HomeMy WebLinkAboutFY08 Adopted Budget “ A l l t h a t i s A r i z o n a ”
TOWN OF
FOUNTAIN HILLS,
ARIZONA
BUDGET
FISCAL YEAR
2007-2008
i TOWN OF FOUNTAIN HILLS, ARIZONA MISSION STATEMENT The Town of Fountain Hills’ purpose is to serve the best interests of the community by: providing for its safety and well-being; respecting its special, small-town character and quality of life; providing superior public services; sustaining the public trust through open and responsive government; and maintaining the stewardship and preservation of its financial and natural resources.
ii Fountain Hills Town Council Mayor Wally Nichols Vice Mayor Keith McMahan Councilmember Mike Archambault Councilmember Ginny Dickey Councilmember Edwin Kehe Councilmember Henry Leger Councilmember Jay Schlum Management Staff Timothy G. Pickering, Town Manager Kate Zanon, Assistant to the Town Manager Department Directors Ted Armbruster, Presiding Judge Julie Ghetti, Finance Director John Kleinheinz, Captain, Maricopa County Sheriffs Office Scott LaGreca, Chief, Rural Metro Corporation Mark Mayer, Parks & Recreation Director Richard Turner, Planning & Zoning Director Thomas Ward, Public Works Director
iii FOUNTAIN HILLS TOWN COUNCIL 2007-2008 Vice Mayor Mike Archambault Councilmember Keith McMahan Wallace J. Nichols was elected Mayor of Fountain Hills in May 2003 and is currently serving in his second full term. Mr. Nichols' professional service was as an executive with WorldatWork, Nichols & Wharton, Inc., Premark International, Inc., Dart & Kraft International, Inc. and CPC International, Inc. He earned a Bachelor's degree in Economics at Tufts University and is an alumnus of the Harvard Business School. He currently is President of Nichols International, Inc., a consulting and educational service to the human resource community and Chairman/CEO of Hawk Enterprises, Inc., a local rental/property management company. The Mayor is a current member of the Board of Directors of the Scottsdale Convention and Visitors Bureau, and Fountain Hills Cultural Council. He represents the Town as a member of the Maricopa Association of Governments. He served as an elected officer of the Fountain Hills Sanitary District, Los Arcos Multipurpose Facilities District Board, Scottsdale Boys & Girls Club Board, Fountain Hills Boys & Girls Club Advisory Chairman, Chairman of the Fountain Hills Community Center Advisory Commission, and on the Citizens Committee/Community Benefits Committee Board. He is a member of the Noon Kiwanis, Fountain Hills Chamber of Commerce, Friend of the Fountain Hills Community Theater, Senior Center, Civic Association, Library Association, Fountain Hills Historical Society, and the Four Peaks Community Church. Mayor Wally Nichols Keith McMahan moved to Arizona in 1971 as an advertising writer with Lorne Pratt Enterprises, Inc., the ad agency for McCulloch Properties, until 1991 when he formed his own company, McMahan and Company Advertising Agency. Keith has been actively involved in community projects and organizations since he came to Fountain Hills. He was the advertising and tourism chairman for the Chamber of Commerce for nine years as well as serving on their Board of Directors for three years. In 1997, he was honored as the "Business Person of the Year" by the Chamber of Commerce. He served as an elected member of the Fountain Hills School Board from 1986 to 1990. For nine years, he was on the Road District Joint Powers Board; chairman in 1978. He is presently a contributing member of several organizations: the Fountain Hills Civic Association, the Fountain Hills Republican Club, and the Fountain Hills Historical Society Board of Directors. Vice Mayor McMahan
iv Mike Archambault moved to Fountain Hills in January 1972 from Columbus, Ohio, and was among the first ten families to live here. Mike worked with his father under the company name of Archie’s Construction. In 1981, he started Fountain Hills Wood Whims, Inc., a custom cabinet shop that currently employs fifteen craftspeople. As a tireless volunteer, Mike ran the annual “Secret Santa” program, bringing toys and smiles to children and food donations to needy families in Fountain Hills and Fort McDowell Yavapai Nation for thirteen years. He served as a Cub Scout and Boy Scout leader for eleven years and was inducted into the Order of the Arrow. He served on the Building Committee of the Church of the Ascension, helped construct the original Town Library, and was heavily involved in building the Sunset Kiwanis Building in Kiwanis Park. Mike’s recent project using volunteers and many donations involved the construction of the Veterans Memorial, a 12,000 square-foot plaza in Fountain Park. It memorializes those who serve and those who made the ultimate sacrifice. Mike served as president of the Fountain Hills Youth Association and as a leader in the Order of the Arrow ceremonial teams. He is a long-term member of the Sunset Kiwanis. He continues to support the Fountain Hills Band, Fountain Hills High School, the Helping Hands food bank, and Concerts in the Park programs. Councilmember Archambault Ginny Dickey was elected to her first term on the Town Council during the Primary Election on March 14, 2006. Because she received the highest number of votes, the Town Council unanimously appointed her to fill a vacancy on the Council for the remaining term ending May 31, 2006. A resident of Fountain Hills since 1983, Ginny was elected and served on the Fountain Hills Unified School District Board from 1994 to 2002, twice as President. A Charter Member of the Fountain Hills Cultural Council Board for seven years, Ginny also served nine years on the Fountain Hills Community Theater Board. She is a member of Metropolitan Business and Professional Women, the American Association of University Women, Scottsdale Branch, the League of Conservation Voters and the Sierra Club. She participated in all of the Fountain Hills Town Hall planning sessions, starting in 1984. Ginny works as a Legislative Liaison for the Arizona Department of Environmental Quality. She previously was on the staff of the Arizona State Senate and has been a bookkeeper and substitute teacher. Born and raised in New York, she lived in Vermont and New Hampshire before following her parents and family members to Fountain Hills. She has a Bachelor of Science degree in Mathematics from Boston’s Tufts University. Councilmember Dickey
v Ed Kehe was born and raised in western New York. He received a Bachelor of Arts with honors from Albion College in Michigan and Master of Science from the University of Illinois. He earned sixty post-degree graduate credits from Columbia University, State University of New York, New York University and City College of New York, leading to certificates in administration and directorships. Ed’s career spanned thirty-three years in public secondary education, six in Michigan and twenty-seven in New York, teaching mathematics, physical education, and coaching interscholastic sports. He retired in1984 from White Plains High School in New York after fourteen years as Director of Athletics. Ed was inducted into the Westchester County (NY) Sports Hall of Fame. Ed and wife Dolores moved to Fountain Hills in 1995. As a councilmember, he served on the Technical Advisory Committee in the Fountain Hills strategic planning process and was a member of the Town’s negotiating team for the annexation of the state trust land. Ed volunteers with Home Delivered Meals and serves on the boards of McDowell Park Association and the Golden Eagle Foundation. His local memberships include Church of the Ascension, Noon Hour Kiwanis, Fountain Hills Civic Association, Senior Activity Center, and River of Time Museum. He is a Friend of the Community Theater and a member of the Chamber of Commerce. Councilmember Kehe Originally from Massachusetts, Henry Leger moved to Arizona in 1970 to attend the University of Arizona. Henry and his wife Janet were attracted to Fountain Hills because of its natural beauty, small town character and as a safe place to live and raise a family. Henry holds a Master’s Degree in Educational Psychology from the University of Arizona and has worked as a professional in the field of leadership and organizational development for the past 25 years. Throughout his career, he held a number of leadership positions in education and government work settings and has worked as an internal consultant for several Fortune 500 companies. As a long time resident, Henry immersed himself into Fountain Hills by volunteering much of his time on community activities and initiatives. He has been very active in his neighborhood property owners’ association serving as a board member, treasurer and member of the association’s Committee of Architecture. Henry served as the Vice President and President of Church Council at Shepherd of the Hills Lutheran Church in Fountain Hills and has been involved in his children’s education as a teacher’s aide and parent volunteer. Henry served as a member of the Technical Advisory Committee, Co-chair of the Youth Visioning Institute, and member of the survey team for the town’s citizen-driven strategic planning initiative. Councilmember Leger
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Jay Schlum moved to Fountain Hills 27 years ago and he attended
Coronado High School in Scottsdale. After graduation he attended
Northern Arizona University where he studied Business Management
and Public Speaking. After college, he returned to Fountain Hills and
is currently employed by Qwest Communications where he manages
business development for the company.
Jay has been active in the Fountain Hills community. He served as a
Fountain Hills Planning and Zoning Commissioner, PTA vice
president and is actively involved with the local Community
Theater. Jay volunteers and performs in productions. He has also
served on the advisory committee for the Boys and Girls Club of
Fountain Hills.
Presently, Jay is a coach with the Fountain Hills Little League.
View of the Fountain from Fountain Park
Councilmember Schlum
vii Elected Officials Terms of Office Mayor Wally Nichols Term of Office: Partial term: May 2003 – May 2004 First term: June 2004 – May 2006 Second term: June 2006 – May 2008 Mike Archambault Term of Office: First term: June 2002 – May 2006 Second term: June 2006 – May 2010 Ginny Dickey Term of Office: Partial term: April – May 2006 First term: June 2006 – May 2010 Ed Kehe Term of Office: First term: June 2004 – May 2008 Henry Leger Term of Office: First term: June 2006 – May 2010 Keith McMahan Term of Office: First term: June 2004 – May 2008 Jay Schlum Term of Office First term: June 2004 – May 2008
viii Demographics The Town of Fountain Hills is a planned, family-oriented community established in 1970 by McCulloch Properties (now MCO Properties, Inc.). Prior to 1970 the area was a cattle ranch and was part of one of the largest land and cattle holdings in Arizona. It was purchased by Robert McCulloch in the late 1960s and designed by Charles Wood, Jr. (designer of Disneyland in southern California). The centerpiece of Fountain Hills is one of the world's tallest man-made fountains, a focal point that attracts thousands of visitors each year. Located on 12,996 acres of land, and bordering northeast Scottsdale, Fountain Hills is surrounded by the 3,500-foot McDowell Mountains on the west, the Fort McDowell Yavapai Nation on the east, the Salt River Pima Maricopa Indian Community on the south and by the McDowell Mountain Regional Park on the north. Elevation is 1,520 feet at the fountain, 3,000 feet on Golden Eagle Boulevard, and is 500 feet above Phoenix. Over the past seventeen years Fountain Hills has grown from 10,190 residents to a town of 2 4 , 4 9 2 i n 2 0 0 6 . T h e M a r i c o p a A s s o c i a t i o n o f G o v e r n m e n t s ( M A G ) e s t i m a t e s t h a t t h e p o p u l a t i o n o f F o u n t a i n H i l l s w i l l c o n t i n u e t o g r o w t o a b u i l d -o u t p o p u l a t i o n o f b e t w e e n 3 0 , 0 0 0 a n d 3 5 , 0 0 0 . A l t h o u g h t h e r a t e o f g r o w t h h a s s l o w e d d u e t o t h e l a c k o f a v a i l a b l e l a n d t o b u i l d o n , t h e T o w n c o n t i n u e s t o a t t r a c t r e s i d e n t s w h o a r e b u i l d i n g l a r g e c u s t o m h o m e s t o t a k e a d v a n t a g e o f t h e s c e n i c v i s t a s s u r r o u n d i n g o u r m o u n t a i n c o m m u n i t y . The Town offers a range of living styles, from small community subdivisions to a number of large custom homes. Fountain Hills also offers recreational, cultural and retirement programs that address the needs and lifestyles of active families and adults. The community consists of a total of 12,996 acres of property, primarily residential and open space (9,664 or 74%). Of the total available land 3,273 acres are developable, 334 acres are zoned commercial or industrial (approximately 3%) and 1,466 acres are right of way/streets (11%). In 2006 Fountain Hills was named by Phoenix Magazine as the best place to live and was cited as "a welcome oasis on the outskirts of a metropolis." The magazine measures the quality of life in 22 Valley communities, including a statistical analysis of each community's population, income, home price, crimes, miles to Sky Harbor Airport, and square feet of retail. The criteria used by the magazine in the ranking are similar to the priorities established in the Town's Strategic Plan. The volunteer spirit and high level of involvement of the citizens and business representatives were highlighted. Town’s signature fountain
ix The Council's leadership is committed to what is in the best interests of the community. Priorities include the Avenue of the Fountains enhancement project, partnerships with other communities, especially the Fort McDowell Yavapai Nation, the development of the State Trust Land consistent with the information about the high quality of development, the year-long citizen-driven strategic plan, the amenities, Town’s general plan. Government and Organization The Town of Fountain Hills is an Arizona Municipal Corporation, acting as a general law Town as prescribed in the Arizona Revised Statutes. The Town was incorporated on December 5, 1989, with the governmental and administrative affairs of the Town operating under the Council-Manager form of government. The Town Council is responsible for, among other things, the adoption of local ordinances, budget adoption, the development of citizen advisory committees, and hiring the Town Manager. The Town Manager is responsible for implementation of the policies of the Town Council and administering the Town’s operations through six department directors and 68 full-time and 36 part-time employees. The Presiding Judge, Town Attorney, and Town Prosecutor are under the direction of the Town Council. Council dais in Town Hall
x Major Employers Town of Fountain Hills, Arizona Residents of the Town can find employment in the Town of Fountain Hills, neighboring Scottsdale, the Fort McDowell Indian Community, or the municipalities that make up the greater Phoenix metropolitan area. Town of Fountain Hills, ArizonaPrincipal Employers, Current Year and Nine Years Ago Percentage Percentageof Total City of Total CityEmployerT ype Employees Employment*Employees Employment*Fountain Hills Unified School District No. 98 Education 285 2.26%235 3.39%Monks Construction Construction 190 1.51%None N/ATargetRetail1301.03%None N/AMCO Properties, Inc.Property Management 125 0.99%85 1.22%Safeway Food Stores Grocery Store 110 0.87%95 1.37%Town of Fountain Hills Government 87 0.67%85 1.22%F r y ' s Grocery Store 80 0.63%None N/ABasha's Grocery Store 70 0.56%70 1.01%Sun Ridge Canyon Golf Course Golf Course 70 0.56%70 1.01%Eagle Mountain Golf Course Golf Course 70 0.56%40 0.58%Golf International Golf Course 65 0.52%50 0.72%Total 1,282 10.16%730 10.52%Source: Department of Economic Security, Research Administration, CES/LAUS UNIT.2006 1997The 1998 and 2006 Arizona Industrial Directory; Greater Phoenix Chamber of Commerce; Community Profiles Arizona Department of Commerce; and an individual employer survey.* Employment information for 2006 as of May 2006. Arizona Unemployment Statistics Program, Special Unemployment Report, Arizona Assessed Valuation of Major Taxpayers Schedule 9 Town of Fountain Hills, Arizona Top Ten Property Taxpayers Current Year and Nine Years Ago. Percentage Percentage of Total of Total Taxable Taxable Taxable Taxable Assessed Assessed Assessed Assessed Value Value Value Value $3,261,128 0.87% 2,112,467 $ 2.05% 3,180,452 0.85% 2,103,803 2.04% 2,946,653 0.79% 1,769,358 1.72% 2,251,544 0.60% 715,908 0.70% 2,030,676 0.54% 631,287 0.61% 1,873,070 0.50% 589,465 0.57% 1,754,079 0.47% 486,961 0.47% 1,695,043 0.45% 478,720 0.47% 1,593,577 0.43% 371,149 0.36% 1,585,520 0.42% 316,115 0.31% Total 22,171,742 $ 5.94% Total 9,575,233 $ 9.30% Source: Maricopa County Treasurer's Office. Note: The schedule should include the ten largest taxpayers, unless fewer are required to reach 50% of the revenue base Qwest Corporation Chaparral City Water Company 2006 1997 Taxpayer Taxpayer Chaparral City Water Company U S West Communications Inc. Inland Western Fountain Hills Four Peaks MCO Properties Inc. WSL Fountain View Investors V LLC Eagle Mountain Investors LLC Target Corporation Safeway Inc. #1291 MCO Properties LP Basha's Cox Communications Inc. Fourway Properties Limited Partnership Adero Canyon LLC Golf International Inc. En LLC City of Scottsdale Four Peaks Limited Partnership Fountain Hills Old Vine LP
xi POPULATION STATISTICS Town of Maricopa State of Years Fountain Hills County Arizona 2005 Special Census 24,492 * 3,700,516 5,832,150 2000 Census 20,235 3,072,149 5,130,632 1995 Special Census 14,146 2,551,765 4,228,900 1990 Census 10,190 2,122,101 3,665,339 _____________________ Source: U.S. Census Bureau, Maricopa Association of Governments.
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xiii Table of Contents Budget Message Budget Transmittal Message 1 Fiscal Year 2006-200 7 Goals, Accomplishments & Activities 4 Budget Schedule and Process 10 Financial Policies 15 Budget Summary All Funds Revenue and Expenditure Summary 27 General Fund Revenues 41 General Fund Expenditure Summary 51 Department Budgets Town Council 53 Municipal Court 59 Administration 65 Operational & Community Support 73 Information Technology 79 Public Information 87 Public Works 93 Facilities Maintenance 101 Planning & Zoning 105 Building Safety 113 Parks and Recreation 119 Parks 127 Commun ity Center 141 Senior Services 149 Public Safety Law Enforcement 157 Fire Department 163 Special Revenue Funds Highway User Fund 169 Downtown Development 183 Schedules/Summaries Debt Service 189 Summary of Tax Levy and Tax Rate Information 196 Schedule of Fountain Hills Assessed Valuation 197 Development Fees 199 Capital Projects 207 Schedule of Authorized Positions 223 Glossary 233
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1 FISCAL YEAR 2007-08 BUDGET TRANSMITTAL MESSAGE To the Honorable Mayor and Town Council: I am pleased to submit the Operating and Capital Improvement Budget for the Town of Fountain Hills for the fiscal year beginning on July 1, 2007 and ending June 30, 2008 (FY2007-08). This budget is balanced and designed to convey to the public a budget message that articulates priorities and issues for the upcoming fiscal year. The budget also highlights any issues facing the staff in developing the budget, as well as short-term financial and operational policies that were instrumental in guiding the development of the annual budget. Although each fund should be viewed individually, the Town’s total budget, including all funds, is estimated at $30.9 M in expenditures with projected revenues of $27 million. The Capital Project fund expenditures exceed revenues due to capital projects that will be completed with construction related reserves that have accumulated in the Capital Projects Fund over the past couple of years. Staff continues to exercise fiscal conservatism with both revenue projections and expenditure controls, which is apparent when comparing the past and proposed year operating (General Fund) budget – despite the increase in overall operating and employe e benefit costs the budget increased only 2% from the prior year’s adopted budget, excluding capital expenditures. Town Council’s FY 2007-08 Prioritized Goals The Town is proposing a conservative balanced budget that includes appropriations for the goals and priorities established by the Town Council. The Town Council met in February, 2007 during a retreat to develop goals and objectives for the FY2007-08 budget year as part of an annual operating planning program. At the retreat the Council established eight goals consistent with the strategic plan and a series of objectives to achieve those goals, as guidance to the Town Staff. Participants set goals through Fiscal-Year 2007-08 (July 1, 2007 to June 30, 2008), and identified some preliminary supporting objectives that would lead to achieving the goals, as guidance to the Staff. Participants in the retreat reviewed those objectives, and in some cases, suggested changes to the objectives, to improve accountability for and implementation of the goal. The Town Manager and staff then met to prepare an implementation plan to be incorporated into the FY2007-08 budget. The majority of the initiatives apply to strategic priorities that were adopted in the Town’s Strategic Plan 2006-2010; the FY2007-08 goals are bolded. Council Retreat Identify the priorities Prioritize goals and objectives Develop the workplan
2 Develop financial implementation plan for strategic priorities Goal 1. To create a timeline and implementation plan for the second year of the Strategic Plan. Resolve projected revenue shortfall by Dec. 31, 2007 Goal 2. To make a recommendation by December 31, 2007 for a resolution of the revenue shortfall for the community. Goal 3. To contract an economic study of the current and future impacts of changes in key revenue options. Work with local schools The Council noted that it will continue ongoing activities working with the Fountain Hills Unified School District the next year, including development of joint-use parks on District lands. Low-water native landscaping The Council noted that this Strategic Priority was effectively achieved in Fiscal Year 2006-2007. Strictly enforce General Plan & zoning ordinances The Council noted that it will continue ongoing implementation of this Strategic Priority during the next year. Create commercial architecture review board The Council noted that this Strategic Priority was effectively achieved in Fiscal Year 2006-2007. Annex State Trust Land Goal 4. To ensure responsible development of the State Trust Land for the community, in keeping with the character of the community. Enhance pedestrian safety Goal 5. To improve pedestrian safety for residents and visitors. Enhance stewardship of the natural environment Goal 6. To provide open access to the McDowell Mountain Preserve for the public. Goal 7. To create a responsible environmental policy for the community, addressing: dark skies, water, noise, recycling, hazardous waste, energy, solar energy, solid waste, trails and natural environment. Business relations: integration with the Town and economic development While business relations were not addressed by the Town’s Strategic Plan 2006-2010, the issue was raised in the Town Council’s discussion at the retreat, and the Council established a goal. Goal 8. To promote commercial development and business vitality in Fountain Hills, to meet consumer needs. Upon adoption of the Town Council goals, specific work-plans are developed in each of the operating divisions to ensure that Fountain Hills residents can monitor the improvement in Town services and the achievement of the Council’s goals. The matrix below indicates which departments/divisions are responsible for the implementation of FY2007-08 goals and objectives and shows the relationship between the activities performed by the operating divisions and the effect on operating budgets reported in the division budget summaries.
3 Goal Planning Manager Parks Streets Estimated FY07 -08 Costs* To create a timeline and implementation plan for the second year of the Strategic Plan. √ $0 To make a recommendation by December 31, 2007 for a resolution of the revenue shortfall for the community. √ $45,000 To contract an economic study of the current and future impacts of changes in key revenue options. √ $72,000 To ensure responsible development of the State Trust Land for the community, in keeping with the character of the community. √ $30,000 To improve pedestrian safety for residents and visitors √ $164,869 To provide open access to the McDowell Mountain Preserve for the public. √ $169,160 To create a responsible environmental policy for the community, addressing: dark skies, water, noise, recycling, hazardous waste, energy, solar energy, solid waste, air quality, trails and natural environment. √ $10,00 0 To promote commercial development and business vitality in Fountain Hills, to meet consumer needs. √ $25 ,000
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A Year in Review - Fiscal Year 2006-2007 Goals, Accomplishments & Activities
*as of March 31, 2007
The FY06-07 goal activities are as follows:
¾ To identify and inform Fountain Hills residents of the projected long-term revenue gap and
decide upon a 2007 ballot initiative
¾ Work with local schools to establish and address common issues affecting the Town, schools and
community by the end of the 2006-07 school year
¾ To promote the use of low-water landscaping in new Fountain Hills developments
¾ To strictly enforce the General Plan and Town ordinances
¾ Create commercial architecture review board to regulate architectural physical appearance for
commercial properties
¾ Annex the State Trust Land into Fountain Hills
¾ To create a plan for pedestrian safety in Fountain Hills; a map has been completed and a long-
range projected plan for the construction of these sidewalks is nearing completion. The map
identifies the current sidewalk locations and locations of proposed sidewalks.
¾ To improve the business community and the Town
Six of the Council’s goals have been substantially completed, i.e., informing residents of the projected
long-term revenue gap, working closely with local schools, creating a commercial architecture review
board, promoting low-water landscaping, enforcement of the General Plan, and Annexation of the State
Trust Land.
Significant progress has been made toward the goals of creating a pedestrian safety plan, and improving
relations between the business community and the Town.
5 Budget at a Glance For the past five years the Town of Fountain Hills has received the Government Finance Officers Association (GFOA) Distinguished Budget Presentation Award. This award is presented to government entities that meet certain criteria in the presentation of their budget. This “Budget At A Glance” section is designed to provide the layperson with a broad view of the contents included in the FY2007-08 Fountain Hills budget, its processes, issues and anticipated outcomes. Document sections are cited in order to guide the reader to more in-depth information and explanation of the drivers of Fountain Hills operating budget and capital improvement program. The FY2007-08 budget forecasts revenues, expenditures and ending fund-balances for the upcoming fiscal year, beginning with July 1, 2007 through June 30, 2008. Following is a summary and detailed narrative description of the assumptions used in this forecast. Also, included are graphs and narratives discussing the primary economic drivers on which the forecasts are based. The forecast provides a conservative estimate of the Town’s fiscal condition through the next year given realistic economic forecasts, current Town policies and existing laws. The forecast does not incorporate possible policy changes, out of pattern spending priorities, or proposed new revenue sources; as such, the forecast provides the Town with a useful assessment of the short-term impact of current policies. As in years past, the main focus of the proposed budget is the General Fund, the Town’s largest fund, which supports basic services. Developing the proposed budget required making choices to achieve a budget that balances the available resources with the Council goals, while maintaining a level of service that enhances the quality of life in Fountain Hills. In developing the proposed budget, Town staff followed a zero-based approach, leading to a focused review of services delivered by the Town, increased scrutiny of expenditures, and prioritization of programs to be funded using limited resources. Additionally, the Town will focus on funding one-time capital projects with one-time revenue sources, such as construction funds and excess revenues in the General Fund. Ongoing operating costs should be funded with stable and reliable revenue sources. Income Tax, VLT 18% (HURF) 7% Sales Tax 36 % 10% Special Revenue 11% Debt Service 9% Tax The budget could not be prepared without considering the condition of the regional, state and national economies, as well as legislative decisions that affect local governments. What happens at these levels affects both the revenue that Fountain Hills receives and the services we provide. Last fiscal year construction related revenues accounted for approximately 22% of the Town’s budget. Due to the decline in building activity only 9% of FY07-08 revenue is derived from construction related activity. As this source of revenue declines the Town will need to find alternate sources of revenue to sustain existing community services and programs.
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The FY2007-08 budget is based on the following assumptions:
• continued weakness in new home construction due to the lack of available land
• annexation of a parcel of State Trust land auctioned in March of 2007 that will provide a
maximum of 1,750 residential units within 1,276 acres of land; development of this parcel will
eventually provide additional one-time construction related revenues over the short-term but will
also increase demand for services over the short and long-term
• no legislative change in distribution of state shared revenues
ECONOMY
Under the proposed budget, overall General Fund revenues for FY2007-08 are projected to grow by only
1.3% over the FY06-07 budget, including a significant increase in State Shared Revenues (23.5%). The
increase in income tax revenues is based on two years prior corporate and individual income taxes;
therefore, future tax revenues will decline based on the slowdown in the 2006 economy. Similarly,
revenues from construction related permits are anticipated to decline over 33% during FY2007-08 with
the decrease in multi-family housing units.
General Fund expenditures are projected to increase only 1.5% over last years’ budget, including capital
expenditures, as the Town continues to take advantage of one-time revenues catching up on infrastructure
projects delayed due to the Budget Reduction Plan in FY02-03. Fountain Hills’ goals are long-term and
address the entire organization, such as the long-term impacts of revenue shortfalls related to the decline
of construction related activity revenue. These long-term forecasts show that the Town’s operating costs
will begin to outpace revenues and alternative revenue sources or program cuts will need to be
considered. Given the cyclical nature of the economy, it is difficult to project revenues two or more years
into the future with any degree of certainty. However, the long-range forecasts serve as an early warning
that the Town must continue to exercise restraint in its long-term fiscal planning. The Town is past its
highest historic period of expansion; with an economy that is maturing and moving to a slower – and
more sustainable – level of growth.
After more than 15 years of
continued improvement in the
Fountain Hills real estate and
construction sector the local
economy is beginning to show
signs of slowing growth as we
near build-out. Factors affecting
the Town’s current economic
condition include population,
new home construction and retail
sales. The growth of these
indicators is shown in the chart
at right. Retail activity continues
to grow at a steady pace while
construction activity decreased
significantly during FY2007.
7 Budget Highlights Key initiatives of the proposed FY07-08 budget include the following - a more detailed analysis of all the Town’s revenues and expenditures is included in the budget summary and department sections. Greater Capital Investment - A significant component 23.2% of the proposed budget is the investment in capital projects such as street maintenance and improvements, park improvements, major equipment purchases, technology upgrades and other major infrastructure projects. These expenditures are possible with the influx of one-time construction related revenues expected during FY2007-08. Major projects included in the FY07-08 budget are as follows; a more detailed description of each project in included in the Capital Improvement section of the budget document. • Design of trailhead and access to McDowell Mountain preserve • Design of westbound climbing lane of Shea Boulevard • Design of Shea Boulevard, Technology to Saguaro Boulevards, for third lane and signal • Design for sidewalk plan Fayette to Town limits • Construction of Saguaro Boulevard drainage improvements in preparation for future mill and overlay of Saguaro • Construction of multi-purpose bay wash for heavy equipment • Complete landscaping and irrigation surrounding new splash park • Phase II improvements to Desert Vista Neighborhood Park • Master plan for school and Town joint use parks • Construction of traffic signal at Palisades and Sunridge Boulevards • Analysis of pedestrian safety at Saguaro and Avenue of the Fountains • Purchase of new fire truck and street sweeper The chart below depicts the total dollars spent on capital projects since FY2002-03, which includes major road maintenance and improvements. HURF Fund 8 % Special Revenue Fund 6 % Excise Tax 3% Debt Service 7 % Development Fees 7 % Capital Projects 16 % In addition to concerns from the revenue side of the budget picture, there are also concerns over the increased cost of doing business. The Town is a service organization with 17.5% of its total operating costs in personnel. However, public safety (police and fire) service that is provided by outside contracts are exposed to the same personnel related increases in costs – these costs are eventually borne by the taxpayers through the contractual negotiations. The General Fund accounts for 50.5% of the overall Town budget.
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Personnel – This budget includes minor organizational changes relating to divisions, departments and
positions. The most significant change is the addition of two Park Rangers to the parks division. The
enforcement of the Town Code specific to parks has become an issue. Further, park vandalism has
continued to increase; not only in the number of incidents but also their severity and dollar cost to the
community. These issues will likely only increase as the Town continues to grow. As additional
recreational amenities are added, not only in parks but also in other areas of the Town, such as a skate
park, trailhead locations and park entry/exit gates, the need for opening and closing these amenities in a
consistent and timely manner is also growing.
Another significant change is the separation of the Planning & Zoning Division from Public Works and
the creation of a new Planning Department. While not adding much additional cost, this change will
facilitate a smooth transitional period if and when the current Public Works Director eventually retires.
Future recruitment efforts to fill a Public Works Director position with planning, code enforcement,
building safety, public works and streets division responsibilities would be challenging. Creating a
Planning Department to oversee those areas that are building related will provide more effective use of
department directors.
A new division, Public Information, was created within the Administration Department. The
responsibilities of this division are to respond to media inquiries, oversee the Town’s communication plan
and public venues (web page, Channel 11, news releases, etc.). The costs related to Public Information
were previously included within the Information Technology Division budget. While the Public
Information costs were removed from the Information Technology budget, the salaries and benefits of the
IT Coordinator were added to this budget to more accurately reflect IT related costs (previously included
in the Administration budget).
In the Seniors Division one full-time Supervisor will oversee the division instead of two part timers to be
consistent with the rest of the Town’s management structure.
Even with the addition of two new positions, these changes do not increase the Town’s overall authorized
full time equivalent positions
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Maintenance of the Reserve Fund - The proposed budget continues the policy of setting aside a reserve
equal to 30% of the General Fund budget to ensure that the Town can provide basic services in the event
of major emergencies. This reserve is also very important in retaining the Town’s AA3 bond ratings.
Reserves in excess of the fund balance policy are transferred to the Capital Projects fund for future
appropriation by the Council. Projected excess General Fund revenues in the amount of $1.0M will be
transferred to the Capital Projects Fund on June 30, 2007, per Resolution 2005-50 adopted in September,
2005. With projected expenditures of $3.5M in the Capital Projects Fund in FY2007-08 the estimated
balance as of June 30, 2008, will be $6.4M.
Recommendation for One-Time Revenues
A Debt of Gratitude
I would like to offer my special thanks to the Fountain Hills Mayor, Town Council members, and the
numerous commission members for their many hours of volunteer service without which the Town could
not function in the fine manner that it has over the years. This volunteer core of more than 200 citizens
offers Town staff a vast bank of knowledge about subjects that contribute not only to planning for the
present, but also for the future of Fountain Hills.
I would also like to thank the Town of Fountain Hills department directors and supervisors for their
patience and great effort in preparing their departmental budgets. The directors and their staff attended
several sessions with the executive budget team of the Finance Director and Assistant to the Town
Manager to justify their programs, develop cost estimates, and answer many questions. The team’s
efforts have resulted in a balanced budget, which achieves the Council’s current goals, and assists in
future planning towards the vision of Fountain Hills.
Respectfully submitted,
Timothy G. Pickering, CEcD, ICMA-CM
Town Manager
The proposed FY07-08 budget for all
funds includes capital expenditures in
the amount of $7.2M funded by
development fees, general fund transfer,
and excise taxes (see page 40). Non-
recurring revenues (construction sales
tax) should not be depended upon for
operating expenditures. Thus one time
revenues from construction sales tax
have been recorded in the Capital Fund
to be used for one time capital items.
Conversely, advertising and residential
rental taxes, which are ongoing revenue,
are now in the General Fund rather than
in the Capital Fund.
10 Budget Schedule January 5, 2007 Department Directors provide accounting requests for proposed new staff for FY07-08 January 27 Directors turn in to Finance updated capital projects and costs through FY2015 Finance submits estimated year-end revenue, expenditures and fund balances to Town Manager, Department Directors Department Directors input operating budget line items and justifications on Access January 31 Finance submits updated capital project plan to Town Manager February 2 Council Goal-Setting, budget priorities identified Friday, February 23 Director Retreat, plan to implement council goals Friday, March 2 Department directors input proposed supplemental requests for FY08 budget into Access database (capital, strategic plan goals, Council requests) Finance submits FY07-08 revenue projections to Town Manager for review Friday, March 9 Written verbiage in Word format for draft budget due to Finance (electronic only) March 12–March 31 Staff and Town Manager meet to review justifications and decisions made for requested expenditures Department Directors make changes to verbiage to reflect changes Friday, April 13 Completed draft budget document submitted to Town Manager April 16 – April 23 Review of draft budget document by Town Manager, revisions made by Finance April 27 Council receives copy of draft budget Tuesday, May 1 Budget work-study for public and Town Council Thursday, May 17 Adopt tentative budget May 23 & 30 Publish tentative budget in newspaper Thursday, June 7 Public Hearing and adoption of final budget Thursday, June 21 Adopt property tax levy
11 Budget Process Mission of the Budget Process Communication and involvement with citizens and other stakeholders is stressed. The broad nature of the budget mission allows issues to be addressed that have limited the success of budgeting in the past. Apathy is a serious illness of government; it is in the best interests of government to have involved stakeholders. The term stakeholder refers to anyone affected by or who has a stake in government. This term stakeholder includes, but is not limited to: citizens, customers, elected officials, management, employees and their representatives, businesses, vendors, other governments, and the media. It is vital that the budget processes include diverse stakeholders. Each year the Town of Fountain Hills budget is developed from the Town Council’s priorities by the Finance Department with the individual departments and the Town Manager. Meetings with each department, the Town Manager and the Finance Department are held during the month of March. After these meetings are completed, a proposed balanced budget is prepared for submittal to the full Town Council and public in May. Recommended Budget Practices The Town of Fountain Hills budget process is designed to meet citizens’ needs for information and input; decision makers’ needs for information and advice from citizens on their desired blend of services; and the time line set by the State of Arizona through Arizona Budget Law. The Town of Fountain Hills budget process incorporates the recommended practices promulgated by the National Advisory Council on State and Local Budgeting (NACSLB). Concurrently, Town staff apply diligent effort into improving the processes, decisions and outcomes with each new budget year. The NACSLB’s practices encourage governments to consider the long term consequences of actions to ensure that impacts of budget decisions are understood over a multi-year planning horizon and to assess whether program and service levels can be sustained. Budget Definition All cities and towns in Arizona are required to adopt an annual budget. State law dictates that fiscal years begin on July 1 and end on June 30. Certain parts of the budget document such as summaries of revenues and expenditures showing two years of spending history are required by State law. A good budget process is characterized by several essential features: • Incorporates a long-term perspective • Establishes linkages to broad goals • Focuses budget decisions on results and outcomes • Involves and promotes effective communication with stakeholders • Provides incentives to government management and employees
12 These key characteristics of good budgeting make clear that the budget process is not simply an exercise in balancing revenues and expenditures one year at a time, but is strategic in nature, encompassing a multi-year financial and operating plan that allocates resources on the basis of identified goals. A good budget process moves beyond the traditional concept of line-item expenditure control, providing incentives and flexibility to managers that can lead to improved program efficiency and effectiveness. Principles and Elements of the Budget Process The budget process consists of four broad principles that stem from the definition and mission previously described. These principles encompass many functions that spread across a governmental organization. They reflect the fact that development of a balanced budget is a political and managerial process that also has financial and technical dimensions. Each of the principles of the budget process incorporates components or elements that represent achievable results. These elements help translate the guiding principles into action components. Individual budgetary practices are derived from these elements. The principles and elements provide a structure to categorize budgetary practices. 1) Establish broad goals to guide government decision-making – a government should have broad goals that provide overall direction for the government and serve as a basis for decision-making. a) Assess community needs, priorities, challenges and opportunities. b) Identify opportunities and challenges for governmental services, capital assets, and management c) Develop and disseminate broad goals 2) Develop approaches to achieve goals – a government should have specific policies, plans, programs, and management strategies to define how it will achieve its long-term goals. a) Adopt financial policies b) Develop programmatic, operating, and capital policies and plans c) Develop programs and services that are consistent with policies and plans d) Develop management strategies 3) Develop a budget consistent with approaches to achieve goals – a financial plan and budget that moves toward achievement of goals, within the constraints of available resources, should be prepared and adopted. a) Develop a process for preparing and adopting a budget b) Develop and evaluate financial options c) Make choices necessary to adopt a budget 4) Evaluate performance and make adjustments – program and financial performance should be continually evaluated, and adjustments made, to encourage progress toward achieving goals. a) Monitor, measure, and evaluate performance b) Make adjustments as needed When does the “budget season” start? The budget process typically begins in January when the Finance Department begins to review current levels of service, Council goals and objectives as identified at the annual Council retreat, proposed capital improvements, and financial forecasts. In reality, the budget process for the Town is actually an ongoing process. Throughout the fiscal year, citizens and staff submit suggestions for new services, regulations, funding sources, and improved service delivery, as well as concerns to the Town Council and commissions for discussion, study, and/or implementation. Advisory boards and commissions develop plans for new or enhanced programs to be included in the following year’s budget proposal.
13 Implementing, Monitoring, and Amending the Budget A budget is an annual planning tool - it identifies the Town’s work plan and matches the financial, material, and human resources available with the requirements to complete the work plan. It includes information about the organization and identifies the Council policy that directed the budget preparation. Although a budget is often discussed as a financial document, the financial portion means very little without the policy and administrative information that explains what the organization intends to do with the financial resources. In July, the Town staff begins the process of implementing the newly adopted budget and is accountable for budgetary control throughout the fiscal year. Revenue and expenditure patterns are examined, compared to budget plans, and corrective action, if necessary, is taken during the fiscal year. Town management is provided with a monthly budget and activity report; the Town Council is provided a summary budget report at the end of each quarter disclosing actual revenue, expenditure, and fund balance performance as compared to the budget. The Town of Fountain Hills budget is adopted at a department level and the Capital Improvement Plan is adopted at a project level. Control of each legally adopted annual budget is at the department level; the Town Manager may at any time transfer any unencumbered appropriation balance or portion thereof between general classifications of expenditure (line items) within a department. The items are reduced by a like amount. At the request of the Town Manager, the Council may transfer any unencumbered appropriation balance or portion thereof between one department to another. Pursuant to Arizona Revised Statutes, “No expenditure shall be made for a purpose not included in such budget..”. Thus a Contingency line item is included within the General Fund to accommodate most unplanned expenditures. The other option in amending the budget, according to state law, is for the Council to declare an emergency and then transfer the monies from one line item or department to another. In essence, any approved Council transfers do amend the budget although the budget is never reprinted. All transfers are reflected on the following year’s legal schedules as required by the Auditor General’s Office. Budgetary and Accounting Basis The budget is prepared on a modified accrual basis of accounting for all fund types. This means that expenditures are recorded when the related fund liability is incurred, and revenues are recognized only when they are measurable and available. In all cases, when goods and services are not received by year-end, the encumbrances lapse. It also means certain transactions are recognized in the budget on a basis other than Generally Accepted Accounting Principles (GAAP), which is the basis used to prepare the Town’s Comprehensive Annual Financial Report (CAFR). The major differences between the budgetary and GAAP basis are: • Certain revenues, expenditures and transfers are not included on the budget basis, but are accrued and reported on the GAAP basis. For example, increases or decreases in compensated absences are not reported for budget basis purposes, but are presented as revenues or expenditures on the GAAP basis. • Depreciation is not budgeted as an expenditure in budgetary accounting • Capital outlay is an expenditure in budgetary accounting and an asset in GAAP
14 • Certain debt service principal and interest payments are accounted for as expenses in the General Fund for budget basis purposes, but are reported as expenses in the Debt Service Fund on the GAAP basis. All actual amounts in the budget document are shown on the budgetary basis to facilitate meaningful comparisons. What funds are included in this budget? The accounts of the Town are organized on the basis of funds or account groups, each of which is considered a separate accounting entity. Government resources are allocated to and accounted for in individual funds based on the purposes for which they are to be spent and the means by which spending activities are controlled. The Town of Fountain Hills appropriates all funds in its budget process: General Fund – revenues and expenditures to carry out basic governmental activities such as police and fire, recreation, planning, legal services, administrative services, etc. (non-restricted). Special Revenue Funds – revenues derived from specific taxes or other earmarked revenue sources, usually required by statute or ordinance to finance particular activities. Highway User Revenue Fund (HURF) and grants are examples of special revenue funds (restricted by statute). Excise Tax Revenue Funds – designated for bond payments for mountains, Civic Center phase II project, and downtown development (restricted by legislative action). Debt Service Funds – established to account for the accumulation of resources for, and the payment of, general long-term debt principal and interest. Municipal Property Corporation (MPC) and Community Facilities District (CFD) funds are included within the debt service funds. Capital Projects Funds – to account for the purchase or construction of major capital facilities, heavy equipment, park improvements and major road improvements. The Capital Project Fund revenues are derived from excess General Fund revenues and 85% of the construction related local sales tax. Operating and Capital Budget Relationship Included within the annual budget is a Capital Project Fund, presented on a budget basis. Capital project budget funding sources are matched with budgeted expenditures. Governmental accounting procedures require adequate budget to pay for an entire contract to be available and appropriated in the period in which a contract is entered; therefore, expenditures are presented on a budget basis as opposed to cash flow basis. For example, a 180 day construction contract entered into in May of fiscal year one would have cash expenditures from May of fiscal year one through October of fiscal year two, however, the entire budget for this contract must be appropriated in fiscal year one, the year in which the contract was entered; any unspent funds at fiscal year-end are carried forward and budgeted again in year two. When can a citizen have input into the budget process? Town staff welcomes comments and suggestions throughout the year. The first opportunity for the Town Council to contribute to the budget is during the annual goal setting retreat held in January. The proposed budget is presented to the public and Town Council in May at which time a public hearing is held to receive input. This is the opportunity to increase the budget for the next fiscal year before the maximum spending amount is established. Once the maximum spending amount is adopted as the tentative budget, line items can only be exchanged or decreased prior to the budget’s final adoption.
15 Town of Fountain Hills Financial Policies The principles of sound financial management establish the framework for overall fiscal planning and management. The principles set forth guidelines for both current activities and long range planning. Following these principles will enhance the Town’s financial health as well as its image and credibility with its citizens, the public in general, bond rating agencies and investors. The policies will be reviewed annually to assure the highest standards of fiscal management. Policy changes will be needed as the Town continues to grow and becomes more diverse and complex in the services it provides, as well as the organization under which it operates to provide these services to its citizens. The Town Manager and staff have the primary role of reviewing and providing guidance in the financial area to the Town Council. The overall financial goals underlying these principles are: 1. Fiscal Conservatism: to ensure that the Town is at all times in a solid financial condition, defined as: a) cash solvency – the ability to pay bills b) budgetary solvency – the ability to balance the budget c) long run solvency – the ability to pay future costs d) service level solvency – the ability to provide needed and desired services e) adhering to the highest accounting and management practices as set by the Government Finance Officers’ Association standards for financial reporting and budgeting, by the Governmental Standards Board and other professional standards f) One time capital costs are paid for with one time revenues 2. To maintain an Aa3 or better bond rating in the financial community to assure the Town taxpayers that the Town government is well managed and financially sound. 3. To have the ability to withstand local and regional economic fluctuations, to adjust to changes in the service requirements of our community, and to respond to changes in Federal and State priorities and funding as they affect the Town’s residents. 4. To deliver quality services in an affordable, efficient and cost-effective basis providing full value for each tax dollar. Fund Balance Policy Fund balance is defined as the cumulative difference of all revenues and expenditures, also considered the difference between fund assets and fund liabilities, known as fund equity. Fund balance is an important indicator of the Town’s financial position and adequate reserves must be maintained to allow the Town to continue providing services to the community during periods of economic downturns and/or unexpected emergencies or requirements. The level of Fund Balance is related to the degree of uncertainty that the Town faces. A prudent level of financial resources is necessary to protect against the need to reduce service levels or raise taxes and fees due to temporary revenue shortfalls or unpredicted one-time expenditures. With the Town dependency upon State Shared Income and State Sales Tax revenues for one third of the General Fund budget, there is increased opportunity for fluctuation. Additionally, a significant portion of Town revenue is received from sales taxes – both state shared and local - which are sensitive to fluctuations in the economy.
16 Therefore, the level of reserves needs to be sufficient to ensure stability in on-going government operations during a slowdown in the economy or legislative changes to the revenue sharing formula. Other objectives that influence the size of the fund balance are: a) preserving or improving the Aa3 bond rating b) maintaining a positive trend to historical fund balances c) maintaining a rating equal to or better than surrounding communities d) maintaining ratios consistent with desired outcomes of ten key ratios of financial condition (Government Finance Review, Dec. 1993) General Fund Balance The Town fund balance consists of three (3) components, defined below. In order to satisfy the objective of maintaining a bond rating equal to or better than surrounding peer communities a fund balance of at least 30% of revenues is recommended. The three components added together will help achieve the 30% goal. Definitions: Undesignated unreserved fund balance – available expendable financial resources that are not the object of tentative management plans. Also defined as residual balance after revenues, expenditures and reserved/designated fund balance and available for future year appropriation. Designated unreserved fund balance – management’s intended use of otherwise available expendable financial resources reflecting actual plans submitted by the Town Manager and approved by the Town Council. An example would be funds set aside for future capital purchases, land acquisition, construction projects, equipment replacement, etc. Reserved fund balance – the portion of the Town funds that are not available for appropriation. Guidelines: In order to achieve the objectives of this policy, and to maintain sufficient working capital and a comfortable margin of safety to address emergencies and unexpected declines in revenue without borrowing, the following guidelines shall be adhered to by the Town Manager, staff and Town Council: Undesignated unreserved fund balance – designated for unanticipated expenditure or loss of revenue, the Town of Fountain Hills' undesignated unreserved fund balance in the General Fund at the end of any fiscal year will be equal to no less than 30 days of annual operating expenditures for the upcoming fiscal year. This contingency will provide for the temporary financing of an unforeseen nature for that year. Expenditures for these emergency or unforeseen appropriations can only be undertaken with Town Manager approval and only if funds are not available in the department requesting the contingency funding. Expenditures exceeding $20,000 will require Council approval. This contingency will expire at the end of each fiscal year and any unused balance will be included with the funds available for appropriation in the following fiscal year. Designated unreserved fund – the Town will maintain a designated unreserved fund balance in the General Fund of a minimum ten percent (10%) of the average actual General Fund revenues for the preceding five fiscal years. These reserves will be designated for “pay-as-you -go” capital replacement expenditures, equipment replacement, capital projects, prepay existing Town debt, or any other
17 expenditure that is non-recurring in nature. The 10% is the minimum and is based on the Property and Equipment Replacement Schedule, which may be increased to accelerate accumulation funds for a large capital expenditure. To the extent these reserves are expended, additional funds necessary to restore this additional ten percent (10%) amount will be provided in at least approximately equal contributions during the five fiscal years following the fiscal year in which the event occurred. The designated General Fund Balance can only be authorized for expenditure upon recommendation of the Town Manager and vote of the Town Council. Reserved Fund Balance – the Town will maintain a reserved fund balance in the General Fund of 20% of the average actual General Fund revenues for the preceding five fiscal years, indicating stable fiscal policies. The maintenance of this fiscal balance is a particularly important factor considered by credit rating agencies in their evaluation of the credit worthiness of the Town. It is of primary importance that the Town’s credit rating be protected. During the annual budget process the Town Manager will estimate the surplus or deficit for the current year and prepare a projection of the year-end undesignated general fund balance. Such projection will include an analysis of trends in fund balance levels on an historical and future projection basis. Funds in excess of the fund balance goal will be retained in the undesignated unreserved General Fund Balance, and may be considered to supplement "pay as you go” capital outlay expenditures, or may be used to prepay existing Town debt. These funds may not be used to establish or support costs that are recurring in nature. The undesignated unreserved, designated unreserved and reserved fund balance will be established each fiscal year during the budget process depending on planned expenditures but cannot exceed accumulated revenues. This policy will be reviewed by the Town Manager every three years following adoption or sooner at the direction of the Town Council. Special Revenue Funds The Highway User Revenue Fund (HURF) is a restricted fund and depends upon State Shared Revenues for over 90% of annual revenues. This fund may only be used for street and highway purposes. The combined undesignated unreserved, designated unreserved and reserved Fund Balance will be based on the minimum requirement as specified in the Property and Equipment Replacement Schedule. The schedule will be reviewed on an annual basis to determine the required amount to be set aside as designated unreserved Fund Balance. The Excise Tax (.4% of Local Sales Tax) Fund is a restricted fund dedicated to Downtown Development, Civic Center and mountain bonds. The combined undesignated unreserved, designated unreserved and reserved Fund Balance will be no less than the annual debt service payment for Land Preservation and prior year available funds for Downtown Development. Debt Service Funds The Debt Service Fund is established for the payment of principal and interest on bonded indebtedness. Revenues are derived from a property tax levy, pledged excise taxes, municipal property lease payments and shared revenues. Revenues are received in amounts sufficient to pay the annual debt service payment, therefore, the undesignated unreserved, designated unreserved and reserved Fund Balance will be no less than the annual debt service payment due on July 1 of the new fiscal year.
18 Development Fee Funds The Capital Project Funds includes accumulated Development Fees that are assessed on new construction for the purpose of funding growth. These funds are restricted to growth-related capital expenditures. The Development Fees must be expended within six years of collection or refunded to the taxpayer. Capital Project Funds Capital projects include all equipment and facilities with a useful life of greater than ten years and a cost greater than $50,000. These purchases are made with one time revenues derived from the construction portion of the local sales tax. Financial Planning Fiscal planning refers to the process of identifying resources and allocating those resources among competing purposes. The primary vehicle for this planning is the preparation, monitoring and analysis of the Town’s budget. It is increasingly important to monitor the performance of the programs competing to receive funding. 1. The Town Manager shall submit to the Town Council a proposed annual budget, with their recommendations, and shall execute the budget as finally adopted, pursuant to Section 15.1-602 of the Arizona Revised Statutes, as amended. The Town will budget revenues and expenditures on the basis of a fiscal year which begins July 1 and ends on the following June 30. The Town Council will adopt the budget no later than June 30. 2. The Town will prepare a budget in accordance with the guidelines established by the Government Finance Officers Association in its Distinguished Budget Award Program. The proposed budget will contain the following: a) Revenue estimates by major category, by major fund; b) Expenditure estimates by department levels and major expenditure category, by major fund; c) Estimated fund balance by major fund; d) Debt service by issue detailing principal and interest amounts by fund. e) Proposed personnel staffing levels; f) A detailed schedule of capital projects, including a capital improvement program; g) Any additional information, data, or analysis requested of management by the Town Council. 3. The operating budget will be based on the principle that current operating expenditures, including debt service, will be funded with current revenues creating a balanced budget. The Town will not balance the current budget at the expense of meeting future years’ expenditures; for example accruing future years' revenues or rolling over short-term debt to avoid planned debt retirement. 4. Ongoing operating costs should be supported by ongoing, stable revenue sources. This protects the Town from fluctuating service levels, and avoids crises when one-time revenues are reduced or removed. Revenues from growth or development should be targeted to costs related to development, or invested in improvements that will benefit future residents or make future service provision efficient. 5. The Town Manager will provide an estimate of the Town's revenues annually for each fiscal year. The estimates of special (grant, excise tax, etc.) revenues and interfund transfers will also be provided by the Town Manager.
19 6. The budget will fully appropriate the resources needed for authorized regular staffing. At no time shall the number of regular full-time employees on the payroll exceed the total number of full-time positions authorized by the Town Council. All personnel actions shall be in conformance with applicable federal and state law and all Town ordinances and policies. 7. The Town Manager shall provide annually a budget preparation schedule outlining the preparation timelines for the proposed budget. Budget packages for the preparation of the budget, including forms and instructions, shall be distributed to Town departments in a timely manner for the department’s completion. Department Directors shall prepare and return their budget proposals to the Administration Department, as required in the budget preparation schedule. 8. Performance measurement indicators will be integrated into the budget process as appropriate. 9. Alternatives for improving the efficiency and effectiveness of the Town's programs and the productivity of its employees will be considered during the budget process. Duplication of services and inefficiency in service delivery should be eliminated wherever they are identified. 10. Department Directors are required to monitor revenues and control expenditures to prevent exceeding their total departmental expenditure budget. It is the responsibility of these department directors to immediately notify the Town Manager of any exceptional circumstances that could result in a departmental expenditure budget to be exceeded. 11. A quarterly report on the status of the General Fund budget and trends will be prepared within 60 days of the end of each quarter by the Administration Department. In addition, the quarterly report shall include revenue and expenditure projections through the end of the fiscal year. 12. If a deficit is projected during any fiscal year, the Town will take steps to reduce expenditures, increase revenues or, if a deficit is caused by an emergency, consider using the undesignated unreserved General Fund Balance, to the extent necessary to ensure a balanced budget at the close of the fiscal year. The Town Manager may institute a cessation during the fiscal year on hirings, promotions, transfers, and capital equipment purchases. Such action will not be taken arbitrarily and without knowledge and support of the Town Council. Expenditure Control Management must ensure compliance with the legally adopted budget. In addition, purchases and expenditures must comply with legal requirements. 1. Expenditures will be controlled by an annual budget at the departmental level. The Town Council shall adopt appropriations through the budget process. Written procedures will be maintained for administrative approval and processing of certain budget transfers within funds. 2. The Town will maintain a purchasing system that provides needed materials in a timely manner to avoid interruptions in the delivery of services. All purchases shall be made in accordance with the Town's purchasing policies, guidelines and procedures and applicable state and federal laws. The Town will endeavor to obtain supplies, equipment and services as economically as possible. 3. Expenditures will be controlled through appropriate internal controls and procedures in processing invoices for payment.
20 4. The Town shall pay applicable contractor invoices in accordance with the requirements of Arizona Revised Statutes 34-221. 5. The State of Arizona sets a limit on the expenditures of local jurisdictions. The Town will comply with these expenditure limitations and will submit an audited expenditure limitation report, audited financial statements, and audited reconciliation report as defined by the Uniform Expenditure Reporting System (A.R.S. Section 41-1279.07) to the State Auditor General each year. 6. Assets will be capitalized at $10,000 and will be recorded in the Town of Fountain Hills Summary of General Fixed Assets. Revenues and Collections All government employees are considered stewards of public funds. In order to provide funding for service delivery, the Town must have reliable revenue sources. These diverse revenues must be collected equitably, timely, and efficiently. 1. The Town's goal is a General Fund revenue base that is equally balanced between sales taxes, state shared revenues, property tax, service fees and other revenue sources. 2. The Town will strive for a diversified and stable revenue base to shelter it from economic changes or short-term fluctuations and in any one revenue source by doing the following: a) Establishing new charges and fees as needed and as permitted by law at reasonable levels. b) Pursuing legislative change, when necessary, to permit changes or establishment of user charges and fees. c) Aggressively collecting all revenues, late penalties, outstanding taxes owed and related interest as authorized by the Arizona Revised Statutes. 3. The Town will monitor all taxes to insure they are equitably administered and collections are timely and accurate. Fees and charges should be based on benefits and/or privileges granted by the Town, or based on costs of a particular service. 4. The Town should pursue intergovernmental aid for those programs and activities that address a recognized need and are consistent with the Town's long-range objectives. Any decision to pursue intergovernmental aid should include the consideration of the following: a) Present and future funding requirements. b) Cost of administering the funds. c) Costs associated with special conditions or regulations attached to the grant award. 5. The Town will attempt to recover all allowable costs--both direct and indirect--associated with the administration and implementation of programs funded through intergovernmental aid. In the case of the School District, the Town may determine to recover less than full cost of services provided. In the case of State and Federally mandated programs, the Town will attempt to obtain full funding for the service from the governmental entity requiring the service be provided. Allowable costs will be determined based upon a “Cost Allocation Study” prepared periodically.
21 User Fees Cost Recovery User fees and charges are payments for voluntarily purchased, publicly provided services that benefit specific individuals. The Town relies on user fees and charges to supplement other revenue sources in order to provide public services. 1. The Town may establish user fees and charges for certain services provided to users receiving a specific benefit. 2. User fees and charges will be established to recover as much as possible the direct and indirect costs of the program or service, unless the percentage of full cost recovery has been mandated by specific action of the Town Council. It is recognized that occasionally competing policy objectives may result in reduced user fees and charges that recover a smaller portion of service costs. 3. Periodically, the Town will recalculate the full costs of activities supported by user fees to identify the impact of inflation and other attendant costs. Debt Policy The purpose of this debt policy is to provide for the preservation and enhancement of the Town’s bond ratings, the maintenance of adequate debt service reserves, compliance with debt instrument covenants and provisions and required disclosures to investors, underwriters and rating agencies. The overall debt management policy of the Town of Fountain Hills is to ensure that financial resources are adequate in any general economic situation to not preclude the Town’s ability to pay its debt when due. These policies are meant to supplement the legal framework of public debt laws provided by the Arizona Constitution, State Statutes, Federal tax laws and the Town’s current bond resolutions and covenants. The Arizona Constitution limits a city or town’s bonded debt capacity (outstanding principal) to certain percentages of the Town’s secondary assessed valuation by the type of project to be constructed. There is a limit of 20% of secondary assessed valuation for projects involving water, sewer, artificial lighting, parks, open space, and recreational facility improvements. There is a limit of 6% of secondary assessed valuation for any other general-purpose project. General 1. The Town will use current revenues to pay for short-term capital projects, repair and maintenance items and will reserve long-term debt for capital improvements with useful lives of ten (10) years or more. The Town will not use long-term debt to fund current governmental operations and will manage its cash in a fashion that will prevent any borrowing to meet working capital needs. However, exclusive reliance upon pay-as-you-go fund s for capital improvements requires existing residents to pay for improvements that will benefit new residents who relocate to the area after the expenditure is made. Financing capital projects with debt provides for an “intergenerational equity”, as the actual users of the capital asset pay for its cost over time, rather than one group of users paying in advance for the costs of the asset. Where there is a benefit to all future residents, debt financing should be given consideration. 2. To increase its reliance on current revenue to finance its capital improvements, and promote a “pay-as-you-go” philosophy, the Town will appropriate each year a percentage of current
22 revenues to maintain a minimum 10% of average actual General Fund revenues for the preceding five fiscal years in the Designated Unreserved Fund. Capital Improvement Plan 1. As part of the budget process each year the Town will prepare a capital spending plan that provides a detailed summary of specific capital projects for the five fiscal years subsequent to the fiscal year presented. The plan will include the name of the project, project schedule, capital cost by fiscal year and a recommended specific funding source. The five-year capital improvement plan will be developed within the constraints of the Town’s ability to finance the plan. 2. The Town Manager and Department Directors will develop formal ranking criteria that will be used in the evaluation of all capital projects. The program ranking criteria will give greatest weight to those projects which protect the health and safety of its citizens. Pay-as-you-go project financing shall be given the highest priority. Capital improvements that must rely upon debt financing shall be accorded a lower priority and projects with a useful life of less than five years shall not be eligible for inclusion in bond issues. 3. Lease purchase financing shall be discouraged and only be undertaken when the project is considered essential to the efficient operation of the Town or to remove expenditures that would exceed the State imposed expenditure limitation. The Town Manager or designee shall determine that pay-as-you-go expenditures do not cause the state imposed expenditure limitation to be exceeded in any fiscal year. 4. All capital project requests will be accompanied by a description of the sources of funding to cover project costs. Where borrowing is recommended, a dedicated source of funds to cover debt service requirements must be identified. All capital project requests will be required to identify any impact the project may have on future operating costs of the Town. The Town will seek grants to finance capital improvements and will favor those projects which are likely to receive grant money. 5. All capital project appropriations and amendments to the capital improvement plan must be approved by the Town Council. 6. The capital plan will include all equipment and facilities with a useful life of greater than ten years and a cost greater than $50,000. Debt financing shall not exceed the useful life of the infrastructure improvement or asset. Financing Alternatives 1. Financing alternatives are listed below but are not limited to: a) Grants b) Developer Contributions c) General Obligation Bond – requires voter approval, supported by an ad valorem (property) tax d) Revenue Bonds – repaid with revenue stream (HURF, revenue generated by project) e) Municipal Property Corporation Bonds – repaid with a dedicated revenue source f) CFD or Special District Bonds – supported by an ad valorem property tax g) Capital Leases – repaid within operating budget
23 h) Commercial Paper (CP) or Bond Anticipation Notes (BAN) with terms less than two years 2. Town Debt Service costs (GO, Revenue Bonds, MPC, Leases) shall not exceed 20% of the Town’s operating revenue in order to control fixed costs and ensure expenditure flexibility. Improvement District (ID), Community Facility District (CFD) and Special District debt service is not included in this calculation because it is paid by district property owners and is not an obligation of the general citizenry. Separate criteria have been established and included within the Town’s CFD policy. 3. In accordance with requirements of the State of Arizona Constitution, total bonded debt will not exceed the 20% limitation and 6% limitation of the total secondary assessed valuation of taxable property in the Town. 4. The Town shall comply with all U.S. Internal Revenue Service arbitrage rebate requirements for bonded indebtedness. 5. Where applicable, the Town will structure General Obligation bond issues to create level debt service payments over the life of the issue. The goal will be to strive for a debt repayment schedule to be no more than fifteen (15) years; at no time will the debt exceed twenty-five (25) years. 6. Refunding bonds will be measured against a standard of the net present value debt service savings exceeding 3% of the principal amount of the bonds being refunded, or if savings exceed $750,000, or for the purposes of modifying restrictive covenants or to modify the existing debt structure to the benefit of the Town. Refinancings undertaken for other reasons should proceed only when the advantages have been clearly shown in a cost/benefit analysis of the transaction. 7. The Town will seek to maintain and, if possible, improve the current bond rating in order to minimize borrowing costs and preserve access to credit. 8. An analysis showing how a new issue combined with current debt impacts the Town’s debt capacity and conformance with Town debt policies will accompany every future bond issue proposal. The debt capacity analysis should reflect a positive trend and include: a) percent of debt outstanding as a percent of the legal debt limit b) measures of the tax and revenue base c) evaluation of trends relating to expenditures and fund balance d) debt service as a percentage of assessed valuation e) measures of debt burden on the community f) tax-exempt market factors affecting interest costs g) debt ratios 9. Municipal Property Corporation and contractual debt, which is non-voter approved, will be utilized only when a dedicated revenue source (e.g. excise taxes) can be identified to pay debt service expenses. The project to be financed will generate net positive revenues (i.e., the additional revenues generated by the project will be greater than the debt service requirements). 10. The Town’s privilege tax to debt service goal will be a ratio of at least 3.5:1 to ensure the Town’s ability to pay for long term debt from this elastic revenue source.
24 Issuance of Obligations 1. The Town shall select the underwriter and the paying agent/registrar for each debt issuance based on competitive bid. The underwriter must be a firm domiciled in Arizona with an office in the Phoenix area and a record of prior working relationships. 2. The request for proposals process will be designed to select the service providers that offer the Town the best combination of expertise and price. The Town is not required to select the firm offering the lowest price, but a report must be prepared by the Town Manager providing justification to the Town Council for a recommendation when other than the lowest bidder is chosen. The review of all proposals submitted shall be the responsibility of the Town Manager. 3. The Town of Fountain Hills will use competitive sales as the primary means of selling new General Obligation or Revenue bonds that are repaid through ad valorem (property) taxes. Negotiated sales will be permitted for all other debt issues when it is expected to result in a lower true interest cost than would a competitive sale of that same date and structure or there is evidence of volatile market conditions, complex security features, or another overriding factor. 4. The Town Manager or designee and Town Attorney will coordinate their activities to ensure that all securities are issued in the most efficient and cost-effective manner and in compliance with the Town’s governing statutes and regulations. The Manager and the Town Attorney shall consult and jointly select the bond counsel for a bond issue. The Town Attorney will review all documents related to the issuance of securities by the jurisdiction. 5. The Town will seek a rating on all new issues which are being sold in the public market if economically feasible. 6. The Town will report on an annual basis all financial information and/or notices of material events to the rating agencies and Nationally-Recognized Municipal Securities Information Repositories (NRMSIR’s). The annual report will include but not be limited to the Town’s annual Comprehensive Annual Financial Report (CAFR). 7. The Town will require any institution or individual investing monies as an agent for the Town to do so in a manner consistent and in compliance with the Town’s adopted Investment Policy. 8. The Town will provide detailed draw schedules for any project to be funded with borrowed monies. The Town will invest the proceeds or direct a trustee to invest the proceeds of all borrowings in a manner that will ensure the availability of funds as described in the draw schedules. 9. The Town acknowledges the responsibilities of the underwriting community and pledges to make all reasonable efforts to assist underwriters in their efforts to comply with SEC Rule 15c2-12 and MSRB Rule G-36. The Town of Fountain Hills’ capital improvement program ranking criteria will give greatest weight to those projects, which protect the health and safety of it’s citizens. Pay-as-you-go project financing shall be given the highest priority. Capital improvements that must rely upon debt financing shall be accorded a lower priority. All capital project requests will be accompanied by a description of the sources of funding to cover project costs. Where borrowing is recommended, the source of funds to cover debt service requirements must be identified. All capital project requests will be required to identify any impact the project may have on future operating costs of the Town.
25 Department Directors will submit a detailed description of the useful life of capital projects submitted in conjunction with the preparation of the Town’s CIP. Projects with a useful life of less than ten years shall not be eligible for inclusion in bond issues. The Manager shall incorporate an estimate of the useful life of proposal capital improvements in developing an amortization schedule for each bond issue. If a short-lived asset or project (less than ten years) is included in a bond issue, then the bond amortization schedule shall be adjusted to reflect the asset’s rapid depreciation. At no time shall the amortization exceed the life of the asset. How do I get more information? All requests for public information in the Town of Fountain Hills are handled by the Town Clerk’s office. For additional information about the Town of Fountain Hills, please call (480) 816 -5100 or visit the Town’s website www.fh.az.gov and click on the Administration Department icon.
26
27
FY2007-08 Revenue and Expenditure Summary
This section provides a broad overview of the resources and expenditures included in the FY07-
08 budget. Information is presented for general, special revenue, debt service and capital project
funds. General funds, which receive special attention by the citizens, are of particular importance
to our residents as they provide for most basic services such as public safety (law enforcement
and fire), recreation, senior services, parks, planning and zoning and the community center.
Special revenue funds (Highway User Revenue Funds – HURF, and grants) are restricted to
specific uses. Proposed capital projects are included within the departmental budgets; projects in
progress are included in the capital projects funds.
All Funds Revenue Summary
The FY07-08 budgeted revenues for all funds are estimated to be $27M; the general fund portion
of $17.2M is approximately 66% of the total. Special revenue funds include Highway User
Revenue (HURF), grants, and excise (sales) tax) - together these funds represent another 18% of
the budget. Debt service and capital project funds represent the remaining 16% of the total
budget.
The table below provides a comparison of the FY07-08 proposed budget to the FY06-07 adopted
budget. Actual expenditures for the FY04-06 are also included.
All Funds Expenditure Summary
FY07-08 total budgeted expenditures are $31 million, including transfers; the general fund
portion of $17.2 million represents 53% of the total. Highway User Revenue Fund (streets and
highways) represents 7% of the total Town budget. Other special revenue funds represent 5% of
the budget, with debt service and capital projects representing the final third of the total.
FY 2004-2005 FY 2005-2006 FY 2006-2007 FY 2006-2007 FY 2007-2008
Actual Actual Budget Estimate Proposed
Source of Revenues
GENERAL FUND REVENUES $15,561,387 $17,196,192 $16,948,360 $16,864,713 $17,157,361
SPECIAL REVENUE FUNDS $3,191,765 $5,564,576 $4,687,342 $3,734,025 $4,968,557
DEBT SERVICE FUNDS $2,603,327 $2,297,992 $2,156,150 $2,064,900 $2,281,850
DEVELOPMENT FEES $1,659,350 $1,531,386 $2,152,135 $1,374,955 $1,376,695
CAPITAL PROJECT FUNDS $5,535,018 $3,746,952 $528,225 $3,666,918 $1,157,434
TOTAL ALL FUNDS $28,550,847 $30,337,098 $26,472,212 $27,705,511 $26,941,897
FY 2004-2005 FY 2005-2006 FY 2006-2007 FY 2006-2007 FY 2007-2008
Actual Actual Budget Estimate Proposed
GENERAL FUND EXPENDITURES $12,692,032 $12,930,543 $16,948,360 $15,801,795 $17,157,359
SPECIAL REVENUE FUNDS $2,828,514 $5,139,843 $5,323,317 $3,699,990 $5,549,754
DEBT SERVICE FUNDS $9,586,363 $2,549,743 $2,235,350 $2,235,350 $2,267,335
DEVELOPMENT FEES $970,365 $1,257,757 $1,432,622 $502,270 $2,412,514
CAPITAL PROJECT FUNDS $6,767,419 $649,649 $800,000 $800,000 $3,469,059
TOTAL ALL FUNDS $32,844,693 $22,527,535 $26,739,649 $23,039,405 $30,856,021
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Total proposed expenditures for FY07-08 are 16% more than the FY06-07 budget due to an
additional investment in capital projects. However, general fund expenditures are only 1.5%
more than the FY 06-07 budget.
General Fund Budget Overview
The General Fund supports core services and is the largest fund with the greatest potential for
revenue fluctuations. Revenues from taxes, license and permit fees, and charges for services
provide resources to fund programs and services delivered by the Town. In the aftermath of an
economic downturn in 2002, the revenues forecasted in this proposed budget reflect a guarded
optimism, tempered by the reality that the local, state and national economies are complex and
uncertain. The proposed budget is based on projections that are conservative and based on the
expectation that the local and national economy will continue at a normal pace.
local sales tax and state shared revenues, similar to many other cities and towns in Arizona.
These sources of revenue are sensitive to the upward and downward cycles of the economy as
well as annual legislative appropriations. Additionally, the revenues are distributed to cities and
towns based on each municipality’s portion of the population compared to the entire state. As
other municipalities that have abundant available land for development continue to grow in
population, the cities and towns that have fixed borders will represent a smaller percentage of the
total; that is, Fountain Hills may lose a proportionate share of state revenues. Through the
strategic planning process the Town is preparing a revised twenty-year revenue and capital
improvement plan that will identify when one-time revenues will go away and facilitate the multi-
year and capital improvement planning.
A modest 5% increase has been factored into the Community Center rental rates for FY2007-08
for residents and a 10% increase for nonresidents (some fees will be rounded up to $5.00
increments). These increases would become effective July 1, 2007, or when existing contracts
are renewed. Potential increases were discussed at the April 23, 2007, Community Center
Advisory Commission meeting. The Community Center is projecting revenues for the 2007-08
fiscal-year to be $197,000, which includes the additional fees provided by this modest increase.
The rental fees for space at the Center have not been adjusted across the board since 2003.
,
Total General Fund
revenues are expected to
increase by $340,398
(1.7%) over FY06-07
estimated revenues – due
to an increase in state
shared revenues. Charts
and descriptions of the
major revenue sources
with a ten-year history for
the Town of Fountain Hills
are shown in the budget
summary section starting
on page 41. As the chart
to the left shows, 84% of
the Town’s general fund
resources are derived from
29
$0
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
$3,000,000
$3,500,000
$4,000,000
$4,500,000
FY03-04
FY04-05
FY05-06
FY06-07 (est)
FY07-08 (est)
Sales Tax Activity by Sector - FY04 thru FY08
Construction Transportation/Util
Wholesale/Retail Restaurant/Bars
Proposed general fund expenditures for FY07-08 are $17.2 million and including transfers for
debt service, an increase of 1.5% over the prior year budget. A new organizational unit, “Public
Information”, has been created within the Administration Department and accounts for
expenditures previously included within the Information Technology division (constituent
communications, intergovernmental relations, conferences, newsletters). The Administration
department budget also includes Town Manager, Town Clerk, Finance, Information Technology
and Human Resource functions.
Salaries and Benefits
There are a total of 86.75 full time equivalent employees (FTE)’s compared to 106 in FY2002-03
and one less than FY2006-07. Most Town employees’ salaries and benefits are funded through
the general fund (exceptions are Street division and Downtown Development staff who are
funded with restricted revenues). Salaries include wages, overtime, vacation and merit pay. An
allowance of 4.5% of the budgeted salaries line item is available for pay for performance merit
increases. Employee benefits include health insurance, employer taxes, disability, worker
compensation insurance, and employer match retirement contributions. The total salaries and
benefits proposed for fiscal year 2007-2008 for all funds are $5.4 million, or 17.5% of the total
budget.
The following positions were reclassified or had title changes to better reflect responsibilities:
2006-07 Position Title 2007-08 Position Title
Planning & Zoning Administrator Planning & Zoning Director
Accountant Accounting Supervisor
Planning Assistant Executive Assistant
Home Delivered Meals Coordinator Receptionist
Home Delivered Meals Administrator Administrative Assistant
Volunteer Coordinator Receptionist
Senior Aide Recreation Aide
The largest source of revenue
for the general fund is the local
sales tax, which represents
42.1% of general fund revenue.
The chart on the right presents a
five-year history for the top four
sales tax categories - retail
activity being the largest. This
budget recommends allocating
85% of construction sales tax to
capital projects to match one-
time revenues to one-time
expenditures. However, once
the inventory of vacant land is
depleted, this source of revenue
source will decline significantly.
30
The following positions were eliminated:
Senior Civil Engineer Inspector
Senior Services Supervisor
Planning Technician
Contractual Services
The Town contracts with outside professionals for public safety, conducting recreational
programs, consulting and legal fees, outside auditing services, engineering/inspection fees, and
contributions to special programs. Two major contracts included in this category are: 1) Fire
protection and emergency medical services ($2,884,126), currently under contract with Rural
Metro Corporation; 2) police protection (Maricopa County Sheriff’s Office at $2,704,200. The
proposed law enforcement budget includes an increase that reflects costs associated with a
general market salary adjustment across the board for all Maricopa County Sheriff deputies. The
increases were implemented in December, 2006, and not passed on to the Town until this budget
year.
Contractual services also include contributions that the Town makes to non profit organizations
for social, youth, tourism and youth arts programs based on requests from the organizations. The
town issued Request for Proposals for services that the Town does not provide – Youth Services,
Social Services, Tourism and Youth Arts. Total funding requests for FY07-08 are $441,000 and
described in the Operational and Community Support budget.
Repairs and Maintenance
Repairs and maintenance include annual landscape maintenance contracts, equipment and vehicle
repairs, and facilities maintenance (janitorial, building maintenance, etc.). Maintenance of the
Town’s 121 acres of parks, as well as medians, dams, and washes is solicited through a bid
process to obtain the most competitive price for the Town.
Supplies and Services
Supplies and services include operational costs such as utilities, insurance, office supplies, etc. for
Town Hall and other Town-owned buildings. The Town owns the Kiwanis building, two fire
stations, the Library/Museum, the Community Center, a vehicle maintenance garage, and the
Community Theater building. Other items in this category are gas and oil, postage, travel, and
communications.
Capital Projects
The total budget includes an appropriation of $7.2 million for capital projects, primarily park
improvements in Fountain and Desert Vista Parks, which are made possible with the
accumulation of surplus revenues and one-time construction related revenues.
Proposed large capital projects included within the General Fund departmental budgets are:
• Design of Shea Boulevard truck climbing/bike lanes
• Design for Shea Boulevard - Palisades to Saguaro
• Design for sidewalk plan Fayette to Town limits
• Design for Saguaro Boulevard dirt alley paving
31
• Water feature for front entrance of Town Hall
• Complete landscaping and irrigation surrounding new splash park
• Improvements to Fountain Park, Desert Vista Neighborhood and Four Peaks Parks
• Master plan for school and Town joint use park
Special Revenue Funds
In addition to the general fund, Fountain Hills maintains several other funds that are established
for specific purposes. Within the special revenue funds is the Highway Users Revenue Fund
(HURF), the resources of which are restricted for street and highway purposes (cost of right-of-
way acquisition, construction, reconstruction, maintenance, repairs, roadside development of
town roads, and payment of the interest and principal on highway and street bonds). Another
HURF revenue source is the Local Transportation Assistance Fund (LTAF), which is generated
by the State lottery and restricted for street and transportation purposes. Proposed capital projects
included in HURF are:
• Approximately $1.2 million in major road improvements such as microsurfacing and
slurry seal three zones (see map following page 178)
• Town wide curb removal and replacement
Within the special revenue fund is the excise tax special revenue, which accounts for revenue
received as the dedicated portion of the local sales tax (0.4%). The tax collections are deposited
to this fund for the annual payments for mountain bonds (0.2%), Civic Center phase II bonds
(0.1%), and downtown development (0.1%) purposes as determined by the Council.
Grants are utilized whenever possible to supplement the Town’s general fund and are designated
for the specific purchases for which they are awarded. This budget includes an appropriation for
the possibility for grants that may be awarded in fiscal year 2007-2008, as follows:
Furniture, Fixtures and Equipment (FF&E) – Donations were received from the community for
furniture, fixtures and equipment at the new Community Center. Any unspent funds are carried
over to the subsequent year. A major expenditure in this fund is the replacement of a portion of
the flooring in the Community Center.
Grant funds are proposed from Arizona Department of Environmental Quality for hazardous
waste collection and recycling program.
Undesignated Grant Revenue – As has been included in prior year’s budgets, this is an
appropriation of $1.5 million in the event the Town receives unanticipated grant funding from
any source.
Debt Service Funds
Total debt service revenues for fiscal year 2007-2008 is $2.3 million including secondary
property taxes for voter approved bonds, transfers from Highway User Revenue Fund to pay for
road improvements, transfer from the General Fund for the Community Center and excise taxes
to pay for Municipal Property Corporation (MPC) debt (mountain bonds and Civic Center phase
II). The chart below shows a history of the tax rate over the past nine years for the voter
approved projects. The levy for FY07-08 is projected to decrease from $.3012 per $100 of
assessed value to an estimated $.2567 per $100 of assessed valuation.
32
$0.1000
$0.2000
$0.3000
$0.4000
$0.5000
$0.6000
2002 2003 2004 2005 2006 2007 2008
TOWN OF FOUNTAIN HILLS
PROPERTY TAX RATE HISTORY
Years
Capital Project Funds
New and ongoing capital project requests are proposed from development fees, particularly
improvements to Desert Vista Neighborhood Park (partially grant funded), Fountain Park
irrigation and landscaping improvements, the Town-wide sidewalk program and drainage
improvements.
Development fees are restricted and may only be spent with Council approval. Additionally,
expenditures from this fund are also restricted by Ordinances 00-21 through 00-26 which state
that the expenditures cannot be “appropriated for funding maintenance or repair of public
facilities nor operational or personnel expenses associated with the provision of the public
facility”. However, appropriations can be made by the Council for financing public facilities and
public facility expenditures, and capital expenditures related to maintaining the level of service
standards for existing town residents (streets).
Expenditure Limitation
Each year the Economic Estimates Commission of the State of Arizona develops expenditure
limits for local governments in Arizona based on a formula using 1979-80 expenses adjusted for
inflation and population growth. Cities and town are required to stay within the limits or incur a
penalty (reduction in State Shared revenues).
33
Total Expenditures $30,856,021
Exclusions from Revenues:
Debt Service Payments $3,176,685
Dividends,Interest,Gains $655,285
Grants $1,747,500
Received from State(LTAF, GETUM Grants) $114,716
Highway User Revenues excess 1979-80 $1,736,917
Prior Years Carryforward $2,227,115
Total Exclusions $9,658,218
Deductions from Expenditures:
Total Deductions
Total Exclusions/Deductions $9,658,218
Expenditures subject to limitation $21,197,803
Expenditure Limitation $25,546,731
Under/(Over) Limitation $4,348,928
EXPENDITURE LIMITATION ANALYSIS (Estimate)
The final FY07-08 expenditure limitation for the Town of Fountain Hills is $25,546,731; the limit
applies to FY08 expenditures of the Town (all funds) but allows for certain exemptions and
deductions. For example, debt service payments, HURF and grant expenditures are not included
when determining compliance with the expenditure limitation. However, development fee and
capital project expenditures are subject to the limitation. The following table is an estimate of the
Town’s expenditure limitation, deductions and exclusions and final spending authority.
Transfers
The FY07-08 budget includes transfers of $387,000 to the debt service fund for the annual lease
payment on the Community Center. Residual revenues over expenditures from FY06-07 will be
transferred to the capital projects fund (approximately $1.0M) in the current year for
appropriation in future years when construction revenue declines. A schedule of interfund
transfers budgeted for FY07-08 is shown below:
Transfer Out Transfer In Amount Explanation
General Fund MPC Debt Service $387,000 Annual debt payment for Community Center
Highway Users Revenue Special Revenue $42,500 Matching funds for street sweeper grant
Highway Users Revenue Debt Service $126,300 Transfer for annual debt service payment on bonds
$555,800
Explanation of Transfers
34
Reserves
In May 2003, the Town Council adopted a formal fund balance policy appropriating funds as
designated reserves for future capital expenditures, a contingency fund for unanticipated
expenditures and/or revenue shortfalls, and an undesignated reserve fund. An important
component of the reserve funds is an amount set aside that is not available for appropriation but
will be maintained at a level that will satisfy the public and financial community regarding the
fiscal stability of the Town, referred to as undesignated reserves. This proposed budget exceeds
the policy requirement with a projected general fund balance for June 30, 2006, therefore, $1.0M
will be transferred to the Capital Projects Fund on June 30, 2007. A contingency amount of
$75,000 is included in the General Fund under non-departmental for minor unforeseen
expenditures.
As the Town’s primary operating fund, the general fund accounts for all financial resources
except those that are required to be accounted for in other funds. The end of the fiscal year fund
balance is projected to be $6,515,123 (after transfers). This is well above the Town’s financial
policy level fund balance of at least 30% of general fund budgeted revenues.
The Highway User Refund Fund (HURF) estimated ending fund balance for FY07-08 is
anticipated to decrease by 93% from the prior fiscal year. The reason for this is that during
FY06-07 major capital road maintenance projects were completed. The HURF fund is a
restricted fund that may only be used for streets and highways.
The Development Fee fund is another restricted fund and accumulates revenues from building
permits with proceeds used for major capital expenditures, some of which take many years of
savings to accomplish.
The chart on the following page is a summary of estimated beginning and ending fund balance
broken down by fund:
Estimated Estimated
Beginning Estimated Transfers Ending
Fund Fund Balance Revenues Appropriations In/(Out) Fund Balance
General Fund $6,515,123 $17,157,361 ($16,770,359) ($387,000) $6,515,125
Special Revenue Fund
Highway Users Rev Fund $633,145 $1,900,633 ($2,320,485) ($168,800) $44,493
Excise Tax Revenue
Downtown Development $872,032 $314,281 ($198,120) $988,193
Bond Payments $1,004,795 $982,843 ($909,350) $1,078,288
Court Special Revenue $184,681 $23,300 ($28,000) $179,981
Community Center Sp Rev $78,937 $0 ($75,000) $3,937
Grants $0 $1,807,500 ($1,850,000) $42,500 $0
Debt Service Funds
General Obligation $149,304 $1,401,400 ($1,392,350) $158,354
Special Districts $24,359 $754,150 ($874,985) $513,300 $416,824
Development Fees $3,621,742 $1,376,695 ($2,412,514) $2,585,923
Capital Projects $8,705,428 $1,157,434 ($3,469,059) $6,393,803
Total $21,789,546 $26,875,597 ($30,300,221) $0 $18,364,921
Summary of Revenues, Expenditures and Transfers
35
All Funds Revenue Summary
FY 2004-2005 FY 2005-2006 FY 2006-2007 FY 2006-2007 FY 2007-2008
Actual Actual Budget Estimate Proposed
Source of Revenues
GENERAL FUND
Intergovernmental
State Sales Tax $1,874,577 $2,170,940 $2,244,476 $2,370,345 $2,494,340
Fire Insurance Premium Tax $155,927 $125,567 $92,400 $125,500 $125,500
Shared Income Tax $1,860,154 $2,118,592 $2,557,255 $2,557,255 $3,449,440
Vehicle License Tax $865,823 $974,452 $945,123 $1,080,141 $1,140,010
Total Intergovernmental $4,756,481 $5,389,551 $5,839,254 $6,133,241 $7,209,290
Taxes
Local Sales Tax $7,513,675 $8,786,172 $7,795,734 $7,928,992 $6,914,185
Franchise Tax $216,031 $314,359 $275,000 $300,000 $320,000
Total Taxes $7,727,377 $9,100,550 $8,070,734 $8,228,992 $7,234,185
Charges for Services
Parks & Rec User Fees $170,709 $157,193 $170,123 $170,123 $243,571
Senior Services Fees $0 $65,798 $157,150 $90,000 $80,000
Encroachment Permit Fee $73,706 $44,929 $35,000 $45,000 $20,000
Subdivision Fees $22,356 $21,400 $21,000 $35,000 $45,000
Total Charges for Services $266,771 $289,320 $383,273 $340,123 $436,321
Licenses and Permits
Animal License Fees $34,208 $37,378 $43,564 $43,564 $43,200
Business License Fees $110,577 $108,655 $115,830 $115,830 $116,795
Building Permit Fees $1,925,538 $1,564,000 $1,651,080 $950,000 $1,094,240
Landscape Permit Fees $0 $0 $0 $25,200 $60,480
Rezoning/Variance Fees $53,642 $23,711 $21,450 $35,000 $30,800
Improvement Plan Review Fee $32,375 $4,947 $21,000 $21,000 $25,320
Total Licenses and Permits $2,156,340 $1,738,691 $1,852,924 $1,190,594 $1,370,835
Fines and Forfeitures
Court Fines $222,451 $214,008 $188,700 $218,288 $209,705
JCEF/CCEF Revenue $0 $0 $0 $0 $0
Total Fines and Forfeitures $222,451 $214,008 $188,700 $218,288 $209,705
Community Center
Rental Fees $158,196 $190,052 $187,000 $187,000 $197,000
Bar Sales/Commission $29,641 $28,546 $36,000 $31,000 $32,300
Total Community Center $187,837 $218,598 $223,000 $218,000 $229,300
Miscellaneous
Leases $64,131 $65,475 $65,475 $65,475 $65,475
Donations $0 $0 $0 $0 $0
Interest on Investments $130,000 $130,000 $250,000 $360,000 $350,000
Miscellaneous $50,000 $50,000 $75,000 $110,000 $100,000
Total Miscellaneous $244,131 $245,475 $390,475 $535,475 $515,475
TOTAL GENERAL FUND REVENUES $15,561,387 $17,196,192 $16,948,360 $16,864,713 $17,157,361
36
FY 2004-2005 FY 2005-2006 FY 2006-2007 FY 2006-2007 FY 2007-2008
Actual Actual Budget Estimate Proposed
Source of Revenues
SPECIAL REVENUE FUNDS
Highway Users Revenue Funds
Local Transportation (LTAF) $113,674 $111,638 $110,785 $110,785 $114,716
Highway Users $1,471,032 $1,574,453 $1,614,855 $1,704,000 $1,736,917
In Lieu Payments $10,493 $24,009 $7,000 $56,000 $40,000
Interest $26,359 $12,802 $8,000 $30,000 $8,000
Miscellaneous $31,680 $4,079 $1,000 $1,000 $1,000
Transfers $500,000 $0 $0 $0
Total Highway Users Revenue Fund $1,653,237 $2,226,981 $1,741,640 $1,901,785 $1,900,633
Excise Tax Special Revenue
Mountain Bonds $712,116 $751,662 $713,700 $755,817 $668,562
Civic Center MPC $347,583 $373,331 $354,350 $360,409 $314,281
Downtown Development $341,531 $458,190 $354,352 $360,409 $314,281
Total Excise Tax Special Revenue $1,401,230 $1,583,183 $1,422,402 $1,476,635 $1,297,124
Court Special Revenue
Court Enhancement Fund $29,292 $24,287 $23,300 $23,300 $23,300
Total Court Special Revenue $29,292 $24,287 $23,300 $23,300 $23,300
Community Center FF&E
Donations $0 $0 $0 $0 $0
Total Community Center FF&E $0 $0 $0 $0 $0
Grants
FEMA $0 $50,000 $0 $0 $0
AZ Dept of Transportation $0 $175,000 $0 $0 $180,000
Proposition 202 $55,000 $0 $0 $260,000 $0
LTAF II $53,006 $68,125 $0 $72,305 $67,500
Miscellaneous Grants $0 $1,437,000 $1,500,000 $0 $1,500,000
Total Grants $108,006 $1,730,125 $1,500,000 $332,305 $1,747,500
TOTAL SPECIAL REVENUE FUNDS $3,191,765 $5,564,576 $4,687,342 $3,734,025 $4,968,557
DEBT SERVICE FUNDS
General Obligation Bonds
Secondary Property Tax $1,461,420 $1,325,581 $1,370,000 $1,300,000 $1,400,000
Interest $37,427 $30,407 $1,400 $28,000 $1,400
Total General Obligation Bonds $1,498,847 $1,355,988 $1,371,400 $1,328,000 $1,401,400
Community Center MPC $375,500 $387,000 $387,000 $387,000 $387,000
HURF Street Paving Transfers $124,000 $110,500 $135,000 $135,000 $126,300
Eagle Mountain CFD $600,261 $437,354 $255,600 $207,750 $360,000
Cottonwoods Maintenance District $3,200 $3,300 $3,300 $3,300 $3,300
Cottonwoods Improvement District $1,519 $3,850 $3,850 $3,850 $3,850
TOTAL DEBT SERVICE FUNDS $2,603,327 $2,297,992 $2,156,150 $2,064,900 $2,281,850
DEVELOPMENT FEES
Law Enforcement Development Fees $18,839 $41,278 $117,346 $68,395 $54,040
Street Department Development Fees $236,077 $314,381 $795,610 $447,315 $225,510
Parks & Recreation Development Fees $536,322 $448,194 $781,702 $623,650 $890,130
Open Space Development Fees $597,241 $468,024 $153,460 $63,550 $67,600
General Government Development Fees $270,871 $245,461 $247,050 $143,920 $113,700
Fire Development Fees $0 $6,356 $26,089 $15,340 $12,115
Library Development Fees $0 $7,692 $30,878 $12,785 $13,600
TOTAL DEVELOPMENT FEES $1,659,350 $1,531,386 $2,152,135 $1,374,955 $1,376,695
CAPITAL PROJECTS FUND
Miscellaneous $21,700 $25,000 $0 $0 $0
Local Sls Tax - CIP $120,340 $528,225 $528,225 $1,700,000 $1,157,434
Community Center MPC $0 $0 $0 $0
Civic Center Phase II Bonds $3,783,896 $0 $0 $0 $0
LWCF Proceeds $237,307 $0 $0 $0 $0
Transfers $1,371,775 $3,193,727 $0 $1,966,918 $0
TOTAL CAPITAL PROJECTS FUND $5,535,018 $3,746,952 $528,225 $3,666,918 $1,157,434
TOTAL ALL FUNDS $28,550,847 $30,337,098 $26,472,212 $27,705,511 $27,001,897
37
All Funds Expenditures
38
All Funds Expenditures (continued)
39
Budgeted Expenditure by Account Code – All Funds
Gen Fund Special Revenue Development Debt Capital TOTAL % of
TOTALS Funds Fees Service Projects ALL FUNDS Total
5199 Overtime $11,180 $0 $17,710 0.1%
5200 Wages $3,725,177 $35,500 $0 $4,166,641 13.5%
5201 FICA $82,510 $530 $0 $89,080 0.3%
5202 Unemployment Insurance $7,840 $40 $0 $8,580 0.0%
5203 Employee's Health Insurance $435,982 $2,810 $0 $500,697 1.6%
5204 Employee's Life Insurance $10,599 $110 $0 $11,991 0.0%
5205 Employee's Dental Insurance $32,222 $190 $0 $36,824 0.1%
5206 Employee's Eye Insurance $5,104 $30 $0 $5,857 0.0%
5207 Worker's Compensation Insurance $82,804 $140 $0 $133,335 0.4%
5208 Employee's Retirement Fund $359,131 $3,900 $0 $408,406 1.3%
5209 Recruitment Costs $0 $0 $0 $0 0.0%
5211 Disability Insurance $16,908 $180 $0 $19,159 0.1%
Total Wages & Salaries $4,769,458 $43,430 $0 $0 $0 $5,398,279 17.5%
5901 Accounting Fees $29,300 $0 $0 $37,765 0.1%
5902 Professional Fees $919,885 $101,000 $0 $1,020,885 3.3%
5903 Legal Fees $371,800 $0 $0 $389,800 1.3%
5906 Jail/Prisoner Fees $58,500 $0 $0 $58,500 0.2%
5908 Engineering Fees $784,965 $0 $0 $784,965 2.5%
5907 Rabies & Animal Control $28,200 $0 $0 $28,200 0.0%
5915 Elections Expense $40,380 $0 $0 $40,380 0.1%
5920 Intergovernmental Agreements $9,600 $0 $0 $9,600 0.0%
5929 Special Programs - RPTA $22,500 $90,000 $0 $112,500 0.4%
5930 Special Programs - Chamber $0 $0 $0 $0 0.0%
5932 Special Programs $73,700 $0 $0 $73,700 0.2%
5933 Youth And Teens $15,575 $0 $0 $15,575 0.1%
5935 Sports Activities $42,492 $0 $0 $42,492 0.1%
5936 Spec.Programs-Constituent Comm $58,200 $0 $0 $58,200 0.2%
5939 Youth Services $100,000 $0 $0 $100,000 0.3%
5940 Senior $118,173 $0 $0 $118,173 0.4%
5941 McDowell Mtn Preservation $35,000 $0 $0 $35,000 0.1%
5945 Social Services $36,000 $0 $0 $36,000 0.1%
5947 Tourism $150,000 $0 $0 $150,000 0.5%
5950 Sheriff's Contract $2,704,200 $0 $0 $2,704,200 8.8%
5955 Rural Metro Contract $2,884,126 $0 $0 $2,884,126 9.3%
5959 Youth Arts $125,000 $125,000
5980 Sales Tax Rebates $0 $0 $0 $0 0.0%
Total Contract Services $8,607,596 $191,000 $0 $0 $0 $8,825,061 28.6%
6400 Vehicle Repairs & Maintenance $51,650 $0 $0 $87,991 0.3%
6402 Road Repair & Maintenance $0 $0 $0 $243,645 0.8%
6403 Equipment Rental $7,300 $0 $0 $7,800 0.0%
6404 Building Repairs & Maintenance $161,661 $3,500 $0 $168,161 0.5%
6405 Office Equip. Repairs & Maint.$116,970 $0 $0 $117,470 0.4%
6406 Major Road Improvements $0 $0 $0 $1,193,342 3.9%
6410 Field Preparation/Maintenance $109,650 $0 $0 $109,650 0.4%
6415 Mowing/Landscape Maintenance $490,374 $0 $0 $490,374 1.6%
6420 DAM/WASH MAINTENANCE $164,590 $0 $0 $164,590 0.5%
Total Repairs & Maintenance $1,102,195 $3,500 $0 $0 $0 $2,583,023 8.4%
40
Budgeted Expenditure by Account Code – All Funds – continued
Gen Fund Special Revenue Development Debt Capital TOTAL % of
TOTALS Funds Fees Service Projects ALL FUNDS Total
6501 Advertising/Signage $58,785 $15,850 $0 $74,885 0.2%
6505 Conferences $56,725 $5,600 $0 $64,325 0.2%
6507 Continuing Education $49,630 $5,040 $0 $57,620 0.2%
6508 Dues & Publications $74,815 $1,620 $0 $81,585 0.3%
6509 Dues - GPEC $0 $0 $0 $0 0.0%
6511 Electricity Expense $343,725 $0 $0 $368,725 1.2%
6514 Gas & Oil Expense $49,835 $0 $0 $84,835 0.3%
6517 Liability Insurance $323,650 $0 $0 $426,775 1.4%
6520 Office Supplies $87,277 $250 $0 $89,347 0.3%
6525 Tools, Shop Supplies $8,250 $0 $0 $13,300 0.0%
6526 Firefighting Equipment $7,500 $0 $0 $7,500 0.0%
6529 Postage $24,500 $0 $0 $24,500 0.1%
6530 Bar Supplies $14,000 $0 $0 $14,000 0.0%
6531 Printing $27,135 $2,100 $0 $29,475 0.1%
6534 Rent Expense $0 $0 $0 $0 0.0%
6537 Communication Expense $92,541 $530 $0 $98,751 0.3%
6546 Water/Sewer $108,100 $0 $0 $113,535 0.4%
6548 Travel Expense $17,486 $7,700 $0 $25,286 0.1%
6549 Uniforms $13,155 $0 $0 $21,155 0.1%
6550 Weapons and Ammunition $0 $0 $0 $0 0.0%
6560 Bank Charges $14,540 $0 $0 $14,540 0.0%
6650 CCEF Expenditures $0 $0 $0 $0 0.0%
Total Supplies & Services $1,371,649 $38,690 $0 $0 $0 $1,610,139 5.2%
8010 Capital Outlay - Vehicles $131,600 $200,000 $0 $405,600 1.3%
8020 Capital Outlay - Furn & Equip.$5,000 $75,000 $0 $80,000 0.3%
8025 Capital Outlay - Computers $38,700 $0 $0 $38,700 0.1%
8026 Capital Outlay - Software $206,800 $0 $0 $206,800 0.7%
8030 Capital Outlay - Communications $138,500 $60,000 $198,500 0.6%
8090 Capital Expend. - Improvements $314,863 $39,500 $2,412,514 $3,469,059 $6,235,934 20.2%
Total Capital/Contingency $835,463 $374,500 $2,412,514 $0 $3,469,059 $7,165,534 23.2%
9000 Debt Service $0 $1,296,350 $0 $1,880,335 $3,302,985 10.7%
9090 Transfers $387,000 $0 $387,000 1.3%
9999 Contingency $75,000 $1,500,000 $0 $1,575,000 5.1%
Total Debt/Transfers $462,000 $2,796,350 $0 $1,880,335 $0 $5,264,985 17.1%
GRAND TOTAL $17,157,361 $3,447,470 $2,412,514 $1,880,335 $3,469,059 $30,856,021 100.0%
41
General Fund Revenues
General fund operating revenues are estimated at $17,157,361 for FY2007-08. The following
charts will summarize operating revenues by major source, as well as provide a ten-year history.
The following charts highlight the trends, account codes, restrictions on usage, major influences,
and assumptions for the FY2007-08 estimate.
42
State Shared Sales Tax
Percent
Restrictions Fiscal Year Amount Change
1996-97 $998,459 20.3%
1
1997-98 $1,054,548 5.6%
1998-99 $1,130,422 7.2%
1999-00 $1,242,559 9.9%
2000-01 $1,320,401 6.3%
2001-02 $1,559,318 18.1%
1
2002-03 $1,582,535 1.5%
2003-04 $1,702,374 7.6%
2004-05 $1,874,577 10.1%
2005-06 $2,170,940 15.8%
2006-07 (est.) $2,370,345 9.2%
1
2007-08 (est.) $2,494,340 5.2%
1 Increase as a result of census population growth
Assumptions
The State assesses a 6.3% sales tax, of which cities and towns share in the collections based on the relation of its
population to the total population of all incorporated cities and towns using the 2005 census figures (Fountain Hills
represents .5% of the state total). The FY 2007-2008 revenue projection is based on the League of Arizona Cities and
Towns bulletin and by the Arizona Department of Revenue forecast for Sales and Use Tax.
Major Influences: Construction Activity, Retail Sales, Population and Economy
No restrictions on usage. Must be expended for public
purposes.
$0
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
STATE SHARED SALES TAX REVENUE
Fiscal years 1999 through 2008
43
State Shared Income Tax
44
Vehicle License Tax
45
Local Sales Tax
Percent
Restrictions Fiscal Year Amount Change
1996-97 $2,664,923 65.5%
1997-98 $2,920,084 9.6%
1998-99 $3,394,152 16.2%
1999-00 $4,087,514 20.4%
2000-01 $4,923,174 20.4%
1
2001-02 $4,355,701 -11.5%
2002-03 $5,051,871 16.0%
1
2003-04 $7,733,643 53.1%
2004-05 $8,745,998 13.1%
2005-06 $10,866,239 24.2%
2006-07 (est.) $9,898,852 -8.9%
1 Rate increase 2007-08 (est.) $9,238,877 -6.7%
Assumptions
$0
$2,000,000
$4,000,000
$6,000,000
$8,000,000
$10,000,000
$12,000,000
LOCAL SALES TAX -ALL FUNDS
Fiscal years 1999 through 2008
The local sales tax rate in Fountain Hills is 2.6% - total receipts for FY08 are estimated to be $9,238,877. The
construction related sales tax is derived from one-time activites and should be dedicated for one-time expenditures.
Another portion (13.6%) of the local sales tax is dedicated for Municipal Property Corporation bond payments and
downtown development; the following is a breakdown of the dedicated and non-dedicated (General Fund) projections:
Construction related activity accounts for 11.6% of this revenue source (9% of the General Fund including Building
Permit fees). Projected projects for FY07-08 consists of 75 single family units, 5 multi-family units and 6 commercial
projects. Retail activity is projected to provide 44% of the total, compared to 41% in the prior year.
Utilities/communications/transportation provides 17% of the total receipts.
Major Influences: Economy, Construction Activity, Retail Sales, Public Policy
Revenues from the 2.6% local sales tax are allocated to the Capital
Projects Fund, Muncipal Property Corporation, Downtown
Development and the General Fund. General Fund proceeds are not
restricted but must be expended for public purpose.
Dedications:
Downtown Fund
Civic Center II Bonds
Mountain Bonds
Capital Projects
General Fund
$ 314,281
$ 314,281
$ 628,562
$1,067,569
$6,914,184
$9,238,877
46
Building Permit and Related Fees
47
Fines and Forfeitures
48
Business and Animal License Fees
Percent
Restrictions Fiscal Year Amount Change
1996-97 $70,038 13.7%
1997-98 $81,125 15.8%
1998-99 $90,717 11.8%
1999-00 $100,134 10.4%
2000-01 $115,681 15.5%
2001-02 $112,173 -3.0%
2002-03 $124,292 10.8%
2003-04 $135,919 9.4%
2004-05 $144,785 6.5%
2005-06 $146,033 0.9%
2006-07 (est.) $159,394 9.1%
2007-08 (est.) $159,995 0.4%
Assumptions
License fees are derived from a license tax on professions, occupations, businesses ($116,795) and animals ($43,200)
within the Town. The license fee is used primarily as a means of regulating businesses and animal control within the
community. The estimate for FY2007-2008 is based on 2,437 active business licenses (100 less than last year) and
2,991 animal licenses (113 more than last year).
Major Influences: Economy, Enforcement
No restrictions on usage. Must be expended for public purpose.
$0
$20,000
$40,000
$60,000
$80,000
$100,000
$120,000
$140,000
$160,000
LICENSING FEE REVENUE
Fiscal years 1999 through 2008
49
Community Center and Recreation Charges for Services
Percent
Restrictions Fiscal Year Amount Change
1996-97 $150,209 111.7%
1997-98 $656,283 336.9%
1998-99 $479,633 -26.9%
1999-00 $267,835 -44.2%
2000-01 $211,800 -20.9%
2001-02 $324,300 53.1%
2002-03 $341,479 5.3%
2003-04 $428,129 25.4%
2004-05 $421,546 -1.5%
2005-06 $441,268 4.7%
2006-07 (est.) $458,598 3.9%
2007-08 (est.) $538,346 17.4%
Assumptions
Charges for services are collected from users of Town facilities (parks, community center) and recreation programs. In
September 2001 a new Community Center opened providing a venue for weddings, banquets, civic meetings, etc. The
proposed revenues from Community Center rentals include an average increase of 5% for Fountain Hills residents and
10% for out of town residents; the last rate increase was in April 2003. Additional service charges are collected from
cellular providers for use of town property for their towers.
Major Influences: Population, Internal Policy on Rates
No restrictions on usage. Must be expended for public purpose.
$0
$50,000
$100,000
$150,000
$200,000
$250,000
$300,000
$350,000
$400,000
$450,000
$500,000
CHARGES FOR SERVICES
RECREATION USER FEES/ COMMUNITY CENTER RENTAL
Recreation Rentals
Fiscal years 1999 through 2008
50
Charges for Senior Programs
Percent
Restrictions Fiscal Year Amount Change
2001-02 $0
2002-03 $0
2003-04 $0
2004-05 $0
2005-06 $65,798 n/a
2006-07 (est.) $90,000 36.8%
2007-08 (est.) $80,000 -11.1%
Assumptions
The Senior Services Division is a division within the Parks and Recreation Department and most programs are held at the
Community Center. Senior Services offers programs for senior citizens including home delivered meals, fitness
programs, special interest classes and trips as well as social events. Revenue is derived from fees collected from
participants. Projections for FY2008 are based on planned trips and programs.
Major Influences: Population, Internal Policy on Rates
No restrictions on usage. Must be expended for public purpose.
$0
$10,000
$20,000
$30,000
$40,000
$50,000
$60,000
$70,000
$80,000
$90,000
CHARGES FOR SERVICES
USER FEES FOR SENIOR PROGRAMS
Fiscal years 2006 through 2008
New revenue source FY06
51
TOWN OF FOUNTAIN HILLS 2007-08 GENERAL FUND EXPENDITURE SUMMARY
Salaries Contract Repairs & Supplies Capital % of
Department & Benefits Services Maintenance & Services Outlay Total Total
Town Council $49,105 $122,380 $0 $40,661 $0 $212,146 1.2%
Administration $791,000 $97,250 $13,300 $122,305 $0 $1,023,855 6.0%
IT $64,072 $49,250 $68,200 $93,458 $370,500 $645,480 3.8%
Operational Support $0 $807,800 $0 $364,550 $0 $1,172,350 6.8%
Public Information $68,211 $125,245 $0 $29,885 $0 $223,341 1.3%
Law Enforcement $0 $2,790,900 $0 $0 $0 $2,790,900 16.3%
Fire Department $0 $2,974,126 $36,500 $35,200 $13,500 $3,059,326 17.8%
Municipal Court $354,420 $8,900 $800 $15,200 $0 $379,320 2.2%
Parks & Recreation $886,140 $538,217 $387,285 $264,661 $71,470 $2,147,773 12.5%
Community Center $414,727 $1,990 $18,470 $99,040 $392,000 $926,227 5.4%
Senior Services $97,130 $118,173 $1,000 $7,545 $0 $223,848 1.3%
Public Works $677,980 $802,465 $494,390 $93,130 $33,000 $2,100,965 12.2%
Facility Maintenance $173,132 $0 $79,750 $141,615 $283,993 $678,490 4.0%
Building Safety $546,300 $0 $800 $29,600 $29,000 $605,700 3.5%
Planning & Zoning $656,240 $170,900 $1,700 $34,799 $29,000 $892,639 5.2%
Contingency $75,000 0.4%
GENERAL FUND TOTALS $4,778,458 $8,607,596 $1,102,195 $1,371,649 $1,222,463 $17,157,361 100.0%
% of General Fund 27.9% 50.2% 6.4% 8.0% 7.1% 100.0%
52
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53
Town of Fountain Hills
Budget Summary by Program
01 - General Fund
020 - Mayor and Town Council Department
Total Budgeted Expenditures - $212,146
54
55
Fountain Hills Town Council
Mayor Wally Nichols
Vice Mayor Keith McMahan
Councilmember Mike Archambault
Councilmember Ginny Dickey
Councilmember Edwin Kehe
Councilmember Henry Leger
Councilmember Jay Schlum
1st Row: Councilmember Jay Schlum, Mayor Wally Nichols; Councilmember Edwin Kehe
2nd Row: Town Manager Tim Pickering, Councilmember Ginny Dickey, Councilmember Mike Archambault,
Councilmember Henry Leger, Vice Mayor Keith McMahan
56
Town Council
Expenditures appearing in this section support the goals and objectives of the Mayor and Town Council,
particularly those goals identified during the strategic planning process. These include:
¾ To identify and inform Fountain Hills residents of the projected long-term revenue gap and
decide upon a 2007 ballot initiative
¾ Work with local schools to establish and address common issues affecting the Town, schools and
community by the end of the 2006-07 school year
¾ To promote the use of low-water landscaping in new Fountain Hills developments
¾ To strictly enforce the General Plan and Town ordinances
¾ Create commercial architecture review board to regulate architectural physical appearance for
commercial properties
¾ Annex the State Trust Land into Fountain Hills
¾ To create a plan for pedestrian safety in Fountain Hills; a map has been completed and a long-
range projected plan for the construction of these sidewalks is nearing completion. The map
identifies the current sidewalk locations and locations of proposed sidewalks.
¾ To improve the business community and the Town
In order to accomplish these goals the Council has appropriated funds within the departmental budgets.
Other goals of the Council are maximizing public access to Council meetings, providing funding for
municipal elections, enhancing constituent communication, compensating and equipping the Mayor and
Town Council with the tools necessary to do their jobs; and promoting communication and awareness of
the Mayor, Town Council, and the Town with other municipalities.
57
Salaries and Benefits $49,105
This category of expenditures includes salary and related taxes for the Mayor and Councilmembers who
are paid $600 and $400 per month respectively. Although the Councilmembers have not had an increase
in their rate of pay since June 2000 this budget includes a proposal to increase benefits to the Mayor and
Town Council as an incentive to encourage candidates to run for office. Several cities offer the State of
Arizona’s Elected Officials Pension Plan to their Council which requires a contribution from them
through payroll deduction. The Town also would contribute approximately 25% of the Town Council
salary towards the pension plan. Members would be eligible for the benefit upon serving five years.
Contract Services $122,380
Funds are allocated in this category for contract services as directed by the Council and an actuarial study
for the funding of the Elected Officials Pension Plan. These services include an economic study and
survey regarding the projected revenue shortfall per Council’s Goal #3 for fiscal year 2007-2008, $72,000
as well as research and report on an environmental policy per Council’s Goal #7 for fiscal year 2007-
2008, $10,000.
The biannual election will be held in March and May of 2008. The election is managed by Maricopa
County, but the costs are borne by the Town. The estimate for the upcoming fiscal year is $40,380 based
on prior election experience.
Supplies and Services $40,661
The Mayor and Town Council attend the annual League of Arizona Cities and Towns conference each
year ($8,900). Funds are allocated for registration and booth fees for the conference as well as
commemorative and promotional items to distribute to visiting dignitaries ($11,200). Conference
registration fees have been included for two Councilmembers to attend the annual conference of the
International Economic Development Council to be held in Phoenix from September 16 through 21,
2007. The Council has appropriated funds to conduct its annual goal setting retreat in February of 2008
($6,000) and to attend seminars and workshops throughout the year, e.g., Maricopa Association of
Government (MAG) workshops and legislative events. Funds are also allocated in the budget for office
supplies, printing, communication expenses and meeting expenses. Meeting expense includes $7,500 for
Sister City events.
58
TOWN COUNCIL
FY 2004-2005 FY 2005-2006 FY 2006-2007 FY 2006-2007 FY 2007-2008
Actual Actual Budget Estimate Proposed
SALARIES & BENEFITS
Wages $35,600 $32,000 $36,000 $36,000 $36,000
Employer FICA Expense $2,723 $2,448 $2,770 $2,770 $2,770
Unemployment Insurance Expense $305 $276 $310 $310 $360
Worker Compensation Insurance $557 $755 $967 $967 $975
Elected Official Pension Plan $0 $0 $0 $0 $9,000
TOTAL $39,185 $35,480 $40,047 $40,047 $49,105
CONTRACT SERVICES
Professional Services $0 $3,000 $3,500 $3,500 $82,000
Election Expense $0 $17,104 $16,000 $0 $40,380
TOTAL $0 $20,104 $19,500 $3,500 $122,380
SUPPLIES & SERVICES:
Advertising/Signage $6,346 $10,158 $12,700 $12,050 $11,200
Conferences $1,535 $2,880 $33,741 $8,400 $8,900
Continuing Education $6,261 $5,020 $6,100 $6,100 $7,100
Office Supplies $1,847 $3,277 $1,825 $1,825 $3,125
Printing $3 $544 $500 $500 $700
Communications Expense $0 $0 $100 $100 $100
Meeting Expense $748 $1,804 $2,648 $2,648 $9,536
TOTAL $16,740 $23,684 $57,614 $31,623 $40,661
TOTAL EXPENDITURES $55,925 $79,268 $117,161 $75,170 $212,146
59
Town of Fountain Hills
Budget Summary by Program
01 - General Fund
040 - Municipal Court
Total Budgeted Expenditures - $379,320
60
61
Municipal Court
Mission Statement:
The Fountain Hills Municipal Court is committed to professionally serving the citizens of Fountain Hills
by administering justice in a fair, efficient and respectful manner, so as to enhance public trust and
community confidence in our court system.
Court Description:
The Fountain Hills Municipal Court is the judicial branch of the Fountain Hills government. Pursuant to
State law and the Town Code, decisions regarding the overall function of the Court are the sole
responsibility of the Presiding Judge, who also has exclusive supervisory authority over all court
personnel. The Court has jurisdiction over civil traffic, criminal traffic and criminal misdemeanor
offenses and violations of our Town Code and ordinances. The Court also has authority over specified
juvenile offenses. In addition, the Municipal Court Judge has authority to issue arrest/search warrants,
civil orders of protection and injunctions against harassment.
As part of the Arizona State Court System, the Fountain Hills Municipal Court is subject to the authority
and administrative supervision of the Arizona Supreme Court. The Fountain Hills Municipal Court has
legal obligations and reporting responsibilities to the State, as well as to the Town of Fountain Hills. The
Court must comply with constantly changing federal, state and local laws and administrative rules,
including those relating to crimes and criminal procedure, Victims Rights, Domestic Violence, Driving
Under the Influence, Record Keeping, ADA, Minimum Accounting Standards and judicial ethics.
Performance Standards:
• Adjudicate 90% of all civil traffic cases within 60 days.
• Adjudicate 80% of criminal and criminal traffic cases within 60 days and 95% within 120 days.
• Maintain a fair and impartial environment to resolve legal disputes.
• Respond to incoming mail requests within 24 hours.
• Issue warrants for failure to appear within two business days.
• Keep written procedures current with changes in laws and rules.
Management Indicators
FY2005-06
Actual
FY2006-07
Projected
FY2007-08
Projected
• Cases filed
2,614
2,620
2,625
• Cases terminated 3,396 2,941 2,850
• Hearings held 843 1,073 1,240
• Civil Traffic cases closed within
60 days
90% 85% 90%
• Criminal/Criminal Traffic cases
closed within 60 days
75% 72% 80%
• Criminal/Criminal Traffic cases
closed within 120 days
97% 95% 95%
62
Fiscal Year 2006-2007 Accomplishments:
• Successfully completed the fourth year of the Fountain Hills Community Teen Court, which was
recognized by the Maricopa County Board of Supervisors for its outstanding contribution to the
juvenile justice system.
• Continued the use of video conferencing in lieu of personal appearances for cases involving
incarcerated defendants, thereby cutting transport costs for the Maricopa County Sheriff’s Office, as
well as removing security risks involved with having such defendants appear in the court.
• Reviewed and updated Court policies and procedures.
• Enhanced the Court page on Town website with a Q&A feature and expanded resource links.
Fiscal Year 2007-2008 Objectives:
• Pursue the purchase of electronic archival system, to ensure court records are accessible for a longer
period of time to comply with new record retention legislation.
• Enhance Court security by purchasing and installing a video camera system in the courtroom and the
lobby waiting area.
• Improve courtroom efficiency utilizing existing court staff with new technology.
• Update Court processes, forms and public information to comply with new legislation.
• Adopt new processes and procedures in preparation for issuing marriage licenses pursuant to new
legislation.
Summary Expenditures - Court
FY 2003-2004 FY 2004-2005 FY 2005-2006 FY 2006-2007 FY 2006-2007 FY 2007-2008
Actual Actual Actual Budget Estimate Budget
SALARIES & BENEFITS $274,783 $310,618 $320,581 $340,700 $342,798 $354,420
CONTRACTUAL SERVICES $4,170 $7,210 $6,605 $6,500 $6,500 $8,900
REPAIRS & MAINTENANCE $813 $1,103 $1,553 $1,000 $800 $800
SUPPLIES & SERVICES $12,931 $9,558 $11,552 $15,455 $14,700 $15,200
CAPITAL EXPENDITURES $0 $0 $0 $0 $0 $0
TOTAL EXPENDITURES $292,697 $328,489 $340,291 $363,655 $364,798 $379,320
Schedule of Authorized Positions
Position – Title 2002-2003 2003-2004 2004-2005 2005-2006 2006-2007 2007-2008
Authorized Authorized Authorized Authorized Authorized Proposed
FTE FTE FTE FTE FTE FTE
Court
Presiding Judge 1.00 1.00 1.00 1.00 1.00 1.00
Court Administrator 1.00 1.00 1.00 1.00 1.00 1.00
Senior Court Clerk 0.00 0.00 1.00 1.00 1.00 1.00
Court collections Clerk 1.00 0.00 0.00 0.00 0.00 0.00
Court Clerk 3.00 3.00 2.00 2.50 2.00 2.00
Authorized FTE 6.00 5.00 5.00 5.50 5.00 5.00
63
Salaries and Benefits $354,420
The proposed FY07-08 budget includes one Presiding Judge, one Court Administrator, one
Senior Court Clerk and two Court Clerks I, one of which acts as a collection clerk. No additional
positions are proposed for this fiscal year.
Contract Services $8,900
This category includes required interpreting services other than day-to-day Spanish, which is
provided by court staff, and the services of pro tem judges when the presiding judge is
unavailable. The court also has a contract for $4,500 with the Supreme Court for software use
and upgrades, technical and processing support and use of hardware for the Arizona Court
Automation Program (ACAP).
Repairs and Maintenance $800
This supports routine service and annual maintenance agreements for office equipment.
Supplies and Services $15,200
This line item includes funding for advertising and signage, costs for the presiding judge and
court staff to attend mandatory continuing education conferences as required by the Arizona
Supreme Court, court-related association dues, fees for publications, updated Arizona statutes
and court rules, and necessary directory subscriptions. Also included in this item is funding for
office supplies and printing.
64
MUNICIPAL COURT
FY 2004-2005 FY 2005-2006 FY 2006-2007 FY 2006-2007 FY 2007-2008
Actual Actual Budget Estimate Proposed
SALARIES & BENEFITS
Overtime $0 $172 $965 $393 $0
Wages and Salaries $250,235 $256,444 $262,935 $269,027 $279,700
Employer FICA Expense $3,562 $3,669 $3,860 $3,844 $4,090
Unemployment Insurance Expense $466 $424 $300 $377 $350
Employee's Health Insurance $23,470 $25,578 $36,620 $33,205 $33,210
Employee's Life Insurance $783 $694 $1,120 $958 $910
Employee's Dental Insurance $2,812 $2,973 $3,330 $2,770 $2,560
Employee Vision Insurance $0 $278 $210 $346 $330
Worker Compensation Insurance $644 $927 $1,010 $823 $1,090
Employee's Retirement Expense $27,526 $28,228 $29,020 $29,623 $30,770
Disability Insurance $1,120 $1,194 $1,330 $1,432 $1,410
TOTAL $310,618 $320,581 $340,700 $342,798 $354,420
CONTRACT SERVICES
Accounting Fees $1,500 $0 $0 $0 $2,000
Legal Fees $1,210 $2,105 $2,000 $2,000 $2,300
Intergovernmental Agreements $4,500 $4,500 $4,500 $4,500 $4,600
TOTAL $7,210 $6,605 $6,500 $6,500 $8,900
REPAIRS & MAINTENANCE:
Office Equipment Repairs $1,103 $1,553 $1,000 $800 $800
TOTAL $1,103 $1,553 $1,000 $800 $800
SUPPLIES & SERVICES:
Advertising/Signage $87 $94 $300 $200 $300
Conferences $781 $1,596 $1,800 $1,800 $1,800
Continuing Education $367 $38 $800 $900 $1,000
Dues & Publications $2,403 $2,368 $3,550 $3,400 $3,550
Office Supplies $2,092 $3,099 $4,000 $3,700 $3,300
Printing $1,255 $1,653 $2,000 $2,000 $2,000
Communications Expense $113 $717 $105 $1,200 $450
Meeting Expense $261 $71 $400 $300 $300
Bank Charges $2,199 $1,917 $2,500 $1,200 $2,500
TOTAL $9,558 $11,552 $15,455 $14,700 $15,200
CAPITAL EXPENDITURES
Capital Outlay - Furniture/Equipment $0 $0 $0 $0 $0
TOTAL CAPITAL EXPENDITURES $0 $0 $0 $0 $0
TOTAL EXPENDITURES $328,489 $340,291 $363,655 $364,798 $379,320
65
Town of Fountain Hills
Budget Summary by Program
01 - General Fund
050 - General and Administrative Department
Total Budgeted Expenditures - $1,023,855
66
67
Administration
Mission Statement
The Administration Department is dedicated to serving the citizens of Fountain Hills by providing
accurate and current information on Council legislation and administrative actions; supporting the Town
of Fountain Hills and its departments; providing for the delivery of comprehensive financial services to
internal and external customers; protecting the integrity of Town assets; maintaining Town facilities; and
delivering the finest municipal services to ensure the highest quality of life for Fountain Hills’ residents.
Department Description
There are five budgetary divisions within the Administration Department that provide administrative
services for the Town government – Administration, Public Information, Information Technology,
Economic/Downtown Development and Operational and Community Support. The Administration
division includes expenses of the Town Clerk, Town Manager, Finance and Human Resources. The
Information Technology division includes expenses relating to computers, network, software, telephone
and public information (Channel 11 and web). The Operational Support division was created in FY05-06
to segregate the non-departmental expenditures that had previously been included with the Administration
Department budget. This division accounts for expenses that apply to all functions of the Town
government such as legal fees, annual financial audit, liability insurance, sales tax refunds and community
benefit programs. The Public Information Division is a new division in the Town that began in the last
quarter of FY2006/2007. The Economic/Downtown Development division is included in the Excise Tax
budget as a separate fund with revenues from the dedicated local sales tax.
Performance Standards
• Issue business licenses within 10 working days
• Facilitate the public’s access to Town legislation and ensure preservation of legal
documents
• Conduct elections in accordance with current state law and facilitate the public's ability to
vote
• Update the Town Code to reflect legislation enacted by the Council within 30 days
• Maintain the Town’s “Certificate of Achievement for Excellence in Financial Reporting”
• Maintain the Town’s “Distinguished Budget Presentation Award”
• Maintain the Town’s current Aa3 bond rating
• Provide a comprehensive personnel program based on merit principles administered in
compliance with applicable local, state, and federal laws
• Administer and coordinate all employee-related programs and benefits
• Zero grievances
68
Management Indicators
FY2004-05
Actual
FY2005-06
Actual
FY2006-07
Estimate
FY2007-08
Estimate
Number of resolutions
processed
73 52 60 40
Number of ordinances
processed
8 8 10 20
New business licenses 629 475 500 300
Business license renewals 1,465 1,600 2,100 2,437
Certificate of Achievement for
Excellence in Financial
Reporting Award
9th Year 10
th Year 11
th Year 12th Year
Distinguished Budget
Presentation Award 4th Year 5
th Year 6
th Year 7th Year
Sales tax recovered $31,059 $522,619 $34,000 $300,000
Bond rating Aa3 Aa3 Aa3 Aa3
Fiscal Year 2006-2007 Accomplishments
• Successful sale of annexed 1,300 acres of State Trust Land
• Updated twenty-year financial and capital improvement plan (CIP)
• Completed first phase of revenue shortfall education program
Fiscal Year 2007-2008 Objectives
• Identify and inform Fountain Hills residents of the projected long-term revenue gap
• Develop financial implementation plan for strategic priorities.
• Resolve projected revenue shortfall by Dec. 31, 2007
• Work with local schools
Summary Expenditures - Administration
FY 2003-2004 FY 2004-2005 FY 2005-2006 FY 2006-2007 FY 2006-2007 FY 2007-2008
Actual Actual Actual Budget Estimate Budget
SALARIES & BENEFITS $0 $757,396 $947,066 $914,000 $820,954 $791,000
CONTRACTUAL SERVICES $0 $85,267 $112,267 $69,415 $80,415 $97,250
REPAIRS & MAINTENANCE $0 $7,335 $11,906 $9,250 $11,500 $13,300
SUPPLIES & SERVICES $0 $115,276 $176,434 $97,090 $103,868 $122,305
CAPITAL EXPENDITURES $0 $0 $0 $0 $0 $0
TOTAL EXPENDITURES $0 $965,274 $1,247,672 $1,089,755 $1,016,737 $1,023,855
69
Authorized Personnel
Schedule of Authorized Positions
Position – Title 2002-2003 2003-2004 2004-2005 2005-2006 2006-2007 2007-2008
Authorized Authorized Authorized Authorized Authorized Proposed
FTE FTE FTE FTE FTE FTE
Administration
Town Manager 1.00 1.00 1.00 1.00 1.00 1.00
Undesignated Position 2.00 0.00 0.00 0.00 0.00 0.00
Assistant Town Manager 0.00 0.00 0.00 1.00 1.00 0.00
Assistant to the Town Manager 0.00 0.00 0.00 0.00 0.00 1.00
Finance Director 1.00 1.00 1.00 1.00 1.00 1.00
H/R Adminstrator/Risk Manager 1.00 1.00 1.00 1.00 1.00 1.00
Town Clerk 1.00 1.00 1.00 1.00 1.00 1.00
Economic Development Specialist 0.00 1.00 1.00 1.00 1.00 0.00
Public Information Oficer 0.00 0.00 0.00 0.00 0.00 1.00
I/T Administrator 1.00 0.00 0.00 0.00 0.00 0.00
I/T Coordinator 1.00 1.00 1.00 1.00 1.00 1.00
Executive Asst to Town Mgr/Council 1.00 1.00 1.00 1.00 1.00 1.00
Executive Assistant 1.00 0.00 0.00 0.00 0.00 0.00
Accountant 0.00 0.00 1.00 1.00 1.00 0.00
Accounting Supervisor 0.00 0.00 0.00 0.00 0.00 1.00
Accounting/HR Clerk 1.00 1.00 0.00 0.00 0.00 0.00
Administrative Assistant 1.00 0.00 0.00 0.00 1.00 1.00
Customer Service Rep 1.00 1.50 1.00 0.50 0.50 1.50
Accounting Clerk 0.00 0.00 1.00 1.00 1.00 0.50
Administrative Clerk 0.00 0.00 0.50 1.00 0.00 0.00
Receptionist 0.00 0.00 0.00 0.50 0.50 0.00
Administrative Intern 1.00 0.00 0.00 0.50 0.50 0.00
Economic Development Intern 0.00 0.00 0.00 0.00 0.50 0.00
I/T Intern 0.50 0.50 0.50 0.00 0.00 0.00
Authorized FTE 14.50 10.00 11.00 12.50 13.00 12.00
Salaries and Benefits $791,000
The Administration salaries and benefits include the Town Manager, Town Clerk, Finance, Human
Resources and Customer Service staff, as well as 50% of the Assistant to the Town Manager. The decline
from the previous year reflects the transfer of the Information Technology (IT) Coordinator salary and
benefits to the IT Division. There was a 11.1% increase in the medical insurance and 12% decrease in the
dental plan. The Town will continue to solicit bids from providers for future coverage in order to control
the cost to the taxpayers.
Contract Services $97,250
These funds provide for contracts with outside vendors who provide specialized functions for the Town in
the areas of sales tax auditing and project consultants as directed by the Town Council, such as the
strategic plan. The proposed budget includes the following:
Annual cost of the contract with the sales tax auditor $24,000
Transcription and payroll service $17,440
Customer service survey $12,200
Development fee review for indexing of fees $10,000
Contract to reformat Town Code programs $ 5,500
Performance evaluation, emergency preparedness $ 5,550
LTAF II matching funds for special transportation services (25%) $22,500
70
The Town has an intergovernmental agreement with Maricopa County Human Services to provide
transportation service within the community with funding partially provided by a grant from RPTA
(Regional Public Transportation Authority). The special transportation service program provides free
medical, social and employment trips for eligible residents (seniors, disabled, and low income) at an
annual cost of approximately $90,000. This program will continue to be funded 75% by proceeds from
LTAF II (Lottery) and 25% matching funds from the General Fund. The LTAF II funding is dependent
upon sales of lottery tickets within the state reaching $23M, proceeds after that are distributed to cities
and towns through RPTA to be used for transportation related expenses.
Repairs and Maintenance $13,300
This section of the budget funds vehicle maintenance for the department’s three vehicles, as well as
maintenance on two Xerox copiers.
Supplies and Services $122,305
This category of expenditures for the Administration Department includes routine operating costs
associated with the Town Clerk, Town Manager, Finance and Human Resources functions. A summary
of proposed expenses is listed below:
Conferences for Town Manager, Assistant to the Town Manager, Town Clerk, Finance Director:
ICMA - Pittsburg; ACMA – Tucson and Phoenix; IEDC – Phoenix $13,445
Education/Training for staff $15,800
Dues/Publications Total $40,700
League of Arizona Cities/Towns $12,650
National League of Cities $ 1,654
Greater Phoenix Economic Council $ 9,740
Maricopa Association of Governments $ 4,200
Professional memberships $ 7,800
Miscellaneous publications and membership dues $ 4,650
Gas and Oil $ 2,475
Office Supplies Total $36,885
Fire proof safe/file cabinet $ 4,600
Copy paper, supplies $ 5,880
General office supplies (calendars, toner) $ 5,800
Employee appreciation events/awards $13,600
Meeting refreshments (water, coffee) $ 2,650
Dog license tags, budget supplies $ 1,230
Service awards $ 3,125
Printing Total $ 7,900
Business cards, economic development printing $ 775
Letterhead/envelopes and checks $ 7,100
Meeting/travel reimbursements $ 5,100
71
ADMINISTRATION
FY 2004-2005 FY 2005-2006 FY 2006-2007 FY 2006-2007 FY 2007-2008
Actual Actual Budget Estimate Proposed
SALARIES & BENEFITS:
Overtime $0 $7,706 $1,051 $850 $2,000
Wages and Salaries $629,065 $775,065 $748,349 $660,229 $641,300
Employer FICA Expense $14,266 $17,073 $16,000 $15,243 $14,500
Unemployment Insurance Expense $1,346 $1,373 $900 $956 $800
Employee's Health Insurance $37,518 $46,496 $54,400 $60,103 $57,500
Employee's Life Insurance $1,675 $2,351 $2,900 $2,195 $1,800
Employee's Dental Insurance $5,070 $5,705 $5,300 $4,337 $3,900
Employee Vision Insurance $0 $611 $800 $724 $700
Worker Compensation Insurance $6,384 $11,945 $3,800 $2,890 $3,300
Employee's Retirement Expense $59,761 $75,920 $77,000 $70,470 $61,900
Disability Insurance $2,311 $2,821 $3,500 $2,957 $3,300
TOTAL $757,396 $947,066 $914,000 $820,954 $791,000
CONTRACT SERVICES
Professional Fees $83,416 $107,908 $53,760 $56,260 $72,700
Special Programs - RPTA $0 $2,706 $14,000 $22,500 $22,500
Emergency Management $1,851 $1,653 $1,655 $1,655 $2,050
TOTAL $85,267 $112,267 $69,415 $80,415 $97,250
REPAIRS & MAINTENANCE:
Vehicle Maintenance $767 $76 $1,250 $500 $500
Office Equipment Repairs $6,568 $11,830 $8,000 $11,000 $12,800
TOTAL $7,335 $11,906 $9,250 $11,500 $13,300
SUPPLIES & SERVICES:
Conferences $12,035 $17,778 $9,860 $9,860 $13,445
Continuing Education $18,459 $8,359 $12,200 $12,200 $15,800
Dues & Publications $35,378 $38,919 $33,297 $37,000 $40,700
Gas & Oil Expense $3,733 $4,843 $3,130 $3,130 $2,475
Office Supplies $33,395 $59,758 $27,078 $27,988 $36,885
Printing $3,121 $5,484 $7,625 $7,830 $7,900
Communications Expense $5,211 $30,284 $0 $0
Meeting Expense $3,944 $11,008 $3,900 $5,860 $5,100
TOTAL $115,276 $176,434 $97,090 $103,868 $122,305
TOTAL EXPENDITURES $965,274 $1,247,672 $1,089,755 $1,016,737 $1,023,855
72
73
Town of Fountain Hills
Budget Summary by Program
01 - General Fund
050 - General and Administrative Department
105 - Operational Support Program
Total Budgeted Expenditures - $1,172,350
74
75
Operational & Community Support Division
This division was created in FY05-06 to include expenses previously included within the Administration
Department that are applicable to all functions of the Town government. The types of expenses included
within this division are overhead type costs and represents 6.8% of the General Fund budget.
Contract Services $807,800
These funds provide for contracts with outside vendors who provide specialized functions for the Town
that are applicable to all departments.
Accounting Fees and Professional/Outside Services $27,300
The Town is required by law to have an annual audit conducted by an independent auditor at the end of
each fiscal year. The Town issued a Request for Proposal (RFP) for audit services for the next three fiscal
years. The proposed cost for FY07-08 is $33,860 – 25% of the cost is allocated to the Highway User
Revenue Fund (HURF). The audit will be conducted in September, 2007, with a report to the Council in
mid-October.
Legal Fees $369,500
Legal fees include the services of the town attorney, town prosecutor, and specialized legal services, if
required, for bond transactions, employment issues, tax claims, or other unanticipated legal services. The
FY06-07 budget contains the following estimated legal fees:
Town attorney (90% General Fund) $170,000
Town prosecutor $110,000
Tax attorney $ 85,000
Public defender, unanticipated legal costs, etc. $ 4,500
Community Benefit and Special Programs $411,000
Each fiscal year the Town of Fountain Hills receives requests from various community organizations to
support their organizations by including funding in the proposed budget. The requests approved for
FY07-08 and the amounts are as follows:
Youth Services $100,000
Social Services $ 36,000
Youth Arts $125,000
Tourism $150,000
76
Supplies and Services $364,550
This category of expenditures includes all routine operating costs associated with the Town governmental
functions. Operational & Community Support serves all other departments in the areas of public notices,
postage, bank charges, and liability insurance costs.
Advertising $17,500
The annual cost of placing meeting notices, the annual budget, resolutions, and ordinances in the local
newspaper, includes costs associated with employee recognition and service awards. The following is a
breakdown of the costs:
Public notices, ordinances, etc. $ 4,000
Employment ads $ 500
Recognition and service awards: $ 5,500
Business appreciation events $ 5,000
Miscellaneous promotional items, notices $ 2,500
Liability Insurance $323,650
The Town of Fountain Hills is a member of the Arizona Municipal Risk Retention Pool (AMRRP), which
provides municipal insurance to most Arizona cities and towns. The limit for basic coverage is
$2,000,000 per occurrence on a claims-made basis with excess coverage in the amount of $8,000,000 is
included in the premium. The anticipated increase in insurance includes coverage for land use liability,
liquor liability (for the community center), commuting coverage and deductibles. The Town’s coverage
maintains a $10,000 per occurrence deductible; the budget includes funds for one claim that the Pool
settles on behalf of the Town, as well as $5,000 for additional endorsements for any equipment added.
Postage $14,000
Postage includes all costs for metered mail and miscellaneous delivery and shipping costs incurred.
Bank Service Charges $9,400
These costs are related to the Town’s banking, merchant services (acceptance of credit cards) and
procurement card accounts.
77
OPERATIONAL & COMMUNITY SUPPORT
FY 2004-2005 FY 2005-2006 FY 2006-2007 FY 2006-2007 FY 2007-2008
Actual Actual Budget Estimate Proposed
CONTRACT SERVICES
Accounting Fees $14,962 $21,868 $15,400 $13,400 $27,300
Legal Fees $358,202 $405,573 $347,000 $347,000 $369,500
Youth Services $145,000 $160,000 $100,000 $100,000 $100,000
Social Services $40,000 $50,000 $50,000 $50,000 $36,000
Tourism $75,500 $125,000 $125,000 $125,000 $150,000
Youth Arts $0 $0 $50,000 $50,000 $125,000
Sales Tax Rebates $388,125 $183,339 $400,000 $400,000 $0
TOTAL $1,021,789 $945,780 $1,087,400 $1,085,400 $807,800
REPAIRS & MAINTENANCE:
Building Repairs & Maintenance $43,089 $67,177 $0 $0 $0
TOTAL $43,089 $67,177 $0 $0 $0
SUPPLIES & SERVICES:
Advertising/Signage $8,340 $9,173 $13,950 $10,000 $17,500
Electricity Expense $127,991 $138,482 $0 $0 $0
Liability Insurance $270,721 $263,182 $340,050 $340,050 $323,650
Postage $18,491 $23,422 $27,340 $16,000 $14,000
Rent Expense $215,600 $18,539 $0 $904,000 $0
Water/Sewer $19,396 $13,113 $0 $0 $0
Bank Charges $2,592 $8,356 $6,992 $6,992 $9,400
TOTAL $663,131 $474,267 $388,332 $1,277,042 $364,550
CAPITAL EXPENDITURES
Capital Outlay - Improvements $0 $0 $0 $0 $0
TOTAL CAPITAL EXPENDITURES $0 $0 $0 $0 $0
TOTAL EXPENDITURES $1,728,009 $1,487,223 $1,475,732 $2,362,442 $1,172,350
78
79
Town of Fountain Hills
Budget Summary by Program
01 - General Fund
050 - General and Administrative Department
101 - Information Technology Program
Total Budgeted Expenditures - $645,480
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Information Technology Division
Mission Statement
The mission of the Information Technology Division is to work in partnership with the Town staff,
facilitating their use of computing, telephone, and network technologies. The division also endeavors to
provide excellent information technology, internal and external customer support, and resources to enable
and encourage staff to effectively use technology to achieve Town-wide missions and strategic goals.
Division Description
Information Technology (I/T Division) functions are incorporated within the Administration
Department but the appropriation is shown separately to highlight the total investment in
technology. Responsibilities include all aspects of Information Technology: computers, the
Internet, Town website, local and wide-area networks, inter-networking, voice and data
communications systems, and cablecast technologies (Channel 11). All hardware and software
requests in this section are based on departmental requests.
Performance Standards
• Coordinate and implement technology related purchases and processes Town-wide.
• Expand and enhance internal training programs.
• Act as technology consultant and coordinator for Town departments to aid in identification,
selection, and implementation of technology driven or assisted needs.
• Develop enterprise-wide technology architecture to drive standards that enable information
sharing and maximize return on technology investments.
• Provide strategic I/T services and serve as an enabler to improve the delivery of Town services
and improve the efficiency, productivity, and financial performance of Town operations.
Management Indicators
FY07 Actual FY08 Estimates
Help desk requests resolved at time of call 33% 66%
Documented Service Requests 1360 1300
Average Time to Resolve 11 hours 4 hours
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Fiscal Year 2006-2007 Accomplishments
• Upgraded Town software to newer version of Microsoft Office
• Increased network reliability and minimized downtime by implementing server
replacement and upgrade schedules.
• Improve Code Enforcement effectiveness and efficiency by installing laptops with mobile
data service in vehicles.
Fiscal Year 2007-2008 Objectives
• Replace outdated workstations with latest computer equipment to improve staff
efficiency and minimize downtime.
• Resolve network problems within one day
• Redesign Town’s website with new look, easy navigation, and E-Government
applications, including online payments.
• Purchase and implement a municipal software package with financial, permitting,
licensing, and GIS capabilities.
Summary Expenditures - I/T
FY 2003-2004 FY 2004-2005 FY 2005-2006 FY 2006-2007 FY 2006-2007 FY 2007-2008
Actual Actual Actual Budget Estimate Budget
SALARIES & BENEFITS $0 $0 $0 $0 $0 $64,072
CONTRACTUAL SERVICES $0 $10,788 $30,789 $87,100 $52,000 $49,250
REPAIRS & MAINTENANCE $0 $70,841 $96,878 $68,100 $55,500 $68,200
SUPPLIES & SERVICES $0 $67,022 $60,870 $106,833 $90,083 $93,458
CAPITAL EXPENDITURES $0 $17,705 $141,668 $172,100 $160,100 $370,500
TOTAL EXPENDITURES $0 $166,356 $330,206 $434,133 $357,683 $645,480
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Salaries and Benefits $64,072
The I/T division currently has one Information Technology Coordinator position that, in prior years, was
included within the Administration salaries and benefits budget. There are no new positions in
Information Technology in the upcoming fiscal year.
Contract Services $49,250
An amount of $31,250 is included in this budget for the services of a professional website designer and
content management system that will enhance the appearance and functionality of the Town’s website.
The Town’s Public Information Group, made up of representatives from each department, will work with
the vendors and provide input as to what features the website will have. An additional $15,000 is
included for outside consulting services to do an analysis of the Town’s current and future software
requirements. The purpose of the analysis is to determine future software needs and ensure that all
software purchases are consistent with an IT strategic plan that ensures compatibility with existing
hardware and software.
Repairs and Maintenance $68,200
The Information Technology budget includes costs for required maintenance and service on all Town-
owned computer hardware and software, including annual software maintenance agreements and pay-per-
call service calls for the various programs. The proposed repairs and maintenance budget follows:
Computer repairs, maintenance contracts for hardware and software
support
$25,000
Support for servers (12) (RAID arrays) $6,500
Scheduled server replacement (2 servers) $7,000
Virus protection maintenance (83 users) $3,500
Channel 11 equipment upgrade $2,500
Software support for program registration and facility booking program $15,000
Fleet vehicle maintenance software support $1,500
Intersection software upgrade $ 1,200
AutoCAD Upgrade, Maintenance $3,500
Annual Support and Upgrades $2,500
Supplies and Services $93,458
The I/T division is responsible for all costs associated with telecommunications, networking, and
telephone service. The monthly line charges through Qwest, Muzak, Nextel, Verizon and others comprise
the majority of this category at approximately $34,700. Under communications line item the Town pays a
monthly service to Cox for the Internet connection at an annual amount of $8,500 for Town Hall and
$6,700 for the fire stations, street department and the web streaming server. Additionally, $5,400 is
included for the annual subscription cost for the code enforcement software.
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Capital Expenditures $ 370,500
Proposed in the FY07-08 budget is the following new equipment and computers:
Capital equipment and computers:
Scheduled replacement of 19 workstation computers $31,200
ArcMail Defender for email archiving $ 5,000
CD/DVD Printer $ 2,500
Total equipment and computers $38,700
The proposed budget includes funds for purchasing financial/municipal software that will integrate the
accounting, licensing, and permitting functions. Currently each function has a stand-alone software
package and manual processes are necessary to record the information into the financial records. The
long-term goal would be to migrate towards the ability to have the Town’s financial, building, zoning, etc.
information on one system and provide GIS capability.
Capital Outlay – Software:
eCivis grant software $ 12,600
Citizen Alert constituent request tracking $ 78,200
Accounting Software (rebudgeted) $100,000
GIS training, upgrades and imagery $ 16,000
Total software $206,800
e-Civis – E-Civis is a grant tracking system that local governments can use to identify funding
opportunities with other public agencies and community-based organizations to secure mutually-
beneficial grants.
Citizen Alert – Citizen Alert is a software package that offers:
• An outbound alert notification system that can be used to alert citizens during minor emergencies
(e.g, a road closure due to an accident) or large-scale emergencies (e.g, the recent Virginia Tech
tragedy). The system will also provide proactive notifications to Town residents (e.g., press
releases, notices or Town updates on activities and events). Citizens, homeowner associations, or
businesses may register to be included on the alert notification system and may choose the type of
information they want, when they want to receive it, and how they want it delivered. The system
is capable of sending coordinated audio and text messages to telephones, cell phones, email,
email pagers, TDD/TTY and fax machines, websites and personal digital assistants (PDAs).
• A request tracking component that allows citizens to track the progress of any service request
they have made via phone or the website. The system reduces misrouted calls or misdirected
services requests and offers a reliable method to follow-up on service requests.
• Another component is a 311 information system. When a citizen calls with a question, the team
member taking the call can enter a key word into the system and immediately pull up clear
information pertinent to the subject, thus giving residents consistent answers. A 311 directory
would be published and made available to Town residents who wish to dial-in directly into an
information hotline to obtain the information they desire. The 311 information would also be
available on the Town website with the same answers that are available from staff.
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Municipal Accounting Software - Funds are also being requested for the purchase of new municipal
accounting software. This was included in the prior year budget, however, an analysis of the complete
Town software and hardware requirements should be done prior to purchasing the financial package that
must integrate with all the other software programs.
Capital Outlay – Communications Equipment:
Voice Over Internet Protocol (VOIP) Telephone System $ 85,000
Toastmaster Video Production System $ 40,000
Total communications equipment $125,000
New Phone System - Our existing phone switch has been in operation for approximately 8 years. The
system is outdated technology and no longer supported by the manufacturer. Replacement parts are also
no longer available, so when parts (phones, interface cards, etc) are purchased we are buying someone's
used parts. While we have not had issues finding used parts in the past, parts are being increasingly
difficult to find and limited in quantity.
VOIP – VOIP is Voice Over Internet Protocol, and utilizes existing LAN (Local Area Network, i.e.
network infrastructure) for cabling and communication. Unified messaging (allowing for email to be read
over the phone, access to voicemail via Microsoft Outlook) as well as less system administration, ease of
use and upkeep. These are just some of the many enhancements that a VOIP phone system would bring
to the Town. We expect that there may even be more depending on the system selected.
ToastMaster Video System - Currently the Town contracts with Pro One Media for video production
services for Town Council meetings. Information Technology will purchase and install a robotic camera
system for the Council Chambers. This project will increase the professional appearance of our council
meeting videos and allow us to broadcast live to Fountain Hills residents via Channel 11. The system
could also be used for other Commission or Board meetings. Staff visited with the Town of Payson
Information Technology Department to demo a system very similar to what would be installed at our
location. The system can be operated by one person.
Pro One Media would still be used for "special projects" like the Our Town Series. Our contract with Pro
One Media runs approximately $11,000 annually, this proposed system would pay for itself in less than 4
years.
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INFORMATION TECHNOLOGY
FY 2004-2005 FY 2005-2006 FY 2006-2007 FY 2006-2007 FY 2007-2008
Actual Actual Budget Estimate Proposed
SALARIES & BENEFITS:
Overtime $0 $0 $0 $0 $0
Wages and Salaries $0 $0 $0 $0 $50,902
Employer FICA Expense $0 $0 $0 $0 $740
Unemployment Insurance Expense $0 $0 $0 $0 $70
Employee's Health Insurance $0 $0 $0 $0 $5,628
Employee's Life Insurance $0 $0 $0 $0 $168
Employee's Dental Insurance $0 $0 $0 $0 $389
Employee Vision Insurance $0 $0 $0 $0 $65
Worker Compensation Insurance $0 $0 $0 $0 $257
Employee's Retirement Expense $0 $0 $0 $0 $5,598
Disability Insurance $0 $0 $0 $0 $255
TOTAL $0 $0 $0 $0 $64,072
CONTRACT SERVICES
Professional/Outside Services $0 $5,865 $4,800 $2,000 $49,250
Constituent Communications $10,788 $24,924 $82,300 $50,000 $0
TOTAL $10,788 $30,789 $87,100 $52,000 $49,250
REPAIRS & MAINTENANCE:
Computer Repairs & Maintenance $70,841 $96,878 $68,100 $55,500 $68,200
TOTAL $70,841 $96,878 $68,100 $55,500 $68,200
SUPPLIES & SERVICES:
Conferences $0 $265 $4,400 $1,000 $0
Continuing Education $3,339 $0 $3,000 $2,500 $3,600
Dues & Publications $15,535 $6,892 $13,200 $13,200 $14,340
Office Supplies $1,123 $3,889 $2,250 $2,400 $6,000
Printing $0 $0 $15,000 $0 $0
Communications Expense $47,025 $49,824 $68,983 $70,983 $69,518
TOTAL $67,022 $60,870 $106,833 $90,083 $93,458
CAPITAL EXPENDITURES
Capital Outlay - Equipment $69,257 $3,000 $3,000 $0
Capital Outlay - Computers $0 $56,147 $22,100 $22,100 $38,700
Capital Outlay - Software $9,367 $16,265 $135,000 $135,000 $206,800
Capital Outlay - Communications $8,338 $0 $12,000 $0 $125,000
TOTAL CAPITAL EXPENDITURES $17,705 $141,668 $172,100 $160,100 $370,500
TOTAL EXPENDITURES $166,356 $330,206 $434,133 $357,683 $645,480
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Town of Fountain Hills
Budget Summary by Program
01 - General Fund
050 - General and Administrative Department
108 - Public Information Division
Total Budgeted Expenditures - $223,341
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Public Information Division
Mission Statement
The Public Information Division is a new division in the Town that began in the last quarter of
FY2006/2007. The mission of the Public Information Division is to work in partnership with Town staff,
to facilitate external communication with the media and residents on Town Services, Town
accomplishments. The division will also improve internal communication between staff and Mayor and
Council. It will have the resources to enable and encourage staff to effectively use information
dissemination to communicate Town-wide missions and strategic goals. The division also endeavors to
sustain the public trust through open and responsive government.
Division Description
The Public Information Division functions are incorporated within the Administration Department but the
appropriation is shown separately to highlight the total investment in communication. Responsibilities
include all aspects of communication: media relations, Town website content, resident communications
such as the Compass, Channel 11 programming, employee and Council communications, presentations to
other organizations, maintenance of the Town brand and Intergovernmental relations.
Performance Standards
• Coordinate and streamline the internal and external communication process.
• Coordinate media placements and publication distribution.
• Act as in-house communications consultant for Town departments to aid in creation and
dissemination of information.
• Provide education opportunities for the community to learn about the municipal government and
the services provided to the community.
• Improve the efficiency, accuracy and expediency of information delivery internally and
externally.
• Coordinate efforts with other municipalities, agencies and the legislature to ensure the Town’s
key messages are communicated.
• Advocate a consistent Town identity through coordinated name, logotypes, language, images,
seal and other graphics.
• Produce three videos.
Fiscal Year 2006/2007 Accomplishments
• Creation and implementation of a consistent Town brand.
• Creation and implementation of a Town communications plan.
• Built relationships with other municipalities, agencies and the legislature.
• Implementation of a Low Water Landscape Education campaign.
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Fiscal Year 2007-2008 Objectives
• Assist in the redesign of the Town’s website with new look, easy navigation, and E-Government
applications, including online payments.
• Coordinate the Town communications system into a centralized communications system rather
that a decentralized department system
• Assist and coordinate communication efforts between the public, Council and staff.
• Enhance communications with Councilmembers and improve internal staff communications by
providing weekly updates
• Demonstrate the value of the Town to local and statewide civic and service organizations
• Oversight of the Town’s communication plan
• Respond to media inquiries within 24 hours
• Offer three Town stories a month to the media
FY 2003-2004 FY 2004-2005 FY 2005-2006 FY 2006-2007 FY 2006-2007 FY 2007-2008
Actual Actual Actual Budget Estimate Budget
SALARIES & BENEFITS $0 $0 $0 $0 $0 $68,211
CONTRACTUAL SERVICES $0 $0 $0 $0 $0 $125,245
REPAIRS & MAINTENANCE $0 $0 $0 $0 $0 $0
SUPPLIES & SERVICES $0 $0 $0 $0 $0 $29,885
CAPITAL EXPENDITURES $0 $0 $0 $0 $0 $0
TOTAL EXPENDITURES $0 $0 $0 $0 $0 $223,341
Contract Services $125,245
The budget includes several professional services including $3,000 to begin a photographic inventory of
the Town, $5,000 for new Town communication materials, such as brochures and newsletters, and $9,500
to continue the Low-Water Landscape education and communications plan. In addition $45,000 has been
budgeted for a communications plan on the strategic initiative to resolve the revenue shortfall.
This budget includes maintenance of the existing constituent communications as well as creation of new
communication mediums. $10,500 has been budgeted to produce three video programs and tape two
Town events to increase Channel 11 programming. The Compass newsletter will continue to be
distributed to households six times per year at a cost of approximately $27,000. New communications
include $1,600 for a Town Hall Open House, $1,200 for monthly community information meetings, and
$7,000 to hold two community events on the Avenue of the Fountains. These events will encourage
residents and visitors to come downtown. Also included in this budget are intergovernmental relations
events. $6,000 was budgeted for joint elected official and management meetings with Carefree, Fort
McDowell Yavapai Nation, Scottsdale and the Fountain Hills Unified School District. $2,000 was
budgeted for two events with the Legislature, one during Cities and Towns week in October and another
during the 2008 Legislative session.
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Supplies and Services $29,885
Advertising and Memberships – This is a new line item which focuses on increasing exposure and
communication on Fountain Hills. $3,000 has been budgeted to place ads in Phoenix Magazine’s ‘Best
Places to Live’ issue and in Arizona Business Magazine’s Economic Development issue. This budget
area allows the Town to hold memberships and participate in regional and national public information
organizations including the National Information Officers Association (NIOA), the Public Relations
Society of America (PRSA) and the City/County Communication and Marketing Association (CCMA).
Other costs are:
AZ Business Magazine, Valley Forward and GPEC $ 3,000
Event sponsorship $ 1,000
Conferences NIOA and PRSA $ 4,365
Continuing education seminars $ 3,120
Professional dues and publications $ 3,900
Postage for Compass $10,500
Office Supplies $ 1,900
Printing for Waterwise campaign $ 2,100
Total $29,885
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PUBLIC INFORMATION
FY 2004-2005 FY 2005-2006 FY 2006-2007 FY 2006-2007 FY 2007-2008
Actual Actual Budget Estimate Proposed
SALARIES & BENEFITS:
Overtime $0 $0 $0 $0 $0
Wages and Salaries $0 $0 $0 $0 $54,716
Employer FICA Expense $0 $0 $0 $0 $800
Unemployment Insurance Expense $0 $0 $0 $0 $70
Employee's Health Insurance $0 $0 $0 $0 $5,628
Employee's Life Insurance $0 $0 $0 $0 $181
Employee's Dental Insurance $0 $0 $0 $0 $389
Employee Vision Insurance $0 $0 $0 $0 $65
Worker Compensation Insurance $0 $0 $0 $0 $69
Employee's Retirement Expense $0 $0 $0 $0 $6,019
Disability Insurance $0 $0 $0 $0 $275
TOTAL $0 $0 $0 $0 $68,211
CONTRACT SERVICES
Professional/Outside Services $0 $0 $0 $0 $67,545
Constituent Communications $0 $0 $0 $0 $57,700
TOTAL $0 $0 $0 $0 $125,245
REPAIRS & MAINTENANCE:
Equipment Repairs & Maintenance $0 $0 $0 $0 $0
TOTAL $0$0$0$0$0
SUPPLIES & SERVICES:
Advertising $0 $0 $0 $0 $4,000
Conferences $0 $0 $0 $0 $4,365
Continuing Education $0 $0 $0 $0 $3,120
Dues & Publications $0 $0 $0 $0 $3,900
Office Supplies $0 $0 $0 $0 $1,900
Postage $0 $0 $0 $0 $10,500
Printing $0 $0 $0 $0 $2,100
TOTAL $0 $0 $0 $0 $29,885
CAPITAL EXPENDITURES
Capital Outlay - Equipment $0 $0 $0 $0 $0
Capital Outlay - Communications $0 $0 $0 $0 $0
TOTAL CAPITAL EXPENDITURES $0 $0 $0 $0 $0
TOTAL EXPENDITURES $0 $0 $0 $0 $223,341
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Town of Fountain Hills
Budget Summary by Program
01 - General Fund
061 - Public Works Department
Total Budgeted Expenditures - $2,100,965
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Public Works Department
Mission Statement
The Public Works Department’s mission is to express and enhance the beauty, value, and quality of the
environment by operating and maintaining public grounds, dams, medians, natural washes and open
space, as well as protecting the health, safety, and well being of the public by assuring properly designed
and constructed infrastructure, correct property transfers, and excellent customer service.
Department Description
The Open Space and Engineering Divisions are responsible for the operation and maintenance of Town-
owned wash parcels, open space, dams, public grounds and median landscaping. The department is
responsible for six Arizona Dept of Water Resources (ADWR) jurisdictional dams and numerous smaller
dams. The department maintains landscaping at all Town-owned buildings and facilities (except public
parks), including Town Hall, Community Center/Library, two fire stations, Community Theatre
buildings, and the street yard.
Engineering processes, reviews, permits and inspects encroachment permits, including subdivision plans,
“off-site” improvement plans and utility cuts. Engineering supports Building Safety by reviewing and
inspecting site work plans for building permits. Engineering also supports the Planning Department by
technical review of area specific plans, rezonings, preliminary plats, special use permits and other land
use matters. Public Works is responsible for all right-of-way capital projects including streets, traffic,
drainage and landscaping, and it provides technical support for park and building projects. It provides
project planning, design and drafting (or design contract management and plan review), construction
inspection and contract administration. The Engineering Division also handles all street related
construction maintenance contracts, including their design, layout and inspection.
The Facilities Division is responsible for maintenance of all Town-owned buildings.
Performance Standards:
• Provide information to the public regarding the medians, dams, preservation areas and washes.
• Provide a high level of median maintenance, recognizing that medians are a very important element
of the “first impression” people have of Fountain Hills.
• Inspect all dams quarterly (State inspection annually).
• Provide a customer friendly environment for citizen and developer access to services.
• Provide technical input to the Town Council and advisory commissions as requested.
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Management Indicators: 2005-06 2006-07 2007-08
Actual Estimates Projected
Development Plan review time (1st submittal) goal
• Utility: 5 working days 90% 90% 90%
• Easement abandonments: 35 working days 80% 80% 80%
(including Council action)
2005-06 2006-76 2007-08
Estimates Estimates Projected
Town owned maintained property 1529 acres 1529 acres 1529 acres
*Wash management program 63.3acres 64.8 acres 63.14 acres
*Acres can vary depending on density of vegetation
Fiscal Year 2006-2007 Accomplishments:
• Submitted the Stormwater Management Plan to the Arizona Dept of Environmental Quality (ADEQ)
and the Environmental Protection Agency (EPA) for municipal stormwater discharges. Best
Management Practices (BMPs) accomplished are:
(1) Public Education and Outreach – Education materials, link on web page and material to high
school students.
(2) Public Involvement and Participation – Adopt-a-Street program and hand-out material at local
meetings and fairs.
(3) Illicit Discharge Detection and Elimination – Reviewed existing Town ordinances and storm
drain labeling program complete.
(4) Construction Site Runoff Control – Inspected construction sites and reviewed all site plans for
stormwater requirements.
(5) Post-Construction Runoff Control – Reviewed post-construction ordinances and reviewed wash
management program for stormwater issues.
(6) Pollution Prevention/Good Housekeeping – Reviewed Town vehicle maintenance programs and
inspected Town owned vehicles; modified street sweeping programs and determined miles of
streets swept and frequency of sweeping; trained Town staff on proper stormwater maintenance
and illicit discharge disposal programs; reviewed chemical applications by Town staff and
program for proper handling; reviewed methods for storm drain maintenance and operation and
determined miles of system to be maintained.
• Continued the wash management program at various locations where fire hazards existed.
• Reviewed site plans for building permits, subdivision preliminary plats and condo replats.
• Reviewed, permitted and inspected utility permit requests.
• Reviewed and processed easement and right-of-way abandonments and acquisitions.
Fiscal Year 2007-2008 Objectives:
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• Fulfill the first six requirements of the Stormwater Management Plan as required by the Arizona
Department of Environmental Quality (ADEQ) and Environmental Protection Agency (EPA). Best
Management Practices (BMPs) to be accomplished by December 2007 are:
(1) Public Education and Outreach – Present material to the Middle and Elementary Schools, develop
direct mail flyers for proper discharge of swimming pool water and develop a program to educate
restaurants, garages and golf courses.
(2) Illicit Discharge Detection and Elimination – Modify Town ordinances to prohibit illicit
discharges; develop process to monitor dry weather screening of outfalls; document phone calls
and citizen complaints regarding illicit discharges; revise ordinances regarding pool water
discharge to the stormwater system.
(3) Construction Site Runoff Control – Develop erosion/sedimentation control ordinance and
enforcement program and revise site plan requirements and ordinances.
(4) Post-Construction Runoff Control – Revise construction standard for site inspections and record
site inspection problems encountered and resolution; revise post-construction ordinances;
evaluate and revise education program for developers/engineers/general public and contractors.
(5) Pollution Prevention/Good Housekeeping – Revise street sweeper back washing facilities.
• Complete annual Stormwater Management Plan update and submit to ADEQ.
• Provide wash management at urgent and moderate fire hazard areas in coordination with the Fire
Department requests.
• Provide capital project planning, design and construction consistent with the budget.
• Complete pedestrian safety study in connection with the Strategic Plan goal.
• Research the establishment of a stormwater utility.
• Design Shea Boulevard climbing lane
• Design Shea Boulevard third lane from Saguaro Boulevard to Technology Drive lane
Summary Expenditures - Public Works
FY 2003-2004 FY 2004-2005 FY 2005-2006 FY 2006-2007 FY 2006-2007 FY 2007-2008
Actual Actual Actual Budget Estimate Budget
SALARIES & BENEFITS $558,794 $664,509 $529,540 $653,560 $644,944 $677,980
CONTRACTUAL SERVICES $41,787 $37,723 $27,726 $162,562 $167,370 $802,465
REPAIRS & MAINTENANCE $263,052 $282,336 $411,726 $474,965 $473,865 $494,390
SUPPLIES & SERVICES $68,789 $79,738 $68,527 $89,320 $82,705 $93,130
CAPITAL EXPENDITURES $0 $0 $29,275 $33,000 $33,000 $33,000
TOTAL EXPENDITURES $932,422 $1,064,306 $1,066,794 $1,413,407 $1,401,884 $2,100,965
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Authorized Personnel
Position – Title 2002-2003 2003-2004 2004-2005 2005-2006 2006-2007 2007-2008
Authorized Authorized Authorized Authorized Authorized Proposed
FTE FTE FTE FTE FTE FTE
Public Works Director 1.00 1.00 1.00 1.00 1.00 1.00
Town Engineer 1.00 1.00 1.00 1.00 1.00 1.00
Senior Civil Engineer 1.00 1.00 1.00 0.00 0.00 0.00
Civil Engineer 1.00 1.00 1.00 2.00 2.00 2.00
Senior Civil Engineer Inspector 0.00 0.00 1.00 1.00 1.00 0.00
Facilities Supervisor 1.00 1.00 1.00 1.00 1.00 1.00
Civil Engineer Inspector 2.00 1.00 1.00 1.00 1.00 2.00
Open Space & Landscape Spec. 1.00 1.00 1.00 1.00 1.00 1.00
Executive Assistant 1.00 1.00 1.00 1.00 1.00 1.00
Administrative Assistant 1.00 0.00 0.00 0.00 0.00 0.00
Facilities Maintenance Tech 0.00 0.00 1.00 1.00 1.00 1.00
Maintenance/Custodial Worker 1.00 1.00 0.50 0.50 0.50 0.50
Custodian 2.00 1.50 1.00 1.00 1.00 1.00
Authorized FTE 13.00 10.50 11.50 11.50 11.50 11.50
Salaries and Benefits $677,980
There are currently 8 full-time positions in the Public Works Department and 3.5 from the Facilities
Division with no increase in personnel proposed.
Contract Services $802,465
Engineering regularly contracts with design professionals (traffic engineers, land surveyors, architects and
landscape architects) for services. These contracts provide disciplines and special expertise that are not
available among the Town’s regular staff; provide technical manpower for major projects; and can
provide a reserve of technical manpower during overflow time periods.
Four Federal-aid grant projects for design this upcoming year - they consist of:
• Phase II of the Shea Blvd. Climbing Lane ($372,345)
• Establishment of a Stormwater Utility ($30,000)
• Shea Blvd. From Saguaro to Technology ($210,000)
• Sidewalks from Fayette to the Middle School ($90,000)
Other anticipated projects for FY 07-08 are:
• Surveying Services for traffic related issues ($5,000)
• Contribution to floodplain management, appraisals and mylar scanning ($3,500)
• Design a sidewalk to Four Peaks School ($5,865)
• Survey and right-of-way location for design of alley paving (Colony to Panorama) ($17,560)
• County Refuse Collection Permit ($2,100)
• Saguaro/Avenue of the Fountains Analysis ($24,000)
• Contribution to Fort McDowell for Usury Pass study ($37,500)
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Repairs and Maintenance: $494,390
Vehicle Repairs and Maintenance ($3,000)
The division has six assigned vehicles; one for the department director, one for the open space and
landscape specialist, two for Engineering Inspectors and also pool vehicles for all Town staff.
Median Landscape Maintenance ($326,800)
This line item was increased last year due to an increase in median maintenance. Staff confirms that two full-
time crews are necessary to maintain our medians and town-owned property.
The request for median landscape maintenance covers:
• Mowing, aeration, fertilizer and application, scalp, vacuum, dispose of clippings, mulch, overseed
($19,317)
• Landscape maintenance-4048 hours, spraying pre-emergent (surflan) and post-emergent (roundup)
twice a year, Irrigation technician ($265,770)
• Irrigation repair parts $3,600)
• Palm tree trimming ($14,006)
• Tree trimming-76 trees ($4,180)
• Annual backflow assembly inspection and repairs (required by law) ($2,350)
• Fountain maintenance/supplies - this work is done in-house and includes chlorine, algaecide, shock
treatment, pump/motor maintenance and cleaning bronze statues ($8,340)
Dam/Wash Maintenance ($164,590):
The item includes fire hazard, drainage control, trash and dumping removal in the wash and preservation
areas. Total open space, including washes and dams is 1442 acres. The majority of this budgeted
expenditure is for wash cleanup (see map behind this section – 63 acres for urgent fire hazard removal
areas during next fall, winter and spring.
The request for dam and wash maintenance also includes:
• Bridge inspections performed by the Arizona Dept of Transportation (ADOT) on box culverts and
Corrugated Metal Pipes and the removal of sediment and vegetation ($3,000)
• Dam inspections by ADWR and the required cleanup and maintenance ($8,569)
• Wash maintenance: To minimize any drainage problems and maximize fire protection, we propose
to work in 8 washes. Total area is 63.14 acres. ($137,621)
• After the cutting and removal of debris from the washes, a post-emergent spray is applied to prevent
re-growth of vegetation not indigenous to the area. ($13,600)
• Re-vegetation of native plant material (seed) is applied - done in-house. ($1,800)
Supplies and Services $93,130
This item includes water, electricity, advertising, education and training, dues and publications, fuel costs,
office supplies, tool and shop supplies, printing, communication expenses, travel expenses and uniforms.
Major expenditures are electricity for water features at $14,000 and water usage estimated at $46,500.
Capital Outlay $33,000
The Town’s fleet practice is that vehicles with 100,000 miles or 10 years of age be replaced. The
department’s 1996 Jeep vehicle will be replaced with a Ford Escape Hybrid.
100
PUBLIC WORKS
FY 2004-2005 FY 2005-2006 FY 2006-2007 FY 2006-2007 FY 2007-2008
Actual Actual Budget Estimate Proposed
SALARIES & BENEFITS:
Overtime $0 $6,092 $4,581 $4,581 $4,750
Wages $518,469 $408,559 $501,619 $492,656 $517,950
FICA $7,184 $5,823 $7,380 $6,924 $7,640
Unemployment Insurance $743 $510 $480 $745 $560
Employee's Health Insurance $56,509 $44,029 $59,430 $63,033 $65,560
Employee's Life Insurance $1,537 $1,318 $2,070 $1,599 $1,640
Employee's Dental Insurance $6,533 $4,320 $5,450 $5,048 $4,800
Employee's Eye Insurance $0 $553 $760 $775 $750
Worker's Compensation Insurance $7,434 $10,757 $13,600 $12,271 $14,210
Employee's Retirement Fund $56,987 $45,550 $55,680 $54,519 $57,500
Recruitment Costs $6,584 $0 $0 $0 $0
Disability Insurance $2,529 $2,029 $2,510 $2,793 $2,620
TOTAL $664,509 $529,540 $653,560 $644,944 $677,980
CONTRACT SERVICES
Contractual Services $0 $500 $1,000 $1,000 $17,500
Engineering Fees $37,723 $27,226 $161,562 $166,370 $784,965
TOTAL $37,723 $27,726 $162,562 $167,370 $802,465
REPAIRS & MAINTENANCE:
Vehicle Repair & Maint. $3,958 $3,545 $3,600 $2,500 $3,000
Office Equipment Repairs $365 $0 $0 $0 $0
Mowing/Landscape Maintenance $174,116 $266,750 $312,743 $312,743 $326,800
Wash Maintenance $103,897 $141,431 $158,622 $158,622 $164,590
TOTAL $282,336 $411,726 $474,965 $473,865 $494,390
SUPPLIES & SERVICES:
Advertising $606 $1,378 $650 $400 $500
Conferences $400 $1,833 $1,950 $5,260 $6,400
Education/Training $1,300 $195 $1,000 $600 $1,000
Dues & Publications $2,236 $1,394 $2,545 $2,545 $2,640
Electricity $19,366 $2,944 $12,420 $12,420 $14,000
Gas & Oil $6,759 $7,603 $8,520 $7,100 $7,100
Office Supplies $5,099 $2,389 $3,000 $3,000 $3,000
Tools, Shop Supplies $578 $1,155 $550 $1,400 $500
Printing $763 $1,681 $1,000 $250 $5,665
Communications Expense $2,359 $2,958 $3,360 $3,600 $3,600
Water/Sewer $38,472 $43,680 $52,000 $45,000 $46,500
Travel $496 $711 $500 $730 $1,000
Uniforms $1,269 $605 $1,825 $400 $1,225
Bank Charges $35 $0 $0 $0 $0
TOTAL $79,738 $68,527 $89,320 $82,705 $93,130
CAPITAL EXPENDITURES
Capital Outlay - Vehicles $0 $29,275 $33,000 $33,000 $33,000
TOTAL CAPITAL EXPENDITURES $0 $29,275 $33,000 $33,000 $33,000
TOTAL EXPENDITURES $1,064,306 $1,066,794 $1,413,407 $1,401,884 $2,100,965
101
Town of Fountain Hills
Budget Summary by Program
01 - General Fund
061 - Public Works Department
110 - Facilities Maintenance Program
Total Budgeted Expenditures - $678,490
102
103
Facilities Maintenance Division
Salaries and Benefits $173,132
There are currently 3.5 employees within the Facilities Division with no request for additional staff
at this time.
Repairs and Maintenance $79,750
This section of the budget funds maintenance for all overhead expenditures dealing with maintaining and
operating town-owned facilities, as well as the facilities maintenance vehicles. Budgeted amounts are
based on estimates. Following is a breakdown of the costs:
• Vehicle repairs and maintenance $ 1,250
• HVAC service agreements, fire sprinkler/backflow testing 10,500
• Building maintenance supplies 15,000
• Maintenance and repair of 11 town owned facilities 25,000
• HVAC chillers (annuals) 5,000
• Art installation and relocation 8,000
• Holiday lighting on Civic Center buildings 15,000
Supplies and Services $141,615
There are seven line items within this category: advertising, continuing education, electricity, gas and oil,
office supplies, communications, water/sewer and facilities staff uniforms. Major items for Town-owned
buildings are as follows:
• Electricity (based on 7 month average) $122,000
• Water/sewer (Town Hall, Kiwanis, Library/Museum) 14,000
Capital Outlay $283,993
This budget includes several capital projects that will enhance and protect the value of the Town
owned buildings. Included are:
• Replace fabric/ties for existing canopy covers $ 50,000
• Repaint library/museum and community center and 95,584
Recoat steel awning supports
• Resurface pavement to the rear of Fire Station #1 4,333
• Aggregate for vacant town lot south of library 11,000
• Town official information posting board ramada 8,000
• Finish shell space/work shop Town Hall Room 109 15,000
• Water feature for Town Hall entrance $100,000
104
FACILITIES MAINTENANCE
FY 2004-2005 FY 2005-2006 FY 2006-2007 FY 2006-2007 FY 2007-2008
Actual Actual Budget Estimate Proposed
SALARIES & BENEFITS:
Overtime $0 $0 $2,610 $3,056 $2,179
Wages and Salaries $0 $0 $146,090 $145,280 $144,228
Employer FICA Expense $0 $0 $4,080 $5,406 $4,680
Unemployment Insurance Expense $0 $0 $300 $335 $350
Employee's Health Insurance $0 $0 $0 $57 $0
Employee's Life Insurance $0 $0 $400 $294 $317
Employee's Dental Insurance $0 $0 $1,470 $1,384 $1,208
Employee Vision Insurance $0 $0 $190 $100 $181
Worker Compensation Insurance $0 $0 $8,350 $7,387 $8,171
Employee's Retirement Expense $0 $0 $11,080 $10,296 $11,335
Disability Insurance $0 $0 $460 $505 $482
TOTAL $0 $0 $175,030 $174,100 $173,132
REPAIRS & MAINTENANCE:
Vehicle Maintenance $0 $0 $1,250 $1,250 $1,250
Building Repairs & Maintenance $0 $0 $65,650 $64,209 $78,500
TOTAL $0 $0 $66,900 $65,459 $79,750
SUPPLIES & SERVICES:
Advertising/Signage $0 $0 $0 $57 $60
Continuing Education $0 $0 $0 $195 $990
Electricity Expense $0 $0 $128,300 $118,400 $122,000
Gas & Oil Expense $0 $0 $1,545 $1,392 $1,400
Office Supplies $0 $0 $0 $100 $100
Communications $0 $0 $0 $1,665 $1,665
Water/Sewer $0 $0 $12,962 $14,000 $14,000
Uniforms $0 $0 $1,400 $1,707 $1,400
TOTAL $0 $0 $144,207 $137,516 $141,615
CAPITAL EXPENDITURES
Capital Outlay - Improvements $0 $0 $498,700 $120,548 $283,993
TOTAL $0 $0 $498,700 $120,548 $283,993
TOTAL EXPENDITURES $0 $0 $884,837 $497,623 $678,490
105
Town of Fountain Hills
Budget Summary by Program
01 - General Fund
080 - Planning and Zoning Department
Total Budgeted Expenditures - $892,639
106
Code EnforcementBuilding SafetyPlanning & ZoningPlanningCAD/GIS
108
Management Indicators
2005-2006
Actual
2006-2007
Estimated
2007-2008
Projected
Special Use Permits 12 8 8
Temporary Use Permits 17 16 15
Cut/Fill Waivers 4 0 2
Subdivisions/Condominium
Subdivisions
26 40 30
Zoning Text Amendments 12 6 6
General Plan Amendments 1 2 2
Variances 1 0 1
Re-zoning 3 2 2
Concept Plans 17 8 8
2006-2007 Accomplishments
In fiscal year 2006-2007, the Planning & Zoning Department accomplished the following:
Improved compliance with zoning regulations by increasing Variance filing fees
(Strategic Plan)
Use of Special Use Permits in lieu of Variances for many categories in the Zoning
Ordinance eliminated by Town Council (Strategic Plan)
Land Use Analysis and Statistical Report, including inventory of vacant land, to aid in
projecting population (Strategic Plan)
Approval of ordinance dealing with architectural design standards for non-residential
development (Strategic Plan)
Processed applications for the following projects: Fountain Hills Conference Resort and
Spa (General Plan amendment, rezoning, special use permit and development
agreement), Lion’s Spring (rezoning and preliminary plat), Sonoran Hills Office
Condominiums (preliminary and final plat), Coyote Corner (special use permit),
L’Edifice Professional Office Condominium (preliminary and final plat), Fountain Hills
Veterinary Hospital (special use permit), The Retreat at FireRock (concept plan and
cut/fill waiver), Pal’s Inn (concept plan and special use permit) and Spectrum Behavioral
Health Center (special use permit).
Approval of Saguaro Cactus preservation regulations
Approval of low water landscape regulations, irrigation methods and plant list
On pace to investigate and complete 2,432 code violation complaints, a 19 percent
increase over cases completed in FY06-07.
Awarded contract for GIS services.
Regulation changes to streamline processing and approval of condominium subdivisions
Planning and Zoning Commission study of mixed use regulations
Approval of regulations for swim schools in residential zoning districts
Planning and Zoning Commission agenda information transmitted electronically to
members
Sale of State Trust Land on 3/15/07 enabled by providing information to potential buyers
109
2007-2008 Objectives
Process development proposals and building permit applications in a thorough and timely
manner.
Process text amendments to the Town’s Zoning and Subdivision Ordinances to
implement and clarify policies and remove grammatical and typographical errors.
Enforce Town ordinances and policies to maintain the Town’s quality of life, provide
safe living conditions, protect the environment and preserve resources.
Provide staff and the Planning and Zoning Commission with educational opportunities to
best serve the community with the highest level of expertise in the fields of planning and
code enforcement.
Oversee planning of the State Trust Land (Strategic Plan)
Implement a mediation program to resolve neighborhood disputes.
Update the Town General Plan
Update Land Use Analysis and Statistical Report
Summary Expenditures - Planning & Zoning Department
FY 2003-2004 FY 2004-2005 FY 2005-2006 FY 2006-2007 FY 2006-2007 FY 2007-2008
Actual Actual Actual Budget Estimate Budget
SALARIES & BENEFITS $171,458 $323,364 $579,288 $620,560 $577,639 $656,240
CONTRACTUAL SERVICES $27,950 $51,312 $130,634 $163,100 $79,560 $170,900
REPAIRS & MAINTENANCE $12 $656 $1,647 $1,000 $1,062 $1,700
SUPPLIES & SERVICES $13,122 $20,527 $34,107 $34,164 $31,882 $34,799
CAPITAL EXPENDITURES $0 $0 $0 $0 $0 $29,000
TOTAL EXPENDITURES $212,542 $395,859 $745,675 $818,824 $690,143 $892,639
Authorized Personnel
Position – Title 2002-2003 2003-2004 2004-2005 2005-2006 2006-2007 2007-2008
Authorized Authorized Authorized Authorized Authorized Proposed
FTE FTE FTE FTE FTE FTE
Director 1.00 0.00 0.00 0.00 0.00 1.00
P & Z Administrator 0.00 1.00 1.00 1.00 1.00 0.00
Senior Planner 2.00 1.00 1.00 1.00 1.00 1.00
Planner 1.00 1.00 1.00 1.00 2.00 2.00
Eng. Tech/CAD Operator 2.00 2.00 2.00 2.00 2.00 2.00
Code Enforcement Officer 0.00 3.00 2.00 3.00 3.00 3.00
Executive Assistant 1.00 0.00 0.00 0.00 0.00 1.00
Planning Technician 0.00 0.00 0.00 0.50 0.00 0.00
Planning Assistant 1.00 1.00 1.00 1.00 1.00 0.00
Authorized FTE 8.00 9.00 8.00 9.50 10.00 10.00
110
Salaries and Benefits $656,240
In December of FY06-07, the Town Council authorized converting the half time Planning
Technician position into a full time Planner position. This change was necessary to meet the
additional resource needs of newly adopted regulations dealing with architectural review, low
water landscaping and saguaro cactus preservation.
Contractual Service $170,900
This category includes funds for the following:
• Aerial photography and survey $22,500
• Mediation $7,400
• General plan update $100,000 (required every five years)
• Update land use report $5,000
• Outsource meeting minutes $6,000
• State Trust Land traffic study $15,000
• State Trust Land LVA planning $15,000
Repairs and Maintenance $1,700
This line item includes regular service and maintenance for three division vehicles and CAD
plotter maintenance.
Supplies and Services $34,799
Funds are included for advertising, including signage and posting of notices and agendas, dues and
publications for the planners, gas and oil, travel and uniforms, amounts detailed on the next page.
Capital Expenditures $29,000
Funds in this category will be used to purchase a new, fuel-efficient hybrid vehicle that will
replace one of the three existing vehicles currently used by the code enforcement officers.
111
PLANNING & ZONING
FY 2004-2005 FY 2005-2006 FY 2006-2007 FY 2006-2007 FY 2007-2008
Actual Actual Budget Estimate Proposed
SALARIES & BENEFITS:
Overtime $0 $1,309 $2,181 $1,622 $0
Wages and Salaries $258,779 $453,238 $479,519 $442,488 $509,700
Employer FICA Expense $3,692 $6,975 $8,360 $7,272 $7,440
Unemployment Insurance Expense $513 $876 $600 $835 $730
Employee's Health Insurance $25,215 $53,337 $60,760 $63,897 $70,630
Employee's Life Insurance $755 $1,533 $1,990 $1,600 $1,660
Employee's Dental Insurance $2,941 $6,097 $6,670 $5,691 $4,300
Employee Vision Insurance $0 $716 $850 $822 $730
Worker Compensation Insurance $1,502 $4,444 $6,600 $3,966 $6,770
Employee's Retirement Expense $28,454 $48,786 $50,670 $47,040 $52,130
Recruitment Costs $408 $0 $0 $0 $0
Disability Insurance $1,105 $1,977 $2,360 $2,406 $2,150
TOTAL $323,364 $579,288 $620,560 $577,639 $656,240
Professional Fees $36,752 $130,634 $163,100 $79,560 $170,900
Engineering Fees $14,560 $0 $0 $0 $0
TOTAL $51,312 $130,634 $163,100 $79,560 $170,900
REPAIRS & MAINTENANCE:
Vehicle Repairs & Maintenance $656 $410 $600 $662 $700
Office Equipment Repairs & Maintenance $0 $1,238 $400 $400 $1,000
TOTAL $656 $1,647 $1,000 $1,062 $1,700
SUPPLIES & SERVICES:
Advertising/Signage $2,580 $2,306 $1,500 $1,800 $1,800
Conferences $4,138 $8,579 $8,090 $6,044 $7,200
Continuing Education $814 $2,087 $2,850 $2,850 $3,150
Dues & Publications $4,016 $4,637 $3,392 $4,000 $4,360
Gas & Oil Expense $2,997 $4,026 $3,000 $3,200 $3,360
Office Supplies $2,222 $5,981 $9,467 $9,467 $9,467
Printing $1,327 $3,266 $3,200 $840 $1,500
Communications Expense $1,474 $2,323 $1,800 $2,816 $2,832
Meeting Expense $461 $435 $500 $500 $500
Uniforms $498 $466 $365 $365 $630
TOTAL $20,527 $34,107 $34,164 $31,882 $34,799
CAPITAL EXPENDITURES
Capital Expenditures - Vehicles $0 $0 $0 $0 $29,000
TOTAL CAPITAL EXPENDITURES $0 $0 $0 $0 $29,000
TOTAL EXPENDITURES $395,859 $745,675 $818,824 $690,143 $892,639
112
113
Town of Fountain Hills
Budget Summary by Program
01 - General Fund
060 - Building Safety
Total Budgeted Expenditures - $605,700
114
115
Building Safety Division
Mission Statement
The Building Safety Division of the Planning & Zonings Department is dedicated to providing the highest
quality construction permitting, plan review and building inspection services in a responsive and customer
friendly manner.
Division Description
The Building Safety Division processes applications for permits to construct homes, commercial
buildings, fences, pools, and any other structures. The division serves as a receiving and processing
center for internal review of these plans. The division’s review and inspection staff includes a building
official, two certified residential plans examiners, three certified building inspectors and two permit
technicians to assure compliance with the adopted building codes by the Town. The Building Safety
Division also issues numerous reports regarding building activity to other public agencies.
Building Safety anticipates that it will process approximately 75 single family building permit
applications, around 650 for pools, fences and remodeling jobs and perform inspections at approximately
850 building sites in fiscal year 2007-2008. Most of the division’s activity will be concentrated in the
developing portions of Firerock Country Club, Crestview, Eagles Nest, the proposed Fountain Hills
Resort and Spa on Palisades Boulevard and many custom homes throughout the community. The
division expects the volume of construction to be less than the previous year with construction numbers
of 75 new single-family units and 5 multi family units. Inspections will not be affected as there are 850
active and older permits in progress.
Performance Standards Management Indicators
• Perform first review plan reviews within 20 working days, and subsequent plan reviews in 10
working days.
• Identify all plan review concerns in the first review.
• Perform all requested inspections within 24 hours.
• Provide a customer friendly environment for citizens to access the services of Building Safety and
process the needed applications.
• Respond to all citizen inquiries within the same working day.
Management Indicators
2005-2006
Actual
2006-2007
Estimated*
2007-2008
Proposed
Building Permit Activity
• Single-family 145 70 75
• Multi-family 240 units 5 units 5 units
• Commercial 12 12 6
• Pools, Fences, Additions and Remodels 713 700 650
• On-site Inspection 9500 9500 8400
116
* Estimated, based on actual figures from the first three quarters.
2006-2007 Accomplishments
Projected from figures based on first nine months of fiscal year 2006-2007, the Building Safety Division
accomplished the following:
• Reviewed 700 building plans and permit applications.
• Performed 9500 commercial and residential building inspections.
• Maintained an automated building permit system to better enhance customer service and reduce
paperwork.
2007-2008 Objectives
• Provide staff educational opportunities to best serve the community with the highest level of
expertise.
• Provide trained and qualified plan examiners, building inspectors and building permit technicians.
• Deliver the highest professional service available to our customers.
• Maintain high workplace safety standards in the field and in the office.
• Continue to inform the community about new Building Codes and Energy Conservation Codes.
• Provide a high level of business inspections.
• To maintain an effective ISO rating of 4 or less by utilizing 2% of total budget for training.
Summary Expenditures - Building Safety
FY 2003-2004 FY 2004-2005 FY 2005-2006 FY 2006-2007 FY 2006-2007 FY 2007-2008
Actual Actual Actual Budget Estimate Budget
SALARIES & BENEFITS $458,951 $426,245 $535,591 $591,100 $564,502 $546,300
CONTRACTUAL SERVICES $66,586 $34,014 $0 $45,717 $0 $0
REPAIRS & MAINTENANCE $2,030 $856 $947 $1,250 $625 $800
SUPPLIES & SERVICES $20,905 $19,444 $19,518 $28,925 $31,331 $29,600
CAPITAL EXPENDITURES $0 $0 $27,748 $29,000 $28,247 $29,000
TOTAL EXPENDITURES $548,472 $480,559 $583,804 $695,992 $624,705 $605,700
Authorized Personnel
Schedule of Authorized Positions
Position – Title 2002-2003 2003-2004 2004-2005 2005-2006 2006-2007 2007-2008
Authorized Authorized Authorized Authorized Authorized Proposed
FTE FTE FTE FTE FTE FTE
Building Safety
Chief Building Official 1.00 1.00 1.00 1.00 1.00 1.00
Senior Building Inspector 2.00 0.00 1.00 1.00 1.00 0.00
Plans Examiner 2.00 2.00 2.00 2.00 2.00 2.00
Building Inspector 1.00 2.00 2.00 2.00 2.00 3.00
Building Permit Technician 2.00 2.00 3.00 3.00 3.00 2.00
Authorized FTE 8.00 7.00 9.00 9.00 9.00 8.00
117
Salaries and Benefits $546,300
There are currently 8 full time positions within this department, with no request for additional staffing at
this time. A vacancy was created during the year that will not be filled.
Repairs and Maintenance $800
This item includes regular service and repair and maintenance for the four division vehicles.
Supplies and Services $29,600
Funds are included for advertising, signage, conferences, education and training, dues and publications,
gas and oil, office supplies, printing, communication expenses, travel and uniforms.
Note: To score the maximum Insurance Services Office (ISO) points possible, training must be at least
2% of the annual operating budget for all building department related activities.
Capital Outlay $29,000
The Town’s fleet practice is that vehicles with 100,000 miles or 10 years of age be replaced. The
department’s 1998 Ford F-150 pickup should be replaced with a Ford Escape Hybrid.
118
BUILDING SAFETY
FY 2004-2005 FY 2005-2006 FY 2006-2007 FY 2006-2007 FY 2007-2008
Actual Actual Budget Estimate Proposed
SALARIES & BENEFITS:
Overtime $0 $532 $6,087 $0 $0
Wages and Salaries $331,907 $409,824 $439,413 $419,654 $411,000
Employer FICA Expense $4,594 $5,681 $6,500 $5,764 $6,000
Unemployment Insurance Expense $757 $773 $500 $696 $600
Employee's Health Insurance $40,586 $55,403 $68,500 $73,498 $65,000
Employee's Life Insurance $995 $1,445 $1,800 $1,507 $1,300
Employee's Dental Insurance $5,136 $5,925 $6,900 $6,034 $4,900
Employee Vision Insurance $0 $849 $1,100 $1,044 $800
Worker Compensation Insurance $4,479 $8,334 $9,100 $8,059 $9,400
Employee's Retirement Expense $36,510 $45,113 $49,000 $46,158 $45,200
Disability Insurance $1,281 $1,711 $2,200 $2,088 $2,100
TOTAL $426,245 $535,591 $591,100 $564,502 $546,300
CONTRACT SERVICES
Professional Fees $34,014 $0 $45,717 $0 $0
TOTAL $34,014 $0 $45,717 $0 $0
REPAIRS & MAINTENANCE:
Vehicle Maintenance $856 $947 $1,250 $625 $800
TOTAL $856 $947 $1,250 $625 $800
SUPPLIES & SERVICES:
Advertising/Signage $778 $0 $500 $0 $500
Conferences $741 $0 $2,125 $2,125 $1,850
Continuing Education $3,733 $6,754 $9,910 $12,326 $11,110
Dues & Publications $1,629 $1,080 $2,190 $2,600 $1,690
Gas & Oil Expense $5,320 $5,014 $5,650 $6,200 $6,000
Office Supplies $2,029 $1,983 $2,500 $2,500 $2,500
Tools, Shop Supplies $371 $15 $250 $150 $250
Printing $1,430 $1,504 $1,950 $2,130 $2,050
Communications Expense $2,021 $3,060 $3,200 $2,650 $3,000
Meeting Expense $1,040 $0 $150 $150 $150
Uniforms $352 $108 $500 $500 $500
TOTAL $19,444 $19,518 $28,925 $31,331 $29,600
CAPITAL EXPENDITURES
Capital Outlay - Vehicles $0 $27,748 $29,000 $28,247 $29,000
TOTAL CAPITAL EXPENDITURES $0 $27,748 $29,000 $28,247 $29,000
TOTAL EXPENDITURES $480,559 $583,804 $695,992 $624,705 $605,700
119
Town of Fountain Hills
Budget Summary by Program
01 - General Fund
081 - Recreation Department
Total Budgeted Expenditures - $715,850
120
121
Parks & Recreation Department
Mission Statement
The mission of the Fountain Hills Parks and Recreation Department is to enhance the quality of life by
providing and maintaining safe, available, and accessible parks and recreation services that will meet the
intellectual, social cultural, and leisure needs of all residents.
Department Description
The Parks and Recreation Department is responsible for providing safe and accessible recreation
services for all age groups. Parks and Recreation services include adult and youth sports, pre-
school programs, cultural programs, teen services, outdoor programs, special events, special
interest classes, adult education classes, and after school programs.
Performance Standards
• Increase participation through unique marketing techniques
• Increase the department’s volunteer base and continue to explore and use creative methods to
recognize volunteers
• Provide Little League Baseball, Soccer Club, Pop Warner Football and Cheerleading with assistance
to help ensure the success of their respective organizations
• Solicit special event sponsorship from community organizations and businesses
Management Indicators
2005-2006 2006-2007 2007-2008
Actual Estimated Projected
Recreation
• Special Events 6 7 8
• Adult and Youth Sports Activities/
Number of Courses Offered 10/207 10/208 20/210
• Special Interest Programs/
Number of Courses Offered 11/121 20/131 23/140
• Youth and Teen Programs/
Number of Courses Offered 11/26 9/58 16/60
• Youth Sports Organizations
Affiliated w/ Parks and Recreation 4 4 4
• Volunteer Hours (estimated) 4,000 4,000 4,000
Administrative Support
Youth Sports Organizations & Schools – Facility Bookings
• Little League Baseball 611 631 635
• PONY League Baseball 74 93 105
• Soccer Club 308 317 320
• Pop Warner Football 76 75 75
122
• Fountain Hills High School 519 509 500
• Fountain Hills Middle School 16 18 18
• Fountain Hills Montessori School 8 5 5
Total 1,705 1,612 1,603
Parks and Recreation Revenue
2005-2006 2006-2007 2007-2008
Actual Estimated Projected
• Recreation Programs $ 138,733 $ 154,873 $ 226,321
• Facility Rentals $ 14,340 $ 12,800 $ 13,500
• Picnic Ramada Reservations $ 4,120 $ 2,450 $ 3,750
Total $ 157,193 $ 170,123 $243,571
Fiscal Year 2006-2007 Accomplishments
• The Town and Parks and Recreation were recognized by the Arizona Parks and Recreation
Association with two awards; the St. Patrick’s Day Celebration was acknowledged with the
Outstanding Neighborhood/Community Special Event Award for communities with a population
under 25,000; and Mayor Wally Nichols received the Outstanding Public Official Award for his
ongoing support of Parks and Recreation in the community.
• Movies in the Park debuted at Fountain Park as a result of financial support from several local
businesses.
• Partnered with Ballet Arizona to present “Ballet Under the Stars” at Fountain Park.
• Hosted the Lori Piestawa Native American Games along with Fort McDowell and the Fountain Hills
Unified School District
• Continued to work with the McDowell Mountain Preservation Commission regarding the design
work for the planned permanent trailhead into the McDowell Mountain Preserve
• Continued the positive relationship between the Town and the Fountain Hills School District to
jointly utilize school facilities for various programs in return for the District’s use of park facilities.
Established an Intergovernmental Agreement to jointly develop school sites as public parks.
• Continued to defray costs for events such as the St. Patrick’s Day Celebration, Eggstravaganza, and
the Fantastic Fall Festival by making the most of sponsorships opportunities.
• Continued to provide expanded opportunities to utilize park facilities by the local youth sports
organizations, which include Little League Baseball, Soccer Club, and Pop Warner Football and
Cheerleading
• Implemented an on-line program registration system
• Entered the fourth year of a partnership with the Phoenix Suns Jr. Suns / Jr. Mercury to enhance our
Youth Basketball program
• Ongoing training and certification for all Parks and Recreation Staff in CPR and First Aid, as well as
on the Automatic External Defibrillators
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Planning and Zoning Department
Mission Statement
The Planning and Zoning Department is dedicated to enhancing the quality of life in Fountain
Hills through innovative, proven planning techniques and providing excellent customer service
in a professional and timely manner.
Division Description
The Planning and Zoning Department administers the Town of Fountain Hills’ planning,
building safety, code enforcement and computer aided drafting programs. Planning functions
include the processing of applications for General Plan amendments, area specific plans, special
use permits, temporary use permits, re-zonings, subdivisions, variances, concept site plans and
other land use related requests. The Building Safety Division processes applications for permits to
construct homes, commercial buildings, fences, pools, and any other structures. Code enforcement
responds to citizen complaints and provides proactive services with the goal of eliminating blight
and improving the appearance of business and residential areas to enhance property values and
maintain the quality of life within the Town. CAD Services provides internal and external
customers with maps, geographic information and research.
The department provides staff support to the Town Council, the Planning and Zoning
Commission, and the Board of Adjustment. Staff represents the Town at intergovernmental
meetings, Maricopa Association of Governments committees, boards and special interest
associations, and neighborhood groups.
Performance Standards
Perform first review plan checks within 20 working days and subsequent plan reviews in 10
working days.
Respond to all citizen inquiries within the same working day.
Keep the Town Council, Planning and Zoning Commission, Board of Adjustment and other
commissions informed of new legislation and legal rulings pertaining to land use matters.
Provide educational opportunities to members of the Town Council, Planning and Zoning
Commission, and Board of Adjustment on pertinent and evolving land use matters.
Ensure that Council approved ordinances are enforced.
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Fiscal Year 2007-2008 Objectives
• Provide excellent customer service including information referral, quality programs, and easy
registration
• Provide staff support to all events and activities scheduled at all town parks
• Work closely with Fountain Hills Unified School District to assist with scheduling and maintenance
of facilities utilized by the Parks and Recreation Department
• Identify new recreation and leisure education programs to be offered in 2008-2009
Salaries and Benefits $512,223
There are no changes proposed for recreation division staffing this year; however there are two
new positions requested, Park Ranger, in the parks (see parks section).
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Contract Services $165,217
The Special Programs funding request has increased this fiscal year due to new programs and/or
returning such as Digital Photography, Scrapbooking, and Tai Chi, as well as the addition of
special events such as Ballet Under the Stars and Movies in the Park and Paws in the Park.
Special Programs in the amount of $71,650 includes:
Ballet Under the Stars $8,620
Ballroom Dancing $1,800
Cardio Kick Fit $3,300
Concerts in the Park $4,325
Digital Photography $720
Drawing $820
Faux Painting $1,920
Hunter Education $300
Instant Musicians $960
Language Lessons $2,100
Movies in the Park $14,835
Oil Painting $2,160
Paws in the Park $590
Pilates $1,160
Scrapbooking $1,080
St. Patrick’s Day Celebration $21,260
Tai Chi Chuan $2,160
Watercolor $2,220
Yoga $1,320
The youth and teen programs line item of $15,575 is broken down as follows:
Afternoon Adventures $1,160
Eggstravaganza $2,500
Fantastic Fall Festival $3,235
Friday Night Live $0
Homecoming Tailgate Party $696
Mayor’s Youth Council $1,529
Midnight Madness $250
Munchkin Adventures $1,380
Party In The Park $2,372
Teen Etiquette $480
Toddler Time $1,973
The sports activities line item of $42,492 is broken down as follows:
Basketball – Adult $665
Basketball - Youth $9,238
Dodgeball – Adult $120
Dodgeball – Youth $112
Golf Lessons - Adult $3,000
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Golf Lessons – Junior $2,550
Kickball – Adult $180
Softball – Adult Leagues $3,748
Softball – Senior Leagues $702
Softball – Senior Tournaments $10,852
Tennis – Adult $1,068
Tennis – Junior $2,136
Tennis – Pee Wee $846
Turkey Trot $4,860
Volleyball – Adult $620
Volleyball – Youth $1,450
Youth Sports Competitions $345
The “In The Loop” Parks and Recreation Activity Guide is prepared and budgeted for within the
Parks and Recreation department. Each issue is 24 pages and mailed to every resident in Town
three times a year at a cost of $11,615 each edition.
Repairs and Maintenance $1,750
This refers to expenses relating to the department’s 15-passenger van and an administrative vehicle, as
well as maintenance and repair to office equipment.
Supplies and Services $36,660
This category includes advertising, conferences, continuing education, dues and publications, gas
and oil, office supplies, printing, communications, travel, and uniforms as detailed on the
following page. The increase in conference costs is to allow for the Director to attend the
National Parks and Recreation Association’s Pacific Northwest Resource Management School in
Seattle, Washington.
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Town of Fountain Hills
Budget Summary by Program
01 - General Fund
81 - Parks and Recreation Department
• 004 - Fountain Park Location
• 005 - Desert Vista Neighborhood Park Location
• 006 - Four Peaks Park Location
• 007 – Golden Eagle Park
Total Parks $1,490,366
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Parks Division
Mission Statement
The park staff is dedicated to maintaining over 114 acres of park land throughout the Fountain
Hills park system to department standards by professionally maintaining and operating each
park’s facilities and amenities enhancing the beauty, value, quality of the park’s environment:
and continuing to provide quality recreation opportunities, safe and clean parks, and superior
park beautification.
Park Descriptions
Each of the four parks in the Town’s park system is in a different stage of development based on
master plans that were developed specific to each park. The Parks and Recreation Commission
and Town Council have reviewed and approved the master plans, which included public input
during their planning. Golden Eagle Park is the first to complete its master plans and the updated
master plan for Desert Vista Park and Fountain Park, has also been completed. The master plan
for Four Peaks Neighborhood Park will be updated as it continues to be developed to completion.
Desert Vista Neighborhood Park
Desert Vista Neighborhood Park is an all turf 12-acre park located between Desert Vista and
Tower Drives, South of Tioga Drive. The Town acquired this site on May 21, 1998, from MCO
Properties Inc. The Town has fenced 3.5 acres that is used as an Off-Leash Recreational Facility
and uses the remainder of the park for soccer and open field play. Additionally, the local dog
owners group, Fountain Hills “ADOG” (Association of Dog Owners) has raised funds to
contribute to the installation of lights at the facility. The lights will extend the hours that users
will be able to utilize the park, particularly during the summer months when it cools off in the
evening. The first phase of the Skate Park was completed and dedicated in January of 2007 and
the additional improvements to the entire parks sidewalks, landscaping, ramadas, restroom
control building and lights are planned this year with proceeds from a Heritage Grant, if
approved.
Fountain Park
Fountain Park is a 62-acre passive recreation facility that is the signature park of the community
and home of the Town’s world famous fountain. The Town acquired the park on May 1, 1997,
from MCO Properties Inc. The park was built in 1970 and includes 33 acres of turf, a 29 acre
100 million gallon effluent lake, a pump house station, a dam, 18-hole disc golf course, restroom
control building, two children’s playgrounds, approximately 7,200 linear feet of walkways, five
ramadas with picnic tables and grills, and two parking lots. Additional amenities include a
beautiful Veterans’ Memorial, an amphitheater, three effluent recharge wells and the Rotary
Centennial Splash Park. Several other park improvements are scheduled to be completed later
this year, which include a concrete walking path along the west side of the lake, 18 new disc golf
tee pads and the installation of a new irrigation system for the park.
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Four Peaks Neighborhood Park
Four Peaks Neighborhood Park is a 14-acre recreation facility adjacent to Four Peaks Elementary
School. The Parks and Recreation Department acquired 9.9 acres of land from the School
District in May 2001, bringing the total acreage of the park to 14 acres. The park currently
includes the north soccer field with seating, the south athletic multi-purpose field with lights, two
softball fields with covered dugouts, two lighted tennis courts, two lighted basketball courts, two
ADA accessible children’s playgrounds, a restroom control building, one ramada with a grill and
parking for 20 vehicles. The Master Plan for future improvements is scheduled to be updated
this year.
Golden Eagle Park
Golden Eagle Park is a 25-acre active recreation facility adjacent to Fountain Hills High School.
The park includes four multi-purpose lighted ball fields with covered dugouts and seating for 550
spectators, four lighted tennis courts with a shaded waiting area, two lighted basketball courts
with bleachers, two lighted sand volleyball courts with a shower tower, ADA accessible shaded
tot lot & children’s playground with a shaded seat wall, a 2,500 square foot restroom/control
building, three parking lots with a total of 223 parking spaces, three picnic ramadas with grills,
one pedestrian foot bridge, eight chilled drinking fountains, a horse shoe pit, two open turf areas,
a large equipment storage yard and approximately one mile of concrete pathways throughout the
park. Golden Eagle Park is the first facility to complete all phases of capital improvements.
Performance Standards
Fountain Hills Park System
(Fountain Park, Desert Vista Neighborhood Park, Four Peaks Neighborhood Park, & Golden
Eagle Park)
• Provide safe and clean facilities daily
• Secure restroom/control buildings and park entry gates daily
• Prepare and line all ball fields for scheduled activities or events
• Maintain athletic facilities at standards acceptable for all scheduled sports activitiesMaintain an
accident free work place
• Provide excellent customer service
Management Indicators-Parks
2005-2006 2006-2007 2007-2008
Actual Actual Projected
Grounds Maintenance
Mowing Frequency 42 weeks 42 weeks 42 weeks
Aeration 2 x annually 2 x annually 2 x annually
Post Emergence Spraying 2 x annually 2 x annually 2 x annually
Pre Emergence Spraying 2 x annually 2 x annually 2 x annually
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Park Facility Bookings
Desert Vista Neighborhood Park 57 75 100
Fountain Park 108 100 110
Four Peaks Neighborhood Park 550 575 600
Golden Eagle Park 1,891 2,150 2,200
Total: 2,606 2,900 3,010
Parks and Recreation Revenue
Desert Vista Neighborhood Park 400 350 400
Fountain Park 10,660 10,650 10,700
Four Peaks Neighborhood Park 789 725 800
Golden Eagle Park 6,170 5,525 5,600
Total: $18,019 $17,250 $17,500
Facility Rentals $14,340 $12,800 $ 13,500
Ramada Rentals $ 4,120 $ 2,450 $ 3,750
Total: $18,460 $15,250 $ 17,250
Fiscal Year 2006-2007 Accomplishments-Parks
Fountain Hills Park System
• Maintained our high standards of maintenance for all park amenities and facilities
• Posted new signage throughout the park system
• Installed several new memorial park benches and trees at several parks
• Provided support services and field preparation for various Fountain Hills organizations, such
as the Chamber of Commerce, Ministerial Association, Little League, the Soccer Club, Pop
Warner Football, the Senior Softball program and the Adult Men’s League.
• Provided support services and field preparation to High School, Middle School and Four
Peaks Elementary School personnel and associated sports teams
• Upgraded turf and field conditions at all parks
Desert Vista Neighborhood Park
• Replaced ficus trees at the Off Leash Recreational Facility
• Prepared and lined the open turf area for F.H. Soccer Club games and practices.
• Finished Phase I of the Skate Park
Fountain Park
• Completed reconstruction on overlook trail
• Continued the St. Patrick’s Day celebration with two scheduled times for dyeing the Fountain
green.
• Repaired aeration pumps and diffusers for greater aeration of Fountain Lake
• Repaired Fountain Bank lights
• Rotary Splash Park was completed and opened
• Installed granite on Island
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Four Peaks Neighborhood Park
• Reconditioned East and West softball fields
• Installed timer for tennis court lights
• Installed shaded seating area between tennis courts
• Installed liquid fertilizer injector connections to irrigation system
Golden Eagle Park
• Crack seal parking lots
• Painted Saguaro Ramada roof
• Re-lamped field #4
• Replaced shade screens on dugouts for all four ball-fields
• Installed grass infield on field #4 for Little League games this season
• Added boards to field #3 backstops and dugouts to reduce rainwater runoff on infield
• Completed two items on the FEMA requirements list
• Installed hour meter on ballfield lights
Fiscal Year 2007-2008 Objectives (Parks)
• Complete budgeted park improvements for 2007/2008
• Obtain grant funding for the completion of the Desert Vista Neighborhood Park
Improvements
• Improve turf and field conditions at each park facility
• Work with ADOG to continue safe and clean operations of the Off Leash Recreational
Facility
• Improve Fountain Lake water quality
• Install Fountain Park irrigation system
• Continue high level of support for all sports and special events in the park system
• Reduce the expenditures related to vandalism through prevention measures and surveillance
• Complete Department of Justice ADA compliance request
• Complete FEMA requirements for restroom/ control building at Golden Eagle Park
• Accomplish access to the McDowell Mountain Preserve trails
• Resurface and re-stripe all the Parks Division parking lots.
SummaryExpenditures
FY 2003-2004 FY 2004-2005 FY 2005-2006 FY 2006-2007 FY 2006-2007 FY 2007-2008
Actual Actual Actual Budget Estimate Budget
SALARIES & BENEFITS $206,578 $227,742 $250,019 $335,870 $315,646 $432,360
CONTRACTUAL SERVICES $6,975 $750 $5,755 $47,000 $6,308 $373,000
REPAIRS & MAINTENANCE $257,130 $311,687 $315,711 $343,796 $332,120 $385,535
SUPPLIES & SERVICES $163,036 $195,090 $216,706 $241,811 $210,061 $228,001
CAPITAL EXPENDITURES $0 $0 $120,683 $1,768,168 $645,453 $71,470
TOTAL EXPENDITURES $633,719 $735,269 $908,873 $2,736,645 $1,509,588 $1,490,366
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Salaries and Benefits $432,360
The Parks Division personnel include a Supervisor of Parks, three Parks Operations Leads, and two
Groundskeeper positions. Two additional positions are proposed – two Park Rangers. The Park Rangers
will have responsibility for monitoring the trails as well as the parks for adherence to Town rules.
Although the staff members are assigned to a specific park, they share responsibilities for all parks and
perform their duties wherever necessary. The following is the proposed salary and benefit costs broken
down by park:
Desert Vista Neighborhood Park $ 0 (shared with other parks)
Fountain Park $ 58,820 1-Operations Lead
Four Peaks Neighborhood Park $ 51,260 1-Operations Lead
Golden Eagle Park $305,930 1-Operations Lead
1-Supervisor of Parks
2-Park Rangers
2-Groundskeepers
Park / Trail Ranger Budget Justification (further justification is included in the Pay Plan Section of this
budget)
The enforcement of the Town Code specific to parks remains an issue. Further, issues such as park
vandalism have continued to increase in not only the number of incidents but their severity and dollar cost
to the community. These issues will likely only increase as the Town continues to grow. As additional
recreational amenities are added not only in parks but also to other areas of the Town such as a skate park,
trailhead locations and park entry/exit gates the need for opening and closing these amenities on a
consistent timely manner is also growing.
Contract Services $373,000
There are plans to update the Park Master Plan at Four Peaks Neighborhood Park and increase funding
for the Fountain Lake Management. The following is a breakdown by parks of the associated costs:
Four Peaks Neighborhood Park $45,000 Master Plan/documents
Four Peaks Park master plan documents need to reflect the change of the skate park relocation to Desert
Vista Neighborhood Park as well as future upgrades to the bus barn, basketball courts and concession
stand area.
Fountain Park $28,000 Lake Management
Fountain Lake management was increased to resolve issues with algae and odors. Monthly testing plus
contingency funds are for any lake treatments that may be needed.
Joint Use School Parks Analysis* $300,000 Design fees
*This is included in the Capital Projects fund that includes the description and justification.
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Repairs and Maintenance $385,535
The major component to this category is the Annual Landscape Contract, which accounts for
most of the expenditures. The Annual Landscape Contract was re-bid during fiscal year 2004-
2005 and will be renewed on an annual basis for up to four additional years. We are in the third
year of renewal for the Annual Landscape Contract. Additionally, the annual landscape
contract amounts for each park budget have adjusted annually to include the Consumer Price
Index increase. Other expenses relate to the daily maintenance of the parks, as well as renting
power tools and small equipment to perform park maintenance repairs.
Desert Vista Neighborhood Park Total: $ 43,195
Fountain Park Total: $171,178
Four Peaks Neighborhood Park Total: $ 53,948
Golden Eagle Park Total: $117,214
Desert Vista Neighborhood Park has $43,195 budgeted for repairs and maintenance, primarily mowing
and landscaping in the amount of $32,245. This line item consists of mowing 42 times a year; Pre and
Post emergence spraying $1,000, scalping + over-seeding at $9,435. The remaining $11,000 is for field
prep/maintenance at $8,950 and rentals of equipment at $2,000. The rentals increased due to the porta-
johns at the Off Leash Facility and the Skate Park until the restroom control building is built.
Fountain Park’s budget of $171,178 for repairs and maintenance consists of $79,267 mowing and
landscaping, equipment repairs were increased to $31,600 to replace and repair the Cla-valves on the
“world famous” fountain. Most of the increase is for the recommended replacement of Cla-valve #3.
$34,500 Field and park maintenance line item that consists of liquid fertilizer $3,000, acid supplies
$4,000, granular fertilizer $8,000, irrigation repairs $1,000, $5,000 hydro-seeding, $3,500 trees, $3,000
memorial benches, $1,000 for memorial concrete pads, , $1,000 water fowl removal. $23,311 building
repairs/maintenance supplies; the increase is due to costs to seal and stripe two parking lots; $1,500
equipment rental and $1,000 for vehicle repairs/maintenance.
Fountain Park’s mowing and landscaping line item of $79,267 breaks down as follows: Mowing 42
times at $24,893, $2,100 aeration, $3,000 landscape maintenance; $7,000 irrigation tech; $1,200 pre and
post emergence spraying; $8,723 tree trimming, $1,645 palm tree trimming, $28,100 scalping and over-
seeding. Added CPI 3.4% = $2,606
Four Peaks Neighborhood Park budget of $53,948 consists mainly of two line items, $22,478 for mowing
and landscape maintenance and $21,700 for field preparation. The mowing and landscaping $22,478
breaks down as $14,364 for 42 mows, $2,000 for tree trimming, $750 for mulch, $4,830 for over-seeding
and $748 for the CPI 3.4% increase. The $21,700 field preparation consists of $6,000 for lighting repairs,
$2,000 stabilizer and paint, $2,500 fertilizer & herbicides, $1,000 irrigation repairs, $1,000 Rye-seed,
$2,000 fence repairs and $7,200 for parking lot resurfaced and lined. Also included is $7,000 for building
repairs/maintenance, $1,800 equipment rental and $700 for vehicle repairs/maintenance.
Golden Eagle Park’s request of $117,214 consists of $29,314 mowing and landscape maintenance,
$44,500 field prep/maintenance, $35,700 building repairs/maintenance. Building repairs and maintenance
increased due to the FEMA (Federal Emergency Management Agency) required improvements to relocate
the air conditioning unit to the roof, add a shutoff switch for the lower level garage area and $10,000 to
reseal and stripe three parking lots. The mowing contract breakdown as follows: $13,000 for 42 mows,
$8,000 for trimming, $3,500 irrigation laborer, $3,000 for scalping 6 acres of turf, $850 for turf sweeping
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and $963 for CPI 3.4% increase. Field prep/maintenance breakdown; $3,000 fertilizers, $4,000 infield
stabilizer, $1,500 warning track mix, $3,000 herbicides, $5,000 rye-seed, $2,500 mulch, $4,500 paint and
chalk, $14,000 ball-field light repairs on #1 and #3, $3,000 irrigation repairs, $1,000 garbage can lids and
$3,000 replacement plants/landscaping. $35,700 for building repairs /maintenance which includes $5,000
for fence repairs, $10,000 resurface and line 3 parking lots, $6,000 picnic tables, $3,000 painting ramadas,
foul poles and block walls, $3,500 restroom repairs/building supplies, $1,200 new faucets for restrooms,
$4,000 to relocate A/C unit due to FEMA requirement, $3,000 to install electrical conduit to A/C unit
plus a shutoff switch for the building lower level. Also included is $5,700 for vehicle
repairs/maintenance and $2,000 for equipment rentals.
Supplies and Services $228,001
The major expenditures of this category consists of the electricity and water/sewer services
required to service each of the Town’s four parks. Expenses in this category pertain to the daily
operations of the parks and also include trash pick-up, park signage, tools and supplies, gas and
oil, communications expenses, and uniforms. Also included are expenditures associated with
continuing education and conferences for park staff to keep current with their certifications.
Desert Vista Neighborhood Park Total: $ 12,450
Fountain Park Total: $125,250
Four Peaks Neighborhood Park Total: $ 29,601
Golden Eagle Park Total: $ 60,700
Desert Vista Neighborhood Park supplies and services are $12,450. Fountain Park supplies and
services are $125,250, which includes $109,000 for electricity to operate the fountain pumps,
ramadas, parking lot lights, Rotary Splash Park and restroom/control building. The remaining
$16,250 includes $10,000 for water and sewer, $1,000 for gas and oil, and all other associated
line items equal $1,000 or less. Four Peaks Neighborhood Park supplies and services costs of
$29,601 include two major expenses, $10,000 for electricity plus water and sewer costs at
$15,000. Golden Eagle Park costs of $60,700 include $33,800 for electricity to light the ball
fields, tennis courts, parking lots, area lighting, and the restroom/control building. The
remaining $26,900 is accounted for in line items for gas and oil at $5,600, tools and shop
supplies at $5,800, water and sewer at $8,100, uniforms at $3,500, and communication expense
at $1,300. All other associated line items equal $1,000 or less.
Capital Improvement Projects $71,470
Each park budget includes a request for capital expenditures, some of which are budgeted in the Capital
Improvement Plan. The park projects in the General Fund are as follows:
John Deere gator 4x4 to replace existing gator $ 6,600
This replaces the Golden Eagle Park existing utility vehicle which is 9 years old and has
transmission problems. The piece of equipment is used to move smaller loads and materials around
the parks.
F150 ½ ton truck to replace a 1999 Dodge ram $ 17,000
This will replace the current vehicle which is a 1999 Dodge with over 100,000 miles and will be
shared between part time staff and the Park Rangers.
Flood proof container (required by FEMA) $ 5,870
This is a storage container for chemicals and materials that are being stored in a designated flood
plain, this is mandated by FEMA (Federal Emergency Management Agency).
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Camera system for park surveillance $ 25,000
The camera system will be used for surveillance at Golden Eagle Park where the highest amount
of vandalism occurs.
F150 Pickup for Park Operations Lead $ 17,000
This vehicle will be used by the Four Peaks Park staff who are currently using a loaner from the
Golden Eagle Park.
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DESERT VISTA PARK
FY 2004-2005 FY 2005-2006 FY 2006-2007 FY 2006-2007 FY 2007-2008
Actual Actual Budget Estimate Proposed
CONTRACT SERVICES:
Engineering/Design Fees $0 $0 $0 $0 $0
TOTAL $0$0$0$0$0
REPAIRS & MAINTENANCE:
Equipment Rental $0 $102 $500 $1,200 $2,000
Field Preparation/Maintenance $9,540 $7,663 $9,400 $7,800 $8,950
Mowing/Landscape Maintenance $27,377 $26,660 $31,185 $30,000 $32,245
TOTAL $36,917 $34,425 $41,085 $39,000 $43,195
SUPPLIES & SERVICES:
Advertising $0 $0 $200 $200 $600
Electricity $2,425 $2,777 $5,300 $3,500 $7,500
Tools/Shop Supplies $16 $80 $200 $200 $200
Water/Sewer $605 $788 $740 $900 $4,150
TOTAL $3,046 $3,645 $6,440 $4,800 $12,450
CAPITAL EXPENDITURES
Transfers $0 $0 $520,000 $520,000 $0
TOTAL $0 $0 $520,000 $520,000 $0
TOTAL EXPENDITURES $39,963 $38,069 $567,525 $563,800 $55,645
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FOUNTAIN PARK
FY 2004-2005 FY 2005-2006 FY 2006-2007 FY 2006-2007 FY 2007-2008
Actual Actual Budget Estimate Proposed
SALARIES & BENEFITS:
Overtime $0 $230 $355 $954 $1,000
Wages and Salaries $37,159 $22,188 $37,045 $32,844 $40,200
Employer FICA Expense $486 $325 $560 $476 $610
Unemployment Insurance Expense $84 $111 $60 $191 $70
Employee's Health Insurance $7,357 $4,202 $10,610 $7,152 $8,720
Employee's Life Insurance $115 $120 $150 $110 $130
Employee's Dental Insurance $890 $369 $1,060 $433 $600
Employee Vision Insurance $0 $57 $150 $83 $90
Worker Compensation Insurance $1,934 $1,420 $2,440 $1,687 $2,660
Employee's Retirement Expense $4,087 $2,466 $4,120 $3,718 $4,530
Disability Insurance $171 $152 $190 $120 $210
TOTAL $52,283 $31,639 $56,740 $47,768 $58,820
CONTRACT SERVICES:
Consultant Fees $750 $5,755 $2,000 $6,308 $28,000
TOTAL $750 $5,755 $2,000 $6,308 $28,000
REPAIRS & MAINTENANCE:
Vehicle Maintenance/Repair $1,904 $700 $1,000 $500 $1,000
Equipment Rental $313 $1,633 $1,500 $700 $1,500
Building Repairs/Maintenance $5,889 $20,207 $12,600 $10,000 $23,311
Equipment Repair $9,865 $15,080 $15,000 $18,227 $31,600
Field and Park Maintenance $45,115 $21,527 $41,500 $32,259 $34,500
Mowing/Landscape Maintenance $60,321 $63,006 $76,661 $76,661 $79,267
TOTAL $123,407 $122,154 $148,261 $138,347 $171,178
SUPPLIES & SERVICES:
Advertising/Signage $525 $0 $0 $0 $1,000
Conferences $128 $125 $150 $250 $250
Continuing Education $230 $95 $500 $500 $500
Dues & Publications $70 $320 $400 $200 $300
Electricity Expense $85,515 $94,482 $119,000 $105,500 $109,000
Gas & Oil Expense $1,669 $1,719 $1,900 $700 $1,000
Office Supplies $217 $0 $0 $0 $0
Tools, Shop Supplies $1,341 $590 $1,000 $1,000 $1,000
Printing $4 $153 $300 $0 $300
Communications Expense $299 $219 $250 $700 $900
Water/Sewer $12,392 $17,487 $15,500 $9,600 $10,000
Uniforms $1,118 $704 $1,000 $1,000 $1,000
TOTAL $103,508 $115,894 $140,000 $119,450 $125,250
CAPITAL EXPENDITURES
Capital Outlay - Vehicles $0 $0 $20,500 $21,764 $0
Capital Outlay - Improvements $0 $0 $1,172,968 $50,000 $0
TOTAL $0 $0 $1,193,468 $71,764 $0
TOTAL EXPENDITURES $279,948 $275,442 $1,540,469 $383,637 $383,248
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FOUR PEAKS NEIGHBORHOOD PARK
FY 2004-2005 FY 2005-2006 FY 2006-2007 FY 2006-2007 FY 2007-2008
Actual Actual Budget Estimate Proposed
SALARIES & BENEFITS:
Overtime $0 $885 $336 $197 $250
Wages and Salaries $0 $7,196 $35,164 $35,693 $37,360
Employer FICA Expense $0 $105 $530 $508 $560
Unemployment Insurance Expense $0 $66 $60 $67 $70
Employee's Health Insurance $0 $833 $10,610 $5,723 $5,630
Employee's Life Insurance $0 $11 $150 $133 $120
Employee's Dental Insurance $0 $37 $1,060 $448 $390
Employee Vision Insurance $0 $11 $150 $70 $60
Worker Compensation Insurance $0 $467 $2,320 $1,891 $2,490
Employee's Retirement Expense $0 $889 $3,900 $3,948 $4,140
Disability Insurance $0 $13 $180 $230 $190
TOTAL $0 $10,513 $54,460 $48,908 $51,260
CONTRACT SERVICES:
Professional Fees $0 $0 $45,000 $0 $45,000
Engineering Fees $0 $0 $0 $0 $0
TOTAL $0 $0 $45,000 $0 $45,000
REPAIRS & MAINTENANCE:
Vehicle Maintenance/Repair $1,228 $286 $700 $500 $700
Equipment Rental $53 $219 $1,000 $1,000 $1,800
Building Repairs/Maintenance $17,066 $13,268 $7,800 $7,800 $7,000
Field Preparation/Maintenance $12,875 $18,878 $20,000 $20,000 $21,700
Mowing/Landscape Maintenance $17,826 $18,802 $22,000 $22,000 $22,748
TOTAL $49,048 $51,453 $51,500 $51,300 $53,948
SUPPLIES & SERVICES:
Advertising/Signage $0 $0 $400 $200 $200
Conferences $0 $0 $225 $225 $225
Continuing Education $0 $0 $200 $200 $550
Dues & Publications $0 $0 $250 $250 $250
Electricity Expense $14,393 $12,526 $14,000 $9,500 $10,000
Gas & Oil Expense $1,127 $1,843 $1,400 $1,400 $1,400
Office Supplies $0 $0 $100 $100 $100
Tools, Shop Supplies $793 $1,149 $700 $1,200 $500
Printing $0 $0 $100 $100 $100
Communications Expense $0 $0 $220 $220 $276
Water/Sewer $16,701 $23,379 $18,080 $15,000 $15,000
Uniforms $0 $99 $1,000 $1,000 $1,000
TOTAL $33,014 $38,995 $36,675 $29,395 $29,601
CAPITAL EXPENDITURES
Capital Outlay - Vehicles $0 $0 $9,000 $6,600 $17,000
Capital Outlay - Improvements $0 $92,657 $10,000 $10,000 $0
TOTAL $0 $92,657 $19,000 $16,600 $17,000
TOTAL EXPENDITURES $82,062 $193,619 $206,635 $146,203 $196,809
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GOLDEN EAGLE PARK
FY 2004-2005 FY 2005-2006 FY 2006-2007 FY 2006-2007 FY 2007-2008
Actual Actual Budget Estimate Proposed
SALARIES & BENEFITS:
Overtime $0 $585 $1,001 $825 $1,000
Wages and Salaries $133,429 $154,059 $163,899 $160,150 $232,350
Employer FICA Expense $1,855 $2,166 $2,420 $2,184 $3,430
Unemployment Insurance Expense $300 $271 $240 $269 $560
Employee's Health Insurance $16,584 $20,383 $23,720 $24,290 $39,110
Employee's Life Insurance $411 $560 $680 $574 $770
Employee's Dental Insurance $1,964 $2,301 $2,510 $2,331 $3,000
Employee Vision Insurance $0 $338 $410 $415 $470
Worker Compensation Insurance $5,794 $9,603 $10,830 $8,498 $14,750
Employee's Retirement Expense $14,547 $17,000 $18,140 $18,718 $25,670
Disability Insurance $575 $602 $820 $716 $1,170
TOTAL $175,459 $207,867 $224,670 $218,970 $322,280
CONTRACT SERVICES:$300,000
TOTAL 0 0 0 0 300,000
REPAIRS & MAINTENANCE:
Vehicle Maintenance/Repair $8,699 $5,415 $7,400 $6,000 $5,700
Equipment Rental $1,130 $1,252 $1,500 $3,000 $2,000
Building Repairs/Maintenance $34,616 $28,921 $24,300 $24,300 $35,700
Field Preparation/Maintenance $34,674 $49,895 $41,400 $43,173 $44,500
Mowing/Landscape Maintenance $23,196 $22,196 $28,350 $27,000 $29,314
TOTAL $102,315 $107,679 $102,950 $103,473 $117,214
SUPPLIES & SERVICES:
Advertising/Signage $124 $0 $100 $100 $100
Conferences $384 $560 $1,100 $1,100 $1,100
Continuing Education $1,245 $285 $800 $800 $800
Dues & Publications $360 $480 $400 $400 $400
Electricity Expense $33,451 $34,554 $33,800 $31,000 $33,800
Gas & Oil Expense $6,037 $5,350 $5,200 $5,200 $5,600
Office Supplies $82 $65 $100 $100 $100
Tools, Shop Supplies $2,431 $3,210 $4,700 $4,700 $5,800
Printing $0 $236 $100 $0 $100
Communications Expense $1,259 $1,150 $1,300 $1,100 $1,300
Water/Sewer $7,362 $9,502 $7,680 $8,500 $8,100
Uniforms $2,787 $2,779 $3,416 $3,416 $3,500
TOTAL $55,522 $58,172 $58,696 $56,416 $60,700
CAPITAL EXPENDITURES
Capital Outlay - Vehicles $0 $0 $17,700 $19,089 $23,600
Capital Outlay - Improvements $0 $28,025 $18,000 $18,000 $30,870
TOTAL $0 $28,025 $35,700 $37,089 $54,470
TOTAL EXPENDITURES $333,296 $401,743 $422,016 $415,948 $854,664
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Town of Fountain Hills
Budget Summary by Program
01 - General Fund
095 - Community Center Department
Total Budgeted Expenditures - $867,786
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Community Center
Mission Statement
Like the trademark fountain that stands at the heart of the community, so too does the Fountain Hills
Community Center. Its mission is to enhance the quality of life for Fountain Hills’ residents by providing
a gathering place for civic, non-profit and community events; promoting the arts, and developing a
conference and convention trade. The Community Center is “All that is Fountain Hills”.
Department Description
The Fountain Hills Community Center provides meeting space for recreational, civic, educational,
commercial, and private events that require seminar, banquet, and classroom or exhibit space. Both
Senior Services and SeniorNet are also housed in the Community Center building, office space for each
entity along with numerous activities such as specialty classes; clubs and support groups meet here each
week.
The Center staff works attentively with clients and town staff to ensure that all rooms and public areas are
clean, properly set, and prepared for their use. License agreements ensure that users comply with the
policies and procedures as adopted by the Town.
Goals and Objectives
The Fountain Hills Community Center is dedicated to service the residents of Fountain Hills in the
manner and spirit established by the former Community Center. A variety of amenities and spaces
combined with a very affordable rate structure provide residents with increased opportunities for personal
and local non-profit use. The Center will continue to make community and resident usage a number one
priority.
Additionally, the department will incorporate the following goals and objectives previously established:
Maintain a safe and accessible facility
Satisfy client’s requirements
Maximize facility usage
Bring additional revenues into Fountain Hills
Continue regular building maintenance to prolong the facilities new appearance
The Center will provide an economic stimulus to the Town by scheduling and booking as many
outside groups as possible while continuing to meet the needs of the Fountain Hills Senior
Services, Parks & Recreation, Residents and Community Groups.
Performance Standards
• The Center shall meet with clients, obtain all necessary event information, discuss rental fees and
obtain a signed license agreement within ten working days
• Continue a safe working environment for staff and those who use the facility
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• Clients shall be furnished a detailed scale drawing of their event showing the set
• All events shall be properly supervised with Center personnel readily available to assist with
clients’ needs
• Maintain a clean and organized facility that offers up-to-date audio visual, sound and other
amenities to those who rent the Community Center
• Maintain ADA compliance
• Outstanding billings for events are to be processed in a prompt manner
• Maintain current Arizona State Liquor License for the Center along with continued education and
certification for all staff who are involved with events serving alcohol
• Continue to coordinate activities for the Senior Activity Center, Recreation Division, and Town
related functions and activities
Management Indicators
2003-2004 2004-2005 2005-2006 2006-2007 2007-2008
Actual Actual Actual Projected Projected
Events/Activities 1,800 3,864 3862 3950 4,050
Attendance 76,500 93,000 101,716 104,796 107,000
Revenues $195,000 $187,837 $218,598 $187,000 $197,000
Fiscal year 2006-2007 Accomplishments
• Continue maintenance upgrades to the building to maintain appearance
• Maintained a close working relationship with the Senior Programs, helping to organize their
schedule and determine set requirements
• Purchased additional tables for the art room to accommodate growing class sizes
• Purchased 100 new chairs for the facility, replacing worn out/broken chairs
• Purchased (2) new flat panel LCD monitors and a laptop computer to better serve the audio visual
needs of our clients
• Installed several new pieces of art work both inside and outside of the Community Center
building
• Hired a Receptionist to maintain the front desk, providing essential community information and
to process registrations for the Senior Services Division
• Painted common areas in order to maintain a professional appearance
• Utilized volunteer staff that not only oversees the front desk but also has creates several
community activities: the Holiday Celebration and tree decorating, “Munch and Music”,
“Summer Serendipity”, and entered and placed first in the Chamber of Commerce Thanksgiving
Day Parade
• Created new office space for the Senior Services Supervisor
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Fiscal Year 2007-2008 Objectives
• Continue serving as the location of choice for many service club meetings, civic functions, and
major community social, fundraising, and Chamber events
• The Center is working on making the facility one of the premier wedding destinations in the
valley by exposing the public to a facility through a marketing campaign that includes bridal
exhibitions and trade shows, hosting bridal consultant meetings, and other venues
• Replace flooring in the facility to maintain a professional appearance
Salaries and Benefits $356,286
At the beginning of FY04-05 the Fountain Hills Senior Services relocated to the Community Center. The
senior programs run five days a week and each program requires setting up and taking down of equipment
such as tables, chairs, video and audio equipment, etc. which has increased Community Center staff time
by 33%. The senior programs alone require approximately 8 hours of set up and take down time during
the daytime hours, or approximately 40 hours per week for one person. This is in addition to the set ups
and take downs required for other groups and organizations that rent the facility on a regular basis.
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Professional Fees $ 1,990
Contract services include costs associated with event security; we contract with the Maricopa County
Sheriff’s Office to provide security at Community Center events when liquor is served. Yearly renewal
of Liquor License, ASPCA Music Licensing and Simplex Alarm Company.
Repairs and Maintenance $ 18,470
This category includes the costs for normal repair and maintenance of the facility, equipment rental such
as sound or lighting systems, and normal equipment repair and maintenance. All original warranties have
expired so we are now trying to maintain a regular schedule for all necessary repairs and maintenance.
Supplies and Services $ 99,040
This category includes the Center printing budget, which is used for all brochures, flyers, promotional,
and trade show materials. Also included are office supplies for daily operations, dues and publications,
and conferences. The largest line item in this category is electricity at $47,000 to run the building.
Liquor sales are also a significant part of the overall revenues and supplies costs at $14,000. The Center’s
margins are lower than private commercial centers allowing lower prices to be charged. This is an
advantage in holding major events at the Center. Lastly, also included under the office supply line item,
dollars for the yearly volunteer appreciation party.
Capital Outlay/Debt Service $ 392,000
Included in this division’s budget is the annual debt service payment for the Municipal Property
Corporation bonds that were sold in 2000 to finance the cost of the Community Center. In prior years the
debt payment was made from residual bond proceeds. There is an additional request for $5,000 to
purchasing hearing assistance units for the grand ballroom to enable the hearing impaired to participate in
events.
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149
Town of Fountain Hills
Budget Summary by Program
01 - General Fund
096 - Senior Services
Total Budgeted Expenditures - $223,848
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151
Senior Services
Mission Statement
To help community seniors maintain their independence and improve the quality of their lives by
providing a comprehensive and coordinated community-based system of services and
opportunities. To collaborate with other agencies and organizations who provide and/or support
programs and social services for seniors.
Department Description
Senior Services provides the following major programs: home delivered meals program, fitness
and educational programs, community activities, day and overnight trips, socialization activities
and facilitating other social services including support groups.
Goals & Objectives
Help seniors and the disabled attend trips sponsored by the Senior Activity Center
Help seniors and disabled maintain independence through the Home Delivered Meals Program
by providing hot, nutritious meals
by offering a variety of dietary choices to meet individual health requirements
Help seniors and their caregivers deal with everyday problems
by improving communication with volunteer facilitators which results in increased
attendance and membership
Help new residents and winter visitors establish a network of friends by providing opportunities
for socialization
Help seniors maintain and/or improve their health
by offering exercise and preventive fitness classes
by offering information on nutrition
by offering hearing and blood pressure screenings
by sponsoring an Annual Health Fair
by providing a location for flu shots for the community
Manage revenues and expenditures to keep annual subsidy of programs to a minimum
By monitoring revenues and expenditures on a monthly basis
By following pre-registration guidelines established through the budget process
Performance Standards
Serve all who need the assistance that Senior Services can provide
Obtain financial assistance for all HDM clients who cannot afford the meal cost
152
Management Indicators
2005-06 2006-07 2007-08
Actual Estimated Projected
Club Membership 932 1,100 1,300
Attendance 24,600 29,510 33,000
Non-member Participation Not recorded Not recorded 2,536
Hours of Operation/week 37 45 49
Average drop-ins/calls/day Not recorded Not recorded 68/35
Senior Services Revenue
2005-2006 2006-2007 2007-2008
Actual Estimated Projected
Senior Program Costs $132,138 $257,223 $223,848
Program Revenues $ 65,798 $ 90,000 $ 80,000
The relationship between the program costs and program revenues have been adjusted for FY2007-08 to
ensure that the Senior Center can continue to provide quality programs but also recover some of the costs.
Fiscal Year 2006-07 Accomplishments
Membership continues to grow; it should reach 1,100 by June 30, 2007
Six new support groups have been initiated in 06-07: Renal Disorders, Cardiac, Crohn’s and
Colitus, Caregivers Support, Cancer, Bereavement Support,
A very successful Mardi Gras Community Party/Dance was held in February
Senior Services uses all dedicated space, including the patio for meetings, receptions, and classes.
In addition, space at the library is used for blood pressure checks, medical insurance
consultations, and meetings
Fiscal Year 2007-2008 Objectives
Increase membership to 1,300
Improve transportation services for the elderly and disabled
Acquire space to be used by seniors and the community as a gathering place and equip it
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Summary Expenditures – Seniors Division
Summary Expenditures - Senior Services
FY 2003-2004 FY 2004-2005 FY 2005-2006 FY 2006-2007 FY 2006-2007 FY 2007-2008
Actual Actual Actual Budget Estimate Budget
SALARIES & BENEFITS $0 $0 $74,563 $85,506 $107,318 $97,130
CONTRACTUAL SERVICES $40,000 $55,000 $50,685 $105,695 $133,245 $118,173
REPAIRS & MAINTENANCE $0 $0 $0 $1,000 $1,000 $1,000
SUPPLIES & SERVICES $0 $0 $7,071 $9,670 $10,060 $7,545
CAPITAL EXPENDITURES $0 $0 $0 $2,000 $5,600 $0
TOTAL EXPENDITURES $40,000 $55,000 $132,319 $203,871 $257,223 $223,848
Schedule of Authorized Positions
Salaries and Benefits $97,130
One change in personnel this year is to reclassify the two part-time Co-Supervisor hourly
positions and replace with one full-time Program Supervisor salaried position. This will ensure
daily coverage and better supervision for the Senior Activity Center and senior programs. While
the titles have changed to reflect the existing job descriptions the number of personnel remains
the same.
Contract Services $118,173
The Home Delivered Meals Program is a major part of this category. Due to the fact that the
meal contract with Fountain View Village has not been updated for several years, we anticipate
an increase in the cost of the meals of up to 10 per cent. Accordingly, we have revised the
amount we will charge the clients for each meal. That increase has also been factored into grant
applications to Area Agency on Aging, Region I and Valley of the Sun United Way. Also
included is a variety of trips, theater excursions, classes and activities.
Position – Title 2002-2003 2003-2004 2004-2005 2005-2006 2006-2007 2007-2008
Authorized Authorized Authorized Authorized Authorized Proposed
FTE FTE FTE FTE FTE FTE
Senior Services
Senior Services Supervisor 0.00 0.00 0.00 0.00 1.00 1.00
Administrative Assistant 0.00 0.00 0.00 0.00 0.00 0.50
HDM/Special Programs Admin 0.00 0.00 0.00 0.00 0.50 0.00
HDM Coordinator 0.00 0.00 0.00 0.00 0.50 0.00
Receptionist 0.00 0.00 0.00 0.00 0.00 0.50
Recreation Aide 0.00 0.00 0.00 0.00 0.00 1.50
Senior Aide 0.00 0.00 0.00 0.00 1.50 0.00
Authorized FTE 0.00 0.00 0.00 0.00 3.50 3.50
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Repairs and Maintenance $1,000
A possible maintenance contract on a copier ($600); costs associated with repair on our DME
wheelchairs ($125); maintenance pack for Xerox printer ($275)
Supplies and Services $7,545
Advertising costs for the Health Fair, dances and Senior Expo events at $100, Office supplies
such as two wastebaskets ($40), printer cartridges, filing supplies, pens, staplers, colored copy
paper for flyers, printing costs for two program booklets, flyers for dances, Health Fair and
Expos.
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SENIOR SERVICES
FY 2004-2005 FY 2005-2006 FY 2006-2007 FY 2006-2007 FY 2007-2008
Actual Actual Budget Estimate Proposed
SALARIES & BENEFITS:
Overtime 0
Wages and Salaries $0 $68,495 $78,666 $98,604 $76,470
Employer FICA Expense $0 $5,240 $6,090 $7,594 $5,900
Unemployment Insurance Expense $0 $514 $350 $331 $440
Employee's Health Insurance $0 $0 $0 $0 $8,720
Employee's Life Insurance $0 $0 $0 $0 $130
Employee's Dental Insurance $0 $0 $0 $0 $600
Employee Vision Insurance $0 $0 $0 $0 $70
Worker Compensation Insurance $0 $313 $400 $789 $390
Employee's Retirement Expense $0 $0 $0 $0 $4,220
Disability Insurance $0 $0 $0 $0 $190
TOTAL $0 $74,563 $85,506 $107,318 $97,130
CONTRACT SERVICES:
Professional Fees $0 $84 $0 $8,800 $0
Program Fees $55,000 $50,601 $105,695 $124,445 $118,173
TOTAL $55,000 $50,685 $105,695 $133,245 $118,173
REPAIRS & MAINTENANCE:
Equipment Repair 0 0 1,000 1,000 1,000
TOTAL $0 $0 $1,000 $1,000 $1,000
SUPPLIES & SERVICES:
Advertising/Signage $0 $1,733 $1,000 $1,000 $700
Conferences $0 $0 $850 $1,000 $1,000
Continuing Education $0 $0 $550 $550 $200
Dues & Publications $0 $174 $250 $250 $175
Office Supplies $0 $4,584 $5,300 $5,300 $4,000
Printing $0 $467 $1,220 $1,220 $1,220
Communications Expense $0 $0 $0 $240 $0
Meeting Expense $0 $113 $500 $500 $250
TOTAL $0 $7,071 $9,670 $10,060 $7,545
CAPITAL EXPENDITURES
Capital Outlay 0 0 2,000 5,600 0
TOTAL $0 $0 $2,000 $5,600 $0
TOTAL EXPENDITURES $55,000 $132,319 $203,871 $257,223 $223,848
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157
Town of Fountain Hills
Budget Summary by Program
01 - General Fund
090 - Law Enforcement Department
Total Budgeted Expenditures - $2,790,900
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Law Enforcement Department
Mission Statement
The Maricopa County Sheriff's Office, in partnership with our citizens and contract cities, will enforce
state laws, deter criminal activity, protect life and property, maintain order, and operate a safe,
constitutional jail system.
Through innovative leadership and dedication to providing quality services, the Sheriff's Office will
maximize the use of its resources to provide the highest quality service, which will aid in improving the
quality of life for the citizens of Maricopa County.
The Office is also dedicated to providing a caring and supportive environment for our employees because
they are the backbone of the system and have a need for continued growth and development through
education and training. Each employee will have opportunities for career development, professional
growth, and a challenging work environment.
Employee creativity and innovations are encouraged for improving the effectiveness of the Office.
Employees will be provided the same concern, respect, and caring attitude within the Office, that they are
expected to share when contacting the citizens of Maricopa County
Department Description
Law enforcement services are provided to our residents through contract services from the Maricopa
County Sheriff’s Office (MCSO). The Sheriff’s Office enforces State and local laws as well as
addressing “quality of life” issues, such as crime prevention, traffic safety, drug enforcement, sponsoring
youth activities and special events, addressing barking dogs, and promoting community involvement.
Performance Standards
• All Sheriff’s Office members will support the principles of community based policing
• The public will be treated with courtesy and respect by all members of the Sheriff’s Office
• Members of the Sheriff’s Office will not engage in racial profiling
• All sworn personnel will meet, or exceed, state training standards (AZ-POST) as a means of reducing
liability
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Management Indicators
2004 2005 2006
Actual Actual Actual
Crimes Part I* 594 605 554
Crimes Part II** 618 549 638
Traffic accidents 347 331 364
Driving under the influence (DUI) 63 32 81
*Part I Crimes – Homicide, Sex Assault, Robbery, Aggravated Assault, Residential/Business Burglaries, Auto Burglaries, Auto
Theft, Arson.
**Part II Crimes – All other crimes, except Part I crimes and traffic violations.
Fiscal Year 2006-2007 Accomplishments
In the first nine months of the fiscal year, the Maricopa County Sheriff’s Office accomplished the
following:
• Continued youth services activity in conjunction with the Boys and Girls Club of
Fountain Hills with the award of another grant for Friday Night Live.
• Added Deputy positions to cover the State Trust Land on the north edge of Town
• Decreased the number of Part I Crimes by 10% through effective patrolling and
investigative techniques
• Promoted crime prevention through a variety of community programs including public
service articles on crime resistance techniques and vacation watches
• Continued to sponsor and present a variety of youth services activities including Teen
Court, Party in the Park and Midnight Madness
Fiscal Year 2007-2008 Objectives
• Continue to decrease the number of juvenile crimes by increasing the number of juveniles
contacted and identified for trespassing, criminal damage, and curfew violations through
the VENT program (Vandalism Elimination Now and Tomorrow)
• Continue to decrease the number of Part I Crimes through the effective implementation
of the VENT Program
• Continue to promote effective communication between the Town and Sheriff’s Office in
addressing issues that need a cooperative answer
• Increase traffic enforcement and awareness with higher visibility during peak traffic
times to reduce traffic accidents and speeding complaints
• Promote public visibility, accessibility, and community relations through clearly marked
cars and involvement of uniformed personnel Town functions
• Increase patrols in Town parks with the assistance of volunteer Posse
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Summary Expenditures – Law Enforcement
FY 2003-2004 FY 2004-2005 FY 2005-2006 FY 2006-2007 FY 2006-2007 FY 2007-2008
Actual Actual Actual Budget Estimate Budget
SALARIES & BENEFITS $0 $0 $0 $0 $0 $0
CONTRACTUAL SERVICES $1,669,726 $1,792,782 $1,907,015 $2,219,421 $2,255,220 $2,790,900
REPAIRS & MAINTENANCE $287 $0 $0 $0 $0 $0
SUPPLIES & SERVICES $1,282 $0 $0 $0 $0 $0
CAPITAL EXPENDITURES $0 $0 $0 $0 $0 $0
TOTAL EXPENDITURES $1,671,296 $1,792,782 $1,907,015 $2,219,421 $2,255,220 $2,790,900
Contract Services $2,790,900
The Town of Fountain Hills contracts with the Maricopa County Sheriff’s Office for law enforcement
services. The contract amount is $2,704,200. There are two major reasons for the increase. The first
increase is in the category of personnel related costs for the Maricopa County Sheriff’s Office deputies
(27%); there was a market adjustment to rank that was effective December, 2006 and an overall increase
in benefits costs. However, this cost was not passed on to contract cities and towns until the new
contracts. Additionally, a full-time clerical position has been added which will provide customer service
even when all officers are out on the road. The second increase was in the communications category.
This is due to the new methodology adopted by Maricopa County that allocates communication costs
based on the proportionate number of dispatch calls, based on the actual number of calls received. The
contract provides for 3.8 beats and provides for a school resource officer requested by the Fountain Hills
School District.
In a separate agreement with Maricopa County Office of Management and Budget, prisoners are
transported to the Maricopa County jail and the Town is charged a per diem fee, estimated at $58,500
annually. There is an estimated increase due to new legislation that may require more jail time for
Driving Under the Influence (DUI) related offenses.
The Town also contracts with Maricopa County Animal Care and Control Services for animal control and
shelter services in the amount of $28,200.
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LAW ENFORCEMENT
FY 2004-2005 FY 2005-2006 FY 2006-2007 FY 2006-2007 FY 2007-2008
Actual Actual Budget Estimate Proposed
SALARIES & BENEFITS:
TOTAL $0$0$0$0$0
CONTRACT SERVICES
Jail/Prisoner Fees $32,531 $47,884 $45,000 $45,000 $58,500
Rabies/Animal Control $29,781 $24,087 $32,000 $27,800 $28,200
Sheriff's Contract $1,730,470 $1,835,044 $2,142,421 $2,182,420 $2,704,200
TOTAL $1,792,782 $1,907,015 $2,219,421 $2,255,220 $2,790,900
REPAIRS & MAINTENANCE:
TOTAL $0$0$0$0$0
SUPPLIES & SERVICES:
TOTAL $0$0$0$0$0
CAPITAL EXPENDITURES
TOTAL CAPITAL EXPENDITURES $0 $0 $0 $0 $0
TOTAL EXPENDITURES $1,792,782 $1,907,015 $2,219,421 $2,255,220 $2,790,900
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Town of Fountain Hills
Budget Summary by Program
01 - General Fund
092 - Fire Department Department
Total Budgeted Expenditures - $3,059,326
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Fire Department
Mission Statement
The mission of the Fire Department is to preserve life and property through fire prevention, education,
suppression and emergency medical services, while maintaining the highest level of training,
professionalism and dedication to customer service.
Department Description
Fire fighting and emergency medical services are provided to the residents through a unique combination
of municipally owned equipment and facilities operated by contract personnel from the Rural Metro
Corporation.
The Fire Department is responsible for prevention and suppression of structural and wild land fires within
the town limits. The Fire Department also provides inspections, emergency medical services, emergency
transport, hazardous material handling, and takes the lead role in emergency response to natural disasters.
In conjunction with its primary role, the Fire Department provides a wide range of auxiliary community
services such as public education, snake removal, and a youth-oriented explorer post.
Performance Standards
• Response time of 5 to 8 minutes or less (per contract response areas) to the scene of fire and
medical calls at least 90% of the time.
• Provide a minimum of 240 hours of training to each individual assigned to Fountain Hills per
year.
• Inspect and test all fire hydrants in Fountain Hills on an annual basis.
• Inspect 100% of Target Hazards (40 Commercial and Industrial) Occupancies.
• Inspect 95% of Safety Surveys (210 Commercial and Assembly) Occupancies.
Management Indicators
2004-2005 2005-2006 2006-2007 2007-2008
Actual Actual Actual Projected
Emergency response time 3min 30sec 3min 37 sec 3min 49sec 4min
EMS response time 3min 35sec 3min 33 sec 3min.44 sec 4min
Percentage of EMS calls 54% 53% 56% 58%
Emergency calls 1,470 1,553 1,634 1,715
Non-emergency service calls 1,290 1,191 1,223 1,247
Construction inspections/safety surveys 1,530 1,858 2,532 2,300
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Fiscal Year 2006-2007 Accomplishments
• Conducted Town (to include local community) tabletop exercise to test operations plan.
• Moved Ladder & Ladder Tender from Station 2, to Station 1. Improves ISO grading and saves fuel,
wear and tear/maintenance on all front line vehicles.
• Implemented a new records management program/system for the Fire Marshal’s office.
• A.E.D.’s purchased and installed. All Town employees certified in CPR/AED.
• Up-graded PASS alarms on all Self Contained Breathing Apparatus…$12,000 project at no cost to
the Town.
• Submitted a Federal Firefighters grant to up-grade mobile and portable radio equipment…. on-going.
$65,000 requested.
• Submitted Governors Highway grant for extrication/stabilization equipment…$8,000 awarded
• Submitted Proposition 202 Grant for 3-life pack 12 Cardiac Defibulator/Heart Monitors… $75,000
under review.
• Completed Station response time study. Saved $5,000 in potential software purchase, through
partnership with the Cities of Phoenix and Scottsdale.
• Completed Station 1 kitchen remodel.
• Completed Station 1 exterior painting and re-roofing.
• Completed Station 1 parking lot; interior painting; floor covering; men’s shower and bathroom
remodel.
• Maintain or improve upon a 4-minute response time for all emergency calls.
• Continued building the relationship with Maricopa County Sheriff’s Office District in Fountain Hills.
Fiscal Year 2006-2007 Objectives
• Prepare engineering and design work for re-location of Station 2.
• RFQ, award contract, and build new replacement fire pumper.
• Submit for Federal Firefighters grant for mobile and portable radios for station 1.
• Insurance Serves Organization (ISO) re-grade project…from a Grade 4 to a Grade 2.
• Continue to up-grade record management systems.
• Review/study fire marshal operations foe efficiency enhancements.
167
Summary Expenditures – Fire Department
FY 2003-2004 FY 2004-2005 FY 2005-2006 FY 2006-2007 FY 2006-2007 FY 2007-2008
Actual Actual Actual Budget Estimate Budget
SALARIES & BENEFITS $0 $0 $0 $0 $0 $0
CONTRACTUAL SERVICES $2,283,480 $2,395,128 $2,607,692 $2,754,287 $2,754,287 $2,974,126
REPAIRS & MAINTENANCE $34,022 $27,798 $58,622 $38,000 $40,000 $36,500
SUPPLIES & SERVICES $24,910 $48,255 $46,074 $48,190 $48,190 $35,200
CAPITAL EXPENDITURES $0 $0 $0 $6,000 $6,000 $13,500
TOTAL EXPENDITURES $2,342,412 $2,471,181 $2,712,388 $2,846,477 $2,848,477 $3,059,326
Contract Services $2,974,126
The majority of contractual services for this department include the contract for the Town’s fire protection
and emergency services contract with Rural/Metro Corporation at $2,844,126. The Town contracts for
dispatch, fleet service, and personnel only; all equipment and fire stations are owned by the Town. At the end
of this fiscal year the Town will have completed three (3) years of the five (5) year contract. Also included is
an expenditure of $85,000 for conceptual design and site engineering for proposed re-location of Station 2.
Repairs and Maintenance $36,500
This category of expenses relates to the department’s fleet of fire equipment for field operations as well as
maintenance and repair safety and office equipment. Fleet expenses include tires, brakes, batteries, and
vehicle parts essential to keep equipment in operating order. The estimates are based on a three year cost
trend for repair and maintenance of the fleet ($38,000): reducing the fleet seize by one vehicle (from 8
to7) and making an assumption that the front line trucks are at the mid-point of service life, Also, one
complete tire change for all vehicles is anticipated.
Supplies and Services $35,200
Expenses in this category pertain to daily operations of the department and range from fuel costs to fire
fighting tools, office supplies, specialized training, printing, and publications. Items in this category are
outside of the parameters of the Rural/Metro contract and represent expenses specifically for Fountain
Hills. Gas is the largest line item within this category at $ 21.000, followed by firefighting equipment
which the Town will purchase to replace 10+-year-old fire equipment (radio’s, nozzle, hose, saws, etc.)
for $15,000.
Capital Expenditures $13,500
These funds are to be used as matching funds for a grant for portable radios.
168
FIRE DEPARTMENT
FY 2004-2005 FY 2005-2006 FY 2006-2007 FY 2006-2007 FY 2007-2008
Actual Actual Budget Estimate Proposed
CONTRACT SERVICES
Professional Fees $0 $0 $2,500 $2,500 $85,000
Intergovernmental Agreements $0 $5,000 $5,000 $5,000 $5,000
Rural Metro Contract $2,395,128 $2,602,692 $2,746,787 $2,746,787 $2,884,126
TOTAL $2,395,128 $2,607,692 $2,754,287 $2,754,287 $2,974,126
REPAIRS & MAINTENANCE:
Vehicle Repairs & Maintenance $27,798 $58,622 $38,000 $40,000 $36,500
TOTAL $27,798 $58,622 $38,000 $40,000 $36,500
SUPPLIES & SERVICES:
Conferences $0 $605 $500 $500 $500
Dues & Publications $626 $941 $1,135 $1,135 $1,200
Gas & Oil Expense $28,611 $28,956 $26,255 $26,255 $21,000
Office Supplies $7,842 $860 $1,500 $1,500 $4,500
Fire Fighting Equipment $10,685 $14,589 $18,300 $18,300 $7,500
Printing $491 $123 $500 $500 $500
TOTAL $48,255 $46,074 $48,190 $48,190 $35,200
CAPITAL EXPENDITURES
Capital Outlay-Commun. $0 $0 $6,000 $6,000 $13,500
TOTAL CAPITAL EXPENDITURES $0 $0 $6,000 $6,000 $13,500
TOTAL EXPENDITURES $2,471,181 $2,712,388 $2,846,477 $2,848,477 $3,059,326
169
Town of Fountain Hills
Budget Summary by Program
02 - Highway Users Fund
071 - Streets and Highways Department
Total Budgeted Expenditures - $2,489,285
170
171
Highway User Revenue Fund
Percent
Restrictions Fiscal Year Amount Change
1996-97 $1,017,600 24.3%
1997-98 $996,805 -2.0%
1998-99 $1,082,173 8.6%
1999-00 $1,136,051 5.0%
2000-01 $1,171,463 3.1%
2001-02 $1,369,677 16.9%
2002-03 $1,426,688 4.2%
2003-04 $1,515,787 6.2%
2004-05 $1,584,706 4.5%
2005-06 $1,574,453 -0.6%
2006-07 (est.) $1,777,020 12.9%
2007-08 (est.) $1,853,880 4.3%
Accounts: 3040, 3050
Assumptions
Cities and towns receive 27.5% of fuel tax and transportation related fees collected by the state based on population
and county of origin of gasoline sales. The increases in HURF allocations in FY 1997 and 2002 were the result of
the 1995 and 2000 census population growth. The estimate for FY2008 is based on the Arizona Department of
Transportation distribution forecast as published at www.dot.az.us/Inside. The Local Transportation Assistance
Fund (LTAF) comes from lottery proceeds and is distributed to cities and towns based on population as a percentage
of all incorporated cities and towns.
Major Influences: Gasoline sales, Population, Economy and State Policy
There is a State constitutional restriction on the use of these
funds which requires that these funds be used solely for street
and highway purposes. Payment of principal and interest on
highway and street bonds are an approved use.
$0
$200,000
$400,000
$600,000
$800,000
$1,000,000
$1,200,000
$1,400,000
$1,600,000
$1,800,000
$2,000,000
HIGHWAY USER (HURF) REVENUE
Fiscal years 1999 through 2008
172
Street Department
Mission Statement:
The Street Division is dedicated to quality customer service by operating, preserving and maintaining
Town-owned roadways and traffic control systems safely and efficiently.
Division Description:
The HURF (Highway User Revenue Fund) pays for Street Division personnel and contract work for street
repairs, operations, maintenance and improvements. Major Street Division staff responsibilities include
crack sealing, asphalt patching, signing, traffic signals, brush removal, storm debris clean up, street
sweeping, and street related emergency responses. The Division provides vehicle maintenance services
for the entire Town fleet, and traffic barricading for Town approved and sponsored special events.
Contracted tasks include construction and renovation of streets, sidewalks, drainage facilities and traffic
signals. Contracted major street maintenance items include concrete curb replacement, asphalt
reconstruction, asphalt overlays, slurry seal and emulsion seal.
Performance Standards:
• Gutter sweep all streets quarterly, with full width sweeping annually. Gutter sweep all arterial
streets and commercial area collector streets monthly. Under the requirements of the Storm
Water Management Plan, street sweeping occurs on a daily basis.
• Respond to citizen inquiries within one working day.
• Respond to pothole complaints within 24-hours of notification.
• Respond to missing or damaged stop-sign complaints immediately, upon notification.
• Respond to missing or damaged street signage within 24-hours of notification.
• Perform routine maintenance of all Town fleet vehicles to minimize major repair “down-time”.
Management Indicators
2005-06
Actual
2006-07
Estimated
2007-08
Projected
Slurry Seal 0 miles 27.2 miles 30 miles
Microsurfacing 0 miles 2.9 miles 5 miles
Emulsion Seal Applications 0 miles 0 miles 0 miles
Striping Applied 30.5 miles 23.8 miles 22 miles
Traffic Signal LED Retrofits 2 2 signals 2 signals
ADA Intersection retrofits 4 2 locations 0
Complete Construction Projects 4 projects 3 projects 4 projects
173
Fiscal Year 2006-2007 Accomplishments:
Major projects and accomplishments included:
• Reconstructed the median on Saguaro Boulevard and the old Stewart Vista alignment.
• Received a grant for a new PM-10 compliant street sweeper.
• Constructed new right turn lane on Palisades Boulevard at Vista Drive (Westridge Village).
• Constructed new deceleration lane on Fountain Hills Boulevard at Sullivan Drive.
• Constructed an emergency crossover on Shea Boulevard.
• Installed approximately 240 tons of erosion control at various wash crossings.
• Installed solar powered pedestrian crossing flasher on Saguaro Boulevard at Avenue of the Fountains.
• Started town wide replacement of all street name signs and support poles.
• Implemented Stormwater Management Plan requirement by hydro-vacuuming 235 stormwater catch
basins.
• Completed LED retrofit for two traffic signals for cost savings, increased reliability and improved
visibility.
• Barricading and street closures for all special events (600 man-hours total for 4 special events).
• Crack sealing in the central quadrants of town (approximately 15 miles of streets).
• Street patching in town-wide areas – over 200 tons of asphalt.
• Performed 575 man-hours on special projects (major projects include drainage pipe repair at El
Lago/Saguaro Boulevard intersection, cleared street drainage inlets, alley clean-up of debris and
brush, erosion control at the overlook on Shea Boulevard, install new banners on the Avenue of the
Fountains).
Fiscal Year 2007-08 Objectives:
• Convert one-third of street name signs to larger, higher visibility signs.
• Construct traffic signal at the Palisades/Sunridge Drive intersection.
• Prepare streets in the central area of town for pavement maintenance activities.
• Reconstruct drainage system on Saguaro Boulevard in preparation for overlay.
• Replace existing 1997 Ford crew cab truck with a 2007 Ford F-450 crew cab.
• Increase hours spent on curb replacement to minimize town liability.
• Retrofit two traffic signals to LED signal heads for cost savings, increased reliability, and improved
visibility.
• Purchase a new PM-10 sweeper with grant money received.
• Implement Storm Water Management Plan requirements by increased street sweeping to minimize
road debris runoff.
• Install a self-contained wash bay/decant station for all equipment.
174
Fund Summary - Streets
Authorized Personnel
Salaries and Benefits $585,392
The Street Division currently has 10 full-time regular employees including the street
superintendent, mechanic, and technicians. The Assistant Public Works Director position has
been difficult to fill and with the hiring of another civil engineer, the workload has been
absorbed.
FY 2004-2005 FY 2005-2006 FY 2006-2007 FY 2006-2007 FY 2007-2008
Actual Actual Budget Estimate Proposed
REVENUE:
LTAF $113,674 111,638 110,785 110,785 114,716
Highway User $1,471,032 1,574,453 1,614,855 1,704,000 1,736,917
Charges for Svcs/In Lieu Pmts $26,359 12,802 8,000 30,000 8,000
Interest $10,493 24,009 7,000 56,000 40,000
Misc. Income $31,680 4,079 1,000 1,000 1,000
Transfer from General Fund 0 519,869 0 0 0
TOTAL CURRENT REVENUE $1,653,237 $2,246,850 $1,741,640 $1,901,785 $1,900,633
EXPENDITURES:
Salaries and Benefits 485,056 589,071 685,646 685,646 585,392
Contractual Services 20,319 15,946 24,250 33,650 26,465
Repairs and Maintenance 628,060 599,505 1,648,724 1,233,255 1,477,328
Supplies and Services 200,625 197,685 206,195 204,150 199,800
Capital Outlay 105,164 36,597 80,000 79,844 74,000
Debt Retirement 120,500 133,808 135,000 135,000 126,300
TOTAL CURRENT EXPENDITURES $1,559,724 $1,572,612 $2,779,815 $2,371,545 $2,489,285
EXCESS OF REVENUES OVER/
(UNDER) EXPENDITURES 93,513 674,238 (1,038,175) (469,760) (588,652)
Fund Balance Beginning of Year $331,561 $427,218 $1,108,324 $1,101,456 $633,145
Ending Fund Balance $425,075 $1,101,456 $70,149 $633,145 $44,493
Assistant Public Works Director 0.00 0.00 0.00 1.00 1.00 0.00
Street Superintendent 1.00 1.00 1.00 1.00 1.00 1.00
Street Maintenance Supervisor 0.00 1.00 1.00 0.00 0.00 0.00
Fleet Mechanic 1.00 1.00 1.00 1.00 1.00 1.00
Fleet Equipment Mechanic 1.00 1.00 0.00 0.00 0.00 0.00
Street Maintenance Tech 11.00 9.00 8.00 8.00 8.00 8.00
Authorized FTE 14.00 13.00 11.00 11.00 11.00 10.00
175
Contract Services $26,465
Accounting (auditor) and Town Attorney legal fees are annually prorated to the Street Fund.
Repairs and Maintenance $1,477,328
Street maintenance activities must continue to occur since asphalt conditions are nearing the end of their
life expectancy. A routine pavement maintenance program is essential to identify streets requiring minor
and major repairs. Continued preventative maintenance activities, which prolong pavement life
expectancy, reduce the necessity for costly road reconstruction projects. Over 50% of the streets in
Fountain Hills are over twenty years old, which is the normal life expectancy of asphalt without regular
maintenance. Maintenance operations over the past 17 years have proved to be an effective investment,
as very few roads are failing and require complete reconstruction.
Arterial roadways, such as Palisades, Fountain Hills, Saguaro and Shea make up 12% of the total network
system. These road sections should receive priorities and added maintenance activities when considering
street maintenance. These arterials carry the largest amount of traffic on a daily basis (approximately
65,000 vehicles per day, combined) and, therefore, deteriorate the fastest. Major road construction costs
on these arterials are expensive and have the largest impact on the traveling public during construction.
The condition of a town’s arterial streets is often seen as indicative of the overall condition of the town. In
addition, properly maintained streets help reduce liability for the Town.
Data for the Town-wide street maintenance study has been gathered. Staff continuously performs quality
assurance checks on the data collected and works to update the data set to reflect actual current
conditions. Continued funding and major maintenance activities is vital to keep the Town’s streets in
acceptable condition and to keep major road reconstruction projects to a minimum.
Major items in Repairs and Maintenance include $36,341 for Vehicle Repairs and Maintenance. The
department maintains the maintenance vehicles as well as heavy-duty road equipment such as tractors,
backhoes, dump trucks and sweepers. A total of $241,645 is budgeted under Road Repair and
Maintenance. The Department is planning on retrofitting existing traffic signals Light Emitting Diode
(LED) signal heads and regularly maintains twelve traffic signals and two school flasher locations. The
signal retrofit will enhance safety, reduce electricity consumption, and increase reliability. Two such
retrofits are planned for this fiscal year. A Town street sign conversion program will be implemented.
The program will convert street name signs to a larger size and a more reflective material for better
visibility. The Town is mandated to complete this conversion by 2011. A contract in the amount of
$79,750 to paint house numbers on the curbs is proposed—11,000 residences at $7.25 each.
Under the Major Road Improvements line item, $932,671 has been budgeted for slurry seal, which will be
applied primarily in the southeast area of Town. A total of $89,700 is budgeted for the Microsurfacing
which is planned for the downtown streets. See street maintenance map for exact locations.
Thermoplastic striping will be applied to all streets being re-surfaced and used to refresh existing striping
at a cost of $25,250.
176
Supplies and Services $199,800
Major items include $25,000 for electricity and $35,000 gas and oil expenses. This item also includes
advertising, education and training, dues and publications, office supplies and printing, tool and shop
supplies.
Capital Outlay $200,300
Capital items proposed for this budget year include the purchase of a 2007 Ford F450 crew cab that will
replace a 1997 vehicle that will be retired according to the Town’s vehicle replacement policy. The
vehicle will be equipped with a sign pole pulling device – total cost $54,000. The Town has been
awarded a grant from Maricopa Association of Governments for an additional street sweeper, requiring a
$20,000 matching fee which is included in the capital outlay.
Transfers include the annual debt service payment for road paving bonds that were issued in 1991 of
$126,300. These bonds will be retired in FY09-10.
177
178
STREET DEPARTMENT
FY 2004-2005 FY 2005-2006 FY 2006-2007 FY 2006-2007 FY 2007-2008
Actual Actual Budget Estimate Proposed
SALARIES & BENEFITS:
Overtime $0 $7,573 $7,401 $7,401 $6,530
Wages and Salaries $352,228 $412,533 $477,844 $477,844 $405,964
Employer FICA Expense $5,174 $6,037 $7,000 $7,000 $6,040
Unemployment Insurance Expense $783 $754 $655 $655 $700
Employee's Health Insurance $48,383 $62,175 $77,212 $77,212 $61,904
Employee's Life Insurance $1,107 $1,578 $1,981 $1,981 $1,282
Employee's Dental Insurance $5,108 $6,120 $7,056 $7,056 $4,412
Employee Vision Insurance $0 $754 $960 $960 $723
Worker Compensation Insurance $30,106 $41,998 $49,771 $49,771 $50,391
Employee's Retirement Expense $40,410 $47,342 $53,377 $53,377 $45,374
Disability Insurance $1,757 $2,208 $2,389 $2,389 $2,071
TOTAL $485,056 $589,071 $685,646 $685,646 $585,392
CONTRACT SERVICES
Accounting Fees $3,500 $5,375 $4,500 $4,500 $8,465
Professional Fees $7,569 $1,321 $10,500 $19,900 $0
Legal Fees $9,250 $9,250 $9,250 $9,250 $18,000
TOTAL $20,319 $15,946 $24,250 $33,650 $26,465
REPAIRS & MAINTENANCE:
Vehicle Repairs & Maintenance $31,119 $45,232 $36,330 $36,330 $36,341
Road Repair & Maintenance $136,783 $160,694 $194,231 $199,870 $243,645
Equipment Rental $20 $0 $500 $0 $500
Building Repairs & Maintenance $1,616 $6,199 $7,000 $6,000 $3,000
Office Equipment Repairs & Maintenance $16 $0 $500 $500 $500
Major Road Improvements $458,506 $387,380 $1,410,163 $990,555 $1,193,342
TOTAL $628,060 $599,505 $1,648,724 $1,233,255 $1,477,328
SUPPLIES & SERVICES:
Advertising $29 $99 $250 $500 $250
Conferences $0 $3,505 $3,975 $2,000 $2,000
Education/Training $820 $3,375 $3,030 $2,300 $2,950
Dues & Publications $3,853 $4,295 $5,550 $6,000 $5,150
Electricity $25,750 $21,666 $30,000 $22,000 $25,000
Gas & Oil $24,395 $27,125 $29,300 $35,000 $35,000
Liability Insurance $98,301 $111,870 $108,700 $108,700 $103,125
Office Supplies $1,485 $595 $1,320 $1,320 $1,820
Tools, Shop Supplies $29,726 $6,819 $4,800 $4,800 $5,050
Printing $82 $390 $200 $240 $240
Communication Expense $4,340 $5,029 $5,450 $5,680 $5,680
Water/Sewer $2,802 $4,561 $3,680 $5,940 $5,435
Travel $0 $69 $290 $20 $100
Uniforms $9,042 $8,288 $9,650 $9,650 $8,000
TOTAL $200,625 $197,685 $206,195 $204,150 $199,800
CAPITAL EXPENDITURES
Capital Outlay - Vehicles $105,164 $36,597 $30,000 $29,844 $74,000
Capital Outlay - Furniture & Equipment $0 $0 $0 $0 $0
Capital Outlay - Software $0 $0 $0 $0 $0
Capital Outlay - Improvements $0 $0 $50,000 $50,000 $0
Transfers $120,500 $133,808 $135,000 $135,000 $126,300
TOTAL CAPITAL EXPENDITURES $225,664 $170,405 $215,000 $214,844 $200,300
179
Special Revenue Funds
Special Revenue Funds include those resources and expenditures that are restricted as to their purpose; these
funds are not available for any expenditures that are not specifically stipulated in either statute or contract.
The table below lists those funds that are dedicated as special revenues, their source of revenue, purpose and
estimated expenditures for FY2007-08:
Fund
No.
Fund Name Revenue
Source
Eligible Expenditures
FY07-08
Budget
02 Highway User Revenue Fund (HURF) Gasoline tax Town road
maintenance
$2,489,285
07 Court Enhancement Fund Court Fines Court improvements $28,000
08 Community Center FF&E Fund Balance Community Center $75,000
08 Special Revenue – Fire Department Grant Mobile
communications
equipment
$60,000
08 Special Revenue - Streets Lottery Funds Shuttle for Seniors
medical
appointments
$90,000
08 Special Revenue - Streets MAG Street Sweeper $200,000
08 Special Revenue Miscellaneous Grants Stipulated by funding
source
$1,500,000
09 Downtown Development .1% sales tax Downtown
development
$219,730
A brief summary for the Highway User Revenue Fund and Downtown Development follow the chart below:
SPECIAL REVENUE FUND FY 2004-2005 FY 2005-2006 FY 2006-2007 FY 2006-2007 FY 2007-2008
Actual Actual Budget Estimate Proposed
REVENUE:
FEMA 0 50,000 0 0 60,000
Proposition 202 55,000 0 0 260,000 0
LTAF Revenue 53,006 68,125 0 72,305 67,500
Miscellaneous Grant Revenue 0 1,437,000 1,500,000 0 1,500,000
ADOT 0 175,000 0 0 180,000
Transfer from Other Funds 22,500 42,500
TOTAL CURRENT REVENUE $108,006 $1,730,125 $1,500,000 $354,805 $1,850,000
FEMA 0 50,000 0 0 60,000
Proposition 202 64,692 0 0 260,000 0
LTAF-RPTA 53,006 68,125 0 94,805 90,000
Undesignated Grant Expenditure 0 1,437,000 1,500,000 0 1,500,000
ADOT - Street Sweeper 0 175,000 200,000
TOTAL EXPENDITURES & TRANSFER $117,698 $1,730,125 $1,500,000 $354,805 $1,850,000
180
Special Revenue Fund – Community Center – Furniture, Fixtures & Equipment (FF&E)
When the Community Center was built in 2004, the Fountain Hills Civic Association collected donations
from residents to supplement the furniture, fixtures and equipment budget of the new building. These
funds have been set aside to be used for costs associated with improvements to the Community Center
and will have an estimated balance of $97,650 on June 30, 2007. With the successful use of the building,
the carpeting has deteriorated due to wear and tear. This budget includes funds to begin to update the
flooring over the next two years - $75,000 has been included for FY2007-08.
Excise (Sales )Tax – Special Revenue – Municipal Property Corporation Debt Service
In November, 2000, the Town Council authorized Ordinance 00-12 dedicating a portion of local sales tax
collected (excise tax) to downtown development, repayment for mountain and Civic Center bonds through
the Town’s Municipal Property Corporation (MPC). The MPC issued bonds to purchase the mountain
preserve land, the Community Center and the Town Hall; the MPC leases the property to the Town for an
amount equal to the annual debt service payment. When the bonds are retired, the assets will be transferred
over to the Town. The Community Center bonds are repaid by a transfer from the General Fund. The
mountain and Town Hall bonds are repaid through excise tax revenue.
FY 2004-2005 FY 2005-2006 FY 2006-2007 FY 2006-2007 FY 2007-2008
Actual Actual Budget Estimate Proposed
MUNICIPAL PROPERTY CORP
Excise Tax Transfers (.2%) 683,061 746,662 708,700 720,817 628,562
Excise Tax Transfers (.1%) 347,583 373,331 354,350 360,409 314,281
Transfer from Community Center 327,228 327,228 387,000 360,409 387,000
Interest 29,055 5,000 5,000 35,000 40,000
TOTAL REVENUES $1,386,927 $1,452,221 $1,455,050 $1,476,635 $1,369,843
EXPENDITURES:
MPC Debt Service
Mountain Bond Payment 595,000 595,000 563,000 563,000 415,000
Civic Center Phase II Bonds (.1%) 255,480 255,480 285,000 285,000 315,000
MPC - Community Center 327,228 327,228 387,000 387,000 387,000
Sales Tax Rebate 22,532 0 0 0 0
Refunded Bonds 1,650,928 0 179,350
TOTAL EXPENDITURES $2,851,168 $1,177,708 $1,235,000 $1,235,000 $1,296,350
EXCESS OF REVENUES OVER/
(UNDER) EXPENDITURES (1,464,241) 274,513 220,050 241,635 73,493
Fund Balance Beginning of Year $1,742,551 $278,310 $552,823 $772,873 $1,014,508
Ending Fund Balance $278,310 $552,823 $772,873 $1,014,508 $1,088,001
181
Grants
In the third quarter of FY2006-07 the Town began a grants program. The Public Works and Parks and
Recreation Departments have several grant applications submitted. The grant horizon chart details
several Town projects that are being supported by grant dollars. Some of these projects are multi-year
and some will be completed in FY2007-08. Planning for grants on a horizon allows the Town to match
our project needs with money available. It also allows us to budget matching funds.
Grant
Agency/Name Project
Planning/Design
(Estaimated
Year and
Dollars)
Construction/
Implementation
(Estimated Year
and Dollar)
Estimated
Completion
Estimated
Total Grant
Dollars
Estimated
Town Match
MAG - STP
Shea Boulevard Climbing Lane (Fountain
Hills to Palisades) FY2006-2009 FY2009-2011 2012 $ 1,076,000.00 $ 880,205.00
MAG - RARF
Shea Boulevard Widening Phase I
(Saguaro to Technology) FY2007-2009 FY2009-2011 2012 $ 1,589,000.00 $ 1,131,466.00
MAG - RARF
Shea Boulevard Phase II (Add three
lanes and apppurtenances) FY2020-2022 FY2022-2024 2025 $ 3,689,000.00 $ 1,581,000.00
MAG - CMAQ
Fountain Hills Boulevard (Fayette to
Middle School) FY2006-2009 FY2009-2011 2011 $ 354,000.00 $ 411,000.00
MAG - Deisgn
Assistance
Four Peaks School Sidewalk (Alamosa &
Del Cambre) FY2007-2008 FY2009-2011 2011
$45,000
(Design Only) $1,156,150
MAG - CMAQ
Fountain Hills Boulevard Sidewalk (Shea
to Crystal Print) FY2009-2011 FY2011 - 2013 2014 $300,000 $1,058,000
MAG - CMAQ
Shea Boulevard Sidewalk (142nd St. to
Eagle Mountain) FY2010-2012 FY2012-2014 2015 $2,733,000 $117,000
State Park
Heritage Grant Desert Vista Neighborhood Park N/A FY2007-2008 Jun-08 $774,920 $1,002,434
AZ Commission
of the Arts Concerts in the Park Series (6) N/A FY 2007-2008 Mar-08 $2,300
AZ Commission
of the Arts Ballet Under the Stars N/A FY 2007-2008 Sep-07 $1,800
AZ Game and
Fish Dept.
PENDING APPLICATION for
Riparian Grant N/A FY 2007-2008 2008
Amount to be
determined
Amount to be
determined
Target
Corporation
PENDING APPLICATION for
Arts Grant N/A FY 2007-2008 2008
Application for
$3,000
Amount to be
determined
MAG
PENDING APPLICATION for Safety
and Elderly Mobility Sign Program N/A FY 2007-2008 2008
Application for
$4,172
Amount to be
determined
182
183
Town of Fountain Hills
Budget Summary by Program
09 - Excise Tax Fund
050 - General and Administrative Department
822 - Downtown Development Program
Total Budgeted Expenditures -$198,120
184
185
Economic/Downtown Development Program
Mission Statement
The mission of the Economic/Downtown Development Program is two-fold: 1) to work in partnership
with retail developers, leasing agents and business owners/managers to bring new business into Fountain
Hills and 2) to enhance business vitality for existing businesses in Fountain Hills through downtown
improvements and a business vitality program. The program coordinator endeavors to act as an
ombudsman between the Town and the business community by providing excellent communication
between these two groups and assisting business with the development process. The program coordinator
also supports the business community by encouraging events and activities in the downtown.
Division Description
The Economic/Downtown Development Program functions are incorporated within the Administration
Department but the appropriation is shown separately to highlight the total investment in economic
development. Responsibilities include all aspects of economic development: business attraction and
recruitment, business retention, ombudsmen, downtown development, small business development,
technology led economic development, business education development and redevelopment and reuse.
Performance Standards
• Continue to evaluate and improve the efficiency, accuracy, expediency and coordination of the
planning, engineering and building review process for commercial developments.
• Encourage and support small business education classes and seminars.
• Act as an ombudsman for businesses to assist with communication of Town regulations and to
assist with the development process.
• Support existing businesses by implementing business retention strategies.
• Communicate efforts with other municipalities and economic development agencies.
• Build and maintain relationships with other municipalities and economic development agencies.
• Evaluate and implement technology led strategies that would improve the delivery of economic
development services.
Fiscal Year 07/08 Accomplishments
• Construction of Phase I of the Avenue of the Fountains Enhancement Project.
• Implementation of a downtown events program.
• Coordination of the review process between economic development, planning, engineering and
building departments.
• Partnership with the Chamber of Commerce in conducting a Business Excellence Program.
• Partnership with the Art League in a downtown banner design contest.
Fiscal Year 2007-2008 Objectives
• Develop and implement a business retention program.
• Coordinate an economic market study for the remaining commercial development areas.
186
• Hold economic development visioning sessions with stakeholders in the community.
• Coordinate a development strategy and visual representation for the south side of the Avenue of
the Fountains.
• Enhance the business environment in the Downtown area.
• Work with the Chamber of Commerce on the Business Vitality Plan.
• Create the vision for the property on the south side of Avenue of the Fountains.
Excise Tax – Special Revenue
In November, 2000, the Town Council passed Ordinance 00-12 dedicating a portion of local sales tax
collected (excise tax) to downtown development. The funds are to be used to attract and retain business
in the downtown area; expenditures include 50% of the salaries and benefits of the Town’s Assistant to
the Town Manager. During FY2005-06 the Council approved the design for an initial phase of the
downtown project. Construction began in May of 2006 with completion in October 2006.
Salaries and Wages $43,430
The salary and benefits for economic development work is partially funded by the dedicated $0.01% of
the local sales tax. Approximately 50% of the time spent on economic development work is focused on
the downtown area; the remainder of the time is spent on promoting economic development for the
community as a whole.
Professional Services $101,000
The budget includes professional services to provide a holiday lighting display in the medians and on the
light poles and ramadas along the Avenue of the Fountains in the downtown area. The estimated contract
of $32,000 includes repair, erecting, dismantling and storage of the Town owned holiday light displays.
An additional $6,000 is estimated to purchase and install lights on the light poles and the ramadas on the
Avenue. Other professional services include hiring consultant(s) to conduct an economic market study
for Fountain Hills and a south side of the Avenue visualization; each of these services will cost
approximately $25,000.
The Town will also be contributing $8,000 to the Business Excellence Program provided in conjunction
with the Fountain Hills Chamber of Commerce. This program supports small business development.
Additionally, $5,000 is requested to improve collateral material for business recruitment.
Supplies and Services $38,690
This category includes advertising and membership fees and includes money to continue to enhance and
add vitality into downtown Fountain Hills. There is $12,600 to purchase two more sets of banners,
including one set of the winning designs from an art contest done in conjunction with the Art League.
There is $1,000 to create Downtown Fountain Hills signs to go on top of all the street signs in the
downtown area. As well, an additional $2,450 is budgeted to promote Fountain Hills at events such as the
Chamber of Commerce Business Showcase, the East Valley Partnership Economic Development Forum
and the International Council of Shopping Centers Idea Exchange. The budgeted amount for supplies
and services is reduced this year with the elimination of $7,000 for the Avenue of the Fountains
Enhancement project celebrations and $6,000 for a downtown map. These were one-time expenditures
that are not required in the FY07-08 budget.
187
Memberships allows the Town to hold membership and participate in regional and national economic
development organizations including the Greater Phoenix Economic Council (GPEC), Arizona
Association of Economic Development (AAED), East Valley Partnership, the National Main street
Program, the International Council on Shopping Centers (ICSC) and the International Economic
Development Council (IEDC). IEDC is holding their national conference in Phoenix this year. This is an
exciting opportunity for both the region and the Town to receive economic exposure nationally and
internationally. The Town is embracing this opportunity with at $5000 sponsorship donation. This
budget also includes $7100 for the economic development coordinator to support business attraction and
recruitment with the creation of Town marketing materials.
To reach more of the business community this budget proposes several meeting opportunities to gain
input and learn about business needs. Two small group business appreciation events are proposed for
$4,000. In addition $800 is proposed to conduct visioning sessions for vacant commercial properties.
The Town supports our new businesses by providing flowers at grand openings and one year
anniversaries at a cost of approximately $1,170. Finally the Town budgets to support business growth by
meeting with new and existing businesses, attend Chamber breakfasts and participate in regional
professional meetings for approximately $1,660.
188
EXCISE TAX - DOWNTOWN DEV FY 2004-2005 FY 2005-2006 FY 2006-2007 FY 2006-2007 FY 2007-2008
Actual Actual Budget Estimate Proposed
REVENUES:
Downtown Development (.1%) 341,531 458,190 354,352 360,409 314,281
General Fund Transfer $0 $0
TOTAL REVENUES $341,531 $458,190 $354,352 $360,409 $314,281
EXPENDITURES:
SALARIES & BENEFITS:
Wages 35,700 38,275 41,200 41,200 35,500
FICA 496 555 610 610 530
Unemployment Insurance 100 79 40 40 40
Employee's Health Insurance 2,490 3,422 3,980 3,980 2,810
Employee's Life Insurance 103 142 170 130 110
Employee's Dental Insurance 275 332 360 300 190
Employee's Eye Insurance 0 60 50 50 30
Worker's Compensation Insurance 117 181 160 160 140
Employee's Retirement Fund 3,927 4,210 4,530 4,530 3,900
Disability Insurance 153 183 210 210 180
TOTAL SALARIES/BENEFITS $43,361 $47,439 $51,310 $51,210 $43,430
CONTRACT SERVICES
Professional Fees 39,654 31,630 45,000 30,550 101,000
Engineering Fees 675 0 0 0 0
Sales Tax Rebate 11,600 4,905 0 0 0
TOTAL CONTRACT SERVICES $51,929 $36,535 $45,000 $30,550 $101,000
SUPPLIES & SERVICES
Advertising/Signage 85 0 29,750 29,750 15,850
Conferences 1,152 1,751 6,190 9,595 5,600
Education/Training 0 2,047 0 0 5,040
Dues/Publications 75 767 1,545 1,545 1,620
Office Supplies 21 947 562 562 250
Printing 696 1,794 675 1,500 2,100
Communication 33 588 600 900 530
Meetings/Travel 1,709 442 4,870 2,500 7,700
TOTAL $3,771 $8,336 $44,192 $46,352 $38,690
CAPITAL EXPENDITURES
Capital Projects - Downtown 131,023 800,000 0 0 15,000
TOTAL CAPITAL EXPENDITURES $131,023 $800,000 $0 $0 $15,000
TOTAL EXPENDITURES $230,084 $892,310 $140,502 $128,112 $198,120
EXCESS OF REVENUES OVER/
(UNDER) EXPENDITURES $111,447 ($434,120) $213,850 $232,297 $116,161
Fund Balance Beginning of Year $955,156 $1,073,854 $0 $639,735 $872,032
Ending Fund Balance $1,073,854 $639,734 $213,850 $872,032 $988,193
189
Town of Fountain Hills
Budget Schedules/Summaries
Debt Service
190
191
Debt Service Funds
The Debt Service Funds provide for the payment of interest, principal, and related costs on General
Obligation (GO) Bonds, Highway User Revenue Fund bonds and Municipal Property Corporation
(MPC) Revenue bonds. There are three General Obligation bond issues outstanding that were
approved by the voters for specific purposes. The first GO bond issue in 1991 (refunded in 1995)
was to pave roads that remained unpaved at the time of incorporation. Additional GO bonds issued
in 1999 and 2000 were for the construction of a library/museum and community center. Bonds
issued in 2001 were for the purchase of mountain preservation land in the McDowell mountains.
Total General Obligation bond principal and interest payments for fiscal year 2007/2008 are
$1,400,000 and will be paid through a levy of Town property. The Summary/Schedules section
includes an itemization of the outstanding debt as of June 30, 2007.
DEBT RETIREMENT - HURF/GO BONDS
FY 2004-2005 FY 2005-2006 FY 2006-2007 FY 2006-2007 FY 2007-2008
Actual Actual Budget Estimate Proposed
REVENUE:
Property Tax Revenue:
General Obligation Bonds 1,461,420 1,325,581 1,370,000 1,300,000 1,400,000
Other Debt Retirement Issues:
HURF Street Paving Transfers 124,000 110,500 135,000 135,000 126,300
Cottonwoods Improvement District 1,519 3,850 3,850 3,850 3,850
Interest Earnings 37,427 30,407 1,400 28,000 1,400
Bond Proceeds 7,225,000 0 0 0 0
TOTAL REVENUES $8,849,366 $1,470,338 $1,510,250 $1,466,850 $1,531,550
EXPENDITURES:
General Obligation Bonds:
Bond Payment - GO 53,178 281,870
Bond Payment - Lakeside 132,500 87,800
Bond Payment - Library/Museum 295,805 304,750
Bond Payment - Mtn Bonds GO 332,595 330,000
Refunded Bonds 7,822,079 515,000 1,371,400 1,371,400 1,392,350
Special Districts Debt Service:
Bond Payment - HURF 124,000 110,500 135,000 135,000 126,300
Bond Payment - Cottonwoods Impr. Dist.3,991 3,850 3,850 3,850 3,850
TOTAL EXPENDITURES $8,764,148 $1,633,770 $1,510,250 $1,510,250 $1,522,500
EXCESS OF REVENUES OVER/
(UNDER) EXPENDITURES 85,218 (163,432) 0 (43,400) 9,050
Fund Balance Beginning of Year $280,561 $365,779 $192,704 $192,704 $149,304
Ending Fund Balance $365,779 $202,347 $192,704 $149,304 $158,354
192
The HURF Bond principal and interest payment is $126,300 for fiscal year 2007-2008 and will be
paid from HURF revenues received during the year. The Eagle Mountain Community Facilities
District debt payments are levied on the property owners within the district. These obligations are
paid by the Fountain Hills’ property owners using secondary property taxes, less any credits, carry-
forward and/or interest earnings. Below is the schedule of Debt Service payments required for next
fiscal year, including a breakdown of the debt service payments for FY07-08 and ending fund
balance. The annual property tax levy is based on the total amount required for the payment (with
adjustments for carry-forward, delinquencies, etc.) divided by the total assessed valuation for the
Town of Fountain Hills. The Town’s secondary assessed property valuation for fiscal year 2007-
2008 is estimated to be $610,738,122 for the upcoming year and the estimated levy is $0.2124 per
$100 of assessed value.
Municipal Properties Corporation (MPC) Fund
Revenues and Expenditures Summary
The Municipal Property Corporation owns the land and buildings purchased through bond proceeds
(McDowell Mountain preserve, Community Center and Town Hall). The annual debt payment on
the bonds is paid for with proceeds from the dedicated portion of the local sales tax and is included as
a transfer from the Excise Sales Tax. The debt payment for the Community Center will be
transferred from the General Fund and is included within the Community Center budget. Any fund
balance in this fund may be used only to retire the debt on the bonds. When the bonds are retired any
assets owned by the MPC are turned over to the Town.
FY 2004-2005 FY 2005-2006 FY 2006-2007 FY 2006-2007 FY 2007-2008
Actual Actual Budget Estimate Proposed
MUNICIPAL PROPERTY CORP
Excise Tax Transfers (.2%) 683,061 843,492 708,700 720,817 628,562
Excise Tax Transfers (.1%) 347,583 421,746 354,350 360,409 314,281
Transfer from Community Center 327,228 387,000 387,000 387,000 387,000
Interest 29,055 34,658 5,000 35,000 40,000
TOTAL REVENUES $1,386,927 $1,686,896 $1,455,050 $1,503,226 $1,369,843
EXPENDITURES:
MPC Debt Service
Mountain Bond Payment 595,000 595,000 563,000 563,000 415,000
Civic Center Phase II Bonds (.1%) 255,480 246,637 285,000 285,000 315,000
MPC - Community Center 327,228 387,000 387,000 387,000 387,000
Sales Tax Rebate 22,5320000
Refunded Bonds 1,650,928 0 179,350
TOTAL EXPENDITURES $2,851,168 $1,228,637 $1,235,000 $1,235,000 $1,296,350
EXCESS OF REVENUES OVER/
(UNDER) EXPENDITURES (1,464,241) 458,259 220,050 268,226 73,493
Fund Balance Beginning of Year $1,742,551 $278,310 $530,291 $736,569 $1,004,795
Ending Fund Balance $278,310 $736,569 $750,341 $1,004,795 $1,078,288
193
Schedule of Outstanding Debt – June 30, 2007
Computation of Legal Debt Margin – Fiscal Year 2007-2008
The Arizona Constitution provides that the general obligation bonded indebtedness for a
municipality for general municipal purposes may not exceed six percent (6%) of the secondary
assessed valuation of the taxable property in that city or town. In addition to the six percent
limitation for general municipal purpose bonds, municipalities may issue general obligation
bonds up to an additional twenty percent (20%) of the secondary assessed valuation for supplying
water, artificial light, or sewers, and for the acquisition and development of land for open space
preserves, parks, playgrounds and recreational facilities.
Bond Purpose Date of Interest Date of Original Principal Principal Amount Outstanding
Type of Issue Bond Issue Rate Maturity Amount Amount Retired Refunded Principal
GO Refunding 11/1/1995 5.30 7/1/2010 $2,455,000 $1,200,000 $1,255,000 $0
GO Library/Museum 6/1/2000 5.50 7/1/2014 $3,700,000 $1,475,000 $1,675,000 $550,000
GO Land Acq-Lake 8/1/1999 5.10 7/1/2014 $1,400,000 $600,000 $500,000 $300,000
GO Mtn. Bonds 12/1/2001 4.90 7/1/2020 $6,000,000 $1,175,000 $3,425,000 $1,400,000
GO Refunding 6/1/2005 4.00 7/1/2019 $7,225,000 $0 $0 $7,225,000
TOTAL $24,310,000 $5,525,000 $9,310,000 $9,475,000
Rev Refunding 8/1/1998 4.63 7/1/2010 $1,075,000 $730,000 $0 $345,000
Rev Comm. Center 7/1/2000 5.40 7/1/2020 $4,680,000 $1,125,000 $2,475,000 $1,080,000
Rev Mtn. Bonds 12/1/2001 4.70 7/1/2021 $7,750,000 $1,715,000 $3,910,000 $2,125,000
Rev Civic Center 12/1/2004 4.50 7/1/2019 $3,645,000 $440,000 $0 $3,205,000
Rev Refunding 6/1/2005 4.15 7/1/2019 $5,330,000 $0 $0 $5,330,000
TOTAL $23,680,000 $4,210,000 $7,385,000 $12,085,000
SA Eagle Mtn-A 6/1/1996 6.50 7/1/2021 $4,435,000 $410,000 $4,025,000 $0
SA Eagle Mtn-B 6/1/1996 7.25 7/1/2021 $470,000 $40,000 $430,000 $0
SA Eagle Mtn 7/12/2005 3.95 7/1/2021 $4,555,000 $0 $0 $4,555,000
SA Improvmnts 6/16/1999 5.25 7/1/2009 $32,276 $25,821 $0 $6,455
TOTAL $9,492,276 $475,821 $4,455,000 $4,561,455
GRAND TOTAL $57,482,276 $10,210,821 $21,150,000 $26,121,455
GO General Obligation Bonds
Rev Revenue Bonds
SA Special Assessment Bonds
194
Direct Bonded Debt, Legal Limitation and Unused Borrowing Capacity – FY2007-08
Eagle Mountain Community Facilities District
Formed in 1995, the District is a special purpose taxing District and separate political subdivision
under Arizona statutes. As such, the District can levy taxes and issue bonds, independent of the
Town of Fountain Hills. Property owners within the District boundaries pay the debt service due
on the District’s bonds through the levy of a secondary property tax. By law, and by the
proceedings of the District, the definition of debt service on the bonds includes all costs and
expenses of the District, in addition to principal and interest expenses. Town staff serves as
District staff and administers the District and the costs of their services are reimbursed by District
funds. The Fountain Hills Town Council also serves as the District Board of Directors. The
District is one of the Town of Fountain Hills’ component units for the fiscal year ended June 30,
2006.
During FY05-06 the District refinanced the bonds to take advantage of interest rate savings and
surplus revenues. The summary below is a breakdown of the debt service payments for FY07-08,
ending fund balance and estimated tax levy per $100 of assessed valuation.
Net secondary assessed valuation $ $610,738,122
Debt limit - 6% of secondary net
assessed valuation $36,644,287
Debt limit - 20% of secondary net
assessed valuation $122,147,624
Less Direct Bonded Debt ($2,030,000) Less Direct Bonded Debt ($6,590,000)
Unused 6% Borrowing Capacity $34,614,287 Unused 20% Borrowing Capacity $115,557,624
Water, Sewer, Light, Parks, Open Space
General Municipal Purpose Bonds and Recreational Facility Bonds
195
Tax levy is estimated to be $0.8831 per $100 of assessed valuation.
FY 2004-2005 FY 2005-2006 FY 2006-2007 FY 2006-2007 FY 2007-2008
Actual Actual Budget Estimate Proposed
REVENUE:
Property Tax Revenue $594,644 $366,683 $195,250 $195,250 $350,000
Town of Fountain Hills Reimbursement $0 $50,000 $0 $0 $0
Investment Earnings $5,616 $20,671 $18,500 $12,500 $10,000
TOTAL REVENUES $600,261 $437,354 $213,750 $207,750 $360,000
EXPENDITURES:
Debt Service $451,827 $577,145 $330,500 $330,500 $350,235
Administrative Fees $38,160 $6,600 $6,600 $6,600 $6,600
Trustee Fees $5,000 $5,000 $1,000 $1,000 $1,000
TOTAL EXPENDITURES $494,987 $588,745 $338,100 $338,100 $357,835
EXCESS OF REVENUES OVER/
(UNDER) EXPENDITURES $105,274 ($151,391) ($124,350) ($130,350) $2,165
Fund Balance Beginning of Year $261,530 $306,100 $154,709 $154,709 $24,359
Ending Fund Balance $366,803 $154,709 $30,359 $24,359 $26,524
EAGLE MOUNTAIN COMMUNITY FACILITIES DISTRICT
Annual Statement of Estimates of Expenses
196
Summary of Tax Levy and Tax Rate Information
TOWN OF FOUNTAIN HILLS, ARIZONA
Summary of Tax Levy and Tax Rate Information
Fiscal Year 2007-08
2006-07 2007-08
FISCAL YEAR FISCAL YEAR
1. Maximum allowable primary property tax levy
A.R.S. §42-17051(A). $ 0 $0
2. Amount received from primary property taxation in the
2002-03 fiscal year in excess of the sum of that year's
maximum allowable primary property tax levy.
A.R.S. §42-17102(A)(18). $0
3. Property tax levy amounts
A. Primary property taxes $ 0 $0
B. Secondary property taxes 1,370,000 1,400,000
C. Total property tax levy amounts $ 1,370,000 $ 1,400,000
4. Property taxes collected*
A. Primary property taxes
(1) 2003-04 levy $0
(2) Prior years’ levy
(3) Total primary property taxes $ 0
B. Secondary property taxes
(1) 2005-06 levy $ 1,300,000
(2) Prior years’ levy
(3) Total secondary property taxes $ 1,300,000
C. Total property taxes collected $ 1,370,000
5. Property tax rates
A. Town tax rate
(1) Primary property tax rate 0.0000 0.0000
(2) Secondary property tax rate (estimate) 0.3012 0.2124
(3) Total city/town tax rate 0.3012 0.2124
B. Special assessment district tax rates
Secondary property tax rates - As of the date the proposed budget was prepared, the
town was operating two (2) special assessment districts for which secondary property
taxes are levied. For information pertaining to these special assessment districts and
their tax rates, please contact the town.
*Includes actual property taxes collected as of the date the proposed budget was prepared plus estimated property
tax collections for the remainder of the fiscal year.
197
Tax % %
Year Primary Change Secondary Change
1996 $100,649,833 6.9% $103,944,051 3.8%
1997 $112,285,569 11.6% $116,333,406 11.9%
1998 $133,721,181 19.1% $146,943,730 26.3%
1999 $160,963,931 20.4% $174,760,640 18.9%
2000 $190,102,361 18.1% $212,415,476 21.5%
2001 $220,229,137 15.8% $238,714,537 12.4%
2002 $247,151,729 12.2% $270,602,866 13.4%
2003 $282,800,857 14.4% $323,385,230 19.5%
2004 $319,213,464 12.9% $349,398,334 8.0%
2005 $350,557,588 9.8% $375,183,181 7.4%
2006 $377,041,563 7.6% $397,380,162 5.9%
2007 $443,618,807 17.7% $610,738,122 53.7%
TOWN OF FOUNTAIN HILLS ASSESSED VALUATION
1996 - 2007
198
199
Town of Fountain Hills
Budget Schedules/Summaries
Development Fees
200
201
Development Fees
Percent
Restrictions Fiscal Year Amount Change
2000-01 $163,611
2001-02 $564,813 245.2%
2002-03 $604,658 7.1%
2003-04 $855,643 41.5%
2004-05 $1,678,632 96.2%
2005-06 $1,427,176 -15.0%
2006-07 (est.) $1,092,857 -23.4%
2007-08 (est.) $601,152 -45.0%
Accounts: 802 - 819
Assumptions
Major Influences: Development
There is a State constitutional restriction on the use of these funds
which requires that these funds be used solely for infrastructure
expansion required by new development. The Development Fund is a
restricted fund and may only be appropriated for the particular purpose
for which they were imposed. The projection for FY2008 is based on
information provided by planning staff estimates of construction
activity.
$0
$200,000
$400,000
$600,000
$800,000
$1,000,000
$1,200,000
$1,400,000
$1,600,000
$1,800,000
DEVELOPMENT FEE REVENUES
Fiscal years 2004 through 2008
$0
$200,000
$400,000
$600,000
2003-2004 2004-2005 2005-2006 2006-2007 2007-2008
DEVELOPMENT FEE REVENUES
Law Enforcement Streets Parks & Recreation Open Space General Government Fire Library
202
Development Fee Expenditures
In November 2000, the Town Council of Fountain Hills passed Ordinance 00-21 to establish and
impose development fees on new residential permits to offset the costs associated with growth.
The development fee accounts are restricted and may only be spent for the particular public
facility for which they were imposed. Each year during the budget process, the Town of Fountain
Hills will identify the projects anticipated to be funded in whole or in part with development fees.
For fiscal year 2007-2008, the following schedule is presented for Council consideration and
itemizes the proposed development fee expenditures based on available balance in each account
as of June 30, 2007.
PROPOSED DEVELOPMENT FEE SCHEDULE FISCAL YEAR 2007-08
The capital projects proposed to be funded from development fees during FY2007-08 are listed
below (descriptions of each project are included in the Capital Improvement Plan):
Traffic signal at Palisades & Sunridge Boulevards $ 441,000
Desert Vista Neighborhood Park Phase II (partially grant funded) $1,777,354
Fountain Hills/McDowell Mountain Preserve Central Trailhead $ 10,000
Botanical Garden Improvements $ 15,000
Fountain Hills/McDowell Mountain Preserve Access $ 169,160
Law Open General
Enforcement Streets Parks Space Government Library Fire TOTALS
FY01 Balance $960 $13,742 $33,900 $37,740 $13,987 $100,329
FY2001-02 Revenues $10,887 $142,410 $176,257 $198,023 $160,338 $687,915
Expenditures $0 $0 ($80,954) $0 ($185,500) ($266,454)
FY2002-03 Revenues $6,573 $96,705 $192,463 $212,684 $96,234 $604,659
Expenditures 0 ($7,000) $0 ($14,105) $0 ($21,105)
FY2003-04 Revenues $9,814 $139,990 $268,018 $296,402 $141,417 $855,641
Expenditures $0 ($201,150) $0 ($13,049) $0 ($214,199)
FY2004-05 Revenues $18,839 $236,077 $536,322 $597,241 $270,871 $1,659,350
Expenditures ($18,033) ($243,342) ($306,400) ($137,598) ($264,992) ($970,365)
FY2005-06 Revenues $41,278 $214,381 $448,194 $468,024 $245,461 $7,692 $6,356 $1,431,386
Expenditures ($16,848) ($313,595) ($426,128) ($114,370) ($244,687) ($1,854) ($618) ($1,118,100)
FY2006-07 Revenues1 $68,395 $447,315 $623,650 $63,550 $143,920 $12,785 $15,340 $1,374,955
FY2006-07 Expenditures1 $0 $0 ($487,270) ($15,000) $0 $0 $0 ($502,270)
FY2007-08 Revenues1 $54,040 $225,510 $890,130 $67,600 $113,700 $13,600 $12,115 $1,376,695
FY2007-08 Expenditures1 ($441,000) ($1,777,354) ($194,160) ($2,412,514)
Ending Fund Balance $175,905 $310,043 $90,828 $1,452,982 $490,749 $32,223 $33,193 $2,585,923
1 estimated
203
Development Fees
LAW ENFORCEMENT FY 2004-2005 FY 2005-2006 FY 2006-2007 FY 2006-2007 FY 2007-2008
Actual Actual Budget Estimate Proposed
REVENUES:
Law Enforcement Development Fees 18,033 41,228 115,146 66,195 51,840
Interest 806 50 2,200 2,200 2,200
TOTAL REVENUES 18,839 41,278 117,346 68,395 54,040
EXPENDITURES:
Transfer to CIP 18,033 16,848 0 0 0
TOTAL EXPENDITURES $18,033 $16,848 $0 $0 $0
EXCESS OF REVENUES OVER/ 806 24,430 117,346 68,395 54,040
(UNDER) EXPENDITURES
Fund Balance Beginning of Year $28,234 $29,040 $53,470 $53,470 $121,865
Ending Fund Balance $29,040 $53,470 $170,816 $121,865 $175,905
STREETS FY 2004-2005 FY 2005-2006 FY 2006-2007 FY 2006-2007 FY 2007-2008
Actual Actual Budget Estimate Proposed
REVENUES:
Street Department Development Fees 228,500 213,881 779,865 447,315 225,510
Developer Contribution 100,000 0 0 0
Interest 7,577 500 15,745
TOTAL REVENUE 236,077 314,381 795,610 447,315 225,510
CAPITAL EXPENDITURES
Traffic Signals 35,355 0 0 0 441,000
Shea Widening (MCDOT) 193,633 0 0 0 0
Saguaro/El Lago Signal 14,354 413,595 0 0 0
TOTAL EXPENDITURES $243,342 $413,595 $0 $0 $441,000
EXCESS OF REVENUES OVER/ ($7,265) ($99,214) $795,610 $447,315 ($215,490)
(UNDER) EXPENDITURES
Fund Balance Beginning of Year $187,048 $177,432 $252,172 $78,218 $525,533
Ending Fund Balance $177,432 $78,218 $1,047,782 $525,533 $310,043
204
Development Fees (continued)
PARKS & RECREATION FY 2004-2005 FY 2005-2006 FY 2006-2007 FY 2006-2007 FY 2007-2008
Actual Actual Budget Estimate Proposed
REVENUES:
P & R Department Development Fees 522,060 447,194 257,052 99,000 110,560
Grant Revenue 0 0 0 0 774,920
Interest 14,262 1,000 4,650 4,650 4,650
Transfer from General Fund $520,000 $520,000
TOTAL REVENUES $536,322 $448,194 $781,702 $623,650 $890,130
EXPENDITURES:
CAPITAL EXPENDITURES
Fountain Park 281,400 200,168 127,570 127,570 0
Skate Park 0 37,560 210,000 321,374 0
Veteran's Memorial 25,00040,000000
Desert Vista Phase III 0 148,400 1,039,932 22,500 1,777,354
Joint School Parks 51,120 11,286 0
Trailheads 0 0 0 4,540 0
TOTAL EXPENDITURES $306,400 $426,128 $1,428,622 $487,270 $1,777,354
EXCESS OF REVENUES OVER/ $229,922 $22,066 ($646,920) $136,380 ($887,224)
(UNDER) EXPENDITURES
Fund Balance Beginning of Year $589,684 $819,606 $1,093,486 $841,672 $978,052
Ending Fund Balance $819,606 $841,672 $446,566 $978,052 $90,828
OPEN SPACE FY 2004-2005 FY 2005-2006 FY 2006-2007 FY 2006-2007 FY 2007-2008
Actual Actual Budget Estimate Proposed
REVENUES:
Open Space Development Fees 581,196 458,424 150,660 60,750 64,800
Interest 16,045 9,600 2,800 2,800 2,800
TOTAL REVENUES $597,241 $468,024 $153,460 $63,550 $67,600
EXPENDITURES:
CAPITAL EXPENDITURES
Capital Outlay - Trailhead Access 0 8,581 4,000 0 169,160
Capital Outlay - Botanical Garden 0 0 0 0 15,000
Capital Outlay-Trailhead Development 137,598 105,789 0 15,000 10,000
TOTAL EXPENDITURES $137,598 $114,370 $4,000 $15,000 $194,160
EXCESS OF REVENUES OVER/ $459,643 $353,654 $149,460 $48,550 ($126,560)
(UNDER) EXPENDITURES
Fund Balance Beginning of Year $717,695 $1,177,338 $1,621,346 $1,530,992 $1,579,542
Ending Fund Balance $1,177,338 $1,530,992 $1,770,806 $1,579,542 $1,452,982
205
Development Fees (continued)
GENERAL GOVERNMENT FY 2004-2005 FY 2005-2006 FY 2006-2007 FY 2006-2007 FY 2007-2008
Actual Actual Budget Estimate Proposed
REVENUES:
General Government Development Fees 264,992 245,111 242,450 139,320 109,100
Interest 5,879 350 4,600 4,600 4,600
TOTAL REVENUE $270,871 $245,461 $247,050 $143,920 $113,700
EXPENDITURES:
CAPITAL EXPENDITURES
Capital Project - Civic Center 264,992 244,687 0 0 0
Capital Outlay 0 0 0 0 0
TOTAL EXPENDITURES $264,992 $244,687 $0 $0 $0
EXCESS OF REVENUES OVER/ $5,879 $774 $247,050 $143,920 $113,700
(UNDER) EXPENDITURES
Fund Balance Beginning of Year $226,476 $232,355 $171,384 $233,129 $377,049
Ending Fund Balance $232,355 $233,129 $418,434 $377,049 $490,749
Fire FY 2004-2005 FY 2005-2006 FY 2006-2007 FY 2006-2007 FY 2007-2008
Actual Actual Budget Estimate Proposed
REVENUES:
Fire Development Fees 0 6,356 25,614 14,865 11,640
Interest 475 475 475
TOTAL REVENUE $0 $6,356 $26,089 $15,340 $12,115
EXPENDITURES:
CAPITAL EXPENDITURES
Capital Outlay 0 618 0 0 0
TOTAL EXPENDITURES $0 $618 $0 $0 $0
EXCESS OF REVENUES OVER/ $0 $5,738 $26,089 $15,340 $12,115
(UNDER) EXPENDITURES
Fund Balance Beginning of Year $0 $0 $3,900 $5,738 $21,078
Ending Fund Balance $0 $5,738 $29,989 $21,078 $33,193
206
Development Fees (continued)
Library FY 2004-2005 FY 2005-2006 FY 2006-2007 FY 2006-2007 FY 2007-2008
Actual Actual Budget Estimate Proposed
REVENUES:
Library Development Fees 0 7,692 30,318 12,225 13,040
Interest 0 0 560 560 560
TOTAL REVENUE $0 $7,692 $30,878 $12,785 $13,600
EXPENDITURES:
CAPITAL EXPENDITURES
Capital Outlay 0 1,854 0 0 0
TOTAL EXPENDITURES $0 $1,854 $0 $0 $0
EXCESS OF REVENUES OVER/ $0 $5,838 $30,878 $12,785 $13,600
(UNDER) EXPENDITURES
Fund Balance Beginning of Year $0 $0 $4,500 $5,838 $18,623
Ending Fund Balance $0 $5,838 $35,378 $18,623 $32,223
207
Town of Fountain Hills
Budget Schedules/Summaries
Capital Projects
208
209
Capital Projects Fund
The Capital Project Fund is created with surplus revenues from the General Fund that are
transferred at the end of each fiscal year. Resolution 2005-50 authorizes that this amount be
transferred from the General Fund to the Capital Projects for funding future capital projects. The
surplus revenues are one-time resources that generated from construction related activity and
should be used for funding one-time capital expenditures. The projected surplus from FY06-07 is
$1.9M.
Projects that are included in the FY07-08 capital budget are summarized below and explained in
detail on the following pages:
FY200708 Capital Projects Funding Summary
Capital Projects
General Fund Streets Fund Grant Fund
Development
Fees
Capital Projects
Fund
S6001 Shea Blvd truck climbing/bike lanes design $372,345
S6003 Saguaro Blvd dirt alley paving design $10,000
S6005 Shea Blvd/Palisades to Saguaro design $210,000
S6006 FH Blvd/Fayette STL sidewalks $90,000
P3019 Joint Use Park - High School Site - design $180,000
P3020 Joint Use Park - McDowell Mountain Elem. - design $120,000
F4001 Town Hall Improvements $100,000
E2001 Streets heavy equipment - Street Sweeper $20,000 $180,000
P3006 Desert Vista Neighborhood Park Phase II $774,920 $1,002,434
O7002 McDowell Mountain Central Trailhead $10,000
O7005 Fountain Hills/McDowell Mountain Preserve Access $169,160
T5003 Palisades/Sunridge Traffic Signal $441,000
S6007 Town wide sidewalk program $164,869
S6026 Saguaro Blvd. Drainage Improvements $650,000
F4002 Sweeper Decant Disposal Facility $149,350
P3006 DVNP Dog Park Lighting $125,485
P3007 DVNP Parking Improvements $260,276
P3011 Ftn Park Phase III $1,358,579
E2008 Fire Truck/Pumper $360,500
Total FY07-08 Capital Projects $1,082,345 $20,000 $954,920 $1,622,594 $3,069,059
210
CAPITAL PROJECTS FY 2004-2005 FY 2005-2006 FY 2006-2007 FY 2006-2007 FY 2007-2008
Actual Actual Budget Estimate Proposed
Revenues:
Development Fee Transfers:
General Government 264,992232,946000
Law Enforcement 18,03311,904000
Other Revenue Sources:
Local Sales Tax (85% from new construction 528,225 547,590 $528,225 $1,700,000 $907,434
Grants 237,3070000
Bond Proceeds 3,783,896 0 0 0
Interest Earnings 35,384 105,176 95,000 230,000 250,000
Transfers:
General Fund - Fountain Park 124,5650000
General Fund - Civic Center II 1,224,6661,961,344000
General Fund Balance Transfer for Capital 5,497,848 0 1,062,918 0
TOTAL REVENUES 6,217,068 8,356,808 623,225 2,992,918 1,157,434
EXPENDITURES:
Civic Center 5,958,166649,649000
Downtown 0 959,921 800,000 1,034,728 0
Public Safety 0 0 0 0 360,500
Parks & Recreation 809,253 0 0 1,744,340
Streets 0 0 0 964,219
Bond Issuance Costs 91,739
Contingency $400,000
TOTAL EXPENDITURES 6,859,158 1,609,570 800,000 1,034,728 3,469,059
EXCESS OF REVENUES OVER/
(UNDER) EXPENDITURES ($642,091) $6,747,238 ($176,775) $1,958,190 ($2,311,625)
Fund Balance Beginning of Year $642,091 $0 $3,834,819 $6,747,238 $8,705,428
Ending Fund Balance $0 $6,747,238 $3,658,044 $8,705,428 $6,393,803
211
Open Space Projects
Project Number: O7002
Project Name: FH/McDowell Mountain Preserve Central Trailhead
Project Description:
J2 Engineering has completed the site Master Plan and all of the plans and bid documents for this
project. The plans have all been submitted and approved. A remaining issue, which was not in
their original scope of work, was to have them create legal descriptions for the utilities that will
need to be extended into the site. Secondly, the Town requested that the firm complete a design
for an automated entry gate to the trailhead, which was also not in the original scope of work.
Funding Requested: $10,000
Funding Source: Development Fees – Open Space
Timeline: July 1, 2007 – August 30, 2007
Justification:
The work on the legal descriptions was requested by the Town’s Engineering Department. The
cost of the design work for the gate was at the request of the Town and not in the firm’s original
scope of work.
____________________________________________________________________________________
Project Number: O7004
Project Name: Fountain Hills McDowell Mountain Preserve Access
Project Description:
Develop access to the Fountain Hills McDowell Mountain Preserve including trail development,
temporary parking, and related signage. Depending on the site, a master plan for the site may be
needed, properly identifying parking, trail access, restroom facilities, if necessary, and native
landscape screening.
Funding Requested: $169,160
Funding Source: Development Fees – Open Space
Timeline: July 1, 2007 – August 30, 2007
Justification:
The Town’s McDowell Mountain Preservation Commission and the Sonoran Conservancy have
requested public access to the Town’s Fountain Hills McDowell Mountain Preserve. The Town
Council has indicated that this is one of their goals for the 2007-2008 year.
212
Project Number: O7005
Project Name: Botanical Garden Improvements
Project Description:
The improvements will provide an area for parking and some site signage for the redeveloped
open space.
Funding Requested: $15,000
Funding Source: Development Fees – Open Space
Timeline: July 1, 2007 – August 30, 2007
Justification:
Staff has been working with a new non-profit group, the Desert Botanical Garden Society, to
clean up and reintroduce the open space to the public.
______________________________________________________________________________________
213
Park Improvements
Project Number: P3006
Project Name: Desert Vista Neighborhood Park – Phase II
Project Description:
Phase II Improvements will consist of improvements to the multi-purpose fields and adjoining
areas including new sidewalks and entryways, two playgrounds, two picnic ramadas, site
furnishings, landscape improvements, and a restroom/storage/concession building.
Improvements at the Off-Leash Recreational Facility (Dog Park) include new sidewalks and
entryways, three shade ramadas, site furnishings, and landscaping improvements.
Funding Requested: $1,777,354
Funding Source: $774,920 Arizona State Parks Heritage Grant
$1,002,434 Development Fee Fund
Timeline: October 1, 2007 – May 31, 2008
Justification:
Planned improvements are part of an updated Park Master Plan approved by the Town Council in
February 2006. The improvements will add new amenities to the park that will enhance patrons’
enjoyment of the park and its facilities, particularly the lighted multipurpose fields that will be
able to be utilized by the local Soccer Club and Pop Warner Football and Cheerleading.
____________________________________________________________________________
Project Number: P3006
Project Name: Desert Vista Neighborhood Park – Dog Park Lighting
Project Description:
This phase of the park improvements will include the installation of lights in the Off-Leash
Recreation Facility (Dog Park). The final estimate of probable construction costs from the
Town’s consultants put these improvements at $125,485.
Funding Requested: $125,254
Funding Source: Capital Projects Fund
Timeline: June 1, 2007 – September 30, 2007
Justification:
Planned improvements are part of an updated Park Master Plan approved by the Town Council in
February 2006. The improvements will allow increased usage of the park that will enhance
patrons’ enjoyment of the facility. ADOG is contributing approximately $27,000 towards the
installation of the lights.
214
Project Number: P3007
Project Name: Desert Vista Neighborhood Park – Parking Improvements
Project Description:
This phase of the park improvements will include developing almost 100 permanent, paved
parking spaces for park patrons along Desert Vista Drive and along the alley adjacent to the park.
Funding Requested: $260,276
Funding Source: Capital Projects Fund
Timeline: September 1, 2007 – April 30, 2008
Justification:
Planned improvements are part of an updated Park Master Plan approved by the Town Council in
February 2006. The additional parking will accommodate the increased number of park patrons
enjoying the new park facilities, particularly during youth sports competitions.
______________________________________________________________________________
Project Number: P3011
Project Name: Fountain Park – Phases 4 & 5
Project Description:
Phase 4 and 5 Improvements consist of a new irrigation system throughout the 22-acres of turf,
new sidewalk along the western edge of the lake and a connecting entry point, 18 concrete disc
golf tee pads, and landscaping surrounding the Rotary Centennial Splash Park and area adjacent
to Plaza Fountainside.
Funding Request: $1,358,579
Funding Source: Capital Projects Fund
Timeline: July 1, 2007 – November 30, 2007
Justification:
The Fountain Park irrigation system is over 36 years old and is in desperate need of replacement.
The sidewalk and disc golf tee pads are additional amenities included in the Park Master Plan
approved by the Town Council in 1998, and will add valuable amenities to the park.
Additionally, the landscaping improvements are necessary to complete the Rotary Centennial
Splash Park and make the area more aesthetically pleasing. Current landscaping in that area
consists simply of 40 tons of granite, which was temporary measure. The latest engineering
estimate of probable construction costs from the Town’s consultants put these improvements at
$1.36 million and includes CM at risk funding.
215
Project Number: P3019
Project Name: Joint Use Park – High School Site
Project Description:
High School Site – The Town is currently working cooperatively with USD #98 to potentially
develop a site adjacent to the High School. The site would provide badly needed school team
practice sites for football and other sports. By agreement the site would be usable by the Town as
a practice facility for various youth associations when not being utilized by the District.
Funding Requested: $180,000
Funding Source: General Fund
Timeline: September 1, 2007 – April 30, 2008
Justification:
This would provide the needed funds to complete plans and specifications in order to bid
improvements to the site based on Master Plans that are currently being developed.
______________________________________________________________________________________
Project Number: P3020
Project Name: Joint Use Park – McDowell Mountain Elementary School
Site
Project Description:
McDowell Mountain Elementary School Site – The Town is currently working cooperatively
with USD #98 to potentially develop this site adjacent to McDowell Mountain Elementary
School. This site would also provide needed physical education space for the school because of a
bus off loading project that will eliminate some of the open space turf area currently used for this
purpose.
Funding Request: $120,000
Funding Source: General Fund
Timeline: July 1, 2007 – November 30, 2007
Justification:
This would provide the needed funds to complete plans and specifications in order to bid
improvements to the site based on the Master Plans that are currently being developed.
216
Facilities
Project Number: F4001
Project Name: Civic Center Phase II (Town Hall)
Project Description:
Install Art/Water feature at the North West corner landscaped area of Civic Center Phase ll
(Town Hall) - corner of Avenue of the Fountains and LaMontana Boulevards
Funding Request: $100,000
Funding Source: General Fund
Timeline: July 1, 2007- June 30, 2008
Justification:
It is desired to place a significant water feature at the North West corner of our New Town Hall.
The project will be the finishing touch and a defining corner piece blending with the completion
of Town Hall and Phase l of the Avenue of the Fountains landscape project.
______________________________________________________________________________________
Project Number: F4002
Project Name: Street Sweeper Decant Disposal Facility
Project Description:
Staff is proposing to install a self-contained cleaning and decant facility. The self-contained unit
will permit the street department to clean equipment, vehicles, and the street sweeper. The self-
contained unit collects all the wastewater and recycles it for use, while removing the sediment. It
is a closed loop system that has zero discharge and meets federal wastewater regulations. The unit
includes an internal conveyor, media filter, absolute filter, ozone, oil coalescing and oil
skimming. The solids are then dumped into a dumpster and disposed of at an appropriate landfill.
The unit will require a 20-foot by 40-foot area. The unit can be moved if necessary in the future.
Funding Request: $149,350
Funding Source: Capital Projects Fund
Timeline: July 1, 2007- June 30, 2008
Justification:
The Town currently has a street sweeper that requires disposal of water and waste products
removed from the streets by the sweeper. This material must be disposed of in a manner
acceptable to ADEQ. The current practice is to decant the wastewater and solids in a concrete
floor bin. The decant water then runs into a dry well. The current practice needs to be upgraded to
meet the required stormwater regulations
217
Saguaro Boulevard Improvements
Project Number: S6003
Project Name: Saguaro Boulevard dirt alley paving design
Project Description:
The project is to provide a hard surface for better dust control northeast of Saguaro Boulevard
between Panorama and Colony Drives. Dumpsters will be relocated, driveway entrances defined
and some minor drainage improvements completed.
Funding Request: $10,000 for surveying
Funding Source: General Fund, Public Works
Timeline: Design in FY07-08 - constructed in FY09-10
Justification:
After careful review of this project with the Town staff and Town manager, the team agreed to
drop this grant and do the project with capital improvement funds. The Town will design the
project and issue a work order from the annual on call contracts for construction.
______________________________________________________________________________________
Project Number: S6026
Project Name: Saguaro Blvd. Drainage improvements
Project Description:
This project is in preparation for major asphalt resurfacing to all of Saguaro Boulevard from Shea
Boulevard to Fountain Hills Boulevard. (08-09) Saguaro Boulevard was originally constructed
and paved in the early 1970’s and has never received any major improvements since that time.
Funding Request: $650,000
Funding Source: Capital Projects Fund
Timeline: July 1, 2007 – June 30, 2008
Justification:
Presently Saguaro Boulevard has several locations that need drainage improvements, some major
and some minor. These improvements would remove the drainage from Saguaro, therefore
minimizing standing water at several critical locations. One of these major projects consists of a
42” culvert that would run along Saguaro Boulevard, from Palisades to Parkview, and into
Fountain Park. Another is Malta Drive and Saguaro where insufficient drainage exists along the
west side. Several other misc. catch-basins will need to be installed where structures are non-
existent and culvert pipes need to be installed. Other considerations will need to be conduit
installations for future traffic signal installations, curb repairs and possible median modifications.
218
Sidewalk Programs
Project Number: S6006
Project Name: Fountain Hills Boulevard Sidewalk from Fayette to Fountain
Hills Middle School.
Project Description:
In 2004 the Town applied for a CMAQ grant that was approved by the Maricopa Association of
Governments (MAG) to provide sidewalks along Fountain Hills Boulevard from Fayette to the
Middle School. The project will include a sidewalk on the west side of Fountain Hills Boulevard
from Oxford Drive to Glenbrook Boulevard and the east side of Fountain Hills Boulevard from
Fayette to El Pueblo and from Glenbrook to the Middle School.
Funding Request: $90,000 for design and review
The project cost is $755,000
Funding Source: General Fund, Public Works
$254,000 Congestion Mitigation & Air Quality (CMAQ) grant
$401,000 General Funds
Timeline: Design from FY07-08, construction from FY08-09.
Justification:
The project will provide a link between McDowell Mountain School, Fountain Hills Middle
School, the Private Schools along Fountain Hills Boulevard and Four Peaks Elementary School.
_____________________________________________________________________________
Project Number: S6007
Project Name: Town Wide Sidewalk Program
Project Description:
This project consists of six locations where sidewalk gaps exist or are being extended into
neighborhood locations. The total proposed distance to construct is 3,539 LF.
Funding Request: $164,869
Funding Source: Capitol Projects Fund
Timeline: July 1, 2007 – June 30, 2008
Justification:
This project is a first step to working on the Strategic Plan Goal of Enhancing Pedestrian Safety.
219
Shea Boulevard Improvements
Project Number: S6001
Project Name: Shea Boulevard Climbing Lane from Fountain Hills
Boulevard to Palisades Boulevard design
Project Description:
In 2001 the Town applied for a grant to make improvements to Shea Boulevard from Fountain
Hills Boulevard to Palisades Boulevard and the grant was approved.
Funding Request: This fiscal year request of $372,345 is for design only.
The total project cost is $1,919,000 with a grant for $1,076,000
and a Town cost of $843,920.
Funding Source: General Fund, Public Works (FY08)
Surface Transportation Planning (STP) Grant and General Fund
(FY09 & beyond)
Timeline: The project began design in 2007 and will be complete in 2008.
Construction is scheduled for 2008 and 2009.
Justification:
The pavement along this portion of Shea Boulevard is a long steep westbound uphill grade
(maximum grade is 5%-6% for 2200’). This uphill grade forces many of the large, heavily loaded
trucks to slow and use lower gears. Mile long holiday weekend backups (Sunday or Monday
P.M.) have been common on this road segment. Improvements to this section of pavement will
include the addition of a third lane of pavement on the north side of Shea, a bike lane, curb and
gutter, and a sidewalk. In addition, intersection improvements and lane improvements will be
include at the intersection of Shea and Fountain Hills Boulevard and Shea and Palisades
Boulevard. The project will also include interconnecting the traffic signals along Shea Boulevard
from Fountain Hills Boulevard, Palisades Boulevard, and Eagle Mountain Parkway.
220
Project Number: S6005
Project Name: Shea Boulevard Widening (Saguaro to Technology) design
Project Description:
In 2005 the Town applied for a grant to improve Shea Boulevard to provide the addition of three
lanes of pavement along Shea from Saguaro to Palisades. The grant application was approved by
the Maricopa Association of Governments (MAG) and scheduled for fiscal year 2008 to begin
design.
Funding Request: $210,000 this fiscal year for design
The project cost was estimated at $7,200,000
grant for $5,000,000 (70%)
local project cost of $2,200,000 (30%).
Funding Source: General Fund, Public Works (FY08)
Regional Area Road Fund (RARF) Grant and General Funds
Timeline: The first section is scheduled to begin design 07-08
Completion of design in 08-09
Construction is scheduled to start in 09-10
Justification:
Due to the dollar amounts of this project, the Town staff split the project into two sections. The
first section is from Saguaro to Technology. The balance of the project will be deferred
approximately 15 years in the future. These improvements will improve the intersection of
Saguaro and Shea with additional turn lanes, provide an interconnect of the traffic signals along
Shea at Saguaro, Center and Technology.
221
Equipment
Project Number: E2001
Project Name: Street Sweeper (Streets Heavy Equipment)
Project Description:
To replace a 1999 non- compliant street sweeper with a PM-10 compliant sweeper and to comply
with the Best Management Practices (BMP’s) of the Stormwater Management Plan.
Funding Request: $200,000
Funding Source: $180,000 Maricopa Association of Government (MAG) Grant
$20,000 (10%) matching funds (Streets)
Timeline: July 1, 2007 – June 30, 2008
Justification:
The Town will then have two PM-10 compliant sweepers for street maintenance.
______________________________________________________________________________
Project Number: E2008
Project Name: Fire Pumper Truck (Streets Heavy Equipment)
Project Description:
To replace an 18 year old fire pumper truck; the unit will meet all NFPA 1901 and ISO
requirements. Light weight with a short wheel base and 55% cramp angle configuration for the
front end. This unit will be built for 20 year service life.
Funding Request: $360,500
Funding Source: Capital Projects Fund
Timeline: August, 2007 approval with delivery prior to June 30, 2008
Justification:
This unit will replace a unit that currently has 140,000 miles on it, will be able to turn and operate
in short areas such as long serpentine driveways with grade, will be quick/fast with the
corresponding brake system, allowing for decreased response times. It will also be able to handle
structure and wildland fire emergencies, as well as EMS and mountain rescue. It has capacity to
provide electrical power for all emergency scenes, day or night and will have a 20 year service
life. The unit that is being replaced will become a reserve piece of equipment when others are in
for maintenance.
222
Traffic Signals
Project Number: T5003
Project Name: Traffic Signal at Palisades Blvd. and Sunridge Drive
Project Description:
Traffic signal at Palisades Boulevard and Sunridge Drive
Funding Request: $441,000
Funding Source: Development Fees
Timeline: July 1, 2007 – June 30, 2008.
Justification:
The intersection of Palisades Blvd. and Sunridge Drive currently meets the following MUTCD
traffic signal warrants (as determined by CK Engineering in their March 2007 “Traffic Signal
Warrant Study at Palisades Boulevard & Sunridge Drive”):
#2. Four-Hour Vehicular Volume
#3. Peak Hour Vehicular Volume
#8. Roadway Network
223
Town of Fountain Hills
Budget Schedules/Summaries
Authorized Positions
Pay Plan
224
225
226
227
228
Pay Plan
The Town Council last adopted the pay plan for the Town of Fountain Hills in June 2006. It is
imperative that the salary ranges for each position be updated on a regular basis to remain
competitive in the market. Consequently, the Human Resources division has surveyed the salary
ranges from competing towns and cities for like positions. The information from those surveys
has resulted in the proposed pay plan for the 2007-08 fiscal year.
Explanation of the Pay Plan
1. All Town positions, except that of Town Manager and Presiding Judge, are classified and
covered in the pay plan.
2. Persons shall be recruited into the municipal service at the appropriate salary within that
position, according to experience and/or market demand.
3. Advancement within the salary range shall be obtained on the basis of merit.
4. Human Resources recommends incremental increases based on the performance
evaluation written by the employee’s supervisor. The Town Manager is authorized to
place the salary of each employee at a rate of pay within the salary range for the position
title to which said employee is assigned. The rates of pay so established for various
employees shall be effective at the time of review.
5. Increases may be granted after six months of service and annually thereafter.
6. The Town Manager shall make whatever administrative regulations, not inconsistent with
the plan or the ordinances of the Town of Fountain Hills, he/she deems necessary, for the
effective administration of the plan.
7. Employees in section 1 are exempt and are not eligible for any overtime compensation.
Employees in section 2 are non-exempt and therefore entitled to overtime compensation.
8. The pay plan shall be reviewed annually.
9. The minimum and maximum rates and the ranges constituting the salary range of a
position title shall supersede any previously adopted for said title.
229
Position Title
Public Works Director 77,124 109,678 74,153 - 105,453
Finance Director 74,886 106,495 72,987 - 103,795
Assistant Public Works Director 71,277 101,363 69,067 - 98,220
Town Engineer 68,504 97,420 65,301 - 92,865
Parks & Recreation/Community Center Director 67,268 95,662 65,301 - 92,865
Planning & Zoning Director 66,293 94,275 -
Assistant to the Town Manager 65,864 93,665 -
Human Resources Administrator/Risk Manager 64,072 91,117 60,684 - 86,299
Court Administrator 64,072 91,117 59,774 - 85,005
Town Clerk 56,285 80,043 54,876 - 78,039
Chief Building Official 54,891 78,061 54,611 - 77,662
Senior Planner 54,891 78,061 53,455 - 76,018
Public Information Officer 51,529 73,279 -
Street Superintendent 49,687 70,660 48,259 - 68,629
Information Technology Coordinator 48,610 69,128 48,259 - 68,629
Recreation Supervisor 48,610 69,128 46,635 - 66,320
Parks Supervisor 47,371 67,366 45,934 - 65,323
Community Center Supervisor 46,971 66,797 45,934 - 65,323
Planner 44,998 63,992 44,998 - 63,992
Executive Assistant to Town Manager/Council 43,357 61,658 41,815 - 59,465
Accounting Supervisor 42,629 60,623 -
Facilities Supervisor 40,733 57,926 39,253 - 55,822
Community Center Operations Supervisor 39,253 55,821 39,253 - 55,822
Recreation Program Coordinator 37,920 53,926 34,766 - 49,441
Exempt Positions
Previous RangeMinimum Maximum
230
Position Title
Civil Engineer 26.05 37.05 24.78 - 35.24
Senior Building Inspector 23.71 33.71 22.97 - 32.67
Plans Examiner 21.90 31.14 21.90 31.14
Building Inspector 20.97 29.82 19.64 - 27.93
Engineering Assistant/CAD Technician 20.39 29.00 20.39 - 29.00
Civil Engineer Inspector 19.54 27.79 18.22 - 25.91
Senior Code Enforcement Officer 19.54 27.79 -
Park Operations Lead 17.89 25.44 17.19 24.45
Park Ranger 17.89 25.44 -
Open Space/Landscape Specialist 17.89 25.44 17.19 - 24.45
Code Enforcement Officer 17.89 25.44 17.19 - 24.45
Fleet Mechanic 16.56 23.55 16.56 - 23.55
Facilities Maintenance Technician 15.98 22.73 15.49 - 22.03
Executive Assistant 15.98 22.73 15.15 - 21.54
Administrative Assistant 15.04 22.27 15.04 - 21.39
Building Permit Technician 15.04 22.27 14.52 - 20.65
Senior Court Clerk 15.04 21.39 14.93 - 21.23
Street Maintenance Technician 14.47 21.23 14.04 - 19.96
Court Clerk 13.75 19.55 13.75 - 19.55
Accounting Clerk 13.75 19.55 12.51 - 17.79
Customer Service Representative 13.75 19.55 11.74 - 16.70
Maintenance/Custodial Worker 12.92 18.37 12.51 - 17.79
Groundskeeper 11.74 16.72 11.74 - 16.72
Receptionist 11.37 16.19 -
Custodian 10.64 15.13 10.10 - 14.36
Operations Support Worker 10.64 15.13 10.10 - 14.36
Recreation Assistant 9.37 13.33 9.08 - 12.91
Recreation Aide 8.39 11.93 8.00 - 11.38
Operations Support Assistant 8.39 11.93 8.00 - 11.38
Non-Exempt Positions
Previous RangeMinimum Maximum
231
Fiscal Year 2007-08
Park / Trail Ranger
Budget Justification
The enforcement of the Town Code specific to parks remains an issue. Currently, the Maricopa
County Sheriff Office (MCSO) has overall law enforcement across the county and in Fountain
Hills. Because of the breadth of service that the MCSO provide and the breadth over which they
provide that service, understandably the enforcement of code issues in parks is not their highest
priority. Further, issues such as park vandalism have continued to increase in not only the
number of incidents but their severity and dollar cost to the community. These issues will likely
only increase further as the Town continues to grow. As additional recreational amenities are
added such as a skate park, trailhead locations and park entry/exit gates, the need for opening and
closing these amenities in a consistent and timely manner is also growing.
Currently, the supervision of the part-time staff in the parks, who are almost exclusively young
people, is lacking. These Ranger positions would cover the parks on weekdays from mid-
afternoon to the 11: 00 pm closing time, and on weekends and holidays from 6:00 am to 11:00
pm to provide the necessary supervision.
Lastly, the Department has assumed the responsibility for all maintenance and enforcement of
rules throughout the Town’s growing trail system, which now includes 1.7 mile of trails in the
subdivisions adjacent to Fountain Park and 3.88 miles of trails in the McDowell Mountain
Preserve. This brings the total of maintained and enforcement miles to 5.58 with additional
mileage to come with the potential for an additional access to the Preserve.
The responsibility for ongoing maintenance of the Town’s trail system and the enforcement of
rules for the trails would also be performed by these positions.
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Budget Glossary
Account
A separate financial reporting unit for budgeting,
management or accounting purposes. All
budgetary transactions, whether revenue or
expenditure, are recorded in accounts. Several
related accounts may be grouped together in a
fund. A list is called a chart of accounts.
Accounting Standards
The generally accepted accounting principles
(GAAP) promulgated by the Governmental
Accounting Standards Board (GASB) that guide
the recording and reporting of financial
information by state and local governments.
Accrual Basis Accounting
A basis of accounting in which transactions
are recognized at the time they are incurred,
as opposed to when cash is received or sent.
Actual vs. Budgeted
Difference between the amounts projected
(budgeted) in revenues or expenditures at
the beginning of the fiscal year and the
actual receipts or expenses, which are
incurred by the end of the fiscal year.
Ad Valorem Taxes
Commonly referred to as property taxes.
The charges levied on all real, and certain
personal property according to the
property’s assessed value and the tax rate.
Used as a source of monies to pay general
obligation debt and to support the general
fund.
Adoption
Formal action by the Town Council, which
sets the spending limits for the fiscal years.
Appropriation
Specific amount of monies authorized by the
Council for the purpose of incurring
obligations and acquiring goods and
services.
Assessed Valuation
A value set upon real and personal property
by the Maricopa County Assessor for the
purpose of levying property taxes.
Asset
The resources and property of the Town that
can be used or applied to cover liabilities.
Audit Report
The report prepared by an auditor covering
the audit or investigation of an entity’s
financial position for a given period of time,
usually a year. As a general rule, the report
should include: 1) a statement of the scope
of the audit; 2) explanatory comments
concerning exceptions from generally
accepted auditing standards; 3) opinions; 4)
explanatory comments concerning
verification procedures; 5) financial
statements and schedules; and 6) statistical
tables, supplementary comments and
recommendations. The auditors signature
follows 3). The Townis required to have an
annual audit conducted by qualified certified
public accountants.
Balanced Budget
Arizona law (Title 42 Arizona Revised
Statutes) requires the Town Council to
annually adopt a balanced budget by
purpose of public expense. State law
defines this balanced budget as “the primary
property tax levy, when added together with
all other available resources, must equal
these expenditures.” The total of proposed
expenditures will not exceed the total of
estimated revenues and fund balances.
Base Budget
The ongoing expense for personnel,
contractual services, commodities, and the
replacement of equipment to maintain
service levels previously established by the
Council.
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Bond
A written promise to pay a specified sum of
money (called the principal amount) at a
specified date or dates in the future (called
the maturity dates), and carrying interest at a
specified rate, usually paid periodically.
The difference between a bond aand a note
is that a bond is issued for a longer period
and requires greater legal formality.
Bonds are primarily used to finance capital
projects. The most common types of bonds
are:
• General Obligation (GO)
Bond
This type of bond is secured by the
full faith, credit, and taxing power
of the municipality.
• Revenue Bond
This type of bond is secured by the
revenues from a specific source
such as gas taxes or water revenues.
Budget
A financial plan of estimated expenditures
and anticipated resources adopted for a
specific period of time outlining a plan for
achieving council goals and objectives.
Budgetary Basis
The method used to determine when
revenues and expenditures are recognized
for budgetary purposes.
Capital Budget
A spending plan for improvements to or
acquisition of land, facilities and
infrastructure that balances revenues and
expenditures, specifies the sources of
revenues, and lists each project or
acquisition. Normally a capital budget must
be approved by the legislative body. The
capital budget and accompanying
appropriation ordinance may be included in
a consolidated budget document that has a
section devoted to capital expenditures and
another to operating expenditures. Or two
separate documents may be prepared – one
for the capital budget and one for the
operating budget.
Capital Improvements
Expenditures for the construction, purchase
or renovation of Town facilities or property.
Capital Outlay
Expenditures resulting in the acquisition of
or addition to the Town’s fixed assets.
Carry Over
Year-end savings that can be carried forward
to cover any one-time expenses such as
supplies, equipment, or special contracts.
Cash Basis
A basis of accounting in which transactions
are recognized only when cash amounts are
increased or decreased.
Contingency/Reserve
An amount set aside as available, with
Council approval, to cover unforeseen
expenditures, emergency expenditures, or
revenue short falls.
Debt Limit
Statutory or constitutional limit on the
principal amount of debt that an issuer may
incur (or that it may have outstanding at any
one time).
Debt Ratio
Total debt divided by total assets.
Debt Service
Principal and interest payments on outstanding
bonds.
Debt Service Fund
One or more funds established to account for
revenues used to repay the principal and interest
on debt.
Department
A functional group of the Town with related
activities aimed at accomplishing a major Town
service or program.
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Division
A grouping of related activities within a
particular department (example, Senior Services
is a division of Parks & Recreation).
Estimated Revenue
The amount of projected revenue to be collected
during the fiscal year.
Expenditure
If accounts are kept on the accrual basis, this
term designates total charges incurred, whether
paid or unpaid. If they are kept on the cash
basis, the term covers only actual disbursements
for these purposes.
Expenditure Limitation
An amendment to the Arizona State
Constitution that limits annual expenditures
of all municipalities. The Economic
Estimates Commission, based on population
growth and inflation sets the limit. All
municipalities have the option of Home Rule
where the voters approve a four-year
expenditure limit based on revenues
received.
Fiscal Year
Any period of twelve consecutive months
establishing the beginning and the ending of
financial transactions. For the Town of
Fountain Hills, this period begins July 1 and
ends June 30.
Full-Time Equivalent Position (FTE)
A position converted to the decimal
equivalent of a full-time position based on
2,080 hours per year. For example, a part-
time typist working for 20 hours per week
would be equivalent to a 0.5 FTE.
Fund
A fiscal and accounting entity with a self-
balancing set of accounts recording cash and
other financial resources.
Fund Balance
A balance or carry over that occurs when
actual revenues exceed budgeted revenues
and/or when actual expenditures are less
than budgeted expenditures.
General Fund
The major fund in most governmental
entities. While other funds tend to be
restricted to a single purpose, the general
fund is a catch all for general government
purposes. The General Fund contains the
activities commonly associated with
municipal government, such as police and
fire protection, parks and recreation.
Highway Users Revenue Bond
Proceeds used solely for street and highway
purposes and require voter authorization.
Bonds are payable from highway user
revenue up to 50% of total received for the
past twelve month period (stipulated by state
law).
Highway Users Revenue Fund (HURF)
This revenue source consists of state taxes
collected on gasoline, vehicle licenses, and a
number of other additional transportation
related fees. These funds must be used for
street and highway purposes.
Infrastructure
Facilities that support the continuance and
growth of a community. Examples include
roads, water lines, sewers, public buildings,
and parks.
Intergovernmental Revenue
Federal and state grants and other forms of
revenue (e.g. state sales tax, state income
tax, gasoline tax, motor vehicle license).
Long Term Debt
Debt with a maturity of more than one year after
date of issuance.
Management Indicators
A measurable means of evaluating impact of
budget on achieving stated objectives.
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Modified Accrual Basis of Accounting
Basis of accounting according to which; a)
revenues are recognized in the accounting period
in which they become available and measurable,
and b) expenditures are recognized in the
accounting period in which the fund liability is
incurred, if measurable, except for un-matured
interest on general long-term debt and certain
similar accrued obligations, which should be
recognized when due.
Municipal Property Corporation (MPC)
Bond
Bonds that are backed by the excise taxes of
the Town including local sales tax, franchise
tax, state shared sales tax, and auto lieu tax.
The MPC is a non-profit corporation
established for the purpose of issuing debt to
purchase municipal facilities, which it leases
to the Town.
Objectives
A measurable output that an organization
strives to achieve within a designated time
frame. The achievement of the objective
advances an organization toward a
corresponding goal.
Operating Budget
Plans of current expenditures and the proposed
means of financing them. The annual operating
budget is the primary means by which most of
the financing activities of the Town are
controlled.
Ordinance
A formal legislative enactment by the Town
Council.
Performance Indicators
Measurement of service performance
indicators that reflect amount of money
spent on services and the resulting outcomes
at a specific level of services provided.
Property Tax
The total property tax levied by a
municipality. Arizona’s municipal property
tax system is divided into a primary and
secondary rate.
Primary Tax
Arizona statute limits the primary property
tax levy amount and municipalities may use
this tax for any purpose.
Secondary Rate
Arizona statute does not limit the secondary
tax levy amount and municipalities may
only use this levy to retire the principal and
interest or redemption charges on bond debt.
Resolution
A special or temporary order of the Town
Council. Requires less formality than an
ordinance.
Resources
Total amounts available for appropriation
including estimated revenues, bond/loan
proceeds, fund transfers, and beginning fund
balances.
Revenue
Financial resources received from taxes, user
charges, and other levels of government.
Revenue Bonds
Bonds whose principal and interest are payable
exclusively from earnings of a revenue
generating fund.
Special Revenue Fund
Accounts for the proceeds of specific revenue
sources that are legally restricted to expenditure
for specific purposes.
State-Shared Revenue
Includes the Town’s portion of state sales
tax revenues, state income tax receipts,
motor vehicle in-lieu taxes.
Tax Levy
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The total amount of the general property
taxes collected for purposes specified in the
Tax Levy Ordinance.
Tax Rate
The amount of tax levied for each $100 of
assessed valuation.
Transfer
Movement of resources between two
funds. Example: An interfund transfer
would include the transfer of operating
resources from the General Fund to the
Street Fund.
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“ A l l t h a t i s A r i z o n a ” 4 8 0 - 8 1 6 - 5 1 0 0 w w w . f h . a z . g o v
Town of Fountain Hills
16705 E. Avenue of the Fountains
Fountain Hills, AZ 85268
WELCOME TO FOUNTAIN HILLS