HomeMy WebLinkAbout2003.0515.TCRM.Minures TOWN OF FOUNTAIN HILLS
MINUTES OF THE REGULAR SESSION OF THE
FOUNTAIN HILLS TOWN COUNCIL
May 15,2003
Mayor Beydler called the meeting to order at 6:35 p.m.
Mayor Beydler noted the recent passing of PAUL NORDIN, who served as Fountain Hills'first Town Manager,
and read a personal statement regarding Paul:
ROLL CALL - Present for roll call were the following members of the Fountain Hills Town Council: Mayor
Jon Beydler, Vice Mayor Susan Ralphe, Councilmembers Rick Melendez, Leesa Stevens, Kathleen Nicola,
Michael Archambault, and John Kavanagh. Town Attorney Andrew McGuire, Town Manager Tim Pickering,
Accounting Supervisor Julie Ghetti, Public Works Director Tom Ward, Parks & Recreation/Community Center
Director Mark Mayer, Senior Planner Denise Ruhling and Bevelyn Bender,Town Clerk, were also present.
Following the Pledge of Allegiance, a moment of silence was observed in memory of former Town Manager
Paul Nordin.
•
RECOGNITION ITEMS/PROCLAMATIONS:
The Mayor requested that Tiffany Cole, a Fountain Hills high school student, stand and be recognized. He
presented her with a Certificate of Recognition for her athletic achievements in Arizona State Tennis
Championship,four years in a row.
Mayor Beydler read a Proclamation, which recognized the brave individuals who gave their lives in the service
of their country. He asked the residents of Fountain Hills to join him in remembering those courageous men and
cur women on this Memorial Day, the 26th of May 2003.
AGENDA ITEM#1 - CONSIDERATION OF APROVING THE MEETING MINUTES OF 4/3/03,4/8/03
AND 5/1/03.
AGENDA ITEM #2 - CONSIDERATION OF THE LIQUOR LICENSE APPLICATION FOR
CHILMARK GRILL LOCATED AT 13014 N. SAGUARO BLVD. THE APPLICATION IS FOR A
NEW CLASS#12 LICENSE.
AGENDA ITEM #3 - CONSIDERATION OF THE LIQUOR LICENSE APPLICATION FOR
FOUNTAIN HILLS EXPRESS LOCATED AT 11829 N. SAGUARO BLVD. THE APPLICATION IS
FOR A NEW CLASS#10 LICENSE.
AGENDA ITEM #4 - CONSIDERATION OF THE LIQUOR LICENSE APPLICATION FOR NICK
MORGAN'S SPORTS GRILL LOCATED AT 16737 E. PARKVIEW. THE APPLICATION IS FOR A
TRANSFER OF A CLASS#6 BAR LICENSE.
AGENDA ITEM #5 - CONSIDERATION OF A REQUEST TO ABANDON THE FINAL PLAT OF
COYOTE RUN, WHICH IS A REPLAT OF LOTS 12 AND 13, BLOCK 3, FINAL PLAT 603-A
AMENDED AND REVERT BACK TO LOT 12 AND 13, BLOCK 3, FINAL PLAT 603-A AMENDED,
CASE#S2003-04.
AGENDA ITEM#6- CONSIDERATION OF A REQUEST TO EXTEND THE SPECIAL USE PERMIT
AND THE PRELIMINARY PLAT APPROVAL FOR THE VILLAS DEL CIELO CONDOMINIUM
PROJECT FOR ONE YEAR, LOCATED ON LOTS 2, 3 AND 4 OF TOWN CENTER II FINAL PLAT
' CASE#SU2002-02.
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AGENDA ITEM #7 - CONSIDERATION OF RESOLUTION 2003-28 ABANDONING WHATEVER
RIGHT, TITLE OR INTEREST THE TOWN HAS IN THE CERTAIN HILLSIDE PROTECTION
EASEMENT OVER A PORTION OF TRACT "C" OF FIREROCK PARCEL M-2 FINAL PLAT AS
RECORDED IN BOOK 550 OF MAPS, PAGE 9, RECORDS OF MARICOPA COUNTY, ARIZONA,
CASE HPEA2003-01.
Councilwoman Stevens MOVED to approve the consent agenda as read (Items 1-7) and Councilman
Archambault SECONDED the motion. A roll call vote was taken with the following results:
Vice Mayor Ralphe Aye
Mayor Beydler Aye
Councilman Melendez Aye
Councilwoman Nicola Aye
Councilwoman Stevens Aye
Councilman Archambault Aye
Councilman Kavanagh Aye
The motion CARRIED UNANIMOUSLY.
AGENDA ITEM#8 - REPORT FROM THE TOWN ATTORNEY ON THE STATUS OF THE GIBSON
LAWSUIT.
Town Attorney Andrew McGuire stated that a discussion on this issue last week was continued to this week and
reported that during the intervening period an event occurred that he had discussed previously with the Council,
the distinct possibility that the risk pool, the Town's insurer, would take control of the settlement in this
situation, settle the case, and waive the Town's deductible. He reported that the net result was that upon
execution of the settlement agreement, which could not be discussed at this time because it had not yet been
signed, the case would be dismissed with prejudice and there would be no cost to the Town. He added that he
would be happy to respond to questions directly related to the terms of the actual settlement agreement when
Lir they reached that point. •
AGENDA ITEM #9 - REVIEW AND CONSIDERATION OF ADOPTION OF THE TENTATIVE
BUDGET FOR THE TOWN OF FOUNTAIN HILLS FOR THE 2003-04 FISCAL YEAR AND
SETTING THE FINAL BUDGET ADOPTION MEETING OF JUNE 5, 2003. ALL ASPECTS OF
REVENUES AND EXPENDITURES WILL BE DISCUSSED AND CONSIDERED.
Town Manager Tim Pickering said that this evening they would embark on one of the most important
responsibilities of the Town Council, namely reviewing and approving the budget for Fiscal Year 2003-04. He
reported that the Town was required by State law to adopt a budget each year. He noted that the town's finances
and expenses couldn't exceed revenue brought in. He explained that Fiscal Year was July 30th through June
30th and the actual process for the budget began in January. Over 400 Staff hours had been dedicated to the
preparation of the budget. He commented that budgeting was an art,not a science, and a number of assumptions
had been used to compile the budget(i.e. gas, law enforcement,Proposition 400).
Mr. Pickering provided a brief overview of the highlights of the fiscal year 2003-04 Fountain Hills Budget and
noted that the budget was balanced and a full year of the Town's reduction plan had taken place. He noted that a
financial stability plan had been implemented and that core services were being provided. He said that the
Town began with basically a "zero based approach" and every department was required to justify all
expenditures. He reported that effort was expended to restore the fund balance and, unlike last year's budget, a
number of capital items had been included in the budget. He added that more focus had been placed on the
downtown area.
Mr. Pickering discussed his intention to discuss, compare, and review all funds together in the approximate$18
million budget and stated that he would specifically discuss the General Fund revenues and recap top revenues
for the last ten years. He stressed the importance of reviewing fund expenditures by Department as well as the
fund balance, the budget reduction plan. General Fund expenditures by category, including a look at capital
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projects proposed, Special Revenue Fund summaries including capital projects and added that he would also like
to address where the Town goes from this point on.
Lor He referred to charts displayed in the Council Chambers and noted that total revenues were approximately $19
million. He noted that a significant portion comes from local and state sales tax (approximately 50%) and
another 20% was actually shared revenues (HURF funds) as well as income tax. He reported that a secondary
property tax also generated approximately 11% in revenues. He noted that expenditures for all funds totaled
approximately $18 million and pointed out that a majority of it comes out of the General Fund. He added that
another portion comes out of the HURF funds and 13%comes out of debt service. He informed the Council that
a new fund might come on line this year (a new fire and EMS fund) depending upon what happens at the
upcoming election and whether Proposition 400 passes. He also commented on the existing excise tax and
noted that this was a new fund and was restricted to the annual bond payment for preservation and downtown
development expenditures. He noted that debt service was for payment of principal and interest on outstanding
debt and the difference between revenues and expenditures remains in the fund balance.
Mr. Pickering stated that he wanted to present a comparison that he didn't believe had been done before on the
largest expenditures throughout the entire budget. He stated the opinion that it was important to concentrate on
where the largest amount of money was spent so that areas where savings might be realized in the future would
be easier to identify. He reported that the largest expenditure was salaries (19.4%); followed by debt service
(13.5%)Rural Metro Contract(12.8%); Capital Expenditures -Improvements (7.6%); Sheriffs Contract(6.6%);
Sales Tax Rebates (4.5%); Capital Outlay Furniture & Equipment (4.2%); Debt Retirement (3.2%); Rent
Expense (2.6%); Major Road. Improvements (2.2%); Employee's Health Insurance (2.1%); Employee's
Retirement Fund(2.0%0; and Liability Insurance(2.0%).
Discussion ensued relative to General Fund Revenues which was based on the assumption that no changes in the
allocation of State-shared revenues would occur; the fact that 64% of revenue was from sales tax; a 13%
decrease in State income tax due to lower earnings Statewide; the fact that if a property tax was approved it
would replace the 1% increase in local sales tax; revenues generated as a result of building permits, Vehicle
License Tax, and charges for services(Community Center and Park rentals).
Mr. Pickering reviewed data pertaining to General Fund Expenditures by Department and noted that the Fire
Department was the largest, accounting for 20%, 15% for law enforcement, 18% for Parks, Recreation,
Community Center, and 16% for 'Public Works, Planning and Building Safety. He pointed out that
administration was listed at 26%but noted that approximately 18% of that represented items that all departments
use such as office space rental, electricity, legal, insurance, etc. He also highlighted a General Fund comparison
by Department and noted that a lot of cuts had taken place in various departments throughout the Town. He
stated that the figures represented this year's budget compared to last year's and noted that administration costs
had dropped dramatically. He also noted that Building Safety had increased due to the hiring of three additional
Code Enforcement Officers and commented 'on staff reductions that took place throughout the Law •
Enforcement, Public Works and 'Planning and Zoning Departments. He commented on additional staff
reductions as well as decreases in capital costs that had occurred and the elimination of dispatching services. He
reported that the "bottom line" is that the Town had more revenue than expenses this year and noted that this
was a positive situation to be in.
Mr. Pickering referred to a slide that depicted the Town's General Fund Balance and stressed the importance of
achieving the current goal of$4.7 million in reserves. He reported that the estimated year-end balance was $3.1
million. He noted that budget reductions occurred in every single department throughout the Town. Staffs
estimate at that time that the cuts would result in a savings of approximately $2.8 million. He reported that the
actual savings realized was approximately $2.7 million. He stated that 22 different items/areas were cut and
they remained that way, yet the Town continued to provide the services that Fountain Hills'residents expect and
deserve. He commented on the added responsibilities that the employees have had to assume in order to
accomplish stated goals and pointed out that only two items contained in the reduction plan had been included
once again in the budget,the partial over-seeding of parks and wash maintenance.
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Mr. Pickering commended the employees on the outstanding jobs they had carried out despite staff reductions,
organizational changes, increased workloads, and increased responsibilities. He also pointed out the absence of
any new full-time positions in the General Fund and noted that the line "was being held" on the cuts that were
fir, made. He added that no cost of living adjustment had been recommended either but and said that a 4.5% merit
increase was included based on evaluations. He stated that salary and benefits were approximately one third of
the General Fund. He informed the Council that the number of law enforcement personnel would most likely
change and noted that they were awaiting final word from the Justice Department regarding grants that were
received for the purpose of adding employees in the Marshall's Department. He explained that once a positive
ruling in the Town's favor had been received, they would reduce the number of employees and actually add to
the Maricopa County contract.
Mr. Pickering noted that for the last several months, the Town had tried to do without a Planning Manager
position, one that they already had in place. He said that although the Public Works Director had performed
admirably in this area, the workload was just too great and a very strong need existed to fill this position with a
qualified individual. He noted that the budget contained funding to reinstate this important position. He also
pointed out the Town's management ratio went from 2.9:1 to a respectable level of 4.2:1 and said that they
should all be proud of this figure.
Additional discussion ensued relative to General Fund contractual services which the Town of Fountain Hills
strongly relied upon; the fact that contracts included Rurai Metro Corporation, the Maricopa County Sheriffs
Department; a new item, Sales Tax Rebates in the form of incentives for developers as well as Four Peaks;
Legal Fees (attorney and prosecutor); shuttle service (RPTA); auditors, the newsletter and tourism; the fact that
the contracts represented 42.5% of the General Fund Budget; the fact that an increase in Rural Metro's contract
and sales tax rebates offset reductions in other contracts; the fact that a 2.6% increase took place from Fiscal
Year 2002 to 2003 and the fact that the Town would bid those contracts whenever possible.
Mr. Pickering also commented on General Fund repairs, maintenance and supplies and reported that repairs and
maintenance were reduced 17% from fiscal year 2002-03 while Supplies and Services were reduced 12% during
that same period of time. He discussed General Fund Capital Projects which included Fountain Park Phase II;
Credit Card Module (Parks & Recreation); and the fact that a good financial policy required that 10% be
budgeted for capital replacement. He reported that only 4.5% had been budgeted for the current year, a
significantly low figure, and explained that during the next Fiscal Year the Town was going to have to deal with
GASB34 (Government Accounting Standards Board) which would require the Town to institute depreciation
and replacement schedules as to what the streets cost, including repair costs, and effort was going to need to be
expended to set aside funds for those expenses.
In response to a request from Mr. Pickering, Parks and Recreation Director Mark Mayer provided a brief
overview of General Fund Capital Projects, including the completion of a large portion of Fountain Hills Park
Phase II and details relating to the proposed.shaded tot lot and playground; the Fountain Park Master Plan, both
existing and proposed; the proposed addition of three picnic ramadas and the fact that increased demands have
resulted in reservations being turned down due to lack of facilities; the development of a proposed walking path
that would complete a circle around Fountain Lake at a total cost of $187,000; the fact that a portion of an
unused$70,000 grant may be used to offset this cost; the construction of a sidewalk from the western side of the
park to Saguaro Boulevard and the fact that the current path was worn bare from use; and proposed Parks &
Recreation credit card registration software at a total cost of$13,000, which would allow participants to register
for programs on line using credit cards and would reduce the number of refund checks that needed.to be written.
Mr. Pickering thanked Director Mayer for his presentation and noted that the General Fund was balanced. He
also commented on the Highway User Revenue Fund and noted that the revenues came from not only the
gasoline tax but from the Lottery Fund as well. He requested that Public Works Director Tom Ward provided
the Council with a brief overview of proposed street maintenance for the 2003-04 Fiscal Year.
Director Ward reported that the expenditure before the Council was for $407,475 for major road improvements
and noted that $246,975 of that amount was for delayed slurry seal projects; $75,000 was for micro surfacing of
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deteriorated roads; $46,000 was for plastic emulsion seal and $20,000 was for thermoplastic. He stressed the
importance of proceeding with this work and noted that maintenance was overdue and necessary. He noted that
curb work as well as handicap ramps and aprons were also included. He pointed out that the dollar amount was
$17,500 and on Page 125 of the Budget, the number was incorrectly listed as $20,000. He also discussed
proposed traffic calming measures in the amount of$2,000 and stated that this might be in the form of speed
humps, extra striping, or other calming efforts. He informed the Council that the Department was purchasing a
new program this year (pavement maintenance software) and said that the $800 expenditure would allow Staff
to analyze all of the streets in Town and for the next Fiscal Year Staff would make a presentation on the
proposed maintenance needs of Fountain Hills'streets.
Mr. Pickering also commented on the Sales/Excise Tax Fund and noted that this represented the 2.6% sales tax
out of the 8.9% sales tax that was paid and the monies returned to the Town of Fountain Hills. He added that
out of the 2.6%, the Council had dedicated 3/10ths of that to be used for land preservation. He said that bond
payments had to be made as well as sales tax rebates and reported that for FY 2003-04, a surplus in the amount
of$241,203 existed. He added that there was an ending fund balance of$1,339,590. He also reported on the
next portion of the sales tax that was restricted, Downtown Development, and said that when the increase went
through a few years ago, it was determined that 1/10th of the tax would be dedicated to downtown development.
He advised that this year they budgeted for two different items, the first was construction along the Avenue of
the Fountains to improve the right-of-way ($225,000) and the second was a Downtown Development
Coordinator's position ($65,510 salary/benefits). He briefly outlined responsibilities associated with this
position and stressed the importance of hiring someone with specific expertise in this important area. He noted
that the position was recommended in the Hyatt-Palma study.
Additional discussion ensued relative to Special Revenue Funds, including grant funds and Community Center
furniture,fixtures and equipment;the fact that a Land and Water Conservation Fund Grant had been awarded for
the Fountain Park Phase II improvements in the amount of$160,000; another Grant in the amount of$24,150
from the Federal Emergency Management Agency that would provide upgrades to the Fire Department's self-
contained breathing apparatus equipment; and a third miscellaneous grant in the amount of $750,000 that the
Town was not sure it would receive at this point in time. Mr. Pickering explained that the grant appropriation
was provided in the event that the Town received a grant from the gaming proposition or any unanticipated
grants but reiterated that it remained an "unknown" at this time. He also noted that the Town had received
$292,000 in donations from the community to purchase furniture, fixtures and equipment for the Community
Center and noted that the balance, as of June 30, 2003, was approximately $187,300.
He also commented on the Development Fees Fund and reported that this included revenues from Development •
Fees and their use was restricted to the purpose for which they were imposed. He stated that four projects would
be completed with these funds: Streets (traffic signal at El Lago); Open Space (McDowell Mountain trailhead
study and design); Parks and Recreation (skate park at Four Peaks Neighborhood Park) and General
Government (reimbursement or review of office space and development fee study). Mr. Pickering discussed
development fees for streets (capital projects) and commented on the addition of the new traffic signal at El
Lago and Fountain Hills Boulevard and explained that the Town would receive 50% reimbursement of the
design and construction costs from the developer so the actual cost would only be about$100,000. He discussed
Staffs justification for proceeding with this project, which included congested side streets, increasing
north/south traffic and the high accident rate.
Mr. Pickering also informed the Council that Parks & Recreation had been building up their Development Fees
in an effort to reach a half a million dollars. Having reached that goal, they recommended that the following
projects take place: Design or construction of a modular skate park at Four Peaks, part of Four Peaks Phase II
Master Plan. He noted that this goal represented the fourth highest priority of the Parks & Recreation
Commission.
Mr. Pickering reiterated that the ending fund balance for fiscal year 2003-04 was $1,745,019 and stated that the
monies could not be used for operating costs. He also discussed the Debt Service Fund and commented on the
various bonds and payments. He noted that the Town still had approximately $13,778,114 in bonding
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remaining. He also referred to a proposed "wish list" of Capital Improvement Plan (all funds) for fiscal year
2003-04 in the amount of$1.3 million through fiscal year 2007-08 with an estimated amount of$5.6 million.
Mr. Pickering stated that the important question was, "Where do we go from here". He noted that the first step,
if the tentative budget was passed this evening, would only set the maximum expenditure level of$18.6 million.
He emphasized that the Council would not be voting this evening to approve the final budget. He explained that
expenditures and line items could change; they just could not exceed the maximum amount. He noted that the
tentative budget was published twice and the budget was also available on line. He encouraged citizens to go to
www.fh.az.gov to view the tentative budget. He reported that the earliest date the final budget could be approved was at the June 5th Council meeting and said that the goal was to pass the•budget before the start of
the fiscal year(July 1)to ensure that there was enough time to input the new budget.
In summary, Mr. Pickering noted that the General Fund was balanced and the fund balance continued to build.
He noted that this was the first time in three years that this had occurred. He added that the budget reduction
plan remained very much intact and that the proposed budget contained a small amount (7.6%) of capital
improvements. He stated that the Town was moving towards regaining financial stability but was not yet "out of
the woods." He expressed appreciation to the Mayor and Council, members of the various Commissions, the
Town's numerous volunteers, Department directors, Sue Stein, Mike Ciccarone, Ken Valverde, Julie Ghetti and
Paul Nordin for their ongoing efforts and support and indicated his willingness to respond to questions and
provide clarifications.
Councilman Kavanagh MOVED to approve the tentative budget for the Town of Fountain Hills for the 2003-
2004 Fiscal Year with respect to the spending cap and with respect to the concept of setting aside 20% per year
for the Reserve Fund and the creation of a new Capital Improvement Fund. Councilman Kavanagh said that this
would be the extent of his motion since he had some major and minor disagreements pertaining to the proposed
budget and he was not sure that he approved of all the new positions that Staff had recommended be created. He
emphasized that the intent of his motion was to "go lean at $18.6 million and be fiscally sound" in order to
stabilize the Town's bond ratings but he did not want word going out that he approved the $470,000 for the law
enforcement or the lack of funding for the Boys & Girls Club. He added that these were issues that had to be
discussed. Although he agreed with the concept, a lot of work remained to be done in these areas before it could
be announced that the Council had approved a budget. Councilwoman Stevens SECONDED the motion.
Councilman Kavanagh asked whether the various ball fields and courts at the Town's parks (Four Peaks &
Golden Eagle) were being "strained" from overuse and placing the Town on the verge of needing to spend extra
monies to begin developing more facilities at•Desert Vista. Mr. Mayer responded that most of the support
services that they provided were to the various youth groups and associations in Town and said it depended year
to year on whether the growth continued to occur throughout those various groups. He reported that they were
up to 400 in most of those larger organizations. He stated the opinion that the fields they had now were
adequate but barely so and quickly reaching the point where the groups were staggered, especially when you
mix in some of the over-seeding that takes place. He added that the temporary fields at Desert Vista helped
dramatically but were not a long-term solution to the problem.
Councilman Kavanagh asked about tennis and basketball courts and Mr. Mayer responded that with future park
development that had been planned, depending upon how quickly that occurs, he believed that sufficient space
existed at both the basketball and tennis courts to meet current demands. He commented on the fact that the
condition of the tennis courts throughout the Town ranged from very good to not so good and said that
maintenance dollars would help in this area.
Councilman Kavanagh requested that prior to the next budget meeting, Mr. Pickering meet with Parks and
Recreation Staff in an effort to determine when and what needed to be developed at Desert Vista Park. He also
questioned whether they should begin to put together another fund for this purpose and asked the Town
Manager to consider this as well.
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Councilwoman Nicola thanked Staff and the members of the Commission for all of their hard work and stated
that she really appreciated the balanced budget. She commented on the difficulties associated with all of the
cuts that had to be made and commended everyone for their continued efforts. She also stated her appreciation
Lsw for the support the citizens had shown particularly in view of the cuts that had to be made in staffing and
services. She advised that she had directed the Town Manager to transfer her Council salary in the amount of
$4800 to the Parks &Recreation Department to help pay for turning the fountain green on St. Patrick's Day and
to help fund the Halloween Carnival.
Mr. Pickering thanked Councilwoman Nicola for her contribution and noted that many special events were cut,
such as the 4th of July celebration and the Halloween extravaganza in order to limit expenses. He added that the
community had shown a lot of support and had come forward with offers to sponsor those events and Staff was
very appreciative of this fact.
Mr. Pickering also commented that Staff took a hard look at recreation and special interest programs offered this
year through Parks and Recreation and analyzed whether the Town had reached the "break even point" on each
of the various programs. He reported that some of the programs were cut and some of the trips that used to be
taken, such as to Disneyland trip or ballgames, could not be justified and were therefore eliminated.
Councilman Archambault commented on the wash program and contracts for maintaining washes and said he
noticed that in the Fire Department's budget, $120,000 had been included for contracts for fire and wash
maintenance in addition to the Public Work's contract. Mr. Pickering explained that only one of the contracts
would go into effect depending upon the outcome of Proposition 400. He added that if the Proposition didn't
pass,those monies would come out of the General Fund.
Councilmember Archambault also expressed concerns relative to the traffic situation at Four Peaks Park and
safety issues, particularly if a skate park went in at that location, and noted that the Boys & Girls Club intended
to add 52 additional parking spaces. Mr. Mayer responded that Staff and the members of the Commission had
reviewed the overall master plan for the park. On east side another potential site existed for an alternate location
for the skate park. He added the opinion that parking did not represent a major issue since many of the users
arrived by skateboard and commented that the additional 52 spaces to be added by the Boys &Girls Club would
help this situation as well.
Councilman Archambault clarified that his concern had to do with users of the tennis and soccer fields and the
presence of the skateboarders and possible safety issues associated.with the added traffic and the skateboard
riders going through that area. Mr. Mayer indicated that this was part of the reason Staff and the members of the
Commission were considering placing the skateboard facility possibly on the east side of the park and indicated
his intention to pursue this issue.
Councilman Melendez asked whether Mr. Pickering intended to take the process "department by department."
Mr. Pickering responded that he did not and added that when budget justification meetings were held, in-depth
meetings with each of the Departments to ensure that what was presented to the Council was as "lean" as
possible. He stated that this evening he wanted to concentrate more on the capital projects, the larger items, so
that the Council could indicate support or opposition to these large dollar items. He added that minor details
included in the budget had been reduced about as far as they could be.
__ Councilman Melendez stated the opinion that it would be appropriate for the Council to "dedicate themselves"
to each department and pose questions to representatives from each of those departments. He added that he had
a lot of questions that he would like answers to. Mr. Pickering responded that Staff would be happy to respond
to any and all questions from the Council and if members would like to categorize them by department,that was
fine as well.
Mayor Beydler encouraged the members of the Council to provide input relative to this issue and suggested they
1160, begin with issues related to the Town Council. •
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Vice Mayor Ralphe posed a question related to expenses associated with continuing education ($4,000);
communication ($1,250) and travel ($1,250). She commented on the fact that last year the Council decided to
"tighten up" on these kinds of expenses and said she would like to do that this year as well, starting with the
Council. She stated that there might be a need for some education/travel expenses but expressed the opinion
that this was not necessary at the Council level.
Mr. Pickering responded to her comments. He explained that the budget contained funding for two Council
planning retreats and noted the success that had been realized at the past retreat. He commented on the fact,
however, that the last retreat was free and did not have to be paid for out of Town funds. He indicated that he
would not expect this to be the case the next time around and therefore monies should be set aside for this
purpose. He recommended that the Council approve the funding for the planning sessions. He added that the
other two figures for communication and travel were taken from last year's budget and the amounts remained
consistent. He reported that to date approximately $500 remained in the education account and approximately
$700 out of$1500 had been spent on communication and travel. He explained that travel expenses included
mileage reimbursement, hotel expenses, and said that communications supplies included flowers sent by the
Council to memorial services, business cards, letterhead reimbursement and similar items/situations. He
recommended that the funding remain in place for times of need. Vice Mayor Ralphe thanked Mr. Pickering for
the explanations.
Vice Mayor Ralphe MOVED that the $1,250 communications funding as well as the $1,250 travel funding be
eliminated from the proposed tentative budget.
The Vice Mayor commented on the fact that the $1250 communications funding was not included as part of the
2000-2001 budget. She added that travel should be eliminated as well and noted that the next League
Conference was going to be held in Phoenix and the funding was not necessary. She added that although the
cuts were minor, she expressed that cuts should be made at the Council level.
Councilwoman Nicola SECONDED the motion.
In response to a request from Councilmember Archambault, Mr. Pickering reiterated what the funds•were used
for and again recommended that the Council allow the funding to remain in place. He added that the Town had
traditionally sent flowers to various memorial services and asked that this not be eliminated.
In response to a question from Councilwoman Stevens, Mr. Pickering reported that approximately $900 was
spent on communications last year. Councilwoman Stevens stated the opinion that the funding should not be
eliminated and added that perhaps the amount could simply be reduced.
Councilwoman Stevens MOVED to amend the motion to reduce the amount of communications funding from
$1,250 to $1,000 and to reduce the amount of travel funding from $1,250 to $250.00. Councilman Kavanagh
SECONDED the motion.
Councilwoman Nicola asked whether it was going to be the Council's practice to go line by line throughout the
entire budget and questioned whether items such as this should be left up to the discretion of the Town Manager.
In response to a question from Councilman Archambault on how much was spent last year for travel, Mr.
Pickering reported that a total of$1200 was spent. He noted that the last Council spent approximately $1200 to
attend the National League of Cities conference. Mr. Pickering added that the Council had been extremely
frugal in this area and stated the opinion that the funds were justified and should be allowed to remain in place.
He agreed with Councilwoman Nicola's comment that micro-managing individual line items should not be the
direction this Council takes. Mayor Beydler agreed with Councilwoman Nicola and Mr. Pickering's comments
regarding this issue.
Councilwoman Stevens WITHDREW her amendment to the motion and Councilman Kavanagh removed his
second to the amended motion.
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Vice Mayor Ralphe WITHDREW her motion to eliminate communication and travel funding from the budget.
Councilwoman Nicola withdrew her second to the motion.
The Vice Mayor WITHDREW her motion in an effort to show that she was listening to what was being said.
Mayor Beydler stressed the importance of not getting "stuck" on the small items and looking at the big picture.
The Council would now move on to Administration.
Councilman Kavanagh noted that the Town had traditionally allocated monies for non-profit organizations and
commented on the lack of funding for that in the current budget. He asked what funding requests had been
received from non-profit organizations, particularly from the Senior Center and the Boys & Girls Club. He
commented on the fact that these organizations provided services that otherwise would need to be provided by
government agencies. He stated the opinion that they saved the Town a lot of money and he had no problem
meeting their typically reasonable funding requests.
Mr. Pickering reported that only two requests were received this year, one in the amount of$60,000 from the
Boys & Girls Club and another, in the amount of$50,000 submitted by the Senior Center. He commented on
the fact that achieving financial stability was the Town's ultimate goal that had been identified and he noted that
more money was added to the fund balance in order to achieve this goal.
Wally Nichols, representing the Boys & Girls Club, noted that the organization submitted a capital funding
request in the amount of$83,000 and an operating cost funding request in the amount of$60,000.
Councilman Kavanagh MOVED to amend the proposed tentative budget to include funding for the Senior
Center in the amount of$50,000 and $83,000 in capital funding and $60,000 in operating cost funding for the
Boys&Girls Club. Councilman Melendez SECONDED the motion.
Councilman Kavanagh reiterated the important services the organizations carried out on a daily basis and
emphasized that a strong need existed for these services. He also commented on the Boys & Girls Club's efforts
to raise money to build a youth center and said that this was something the Town of Fountain Hills should have
done a long time ago. He emphasized the importance of assisting these organizations that provided so much to
the entire community of Fountain Hills.
•
In response to a request from the Mayor to share his philosophy regarding this particular issue, Mr. Pickering
stated that the Town had to live within its means; however, if a majority of the Council wished to fund those two
requests, he had no problem doing so. He asked that he be provided the opportunity to go back and identify
areas that would need to be cut in order to provide the necessary funding and asked that a decision not be made
until those areas has been identified. He added that cuts might have to be made in the Police Department or Fire
Department's budgets and the Council would have to decide after reviewing the suggested cuts, exactly how
they wanted to proceed. He said that he believed that the cap was appropriate and should remain in place and
spoke in opposition to decreasing the reserve amount. He agreed that once a decision was made regarding the
Police Department, additional monies might be available but noted that this information was not yet known and
all of the information regarding cuts should be reviewed prior to rendering a decision.
Mr. Pickering recommended that the Council make a motion directing him to research this area and to bring
back recommendations for the Council to review prior to rendering a decision. He stated the opinion that
passage or rejection of Proposition 400 would not have any direct impact but added that for the long term, the
Town was going to ultimately be more financially stable with a property tax versus the volatility of a sales tax.
He added that if a property tax were available every year, a comfort level would be provided that the sales tax
might not be able to provide.
Councilwoman Stevens said that she would not be supporting this issue this evening and indicated that she
would like to see what the results of the election were and what the Justice Department's decision was before
rendering a decision. She said that based on the results of those two issues, she would also like the Town
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Manager to review areas and make suggestions on possible cuts that could be made to compensate for funding
the non-profit organizations.
Councilman Kavanagh commented that he understood, not voting for this issue at the current time did not
indicate a lack of support for the Boys &Girls Club and for the Senior Center. He added that in looking through
the budget, he believed that there were probably 40 or 50 projects and not all of them had to get done. He stated
that if he were to prioritize the ones that didn't have to get done immediately, the Boys & Girls Club or Senior
Center would be at the top of the list of projects to go forward. He added that nothing would affect his support
for funding these organizations but he could understand why the members of the Council might want to delay
action pending the receipt of additional information and the results of the election and Justice Department
decision.
Mayor Beydler reiterated that Councilman Kavanagh supported the $18.6 cap and carrying forward the fund
balance. He clarified that Councilman Kavanagh wanted to prioritize programs and initiatives in an effort to
identify funding for the two non-profit organizations. Councilman Kavanagh agreed with the Mayor's
summation.
Councilwoman Nicola indicated that she would not support the motion in its current form but added that she did
support directing the Town Manager to research this area and present recommendations at a future meeting. She
agreed that both organizations and the responsibilities they carried out were very important to the Town and
added that she would like to see what could be done to support them in the future.
Mayor Beydler commented on the fact that some•of the reoccurring needs that existed very quickly became
"annual contributions" and said that he had been advised that to use the General Fund as the source to provide
the annual contributions might not be a long-term solution. He cited as an example the Tourism Council and
asked whether it was worth researching alternative revenue sources for these worthy organizations for seniors
and youths so that the potential of generating reoccurring revenue to fund the organizations could be realized as
opposed to simply "dipping into the General Fund."
Mr. Pickering strongly recommended that the Mayor's suggestion be followed for these types of items and noted
that every year organizations such as these came before the Council, whether tourism, senior, or youth
organizations, and stated the opinion that in order to solve the problem, specific revenue sources needed to be
identified and developed. Mr. Pickering added that if tourism wanted to be funded, for example, and the Town
wanted to fund it, this could be done through the implementation and dedication of a hotel tax or a bed and
breakfast tax.
John O'Flynn, Sullivan Drive
Mr. O'Flynn,President of the Senior Services of Fountain Hills, confirmed the organization's strong need for the
$50,000 in funding. He pointed out that last year's request was reduced from $50,000 to $40,000 and the
organization finally received only$10,000. He noted significant cuts that organization had to make based on the
lack of Town assistance and discussed difficulties associated with meeting salaries and providing benefits to the
organization's staff. He discussed major fund raising efforts initiated by the organization and reported that to
date they had raised $55,000, a lot of which came from individual contributions. He added that major funding
was received from the Sunridge Foundation as well as the Wallace Foundation in Scottsdale and noted that two
weeks ago $8,500 was received from another organization. He explained that the funding helped cover the cost
of the home delivered meals subsidy.
Mr. O'Flynn discussed additional fund raising activities initiated by the organization; current staffing and their
exceptional skills; and the significant need that existed for funding from Fountain Hills. He announced that this
week was National Senior Center Appreciation Week and commented on the appropriateness of the timing.
Councilman Kavanagh commented on the grants and donations that were generated by both the Boys & Girls
Club and the Senior Services organization and stated the opinion that the benefits they provided far outweighed
their funding requests.
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Nancy Olson, Director of Senior Services of Fountain Hills
Ms. Olson also announced that May was Older Americans'Month and agreed that the timing was perfect for this
issue to be coming forward. She noted that the center offered opportunities for socialization, education
information, and referrals that seniors needed. She said that although they were providing all of these services,
there was always room for improvement and invited the members of the Council to visit their facility.
Marti LeMieux Director of the Home Delivered Meals Program
Ms. LeMieux addressed the Council and noted that a year ago, there were between 15 and 20 clients taking
advantage of this wonderful service that was provided by approximately 60 volunteers. She reported that as the
year went on, the client list grew to between 25 and 30, too many people for one team of two to deliver to. She
said that at the end of October, she placed an article in the paper requesting more volunteers, approximately 60
were needed, and reported that by the end of December they had another 60 volunteers in place for a total of
120. She noted that the volunteers and the clients were not all seniors and/or disabled and that they responded to
needs within the community. She reported that through April of this year, they delivered an additional 463
meals over the number served last year and added that they did not see this need decreasing. She thanked the
Council for their past support and urged them to approve the funding request for the upcoming fiscal year.
Wally Nichols, Chairman of the Advisory Commission for the Fountain Hills'Boys&Girls Club. •
Mr. Nichols discussed the many benefits that the organization had provided to the youths of Fountain Hills over
the last seven years (over 15,000 youths have been served). He reported that the organization's after school
program had increased by 110% over the previous year and added that by the time their new facility opened its
doors in June of 2004, over 1600 youths would be served,equating to one out of every two youths in Fountain
Hills. He said that they planned to triple the hours served on a daily•basis and would be the number one youth
serving agency in Fountain Hills. He reiterated the organization's funding capital and operating fund requests
and urged the Council not to reduce or deny their funding requests. He also commented on the fact that J.D.
Hayworth was very impressed with the Fountain Hills' facility and had included in his budget request a grant in
the amount of$500,000 for Fountain Hills. He reported that the grant was reduced but announced that the Club
received$200,000 in cash and Mr. Hayworth still intended to go back to the Appropriations Committee this year
and request an additional $300,000. He commented on previous discussions relative to identifying funding
sources for organizations such as this and said that one was already in place. He discussed the passage of
Proposition 202 for the Indian Community and noted that the Fort McDowell Indian Community had monies
sitting in accounts that they had to give back to towns that were adjacent to their properties. He said that the
Town should be pursuing those funds, talking to the members of the Community, in an effort to get funds
released that could then be used as a continuing revenue source for organizations such as the Boys &Girls Club
and the Senior Center.
In response to a request from Councilman Kavanagh, Mr. Pickering reported that conversations had taken place
between Town Staff and representatives of the Fort McDowell Indian Community, specifically, the President of
the Indian Community, relative to this issue. He noted that to date there were no formal procedures in place
dealing with this matter and a time had been scheduled to meet and pursue this matter in an effort to develop a
process so that the Town could receive its share of the monies. He added that Staff had not contacted
representatives of the other Indian Community as yet, but planned to do so in the near future.
Mayor Beydler commented on a discussion he had last Friday with Dr. Pattea relative to this issue and said that
Dr. Pattea had reported that the good news was that they had agreed to allocate 12%, which was the maximum
allowed by Proposition 202. He added that the tribal membership was meeting within the next 30 days to
finalize how they were going to distribute the money and for what purposes. He noted that Dr. Pattea said that
in July the tribe would be interested in sitting down with the Town of Fountain Hills and sharing with them what
the actual dollars will amount to and what the appropriate uses for those dollars will be. He reported that
estimates range anywhere from$40,000 to$400,000.
John Hersey, Calle del Prado
Mr. Hersey urged the Council to look at the monies that had been spent to support youth and find a way to
support seniors, youths (the Boys & Girls Club), and the Fountain Hills Community Theater, a non-profit
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organization that greatly benefits the community and deserves the same type of consideration. He stressed the
fact that the benefits equal the support that is given to these organizations and emphasized the importance of
identifying funding sources and ensuring that funding is provided on a consistent basis. He added that these are
extremely important areas and should be given priority when it comes to funding.
In response to a request from the Mayor, Councilman Kavanagh's motion was re-read as follows:
Councilmember Kavanagh MOVED to amend the proposed tentative budget to include funding for the Senior
Center in the amount of$50,000 and $83,000 in capital funding and $60,000 in operating cost funding for the
Boys & Girls Club. Councilman Melendez SECONDED the motion. MOTION FAILED (5 to 2 Vote with
Councilman Kavanagh and Melendez voting Aye).
Councilman Kavanagh stated that normally it took about three meetings for the Council to review/approve the
budget and stated the opinion that they would not be finishing up the budget this evening. He added that at a
certain point people begin to tire and suggested that before that happened,the Council set the time to adjourn the
meeting at 9:30 p.m. The Council could continue discussions at the next meeting. Discussion ensued among
the members of the Council and it was the general consensus that the meeting adjourn at 10:00 p.m.
Mayor Beydler commented on his previous vote and said that he believed that funding sources should be
identified for both senior and youth organizations. He added that he would also like to talk about the Tourism
Council and applauded the Town Manager's efforts to hire an Economic Development Coordinator.
In response to a question from the Mayor, Mr. Pickering noted that the Tourism Council originally requested
almost $80,000 and Staff was recommending an allocation in the amount of$38,000, $30,000 of which would
go to the Scottsdale Visitors' Bureau to help Fountain Hills with their advertising efforts to bring tourism into
the area. •
Mayor Beydler said that he had a little problem with the model being developed and commented on the fact that
they were approving hotels and creating a destination venue and then moving forward with the Downtown
Coordinator. He added that he would like to see that not just be limited to "downtown" but rather be for the
"entire town" and requested that the Town Manager look into ways in which this position could address the
entire Town as opposed to just focusing on one specific geographic area. He stated the opinion that if they
moved in that direction, they were not providing any "muscle" for the Tourism Council for Fountain Hills. He
added that the Chamber had developed this and basically spun this off and now they were looking for ways to
put some"muscle" behind getting the advertisements: He said he was not recommending that they use General
Fund dollars to make up that difference but directed the Town Manager to bring back some recommendations as
to revenue sources, such as a bed tax adjustment, that might provide the revenue stream. He emphasized the
importance of identifying a stable,long-term revenue source for funding.
Mr. Pickering agreed that if tourism was going to be funded and the Town was going to support doing this, a
dedicated funding source must be identified and said he would be happy to perform that research in accordance
with direction from the members of the Town Council.
Councilman Archambault commented that he would like to see the Council give direction to Mr. Pickering and
Staff to look for the appropriate monies that they want to fund and said that the Senior Center and Boys &Girls
Club fall into that category. He stated the opinion that there had never been enough for the youths of Fountain
Hills to do in this Town and stressed the importance of ensuring that a sufficient amount of activities were in
place to positively impact the youths of the community. He added that instead of making a motion on this, he
believed they should direct the Town Manager to attempt to identify funding dollars for these organizations and
present recommendations to the Council at a later time.
Councilman Kavanagh emphasized that the money was there and it was just a matter of prioritizing what could
be done. He said that he did not want to increase the budget beyond the$18.6 cap.
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Councilwoman Stevens requested that Staff present the Council with a list of recommendations and associated
dollars and stressed the importance of developing a plan and a comprehensive list of priorities for the entire
Town.
Councilman Melendez referred to Page 56, Contract Services, and said mention was made of a $750
appropriation for a meeting and videotaping of the Council meetings, yet on Page 58 it stated $18,000. He said
if he multiplies 47 meetings by $750, he came up with a total of $35,000 and asked that the Town Manager
verify the numbers. Mr. Pickering said he intended to do so.
Mayor Beydler said they would move on to the area of Public Safety and Mr. Pickering reiterated his previous
comments relative to changes that would occur in this particular area. He added that this was an issue that
probably would be discussed in greater depth.
Councilman Archambault noted that they skipped over the Information Technology Department and asked
whether this item could be discussed. He noted that funding sources for additional software were included and
commented on the number of viruses that they had been experiencing through the Town's website. He asked
whether a software package was available to address this particular problem and whether funding existed to
purchase it. Mr. Pickering responded that Staff was in the process of purchasing just such a software package
and noted that it would help detect and prevent viruses.
Mayor Beydler declared a brief recess at 8:50 p.m. and the meeting resumed at 9:00 p.m.
Val Stasik,President of the Fountain,Hills Community Theater •
Ms. Stasik addressed the Council and discussed the many benefits that the Theater had on the entire community.
She noted that the Theater submitted an entire proposal package for review and consideration but was told to
come and retrieve it since there would be no funding for this item. She said that she is not going to speak on
major hardships this evening but rather wanted to express appreciation for the use of the facility and said that
they had had quite a year. She reported that they had $200,000 worth of volunteer labor and materials and
added that these figures will all be presented to the Council. She stressed the importance of spirit of community,
pride and volunteerism and noted the significant amount of volunteer activities and fund raising that occurred in
order to improve the quality of life. She noted that the Community Theater had grown into the finest theater in
the State and is a source of pride. She requested that the Council show that the Town still had a heart and spirit
and approve the originally requested funding in the amount of $26,000 and noted that all of the Theater's
reserves had been depleted in light of the new construction and they were desperately in need of the funding.
Beverly Belury, Calle del Prado
Ms. Belury also spoke regarding the Fountain Hills Community Theater and noted that they never did pick up
the Letter of Request for funding; it was still in the office. She commented on the activities of the Friends of the
Fountain Hills Community Theater and their great accomplishments and noted that 200 people had signed up to
help at the Theater. She urged the members of the Town Council to maintain this spirit of support and to look
for ways to generate funds to support this very worthwhile and beneficial facility. She commented on the
positive impacts of the Theater on the entire community and thanked the members of the Council for their
anticipated support.
Grace Jakubs, 16440 Aspen Drive
Ms. Jakubs stated the opinion that the Theater generated significant economic benefits for the Town of Fountain
Hills and drew people into the community. She noted sales tax revenues that were generated as a result of the
Theater and stated the opinion that the venue enhanced the quality of life in the community and as well as the
overall Town image. She requested that the Council support the Theater in their continuing efforts to positively
impact the entire community.
Frank Ferrara
Mr. Ferrara said that he lives on Glenbrook in Fountain Hills and although he was the Executive Director of the
Chamber of Commerce, he is speaking as a citizen and a "beggar." He added that he would also speak on an
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issue near and dear to the Chamber's heart, the Tourism Council that was put under the Community Center only
for convenience sake. He stated that the Tourism Council was a committee under the Chamber of Commerce
and was a "spin off' because there was a team grant available on a shared basis and the Chamber was not
eligible to apply and that was why they spun off on their own. He added that there were 13 people on the Board
of Directors. He discussed an in-depth presentation that recently took place relative to funding and the
organization's need to obtain$87,000. He said that one way or another they would obtain the monies and agreed
with Councilman Kavanagh's comments relative to the importance of prioritizing. He said that they decided not
to ask the Council for money last year and they were not requesting any this year. There was no funding request
from the Chamber of Commerce but they did want to request that the Community Theater be funded. He agreed
that large sums of monies could not be needlessly spent particularly during these tough economic times, but
stated that the $26,000 request for something as important as the Community Theater could not be denied. He
urged the Council to prioritize their funding requests and approve funding for the Theater.
Councilman Melendez recognized Councilman Archambault for the time and effort he had put into developing
the Community Theater and assisting Vice Mayor Ralphe and Councilman Melendez on developing/improving
Channel 11.
Councilman Kavanagh requested that Staff enclose the Community Theater's packet in with the Council's next
grouping of budget materials for review. Mr. Pickering indicated his intention .to provide the requested
materials.
The Mayor stated that the next area to be discussed was Law Enforcement/Public Safety. Councilman Melendez
recommended that this issue be continued to the next.session as recommended by the Town Manager. Mr.
Pickering agreed and reiterated that they were awaiting a decision from the Justice Department.
Councilman Archambault commented on a grant that was accepted earlier in the year from the State for a police
car and asked what the status was on the grant. Mr. Pickering advised that the grant was awarded but it was
later taken back based on the fact that the Town was "downsizing."
Mayor Beydler requested input from the Council relative to the Municipal Court issues. The Mayor said that he
had an opportunity to review a report for the last month and congratulated the Department on the significant
improvement they had made in terms of the number of cases being processed. He added that the numbers were
coming back up and commended them on their overall efforts.
The Mayor stated that they would move on to the Parks, Recreation and Community Center items.
In response to a question from Councilman Archambault relative to budgeting $15,000 for the Veterans of
Foreign Wars (VFW) to expend for a memorial in the park, Mr. Mayer advised that the funds would be spent
during the current fiscal year. Councilman Archambault commented that he was not sure whether plans for the
foundation/footing for the wall (the second stage of the project) had gone through the Building Department and
noted that if the plans were not approved this month, the funds could not be expended this fiscal year. Mr.
Pickering stated that Staff would follow up on this matter and advise the Council of the status of the plans and
the project.
Discussion ensued relative to Phase II improvements at Fountain Park and the fact that funding would come
from grants as well as one half million dollars from the General Fund; the importance of building up the fund
and ensure that a balance of at least a half million dollars was in place before any of the dollars were used;
interest generated as a result of the funds and the importance of planning for long-term projects; the fact that
10% of the General Fund should be dedicated to capital projects and be invested in the community; impact fees
and the fact that although the monies could be spent tomorrow on a number of projects included in the Master
Plan, the goal was to build up the fund to the half million dollar mark before spending it; the fact that the Parks
Department as well as.the Parks Commission had submitted a Capital,Improvement Plan which did not outline
where the funds would come from. It was Mr. Pickering's opinion that those decisions would be made on an •
annual basis; and the fact that one project was capable of utilizing all of the funds.
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Councilwoman Stevens said she understood the points discussed by Mr. Pickering but at the same time while the
Town was gaining interest on the half million dollars, General Fund monies were being used up. She stressed
the importance of striking a balance with monies that had been specifically allocated for parks and using
i446.„ General Fund monies for that purpose and people who need money from the General Fund. She asked whether
there was some sort of"medium point" they could arrive at regarding this issue.
Mr. Pickering stated the opinion that the responsibility of the Town lay in the services that it provided and noted
that they provided park amenities; they owned the parks and were responsible for replacing 20-year old
equipment. He added the opinion that these were higher priorities. He said that he was glad they had the
development funds but they would be gone and they were only budgeting 4.6%, less than 5% of the General
Fund, on capital projects and said this was way too low. He recommended that they do parks and streets and
begin putting monies away in the Capital Improvement Plan. He added that he empathized with the requests
that had been received but said they don't outweigh the need for capital in the future and noted that a large list
would be in place.
Additional discussion ensued relative to this issue and the five year Capital Improvement Plan and amounts
totaling over $21 million; the fact that the projects are outlined on Pages 141 and 142 of the budget; long-term
spending in 2007-08 for a performing arts building and an aquatics fitness center and a request from Vice Mayor
Ralphe for additional facts and figures relative to these important issues; the fact that items on the list were just
suggestions and ideas and would be revised/amended many times in the future before anything became a reality;
Councilman Kavanagh's preference that development fees be spent to free up some of the capital expenses with
General Revenue funds and his opinion that sufficient monies existed to fund the requested, worthwhile
projects; the fact that the public's priorities had not been properly identified and the importance of obtaining
input on this; and the fact that the skate park could be done at that price if a modular system could be used
although they were not sure whether a modular system would work.
Councilman Archambault cautioned.the Council that they had set an $18.6 million cap and if they were to take
development fees that were budgeted they would be raising that cap. Mr. Pickering agreed that this was true if
they were planning on spending the monies. Mr. Pickering also responded to a question relative to the Heritage
Grant and reported that $160,000 of it would go towards the playground equipment and the remaining amount
would go towards either the path or the ramadas. Councilman Archambault encouraged Staff to pursue
additional grants for capital projects.
Mayor Beydler stated that Councilman Kavanagh's comments relative to prioritizing projects were appropriate
and on target. He agreed with the importance of trying to build back cash reserves and enhance the financial
stability of the Town. He added that he supported having a rainy day fund to take care of emergency problems
and agreed that they needed to be cautious and conservative in their spending. He said they should be fiscally
responsible now and wait for the economy to turn around. He stated that he knew they wanted to "give" as
much as they could but questioned whether the timing was right and whether their first responsibility should be
to achieve fiscal solvency. He added that he would support a lot of different ways to "shift" monies around as'
long as the cash reserve remained in place and in line with what the Town Manager had recommended. He also
commented on the importance of maintaining a good bond rating and moving towards a positive outcome in the
Town's financial situation. He said that if they wanted to prioritize within the flexibility that they had allowed
themselves, then they needed to develop a.list of all the "wants," determine what they had to work with and what
the trade-offs were, and make decisions based on that information. He asked Mr. Pickering to provide the
Council with criteria and data relative to the amount of flexibility that actually existed and
recommendations/choices that could be made to satisfy the various requests that had been made.
Pete DeRose, 15723 Cactus Drive
Mr. DeRose commented on the ramadas and the fact that they would cost $209,000. He asked whether they
would be paid for by grants or "out of pocket." Mr. Pickering responded that $70,000 of that would be paid for
by grants. Mr. DeRose suggested that they consider trading one of those in to help the Boys & Girls Club. He
discussed the Town's bond issue and estimated that it was currently at 5 3/8ths and said that a ten-year treasury
note was now at 3.5%. He said that they should bring the bankers back and the next time they issued a bond
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there should be a "call provision" on it. He stated the opinion that the Town's bonds did not currently have this
provision.
In response to a question from the Mayor relative to Mr. DeRose's comments, Ms. Ghetti stated that the Town
was under a negative watch by Moody's and if the Town refinanced at this time she doubted they would get a
better interest rate. She suggested that this issue be looked at in approximately one year.
Dick Schmidt, 17319 Teal Drive
Mr. Schmidt, Chairman of the Parks and Recreation Commission, stated that the Town had an excellent
recreation programs and because of funding decreases, the number of citizens registered for program had
dramatically decreased and the number of programs offered decreased from 300 to 240. He requested that the
members of the Town Council meet with the members of the Commission to discuss the long-range master plan
for the parks and to discuss programs before finalizing the budget.
Councilwoman Nicola said that discussions had occurred relative to having joint meetings with the members of
the Parks and Recreation Commission and the School Board and other entities and said she wished they had
taken place before they reached this point in budget discussions. She added that it was unfortunate that they
were not aggressive enough in directing the Town Manager to set up the meetings and asked that they now
support the request and meet with the members of the Commission.
Mayor Beydler suggested that a joint Work Study Session with the members of the Parks and Recreation
Commission be scheduled and discussion ensued relative to holding such a meeting during early June or late
May. The Mayor suggested that the meeting take place in June,during the week of the 16th.
Mr. Pickering expressed the opinion that the Council was rushing into scheduling this meeting but stated that he
believed it was more of a long-term process. He added that they had a lot of decisions and input from the Parks
Commission and their capital projects list had been included in the materials. He agreed that they needed to
review the master plans but emphasized that they were long-term plans and he did not see a need to rush into
this at the current time. He added that plans to meet and discuss long term plans should be made with several of
the Town's Commissions but questioned whether now was the proper time to do so.
In response to a question from the Mayor as to whether or not Parks and Recreation had sensitive issues that
needed to be addressed, Mr. Pickering responded that he was not aware of any such items and all of the capital
items had been discussed. He noted that they had budgeted monies for their top four capital items. He added
that as far as programs were concerned, they didn't have the staff or the funding at this time to pursue that area
and said he would not recommend that they proceed with a program on which the Town was going to be losing
money.
Councilman Kavanagh expressed concerns relative to the number of programs that had been cut and requested
that he be provided additional information relative to this issue and whether other entities had picked up the
programs.
Mr. Kavanagh emphasized that they were talking about staff and hiring people and noted that the programs had
to be cut because parks staff was reduced and therefore recreational programs were reduced. He added that in
order to provide those programs, additional staff would be needed and the cycle would have to begin all over
again.
•
Councilwoman Stevens discussed the Parks and Recreation Development Fee monies and asked whether the
Council could decide to take$100,000 out of those monies for part of the park or the skate park, or would voting
on the $18.6 million budget prohibit them from doing that. Mr. Pickering responded that if the Council wanted
to increase the amount of capital that they were going to spend, they would have to increase the amount to$18.7
million in order to increase the total expenditures. He added, however, that instead of spending $500,000 of
General Fund monies, if they wanted to spend $400,000 of General Fund and $100,000 of Development Fees,
they would not have to make any changes. He said they could "mix and match" any way they wanted.
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Councilman Kavanagh stated the opinion that they could take care of some of the needs and concerns that had
surfaced this evening and keep the budget at the $18.6 million cap. He added that they were going to see
considerable savings in the law enforcement area and noted that there were some excess fund monies available
as well. He said that if those things did not occur, then they would have to obtain some public input on where
and how they visualized the development fees and questioned if they were not increasing taxes,but were tapping
into dedicated development fees that had been accumulating, whether that was something the citizens would
object to. He suggested that they wait and see how the numbers fell before any motions were made. He said
that he would like to just continue the motion to the next meeting when they would have additional facts upon
which to base their decisions.
Mayor Beydler commented on the monies that might be available from the neighboring Indian Communities and
noted that they still did not know how much money they were talking about. He said that suppose the best-case
scenario occurred and the Town receives $600,000 or$700,000, could those funds be spent. Mr. Pickering said
he was asked that question tonight and it was included in the budget under the Grants Division for$750,000 just
in case the monies were received.
Mr. Pickering also responded to comments made by Councilman Kavanagh and agreed that the $18.6 cap could
and should remain in place. He added that adjustments could be made within that dollar amount and requested
that the Council set the ceiling.
Mayor Beydler questioned what would happen if the Chamber came back and the Tourism Council wanted to
support a portion of the bed tax. Mr. Pickering said he did not view this as a problem.
Mayor Beydler stated that there was a motion on the floor for an $18.6 cap on the tentative preliminary budget
and called for the question. MOTION CARRIED UNANIMOUSLY.
AGENDA ITEM #10 - COUNCIL ASSESSMENT AND REVIEW OF THE MEETING TO IDENTIFY
PROCEDURAL STRENGTHS AND WEAKNESSES AND DISCUSS POSSIBLE IMPROVEMENTS
FOR FUTURE MEETINGS.
Councilwoman Stevens stressed the importance of enforcing the three-minute rule for speakers in order to
conduct the meetings in a timely,efficient and effective manner.
Councilman Kavanagh expressed the opinion that the speaker card system was not working and said that he
preferred the old way of doing this.
The Mayor stressed the importance of achieving a balance in this area.
Councilwoman Nicola said she would like to see them "fine tune" rather than do away with the speaker card
system and added that perhaps it would have been appropriate this evening, given the speakers and the nature of
the issue,to ask the speakers to indicate whether they required additional time.
AGENDA ITEM#11 - CALL TO THE PUBLIC:
There were no citizens remaining at the meeting who wished to speak at this time.
AGENDA ITEM #12 - SUMMARY OF COUNCIL REQUESTS REVIEWED BY THE TOWN
MANAGER.
Mr. Pickering said that all of the following items were due by the next Town Council Meeting to be held on
June 5,2003:
A request to look at the capital needs for the Desert Vista Park/ball field requirements; Councilwoman Nicola's
stipend was to be used to cover the cost of the St. Patrick Day and Halloween Special Event celebrations; Staff
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was to provide the Council with copies of the packet submitted by the Community Theater once it is received;
Staff was to look into encumbering memorial funding at the park and verifying that the funds were
available/able to be spent this fiscal year and were in place for next year; and Staff was to prepare recommended
Nor funding cuts for discussion and consideration.
Councilman Kavanagh said he would like the Council to receive more in-depth information on the reduction in
Parks and Recreation programs as well as opinions from Parks and Recreation relative to why the cuts occurred
and what could be done to reverse negative situations without spending a lot of money.
Councilman Archambault discussed the Senior Center and Boys & Girls Club funding and asked Mr. Pickering
to provide additional information relative to identifying funding for these two organizations.
Councilman Melendez said he also requested that the Town Manager check the numbers on videotaping the
meetings as well as changing the Capital Improvement Plan to Capital Improvement Goals.
Councilman Archambault said he was still not convinced that the washes were not included in the budget twice
and asked that this be verified. Mr. Pickering said he could verify the information at this time and only one
charge would go forward based on whether the Proposition passes.
Councilman Archambault asked that if the funds for the memorial had to be transferred to this budget, would
that increase the budget by$15,000. Mr. Pickering responded that Staff could work out the details on this issue.
AGENDA ITEM#13- ADJOURNMENT
Councilwoman Stevens MOVED that the Council adjourn and Councilman Melendez-SECONDED the motion,
which CARRIED UNANIMOUSLY. The meeting adjourned at 10:20 p.m.
TOW OU /THIN HILLS
By: r
W.J ichols, ayor
ATTEST AND
PREPARED BY:
AdeeNii
t(- /-
Bevelyn J. Be e own Clerk
CERTIFICATION
I hereby certify that the foregoing minutes are a true and correct copy of the minutes of the Regular Session held
b the Town Council of Fountain Hills'on the 15th day of May 2003. I further certify that the meeting was duly
called and that a quorum was present.
DATED this5th day of June 2003. j
Bevelyn J. Ben er, own Clerk
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