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Home My WebLink AboutSPAC.2011.0215.Minutes TOWN OF FOUNTAIN HILLS MINUTES OF THE FOUNTAIN HILLS STRATEGIC PLANNING ADVISORY COMMISSION MEETING February 15,2011 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 3:00 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 Rich Schultz, and Commissioner Barry Spiker. Commissioner Alan Magazine and Youth Commissioner Katie Myer were excused 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 ,TANUARY 18,2010 Commissioner Dooley MOVED to approve the January 18, 2010 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 the Town is working with Allied Waste to implement trash hauling on July 1st and that Allied Waste will make the new rate available to Town residents on March 1st. He stated the majority of residents that have responded to the Citizen Survey are older, retired people and that the Town is working with the Fountain Hills Unified School District to send out an invitation to participate to parents of school age children. He further reported that the Citizens' Academy is going well and that the Freedom Series event will be held on March 10`h. AGENDA ITEM#6—UPDATE ON TOWN FINANCES Deputy Town Manager Julie Ghetti distributed copies of the PowerPoint presentation that had been presented at the Council's Work Study Session on February 8 (copy attached). She stated that the Town has been notified that the Law Enforcement Contract will increase 5.5%. She noted that presentations will be made to local groups regarding the election on road bonds. Page 1 of 2 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 recapped the discussion that took place at SPAC's Special Session on January 18 and distributed a one-page draft statement in furtherance of an action item from that meeting (copy attached). She encouraged suggestions and comments from Commissioners with respect to the draft statement. Suggestions offered included using definitive bullet points instead of the graph that shows projected general fund revenues and expenditures; the fact that a realistic picture needs to be relayed about the Town's revenues and fee structure; the Town's "belt tightening" actions that have been taken thus far should be included; and the fact that a strong case needs to be made to evoke the urgency of resolving the Town's lack of financial stability. During the discussion, it was noted that certain local, regional and state taxing and Town financial information would be helpful both to the Commission and to potential appointees to the Blue Ribbon Committee. Chair Koester Thomas indicated that she would work with Shaunna Williams to obtain a list of resources where such information could be obtained and Town Manager Rick Davis indicated his willingness to supply information as needed. Vice Chair Dunham proposed that he and Chair Koester Thomas (1) work on the statement to develop an "attention grabber"and(2)create a new graph or eliminate the graph to tell a more realistic story. Chair Koester Thomas urged Commissions to continue to think of potential individuals to serve on the Blue Ribbon Committee. AGENDA ITEM#8—SCHEDULE UPCOMING MEETINGS It was noted that SPAC meetings had been previously scheduled at 3:00 p.m. on March 15, 2011 and April 12, 2011. Following discussion,the April 12, 2011 meeting was rescheduled to April 19, 2011. An additional meeting was scheduled on May 17, 2011 at 3:00 p.m. Chair Koester Thomas asked Shaunna Williams to check on space at the Community Center for each of the upcoming scheduled meetings. AGENDA ITEM#9—ADJOURN Commissioner Spiker MOVED to adjourn at 4:30 p.m. and Commissioner Dooley SECONDED the motion, which CARRIED UNANIMOUSLY by those present. Shaunna Williams, Recording Secretary Page 2 of 2 FY2011-12 BUDGET INTRODUCTION February 8,2011 j 14‘11- gr. 1:4" 10; AIM t, r 10 63 Presented by: Rick Davis,ICMA-CM Julie A.Ghetti,MPA,CPA February 8,2011 FY2011-12 Budget Plan • Economy is showing signs of stability • Revenues are anticipated to increase approximately 1% O Expenditures have been maintained at FY11 levels Public safety contracts are programmed to increase 3% per contract CI P budget is funded with construction sales tax that continues to deteriorate February 8,2011 • Budget Assumptions • Used conservative but slightly optimistic revenue estimates Includes 3% increase for public safety contracts Includes 3% merit for staff • Assumes bond proceeds for first phase of major road improvements (Saguaro Blvd) • Incorporated Council initiatives from retreat February 8,2011 Outstanding Budget Issues Updated revenue projections • Community contracts • Fees for service • Law enforcement costs • Capital projects budget • Special Transportation Program • Internal Service Funds February 8,2011 2 FYzo1 z Budget Highlights $34.2M Budget for all funds* Major Funds: • General Fund $12.8M • Highway User Revenue (HURF) $1.6M • Excise Tax $o.3M • General Obligation $1.4M • Municipal Property Corporation $1.4M • Capital Projects $16.5M** • Non Major Funds $o.2M *preliminary **including bond and grant funding February 8,zon L Proposed New Staffing Part time Prosecutor(Admin) Increased hours for Recreation part-time staff to assist with sculpture cleaning Full time Management Assistant (ED) • 5o%General Fund, 5o%ED Fund • Full time Economic Development Specialist (ED) • 100%ED Fund February 8,2011 3 COUNCIL GOALS • Initiatives included in budget proposal • Initiatives from prior year are continued • Civility • Environmental Stewardship • Civic Responsibility • Education, Learning and Culture • Economic Vitality • Recreational Opportunities and Amenities February 8,zoii Civility • Council Initiative • Support community events and activities • Solicit public feedback Proposed Budget • Take Pride Day $5,000 • Centennial Project $1o,000 • Centennial Event Circle $125,000 • Citizen Surveys $o February 8,2011 4 Environmental Stewardship Council Initiative • Implement new technologies and opportunities to reduce energy consumption Proposed Budget • Energy management system and retrofit Civic Center buildings with split AC units for IT and electrical rooms,energy efficient lighting,window tinting,etc. $1og,000 February 8,2011 Civic Responsibility • Council Initiative • Foster a culture of public service and volunteerism • Comprehensive communications plan to encourage citizen participation in civic life • Proposed Budget • Expand Take Pride Day $4,400 • Expand volunteer program $o • Park Host Program $1,000 • Comprehensive citizens communication $24,000 • Community calendar $0 • Citizen's Academy $1,000 February 8,2011 • Education, Learning and Culture ® Council Initiative • Support partners in providing arts and cultural opportunities • Position community's arts as economic drivers • Encourage access to higher learning opportunities Proposed Budget • Arts and cultural opportunities $5,000 • Support public art walk $3,000 • Greening project $i,000 • Higher learning opportunities $o February 8,aoii Recreational Opportunities and Amenities • Council Initiative • Provide an interconnected,multi-use trail and bicycle system • Proposed Budget • Signage,trail marketing $1o,000 • Analysis of pedestrian movements $o • Expand and maintain Preserve trails $o February 8,zon 6 Economic Vitality Council Initiative • Develop a comprehensive economic development strategy • Promote retention,expansion,and relocation of quality businesses • Promote Fountain Hills as a visitor destination • Support future Lakeside District Development • Proposed Budget • 2 new FT positions $148,130(Downtown/GF) • Fountain Hills Chamber Tourism $TBD • Downtown Infill Incentive District $5,000 February 8,zon ,r Capital Improvements Program • Proposed Projects: • Downtown Vision Plan $355,000 • Shea Widening at Saguaro $2.9M (grant/CIP) • Shea Gap(carryover) $1.7M (grant) • Annual Pavement Management $2.1M(CIP/HURF/Bonds) • Saguaro Mill&Overlay $7.5M(bonds) • Safe Routes to School $o.3M(Grant) • Traffic Signal Upgrades $o.6M(CIP) • Civic Center event circle $125,o0o(CIP) February 8,2011 • 7 Local Sales Tax Collections I Fiscal Year Sales Tax Collections* Increase/Decre`� over Prior Ye zoo6-o7 $11,075,430 (16%)* 2007-08 $10,470,882 -5 0 (-0%) 2008-09 $8,740,324 �7/ (�3�) zoo9 io $8,327,804 13% (3%) 2010-11* $7,i69,714 6 (-ix) 2011 1z* $7,409,i67 3 (3%) *excluding construction February 8,2011 Property Tax Rate Projection TOWN OF FOUNTAIN HILLS If road bonds are PROPERTY T X RATES approved by the $090 voters the Town's tax levy will return 99.70 to FY2001 level. �� • . r e ual cost to cost to homeowner :030 is$10/month S. $0.10 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Years February 8,2o1 8 Multi-Year Projection General Fund FY2011-2025 General Fund Revenues and Expenditures(estimated) $24.0 $22.0 _,.r.•• .... • • • .s' $1&0 $16.0 $14.0 -'_-- -...__ FY10.11 FY12-13 FY14-15 FY16-17 FY18-19 FY20-21 FY22-23 F1'24-25 —�—OPERATING REVENUE •••••• OPERATING EXPENDITURES February 8,zo11 Fountain Hills Property Tax Dollar Taxing Authority FOUNTAIN HILLS PROPERTY TAXES Fountain fills School District $0.46 2010 Maricopa County $0.42 Sanitary District $0.09 Town ofFtn Hins 93.02 Fast Valley Institute $0.01 T""ff a BMA 3% E.MWu.,lal.l. 1% Total $1.00 f . srs.y IIN j °717 ( Mark:m.0.aq vx 4Ruornutric, Librry.Flood ntrol, ounry College s `v .It \• 1' $ February8,2011 9 General Fund Division Budget TOWN OF FOLN[AIN 1111 I S ...111111111191 .0 0 WOWS v609 [p.0> - 1MR1619 218.017.00 161,907.04 31..2.11 16..36 PACILTTIRC 1w19raw9Q 420.190.00 471.144.04113,00.01 217,O242.06 464.441.47 190,140.b .111 411.6 40,903.30 111,019.70 104,617.20 128.313.38 NAPPING xa -1.11 LAN 1012041.001211 TOTAL.CAW.. ORM TOM 15,62.6,410.00 14n73,711.10 11,n9.021.01 11.114.7.1211.23 11.626-042e11 11,747,91.11 4041.21 February 8,zon mind Streets Program Budget TOWN or NIAINHIILS ; 10IIT>900 0®!010fmo:.nRanq 09Y'6P6. P90.11.1108.1011 4111.11I90 10901r 1T 1011-10 100 rtw WORM.INV.9® 9Limiml 1c1m WIT m41 901mi. CI REV � MOW LEGAL- 21.121.06 11,1K.0G 21,299.91 21,409.00 c. 1»t 1,44 1,714,676.17 118,011.19 100,f>6.7K..K. 6116016 ¢1 WO.0 03311 .0O .00 113.74 10,701.74 10,310.00 4,911.10 42.91 cT¢ - Sn,0M.6 ,1.6e0 13.41 6 - l,lwei ,i91.0 , i00,KO.•i 119, .O u,iil.39 77,319.01 104,116.71 ,WI.00 -6.16 .00 147.180.09 W. 6. f ,012.71 a10,1 00 1 a>11¢6 uu w R 1431111 .00 1,w9n4 11,114.12 07,446.00 97,176.00 .61 -i'm 3.911.01 1K,099.41 1.,240.110 1.x 1 l.K nl,ni.w ,6w.n K to. 1oc,ITr.69 >vru ismn16rt9vm llwu9:o l,ai;oia.a 1,cs>l1>.6c uc,w.n l.fu,u°o.is I,u0On.10 _.. MAW TOTAL 1,190,119.00 1016.912.21 1,667,601.66 016,K2.61 I,3511,210.10 1,600,O17.13 , ®01 9100aT.O.v.a.1d y.10110 0arn•• 10 .41 0 g General Fund Program Budget (i) TOWN OF FOUNTAIN FIH I S -'IL '.I.1,•11 '11 TOM OP 1701771111 01aL0I011ci1 0311200f09 Warne. 1CtlI0972 Pol• MOOS 913 9113011 972 1.7 m e0 a rev 100.22.100 Pa O201121.w® ALMA. WM. •aAaf WM. =OR 1.e96 1 C09A NOT 25..s0 1,003,l09.00 02,412.21 .00 .0% uc721i.23 .00 .00 - ,996f1 ix2cv>i_a, - 11,201,119.20 G,Ow.2..tf - 3221.1e6 K.00 al.K 1107,w1.00 190.6 0.00 6.92 A.A..c72c10L 20,3 21,70.23 - 10.00 -3.19 • 222VICEL .00 1111.627.111 160,OD 00 -3.92 3160.30 213713.11 20111.G i : ,611.40 19,On.f1 ...3.00 40,13 . O1,316i/CNNe21 11 .00 17,246.49 DO 19,336A -12.91 K,K0.10 14.19 1112,102.00 1.00 2.210.16 w[ ,1..2c 337,177.96 601,236.95 -.111 CAPITAL 0v9O.117 Pa .00 121.151.07 0.179.26 4.0 CIVIL ss .00 0,727.00 7.0 C.11 CC7111.31(02130,09.71 0,476.0i ccoosueury 17 111,211.11 70,717.T I cOMCW-1Pxr m19n2:.Cni .00 .w 97.102.10.00 1.00 21.0% e11110/Cues .00 11,7113.02 29.9111.00 04,121.00 1.1% CIOcu9P KAMM .K 3 ,001.32 73,640.23 132,9111.91 112,1..71 - CU:7.M WW10E .00 13,344.97 27,392.96 11,134.04 10 49 PISMO. .w 7.0.040.111 K 12,421.37 41. 1.. ill,p9.47 32G.w ._E1Es .00 .00 19,901.. - ) .411.w 610.12 P9 ccxx280: .w ,w1.07 11,116.42 103,710.]t 1f0,120.K 41.32 snvikze natr.EE24.CP .00 1,966.11 19,131.0 10,901.1e 64.736.12 41,140.611 40 10 February 8,2011 S General Fund Program Budget (2) TOWN OF FOUNTAIN HILLS 4 ,. =All 13„2 ' 11 MS°tea we 90.13 un armL cw01201da !OK9orrn1. 190.72.1011. 012 OPP...913119172 PS.11 1l Pon 1122I00 91 1CN0029 Poe, RIM m IH 931 er a UV Pa0lnC2fA aIDR niCK[AY AaAtO per Even P -A 21,O01aua 11.332.00 R 10,392.00 .1. 9 IL,HWAL 11,100.34 .00 9 P.c.n PliW/10.IO2 ,749.44 171,tt3.00 .e P1u07111. IC= ,1.02.00 102 PPOS I,111.30 2,111,631.21 - -45.62 7.17119 .00 ...=00e,e .40 f1,W.40 S 2.2 S 111,930.. 06,121.10 100.132.60 106.341.. 4.72 70e/79001001 w K K if,100.00 1K, 0.11 01,114.1) ,000.00 ,000.00 96,000.00 .02 Ifft.,�5a^-Pa.crl.PHA ..00 ..0021.211.91 .00 .K J101a11. .00 27,926.32 12,11..A 19,112 00 20.222.00 1.92 • I001014911C0 .00 .00 127.279.70 140.0 9.19 197.742.00 229.643.00 36.16 LECI.A;ICII K.00 11,110.19 22,011.11 30,163.00 42,G .09 0.01 LIC010010 .00 33,209.79 11,190.112 32,611.62 21,1... 13.22 1.028 1A008 PLANING .00 .00 69.301.03 21.000.67 43,510.66 34,003.20 .21.111 017030 1 8111P14IC12 .00 114,600.36 106,242.34 •6,210.01 1f,111.eo 15,306-44 -1.19 COI C.IOa92P0N0 .00 .00 60,911.03 .A 1920I1 MUM. .00 .00 12.9..21 .K .00 Oast 2112 .00 11,131.42 160,369.71 1..319.03 101,291.19 46,147.00 - • 0171013=PFC. 1,211,1 1.211,116.72 99,316.29 , 210,004.011 4302 2,290,900.04 Ww 2, , f.00 2,fa2.K0 19 2.G02,w1.00 9 2 .0 .00 10,A0.21 0,117.11 12.117.60 14,913.71 92119411TI. .00 .w O,211.a 112,L K 1.39 1 ,112.13 111.900.01 .22.. L 1 2 11,210.00 2,100.00 9.240.00 ..00 At 9901191.831 .00 .00 119.146.0 120.w0.0I 79.99 -43.10 A 9flC1100 .00 .90 119.0 20.2.00 14.117.04 16,419.0 -21.34 rcvl val Y v,_v 1, 11 General Fund Program Budget )) TOWN OF FOUNTAIN HILLS .�� laL«(,111I1.1 _ Po ni a00cil aflwt[1L N649Iia f1.93-Pt. 011 OP9vaSIDG BODGE IT1013 13 Wt P%I00 9f 1[tomxa von. no 99l %la Vrl ]ail fn a 0 iwft ]clmri ]c3ou :mom PROEICTION [visa 9,436.90 13,304.62 isn0.00 lt.130.00 .-.e TRIPS 0 %00 1l,wl.Y1 .l .60 00 91 :9,13f.0 E3[1,31i.S1 334,110.54 ISI,w1.H 1 SEEM I 61.0 - 31i,414.)l 40,%t.w 73, 71,3 642109 PROGRAM1,1w.41 ff1.31 N4.w 3.04 S Iw/[g9nMIiT SERI .0 .o 4,316.00 )93,I10.w -f.T EDE., .0 .00 40.006.1] 1 ,flt.w i.11 SPECIAL WEER - 10.O12.69 4,U1.[3 1 c9eafL[I9i®E Pa 4, .0 430.09 14,740.60 1. - %f,T .00 -11.94 41.0 1i,Yf3.11 30,400.31 1. -9.4. .0 i 41,91f.M 141,430.N 1%.04 SiSi1aG .00 0 431.w 111.107.13 SE 33 31, 39,04 ].04 LICEEDiIUTIOOc 0 ).f90.ic 131.64 1 S9swi[ .00 .04 i i a wmi! 310,451.% 132.07 13. - -44.34 PRANSPORDATION ,401.40 TEPEE .00 .00 14,191.61 17.103.00 30,737.00 13.44 VIDEO SERVICE .00 .00 M461.00 IMO VOLOeiitas .00 L4H91 11,494.40 w,340.11 44.34 I4,3H.n 13.414.00 131.34 00 40 3]1]i N U,31t0.00 It1IA.GaEi'E1L tS.tl9.GG�.00 14,713,736.30 Il,))9;0]:.�) 10,010,111.w 13,S1S,041.90 33,1n.4p.0 wG.l4 O00EV l0CAL 11.f39,iw-00 14,Tl,llf.l0 13,332,064.27 10,090,331.w 1],t3L,a1.90 1],Tll,9%.Ia ww.lt ••6•D OF RESET.Oa.r.t.d M JOL31 GEE/•• Discussion and direction to staff February 8,2011 12 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 S tightened belts, the projected long-term costs of operating and maintaining our community indicate that this trend cannot continue. General Fund Revenues FY2011-2025General Fund Revenues and Expenditures(estimated) $18.o $16.9 524.0 — ---- ---- +-. $16.I $22.0 - .10••'' f $16.0 "• • ::: JIII11 FY10.11 FY12-11 FY1415 FY1617 FY1439 FY20.21 FY72-as FY2425 $10.0 -.-- OPERATING REVENUE •••4••OPERATING EXPENDITURES FY06-07 FY07-03 FY0E-09 FY0.10 FY1U11 FY11-11 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