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Home My WebLink About041409PC:\Documents and Settings\JBaxter\My Documents\Bev's files\Workstudy 4-14-2009.docx Page 1 of 1 NOTICE OF THE WORK STUDY SESSION OF THE FOUNTAIN HILLS TOWN COUNCIL TIME: 5:30 P.M. - 7:30 P. M. WHEN: TUESDAY, APRIL 14, 2009 WHERE: FOUNTAIN HILLS COUNCIL CHAMBERS 16705 E. AVENUE OF THE FOUNTAINS, FOUNTAIN HILLS, AZ ALL WORK-STUDY ITEMS LISTED ARE FOR DISCUSSION ONLY. NO ACTION CAN OR WILL BE TAKEN. The primary purpose of work session meetings is to provide the Town Council with the opportunity for in-depth discussion and study of specific subjects. Public comment is not provided for on the Agenda and may be made only as approved by consensus of the Council. In appropriate circumstances, a brief presentation may be permitted by a member of the public or another interested party on an Agenda item if invited by the Mayor or the Town Manager to do so. The Presiding Officer may limit or end the time for such presentations. 1.) CALL TO ORDER AND ROLL CALL – Mayor Schlum 2.) DISCUSSION regarding the Master Subscription with Rural Metro for providing ambulance service to Fountain Hills residents. 3.) PRESENTATION of draft budget of all funds of the Town of Fountain Hills for Fiscal Year 2009-10. 4.) ADJOURNMENT. DATED this 13th day of April, 2009. Janice E. Baxter Acting 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 attend 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. Mayor Jay T. Schlum Vice Mayor Mike Archambault Councilmember Cassie Hansen Councilmember Dennis Contino Councilmember Henry Leger Councilmember Ginny Dickey Councilmember Keith McMahan (6/04 – 3/09) 1 TOWN OF FOUNTAIN HILLS Presented by: Rick Davis, Town ManagerJulie Ghetti, Deputy Town Manager/Finance DirectorMary Martin, Accounting Supervisor April 14, 2009 FY09-10 Draft Budget Fiscal Year 2009-2010 Proposed Budget 2 REVENUES ALL FUNDS April 14, 2009FY09-10 Draft Budget Major revenue sources: Shared Revenues $7.6M Local Revenues $8.8M Bond Proceeds $4.5M Stimulus Funds $2.5M Grants $2.6M Development Fees $0.1M Debt Service $3.2M Capital Projects $2.5M 3 EXPENDITURES ALL FUNDS April 14, 2009 FY09-10 Draft Budget •General Fund is the Town’s operating fund and makes up 45% of total expenditures •40% of total expenditures are for capital projects funded by grants, stimulus and/or bond proceeds •General Fund is only fund not restricted for use •Expenditures for all funds equal $32.4M, but each fund should stand on its own 4April 14, 2009 FY09-10 Draft Budget FY09-10 BUDGETS BY FUND FUND REVENUES EXPENDITURES General Fund $14.7M $14.5M Highway User Revenue (HURF)$1.6M $1.6M Excise Tax –Economic Development $0.3M $0.4M Development Fees $0.1M $0.1M Special Revenue Fund (grants)$2.6M $2.6M Debt Service $3.1M $3.1M Capital Projects Fund $10.0M $12.8M 5 Financial policies have been amended to reclassify a portion of the General Fund balance to a “Rainy Day” Fund Rainy Day Fund will be programmed into FY09-10 budget to be used in event of revenue emergency (i.e., legislative appropriation of SSR) Voters will be asked to approve Revenue Bonds for major road improvements April 14, 2009 FY09-10 Draft Budget NEW INITIATIVES 6 A “Consolidated Fee Schedule” will be adopted and included in the budget and on the website New fees are being proposed (but not programmed into FY10 budget): Franchise fee on utilities Increase in telecommunications sales tax Liquor license application fees Revised development fees based on IIP Lease space in Town Hall April 14, 2009 FY09-10 Draft Budget NEW INITIATIVES 7 FY2009-10 PROPOSED REVENUES AND EXPENDITURES April 14, 2009 FY09-10 Draft Budget 8 FY08 FY09 FY10 Operating Budgets Actual Estimated Budget General Fund $16.7M $15.0M $14.7M Highway User (HURF)$1.9M $1.7M $1.6M Excise/Econ Dev Tax $0.3M $0.3M $0.3M April 14, 2009 FY09-10 Draft Budget FY09-10 OPERATING REVENUES 9 FY08 FY09 FY10 Operating Budgets Actual Estimated Budget General Fund $15.3M $15.0M $14.6M Highway User (HURF)$2.2M $2.2M $1.6M Excise/Econ Dev Tax $0.1M $0.2M $0.4M April 14, 2009 FY09-10 Draft Budget FY09-10 OPERATING EXPENDITURES 10 FY08 FY09 FY10 Capital Budgets Actual Estimated Budget Develop Fees $0.7M $0.1M $0.1M Excise Tax $0.4M $0.3M $0.3M CIP $2.1M $1.0M $0.5M Stimulus Funds $0.0M $0.0M $2.5M Grants $0.3M $0.5M $2.3M HURF $0.3M $0.8M $0.2M Bond Proceeds $0.0M $0.0M $4.5M April 14, 2009 FY09-10 Draft Budget FY09-10 CAPITAL REVENUES 11 FY08 FY09 FY10 Capital Budgets Actual Estimated Budget Downtown $0.0M $0.0M $0.3M Open Space $0.2M $21K $0.0M Parks $3.8M $1.7M $0.0M Streets $1.5M $2.0M $10.3M Traffic Signals $0.4M $0.4M $0.1M Stormwater/Drainage $0.0M $15K $0.1M General Government $0.5M $0.2M $0.1M Fire & Emergency $0.0M $0.1M $1.5M Vehicles $0.4M $48K $0.0M April 14, 2009 FY09-10 Draft Budget FY09-10 CAPITAL EXPENDITURES 12 FY08 FY09 FY10 Debt Service Budgets Actual Estimated Budget General Obligation $1.3M $1.2M $1.4M MPC $1.6M $1.3M $1.3M Revenue Bonds $0.1M $0.1M $0.1M Eagle Mountain CFD $0.3M $0.4M $0.4M April 14, 2009 FY09-10 Draft Budget FY09-10 DEBT SERVICE REVENUES 13 FY08 FY09 FY10 Debt Service Budgets Actual Estimated Budget General Obligation $1.4M $1.3M $1.3M MPC $1.3M $1.3M $1.4M Revenue Bonds $.1M $.1M $.1M Eagle Mountain CFD $.3M $.4M $.4M April 14, 2009 FY09-10 Draft Budget FY09-10 DEBT SERVICE EXPENDITURES 14 OPERATING BUDGETS HIGHLIGHTS April 14, 2009 FY09-10 Draft Budget 15April 14, 2009 FY09-10 Draft Budget 16April 14, 2009 FY09-10 Draft Budget 17April 14, 2009 FY09-10 Draft Budget General Fund Operating Budget State Shared Revenue based on population and distributed by the State $6.1M Local Sales Tax revenues estimate $6.6M Pays for: Public Safety $5.9M Public Works $1.4M P&Z $1.1M Recreation $2.7M Legislative & Admin $3.4M 18 Fountain Park overseeding Economic Development Programs Police and Fire Contracts with outside agencies: Boys & Girls Club of Scottsdale Fountain Hills Community Theater Fountain Hills Chamber of Commerce – Tourism Extended Hands Food Bank Special Transportation Services April 14, 2009 FY09-10 Draft Budget General Fund Operating Budget Sustained Levels of Service 19 No merit or cost of living increases programmed No overseeding in parks other than Fountain Park Mowing of turf reduced by half Palm tree trimming eliminated Reduced fleet by 11 pieces of equipment Fountain preventive maintenance delayed Print issues of AveNEWS reduced to 4 Wash Maintenance delayed Annual Pavement Management reduced April 14, 2009 FY09-10 Draft Budget General Fund Operating Budget Reduced levels of service 20April 14, 2009 FY09-10 Draft Budget Highway User Revenue Operating Fund (HURF) State Shared Revenue based on gasoline sales and population $1.5M Includes lottery proceeds (LTAF) $113.4K To be used solely for street and highway purposes Total expenditures $1.6M include $136K for final debt service payment on street bonds and $171K for pavement management program 21 Median maintenance (previously in Public Works) moved to Streets Department Personnel levels maintained Street sign maintenance continuing April 14, 2009 FY09-10 Draft Budget HURF Fund Operating Budget Sustained Level of Service 22 No merit or cost of living increases programmed Reduced fleet maintenance by 11 vehicles Street Sign replacement completed April 14, 2009 FY09-10 Draft Budget HURF Fund Operating Budget Reduced Level of Service 23April 14, 2009 FY09-10 Draft Budget Excise Tax Revenue Operating Fund (Economic Development) Revenues are from .1% local sales (excise) tax $300K To be used solely for economic and downtown development Total expenditures of $383K includes $250K for reimbursement to Developer for downtown improvements per development agreement 24 CAPITAL BUDGETS HIGHLIGHTS April 14, 2009 FY09-10 Draft Budget 25April 14, 2009 FY09-10 Draft Budget CAPITAL PROJECTS Project Description FY2008-09 Costs Town Square Avenue of the Fountains Improvements per development agreement (Economic Development Fund) $250,000 Shea Boulevard Climbing lane (stimulus, CIP and MAG funds) $2,704,378 Shea Boulevard Widening project (MAG and CIP funds) $1,600,000 26April 14, 2009 FY09-10 Draft Budget CAPITAL PROJECTS Project Description FY2008-09 Costs Saguaro Boulevard Mill and Overlay (bond proceeds) $4,500,000 Sidewalks FH Boulevard, AOTF Downtown (CIP and Grant funds) $756,843 Traffic Signal Upgrades Upgrading to TS2 Standard (Development Fees) $142,000 27April 14, 2009 FY09-10 Draft Budget CAPITAL PROJECTS Project Description FY2008-09 Costs Drainage Del Cambre (CIP)$86,000 Pavement Management Program Slurry seal –Zone 4a (HURF and CIP) $456,000 Fire Station Relocation of station from Saguaro to Shea (stimulus funds) $1,456,103 28April 14, 2009 FY09-10 Draft Budget CAPITAL PROJECTS Project Description FY2008-09 Costs Municipal Government Software Phase II of integration (GIS and/or HR modules) $100,000 Emergency Operations Center Town Hall EOC modifications (grant funds) $80,000 29 DEBT SERVICE BUDGETS HIGHLIGHTS April 14, 2009 FY09-10 Draft Budget 30 FY10 Revenue Payment Source Street bonds $136K HURF Gen Ob bonds $1.4M Prop Tax MPC bonds $1.4M Excise Tax EMCFD $0.4K Prop Tax April 14, 2009 FY09-10 Draft Budget Debt Service Schedule 31April 14, 2009 FY09-10 Draft Budget TAX LEVY FOR BONDS FiscalYear Secondary Assessed Valuation (AV) General Obligation Tax Levy Tax Rate for Fountain Hills Bonds (per $100 of AV) FY06-07 $397,380,162 $1.4M $0.3012 FY07-08 $610,738,133 $1.4M $0.2124 FY08-09 $684,742,347 $1.4M $0.1972 FY09-10*$651,218,464 $1.4M $0.2173 *Estimated 32 Further public outreach with a work-study on 4/28 and an open house on May 6 Adopt the tentative budget on May 21 as the final budget with staff and Council proposed changes Adopt final budget on June 4 to allow enough time to approve tax levy on June 18 -State law requires a period of at least fourteen days between adoption of the final budget and adoption of the tax levy April 14, 2009 FY09-10 Draft Budget Where do we go from here? 33 All funds are balanced No increases in staff, merit, cost of living or salaries Council and strategic goals framed proposed budget Increased reliance on outside funding sources for capital projects Service level cuts were made that affect maintenance of infrastructure but should have minimal short term impact on residents. April 14, 2009 FY09-10 Draft Budget SUMMARY