HomeMy WebLinkAbout2011.1117.TCOM.Minutesz:\council packets\2012\r1-5-12\111117retreatm.docx Page 1 of 2
TOWN OF FOUNTAIN HILLS
MINUTES OF THE COUNCIL PLANNING RETREAT OF THE
FOUNTAIN HILLS TOWN COUNCIL
NOVEMBER 17, 2011
Mayor Schlum convened the meeting at 8:18 a.m., which was held in the Fountain Hills Community Center.
Interim Town Manager Julie Ghetti addressed the Council stating that the purpose of the retreat was to address next year’s
budget gap and engage the Council in an informal discussion. Ms. Ghetti indicated staff was present to answer questions
and she was hopeful that the Council would provide staff with information that would assist staff in their preparation of
next year’s budget.
Ms. Ghetti discussed the Factoids (Things to Know) PowerPoint presentation (copy on file in the office of the Town
Clerk), which covered the five-year anticipated shortfalls, Town revenues and expenditures; Town population
demographics; the declining school enrollment; property assessed valuation; declining general fund revenues and State
shared revenues; the Town’s 2011 General Fund fixed costs; HURF (Highway User Revenue Fund); vehicle impact of the
Chamber’s November and February fairs; local sales tax revenue; seasonal impact on retail sales tax (i.e. restaurant/bar
sales tax revenue); local sales tax revenue (i.e. telecommunication sales tax and construction sales tax activity);
comparison with surrounding communities of General Fund operating cost per 1,000 citizens; fire station 5 minute
response polygons; Town contracts for external programs (i.e. B& G clubs, Theater, Food Bank, Chamber); and a
comparison of the Town’s sales tax rate with surrounding communities.
Ms. Ghetti presented and discussed each of the twenty-one (21) proposed budget toolbox options that were included in the
Council’s retreat packet (copy on filed in the office of the Town Clerk). Toolbox options discussed included: decreasing
employees’ retirement contributions; increasing employees healthcare premium contributions; mandatory furlough for
employees; reclassification of park lead to groundskeeper; decreasing the recreation program subsidy; increasing Senior
Services membership fee; reducing part-time staff hours at the community Center; eliminating the vacant position in
Building Safety; implementation of an environmental fee; increasing sales tax rate on telecommunications; implementing
a franchise agreement with water and gas companies; reallocating of half of the downtown sales tax to the General Fund;
reducing the sales tax rate and replacing it with a franchise, telecommunications tax increase; using 10% of the General
Fund reserves for five years; proposing a primary property tax of $1 per $100 of AV; renegotiating the Rural Metro Fire
Contract; reducing law enforcement contract, reducing the community contracts; recruiting a part-time Prosecutor; and
eliminating non-essential recreation programs.
Ms. Ghetti reviewed the objective of the tool box option exercise was to have the Council provided their input on the
various options with staff tracking the budgetary impact on the anticipated $411K shortfall for next year’s proposed
budget. Ms. Ghetti reiterated that this was a planning session for the Council that would assist staff with the formation of
next year’s draft budget and that this exercise would identify what effect those Council preferred proposed options would
have on subsequent years’ budgets. She asked the Council to place stickers on the various options to indicate their
support for the various budget options (yes option, no option, and the parking lot option). She further explained that it
would take four Councilmembers to indicate a favorable preference in order for staff to move an option forward as part of
next year’s proposed budget. Ms. Ghetti stated that the Council would have the ability to discuss the proposed budget at
subsequent public meetings and that she would provide a summary report of the Council’s preferences.
Development Services Director Paul Mood presented the five-year Capital Improvement Plan (CIP) and each of the
projects (copy of the PowerPoint on file in the office of the Town Clerk). The retreat adjourned at 12:15 p.m.
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TOWN OF FOUNTAIN HILLS
By_____________________________
Mayor Jay T. Schlum
ATTEST AND
PREPARED BY:
_________________________
Bevelyn J. Bender, Town Clerk
CERTIFICATION
I hereby certify that the foregoing minutes are a true and correct copy of the minutes of the Council Planning Retreat held
by the Town Council of Fountain Hills in the Fountain Hills Community Center on the 17th day of November 2011. I
further certify that the meeting was duly called and that a quorum was present.
Dated this 5th day of January 2012.
_____________________________
Bevelyn J. Bender, Town Clerk