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Home My WebLink AboutSPAC.2011.0517.Minutes { TOWN OF FOUNTAIN HILLS MINUTES OF THE FOUNTAIN HILLS STRATEGIC PLANNING ADVISORY COMMISSION MEETING May 17,2011 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 3:04 p.m. AGENDA ITEM#2—ROLL CALL Present for roll call were the following members of the Strategic Planning Advisory Commission: Vice Chair Curt Dunham, Chair Audra Koester Thomas, Commissioner Alan Magazine, Commissioner Rich Schultz, and Commissioner Barry Spiker. Commissioner Mike Dooley and Youth Commissioner Katie Myer were absent from the meeting. Present from Town staff were Town Manager Rick Davis, Deputy 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 MARCH 15,2011 Commissioner Magazine MOVED to approve the April 19, 2011 meeting minutes and Commissioner Schultz 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 with Allied Waste to date have chosen one trash and one recycle pickup per week. He stated that Allied Waste will make a presentation regarding implementation at the Town Council meeting on May 19. He noted that construction on the Shea Gap project will be nearing completion by the middle of July. With respect to Fountain Lake water quality, he reported that a committee, consisting of representatives from the Town and the Sanitary District, is exploring improvement of the water quality by circulation, as well as the possibility of making the Sanitary District permanently responsible for water quality and for the fountain. AGENDA ITEM#6—UPDATE ON TOWN FINANCES Deputy Town Manager/Finance Director Julie Ghetti reported that the Town is still continuing to see signs that the economy is recovering. She stated that revenues are up 4% and expenses are down 4% from budget for the current fiscal year. She stated that next year's budget includes an increase in the telecommunications/utility tax from 2.6%to 4%, as well as restructuring debt by paying off bonds on the Community Center, open space, and Town Hall. Ms. Ghetti responded to questions from the Commissioners relative to her report. Page 1 of 3 a 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 a draft of the "recruitment tool" dated May 17, 2011 (copy attached). Discussion ensured whereby editorial suggestions were made which included the following: • Page 1,paragraph 3, line 2—discussed softening the text"basic survival" • Page 1,paragraph 5, line 1 —discussed rewording"...unbalanced fiscal portfolio." • Page 2,paragraph 1,line 6—discussed rewording"urban-setting housing" • Page 2,paragraph 1, line 7-changed"to maintain"to"in maintaining" • Page 2,paragraph 1,line 9—changed"20%"to"22%" • Page 2,paragraph 2,line 4—eliminated the comma after the word"April" • Page 2,final paragraph,line 2—capitalized"Citizen Blue Ribbon Committee" • Added"2010 Census"to"Sources"at the bottom of page 2 • Add business statistics(if available) Commissioner Magazine moved to approve the "recruitment tool" as edited, and Commissioner Schultz seconded the motion,which CARRIED UNANIMOUSLY by those present. Chair Koester Thomas then turned the Commission's attention to the Strategic Plan Advisory Commission Blue Ribbon Committee Draft Strategic Agenda (copy attached) that had previously been distributed, which lists community issues. She asked for suggestions with respect to the draft and the following suggestions were made: • Add bullet "What are the universe of responsible revenue options that Fountain Hills might employ?" • Add to the end of the third bullet: "...from social,economic and service perspective." • Add bullet"How can we inspire good leaders to run for office?" • Add bullet"How can we inspire civility in order to solve problems?" Chair Koester Thomas stated that she present a revised strategic agenda based on feedback at the next meeting. Chair Koester Thomas then called for a review of the Proposed Timeline (copy attached) that was previously distributed. The following was determined with respect to items listed under"June 21 SPAC Meeting": • The first bullet should read,"Finalize composition of Blue Ribbon Committee and co-chairs" Chair Koester Thomas that action items to complete the program include finalizing the Blue Ribbon Committee membership and co-chairs, determining the program delivery method to Council, and finalizing the program in July. AGENDA ITEM#8—SCHEDULE UPCOMING MEETINGS It was noted that SPAC Special Sessions had been previously scheduled on June 21, 2011 and July 13, 2011. Following discussion, it was determined that the annual joint meeting with the Town Council Page 2 of 3 ® would be scheduled at a time most advantageous to the work program currently underway. An additional SPAC Special Session was scheduled on August 23,2011 at 3:00 p.m. AGENDA ITEM#9—ADJOURN Commissioner Magazine MOVED to adjourn at 4:59 p.m. and Vice Chair Dunham SECONDED the motion,which CARRIED UNANIMOUSLY by those present. Shaunna Williams, Recording Secretary • 1110 Page 3 of 3 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. In five years, the Town's General General Fund Revenues (operating)revenues have dropped by _- On millions) nearly 30%(or nearly$5 million).This sn drop in revenue has translated into service delivery impacts including 516 program cuts, staffing reductions and even more concerning, deferrals of $15 infrastructure maintenance. While everyone has tightened belts, the $14 projected long-term costs of operating and maintaining our community indicate s13 that this trend seriously jeopardizes our future. $12 FY07-08 FY08-09 FY09-10 FY10-11 FY11-12 DRAFT—For Discussion Purposes Only (Revised May 17, 2011) 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. 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) to maintain 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 20% residential vacancy rate will climb rapidly. 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, at the end of April, a decision 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 Home Values Over the course of the past five years, the average home value has declined significantly. In February of 2006, the ssoo,000 average home value in Fountain Hills was $467,000. In 5450,000 the five years since, the average home value has 5400,000 dropped nearly 50%, to$244,900. Data does not indicate that this trend has reversed, or that Fountain 5350,000 Hills' home values have hit "the bottom". 5300,000 5250,000 5200,000 0 0 0 0 0 0 0 0 0 0 - 0 0 0 0 0 0 0 0 0 0 0 N N N N N N N N N N N U 7 7 7 C! 7 ) G 7 U LL < LL < LL < LL < LL < LL We need your help Our community is in crisis. The facts listed above only begin to depict our compromised and uncertain future. We are asking you to join Council's citizen blue ribbon committee to research strategies and develop a roadmap for the Town's successful future. Sources: Revenue Enhancement Analysis(2007); Fountain Hills Strategic Plan (2010),Town of Fountain Hills(2011), Arizona Office of the Auditor General (2011); Fountain Hills Unified School District(2011);Zillow(2011) 111/ DRAFT—For Discussion Purposes Only(Revised May 17, 2011) Strategic Plan Advisory Commission Blue Ribbon Committee Draft Strategic Agenda The Blue Ribbon Committee is being asked to provide recommendations to the leadership of Fountain Hills regarding the community's long term sustainability. To accomplish this task, several questions will need to be answered. • How have other communities dealt with 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 have other communities addressed a significant non full-time resident/second home population? • How have other master planned communities transitioned from reliance on the developer for infrastructure development and maintenance? • How can Fountain Hills address the continuing erosion of state shared revenues? • How can Fountain Hills attract more young people and families? • How can Fountain Hills attract more basic employment (non-retail jobs)? DRAFT — FOR DISCUSSION PURPOSES ONLY (May 17, 2011) Proposed Timeline • - - Blue Ribbon Committee Proposal May 17 SPAC Meeting • Finalize recruitment piece • Identify BRC co-chair candidates • Compile list of potential BRC membership • Discuss BRC "work program" • Outline timeline for committee membership recruitment June 21 SPAC Meeting • Finalize BRC membership • Finalize BRC "work program" • Discuss proposal delivery/presentation to Council July 13 SPAC Meeting • Discuss/prepare/finalize August delivery/presentation of proposal to Council (note: Council does not typically meet in July) Draft— May 3, 2011 v • •