HomeMy WebLinkAboutOrd 2015-10ORDINANCE 15-10
AN ORDINANCE OF THE MAYOR AND COUNCIL OF THE TOWN OF
FOUNTAIN HILLS,ARIZONA,APPROVING AN AMENDMENT TO THE
PAVEMENT MANAGEMENT PROGRAM AND AUTHORIZING THE
NECESSARY BUDGET TRANSFERS TO FUND THE PROGRAM.
WHEREAS,the Town of Fountain Hills (the "Town")street system is estimated at
$150,000,000 replacement value,making preservation of existing streets essential to the fiscal
health of the Town;and
WHEREAS,the 2009 Stantec Engineering Report indicated that the Town's pavement
earned a rating 67.1 out of 100,which indicated thatthe Town's pavement ranged from good to
excellent,but notedthat, due to the ageof the pavement,degradation could accelerate without a
proper annual pavement maintenance program;and
WHEREAS,at the August 23, 2012, Town Council/Staff Retreat, the Mayor and
Council of the Town (the "Town Council")made establishment of a Pavement Management
Program (the "Program")atop priority tobe addressed;and
WHEREAS,the Town Council desires to establish an Asphalt Replacement Plan (the
"Replacement Plan")tobe included within the Program;and
WHEREAS,the Town Council desires to annually fund the Program with existing
revenues,with a goal of $1 Million allocated annually for asphalt maintenance consisting of
crack sealing,slurry and chip sealing,mill and overlay,manhole and valve adjustment and
signing and striping (the "Maintenance Plan")and $800,000 -$1,200,000 allocated annually to
the Replacement Plan; and
WHEREAS,on August 3,2000,the Town Council adopted Ordinance 00-12,increasing
the Town's transaction privilege tax rate from 1.2%to 1.6%.The 0.4%increase was subsequently
distributed:0.2%for payment of debt service for mountain preservation land purchases (the
"Mountain Preserve Tax");0.1%for payment of debt service for Civic Center construction (the
"Civic Center Tax");and 0.1%for downtown development;and
WHEREAS, in 2011 the Civic Center bonds were retired,andthe Civic Center Tax was
redirected to General Fund uses;and
WHEREAS,the mountain preserve bonds will be retired on July 1,2016,and thereafter
the Town Councildesiresto redirectthe MountainPreserveTax tothe Program;and
WHEREAS,the Town Council finds and determines that it is in the best interest of the
Town that funding for the Program be generated from existing sources,including:(i)transferring
certain Highway User Revenue Fund ("HURF")and Vehicle License Tax ("VLT")amounts;(ii)
cancelling certain projects in the Town's Capital Improvement Plan ("CIP");(iii)outsourcing
certain functions;and (iv)appropriating the Mountain Preserve Tax to the Replacement Plan.
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