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Home My WebLink AboutSPAC.2011.0419.Minutes TOWN OF FOUNTAIN HILLS MINUTES OF THE FOUNTAIN HILLS STRATEGIC PLANNING ADVISORY COMMISSION MEETING April 19,2011 AGENDA ITEM#1 —CALL TO ORDER Chair Koester Thomas called the meeting to order in the Navajo Room of the Fountain Hills Community Center at 3:05 p.m. AGENDA ITEM#2—ROLL CALL Present for roll call were the following members of the Strategic Planning Advisory Commission: Commissioner Mike Dooley, Vice Chair Curt Dunham, Chair Audra Koester Thomas, Commissioner Alan Magazine, and Commissioner Rich Schultz. Commissioner Barry Spiker attended via teleconference. Youth Commissioner Katie Myer was absent from the meeting. Present from Town staff were Town Manager Rick Davis 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 APPROVIN G MEETING MINUTES OF MARCH 15,2011 Commissioner Magazine MOVED to approve the March 15, 2011 meeting minutes and Commissioner Dooley SECONDED the motion, which CARRIED UNANIMOUSLY by those present. AGENDA ITEM#5—TOWN MANAGER'S UPDATE Mr. Davis reported that 87% of households that have signed up for trash service thus far with Allied Waste have elected the option for one trash and one recycle pickup each week. He stated that construction will begin in one week on the Shea Gap project, which is funded by ARRA. He reported that he was part of a group that met with MAG regarding improved east valley circulation in an effort to place a high-capacity corridor in or around the existing Usery Pass Road on the Regional Transportation Plan. He noted that a meeting between Town and Maricopa Community College representatives has taken place to explore obtaining an educational branch in Fountain Hills; a follow-up meeting between the Town's Economic Development Administrator and the President of Scottsdale Community College will occur in May to further explore options. Finally, he reported on economic development efforts, including potential prospects and expansions, as well as a new focus on office prospects to increase the daytime population in Town. Commissioners asked questions of Mr. Davis to clarify portions of his report. AGENDA ITEM#6—UPDATE ON TOWN FINANCES Mr. Davis reported that the Executive Budget Committee would be meeting to address the $515,000 budget deficit that resulted when state shared revenues were decreased due to the 2010 Census. He stated that proposed options would need to be equitable, sustainable, and maintain organizational integrity. He Page 1 of 2 indicated that, among other things, the committee will discuss raising the telecommunications/utility tax from 2.6 to 4%and restructuring debt service. Mr. Davis responded to questions from the Commissioners • relative to his report. 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 distributed copies of the narrative that the Commission has been crafting (copy attached), noting that the revenue forecast chart has been eliminated. Commissioner Dooley pointed out several reasons why the Commission may not be pursuing the proper strategy at the present time, noting that forming a Blue Ribbon Committee now could potentially expose committee members to chastisement or ridicule. A lengthy discussion ensued regarding the urgency of planning for the Town's future and relative to irrefutable data that is now available, i.e., facts, realities and trends that include the Town's decreased population and resultant budget deficit, as well as the current issues faced by the Fountain Hills Unified School District. Based on the discussion, a consensus emerged that SPAC should continue on its present course, but that the narrative/recruitment tool should focus less on a financial and more on a socioeconomic solution for the Town. Discussion then turned to structuring the narrative and identifying potential Blue Ribbon Committee members. Chair Koester Thomas noted the following action items: 1. Finalize the campaign piece to build the Blue Ribbon Committee; 2. Identify co-chairs for the Blue Ribbon Committee; 3. Outline a timeline for building the Blue Ribbon Committee; and 4. Begin a discussion on how to craft the process to form the Blue Ribbon Committee. Chair Koester Thomas stated that Commissioners would receive a revised narrative by May 3 for review/redline. Vice Chair Dunham volunteered to draft questions for potential inclusion in the statement prior to the next SPAC meeting. AGENDA ITEM#8—SCHEDULE UPCOMING MEETINGS It was noted that SPAC Special Sessions have previously been scheduled on May 17, 2011 and June 21, 2011. An additional Work Session was scheduled on July 13, 2011. AGENDA ITEM#9—ADJOURN Commissioner Dooley MOVED to adjourn at 5:09 p.m. and Commissioner Schultz SECONDED the motion,which CARRIED UNANIMOUSLY by those present. Shaunna Williams, Recording Secretary Page 2 of 2 The Realities and Challenges The Town of Fountain Hills has long embraced a strategic planning process that has focused on the long-term viability of the community. 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 spending statewide and a lowering of revenues to almost all government agencies in Arizona. The State of Arizona is even threatening to siphon off other locally-shared revenues as it tries to close its deficit of over$1 billion. The Town's fiscal year (FY) 2005-2006 General (operating) Fund revenues were $17.2 million. Compare it to the Town's current General (operating) budget (FY 2010-2011), $12.6 million. In five years the Town's revenues have dropped by nearly 30% (or nearly$5 million). This drop in revenue has translated into service delivery impacts including program cuts, staffing reductions and very concerning deferrals of infrastructure maintenance. While everyone has tightened belts,the projected long-term costs of operating and maintaining our community indicate that this trend cannot continue. General Fund Revenues $1s.0 $16.0 $14.0 j 3¢as ' j :::: I1IIll FY0607 FY0708 FY08-09 F10410 FY10-11 FM 12 We need your help The Town's long-term financial instability will make implementing the vision and fulfilling the values articulated by residents difficult, and as such, the Strategic Plan's 2010 principal recommendation was to re-initiate a process to review and recommend a financing structure and implement policies by which the Town's financial stability can be achieved. We're asking for your help and for you to join Council's citizen blue ribbon committee to develop a financial roadmap for the Town's future. Sources: Revenue Enhancement Analysis(2007); Fountain Hills Strategic Plan (2010),Town of Fountain Hills(2011) DRAFT—For Discussion Purposes Only