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Home My WebLink AboutSPAC.2012.0417.Minutes p • TOWN OF FOUNTAIN HILLS MINUTES OF THE FOUNTAIN HILLS STRATEGIC PLANNING ADVISORY COMMISSION MEETING April 17,2012 AGENDA ITEM(1)—CALL TO ORDER Chair Audra Koester Thomas called the meeting to order in Council Chambers at Town Hall at 4:03 p.m. AGENDA ITEM(2)—ROLL CALL Present for roll call were the following members of the Strategic Planning Advisory Commission: Chair Audra Koester Thomas, Vice Chair Curt Dunham, Commissioners Denise Atwood, Nick DePorter, Mike Dooley, Alan Magazine and Barry Spiker, and Youth Commissioner Sarah Traylor. Also present were Town Manager Ken Buchanan, Deputy Town Manager/Finance Director Julie Ghetti, Economic Development Administrator Lori Gary, 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 MARCH 6,2012 Commissioner Magazine MOVED to approve the March 6, 2012 meeting minutes and Commissioner Dooley SECONDED the motion,which CARRIED UNANIMOUSLY by those present. AGENDA ITEM (5) —TOWN MANAGER'S UPDATE: (A) UPDATE ON STATUS OF SPAC RECOMMENDED STRATEGIC DIRECTIVE ADDITIONS; (B)UPCOMING TOWN EVENTS Mr. Buchanan noted upcoming community events, including a budget open house on April 18, electronics and paper shredding events on April 21, and a drug take back event on April 28. Mr. Buchanan pointed out that the proposed addition of three Strategic Directions to the Strategic Plan is on the Council agenda for the meeting on April 19. Ms.Koester Thomas stated that she would attend in case there are questions,but not to make a presentation. Mr. Buchanan responded to a question from the Commission regarding the adoption date for the FY12-13 budget by stating that due to the election the adoption date may be delayed into June. In response to a question from the Commission, Mr. Buchanan stated that a sign open house will also be held on April 18. AGENDA ITEM(6) —UPDATE ON TOWN FINANCES AND FY12-13 DRAFT BUDGET Ms. Ghetti made a PowerPoint presentation regarding the draft FY12-13 budget (copy attached). She responded to questions from the Commission by stating that she would not anticipate more than a 3% increase in sales tax revenue over the next few years;that the Capital Projects Fund is approximately 37% of expenditures and that the Town is applying for approximately $10M in ARRA grant funds; that Community Contracts will be restored to FY12 levels; that the process for evaluating Community Contracts is ongoing and that there was no indication from the Council that competitive bids should be sought. Page 1 of 3 AGENDA ITEM (7) — DISCUSSION AND POSSIBLE CONSIDERATION OF THE REVISED • FIRST PROGRESS REPORT FROM ASU'S NEW VENTURE GROUP ON THE RESEARCH PROJECT "COMPETITIVE ADVANTAGES AND REGIONAL COLLABORATIVE OPPORTUNITIES FOR BUSINESS DEVELOPMENT IN THE TOWN OF FOUNTAIN HILLS" Chair Koester Thomas welcomed Jennifer Bell and Brook Seaman, representatives of ASU's New Venture Group (NVG), and their advisor, Professor Dan Brooks. Ms. Bell and Mr. Seaman presented an "Evaluation of Economic Development Opportunities in the Health Sector" (copy attached), outlining ongoing work by NVG. Ms. Bell stated that the purpose of presentation is to make SPAC aware of specific areas of work and obtain feedback from SPAC; that the focus of NVG's investigation has been the identification of areas within the health related industries which could be contributors to the economic development of Fountain Hills and steps to take to investigate possibilities based on studies conducted by the Small Business Administration. Mr. Seaman stated that their current investigation includes Fountain Hills' opportunities and strengths, as well possible challenges; that the four sectors of health related industries being examined are health care, wellness, medical and bio-medical; that eight representative business have been identified within the four identified health care sectors; that their study will result in a prioritized ranking of these businesses identifying which ones to target for further investigation; that their study will additionally provide insights into the relative pros and cons of each business and the tradeoffs associated with pursuing each option. He noted that the deliverables to be presented at the SPAC meeting on May 7 will • include a written report, data accumulated in their studies, and a PowerPoint presentation. He asked SPAC for additions, adjustments or suggestions to incorporate into their final report. Professor Dan Brooks explained aspects of the NVG study and responded to questions from the Commissioners by stating that the study has identified two representatives businesses in each of the four sectors defined in the Scope of Work; that businesses have been defined using objectives for economic development in Fountain Hills that were obtained through earlier interviews with SPAC representatives; that the study involves looking at what it takes to attract a company to Fountain Hills and what it takes to retain that company; that bio-tech businesses examined during the course of the study can serve as a benchmark when making comparisons to businesses in other sectors; that Fountain Hills has a number of characteristics that are not reflective of a lot of smaller communities and it is difficult to find any exact analogue, i.e., that demographics and the rate of change of demographics are unique to Fountain Hills; that demographics, combined with physical location, make it a challenge to identify new business or entrepreneurial activities that would find Fountain Hills an ideal place to locate because they are characterized by capital investment and a local work force that is relatively younger and has technical skills; that NVG has spent a lot of time examining potential opportunities, changed direction a number of times, and has invested time deciding not to pursue certain avenues; that creating a portal of businesses with similar capabilities has associated advantages and disadvantages; that the NVG report will not recommend anything specifically, but instead provide a strategy table, i.e., a systematic way of thinking of combinations of activities that could constitute economic development and an evaluation process to determine if they are worth pursuing; that if the strategy table proves helpful NVG would be willing to work with SPAC to get more precise; that businesses can often be more successful when located in synergistic clusters because they utilize a common work force and infrastructure, zoning, tax structure, advertising, etc. often adjust around the clusters; that NVG will genuinely work to provide Page 2 of 3 their final report in advance of the May 7.SPAC meeting; that NVG is willing to attend a follow-up meeting after SPAC has an opportunity to digest their report; that NVG is willing to utilize a radius to determine a potential work force, specifically data to be provided by Ms. Gary (28 to 29-minute commute time one-way yields a work force of approximately 120,000, 78% of which are highly educated). In response to a question about the eight representative businesses that were specifically identified by NVG in the four business sectors, Mr. Seaman reported that they are short to mid-term medical care; rehab facilities such as physical therapy or sports rehabilitation; computer software in the healthcare industry; lifestyle disability solutions, e.g., wheelchair manufacturing or repair; mail order companies that provide health care products, e.g., herbal medicines; mail order pharmacies; processing laboratories, e. g.,blood samples; and bio-medical facilities. Dr. Brooks noted that SPAC is welcome to add to the eight representatives identified by NVG. He agreed to send the list to Chair Koester Thomas, who will distribute it to the Commission to obtain feedback. Chair Koester Thomas expressed the appreciation of the Commission for the pro bono work of NVG. AGENDA ITEM(8)—DISCUSSION REGARDING EXPIRING COMMISSION TERMS Ms. Williams stated that the terms of two Commissioners would expire on June 30 (Chair Koester Thomas and Commissioner Spiker) and that advertising would be placed to solicit applications. She noted that seated Commissioners would be required to reapply. At the request of Chair Koester Thomas, Ms. Williams agreed to forward application packets to Commissioners whose terms would be expiring. AGENDA ITEM(9)—SCHEDULE UPCOMING MEETINGS It was noted that a SPAC meeting is currently scheduled on May 7 beginning at 4:00 p.m. Two additional meetings were scheduled on June 12 and July 10, each beginning at 4:00 p.m. AGENDA ITEM (10)-ADJOURN Commissioner Dooley MOVED to adjourn at 5:22 p.m. and Vice Chair Dunham SECONDED the motion,which CARRIED UNANIMOUSLY by those present. U.), 4 0� Shaunna Williams,Recording Secretary Page 3 of 3 i Budget Update to Strategic Planning E° Advisory Commission r_. keill o �n �• tSL l9a9 • that is re Prepared by: Julie A.Ghetti,MPA,CPA ` - Apr1117,20:2 ".r S TOWN OF FOUNTAIN HILLS BUDGETARY FUNDS ,141 COW ill.KNIA1 RINDS PRO 1 1 1 1 1 1 General/ Special Revenue capRal Intemai Services .. Operadngfund Funds Im Finsmt funds a. I •General Fund •"ighway User •Revenue Bond 'Capital Rm(ects •General Inte.n. (1001 17417,17(Fund Debt Seryice(500) Fund1600) servlcv fund(6� Town Iuns 'General 'taw Entartement •VeMtltY f: •Eacbe Tax FurW ObBgatp(Debt Development Get Ia.mp tF s� 13001 Service(510) FUM 01°1 Replare(810)F,.r.. 0) Funds •Spedel Revenue •EageMtn CfO Fire/Eme gent' Granes fw•aleoo) Debt servlct(s]61 bevNppmen:Gee it Fund 1730) •publlcAf Fund Property C ul (410) property corp •SNeets •ett servlce(530) bevelopment Fee. vundp30) 'Court Enhancement •cp snwoeebtm• iuM 1430) oIrtN DebtIS4O) 010elopmentFee Servlce(Sa0) Dav und(ent Fee Fund(]40) `Open Space Fund(750)]50) Develnd( re •Ubrsry/Museum n` Dwclnpment Fee „*.. Fond(]60) •General Govpr und PM) bevelopment Fet 1 I FY11-12 Revenues YTD Revenue All Funds Account Title MAR FY10-11 MAR FYI 1-12 Period Budget Budget General Fund $9,423,821 $9,150,757 $9,468,359 96.6% IICRF $1,079,004 $861,800 $871,839 98.8% Dev Fees $26,859 $11,598 $66,446 17.5% Special Revenue $182,291 $192,969 $1,125,000 17.2% Economic Development $217,301 $210,871 $204,102 103.3% Debt Svc MPC $1,037,409 $410,223 $618,903 66.3% Debt Svc GO $963,867 $943,379 $1,080,077 87.3% CIP $275,553 $549,356 $10,554,068 5 2% Grand Total All Funds $13,206,105 $12,330,953 $23,988,794 51 4 April 17,2012 General Fund Revenues TOWN OF FOUNTAIN HILLS PERIOD ENDING 3/31/2012 GENERAL FUND REVENUES TOTAL$9.21\1 $5.0 State Sales Tax State Income Tax III ::: ■ Local Sales Tax t+MAR FV10-11 MAR FY11-12 II Bud;et Gt.. April t7,zor2 e 2 0 Local Sales Tax July-March Retail Activity JulysMarch Restaurant/Bar Activity i I i sssoo,.rr l iiiiiiiiii l _ too.oro- s+oo.00eIII --- nraw rrnm nraar nwu rnou nuu nuryw July-March T r/ralacemmunkrtlonr Satyr Tae AcUvky JWy-Mrrh Ceustrurtlon Saes Too.0otlsiry aeon. suooaro limos.. nAM. .��. Nowa 44500.00. ll III 111 ill $rppJMr MooLm ■ Y II 111 r,r,r rr r r�r FYOTAII FY011-09 FY01.10 FYI0.11 FY11.12 FYI. seal.: �'4 April17,2012 0 General Fund Expenditures FY2011-12 FY2011-12 Nine Month Nine Month YTD to Expenditures by Department Budget Actual Budget Annual Estimate Police $2,174,642 $2,036,996 93.7% $2,899,522 Fire& Emergency Medical Services $2,367,159 $2,322,831 98.1% $3,156,212 Development Services $1,200,368 $1,124,135 93.6% $1,600,490 Community Services $1,642,461 $1,737,809 105.8% $2,189,948 Municipal Court $324,633 $310,508 95.6% $432,844 Mayor&Town Council $56,809 $51,161 90.1% $75,745 Administrative Services $1,681,043 $1,563,036 93.0% $2,241,390 TOTAL $9,447,113 $9,146,476y 96.8% $12,596,151 April 17.2012 0 TOWN OF FOUNTAIN HILLS PERIOD ENDING 3/31/2012 ALL OTHER FUNDS TOTAL$3.21\1 $1,400.0 $1,200.0 i _.... Debt Svc MPC $1,000.0 --- ------ Debt Svc GO HURF $800.0 P»•: $600.0 CID Special Revenue ::::: DevFeesMAE Economic Development Thousands MAR FY10.11 •MAR FY11-12 • FYI 2-13 Proposed Budget ...'-...... TONS OF FOUNTAIN HILLS REVENUES RV SOURCE p.taiR.n.) ^,p TO\\N OF FOUNLUN HILLS EXPENDITURES BY USE li.millions) TOTAL ALL SOURCES nw nnr.w a ''� ram..wy.rt.rW rx er- ohs $ � aw.• a rw _xu ` w D I L11,.11.1.Usk,. r. + a r• St1.45I April 17,2012 4 GENERAL FUND General Fund Revenues FY12-13 GENERAL FUND REVENUES Ian n,�iiio,ul $13.7M $1e.0 :::: Sx.a- Sll.s 00., % :::: IIiiii rror of Froa03 Fvo.O mrO fvuax nJaO General Fund Expenditures II}I2-13 GENERAL do millions) S13.611 $"'° $Is.c $1J.8 111111 EY07-0S FY08.09 FY09-10 FY10.11 FY11.12 FY12.13 STATE SHARED REVENUES 12°'0 STATE SHARED SALES TAX REVENUE weenoo .011190 $1.500M. STATE SHARED LNCOTIE L N REVENUE 1.0.009 e uuJ 1 rw �—.. f'Ia.:Je - Ill o�lch'I113 --- • " f:mout - 1i1øIII$blr , 4w I_vo m i • '— Eix.xl�-e:n.111aJJu unc4�u13- 5 LOCAL SALES TAX I 3% Tax rate 2. % u ,I.SALES TAX-ALL FUNDS local, 9.9% SI:CAM including State/County I 2.3% goes to General Fund .3% goes to debt L , • —Floral.ear.2004 du wnrh 2013 retirement fund PERSONNEL & BENEFITS I 2% $3,356,721 • No new staff positions • 56.5 FTE's (45 full-time, 19 part-time) • 15% savings in health insurance premiums 2.5% merit/cost of living increase for staff Number of Town Employees Delivery of service to the citizens of Fountain Hills is I 1 dependent upon the number of employees who can perform the services. III 6 ADMINISTRATION lo % $2,485,022 Includes risk insurance, HR, IT, Manager, Legal, Clerk, Economic Development, Budget, Finance, Licensing, Auditor, Customer Service, Volunteer • Restore Tourism, community contracts to FY-2 levels • Restore computer and server replacement program • Restore Town Prosecutor to full time • Integrated marketing strategy (ED) • Includes special election for franchise agreement • Includes $25o,000 contingency as safety net ,,/.....7,...,,,v, _ ,... 'v a °.. ID DEVELOPMENT SERVICES 129% $2,071,685 Includes Planning, Building Safety, Code Enforcement, Stormwater Management, Engineering, CIP, Facilities, GIS Continues ADWR fee, ADEQ permit, dam inspections for $60,000 • Restores wash maintenance program to $150K • Restores facilities maintenance program $35oK • Household hazardous waste event • New plotter/scanner for GIS L. 7 , COMMUNITY SERVICES 1.3% $2,2331838 • Additional maintenance for trails, parks, irrigation system • Rebuild fountain cla-valve $12,000 • Repair and stripe parking lots $42,500 • Community Center bond payment "4.., . FIRE & EMERGENCY MEDICAL I3% $3,255,335 • Contract with Rural Metro • Added $24,00o to contract for CARE program • Addition of new extrication equipment • Grant for self contained breathing apparatus (SCBA's) Includes depreciation cost for fire engines ..._:............................... .. J 8 . C LAW ENFORCEMENT ,50/0 �. ` $3,049,572 3.8 beats School Resource Officer Increases to County benefits are passed on to the Town Includes contract with County for animal control and jail fees 0 STREETS FUND (HURF) • Funds street division HICRRWA]'(rSER MORE)RE\EWE operations I LOOM) Potholes, street signs, 1 medians, signals, etc. Swept by State 1 _ legislature ""m°. Does not fund proper "— pavement maintenance "— Fisralvar'x 2003r1uoach_`01? -- I lk : "' Ito` i _,. **0- Ow I 0 . .. . CAPITAL PROJECTS FUND $11,687,280 jjinir m won."ki-iti tttl CapitalFrojectsB�Funding Source mmuiiona °--U6II��1 ¢F -- _. --�: onsoom ag „,,„« 3 i_^ ° 3 ao. 8 ss.m FYI012-13 La111fatlseTaa General Non Town Pnsiett Oteaory 006153 vroIo j 100$ 000 16961 ila 5Dntl 0 ,,,town $2,130.000 5]90,000 $1,240,000 50 $300,000 Improvements Street(Stlewalk 55,074,000 $1.0)3 000 $0 50 $3,401,000 Improvemenls TOTAL$II."Af 0 06019rub $453,000 $453,000 SD SD $0 ...._....__..__..___-- Park improvemen[i 5350.000 $350.000 $0 50 $0 h 0 6. V,I C. I General 6overnme0. 596,000 $0 $0 $25,000 $7I,000 4 . . Prnie. W nar St-'I F' &EMSProjx[s $2.960.000 550].000 50 $16,000 52,a3],000 au2v f Drainage $65,000 $65,000 00 00 50 n gM06 `%. j library/Event Urzle $ag,000 540,000 5050 $0 Y o ; 0006092 9 5111,201 $131,280 $0 $0 $0 • wy__ -. c Vebick fl4pittement $400,000 5400.000 00 50 50 R io rD✓n ro, TOW 511.6R.290 $Id91.290 $5,240,000 $41.000 $4009,000 x„#y zw.n EKE p'c,.. ,- x1.7nr.' Questions? April 17,2011 al 10 EVALUATION OF ECONOMIC DEVELOPMENT OPPORTUNITIES IN THE HEALTH SECTOR A Presentation to Fountain Hills SPAC Outlining on-going work by New Venture Group April 17, 2012 1. Purpose of this presentation 2. Overall objective of the research being conducted for SPAC 3. Context and focus of the investigation based on studies conducted by the Small Business Administration (SBA) 4. The opportunities and strengths of Fountain Hills in attracting economic development in contrast to the challenges ® 5. The four areas of the health sector of most interest to Fountain Hills in this preliminary study 6. Specific examples or "realizations" used to represent the salient aspects of each of the four areas 7. The relative attractiveness of each of the areas based on Fountain Hills' objectives for economic development 8. Prioritizing development opportunities in the four health areas 9. Deliverables and dates