HomeMy WebLinkAboutSPAC.2011.1024.Agenda POST MEETING ACTION AGENDA NOTICE
Notice of Joint Meeting of the Town Council and
Fountain Hills Strategic Planning Advisory Commission
WHEN: Monday, October 24, 2011
TIME: 5:30 p.m. �„ITAIN
WHERE: Council Chambers
Town Hall o H
`r „ .
16705 E. Avenue of the Fountains 94
that is AO'
Fountain Hills, AZ
Pursuant to A.RS 38-431.02, notice is hereby given to the members of the Town Council, the Srategic
Planning Advisory Commission (SPAC) and to the general public that the Town Council and Strategic
Planning Advisory Commission of Fountain Hills will hold a joint meeting on October 24, 2011, beginning
at 5:30 p.m. in Council Chambers on the first floor of Town Hall, located at 16705 E Avenue of the
Fountains, Fountain Hills, Arizona. A majority of the Town Council and the Strategic Planning Advisory
Commission may be present.
Notice is hereby given that pursuant to A.RS §1-602.A.9, subject to certain specified statutory
411, exceptions, parents have a right to consent before the State or any of its political subdivisions make a
video or audio recording of a minor child. Meetings of the Strategic Planning Advisory Commission are
audio and/or video recorded, and, as a result, proceedings in which children are present may be
subject to such recording. Pa rents in order to exercise their rig hts may either file written consent with the
Town Clerk to such recording, or take personal action to ensure that their child or children are not
present when a recording may be made. If a child is present at the time a recording is made, the Town
will assume that the rightsafforded pa rents pursua nt to A.RS §1-602.A.9 have been waived.
AGENDA:
1. Call to order 5:33 p.m.
2. Roll call
3. Discussion regarding Council's FY2010-11 Goal 5.5 to "Assemble a citizen blue ribbon
committee to develop a financial roadmap for the Town's future" NO ACTION TAKEN
4. Discussion regarding economic development efforts NO ACTION TAKEN
5. Discussion regarding SPAC's future work program NO ACTION TAKEN
6. Adjourn 7:30 p.m.
Dated this 20th day of October,2011.
By
Shaunna Williams,Executive Assistant
C
The Town of Fountain Hills endeavors to make all public meetings accessible to persons with disabilities. Please call 480-816-5252(voice)or
1-800-367-8939(TDD)48 hours prior to the meeting to request a reasonable accommodation to participate in this meeting.
Notice of Joint Meeting of the Town Council and
Fountain Hills Strategic Planning Advisory Commission
WHEN: Monday, October 24, 2011
TIME: 5.30 p.m. o� T'AINft�
WHERE: Council Chambers
Z 1
Town Hall c '
. WV Villr W .
16705 E. Avenue of the Fountains
'hat is my'
Fountain Hills, AZ
Pursuant to A.R.S. 38-431.02, notice is hereby given to the members of the Town Council, the Strategic
Planning Advisory Commission (SPAC) and to the general public that the Town Council and Strategic
Planning Advisory Commission of Fountain Hills will hold a joint meeting on October 24, 2011, beginning
at 5:30 p.m. in Council Chambers on the first floor of Town Hall, located at 16705 E. Avenue of the
Fountains, Fountain Hills, Arizona. A majority of the Town Council and the Strategic Planning Advisory
Commission may be present.
Notice is hereby given that pursuant to A.R.S. §1-602.A.9, subject to certain specified statutory
exceptions, parents have a right to consent before the State or any of its political subdivisions make a
video or audio recording of a minor child. Meetings of the Strategic Planning Advisory Commission are
audio and/or video recorded, and, as a result, proceedings in which children are present may be
subject to such recording. Parents in order to exercise their rights may either file written consent with the
Town Clerk to such recording, or take personal action to ensure that their child or children are not
present when a recording may be made. If a child is present at the time a recording is made, the Town
will assume that the rights afforded parents pursuant to A.R.S.§1-602.A.9 have been waived.
AGENDA:
1. Call to order
2. Roll call
3. Discussion regarding Council's FY2010-11 Goal 5.5 to "Assemble a citizen blue ribbon
committee to develop a financial roadmap for the Town's future"
4. Discussion regarding economic development efforts
5. Discussion regarding SPAC's future work program
6. Adjourn
Dated this 20th day of October,2011.
By
Shaunna Williams, Executive Assistant
The Town of Fountain Hills endeavors to make all public meetings accessible to persons with disabilities. Please call 480-816-5252(voice)or
1-800-367-8939(TDD)48 hours prior to the meeting to request a reasonable accommodation to participate in this meeting.
4
$
... Notice of Joint Meeting of the Town Council and
Fountain Hills Strategic Planning Advisory Commission
WHEN: Monday, October 24, 2011
TAINT
TIME: 5:30 p.m.
WHERE: Council Chambers ��� � t�
k
Town Hall
16705 E. Avenue of the Fountains 00'
that is M'
Fountain Hills, AZ
Pursuant to A.R.S. 38-431.02, notice is hereby given to the members of the Town Council, the Strategic
Planning Advisory Commission (SPAC) and to the general public that the Town Council and Strategic
Planning Advisory Commission of Fountain Hills will hold a joint meeting on October 24, 2011, beginning
at 5:30 p.m. in Council Chambers on the first floor of Town Hall, located at 16705 E. Avenue of the
Fountains, Fountain Hills, Arizona. A majority of the Town Council and the Strategic Planning Advisory
Commission may be present.
Notice is hereby given that pursuant to A.R.S. §1-602.A.9, subject to certain specified statutory
(iv exceptions, parents have a right to consent before the State or any of its political subdivisions make a
video or audio recording of a minor child. Meetings of the Strategic Planning Advisory Commission are
audio and/or video recorded, and, as a result, proceedings in which children are present may be
subject to such recording. Parents in order to exercise their rights may either file written consent with the
Town Clerk to such recording, or take personal action to ensure that their child or children are not
present when a recording may be made. If a child is present at the time a recording is made,the Town
will assume that the rights afforded parents pursuant to A.R.S. §1-602.A.9 have been waived.
AGENDA:
1. Call to order
2. Roll call
3. Discussion regarding Council's FY2010-11 Goal 5.5 to "Assemble a citizen blue ribbon
committee to develop a financial roadmap for the Town's future"
4. Discussion regarding economic development efforts
5. Discussion regarding SPAC's future work program
6. Adjourn
Dated this 20th day of October,2011.
By
Shaunna Williams,Executive Assistant
C
The Town of Fountain Hills endeavors to make all public meetings accessible to persons with disabilities. Please call 480-816-5252(voice)or
1-800-367-8939(TDD)48 hours prior to the meeting to request a reasonable accommodation to participate in this meeting.
4
r
., Memo
b bbl Ir A;" '.
111
To: Town Council
From: Strategic Planning Advisory Commission
Date: September 13, 2011
Re: Blue Ribbon Committee Update
In an Advisory Statement sent to Council in June of 2010, shortly after its Strategic Plan update
was unanimously passed, Strategic Planning Advisory Commission (SPAC)took time to reiterate
its most important tenant of the Plan. Specifically, that: "The fundamental element of the Town's
continued success is its financial health and security ...The Town's current lack of financial
stability will make implementing the strategic plan difficult.As such, it is the principal
recommendation of the strategic plan that Council re-initiates a process to review and
recommend a financing structure and implement policies by which the Town's financial
sustainability can be achieved."
Subsequently, in late November 2010, the Mayor provided direction to SPAC to devise a strategy
for implementing Council's 2010-11 Goal 5.5: "to assemble a citizen Blue Ribbon Committee to
develop a financial roadmap for the Town's future". This issue, as previously articulated, has
been at the forefront of those involved in strategic planning in Fountain Hills since 2005 when the
original plan was created, and SPAC was delighted to take on the Mayor's challenge as we knew
the dire financial circumstances predicted back then had arrived much sooner than most
anticipated.
As such, SPAC has spent the last eight months working diligently on a plan and process to shed
light on the viability of our community and to proactively propose some bold solutions using
community and outside experts to formulate a strategy that would be strongly considered by
leadership. As part of our work, we formulated the attached issue paper to be distributed to
potential committee members to show them what our community is up against.
While laying out the work program, we began to understand the magnitude of the work to be
completed and the commitment involved by not only SPAC, but the volunteers on the committee
and the town's staff. For the committee's work and findings to be of any use, an equal or greater
commitment from the Town Council would also be necessary. However, the last two town budget
development processes have given us serious doubt that the Town Council has the desire to take
the bold steps necessary to ensure our sustainable financial future.
SPAC was routinely told by the former town manager and current finance director that Council
was committed to implementing "sustainable solutions"for this year's budget process, specifically
outlining it as its first"budget principle"and communicating in each budget PowerPoint
presentation that the town has to adjust to the new fiscal reality with even more fiscal declines
expected in the future. However, this principle was quickly abandoned, even in the face of dire
news from the Census. Another budget cycle passed featuring one-time quick fixes to avoid the
tough, perhaps painful, decisions that eventually will need to be made for a sustainable future.
SPAC feels that it will be nearly impossible to motivate the citizens of the community to
participate in crafting and supporting creative and sustainable solutions for the town's long term
future when the past town's budget processes makes it appear as if everything is alright. The
symbolism of paying off the bonds for the municipal complex with capital funds to avoid cutting
programs and community contracts or raising revenues does not give the appearance of a
municipal government in serious financial trouble.
Said simply: how can SPAC or a committee work successfully to design a solution to a problem
that apparently does not exist?
SPAC takes its work seriously and wants the results of our work to be taken seriously as well.
After months of work and commission deliberation, we wanted to provide you this status update
and to receive your feedback and direction. We look forward to discussing our progress with you
at our October 24 joint meeting where SPAC will also present for your consideration options on
how to move forward. Our commissioners do not wish to continue to invest our time and efforts
into this process until we have confidence that productive change will occur.
Respectfully submitted by:
Audra Koester Thomas, Chair
Curt Dunham, Vice Chair
Nick DePorter
Mike Dooley
Alan Magazine
Barry Spiker
Attachment: Issue Statement
111)
411)
Page 2
i
•
Fountain Hills Citizen Blue Ribbon Committee Issue Paper
Purpose:To develop a financial roadmap for the Town's future
Problem Statement
The Town of Fountain Hills has long embraced a strategic planning process that has focused on the long-term
viability of the community. The citizen-crafted vision for Fountain Hills is to be a distinctive community
designed to invigorate the body, mind and spirit, and that we strive 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; and,
• Be civic-minded and friendly, taking responsibility for our Town's success by building partnerships and
investing our talent and resources.
Recent events and the ongoing financial crisis now deeply threaten the fulfillment of this vision and bring to
question the basic survival of our beloved town.
Town Finances
A fundamental element of the Town's continued success is its financial health and security. The Town of
Fountain Hills General (operating) Fund is fueled primarily through two revenue sources: local sales taxes and
state shared revenues. Fountain Hills already has one of the highest combined sales tax rates in Arizona
(9.9%). As Fountain Hills reaches build-out, Town revenue streams will continue to diminish as sales tax and
permit fees from new construction dwindle and communities within Arizona grow at a faster pace than
Fountain Hills.
The current economic recession has magnified the impact of the Town's unbalanced fiscal portfolio. High
unemployment rates, home foreclosures and the crash of the construction industry have led to reduced
revenue. Furthermore, local government should expect ever-decreasing revenue streams from the state.
General Fund Revenues
In five years, the Town's General(operating) (in millions)
revenues have dropped by nearly 30%(or nearly$5 $17 '1
million). This drop in revenue has translated into
service delivery impacts including program cuts,
516
staffing reductions and even more concerning,
deferrals of infrastructure maintenance. While $15
everyone has tightened belts, the projected long-term
costs of operating and maintaining our community
$14 ._
indicate that this trend seriously jeopardizes our
future.
$12
FY07-08 FY08-09 FY09-10 FY10-11 FY11-12
•
Page 1 of 3
Changing Demographics
Fountain Hills' demographics are changing. Most notably: we're getting older. In 2000, 19% of our town's
population was under 18; in 2010, youth make up only 14% of our total population. According to the 2010
Census, the average age of our residents is 54 years old, compared to 36 statewide and 37 nationally, making
Fountain Hills the fourth-oldest municipality in Arizona. Twenty-two percent of Fountain Hills' homes are
vacant, half of which are used only occasionally as secondary (vacation) homes. However, trends indicate that
smaller, urban-setting housing will become the norm, with families and retirees having little interest (or
funding) in maintaining multiple residences in far-reaching suburban neighborhoods. If the previous
generation of Fountain Hills' residents is not being replaced, who will buy large, expensive homes in our
suburban "bedroom" community? Without a solution, the 22% residential vacancy rate will climb rapidly.
Downward Business Trends
A significant reason for the downward town revenue trend is the significant decline in business activities in
Fountain Hills. In FY'05-06, sales taxes topped $11 million, but through April of FY'10-11, town sales tax
revenues have dropped nearly 40%, to $6.5 million. Business and growth-related investment also has
stagnated over the last several years. In 2005, building permits for 478 residential dwelling units (with a total
estimated valuation of$153 million) and 9 commercial units were issued by the town; by 2010, building
activity had plummeted to only 11 residential dwelling unit permits issued (at $8 million valuation) with no
new commercial activity. As a community reliant on sales taxes and other growth-based revenues, this kind of
slowing has had a critical impact on the vitality of our community.
Diminishing Students
Over the course of the past five years, Fountain Hills Unified School District enrollment has diminished, from
2,453 students in 2006-07 to 1,971 students in 2010-11, or a 20%decline in total enrollment. While the
District has struggled to find solutions to close its considerable budget gap as a result of declining enrollment,
a decision this summer was made to close one of two elementary schools, Four Peaks Elementary,
consolidating students into its three remaining campuses. Our community is now faced with the consequences
of a vacant school property which perpetuates the stigma of decline and also negatively impacts the
community's image to potential new residents and businesses.
Declining Property Value
Over the course of the past five years, the average home value has Home Values
declined significantly. In February of 2006, the average home value 5soo,000
in Fountain Hills was $467,000. In the five years since, the average $450,000 .......:..... .....................................................................................
home value has dropped nearly 50%, to$244,900. Data does not
indicate that this trend has reversed, or that Fountain Hills' home $400,oao
values have hit "the bottom". 53so,000 — —
$250,000
$200,000 ........ ;....._
t0 tO N N oa co 0 0 0 0
O O O O O O 0 0
0 0 0 0 0 0 0 0 0 0 0
N N N N N N N N N N N
S] t S] ¢ B . of3 I.1
C./ ) C v
L.,- C '- LL Z.
LL C LL
L
Page 2 of 3
r
Proposed Work Program
The volunteer Citizen Blue Ribbon Committee is being asked to provide recommendations to Town Council
regarding a roadmap for the community's long-term sustainability. To accomplish this task, the following
questions are recommended for research by the Committee:
• How has other master planned communities transitioned from reliance on the developer for
infrastructure development and maintenance?
• How have other communities addressed a significant non full-time resident/second home population
from a social, economic and service perspective?
• How have other communities dealt with the declining school enrollments and closing of facilities?
• How have other communities successfully transitioned from a retirement-based population to a more
age-balanced community? How can Fountain Hills attract more young people and families?
• How can Fountain Hills address the continuing erosion of state shared revenues?What is the universe
of responsible revenue options that the Town of Fountain Hills might employ?Are there services the
Town of Fountain Hills should no longer provide?
• How can Fountain Hills attract more basic employment (non-retail)jobs?
Sources: Revenue Enhancement Analysis(2007); Fountain Hills Strategic Plan (2010),Town of Fountain Hills(2011), Fountain Hills
Land Use Analysis and Statistical Report(2010);Arizona Office of the Auditor General(2011); Fountain Hills Unified School District
(2011);Zillow(2011);Census 2010
Page 3 of 3