP Annual Planning and future Road Bonding. Revenue options for future consideration for asphalt replacement are: • Maintain the current $1 million annual asphalt maintenance program from the Vehicle License Tax and a portion of the HURF funds. • Consider future Arterial/Major Collector Road Bonds for roads with asphalt 40 years or older and has reached its useful life and beyond useful maintenance efforts. • Reprioritize a portion of annual Capital Improvement Plan (CIP) funds, where feasible, from the annual one-time construction sales tax to assist a portion of the required annual funding an Asphalt Replacement Program. • .2% Sales Tax when feasible to become available in FY2016/17 after paying for the McDowell Mountain Preserve dedicated only to an annual Asphalt Replacement Program in combination with additional reprioritized CIP annual funding where feasible. Planned Street Revenue & Road Maintenance and Asphalt Replacement Fiscal Year HURF/VLT Revenue Excise Tax/ General Fund* CIP Fund 2017 $ 1,000,000 $ 650,000 $ 200,000 2018 $ 1,000,000 $ 700,000 $ 200,000 2019 $ 1,000,000 $ 700,000 $ 200,000 2020 $ 1,000,000 $ 700,000 $ 200,000 2021 $ 1,000,000 $1,000,000* $ 200,000 2022 $ 1,000,000 $ 850,000* $ 200,000 2023 $ 1,000,000 $ 900,000* $ 200,000 2024 $ 1,000,000 $1,000,000* $ 200,000 2025 $ 1,000,000 $1,000,000* $ 200,000 2026 $ 1,000,000 $1,000,000* $ 200,000 Total (est.) $10,000,000 $8,500,000 $ 2,000,000 *Additional monies after Community Center Bond Redemption Total $20,500,000 • 390 Lane Miles • 3,4600,000 SY of Asphalt • 7 Pavement Management Zones Anticipated Schedule FY11-12: Zone 5 FY12-13: Zone 6 FY13-14: Zone 7 FY14-15: NA FY15-16: Zone 1 FY16-17: Zone 1 FY17-18: Zone 1 FY18-19: Zone 2 FY19-20: Zone 2 FY20-21: Zone 2 FY21-22: Zone 3 FY22-23: Zone 3 Pavement Management Program Pavement Management Program FY2015-16: Zone 1 (completed) • Grande • El Pueblo • Glenbrook • Fayette • Del Cambre • Pepperwood Project cost was approximately $1.6 million including design, ADA improvements, asphalt mill & overlay, striping and utility adjustments. Pavement Management Program FY2016-17: Zone 1 • Bainbridge • La Montana • Various Locations • Surface Seal Shea Blvd. (Technology to Scottsdale) • Approx. Cost = $1.0 Million Pavement Management Program FY2017-18: Zone 1 • Slurry Seal Zone 1 • Approx. Cost = $1.1 Million Pavement Management Program FY2018-19: Zone 2 • La Montana • Avenue of the Fountains • Parkview • Verde River • El Lago • Gunsight • Panorama • La Montana (east of Saguaro) • Approx. Cost = $1.8 Million Pavement Management Program FY2019-20: Zone 2 • Kingstree • Inca • Kiwanis • Various Locations • Surface Seal Saguaro Blvd. • Surface Seal Shea Blvd. (East Border to Technology) • Approx. Cost = $1.5 Million Pavement Management Program FY2020-21: Zone 2 Slurry Seal • Slurry Seal Zone 2 • Approx. Cost = $700,000 Economic Development Plan Focused Approach Vibrant Sustainable Community Targeted Industry Sectors Economic Objectives Grow Our Economy Maximize Our Talent Enhance Our Community Business Attraction Business Retention & Expansion Entrepreneurial Development Foundational Maintenance Locational Catalysts Retail Education Professional, Technical & Scientific Services Healthcare, Medical, Biosciences & Wellness Finance & Insurance Tourism & Recreation Economic Development Planning Approach EV1 – Strategic Plan Goal Consensus Based Economic Development Implementation Plan (EV1) Tourism Strategy (EV5) Business Attraction Strategy (EV 4) Downtown Strategy (EV3) STRATEGY DEVELOPMENT: Area Specific Plan Implementation Strategy (Hyatt/Palma; Swaback Plan; ULI Plan) Mixed Used Development Zoning (Smart Growth Principles); Development Incentives; Capital Wayfinding Plan Funding Plan STRATEGY DEVELOPMENT: -Promotion/Branding Marketing New Events Planning -Website(s)/Electronic Media -Funding STRATEGY DEVELOPMENT *54- Professional, Technical, Scientific Services Businesses *52- Finance, Insurance, Businesses *62- Health Care -Industry Retention & Expansion Program -Website Enhancement Industry Retention & Expansion Program/Retail Attraction -Website/Electronic Media Stakeholders: Town of FH, SPAC, FH Chamber of Commerce, FH Business Alliance Ft. McDowell, FH Sanitary District, FH School District, Utilities, Developers, Commercial Property Owners, Commercial Real Estate Leasing Agents, Community Leaders Economic Development Successes •Business Attraction –Tractor Supply Company, Kewpie Egg World Trading Company, Mayo Clinic IT/Administration, Davita/Southwest Kidney Institute and Bealls Outlet Department Store (Opening June 2016) •Business Retention & Expansion –Brokers Alliance, Prevco Subsea •External Marketing –Digital postcard, economic development brochure, website and expanded network –NerdWallet and Movoto.com Economic Development Opportunities •Social Media –More activity on Twitter, Facebook, LinkedIn, YouTube •Redevelopment –Downtown Strategy •Retail –Lack of population density •Job Growth - Attraction –Available workforce concerns Fountain Hills Workforce FY 2015-16 Tourism Activities •Awarded $25,000 grant from Arizona Office of Tourism •Awarded $25,000 grant from Salt River Pima Indian Community •Continuation of branding “Experience Fountain Hills” •Implementation of a strategic marketing strategy •Design and implementation of existing and new publications •Continued revitalization of tourism programs •Stakeholder meetings, presentations, and outreach incentives and initiatives •Online advertising –Ad retargeting –Social Branding/advertising •Brand exposure throughout valley –Phoenix Magazine –Valley Guide –Spring Training Fields –Phoenix Open •Launch of Newly renovated tourism website Tourism: Where do we go from here? •Continuing marketing efforts and expanding into new medias/publications: –Continued advertising on Facebook –Ad placements with Phoenix Magazine –Listings with the Arizona Office of Tourism guides –Continued updating of website with industry standard tools to maximize user-friendly look and feel –Implementation of “itineraries” as new marketing hook •New Online Marketing & Retargeting Campaign –Geo Tracking –Call Tracking –Online Ad retargeting •Create new industry relationships –Stakeholder meetings to create and discuss common goals and initiatives - Scheduled for second week in September –Outreach to neighboring CVB’s –Visiting local businesses and interacting with business owners promoting this program •Implementation of 4 Year Strategic Tourism Plan –Plan gives a specific look at the Tourism division addressing the programs goals, initiatives and division guidelines for advertising, marketing, events and public interaction/advocacy Public Safety Public Safety Law Enforcement Services •Current law enforcement services are contracted with Maricopa County Sheriff’s Office •Current MCSO contract runs until June 2017 •Contract based on actual costs from prior fiscal year •Growing annually by 7-10% •Unfunded liability with Public Safety Pension System is major driver of increased costs •MCSO began deploying body cameras in FH in January ‘16 •MCSO changed deputy work schedules from 3-13 work week to 4-10s Public Safety Emergency Fire/Rescue Services •Current fire and emergency medical services contracted with Rural Metro •Town owns fire stations, vehicles, and equipment •Current Rural Metro contract runs until June 2018 •Under terms of contract, cost of services go up 3.5% annually •Ambulances now staffed with firefighters (began in 2015) –Improves command structure/coordination, adds additional firefighters at no added cost to Town •Issues: •Rural Metro acquired by AMR last December •Will be evaluating impacts, if any, on services V.J \**r\M.JL JL 4»JLi XVJ^iv3J-iX\.t JLt /b.J.^1 /aJLi JL <3 JL »3 21289 E. Lords Way Queen Creek,AZ 85142 support@azreservestudy.com Tel: (480)840-7130 Fax:(888)842-9319 DRAFT January 11,2016 Town of Fountain Hills Development Services Regarding: FY2016/17 -Level I Capital Replacement Reserve Analysis We are pleased to submit this Level I Reserve Study for Town of Fountain Hills Development Services. This report is a budgeting tool designed to help you navigate the uncertain future.It contains financial projections to help you understand your future reserve expenses.This report will help you answer the questions "Do we have enough in our Reserve account?"and "How much do we need to contribute to our reserve fund?" Ifyou have questions about the Reserve Study,please contact us at (480)840-7130.We look forward to doing business with you in the future. Thank you, Capital Reserve Analysts Fund Balance Fiscal Quarter-End Fund Balances (Unaudited) December 31,2015 Legally Restricted Council Restricted Operating Funds i 99 Rainy Day Fund $2,624,843 Y 100 General Fund 5,621,670 410 Public Art Fund 5,919 Y 800 Internal Service Fund (7,395) 810 Vehicle Replacement Fund 668,521 $ 8,913,558 200 Highway User Revenue Fund (HURF)668,627 668,627 Special Revenue Funds 400 Special Revenue Fund 54,643 Y 420 Court Enhancement Fund 284,259 Y 460 Environmental Fund 13,711 Y 550 Cottonwoods Maintenance District Fund 13,338 365,951 Y Excise Tax Funds 300 Downtown Strategy Fund 886,729 Y 310 Economic Development Fund 57,905 Y 320 Tourism Fund 88,920 1,033,554 Y Y Debt Service 510 General Obligation Debt Service Fund 1,530,848 Y 520 Eagle Mountain CFD Debt Service Fund 297,157 Y Y530MPCDebtServiceFund426,986 2,254,991 Capital Projects 600 Capital Projects Fund 5,599,910 Y 610 Facilities Replacement Fund 170,227 5,770,137 Y1DevelopmentFees 710 j Law Enforcement 203,484 Y 720 !Fire & Emergency 97,008 Y 730 ;Streets -Y 740 ;Parks &Recreation 229,338 Y 750 :1 Open Space 1,660,059 Y 760 | 1 Library/Museum -2,189,889 Y |Grand Total $21,196,707 lofl C:\Users\crudolphy\Desktop\Fund Restrictions.xlsx/Fund Balance