Loading...
HomeMy WebLinkAboutSPAC.2011.0913.Minutes r TOWN OF FOUNTAIN HILLS MINUTES OF THE FOUNTAIN HILLS STRATEGIC PLANNING ADVISORY COMMISSION MEETING (;) September 13,2011 AGENDA ITEM#1 —CALL TO ORDER Chair Koester Thomas called the meeting to order in Council Chambers at Town Hall at 3:05 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, Commissioner Mike Dooley, and Commissioner Alan Magazine; Vice Chair Curt Dunham was present via teleconference; and, having given previous notice of late arrival, Commissioner Nick DePorter joined the meeting at 3:40 p.m. Also present were Acting Town Manager 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 August 23,2011 Commissioner Dooley MOVED to approve the August 23, 2011 meeting minutes and Commissioner Magazine SECONDED the motion, which CARRIED UNANIMOUSLY by those present. AGENDA ITEM#5—INTERIM TOWN MANAGER'S UPDATE\ a. Citizen open houses — Ms. Ghetti reported that a Citizen Open House will be held on the second Wednesday of each month from September through December,beginning on September 14. b. Economic development — Ms. Ghetti stated that two new businesses are coming to Town, i.e., Dunkin' Donuts and Sherwin Williams. c. Ellman development — Ms. Ghetti noted that Ellman has submitted plans for grading, drainage and realignment of Fountain Hills Boulevard. The company has stated that they are ready to move forward with the work, which will precede construction of the parks in the development. AGENDA ITEM #6—Ms. Ghetti discussed the handout she had distributed to the Commissioners in attendance (copy attached). AGENDA ITEM #7 — DISCUSSION AND POSSIBLE CONSIDERATION REGARDING DEVELOPMENT OF RECOMMENDED APPROACH(ES) FOR COUNCIL TO INITIATE ITS FY2010- 11 GOAL 5.5 TO "ASSEMBLE A CITIZEN BLUE RIBBON COMMITTEE TO DEVELOP A FINANCIAL ROADMAP FOR THE TOWN'S FUTURE." Chair Koester Thomas stated that the Commissioners had been provided copies of the memorandum distributed to the Council via email earlier in the day (copy attached) and noted that she had yet to receive any comments from Council. She noted that the subject matter of the memorandum will be the main topic of discussion at SPAC's joint meeting with Council scheduled for October 24. Chair Koester Thomas inquired whether or not SPAC wanted to take the opportunity at this meeting to discuss potential options to move forward with the project in the event Council expresses interest in doing so at the joint meeting. Page 1 of 4 Vice Chair Dunham stated that potential feedback to the memorandum distributed today might impact the kind of options SPAC could potentially provide, and therefore it may be beneficial to wait until the next SPAC meeting to develop those options. Chair Koester Thomas acknowledged the general consensus of the Commissioners to do so. Commissioner Magazine inquired about other agenda items for the joint meeting. After discussion, it was concluded that an agenda item should be added to elicit direction from Council as to projects SPAC might engage in over the coming year. AGENDA ITEM #8 — DISCUSSION AND POSSIBLE CONSIDERATION OF RECOMMENDING POTENTIAL REVISIONS TO STRATEGIC PLAN 2010 Chair Koester Thomas drew the Commission's attention to the Quick Guide to Strategic Plan 2010 that had been distributed to the Commissioners in attendance (copy attached) and noted that as part of the Annual Strategic Planning Process, SPAC is to review/revise the Strategic Plan on an annual basis. She noted that changes should be structural in nature and then called for suggestions: Vice Chair Dunham suggested the following: (1) under "Civic Responsibility," state that it is the civic responsibility of every citizen to financially support the community in order to improve, preserve and protect it; (2) under "Economic Vitality," acknowledge the importance of maintaining population balance/diversity (acknowledge school closing); (3) under "Economic Vitality," state the importance of defining our market niche/competitive advantage to generate high quality jobs; and (4) under "Maintain and Improve Community Infrastructure," identify annually potential bond packages for funding specific infrastructure rehabilitation and community investment projects. Chair Koester Thomas stated that she would work with Vice Chair Dunham to wordsmith these proposals prior to 43 the next SPAC meeting. Commissioner Magazine suggested taking a good look at the Idea Box for other ideas and, based upon his request, the Idea Box will be emailed to Commissioners for review. AGENDA ITEM #9 — DISCUSSION REGARDING FY2011-12 ACHIEVEMENTS AND RECOMMENDING PRIORITIES AND COUNCIL GOALS FOR FY12-13 BUDGET PROCESS PER THE STRATEGIC PLAN Chair Koester Thomas called for discussion about recommending Council priorities for FY12-13. At the request of Chair Koester Thomas, Ms. Ghetti to reviewed the 4th Quarter Report on Council Goals for FY2010-11, which had been previously distributed to the Commissioners in attendance(copy attached). Discussion ensued about the fact that each of the goals were reported as being at or near 100% complete and that, while specific tasks may have been 100% accomplished, the overarching goals were not achieved. It was noted that without specific metrics relating to each goal, there is no way to measure whether the goals are complete or incomplete. Chair Koester Thomas then asked Ms. Ghetti to report on progress toward achieving Council's FY11-12 goals and objectives. Ms. Ghetti noted that Make A Difference Day is a new event that will mirror the national event; that the Town has reduced rental fees at the Community Center and restructured fees;that the Town has scheduled Citizen Town Halls; that progress is being made toward environmental sustainability in that the Town's energy control systems have been upgraded and a grant has been received to install solar shades; that the Public Art Walk • Page 2 of 4 L is once again being held; that the Town is encouraging use of E-fountain: that the Town is providing additional recreation opportunities; that the sidewalk plan is complete; and that plans are underway for events celebrating the State Centennial on February 12, 2012. Chair Koester Thomas inquired of Ms. Ghetti about a specific Council Goal for FY11-12 relating to creating a Town calendar of events,pointing out that no funding was allocated in the budget to accomplish that goal. Ms. Ghetti stated that the calendar is essentially in place and that no funds were allocated because the project only involved staff time to collect and compile events. Chair Koester Thomas stated that a copy of the goals and objectives that were adopted by the Council for FY2011-12 will be forwarded to the Commissioners. Chair Koester Thomas asked for discussion on identifying strategic directions that should be recommended for incorporation in Council's FY12-13 goals and objectives. Commissioner Dooley distributed a handout (copy attached) in which he used Maslow's Hierarchy as a template to prioritize the Strategic Values of Strategic Plan 2010. He reviewed the pyramid and discussed his rationale. He pointed out the need for Council to exclusively focus on the basic level of pyramid, i.e., Infrastucture and Economic Vitality, inasmuch as it is the foundation for achieving all other levels of the pyramid. Commissioner Magazine agreed but recommended that the base level be labeled"Financial Sustainability. Chair Koester Thomas pointed out that Strategic Direction EV2 deals with a sustainable local financing structure and she suggested recommending that Council incorporate that in their FY12-13 goals, together with EV1 (develop economic development plan), I2 (lower reliance on state revenues by developing reliable funding for infrastructure maintenance), I4 (partner to assist in amenity upkeep), and CR6 (evaluate customer satisfaction with Town services). She also recommended taking into account Vice Chair Dunham's earlier suggestions that could potentially be incorporated into Economic Vitality, i.e., population diversity and identifying the Town's market niche, as well as his suggestions that could be potentially incorporated into Maintain and Improve Community Infrastructure,i.e.,utilizing bonds for specific community rehabilitation projects. The Commission agreed that these recommendations should be presented to Council in narrative form initially, followed by enumerating the specific Strategic Direction to which each recommendation is related. Chair Koester Thomas recapped the discussion stating that the Commissions had agreed to identify strategic directives as priorities, offering specific strategies or initiatives and possibly including deadlines or quantifiable measures. She also stated the Commissions intention to focus on Financial Sustainability. Following discussion about when these recommendations on Council goals should be presented, Chair Koester Thomas noted that Council will not be setting their goals and objectives until after the first of next year and therefore options exist to present the Commission's recommendations outside the upcoming joint meeting with Council, e.g., in a regular Council meeting or as a memorandum. She stated that the presentation method needs to be established along with the specific recommendations. The Commissioners concurred that separating recommendations on Council goals from the discussion at the joint meeting with Council about the Blue Ribbon Committee would be optimal. The Commission further discussed the agenda for the joint meeting with Council and reached consensus that it should center on the Blue Ribbon Committee and ongoing projects for SPAC. Page 3 of 4 Chair Koester Thomas noted that Commissioner Dooley's visual based on Maslow's Hierarchy is important. She suggested that SPAC should come back at the next meeting and take a look at the two values at the base of the pyramid and perhaps suggest to Council not just initiatives but tasks to be accomplished relative to each. Commissioner Magazine reiterated that the base level of the pyramid should tie to Financial Stability. Commissioner Dooley stated the need to ask Council to develop metrics to measure achievement of each goal. Chair Koester Thomas encouraged Commissioner to contemplate such metrics when recommending specific initiatives. Commissioner DePorter asked if Council might be interested in working with ASU faculty to establish SMART goals. Suggestions offered in subsequent discussion were that perhaps staff or SPAC would be the correct audience to work with ASU on SMART goals; that SPAC should point out the need for measurable goals when it makes its recommendations to Council; and that differentiation should be made between long-term and short-term goals. AGENDA ITEM#10—SCHEDULE UPCOMING MEETING DATES It was noted that SPAC meetings currently scheduled are at 3:00 p.m. on October 18, 2011, a 5:30 p.m. joint meeting with Town Council on October 24, 2011, and at 3:00 p.m. on November 16, 2011. Following discussion, an additional meeting was scheduled at 3:00 p.m. on December 7, 2011. AGENDA ITEM#10—ADJOURN Commissioner Magazine MOVED to adjourn at 4:56 p.m. and Commissioner Dooley SECONDED the motion, • which CARRIED UNANIMOUSLY by those present. Li,Qae Shaunna Williams, Recording Secretary J Page 4 of 4 Strategic Planning Advisory Commission Economic Update FY11-12 September 13, 2011 REVENUES Annual Revised Fund YTD July 2012 Budget Estimate General Fund $959,000 $12,645,479 $12,645,479 Highway User (HURF) $127,880 $1,162,452 $1,162,452 Excise (Downtown) $23,887 $272,136 $272,136 Special Revenue Funds $1,987 $1,514,820 $1,514,820 Debt Service Funds $53,516 $2,265,390 $2,265,390 Capital Projects $25,397 $14,072,091 $14,072,091 0 EXPENDITURES YTD July Annual Revised Fund 2012 Budget Estimate General Fund $1,016,922 $12,596,151 $12,596,151 Highway User (HURF) $105,489 $1,278,299 $1,278,299 Excise (Downtown) $4,880 $211,364 $211,364 Special Revenue Funds $2,259 $1,552,575 $1,552,575 Debt Service Funds $1,010 $5,452,971 $5,452,971 Capital Projects $128,850 $17,140,039 $17,140,039 July Local Sales Tax Revenues Incr/Decr July July July over Prior % of FY2010-11 FY2011-12 Budget Year Budget Construction $49,316 $51,369 $14,513 4.2% 354.0% Transportation/Utilities $130,997 $146,692 $123,114 12.0% 119.2% Wholesale/Retail $265,024 $272,465 $308,890 2.8% 88.2% Restaurant/Bars $39,663 $40,532 $44,238 2.2% 91.6% Real Estate $69,970 $50,269 $57,224 -28.2% 87.8% Services $18,985 $23,857 $21,573 25.7% 110.6% Misc. $24,745 $34,624 $58,500 39.9% 59.2% Grand Total All Categories $598,700 $619,808 $628,052 3.5% 98.7% July Retail Activity $aoo,000 $300,000 $zoo,000 - - %NO) $100,000 $o FY07-08 FY08-09 FY09-10 FY10.11 FY11-12 FY12 Budget July Restaurant/Bar Activity $so,000 $40,000 $30,000 - 1 $20,000 I I I $10,000 $o - FY07-O8 FY08-09 FY09-10 FY10-11 FY11-12 FY12Budget "'° Memo 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. LAs 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. Nit .00 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 Page 2 • 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 (0, 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. fiveyears, the Town's General(operating) General Fund Revenues In (in millions) revenues have dropped by nearly 30%(or nearly$5 $17 million).This drop in revenue has translated into service delivery impacts including program cuts, $16 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 $1c indicate that this trend seriously jeopardizes our future. $13 $12 FY07-08 ,Y08-09 FY09.10 F110-11 FY11-12 Page 1of3 t 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 $400,000 values have hit "the bottom". $350,000 $300,000 $250,000 $200,000 I , 0 0 0 0 CO CO 0 0 O 0 O O O O O O 0 0 O O O N N N N N N N IN IN N N m .a on _0 m .0 uo n m LL , Q LL Q 4Y LL �( LL Page 2 of 3 • 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 ''GAINy, (Ic ' ie to s fStrate is Plan 2010._ '44���A.•' Review/Revise Strategic Plan is a Strategic Plan and how will it be used? __.� ----- Aloecessful strategic plan is one that is integrated into the daily operations 115 • of an organization. In a municipal setting, staff and partner organizations use Mont v: the strategic plan to develop proposals and initiatives that implement ma an and Annual $eGoals Annual elements of the strategic plan; Council uses the strategic plan to evaluate all Strategic proposals. • Planning While a full update of a Strategic Plan is recommended periodically (every five411 Process4 years), the Strategic Plan should be reviewed annually and adjustments made as necessary. The cycle (right) outlines the annual use of the Strategic Plan. '" '" Our Vision Develop and Outline Action Adopt Budget Plan 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 1 Civic Responsibility balance with the Sonoran Desert; • Champion the diversity of experiences our residents bring j Our fosteropportunities for se Take ility for our community'sll residents to participateCen to our community and rely on this depth of experience top pfully innovatively address our challenges; 1'our community through accessible, responsive leadership. • Be economically sustainable and anchor our vitality in an !Strategic Directions active, vibrant town core that serves us culturally, socially I• CR 1 Foster an environment of accessible, responsive and economically; and, governance. • Be civic-minded and friendly, taking responsibility for our 1• CR 2 Discover, recognize and utilize the talents of our Town's success by building partnerships and investing our citizens and use these assets to address community needs. talent and resources. • CR 3 Foster a culture of public service and volunteerism. • CR 4 Implement a comprehensive communications plan to Civility encourage informed citizen participation in civic life. • CR 5 Support and develop programs that educate and Our Pledge Build a community in which all can feel valued, involve our youth in community governance. welcome and as though they belong. • CR 6 Evaluate customer satisfaction with Town services or Strategic Directions a regular basis and implement appropriate service • C 1 Practice the art of civility in all public settings and improvements. encourage those around you to do the same. • CR 7 Communicate the role of local government and • C 2 Support community events and activities that create clearly define the trade-offs between service levels and opportunities to build community and friendship. amenities and the associated costs so residents can make • C 3 Genuinely solicit and consider public and stakeholder informed choices. feedback as part of the decision-making process. • C 4 Be the friendliest place in the Valley. Education, Learning and Culture Environmental Stewardship Our Pledge Support quality, lifelong learning opportunities Our Pledge Preserve the natural beauty that surrounds us and and cultural assets that enrich our lives. protect it so future generations can enjoy it. Strategic Directions Strategic Directions • ELC 1 Partner with Fountain Hills'schools and other • ES 1 Educate residents about our environment to increase institutions to develop quality educational programming awareness and promote stewardship. and opportunities. • ES 2 Protect and enhance natural infrastructure, including • ELC 2 Support partners in providing arts and cultural native vegetation, terrain and open space. opportunities and amenities. • ES 3 Explore and implement new technologies and • ELC 3 Promote and celebrate cultural diversity. (larpportunities that will minimize noise, air and light pollution • ELC 4 Position the community's arts and cultural and reduce energy consumption. businesses, venues and amenities as economic drivers • ES 4 Promote water conservation and identify ways to use integrated into the Town's comprehensive economic of this precious desert resource wisely. strategy. • ES 5 Protect selected view sheds from development and • ELC 5 Encourage access to higher learning opportunities other manmade obstructions. or the establishment of an educational or training campus • ES 6 Improve access to the Sonoran Desert experience. within our community. Economic Vitality Maintain and Improve Community )ur Pledge Maintain a strong commitment to financial Infrastructure ;tability and local control, and will promote economic growth Our Pledge Maintain and improve our infrastructure to ensure hat leverages Fountain Hills'assets by building a dynamic, a high quality living experience, enhance economic opportunities liverse economy that supports our community's needs and !and support and protect property values and community )romotes successful businesses. ;investments. ;trategic Directions Strategic Directions EV 1 Develop a comprehensive economic development • I 1 Maintain a 5-year capital improvements plan that strategy for the Town's future and work with our partners includes programmed maintenance projects. to forward economic growth and awareness. • I 2 Lower the reliance on state revenues by developing a . EV 2 Develop and maintain a balanced, equitable, locally controlled, reliable funding source for infrastructure sustainable and local financing structure to support the maintenance. Town's core government services at desired service levels. • I 3 Maintain a current condition assessment of all roadways EV 3 Promote a mixed use core where residents can live, and sidewalks and prioritize and implement maintenance work, learn and play in an urban village setting, as efforts to minimize costly reconstruction. depicted in the Downtown Area Specific Plan (Downtown • I 4 Partner with local civic and social organizations to assist Vision Master Plan). in amenity upkeep and maintenance. EV 4 Promote retention, expansion and relocation of • I 5 Explore ways to reduce wear and tear on the quality businesses. transportation system including transit options and limiting c EV 5 Promote Fountain Hills as a visitor destination. truck traffic. EV 6 Identify a slate of economic development tools and • I 6 Coordinate closely with downtown development efforts strategies (including tax incentives, fee abatements, etc.) to ensure adequate infrastructure is planned and amenities to stimulate economic growth. identified and programmed. EV 7 Identify areas for redevelopment, revitalization or • I 7 Maintain an up-to-date impact fee structure and reuse. equitable development agreements to ensure new growth is EV 8 Promote unique and vibrant neighborhood and not a burden on existing residents and businesses. business districts. • I 8 Periodically meet with other community service provider. to do joint planning and ensure that service providers can tecreational Opportunities and Amenities accommodate new customers resulting from growth wit out compromising service levels to existing residents and )ur Pledge Make Fountain Hills a pedestrian- and bicycle- businesses. riendly community by contributing to healthy lifestyles, • I 9 Build a protected fund to finance the major periodic )roviding recreational and physical exercise opportunities to maintenance of community facilities. :itizens, and taking advantage of Fountain Hills'closeness to he Sonoran Desert. Public Safety, Health and Welfare krategic Directions R 1 Offer a wide range of cost-effective and accessible Our Pledge Protect the health and safety of our community programs and services for all ages to promote a healthy and promote a high quality life. and active community. Strategic Directions R 2 Provide an interconnected, multi-use trail and bicycle • P 1 Promote and enhance community-based partnerships in system that promotes active living, physical activity, crime prevention, fire and emergency preparedness. education and appreciation of our parks and natural • P 2 Reduce risk and increase safety through"community resources. policing"and community-based fire prevention programs. R 3 Support local organizations in providing affordable • P 3 Ensure appropriate service levels for public safety. quality programs to promote recreational, sports, fitness • P 4 Explore health and welfare opportunities, including the and wellness programs for all ages. creation of a small hospital or a niche health-related service R 4 Support community events and activities that create cluster. opportunities to build community and neighborhood • P 5 Support health and wellness instruction throughout the identity. community. \,\ % 1 1 /,/ Idea Box While the Strategic Plan itself is intended to provide broad strategic guidance, each year Council will provide more specific direction on its annual course which will be used by staff to develop an action plan. The Ide- o) section of the plan is a collection of specific ideas offered by residents and stakeholders. The ideas are '/,- \\ presented neither with endorsement nor evaluation by the Town. The Idea Box is intended to serve as a repository of tools and activities that can be considered to build the Town's annual action plan. If you have some ideas you'd like included in the Idea Box, please provide them by visiting the Strategic Plan's Web site at: www.fh.az.gov/strategic-plan.aspx Fountain Hills Strategic Plan 201 4th QUARTER REPORT ON COUNCIL GOALS FOR FY2OIO-11 AND OTHER ACCOMPLISHMENTS OVERVIEW During a goal setting retreat on January 14, 2010, the Town Council established eight primary goals for Fiscal Year 2010-11. Management staff held a follow-up meeting to develop specific objectives and identify resources necessary to carry out the goals established by the Council. The following graph depicts progress that the staff has made toward achieving all goals since the beginning of FY2010-11: PROGRESS TO COUNCIL GOALS FOR FISCAL YEAR 2010-11 Education,Learning,and Culture - ■■■■■■■■ Environmental Stewardship Civility - 1111111E11111111111111111 Civic Responsibility ■u.■■■■ Economic Vitality us...... Maintain and Improve Community Infrastructure u■■■■■.■ Public Safety,Health,and Welfare Quarter 1 Recreational Opportunities and Amenities •Quarter 2 •Quarter 3 0 10 20 30 40 50 60 70 80 90 100 •Quarter4 PERCENTCOMPLETE Page 1 of 14 • Goal1 Education, Learning, and Culture: Enrich our community by providing citizens with opportunities to improve their own lives and the lives of others. Percent Complete: 95% a. Investigate feasibility of partnering with FHUSD and/or other learning institutions to develop a program of educational opportunities. Staff developed a "Citizen's Academy" program for residents of Fountain Hills. The program included six sessions where residents registered and attended to learn about the Town government and community partnerships. The academy was conducted on Wednesday evenings, beginning February 2, and a total of 12 participants received certificates for completing the class. Staff is already planning on having the program again next year. Feedback gathered from this year's participants will be used to help plan for next year. The Fountain Hills Unified School District is discussing the possibility of offering adult or continuing educational opportunities for residents and/or students. The focus of their discussions has been on the potential for offering classes online. However, with the end of the school year, this goal is likely to be carried over to the next school year. FHUSD Superintendent Bill Myhr was an invited guest at a recent meeting to discuss with the Maricopa Community College Board the possibilities associated with a higher education extension in Fountain Hills. Superintendent Myhr specifically pointed out the capabilities and availability of the Learning Center as a possible higher education venue. b. Partner with the Veterans of Foreign Wars to hold a "Freedom Series" at the Community Center highlighting the extraordinary people within our own community, with this year's series focusing on patriots who have demonstrated sacrifice to the nation. On Thursday, March 10, the first presentation in the Freedom Series debuted at the Community Center with close to 100 citizens on hand, as both Phil Yin and Boris Biloskirka shared the stories of the their remarkable journeys. Their stories, inspirational and awe inspiring,were taped and aired on Channel 11. c. Partner with Ft. McDowell to present a "Yavapai Culture Day." Staff has met with representatives of Fort McDowell Yavapai Nation (FMYN) and presented this initiative. The Tribal Council did not express an interest in offering this activity. However, the Centennial Committee will be working with Fort McDowell relative to the possible inclusion of an event as part of the Centennial celebration. A member of FMYN staff is serving on the local Centennial Celebration Committee. d. Create opportunities to showcase local performing arts talent. A performance by a local artist kicked off a number of concerts that were offered this spring in Fountain Park. e. Encourage citizen development of more special events by simplifying/streamlining the Special Event Permit application and process. Department staff and the Special Event Committee continue to work to streamline the process for permits. A presentation to the Council was made in September and the group is planning to complete their work and make a presentation to the Council, which was originally scheduled for May but is now on the August 18 Council agenda. f. Encourage public art and continue art walks. A number of additional pieces of art have been donated this year, with several more scheduled for consideration. Art work has been added to the Town Hall lobby, Fountain Park, the courtyard by the Community Center, and in the Community Center. The final docent led art walk of the season will take place on April 2. A number of special groups were accommodated this season,with docents leading art Page 2 of 14 walks specifically for that group. Total participation for the second year of the program was over 125 people,either individually or in groups. 1111) Goal 2 Environmental Stewardship: Enrich our community by promoting and preserving our Town's natural assets. Percent Complete: 100% a. Partner with the McDowell Mountain Preservation Commission to develop educational experiences and provide a workshop to teach residents about our natural environment. The McDowell Mountain Preservation Commission worked with staff to provide a variety of events in October to highlight McDowell Mountain Month. A number of guided hikes were conducted over the winter and special activities were held at the trailhead at Eagles Nest. The Commission had a booth at the Chamber's Art Fair in November to distribute maps of the trails in the Preserve and also had a booth at the Chamber's Great Fair event in February. b. Rezone all Town washes as open space to provide an additional measure of protection to the washes. Goal removed by Council. c. Develop a plan to establish a storm water utility. Staff held three internal meetings during the months of August and September to develop a proposal for Council consideration of a future stormwater utility and associated fee. The research is based on the following elements of stormwater costs: a. Street sweeping; b. Catch basin maintenance, inspection, and cleaning; c. Wash maintenance; d. Stormwater small system modifications and repairs; e. Public awareness/education;and f. State/federal regulatory compliance(including dams). The next step was to develop the methodology for calculating any stormwater fee, as well as determining how much the fee would be. A plan for such a fee was presented on October 28 at Council's Annual Planning Retreat. Subsequent to this presentation, staff acquired and provided other information requested by Council. Administration stands ready to provide additional information or to advise the Council with regard to implementation as requested. Staff considers the item complete until further direction from Council. d. Continue to support water conservation programs, e.g., use of effluent. The Town currently works with the Sanitary District in the uses of effluent water for landscaping in Golden Eagle, Desert Vista and Fountain Park. The Town holds a Type 2, Class A+ Reclaimed Water General Permit through the Arizona Department of Environmental Quality. The Town is a member of "Water Use It Wisely", an organization that helps promote water conservation through Public Service Announcements, printed material, and special event appearances. Staff participates annually in the Chamber's art show by hosting an informational booth where water conservation material is available to those in attendance. "I) Page 3 of 14 Goal 3 Civility: Enrich our community by promoting internal civility and promoting partnerships and other opportunities that bring citizens together and foster an atmosphere of neighborliness and cooperation. Percent Complete: 90% a. Develop for Council ratification a policy regarding appropriate behavior with regard to public and internal interactions. Council has indicated a desire to revisit all Council Rules of Procedures, including the Code of Conduct. Staff has expressed a willingness to facilitate a team approach to identifying possible modifications. The consensus of the Council, however, suggested that Council members would, over time, bring forward various proposed changes to the collective body for their consideration. Councilmembers discussed forwarding suggestions to the Town Manager for consolidation prior to their discussions, which are tentatively scheduled to take place in FY2011-12. Staff remains willing to assist the Council in this endeavor. b. Present a civility and teamwork workshop to help Council and staff come together and improve interaction. Staff is in the process of developing an "Employee Appreciation Day" that will be held in August, after the close of the current fiscal year. At this event, elected officials will be invited to engage with employees in team building exercises and discussions regarding how civility and teamwork can be improved in Town Hall and in the community. c. Develop and execute a program to proactively distribute factual information internally and externally by utilizing Town communication resources. L The Town Manager is now directly involved in the production of the monthly citizen newsletter and regularly meets with local press members. Staff has developed a new policy and plan relative to the use of Channel 11 that will broaden opportunities to use this medium. In addition, a series of community outreach meetings were held to provide residents with factual information about the budget and the road bond. Administration is also exploring the feasibility of implementing a new, web-based product called Vocus that could expand our outreach. It enables the user to magnify and intensify the distribution of information. Finally, the Town began posting weekly reports on the Town website. It is our intent that such will facilitate citizen access to the latest news regarding Town activities. d. Partner with non-profits, HOAs and faith-based organizations to promote"Meet Your Neighbor Week." Meet Your Neighbor Week was held the week of December 12, 2010. A Mayoral proclamation and publicity preceded this event. Publicity included press releases, Twitter, Facebook, website, letters to faith-based organizations and service clubs, and a staff presentation to volunteers. e. Maintain strong lines of communication with outside jurisdictions in order to identify opportunities for partnerships. Staff continues its interactions with myriad external organizations such as the Maricopa Association of Governments, the Arizona Economic Development Association, the Greater Phoenix Economic Council, the League of Cities and Towns, the International City and County Management Association, the Government Finance Officers Association, and other organizations. In addition,staff organized and held a Collaboration Summit on January 13 to identify opportunities for partnerships. We enjoyed participation from Scottsdale, Payson, Paradise Valley, Queen Creek, and the Fort McDowell Yavapai Nation. Several issues were identified in that meeting that could lend themselves to new or enhanced collaborations. A follow-up meeting was held with the Ft. McDowell Yavapai Nation, Mesa, and Queen Creek to formulate a plan for addressing East Valley circulation. It was decided that the group should seek guidance from MAG staff specific to how the group should move projects forward. A subsequent meeting was indeed held with MAG staff. The recommendation remains to work with staff to place these projects on the Regional Transportation Plan update in 2012. Page 4 of 14 • Goal 4 J Civic Responsibility: Enrich our community by identifying and supporting opportunities for volunteerism that meaningfully impact our quality of life, promote community pride and enhance access to Town leadership. Percent Complete: 100% a. Partner with the Fountain Hills Cultural and Civic Association to encourage participation in the "Volunteer Fair." The Town of Fountain Hills joined in partnership with the Fountain Hills Cultural & Civic Association for the Second Annual Volunteer, Club & Organization Expo held on October 20, 2010. This event hosted 54 organizations and clubs from the community who had tables set up to provide information and answer questions. There were social organizations, service and support clubs, and clubs for kids and hobbyists. Residents were able to find out what volunteer activities most interest them. The EXPO was open to all ages and was free to participating groups and to the public. b. Continue to build upon the success of"Make a Difference Day." Last year the event was known as "Make a Difference Day," and this year it was called "Take Pride in Fountain Hills Day." This was an opportunity for residents to further enhance our beautiful Town by coming together and offering two to three hours of volunteer service. The event kick-off was held at Golden Eagle Park on Saturday, October 23. All ages were welcome. There were a variety of worksite projects ready for the 100-120 volunteers who participated. Projects included trash and weed pick-up at some of the schools, planting a wildflower and desert garden at Fountain Park, cleaning up around the Community Center, painting at Golden Eagle Park, and painting at the fire station. The Town also invited the Extended Hands Food Bank truck to be located at the Library parking lot from 9:00 a.m. to .4) noon in order to further community spirit with the opportunity to donate food. c. Work with the Mayor and Council to create a Community Enrichment Commission. Staff submitted a proposal to the Mayor regarding the formation of such a commission and the consolidation of other commissions. This item was discussed further by the Council at their October 12, 2010 Strategic Planning Workshop. No further direction was provided by Council to continue pursuing this initiative. Currently,discussions are on-going relative to the possibility of utilizing working groups as subsidiaries of commissions as a means of addressing critical and emerging community issues. We continue to talk about this idea as an alternative to commissions. The Town Attorney states that such working groups would not be subject to the Open Meetings Law. d. Remain engaged as a good regional and state partner to distribute information in order to inform voters The Clerk's office has dispersed relevant voter information to Customer Service Representatives, staff, and volunteers working at Town Hall and the Community Center,which includes such items as to how to look up voters' assigned polling locations on the county's website, how to download a sample ballots on-line, access election information from the Maricopa County Election website in order to assist voters during elections. The Clerk's office opens at 6:00 a.m. and remains accessible to the public on Election Day, as support for the County, to ensure that electors have access to someone locally who can assist with election questions should the need arise. The Clerk's office is a Post Election Identification Site for Maricopa County for the convenience of those electors who are required to bring in additional personal identification in order to have their votes counted. Presentations were made to Town volunteers attending the August Cooler on August 3, 2010 and to the Men's Discussion Group on August 9, 2010 relating to where to find 2010 candidate information, obtaining an early mail ballot, what the permanent early voting list is, questions on the voter registration form,and an overview of election information available to the public on the Town's website, (0), Page 5of14 the Maricopa County Recorder's website, as well as the Secretary of State's website. The presentation (111, at the August Cooler also included an overview of the Clerk's role and areas of responsibilities. On July 22 and 23, 2010 the Town hosted the 2010 Annual Arizona Municipal Clerks'Association Election Training sponsored by the League of Arizona Cities and Towns, which provided an opportunity for city, town, state, and county election officials to meet, exchange ideas, and review changes in state and federal law that affect the state's election process. The Clerk attends monthly Maricopa County Community Network Meetings along with a variety of valley-wide community based groups at the County Recorder's MCTEC Building. These meetings provide an opportunity to discuss a variety of election related topics and review pre and post election issues or concerns. The Clerk continues to participate in the Arizona Municipal Clerks Association and the Election Officials of Arizona. The Clerk attended the Election Officials of Arizona Spring Workshop on April 7 and 8, which included a discussion on redistricting. e. Remain engaged and supportive of regional and state partnerships. The Town continues its cooperation with MAG and ADOT to reconstruct Shea Blvd. and provide walkways to various parts of the Town. In addition, staff collaborated with other smaller cities to address the threats to library support. The staff's organization of the 1st Annual Collaboration Summit also aided in keeping the Town engaged in regional partnerships. Recently, the Town was successful in securing a partnership with Maricopa County Department of Transportation to resurface Shea Blvd. between Highway 87 and the Town Limits. This was accomplished at no cost to the Town and will be coordinated with work that is slated for the intersection of Saguaro and Shea. The Town has also held a ® meeting with local and state education leaders/officials to identify potential higher education potentials in Fountain Hills. A meeting was held with officials in three other jurisdictions to discuss East Valley transportation needs and possibly identify a course of action with regard to encouraging the county and state to address these deficiencies. Economic development staff continues to remain engaged with Greater Phoenix Economic Council (GPEC), Arizona Commerce Authority (ACA), Arizona Association for Economic Development (AAED), International Council of Shopping Centers (ICSC), as well as with property owners and leasing agents,to create visibility for Fountain Hills and present opportunities for business locations. This has resulted in opportunities to present informational packages on Fountain Hills to companies seeking expansions. This has also provided staff opportunities to work directly with companies. Goal 5 Economic Vitality: Enrich our community by partnering with local and/or regional organizations or citizens to promote an economically sound and sustainable environment in which to live,work, learn and play. Percent Complete: 100% a. Market the Town for business location and expansion. Retail Attraction: Retail attraction efforts continued during the fourth quarter. A two-prong approach was used to market the Fountain Hills area to the retail community in order to fill space in vacant shopping centers: (1) making direct contact with retailers or their representatives; and (2)working with leasing agents of retail space in the Fountain Hills market. Page 6 of 14 The Town attended the International Council of Shopping Centers (ICSC) retail trade show (ReCon). ReCon is the largest retail show of the year, with approximately 30,000 attendees. Appointments and contacts were made with targeted retailers, real estate professionals working with retailers, and shopping center owners. Based on the meetings, contacts and follow-up, two retailers anticipate moving forward with a location in the Fountain Hills market. Also, one retailer committed to review the Fountain Hills market again based on new and additional information provided. Additionally, meetings at the ReCon tradeshow included property owners and leasing agents of retail properties in Fountain Hills. This resulted in further interactions with the new owners of the Eagle Mountain Village shopping center and owners of two other retail plazas, including discussions in regard to working with them to tenant and improve visibility of their property. Four Peaks Plaza (Target center) has changed leasing agents. Staff met with two of the new leasing agents to discuss their marketing efforts and tenanting plans for the plaza, as well as any changes anticipated in the existing tenant mix. Their focus, as the new leasing agents, is to bring "daily needs" shops into the center. In addition, leads were exchanged from the ICSC retail trade show (ReCon) in order for the Town and the leasing agents to cross-promote the center to targeted retailers. As a result of the meeting, staff is now working with the leasing agents and providing market information to secure a large, nationally known retailer. Results • Created connections with two owners representing three retail shopping plazas in Fountain Hills. • Created connections with new leasing agents of the largest retail center in Fountain Hills to assist with coordination and marketing of available space. • Senor Taco submitted tenant improvement plans for review after staff worked with their representative to receive approval of their concept plan for a second restaurant in Fountain Hills. • Obtained a commitment from a national chain franchisee for a Fountain Hills location by working with leasing agent and property owner. Project still in process. • Followed a lead to discuss several location options with a national retailer for 5,000 square feet of space. Retailer has narrowed location options and is working on negotiating space. Project still in process. • Worked with an international company to attract their new health spa concept to Fountain Hills. Identified site options and secured a community visit by key individuals from company. Fountain Hills is the top contender for this project,which is still in process. Business Attraction: Activities have focused on identifying business types which will bring quality jobs to Fountain Hills, increase daytime population,and build the community's economic base. The strategy entails working closely with economic development partners at Greater Phoenix Economic Council (GPEC),Arizona Commerce Authority(ACA), and Arizona Association for Economic Development (AAED). The strategy also includes researching industry sectors operating in the community and developing an approach to target similar industry sectors. The analysis was completed to identify the existing business types (industry sectors) currently operating in Fountain Hills. The analysis identified the specific industry sectors most prevalent, with the purpose of focusing on attracting similar business sectors and, therefore, those most likely to be successful if targeted for attraction to Fountain Hills. The top sectors were identified and crossed-referenced with -41 Nidr Page 7 of 14 GPEC targeted industry sectors. Based on the research, a list of potential targeted businesses was compiled. Business attraction efforts have also included outreach and communication to owners and leasing agents of non-retail property in Fountain Hills. This included a meeting with owners and leasing agents of office space in order to share information on the completed industry sector research, discuss plans to target specific office users,and provide an opportunity for input and feedback. Also, in an effort to prepare for the targeted office users outreach and attraction campaign, staff coordinated and hosted a meeting in Fountain Hills with staff from GPEC. The meeting included a discussion of our target business sectors and identified ways in which GPEC can market location opportunities in Fountain Hills. The visit included a tour of available office space, as well as housing opportunities. To further business attractions goals, connection was also made with a Canadian Consulate Trade Commissioner. The outreach included discussing target business sectors that Fountain Hills is pursuing and opportunities for Canadian companies to locate in Fountain Hills. Enhancing Local Business Vitality: As a focus area, staff worked on supporting local business vitality through the Customer Loyalty Program. The 18-month long Customer Loyalty Program was wrapped up at the end of June. The shop local program encouraged residents and visitors to shop at participating businesses. Shoppers who filled the "loyalty cards"were entered in raffle drawings for prizes valued between$25 and$50. Results • Increased business participation by 24.1% from July 2010 to June 2011, with 67 businesses participating in the program. • Increased customer participation in the program by 718.4% from July 2010 to June 2011 (baseline in July 2010 was 38). Filled loyalty cards increased by 40.7% in the fourth quarter, growing from 221 to 311 cards at the end of June 2011, with a total of 311 completed (filled) customer loyalty cards collected. • A total of 69 raffle prizes were awarded. b. Enact land use regulations that encourage development in the downtown consistent the Downtown Vision Plan. Staff drafted a Planned Area Development (PAD) ordinance that will assist in the development of downtown parcels that are over five acres in size. This ordinance was approved by the Town Council in January. Staff revised the Town Center Commercial District (TCCD) regulations to allow for a more favorable mixed-use development pattern in the downtown area. Staff also reviewed the C-2 District regulations in an effort to identify potential amendments that will encourage development downtown in accordance with the Downtown Area Specific Plan. Staff received recommendations from Swaback Partners and the Urban Land Institute. Staff met with representatives of the Chamber of Commerce and BVAC for further input and discussion of possible regulatory modifications that could be proposed to Council which would create a more enticing environment for business location in the downtown area. Progress on this initiative, named "Project Vibrant," includes: (Of Page 8 of 14 • The Planning and Zoning Commission created a subcommittee to work with staff to review and potentially revise the noise ordinance as it relates to outdoor entertainment uses; • The sign ordinance is being re-examined with an eye toward creating a downtown area sign district with regulations that will facilitate a more vibrant and interesting signage mix; • The ordinance regulating Temporary Use Permits is being examined for ways of streamlining this process; possibly making the permits administrative,over-the-counter permits, rather than requiring the current 10-day minimum process; and • Staff is working with some downtown merchants to allow the use of portions of the public sidewalk and median for entertainment,dining and other activities. • Staff will be working with the"Sign Committee"to review the existing sign ordinance. • Staff is working on revisions to the Temporary Use Permit regulations to provide a more streamlined application process. c. Develop and issue a Request for Proposals to investigate the feasibility of public-private partnerships in the Lakeside District. • Contracted with Montgomery Engineering, a local engineering firm, to define the area of Fountain Park to be designated for conversion within the Lakeside District. A legal description and related maps were developed. The work was authorized on December 15,2010. Documents were received on February 15,2011. • Contracted with Montandan Farley Valuation Services on March 21 to appraise the newly defined area within the Lakeside District, as well as appraise the 46 acres of Ellman property designated as a future park site. The valuations will help determine if the newly designated parcel within the Lakeside District can be converted for private use. Per the federal grant used to develop Fountain Park, the park is to be used for public outdoor recreation in perpetuity unless a conversion is granted. That requires acquisition of land of equal or greater value to be used for the same purpose. Appraisals are expected no later than April 25. • Completed application for conversion is expected to be submitted to Arizona State Parks in early May. d. Investigate opportunities to bring a college or other educational outlet, a movie theater/entertainment venue,and a hospital to Fountain Hills. The Town met with Scottsdale Community College (SCC) representatives as a follow-up to the meeting and connections made during the third quarter where we discussed possible partnerships with the Town relative to bringing a higher education program/extension to Fountain Hills. In attendance from SCC were President Dr. Jan Gehler, Vice President of Academic Affairs Dr. Daniel Corr, and Vice President of Administrative Services Carl Couch. The discussions focused on reviewing potential areas where a need exists for program expansion and how Fountain Hills could assist in providing space solutions. No programs were identified as a potential fit for the Fountain Hills market. However, both the Town and SCC agreed to continue dialogue in the future as SCC would like to serve existing businesses with customized training programs if a need could be identified in specific areas. The Town met with a group to investigate the potential of bringing a second run movie theater complex to the community. The Town expressed our desire to encourage and assist the development of a movie complex in the community. We stated that our citizens have been very clear about their desire for an entertainment complex that included a movie theater component. Several potential locations were discussed. The group expressed their desire to investigate properties and continue the discussion once a suitable site has been secured. Town staff has not yet been able to identify a hospital opportunity for the Fountain Hills market. The ability to serve the community with other nearby facilities is often cited as a prohibiting factor. The 444)small market and seasonal population also seem to play a role in the lack of interest from existing Page 9 of 14 facilities for expansion into the market. Notwithstanding, other areas are being investigated for different types of medical treatment facilities which may provide opportunities for the Fountain Hills market. e. Assemble a citizen Blue Ribbon Committee to develop a financial roadmap for the Town's future. Staff received direction from Council to proceed with the feasibility study of a public safety district, as such formation would have a significant impact on the revenue structure of the Town. Staff recommended that no action be taken on the formation of the Blue Ribbon Committee until the final presentation of findings relative to the public safety district. Staff thereafter concluded a preliminary study of the public safety district idea and provided findings to the Council in executive session. Staff is currently working with the Mayor to establish a timetable and scope of work associated with a Blue Ribbon Committee. The Mayor has asked the Strategic Planning Advisory Commission to make a recommendation as to how the Town ought to proceed with the formation of such a committee. SPAC is currently working to develop the strategy. f. Prepare an Area Specific Plan for the Shea Boulevard corridor near Saguaro Boulevard, evaluating rezoning possibilities that would increase the inventory of commercially zoned land. Goal removed by Council. g. Partner with local and/or regional groups to participate in the Arizona Centennial. Councilmember Ginny Dickey and Community Services Director Mark Mayer are serving as committee co-chairs for this group. The full committee continues to meet as a group to discuss the local events that might be part of the Centennial Celebration. Currently, there are over 100 events on the list as potential local Centennial events. In addition,the group is working with the Ft. McDowell Yavapai Nation and has agreed to work cooperatively with the Tribe's Centennial Committee. An update was provided to Council in January. A kickoff of the local Centennial Celebration was held on Sunday, February 13, and included the dedication of the new sculpture entitled Power of Thought in the courtyard by the Community Center. In addition, the State Centennial Commission's Copper Chopper was displayed at the February Chamber Fair. The Committee has applied to the Arizona Centennial to be officially sanctioned as a Centennial Event. Goal 6 Maintain and Improve Community Infrastructure: Enrich our community by synergizing with local or regional organizations to improve and preserve our valuable public improvements. Percent Complete: 100% a. Develop a fiscal plan to get us back on track with the pavement management plan. Staff has developed a 35-year strategy for a pavement management plan to bring deteriorated roadways back up to standards and into a sustainable management cycle. This strategy and the accompanying fiscal plan, if implemented, will provide a roadmap of how to best address our transportation infrastructure. Included in the FY2011-12 budget is a proposal to ask the voters to authorize a bond issue in the amount of$29.6M for the pavement program through the next ten years. Council has approved a bond election for November of 2011,and staff has been making presentations to local citizens and business groups to present the facts regarding the proposed bond issue. b. Market Adopt-a-Street as an option to residents as well as businesses. 411110, Page 10 of 14 Two articles have appeared in the AveNEWS in the last four months promoting Adopt-a-Street as being available to individual residents. In addition, the Town Manager has met with the Adopt-a-Street administrator to clarify guidelines and policy associated with resident participation in Adopt-a-Street. c. Explore citizen satisfaction with Town services and infrastructure. Staff gathered sample citizen surveys from other municipalities and composed a draft citizen survey. The survey focused on measuring customer satisfaction with Town services. The Manager completed an analysis of the findings and submitted those results to Council and department heads. Results showed significant citizens satisfaction for most Town services. In addition, participants indicated what they thought the three most significant challenges are facing the Town. All data and answers to essay questions are available on the Town website for public inspection. d. Evaluate our Town's energy,technological,and connectivity potential. The Town has completed Level 2 Energy Audits on approximately 100,000 square feet of Town-owned buildings. The audits are part of the grant the Town received through the Arizona Commerce Department Energy Office. As part of these energy audits, the Town will also be registering its Town- owned buildings in the EPA's Energy Star "Portfolio Manager." This is a free, web-based program that helps track and monitor energy consumption for each building. It also has the ability to recognize ways to save energy and help organizations obtain the nationally recognized "Energy Star" rating for each building. As a result of the audits, it was determined that the Town would benefit the most by doing the following: updating our Energy Management System; installing five new separate mini-split AC units to service our IT server and telecommunications rooms; and conducting a lighting retrofit program in selected Town-owned buildings. After the new equipment is installed, the Town will be able to utilize the "Energy Star Portfolio Manager" program to track and monitor energy consumption for each of the buildings. Staff prepared documents to bid out the contract to upgrade the Town's Energy Management System and proposals have been received. The contract will go to the Council for approval at their j August 18 meeting. Goal 7 Public Safety, Health, and Welfare: Enrich our community by developing or partnering on programs that encourage citizens to actively participate in creating a safe and healthy Town. Percent Complete: 100% a. In cooperation with local businesses, reintroduce a program rewarding helmet use by youths. The Fire Department, in concert with La Scala Creamery,offered ice cream coupons to youths who were observed wearing their helmet while riding a bicycle. b. Continue"Public Safety Day"and build in more elements related to provident living. The Public Safety Advisory Commission coordinated the 2011 Public Safety Day, which was held on Saturday, February 5, at Fountain Park. The event was a resounding success and commission members have already started to coordinate the February 2012 program, which is scheduled for February 11, 2012 and is anticipated to have the same attendees. c. Work with the Maricopa County Sheriff's Office to introduce a Safe House program in Fountain Hills. The Public Safety Advisory Commission is working with MCSO to implement a Community Safe Place program in concert with the Block Watch program. The concept is that specific locations in the community will be designated as a safe place for children and/or young adults to seek help when they feel threatened. This program will likely continue through next fiscal year. The program was introduced informally to Council in June and a presentation was provided to employees on June 30. The Town 4444 Page 11 of 14 Manager also met with MCSO and the FHUSD superintendent to develop a communications strategy to ,,— be executed this fall or winter. d. Hold a "Community Health and Wellness Fair" in the spring at the Community Center. Funds for this program were eliminated from the proposed original budget due to anticipated budget revenue shortfalls. e. Actively participate with the Fountain Hills Youth Substance Abuse Prevention Coalition to reduce substance abuse in Fountain Hills. Staff met with the Coalition coordinator on October 7, 2010 to begin development of strategies and identify potential collaborative efforts. Meanwhile,the administrative policy addressing Channel 11 has been revisited to facilitate the cable casting of coalition informational meetings. Staff has met with coalition leaders to coordinate a legislative response to the passage of Prop. 203. On January 6, the Council approved "Town of Fountain Hills Zoning Ordinance Chapter 24 - Medical Marijuana Regulations." Staff continued to be active with the Coalition on various issues, including the High School Prom at the Radisson at Ft. McDowell, and the potential use of various strategies to combat possible substance abuse around that event. In addition, volunteers from the organization were very helpful in getting the word around regarding our Middle School Madness events for local youths held at the Community Center. A number of activities were held this summer which were targeted at middle school aged youths, including a number of Parties in the Park, a trip to Wet and Wild, and other events that were held in cooperation with the Coalition and the School Resource Officer, with funding provided by MCSO's Midnight Madness program. Goal 8 Recreational Opportunities and Amenities: Enrich our community by developing programs or empowering local organizations or citizens to create and promote activities/events and venues for all age groups. Percent Complete: 100% a. Develop an urban trail system master plan including connectivity between parks and other activity centers. Development Services staff held numerous meetings with Community Services staff, as well as the Town Manager, in order to identify and coordinate the Town's current and potential urban trail networks. Staff developed a draft urban trail master plan and compiled additional trail identification, e.g., difficulty level, and type (walking, biking, etc,). The plan was presented at Council's Annual Planning Retreat on October 28. This plan designated routes or circuits utilizing existing facilities and infrastructure. The objectives of the urban trail master plan are (1) encourage healthy recreational choices that increase physical activity; (2) encourage citizen use of trails and walkways; (3) make optimal use of existing bike lanes, sidewalks, and trails; and (4) connect points of interest with non-motorized transportation routes. The FY2011-12 budget proposes marketing and trail improvements. A consultant is currently working on a sign package for the Urban Trails Plan, which is scheduled to be unveiled this fall. b. Begin to develop and present programs for 5-12 grade students at the Community Center in cooperation with the Boys and Girls Club. Activities for grades 5-12 at the Community Center began earlier this fall with an interactive computer games vendor at the facility. More effort was made to program for and attract middle school age yout hs to these events. This approach worked, as more than 150 youths participated in the most recent Page 12 of 14 • event, Middle School Madness, at the Community Center. Similar events are being planned to begin again this fall. (11 c. Develop and begin implementing a plan for making trails more visible and better used by residents. A series of maps has been developed that shows all of the trails in the developed portions of Town, including the Preserve and the ones adjacent to Fountain Park. In addition, a second map has been developed that shows not only the trails in Town but those in the adjacent McDowell Mountain Regional Park and in Scottsdale Sonoran Preserve. These maps are on the Town's website and printed copies are available on the Town kiosks. The Town's Trails and Preserve page on the website was updated with additional information. A series of themed hikes into the Preserve were again offered this past spring and winter. The themed hikes have proven popular. This season's hike series began in early January and continued through early April. OTHER ACCOMPLISHMENTS • Staff participates in the grade school's annual science night by presenting educational material to students and family members on the importance of storm water pollution prevention and recycling. • A series of themed guided hikes are being held in the Preserve this year and attendance for these hikes has been very good. The themed hikes are led by volunteers who are knowledgeable on various topics. • The McDowell Mountain Preservation Commission staffed a booth at both of the fairs that are hosted by the Chamber of Commerce. Information regarding access to the Preserve and its trails was distributed to the public. • Staff coordinated a paper shredding event in the fall of 2010 and will hold another paper shredding event in April of 2011 in conjunction with an electronics recycling event. • Development Services staff has meet with representatives from the City of Scottsdale to discuss the possibility of Scottsdale providing emergency and on-call services related to traffic signal maintenance through an Intergovernmental Agreement. • Approval was given to provide crack sealing and an overlay to the tennis courts and basketball courts at Golden Eagle Park and to the two sets of pickleball courts at the High School. Work is to be completed before the end of the fiscal year. • Council approved a contingency fund transfer to replace inefficient pumps in the Physical Plant and air handler heating coils at the Community Center and Library. • Fire Chief Scott LaGreca has discussed with Mr. Bob Couture, Fountain Hills High School's Career and Technical Education Department, the possibility of producing a Public Safety Announcement on bike/helmet safety and is in the process of reviewing the past program for lessons learned in order to improve and reintroduce the program. A grant was submitted to purchase equipment to assist the School District with the goal of Channel 99 going operational. This will allow the Fire Department/Town to have the High School produce PSAs to be aired on Channels 11 and 99. • Senior Services hosted a number of classes and seminars promoting health and welfare issues including the following: Page 13 of 14 • 411V o Dining for Wellness o How Medicines Work o Heart Attack Awareness o Sleep Necessity and Disorders o Keeping Your Bones Healthy o Various other educational seminars • Updating trail maps for the Preserve. • Installation of trail signage in the Preserve. • Staff is working with McDowell Mountain Preservation Commission on the possibility of adding street signage to better direct people to the Eagle Nest access to our trail system in the Preserve. • Installing trail maps that can be downloaded on the Town's website, and making copies of maps available at the Town Hall and Community Center front desks and kiosks. • Working with our Sonoran Conservancy counterparts in Scottsdale to create a link to the trail system through our Preserve. • The Community Services Department reassumed the responsibility from the Chamber of Commerce for the St. Patrick's Day event. Despite a limited budget for dye only and a short timeframe to plan, the event was heavily attended. The Town partnered with the Am Vets and the VFW to hold the event. ® • The recent professional disc golf event and the newly created public event that took place in Fountain Park post event, with music and various food and beverage items, was also well attended for a first time event. • The Fountain Hills Botanical Garden Society has now created a second looped trail in the Desert Botanical Garden. Signage and benches are being added to the trail, which extends up the site past the vintage dam on the site. Maps of the site for users and the map in the trailhead kiosk have been updated and are showing the new loop. • The new event, Mountain to Fountain, was partially coordinated through the Community Services Department, including the concluding public event which included music,food and beverage. There were almost 900 participants in the race. The Town partnered with the race club that ran the event, Am Vets, VFW and Kiwanis for the after-party. • In August the Town of Fountain Hills was named a 2010 Playful City USA Community by non-profit KaBOOM. Our community was one of only 118 communities across the country to earn this designation. Page 14 of 14 0 cts cz E v z f o a W .0, g) LI) a) • z "Z-6 c6 W ii z co Cl. cz z V Af.V Memo • 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 L 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. I P % 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 *10 Page 2 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 million).This drop in revenue has translated into service delivery impacts including program cuts, $16 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 indicate that this trend seriously jeopardizes our future. 513 $12 FY 07-O8 'Y 08-09 FY 09.10 FY 10.11 FY11-12 Page 1 of 3 4 D I 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 .00 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 ssoo,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 $400,000 - values have hit "the bottom". $350,000 $300,000 $250,000 $200,000 LID Vr r N co co O 0 0 0 ti 0 0 0 0 0 0 0 0 - 0 0 0 0 0 0 O O 0 O 0 N N NINNNN N N N N 00 n CO n m s 40 a CO .57 0) a D v ¢ ID ¢ 0 a L < ti LL Page 2 of 3 Proposed Work Program (byThe 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? tr, • 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