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HomeMy WebLinkAbout120607PREVISED: 6/4/12 NOTICE OF THE REGULAR AND SPECIAL SESSIONS OF THE FOUNTAIN HILLS TOWN COUNCIL TIME: (i) REGULAR SESSION convenes immediately following the adjournment of the Cottonwoods Maintenance District Board Meeting (ii) SPECIAL SESSION convenes immediately following the adjournment of the Regular Session of the Fountain Hills Town Council WHEN: THURSDAY, JUNE 7, 2012 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 Commissions or Boards 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 recordi ng 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 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 Councilmember Dennis Brown Councilmember Cassie Hansen Vice Mayor Ginny Dickey Councilmember Henry Leger Councilmember Tait D. Elkie Councilmember Cecil A. Yates REVISED: 6/4/12 Z:\Council Packets\2012\R6-7-12\120607A.docx Last printed 6/4/2012 5:26 PM Page 2 of 3 REGULAR SESSION AGENDA  CALL TO ORDER AND PLEDGE OF ALLEGIANCE – Mayor Linda M. Kavanagh  INVOCATION – Dr. C. T. Wright, Vice President of Fountain Hills Unified School District  ROLL CALL – Mayor Linda M. Kavanagh  MAYOR’S REPORT i.) Rotation of the Vice Mayor position to Councilmember Leger. Pursuant to Section 2-2-2 of the Fountain Hills Town Code, that each member of the Council, except the Mayor, shall serve an eight-month term as Vice Mayor and shall perform the duties of the Mayor during his absence or disability.  SCHEDULED PUBLIC APPEARANCES/PRESENTATIONS i.) None. CALL TO THE PUBLIC Pursuant to A.R.S. §38-431-01(G), public comment is permitted (not required) on matters not listed on the agenda. Any such comment (i) must be within the jurisdiction of the Council and (ii) is subject to reasonable time, place, and manner restrictions. The Council will not discuss or take legal action on matters raised during “Call to the Public” unless the matters are properly noticed for discussion and legal action. At the conclusion of the call to the public, individual Councilmembers may (i) respond to criticism, (ii) ask staff to review a matter or (iii) ask that the matter be placed on a future Council agenda. CONSENT AGENDA ITEMS 1. CONSIDERATION of approving the TOWN COUNCIL MEETING MINUTES from April 30, 2012; and May 8, 17, and 22, 2012. 2. CONSIDERATION of AUTHORIZING payment to the Maricopa County Elections Department, in accordance with the IGA (InterGovernmental Agreement), for direct support of the Town of Fountain Hills May 15, 2012, General Election, in the amount of $34,076.88. 3. CONSIDERATION of RESOLUTION 2012-15, abandoning whatever right, title, or interest the Town has in certain portions of the 10’ Public Utility and Drainage Easement located at the rear portions of the southwest and southeast property lines of Plat 505C, Block 3, Lot 26 (16422 North Skyridge Lane) as recorded in Book 158 of Maps, Page 42, Records of Maricopa County, Arizona EA12-03 (Hursh). 4. CONSIDERATION of RESOLUTION 2012-17, relating to accepting a non-matching GRANT with Maricopa County Emergency Management Department, not to exceed $20,000, for fire fuels reduction. 5. CONSIDERATION of approving the CANCELLATION of the Town of Fountain Hills July Council meetings (July 5, 10, & 19, 2012). REVISED: 6/4/12 Z:\Council Packets\2012\R6-7-12\120607A.docx Last printed 6/4/2012 5:26 PM Page 3 of 3 6. CONSIDERATION of APPOINTING Councilmembers Cassie Hansen, Tait D. Elkie, and Cecil A. Yates to a Town Council Subcommittee for the purpose of interviewing Strategic Planning Advisory Commission applicants. REGULAR AGENDA ITEMS 7. CONSIDERATION of MOVING the Keith McMahan monument/plaque, presently located on the median of Avenue of the Fountains, to the Keith McMahan memorial at the L. Alan Cruikshank River of Time Museum. 8. CONSIDERATION of RESOLUTION 2012-02, amending the Town of Fountain Hills financial policies Section III to comply with Government Accounting Standards Board (GASB) No. 54, fund balance reporting and governmental fund type definitions and appointment and AMENDING AND RESTATING the Town of Fountain Hills Financial Policy. 9. COUNCIL DISCUSSION/DIRECTION to the Town Manager Ken Buchanan. Items listed below are related only to the propriety of (i) placing such items on a future agenda for action or (ii) directing staff to conduct further research and report back to the Council: A. NONE. 10. SUMMARY of Council requests and REPORT ON RECENT ACTIVITIES by the Town Manager Ken Buchanan. 11. ADJOURNMENT of the Regular Session. SPECIAL SESSION AGENDA  CALL TO ORDER AND ROLL CALL – Mayor Linda M. Kavanagh SPECIAL AGENDA ITEMS 1. PUBLIC HEARING regarding RESOLUTION 2012-11, approving the estimates of expenses, assessments, and the Tentative Budget as the Final Budget for the 2012-13 Fiscal Year budget for the Town of Fountain Hills. 2. CONSIDERATION of RESOLUTION 2012-11, approving the estimates of expenses, assessments, and the Tentative Budget as the Final Budget for the 2012-13 Fiscal Year budget for the Town of Fountain Hills. 3. CONSIDERATION of RESOLUTION 2012-18, providing general direction on policy administration of the adopted FY2012-13 budget, adopting the Town of Fountain Hills Organizational Chart, FY2012-13 Authorized Full-Time Equivalents (FTE’s) with associated job descriptions, and the FY2012-13 Pay Plan. 4. ADJOURNMENT of the Special Session. DATED this 31st day of May, 2012. _____________________________________ 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. REVISED: 6/4/12 NOTICE OF THE REGULAR AND SPECIAL SESSIONS OF THE FOUNTAIN HILLS TOWN COUNCIL TIME: (i) REGULAR SESSION convenes immediately following the adjournment of the Cottonwoods Maintenance District Board Meeting (ii) SPECIAL SESSION convenes immediately following the adjournment of the Regular Session of the Fountain Hills Town Council WHEN: THURSDAY, JUNE 7, 2012 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 Commissions or Boards 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 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 Councilmember Dennis Brown Councilmember Cassie Hansen Vice Mayor Ginny Dickey Councilmember Henry Leger Councilmember Tait D. Elkie Councilmember Cecil A. Yates REVISED: 6/4/12 Z:\Council Packets\2012\R6-7-12\120607A.docx Last printed 6/4/2012 5:26 PM Page 2 of 3 REGULAR SESSION AGENDA  CALL TO ORDER AND PLEDGE OF ALLEGIANCE – Mayor Linda M. Kavanagh  INVOCATION – Dr. C. T. Wright, Vice President of Fountain Hills Unified School District  ROLL CALL – Mayor Linda M. Kavanagh  MAYOR’S REPORT i.) Rotation of the Vice Mayor position to Councilmember Leger. Pursuant to Section 2-2-2 of the Fountain Hills Town Code, that each member of the Council, except the Mayor, shall serve an eight-month term as Vice Mayor and shall perform the duties of the Mayor during his absence or disability.  SCHEDULED PUBLIC APPEARANCES/PRESENTATIONS i.) None. CALL TO THE PUBLIC Pursuant to A.R.S. §38-431-01(G), public comment is permitted (not required) on matters not listed on the agenda. Any such comment (i) must be within the jurisdiction of the Council and (ii) is subject to reasonable time, place, and manner restrictions. The Council will not discuss or take legal action on matters raised during “Call to the Public” unless the matters are properly noticed for discussion and legal action. At the conclusion of the call to the public, individual Councilmembers may (i) respond to criticism, (ii) ask staff to review a matter or (iii) ask that the matter be placed on a future Council agenda. CONSENT AGENDA ITEMS 1. CONSIDERATION of approving the TOWN COUNCIL MEETING MINUTES from April 30, 2012; and May 8, 17, and 22, 2012. 2. CONSIDERATION of AUTHORIZING payment to the Maricopa County Elections Department, in accordance with the IGA (InterGovernmental Agreement), for direct support of the Town of Fountain Hills May 15, 2012, General Election, in the amount of $34,076.88. 3. CONSIDERATION of RESOLUTION 2012-15, abandoning whatever right, title, or interest the Town has in certain portions of the 10’ Public Utility and Drainage Easement located at the rear portions of the southwest and southeast property lines of Plat 505C, Block 3, Lot 26 (16422 North Skyridge Lane) as recorded in Book 158 of Maps, Page 42, Records of Maricopa County, Arizona EA12-03 (Hursh). 4. CONSIDERATION of RESOLUTION 2012-17, relating to accepting a non-matching GRANT with Maricopa County Emergency Management Department, not to exceed $20,000, for fire fuels reduction. 5. CONSIDERATION of approving the CANCELLATION of the Town of Fountain Hills July Council meetings (July 5, 10, & 19, 2012). REVISED: 6/4/12 Z:\Council Packets\2012\R6-7-12\120607A.docx Last printed 6/4/2012 5:26 PM Page 3 of 3 6. CONSIDERATION of APPOINTING Councilmembers Cassie Hansen, Tait D. Elkie, and Cecil A. Yates to a Town Council Subcommittee for the purpose of interviewing Strategic Planning Advisory Commission applicants. REGULAR AGENDA ITEMS 7. CONSIDERATION of MOVING the Keith McMahan monument/plaque, presently located on the median of Avenue of the Fountains, to the Keith McMahan memorial at the L. Alan Cruikshank River of Time Museum. 8. CONSIDERATION of RESOLUTION 2012-02, amending the Town of Fountain Hills financial policies Section III to comply with Government Accounting Standards Board (GASB) No. 54, fund balance reporting and governmental fund type definitions and appointment and AMENDING AND RESTATING the Town of Fountain Hills Financial Policy. 9. COUNCIL DISCUSSION/DIRECTION to the Town Manager Ken Buchanan. Items listed below are related only to the propriety of (i) placing such items on a future agenda for action or (ii) directing staff to conduct further research and report back to the Council: A. NONE. 10. SUMMARY of Council requests and REPORT ON RECENT ACTIVITIES by the Town Manager Ken Buchanan. 11. ADJOURNMENT of the Regular Session. SPECIAL SESSION AGENDA  CALL TO ORDER AND ROLL CALL – Mayor Linda M. Kavanagh SPECIAL AGENDA ITEMS 1. PUBLIC HEARING regarding RESOLUTION 2012-11, approving the estimates of expenses, assessments, and the Tentative Budget as the Final Budget for the 2012-13 Fiscal Year budget for the Town of Fountain Hills. 2. CONSIDERATION of RESOLUTION 2012-11, approving the estimates of expenses, assessments, and the Tentative Budget as the Final Budget for the 2012-13 Fiscal Year budget for the Town of Fountain Hills. 3. CONSIDERATION of RESOLUTION 2012-18, providing general direction on policy administration of the adopted FY2012-13 budget, adopting the Town of Fountain Hills Organizational Chart, FY2012-13 Authorized Full-Time Equivalents (FTE’s) with associated job descriptions, and the FY2012-13 Pay Plan. 4. ADJOURNMENT of the Special Session. DATED this 31st day of May, 2012. _____________________________________ 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. 1726132.1 RESOLUTION NO. 2012-17 A RESOLUTION OF THE MAYOR AND COUNCIL OF THE TOWN OF FOUNTAIN HILLS, ARIZONA, AUTHORIZING THE ACCEPTANCE OF A FIREWISE COMMUNITY PROJECT GRANT FROM MARICOPA COUNTY, THROUGH THE DEPARTMENT OF EMERGENCY MANAGEMENT. WHEREAS, Maricopa County, through the Department of Emergency Management (the “County”), has awarded the Town of Fountain Hills (the “Town”) a grant for a Firewise Community Project relating to brush hazard mitigation (the “Grant”); and WHEREAS, the Mayor and Council of the Town of Fountain Hills (the “Town Council”) desire to accept the Grant. 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 Town Council hereby authorizes (i) the acceptance of the Grant in an amount not to exceed $20,000.00 and (ii) the execution of a Subgrantee Reimbursement Agreement between the County and the Town relating to acceptance and administration of the Grant funds (the “Agreement”) in the form attached hereto as 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 execute and submit the Agreement and any other necessary or desirable instruments in connection with the Grant and to take all steps necessary to carry out the purpose and intent of this Resolution. PASSED AND ADOPTED by the Mayor and Council of the Town of Fountain Hills, June 7, 2012. 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 1726132.1 EXHIBIT A TO RESOLUTION NO. 2012-17 [Agreement] See following pages. Page 1 of 5 1728203.2 SUBGRANTEE REIMBURSEMENT AGREEMENT Re: Town of Fountain Hills Firewise Community Project This Subgrantee Reimbursement Agreement (“Agreement”) is entered into by and between Maricopa County, through the Department of Emergency Management (“County”), and the Town of Fountain Hills, an Arizona municipal corporation (the "Town"). County and the Town of Fountain Hills are referred to herein as the “Parties.” RECITALS A. County and the U.S Forest Service have entered into Agreement 110-343, whereby the U.S. Forest Service has provided grant funding to County through Catalog of Federal Domestic Assistance (CFDA) #_10.665 to support the Maricopa County Firewise Communities Project (the "Project"). B. Pursuant to this Agreement, County will reimburse the Town for approved costs and expenses incurred in connection with the Project. AGREEMENT Now, therefore, for good and valuable consideration, the receipt and adequacy of which is mutually acknowledged, the Parties agree as follows: 1. Recitals. The Recitals are a material part of this Agreement and are incorporated as if fully set forth herein. 2. Reimbursement Award. County hereby agrees to reimburse the Town an amount not to exceed $20,000.00 for Approved Activities (as defined below) during the reimbursement period. 3. Use of Funds. The Town shall use the award in strict compliance with the guidance found in the _www.cfda.gov-10.665 for the Secure Rural Schools and Community Self-Determination Act of 2000. The efforts under this assistance agreement must follow the goals of the Program, which are to provide homeowners in fire sensitive ecosystems education and assistance with implementing techniques in home siting, home construction, and home landscaping that can increase the protection of people and property from wildfires. Use of funds includes costs related to activities such as removal of dead trees, promoting and teaching defensible space, and brush removal (collectively, "Approved Activities"). To ensure reimbursement, prior approval of a plan for Approved Activities must be obtained from the Maricopa County Department of Emergency Management. 4. Reimbursement Period. The reimbursement period is effective July 1, 2012 and expires September 17, 2012. Page 2 of 5 1728203.2 5. Reimbursement Requests. Each request for reimbursement shall be in writing and addressed to Maricopa County Department of Emergency Management, Attention: Finance Manager, 5630 E. McDowell Rd, Phoenix, Arizona 85008. Each request shall (A) specify the grant agreement number stated above, (B) specify the project name and number, (C) specify the dollar amount of reimbursement requested, (D) specify the name, address, and point of contact to receive the reimbursement, and (E) enclose all backup documentation, such as invoices, proofs of purchase, proofs of payment, receipts, purchase orders, canceled checks, and, if applicable, product specifications. Reimbursement requests shall be made no less than on a quarterly basis and must be received by September 17, 2012. The Town will be reimbursed for only the amount actually spent on Authorized Activities. Total reimbursement shall not exceed the reimbursement amount in Paragraph 2 above. 6. No Assignment. The Town may not assign this Agreement or delegate any obligation under this Agreement to any third party. 7. Modification. This Agreement expresses the entire agreement between the Parties. No modification of this Agreement is valid or enforceable unless it is in writing and signed by the Parties. 8. Effective Date. This Agreement is effective when signed by the Parties. 9. Availability of Funds. Reimbursement under this Agreement is conditioned upon the availability of funds appropriated and allocated by U.S. Forest Service for the payment of such reimbursement. If reimbursement funds are not available to County for any reason, County may terminate this Agreement and shall immediately notify the Town of such unavailability of funds. If this Agreement is terminated because reimbursement funds are not available, County shall have no liability to the Town whatsoever, and County shall not be obligated to pay or be liable to the Town for any pending or future reimbursement request or for any damages the Town incurs as a result of the termination of this Agreement or the failure of County to reimburse the Town. 10. No Liability. County and its officers, officials, agents, and employees shall not be liable for any act or omission by the Town and its officers, officials, agents, employees, or volunteers that occurs in connection with this Agreement, and County shall not be liable for any purchase or other agreement made by the Town in connection with this Agreement or in anticipation of reimbursement. Nothing in this Agreement may be construed as creating a partnership, joint venture, or any other agency-type relationship between County and the Town. The Town is not an officer, employee, or agent of County. 11. Indemnification. To the extent permitted by law, the Town, as indemnitor, agrees to indemnify, defend, and hold harmless County, as indemnitee, from and against any and all claims, losses, liability, costs, or expenses (including reasonable attorney’s fees) (hereinafter collectively referred to as “claims”) arising out of bodily Page 3 of 5 1728203.2 injury of any person (including death) or property damage, but only to the extent that such claims are caused by the act, omission, negligence, misconduct, or other fault of the Town and its officers, officials, agents or employees who are engaged in Authorized Activities in connection with this Agreement. 12. Termination. County may terminate this Agreement if the Town fails to comply with any material/substantive term of this Agreement. Upon termination, County shall not be obligated to reimburse the Town for any pending or future reimbursement request or any other unpaid costs or expenses. 13. Certification Regarding Debarment and Suspension. The undersigned (authorized official signing for the Town) certifies to the best of his or her knowledge and belief, that the Contractor, defined as the primary participant in accordance with 45 CFR Part 76, and its principles: A. Are not presently debarred, suspended, proposed for debarment, declared ineligible, or voluntary excluded from covered transaction by any Federal Department or agency; B. Have not within 3-year period preceding this Agreement been convicted of or had a civil judgment rendered against them for commission of fraud or a criminal offense in connection with obtaining, attempting to obtain, or performing a pubic (Federal, State, or local) transaction or contract under a public transaction; violation of Federal, State antitrust statues or commission of embezzlement, theft, forgery, bribery, falsification or destruction of records, making false statement, or receiving stolen property; C. Are not presently indicted or otherwise criminally or civilly charged by a government entity (Federal, State or local) with commission of any of the offenses enumerated in paragraph (B) of this certification ; and D. Have not within a 3-year period preceding this Agreement had one or more public transaction (Federal, State and local) terminated for cause of default (1) Should the Town not be able to provide this certification, an explanation as to why should be attached to the Agreement. (2) The Town agrees to include, without modification, this clause in all lower tier covered transactions (i.e. transactions with Page 4 of 5 1728203.2 subcontractors) and in all solicitations for lower tier covered transaction related to this Agreement. 14. Notices. All notices and demands between the Parties under this Agreement shall be in writing and hand-delivered or sent by prepaid certified mail, return receipt requested, through the United States Postal Service to the following: Maricopa County: Sara Latin Maricopa County Dept of Emergency Management 5630 E. McDowell Rd. Phoenix, Arizona 85008 Phone 602-273-1411 Town of Fountain Hills: Raymond Rees Town of Fountain Hills 16705 E. Avenue of the Fountains Fountain Hills, AZ 85268 Phone 480-816-5180 and copy to: Kenneth W. Buchanan Town of Fountain Hills 16705 E. Avenue of the Fountains Fountain Hills, AZ 85268 Phone 480-816-5130 15. Cancellation. This Agreement may be cancelled pursuant to A.R.S. § 38- 511. [SIGNATURES ON FOLLOWING PAGE] Page 5 of 5 1728203.2 IN WITNESS WHEREOF, the Parties have executed this Agreement as of the date of the last signature set forth below. “County” “Town” MARICOPA COUNTY TOWN OF FOUNTAIN HILLS, an Arizona municipal corporation By: By: Max Wilson, Chairman Kenneth W. Buchanan, Town Manager Board of Supervisors Date: Date: ATTEST: ATTEST: Fran McCarroll, Board Clerk Bevelyn J. Bender, Town Clerk Page 1 of 2 TOWN OF FOUNTAIN HILLS TOWN COUNCIL AGENDA ACTION FORM Meeting Date: 6/7/2012 Meeting Type: Regular Session Agenda Type: Consent Submitting Department: Administration Staff Contact Information: Town Manager Ken Buchanan; kbuchanan@fh.az.gov; 480-816-5107 Strategic Values: All Council Goal: All REQUEST TO COUNCIL (Agenda Language): CONSIDERATION of appointing Councilmembers Cassie Hansen, Tait Elkie, and Cecil A. Yates to a Town Council Subcommittee for the purpose of interviewing Strategic Planning Advisory Commission applicants. Applicant: N/A Applicant Contact Information: N/A Property Location: N/A Related Ordinance, Policy or Guiding Principle: Council Rules of Procedure Staff Summary (background): On June 30, 2012, two (2) commissioner terms on the Strategic Planning Advisory Commission will expire. The positions were advertised and four applications were received by the deadline on May 31, 2012. Copies of the applications received will be distributed to all Councilmembers simultaneous with the time they are provided to the Interview Subcommittee. It is anticipated that interviews will occur the week of June 11, 2012, and that appointments will be made at the Council meeting on June 21, 2012. Risk Analysis (options or alternatives with implications): N/A Fiscal Impact (initial and ongoing costs; budget status): N/A Budget Reference (page number): N/A Funding Source: NA If Multiple Funds utilized, list here: N/A Budgeted; if No, attach Budget Adjustment Form: NA Recommendation(s) by Board(s) or Commission(s): N/A Staff Recommendation(s): Move to appoint. List Attachment(s): N/A Page 2 of 2 SUGGESTED MOTION (for Council use): MOVE to appoint Councilmembers Cassie Hansen, Tait Elkie and Cecil A. Yates to a Town Council Subcommittee for the purpose of interviewing Strategic Planning Advisory Commission applicants. Approved: Ken Buchanan, Town Manager 6/4/2012 TO W N  OF  FO U N T A I N  HILLS PR O P O S E D  FI N A L  BU D G E T  FY12‐13 Ke n  Bu c h a n a n ,  To w n  Ma n a g e r Ju l i e  A.  Gh e t t i ,  De p u t y    To w n  Ma n a g e r / F i n a n c e  Director Ju n e ,  20 1 2 Te n t a t i v e  Bu d g e t Ap p r o v e d : $3 1 , 5 6 2 , 7 7 1 To n i g h t ’ s  Bu d g e t  Pr e s e n t a t i o n • Bu d g e t  Ov e r v i e w • Or g a n i z a t i o n / P e r s o n n e l • De b t • De p a r t m e n t a l  Bu d g e t s – Pu b l i c  Sa f e t y • Fi r e / E m e r g e n c y  Se r v i c e s • Sh e r i f f • Ju d i c i a l – De v e l o p m e n t  Se r v i c e s :  Bu i l d i n g  Sa f e t y ;  Co d e  Co m p l i a n c e ;  En g i n e e r i n g ;  Facilities; Mapping &  Gr a p h i c s ;  Pl a n n i n g  & Zo n i n g . – Co m m u n i t y  Se r v i c e s :  Pa r k s ;  Se n i o r  Ac t i v i t y  Ce n t e r ;  Mc D o w e l l  Mountain                                                    Pr e s e r v e ;  De s e r t  Bo t a n i c a l  Ga r d e n ,  Tr a i l s  Sy s t e m ;  Pu b l i c  Ar t . – Ad m i n i s t r a t i o n :  To w n  Ma n a g e r ;  To w n  Cl e r k ;  Hu m a n  Re s o u r c e s ;  Finance; I.T.; Economic  De v e l o p m e n t . • Co m m u n i t y  Pa r t n e r s h i p s • Co m p r e h e n s i v e  Fe e  Sc h e d u l e • Bu d g e t  Re s o l u t i o n s Or g a n i z a t i o n   Ch a r t & Pe r s o n n e l De v e l o p m e n t   Se r v i c e s Ci t i z e n s  of  Fo u n t a i n  Hi l l s Mu n i c i p a l  Co u r t Ju d g e To w n  of  Fo u n t a i n  Hi l l s  Or g a n i z a t i o n En g i n e e r i n g / G I S St r e e t s / Fl e e t Re c r e a t i o n Co m m u n i t y   Se r v i c e s Fi r e  / EM S Ad m i n i s t r a t i o n Law Enforcement Ma y o r  an d  To w n  Co u n c i l To w n  Ma n a g e r Town Attorney Co m m u n i t y Ce n t e r Pl a n n i n g / Co d e  En f o r c e m e n t Bu i l d i n g  Sa f e t y Fa c i l i t i e s De p u t y  To w n  Manager/ Fi n a n c e  Director To w n  Clerk Hu m a n  Re s o u r c e s / Ri s k  Ma n a g e m e n t Ec o n o m i c   De v e l o p m e n t Se n i o r   Se r v i c e s Pa r k s 45 F u l l T i m e 18 Pa r t T i m e 63 F T E To w n  Ma n a g e r Ke n n e t h  W.  Bu c h a n a n Ex e c u t i v e  As s i s t a n t Sh a u n n a  Wi l l i a m s *Vo l u n t e e r   Co o r d i n a t o r  (.88) He a t h e r  Ware AD M I N I S T R A T I O N D E P A R T M E N T IT  Co o r d i n a t o r Mi k e  Ci c c a r o n e Fi n a n c i a l   Se r v i c e s Te c h  (. 2 5 ) IT  Te c h  (. 7 5 ) Be a t a  Bo g d a n Ac c o u n t i n g    Su p e r v i s o r Qu i n e l l  Hu i *C S R  (. 5 ) Ro b i n  Le h m a n * Part time *Ac c o u n t i n g   Cl e r k  (. 5 ) So n i a   Ku k k o l a *Fi n a n c i a l   Se r v i c e s  Te c h   (. 5 ) Jo  Mo o r m a n *C S R  (. 5 ) Ca t h y  Wh y n o t De p u t y  To w n  Ma n a g e r /   Fi n a n c e  Di r e c t o r Ju l i e  Gh e t t i To w n  Cl e r k Be v  Be n d e r HR  Ad m i n i s t r a t o r / Ri s k  Ma n a g e r Jo a n  Mc I n t o s h Economic Development Administrator Lori Gary Di r e c t o r Pa u l  Mo o d   Ex e c u t i v e  As s i s t a n t Ja n i c e  Ba x t e r Tr a f f i c  Si g n a l  Te c h  II / Si g n  Ma i n t e n a n c e Ji m  Mi c h a l a k Fl e e t  Me c h a n i c / Op e n  Sp a c e    Sp e c i a l i s t Je f f  La r s o n En g i n e e r i n g   In s p e c t o r Ju s t i n  We l d y Co d e   En f o r c e m e n t Ro y  Ja f f e DE V E L O P M E N T  SE R V I C E S  DE P A R T M E N T Cu s t o d i a n  (. 7 5 ) Mi t c h  Ar i o l a Ma i n t e n a n c e  Te c h . Ge o r g e  Wa l i g o r a St r e e t s    Ma i n t T e c h Gr e g  El c o St r e e t s  Ma i n t T e c h Fr a n k  Ge r m i n a r o CA D / G I S  Te c h Ke n  Va l v e r d e Permit Tech Marilyn Grudier St r e e t s   Su p e r i n t e n d e n t Ke n  Ku r t h Fa c i l i t i e s  /E n v i r o n m e n t a l   Su p e r v i s o r Ra y m o n d  Re e s To w n  En g i n e e r Ra n d y  Ha r r e l Se n i o r  Pl a n n e r Bo b  Ro d g e r s Chief Building Official Jason Field Cu s t o d i a n  (. 5 ) Ju a n  He r n a n d e z St r e e t s  Ma i n t T e c h Va c a n t Di r e c t o r Ma r k  Ma y e r Ex e c u t i v e  As s i s t a n t Na n c y  Wa l t e r Parks Supervisor Don Clark Re c r e a t i o n Su p e r v i s o r Br y a n  Hu g h e s Re c Co o r d i n a t o r Ka t h y  Wo r r e l l Re c C o o r d i n a t o r An j e l i c a  Gi a r d i n o CO M M U N I T Y  SE R V I C E S  DE P A R T M E N T           Parks Lead Bo Cichuniec Grounds  Keeper Eric Smyth Re c A s s i s t    PT Er i k  Lu n d i n Grounds Keeper Phil McKenzie Re c e p t i o n i s t  (. 7 5 ) Su s a n  Ph i l l i p s Re c e p t i o n i s t  (. 2 5 ) Do m i n i c k  La B a t e Grounds  Keeper Wes Loyet Re c A s s i s t    PT Da n i e l l e  Se r r a n o Re c A s s i s t    PT Ro n n M i l l e r Co m m u n i t y  Center  Op e r a t i o n s   Co o r d i n a t o r Bi l l  Ha u g h e y Co m m u n i t y  Ce n t e r Ev e n t s Co o r d i n a t o r Ri n o  Gh e t t i Se n i o r  Se r v i c e s   Su p e r v i s o r Ke l l e y  Fo n v i l l e Se n i o r  Se r v i c e s   As s i s t a n t  (. 3 5 ) Lo r i l e e D u n n HD M Co o r d i n a t o r    (. 7 5 ) Ma r y a n n  Mo t t Ac t i v i t i e s   Co o r d i n a t o r  (. 5 8 ) Ma r t i    Le m i e u x Parks Lead Chance Butterfield Re c A s s i s t    PT Ji m  Ha m a n n Pr e s i d i n g  Ju d g e   Mi t c h e l l  Ei s e n b e r g Court Clerk Nan Norton Co u r t  Cl e r k Ro b y n  Be c h e r MU N I C I P A L  CO U R T Se n i o r  Co u r t  Cl e r k Da w n  He r n a n d e z Co u r t    Ad m i n i s t r a t o r Pa t  Du n n PE R S O N N E L  & BE N E F I T S $3 , 3 5 6 , 7 2 1 • No  ne w  st a f f  po s i t i o n s • 63  FT E ’ s    (4 5  fu l l ‐ti m e ,  18  pa r t ‐ti m e ) • Pa y  Pl a n  in c l u d e s  46  Po s i t i o n s ;  47  Jo b  De s c r i p t i o n s • 15 %  sa v i n g s  in  he a l t h  in s u r a n c e  pr e m i u m s • 2. 5 %  co s t  of  li v i n g  in c r e a s e  fo r  st a f f  – To w n  Ma n a g e r   Re c o m m e n d a t i o n 2% De l i v e r y  of  service to the  ci t i z e n s  of  Fountain Hills is  de p e n d e n t  upon the number  of  em p l o y e e s  who can  pe r f o r m  th e  services. De b t  Ov e r v i e w OU T S T A N D I N G  BO N D S Bu d g e t  Ov e r v i e w BU D G E T S C H E D U L E Ja n u a r y Co u n c i l g o a l s e t t i n g r e t r e a t Ja n – M a r c h S t a f f a n d T o w n M a n a g e r r e v i e w s Ma r - A p r i l P u b l i c C o m m e n t p e r i o d Ma y Bu d g e t w o r k s t u d y s e s s i o n s Ju n e Ad o p t f i n a l b u d g e t To w n   Fu n d s :   21 di f f e r e n t   se t s  of   bo o k s $ AL L  FU N D S  SO U R C E S * *R e v i s e d  do w n w a r d  to  $1 . 3 M  as  a re s u l t  of  St a t e  bu d g e t AL L  FU N D S  US E S GE N E R A L  FU N D  RE V E N U E S 8% Lo c a l  sa l e s  tax$7.4M Sh a r e d  re v e n u e $5.0M Al l  ot h e r $1.3M GE N E R A L  FU N D  EX P E N D I T U R E S 8% Po l i c e / F i r e $6.3M Ad m i n i s t r a t i o n $2.5M Co m m u n i t y  Svcs$2.2M De v e l o p m e n t  Svcs$2.1M Al l  Ot h e r s $0.6M A LO O K  BA C K  AN D  FO R W A R D De p a r t m e n t a l Ov e r v i e w Pu b l i c  Sa f e t y FI R E  & EM E R G E N C Y  ME D I C A L $3 , 2 5 5 , 3 3 5 • Ac t i v i t i e s  in c l u d e  fi r e  su p p r e s s i o n ,  em e r g e n c y  medical  se r v i c e ,  bu i l d i n g  sa f e t y  an d  C. A . R . E . • Co n t r a c t  wi t h  Ru r a l  Me t r o  th r o u g h  20 1 4   • Pr o p o s e  $2 4 , 0 0 0  to  co n t r a c t  fo r  CA R E  volunteer • In c l u d e s  de p r e c i a t i o n  co s t  fo r  fi r e  en g i n e s 3% FI R E  AN D  EM E R E G E N C Y  DIVISIONS DI V I S I O N  NA M E FT E ’ S FY 1 3  BU D G E T INCR/(DECREASE) PRIOR YR Fi r e A d m i n i s t r a t i o n $1 4 4 , 9 4 4 $2,312 Fi r e  Sa f e t y $1 4 9 , 8 7 2 $3,648 Fi r e  Em e r g e n c y   Me d i c a l  Se r v i c e s $1 , 3 7 8 , 5 4 3 $17,132 Fi r e  Su p p r e s s i o n $1 , 5 5 1 , 4 7 6 $49,731 C. A . R . E . S . $3 0 , 5 0 0 $26,300 TO T A L $3 , 2 5 5 , 3 3 5 $99,123 LA W  EN F O R C E M E N T $3 , 0 4 9 , 5 7 2 • 3. 8  be a t s  pl u s  Sc h o o l  Re s o u r c e  Of f i c e r • In c r e a s e s  to  Co u n t y  be n e f i t s  ar e  pa s s e d  on to the  To w n • In c l u d e s  co n t r a c t  wi t h  Co u n t y  fo r  an i m a l  control and  ja i l  fe e s • $1 5 , 0 0 0  fo r  MC S O  Po s s e  fo r  ve h i c l e   Ma i n t e n a n c e 5% LA W  EN F O R C E M E N T  DI V I S I O N S DI V I S I O N  NA M E FT E ’ S FY 1 3  BU D G E T INCR/(DECREASE) PRIOR YR Ad m i n i s t r a t i o n $2 2 , 3 9 6 $14,651 An i m a l  Co n t r o l $6 5 , 3 2 4 $(1,074) In c a r c e r a t i o n /   Tr a n s p o r t $9 6 , 0 0 0 $0 Pa t r o l $2 , 8 6 5 , 8 5 2 $136,473 TO T A L $3 , 0 4 9 , 5 7 2 $150,050 Pr e s i d i n g  Ju d g e   Mi t c h e l l  Ei s e n b e r g Court Clerk Nan Norton Co u r t  Cl e r k Ro b y n  Be c h e r MU N I C I P A L  CO U R T Se n i o r  Co u r t  Cl e r k Da w n  He r n a n d e z Co u r t    Ad m i n i s t r a t o r Pa t  Du n n Mu n i c i p a l  Co u r t $4 0 2 , 9 3 3 • 5 FT E • Ad m i n i s t r a t i o n $2 5 2 , 2 6 2 • Ci v i l  Ca s e s $   44,266 • Cr i m i n a l  Ca s e s $   87,746 • Ju v e n i l e $   18,659 To t a l $ 4 0 2 , 9 3 3 7% De v e l o p m e n t Se r v i c e s Di r e c t o r Pa u l  Mo o d   Ex e c u t i v e  As s i s t a n t Ja n i c e  Ba x t e r Tr a f f i c  Si g n a l  Te c h  II / Si g n  Ma i n t e n a n c e Ji m  Mi c h a l a k Fl e e t  Me c h a n i c / Op e n  Sp a c e    Sp e c i a l i s t Je f f  La r s o n En g i n e e r i n g   In s p e c t o r Ju s t i n  We l d y Co d e   En f o r c e m e n t Ro y  Ja f f e DE V E L O P M E N T  SE R V I C E S  DE P A R T M E N T Cu s t o d i a n  (. 7 5 ) Mi t c h  Ar i o l a Ma i n t e n a n c e  Te c h . Ge o r g e  Wa l i g o r a St r e e t s    Ma i n t T e c h Gr e g  El c o St r e e t s  Ma i n t T e c h Fr a n k  Ge r m i n a r o CA D / G I S  Te c h Ke n  Va l v e r d e Permit Tech Marilyn Grudier St r e e t s   Su p e r i n t e n d e n t Ke n  Ku r t h Fa c i l i t i e s  /E n v i r o n m e n t a l   Su p e r v i s o r Ra y m o n d  Re e s To w n  En g i n e e r Ra n d y  Ha r r e l Se n i o r  Pl a n n e r Bo b  Ro d g e r s Chief Building Official Jason Field Cu s t o d i a n  (. 5 ) Ju a n  He r n a n d e z St r e e t s  Ma i n t T e c h Va c a n t DE V E L O P M E N T  SE R V I C E S $2 , 0 7 1 , 6 8 5 • Ac t i v i t i e s  in c l u d e  Pl a n n i n g ,  Bu i l d i n g  Sa f e t y ,  Co d e  Enforcement,  St o r m w a t e r  Ma n a g e m e n t ,  En g i n e e r i n g ,  CI P ,  Fa c i l i t i e s ,  GIS 18 . 7 5  FT E ’ s Hi g h l i g h t s : • Re s t o r e s  wa s h  ma i n t e n a n c e  pr o g r a m  to                                                    $150K • Pl a n  in c l u d e s  re s t o r a t i o n  of  fa c i l i t i e s  ma i n t e n a n c e   pr o g r a m   $350K • Ho u s e h o l d  ha z a r d o u s  wa s t e  ev e n t $45K29% DE V E L O P M E N T  SE R V I C E S  DIVISIONS DI V I S I O N  NA M E FT E ’ S FY 1 3  BU D G E T INCR/(DECREASE) PRIOR YR En g i n e e r i n g $5 7 7 , 5 4 6 $76,355 Fa c i l i t i e s $8 5 0 , 5 7 8 $358,201 Pl a n n i n g $2 3 4 , 4 6 0 $62,431 Bu i l d i n g  Sa f e t y $2 0 4 , 9 5 2 $(29,735) Co d e  Co m p l i a n c e $1 0 2 , 5 8 6 $(23,265) Ma p p i n g &  Gr a p h i c s $1 0 1 , 5 6 3 $27,208 TO T A L $2 , 0 7 1 , 6 8 5 $471,195 Co m m u n i t y Se r v i c e s Di r e c t o r Ma r k  Ma y e r Ex e c u t i v e  As s i s t a n t Na n c y  Wa l t e r Parks Supervisor Don Clark Re c r e a t i o n Su p e r v i s o r Br y a n  Hu g h e s Re c Co o r d i n a t o r Ka t h y  Wo r r e l l Re c C o o r d i n a t o r An j e l i c a  Gi a r d i n o CO M M U N I T Y  SE R V I C E S  DE P A R T M E N T           Parks Lead Bo Cichuniec Grounds  Keeper Eric Smyth Re c A s s i s t    PT Er i k  Lu n d i n Grounds Keeper Phil McKenzie Re c e p t i o n i s t  (. 7 5 ) Su s a n  Ph i l l i p s Re c e p t i o n i s t  (. 2 5 ) Do m i n i c k  La B a t e Grounds  Keeper Wes Loyet Re c A s s i s t    PT Da n i e l l e  Se r r a n o Re c A s s i s t    PT Ro n n M i l l e r Co m m u n i t y  Center  Op e r a t i o n s   Co o r d i n a t o r Bi l l  Ha u g h e y Co m m u n i t y  Ce n t e r Ev e n t s Co o r d i n a t o r Ri n o  Gh e t t i Se n i o r  Se r v i c e s   Su p e r v i s o r Ke l l e y  Fo n v i l l e Se n i o r  Se r v i c e s   As s i s t a n t  (. 3 5 ) Lo r i l e e D u n n HD M Co o r d i n a t o r    (. 7 5 ) Ma r y a n n  Mo t t Ac t i v i t i e s   Co o r d i n a t o r  (. 5 8 ) Ma r t i    Le m i e u x Parks Lead Chance Butterfield Re c A s s i s t    PT Ji m  Ha m a n n CO M M U N I T Y  SE R V I C E S $2 , 2 3 3 , 8 3 8 • Ac t i v i t i e s  in c l u d e  al l  pa r k s ,  tr a i l s ,  Co m m u n i t y  Ce n t e r ,  recreation  pr o g r a m s ,  Se n i o r s ,  Ho m e  De l i v e r e d  Me a l s 21 . 1 8  FT E ’ s Hi g h l i g h t s : • Ma i n t a i n  11 3  ac r e s  of  pa r k ,  74 0  ac r e s  of  op e n  sp a c e ,   and 8.4 miles  of  tr a i l s • Re p a i r  an d  st r i p e  pa r k i n g  lo t s   $  42,500 • Co m m u n i t y  Ce n t e r  bo n d  pa y m e n t $193,5003% CO M M U N I T Y  SE R V I C E S  DIVISIONS DI V I S I O N  NA M E FT E ’ S FY 1 3  BU D G E T INCR/(DECREASE) PRIOR YR Re c r e a t i o n $4 7 3 , 4 9 4 $1,899 Pa r k s $1 , 0 7 1 , 4 8 3 $17,637 Co m m u n i t y  Ce n t e r   Op e r a t i o n s $4 2 1 , 0 5 0 $(4,135) Se n i o r  Ac t i v i t y   Ce n t e r $2 6 7 , 8 1 1 $45,282 TO T A L $2 , 2 3 3 , 8 3 8 $60,683 To w n  Ma n a g e r Ke n n e t h  W.  Bu c h a n a n Ex e c u t i v e  As s i s t a n t Sh a u n n a  Wi l l i a m s De p u t y  To w n  Ma n a g e r /   Fi n a n c e  Di r e c t o r Ju l i e  Gh e t t i To w n  Cl e r k Be v  Be n d e r HR  Ad m i n i s t r a t o r / Ri s k  Ma n a g e r Jo a n  Mc I n t o s h Economic Development Administrator Lori Gary Vo l u n t e e r   Co o r d i n a t o r He a t h e r  Ware AD M I N I S T R A T I O N  DE P A R T M E N T IT  Co o r d i n a t o r Mi k e  Ci c c a r o n e CS R  (. 5 ) Ca t h y  Wh y n o t Ac c o u n t i n g   Cl e r k  (. 5 ) So n i a   Ku k k o l a Fi n  Se r v i c e s   Te c h  (. 5 ) Jo  Mo o r m a n Fi n  Se r v i c e s   Te c h  (. 5 ) Be a t a   Bo g d a n IT  Te c h  (. 5 ) Be a t a  Bo g d a n Ac c o u n t i n g    Su p e r v i s o r Qu i n e l l  Hu i CS R  (. 5 ) Ro b i n  Le h m a n AD M I N I S T R A T I O N $2 , 4 8 5 , 0 2 2 • 11 . 6 8  FT E ’ s • HI G H L I G H T S :   – Ac t i v i t i e s  in c l u d e  li a b i l i t y  in s u r a n c e ,  HR ,  IT ,  Ma n a g e r ,  Legal, Clerk, Economic  De v e l o p m e n t ,  Bu d g e t ,  Fi n a n c e ,  Li c e n s i n g ,  Au d i t o r ,  Cu s t o m e r  Service,  Vo l u n t e e r s   – Co n d u c t  a fo r m a l  ci t i z e n  su r v e y $  30K – Re v i v e  th e  co m p u t e r  sy s t e m s  ma i n t e n a n c e  pr o g r a m .              $  53K – In c l u d e s  Co n t i n g e n c y  th a t  is  no t  in c l u d e d                                                                                  $350K in  sp e n d i n g  pl a n .      10% AD M I N I S T R A T I O N  DI V I S I O N S DI V I S I O N  NA M E FT E ’ S FY 1 3  BU D G E T INCR/(DECREASE) PRIOR YR To w n  Ma n a g e r $8 4 0 , 4 9 1 $252,512 In f o r m a t i o n   Te c h n o l o g y $3 1 7 , 7 9 9 $56,902 To w n  Cl e r k $1 7 9 , 5 2 6 $(79,755) HR / R i s k M g m n t $4 1 5 , 6 2 4 $(30,445) Fi n a n c e $3 2 4 , 3 1 8 $9,360 Ec o n  De v e l o p m e n t $8 9 , 9 0 4 $(2,673) Le g a l  Se r v i c e s $3 1 7 , 3 6 0 $10,888 TO T A L $2 , 4 8 5 , 0 2 2 $216,789 SP E C I A L  RE V E N U E  FU N D S •Gr a n t s •Co u r t  En h a n c e m e n t  Fu n d •Pu b l i c  Ar t  Fu n d •HU R F  (S t r e e t s ) (‐$9 8 , 1 6 0 ) •Ex c i s e  Ta x / E c o n o m i c  De v e l o p m e n t •De b t  Se r v i c e •Ca p i t a l  Pr o j e c t s To t a l    $1 7 , 3 0 7 , 4 4 6 HU R F / S T R E E T  PR O G R A M S PR O G R A M  NA M E FT E ’ S FY 1 3  BU D G E T INCR/(DECREASE) PRIOR YR Ad m i n i s t r a t i o n $2 8 9 , 1 5 1 $89,134 Ad o p t  a St r e e t $3 , 1 9 3 $(104) Le g a l  Se r v i c e s $2 1 , 6 0 0 $192 Op e n  Sp a c e $3 0 2 , 6 9 8 $3,054 Pa v e m e n t Ma n a g e m e n t $3 2 3 , 2 3 4 $174,193 St r e e t  Si g n s $8 1 , 1 2 8 $6,307 St r e e t  Sw e e p e r s $1 4 8 , 1 8 1 $(2,007) Tr a f f i c M a n a g e m e n t $0$(96,355) Tr a f f i c  Si g n a l s $1 7 0 , 3 3 6 ($30,358) Ve h i c l e  Ma i n t e n a n c e $8 0 , 5 1 9 $(2,315) TO T A L $1 , 2 7 8 , 2 9 9 $141,741 ST R E E T S  FU N D  (H U R F ) $1 , 3 2 1 , 6 4 0 • Fu n d s  st r e e t  di v i s i o n   op e r a t i o n s  –6  FT E ’ s • Ma i n t a i n  39 0  la n e  mi l e s ,  3. 5 M   sq  ya r d s  of  as p h a l t • Ma i n t a i n  68  ac r e s  of  me d i a n s • Sw e p t  by  St a t e  le g i s l a t u r e * • Do e s  no t  fu n d  pr o p e r   pa v e m e n t  ma i n t e n a n c e 20%* EX C I S E  TA X  FU N D / E C O N O M I C   DE V E L O P M E N T $1 8 9 , 9 6 8 • Ad d i t i o n a l  $8 9 , 9 0 4  fr o m  Ge n e r a l  Fu n d  = $2 7 3 , 8 7 2 • Fu n d s  ec o n o m i c  de v e l o p m e n t  op e r a t i o n s   • 1 FT E • Bu s i n e s s  at t r a c t i o n • Bu s i n e s s  re t e n t i o n / r e l o c a t i o n • Do w n t o w n  De v e l o p m e n t • $5 0 k  fo r  Ma r k e t i n g / P r o m o t i o n • Ju m p S t a r t B i z  Co n t r a c t  $4 , 5 0 0 • Ec o n o m i c  De v e l o p m e n t  St r a t e g y 13% Co n s e n s u s B a s e d E c o n o m i c D e v e l o p m e n t Pl a n (E V 1 ) To u r i s m In i t i a t i v e (E V 5 ) Business Attraction Initiative (EV 4) Do w n t o w n In i t i a t i v e (E V 3 ) Ar e a S p e c i f i c P l a n Im p l e m e n t a t i o n -S w a b a c k P l a n -U L I P l a n Mi x e d U s e d D e v e l o p m e n t Zo n i n g ( S m a r t G r o w t h Pr i n c i p l e s ) Pr o m o t i o n ; Ma r k e t i n g ; Ne w E v e n t s Pl a n n i n g We b s i t e ( s ) El e c t r o n i c Me d i a *54-Professional, Technical,Scientific Services Businesses *52-Finance, Insurance,Businesses Retention & Expansion Program Website,Electronic Media St a k e h o l d e r s : To w n o f F H , S P A C , F H C h a m b e r o f C o m m e r c e , Ft . M c D o w e l l , F H S a n i t a r y D i s t r i c t , F H S c h o o l D i s t r i c t , U t i l i t i e s , De v e l o p e r s , C o m m e r c i a l P r o p e r t y O w n e r s , Co m m e r c i a l R e a l E s t a t e L e a s i n g A g e n t s , C o m m u n i t y L e a d e r s Ca p i t a l F u n d i n g $1 , 4 3 8 , 0 0 0 Fu n d i n g - $ 1 0 3 , 0 0 0 $ 5 0 , 0 0 0 $1 5 3 , 0 0 0 Funding -$223,872 (-)$ 50,000 (* N o r t h A m e r i c a n I n d u s t r y C l a s s i f i c a t i o n S y s t e m #5 2 , # 5 4 , # 6 2 ) *62-Health Care Industry EX C I S E  TA X  FU N D / E C O N O M I C   DE V E L O P M E N T DI V I S I O N  NA M E FT E ’ S FY 1 3  BU D G E T INCR/(DECREASE) PRIOR YR Ad m i n i s t r a t i o n $1 8 3 , 9 6 8 $(27,396) TO T A L $1 8 3 , 9 6 8 $(27,396) CA P I T A L  PR O J E C T S  FU N D $1 1 , 2 8 7 , 2 8 0 Ca p i t a l  Pr o j e c t s • Mi s c e l l a n e o u s  Dr a i n a g e  Im p r o v e m e n t s  ($ 6 5 , 0 0 0 ) • Do w n t o w n  Vi s i o n  Pl a n  “G r e e n i n g  Pr o j e c t ”    ($ 1 0 0 , 0 0 0  gr a n t ) ( p l a c e h o l d ) • Do w n t o w n  Vi s i o n  Pl a n  “A v e n u e / L a k e s i d e  Pr o j e c t ”  ($ 2 5 0 , 0 0 0 ) • Av e n u e  of  th e  Fo u n t a i n s  Me d i a n  Pr o j e c t  ($ 7 9 0 , 0 0 0  CI P / $ 9 9 0 , 0 0 0  DTF) • Fi r e  St a t i o n  #2  Re l o c a t i o n  Gr a n t  Ap p l i c a t i o n  ($ 2 , 1 1 0 , 0 0 0 ) • Fi r e  St a t i o n  #1  Re n o v a t i o n  Pr o j e c t    ($ 4 9 5 , 0 0 0 ) • Ce n t e n n i a l  Ci r c l e  Im p r o v e m e n t s  ($ 4 8 , 0 0 0 ) • Vo i c e / C o m m u n i c a t i o n s  Up g r a d e s  Pr o j e c t ( $ 2 5 , 0 0 0 ) • En e r g y  Ef f i c i e n c y  Pr o g r a m  Gr a n t / R e b a t e  Pr o j e c t ( $ 7 1 , 0 0 0 ) • Em e r g e n c y  Op e r a t i o n s  Ce n t e r  Gr a n t  Ap p l i c a t i o n  Pr o j e c t ( $ 7 5 , 0 0 0 ) ( g r a n t ) • Fi r e  De p a r t m e n t  Ra d i o s  Gr a n t  Ap p l i c a t i o n ( $ 1 2 , 0 0 0  gr a n t ) • Po r t a b l e  Li v e  Fi r e  Tr a i n i n g  Gr a n t  Ap p l i c a t i o n ( $ 1 6 , 0 0 0 G F / $ 1 4 4 , 0 0 0 g r a n t ) • Fo u r  Pe a k s  Pa r k  Im p r o v e m e n t s  Ma s t e r  Pl a n  Pr o j e c t  ($ 5 0 , 0 0 0  CIP) • Fo u n t a i n  La k e  Wa t e r  Qu a l i t y  Im p r o v e m e n t s  ($ 2 5 0 , 0 0 0 ) ( p l a c e h o l d ) Ca p i t a l  Pr o j e c t s  co n t … … • Ur b a n  Tr a i l  Im p r o v e m e n t s  ($ 5 0 , 0 0 0 ) ( m u l t i ‐ph a s e  pr o j e c t ) ( g r a n t ) • Un p a v e d  Al l e y  Pa v i n g  Pr o j e c t s  ($ 3 2 5 , 0 0 0 )  (m u l t i ‐ph a s e  pr o j e c t ) • Sh e a / S a g u a r o  St r e e t  Pr o j e c t  ($ 4 , 0 0 3 , 0 0 0  to t a l ;  $1 , 0 5 7 , 0 0 0  CI P / $ 2 , 7 4 6 , 0 0 0  MAG/McDot;  $2 0 0 , 0 0 0  De v e l o p e r ) • Pa v e m e n t  Ma n a g e m e n t  Pr o g r a m  ($ 1 0 0 , 0 0 0  CI P )  (m u l t i ‐ph a s e  project) • Sa g u a r o  Bl v d .  Re c o n s t r u c t i o n  ($ 3 0 0 , 0 0 0  CI P ) ( d e s i g n  on l y ) • Hi g h w a y  Sa f e t y  Im p r o v e m e n t  Pr o g r a m  ($ 4 7 , 0 0 0  gr a n t / $ 1 0 , 0 0 0 C I P ) • Sh e a  Bl v d .  Mu l t i ‐Us e  Pa t h  ($ 3 5 , 0 0 0  CI P )  (m u l t i ‐ph a s e )  (S c o t t s d a l e  IGA) • Fo u n t a i n  Hi l l s  Bl v d .  Sh o u l d e r  Pa v i n g  Pr o j e c t  ($ 4 0 , 0 0 0 )  (m u l t i ‐phase) • Sh e a  Bl v d .  Ea s t b o u n d  Bi k e  La n e  & Ov e r l a y  Pr o j e c t  ($ 4 4 0 , 0 0 0  Grant/ $211,000 CIP  Ma t c h i n g ) • In t e l l i g e n t  Tr a n s p o r t a t i o n  Sy s t e m  ($ 5 3 , 0 0 0  CI P )  (m u l t i ‐ph a s e ) • Pa l i s a d e s / S a g u a r o  Tr a f f i c  Si g n a l  Re p l a c e m e n t  ($ 4 0 0 , 0 0 0  CI P ) ( p l a c e h o l d ) • Co n t i n g e n c y  ($ 1 1 0 , 0 0 0 ) No t  pa r t  of  th e  Ca p i t a l  Pr o j e c t  Fu n d / b u t  in c l u d e d  in  th e  to t a l : • Ve h i c l e  Re p l a c e m e n t  Fu n d  ($ 4 0 0 , 0 0 0 ) ( V e h i c l e  Re p l a c e m e n t  Program) To t a l  $11,687,280 Co m m u n i t y                        Pa r t n e r s h i p s Co m m u n i t y  Pa r t n e r s h i p s • Ec o n o m i c  De v e l o p m e n t / T o u r i s m • Fo u n t a i n  Hi l l s  Co m m u n i t y  Th e a t r e • Fo u n t a i n  Hi l l s  Bo y s / G i r l s  Cl u b • Fo o d  Ba n k • MC S O  Po s s e • Se n i o r  Ci t i z e n s ,  In c . • Ju m p S t a r t B i z Co m m u n i t y  Pa r t n e r s h i p s • Ec o n o m i c  De v e l o p m e n t / T o u r i s m – $1 0 3 , 0 0 0 – To w n  Ma n a g e r  Fu n d i n g  Re c o m m e n d e d Co m m u n i t y  Pa r t n e r s h i p s • Fo u n t a i n  Hi l l s  Co m m u n i t y  Th e a t r e – $7 2 , 2 4 0 – To w n  Ma n a g e r  Fu n d i n g  Re c o m m e n d e d Co m m u n i t y  Pa r t n e r s h i p s • Fo u n t a i n  Hi l l s  Bo y s / G i r l s  Cl u b – $8 0 , 0 0 0 – To w n  Ma n a g e r  Re c o m m e n d a t i o n • Fo o d  Ba n k – $3 0 , 2 5 0 – To w n  Ma n a g e r  Fu n d i n g  Re c o m m e n d e d Co m m u n i t y  Pa r t n e r s h i p s • MC S O  Po s s e – $1 5 , 0 0 0 – To w n  Ma n a g e r  Fu n d i n g  Re c o m m e n d e d • $1 5 , 0 0 0  fo r  Ve h i c l e  Ma i n t e n a n c e Co m m u n i t y  Pa r t n e r s h i p s • Se n i o r  Ci t i z e n s ,  In c . – $1 5 , 0 0 0  Gr a n t  to  as s i s t  FH  Se n i o r  Meals Program • Po s s i b l e  gr a n t  pa s s ‐th r u  fu n d i n g  to  Me a l s  Program Co m m u n i t y  Pa r t n e r s h i p s • Ju m p S t a r t B i z – $4 , 5 0 0  to  wi t h  lo c a l  Bu s i n e s s  In c u b a t o r • 2nd Ye a r  Fu n d i n g / E c o n o m i c  De v e l o p m e n t  Fund • To w n  Ma n a g e r  Fu n d i n g  Re c o m m e n d e d Bu d g e t  Re s o l u t i o n s • Tw o  (2 )  Bu d g e t  Re s o l u t i o n s – 1st Re s o l u t i o n  Ad o p t s  th e  Fi n a l  Bu d g e t . • In c l u d e s  ad o p t  of  th e  Fe e  Sc h e d u l e  as  pr o p o s e d – 2nd Re s o l u t i o n  Cl a r i f i e s  th e  pa r a m e t e r s  of  Ad m i n i s t e r i n g  the 2012/13  Bu d g e t . • As s i s t s  St a f f  wi t h  po l i c y  di r e c t i o n  as  to  ad m i n i s t e r i n g   policies and  pr o c e d u r e s  go v e r n i n g  pl a n n e d  bu d g e t e d  ex p e n d i t u r e s . • As s i s t s  th e  Ma y o r  & To w n  Co u n c i l  an d  Ci t i z e n s  with a clear  un d e r s t a n d i n g  of  pa r a m e t e r s  of  th e  va r i o u s  de p a r t m e n t a l  and  pr o g r a m  ex p e n d i t u r e s  fo r  th e  Fi n a l    Ad o p t e d  Budget. • Ad o p t s  th e  Or g a n i z a t i o n a l  Ch a r t ,  Po s i t i o n  Sc h e d u l e  and Job  De s c r i p t i o n s  fo r  th e  20 1 2 / 1 3  fi s c a l  ye a r . QU E S T I O N S ? 1727232.1 RESOLUTION NO. 2012-11 A RESOLUTION OF THE MAYOR AND COUNCIL OF THE TOWN OF FOUNTAIN HILLS, ARIZONA, ADOPTING THE TENTATIVE BUDGET AS THE 2012-2013 FISCAL YEAR BUDGET FOR THE TOWN OF FOUNTAIN HILLS. WHEREAS, in accordance with the provisions of Title 42, Chapter 17, Articles 1-5, Arizona Revised Statutes (the “Applicable Law”), the Mayor and Council of the Town of Fountain Hills (the “Town Council”) did, on May 3, 2012, make an estimate of (i) the different amounts required to meet the public expenditures/expenses for the ensuing year, (ii) revenues from sources other than direct taxation and (iii) the amount to be raised by taxation upon real and personal property of the Town of Fountain Hills, Arizona; and WHEREAS, in accordance with the Applicable Law, and following due public notice, the Town Council met on May 3, 2012, at which meeting any taxpayer was privileged to appear and be heard in favor of or against any of the proposed expenditures/expenses or tax levies; and WHEREAS, publication has been duly made as required by law, of said estimates together with a notice that the Town Council would meet on June 7, 2012, at the Fountain Hills Town Council Chambers for the purpose of hearing taxpayers and with respect to said estimates or any of the proposed expenditures/expenses or tax levies; and WHEREAS, it appears that the sums to be raised by taxation, as specified therein, do not in the aggregate exceed that amount as computed in ARIZ. REV. STAT. § 42-17051(A). NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND COUNCIL OF THE TOWN OF FOUNTAIN HILLS as follows: SECTION 1. The statements and schedules attached hereto as Exhibit A and incorporated herein by reference, are hereby adopted as the budget of the Town of Fountain Hills, Arizona, for the fiscal year July 1, 2012 through June 30, 2013. PASSED AND ADOPTED by the Mayor and Council of the Town of Fountain Hills, June 7, 2012. 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 1727232.1 EXHIBIT A TO RESOLUTION NO. 2012-11 [Budget Statements and Schedules] See following pages. 1727752.1 RESOLUTION NO. 2012-18 A RESOLUTION OF THE MAYOR AND COUNCIL OF THE TOWN OF FOUNTAIN HILLS, ARIZONA, ADOPTING AND ESTABLISHING THE 2012-13 BUDGET IMPLEMENTATION POLICY AND APPROVING THE TOWN ORGANIZATIONAL CHARTS, THE 2012-13 PAY PLAN, THE SCHEDULE OF AUTHORIZED POSITIONS AND THE EMPLOYEE JOB DESCRIPTIONS. WHEREAS, the Mayor and Council of the Town of Fountain Hills (the “Town Council”), pursuant to ARIZ. REV. STAT. § 9-240 (B)(2), is vested with the power to determine the budgets of all Town departments; and WHEREAS, the Town Council, in order to provide for consistent and uniform administration of the Town’s monies and to maximize savings of funds by monitoring expenditures, has determined it necessary to adopt a budget implementation policy for the FY 2012-13 Town Budget (the “2012-13 Budget Policy”) governing the expenditures within the FY 2012-13 Town of Fountain Hills budget; and WHEREAS, pursuant to Subsection 3-1-1(H)(3) of the Town Code, the Town Council must approve the organizational chart and job descriptions for employees of the Town. 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 Town Council hereby adopts the 2012-13 Budget Policy in substantially the form attached hereto as Exhibit A and incorporated herein by reference. SECTION 3. The Town Council hereby approves and authorizes (i) the Town of Fountain Hills Organization Charts, (ii) the 2012-13 Play Plan, (iii) the Schedule of Authorized Positions and (iv) the employee job descriptions, all in the form attached hereto as Exhibit B and incorporated herein by reference. SECTION 4. 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. PASSED AND ADOPTED by the Mayor and Council of the Town of Fountain Hills, June 7, 2012. 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 1727752.1 EXHIBIT A TO RESOLUTION NO. 2012-18 [2012-13 Budget Policy] See following pages. 1728405.1 TOWN OF FOUNTAIN HILLS 2012-13 BUDGET IMPLEMENTATION POLICY 1. Definitions. The following definitions shall apply for purposes of this policy. A. “Budget Unit,” is a Town department as designated on the Town’s organizational chart, including the Town Court. B. “Contingency,” appropriation used for unforeseen emergency and critical needs when current budget appropriation is inadequate. C. “Fund,” is a fiscal and accounting mechanism with a self-balancing set of accounts recording cash and financial resources. 2. Transfer of Funds. A. Transfers within a Fund. After adoption of the fiscal budget by the Town Council, any Budget Unit has the authority to reprogram funds within its department line items. These departments of the budget will be controlled by bottom line total only. Transfers between General Fund divisions and line items are allowed with the approval of the Department Director and Town Manager. A report of each transfer will approved by the Department Director and submitted to the Finance Division through the financial accounting system for processing; final approval shall be vested with the Town Manager, whose decision shall be final and conclusive. B. Transfers between Funds. After adoption of the fiscal budget by the Town Council, any budgetary transfer between Funds will require approval or ratification of each transfer by the Town Council. Prior to any transfer, the Department must provide sufficient documentation to the Town Manager and the Town Council that funding exists. C. Reprograming of Wages. No funds may be reprogrammed to or from the “wages” section of the Budget Unit’s adopted budget without consultation with and approval by the Town Manager. The requesting Department Director must submit a memorandum and any necessary supporting documentation to the Town Manager; the Town Manager will notify the Finance Division of approved transfers of funds from the “wages” section of the budget. D. Reprograming of Capital Funds. No funds may be reprogrammed to or from the “capital expenditures” section of the Budget Unit’s adopted budget without consultation with and approval by the Town Manager and ratification by the Town Council. The requesting Department Director must submit a memorandum and any necessary supporting documentation to the Town Manager. If approved by the Town Council, the Town Manager will notify the Finance Division of the reprogrammed funds. E. Carryover Appropriations. The Finance Division may approve appropriation transfers for carried over operating/capital items (i.e., IT infrastructure, equipment, vehicles and facility improvements) if the Town Council previously appropriated the operating/capital item in a prior fiscal year. All carryover appropriation transfers must be 1728405.1 2 submitted to the Town Council for ratification; all carryover appropriation transfers shall be reflected in the appropriate budget reports. 3. Expenditure Restrictions. A. Budget Hold for Prior Exceedence. Any General Fund Budget Unit that exceeded its budget in the prior fiscal year may be subject to immediate budget hold status in the current fiscal year. However, if a Budget Unit exceeded its budget in the prior fiscal year due to a one-time emergency purchase, and proof of such an emergency (in a form acceptable to the Town Manager) can be shown, the budget hold status will be removed. B. Expenditure Limitations. The following expenditure limitations shall be imposed upon each Budget Unit in the General Fund by the Town Council: (1) Not more than eighty (80%) percent of the total division line items combined of a Budget Unit’s adopted budget may be expended before December 31 of each fiscal year. (2) Not more than eighty-five (85%) percent of the total division line items combined of a Budget Unit’s adopted budget may be expended before March 31 of each fiscal year. (3) Not more than ninety (90%) percent of the division line items combined of a Budget Unit’s adopted budget may be expended before April 30 of each fiscal year. (4) Not more than ninety-five (95%) percent of the division line items combined of a Budget Unit’s adopted budget may be expended before May 31 of each fiscal year. (5) No Budget Unit’s combined line items may exceed ninety-eight (98%) percent of its adopted budget during the month of June of each fiscal year, without first (a) contacting the Finance Division and (b) receiving approval from the Town Manager. (6) The expenditure limitations are intended as management indicators and are not intended to automatically trigger Subsection (C) below. The Town Manager will direct the implementation of Subsection (C). C. Remedies for Budget Exceedence. Once a Budget Unit has exceeded any of the expenditure limitations set forth in subsections (B)(1), (2), (3), (4), (5) or (6) above, the Finance Division shall notify the Budget Unit, in writing, that the appropriate expenditure limit has been exceeded. The Budget Unit must then consult and reach an agreement with the Finance Division and the Town Manager regarding the remedies available to either restore spending to a level approved in the budget for the balance of the fiscal year or to request additional funds as set forth in Subsection 3(D) below. 1728405.1 3 D. Requests for Additional Funds. When additional funds from other sources are requested, the Finance Division and Town Manager must concur before the Budget Unit may expend the additional funds. If the expenditure of additional funds will require a fund transfer, the recommendation shall be forwarded to the Town Council for approval. Any Budget Unit that has exceeded the limitations set forth in Subsection 3(B) of this policy shall submit an expenditure reduction program to the Town Manager through the Finance Division as part of any request for additional expenditures. The expenditure reduction program shall include, but not be limited to, consideration of reductions in force of budgeted and authorized positions, termination of all travel expenditures, suspension or termination of contracts and such other expenditure reductions as the Budget Unit deems appropriate. E. Violation of Limits. If a Budget Unit is in violation of the expenditure limits set forth in Subsection 3(B) above, and the Town Manager and Town Council do not approve additional funds as set forth in Subsection 3(D) above, the Finance Division is authorized and directed to enforce this policy in the following manner: (1) The Finance Division shall not process requisitions for purchases or payments from any Budget Unit that has the expenditure limitations, except for: (a) re- occurring expenses that are billed to the Town on a regular and continuous basis pursuant to an agreement or contract between the Town and the vendor; or (b) expenditures that have been authorized by the Town Manager and/or the Town Council. (2) Procurement card use may be limited or suspended. 4. Fund Balance. All budget considerations, including expenditure of appropriated funds, shall adhere to the Town of Fountain Hills Financial Policies, Amended and Restated June 18, 2009, attached hereto as Exhibit 1. 5. Positions. A. General Provisions. (1) Section 3-1-1 of the Town Code states that the Town Manager shall be the administrative officer of the Town government and may appoint and, when necessary, suspend or remove all employees of the Town, except those officers appointed by the Town Council. All appointments and removals shall be based upon merit and upon the qualifications and disqualifications of such employee without regard to any political belief or affiliation; prior to any creation, combination, consolidation or deletion of any positions of employment, written job descriptions or amendments thereto shall have been approved by the Town Council. (2) All requests for new positions or reclassification of existing positions, regardless of the funding source, must be approved by the Town Council. Reclassification of existing positions (filled and vacant) should include justification of why budget savings, including savings from deleted positions, should be used to create new positions and how the position will align/impact Town strategic priorities and 1728405.1 4 departmental goals. Departments must submit their requests to Human Resources; Human Resources will review job description and salary information prior to forwarding information to the Town Manager. The Town Manager will review and recommend/deny the position for approval by the Town Council. (3) Intergovernmental agreements, grants, etc. that require/authorize additional positions must be approved by the Town Council. The position and the budgetary impact must be fully disclosed to Human Resources and the Finance Division, which shall be responsible for analyzing the input and presenting such analysis to the Town Council in conjunction with any request for approval as part of an intergovernmental agreement, grant, or other agreement. (4) All authorized positions must be fully-funded by the general fund, special revenue fund, or a grant. If a position becomes unfunded or under-funded by its original funding source, it must be fully funded immediately from other sources or eliminated. An under-funded position is a position for which a department/funding source has only 1% to 99% of the funding required to support it on an annualized basis. If eliminating unfunded or under-funded positions results in a Reduction in Force, the Human Resources Administrator shall prepare a layoff plan for approval by the Town Manager. B. Fiscal Year 2012-13 Authorized Positions. There are no new positions or combination, consolidation or deletion of any positions proposed in the FY 2012-13 fiscal budget; all positions existing at the end of FY 2011-12 are carried over. The schedule of Authorized Positions, Pay Plan, Town organizational charts and updated job descriptions are attached as Exhibit B to the Town Council Resolution which adopts this Policy (Resolution 2012-18). 6. Hiring Freeze. There is no hiring freeze in effect for FY 2012-13, and positions that become vacant may be filled if the Town Manager determines that it is in the best interests of the Town to do so. 7. Cost of Living. All Fountain Hills employees, regardless of funding source, will receive a cost of living increase effective July 1, 2012 – June 30, 2013 not to exceed 2.5%, with the exception of the Town Council, Town Manager and Town Presiding Judge, whose compensation shall be as set forth in the Town Code (for the Town Council) and their respective employment agreements for the (Town Manager and Town Presiding Judge). 8. Contingency Appropriation. The purpose of a Contingency appropriation is to maintain a reserve of expenditure authority from which specific amounts can be transferred to other appropriated budgets after adoption of the annual budget to cover emergency or critical items if there are sufficient revenues to do so. Contingency appropriations will be established within the Town Manager budget for general purposes or reserved for specific issues. All requests for General Fund Contingency must be submitted to the Town Manager for review. If the Contingency expenditure exceeds the Town Manager’s purchasing authority the Town Council must approve or ratify all transfers from Contingency appropriations. 1728405.1 5 9. Tax Levy. The Town’s secondary property tax levy is exclusively for the annual debt service payment on General Obligation bonds issued and approved by the voters; the annual levy is based on the annual debt payment divided by the entire community’s secondary assessed valuation divided by 1,000. An allowance for delinquency factor is included in the calculation (usually 2%). The Town does not have a primary property tax. 10. Budget Adoption. This budget is being adopted by the Town Council at a fund level. Each fund is a fiscal and accounting entity with a self-balancing set of accounts recording cash and other financial resources. The department level budget detail that is contained within the financial system is designed and used wholly as a management tool for the individual departments. A sub-fund may also be created to track a specific project or goal and is used as a tool for management purposes. A sub-fund would be an extension of major fund such as a project fund. 11. Vehicles/Equipment and Infrastructure Projects. The Town Council will approve specific positions, vehicles, equipment and facility infrastructure projects as part of the FY 2012- 13 budget. Additional funding requested during the fiscal year must be submitted to the Town Council for approval or ratification. A. Mid-year Requests. All mid-year General Fund vehicle and equipment requests that exceed $5,000 and capital items (account series 8010) must be approved by the Deputy Town Manager/Finance Director. Approval is required when using existing resources or requesting additional resources. B. Infrastructure Requests over $50,000. All infrastructure project requests that exceed $50,000 regardless of the funding source must be submitted to the Finance Division for review prior to forwarding information to the Town Manager. The Town Manager will recommend the project for approval by the Town Council. 1728405.1 EXHIBIT 1 TO THE TOWN OF FOUNTAIN HILLS 2012-13 BUDGET IMPLEMENTATION POLICY [Town of Fountain Hills Financial Policies, Amended and Restated June 18, 2009] See following pages. 1041593.2 TOWN OF FOUNTAIN HILLS FINANCIAL POLICIES Amended and Restated June 18, 2009 I. INTRODUCTION The 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 annually 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: 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 set by the Government Finance Officers’ Association standards for financial reporting and budgeting, by the Governmental Standards Board and other professional standards. 2. 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. 3. 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. 4. To deliver quality services in an affordable, efficient and cost-effective basis providing full value for each tax dollar. 1041593.2 2 III. FUND BALANCE Fund balance is defined as the cumulative difference of all revenues and expenditures, also considered the difference between fund assets and fund liabilities, known as fund equity. 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 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 on-going government operations during a slowdown in the economy or legislative changes to the revenue sharing formula. Other objectives that influence the size of the fund balance are: (a) preserving or improving the Aa3 bond rating, (b) maintaining a positive trend to historical fund balances, (c) maintaining a rating equal to or better than surrounding communities and (d) maintaining ratios consistent with desired outcomes of ten key ratios of financial condition (Government Finance Review, Dec. 1993) – Appendix A. 1. General Fund. The Town fund balance consists of three (3) components, defined below. In order to satisfy the objective of maintaining a bond rating equal to or better than surrounding peer communities a fund balance of at least 30% of revenues is recommended. The three components added together will help achieve the 30% goal. A. Definitions. “Designated unreserved fund balance” – means management’s intended use of otherwise available expendable financial resources reflecting actual plans submitted by the Town Manager and approved by the Town Council. An example would be funds set aside for future capital purchases, land acquisition, construction projects, equipment replacement, etc. “Rainy Day Fund” – means available expendable financial resources that are not the object of tentative management plans. Also defined as residual balance after revenues, expenditures and reserved/designated fund balance and available for future year appropriation. “Reserved fund balance” – means the portion of the Town funds that are not available for appropriation. 1041593.2 3 B. Guidelines. 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, staff and Town Council: (1) Rainy Day Fund. The Town will maintain a Rainy Day Fund separate and apart from the 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 no less than 30 days of annual operating expenditures for the upcoming fiscal year. 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. (a) Deposit Rules. (i) The initial Rainy Day Fund deposit shall be made by transferring the total amount of the “undesignated unreserved fund balance” from the General Fund to the Rainy Day Fund. (ii) 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 10% of the average of the General Fund revenues for the immediately preceding five 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. (ii) For any event that threatens the health, safety or welfare of the Town’s citizens. 1041593.2 4 (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 equal 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. (2) Designated Unreserved Fund. The Town will maintain a designated unreserved fund balance in the General Fund of a minimum 10% of the average actual General Fund revenues for the preceding five fiscal years. These reserves will be designated for “pay-as-you-go” capital replacement expenditures, equipment replacement, capital projects, prepay existing Town debt, or any other expenditure that is non-recurring in nature. The 10% is the minimum and is based on the Property and Equipment Replacement Schedule which may be increased to accelerate accumulation funds for a large capital expenditure. To the extent these reserves 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 designated General Fund Balance can only be authorized for expenditure by upon recommendation of the Town Manager and vote of the Town Council. 1041593.2 5 (3) Reserved Fund Balance. The Town will maintain a reserved 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. 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 undesignated general fund balance. Such projection will include an analysis of trends in fund balance levels on an historical and future projection basis. Funds in excess of the fund balance goals set forth above may be (a) transferred to the Rainy Day Fund, (b) used to supplement “pay as you go” capital outlay expenditures or (c) used to prepay existing Town debt. These funds may not be used to establish or support costs that are recurring in nature. These guidelines will be reviewed by the Town Manager every three years following adoption (or sooner at the direction of the Town Council). 2. Special Revenue Funds. The Highway User Revenue Fund (HURF) is a restricted fund and depends upon State Shared Revenues for over 90% of annual revenues. This fund may only be used for street and highway purposes. The combined undesignated unreserved, designated unreserved and reserved 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 Revenue Bond amount to be set aside as designated unreserved Fund Balance. The Excise Tax (0.4% of Local Sales Tax) Fund is a restricted fund dedicated to Economic Development and Land Preservation. The combined designated unreserved and reserved Fund Balance saved in this fund will be no less than the annual debt service payment for Land Preservation and prior year available funds for Downtown Development. 3. Debt Service Funds. The Debt Service Fund is established for the payment of principal and interest on bonded indebtedness. 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 Designated Unreserved and Reserved 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 2% greater than the annual delinquency factor based on the past five years delinquency rates. 1041593.2 6 4. Capital Project Funds. A capital improvement special revenue fund has been established to allow the Town to accumulate monies for: (A) purchase of land or buildings; (B) improvements to Town-owned properties; (C) grant matches associated with capital improvements; (D) public safety projects and equipment purchases; (E) economic development projects; and (F) such other capital projects as determined by the town council. The capital improvement special revenue 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 Project Fund are accumulated development fees 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 Designated Unreserved and Reserved 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 cost associated with the disposition of property before crediting the capital improvement special revenue fund. The town council may approve the uses of the capital improvement special revenue fund as a part of its annual budget or by motion and affirmative vote at a time the expenditures are awarded. IV. FINANCIAL PLANNING Fiscal 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. 1. The Town Manager shall submit to the Town Council 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 which begins July 1 and ends on 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. 2. 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. 1041593.2 7 B. Expenditure estimates by department levels and major expenditure category, by major fund. C. Estimated fund balance by major 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. 3. 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. Ongoing operating costs should be supported by ongoing, stable revenue sources. This 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. 5. The Town Manager will provide an estimate of the Town’s revenues annually for each fiscal year. The estimates of special (grant, excise tax, etc.) revenues and interfund transfers will also be provided by the Town Manager. 6. 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. 7. The Town Manager shall provide annually 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. 1041593.2 8 8. Performance measurement indicators will be integrated into the budget process as appropriate. 9. 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. 10. Department Directors are required to monitor revenues and control expenditures to prevent exceeding their total departmental expenditure budget. It is the responsibility of these department directors to immediately notify the Town Manager of any exceptional circumstances that could result in a departmental expenditure budget to be exceeded. 11. 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. 12. 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 and 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. 1. 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. 2. 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. 3. Expenditures will be controlled through appropriate internal controls and procedures in processing invoices for payment. 1041593.2 9 4. 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. 5. Assets will be capitalized at $10,000 and will be recorded in the Town of Fountain Hills Summary of General Fixed 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. 1. 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. 2. 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. 3. 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. 4. 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. 1041593.2 10 C. Costs associated with special conditions or regulations attached to the grant award. 5. 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 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. 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 85% of those one-time revenues to the Capital Projects Fund. At the end of each fiscal year 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. 1. The Town may establish user fees and charges for certain services provided to users receiving a specific benefit. 2. 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. 3. 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. 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. 1041593.2 11 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. The Arizona Constitution limits a city or town’s bonded debt capacity (outstanding principal) to certain percentages of the Town’s secondary assessed valuation by the type of project to be constructed. There is a limit of 20% of secondary assessed valuation for projects involving water, sewer, artificial lighting, parks, open space, public safety, transportation, streets and recreational facility improvements. There is a limit of 6% of secondary assessed valuation for any other general-purpose project. 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 Designated Unreserved Fund. 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 program ranking criteria will give greatest weight to those projects which protect the health and safety of its citizens. Pay-as-you-go project 1041593.2 12 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 five years shall not be eligible for inclusion in bond issues. C. Lease purchase financing shall only be undertaken 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 which 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. Seven steps in preparation of Capital Improvement Program: (1) Establish Capital Improvement policies. (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. 1041593.2 13 (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) Public/Private partnerships. (e) Issuance of Securities. (f) Capital Leases. (6) Approve the CIP and Budget. 1041593.2 14 (a) Legislative review. (b) Public hearing. (c) Adoption of the CIP and capital budget. The Town of Fountain Hills capital improvement program ranking criteria will give greatest weight to those projects which protect the health and 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. All capital project request 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 a detailed description of the useful life of capital projects submitted in conjunction with the preparation of the Town’s CIP. Projects with a useful life of less than ten years shall not be eligible for inclusion in bond issues except in extraordinary circumstances. 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. 3. Financing Alternatives. A. Financing alternatives include, but are not limited to: (1) Grants. (2) Developer Contributions. (3) General Obligation Bond – requires voter approval, supported by an ad valorem (property) tax. (4) Revenue Bonds – repaid with revenue stream (HURF, revenue generated by project). (5) Municipal Property Corporation Bonds – repaid with a dedicated revenue source. (6) CFD or Special District Bonds – supported by an ad valorem property tax. (7) Capital Leases – repaid within operating budget. 1041593.2 15 (8) Commercial Paper (CP) or Bond Anticipation Notes (BAN) with terms less than two years. B. Town Debt Service costs (GO, Revenue Bonds, MPC, Leases) shall not exceed 20% of the Town’s operating revenue in order to control fixed costs and ensure expenditure flexibility. Improvement District (ID), Community Facility District (CFD) and Special 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 have been established and included within the Town’s CFD policy. C. In accordance with requirements of the State of Arizona Constitution, total bonded indebtedness shall not exceed 20% of the Town’s total secondary assessed valuation of taxable property in the Town for water, sewer, artificial lighting, parks, open space, public safety, transportation, streets and recreational facility improvements and 6% of the total secondary assessed valuation of taxable property in the Town for all general purposes. D. The Town shall comply with all U.S. Internal Revenue Service arbitrage rebate requirements for bonded indebtedness. E. Where applicable, the Town will structure General Obligation 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. F. 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. G. 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. H. 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. 1041593.2 16 (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. I. Municipal Property Corporation 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). J. The Town’s privilege tax to debt service goal will be a ratio of at least 3.5:1 to ensure the Town’s ability to pay for long term debt from this elastic revenue source. 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 domiciled in Arizona 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 of Fountain Hills will use competitive sales as the primary means of selling new General Obligation or revenue bonds that are repaid through ad valorem (property) taxes. Negotiated sales will be permitted for all other debt issues when it is expected to result in a lower true interest cost than would a competitive sale of that same date and structure or there is evidence of volatile market conditions, complex security features, or another overriding factor. 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 1041593.2 17 cost-effective manner and in compliance with the governing statutes and regulations. The Manager and the Town Attorney shall consult and jointly select the bond counsel for a bond issue. The Town Attorney will review all documents related to the issuance of securities by the jurisdiction. 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 on an annual basis all financial information and/or notices of material events to the rating agencies and Nationally- Recognized Municipal Securities Information Repositories (NRMSIRs). The annual report will include but not be limited to the Town’s annual Comprehensive Annual Financial Report (CAFR). 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. 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 SEC Rule 15c2-12 and MSRB Rule G-36. 1727752.1 EXHIBIT B TO RESOLUTION NO. 2012-18 [Organization Charts, 2012-13 Play Plan, Schedule of Authorized Positions and Employee Job Descriptions] See following pages. De v e l o p m e n t   Se r v i c e s Ci t i z e n s  of  Fo u n t a i n  Hi l l s Mu n i c i p a l  Co u r t   Ju d g e To w n  of  Fo u n t a i n  Hi l l s  Or g a n i z a t i o n En g i n e e r i n g / G I S St r e e t s / Fl e e t Re c r e a t i o n Co m m u n i t y   Se r v i c e s Fi r e  / EM S Ad m i n i s t r a t i o n Law Enforcement Ma y o r  an d  To w n  Co u n c i l To w n  Ma n a g e r Town Attorney Co m m u n i t y Ce n t e r Pl a n n i n g / Co d e  En f o r c e m e n t Bu i l d i n g  Sa f e t y Fa c i l i t i e s De p u t y  To w n  Manager/ Fi n a n c e  Director To w n  Clerk Hu m a n  Re s o u r c e s / Ri s k  Ma n a g e m e n t Ec o n o m i c   De v e l o p m e n t Se n i o r   Se r v i c e s Pa r k s To w n  Ma n a g e r Ke n n e t h  W.  Bu c h a n a n Ex e c u t i v e  As s i s t a n t Sh a u n n a  Wi l l i a m s *V o l u n t e e r   Co o r d i n a t o r  (.88) He a t h e r  Ware AD M I N I S T R A T I O N  DE P A R T M E N T IT  Co o r d i n a t o r Mi k e  Ci c c a r o n e Fi n  Se r v i c e s Te c h  (. 2 5 ) IT  Te c h  (. 7 5 ) Be a t a  Bo g d a n Ac c o u n t i n g    Su p e r v i s o r Qu i n e l l  Hu i *C S R  (. 5 ) Ro b i n  Le h m a n * Part time *A c c o u n t i n g   Cl e r k  (. 5 ) So n i a   Ku k k o l a *F i n  Se r v i c e s   Te c h  (. 5 ) Jo  Mo o r m a n *C S R  (. 5 ) Ca t h y  Wh y n o t De p u t y  To w n  Ma n a g e r /   Fi n a n c e  Di r e c t o r Ju l i e  Gh e t t i To w n  Cl e r k Be v  Be n d e r HR  Ad m i n i s t r a t o r / Ri s k  Ma n a g e r Jo a n  Mc I n t o s h Economic Development Administrator Lori Gary Di r e c t o r Pa u l  Mo o d   Ex e c u t i v e  As s i s t a n t Ja n i c e  Ba x t e r En g i n e e r i n g   In s p e c t o r Ju s t i n  We l d y Co d e   En f o r c e m e n t Ro y  Ja f f e DE V E L O P M E N T  SE R V I C E S  DE P A R T M E N T *C u s t o d i a n  (. 7 5 ) Mi t c h  Ar i o l a Ma i n t e n a n c e  Te c h . Ge o r g e  Wa l i g o r a St r e e t s  Ma i n t T e c h Fr a n k  Ge r m i n a r o GI S / C A D  Op e r a t o r Ke n  Va l v e r d e Permit Tech Marilyn Grudier                    *C u s t o d i a n  (. 5 ) Ju a n  He r n a n d e z St r e e t s  Ma i n t T e c h Va c a n t * Part time St r e e t s   Su p e r i n t e n d e n t Ke n  Ku r t h Fa c i l i t i e s  /E n v i r o n m e n t a l   Su p e r v i s o r Ra y m o n d  Re e s To w n  En g i n e e r Ra n d y  Ha r r e l Se n i o r  Pl a n n e r Bo b  Ro d g e r s Chief Building Official/Plans Examiner Jason Field Tr a f f i c  Si g n a l  Te c h  II Ji m  Mi c h a l a k Fl e e t  Me c h a n i c / Op e n  Sp a c e    Sp e c i a l i s t Je f f  La r s o n St r e e t s    Ma i n t T e c h Gr e g  El c o Di r e c t o r Ma r k  Ma y e r Ex e c u t i v e  As s i s t a n t Na n c y  Wa l t e r Parks Supervisor Don Clark Re c r e a t i o n Su p e r v i s o r Br y a n  Hu g h e s Re c C o o r d Ka t h y  Wo r r e l l Re c C o o r d An j e l i c a  Gi a r d i n o CO M M U N I T Y  SE R V I C E S  DE P A R T M E N T           Parks Lead Bo Cichuniec Grounds  Keeper Eric Smyth *R e c A s s i s t    (. 6 1 ) Er i k  Lu n d i n Grounds Keeper Phil McKenzie *R e c e p t i o n i s t  (. 7 5 ) Su s a n  Ph i l l i p s *R e c e p t i o n i s t  (. 2 5 ) Do m i n i c k  La B a t e Grounds  Keeper Wes Loyet *R e c A s s i s t    (. 6 1 ) Da n i e l l e  Se r r a n o *R e c A s s i s t  (. 6 1 )   Ro n n M i l l e r Co m m u n i t y  Ce n t e r   Op e r a t i o n s    Co o r d i n a t o r Bi l l  Ha u g h e y Co m m u n i t y  Ce n t e r Ev e n t s  Co o r d i n a t o r Ri n o  Gh e t t i Se n i o r  Se r v i c e s   Su p e r v i s o r Ke l l e y  Fo n v i l l e *S e n i o r  Se r v i c e s   As s i s t a n t  (. 3 5 ) Lo r i l e e D u n n *H D M Co o r d i n a t o r    (. 7 5 ) Va c a n t *A c t i v i t i e s   Co o r d i n a t o r  (. 5 8 ) Ma r t i    Le m i e u x Parks Lead Chance Butterfield *R e c A s s i s t  (. 6 1 )   Ji m  Ha m a n n *O p e r a t i o n s  Su p p o r t   Wo r k e r  (. 8 2 5 ) Ro n  Ho f f m a n *O p e r a t i o n s  Su p p o r t   Wo r k e r  (. 8 2 5 ) Cl a y  Va s k e * Part time Pr e s i d i n g  Ju d g e   Mi t c h e l l  Ei s e n b e r g Court Clerk Nan Norton Co u r t  Cl e r k Ro b y n  Be c h e r MU N I C I P A L  CO U R T Se n i o r  Co u r t  Cl e r k Da w n  He r n a n d e z Co u r t    Ad m i n i s t r a t o r Pa t  Du n n Schedule of Authorized Positions Position – Title 2007-2008 2008-2009 2009-2010 2010-2011 2011-2012 2012-2013 Authorized Authorized Authorized Authorized Proposed Proposed FTE FTE FTE FTE FTE FTE Municipal Court Presiding Judge 1.00 1.00 1.00 1.00 1.00 1.00 Court Administrator 1.00 1.00 1.00 1.00 1.00 1.00 Senior Court Clerk 1.00 1.00 1.00 1.00 1.00 1.00 Court Clerk 2.00 2.00 2.00 2.00 2.00 2.00 Authorized FTE 5.00 5.00 5.00 5.00 5.00 5.00 Administration Town Manager 1.00 1.00 1.00 1.00 1.00 1.00 Assistant to the Town Manager 1.00 1.00 0.00 0.00 0.00 0.00 Deputy Town Manager/Finance Director 0.00 0.00 1.00 1.00 1.00 1.00 Executive Asst to Town Mgr/Council 1.00 1.00 1.00 1.00 1.00 1.00 Administrative Assistant 1.00 1.00 1.00 0.00 0.00 0.00 Town Clerk 1.00 1.00 1.00 1.00 1.00 1.00 Human Resources Adminstrator/Risk Mgr.1.00 1.00 1.00 1.00 1.00 1.00 Volunteer Coordinator 0.50 0.50 0.75 0.75 0.88 0.88 Economic Development Administrator 0.00 0.00 1.00 1.00 1.00 1.00 Public Information Officer 1.00 1.00 0.00 0.00 0.00 0.00 Community Affairs/Media Relations 0.00 0.00 1.00 0.00 0.00 0.00 Information Technology Coordinator 1.00 1.00 1.00 1.00 1.00 1.00 Information Technology Technician 0.00 0.50 0.50 0.50 0.75 0.75 Information Technology Intern 0.50 0.00 0.00 0.00 0.00 0.00 Finance Director 1.00 1.00 0.00 0.00 0.00 0.00 Accounting Supervisor 1.00 1.00 1.00 1.00 1.00 1.00 Financial Services Technician 0.00 0.00 1.00 1.00 0.75 0.75 Accounting Clerk 1.50 1.50 0.50 0.50 0.50 0.50 Customer Service Representative 1.00 1.00 0.50 0.50 0.70 0.80 Receptionist 0.00 0.00 0.00 0.00 0.00 0.00 Authorized FTE 13.50 13.50 13.25 11.25 11.58 11.68 1 Schedule of Authorized Positions Position – Title 2007-2008 2008-2009 2009-2010 2010-2011 2011-2012 2012-2013 Authorized Authorized Authorized Authorized Proposed Proposed FTE FTE FTE FTE FTE FTE Development Services Developmental Services Director 0.00 0.00 0.00 1.00 1.00 1.00 Public Works Director 1.00 1.00 1.00 0.00 0.00 0.00 Town Engineer 1.00 1.00 1.00 1.00 1.00 1.00 Civil Engineer 2.00 2.00 2.00 0.00 0.00 0.00 Senior Civil Engineer Inspector 1.00 0.00 0.00 0.00 0.00 0.00 Civil Engineer Inspector 1.00 2.00 1.00 1.00 1.00 1.00 Planner - Environmental (Stormwater)0.00 1.00 1.00 1.00 1.00 0.00 Executive Assistant 1.00 2.00 2.00 1.00 1.00 1.00 Facilities Supervisor 1.00 1.00 1.00 1.00 1.00 0.00 Facilities/Environmental Supervisor 0.00 0.00 0.00 0.00 0.00 1.00 Facilities Maintenance Tech 1.00 1.00 1.00 1.00 1.00 1.50 Maintenance/Custodial Worker 0.50 0.50 0.75 0.00 0.00 0.00 Custodian 2.00 1.50 1.50 1.25 1.25 1.25 Street Superintendent 1.00 1.00 1.00 1.00 1.00 1.00 Open Space & Landscape Specialist 1.00 1.00 1.00 1.00 0.00 0.00 Fleet Mechanic/Open Space 1.00 1.00 1.00 1.00 1.00 1.00 Traffic Signal Technician I 0.00 1.00 1.00 0.50 0.00 0.00 Traffic Signal Technician II 0.00 1.00 1.00 1.00 1.00 1.00 Street Maintenance Technician 8.00 6.00 6.00 4.00 3.00 3.00 Planning &Zoning Director 1.00 1.00 1.00 0.00 0.00 0.00 Senior Planner 1.00 1.00 1.00 1.00 1.00 1.00 Planner 2.00 1.00 0.50 0.50 0.00 0.00 GIS Technician/CAD Operator 2.00 2.00 2.00 1.00 1.00 1.00 Senior Code Enforcement Officer 1.00 1.00 0.00 0.00 0.00 0.00 Code Enforcement Officer 2.00 2.00 2.00 1.00 1.50 1.00 Planning Assistant 1.00 0.00 0.00 0.00 0.00 0.00 Chief Building Official/Plans Examiner 0.00 0.00 0.00 0.00 0.00 1.00 Chief Building Official 1.00 1.00 1.00 1.00 1.00 0.00 Plans Examiner 2.00 2.00 1.00 1.00 0.50 0.00 Building Inspector 3.00 3.00 2.00 0.00 0.00 0.00 Building Permit Technician 2.00 2.00 2.00 1.00 1.00 1.00 Authorized FTE 40.50 40.00 35.75 23.25 20.25 18.75 2 Schedule of Authorized Positions Position – Title 2007-2008 2008-2009 2009-2010 2010-2011 2011-2012 2012-2013 Authorized Authorized Authorized Authorized Proposed Proposed FTE FTE FTE FTE FTE FTE Community Services Community Services Director 1.00 1.00 1.00 1.00 1.00 1.00 Recreation Supervisor 1.00 1.00 1.00 1.00 1.00 1.00 Recreation Program Coordinator 2.00 2.00 2.00 2.00 2.00 2.00 Recreation Assistant 4.00 4.00 4.00 2.35 2.45 2.45 Recreation Aide 1.00 1.00 1.00 0.00 0.00 0.00 Recreation Intern 0.50 0.50 0.50 0.00 0.00 0.00 Executive Assistant 2.00 2.00 2.00 1.00 1.00 1.00 Parks Supervisor 1.00 1.00 1.00 1.00 1.00 1.00 Park Operations Lead 3.00 4.00 3.00 3.00 3.00 2.00 Park Ranger 2.00 1.00 0.00 0.00 0.00 0.00 Groundskeeper 2.00 2.00 2.00 2.00 2.00 3.00 Customer Service Representative 1.00 1.00 0.50 0.50 0.30 0.30 Comm Ctr Director 1.00 1.00 1.00 0.00 0.00 0.00 Comm Ctr Operations Supervisor 1.00 0.00 0.00 0.00 0.00 0.00 Events Coordinator - Community Center 0.00 1.00 1.00 1.00 1.00 1.00 Operations Coordinator - Community Center 0.00 1.00 1.00 1.00 1.00 1.00 Operations Support Worker 2.00 1.50 1.50 1.50 2.00 1.65 Operations Support Assistant 0.50 0.50 0.50 0.50 0.00 0.00 Receptionist 1.00 1.00 1.00 1.00 1.00 1.00 Bartender 0.25 0.25 0.00 0.00 0.00 0.00 Senior Services Supervisor 1.00 1.00 1.00 1.00 1.00 1.00 Senior Services Activities Coordinator 0.00 0.50 0.50 0.58 0.58 0.58 HDM/Special Programs Admin 0.50 0.00 0.00 0.00 0.00 0.00 Home Delivered Meals Coordinator 0.50 0.50 0.50 0.75 0.75 0.75 Senior Services Assistant 0.50 0.50 0.50 0.45 0.45 0.45 Senior Aide 0.50 0.50 0.50 0.00 0.00 0.00 Driver 0.00 0.00 0.10 0.00 0.00 0.00 Authorized FTE 29.25 29.75 27.10 21.63 21.53 21.18 Total Authorized FTE 88.25 88.25 81.10 61.13 58.36 56.61 3