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2007.0501.TCSM.Minutes
TOWN OF FOUNTAIN HILLS MINUTES OF THE SPECIAL SESSION OF THE FOUNTAIN HILLS TOWN COUNCIL MAY 1,2007 AGENDA ITEM#1—CALL TO ORDER AND ROLL CALL—MAYOR NICHOLS. Mayor Nichols called the meeting to order at 5:00 p.m. Present for roll call were the following members of the Fountain Hills Town Council: Mayor Nichols, Councilmember Kehe, Councilmember Leger, Vice Mayor McMahan, Councilmember Schlum, Councilmember Archambault and Councilmember Dickey. Town Manager Tim Pickering, Assistant Town Attorney Chris Schmultz and Town Clerk Bev Bender were also present. AGENDA ITEM #2 —CONSIDERATION OF RESOLUTION 2008-20, APPROVING A BUDGET TRANSFER APPROPRIATION FROM FOUNTAIN PARK CAPITAL OUTLAY IMPROVEMENTS TO SUPPLIES AND SERVICES RENT IN THE AMOUNT OF$927,490.91. Town Manager Tim Pickering explained that the monies would be used to pay the settlement for the Lukenda lawsuit. He noted that the monies needed to be paid today in order to stop the interest and that was why the item was placed on the agenda of this Special Session. Councilmember Archambault MOVED to approve Resolution 2008-20 and Vice Mayor McMahan SECONDED the motion. There were no citizens wishing to speak on this item. The motion CARRIED UNANIMOUSLY (7-0). AGENDA ITEM #3 — PRESENTATION AND DISCUSSION OF THE PROPOSED TOWN OF FOUNTAIN HILLS FISCAL YEAR 2007-08 BUDGET, INCLUDING EAGLE MOUNTAIN COMMUNITIES FACILITIES DISTRICT AND THE COTTONWOODS MAINTENANCE DISTRICT. THE COUNCIL WILL DISCUSS AND CONSIDER ALL ASPECTS OF REVENUES AND EXPENDITURES. Mayor Nichols stated that the main purpose of holding the Special Session this evening was to discuss the proposed Town Budget for Fiscal Year 2007-08, including Eagle Mountain Community Facilities District and the Cottonwoods Maintenance District. Mr. Pickering addressed the Council relative to this agenda item and highlighted a PowerPoint presentation on this agenda item. (Full copy of presentation is on file in the office of the Town Clerk.) He said that the purpose of the presentation was to give the Council an overview of what was contained in the budget and said he did not expect that the Council would have reviewed every page of the budget and have every question written down; that was what this month long process that they were about to enter into was for. He added that this would represent a "first blush" of the big budget picture. He noted that the budget was a planning document that is used to plan the Town's year and the Town's future. Mr. Pickering began by discussing the Town's Mission Statement and said that was what the Town was all about, things like service, respect, trust and stewardship. He discussed the budget process (budget is to be adopted annually; the process began in January, the Department Directors, Finance Director and Town Manager reviewed the requests; revenue projections were prepared; staff balanced the expenditures with the revenues; the first draft was being presented to the Council tonight) and noted that for the benefit of the Town's citizens, the proposed draft budget has been placed on the Town's website. z:\council packets\2007\r5-17-07\5-01-07 minutes.doc Page 1 of 3 Mr.Pickering reviewed budget highlights as follows: • Balanced the General Fund budget without use of reserves; • Council and Strategic Plan goals incorporated; • General Fund budget increased only 1.5% over last year; • Budget increasing by 15% due to investment in capital projects; investing more than $7.2 million in capital or 23%; • Investment in design of streets and parks; • Fountain Park and Desert Vista Park are planned for completion; • General Fund revenues of$1 million added to Capital projects Fund at year end 6/30/07. Additional discussion ensued relative to Council goals and budgetary impacts for FY 2007-08; a summary of one-time revenues (building permits, construction sales tax and development fees) the fact that the transfer of construction sales tax ($1.0 million) would fund one-time capital costs beginning July 1, 2007); the secondary property tax rate and a history (graph) of the property tax rate in Fountain Hills; the General Fund balance and the fact that the Fund Balance policy adopted by the Council had been maintained;expenditure savings had been transferred to the Capital Projects Fund($1.0 million); the estimated 6/30/07 balance is$6.5 million; a review of FY 2007-08 revenues and expenditures; General Fund revenues; a ten-year review of the top General Fund revenues; General Fund expenditures and General Fund expenditures by category; proposed budget changes (two Park Ranger positions were proposed for the parks to reduce vandalism and to oversee trails; reorganization of Public Works, Planning and Zoning and the addition of a Public Information Division); General Fund contract services and community support (total contract services $8,664,522); General Fund repairs, maintenance and supplies; proposed wash maintenance for 2007-08; the Town's landscape contract for 2007-08; proposed Capital Expenditures for FY 2007-08; Special Revenue funds and the Highway User Revenue Fund; Sales/Excise Tax Fund revenues; Downtown development (revenues and expenditures); a summary of proposed Development Fee revenues for FY 2007-08; previously approved Capital projects, Development Fee Capital projects and General Fund Capital projects. Mr. Pickering also discussed "where they go from here" and said that it was planned for the Council to discuss and approve the tentative budget [setting the maximum level of$30.9 million] on May 17th. Expenditures and line items could be exchanged within the budget but could not exceed the maximum amount approved. The tentative budget is to be published twice and will also be made available on the Town's website, in the Town Clerk's Office and in the Library. A public hearing will be held on June 1st and the final budget could be approved on June 1st or later. He noted that the goal was to pass the budget early to allow enough time to implement the Council's goals. Mr.Pickering summarized his remarks by stating: • The General Fund was balanced; • Council and Strategic goals framed the proposed budget; • Funding was being proposed for$7.2 million in capital projects; • No increases in staff level,actually a small decrease. Mr. Pickering expressed appreciation to the Mayor and Council, Commissions, volunteers, Department Directors and staff for their contributions and indicated his willingness to respond to questions. Councilmember Archambault thanked Mr. Pickering and staff for preparing such a concise, easy to read budget and encouraged the residents to review it. Mr.Pickering stated that for the citizens' benefit,probably the easiest way to review the budget was to read the transmittal message. Mr. Pickering and staff responded to a series of questions posed by the members of the Council relative to the proposed budget and the Council brought up suggested items for further review and discussion at the next z:\council packets\2007\r5-17-07\5-01-07 minutes.doc Page 2 of 3 Council meeting. Mr. Pickering noted that he had presented just an initial overview of the budget and said that the budget could be discussed in more detail on May17t and then again at the first meeting in June if the Lor Council so desired. He added that special meetings could also be held for this purpose. Mayor Nichols also complimented Mr. Pickering and staff on putting together a "first class budget." He noted that there had been a dramatic improvement over the last four years. Mr. Pickering also commended Finance Director Julie Ghetti on her extensive efforts. Mayor Nichols added that in corporate America, one of the things they always suffered was "head count creep" and complimented Mr. Pickering and staff on preventing this from happening in the Town of Fountain Hills both this year and last year. Mr. Pickering noted that the Town's Department Directors realized that resources switch and efforts were constantly expended to shift duties. He said that they had done a very good job of doing more with less. Discussion ensued relative to the Mayor and Council's time commitment and extensive responsibilities and the importance of continuing to look at ways to attract qualified, dedicated individuals to serve in that capacity. Mayor Nichols stated that staff had put together a good analysis of the pension plan that was available to elected officials and said that this might prove to be helpful in the area of attracting qualified candidates in the future, one on which he would like to have further discussion. Mr. Pickering said that if the Council so chose, this was something that could be added to the budget in order to reward elected officials who had served for a long time. AGENDA ITEM#4—ADJOURNMENT. Vice Mayor McMahan MOVED to adjourn the meeting and Councilmember Schlum SECONDED the motion, which CARRIED UNANIMOUSLY. The meeting adjourned at 6:44 p.m. TOWN OF FOUNT HILLS By Wally 1 ichols,Mayor ATTEST AND PREPARED BY: Bevelyn J. Be er, own Clerk CERTIFICATION I hereby certify that the foregoing minutes are a true and correct copy of the minutes of the Special Session held by the Town Council of Fountain Hills on the 1st day of May 2007. I further certify that the meeting was duly called and that a quorum was present. DATED this 17th day of May 2007. Bevelyn J. B der, own Clerk L z:\council packets\2007\r5-17-07\5-01-07 minutes.doc Page 3 of 3 Nai) to 'd 00 paCA cg 5,.. *4 L. 0 0 ..h4 tii O * L. /1 .° w CO O O o ~ 0 CO .0 C NI �A w - COWRYca � � 40 m � > UW = .03 .� opq 4 t � o � = � � E-0 To V .0 c0 = 0 0 CU w V C v c0 .a (R !+ O O C4 o >% 0 co 0. e Eillill .0 1 E 11 cJ h HC2Lc 0 — o C a) .1 a w �- w N � i I . g 0 ? ` a_ a ka,f t t j 0 b!) 0 Z el 00 A ElIII.1 cii tiZ M o 4 , , z„ . , c 4,. . �i •N . . . , _ 4., P4 ... 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