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HomeMy WebLinkAboutSPAC.2012.1010.Minutes TOWN OF FOUNTAIN HILLS MINUTES OF THE FOUNTAIN HILLS STRATEGIC PLANNING ADVISORY COMMISSION MEETING October 10,2012 AGENDA ITEM#1 —CALL TO ORDER Chair Nick DePorter called the meeting to order in Council Chambers at Town Hall at 4:06 p.m. AGENDA ITEM#2—ROLL CALL Present for roll call were the following members of the Strategic Planning Advisory Commission: Chair Nick DePorter, Vice Chair Audra Koester Thomas, and Commissioners Denise Atwood, Peter Bordow, and Alan Magazine; Commissioner Curt Dunham attended via teleconference; Youth Commissioner Sarah Traylor was present; and Commissioner Mike Dooley and was excused. Also present were Town Manager Ken Buchanan, Deputy Town Manager/Finance Director Julie Ghetti, and Recording Secretary Shaunna Williams. AGENDA ITEM#3—CALL TO THE PUBLIC No one appeared at the call to the public. AGENDA ITEM#4— CONSIDERATION OF APPROVING MEETING MINUTES OF SEPTEMBER 12, 2012 ID Vice Chair Koester Thomas MOVED to approve the September 12, 2012 meeting minutes and Commissioner Magazine SECONDED the motion,which CARRIED UNANIMOUSLY by those present. AGENDA ITEM#5—TOWN MANAGER'S UPDATE a. Strategic Plan Goals and Operational Priorities for FY12-13—Mr. Buchanan made a PowerPoint Presentation (copy attached) entitled Town Council/Staff Retreat Results. He pointed out that the Operational Plan and Council Goals and Initiatives for FY12-13 (copy attached) were adopted by the Council at their October 4 meeting and that they are included in the meeting packet,with staff assignments noted. Mr. Buchanan and Ms. Ghetti responded to questions from Commissioners by stating that the Emergency Operations Plan is being updated; that the Planning and Zoning Commission will discuss the sign code at their next meeting and that their recommendations will be taken to Council; that if a November 2013 bond election for Saguaro Blvd. passes, it would take at least six months for design and procurement, and the actual road construction would take approximately 120 days during the summer of 2014; that performance criteria are included in community contracts; that projected revenue from the Ellman project has been pushed into the future due to a slower start on development; that $15,000 was budgeted for vehicle maintenance for the Posse; and that the Council has elected not to move forward with franchise fees at this time. Discussion ensued about potential ways that SPAC can contribute in the immediate future toward to moving forward with economic development, which is Council's number two operational priority. The need to communicate the trajectory of the Town to the citizens was pointed out, as was the need for strong leadership to accomplish an economic development plan. During a further discussion of franchise fees, it was noted that franchise fees for use of public rights-of-way by for-profit companies are a standard practice in most communities; that a vote of the people is required to establish 11109 a franchise fee;and that franchise fees are typically passed along to customers. Page 1 of 3 In response to a question,Mr. Buchanan gave examples of how economic development has been achieved in other communities as the result of a push by a group of citizens. • AGENDA ITEM#6— QUARTERLY UPDATE ON TOWN FINANCES Ms. Ghetti gave a PowerPoint presentation (copy attached) entitled Quarterly Update to Strategic Planning Advisory Commission. She referenced the Quarterly Budget Report, September 2012 (copy attached) that was included in the meeting packet. AGENDA ITEM #7 — DISCUSSION REGARDING THE RESEARCH PROJECT "COMPETITIVE ADVANTAGES AND REGIONAL COLLABORATIVE OPPORTUNITIES FOR BUSINESS DEVELOPMENT IN THE TOWN OF FOUNTAIN HILLS," AS WELL AS POTENTIAL NEW PROJECTS WITH NEW VENTURE GROUP. Chair DePorter stated that gaps in the report on the health care project are being addressed by NVG. Chair DePorter reported that NVG has submitted a Scope of Work(copy attached) for a new project to inventory the town's current economic assets,i.e., existing businesses. Commissioners suggested the following edits to the proposed Scope of Work: • On page 4, paragraph 4, change the phrase, "...the type of space they own," to "....the type of space they occupy." • On page 6,in the third bullet under Final Report, define the word"compatibility." The Commission discussed Dr. Brooks' presentation at the Council Work Study Session on October 9 and noted that it appeared to have been positively received by the Council. The Commission further discussed potential • ways to bolster momentum toward economic development as result of Dr. Brooks' presentation. AGENDA ITEM #8 — ANNUAL REVIEW OF STRATEGIC PLAN/RECOMMENDED CHANGES TO STRATEGIC PLAN Chair DePorter stated that a memorandum to the Council (copy attached) had been drafted by Commissioner Dunham. Following discussion,the Commission agreed to the following editorial changes to the draft memorandum: • In paragraph 1, change, "There remain some overall concerns...," to, "There remain some significant concerns..." • At the end of the first sentence in paragraph 2,add the words,"such as road rehabilitation." Vice Chair Koester Thomas MOVED to approve the memo, as revised, for submission to the Council and Commissioner Atwood SECONDED the motion,which CARRIED UNANIMOUSLY by those present. AGENDA ITEM#9— SCHEDULE UPCOMING MEETINGS It was noted a joint meeting between the Town Council and SPAC has been scheduled for November 7, 2012 at 5:30 p.m. The SPAC meeting previously scheduled for December 5, 2012 at 4:00 p.m. was rescheduled to December 12, 2012 at 4:00 p.m. due to a conflict with a Town event. An additional SPAC meeting was scheduled for January 16, 2012 at 4:00 p.m. • Page 2 of 3 A r d s AGENDA ITEM#10— ADJOURN Vice Chair Koester Thomas MOVED to adjourn at 5:42 p.m. and Commissioner Atwood SECONDED the motion,which CARRIED UNANIMOUSLY by those present. Shaunna Williams, Recording Secretary Page 3 of 3 1 A L 10/10/2012 0 TOWN OF FOUNTAIN HILLS Town Council/Staff Retreat Results JET MNkl -4/ I 'z z n b 0 d/,�bdt�is�ryoo Held on August 23rd 2012 0 Mission, Vision , ,, & Values Were Re-affirmed _ R-f''''''-- it) ..44ikti .e!�?t4 J1.11,ANAl . r.... —. ,ce ill IN\rl' 3w11—S tsr.�v that is An° 0 10/10/2012 fi Mission • Town of Fountain Hills — The Mayor&Town Council are charged with serving the best interests of the community by providing for its safety and well-being; respecting its special, small-town character and quality of life; providing superior public services; sustaining the public trust through open and responsive government; and maintaining the stewardship and preservation of its financial and natural resources. .0,,CAINge Vision dN FAi Gi q 60 • Our Vision V Fountain Hills is a distinctive community designed to invigorate the body,mind and spirit and strives to: — Be stewards of this unique enclave,dedicated to preserving the environment and visual aesthetic and to living in balance with the Sonoran Desert; — Champion the diversity of experiences our residents bring to our community and rely on this depth of experience to innovatively address our challenges; — Be economically sustainable and anchor our vitality in an active, vibrant town core that serves us culturally,socially and economically; — Be civic-minded and friendly,taking responsibility for our Town's success by building partnerships and investing our talent and resources. 2 10/10/2012 Values $ roeZ., t 1 • Our Values — Civility — Civic Responsibility — Environmental Stewardship — Economic Vitality — Education, Learning and Culture — Maintain and Improve Community Infrastructure — Public Safety, Health and Welfare — Recreational Opportunities and Amenities C MN qi Oj �,A�ty, l :L r; O ' r that is Avst Financial 5 year Overview 3 10/10/2012T FY2013-2018 Projected General Fund Revenues and Expenditures s13.0 ........ ...._.. <la o u) sm.o 512.0 OLD FY12-l1 PY1A11 fY14-1S FY1S.16 FY16-1T FY17-1$ 1111111111OP(RATING EXPENDITURES —4—OPERATING REVENUE —10--W/ODIMAN PROPERTY a State Shared Revenue Summary (In millions) $8.0 $7.0 $6.0 $5.0 — — $4.0 — — $3.0 ii — — _ — _ FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 AActual /\Projected a 4 \ 1 1 10/10/2012 0 Local Sales Tax Revenue Summary (in millions) $9.0 -_ $8.0 — - $7.0 $6.0 1 1 1 1 _ $4.0 — -.. - _ II $3.0 — $2.0 _..-•—_--r—_— FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 . Actual / \Projected Permits,Licenses, Fees Revenue Summary (in millions) $2.0 $1.8 $1.5 __ $1.3 $1.0 — _ _- — _ $0.8 — — - $0.5 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 AActual AProjected 5 10/10/2012 GENERAL FUND REVENUE PROJECTIONS (includes Ellman property) STATE FISCAL YEAR SHARED LOCAL TOTAL GE SURPLUS/ (July to June) REVENUES REVENUES EXPENDITURES (SHORTFALL) 2012-13 $5,015,492 $8,590,520 $13,548,618 $57,394 2013-14 $5,087,656 $8,709,459 $13,789,577 $7,538 2014-15 $5,337,214 $8,935,459 $14,262,532 $10,141 2015-16 $5,292,056 $9,462,825 $14,729,033 $25,848 2016-17 $5,379,232 $9,940,342 $15,305,194 $14,380 2017-18 $5,522,668 $10,392,125 $15,907,954 $6,839 1101 GENERAL FUND REVENUE PROJECTIONS (excludes Ellman property) STATE FISCAL YEAR SHARED LOCAL TOTAL GF SURPLUS/ (July to June) REVENUES REVENUES EXPENDITURES (SHORTFALL) 2012-13 $5,015,492 $8,590,520 $13,548,618 $57,394 2013-14 $5,087,656 $8,709,459 $13,789,577 $7,538 2014-15 $5,337,214 $8,935,459 $14,262,532 $10,141 2015-16 $5,292,056 $9,342,825 $14,729,033 ($94,152) 2016-17 $5,379,232 $9,760,342 $15,305,194 ($165,621) 2017-18 $5,522,668 $10,092,125 $15,907,954 ($293,161) 6 10/10/2012 ,_ 0 Assumptions •Revenue projections are determined using both a trend analysis formula as well as a flat percentage increase(3%—4%) but are estimates •No change in distribution of State Shared revenues •Maintaining existing level of service •Inflation factor of 3% in departments except public safety contracts increase 4%in FY15 •The two lines represent revenue — one with development in the Ellman property(red)and one without the Ellman development(green) •No increase in staffing levels •Annual General Fund payment for Community Center is eliminated in FY15-16 •The projections presume development in the former State Trust land beginning in FY15-16, moderate increase (3%) annually in local economic activity 11110 OUTSTANDING BONDS Bond Purpose Date of Interest Date of Outstanding 1Type of Issue Bond Issue Rate Maturity Principal tip,- I - ;4. GO Refunding 6/1/2005 4.00 7/1/2019 $3,755,000 TOTAL $3,755,000 i Rev Mtn.Bonds 12/1/2001 4.70 7/1/2021 $400,000 sjT Rev Refunding 6/1/2005 4.15 7/1/2019 $4,230,000 ~3,. 11:3, 11, TOTAL $4,630,000 ' SA Eagle Mtn 7/12/2005 3.95 7/1/2021 $3,090,000 TOTAL $3,090,000 i,l 4r, <RAND TOTAL $11,475,000 Y i. r GO General Obligation Bonds "'ts,._. Rev Revenue Bonds SA Special Assessment Bonds 0 a 10/10/2012 . çA1N11 o "that is 01' Core Services Were Re -Affirmed Town of Fountain Hills Organization 45 Full Time Citizens of Fountain Hills 19 Part Time 64 Total Employees Mayor and Town Council 56.61(FTE) Executive Assistant Municipal Court Town Manager Town Attorney Judge -- - Community Development Services Services Administration Law Enforcement Streets/ Deputy Town Manager/ Parks Fleet Finance Director Recreation Engineering/GIS Human Resources/ Risk Management Community Planning/ Center Code Enforcement Economic Senior Development Building Safety Services Town Clerk Facilities 8 • y .t + 10/10/2012 PERSONNEL & BENEFITS $3,356,721 • No new staff positions • 64 Total Employees/56.61 Full Time Equivalent • Pay Plan includes 46 Positions; 47 Job Descriptions • 15%savings in health insurance premiums • 2.5%cost of living increase granted 7-1-12 Number of Town Employees Delivery of service to the i citizens of Fountain Hills is dependent upon the number II . . of employees who can ,„.,o . „r„ .,,,,. perform the services. vTAINy! O; v o�l � that is At`t Core Services Administration 9 10/10/2012 ADMINISTRATION DEPARTMENT Town Manager Kenneth W.Buchanan Executive Assistant Shaunna Williams Deputy Town Manager/ Town Clerk Human Resources Economic Development Finance Director Bev Bender Administrator/ Administrator Julie Ghetti Risk Manager (Vacant) Joan McIntosh Volunteer -_. Coordinator(.88) "Heather Ware Accounting Supervisor IT Coordinator Quinell Hui Mike Ciccarone 'CAR(5) Accounting Financial Cathy Whynot Clerk(.6) Services Tech "Sonia (.5) Kukkola *10 Moorman 'CSR(.5) Financial Robin Lehman Services Tech(.25) *Part Time IT Tech(.75) Beata Bogdan ADMINISTRATION DIVISIONS DIVISION NAME FTE'S FY13 BUDGET INCR/(DECREASE) PRIOR YR Town Manager 1.83 $940,491 $252,512 Information 1.75 $317,799 $56,902 Technology Town Clerk 1.0 $179,526 $(79,755) HR/Risk Mgmt 1.88 $415,624 $(30,445) Finance 3.55 $324,318 $9,360 Econ Development 0.5 $89,904 $(2,673) Legal Services .00 $317,360 $10,888 Sub-TOTAL 10.51 $2,585,022 $216,789 Economic Development Fund .5 Town Council .35 Legal(PSAC) .32 GRAND TOTAL 11.68 10 10/10/2012 ADMINISTRATION $2,485,022 - • 11.68 FTE's • CORE SERVICES: Town Manager, Town Attorney, Town Clerk, Finance Director, Human Resources Administrator — Information Technology,Economic Development,Budget,Finance, Banking,Asset Tracking, Licensing, Purchasing, Audit,Customer Service,Volunteer Program,Channel 11, Website. — Employee policies/procedures,employee benefits,payroll/compensation,Loss Control/Risk Management,Volunteer Program,Employee Relations. — Public Records Administration,elections,General Administration,Legislative Administration. — Business Attraction Initiative,BR&E,Downtown Initiative,Tourism Initiative. — SPAC Commission,Public Safety Advisory Commission,Municipal Property Corporation. ni ll n R AF Apt o )11 z . '. 'hat is Aes1 core Services Development Services • 11 10/10/2012 DEVELOPMENT SERVICES DEPARTMENT Director Paul Mood Executive Assistant Janice Baxter Streets Facilities/Environmental Chief Building Town Engineer Senior Planner Official Plans Randy Harrel Superintendent Supervisor Bob Rodgers / Examiner Ken Kurth Raymond Rees Jason Field Engineering Maintenance Tech. Code Inspector Traffic Signal Tech II George Waligora Enforcement Permit Tech Justin Weldy Jim Michalak Roy Jaffe Marilyn Grudier `Maintenance Tech(.5) GIS/CAD Operator Vacant Ken Valverde Fleet Mechanic/ Open Space Specialist 'Custodian(.75) Jeff Larson Mitch Arcola Streets Maint Tech `Custodian(.5) Greg Elco Juan Hernandez Streets Maint Tech Frank Germinaro Streets Maint Tech Vacant *Part Time DEVELOPMENT SERVICES $2,071,685 • 18.75 FTE's 1 • CORE SERVICES: — Planning—Planning&Zoning Commission, Board of Adjustment, General Plan,Strategic Plan, Downtown Vision Plan,Zoning/Subdivision Ordinances, Dark Skies Ordinance, Signs Ordinance, Public Art Ordinance, TUPs, SUPs,Administrative Permits — Building Safety—Building Permits, Building Inspections, Plan Review, — Code Enforcement—Safety Hazards,Abandoned Vehicles, Property Maintenance, Improperly Maintained Pools, Illegal Signage. — Engineering-Plan Review, Permitting, Engineering for ROWs,Traffic Control, Floodplains&Storm Drainage, Encroachment Permits, Utility Construction, Property Transactions easement review. 12 10/10/2012 J° s Development Services cont.... • Streets—General Roadway Maintenance, Fleet Vehicle Maintenance, Traffic Signals, Street Sweeping, Regulatory Signage, Median Landscape Maintenance, Emergency/Storm Response,Adopt-A-Street Program, Holiday Lighting. • CIP—capital improvement plan administration • GIS/GIS—Aerial Exhibits,As-Builts, Final Plats,Traffic Counts,Speed Limit Mapping,Trails Mapping,Traffic Accident Diagram Reporting, Sanitary Sewer District Atlas, Banners&Display Boards. • Facilities/Environmental—Building Maintenance for Town Hall, Community Cenetr, Library, Museum, Physical Plant, Fire Station#1&#2, Kiwanis Building,Community Theatre Building#1&#2. Environmental Programs for Storm Water,Wash Maintenance, Dam Maintenance,Air Quality,Solid Waste/Curbside Recycling, Energy Efficiency Programs. 111) DEVELOPMENT SERVICES DIVISIONS DIVISION NAME FTE'S FY13 BUDGET INCR/(DECREASE) PRIOR YR Engineering 1.7 $577,546 $76,355 Facilities 3.3 $850,578 $358,201 Planning 3.35 $205,353 $62,431 Building Safety 1.0 $204,952 $(29,735) Code Compliance 1.0 $102,586 $(23,265) Mapping&Graphics .8 $101,563 $27,208 TOTAL 11.15 $2,042,578 $471,195 CIP .85 Streets Fund 6.75 GRAND TOTAL 18.75 13 1 • 10/10/2012 AIN 4,, ss fri iN die .„ . tb.t Core Services Community Services COMMUNITY SERVICES DEPARTMENT ..1010111! Director Mark Mayer Executive Assistant Receptionist(.75) Nancy Walter Susan Phillips Receptionist(.25) *Dominick LaBate Recreation Senior Services Supervisor Supervisor Parks Supervisor Bryan Hughes Kelley Fonville Don Clark Community Center Community Center Parks Lead Chance Butterfield Events Operations Rec Rec Coordinator Coordinator Coordinator Anjelica Giardino Coordinator Rino Ghetti Bill Haughey Parks Lead Kathy Worrell Bo Cichuniec 'Operations Support Rec Assist PT Grounds Keeper Worker(.825) *Erik Lundin Ron Hoffman Eric Smyth HDM Activities Grounds Keeper Rec Assist PT Coordinator(.75) Coordinator(.58) 'Operations Support *Danielle Serrano *Nita Blose *Marti Lemieux Worker(.825) Wes Loyet Clay Vaske Grounds Keeper Rec Assist PT Phil McKenzie *Ronn Miller Senior Services Assistant(.35) *Lorilee Dunn Rec Assist PT *Jim Hamann *Part Time • • 14 10/10/2012 COMMUNITY SERVICES $2,233,838 • 21.18 FTE's • Core Services: Community Center Advisory Commission, McDowell Mountain Preservation Commission, Parks & Recreation Commission, Senior Services Advisory Commission. Parks Maintenance,Trails, Community Center, Botanical Garden, McDowell Mountain Preserve. Public Arts Program. Recreation program for Youth/Teens, Special Interest, Adult &Youth Sports. Senior Programs, Home Delivered Meals. Community/Special Events Planning. COMMUNITY SERVICES DIVISIONS DIVISION NAME FTE'S FY13 BUDGET INCR/(DECREASE) PRIOR YR Recreation 6.3 $473,494 $1,899 Parks 6.9 $1,071,483 $17,637 Community Center 4.3 $421,050 $(4,135) Operations Senior Activity 3.68 $267,811 $45,282 Center TOTAL 21.18 $2,233,838 $60,683 11) 15 10/10/2012 a _AN AINit, :w w. 9lj that is AO' Core Services Public Safety a LAW ENFORCEMENT $3,049,572 • 3.8 beats plus School Resource Officer • Increases to County benefits are passed on to the Town • Includes contract with County for animal control and jail fees • $15,000 for MCSO Posse for vehicle Maintenance • J 4 16 4 ` i 10/10/2012 0 LAW ENFORCEMENT DIVISIONS DIVISION NAME FTE'S FY13 BUDGET INCR/(DECREASE) PRIOR YR Administration .07 $22,396 $14,651 Animal Control .25 $65,324 $(1,074) Incarceration/ .0 $96,000 $0 Transport Patrol .0 $2,865,852 $136,473 TOTAL .32 $3,049,572 $150,050 ID FIRE & EMERGENCY MEDICAL $3,255,335 • Activities include fire suppression, emergency medical service, building safety and C.A.R.E. • Contract with Rural Metro through 2014 • Includes depreciation cost for fire engines 4iiii �w. ,...r re 0 17 10/10/2012 FIRE AND EMERGENCY DIVISIONS DIVISION NAME FTE'S FY13 BUDGET INCR/(DECREASE) PRIOR YR Fire Administration -0- $144,944 $2,312 Fire Safety -0- $149,872 $3,648 Fire Emergency -0- $1,378,543 $17,132 Medical Services Fire Suppression -0- $1,551,476 $49,731 C.A.R.E. -0- $30,500 $26,300 TOTAL -0- $3,255,335 $99,123 Municipal Court$402,933 frill` • 5 FTE • Core Services — Civil/Criminal Traffic Violations; Misdemeanor Offenses; Town Code/Ordinance Offenses; Trials, Hearings, Sentence Enforcement and Compliance; Orders of Protection and Harassment Injunctions, Teen Court. 18 1, • 10/10/2012 • 41, es MUNICIPAL COURT Presiding Judge Mitchell Eisenberg Court Administrator Pat Dunn Court Clerk Senior Court Clerk Court Clerk Robyn Becher Dawn Hernandez Nan Norton Town Council Retreat .•••-• 0 _____ ‘-• 17.• lhat is WI • Town Attorney/Town Prosecutor — Does the Town Council desire to revisit the positions currently outsourced? 19 10/10/2012 Town Attorney/Town Prosecutor cont Determination and consideration to revisit the "in-house" prosecutor and Town Attorney or stay with the present format. °';�" \s 'hat is eke"' 4/10 Work Week Schedule Was Not Changed ...o 20 • 10/10/2012 Work Week Schedule cont.... • Is there a continued desire to maintain the 4/10, four day a week schedule; a modified 9/80's where Town Hall is open 5 days a week; or straight 8s with Town Hall open five days a week. 1)\* Y.NM INIII Strategic Plan that`is AO' sA Process Re-affirmed 21 • 10/10/2012 Strategic Plan cont.... Strategic Plan • Council Goals—confirmation or revisit for modification. In particular, review of the current 2010 Strategic Plan, any possible changes or directions to the Strategic Planning Advisory Commission. • =Civility • =Environmental Stewardship • =Education/Learning/Culture • Recreational Opportunities/Amenities • Citizen Survey • =Civic Responsibility • =Economic Vitality • =Maintain/Improve Infrastructure J �`yT AIN\` i4 14.VIca 'hat is A.c.0 Emergency Operations Plan 22 % ; . 10/10/2012 Emergency Operations Plan cont.... • Emergency Operations Plan • Update of the Emergency Operations Plan; National Incident Management Systems Training(NIMS); ICS 100/ICS 700 Training for council/employees; Emergency Operations Center;Tabletop Exercise. • Emergency Management • Complete revisions of Emergency Operations Plan (EOP)with Maricopa County Emergency Management • Complete NIMS training for Staff • Conduct tabletop emergency exercise in 2013 ��TAIN41 . w w. Volunteer Program Was Re-Affirmed 23 10/10/2012 604 Volunteer Program cont.... 4 am The Town of Fountain Hills has had a Volunteer Program in some capacity for many years, although it has evolved in more recent years. The August 2, 2007 Town Council Action Form states "It is the Town's goal to develop an expanded program structured to benefit all departments and divisions of Town Hall. A Volunteer Coordinator will be crucial in developing this program and assisting the volunteers to become an integral part of the Town team." T AIV��i r ... `Volunteer Progr am am cons. ,,... • EVENTS and PROGRAMS coordinated by our Volunteer Coordinator: Other Volunteer Programs: • Give-A-Lift Adopt-A-Street • Mayor's Youth Council Art Walks • Volunteer Expo(in the fall) Commissions • Make A Difference Day(in the fall) Greening of Downtown • Trees and Trains(in December at CC) Save our Sculptures(SOS) • Volunteer Reception(in the spring) Community Ser.for H.S.Students Home Delivered Meals • There are many other volunteer opportunities that are not part of the Town's Volunteer Program: • C.A.R.E. • Library volunteers • Neighborhood watches • Student Mentors • Posse 24 ' 10/10/2012 0 -14 r Public Safety Chet is wti Funding Strategies Taken Under Advisement L Public Safety Funding cont.... Consideration to re-address the dedicated funding scenarios to adequately fund Public Safety and/or funding sources such as a Public Safety District which would require special Legislation. C 25 10/10/2012 y1AINf O'er ' -:f ( { AV Jail Alternatives No Further Discussion on Subject Jail Alternative cont.... Reconsideration and/or determination to change to an "in-house" jail. Building modifications required, building renovations and a lease cancellation with DPS is involved. 26 • • A. 10/10/2012 ‘`yTAIN4, c r. 3 %x— "yl�w on that is NO' Intergovernmental Relationships -J. Intergovernmental Relations =„A cont.... • Importance with maintaining a sound working relationship with the following and address any issues with any of the following: — Ft. McDowell — Salt River Pima-Maricopa — Maricopa County Regional Park — FH Unified School District — FH Sanitary District • — FH Chamber of Commerce — Fire Districts — Adjacent Cities/Towns/County 9 27 10/10/2012 yT AIN 4. that is M' Budget Process Budget Process cont.... Determine was not to use a Budget Committee in future for annual budget process. Further discussion was considered for the Town Manager to provide the Budget considerations to Town Council. 28 1 • 1 10/10/2012 -4N Psi "9p�q.__.-oro ghat iv i\citi Franchises Were not Further Given Consideration Franchises cont.... Consider further discussion regarding pursuing franchises with the three private investor-owned utilities in Fountain Hills operating within the Town's Rights-of-Way. • =Chaparral City Water Company • =Southwest Gas • =Cox Communications I ( 29 10/10/2012 o/ �z r. vmy Capital �hat�pr Improvement Program Revampment for a Balanced 10 Year CIP oNTA�Ny�l CIP _� = • Capital Improvement Program & Infrastructure Improvement Plan • Capital Improvement Plan(CIP): A multi-year planning document that is the product of a systematic evaluation of capital projects which serves as a guide for the construction of public facilities. • Infrastructure improvement Plan(IIP): A written plan that individually identifies the necessary public services that are to be subject to Development Fees and is incorporated into the Town's CIP. • Senate Bill 1525 requires that municipalities adopt an IIP to serve as the central document for the planning and imposition of development fees. • Projects identified in the IIP must be completed within 10 years(15 years for water/wastewater projects) or development fees paid may be subject to a refund. • Questions regarding Fountain Hill's IIP: • What projects will be eligible for development fees under SB 1525? • What projects will be completed within 10 years? • What funding source will be utilized for projects not fully funded by development fees? • Will enough development fees be collected to fund projects? • Is development fee funding of projects realistic? 30 10/10/2012 �T Div qi Development °�h�t it i\<\t Impact Fees Awaiting for the Update Study Development Impact Fees cont.... ` Address the required update of the Development Impact Fees due to the sweeping changes in municipal development fees laws, as well as the viability of DIFs as a revenue source and the underlying issue of the requirement for any capital project funded by DIFs to be built in 10 years. 31 10/10/2012 -1//'�.,r'Jra that is AO Sign Code t AIV Sign Code cont.... ==' Address the Sign Code Committee and Planning & Zoning recommended changes to the sign code. 32 10/10/20 1-2 (1 1 A.!N_ 1 0 .? ‘ 1,: ''',',-:---= ,-'-',,, )\V ' 44'' ' r011110 Ct'idillil/ \•.. .'i '... WI' •.0 • • '' R V‘ 11/1ha t i' m paveent p manageni - nt r progam - November d in se addres Plan to be N Ote.f.'a Town of Fountainf Hills ills Pavement Management '-- 7 7_ - .. ,. ,,- '7:` , ,,,,,.•,',..,''.i'''''.7*.' . - ' - litO,''.40:w, lrj4t.41.;1.7 'r-'.•,';,,''';',,,,:' --i ,'''.....,-..:::' ,, - , :,r,..,,,,,,,,,.."'••1, , - ,,,,-.. ,-77,,,- ,,, .. r ' 33 / 10/10/2012 Historical Streets Revenue & Road Maintenance 7.„ M, HURF* Total Road GF/CIP Fiscal Year Revenue Maintenance Contribution 2000 $1,012,184 $ 1,557,543 $ 1,269,100 2001 $1,061,521 $ 1,281,528 $ 771,700 2002 $1,254,816 $ 968,745 $ 588,100 2003 $1,310,997 $ 306,356 $ 2004 $1,400,448 $ 540,428 $ 2005 $1,471,032 $ 595,289 $ 2006 $1,574,453 $ 548,074 $ 500,000 2007 $1,750,051 $ 1,171,728 $ 2008 $1,682,055 $ 721,183 $ 721,183 2009 $1,468,335 $ 637,905 $ 637,905 2010 $1,391,100 $ 420,883 $ 420,883 2011 $1,396,075 $ 325,074 $ 325,074 2012 $1,132,332 $ 200,000 $ 100,000 2013 $1,265,640 $ 200,000 $ 100,000 *Excludes in-lieu fee and miscellaneous revenues Pavement Maintenance Zones , otae 7- 4:2,64 2s.• n.o ! 307,,01 \ 174-10 sos,m p Oi. Fountain Hills Roadway Statistics • 390 lane miles • 3,460,000 SY of pavement surface _ e 47,c'; • 7 Pavement Maintenance Zones ' ‘•;.1 4 )1' < IP' • LEGEND t;t7'"" 0 ZOK • .......MN.MU, ttik.*qr P.M ROAD ralwat ROAD 07:47, 4#1 i • 6,4 41,0" ra*.' • Nod 34 10/10/2012 Pavement Management Practices Historical pavement management practices have consisted of crack sealing,surface seals and slurry seals by maintenance zone once every seven years and was funded through a combination of HURF,General Funds and CIP Funds. Current budget constraints allow only$200,000 annually for lane striping,curb,sidewalk and asphalt repairs. The January 2009 Pavement Management Report completed by Stantec Engineering suggested the need for$1.2 million annually for pavement management projects. It is estimated that$2.8 million annually will be required to provide asphalt mill&overlays to 20%of the Town's streets as well as slurry seal or surface seal treatments to the remaining streets. This is a long term pavement management program that will target one of seven pavement management zones each year and will replace the entire public street network over a 35 year period. This program is perpetual in nature but will not address reconstruction of the worst roads such as Saguaro Blvd. The lifespan of some existing streets will need to be stretched to 50+years in some areas under such a program. If a budget of approximately$1.1 million were available on an annual basis the Town could apply a slurry seal to the collector streets and a surface seal to residential streets in one zone annually. While this will provide some benefit to prolonging the lifespan of the streets it is not a long-term,sustainable program. Eventually,all asphalt needs to be removed and replaced. 110 Asphalt Conditions: Zones 1 — 7 Staff has conducted an assessment of Pavement Management Zones 1 -7 and identified various areas where the asphalt and subgrade is failing. These areas will need to be removed and replaced before any surface treatments can be effectively applied. The cost of the asphalt replacements are estimated at$782,000. Asphalt Replacement Costs Zone 1 $318,000 Zone 2 $218,000 Zone 3 $95,000 Zone 4 $12,000 Zone 5 $7,000 Zone 6 $22,000 Zone 7* $110,000 Total= $782,000 Excludes portions of Saguaro Blvd.,Fountain Hills Blvd., Palisades Blvd.and Shea Blvd.which may be included in a future bond. • 35 10/10/2012 Zone 1: Asphalt Replacement �� Town of Fountain Hills t��P ZONE 1 PAVEMENT MANAGEMENT AREA: `'i ASPHALT REPLACEMENT ' i� *L,,..'.c/opus .am} T'Notes: w . i` •73 pavement replacement locations • 'M, tic tfi ' ,-� •19000 square yards jaw •$380000 replacement cost lkir $y 410114 z*'*va, 4,,,...,,A,..,,4,' A i if • , /a7 #0,44"iiti �1%cN 1 4 Zone 1: Asphalt Replacement Examples Bayfield&Hamilton Sterling&Ibsen it 1 fie Valloroso&Armijo Del Cambre&Rosita 4 36 10/10/2012 Arterial Roadway Reconstruction In June of 2012 the Town contracted with RAMM Geotechnical Engineering to take core samples in order to determine the actual pavement thickness and subgrade profile for the following streets: 1. Saguaro Blvd. (Shea Blvd.to Fountain Hills Blvd.) 2. Palisades Blvd. (Saguaro Blvd.to Fountain Hills Blvd.) 3. Fountain Hills Blvd. (Palisades Blvd.to Middle School) The results of the geotechnical investigation showed that the pavement thickness and subgrade profile varied greatly on all of the streets tested. For Saguaro Blvd.the asphalt was typically between 1"and 2"thick over a 2"to 3"subgrade which is far less than normal standards. Due to the existing conditions of Saguaro Blvd.the RAMM report recommends full reconstruction for the entire length which consists of removing the top 10"of existing asphalt and subgrade,scarifying and compacting the exposed subgrade and placing a new pavement section of 4"of asphalt on 6"of base course. The report also recommends full reconstruction for the areas of Palisades Blvd.and Fountain Hills Blvd.with the exception of the area on Fountain Hills Blvd. near the Ashbrook Wash which was reconstructed with a wash crossing project in 1996. Arterial Roadway Reconstruction $8.2 million Saguaro Blvd. Road Bond November of 2013 The estimate for Saguaro Blvd. reconstruction includes the following: • engineering design and construction oversight • asphalt/subgrade/curb removal and replacement • water valve&sewer manhole adjustments • striping and pavement markings • drainage Improvements(intersections of Palisades and Desert Canyon Golf Course areas) • modified three-way stop at Avenue of the Fountains(turn lane and pedestrian) •ADA sidewalk and ramp improvements(Federal requirement) All work would be coordinated with the Sanitary District,Chaparral City Water,SRP, SW Gas,Cox Communications,Century Link,etc. 37 10/10/2012 Saguaro Blvd. Drainage Improvements MN' The photographs below show Saguaro Blvd. near the Desert Canyon Golf Course. The inlets to various drainage structures on the west side of the street are undersized and do no allow for proper drainage.The Saguaro Blvd. Reconstruction estimate includes design and construction of proper sized drainage structures in this area to prevent standing water which is not only a hazard to motorists but accelerates deterioration of the asphalt and subgrade. rt, "K i. .. rq•• S I.z y October 2010 December 2011 4 Saguaro Blvd. Drainage Improvements 0 The photographs below show southbound Saguaro Blvd.from Palisades Blvd.to Parkview Ave.after a rainstorm in October of 2010. Due to the lack of storm drains in this area the water drains to a catch basin south of Parkview Avenue which then flows into Fountain Park. The Saguaro Blvd. Reconstruction estimate includes design and construction of proper drainage in this area to prevent standing water. } } ti a y_a�� Saguaro Blvd.:Palisades Blvd.to Parkview Ave. Saguaro Blvd.&Palisades Blvd., Intersection 4 38 .k . 4 . 10/10/2012 JyTaINy1 \�� % i P of ,r. Economic ihatism,„o Development Program High Priority Consensus Based Economic Development �Tnrn Implementation Plan (EV1) Downtown Tourism Business Initiative Initiative Attraction (EV3) (EV5) Initiative (EV 4) DEVELOPMENT: DEVELOPMENT: DEVELOPMENT Area Specific Plan -Promotion/ *54-Professional,Technical, Implementation Strategy Marketing New Events Scientific Services (Hyatt/Palma;Swaback Planning Businesses Plan;ULI Plan)Mixed -Website(s)/Electronic *52-Finance,Insurance, Used Development Media Businesses Zoning(Smart Growth -Funding *62-Health Care Principles);Development Incentives;Capital -Industry Retention&Expansion Wayfinding Plan Program Funding Plan -Website Enhancement Industry Retention&Expansion Program/Retail Attraction -Website/Electronic Media Stakeholders:Town of FH,SPAC,FH Chamber of Commerce,FH Business Alliance Ft.McDowell,FH Sanitary District,FH School District, Utilities,Developers,Commercial Property Owners,Commercial Real Estate Leasing Agents,Community Leaders • 39 10/10/2012 idiv 4 3/ 'fbat is Downtown Initiative .1.10 AIN di , • vp ( .it is 01' Tourism Initiative • 40 10/10/2012 Ary AIN 4-, . Near 7wir . lhat is Ac‘1' Business Attraction Initiative - lh ./fir Tuir . 'bat is Fountain Lake IGA High Priority r 41 10/10/2012 Jk'taI �ll Fountain Lake �'-`r *,1 ,hat is01. • Fountain Lake — Further discussion regarding the proposed intergovernmental agreement(IGA) for the FH Sanitary District to operate and manage the Fountain Lake. 410 Fire Station #2 hat 1,c‘, Project Priority Revisit 42 10/10/2012 J0AIN11j Fire Station #2 �., _��t4r 3 V -_ W b chat is 01' • Fire Station #2 Relocation Project — Site Determination consideration for revisiting the site of Fire Station #2. Discussion and reconsideration of the Land trade with MCO. =Original Site Disposition =Construction Project Funding Prioritized ��„ %IN,,ltl cn o z L r: O Community is „,,, ,,. „. ,... .sm Partnership Funding Policy k 43 10/10/2012 T Community Partnership aIN oar- z , Policy v /hat is my' • Policy Consideration to Review Partnerships: • Economic Development/Tourism $103,000 • Fountain Hills Community Theatre $72,240 • Fountain Hills Boys/Girls Club $80,000 • Food Bank $30,250 • MCSO Posse $15,000 • Senior Citizens, Inc. $15,000 • JumpStartBiz $4,500 ',C_ I Operational Priorities 4, i z • #1 Pavement Management 94that"—i5 tJ2 • #2 Economic Development Plan • #3 Fountain Lake IGA • #4 Community Partnership Funding Policy • #5 Fire Station #2 • #6 Town Prosecutor • #7 Volunteer Program -40 44 ♦ • ` 10/10/2012 Strategic Goals • z n • • Active Goal & Initiatives '''hat�a o.- — C3 Genuinely solicit and consider public and stakeholder feed sack as part of the decision-making process. — EV1 Develop a comprehensive economic development strategy for the Town's future and work with our partners to forward economic growth and awareness. — EV2 Develop and maintain a balanced, equitable,sustainable and local financing structure to support the Town core government services at desire service levels. — EV4 Promote retention,expansion and relocation of quality businesses. — 12 Lower the reliance on state revenue by developing a locally controlled, reliable funding source for infrastructure maintenance AIN 4rt Strategic Goals °'/� _ ' 0-41 \ • 1.7'• • Active Goal & Initiatives cont 'hat isMV" — CR7 Communicate the role fo local government and clearly de me the trade-offs between service levels and amenities and the associated costs so residents can make informed choices. — CR2 Discover, recognize and utilize the talents of our citizens and use these assets to address community needs. — CR3 Foster a culture of public service and volunteerism. — R2 Provide an interconnected, multi-use trail and bicycle system that promotes active living, physical activity,education and appreciation of our parks and natural resources. — 13 Maintain a current condition assessment of all roadways and sidewalks and prioritize and implement maintenance efforts to minimize costly reconstruction. • 45 10/10/2012 Strategic Goals %%-:````� z z that is Xtrl • Active Goal & Initiatives cont — C2 Support community events and activities that create opportunities to build community and friendship. — CR1 Foster an environment of accessible, responsive governance. — CR6 Evaluate customer satisfaction with Town services on a regular basis and implement appropriate service improvements. AIN111 " 4.977 Ltd z Y 5 dot is Asti A �l 46 • ! • OPERATIONAL PLAN COUNCIL PRIORITIES FOR FY12-13 (Established at Council/Staff Retreat on August 23, 2012) 1. Pavement Management Program 2. Economic Development Plan 3. Fountain Lake (IGA) 4. Community Partnership Funding Policy 5. Fire Station #2 6. Town Prosecutor • 7. Volunteer Program Page 1 of 5 y . , STRATEGIC PLAN 2010 COUNCIL GOALS AND INITIATIVES FOR FY12-13 (Established at Council Retreat on January 26, 2012) A. Active Goals and Initiatives C 3 Genuinely solicit and consider public and stakeholder feedback as part of the decision-making process. Ken • Conduct a statistically valid citizen survey, correlating to the previous statistically valid survey($35,000 in Town Manager budget) See also CR6 Ken,Julie • Staff to attend at least 12 meetings per year(one per month)with community organizations, HOA's,etc. (no fiscal impact, however, impact will be staff time) Ken • Utilize telephone technology to make calls to citizens to inform them of upcoming events, etc. Julie EV 1 Develop a comprehensive economic development strategy for the Town's future and work with our partners to forward economic growth and awareness. Ken • Review the economic development plan annually and recommend revisions as appropriate vat EV 2 Develop and maintain a balanced,equitable, sustainable and local financing structure to support the Town's core government services at desired service levels. Julie • Outreach to the community citizens regarding proposals that came from the November toolbox retreat; highlight individual proposals during the budget process; reemphasize sustainability Julie Page 2 of 5 4 I EV 4 Promote retention,expansion and relocation of quality businesses. Pending assignment • Expand upon the outreach efforts in one of the targeted industry sectors to encourage business locations which create new employment opportunities and increase daytime population • Utilize the trade area analysis to target recruitment efforts on those businesses/business sectors identified • Encourage the location of businesses along the Avenue that complement and support the existing business base (fiscal impact$42,000-$8,000 (or-19%)from the General Fund and $34,000(or-81%)from the Excise Tax Fund; a significant portion geographically falls within the downtown area (the retail,office and "Avenue" initiatives) 12 Lower the reliance on state revenues by developing a locally controlled, reliable funding source for infrastructure maintenance. Julie • Sell assets that have become expensive to maintain and have limited future value Julie, Mark, Paul CR 7 Communicate the role of local government and clearly define the trade-offs between service levels and amenities and the associated costs so residents can make informed choices. Ken • Continue Citizens Academy Mark cs, • Create a reader friendly budget report that citizens can understand Julie CR 2 Discover,recognize and utilize the talents of our citizens and use these assets to address community needs. CR3 Foster a culture of public service and volunteerism. Ken,Joan • Advertise with a Request For Proposals for specific need or skillset that a member of the community may have and want to offer services to the Town Ken,Joan • Foster a culture of public service and volunteerism through the annual Make a Difference Day Ken,Joan R 2 Provide an interconnected, multi-use trail and bicycle system that promotes active living, physical activity,education and appreciation of our parks and natural resources. Mark • Coordinate and promote activities with McDowell Mountain Regional Park Mark • Coordinate with Tourism Bureau to promote Town trails and bicycle system as part of active living, including a booth during the two fairs Mark • New flyers distributed to valley sports stores Mark • Promote FIT(Fountain Hills Interconnected Trails) Mark • Urban Trails Plan,create a flyer for distribution,coordinate with Tourism, create new Town webpage dedicated to healthy living,active lifestyles; utilize FIT logo to promote trails, signage to mark FIT stations Mark,Julie 13 Maintain a current condition assessment of all roadways and sidewalks and prioritize and implement maintenance efforts to minimize costly reconstruction. Paul 4 Page 3 of 5 • Evaluate the post mortem on bond with the public, prepare new strategy for recommendation Paul, Ken Julie C 2 Support community events and activities that create opportunities to build community and friendship. Mark • Do more events; network with promoters Mark,Tourism • Coordinate calendars with McDowell Mountain Regional Park and Tourism Mark,Tourism CR 1 Foster an environment of accessible, responsive governance. Ken • Appoint a formal Ombudsman (perhaps a retired judge so they are impartial) Ken CR 6 Evaluate customer satisfaction with Town services on a regular basis and implement appropriate service improvements. Ken • Statistically valid customer satisfaction survey($35,000 fiscal impact, using prior as a baseline);consider survey at least once every three years See also C3 Ken,Julie • Develop customer service performance measures utilizing the ICMA standards Ken,Julie Page 4 of 5 i • j i B. Inactive Goals and Initiatives (accomplished via alternative methods, abandoned or delayed) C 3 Genuinely solicit and consider public and stakeholder feedback as part of the decision-making process. EV 2 Develop and maintain a balanced,equitable, sustainable and local financing structure to support the Town's core government services at desired service levels. • Support Chaparral City Water with franchise election in Spring 2013 • Continue to work with partners and legislators on the creation of a Public Safety District • Consider a public safety fee on all property owners(similar to Paradise Valley) CR 7 Communicate the role of local government and clearly define the trade-offs between service levels and amenities and the associated costs so residents can make informed choices. • SPAC recommendation: "Create a sense of urgency regarding the importance of residents and businesses taking responsibility to financially participate in the Town's infrastructure maintenance and provision of basic services to protect home, land and property values." • Introduce the idea of a property fire fee to cover the cost of fire and EMS protection 19 Build a protected fund to finance the major periodic maintenance of community facilities. Other SPAC Recommendations and proposed initiatives(those not included in above) EV4 Promote retention,expansion and relocation of quality businesses. Move forward with strategy development for the two other target industry sectors for employment expansion: "health care and social assistance", and "finance and insurance". EV6 Identify a slate of economic development tools and strategies(including tax incentives, fee abatements, etc.)to stimulate economic growth. ELCS Encourage access to higher learning opportunities or the establishment of an educational or training campus within our community. Other Public Safety Ken • Propose bond issue for fire station Ken,Julie C Page 5 of 5 Quarterly Update to Strategic Planning Advisory Commission September 2012 ,. t.i o > Qt .. .. 4x4TAIN j. f I 4 till- Ile" z. . — o r .,.., "•, _ t fat is Prepared by: Julie A.Ghetti,MPA,CPA October io,zorz • SUMMARY -, 4 Single Family home permits this quarter (compared to 4 for all of last year) General Fund revenues are 8% higher than last fiscal year and expenditures are 2% less But retail and restaurant sales tax is less than the average of the past five year first quarters General Fund expenditures are less than available resources HURF revenues are 9% less than last fiscal year (in lieu fees) and expenditures are 27% less t. October io,zorz • 1 4 (: •' QUARTER ENDING 9/30/12 Current Year Revenues-All Funds of +/(-)from FUND FY2011-12 FY2012-13 Budget Budget Prior Year General Fund $2,678,367 $2,892,460 $3,399,554 85.1% 8.0% HURF $303,214 $276,171 $330,470 83.6% -8.9% Dev Fees $295 $28,399 $32,683 86.9% 9515.5% Special Revenue $145,811 $83,710 $441,138 19.0% -42.6% Downtown Development $67,661 $68,679 $73,890 92.9% 1.5% Debt Svc MPC $135,188 $129,345 $196,280 65.9% -4.3% Debt Svc GO $206,978 $10,522 $357,004 2.9% -94.9% CIP $88,315 $74,210 $1,798,000_ 4.1% -16.0% Grand Total All Funds $3,625,828 $3,563,496 $6,629,018 53.8% -I.7% October 10,2012 QUARTER ENDING 9/30/12 Current Year Expenditures-All Funds %of +/(-)from FUND FY2011-12 FY2012-13 Budget Budget Prior Year General Fund $2,885,542 $2,833,579 $3,387,155 83.7% -1.8% HURF $286,145 $206,894 $330,470 62.6% -27.7% Dev Fees $19,197 $21,069P $38,093 55.3% 0.0% Special Revenue $141,104°. $113,810 $449,313 25.3% -19.3% Economic Development $14,882 $28,907 $45,992 62.9% 94.2% Debt Svc MPC $10 $0 $269,175 0.0% -100.0% Debt Svc GO $1,000 $1,000 $356,006 0.3% 0.0% CIP $114,049 $29,998 $2,924,552 1.0% -73.7% Grand Total All Funds $3,461,929 $3,235,258 $7,800,755 41.5% -6.5% October 10,2012 2 •. 1 r 0 QUARTER ENDING 9/30/12 General Fund Montly Revenue Report-September 2012 +/(-)from Period %of Prior FY2011-12 FY2012-13 Budget Budget Year Local Sales Tax $1,307,037 $1,334,808 $1,678,770 79.5% 2.10 State Income Tax $474,463 $574,301 $564,960 101.7% 21.0% State Sales Tax $417,841 $434,133 $470,100 92.3% 3.9% Vehicle Lic/Fire Ins Tax $181,718 $186,390 $218,794 85.2% 2.6% Permits,Fees and Rentals $124,982 $217,745 $313,422 69.5% 74.2% Fines&Forfeitures $52,213 $50,962 $72,450 70.3% -2.4% Miscellaneous&Interest $20,038 $94,121 $29,954 314.2% 369.7% Period Total $2,578,293 $2,892,460 $3,348,450 86.4% 12.2% October 10,2012 ( QUARTER ENDING 9/30/12 Local Sales Tax Collections by Type (In millions) $i.o July-Sept Wholesale/Retail $0.9 $0.8 $0.7 $0.6 $0.5 --- Transp/Utii/Com $0.4 _. -.. ... _....._ __.. $0.3 ----__. -- Construction Ins/Real Estate other $0.2 ------ Restaurants/Bars ,' S_rvires $0.1 E _..-- �...I.__v ■FY09-10 FY10-11 ■FY11-12 11FY12-13 ■FY12-13 Budget October 10,2012 4 3 4 0 -44 Local Sales Tax July through September Retail Activity FY09 thru FY13 $1,000,000 $900,000 ------- ''. $800,000 ''.. $700,000 — - $600,000 I , , $500,000 I I $40O,000 I _ I $300,000 I ' -- I FY08-09 FY09-10 FY10-11 FY11-12 FY12-13 FY13 SYr Budget Average Decrease of 4%over prior year October io,zou Local Sales Tax July through September Restaurant/Bar Activity FY09 thru FY13 `` $1so,000 $130,000 $uo,000 I I $90,000 $70,000 $so,000 i m FY08-09 FY09-10 FY10-11 FY11-12 FY12-13 FY13 Budget SYr Avg Decrease of 3.6%over prior year October to,zoiz 4 I' i 11 • Local Sales Tax July through September Trans/Telecommunications Activity FY09 thru FY13 $500,000 $400,000 $300,000- $200,000 $100,000 FY08-09 FY09-10 FY10-11 FY11-12 FY12-13 FY13 5Yr Budget Average Increase of 3.8%over prior year w4° October 10,2012 Local Sales Tax July-September Construction Sales Tax Activity FY09 thru FY13 $500A00 $400,000 Decrease of 22%over prior year $300,000 $200,000 $100,000 $0 - , FY08-09 FY09-10 FY10-11 FYII-12 FY12-13 FY13Budget 5Yr Avg 50% of this revenue funds capital projects October 10,2012 r 5 t,13+, ti General Fund Expenditures by Department Quarter Ending September 30,2012 Maroc a row"council Adpf t G law AfrlOfi Enf«oament ':, Municipal court 4 . community Semmes Fie L Fmergenry Medd Servos ° Development li Berries Total$2.8M October 10,2012 4111 QUARTER ENDING 9/302 General Fund Montly Expenditure Report-September 2012 +/(-)from Jul-Sept Jul-Sept FY2012-13 %of Prior Actual FY12 Actual FY13 Budget Budget Year Mayor&Council $17,707 $20,432 $20,703 98.7% 15.4% Administration $507,703 $505,386 $646,255 78.2% -0.5% Municipal Court $94,370 $94,441 $100,733 93.8% 0.1% Development Services $322,412 $312,351 $510,644 61.2%, -3.1% Community Services $480,387 $417,456 $558,460 74.8% -13.1% Fire&Emergency Medical $753,926 $775,685 $813,834 95.3% 2.9% Law Enforcement $709,037 $707,828 $736,526 96.1% -0.2% Period Total $2,885,542 $2,833,579 $3.387,155' 83.7% -1.8% October 10,2012 6 •t P • • i'. 0 HIGHWAY USER REVENUE FUND (HURF) FYII-12 FY2012-13 YTD to Year End Actual Actual Budget Estimate State Shared Revenues $258,563 $288,149 87% $1,265,640 In Lieu Fees $39,639 $1,062 26% $50,240 Miscellaneous&Other $5,012 $1,960 131% $6,000 IIURF Expenditures by Program-Fiscal Quarter Ending 9/30/2012 Expenditures by Program FY2011-12 FY2012-13 FY2012-13 %of Actual Actual Budget Budget Administration $34,699 $47,110 $50,004 94.2% Adopt A Street $784 $723 $824 87.7% Legal Services $5,110 $2,244 $5,352 41.9% Open Space $70,288 $52,243 $74,911 69.7% Pavement Management $40,923 $30,298 $37,260 81.3% Street Signs $14,750 $12,300 $18,705 65.8% Street Sweeping $40,768 $34,306 $37,547 91.4% Traffic Management $22,927 $0 $24,089 0.0% Traffic Signals $39,425 $12,717 $50,174 25.3°/ Vehicle Maintenance $16,471 $15,555 $20,708 75.1% Grand Total I'IRE $286,145 $207,496 $319,575 64.9% f Capital Projects F and FYI1-12 FY2012-13 YTD to Year End Revenue Actual Actual Budget Estimate Construction Sales Tax $87,006 $70,724 236% $120,000 Grants $0 $12,337 3% $5,758,000 Interest&Miscellaneous $1,310 $13,649 191% $28,649 Transfers from Other $0 0% $1,299,000 Funds TOTAL $88,315 $96,710 4% $7,205,649 FY12-13 YID Fs timated Cos t to Project Number/Name Project Budget 9/30/2012 Complete in FY13 Complete E8504 AOTF MEDIAN&RIGHT- $1,792,000 $6,481 $1,792,000 0.4% F4012 LIBRARY EVENT CIRCLE $48,000 $19,999 $48,000 41.7% F4020 VOICE&DATA $25,000 $16,239 $25,000 65.0% P3008 FOUR PEAKS PARK $50,000 $44,350 $50,000 s8.7% P3024 URBAN TRAIL $50,000 $11,130 $50,000 22.3% S6005 SHEA BLVD WIDENING $3,944,679 $26,095 $3,944,679 0.7% S6053 FOUNTAIN HILLS BLVD $134,250 $56,770 $134,250 42.3% TotalFY12-13 Capital Projects $11,698,210 $181,064 $11,698.210 I 5% October 10,2012 0 7 4 I ter. Questions? Octoberio,zoiz �` Me 8 TOWN OF FOUNTAIN HILLS QUARTERLY BUDGET REPORT SEPTEMBER 2012 ArfAIN 44. 011 that ISO • 1 4 k > . ,ko cfp g. that is t General Fund j 2 • General Fund Revenues ‘Iror the fiscal quarter ending September 30, 2012, revenues were received at 85% of budgeted amounts but $214,093 more than the same time period last fiscal year(an increase of 8%). The increase is the result of three categories where revenues are higher than the previous year—the State income tax, State sales tax and miscellaneous revenues. Total General Fund revenues for this quarter are $2,892,460. FY11-12 FY2012-13 YTD to Year End Actual Actual Budget Estimate General Fund $2,678,367 $2,892,460 85% $13,598,215 TOWN OF FOUNTAIN HILLS The four revenues in the chart on the left represent PERIODENC)ING ES 87,5% of General Fund revenues, and as such, GENERAL FUND REVENEVENUES".•• provide key indicators of the Town's •overall economic condition and performance. Local sales tax collections have increased slightly with an local sales Tex approximate 3% increase over the same period last 1 T.. year(includes construction activity of which 50% is $10 transferred to the Capital Project Fund). State sales and income taxes are 13% higher than last year as Sate� ome Tt[ r, projected and vehicle license taxes are about 3% higher compared to last year(this revenue source is 1 derived from vehicle registrations). Overall, General Fund revenues are at 85% for the first __I quarter of the fiscal year. State Shared Revenues State Shared Revenues represent a distribution of the State income, sales and vehicle licenses taxes returned to the Town based on its population in relation to the total population of all incorporated cities and towns. The income tax funds are distributed from tax collections from two years prior to the fiscal year in which the Town receives the funds. Sales taxes are distributed to cities and towns three months after the actual sales activity occurs. These revenues are distributed monthly through a distribution from the State Treasurer's Office. The revenues from these categories total $1,194,824 which is $120,802 or 12% more than the same time period last year — the increase in revenue was anticipated based on optimistic projections by the Arizona League of Cities and Towns. FY11-12 FY2012-13 YTD to Year End Actual Actual Budget Estimate State Income Tax $474,463 $574,301 101.7% $2,259,840 State Sales Tax $417,841 $434,133 92.3% $1,880,400 Vehicle License Fees/ $181,718 $186,390 85.2% $758,400 Insurance Premium Tax C 3 a t. I Local Sales Tax(2.6%) The annual revenue for this category total $1,686,300 (including all funds), which is 86.6% of projections. Compared to the same time period as last year the total revenues are 13.4%lower. Retail: A retail sales tax of 2.6% is collected for the sale of all tangible personal property including grocery, clothing, home and garden, autos and other related retail activity. This revenue source is sensitive to changes in the economy and can fluctuate from one fiscal year to another. The revenues for this category total $706,453 which is 76.1% of projections;compared to last fiscal year revenues are up down 3.2%. Restaurants/Bars: Food and liquor sales are taxed at a rate of 2.6% in the Town. The revenues for this category total $114,540,which is 77.1%of projections; compared to last fiscal year revenues are down by 1.6%. Communication/Utilities/Transportation: Utilities such as Chaparral City Water, cellular telephone companies and Qwest are taxed at a rate of 2.6% in the Town as well as cellular phone charges. The revenues for this category total $395,906,which is 110.6%of what was anticipated; compared to last fiscal year revenues are up by 1.8%. Construction Contracting: This revenue is generated from the 2.6% tax on new home and business construction as well as improvements to real property. Like retail sales tax, this revenue source is considered to be volatile as it is strongly impacted by changes in the economy. The largest sources of revenues in this category come from residential homebuilders. The revenues for this category total $141,448,which is 235.8%of what was budgeted; compared to last fiscal year revenues are down by 18.7%. The Council has dedicated 50% of this revenue to the Capital Projects Fund for future appropriation. FY11-12 FY2012-13 YTD to Year End Actual Actual Budget Estimate Local Sales Tax $1,754,800 $1,334,800 79.5% $7,785,744 Local Sales Tax C Illecti'ns by Type Local sales tax makes up 46.1% of General Fund $1.0 July-Sept _ revenues; for the first quarter ending June 30, 2012 $0.9 """°"""'"°"" - collections were $1.6M for all funds ($1.3M in the sa.' General Fund). Retail and restaurant/bar activities s0.7 represent 47.7% of total collections; $0.6 telecommunications and utilities represent another $0.5 T,.,.p/UtwCan 23.5%. Construction revenues collected this fiscal s9.• quarter total $141 K,which is an 18.7% decrease over sa.3 Construction last fiscal year. Retail sales tax collections decreased ' In'IR l Est.t. Other $0.2 Restaurants/Ban by 3.2%over the same period last year;restaurant/bar $o.i Services 7 I$0.0 I I rig--1 collections are down 1.6% from the same period last .FY09-10 .FY10-11 .FYI1-12 .FY12-33 .EY12-13 Wdg.t year. 4 r► ' 0 • Building Permit Revenue 'evenues in this category include both commercial and residential permitting activity with the majority of evenues coming from residential activity. This fiscal quarter, revenues for this category total $20,933 or 20% of the annual budget. Housing permits issued for the fiscal period are 4 single family, 0 multi family and 0 commercial. Plan review fees have been submitted by the Ellman Group for the grading, paving and landscape preservation associated with the relocation of Fountain Hills Blvd. and future park area within the former State Trust Land area, however,there has been no further activity. FY11-12 FY2012-13 YTD to Year End Actual Actual Budget Estimate Building Permit Fees $13,152 $20,933 20% $84,650 Court Revenue This category summarizes several revenue funds collected by the court. The court generates various revenues through fines, sanctions and court orders. These fines include criminal, civil, Town code violations and diversion fees for defensive driving school attendees. Reimbursement fees for required background checks, incarceration costs, and Public Defender costs are also collected by the court and included in this category. This fiscal period, revenues for this category total $50,962 which is $1,251 (3%) less than last year's same fiscal period and 30%less than budgeted. FY11-12 FY2012-13 YTD to Year End Actual Actual Budget Estimate thirCourt Fines & Fees $52,213 $50,962 70.3% $289,800 License Revenue Revenues in this category include both business and animal licensing activity with the majority of revenues coming from business licenses. Current quarter revenues for these two categories total $29,925 or 74% of the fiscal period budget. FY11-12 FY2012-13 YTD to Year End Actual Actual Budget Estimate Business License Fees $21,688 $19,701 69% $114,679 Animal License Fees $11,147 $10,224 87% $47,365 • 5 I 4 A General Fund Expenditures The General Fund accounts for most of the day to day operations of the Town, including Police, Fire and As Emergency Medical Services, Development Services, Community Services, Court, Council and Administrative functions. At the end of the first fiscal quarter 83.7% of the period budget has been expended. FY2012-13 Expenditures by Category - General Fund Jul-Sept Jul - Sept FY2012-13 % of Actual FY12 Actual FY13 Budget Budget Salaries and Benefits $775,103 $774,145 $839,180 92.3% Supplies and Services $392,536 $254,069 $453,449 56.0% Contractual Services $1,699,930 $1,757,313 $1,867,632 94.1% Internal Services $5,613 $9,392 $51,137 18.4% Other $12,360 $38,659 $175,756 22.0% Grand Total all Funds $2,885,542 $2,833,579 $3,387,155 83.7% • Salaries and benefits represent one fourth (25%) of the total General Fund operating budget and accounts for all staff with the exception streets employees who are funded through a separate Highway User Revenue Fund (HURF) • Contractual services represents 56% of the General Fund budget and includes contracts for law enforcement (Maricopa County Sheriff's Office) and fire and emergency medical services (Rural Metro). The Town utilizes contracts for specialized or one-time services that do not require the addition of full time staff. • Services, Supplies and Utilities represents 14% of the total General Fund operating budget and includes items such as facility maintenance, utilities, office supplies, insurance, software, etc. These types of expenditures can be controlled to avoid expending more than revenues received. • Internal Services Charges are charged to the General Fund operating budget by department and transferred to other funds to provide funds for future scheduled replacement of vehicles and equipment. • Other includes transfers that are made at the end of the fiscal year from the General Fund (Community Center) to the Debt Service Fund for the annual bond repayment due in June ($193,500 annually) as well as contingency and other minor expenditures. Department summary: General Fund Montly Expenditure Report- September2012 +/(-) from Jul-Sept Jul- Sept FY2012-13 % of Prior Actual FY12 Actual FY13 Budget Budget Year Mayor& Council $17,707 $20,432 $20,703 98.7% 15.4% Administration $507,703 $505,386 $646,255 78.2% -0.5% Municipal Court $94,370 $94,441 $100,733 93.8% 0.1% Development Services $322,412 $312,351 $510,644 61.2% -3.1% Community Services $480,387 $417,456 $558,460 74.8% -13.1% Fire & Emergency Medical $753,926 $775,685 $813,834 95.3% 2.9% Law Enforcement $709,037 $707,828 $736,526 96.1% -0.2% Period Total $2,885,542 $2,833,579 $3,387,155 83.7% -1.8% 6 • • Law Enforcement represents 22% of the General Fund operating budget and includes the contract with Maricopa County Sheriff's Office as well as costs for jail incarcerate fees, which are costs for holding Cindividuals at the jails and billed by Maricopa County. The Town also has a contract with Maricopa County for animal control and shelter services that is included within the Law Enforcement budget. • Fire & Emergency Medical Services represents 24% of the General Fund operating budget and includes the contract with Rural Metro for fire and emergency medical services; the budget also includes expenditures for maintenance of the fleet which is Town owned, fire stations and equipment. • Development Services (15% of General Fund expenditures) includes programs such as public works, engineering,traffic and capital projects, open space maintenance, stormwater management, and facilities maintenance. Divisions included in Development Services are Planning, Zoning, Code Enforcement, Environmental, Facilities Maintenance, Building Safety, and Mapping& Graphics. • Community Services (17% of General Fund expenditures) includes the Town's park system (Fountain Park, Golden Eagle Park, Four Peaks Neighborhood Park, and Desert Vista Neighborhood Park), recreation programs for youth, adults and seniors. The Community Center serves the community as a meeting or special event location as well as daytime activities for Seniors. This department includes the cost of the annual debt service payment ($193,500) that is transferred to the Debt Service Fund each year to cover the semi-annual payments in December and June. • Administrative Services includes the Town Clerk, Town Manager, Finance, Human Resources, Volunteer Program, Economic Development, Information Technology and Customer Service and represents 19% of the General Fund operating budget. The department is responsible for business recruitment and retention, Town Manager activities, all licensing activity (business, animal, liquor), provides customer service, managing audits, public meetings, Channel 11, Town website, elections, Town Attorney and Town Prosecutor,budget and financial reporting, etc. • The Town Court and Mayor & Council budgets represent the balance of the General Fund operating expenditures (4%) General Fund Expenditures by Department Quarter EndingSeptember 30,2012 yor 6 Town Coumil ) is ers res FnbxmeM Muni.ipal Court f� . CanmuMy Serr es Fie 6 Fmeteenry Mead Smiled. 0.rebpmont '. Serviee Total$2.9M S 7 e i 3 Other Funds: Streets Excise Tax (Economic Development) Special Revenue (Grants) Development Fees Capital Projects OIN ,%—iewi. ab thatisAzW +.rrl 8 F Highway User Revenue Fund (HURF) - Streets FY11-12 FY2012-13 YTD to Year End %k" Actual Actual Budget Estimate State Shared Revenues $258,563 $288,149 87% $1,265,640 In Lieu Fees $39,639 $1,062 26% $50,240 Miscellaneous& Other $5,012 $1,960 131% $6,000 This fund supports most of the Town's street and traffic operations and is managed by the Development Services Department. The fund is primarily supported by the State Highway User Revenue Fund (96%) and from payments for construction in the rights of way (in lieu payments). HURF revenues are distributed partially on a population formula and partially on the county of origin for gasoline sales. There is a State constitutional restriction that these funds be used solely for street and highway purposes. First quarter revenues in the HURF fund are $291,171 which is 4% less than last fiscal year. The Town bills contractors when they make cuts in the Town's rights of way which has recovered $1,062 in lieu fees. Restitution fees are recovered from damage to Town property as a result of vehicle accidents and included in miscellaneous and other. HURF Expenditures by Program-Fiscal Quarter Ending 9/30/2012 Expenditures by Program FY2011-12 FY2012-13 FY2012-13 % of Actual Actual Budget Budget Administration $34,699 $47,110 $50,004 94.2% CAdopt A Street $784 $723 $824 87.7% Legal Services $5,110 $2,244 $5,352 41.9% Open Space $70,288 $52,243 $74,911 69.7% Pavement Management $40,923 $30,298 $37,260 81.3% Street Signs $14,750 $12,300 $18,705 65.8% Street Sweeping $40,768 $34,306 $37,547 91.4% Traffic Management $22,927 $0 $24,089 0.0% Traffic Signals $39,425 $12,717 $50,174 25.3% Vehicle Maintenance $16,471 $15,555 $20,708 75.1% Grand Total HURF $286,145 $207,496 $319,575 64.9% • The Administrative program for the Streets division includes activities that are not directly related to a program, for example overhead items such as insurance, fuel, utilities, etc.) • Open Space program includes maintenance of the medians; the largest component of this category is the contract for landscaping and water usage • Pavement Management program includes personnel costs related to road repair and maintenance, such as pot holes and curb replacement. • Street Signs program includes personnel and maintenance costs for the Town's 6,800 street signs. • Street Sweeping program major expenditures are for personnel costs and maintenance/fuel for operating the Town's two street sweepers. Arterial streets are swept every two weeks and residential streets every eight weeks. • Traffic Signals program includes personnel and electric costs for the Town's 13 Traffic signals. Costs 0 include hardware and programs for maintenance and synchronization of the signals. • Vehicle Maintenance program includes personnel as well as costs to maintain the Town's fleet of 50 vehicles and heavy equipment. 9 , ,' * 111111111) ° \\ � ? K y�a% a § . . y �ƒ 10 . s, J 1 Excise Tax Fund — Economic Development FY11-12 FY2012-13 YTD to Year End Actual Actual Budget Estimate Revenues $67,661 $68,679 93% $295,560 This is a separate operating fund from the General Fund and supports the Town's downtown economic development and business retention programs. This fund is supported by a portion of the local sales (excise)tax (.1%of the 2.6%). Excise Tax Fund Expenditures by Program - Fiscal Quarter Ending 9/30/2012 Expenditures by FY2011-12 FY2012-13 FY2012-13 % of Category Actual Actual Budget Budget Salaries and Benefits $11,949 $6,944 $12,543 55.4% Supplies and Services $2,451 $21,956 $1,951 66.8% Contractual Services $456_ $7 $31,059 7.8% Internal Services $26 $0 $439 0.0% Grand Total all Categories $14,882 $28,907 $45,992 62.9% • Salaries and benefits, which represent 28% of the total Economic Development operating budget, are at 11) 55% of budget which is less than budget at this time. A percentage (50%) of the Economic Development Administrator's salary and benefits had been allocated to this fund; however, until the vacant Economic Development Administrator position is filled there will be no further expenditures in this category • Contractual services and supplies represent 72% of the budget and include contracts for downtown holiday lighting, Greater Phoenix Economic Council (GPEC), and planned professional services for marketing strategies. l C 11 41114 ' 6` i6-'k Y Development Fees This is a restricted fund with revenues paid by developers at the time of new residential and commercial s construction permits. The lack of permit activity results in less development fees collected. The budgeted expenditures are related to the development fee study that the Town is required to have as a result of legislation enacted in FY10-11. The study is ongoing and will take approximately nine months to complete. During the first three months of this fiscal year there have been four (4) single family permit applications including development fees. Effective January 1, 2012 cities and towns are prohibited from collecting a development fee for the General Government category. FY2012-13 Revenues by Category -Development Fees FY2011-12 FY2012-13 FY2012-13 Actual Actual Budget % of Budget Law Enforcement $42 $373 $2,094 17.8% Streets $7 $16,853 $12,336 136.6% Parks $0 $6,354 $2,219 286.4% Open Space $120 $3,946 $1,350 292.3% General Government $110 $0 $4,443 0.0% Library $9 $245 $261 93.8% Fire $8 $628 $470 133.8% Grand Total All Funds $295 $28,399 $23,172 122.6% FY2012-13 Expenditures by Category -Development Fees FY2011-12 FY2012-13 FY2012-13 Actual Actual Budget % of Budget Law Enforcement $0 $140 $1,250 11.2% Streets $0 $634 $5,000 12.7% Parks $0 $558 $3,750 14.9% Open Space $0 $826 $0 826.0% General Government $0 $0 $0 0.0% Library $0 $140 $1,250 11.2% Fire $0 $140 $1,250 11.2% Grand Total All Funds $0 $2,437 $12,500 19.5% 12 11 r a • a , Capital Projects and Fund Balances FY11-12 FY2012-13 YTD to Year End Revenue Actual Actual Budget Estimate Construction Sales Tax $87,006 $70,724 236% $120,000 Grants $0 $12,337 3% $5,758,000 Interest& Miscellaneous $1,310 $13,649 191% $28,649 Transfers from Other $0 0% $1,299,000 Funds TOTAL $88,315 $96,710 4% $7,205,649 Fiscal Quarter Fund Balances FY12-13 YTD Project Number/Name Project Budget 9/30/2012 30-Sep-12 D6047 MISC DRAINAGE $65,000 $0 General Fund $4,744,573 E8501 DOWNTOWN VISION $100,000 $0 E8502 DOWNTOWN VISION $250,000 $0 I IURF $663,322 E8504 AOTF MEDIAN&RIGHT- $1,792,000 $6,481 Special Revenue Funds F4005 FIRE STATION 2 2 11 $257,381 $ > 0,000 $0 F4012 LIBRARY EVENT CIRCLE $48,000 $19,999 Economic Dev/Downtown Fund $2,059,831 F4015 FIRE STATION 1 $495,000 $0 Public Art $1,613 0 F4020 VOICE&DATA $25,000 $16,239 F4023 ENERGY EFFICIENCY $35,000 $0 Development Fees: F4025 PORTABLE LIVE FIRE $160,000 $0 Law Enforcement $201,334 F4026 EMERGENCY OPERATIONS $75,000 $0 F4027 ASSISTANCE TO $120,000 $0 Fire & Emergency $40,646 P3008 FOUR PEAKS PARK $50,000 $44,350 Streets $70,357 P3022 FOUNTAIN LAKE WA IER $250,000 $0 P3024 URBAN TRAIL $50,000 $11,130 Parks& Recreation $16,097 S6003 UNPAVED ALLEY PAVING $325,000 $0 Open Space $1,649,274 S6005 SHEA BLVD WIDENING $3,944,679 $26,095 S6008 ANNUAL PAVEMENT $100,000 $0 Library/Museum $42,028 S6010 SAGUARO BLVD $300,000 $0 Debt Service $292,439 S6047 SHEA BLVD MULTI USE $50,000 $0 S6053 FOUNTAIN HILLS BLVD $134,250 $56,770 Capital Projects $9,356,379 S6054 HIGHWAY SAFETY $57,000 $0 Rainy Day Fund $1,345,200 S6056 SHEA BLVD EB BIKE LANE • $651,000 $0 Vehicle Replacement Fund $718,792 T5010INTFIIIGENT $53,000 $0 P T5011 TS-PALISADES& $400,000 $0 CONTINGENCY $58,281 $0 TotalFY12-13 Capital Projects $11,698,210 $181,064 Total $21,459,266 • 13 . e r 4 New Venture group Tempe Arizona A Survey and Profile of Current Businesses in Fountain Hills • A proposal submitted to: Ken Buchanan Town Manager Fountain Hills, Arizona By: New Venture Group Tempe, Arizona September 19, 2012 • • •V ? � Table of Contents Table of Contents 2 Project Approach 3 Project Scope 4 Project Schedule 5 3 nVg J Page 2 of 6 / iIP Project Approach New Venture Group (NVG) is a multidisciplinary management consulting organization based in the W. P. Carey School of Business and Barrett, The Honors College, at Arizona State University's Tempe campus. NVG works with clients in a collaborative fashion to aid the client in characterizing, identifying and evaluating opportunities for increasing the overall value of their organizations. NVG takes a team-based approach to its engagements with clients and works in collaboration with and at the direction of the client. Changes can be made to the Scope of Work at any time based on joint agreement of the client and NVG. All work conducted for the client is treated as proprietary unless otherwise directed by the client and all work products are treated as "work for hire" and become the property of the client. The client is kept abreast of project progress and can provide additional direction or input regarding the scope of work at any time as the project moves forward. The team leader for NVG will be the points of contact for Fountain Hills and all communication and correspondence will be coordinated through them. The team leader for this project is Christopher Neumann, who can be reached at Chris.Neumann@asu.edu or 480-304-2995. The rest of the team is: Arianna Rose, Federico Bryner, Gunhee Park, and Kinsey Hart. �► nVg Page 3 of 6 ♦ f' ' Project Scope Fountain Hills is interested in continuing to attract, stimulate and retain new economic development. A number of approaches have been considered, including attracting existing businesses to relocate(or establish a branch) in Fountain Hills, provide a base for new start-ups, and grow businesses already active in Fountain Hills. Combinations of these approaches are also actively considered. The foundation for any strategy for growing a local economy begins by taking inventory of the current economic assets. A clear picture of where a local economy is currently is essential to establishing objectives for development that are challenging but achievable so resources and energy aren't wasted, and then constructing plans to make these objectives real. New Venture Group will assist the town of Fountain Hills in the first phase of this development process: identifying and profiling, to the extent possible, the town's current economic assets in the form of existing businesses. In particular, NVG will identify businesses by their name, approximate size, location, number of employees, length of time in Fountain Hills, the type of space they own, and the views of the business regarding their operations in Fountain Hills, both strengths and weaknesses. This "inventory" and profile of businesses will be conducted,to the extent possible, by direct survey using forms that are reviewed and approved by Mr. Buchanan and Fountain Hills town representatives. In addition to the economic asset survey, information will also be gathered regarding currently used retail space, currently unused retail space, and current unused space that could be modified for alternative uses. The survey will identify as part of the profile of existing businesses and commercial operations those entities that fall in the following three economic categories: • NAICS Code 52 (Finance and Insurance) • NAICS Code 54 (Professional, Scientific, and Technical Services) • NAICS Code 62 (Health Care and Social Assistance) The results of the survey will be reported in formats determined in consultation with the Town Manger and other representatives of the Town during the survey and at its end. nVg Page 4 of 6 r {., r � Project Schedule The first phase of the project has an expected time frame of approximately 10 weeks from start to finish. This phase will include organization of existing tabulated information on businesses and general economic activity in Fountain Hills. Based on existing information, a sampling plan will be developed for surveying existing businesses. A survey instrument (a set of questions) will be developed in collaboration and under the final review of the Town Manager. Once this instrument is approved, a physical survey of existing businesses will be conducted. Proposed schedule for the engagement: September 18, 2012: NVG Proposed Scope of Work submitted to Ken Buchanan for review. Accompanying this submission, a request for access to existing census data and the Town's strategic plan. October 1, 2012: • Business Survey and sampling plan submitted to Ken Buchanan for approval. This will include: t,,,,, o List of questions for existing businesses to establish profiles, focusing on organizations: • With NAICS codes: 52, 54, 62 • Located in the Shea, Saguaro, or Downtown corridors o Formatting of the survey The goal of this request will be to ensure that the survey NVG develops correctly aligns with the intents of the clients. We would like to schedule a phone conference on Friday, October 5th at clients' convenience to discuss survey. Following approval of the survey plan and instrument, the survey will be conducted during the month of October and possibly the first week of November. November 1, 2012: • Status Update of Data Collection o NVG will send a copy of the raw data collected through survey and will outline further analysis steps. o A meeting will be scheduled to review the results of the survey and discuss the ways in which this information can be analyzed or arranged to provide value to nVg Page 5 of 6 . II' N Fountain HIlls. December 3-7, 2012 (TBD by client): • Final Report and schedule for presentation to Ken Buchanan. In this report, NVG will: o Provide an overview of the business survey results. o Provide an evaluation of adaptive re-use of available space. o Provide discussion of the compatibility of Fountain Hills' current business mix, Fountain Hills' strategic plan, and potential objectives for economic development in the future. o Discuss with Fountain Hills any interests in"next steps," including the possible use of Town focus groups to identify key objectives and priorities of citizens to be used in a value model for evaluating various options for Town development. Note that schedule dates can be adjusted by joint agreement between NVG and the Fountain Hills representatives at any time during the project. nVg Page 6 of 6 }f' '0 I Memo To: xx CC: xx From: Strategic Planning Advisory Commission Date: xx xx, 2012 Re: Annual Strategic Plan Update The Strategic Planning Advisory Commission (SPAC) has once again reviewed the strategic plan as part of the annual process outlined in the plan. There remain some overall concerns since the last update about the community's trajectory that the Commission thinks are not adequately addressed in the plan. Fountain Hills' infrastructure continues to deteriorate and considering the age of the community, this trend can be anticipated to accelerate. Based on information provided by the Town Manager and Finance Director, the Town will be hard-pressed to identify funding to provide proactive maintenance, let alone major renovation and reconstruction that are imminent. Thanks to the developer and its financial incentive to keep the community's infrastructure and aesthetics intact, the people of Fountain Hills have enjoyed a high quality community very inexpensively for decades. The burden has now shifted and SPAC encourages an expanded dialogue with the community that enunciates the direct correlation between the condition and function of infrastructure and community aesthetics, property values and business climate. 11116. Fountain Hills residents' median age continues to climb and, as articulated in the recently completed report by ASU's New Venture Group, the community demographic profile is trending toward that of Gold Canyon and Sun City. While SPAC agrees that retirement communities play an important role in our region, Fountain Hills was never intended to be one of them. Nothing shows that a community is getting out of demographic balance more than the closure of a school, and with a further decline in school enrollment, Fountain Hills needs to consider seriously how it can sustain itself into the future. SPAC encourages that all efforts by the Town (especially economic development, amenities and programs, support of schools, etc.)should promote the attraction of young people and families to Fountain Hills in an attempt to bring more age balance. This includes developing an economic development strategy that will bring working people to Fountain Hills with jobs that support those new employees working and residing in Fountain Hills. Based on these concerns and issues, SPAC recommends adding the following three strategic directions to the Strategic Plan as part of this year's update: 1. Strategic Value—Civic Responsibility Add Strategic Direction CR 8: Foster a dialogue with residents and businesses regarding the importance of investing in the community's infrastructure maintenance to protect property values and enhance the business climate. 2. Strategic Value—Economic Vitality Add Strategic Direction EV 9: Promote the maintenance of an age-balanced population that will support the long-term sustainability.of our community. 3. Strategic Value— Economic Vitality Add Strategic Direction EV10: Define Fountain Hills' market niche and actively pursue opportunities that attract and retain high quality employment opportunities.