Loading...
HomeMy WebLinkAboutFY21 Adopted Budget Town of Fountain Hills Arizona 2 The Government Finance Officers Association of the United States and Canada (GFOA) presented a Distinguished Budget Presentation Award to the Town of Fountain Hills, Arizona, for its Annual Budget for the fiscal year beginning July 1, 2019. In order to receive this award, a governmental unit must publish a budget document that meets program criteria as a policy document, as a financial plan, as an operations guide, and as a communications device. This award is valid for a period of one year only. We believe our cur- rent budget continues to conform to program requirements, and we are submitting it to GFOA to determine its eligibility for another award. 3 Table of Contents TABLE OF CONTENTS INTRODUCTION This section will give the reader a brief overview of the budget process. The budget mes- sage from the Town Manager will summarize the goals of the Town Council and how the budget will aid in the accomplishment of those goals. Also provided here is a brief over- view of the Town as well as information about the Town Councilmembers. Budget Message 7 Community Profile 17 Town Council 29 FINANCIAL OVERVIEW This section provides a summary of the financial policies used by the Town and incorpo- rated into the budget, budget highlights, a detailed discussion of the revenues and ex- penditures of the Town and ends with an overview of the budget process. Financial Overview & Policies 39 Budget Highlights 87 Revenue Summary 101 Expenditure Summary 117 Budget Process & Schedule 124 GENERAL FUND This section begins with an organization chart of the Town and then details all depart- ments and divisions, missions, goals, and expenditures by programs and line items. Per- formance measures, accomplishments, and objectives are provided within each depart- ment section. General Fund 131 Organization Chart 132 Mayor & Town Council 133 Administration 138 Town Manager 146 Town Clerk 150 Administrative Services 153 Purchasing 156 Finance 159 Information Technology 163 Legal Services 167 Page 4 TABLE OF CONTENTS (cont.) General Government 169 Municipal Court 173 Public Works 179 Public Works 186 Facilities 190 Engineering 195 Development Services 197 Development Services 203 Building Safety 206 Code Compliance 209 Mapping & Graphics 212 Planning & Zoning 214 Community Services 217 Community Services 224 Community Center 228 Parks 231 Recreation 237 Senior Services 241 Law Enforcement 245 Fire & Emergency Medical 249 SPECIAL REVENUE FUNDS This section presents the special revenue funds of the Town. Fund expenditures are de- tailed here, similar to the information presented in the General Fund section. Special Revenue Funds 255 Streets Fund (HURF) 256 Excise Tax Funds 261 Downtown Strategy Fund 262 Economic Development Fund 264 Tourism Fund 267 Special Revenue Fund 273 Table of Contents Page 5 TABLE OF CONTENTS (cont.) Public Art Fund 276 Court Enhancement Fund 278 Environmental Fund 280 Cottonwoods Maintenance District Fund 284 DEBT SERVICE FUNDS This section presents a summary of the various debt service funds of the Town and Tax Levy and Tax Rate information. Debt Service Funds 286 General Obligation Bond Fund 288 Eagle Mountain CFD Bond Fund 290 Municipal Property Corp Bond Fund 291 CAPITAL PROJECTS FUND This section presents the Town’s Capital Projects Fund. Capital Improvement Program 294 Capital Projects Summary 299 Capital Projects Information Sheets 307 INTERNAL SERVICE FUNDS This section presents the Internal Service Funds of the Town. Facilities Replacement Fund 362 Technology Replacement Program 364 Vehicle Replacement Program 365 SCHEDULES This section presents information not found elsewhere in this budget document. Comprehensive Fee Schedule 372 Schedule of Authorized Positions 392 Pay Plan 395 Resolution 400 Glossary 403 Acronyms 417 Table of Contents Page 6 7 Budget Message HONORABLE MAYOR AND TOWN COUNCIL: I am pleased to submit the proposed operating budget for the Town of Fountain Hills for the fiscal year beginning on July 1, 2020, and ending June 30, 2021. The proposed budget is balanced and designed to convey to the public a message that articulates priorities and issues for the upcoming fiscal year. Although each fund should be viewed individually, the Town’s proposed total budg- et, including all funds is $33,901,492. It is important to note that the budget in- cludes the use of one-time sources of funding, such as one-time accumulated re- serves and grant funds. These funds cannot be relied upon for on-going operations of the Town. Department Directors and Supervisors, Finance staff, and the Town Manager are actively involved in the annual budget process. The primary focus is placed on the General Fund, which is the Town’s primary operating fund and supports core ser- vices. REVENUE AND EXPENDITURE FORECAST The recent coronavirus pandemic has highlighted the hazards of the Town’s reli- ance on sales tax revenue and State-shared revenues to fund ongoing operations. These two sources of revenue are extremely susceptible to changes in the national and state economies, and conditions can change rapidly as we have seen over the past few months. However, the Town did have nine strong months of sales tax col- lections before the pandemic hit, largely due to the recent 0.3% sales tax increase that took effect on October 1, 2019. In addition, it appears that actual FY20 ex- penditures will be under budgeted amounts for the General Fund. Even with the strong revenue headwind caused by the coronavirus, the Town will start FY21 in a stable position. The Town has diligently pared down expenditures while preserving the core ser- vices and amenities that make Fountain Hills a desirable place to live. In a number of critical service areas, staff members have taken on additional responsibilities and additional workload to help keep costs down. Where this was not possible, services were outsourced to knowledgeable and reliable vendors using state- compliant procurement methods. Despite these efforts, expenditures will outpace revenues in the near future. The primary issues facing the Town of Fountain Hills include:  Increased operating costs in order to maintain safe and sanitary buildings and amenities  Increased costs for maintenance, repair and/or replacement of aging infrastruc- ture (roads, buildings, parks, the Fountain, etc.) BUDGET MESSAGE June 2, 2020 8 Budget Message  Dependence upon State-shared revenues to fund operating expenditures  Dependence upon economically volatile local sales tax to fund operational ex- penditures and capital improvement projects  Decreased proportionate share of State-shared revenues due to increased pop- ulation of surrounding communities combined with negligible population growth or decreased population in Fountain Hills  Lack of a sustainable and diversified revenue base to fund ongoing operating costs  Potential state legislation impacting revenues, e.g., sweeping of State-shared revenue or unfunded mandates  Retaining adequate staffing levels to maintain current service levels  Public safety costs as an increasing proportion of total expenditures, resulting in less funding for other core services The chart below depicts the current ten-year forecast: REVENUE SOURCES The Town relies primarily on two main sources of revenue for operations: (1) State -shared revenues (sales, income and vehicle license taxes distributed proportion- ately by the State based on population); and (2) local sales tax. Combined, these two sources contribute 89% of the General Fund (35% and 54% respectively). At the time of this budget message, staff members are still waiting for the final updated State-shared revenue estimates from the Department of Revenue and the Department of Transportation. Even though the Town of Fountain Hills had a mod- est increase in State-shared revenues for the past few years, the revised amounts for FY21 will likely be less due to the effects of the coronavirus pandemic. Going forward, this important source of revenue is projected to be relatively flat and eventually decline over time as high growth cities will receive larger allocations of FY20-21 FY21-22 FY22-23 FY23-24 FY24-25 FY25-26 FY26-27 FY27-28 FY28-29 FY29-30 $- $5 $10 $15 $20 $25 $30 $35 MillionsFY21-30 Projected General Fund Revenues and Expenditures OPERATING REVENUES OPERATING EXPENDITURES 9 Budget Message State-shared revenue. The single largest revenue source for the Town of Fountain Hills is the local sales tax. The tax is collected by licensees on each taxable transaction in the Town, and it is then remitted to the Department of Revenue when the licensees file their sales tax return. The Department then distributes the local portion of the tax to the Town. The chart below demonstrates that overall local sales tax collections have in- creased since FY17 (Apr-Jun FY20 data not yet available): REVENUE OPTIONS The Town began exploring various revenue options in 2017 to offset increasing costs of core services, address deferred capital projects, including pavement man- agement, and to reduce the reliance on the local sales tax and State-shared reve- nue. Options have included increasing the annual environmental fee, establishing an annual public safety fee, increasing the residential rental sales tax rate, in- creasing franchise fees collected from utility companies, and a primary property tax. In October 2019, a 0.3% local sales tax increase was implemented, raising the tax rate to 2.9% for most categories. This increase did not apply to residential rentals, which remains at 1.6%. Past efforts to implement alternative revenue options were met with varying de- grees of resistance. Collection of an annual environmental fee began in January 2016, which helped to offset expenditures related to maintaining area washes and the storm water system. The environmental fee was not charged for calendar year 10 Budget Message 2020 because a similar fee was proposed for public safety expenditures. However, the Council did not pursue implementing such a fee, choosing to await a decision regarding a similar fee being charged by the City of Phoenix. Although the case was decided in favor of the City of Phoenix, a written opinion has not yet been is- sued. Once the opinion becomes available, the Council may reconsider a new pub- lic safety fee or the reintroduction of the environmental fee. Finally, a $7M primary property tax question was submitted to voters in May 2018, and that question was turned down by nearly a 2-to-1 margin. Without public outreach and support, any future primary property tax question is unlikely to fare any better. Another option for the funding of major capital projects is the issuance of General Obligation bonds, which are repaid by levying a secondary property tax, or Munici- pal Property Corporation bonds that are repaid using future revenues. These types of funding sources were used for the reconstruction of Saguaro Boulevard, and construction of Town Hall and the Community Center. As of July 1, 2020, the Town will not have any outstanding town-wide General Obligation or Municipal Property Corporation bonds. General Obligation bonds are the preferred method of funding for projects that will benefit residents for many years. This amortizes the cost of the project over a longer period of time so that those benefiting from the project are those contributing to it. BUDGET APPROACH In developing the proposed FY20-21 budget, each Department Director was given specific instructions to stay within the FY19-20 budget as the base budget for FY20 -21. Any new budget requests had to be submitted separately as supplemental budget requests. This process was designed to maintain the current level of effort for core services and streamline the process for justifying increases to the base budget. The criteria used to evaluate the supplemental requests are as follows:  Is there a dedicated revenue source to pay for the new program or service?  Is the budget request one-time or ongoing?  Does the supplement address issues involving operational efficiencies, safe- ty, a Council priority, or a Strategic Plan priority? By working with Department Directors to find operational efficiencies and identify- ing budget savings in the current budget, we were able to fund $384,818 in one- time supplemental budget needs and $77,879 in ongoing supplemental needs. CORE SERVICES BUDGET In developing the proposed budget, staff focused on a review of services delivered by the Town, increased scrutiny of expenditures, and prioritization of programs to be funded with limited resources. This proposed budget provides the following core services to Town citizens from the funding sources listed: 11 Budget Message CORE SERVICE – PUBLIC SAFETY One of the chief roles of government is to provide for the safety of its citizens. The citizens of Fountain Hills receive great value from the Town’s contracts for public safety with Maricopa County Sheriff’s Office and Rural/Metro Fire. Town funds that are expended for public safety services provided under these contracts are undeni- ably high quality and cost efficient. However, the fact remains that public safety costs, while essential, represent an ever-increasing proportion of the Town’s total expenditures. During the period from FY01-02 through FY19-20, Town total General Fund expenditures increased 22% while public safety costs increased 99% leaving reduced funding to pay for non-public safety core services. For FY20-21, public safety costs will increase by approximately $420,000. Public safety costs now represent about 52.7% of the General Fund’s budget. Two years ago, staff negotiated a new contract with Rural/Metro Fire to better an- ticipate the annual cost of fire and emergency services. The Town Council ap- proved a new multi-year agreement in 2018 with Rural/Metro Fire that caps future contractual increases to three percent annually. The intergovernmental agreement for law enforcement services with the Maricopa County Sheriff’s Office (MCSO) is based on the actual cost of services from the pri- or fiscal year. For FY20-21 the agency increased the cost of law enforcement ser- vices by 5.2%. The Town of Fountain Hills is predicting that the law enforcement services budget will continue to increase at an annual 10 percent rate due to in- creased costs tied to the Town’s proportionate share of MCSO’s underfunded liabil- ities in the Arizona Public Safety Personnel Retirement System. Nearly all of the municipalities and local governments participating in the Public Safety Personnel Retirement System will be experiencing unprecedented contribution rate increases for the foreseeable future. FY19-20 FY20-21 Funding Source Public Safety $8,807,219 9,226,799 General Fund General Government 1,489,511 2,256,931 General Fund Administration 2,686,126 2,986,798 General Fund Public Works 1,100,934 1,940,010 General Fund Development Services 1,100,290 946,484 General Fund Community Services 2,595,839 2,942,046 General Fund Excise Tax Funds - Downtown/ED/Tourism 582,985 487,936 Excise Tax Special Revenue Funds 7,751,739 7,156,157 Special Revenue Debt Service 2,378,862 408,600 Debt Service Capital Funds 4,069,194 5,497,230 CIP $32,562,699 $33,848,991 12 The chart below demonstrates the proportion of total Town expenditures relative to public safety costs. RECOMMENDED STAFFING REQUESTS AND PERSONNEL CHANGES The proposed FY20-21 budget includes one new full-time Groundskeeper II posi- tion and an increase of 0.25 FTE to an existing part-time Customer Service Repre- sentative II position, both in the Community Services Department. The Groundskeeper II position is needed to assist in maintaining the recently added Fountain Park restrooms, Avenue of the Fountains linear park, and Adero trail- head. The increase for the existing part-time Customer Service Representative II position from 0.35 FTE to 0.60 FTE is a result of rising demand in Home Delivered Meals and increased Community Center activity. These positions will add approxi- mately $77,500 in wages and benefits to the General Fund budget on an annual basis. The FY20-21 budget also includes minor reclassifications of positions. After review- ing the Town’s classifications, I am recommending the reclassification of the fol- lowing positions:  Facilities/Environmental Supervisor to Facilities Supervisor  Communications and Marketing Coordinator to Community Relations Manager  Economic Development Analyst to Economic Development and Tourism Specialist Budget Message $0 $2 $4 $6 $8 $10 $12 $14 $16 $18 $20 FY01-02 FY05-06 FY09-10 FY13-14 FY17-18MillionsPublic Safety Costs vs. Total General Fund Expenditures Public Safety Costs Total General Fund Expenditures 13 Budget Message WAGES AND BENEFITS Originally, the FY20-21 budget included a cost of living increase of 2.5% for all employees. This recommendation was removed for the first half of the fiscal year. If revenue collections are realized as projected, employees will receive a 2.5% in- crease after January 1, 2020. The cost for the salary adjustments is $67,300. In FY20-21 the Town’s portion of employee medical, dental, vision, and other health-related benefits will increase by $42,300 or 9.8%. MINOR REORGANIZATION The former Communications and Marketing Coordinator position reported to the Economic Development Director. As the Town’s communications needs have evolved, it is my recommendation that the reclassified Community Relations Man- ager position report directly to my office. This will provide for improved communi- cations to the Town’s residents and business owners. The tourism function will be incorporated into the newly reclassified Economic Development and Tourism Spe- cialist. COMMUNITY CONTRACTS Over the years, a number of non-profit organizations have received grants in aid from the Town of Fountain Hills in exchange for providing services to the commu- nity. Recognizing that the Town does not have the resources to continue funding these non-profits in the long-term, the Town Council reduced the funding of the community contracts by ten percent from the previous fiscal year. Based on the policy direction from last fiscal year, the funding for community contracts in FY20- 21 has been reduced by another ten percent from FY19-20 funding levels. The on- ly organization exempt from this reduction is the Extended Hands Food Bank, which provides much needed human service needs in our community. CAPITAL IMPROVEMENT PROGRAM The Town of Fountain Hills remains committed to funding one-time capital projects with one-time revenue sources. Whenever possible, the Town utilizes grants and other outside funding sources to complete projects. The Five-Year Capital Improvement Program, which represents an investment in public facilities and infrastructure, totals $24,810,000 in FY20-21, down from $27,211,000 in FY19-20, or an 8.8% decrease from previous fiscal year. The Town Council previewed the proposed Capital Improvement Program for FY20-21 at the Council Retreat on February 24, 2020 and provided direction and prioritization of the proposed projects at the Budget Workshop, a special session, held on April 14, 2020. As was discussed with the Town Council, the Town Manager plans to review the Town’s finances with the Town Council on a quarterly basis beginning this Fall. As was recommended by the Town Council at the April 14, 2020 meeting, the Town will proceed with the following Council high priority capital projects – Pano- rama Drainage repairs, La Montana/Ave. of the Fountains Roundabout, Golden Ea- gle Dam, and the Fountain Lighting Infrastructure project. All of the other projects will be on hold until the Town Council believes it is prudent based on revenues to move forward with them. 14 STRATEGIC PLAN In past years, the Town’s Strategic Plan has provided considerable direction to the Town Council and staff regarding the expenditure of resources to accomplish its goals, objectives, and tasks. Since the 2017 Strategic Plan, located on page 136, is set to expire and be replaced later in 2020-21, the proposed FY 20-21 budget is not impacted by the plan. However, as in past years, the Strategic Plan will likely impact future proposed budgets after the Town Council considers and adopts the Strategic Planning Advisory Commission’s recommended Strategic Plan in early 2021. BUDGET ASSUMPTIONS FOR FY20-21 AND BEYOND  Continued adherence to State-imposed Expenditure Limitations Law, which impacts the Town’s ability to budget proposed capital projects  Revenue projections are determined using both a trend analysis formula, as well as a flat percentage increase, but are estimates  A reduction in the distribution of State-shared revenues  Existing levels of service are maintained  An inflation factor of 2.5% has been added to existing budgets for Admin- istration, Public Works, Development Services and Community Services de- partments in future years  The law enforcement contract with Maricopa County Sheriff’s Office has been budgeted at an increase of 10.0%  The fire services contract with Rural/Metro Corporation is projected at a 3% increase for FY20-21 and beyond. The following chart provides General Fund projections through FY 24-25: Budget Message FY20-21 FY21-22 FY22-23 FY23-24 FY24-25 REVENUES Intergovernmental 6,840,900$ 6,920,654$ 6,963,197$ 7,006,907$ 7,051,417$ Permits, Licenses, Fees 941,593 914,936 937,379 939,788 943,695 Building Revenue $841,592 $511,907 $521,264 $417,056 $535,225 Local Taxes 10,634,201$ 10,882,733$ 11,384,888$ 11,760,270$ 12,135,651$ Total Revenues 19,258,286$ 19,230,230$ 19,806,728$ 20,124,021$ 20,665,988$ EXPENDITURES Mayor & Town Council 74,882$ 76,754$ 78,673$ 80,640$ 82,656$ General government 2,204,942 1,961,535 1,973,073 1,984,900 1,997,023 Administration 2,339,663 2,370,355 2,454,615 2,493,181 2,580,510 Municipal Court 402,604 412,669 422,986 433,561 444,400 Public Works 1,120,866 1,148,888 1,177,610 1,207,050 1,237,227 Development Services 946,484 970,147 994,401 1,019,261 1,044,742 Community Services 2,942,046 3,015,597 3,090,987 3,168,261 3,247,469 Public Safety (Police & Fire)9,226,799$ 9,855,666$ 10,538,606$ 11,280,760$ 12,087,778$ Total Expenditures 19,258,286$ 19,811,611 20,730,951 21,667,614 22,721,805 Surplus/(Deficit)-$ (581,381)$ (924,223)$ (1,543,593)$ (2,055,817)$ Five-year Budget Projection 15 Budget Message DISTINGUISHED BUDGET PRESENTATION AWARD For the past eighteen years, the Town of Fountain Hills has been awarded the Gov- ernment Finance Officers Association (GFOA) Distinguished Budget Presentation Award. Government entities that meet certain criteria in the presentation of their budget will receive this award. This budget message section is designed to provide the layperson with a broad view of the contents of the FY20-21 annual budget, its processes, issues and anticipated outcomes. A DEBT OF GRATITUDE A special thank you is extended to the Mayor and Town Council, our numerous Board and Commission members, and our 800 plus volunteers for their many hours of volunteer service without which the Town could not function in the fine manner it does. I would also like to thank the Town of Fountain Hills Department Directors and their staff members with this year’s budget process. The Directors and their staff attended several sessions with the Town Manager and Finance Division to justify programs, develop cost estimates, and answer questions. This team effort has re- sulted in a balanced budget that achieves the Town Council’s current goals and as- sists in planning for the future of Fountain Hills. Finally, I am extremely grateful to Finance Director David Pock and Accountant Beata Bogdan for their countless hours preparing and finalizing the FY20-21 annual budget. Respectfully submitted, Grady E. Miller Town Manager 16 Budget Message 17 Community Profile Community Profile 18 COMMUNITY PROFILE The Town of Fountain Hills overlooks the Verde River Valley and the east Valley of the metro Phoenix area. It is a master planned community estab- lished 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. The land was purchased by Robert McCulloch in the late 1960s and the community de- signed by Charles Wood, Jr. (designer of Disneyland in southern California). One of the community’s most valuable assets is its natural beauty. Incredible views and natural desert terrain pro- vide for a wide range of outdoor activi- ties including hiking, biking, and golf. In fact, Fountain Hills contains some of the more challenging and picturesque golf courses in the State of Arizona. The crown jewel of Fountain Hills is our beautiful fountain, which is one of the world's tallest man-made fountains. It serves as a focal point for the commu- nity and attracts thousands of visitors each year. The fountain is nestled in the center of a large man-made lake. With all three pumps and under ideal conditions, the plume of water rises 560 feet (171m) in height from a concrete water lily sculpture, though in normal operation only two of the pumps are used, with a fountain height of around 330 feet (101m). The fountain operates for 15 minutes at the top of every hour be- tween 9 AM and 9 PM, weather per- mitting. Fountain Hills is home to approxi- mately 125 pieces of Town-owned art- work throughout its downtown and at public buildings. Art is a significant part of the Town's heritage. The Public Art Committee and its parent organi- zation, the Fountain Hills Cultural and Civic Association, is the official repre- sentative of the Town in all matters dealing with the promotion of public art within Fountain Hills. From striking statues set against Fountain Hills’ mountain ranges to photography located inside public buildings, Fountain Hills has some- thing for everyone. A wide variety of fountains, bronze sculptures, and oth- er art types and media are available to be viewed. Residents and visitors are invited to take self guided tours, or take advantage of one of the “Art Walk” guided tours. Located on 13,006 acres of land, Fountain Hills is surrounded by the McDowell Mountains and Scottsdale on the west, the Fort McDowell Ya- vapai Nation on the east, the Salt Riv- er Pima-Maricopa Indian Community on the south, and the McDowell Moun- tain Regional Park on the north. The elevation is 1,520 feet at the fountain, 2,130 feet at the Golden Eagle Trail- head, and is approximately 500 feet above Phoenix. Over the past twenty-five plus years, Fountain Hills has grown from 10,190 residents to a Town of 23,899 in 2015. On June 5, 2006, the Town of Community Profile 19 Fountain Hills became twenty square miles and about ten percent larger by annexing 1,300 acres of State Trust Land. The process to annex the State Trust Land occurred over a two and one-half year period and development of the land will occur over the next decade. Annexing this property into the Town ensures that its future de- velopment will be of the highest quali- ty under the Town’s standards. With unparalleled scenic views of the sur- rounding rugged mountains, and the serenity of the Sonoran Desert, the Town carefully protects the native flo- ra, fauna, and scenic vistas. It is not unusual to see bobcats, javelina, jackrabbits or coyotes wandering the fringes of the community. Amongst the natural beauty, the Town contin- ues to attract residents who build their homes to take advantage of this environment. The Town offers a wide range of living accommodations, from small condo- minium complexes to large custom homes. Fountain Hills also offers rec- reational and cultural programs and services that contribute to a high quality of life for its residents. The community consists of primarily resi- dential property and open space; of the total 20.32 square miles of land, only 2.5% of the total is zoned com- mercial and/or industrial, 23.3% is preserved as open space and 51.0% is residential. Of the remaining land, 2,264 acres are developable, with 62 acres being zoned commercial (2.7%), 3 acres zoned industrial (0.1%), 72 acres for schools (3.2%) and 44 acres for lodging (1.9%). The Town provides or administers a full range of services including public safety (law enforcement, fire and emergency services); development services (code enforcement, planning and zoning); public works (including construction and maintenance of streets and infrastructure); municipal court; recreational activities; commu- nity center; senior services and cul- tural events. The Town does not maintain utility or other operations that require the establishment of en- terprise funds. Two hundred fifty-eight communities, including Fountain Hills, earned recog- nition from national non-profit Ka- BOOM! as 2017 Playful City USA com- munities honoring cities and towns that ensure kids get the balanced and active play they need to thrive. From forty-four states and the District of Columbia, the Playful City USA hon- orees range from eleven-time hon- orees to first-time recipients. In its 10th year, Playful City USA is a na- tional recognition program that honors cities and towns for taking bold steps to create more play opportunities for all kids. The International Festival and Events Association (IFE) honored the Town of Fountain Hills with three awards in 2018. This association highlights events from around the world with Community Profile 20 budgets ranging from less than $250,000 to well over $3 million. This year, Fountain Hills was highlighted as the GOLD winner for two separate cate- gories: Best Single Digital/Social Adver- tisement and Best Emergency Prepared- ness and Management Plan. The Town also garnered a SILVER award for Best Single Magazine Display Ad. These awards recognize the high quality mar- keting efforts Town staff produce to pro- mote our many events. The Arizona Office of Tourism recognized the Town’s tourism staff with the award for Outstanding Marketing Campaign for 2017 for its “Get Out of the Valley and into the Hills!” campaign. The campaign encouraged visitors to Arizona for major events such as the Waste Management Open, Spring Training Games, and the Final Four game. On January 8, 2018 the Town of Foun- tain Hills, Arizona was awarded the rare distinction of being designated an Inter- national Dark Sky Community by the In- ternational Dark Sky Association (IDA). It is one of only two International Dark Sky Communities located near a major metropolitan area. In total, only 16 communities in the world have previous- ly earned this prestigious designation. Fountain Hills’ low population density is a major reason it is such a desirable place to live. Unlike other regions of the Valley, one can dine, play, and com- mute, without congestion. Fountain Hills’ land is currently devel- oped at an average density of 1.5 dwell- ing units per acre for single family homes and 6.8 units per acre for multi- family housing. At the end of 2018, there were 915 va- cant single family lots and 158 vacant multi-family lots. Based upon the 2015 US Census popula- tion estimate figure of 23,899, Fountain Hills has an average of 1,176.1 people per square mile, or 1.84 people per acre. Community Profile 21 Demographics Community Profile * US CENSUS ** MAG ***US CENSUS, AMERICAN COMMUNITY SURVEY ****TOWN DEVELOPMENT SERVICES 22 Community Profile 23 Community Profile TOWN-WIDE BUILDING PERMITS ISSUED 24 TOWN-WIDE BUILDING PERMITS ISSUED *1998-2019 Valuation includes commercial building permits as well as tenant improvements. Community Profile COMMERCIAL BUILDING PERMITS ISSUED AND VALUATION 25 Public Schools Address 1. Fountain Hills High School 16100 E. Palisades Boulevard 2. Fountain Hills Middle School 15414 N. McDowell Mountain Road 3. McDowell Mountain Elementary School 14825 N. Fayette Drive Preschools Address 4. McDowell Mountain Preschool 14825 N. Fayette Drive 5. Creative Child Care Preschool 17150 E. Amhurst Drive 6. Here We Grow Learning Center 16901 E. Palisades Boulevard 7. Maxwell Preschool Academy 15249 N. Fountain Hills Boulevard 8. Promiseland Christian Preschool 15555 E. Bainbridge Avenue Charter School Address 9. Fountain Hills Charter School 16751 E. Glenbrook Boulevard East Valley Institute of Technology Address 10. EVIT—Fountain Hills Vocational Center 17300 E. Calaveras Avenue The Fountain Hills Unified School District has earned a reputation for excellent aca- demic programs, noteworthy student achievement, and high levels of parent and community involvement. Over the past several years, the district has earned re- spect throughout the state as a small, friendly, and high achieving system with well-trained and motivated staff (www.fhusd.org). Fountain Hills Schools Fountain Hills High School Fountain Hills Middle School McDowell Mountain Elementary School Community Profile 26 Community Profile 27 Community Profile Shopping Center Location Map 28 TOWN-WIDE LAND USE Community Profile 29 Town Council Town Council 30 Town Council Organization Chart FRONT ROW: Councilmember Dennis Brown, Mayor Ginny Dickey, Councilmember Alan Magazine BACK ROW: Vice Mayor Art Tolis, Councilmember Sherry Leckrone, Councilmember Mike Schar- now, Councilmember David Spelich 31 Town Council Ginny Dickey Mayor Ginny Dickey and her family chose Fountain Hills as their home town in 1983. Born and raised in NY, she followed her parents who had fallen in love with this desert community in the seventies. Her siblings all relocated to AZ, creating a foundation here that spans multiple gener- ations. Ginny holds a BS in Mathematics from Tufts University. She’s been a banker, a bookkeeper and a part-time teacher, in AZ, VT and NH. She was an AZ Senate staffer and an Assistant Director at the Dept. of Environmental Quality. After retiring from the State, she worked with the US Attor- ney’s Office as a neighborhood liaison with various partners including law enforce- ment. Inducted into the 2010 Hall of Fame, she participated in FH strategic planning ses- sions since 1984. She went from room mother to PTA Board, Site Council to elect- ed School Boardmember, where she served from 1994 to 2002, twice as President. Ginny was a Charter Member of the Arts Council and served on the Theater Board as Treasurer and accountant, earning their 2009 Founders Award. She performed in several AriZoni winning productions. In the Valley, she was a member of Busi- ness and Professional Women (Woman of the Year) and the Public Policy Chair for the American Association of University Women. Active in several statewide groups, she was an organizer for the AZ Women’s Hall of Fame at the Carnegie Library. Ginny served as Town Councilwoman for over eight years, co-chairing the Centen- nial Committee and sitting on the MAG Regional Domestic Violence Council until 2014. She helped raise funds for two public art pieces and co-organized a community unity event in 2017. Other activities include:  Justice Department, Recognition of Meritorious Service: Weed and Seed Program  League of AZ Cities and Towns Eight Years of Service and Dedication  Ten Years of Service Recognition to the State of AZ  ADEQ Constellation Team Award for Asarco efforts  ADEQ Constellation Team Award for Hazardous Air Pollutant/Mercury ef- forts  AZ School Boards Association Silver Cactus Pin; Gold Cactus Pin; Master of Boardsmanship  Panel speaker, Estrella Mt. Communi- ty College  Classroom speaker, ASU  Workshops, Coronado High School and Scottsdale Community College  Contributor, Sonoran/Lincoln Institute of Land Policy Working Paper  Falcon Leadership Mentoring Pro- gram, National School Boards Associ- ation, New Orleans Ginny is married to former teacher, FHUSD and EVIT Boardmember Jim Dick- ey, a retired Valley Metro and ADOT Ex- ecutive. Her family includes three sons – FHUSD graduates Mike, Brian and Frank Chin (Rutgers professor, Scottsdale Fire Captain, Philadelphia musician) plus Jim’s daughter and son, all their spouses and eight grandchildren. 32 Councilmember Dennis Brown and his wife, Judy, moved to Fountain Hills in 1996. In 1999, they opened their construction company, Echelon Company, building both commercial and residential products in Fountain Hills. Councilmember Brown was the Presi- dent of the Fountain Hills Licensed Contractors Association for five years from 2002 through 2007. In 2002, a Planning and Zoning Commission seat became available. He was ap- pointed to serve on the Commission and served for more than seven years, four of which were as Chair of the Commission. During his seven year tenure on the Planning and Zon- ing Commission, the Commission re- wrote the Town’s sign ordinance, passed the Saguaro protection ordi- nance, and wrote the Commercial Ar- chitectural Guidelines. Councilmember Brown and his wife have supported Little League baseball and football, the Fountain Hills Com- munity Theater, Movies in the Park, and numerous other local organiza- tions. They have two sons and one daughter who have given them five – count them five – granddaughters. Town Council Dennis Brown 33 Town Council Sherry Leckrone Councilmember Sherry Leckrone has lived in Fountain Hills since moving from Chicago, IL in late 2004. She has been an attorney for 27 years, and is licensed to practice law in Illi- nois and Arizona. Sherry received her Juris Doctorate Degree from Chicago- Kent College of Law in Chicago in 1990 graduating with honors while excelling on the Moot Court and Trial Advocacy Teams. Throughout her le- gal career she has volunteered in various roles, including in Illinois where she was the co-founder and President of the first Women’s Bar Society in Kankakee, Illinois. In Illinois she practiced as a federal prosecutor in the U.S. Attorney’s Of- fice, a county prosecutor, a public defender and in private practice han- dling criminal and civil litiga- tion. While in Chicago, she prosecut- ed complex white-collar crime, gov- ernmental fraud and public corrup- tion cases with the Cook County State’s Attorney’s Office and taught trial advocacy courses with her alma mater as an adjunct professor. She has over two decades of experience as a trial attorney and has spent a majority of her career as a prosecu- tor. During her service as a prosecutor with the Maricopa County Attorney’s Office she handled and tried felony and misdemeanor cases in a variety of Bureaus, including Pretrial, Trial Divi- sion, Repeat Offenders, Gangs, Justice Courts and Special Crimes. Most re- cently, she served as a Bureau Chief in the Special Crimes Bureau where she managed attorneys whose case- loads included homicide, sex traffick- ing, home invasion, gambling, identity theft, arson, animal cruelty, govern- mental fraud, weapon violations and bomb cases. As a public servant in both roles as a prosecutor and public defender, she sought justice on both sides of the aisle and negotiated to resolve cases with opposing counsel. Sherry’s keen sense for handling com- plex cases, solving problems and managing teams led to special recog- nition in multiple cases she prosecut- ed. Sherry has a passion for public service and for teaching. She served the Town of Fountain Hills as a Commis- sioner on the Planning and Zoning Commission from 2006 until 2010. She worked as a part-time adjunct professor teaching law related courses at Western International University. In addition to the leadership roles she held as an attorney, Sherry earned a Management and Leadership Institute Certificate from the ASU Bob Ramsey Executive Education program in 2015 and became a certified facilitator in The Leadership Challenge® in 2017. When she is not working, she enjoys writing, yoga, golfing, biking, hiking and anything that involves the out- door beauty that Arizona has to offer. Sherry has close family members in Arizona and Chicago. She enjoys liv- ing in Fountain Hills and is honored to serve its citizens in her role as a Councilmember. 34 Councilmember Alan Magazine was sworn in for his first term on the Town Council on December 4, 2014. Prior to that, he served for over five years on the Strategic Planning Advi- sory Commission, the last year as Chair. Born and raised in the Boston area, his entire career took place in Wash- ington, D.C. where he served as president of three organizations, the last being The Health Industry Manu- facturers Association. Additionally, he served on the staff of the Interna- tional City Management Association, as well as two four-year terms on the Fairfax County Board of Supervisors in Virginia. In the latter capacity, he represented the county on the Metro- politan Washington Council of Gov- ernments’ Board of Directors, as well as serving as Chairman of the North- ern Virginia Transportation Commis- sion. During his “retirement” in Fountain Hills, he has won numerous awards as a nature photographer. Councilmember Magazine received a Ph.D. from the University of Maryland in 1976. He has lived in Fountain Hills with his wife, Cynthia, since 2006. Magazine has two children and a granddaughter. Cynthia has two chil- dren from a previous marriage and four grandchildren. Town Council Alan Magazine 35 Councilmember Mike Scharnow start- ed working in Fountain Hills in 1983 and has resided here since 1990. He worked at “The Fountain Hills Times” for 32 years, many of those as edi- tor, before switching careers at the start of 2016 and becoming a finan- cial advisor for Thrivent Financial with an office in Fountain Hills. Mike has volunteered for a plethora of organizations and causes in Foun- tain Hills over the past three dec- ades. He currently is a 25-year mem- ber of the Noon Kiwanis Club and is on the board of directors for the Fountain Hills Youth Substance Abuse Prevention Coalition, the Lower Verde Valley Hall of Fame Foundation and Fountain Hills Sister Cities Corp. He was inducted into the Hall of Fame in 2009. He was founding chairman of the first Parks and Recreation Commission for the Town of Fountain Hills and helped provide input for the design of Gold- en Eagle Park, helped coordinate the first Turkey Trot and introduced the town’s first official recreation pro- gram. Mike has served as a church elder, helped organize the VisionFH pro- gram and was part of the organizing committee that launched the Foun- tain Hills Leadership Academy. He was named “Entrepreneur of the Year” for 2018 by the Fountain Hills Chamber of Commerce. He graduated from the University of Wisconsin in 1983 with Bachelor of Arts degrees in English, psychology and philosophy. Mike lives here with his wife, Brenda, and has two adult children who were raised in Fountain Hills. In his spare time he enjoys traveling with his wife, especially on their Harley-Davidson motorcycle. Town Council Mike Scharnow 36 Councilmember David Spelich gradu- ated with his degree in Mortuary Sci- ence and has worked as a funeral di- rector, criminal investigator for the Cook County Medical Examiner’s Of- fice, and, at the time of his retire- ment, was assigned as the Chicago Police Department’s Violent Crimes Detective Liaison to the Cook County Medical Examiner’s Office. He is co- author of a textbook on Medico-legal Death Investigations. David has a combined twenty-four years in law enforcement. The major- ity of his career in the Chicago Police Department was spent as a Violent Crimes detective. He also spent time working on the streets in a beat car, a diver on the Marine Unit, and an instructor at the CPD Police Academy. Currently, David works as an investi- gator for the State of Arizona Depart- ment of Education. David purchased a home in Fountain Hills in 2009 and, upon retiring from the Chicago Police Departments in 2014, became a full-time resident in Fountain Hills. Upon relocating to Arizona, David has been active in community affairs, at both state, county, and local levels. He is a member of the Sons of the American Legion, and the Fountain Hills Republican Club. In 2017 he as- sumed the duties of the 2nd vice president for that club. He currently serves as Republican Committeeman in LD23. He has volunteered on the Maricopa Cold Case Posse. After serving one year on the Governor’s Advisory Council on Aging (GACA), in 2018 he was appointed as Secretary of the Executive Board of the Gover- nor’s Advisory Council on Aging (GACA), where he remains an active member. Town Council David Spelich 37 Town Council Art Tolis Vice Mayor Art Tolis has been active in the Fountain Hills community for over 16 years. He has served on many boards and commissions including the Fountain Hills Chamber of Commerce (2003-2007), Treasurer of the Cham- ber in 2006, L. Alan Cruikshank River of Time Museum Board of Directors, Fountain Hills Realtor Marketing Chair/ Scottsdale Association of Realtors Board of Directors, the Town of Foun- tain Hills Planning & Zoning Commis- sion, Four Peaks Rotary (2016-2017 as President), and is a graduate of the first Fountain Hills Leadership Acade- my class. Prior to moving to Arizona, Art was active in Connecticut politics and also served on the Town Council for Berlin, Connecticut. He has a Bachelor’s Degree from Syracuse Uni- versity and a Master’s Certificate from Pacific Coast Banking School/ University of Washington. In addition to these community posi- tions, Art is the owner of Tolis Mort- gage Financial Group and is a licensed mortgage broker, realtor and insur- ance agent (life and health). Art is married to Heather Tolis and is the proud father to six children who are either currently attending or have graduated from the Fountain Hills Uni- fied School District. 38 Elected Officials’ Terms of Office Mayor: Ginny Dickey Term of Office: First term: December 2018—November 2020 Vice Mayor: Mike Scharnow Term of Office: First term: December 2018—November 2022 Councilmembers: Dennis Brown Term of Office: Partial term: May 2009—May 2012 Second term: June 2012—November 2016 Third term: December 2016—November 2020 Sherry Leckrone Term of Office: Partial term: October 2018—November 2020 Alan Magazine Term of Office: First term: December 2014—November 2018 Second term: December 2018—November 2022 David Spelich Term of Office: First term: December 2018—November 2022 Art Tolis Term of Office: First term: December 2016—November 2020 Town Council Terms of Office 39 Financial Overview & Policies Financial Overview & Policies 40 Financial Overview & Policies FUND STRUCTURE TOWN OF FOUNTAIN HILLS BUDGETARY FUNDS SPECIAL REVENUE FUNDS STREETS DOWNTOWN STRATEGY ECONOMIC DEVELOPMENT TOURISM SPECIAL REVENUE PUBLIC ART COURT ENHANCEMENT ENVIRONMENTAL COTTONWOODS MAINT DIST DEBT SERVICE FUNDS GENERAL OBLIGATIONS EAGLE MOUNTAIN MUNICIPAL PROPERTY CORP CAPITAL PROJECT FUNDS CAPITAL PROJECTS FIRE & EMS DEVELOPMENT STREETS DEVELOPMENT PARKS & REC DEVELOPMENT INTERNAL SERVICE FUNDS FACILITIES REPLACEMENT TECHNOLOGY REPLACEMENT VEHICLE REPLACEMENT GENERAL FUND 41 The preceding page depicts the budgetary funds of the Town. The table above rep- resents the departments of the Town and the funds that are used by those depart- ments. Financial Overview & Policies Total Proposed Budget Fund Type Fund Department Amount General Fund Total 19,258,286$ General Fund Mayor & Town Council 74,882 General Fund Administration 2,339,663 General Fund General Government 2,204,942 General Fund Municipal Court 402,604 General Fund Public Works 1,120,866 General Fund Development Services 946,484 General Fund Community Services 2,942,046 General Fund Law Enforcement 5,029,469 General Fund Fire & Emergency Medical 4,197,330 Fund Type Fund Department Amount Special Revenue Total 7,788,742$ Streets (HURF)Public Works 5,120,822 Downtown Strategy Fund Administration 38,400 Economic Development Fund Administration 241,270 Tourism Fund Administration 208,266 Special Revenue Fund Administration 1,338,500 Public Art Fund Community Services 144,649 Court Enhancement Fund Municipal Court 24,800 Environmental Fund Public Works 666,904 Cottonwoods Maintenance District Fund Administration 5,131 Fund Type Fund Department Amount Debt Service Total 408,600$ General Obligation Bond Fund Administration 350 Eagle Mountain CFD Fund Administration 407,240 Municipal Property Corporation Fund Administration 1,010 Fund Type Fund Department Amount Capital Projects Total 5,497,230$ Capital Projects Fund Administration, Community Services, Public Works 5,457,230 Development Fees Funds Fire, Public Works, Community Services 40,000 Fund Type Fund Department Amount Internal Service Total 896,133$ Facilities Replacement Fund Public Works 819,144 Internal Service Fund General Government 25,000 Vehicle Replacement Fund General Government 51,989 GRAND TOTAL ALL FUNDS 33,848,991$ FUND/DEPARTMENT STRUCTURE Governmental Funds 42 FUND STRUCTURE The accounts of the Town are organized on the basis of funds, each of which is considered a separate accounting entity. Operations of each fund are accounted for with a separate set of self-balancing accounts that comprise its assets, liabili- ties, fund equity, revenues and expenditures. Town 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 «The General Fund (Fund 100) is the primary operating fund of the Town and accounts for the resources and uses of various Fountain Hills depart- ments. It exists to account for the financing of services traditionally associated with local government. These services include police and fire protection, develop- ment services (planning & zoning/building safety/code enforcement/GIS), public works (facilities/engineering), community services (parks and recreation/ community center/senior services), general administration, and any other activity for which a special fund has not been created. Governmental accounting requires the General Fund be used for all financial resources except those required to be accounted for in another fund and have designations of non-spendable, restricted, committed, assigned or unassigned. Special Revenue Funds «Special Revenue Funds are used to account for the proceeds of specific revenue sources that are legally restricted to expenditures for specified purposes, designated as committed or restricted. The Town maintains the following Special Revenue Funds: «The Streets (HURF) Fund (Fund 200) is funded by .2% of local sales tax, State-shared revenues and transfers from the Capital Improvement Fund. The State of Arizona taxes motor fuels and collects a variety of fees and charges relat- ing to the registration and operation of motor vehicles. These revenues are depos- ited in the Arizona Highway User Revenue Fund (HURF) and are then distributed to the cities, towns, and counties and to the State Highway Fund. This fund may only be used for street and highway purposes and is a restricted fund. «The Downtown Strategy Fund (Fund 300) is a committed fund which may only be used for development of the downtown. Revenue for this fund comes from the 20% of the .1% of local sales tax collections that have been dedi- cated for this purpose. «The Economic Development Fund (Fund 310) is a committed fund which may only be used for economic development. Revenue for this fund comes from the 80% of the .1% of local sales tax collections that have been dedicated for this purpose. «The Tourism Fund (Fund 320) is a committed fund which may only be used for tourism. Revenue for this fund is provided by a transfer from the Eco- nomic Development Fund and grant money. Financial Overview & Policies 43 Financial Overview & Policies «The Special Revenue/Grants Fund (Fund 400) is restricted by the terms of the individual grants or program funds received. An example of this would be state or federal funds. These funds are to be used only for the specific program or programs for which the funds have been awarded and in accordance with all the grant conditions. «The Public Art Fund (Fund 410) is funded by developer in -lieu con- tributions. These funds may only be used for the maintenance of art and for the installation of this art throughout the community. This fund has a committed fund balance. «The Court Enhancement Fund (Fund 420) is a restricted fund which may only be used to enhance the technological, operational and security capabili- ties of the Fountain Hills Municipal Court and to support the operation of the Court collection program. Revenues are derived from court fees and bond forfeitures. «The Environmental Fund (Fund 460) is an assigned fund which may only be used to help offset the costs of stormwater management and air quality permit requirements as well as other environmental programs. These items in- clude, but are not limited to, permit fees, wash maintenance, ADWR dam inspec- tion and maintenance, street sweeping, storm drain cleaning and household haz- ardous waste disposal. Revenues are derived from the annual environmental fee billed to Town residents. «The Cottonwoods Maintenance District Fund (Fund 550) is a re- stricted fund which may only be used for maintenance of the Cottonwoods Mainte- nance District. Revenues are derived from a secondary property tax. Debt Service Funds Debt Service Funds are established for the payment of principal and inter- est on bonded indebtedness. Revenues are derived from a secondary property tax levy, and municipal property lease payments. (The 0.2% of local sales tax previ- ously dedicated to mountain preserve bonds has been redirected to the Highway User Revenue Fund for the pavement management program.) Revenues are re- ceived in amounts sufficient to pay the annual debt service payment; therefore, the fund balance will be no less than the annual debt service payment due on Ju- ly 1 of the new fiscal year plus an amount equal to the average annual delinquen- cy factor based on the prior three years’ delinquency rate, categorized as restrict- ed. Debt Service Funds include:  General Obligation Debt Service (Fund 510)  Eagle Mountain CFD Debt Service (Fund 520)  Municipal Property Corporation Debt Service (Fund 530) Capital Project Funds «Capital Project Funds are used for the acquisition and/or construction of major capital items including facilities, heavy equipment, technology, open space, park improvements, and major road improvements. 44 «The Capital Projects Fund (Fund 600) revenues are committed rev- enues derived from excess General Fund revenues and 50% of the construction related local sales tax. The Capital Projects Fund is the primary source of capital improvements funding for the Town. «The Development Fee Funds (Funds 710-770) are restricted funds which may only be used for the planning, design, and construction of public facili- ties serving the needs of the new development from which it was collected and designated as restricted. The Town has developed an Infrastructure Improvement Plan (IIP) that identifies each public improvement that is proposed to be the sub- ject of a development fee. This IIP is incorporated as part of the Town’s Capital Improvement Program (CIP). Development Fee funds now only include:  Fire & Emergency (Fund 720)  Streets (Fund 730)  Parks/Recreation (Fund 740) Internal Service Funds «The Internal Service Funds are used to account for the Town ’s busi- ness-type activities. These funds are considered self-supporting in that the ser- vices rendered are financed through user charges or are on a cost reimbursement basis. These funds are classified as having assigned fund balances. Internal Service Funds include:  Facilities Replacement Fund (610)  Technology Replacement Fund (Fund 800)  Vehicle Replacement Fund (Fund 810) BUDGETARY AND ACCOUNTING BASIS The budget is prepared on a budgetary basis of accounting for all fund types. Ex- penditures 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. This basis 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 dif- ferences between the budgetary and GAAP basis are:  Certain revenues, expenditures and transfers are not included on a budget- ary basis, but are accrued and reported on a GAAP basis. For example, in- creases or decreases in compensated absences are not reported for budget- ary purposes, but are presented as revenues or expenditures on a GAAP ba- sis.  Depreciation is not budgeted as an expense in budgetary accounting.  Capital outlays are an expenditure in budgetary accounting and an asset in GAAP. Financial Overview & Policies 45  Certain debt service principal and interest payments are accounted for as expenditures in the General Fund on a budgetary basis, 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. Operating and Capital Budget Relationship Included within the annual budget is a Capital Improvement Program presented on a budgetary basis. Capital project budget funding sources are matched with budg- eted expenditures. Governmental accounting procedures do not 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- ary basis which is a cash flow model. 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 fis- cal year two; however, the entire budget for this project would not be appropriat- ed 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 fiscal year two. Financial Overview & Policies 46 TOWN OF FOUNTAIN HILLS FINANCIAL POLICIES I. INTRODUCTION The Mayor and Town Council (the “Town Council”) of the Town of Fountain Hills (the “Town”) understands that 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 prin- ciples 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 pol- icies will be reviewed periodically to assure the highest standards of fiscal manage- ment. 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 Manag- er and staff have the primary role of reviewing and providing guidance in the fi- nancial area to the Town Council. II. OVERALL GOALS The overall financial goals underlying these principles are: 2.1 Fiscal Conservatism. To ensure that the Town is, at all times, in a solid fi- nancial 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 ser- vices. E. Adhering to the highest accounting and management practices as well as the financial reporting and budgeting standards established by the Government Finance Officers Association, by the Governmental Ac- counting Standards Board (GASB) and by other professional organiza- tions. 2.2 Maintaining Bond Rating. To maintain an Aa3 or better bond rating in the financial community to assure the Town taxpayers that the Town govern- ment is well managed and financially sound. 2.3 Stability. To have the ability to withstand local and regional economic fluctu- ations, 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. 2.4 Delivering Quality Services. To deliver quality services in an affordable, effi- cient and cost-effective basis providing full value for each tax dollar. Financial Overview & Policies 47 III. FUND BALANCE “Fund balance” is defined as the cumulative difference between a fund’s assets and its liabilities. The purpose of this policy is to establish a key element of the fi- nancial stability of the Town by setting guidelines for fund balance. It is essential that the Town maintain adequate levels of fund balance to mitigate financial risk that can occur from unforeseen revenue fluctuations, unanticipated expenditures, and similar circumstances. The fund balance also provides cash flow liquidity for the Town’s general operations. 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 or emergencies, and/or when unanticipated expenditures occur. The level of fund balance is related to the degree of uncertainty and risk that the Town faces. A prudent level of financial resources is necessary to protect against the need to reduce service levels due to temporary revenue shortfalls or unantici- pated one-time expenditures. With the Town’s dependency on local sales tax and State shared revenues, there is increased risk of revenue fluctuations due to the overall condition of the economy. Therefore, the level of reserves needs to be suf- ficient to ensure stability of governmental operations during a slowdown in the economy or legislative changes to the State’s revenue sharing formula. Fund balance is one of the most widely utilized elements of a government’s finan- cial statements. This measure of financial health is used by (1) residents, (2) state, county and local legislators and officials, (3) municipal bond analysts through credit reviews and ratings, (4) taxpayer associations, (5) research organi- zations and oversight bodies, and (6) reporters. Other factors that influence the level of fund balance are: 1. Credit reviews performed by municipal bond analysts. 2. Improving or preserving the Town’s bond rating. 3. Maintaining a positive trend in historical fund balances. 4. Maintaining a rating equal to or better than surrounding communities. The Governmental Accounting Standards Board (“GASB”) determined that the use- fulness and value of fund balance information was significantly reduced by misun- derstandings caused by inconsistent treatment and financial reporting practices of governments. As a result, GASB issued a pronouncement, GASB Statement No. 54 (“GASB 54”), which applies to the financial reports of all state and local govern- ments. GASB 54 improved financial reporting by providing fund balance classifica- tions that are more easily understood by the user. 3.1 Fund Balance Classifications. An accounting distinction is made between the various portions of fund balance reported in the Town’s financials. The five classifications are: (A) Non-spendable Fund Balance—Includes amounts either not in spendable form or legally or contractually required to be maintained intact. This amount includes inventory, pre-paid items, and non-current receivables such as long-term loan and notes receivable and property held for resale (unless the proceeds are restricted, committed or as- signed). Financial Overview & Policies 48 (B) Restricted Fund Balance —Includes amounts that are constrained for a specific purpose through restrictions either (1) externally imposed by creditors (such as through debt covenants), grantors, contributors, or laws or regulations of other governments or (2) imposed by law through constitutional provisions or enabling legislation. (C) Committed Fund Balance —Includes amounts that are committed for specific purposes by formal action of the Town Council. Although amounts designated “committed” are not legally restricted like restrict- ed fund balance, these committed amounts cannot be used for any oth- er purpose unless the Town Council removes or changes the limitation by taking the same form of action it employed to impose the limitation. The action to commit fund balances must occur prior to year-end; how- ever, actual amounts can be determined in the subsequent period. (D) Assigned Fund Balance —Includes amounts that are intended by the Town to be used for specific purposes but are neither restricted nor committed. Intent should be expressed by the Town Council itself or a subordinate high-level body or official possessing the authority to as- sign amounts to be used for specific purposes in accordance with policy established by the Town Council. This assignment would include any activity reported in a fund, other than the General Fund, that is not otherwise restricted more narrowly by the above definitions. The Town is not allowed to assign balances that result in a residual deficit in the fund. (E) Unassigned Fund Balance —Includes any remaining amounts after applying categories (A)-(D) above (non-spendable, restricted, commit- ted, or assigned). The General Fund is the only fund that will report a positive unassigned fund balance. 3.2 General Fund. The fund balance of the Town’s General Fund may consist of up to five clas- sifications, as described previously. In order to satisfy the objective of main- taining a bond rating equal to or better than surrounding peer communities, a combined fund balance of at least 30% of the average actual General Fund revenues for the preceding five fiscal years is recommended to be kept in the Committed, Assigned, and Unassigned classifications. A. Committed Fund Balance. The Town will maintain a Committed Fund Bal- ance in the General Fund of 20% of the average actual General Fund revenues for the preceding five fiscal years. The maintenance of this fund balance is a particularly important factor considered by credit rating agencies in their evaluation of the Town’s credit worthiness. (1) Stabilization Fund (Rainy Day Fund). As a component of the Gen- eral Fund’s Committed Fund Balance, the Town will maintain a Sta- bilization Fund that shall be designated for use in the event of an unanticipated expenditure or loss of revenue. The balance of the Stabilization Fund at the end of any fiscal year will be equal to a minimum of 20% of the average actual General Fund revenues for the preceding five fiscal years. (2) Stabilization Fund Guidelines. In order to achieve the objectives of Financial Overview & Policies 49 this policy, ensure financial stability, and to maintain sufficient oper- ating capital, the following guidelines shall be followed by the Town Council, Town Manager and Town Staff: (a) Increases to Fund. At the conclusion of the Town’s annual finan- cial audit, Town Staff shall determine the amount of revenues received by the General Fund in excess of expenditures and in- terfund transfers made from the General Fund for the year just audited. Transfers shall then be made as set forth herein until the Fund’s balance is equal to at least 20% of the average actual General Fund revenues for the preceding five fiscal years. (b) Decreases to Fund. The Stabilization Fund shall be decreased for only one or more of the following purposes and/or under the fol- lowing circumstances: (i) To replace the loss of more than 25% of the Town’s Transac- tion Privilege Tax revenue or State shared revenues. (ii) For any event that threatens the health, safety, or welfare of the Town’s citizens. (iii) For any event that threatens the financial stability of the Town. (iv) To address any matter declared as an emergency by the Governor or the Mayor. (c) Authorization of Use. All decreases in the Stabilization Fund shall be subject to the following: (i) Any decrease shall require the approval by at least 2/3 of the entire Town Council. (ii) The total of all decreases during a fiscal year shall not exceed one-half of the beginning fund balance plus any increases during the same fiscal year. (d) Replenishment Rules. Any amount transferred from the Stabiliza- tion Fund shall be replenished as follows: (i) All amounts shall be transferred back to the Fund within five years. At least 20% of the total amount originally transferred from the Fund shall be transferred back to the Fund in each of these five years. (ii) Replenishment transfers shall be appropriated as part of the annual budget process. B. Assigned Fund Balance. The Town will maintain an Assigned Fund Bal- ance, in such amounts as deemed necessary by the Town Manager, to systemically accumulate the replacement costs of certain fixed assets. As replacement purchases are made, fund balance will be replenished by charging the owning Department or Division amounts based on the esti- mated useful life and estimated future replacement value of the fixed as- Financial Overview & Policies 50 set. Budgeted expenditures of Assigned Fund Balance shall comply with Town policy. C. Unassigned Fund Balance. The Town will maintain an Unassigned Fund Bal- ance in the General Fund in an amount equal to 20% of the average actual General Fund revenues for the preceding five fiscal years. Funds in excess of the balances described in the preceding paragraphs will be Unassigned Fund Balance, unless otherwise assigned in accordance with GASB 54. Any reve- nues collected in excess of expenditures and interfund transfers made from the General Fund will be used to satisfy fund balance requirements first. Any remaining fund balance will be transferred to the Capital Projects Fund. During the annual budget process, the Town Manager will estimate the sur- plus or deficit for the current year and prepare a projection of the year-end fund balances by classification. Such projection will include an analysis of trends in fund balance levels on an historical and future projection basis. The Finance Director is authorized to assign available fund balance for spe- cific purposes in accordance with GASB 54. It is the Town’s policy that ex- penditures for which more than one category of fund balance might be used, Restricted Fund Balance used first, Committed Fund Balance used second, Assigned Fund balance used third, and Unassigned Fund Balance used last. 3.3 Special Revenue Funds. A. Streets Fund (HURF). The Streets Fund is used solely for street and highway purposes. The fund is mostly supported by contributions from the State’s Highway User Revenue Fund (HURF); however, the Town Council may also direct portions of other revenue sources to the fund in order to meet the needs of the Town’s Pavement Management Program. All HURF revenue received is included in Restricted Fund Balance. B. Excise Tax Funds. These funds are created by action of the Town Council, either by resolution or during the annual budget process, to track and report activities for a specified purpose. The resources in these funds are classified as Committed Fund Balance. 3.4 Debt Service Funds. The Debt Service Fund is established for the payment of principal and inter- est on bonded indebtedness and is classified as Restricted Fund Balance. Revenues may be derived from a property tax levy, pledged excise taxes, municipal property lease payments and shared revenues. Revenues are re- ceived in amounts sufficient to pay the annual debt service payment; there- fore, the restricted fund balance will be no less than the annual debt service payment due on July 1 of the new fiscal year and no more than the annual debt service payment due on July 1 plus an amount equal to the average annual delinquency factor based on the prior three years’ delinquency rates. 3.5 Capital Projects Fund. A. Capital Project Fund. A Capital Projects Fund has been established to al- low the Town to accumulate monies for: (1) purchase of land or build- ings; (2) improvements to Town-owned properties; (3) grant matches Financial Overview & Policies 51 associated with capital improvements; (4) public safety projects and equipment purchases; (5) economic development projects; and (6) such other capital projects as determined by the Town Council. The Capital Projects Fund will be funded by: (A) sales of real and personal property belonging to the Town; (B) General Fund transfer of any excess revenues (from the prior fiscal year) collected over budgeted and unexpended ap- propriations not needed to meet fund balance requirements or re- appropriation; and (C) interest earnings on the balance of the fund in- vested per the Town’s investment policy. B. Development Fee Funds. Accounted for separately, but considered part of the Capital Projects Fund, are accumulated development fees collected pursuant to ARIZ. REV. STAT. § 9-463.05 that are assessed on new con- struction for the purpose of funding growth. These funds are restricted to growth-related capital expenditures as designated in the Town’s adopted Infrastructure Improvements Plan. The fund balance will be established each fiscal year during the budget process depending on planned ex- penditures but cannot exceed accumulated revenues. The Town shall first be entitled to recoup the cost of any capital improvements, infra- structure, marketing or sales-related costs associated with the disposi- tion of property before crediting the Capital Projects Fund (for funds oth- er than development fees). The Town Council may approve the uses of the Capital Projects Fund as a part of its annual budget or by motion and affirmative vote at the time the expenditures are approved. 3.6 Replacement Funds. Replacement Funds are established to accumulate the resources necessary to replace vehicles, facility components, information technology, and other equipment at the end of their useful lives. The Town’s various Departments and Divisions will incur annual internal service charges, based on their shared usage of the underlying asset, its useful life, and the future value of the replacement’s cost. The resources in these funds are classified as As- signed Fund Balance. IV. FINANCIAL PLANNING Financial 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 analyses of the Town’s budget. It is increasing- ly important to monitor the performance of the programs competing to receive funding. 4.1 Budget Adoption. The Town Manager shall prepare a proposed annual budg- et, which shall be submitted to the Town Council and the public for review in accordance with Ariz. Rev. Stat. § 42-17001, et seq. The Town will budget revenues and expenditures on the basis of a fiscal year beginning July 1 and ending the following June 30. The Town Council will adopt the budget no lat- er than June 30. By adopting the budget and the various funds set forth therein, the Town Council expresses its intent to commit fund balances for the purpose of GASB 54 classifications. The Town Manager shall execute the Town Council policies as set forth in the finally adopted budget. 4.2 Budget Preparation. The Town Manager or authorized designee will prepare Financial Overview & Policies 52 Financial Overview & Policies 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 fund. C. Estimated fund balance by 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 improve- ment program. G. Any additional information, data, or analysis requested of manage- ment by the Town Council. 4.3 Operating Budget. 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. 4.4 Revenue Sources. Ongoing operating costs should be supported by ongoing, stable revenue sources. This policy protects the Town from fluctuating ser- vice levels and avoids crises when one-time revenues are reduced or re- moved. 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. 4.5 Revenue Estimate. The Town Manager will provide an estimate of the Town’s revenues annually for each fiscal year, as well as estimates of spe- cial (grant, excise tax, etc.) revenues and interfund transfers. 4.6 Staffing. The budget will fully appropriate the resources needed for author- ized regular staffing. At no time shall the number of regular full-time em- ployees on the payroll exceed the total number of full-time positions author- ized by the Town Council. All personnel actions shall be in conformance with applicable Federal and State law and all Town ordinances and policies. 4.7 Budget Preparation Schedule. Annually, the Town Manager shall provide a budget preparation schedule outlining the preparation timelines for the pro- posed 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 pre- pare and return their budget proposals to the Administration Department, as required in the budget preparation schedule. 4.8 Performance Measurement. Performance measurement indicators will be in- 53 tegrated into the budget process as appropriate. 4.9 Efficiency Analysis. Alternatives for improving the efficiency and effective- ness of the Town’s programs and the productivity of its employees will be considered during the budget process. Duplication of services and inefficien- cy in service delivery should be eliminated wherever they are identified. 4.10 Department Responsibility. Department Directors are required to monitor revenues and control expenditures to prevent exceeding their total depart- mental expenditure budgets. Department Directors shall immediately notify the Town Manager of any exceptional circumstances that could cause a de- partmental expenditure budget to be exceeded. 4.11 Quarterly Report. A quarterly report on the status of the General Fund budget and trends will be prepared within 60 days of the end of each quar- ter by the Town Manager or authorized designee. 4.12 Deficit. 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 Rainy Day Fund, to the extent necessary to ensure a balanced budget at the close of the fiscal year. The Town Man- ager may institute a cessation during the fiscal year on hirings, promotions, transfers, and capital equipment purchases. Such action will not be taken arbitrarily or without knowledge and support of the Town Council. V. EXPENDITURE CONTROL The Town Manager shall ensure compliance with the legally adopted budget. In ad- dition, purchases and expenditures must comply with all applicable legal require- ments. 5.1 Budgeted Expenditures. 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 ad- ministrative approval and processing of certain budget transfers within funds. 5.2 Purchasing System and Policies. The Town will maintain a purchasing sys- tem that provides needed materials in a timely manner to avoid interrup- tions in the delivery of services. All purchases shall be made in accordance with the Town’s purchasing policies, guidelines and procedures and applica- ble State and Federal laws. The Town will endeavor to obtain supplies, equipment, and services as economically as possible. 5.3 Internal Controls. Expenditures will be controlled through appropriate inter- nal controls and procedures in processing invoices for payment. 5.4 State Expenditure Limit. The State of Arizona sets a limit on the expendi- tures of local jurisdictions. The Town will comply with these expenditure lim- itations and will submit an audited expenditure limitation report, audited fi- nancial statements and audited reconciliation report as defined by the Uni- form Expenditure Reporting System (Ariz. Rev. Stat. § 41-1279.07) to the State Auditor General each year. Financial Overview & Policies 54 5.5 Capitalized Assets. All assets of $10,000 or more will be capitalized and rec- orded in the Town of Fountain Hills Summary of Capital Assets. VI. 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. 6.1 Balanced Revenue Base. The Town’s goal is a General Fund revenue base that is equally balanced between sales taxes, State-shared revenues, prop- erty tax, service fees, and other revenue sources. 6.2 Stable Revenue Base. The Town will strive for a diversified and stable reve- nue 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 law. 6.3 Monitoring Collection. The Town Manager or authorized designee will moni- tor all taxes to ensure 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. 6.4 Intergovernmental Aid. The Town Manager or authorized designee 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 considera- tion 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. 6.5 Cost Recovery. 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 Foun- tain Hills Unified School District, the Town may determine to recover less than full cost of services provided. In the case of State and Federally man- dated 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 pe- riodically. Financial Overview & Policies 55 6.6 Growth Revenues. Local sales tax revenues are derived from several sources with a significant portion from construction related activity. To en- sure that the revenues from growth or development are targeted to costs related to development, or invested in improvements that will benefit future residents or make future service provision efficient, the Town will designate 50% of those one-time revenues to the Capital Projects Fund. Monthly, these revenues will be transferred from the General Fund to the Capital Pro- jects Fund for future appropriation. VII. USER FEE 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. 7.1 Establishing Fees. The Town may establish user fees and charges for certain services provided to users receiving a specific benefit. 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. 7.2 Recalculation. Periodically, the Town will recalculate the full costs of activi- ties supported by user fees to identify the impact of inflation and other at- tendant costs. VIII. CASH HANDLING POLICY Collecting and controlling cash at the Town are very important functions. The Cus- tomer Service Representatives and Permit Technicians are the Town’s cash han- dling agents. Strong internal controls for cash collection and handling are neces- sary to prevent mistreatment of Town funds and to safeguard and protect employ- ees from unwarranted charges of mishandling funds. Historical practices shall not constitute justification for deviation from these proce- dures. The material contained in this Section supersedes any previous policies and procedures regarding the handling of cash followed within the Town and/or within Departments. The Finance Division will conduct periodic reviews of cash handling procedures. Any amendments to the policies require Town Council approval, but the Town Manager may make interpretations and exceptions to the policies con- tained in this Section as more particularly set forth in Subsection 8.13 below. 8.1 Individual Responsibilities. All cash transactions are to be processed by Town staff (including cash, credit cards, checks, etc.) and not volunteers. Any Department Director or manager with responsibilities for managing Town cash receipts and those employees who are entrusted with the re- ceipt, deposit and reconciliation of cash for Town-related activities shall be responsible for knowledge of and compliance with this Section VIII. A refer- ence to this Section should be included as part of all departmental policies and procedures. 8.2 Establishing Cash Handling Sites. Ideally, from a control perspective, col- Financial Overview & Policies 56 lecting and controlling cash should be centralized in one location; however, that is not always possible or practical. As a result, the collection of money is, in part, decentralized. The Finance Division must authorize all cash han- dling sites, including one-time requests for cash for special events. Depart- ments requesting status as a cash handling site (or special events where money is being collected and a cash float is needed) must submit a request to the Finance Division at least 24 hours prior to the special event that in- cludes: A. Reason(s) why cash handling site or cash float is needed. B. A list of the personnel involved with the cash handling site, descrip- tions of their duties, and how segregation of duties will be main- tained. C. Whether a change drawer will be needed. D. A description of the reconciliation process, including frequency of rec- onciliation. E. A description of the process for safeguarding cash until it is deposit- ed. F. A schedule of how often and where cash deposits will be made. 8.3 Procedures for Cash Collection. A. “Cash” is defined as any of the following accepted methods of pay- ment for Town transactions: (1) Cash (U.S. coin and currency). (2) Checks (drawn on U.S. banks and made payable to the Town; no third party checks). (3) Credit Cards (MasterCard, Visa, Discover, American Express). (4) Money Orders. B. Cash should be physically protected through the use of vaults, safes, cash registers, etc. Each Department is responsible to make the nec- essary provisions to properly safeguard the cash receipts in its area and maintain the necessary safe or vault that will ensure the security. Generally, any amount of cash on hand must be maintained in a vault or heavy safe (one which cannot be easily moved by two persons us- ing a hand cart). Cash should not be retained in desk drawers or standard file cabinets without a locking mechanism; petty cash must be secured in a locked file cabinet and keys should be secured sepa- rately. C. The cash drawer should be kept shut when not in use and after each transaction. The cash drawer, when open, should not be left unat- tended when it contains money. The contents of cash drawers should Financial Overview & Policies 57 be placed in a safe, vault, or an approved, locked location after each day; all safes are to be kept locked. 8.4 Receipts. A. Procedures must be in place to record the daily beginning and ending receipt numbers of the cash register, and include safeguards to pre- vent manipulation of register totals, receipt numbers, etc. Automatic numbering of receipts through a computerized system is an accepta- ble alternative. B. Receipts should be generated from either receipt books or cash regis- ter receipt system. C. Cash registers must be programmed to issue receipts, which shall contain all information required by the accounting system to properly credit and track payments. D. Receipt books, if issued for special events, must be issued in sequen- tial order. All books should be accounted for from the time of delivery and returned to the Finance Division. E. Only those receipt books that have been distributed by the Finance Division may be used. F. At a minimum, sequential, pre-numbered receipt forms must contain the following information: (1) Date issued. (2) Cashier and/or Department issuing the receipt. (3) Name of payor (not the department name or revenue source). (4) Net amount received. (5) Sufficient information to identify the purpose of the payment. (6) Form of payment (cash, check, credit card, etc.). G. The receipt forms should also: (1) Contain all available identifying numbers and other pertinent, descriptive information including invoice numbers. (2) Be issued in a minimum of two copies, one for the payor and one to accompany the deposit. (3) Never be altered; if any type of change is necessary, all copies of the receipt must be clearly marked “void”, and a new receipt issued. (4) Be filed sequentially and retained by the Department (including void receipts). Financial Overview & Policies 58 8.5 Cash Received in Person. A. When a customer produces a mutilated bill (where a portion is miss- ing), the receiver should request that the customer have a bank re- deem the bill. No bill will be considered for acceptance if both serial numbers are not present. B. A printed receipt must be issued for each payment received when the customer pays in person. At a remote location (for special events), manual pre-numbered receipts may be used when cash register re- ceipts are not available. C. Departments may not accept post-dated checks, IOU’s, or third party checks. D. All cash received must be recorded through the computerized ac- counting system with computer-generated official Town cash receipts. When a cash handling site with a computerized accounting system has to use temporary cash receipts, those temporary receipts must be converted over to computerized receipts as soon as possible. If the conversion cannot be accomplished within 48 hours, the cash should be deposited into the Department’s safe and tracked in detail until it is recorded on the computerized accounting system. E. The customer must be presented an official Town receipt form with a duplicate record being retained by the receiving Department. All num- bered receipts must be accounted for, including the original of voided receipts. F. The cash handling site must maintain a clear separation of duties. An individual should not have responsibility for more than one of the cash handling components: collecting, depositing, disbursement, and reconciling. G. The procedures below are to be followed to safeguard the employee and the cash: (1) Account for cash as soon as is it received – count the cash in front of customer. (2) Keep cash received in view of the customer until the transac- tion is complete. (3) If change is required, count all cash and change in front of cus- tomer. (4) Reconcile the funds received to the computerized accounting system cash report or to the total of the temporary receipts at the end of the day or at the end of each shift and balance the receipts as set forth in Subsection 8.9. (5) Immediately place all cash in a cash drawer, safe or other se- cure place until deposited. A secure area for processing and Financial Overview & Policies 59 Financial Overview & Policies safeguarding funds received should be provided and restricted to authorized personnel. (6) Personal transactions with Town cash funds are prohibited. Monies may never be borrowed nor loaned from cash funds, nor may personal checks be cashed from receipts. (7) All employees paying for Town services (rentals, movie tickets, animal license, business license, etc.) must be rung up by a different employee under a separate user ID. (8) Deposit all cash intact and not intermingled or substituted with other cash. (9) Pay refunds or expenditures through the appropriate Town bank account on a Town-generated check from the main ac- counts payable account for the smaller accounts. If the original payment was made using credit/debit card, then whenever possible refunds will be issued through the credit card per credit card regulations. (10) Provide printed receipts generated by the financial system for every transaction involving money. (11) Voided cash receipts must be approved and initialed by a su- pervisor before the daily deposit is done, noting the reason for voiding the transaction. (12) Deposit daily cash report and cash promptly at the end of each day into the Finance Division safe. (13) Place cash in amounts over $500.00 in the Finance Division safe immediately following the transaction until the end of day close out. (14) Cashiers should enter transactions using their personal logins (switch user) during a single shift. (15) All packaged coin or strapped currency received as payment should be removed from the package or straps and verified. H. Cashing checks from Town deposits, borrowing cash for personal use, lapping receipts to cover shortages in cash receipts, withholding checks for deposit in order to float checks, commingling personal and Town funds and modifying cash records are all serious offenses and may result in discipline up to and including immediate discharge from employment. 8.6 Cash Received Through the Mail. A. When mail is opened, if the cash received is not credited directly into the appropriate Town account or issued a receipt through a comput- erized accounting system, a log of the checks, credit card transac- 60 tions and or cash should be prepared and submitted to the Finance Division. The log should include the customer’s name, amount re- ceived, check number and any other information available that may assist in proper allocation of the funds. The envelope also should be retained as part of the records. B. When mail is opened, checks must be endorsed promptly with a re- strictive endorsement stamp. Checks must be stored in a safe or oth- er secure place approved by the Finance Division until deposited. C. Unidentified receipts must be deposited to a depository account ap- proved for such purposes. All reasonable attempts should be made to identify the correct account and transfer the funds. 8.7 Check Acceptance. A. The Federal Reserve has established a regulation to standardize check endorsements: (1) Checks must be made payable to the Town of Fountain Hills and endorsed promptly with a restrictive endorsement stamp payable to the Town of Fountain Hills. The endorsement stamps must be distributed by the Finance Division; this stamp protects the check if lost or stolen. (2) All depositor’s endorsements are limited to the top 1.5 inches on the back side of the check, at the trailing edge of the check. This area is where endorsements are normally placed. If you look at the face of the check, the endorsement area is directly behind where “Pay to the Order of” is printed. (3) Any check that has been endorsed may not be returned to the customer. Any marks below the 1.5 inches on the check may obscure the bank routing number, cause delays in returning checks, and forfeit the Town’s right to recovery. The purpose of this regulation is to speed collection and returns. (4) The endorsement must include the following: FOR DEPOSIT ONLY TOWN OF FOUNTAIN HILLS [Account Number] (5) Checks should have the customer information pre-printed on the face of the check. Bank issued/generated checks are ac- ceptable. (6) Personal checks from employees for cash may not be cashed at any counter in a Town facility. (7) Checks or credit card transactions will not be cashed or pro- cessed for more than the amount of purchase. Departments are not authorized to return currency to the payor in the event that the check exceeds the amount due to the Town. Financial Overview & Policies 61 B. Be sure that the name, branch, city and state where the drawer’s bank is located is printed on the check. C. The Town will not accept a check that is: (1) Illegible or not written out clearly; checks should be written out in blue or black ink only. (2) For anything other than the exact amount (no change will be given). (3) A third party check (that is, checks made out to someone other than the Town). (4) Altered or changed. (5) Undated, post-dated or stale dated (older than six months). (6) Not signed. (7) A starter check, i.e. a check without the name, address and check number on the face of the check. (8) Not in U.S. funds. (9) From a foreign bank, even if payable in U.S. funds. (10) Transfer checks. D. If the written amount on a check does not match the numerical amount, the written amount will govern. E. Money orders should be filled out by the customer in the presence of Town staff; the customer must countersign and write Town of Foun- tain Hills in the payee section. 8.8 Credit Card Acceptance. A. Credit cards accepted are Visa, MasterCard, Discover, and American Express. B. When presented with a credit card, the Department cashier shall: (1) Verify that the card has not been altered and is not expired. (2) Check customer identification to verify that the name on the card and the account name are the same, unless someone is paying for other family members. (3) Retain the credit card until the transaction is complete. (4) Enter the credit card transaction by swiping the card through the terminal on the keyboard; if the keyboard does not have a Financial Overview & Policies 62 terminal, the swipe reader is not functioning or payment is be- ing taken over the telephone, the credit card number should be entered manually when prompted. (5) If the credit card information is being input from a paper regis- tration form that includes the card number and payor signature, shred or permanently mark over the portion of the form that includes the credit card information as soon as the transaction is complete and the card is accepted. (6) If receiving credit card information over the phone, verify the caller’s name as it appears on the card, verify the amount to be processed, enter the credit card number, expiration date and security code directly; immediately shred any piece of paper where the information can be viewed or taken. 8.9 Balancing of Cash Receipts. A. All funds collected must be balanced daily, by mode of payment, by comparing the total of the cash, checks and credit cards to the com- puterized accounting reports, to the manual receipts totals, including the totals of the money received by mail. All cash receipts and sup- porting documentation (daily deposit slip, system receipts, and sys- tem reports) should be transferred daily to the accounting system and all discrepancies should be resolved before the end of the day/ shift. B. Daily cash counts and reconciliations will be performed on a random basis by the Accountant or other senior Finance Division staff mem- ber. These reconciliations should be signed and dated by the review- er. The total monthly receipts should be balanced with the monthly bank account statements and accounting system monthly reports and all discrepancies should be resolved. C. Currency and coin must be reconciled separately from checks, credit cards and money orders by comparing actual cash received to the cash total from the cash report or to the sum of the cash sales from the manual receipts. D. Over/short amounts must be separately recorded, investigated and resolved to the extent possible as set out in the over/short portion of this Section. E. Because balancing can be a time-consuming task and requires atten- tion to detail, it is recommended that each cashier pre-balance his/ her own drawer periodically during the day. NOTE: On the rare occasion that a check needs to be forwarded to another party by the Town of Fountain Hills, the check cannot be en- dorsed. Any of the following positions are authorized to approve this receipt without endorsement: the Town Manager, the Finance Direc- tor, and the Town Clerk. Approval to accept this instrument in this manner requires approval from one of the Town’s authorized signato- ries in writing prior to the presentation of the instrument. Financial Overview & Policies 63 Financial Overview & Policies F. End of day close out process for cash collection points includes the following: (1) Two signatures on the daily cash report before depositing in the Finance Division safe. (2) Total deposit must match the printed report from the software program. (3) Deposits are turned in daily and deposited in the Finance Divi- sion safe by the responsible party. 8.10 Cash Over & Short. A. A daily accounting of cash received should be balanced against the total amount on the daily reports run by the Department. Any amount that is over or short shall be reported on the same day to the Depart- ment Director and the Accountant. B. The discipline procedures set forth below should be followed if the es- tablished dollar limits and frequency of overages and/or shortages are exceeded. The current established dollar limit is five dollars. A log should be established to record any overages and shortages, and the employee’s name and date. Patterns, frequencies, and inconsistencies should be noted on the employee’s performance review. Overages or shortages of $50.00 or more are to be reported to the Finance Direc- tor. C. Warnings or exceptions involving cash overages or shortages shall be retained in the employee’s permanent file. D. If the shortage is the result of a suspected or documented theft, the shortage must be reported immediately and in writing to the Account- ant, the Finance Director, and the Town Manager who will submit to law enforcement for investigation, regardless of amount. E. Employees who handle cash are expected to be careful and accurate and to balance their funds each day without overages or shortages. Failure to follow internal controls and checks and balances as ap- proved by the Finance Division is considered to be at least negligence and could be considered misconduct subject to the following discipli- nary procedures: (1) Verbal Warning. A verbal warning will be given if an employee has: (i) Two or more over/shorts in any 90-day period (regardless of the amount). (ii) Cumulative over/shorts of $75.00 or more in any 30 -day period. (2) Written Warning. 64 (i) After an employee has received two verbal warnings, the third warning will be in the form of a written warning. A fourth warning will be subject to disciplinary action as determined by the Department Director. (ii) A written warning will be issued if an employee exceeds a cumulative total of $100.00 or more cash short in any month regardless of the number of verbal warnings. 8.11 Returned Check Procedures. A. Any checks returned by the Town’s depository bank as uncollected shall be sent to the Finance Division. Examples of returned checks in- clude: non-sufficient funds (NSF), account closed, payor’s signature missing, refer to maker and post-dated or stale-dated checks. B. When a check is returned, the Finance Division prepares a negative entry to the revenue journal, debiting the originating account for the amount of the check and at the same time assessing a service fee in the amount set forth in the Town’s adopted fee schedule. It is the re- sponsibility of the Department that was credited with the revenue to notify the check writer and use due diligence to collect the amount of the check and the service fee. The check writer will be prohibited from receiving Town services until the Town is paid the full amount, plus the returned check fee. Restitution should be in the form of cur- rency, money order, cashier’s check, or certified check. The Finance Division will maintain an aging report on all non-collectable items; this report will be submitted monthly to the Finance Director. C. When restitution is obtained, the same account should be used that was used on the negative entry and the deposit should be transferred to the Customer Service Representative for inclusion in the daily de- posit. D. If after proper due diligence is performed, collection has not been made, the Accountant may be consulted regarding returned items that remain uncollected for further action through the State. 8.12 Preparation of Deposits (performed by the Finance Division). A. The Finance Division shall prepare all deposits. B. All checks must be made payable to Town of Fountain Hills and en- dorsed. A calculator tape of the checks should be included with the checks bundled together. C. Cash must be recorded on the deposit slip in the appropriate space. D. Only depository-issued deposit slips, including the appropriate ac- count number(s) and sub-code(s) are to be used. E. Someone not involved with collecting the cash, opening the mail or reconciling the deposit must prepare the deposit. Financial Overview & Policies 65 Financial Overview & Policies F. Deposit from the Municipal Court should be secured in locking deposit bags, which are available from the bank. G. Trips to the bank should be at random times during each day. 8.13 Exceptions to Cash Handling Policy. A. Any exception to this Section must be approved in writing by the De- partment Director and requires the concurrence of the Finance Direc- tor. For example, in cases where there is not enough staff available to maintain complete separation of duties, an alternate process to safe- guard Town funds must be established and approved by the Finance Director. Requests for exceptions to these procedures must be sub- mitted to the Finance Director in writing. B. Town personnel are prohibited from depositing Town cash into check- ing or other bank accounts unless the account has been set up by the Finance Division. 8.14 Records Retention. All cash receipts and related documents must be main- tained in accordance with Records Retention Schedules pursuant to Ariz. Rev. Stat. §§ 39-101 through 39-103 and 41-151.15 through 41-151.19. Accounting reports, deposit slips, credit card receipts, copies of manual cash receipts, etc. should be kept for the period specified by the Records Retention Schedules. IX. 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 disclo- sures to investors, underwriters, and rating agencies. The Town’s overall debt management policy is to ensure that financial resources are adequate in any gen- eral 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. 9.1 General. A. The Town will (1) use current revenues to pay for short-term capital projects, repair and maintenance items and (2) reserve long-term debt for capital improvements with useful lives of ten years or more. The Town will not use long-term debt to fund current governmental operations and will manage its cash flow in a fashion that will prevent any borrowing to meet working capital needs. However, exclusive re- liance upon “pay-as-you-go” funds for capital improvements requires existing residents to pay for improvements that will benefit new resi- dents who relocate to the area after the expenditure is made. Financ- ing capital projects with debt provides for an “intergenerational equi- ty,” as the actual users of the capital asset pay for its cost over time, 66 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. B. To increase its reliance on current revenue to finance its capital im- provements, and promote a “pay-as-you-go” philosophy, the Town will allocate each year a percentage of current revenues to maintain a minimum 10% of average actual General Fund revenues for the pre- ceding five fiscal years in the assigned fund balance. 9.2 Capital Improvement Plan A. As part of the budget process each year, the Town Manager or au- thorized designee 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 im- provement plan will be developed within the constraints of the Town’s ability to finance the plan. B. The Town Manager and Department Directors will develop formal ranking criteria that will be used in the evaluation of all capital pro- jects. The ranking criteria will give greatest weight to those projects that protect the health and safety of its citizens. “Pay-as-you-go” pro- ject financing shall be given the highest priority. Capital improve- ments that must rely upon debt financing shall be accorded a lower priority and projects with a useful life of less than ten years shall not be eligible for inclusion in bond issues except in extraordinary circum- stances. C. Lease-purchase financing shall be undertaken only when the project is considered essential to the efficient operation of the Town or to re- move expenditures that would exceed the State-imposed expenditure limitation. The Town Manager or authorized designee shall be respon- sible for ensuring that “pay-as-you-go” expenditures do not cause the State-imposed expenditure limitation to be exceeded in any fiscal year. D. All capital project requests will be accompanied by a description of the sources of funding to cover project costs. Where borrowing is rec- ommended, a dedicated source of funds to cover debt service re- quirements must be identified. All capital project requests will be re- quired to identify any impact the project may have on future operat- ing costs of the Town. The Town will seek grants to finance capital improvements and will favor those projects that are likely to receive grant money. E. All capital project appropriations and amendments to the capital im- provement plan must be approved by the Town Council. F. 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 im- provement or asset. Financial Overview & Policies 67 Financial Overview & Policies G. The following steps shall be used to prepare the Capital Improvement Program (“CIP”): (1) Establish Capital Improvement policies, including: (a) Time period the CIP will cover. (b) Facilities/equipment that will be included in the CIP. (c) How acquisition of multiple items (e.g., computers) will be treated. (d) Identification of projects that are expected to be under- taken, but fall outside the time horizon of the plan. (2) Adopt standards to rank project requests. (a) Projects that address a public health or safety concern are given top priority. (b) Projects mandated by a court of competent jurisdiction or a government with authority over the Town are equal with public health or safety. (c) Major maintenance (preservation of assets). (d) Replacement of obsolete equipment (improving efficien- cy). (e) Expansion to meet demand caused by growth. (f) Coordination of projects to achieve cost savings. (g) Availability of cash to finance improvements from cur- rent revenues. (h) Acquisition of open space. (3) Perform and maintain a capital inventory and identify useful life. (4) Identify projects. (a) Status review of previously approved projects. (b) Identification of new projects. (c) Assess capital project alternatives. (d) Complete project request forms. (5) Assess funding sources. (a) Available grants. 68 (b) Development fees shall be utilized to fund capital pro- jects before “pay-as-you-go” and bond issuance financ- ing. (c) Developer contributions. (d) Private contributions. (e) Issuance of securities. (f) Capital leases. (6) Approve the CIP and Budget. (a) Town Council review. (b) Public hearing. (c) Adoption of the CIP and capital budget. 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 re- quests will be required to identify any impact the project may have on future oper- ating costs of the Town. Department Directors will submit detailed descriptions of the useful life of capital projects submitted in conjunction with the preparation of the Town’s CIP. The Town Manager shall incorporate an estimate of the useful life of proposed 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 depre- ciation. At no time shall the amortization exceed the life of the asset. 9.3 Financing Alternatives. A. Financing alternatives include, but are not limited to: (1) Grants. (2) Developer Contributions. (3) General Obligation (“GO”) Bond – requires voter approval, sup- ported by an ad valorem (property) tax. (4) Revenue Bonds – repaid with dedicated revenue source (HURF, revenue generated by project). (5) Municipal Property Corporation (“MPC”) Bonds – repaid with a dedicated revenue source. (6) Community Facilities District (“CFD”) or Special District Bonds – supported by an ad valorem property tax, revenues of the district or assessments of the cost of public infrastructure or enhanced municipal services. Financial Overview & Policies 69 Financial Overview & Policies (7) Capital Leases – repaid within operating budget. (8) Commercial Paper (CP) or Bond Anticipation Notes (BAN) with terms less than two years. B. Town debt service costs (GO Bonds, Revenue Bonds, MPC Bonds, Leases) shall not exceed 20% of the Town’s operating revenue in or- der to control fixed costs and ensure expenditure flexibility. Improve- ment 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 for CFDs have been established and included within the Town’s CFD policy. C. The Town shall comply with all U.S. Internal Revenue Service arbi- trage rebate requirements for bonded indebtedness. D. Where applicable, the Town will structure GO 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 15 years; at no time will the debt exceed 25 years. E. Refunding bonds will be measured against a standard of the net pre- sent 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 ex- isting debt structure to the benefit of the Town. Refinancings under- taken for other reasons should proceed only when the advantages have been clearly shown in a cost/benefit analysis of the transaction. F. 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. G. An analysis showing how a new issue combined with current debt im- pacts the Town’s debt capacity and conformance with Town debt poli- cies will accompany every future bond issue proposal. The debt ca- pacity analysis should reflect a positive trend and include: (1) Percent of debt outstanding as a percent of the legal debt limit. (2) Measures of the tax and revenue base. (3) Evaluation of trends relating to expenditures and fund balance. (4) Debt service as a percentage of assessed valuation. (5) Measures of debt burden on the community. (6) Tax-exempt market factors affecting interest costs. (7) Debt ratios. 70 H. MPC and contractual debt, which is non-voter approved, will be uti- lized 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 gen- erated by the project will be greater than the debt service require- ments). I. The Town’s privilege/excise tax to debt service goal will be a ratio of at least 2.5:1 to ensure the Town’s ability to pay for long-term debt from this elastic revenue source. 9.4 Issuance of Obligations. A. 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 with an office in the Phoenix area and a record of prior working relationships. B. The request for proposals process will be designed to select the ser- vice 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 pro- posals submitted shall be the responsibility of the Town Manager. C. The Town will sell bonds through public sale, online bidding process or an accelerated bidding process unless the Town Council authorizes the bond to be sold by negotiated sale or private placement. D. The Town Manager or designee and Town Attorney will coordinate their activities to ensure that all securities are issued in the most effi- cient and cost-effective manner and in compliance with the governing statutes and regulations. The Town Manager and the Town Attorney shall consult and jointly select the bond counsel for a bond issue. E. The Town Manager or authorized designee will seek a rating on all new issues which are being sold in the public market if economically feasible. F. The Town will report all financial information on an annual basis and notices of listed events in a timely manner, not in excess of ten busi- ness days after the occurrence of event, to the rating agencies and the Municipal Securities Rulemaking Board (MSRB) Electronic Munici- pal Market Access (EMMA) system. The annual report will include but not be limited to the Town’s annual Comprehensive Annual Financial Report (CAFR) and other items specified in the Town’s continuing dis- closure undertakings. G. Any institution or individual investing monies as an agent for the Town shall do so in a manner consistent and in compliance with the Town’s adopted Investment Policy. Financial Overview & Policies 71 Financial Overview & Policies H. The Town Manager or authorized designee 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 pro- ceeds of all borrowings in a manner that will ensure the availability of funds as described in the draw schedules. I. The Town acknowledges the responsibilities of the underwriting com- munity and pledges to make all reasonable efforts to assist underwrit- ers in their efforts to comply with Securities and Exchange Commis- sion Rule 15c2-12 and MSRB Rule G-36. The Town will follow its adopted issuance and post-issuance compliance procedures relating to its tax-exempt financings. X. INVESTMENT/CASH MANAGEMENT POLICY It is the intent of this investment/cash management policy (the “Investment Policy”) that idle public funds (i.e., uninvested funds) will be invested in a manner that main- tains safety of principal, maintains liquidity to meet cash flow needs, provides com- petitive investment returns and conforms to all state statutes governing the invest- ment of public funds (the “Investment Portfolio”). The purpose of these investment guidelines is to formalize the framework for the Town’s daily investment activities. 10.1 Scope. This Investment Policy shall be administered in a manner that follows Arizona Revised Statutes Title 35, Chapter 2, Article 2.1, as amended and oth- er investment guidelines mandated by statute and is limited in its application to funds that are not immediately needed and are available for investment, in- cluding any and/or all districts, component units, etc., of the Town. These funds are accounted for in the Town’s Comprehensive Annual Financial Report (“CAFR”) and may include: A. The General Fund; B. Highway User Revenue Fund; C. Excise Tax Funds; D. Special Revenue Funds; E. Debt Service Funds; F. Capital Project Funds G. Development Fees Funds; H. Internal Service Funds; and I. Any new fund/component unit created unless specifically exempted. Except for cash in certain restricted funds, the Town will consolidate cash bal- ances from all funds to maximize investment earnings. Investment income will be allocated to the various funds based on their respective participation and in accordance with generally accepted accounting principles. 10.2 Prudence. Investments shall be made with judgment and care, under circum- stances then prevailing, which persons of prudence, discretion, and intelligence 72 exercise in the management of their own affairs, not for speculation, but for investment, considering the probable safety of their capital as well as the prob- able income to be derived. The standard of prudence to be used by any firm or individual given responsibility as Investment Officer shall be the “prudent per- son” standard and shall be applied in the context of a professional investment official managing an overall portfolio or account in a manner that aims to ac- complish the objectives set forth in these policies. Investment Officers acting in accordance with the Town’s written procedures and this Investment Policy and exercising due diligence shall be relieved of personal responsibility for an indi- vidual security’s credit risk or market price changes, provided deviations from expectations are reported in a timely fashion and appropriate action is taken to control adverse developments. 10.3 Objectives. In priority order, the primary objectives of Town investment activi- ties are: A. Safety: Safety of principal is the foremost objective of the investment program. Investments of the Town shall be undertaken in a manner that seeks to ensure the preservation of principal in the overall portfolio. To attain this objective, the Town will diversify its investments by investing funds among a variety of securities offering independent returns and fi- nancial institutions. B. Liquidity: The Town Investment Portfolio will remain sufficiently liquid to enable the Town to meet all operating requirements that might be reasonably anticipated. Liquidity will be achieved by matching invest- ment maturities with forecasted cash flow funding requirements, by in- vesting in securities with active secondary markets and by diversification of maturities and call dates. Furthermore, since all possible cash de- mands cannot be anticipated, a portion of the portfolio may also be placed in savings accounts, Certificates of Deposit (“CDs”) or local gov- ernment investment pools that offer same day liquidity for short-term funds. C. Yield (Return on Investments): The Town Investment Portfolio shall be designed with the objective of attaining a market rate of return throughout budgetary and economic cycles, taking into account the investment risk constraints of safety and liquidity needs and the cash flow characteristics of the portfolio. Return shall be subordinated to safety and liquidity. The core of invest- ments is limited to relatively low-risk securities in anticipation of earning a fair return relative to the risk being assumed. Securities shall not be sold prior to maturity, with the following exceptions: (1) A security with declining credit may be sold early to minimize loss of principal; (2) A security swap would improve the quality, yield or target dura- tion in the portfolio; (3) Liquidity needs of the portfolio require that the security be sold; and (4) If market conditions present an opportunity for the Town to bene- fit from the sale. Financial Overview & Policies 73 Financial Overview & Policies D. Risk of Loss: All participants in the investment process will seek to act responsibly and prudently as custodians of the public trust. Investment Officers will avoid any transactions that they reasonably believe might impair public confidence in the Town’s ability to govern effectively. The Town Council recognizes that in a diversified portfolio, occasional meas- ured losses due to market volatility are inevitable, and must be consid- ered within the context of the overall portfolio’s investment return, pro- vided that adequate diversification has been implemented. 10.4 Investment Strategy. The Town intends to pursue a portfolio management phi- losophy that includes passive management; passive management means that the financial markets will be monitored by Investment Officers and invest- ments will be purchased and sold based on the Town’s parameters for safety and liquidity and based on market conditions. All marketable securities pur- chased by the Town shall have active secondary markets, unless a specific cash outflow is being matched with an investment that will be held to maturity to meet that obligation. Securities may be purchased as a new issue or in the secondary markets. Securities may be sold as provided in Section 4.3. Securi- ties may be purchased with the intent from the beginning to sell them prior to maturity or with the expectation that the security would likely be called prior to maturity under the analyzed market scenario. The portfolio will be structured to benefit from anticipated market conditions and to achieve a reasonable re- turn. Relative value between asset groups shall be analyzed and pursued as part of the investment program within the restrictions set forth by this Invest- ment Policy. Diversification by market sector and security types, as well as ma- turity will be used to protect the Town from credit and market risk in order to meet liquidity requirements. Market and credit risk shall be minimized by di- versification and are defined below: A. Credit Risk: The Town will seek to mitigate credit risk, which is defined as the risk of loss due to failure of the security issuer or backer. Mitigat- ing credit risk is to be accomplished by carefully managing the allocation of funds to non-government or insured sectors. The Finance Director will monitor the credit holdings on a continuous basis to ensure they remain appropriate to hold. B. Interest Rate Risk: The Town will seek to mitigate interest rate risk, which is defined as the risk that the market value of securities held in the portfolio will decline due to increases in market interest rates subse- quent to their purchase. This mitigation will be accomplished by: (1) Structuring the Investment Portfolio so that securities mature concurrent with the anticipated cash requirements for ongoing operations, thereby avoiding, as much as possible, the need to sell securities into an adverse market environment prior to ma- turity; (2) Investing funds primarily in shorter-term securities or similar in- vestment pools and limiting the average maturity of the portfolio in accordance with the needs of the Town; and (3) With respect to any firm or individual given responsibility for in- vestments, utilizing external research and advice regarding the 74 current interest rate outlook and global economic condition to op- timize portfolio duration strategy. C. Market Rate Risk: The Town will seek to mitigate market rate risk, which is defined as the risk that the portfolio value will fluctuate due to changes in the general level of interest rates. This mitigation will be ac- complished by: (1) Providing adequate liquidity for short-term cash needs; and (2) Making longer-term investments only with funds that are not needed for current cash flow purposes. 10.5 Responsibility and Control. A. Delegation of Authority: Authority to manage the Town investment pro- gram is derived from the Ariz. Rev. Stat. §§ 35-323 - 328. Manage- ment responsibility for the investment program is hereby delegated to the Finance Director. The Finance Director shall be primarily responsible for ensuring the Investment Portfolio is invested according to this In- vestment Policy. In carrying out these duties, the Finance Director may delegate certain tasks to others (each an “Investment Officer”) whose skill and experience are appropriate to the delegation. The term “Investment Officer” includes the Finance Director (until a particular task is delegated) and the “Investment Advisor,” as defined below and as de- scribed in Section 10.5. A list of Town personnel eligible for delegation as Investment Officer is attached to this Investment Policy in Appen- dix A. B. Establishment of Procedures: The Finance Director shall establish writ- ten procedures for the operation of the investment program consistent with this Investment Policy. Procedures should include reference to: safekeeping, repurchase agreements, wire transfer agreements, bank- ing service contracts and collateral/depository agreements. Such proce- dures shall include explicit delegation of authority to persons responsible for investment transactions. No person may engage in an investment transaction except as provided under the terms of this Investment Policy and the procedures established by the Finance Director. C. Management Responsibilities: No person shall engage in an investment transaction except as provided under the terms of Investment Policy, the procedures established by the Finance Director, or designee, and verbal or written authorization by the Finance Director to withdraw, transfer, deposit and invest the Town’s funds. The Finance Director shall be responsible for all transactions undertaken, and shall establish a sys- tem of controls to regulate the activities of Investment Officers. The Fi- nance Director has the authority to manage internally or to delegate the management of the investment program to an investment advisor en- gaged by the Town (the “Investment Advisor”). The Finance Director is responsible for: (1) Reporting Investment Portfolio performance to Town Manager; (2) Evaluating the performance of the externally-managed portfolio; Financial Overview & Policies 75 Financial Overview & Policies (3) Monitoring Investment Advisor’s compliance with this Investment Policy; (4) Conveying the investment needs of the Town to the Investment Advisor; and (5) Developing investment strategy with the Investment Advisor. D. Ethics and Conflicts of Interest: All persons involved in the investment process shall refrain from personal business activity that could conflict with proper execution of the investment program, or which could impair their ability to make impartial investment decisions. Employees and In- vestment Officers shall disclose to the Town Manager any material fi- nancial interests in financial institutions that conduct business within the Town, and they shall further disclose any material personal financial/ investment positions that could be related to the performance of the Town, particularly with regard to the time of purchases and sales. This Investment Policy expressly incorporates the provisions of Ariz. Rev. Stat. Title 38, Chapter 3, Article 8. E. Disclosure: Investment Officers and employees shall disclose to the Town Manger any material financial interest in financial institutions that conduct business with the Town. Investment Officers and employees shall further disclose any material personal investment positions that could be related to the performance of the Town’s Investment Portfolio. Investment Officers and employees shall subordinate their personal in- vestment transaction to those of this jurisdiction, particularly with re- gard to the timing of purchases and sales. An Investment Officer who is related within the second degree by affinity or consanguinity to individu- als seeking to sell an investment to the Town shall file a statement with the Town Manager and the Finance Director disclosing that relationship. F. Investment Training: Investment Officers shall have a finance, account- ing or related degree and knowledge of treasury functions and the State of Arizona laws governing public money management and investments. 10.6 Authorized Financial Dealers and Institutions. The Finance Director will main- tain a list of qualified persons or firms authorized to provide investment ser- vices that have been publicly procured. In addition, a list will also be main- tained of the State pool of approved security broker/dealers selected by credit worthiness who are authorized to provide investment services. The Town shall qualify persons or firms by applying generally accepted industry standards (i.e., capital requirements, asset quality, earnings, liquidity, management and local community development) using available public agency and private rating services as appropriate. Investment transactions shall only be conducted with financial institutions that are licensed as may be required by law to do business in Arizona. Primary government securities dealers, or broker-dealers engaged in the business of selling government securities shall be registered in compli- ance with section 15 or 15C of the Securities Exchange Act of 1934 and regis- tered pursuant to Ariz. Rev. Stat. § 44-3151, as amended. It shall be the re- sponsibility of the financial institutions and broker/dealers who desire to be- come qualified bidders for investment transactions to provide the following: 76 i. Audited financial statements within six months of the close of the fiscal year ii. Proof of Financial Industry Regulatory Authority (FINRA) certification, and trading resolution; iii. Proof of State registration; and iv. Certification of having read this Investment Policy and the Town’s de- pository contracts. An eligible listing of broker/dealers shall be established for the purchase and sale of investment securities; a new list of approved broker/dealers will be es- tablished as needed. External managers may also use their own lists of inter- nally-approved broker-dealers, but only after any such list has been approved by the Town Manager and Finance Director. A periodic review of the financial condition and registrations of qualified companies will be conducted by the Fi- nance Director and the Town Manager. A. Selection of Depository, Financial Institutions and Broker/Dealers: De- positories shall be selected through the Town’s procurement process, with a typical contract being for two years with an option to extend the contract for three additional one year terms. In selecting depositories, the creditworthiness of institutions shall be considered, and the Finance Director shall conduct a comprehensive review of the prospective depos- itories’ credit characteristics and financial history. No public deposit shall be made except in an eligible public depository as established by state depository laws. The depository bank bid will not include bids for invest- ment rates on certificates of deposit. Certificate of deposit rates will be evaluated competitively between qual- ified financial institutions in accordance with the manner in which all other types of investment assets are purchased. The Investment Officer may accept bids for certificates of deposit and for all marketable securi- ties either orally, in writing, electronically, or in any combination of these methods. The Investment Officer will strive to receive three price quotes on marketable securities being sold, but may allow one broker/ dealer to sell at a predetermined price under certain market conditions. Investments purchased shall be shopped competitively between ap- proved financial institution and broker/dealers. B. Insurability: Banks, financial institutions, individuals and firms seeking to establish eligibility for the Town’s certificates of deposit purchase pro- gram, shall submit financial statements, evidence of federal insurance and other information as required by the Investment Officers. 10.7 Portfolio and Investment Asset Parameters. A. Pricing: Market price for investments acquired for the Town’s Invest- ment Portfolio shall be priced using independent pricing sources and market value shall be monitored at least annually. Financial Overview & Policies 77 Financial Overview & Policies B. Eligible Investments: The Town’s eligible investments are governed by Ariz. Rev. Stat. § 35-323 et seq. Furthermore, those investments not identified in Ariz. Rev. Stat. § 35-323 et seq. are considered to be in- eligible. For the eligible investments, the following limitations apply: (1) Investments in insured or collateralized CDs in eligible deposi- tories shall not exceed 30% of the portfolio. (2) Investments in Certificate of Deposit Account Registry Services shall not exceed 20% of the portfolio. (3) Bonds, notes or other evidences of indebtedness of the State or any of its counties, incorporated cities or towns, school dis- tricts or special taxing districts, including registered warrants that bear interest pursuant to Ariz. Rev. Stat. § 11-635, shall not exceed 10% of the portfolio. (4) Bonds, notes or evidences of indebtedness of any county, mu- nicipal district, municipal utility or special taxing district of any state that are payable from revenues, earnings or a special tax specifically pledged for the payment of the principal and inter- est on the obligations, and for the payment of which a lawful sinking fund or reserve fund has been established and is being maintained shall not exceed 10% of the portfolio. (5) Bonds, notes or evidences of indebtedness issued by any coun- ty improvement district or municipal improvement district of any state to finance local improvements authorized by law, if the principal and interest of the obligations are payable from assessments on real property within the improvement district shall not exceed 10% of the portfolio. (6) Commercial paper of prime quality shall not exceed 30% of the portfolio. (7) Bonds, debentures, notes or other evidences of indebtedness shall not exceed 30% of the portfolio. (8) Negotiable or brokered certificates of deposit issued by a na- tionally or state chartered bank or savings and loan association shall not exceed 30% of the portfolio. Bond proceeds shall be invested by the Finance Director (or the In- vestment Officer, if such duties have been delegated) pursuant to ap- plicable laws, relevant bond indenture requirements and relevant ten- ets of this Investment Policy. Proceeds from tax-exempt bonds shall be invested, recorded, and re- ported in the manner set forth by the United States (“U.S.”) Treasury and Internal Revenue Service to preserve the tax-exempt status of the bonds. The Town’s Finance Department will maintain systems to ensure that these requirements are met. Funds set aside to defease Town debt in conjunction with an escrow agreement will be invested in accordance with State law and appropriate bond documents and as 78 the trustee bank holding such funds deems necessary. C. Prohibited Investments: Regardless of sector, no more than 5% of the portfolio may be invested in any one issuer (excluding obligations issued or guaranteed by the U.S. or any of the senior debt of its agencies, sponsored agencies, corporations, sponsored corporations, or instrumentalities). In addition to the limitations on investment types according to Ariz. Rev. Stat. § 35-323 et seq., Town funds will not be invested in any of the following: (1) reverse repurchase agreement (2) callable agencies (3) derivative type investments such as collateralized mortgage obligations, strips, floaters, etc. (4) futures, contractual swaps, options (5) inverse floaters (6) interest only securities (7) forward contracts (8) interest bearing securities that have a possibility of not accru- ing current income (9) closed end management type companies (10) securities whose yield/market value is based on currency, com- modity, or non-interest indices (11) bearer-form securities D. Downgraded Credit Ratings: If the credit rating of a security is sub- sequently downgraded below the minimum rating level specified in this Investment Policy, the Finance Director shall evaluate the down- grade on a case-by-case basis in order to determine if the security should be held or sold. The Finance Director will apply the general ob- jectives of safety, liquidity, yield, and legality to make the decision. 10.8 Collateralization. Where allowed by State law, full collateralization is required on all demand deposit accounts, including checking accounts and non- negotiable certificates of deposit. The State requires all depositories holding public funds participate in the State managed pooled collateral program. The State will monitor collateral for public funds to ensure the proper level of collat- eral is maintained by participant depositories. The Finance Director will check to ensure that any depository it utilizes is a State collateral pool participant. In the event that the Town enters into a repurchase agreement, it shall require collateralization at 102% and accept only the following insurance and securities as collateral: A. FDIC insurance coverage. Financial Overview & Policies 79 Financial Overview & Policies B. Obligations of the U.S., its agencies and instrumentalities, including agency and instrumentality issued mortgage backed collateral if directly guaranteed by the U.S. C. Other obligations, the principal of and interest on which are uncondition- ally guaranteed or insured by the State, the U.S. or its agencies and in- strumentalities. D. Obligations of states, agencies thereof, counties, cities, and other politi- cal subdivisions of any state having been rated as to investment quality by a NRSRO and having received a rating of no less than “A” or its equivalent. 10.9 Safekeeping and Custody. All security transactions including collateral for re- purchase agreements, entered into by the Town or its agents/trustees shall be conducted on a delivery-versus-payment (“DVP”) basis. That is, funds shall not be wired or paid until verification has been made that the safekeeping bank received the correct security. The safekeeping, or custody, bank is responsible for matching instructions from the Town’s Investment Officers on an invest- ment settlement, with what is wired from the broker/dealer, prior to releasing the Town’s designated funds for a given purchase. The security shall be held in the name of the Town, or held on behalf of the Town, in a bank nominee name. A third party custodian designated by the Finance Director and evi- denced by safekeeping receipts will hold securities. The safekeeping bank’s records shall assure the notation of the Town’s ownership of, or explicit claim on, the securities. The original copy of all safekeeping receipts shall be deliv- ered to the Town. Securities shall be held by a custodian designated by the Town Manager and evidenced by safekeeping receipts. 10.10 Internal Control. The Town Manager shall establish an annual process of inde- pendent review as part of the external audit. This review will provide internal control by assuring compliance with policies and procedures. The Investment Officer is responsible for establishing and maintaining an internal control struc- ture designed to ensure that the assets of the Town are protected from loss, theft, or misuse. The internal control structure shall be designed to provide reasonable assurance that these objectives are met. The concept of reasona- ble assurance recognizes that the cost of a control should not exceed the benefits likely to be derived and the valuation of costs and benefits requires estimates and judgments by management. Internal controls should address the following points: A. Control of collusion: Collusion is a situation where two or more em- ployees are working in conjunction to defraud their employer. B. Separation of transaction authority from accounting and record keep- ing: By separating the person who authorizes or performs the transac- tion from the people who record or otherwise account for the transac- tion, a separation of duties is achieved. C. Custodial safekeeping: Securities purchased from any bank or dealer including appropriate collateral (as defined by state law) shall be placed with an independent third party of custodial safekeeping. 80 D. Avoidance of physical delivery securities: Book-entry securities are much easier to transfer and account for since actual delivery of a docu- ment never takes place. Delivered securities must be properly safe- guarded against loss or destruction. The potential for fraud and loss increases with physically delivered securities. E. Clear delegation of authority to staff members: Staff members must have a clear understanding of their authority and responsibilities to avoid improper actions. Clear delegation of authority also preserves the internal control structure that is contingent on the various staff po- sitions and their respective responsibilities. F. Written confirmation of transactions for investments and wire trans- fers: Due to the potential for error and improprieties arising from tele- phone and electronic transactions, all transactions should be supported by written communications and approved by the appropriate person. Written communications may be via facsimile if on letterhead and if the safekeeping institution has a list of authorized signatures. G. Development of a wire transfer agreement with the lead bank and third -party custodian: The Finance Director should ensure that an agree- ment will be entered into and will address the following points: con- trols, security provisions, and responsibilities of each party making and receiving wire transfers. 10.11 Reporting. The Town Manager, or designee, is charged with the responsibility of providing quarterly reports on investment activity and returns. The report shall summarize investment transactions that occurred during the reporting period, and shall include, at a minimum: A. Asset listing showing par value, cost and market value of each security, type of investment, issuer and interest rate; B. Average maturity of the portfolio; C. Maturity distribution of the portfolio; D. Average portfolio credit quality; E. Distribution by type of investment. 10.12 Investment Policy Adoption. This Investment Policy shall be adopted by resolu- tion of the Town Council. The Investment Policy shall be reviewed at least once every five years by the Finance Director and Town Manager and any modifica- tions made hereto must be approved by the Town Council. 10.13 Certification. A copy of this Investment Policy will be provided upon request to the senior management of any financial institution that is approved to transact business with the Town in order that it is appraised of the policies of the Town. The certification must be signed and executed by a senior member of the fi- nancial institution before any business is conducted. Financial Overview & Policies 81 Financial Overview & Policies AGENCY: A debt security issued by a federal or federally sponsored agency. Federal agencies are backed by the full faith and credit of the U.S. Govern- ment. Federally sponsored agencies (FSAs) are backed by each particular agency with a market perception that there is an implicit government guaran- tee. An example of federal agency is the Government National Mortgage As- sociation (GNMA). An example of a FSA is the Federal National Mortgage Asso- ciation (FNMA). ASKED: The price at which securi- ties are offered. BANKERS’ ACCEPTANCE (BA): A draft or bill or exchange accepted by a bank or trust company. The accepting institution guarantees payment of the bill, as well as the issuer. BASIS POINT: A unit of measure- ment used in the valuation of fixed- income securities equal to 1/100 of 1 percent of yield (e.g., “1/4” of 1 percent is equal to 25 basis points). BID: The price offered by a buyer of securities. (When you are selling se- curities, you ask for a bid.) See Offer. BROKER: A broker brings buyers and sellers together for commission. CERTIFICATE OF DEPOSIT (CDs): A time deposit with a specific maturity evidenced by a certificate. Large- de- nomination CDs are typically negotia- ble. CERTIFICATE OF DEPOSIT ACCOUNT REGISTRY SERVICES (CDARS): A network of financial institutions offering CDs that diversify large deposits be- tween banks at FDIC limits. COLLATERAL: Securities, evidence of deposit or other property which a borrower pledges to secure repayment of a loan. Also refers to securities pledged by a bank to secure deposits of public monies. COMPREHENSIVE ANNUAL FINAN- CIAL REPORT (CAFR): The official annual report for the Town. It includes five combined statements for each in- dividual fund and account group pre- pared in conformity with GAAP. It also includes supporting schedules neces-sary to demonstrate compliance with finance-related legal and contractual provisions, extensive introductory ma-terial, and a detailed Statistical Sec-tion. COUPON: (a) The annual rate of interest that a bond’s issuer promises to pay the bondholder on the bond’s face value. (b) A certificate attached to a bond evidencing interest due on a payment date. DEALER: A dealer, as opposed to a broker, acts as a principal in all trans- actions, buying and selling for his own account. DEBENTURE: A bond secured only by the general credit of the issuer. DELIVERY VERSUS PAYMENT: There are two methods of delivery of securi- ties: delivery versus payment and de- livery versus receipt. Delivery versus payment is delivery of securities with an exchange of money for the securi- ties. Delivery versus receipt is delivery of securities with an exchange of a signed receipt for the securities. DISCOUNT: The difference between the cost price of a security and its ma- turity when quoted at lower than face value. A security selling below original offering price shortly after sale also is considered to be at a discount. DISCOUNT SECURITIES: Non - interest bearing money market instru- ments that are issued a discount and redeemed at maturity for full face value (e.g., U.S. Treasury Bills). GLOSSARY 82 DIVERSIFICATION: Dividing invest- ment funds among a variety of securi- ties offering independent returns. FEDERAL CREDIT AGENCIES: Agencies of the Federal Government set up to supply credit to various clas- ses of institutions and individuals, e.g., S&L’s small business firms, students, farmers, farm cooperatives, and export- ers. FEDERAL DEPOSIT INSURANCE CORPORATION (FDIC): A federal agency that insures bank deposits, cur- rently up to $250,000 per deposit. FEDERAL FARM CREDIT BUREAU (FFCB): Debt securities issued by banks of the Farm Credit System, a leading provider of loans, leases and services to rural communities and U.S. agriculture. FEDERAL FUNDS RATE: The rate of interest at which Fed funds are traded. This rate is currently pegged by the Federal Reserve through open-market operations. FEDERAL HOME LOAN BANKS (FHLB): The institutions that regu- late and lend to savings and loan asso- ciations. The Federal Home Loan Banks play a role analogous to that played by the Federal Reserve Banks vis-a-vis member commercial banks. FEDERAL NATIONAL MORTGAGE AS- SOCIATION (FNMA): FNMA, like GNMA was chartered under the Federal National Mortgage Association Act in 1938. FNMA is a federal corporation working under t he auspices of the De- partment of Housing and Urban Devel- opment (HUD). It is the largest single provider of residential mortgage funds in the U.S. Fannie Mae, as the corpora- tion is called, is a private stockholder- owned corporation. The corporation’s purchases include a variety of adjustable mortgages and second loans, in addition to fixed-rate mortgages. FNMA’s securities are also highly liquid and are widely accepted. FNMA assumes and guarantees that all security holders will receive timely pay- ment of principal and interest. FEDERAL OPEN MARKET COMMIT- TEE (FOMC): Consists of seven members of the Federal Reserve Board and five of the twelve Federal Reserve Bank Presidents. The President of the New York Federal Reserve Bank is a permanent member, while the other Presidents serve on a rotating basis. The Committee periodically meets to set Federal Reserve guidelines regard- ing purchases and sales of Government Securities in the open market as a means of influencing the volume of bank credit and money. FEDERAL RESERVE SYSTEM: The central bank of the U.S. created by Congress and consisting of a seven- member Board of Governors in Wash- ington, D.C., 12 regional banks and about 5,700 commercial banks that are members of the system. FINANCIAL REGULATORY INDUS- TRY AUTHORITY: A regulatory body created after the merger of the Nation- al Association of Securities Dealers and the New York Stock Exchange’s regula- tion committee. The Financial Industry Regulatory Authority is responsible for governing business between brokers, dealers and the investing public. By consolidating these two regulators, FINRA aims to eliminate regulatory overlap and cost inefficiencies. GOVERNMENT NATIONAL MORT- GAGE ASSOCIATION (GNMA OR GINNIE MAE): Securities influenc- ing the volume of bank credit guaran- teed by GNMA and issued by mortgage Financial Overview & Policies 83 Financial Overview & Policies bankers, commercial banks, savings and loan associations, and other insti- tutions. Security holder is protected by full faith and credit of the U.S. Govern- ment. Ginnie Mae securities are backed by the FHA, VA or FMHM mortgages. The term “pass-throughs” is often used to describe Ginnie Maes. GOVERNMENT SPONSORED ENTER- PRISE AGENCIES (GSE): U.S. Gov- ernment Agencies, Government Spon- sored Enterprises (GSEs), Corporations or Instrumentalities of the US Govern- ment – Federal Instrumentality Securi- ties include, but are not limited to, Fed- eral National Mortgage Association (FNMA), the Federal Home Loan Mort- gage Corporation (FHLMC), Federal Home Loan Banks (FHLB), and the Fed-eral Farm Credit Bureau (FFCB). INTERNAL CONTROLS: An internal control structure designed to ensure that the assets of the entity are pro- tected from loss, theft, or misuse. The internal control structure is designed to provide reasonable assurance that these objectives are met. INVESTMENT ADVISOR: An inde- pendent person or group of people that makes investment recommendations or conducts securities analysis for a fee. LIQUIDITY: A liquid asset is one that can be converted easily and rapidly into cash without a substantial loss of value. In the money market, a security is said to be liquid if the spread be- tween bid and asked prices is narrow and reasonable size can be done at those quotes. LOCAL GOVERNMENT INVESTMENT POOL (LGIP): The aggregate of all funds from political subdivisions that are placed in the custody of the State Treasurer for investment and reinvest- ment. MARKET VALUE: The price at which a security is trading and could presum- ably be purchased or sold. MASTER REPURCHASE AGREEMENT: A written contract covering all future transactions between the parties to re- purchase/reverse repurchase agree- ments that establishes each party’s rights in the transactions. A master agreement will often specify, among other things, the right of the buyer- lender to liquidate the underlying secu- rities in the event of default by the sell- er-borrower. MATURITY: The date upon which the principal or stated value of an in- vestment becomes due and payable. MONEY MARKET: The market in which short-term debt instruments (i.e., bills, commercial paper, bankers’ acceptances, etc.) are issued and trad- ed. OFFER: The price asked by a seller of securities. (When you are buying securities, you ask for an offer.) See Asked and Bid. OPEN MARKET OPERATIONS: Pur- chases and sales of government and certain other securities in the open market by the New York Federal Reserve Bank as directed by the FOMC in order to influence the volume of money and credit in the economy. Purchases inject reserves into the bank system and stimulate growth of money and credit; sales have the opposite effect. Open market operations are the Feder- al Reserve’s most important and most flexible monetary policy tool. PORTFOLIO: Collection of securities held by an investor. PRIMARY DEALER: A group of gov- ernment securities dealers who submit daily reports of market activity and po- sitions and monthly financial state- 84 ments to the Federal Reserve Bank of New York and are subject to its infor- mal oversight. Primary dealers include SEC-registered securities broker- dealer, banks and a few unregulated firms. PRUDENT PERSON RULE: An invest- ment standard. In some states, the law requires that a fiduciary, such as a trus- tee, may invest money only in a list of securities selected by the custody state - the so-called legal list. In other states, the trustee may invest in a security if it is one which would be bought by a pru- dent person of discretion and intelli- gence who is seeking a reasonable in- come and preservation of capital (see ARIZ. REV. STAT. §§ 14-10902 and 14- 10906). QUALIFIED PUBLIC DEPOSITORIES: A financial institution which does not claim exemption from the payment of any sales or compensation use or ad valorem taxes under the laws of this state, which has segregated for the benefit of the commission eligible col- lateral having a value of not less than its maximum liability and which has been approved by the Public Deposit Protection Commission to hold public deposits. RAINY DAY FUND: Designed to set revenue aside during times of above- trend economic growth and to utilize this revenue during times of below- trend growth. A Rainy Day Fund can be used to balance the budget which is the intended purpose. RATE OF RETURN: The yield obtain- able on a security based on it purchase price or its current market price. This may be the amortized yield to maturity on a bond the current income return. REPURCHASE AGREEMENT (RP OR REPO): A holder of securities sells these securities to an investor with an agreement to repurchase them at a fixed price on a fixed date. The secu- rity “buyer” in effect lends the “seller” money for the period of the agree- ment, and the terms of the agreement are structured to compensate him for this. Dealers use RP extensively to fi- nance their positions. Exception: When the Fed is said to be doing RP, it is lending money, which is, increasing bank reserves. SAFEKEEPING: A service to cus- tomers rendered by banks for a fee whereby securities and valuables of all types and descriptions are held in the bank’s vaults for protection. SECONDARY MARKET: A market made for the purchase and sale of outstanding issues following the initial distribution. SECURITIES & EXCHANGE COM- MISSION (SEC): Agency created by Congress to protest investors in securi- ties transactions by administering se- curities legislation. SIFMA: Securities Industry and Financial Markets Association. TOTAL RETURN: The sum of all in- vestment income plus changes in the capital value of the portfolio. For mu- tual funds, return on an investment is composed of share price appreciation plus any realized dividends or capital gains. This is calculated by taking the following components during a certain time period: (Price Appreciation) + (Dividends paid) + (Capital Gains) = Total Return. U.S. TREASURY BILLS: A non - interest bearing discount security is- sued by the U.S. Treasury to finance the national debt. Most bills are is- sued to mature in three months, six months, or one year. Financial Overview & Policies 85 U.S. TREASURY BONDS: Long -term U.S. government debt securities with maturities of ten years or longer and issued in minimum denominations of $1,000. Currently, the longest out- standing maturity for such securities is 30 years. U.S. TREASURY NOTES: Intermedi- ate U.S. government debt securities with maturities of 1 to 10 years and is- sued in denominations ranging from $1,000 to $1 million or more. US. TREASURY OBLIGATION: Direct obligations of the U.S. Treasury whose payment is guaranteed by the U.S. YIELD: The current rate of return on an investment security generally ex- pressed as a percentage of the securi- ty’s current price. Financial Overview & Policies Appendix A Authorized Investment Officers PFM Asset Management LLC Attn: Paulina Woo 1820 East Ray Road Chandler, Arizona 85225 Town Manager Town Accountant (limited in ministerial acts only) Town Clerk (limited in ministerial acts only) 86 Financial Overview & Policies 87 Budget Highlights Budget Highlights 88 Budget Introduction In FY09-10, the Town introduced program budgeting. Program budgeting is a method of budgeting expenditures to meet programmatic objectives rather than budgeting on a line-item basis. In program budgeting, specific performance objec- tives or outcomes are defined, and the costs to produce those outcomes are enu- merated in the budget. In FY16-17, although the budget document continues with Department level, Division level and Program level budgets, many programs were combined for more efficient managing and reporting purposes. There were also two new Departments created. The new General Government Department was cre- ated for all non-departmental, Town-wide items and the Public Works Department was created out of the Development Services Department to oversee the Streets, Facilities, and Engineering Divisions, as well as the Outside Inspections program. For a summary of all Town programs, please see pages 119-120. The proposed budget is based on revenue projec- tions that are conservative and based on the expecta- tion that the local and na- tional economy will recov- er quickly with some mod- est growth in revenues next fiscal year. Revenues for all funds are $27.4 with expenditures of $33.8M with some funds utilizing reserves for pro- jects. It should be noted that the State-shared sources of revenue are very sensitive to the fluctuations of the economy as well as to an- nual legislative appropria- tions. Additionally, these revenues are distributed to cities and towns based on each municipality’s popula- tion compared to that of the entire State. Some municipalities have abun- dant available land for ex- pansion and will continue to grow in population, while others, like Fountain Hills, have fixed borders and limited population growth. Over time, Fountain Hills will, therefore, represent a smaller and smaller percentage of the total and will be allocated a smaller percentage of State-shared revenues. During FY15-16, seven cities and towns had a mid-decade census done in order to capture a bigger portion of State-shared revenues, which in turn, has had a negative impact on the Town’s portion. Budget Highlights General Fund 75%Streets 14% Special Revenue 5% Eagle Mtn CFD 2% Capital Projects 4% TOWN OF FOUNTAIN HILLS REVENUES BY FUND Total All Funds = $27.4M General Fund 59% Streets 16% Special Revenue 4% Environmental 2% Capital Projects 17% Facilities Replacement Fund 2% TOWN OF FOUNTAIN HILLS EXPENDITURES BY FUND Total All Funds = $33.8M 89 Budget Highlights 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, State-shared revenues, license and permit fees, and charges for services provide the major resources to fund programs and services delivered by the Town. The economic recession forced the Town to focus on the delivery of core services, defined by the Town Council as:  Public Safety – Fire and Emergency Medical, Law Enforcement  Administration – Finance, Administrative Services, Information Technology, Purchasing, Town Manager, Town Clerk, General Government, and Judicial  Public Works - Facilities, Engineering  Development Services – Building Safety, Planning & Zoning, Code Enforce- ment, Mapping & Graphics  Community Services – Parks, Recreation, Senior Services, Community Cen- ter, Volunteers, Tourism, Open Space and Trails 91% of the Town’s General Fund re- sources are derived from the local taxes and State-shared rev- enues. Local Taxes 55% Intergovernmental 36% Permits, Licenses, Fees 5%Building Revenue 4% Town of Fountain Hills FY20-21 General Fund Operating Revenues TOTAL = $19.3M $12.6 $13.3 $13.2 $14.1 $14.7 $15.0 $15.9 $17.5 $17.6 $19.3 $- $5.0 $10.0 $15.0 $20.0 $25.0 FY11-12 FY12-13 FY13-14 FY14-15 FY15-16 FY16-17 FY17-18 FY18-19 FY19-20 FY20-21MillionsGeneral Fund RevenuesIn FY12, the Town received $12.6M in General Fund reve- nues. The economic recovery saw a re- turn to an upward revenue stream. The drop in FY14 reflects the reallocation of the Vehicle License Tax revenue (historically availa- ble for General Fund expenditures) to the Streets Fund (HURF) for pavement man- agement. 90 In FY14-15 , the Town Council directed staff to develop a new program for funding maintenance of capital assets – those projects that are necessary to maintain the Town’s infrastructure but are not considered a capital improvement program (i.e., under the $50,000 threshold for capital). In FY15-16, the Town had a Capital Re- serve Study performed to identify those items. The Facilities Replacement fund is normally funded through transfers from the General Fund. However, FY20-21 pro- jects will be completed utilizing accumulated fund balance from prior fiscal years. Following is a brief summary of what is included in the proposed General Fund budget for FY20-21: Salaries and Benefits - For FY20-21, an increase of 1.25 Full-Time Equivalents is proposed. This proposal adds a full-time Groundskeeper II position and an in- crease in hours for a Customer Service Representative II position at the Communi- ty Center. Most Town employees’ salaries and benefits are funded through the General Fund; salaries normally include overtime, sick leave, and vacation. The Town Manager is also proposing a cost of living increase of 2.5%, beginning Janu- ary 1, 2021. Because local governments are primarily a service industry, salaries and benefits comprise a major portion of expenditures. For Fountain Hills, salaries and benefits represent 24% of the proposed General Fund budget in FY20-21 and 16% of the total budget. Employee benefits include health, vision and dental insurance, employer taxes, disability, workers’ compensation insurance, and employer match of retirement contributions. The Town does not provide a defined benefit pension plan for em- ployees but rather matches em- ployee contributions into a 401(a) account maintained by the Inter- national City/County Managers As- sociation (ICMA). Contractual Services - The Town contracts with outside professionals for a num- ber of services which represents 35% of the total budget (51% of the General Fund). Two major contracts included in this category are: 1. Fire protection and emergency medical services ($3,833,346), currently un- der contract with Rural/Metro Corporation – 3% increase; and 2. Police protection ($4,918,265), currently provided through the Maricopa County Sheriff’s Office – 5.2% increase. These two contracts alone represent 42% of the General Fund budget in FY20-21. Contractual Services also includes annual landscape maintenance contracts, equip- ment and vehicle repairs, and facilities maintenance (janitorial, building mainte- nance, etc.). Maintenance of the Town’s 119 acres of parks, Town medians, dams, and washes are provided by independent contractors. These contracts are solicited The chart on the right shows that the number of Town employees is only slightly higher than at the lowest level in over sixteen years while the level of service to the citizens has remained constant. Budget Highlights 108 115 106 77 77 82 87 88 87 80 61 58 57 51 52 52 54 56 56 61 62 40 50 60 70 80 90 100 110 120 FY01 FY05 FY10 FY15 FY21 Number of Full-Time Equivalent Employees 91 through a bid process to obtain the most competitive price for the Town. With pavement management a high priority, the Town is placing an emphasis on infra- structure maintenance that has been deferred. Maintenance/Utilities - In FY20-21, maintenance/utilities represent 5% of the total General Fund budget. The Town owns nine buildings that require mainte- nance on HVAC equipment, interior and exterior surfaces, electric, plumbing, fire systems, and irrigation. Town staff has been unable to dedicate the resources nec- essary to maintain the buildings in an optimum condition; consequently future budgets will require increasing amounts of maintenance funding to bring the build- ings up to current standards. Supplies and Services - Supplies and Services include operational costs such as insurance, office supplies, etc. for Town Hall and other Town-owned buildings and accounts for 4% of the operating budget. The Town owns the Library/Museum, the Community Center, two fire stations, a vehicle maintenance facility, the Kiwanis building, Town Hall, and the Streets operations building. Capital Outlays - Capital outlays include the purchase of furniture and equip- ment, and the improvement of Town facilities with a cost of at least $10,000 but less than $50,000. Expenditures of $50,000 or more are included in the Capital Improvement Program. The Facilities Replacement Fund is used to cover the costs of other infrastructure type items, such as buildings, parks, and the fountain. Streets (HURF) Fund Overview The Streets (HURF) Fund is a fund restricted to streets and transportation related purposes. With an operational priority for pavement management, 70% the reve- nue from Vehicle License Taxes (VLT) will be appropriated within the Streets fund to be used for pavement maintenance (not reconstruction). The available re- sources in Streets are anticipated at $4.5M in FY20-21, including $816,689 from VLT. Road maintenance has not been adequately funded for several years which has resulted in serious degradation of the Town’s 163 miles of streets. The FY20- 21 program of work will continue to focus on resolving the long-term fiscal needs for road maintenance. The Streets (HURF) fund provides funding for the following Town programs:  Streets Department—Administration, including Legal Services and Traffic Signals  Open Space  Pavement Management  Street Signs  Vehicle Maintenance Excise Tax Funds Overview The Excise Tax/Downtown Fund was created in FY00-01 designating 0.1% of the Town’s 2.9% local sales tax to downtown development. Subsequently, on April 18, 2013, the Town Council established an additional fund by splitting the original Excise Tax/Downtown Fund into two separate funds:  Downtown Strategy Fund (original Excise Tax/Downtown Fund)  Economic Development Fund Budget Highlights 92 Both funds were originally funded through the dedicated 0.1% of local sales tax with a 60/40 split—60% of dedicated revenue allocated to the new Economic De- velopment Fund and 40% of dedicated revenue allocated to the Downtown Strate- gy Fund. The residual fund balance of the Excise Tax/Downtown Fund as of June 30, 2013, was included with any new revenue in the Downtown Strategy Fund to be used towards Town Center infrastructure improvement and develop- ment. The Economic Development Fund, originally, was funded with 60% of the 0.1% local sales tax to be available for any economic development purpose. The Eco- nomic Development budget also included a proposal to create a new fund for Tour- ism in the amount of $103,000 as well as implementation of the Economic Devel- opment Plan adopted by the Council in March 2013. A resolution (2014-50) was passed on December 4, 2014, changing the allocations to 80% to the Economic Development Fund and 20% to the Downtown Strategy Fund effective January 1, 2015. Special Revenue Fund Overview All special revenues (grants, etc.) are received in the Special Revenue Fund. Oper- ating expenses are also recorded in the Special Revenue Fund unless the projects supported are in the Capital Improvement Program or the funds are in support of ongoing Town services. In 2013, with proceeds from a $60,000 grant from the State lottery funds (LTAF II), the Town contracted with Valley Metro for a study on possible transportation programs in Fountain Hills. The study was conducted throughout the community to get a wide response as to the transportation needs; as a result, the Town created the Ride-Choice program. Grant funds will be used for that program as long as they are available. Additionally, a portion of subsequent funding was used to con- struct the first bus shelter in Town as part of a Park N’ Ride approach near Town Hall. Included in the FY20-21 budget is an appropriation in the event that unanticipated grants become available. Other revenues in the Special Revenue Funds are the Court Enhancement Fund, the Environmental Fund, and the Cottonwoods Mainte- nance District Fund – these funds are committed/assigned/restricted for specific purpose and not available for general operations. Debt Service Funds Overview The Town retired all of its General Obligation and Municipal Property Corporation bonds in FY19-20, as scheduled. There is one-year of debt service remaining for Eagle Mountain Community Facilities District. Total debt service revenues for FY20 -21 are budgeted at $400,001. These revenues will be collected as a secondary property tax from residents of the District, and the final bond payments for the District will be paid during FY20-21. Development Fee Funds Overview With limited funds from development anticipated, there are no capital projects budgeted to be funded from development fees in the next fiscal year. However, prior legislation required that the Town update the Infrastructure Improvement Plan (IIP) and update the development fee schedule. This study was initiated in Budget Highlights 93 FY18-19, completed in FY19-20 and is the basis for current fees. The study was approved and increased the number of fee categories from two to three:  Fire & Emergency Medical Service  Parks/Recreation  Streets Per statute, the Town will update the Infrastructure Improvement Plan and fee schedule in FY24-25. Capital Projects Fund Overview The Capital Projects Fund resources are derived from one time construction sales tax (50% of revenues – the other 50% funds operations in the General Fund), bond proceeds, or other revenue sources. The following major project areas are programmed for FY20-21 with total expenditures for capital projects budgeted at $5.5M: $2.6M for Stormwater Management & Drainage projects $1.7M for Street & Sidewalk projects $0.7M for Parks & Recreation projects $0.5M for other minor projects & contingency The complete list of projects is shown on page 299. Budget Highlights Parks & Recreation Projects 14% Stormwater Management/Drainage Projects 49%Street/Sidewalk Projects 33% Facilities Projects 3% Traffic Signal Projects 1% FY20 -21 Projects by Project Type TOTAL = $5.5M 94 Budget Highlights General Fund Debt Service Funds Capital Project Funds Non-Major Funds Total Revenues: Sales Tax 10,422,177$ -$ 904,152$ 1,306,878$ 12,633,207$ Property Tax - 400,001 - 6,643 406,644 Franchise Tax 211,974 - - - 211,974 Intergovernmental 6,840,899 - 17,500 3,937,072 10,795,471 Fines and Forfeitures 185,004 - - 49,000 234,004 Licenses and Permits 992,737 - 679,311 - 1,672,048 Charges for Services 221,550 - - 300,000 521,550 Leases and Rents 278,590 - - - 278,590 Investment Earnings 24,000 2,280 26,400 38,892 91,572 Other 81,355 - - 450,542 531,897 Sub total Revenues 19,258,286 402,281 1,627,363 6,089,027 27,376,957 Transfers In - - 975,000 656,240 1,631,240 Sub total 19,258,286 402,281 2,602,363 6,745,267 29,008,197 Use/(Source) of Reserves 250,000 6,319 3,936,511 2,279,204 6,472,034 Total Revenues 19,508,286$ 408,600$ 6,538,874$ 9,024,471$ 35,480,231$ Expenditures: Current: General Government: Mayor and Council 74,882$ -$ -$ -$ 74,882$ Administration 2,339,663 408,600 262,535 1,826,436 4,837,234 General Government 2,204,942 - - 76,989 2,281,931 Municipal Court 402,604 - - 24,800 427,404 Total General Government 5,022,091 408,600 262,535 1,928,225 7,621,451 Public Safety: Fire & Emergency Medical 4,197,330 - - - 4,197,330 Law Enforcement 5,029,469 - - - 5,029,469 Total Public Safety 9,226,799 - - - 9,226,799 Community Services 2,942,046 - 775,000 144,649 3,861,695 Public Works 1,120,866 - 4,459,695 6,612,001 12,192,562 Development Services 946,484 - - - 946,484 Sub total 19,258,286 408,600 5,497,230 8,684,875 33,848,991 Transfers Out 250,000 - 229,700 1,151,540 1,631,240 Total Expenditures 19,508,286$ 408,600$ 5,726,930$ 9,836,415$ 35,480,231$ Note: See page 42 for a listing of the funds included in each column. FY20-21 Summary of Proposed Budget Revenues and Expenditures - All Funds 95 Budget Highlights Public Works 36%Public Safety 27% General Government 23% Community Services 11% Development Services 3% TOWN OF FOUNTAIN HILLS NET EXPENDITURES BY FUNCTION -ALL FUNDS Total = $33.8M Sales Tax 46%Inter- governmental 40% Licenses and Permits 6% Charges for Services 2% Other 2% Property Tax 1% Leases and Rents 1% Fines and Forfeitures 1% Franchise Fee 1% TOWN OF FOUNTAIN HILLS NET REVENUES BY TYPE -ALL FUNDS Total = $27.4M 96 Budget Highlights FY17-18 Actual FY18-19 Actual FY19-20 Revised Budget FY20-21 Proposed Budget Revenues: Taxes: Sales Tax 10,311,578$ 11,491,123$ 10,995,809$ 12,633,207$ Property Tax 2,286,081 2,427,731 2,094,172 406,644 Franchise Tax 421,682 423,947 187,231 211,974 Intergovernmental 8,266,027 8,401,676 10,534,886 10,795,471 Fines and Forfeitures 182,998 130,483 228,001 234,004 Licenses and Permits 2,004,386 2,040,622 1,585,419 1,672,048 Charges for Services 254,122 181,105 497,800 521,550 Leases and Rents 282,530 280,801 283,584 278,590 Investment Earnings 158,861 554,549 79,536 91,572 Other 601,425 347,141 433,449 531,897 Sub total Revenues 24,769,690 26,279,178 26,919,887 27,376,957 Transfers In 4,582,728 3,672,532 - 1,631,240 Sub total 29,352,418 29,951,710 26,919,887 29,008,197 Use/(Source) of Reserves 639,707 2,265,296 7,562,806 6,472,034 Total Revenues 29,992,125$ 32,217,006$ 34,482,693$ 35,480,231$ Expenditures: Current: General Government: Mayor and Council 77,779$ 81,836$ 98,544$ 74,882$ Administration 5,443,898 5,273,601 6,734,965 4,837,234 General Government 1,432,215 309,237 1,225,771 2,281,931 Municipal Court 326,699 327,240 552,078 427,404 Total General Government 7,280,591 5,991,914 8,611,358 7,621,451 Public Safety: Fire & Emergency Medical 5,703,533 6,458,719 4,030,800 4,197,330 Law Enforcement 3,792,675 4,153,699 4,785,920 5,029,469 Total Public Safety 9,496,208 10,612,418 8,816,720 9,226,799 Community Services 3,549,873 4,027,245 3,415,874 3,861,695 Public Works 4,207,210 7,046,689 10,618,520 12,192,562 Development Services 875,515 866,208 1,100,296 946,484 Sub total Expenditures 25,409,397 28,544,474 32,562,768 33,848,991 Transfers Out 4,582,728 3,672,532 1,919,925 1,631,240 Total Expenditures 29,992,125$ 32,217,006$ 34,482,693$ 35,480,231$ Historical Summary of Revenues and Expenditures - All Funds 97 Budget Highlights $- $2 $4 $6 $8 $10 $12 $14 $16 FY17-18 Actual FY18-19 Actual FY19-20 Budget FY20-21 BudgetMillionsTown of Fountain Hills Revenues -By Year and Type Taxes Intergovernmental Other $- $2 $4 $6 $8 $10 $12 $14 FY17-18 Actual FY18-19 Actual FY19-20 Budget FY20-21 BudgetMillionsTown of Fountain Hills Expenditures -By Year and Function General Government Public Safety Public Works Community Services Development Services 98 Budget Highlights Fund/Department FY17-18 Actual FY18-19 Actual FY19-20 Revised Budget FY20-21 Proposed Budget FY20-21 Proposed Budget Summary of Expenditures General Fund Mayor & Council 77,779$ 81,836$ 98,544$ 74,882$ Administration 2,290,065 2,156,946 2,057,198 2,339,663 General Government 204,809 263,431 634,364 2,204,942 Municipal Court 321,152 325,550 397,278 402,604 Public Works 795,607 837,523 1,171,938 1,120,866 Development Services 730,745 866,208 1,100,296 946,484 Community Services 2,177,851 2,227,249 2,674,635 2,942,046 Fire & Emergency Medical 3,866,395 3,892,841 4,021,300 4,197,330 Law Enforcement 3,792,675 4,153,699 4,785,920 5,029,469 Total General Fund 14,257,078 14,805,283 16,941,473 19,258,286 Total General Fund 14,257,078$ 14,805,283$ 16,941,473$ 19,258,286$ Special Revenue Funds Public Works 2,611,947$ 4,563,969$ 5,194,062$ 5,120,822$ Total Streets (HURF) Fund 2,611,947 4,563,969 5,194,062 5,120,822 Administration 56,044 38,204 46,400 38,400 Total Downtown Strategy Fund 56,044 38,204 46,400 38,400 Administration 183,332 224,051 285,482 241,270 Total Economic Development Fund 183,332 224,051 285,482 241,270 Administration 206,514 235,302 182,724 208,266 Total Tourism Fund 206,514 235,302 182,724 208,266 Administration 157,945 91,211 1,662,525 1,338,500 Total Special Revenue Fund 157,945 91,211 1,662,525 1,338,500 Community Services 29,234 22,791 139,340 144,649 Total Public Art Fund 29,234 22,791 139,340 144,649 Municipal Court 5,547 1,690 154,800 24,800 Total Court Enhancement Fund 5,547 1,690 154,800 24,800 Public Works 530,655 501,717 735,255 666,904 Total Environmental Fund 530,655 501,717 735,255 666,904 Administration 4,696 4,530 5,101 5,131 Total Cottonwoods Maint District 4,696 4,530 5,101 5,131 Total Special Revenue Funds 3,785,914$ 5,683,465$ 8,405,689$ 7,788,742$ 99 Budget Highlights Fund/Department FY17-18 Actual FY18-19 Actual FY19-20 Revised Budget FY20-21 Proposed Budget FY20-21 Proposed Budget Summary of Expenditures Debt Service Funds Administration 2,121,550$ 1,972,850$ 1,663,800$ 350$ Total Gen Oblig Debt Service 2,121,550 1,972,850 1,663,800 350 Administration 407,724 405,767 409,192 407,240 Total Eagle Mtn CFD Debt Service 407,724 405,767 409,192 407,240 Administration 377,696 381,854 305,870 1,010 Total Munic Prop Corp Debt Service 377,696 381,854 305,870 1,010 Total Debt Service Funds 2,906,970$ 2,760,471$ 2,378,862$ 408,600$ Capital Projects Funds Administration 2,791$ 2,720$ 116,673$ 262,535$ Public Works 250,012 571,328 2,358,378 4,459,695 Community Services 1,135,740 1,120,213 485,000 735,000 Fire & Emergency Medical 1,837,138 2,558,246 - - Total Capital Projects Fund 3,225,681 4,252,507 2,960,051 5,457,230 Fire & Emergency Medical - 7,632 9,500 - Total Fire/Emergency Dev Fee - 7,632 9,500 - Public Works - - - - Total Streets Dev Fee - - - - Community Services - 33,094 40,500 40,000 Total Park/Rec Dev Fee - 33,094 40,500 40,000 Total Capital Projects Funds 3,225,681$ 4,293,233$ 3,010,051$ 5,497,230$ Internal Service Funds Public Works 163,759 437,028 819,144 819,144 Total Facilities Replacement Fund 163,759 437,028 819,144 819,144 Administration 61,229 - - 25,000 Total Technology Replacement Fund 61,229 - - 25,000 General Government 1,008,231 176,401 591,407 51,989 Public Works - - 339,743 - Total Vehicle/Equip Repl Fund 1,008,231 176,401 931,150 51,989 Total Internal Service Funds 1,233,219$ 613,429$ 1,750,294$ 896,133$ Total Expenditures 25,408,862$ 28,155,881$ 32,486,369$ 33,848,991$ 100 The Capital Projects and Non-Major Funds will be utilizing accumulated reserves, as well as funds transferred into those funds, for one time capital expenditures. Budget Highlights General Fund Debt Service Funds Capital Projects Funds Non-Major Funds Total Revenues: Sales Tax 10,422,177$ -$ 904,152$ 1,306,878$ 12,633,207$ Property Tax - 400,001 - 6,643 406,644 Franchise Tax 211,974 - - - 211,974 Intergovernmental 6,840,899 - 17,500 3,937,072 10,795,471 Fines and Forfeitures 185,004 - - 49,000 234,004 Licenses and Permits 992,737 - 679,311 - 1,672,048 Charges for Services 221,550 - - 300,000 521,550 Leases and Rents 278,590 - - - 278,590 Investment Earnings 24,000 2,280 26,400 38,892 91,572 Other 81,355 - - 450,542 531,897 Sub total 19,258,286 402,281 1,627,363 6,089,027 27,376,957 Transfers In - - 975,000 656,240 1,631,240 Total Revenues 19,258,286 402,281 2,602,363 6,745,267 29,008,197 Expenditures: General Government: Mayor and Council 74,882 - - - 74,882 Administration 2,339,663 408,600 262,535 1,826,436 4,837,234 General Government 2,204,942 - - 76,989 2,281,931 Municipal Court 402,604 - - 24,800 427,404 Total General Government 5,022,091 408,600 262,535 1,928,225 7,621,451 Public Safety: Fire & Emergency Medical 4,197,330 - - - 4,197,330 Law Enforcement 5,029,469 - - - 5,029,469 Total Public Service 9,226,799 - - - 9,226,799 Community Services 2,942,046 - 775,000 144,649 3,861,695 Public Works 1,120,866 - 4,459,695 6,612,001 12,192,562 Development Services 946,484 - - - 946,484 Sub total 19,258,286 408,600 5,497,230 8,684,875 33,848,991 Transfers Out 250,000 - 229,700 1,151,540 1,631,240 Total Expenditures 19,508,286 408,600 5,726,930 9,836,415 35,480,231 Net Change in Fund Balance (250,000) (6,319) (3,124,567) (3,091,148) (6,472,034) Fund Balance Beginning of Year - estimated 7,833,744 670,030 4,681,030 4,617,654 17,802,458 End of Year 7,583,744$ 663,711$ 1,556,463$ 1,526,506$ 11,330,424$ Fund Balance Percentage Change (3%)(1%)(67%)(67%)(36%) Note: See page 42 for a listing of the funds included in each column. FY20-21 Projected Changes in Fund Balances 101 Revenue Summary Revenue Summary 102 Revenue This section provides a broad overview of the revenues included in the FY20-21 budget. Information is presented for each fund and fund type. Total revenues for all funds are estimated at $27,376,957 excluding transfers. The General Fund portion represents approximately 70% of the total. Special Revenue funds, including the Streets (HURF) Fund, represent another 21% of the budget. Capital Projects is 6%, Internal Service funds are 2%, and Debt Service funds rep- resent the final 1%. Revenue Summary General Fund 70% Special Revenue Funds 21% Capital Projects Funds 6% Internal Service Funds 2% Debt Service Funds 1% TOWN OF FOUNTAIN HILLS REVENUES BY FUND TYPE Total All Funds = $27.4M 103 Revenue Summary Description FY17-18 Actual FY18-19 Actual FY19-20 Revised Budget FY20-21 Proposed Budget FY20-21 Proposed Budget Summary of Revenues General Fund Sales Tax-Local 8,417,615$ 9,198,866$ 9,125,999$ 10,422,177$ Franchise Fees 421,683 423,947 187,231 211,974 Liquor License Fees 2,600 1,750 2,000 2,000 Business License 133,280 137,869 141,696 139,764 Animal License 36,174 - - - Building Permit 251,517 230,326 240,588 394,073 Sign Permits 6,935 8,905 6,100 6,100 Planning & Zoning Fees 6,384 13,212 16,185 15,825 Landscape Permits 23,520 27,300 16,800 44,520 Encroachment Permits 24,887 717,686 25,000 25,000 Variances 2,200 2,500 4,300 5,300 Subdivision Fees 206,768 76,952 52,250 62,250 Special Event Permit 8,800 10,810 8,750 8,750 Engineering Fees 6,600 8,350 5,900 5,600 Plan Review 185,422 159,460 185,969 265,925 Inspection Fees 35,440 18,187 13,250 17,000 Alcohol Permits 240 200 630 630 Third Party Revenues - - 210,000 - Rental Fees 134,007 128,327 156,095 151,100 Non-Taxable Rental 7,301 8,381 7,300 7,301 Cell Tower Lease 141,223 144,093 120,189 120,189 Sales Tax-State 2,352,502 2,476,030 2,583,378 2,815,032 Income Tax-State 3,032,329 2,976,998 3,253,750 3,629,136 Vehicle License Tax - - 336,750 350,010 Fire Insurance Premium Tax 45,347 46,275 46,258 46,721 Program Fees 164,456 174,886 197,800 221,550 Sponsorships 5,858 5,101 5,200 37,200 Donations 37,239 28,496 32,345 345 Reimbursements/Refunds 328 18,785 1,260 1,260 Auction/Recycle Proceeds 39 611 640 640 Restitution/Ins Proceeds 712 115,355 200 200 Miscellaneous Revenue 5,721 5,383 5,310 5,535 Taxable Sales 34,088 32,135 30,810 33,925 Convenience Fees 5,448 3,318 1,500 2,250 Court Fines/Fees 152,161 120,340 179,001 185,004 Abatements 1,575 - - - Interest Income 25,792 136,572 24,000 24,000 Internal Service Charges - - - - Total General Fund 15,916,191 17,457,406 17,224,434 19,258,286 Total General Fund 15,916,191$ 17,457,406$ 17,224,434$ 19,258,286$ Special Revenue Funds Sales Tax-Local 793,197$ 883,932$ 819,678$ 871,254$ Vehicle License Tax 1,011,836 1,061,441 785,748 816,672 Highway User Tax 1,593,514 1,679,594 1,666,476 1,761,600 In-Lieu Fees 20,145 - 200,000 200,000 Adopt-A Street Fee 30 - - - Reimbursements/Refunds - - - - Auction/Recycle Proceeds 1,159 1,504 1,000 1,000 Restitution/Ins Proceeds 989 23,957 30,000 30,000 Interest Income 39,992 91,634 24,000 24,000 Internal Service Charges - - - - Total Streets Fund 3,460,862 3,742,062 3,526,902 3,704,526 104 Revenue Summary Description FY17-18 Actual FY18-19 Actual FY19-20 Revised Budget FY20-21 Proposed Budget FY20-21 Proposed Budget Summary of Revenues Sales Tax-Local 79,320 88,393 81,968 87,120 Interest Income 3,755 28,231 1,260 1,260 Total Downtown Strategy Fund 83,075 116,624 83,228 88,380 Sales Tax-Local 317,280 353,573 327,871 348,504 Taxable Sales - - - - Interest Income 1,150 1,340 240 240 Total Economic Development Fund 318,430 354,913 328,111 348,744 Grants 37,554 35,127 45,001 25,000 Prop 202/Gaming Rev 35,000 35,000 45,000 25,000 Donations 2 - - - Miscellaneous Revenue - 312 - - Taxable Sales 2,243 1,911 - - Convenience Fees 6 - - - Interest Income 932 1,646 180 180 Total Tourism Fund 75,737 73,996 90,181 50,180 Grants - - 1,160,000 1,118,800 LTAF II 101,946 26,211 297,525 65,000 Prop 202/Gaming Rev 56,000 55,000 125,000 125,000 Total Special Revenue Fund 157,946 81,211 1,582,525 1,308,800 In-Lieu Fees 69,491 6,219 100,000 100,000 Donations - - - - Restitution/Ins Proceeds 1,500 - - - Interest Income 2,318 3,434 240 240 Total Public Art Fund 73,309 9,653 100,240 100,240 Grants - - 100,000 - CCEF Revenue 26,924 8,659 46,500 46,500 JCEF Revenue 2,337 1,483 2,500 2,500 Interest Income 589 876 840 900 Total Court Enhancement Fund 29,850 11,018 149,840 49,900 Environmental Fee 488,474 486,924 491,976 - Convenience Fees 75 3 - - Interest Income 7,663 15,997 2,400 2,400 Total Environmental Fund 496,212 502,924 494,376 2,400 Property Tax-Cy 5,471 6,749 6,643 6,643 Interest Income 197 414 72 72 Total Cottonwoods Maint District 5,668 7,163 6,715 6,715 Total Special Revenue Funds 4,701,089$ 4,899,564$ 6,362,118$ 5,659,885$ Debt Service Funds Property Tax-Cy 1,909,924$ 2,011,867$ 1,674,486$ -$ Interest Income 8,494 18,703 1,200 1,200 Total Gen Oblig Bond Debt Service 1,918,418 2,030,570 1,675,686 1,200 105 Revenue Summary Description FY17-18 Actual FY18-19 Actual FY19-20 Revised Budget FY20-21 Proposed Budget FY20-21 Proposed Budget Summary of Revenues Property Tax-Cy 370,686 409,114 413,043 400,001 Interest Income 2,116 3,344 240 240 Total Eagle Mtn CFD Debt Service 372,802 412,458 413,283 400,241 Interest Income 3,811 7,090 840 840 Total Munic Prop Corp Debt Service 3,811 7,090 840 840 Total Debt Service Funds 2,295,031$ 2,450,118$ 2,089,809$ 402,281$ Capital Projects Funds Sales Tax-Local 704,166$ 966,359$ 640,293$ 904,152$ Grants - - 90,000 17,500 Reimbursements/Refunds 103,051 54,211 - - Auction/Recycle Proceeds - - - - Interest Income 22,557 158,048 7,224 19,200 Total Capital Projects Fund 829,774 1,178,618 737,517 940,852 Development Fees 172,727 27,004 31,323 23,988 Interest Income 1,608 5,808 2,400 2,400 Total Fire/Emergency Dev Fee 174,335 32,812 33,723 26,388 Development Fees - - - 301,331 Interest Income - - - - Total Streets Fee - - - 301,331 Development Fees 412,417 113,187 132,702 353,992 Interest Income 5,522 14,898 4,800 4,800 Total Park/Rec Dev Fee 417,939 128,085 137,502 358,792 Total Capital Projects Funds 1,444,723$ 1,387,526$ 915,942$ 1,627,363$ Internal Service Funds Donations 5,400 9,600 - - Interest Income 17,275 38,411 7,200 7,200 Total Facilities Replacement Fund 22,675 48,011 7,200 7,200 Internal Service Charges 56,129 - - 65,000 Vehicle Replacement Charges 5,100 - - - Total Internal Service Fund 61,229 - - 65,000 Auction/Recycle Proceeds 3,839 46,457 25,000 - Interest Income 12,830 26,049 2,400 2,400 Internal Service Charges 1,193 - - - Vehicle Replacement Charges 331,305 268,446 300,184 354,542 Total Vehicle/Equip Repl Fund 349,167 340,952 327,584 356,942 Total Internal Service Funds 433,071$ 388,963$ 334,784$ 429,142$ Total Revenues 24,357,034$ 26,194,614$ 26,592,303$ 27,376,957$ 106 See the following pages for a discussion of the major revenue types, restrictions on use, and major influences for each type. The graphs on the following pages do not represent all of the accounts combined into the above categories. The use of reserves is intended to fund capital projects. Revenue Summary General Fund Debt Service Funds Capital Projects Funds Non-Major Funds Total % of Total Revenues: Sales Tax 10,422,177$ -$ 904,152$ 1,306,878$ 12,633,207$ 36% Property Tax - 400,001 - 6,643 406,644 1% Franchise Tax 211,974 - - - 211,974 1% Intergovernmental 6,840,899 - 17,500 3,937,072 10,795,471 30% Fines and Forfeitures 185,004 - - 49,000 234,004 1% Licenses and Permits 992,737 - 679,311 - 1,672,048 5% Charges for Services 221,550 - - 300,000 521,550 1% Leases and Rents 278,590 - - - 278,590 1% Investment Earnings 24,000 2,280 33,600 31,692 91,572 0% Other 81,355 - - 450,542 531,897 1% Subtotal Revenues 19,258,286 402,281 1,634,563 6,081,827 27,376,957 76% Transfers In - - 975,000 656,240 1,631,240 5% Subtotal 19,258,286 402,281 2,609,563 6,738,067 29,008,197 82% Use/(Source) of Reserves 250,000 6,319 3,936,511 2,279,204 6,472,034 18% Total Revenues 19,508,286$ 408,600$ 6,546,074$ 9,017,271$ 35,480,231$ 100% Note: See page 42 for a listing of the funds included in each column. FY20-21 Revenues by Type 107 Revenue Summary State-shared Sales Tax Revenue General Fund Restrictions Fiscal Year Amount No restrictions on usage. Must be expended for public 2010-11 1,860,421$ 3.5% purposes.2011-12 1,757,297$ -5.5%1 2012-13 1,840,766$ 4.7% 2013-14 1,957,505$ 6.3% 2014-15 2,055,241$ 5.0% 2015-16 2,131,484$ 3.7% 2016-17 2,192,043$ 2.8%1 2017-18 2,352,502$ 7.3% 2018-19 2,476,030$ 5.3% 2019-20 (est.)2,630,053$ 6.2% 2020-21 (est.)2,815,034$ 7.0% 2021-22 (est.)2,843,184$ 1.0% 2022-23 (est.)2,871,616$ 1.0% 2023-24 (est.)2,900,332$ 1.0% 2024-25 (est.)2,929,335$ 1.0% 1 Change as a result of census population Major Influences: Construction Activity, Retail Sales, Population and Economy Revenue census figures (Fountain Hills represents 0.4% of the State total). The next year's 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. Percent Change Assumptions The State assesses a 5.6% sales tax, of which cities and towns share in the collections based on the rel- ation of its population to the total population of all incorporated cities and towns using the Department of $- $0.5 $1.0 $1.5 $2.0 $2.5 $3.0 MillionsSTATE SHARED SALES TAX REVENUE Fiscal years 2011 through 2021 108 Revenue Summary Local Sales Tax All Funds Restrictions Fiscal Year Amount Revenues from the 2.9% local sales tax are allocated to 2010-11 7,844,332$ 2.6% Capital Projects, Pavement Maintenance, Downtown 2011-12 7,779,219$ -0.8% Strategy, Economic Development and General Fund.2012-13 7,957,162$ 2.3% General Fund proceeds are not restricted but must be 2013-14 8,459,267$ 6.3% expended for public purpose.2014-15 8,983,050$ 6.2% 2015-16 9,391,267$ 4.5% 2016-17 9,419,552$ 0.3% 2017-18 10,311,578$ 9.5% 2018-19 11,491,124$ 11.4% 2019-20 (est.)13,172,304$ 14.6% 2020-21 (est.)12,633,209$ -4.1% 2021-22 (est.)12,969,794$ 2.7% 2022-23 (est.)13,607,734$ 4.9% 2023-24 (est.)14,095,010$ 3.6% 2024-25 (est.)14,582,286$ 3.5% Dedications: Downtown Strategy Fund 87,125$ Economic Development Fund 348,502 Pavement Maintenance 871,254 Capital Projects Fund 904,151 General Fund 10,422,177 Total Projections 12,633,209$ Major Influences: Economy, Construction Activity, Retail Sales, Public Policy The local sales tax rate in Fountain Hills is 2.9% (increased from 2.6% as of 11/1/19) - total receipts for FY20-21 are estimated to be $12.6M. The construction related sales tax is derived from one-time activities and has been dedicated for one-time expenditures. Another portion of the local sales tax is dedicated for downtown development. The following is a breakdown of the dedicated and non-dedicated (General Fund) projections: Assumptions Percent Change $- $2.0 $4.0 $6.0 $8.0 $10.0 $12.0 $14.0 MillionsLOCAL SALES TAX REVENUE Fiscal years 2011 through 2021 109 Revenue Summary Highway User Revenue Streets (HURF) Fund Restrictions Fiscal Year Amount There is a State constitutional restriction on the use of 2010-11 1,396,075$ 0.4% these funds which requires that these funds be used 2011-12 1,126,762$ -19.3% solely for street and highway purposes. Payment of 2012-13 1,232,187$ 9.4% principal and interest on highway and street bonds are 2013-14 1,268,563$ 3.0% an approved use.2014-15 1,392,806$ 9.8% 2015-16 1,451,431$ 4.2% 2016-17 1,538,940$ 6.0% 2017-18 1,593,514$ 3.5% 2018-19 1,679,594$ 5.4% 2019-20 (est.)1,689,156$ 0.6% 2020-21 (est.)1,761,610$ 4.3% 2021-22 (est.)1,720,656$ -2.3% 2022-23 (est.)1,775,466$ 3.2% 2023-24 (est.)1,832,166$ 3.2% 2024-25 (est.)1,889,244$ 3.1% 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 revenue estimate for next year is based on estimates of revenue sharing by Arizona Department of Transportation (ADOT) in their distribution forecast for the next fiscal year. Major Influences: Gasoline sales, Population, Economy and State Policy Percent Change Assumptions $- $0.2 $0.4 $0.6 $0.8 $1.0 $1.2 $1.4 $1.6 $1.8 $2.0 MillionsHIGHWAY USER (HURF) REVENUE Fiscal years 2011 through 2021 110 Revenue Summary State-shared Income Tax Revenue General Fund Restrictions Fiscal Year Amount No restrictions on usage. Must be expended for public 2010-11 2,383,874$ -24.6% purposes.2011-12 1,898,088$ -20.4%1 2012-13 2,297,203$ 21.0% 2013-14 2,506,685$ 9.1% 2014-15 2,722,433$ 8.6% 2015-16 2,707,673$ -0.5% 2016-17 2,923,870$ 8.0%1 2017-18 3,032,329$ 3.7% 2018-19 2,976,998$ -1.8% 2019-20 (est.)3,225,317$ 8.3% 2020-21 (est.)3,629,135$ 12.5% 2021-22 (est.)3,629,135$ 0.0% 2022-23 (est.)3,629,135$ 0.0% 2023-24 (est.)3,629,135$ 0.0% 2024-25 (est.)3,629,135$ 0.0% 1 Change as a result of census population A 1972 citizen's initiative gave the cities and towns a percentage share of the State income tax, officially called Urban Revenue Sharing; Arizona cities and towns receive 15% of the State's income tax collections. This State-shared revenue is distributed to cities and towns based on the relation of their population to the total population of all incorporated cities and towns in the State according to the latest census. Amounts distributed are based on actual income tax collections from two years prior to the fiscal year in which the Town receives the funds. The next year's projection is provided by the League of Arizona Cities and Towns and the State's Joint Legislative Budget Committee (JLBC). Major Influences: Personal Income, Corporate Net Profits, Population and State Policy Assumptions Percent Change $- $0.5 $1.0 $1.5 $2.0 $2.5 $3.0 $3.5 $4.0 MillionsSTATE SHARED INCOME TAX REVENUE Fiscal years 2011 through 2021 111 Revenue Summary Vehicle License Tax Revenue General & Streets (HURF) Funds Restrictions Fiscal Year Amount Town Council has restricted for the Pavement 2010-11 799,551$ -2.7% Management Program. (30% allocated to General Fund)2011-12 722,126$ -9.7% 2012-13 752,949$ 4.3% 2013-14 800,475$ 6.3% 2014-15 858,874$ 7.3% 2015-16 927,440$ 8.0% 2016-17 941,364$ 1.5% 2017-18 1,011,836$ 7.5% 2018-19 1,061,441$ 4.9% 2019-20 (est.)1,269,840$ 19.6% 2020-21 (est.)1,166,699$ -8.1% 2021-22 (est.)1,337,156$ 14.6% 2022-23 (est.)1,382,620$ 3.4% 2023-24 (est.)1,431,011$ 3.5% 2024-25 (est.)1,481,097$ 3.5% Approximately 20% of the revenues collected for the licensing of motor vehicles is distributed to incorporated cities and towns. The Town receives its share of the vehicle license tax collections based on its population in relation to the total incorporated population of the county (Fountain Hills represents 0.4% of the State total). The remainder of the revenues collected are shared by schools, counties, and the State. The Town Council of Fountain Hills passed Resolution 2013-02 designating proceeds from the VLT to be used strictly for maintenance of Town's streets (transferred to Streets/HURF fund). Beginning in FY19-20, Town Council has reallocated the vehicle license tax as follows: 30% to the General Fund and 70% to the Streets (HURF) Fund. General Fund 350,010$ Streets (HURF) Fund 816,689 1,166,699$ Major Influences: Automobile sales, Population, and State Policy Assumptions Percent Change $- $0.2 $0.4 $0.6 $0.8 $1.0 $1.2 $1.4 MillionsVEHICLE LICENSE TAX REVENUE Fiscal years 2012 through 2021 112 Revenue Summary Fines and Forfeitures Revenue General Fund Restrictions Fiscal Year Amount No restrictions on usage. Must be expended for public 2010-11 214,999$ -17.2% purpose.2011-12 203,350$ -5.4% 2012-13 173,024$ -14.9% 2013-14 154,024$ -11.0% 2014-15 167,491$ 8.7% 2015-16 185,279$ 10.6% 2016-17 211,190$ 14.0% 2017-18 152,161$ -28.0% 2018-19 120,340$ -20.9% 2019-20 (est.)179,000$ 48.7% 2020-21 (est.)185,000$ 3.4% 2021-22 (est.)189,000$ 2.2% 2022-23 (est.)205,000$ 8.5% 2023-24 (est.)200,000$ -2.4% 2024-25 (est.)200,000$ 0.0% Municipal Court fines come from traffic violations and other fines paid for the violation of municipal ordinances. The Town contracts with the Maricopa County Sheriff's Office for traffic enforcement and has seen a slight increase in the number of citations. Major Influences: Population, Enforcement, Public Policy Assumptions Percent Change $- $50 $100 $150 $200 $250 ThousandsFINES AND FORFEITURES REVENUE Fiscal years 2012 through 2021 113 Revenue Summary Licensing Fee Revenue General Fund Restrictions Fiscal Year Amount No restrictions on usage. Must be expended for public 2010-11 151,637$ 2.0% purpose.2011-12 150,144$ -1.0% 2012-13 148,209$ -1.3% 2013-14 148,066$ -0.1% 2014-15 169,638$ 14.6% 2015-16 175,120$ 3.2% 2016-17 174,027$ -0.6% 2017-18 169,455$ -2.6% 2018-19 137,869$ -18.6% 2019-20 (est.)141,696$ 2.8% 2020-21 (est.)139,760$ -1.4% 2021-22 (est.)139,760$ 0.0% 2022-23 (est.)139,760$ 0.0% 2023-24 (est.)139,760$ 0.0% 2024-25 (est.)139,760$ 0.0% License fees are derived from fees on professions, occupations, businesses operating within Town limits. The license fee is used primarily as a means of regulating businesses within the community. The estimate for FY20-21 is based on 3,035 active business licenses. Beginning in FY18-19, animal licensing was trans- ferred to Maricopa County Animal Care and Control. Major Influences: Economy, Enforcement Assumptions Percent Change $- $20 $40 $60 $80 $100 $120 $140 $160 $180 $200 ThousandsLICENSING FEE REVENUE Fiscal years 2012 through 2021 114 Revenue Summary Building Related Revenue General Fund Restrictions Fiscal Year Amount No restrictions on usage. Must be expended for public 2010-11 253,074$ 7.1% purpose.2011-12 232,447$ -8.2% 2012-13 262,403$ 12.9% 2013-14 396,875$ 51.2% 2014-15 538,264$ 35.6% 2015-16 605,966$ 12.6% 2016-17 518,619$ -14.4% 2017-18 753,523$ 45.3% 2018-19 (est.)543,700$ -27.8% 2019-20 (est.)566,341$ 4.2% 2020-21 (est.)841,592$ 48.6% 2021-22 (est.)566,341$ -32.7% 2022-23 (est.)566,341$ 0.0% 2023-24 (est.)566,341$ 0.0% 2024-25 (est.)566,341$ 0.0% Revenues from this source include the fees collected from building permits, rezoning, improvement plans, encroachment and subdivision plans. The estimates for FY20-21 are based on construction activity provided by local developers and planning staff and reflect the general economy in new home construction. The projected number of permits for next fiscal year is 64 single family, 38 multi-family unit, and 2 commercial projects. Major Influences: Population, Economy, Development, Public Policy Percent Change Assumptions $- $100 $200 $300 $400 $500 $600 $700 $800 $900 ThousandsBUILDING RELATED REVENUE Fiscal years 2012 through 2021 115 Revenue Summary Charges For Services-Recreation User Fees General Fund Restrictions Fiscal Year Amount No restrictions on usage. Must be expended for public 2010-11 187,524$ -2.7% purpose.2011-12 180,223$ -3.9% 2012-13 152,106$ -15.6% 2013-14 138,089$ -9.2% 2014-15 156,839$ 13.6% 2015-16 168,895$ 7.7% 2016-17 174,638$ 3.4% 2017-18 164,456$ -5.8% 2018-19 174,886$ 6.3% 2019-20 (est.)197,800$ 13.1% 2020-21 (est.)221,500$ 12.0% 2021-22 (est.)211,500$ -4.5% 2022-23 (est.)212,500$ 0.5% 2023-24 (est.)212,500$ 0.0% 2024-25 (est.)212,500$ 0.0% Charges for services are collected from recreation programs for youths to seniors. Senior Services offers programs for senior citizens including home delivered meals, fitness programs, special interest classes, as well as social events. Major Influences: Population, Internal Policy on Rates Assumptions Percent Change $- $25 $50 $75 $100 $125 $150 $175 $200 $225 $250 ThousandsCHARGES FOR SERVICES -RECREATION USER FEES Fiscal years 2012 through 2021 116 Revenue Summary Charges For Services-Rentals General Fund Restrictions Fiscal Year Amount No restrictions on usage. Must be expended for public 2010-11 238,104$ 5.2% purpose.2011-12 217,987$ -8.4% 2012-13 226,600$ 4.0% 2013-14 252,874$ 11.6% 2014-15 269,774$ 6.7% 2015-16 255,204$ -5.4% 2016-17 287,500$ 12.7% 2017-18 257,368$ -10.5% 2018-19 281,000$ 9.2% 2019-20 (est.)284,213$ 1.1% 2020-21 (est.)279,220$ -1.8% 2021-22 (est.)286,808$ 2.7% 2022-23 (est.)290,712$ 1.4% 2023-24 (est.)294,731$ 1.4% 2024-25 (est.)299,082$ 1.5% The Community Center provides meeting space for the Senior Services, local organizations such as the photography club, Community Chorus, Fountain Hills Realtors and various homeowners associations. It also serves as a venue for weddings, concerts and other gatherings. Park rentals include the Plaza and ramada rentals. Additional rental charges are collected from cellular providers for use of Town property for their towers. Major Influences: Population, Internal Policy on Rates Assumptions Percent Change $- $50 $100 $150 $200 $250 $300 $350 ThousandsCHARGES FOR SERVICES -RENTALS Fiscal years 2012 through 2021 117 Expenditure Summary Expenditure Summary 118 Expenditures This section provides a broad overview of the expenditures included in the FY20- 21 budget. Information is presented for each fund and fund type. All Funds Expenditure Summary Total expenditures for all funds are $33,848,991, excluding transfers. The General Fund represents 57% of the total budgeted expenditures. Special Revenue funds, including the Streets (HURF) Fund, represent another 23%. Capital Projects funds represent 16%, Internal Service funds represent 3%, and Debt Service funds rep- resent 1% of the expenditures. With the introduction of program budgeting, all expenditures are categorized by line item or program. A summary of all programs and proposed costs is shown on the following pages. Expenditure Summary General Fund 57% Special Revenue Funds 23% Capital Project Funds 16% Internal Service Funds 3% Debt Service Funds 1% TOWN OF FOUNTAIN HILLS EXPENDITURES BY FUND TYPE Total All Funds = $33.8M 119 Expenditure Summary Description FY17-18 Actual FY18-19 Actual FY19-20 Revised Budget FY20-21 Proposed Budget FY20-21 Proposed Budget Summary of Expenditures by Fund and Program General Fund Accounting 164,076$ 171,417$ 308,661$ 318,407$ Administration 6,186,029 6,788,389 8,101,272 10,084,824 Animal Control 24,319 - - - Attorney Services 464,384 302,557 285,116 293,564 Building Inspection 299,489 334,201 536,490 355,963 Building Maintenance 99,165 107,194 197,755 175,130 Code Compliance 74,502 79,628 158,855 163,545 Community Events 165,798 175,152 175,873 189,575 Customer Service 41,261 44,330 42,985 44,665 Engineering 144,770 161,642 272,018 279,959 Fountain 150,662 121,176 173,217 175,515 Home Delivered Meals 45,606 50,023 67,010 85,433 Legislation 13,138 5,274 - - Licensing 55,163 58,570 - - Mapping & Graphics 96,039 102,723 113,329 116,460 Media Relations 36,012 35,799 35,427 147,523 Open Space 11,172 12,300 45,330 58,910 Operations 5,525,164 5,592,859 6,068,095 6,383,509 Outside Inspections 53,702 39,394 56,703 58,834 Planning & Zoning 98,097 102,683 111,483 121,088 Purchasing 61,342 65,335 - - Risk Management 285,141 300,238 - - Special Interest Programs 16,087 16,092 15,878 15,878 Sports Activities 39,293 38,611 52,520 52,520 Volunteers 85,739 76,382 93,516 107,044 Youth & Teen Programs 20,928 23,314 29,940 29,940 Total General Fund 14,257,078$ 14,805,283$ 16,941,473$ 19,258,286$ Total General Fund 14,257,078$ 14,805,283$ 16,941,473$ 19,258,286$ Special Revenue Funds Administration 314,509$ 432,605$ 529,357$ 537,228$ Open Space 255,891 279,629 430,379 409,323 Pavement Management 1,748,608 3,647,363 4,012,909 3,950,165 Street Signs 46,003 163,443 153,220 156,631 Traffic Signals 188,049 - - - Vehicle Maintenance 58,888 40,929 68,197 67,475 Total Streets Fund 2,611,948 4,563,969 5,194,062 5,120,822 Administration 56,044 38,204 46,400 38,400 Total Downtown Strategy Fund 56,044 38,204 46,400 38,400 Administration 183,332 224,051 285,482 241,270 Total Economic Development Fund 183,332 224,051 285,482 241,270 Administration 206,513 235,302 182,724 208,266 Total Tourism Fund 206,513 235,302 182,724 208,266 Grants Admin 157,945 91,211 1,662,525 1,338,500 Total Special Revenue Fund 157,945 91,211 1,662,525 1,338,500 Art & Culture 29,234$ 22,791$ 139,340$ 144,649$ Total Public Art Fund 29,234 22,791 139,340 144,649 Court Enhancement 5,547 1,690 124,800 24,800 Judicial Court Enhancement - - 30,000 - Total Court Enhancement Fund 5,547 1,690 154,800 24,800 120 Expenditure Summary Description FY17-18 Actual FY18-19 Actual FY19-20 Revised Budget FY20-21 Proposed Budget FY20-21 Proposed Budget Summary of Expenditures by Fund and Program Administration 530,655 501,717 735,255 666,904 Total Environmental Fund 530,655 501,717 735,255 666,904 Cottonwoods Maintenance District 4,696 4,530 5,101 5,131 Total Cottonwoods Maint District 4,696 4,530 5,101 5,131 Total Special Revenue Funds 3,785,914$ 5,683,465$ 8,405,689$ 7,788,742$ Debt Service Funds Gen Oblig Bond Debt Service 2,121,550$ 1,972,850$ 1,663,800$ 350$ Eagle Mtn CFD Debt Service 407,724 405,767 409,192 407,240 Munic Prop Corp Debt Service 377,696 381,854 305,870 1,010 Total Debt Service Funds 2,906,970$ 2,760,471$ 2,378,862$ 408,600$ Capital Projects Funds Administration 2,791$ 2,720$ 116,673$ 262,535$ Fire Suppression 1,837,137 2,558,246 - - General Govt Projects 25,482 - 300,000 150,000 Park Development 1,135,741 1,120,213 485,000 735,000 Pavement Management 224,530 568,802 1,333,378 1,708,000 Stormwater Management - 2,526 725,000 2,551,695 Traffic Signals - - - 50,000 Total Capital Projects Fund 3,225,681 4,252,507 2,960,051 5,457,230 Fire/Emergency Dev Fee - 7,632 9,500 - Park/Rec Dev Fee - 33,094 - - Open Space Dev Fee 535 68 40,500 40,000 Total Development Fee Funds 535 40,794 50,000 40,000 Total Capital Projects Funds 3,226,216$ 4,293,301$ 3,010,051$ 5,497,230$ Internal Service Funds Administration 163,759 437,028 819,144 819,144 Total Facilities Replacement Fund 163,759 437,028 819,144 819,144 Operational Support 61,229 - - 25,000 Total Internal Service Fund 61,229 - - 25,000 Vehicle Replacement 1,008,231 176,401 931,150 51,989 Total Vehicle Replacement Fund 1,008,231 176,401 931,150 51,989 Total Internal Service Funds 1,233,219$ 613,429$ 1,750,294$ 896,133$ Total Expenditures 25,409,397$ 28,155,949$ 32,486,369$ 33,848,991$ 121 Expenditure Summary General Fund Debt Service Funds Capital Project Funds Non-Major Funds Total % of Total Expenditures: General Government 5,022,091$ 408,600$ 262,535$ 1,928,225$ 7,621,451$ 20% Public Safety 9,226,799 - - - 9,226,799 26% Community Services 2,942,046 - 775,000 144,649 3,861,695 11% Public Works 1,120,866 - 4,459,695 6,612,001 12,192,562 34% Development Services 946,484 - - - 946,484 3% Subtotal Expenditures 19,258,286 408,600 5,497,230 8,684,875 33,848,991 94% Transfers Out 250,000 - 229,700 1,151,540 1,631,240 5% Total Expenditures 19,508,286$ 408,600$ 5,726,930$ 9,836,415$ 35,480,231$ 99% Note: See page 42 for a listing of the funds included in each column. FY20-21 Expenditures by Function 122 Expenditure Summary Department Division Proposed Budget Mayor & Council Mayor & Council 74,882$ Administration Town Manager 433,426 Town Clerk 246,680 Administrative Services 259,245 Purchasing 98,637 Finance 687,402 Information Technology 320,709 Legal Services 293,564 Total Administration 2,339,663 General Government Non-Departmental 2,204,942 Municipal Court Municipal Court 402,604 Public Works Public Works 143,543 Engineering 279,959 Facilities 697,364 Total Public Works 1,120,866 Development Services Development Services 189,428 Planning & Zoning 121,088 Code Compliance 163,545 Mapping & Graphics 116,460 Building Safety 355,963 Total Development Services 946,484 Community Services Community Services 340,968 Recreation 658,514 Community Center 314,486 Senior Services 236,629 Parks-Town Hall 103,761 Parks-Fountain Park 584,356 Parks-Golden Eagle Park 290,908 Parks-Four Peaks Park 134,407 Parks-Desert Vista Park 92,398 Parks-Open Space/Trails 58,910 Parks-Avenue of the Fountains Plaza 126,709 Total Community Services 2,942,046 Law Enforcement Law Enforcement 5,029,469 Fire & Emergency Medical Fire & Emergency Medical 4,197,330 Total General Fund Expenditures 19,258,286$ FY20-21 General Fund Expenditures by Department and Division 123 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 towns are required to stay within the limits or incur a penalty (reduction in State-shared revenues). The FY20-21 expenditure limitation for the Town of Fountain Hills is $30,646,564 which is a 2.7% increase from the previous year. The limit applies to FY20-21 ex- penditures of the Town (all funds) but allows for certain exemptions and deduc- tions. For example, bond proceeds, debt service payments, grant expenditures, and HURF are not included when determining compliance with the expenditure lim- itation. However, development fee and capital project expenditures are subject to the limitation. The table below is an estimate of the Town’s expenditure limitation, deductions and exclusions and final spending authority. Expenditure Summary Total Expenditures 33,848,991$ Exclusions (Subtractions) from Revenues: Separate Legal Entitites 413,381 Required fees paid to the Arizona Department of Revenue 65,000 Debt Service Payments 350 Dividends, Interest, Gains 165,517 Grants, Aid, Contributions from Federal Government 2,893,126 Grants, Aid, Contributions from Private Organizations 37,545 Amounts Received from State 1,376,300 Quasi-External interfund Transactions - Savings Reserved for Capital Purchase (voter approved)- Highway User Revenues Excess 1979-80 3,679,695 Contracts with Other Political Subdivisions - Refunds, Reimbursements 1,260 Voter Approved Exclusions - Prior Years Carry Forward - Total Exclusions 8,632,174 Expenditures subject to limitation 25,216,817 Expenditure Limitation 30,646,564 Under/(Over) Limitation 5,429,747$ EXPENDITURE LIMITATION ANALYSIS (Estimated) 124 Budget Process & Schedule Budget Process & Schedule 125 Budget Process Planning Process A number of planning processes are in place to guide the Town’s decision making. Many of these processes allow for direct citizen input through public hearings, community meetings or participation in Council-appointed committees. The Town’s planning processes include: Planning Process Description Town Vision, Mission, Goals and Values Sets the overall tone of the organization and guides employees in managing the daily operations of the Town. General Plan A guide designed to encourage the most appropriate use of land and resources within the Town consistent with the interest of the citizens. The General Plan sets forth goals, objectives, policies and implementation techniques that will guide the development activity within the Town and promote, preserve and protect the health, safety, and general welfare of its citizens. Capital Improvement Program A five-year guide to assist in long range planning for the Town’s capital needs. Details of the adopted Capital Improvement Plan are found beginning on page 347. Fiscal Policy Guidelines Policies guiding the financial management of the Town of Fountain Hills are approved by the Town Council to ensure a fiscally sound government. The adoption of and compliance with these policies is an important factor in Rating Agency reviews. A summary of the Town’s policies can be found beginning on page 52. Annual Budget Process Town staff develops a recommended budget. Many of the decisions included in that recommendation are driven by processes noted above. A summary of the Town’s budget process can be found on the following pages. Five Year Financial Plan A five-year financial forecast is developed annually as a tool to anticipate potential budget imbalances. The current plan can be found on page 16. 126 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 govern- ment; 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 govern- ment. 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 Division with the individual Departments and the Town Manager. Meetings with each Department, the Town Manager and the Finance Di- vision are held during the months of February/March. After these meetings are completed, a proposed Town-wide balanced budget is prepared for submittal to the full Town Council and public in April/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 citi- zens on their desired blend of services; and the time line set by the State of Arizo- na through the Arizona Budget Law. The Town of Fountain Hills budget process incorporates the recommended practic- es promulgated by the National Advisory Council on State and Local Budgeting (NACSLB) and the Government Finance Officers Association (GFOA). Concurrently, Town staff apply diligent effort into improving the processes, decisions and out- comes with each new budget year. The NACSLB’s practices encourage govern- ments 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 Budget Process 127 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 are as follows: 1. A government should have broad goals that provide overall direction for the government and serve as a basis for decision making. 2. A government should have specific policies, plans, programs and man- agreement strategies to define how it will achieve its long-term goals. 3. A financial plan and budget that moves toward Town achievement of goals, within the constraints of available resources, should be prepared and adopt- ed. 4. Program and financial performance should be continually evaluated, and ad- justments made, to encourage progress toward achieving goals. These principles encompass many functions that spread across a governmental or- ganization. They reflect the fact that development of a balanced budget is a politi- cal 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 ele- ments. The principles and elements provide a structure to categorize budgetary practices. The Town of Fountain Hills has broad goals that provide overall direction for the government and serves as a basis for decision-making.  Assess community needs, priorities, challenges and opportunities  Identify opportunities and challenges for governmental services, capital as- sets, and management  Develop and disseminate broad goals  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  Adopt financial policies  Develop programmatic, operating, and capital policies and plans  Develop programs and services that are consistent with policies and plans  Develop management strategies  Develop a budget consistent with approaches to achieve goals – a financial plan and budget that moves toward achievement of goals, within the con- straints of available resources, should be prepared and adopted  Develop a process for preparing and adopting a budget  Develop and evaluate financial options  Make choices necessary to adopt a budget Budget Process 128  Evaluate performance and make adjustments – program and financial per- formance should be continually evaluated, and adjustments made, to en- courage progress toward achieving goals  Monitor, measure, and evaluate performance  Make adjustments as needed When does the “budget season” start? The budget process typically begins in December or January when the Finance Di- vision begins to review current levels of service, Council goals and objectives as identified at the annual Council retreat, proposed capital improvements, and finan- cial 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. Commissions develop plans for new or enhanced programs to be included in the following year’s budget proposal. 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 require- ments to complete the work plan. The budget includes information about the or- ganization 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. Reve- nue and expenditure patterns are examined, compared to budget plans, and cor- rective action, if necessary, is taken during the fiscal year. Town management has access to a monthly budget and activity report; the Town Council is provided a summary budget report at the end of each quarter disclosing actual revenue, ex- penditure, and fund balance performance as compared to the budget. The Town of Fountain Hills budget is adopted at a Department level and the Capi- tal Improvement Program 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 be- tween 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 an- other. In essence, any approved Council transfers do amend the budget although the budget is never reprinted. Budget Process 129 What funds are included in this budget? The accounts of the Town are organized on the basis of funds, 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, admin- istrative services, etc. (unrestricted).  Special Revenue Funds – revenues derived from specific taxes or other ear- marked revenue sources, usually required by statute or ordinance to finance particular activities. Streets (HURF) Fund, grants, and the Excise Tax Funds are examples of special revenue funds.  Debt Service Funds – established to account for the accumulation of re- sources for, and the payment of, general long-term debt principal and inter- est. 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 ma- jor capital facilities, heavy equipment, park improvements and major road improvements. The Capital Projects Fund revenues are derived from excess General Fund revenues and 50% of the construction related local sales tax. These funds also include the Facilities Replacement Fund and the Develop- ment Fee Funds. When can a citizen have input into the budget process? Town staff welcomes comments and suggestions throughout the year. The first op- portunity for the Town Council to contribute to the budget is during the annual goal setting retreat which is typically held around the beginning of the calendar year. The proposed budget is presented to the public and Town Council in April/ May at which time a public hearing is held to receive input. This hearing is the op- portunity 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. Budget Process 130 Budget Schedule Budget Schedule FY20-21 Wed, November 13, 2019 Staff budget “kick-off” meeting in the Council Chambers Thu, November 21, 2019 CIP & Facilities Replacement Fund meeting Thu, December 12, 2019 DEADLINE for preliminary operating budgets entered into MUNIS. Staffing requirements and budget supplements due to Finance. CIP project re- quests and funding sources due to Finance. Revenue projections from indi- vidual departments due to Finance. New or updated existing fees on Fee Schedule due to Finance Mon, January 13, 2020 5 year Revenue Forecast due to Town Manager from Finance Final reconciliation of revenues vs. expenditures (Finance staff) Tue - Thu, January 21 - 23, 2020 Departmental presentations for Town Manager Tue, January 28, 2020 Mayor’s State of the Town Address Tue, February 25, 2020 Council Retreat Session - Priorities for FY20-21 with Council receiving preliminary CIP Budget & Strategic Plan Review Wed, February 26, 2020 Staff meeting to debrief Council Retreat Department/Division templates due to Finance Mon, March 2, 2020 Final operating budgets entered into MUNIS based on proposed changes from Retreat Wed, March 4, 2020 Staff to review proposed budget dates with Town Attorney for statute compliance Tue, March 24, 2020 Council Special Session @ 5:30 PM – Consideration of CIP projects Thu, April 3, 2020 A.R.S. §9-499.15(B)(1)-(3): Deadline to publish the proposed fee and tax levy notice on the Town’s website (including written report/data support- ing any increases or new fees) for legal compliance at least 60 days prior to date will be approved by the Council. Council receives proposed budget, posted online Budget Schedules prepared for Legal Mon, April 13, 2020 Final revenue projections entered into MUNIS Public Outreach/Open House (5:30 – 6:30 PM) Tue, April 14, 2020 Council Budget Workshop - Special Session @ 5:00 PM Tue, May 5, 2020 Town, CMD & EMCFD Meetings - Adoption of Tentative Budgets with notice of hearing dates; notices sent to Cottonwood Homeowners the next day - CMD requires 20 days between the date of the published notice and the final budget hearing, which (due to advertising date limitations creates a 29-day window between the tentative budget adoption and the final budget adoption; EMCFD requires 10 days between the date of the pub- lished notice and the final budget hearing, which would allow the EMCFD budget to be adopted with a 21-day gap between the tentative budget adoption and the final; however, it is aligned with the CMD to avoid confu- sion Wednesdays, May 13 & 20, 2020 Publish Notice of time & place of budget hearings, where budgets are available (Town Hall & Library), and Tentative Budget(s) in the Times legal section for 2 consecutive weeks; place on Town website & at Library the next day after adoption [A.R.S. §42-17103] Mon, May 18, 2020 A.R.S. §9-499.15(B)(4): Deadline to post [on all Town social media sites] the “Notice of Intent” - for legal compliance at least 15 days prior to date will be approved by Council. Tue, June 2, 2020 Town, CMD & EMCFD Meetings – Public Hearing held in Regular Session (required to be held on or before the 14th day before the day on which it levies taxes); Council convenes in Special Session & adopts Town’s Final Budget (A.R.S. §42 -17104) and reconvenes the Regular Session [14 days - June 16, 2020] Tue, June 16, 2020 CMD & EMCFD Meetings - Adoption of Tax Levy occurs on or before the 3rd Monday in August [A.R.S. §42-17151]; Forward certified copy of ap- proved tax levy ordinance(s) to County Board of Supervisors the next business day Tue, June 23, 2020 Post Final Budget(s) on website within 7 days of adoption [A.R.S. §42- 17105 - for 60 months] July through August 23, 2020 Council Summer Hiatus Tue, August 24, 2020 1st meeting of the new fiscal year 131 GENERAL FUND MAYOR & TOWN COUNCIL ADMINISTRATION GENERAL GOVERNMENT MUNICIPAL COURT PUBLIC WORKS DEVELOPMENT SERVICES COMMUNITY SERVICES LAW ENFORCEMENT FIRE & EMERGENCY MEDICAL General Fund 132 General Fund Organization Chart Department Directors Town Manager Grady Miller Deputy Town Manager David Trimble Community Services Director Rachel Goodwin Development Services Director John Wesley District Commander Captain Larry Kratzer Economic Development Director James Smith Finance Director David Pock Fire Chief Chief Dave Ott Presiding Judge Robert Melton Public Works Director Justin Weldy Town Attorney Aaron Arnson Town Clerk Elizabeth Burke Town Prosecutor Mark Iacovino 133 Mayor & Town Council General Fund Mayor & Town Council FRONT ROW: Councilmember Dennis Brown, Mayor Ginny Dickey, Councilmem- ber Alan Magazine BACK ROW: Councilmember Art Tolis, Councilmember Sherry Leckrone, Coun- cilmember Mike Scharnow, Councilmember David Spelich 134 MAYOR & TOWN COUNCIL Mission Statement The Mayor & Town Council are charged with serving the best interests of the com- munity 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. Department Overview The Town Council is comprised of the Mayor and six Councilmembers, all of whom are elected at large to serve the citizens of the Town of Fountain Hills. The term of office for the Mayor is two years, and Councilmembers serve overlapping terms of four years. The corporate powers of the Town are vested in the Council and are exercised only as directed or authorized by law via ordinance, resolution, order or motion. The Council appropriates funds and provides policy direction to Town staff. The Council appoints a Town Manager, who is responsible for the day-to-day ad- ministration of the Town. The Council also appoints the Presiding Judge, Town At- torney, and Town Prosecutor. General Fund Mayor & Town Council Program Name FY17-18 Actual FY18-19 Actual FY19-20 Revised Budget FY20-21 Proposed Budget Administration $ 77,779 $ 81,837 $ 98,544 $ 74,882 Total $ 77,779 $ 81,837 $ 98,544 $ 74,882 Expenditures by Program Category FY17-18 Actual FY18-19 Actual FY19-20 Revised Budget FY20-21 Proposed Budget Wages $ 55,408 $ 64,041 58,822$ 36,000$ Employment Taxes 3,283 3,409 3,325 3,398 Benefits 5,559 6,553 6,282 - Dues & Memberships - 66 - - Meetings and Training 685 2,497 16,665 15,575 Maintenance and Repair - 104 - - Contractual Services 10,890 3,534 10,240 10,240 Supplies 1,253 1,525 3,110 3,150 Internal Service 701 108 100 6,519 Total $ 77,779 $ 81,837 $ 98,544 $ 74,882 Expenditures by Category 135 General Fund Mayor & Town Council Town Council has accepted the Strategic Planning Advisory Committee’s highest goals, objectives and tasks as follows:  Rezone unplatted land for greater density and affordable family homes  Develop and implement an investment plan to bring streets, buildings and parks up to established standards  Adequately fund all identified reserve funds  Identify revenue options  Increase revenues to meet community needs including addressing project- ed operating shortfall Wages 47% Employment Taxes 5% Meetings and Training 21% Contractual Services 14% Supplies 4%Internal Service 9% Use of Funds -Mayor & Town Council -By Category Where does the money go? Total Proposed Budget = $74,882 Program Name FY17-18 Actual FY18-19 Actual FY19-20 Revised Budget FY20-21 Proposed Budget Total Revenues $ - $ - -$ -$ Total Expenses 77,779 81,837 98,544 74,882 Total $ (77,779) $ (81,837) $ (98,544) $ (74,882) Operating Results 136 General Fund Mayor & Town Council The 2017 Fountain Hills Strategic Plan contains a number of actions and perfor- mance measures tied to the following strategic priorities:  Goal #1: Maximize Economic Development Opportunities in Fountain Hills  Goal #2: Ensure that Infrastructure in Fountain Hills is Well- Maintained and Safe  Goal #3: Attract Families and Working Professionals to Fountain Hills  Goal #4: Ensure that Fountain Hills Finances are Stable and Sustain able  Goal #5: Focus on Strengthening the Community and Improving the Town’s Quality of Life 137 General Fund Mayor & Town Council Description FY17-18 Actual FY18-19 Actual FY19-20 Revised Budget FY20-21 Proposed Budget General Fund Salaries-Full Time 19,408$ 26,640$ 22,822$ -$ Salaries-Part Time 36,000 37,400 36,000 36,000 FICA 2,207 2,244 2,232 2,232 Medicare 781 919 853 522 Workers Compensation 86 116 105 89 Unemployment Insurance 209 130 135 555 Group Health Insurance 3,008 3,007 3,040 - Group Dental Insurance 215 218 232 - Group Vision Insurance 43 43 46 - Disability Insurance 76 94 96 - Retirement 2,179 3,062 2,511 - Life Insurance 20 24 25 - Bonus 18 105 17 - Allowance/Stipend - - 315 - Dues, Subscript & Publicat - 66 - - Meetings & Training 685 2,497 15,575 15,575 Boards & Commission - - 1,090 - Sign Repair & Replacement - 104 - - Legal Fees 10,890 3,264 10,000 10,000 Printing Expense - 270 240 240 Office Supplies 114 1,005 600 600 Operating Supplies - 74 - - Food & Beverage Supplies 242 290 1,200 1,200 Program Materials 897 152 900 900 Uniforms - - 400 400 Postage & Delivery - 5 10 50 ISF-Copier Charges 97 108 100 100 ISF-Mail Service Charges 6 - - - ISF- Technology Replacement - 6,419 ISF-Telecom Charges 598 - - - Total Mayor & Council 77,779$ 81,837$ 98,544$ 74,882$ FY20-21 Proposed Budget Summary of Expenditures Mayor & Council 138 Administration General Fund Administration Department Note: Numbers in parentheses represent full-time equivalents (FTE). 139 General Fund Administration Department ADMINISTRATION Mission Statement The Administration Department is dedicated to serving the citizens of Fountain Hills by providing administrative direction and support to the Town’s Departments. Administration provides accurate and current information on Council legislation and administrative actions; provides for the delivery of comprehensive financial services to internal and external customers; provides support to Town staff; reaches out to political leaders and geographical neighbors to continue to grow re- lationships in the best interests of the Town; and enhances the Town’s economic base through business attraction, retention and business vitality activities. Department Overview The Administration Department is made up of seven (7) Divisions: Town Manager, Information Technology, Town Clerk, Administrative Services, Finance, Legal Ser- vices, Purchasing, and one service function: Media Relations. The Town Manager provides direct supervision over the Town Clerk, Administrative Services, Finance, and Media Relations. The Town Manager also administers the budget for Legal Ser- vices. The Finance Director is responsible for Finance staff, and the Administrative Services Director is responsible for Human Resources, Information Technology, Risk Management and Purchasing. Variance Explanations: Town Manager: The increase is caused by the reallocation of wages for the Exec- utive Assistant to Town Manager and the Mayor and Council and the reclassifica- tion of the Community Relations Manager. Town Clerk: The increase is due to added election costs and the reallocation of wages for the Account Clerk. Division FY17-18 Actual FY18-19 Actual FY19-20 Revised Budget FY20-21 Proposed Budget Town Manager 348,446$ 360,250$ 292,864$ 433,426$ Information Technology 285,227 295,718 315,657 320,709 Town Clerk 217,660 172,395 237,712 246,680 Administrative Services 416,010 463,100 221,415 259,245 Finance 558,338 562,926 619,240 687,402 Legal Services 464,384 302,557 285,116 293,564 Purchasing - - 85,194 98,637 Total 2,290,065$ 2,156,946$ 2,057,198$ 2,339,663$ Expenditures by Division 140 General Fund Administration Department Variance Explanations: Volunteers: This program was moved to Community Services. Town Manager 19% Information Technology 14% Town Clerk 11% Administrative Services 11% Finance 28% Legal Services 13% Purchasing 4% Use of Funds -Administration -By Division Where does the money go? Total Proposed Budget = $2,339,663 Program Name FY17-18 Actual FY18-19 Actual FY19-20 Revised Budget FY20-21 Proposed Budget Accounting 164,076$ 171,416$ 308,661$ 318,407$ Administration 897,836 903,408 1,162,887 1,325,551 Attorney Services 464,384 302,557 285,116 293,564 Customer Service 41,261 44,330 42,985 44,665 Legislation 13,138 5,275 - - Licensing 55,163 58,570 - - Media Relations 36,012 35,799 35,427 147,523 Operations 185,972 193,636 207,396 209,953 Purchasing 61,343 65,335 - - Risk Management 285,141 300,238 - - Volunteers 85,739 76,382 14,726 - Total 2,290,065$ 2,156,946$ 2,057,198$ 2,339,663$ Expenditures by Program 141 General Fund Administration Department Variance Explanations: Contractual Services: The increase is from the addition of possible Bond Advisory services, election(s), a public safety study and increased legal fees. Internal Service: The increase is from the newly created Information Technology Replacement fund. Accounting 14% Administration 56% Attorney Services 13% Customer Service 2% Media Relations 6%Operations 9% Use of Funds -Administration -By Program Where does the money go? Total Proposed Budget = $2,339,663 Category FY17-18 Actual FY18-19 Actual FY19-20 Revised Budget FY20-21 Proposed Budget Wages 814,548$ 890,915$ 952,743$ 1,087,807$ Employment Taxes 18,061 19,299 21,506 26,136 Benefits 167,489 180,379 199,879 234,916 Dues & Memberships 136,576 152,592 161,033 165,921 Meetings and Training 20,564 45,969 55,782 57,826 Maintenance and Repair 4,035 3,968 11,000 8,600 Utilities 1,280 12,770 13,700 12,800 Contractual Services 1,005,861 796,335 596,737 682,102 Supplies 31,205 25,335 25,575 27,766 Equipment 71,419 24,029 13,800 17,050 Internal Service 19,027 5,355 5,443 18,739 Total 2,290,065$ 2,156,946$ 2,057,198$ 2,339,663$ Expenditures by Category 142 General Fund Administration Department Wages 48%Employment Taxes 1% Benefits 10% Dues & Memberships 7%Meetings and Training 2% Utilities 1% Contractual Services 29% Supplies 1% Equipment 1% Use of Funds -Administration -By Category Where does the money go? Total Proposed Budget = $2,339,663 Program Name FY17-18 Actual FY18-19 Actual FY19-20 Revised Budget FY20-21 Proposed Budget Total Revenues $ 14,533,391 $ 15,520,408 15,782,743$ 17,722,982$ Total Expenses 2,290,065 2,156,946 2,057,198 2,339,663 Total $ 12,243,326 $ 13,363,462 $ 13,725,545 $ 15,383,319 Operating Results 143 FY 2019-20 Accomplishments  In order to address future revenue shortfalls and to be able to fund town oper- ations, sought and received Council approval of a three-tenths of a percent sales tax increase  Successfully completed a major update to the audio-visual equipment in the Council Chambers that resulted in improved quality of presentations for public meetings, better audio and graphics for TV/streamed meeting broadcasts, and significant reduction in staff time required to post Council meetings on YouTube  Implemented Agenda Quick, a Council agenda management system that streamlines the workflow of the Town Council agenda process and minimizes staff report errors  Received Council approval for a Ten-Year Pavement Management Program which will help identifying funding and prioritizing street maintenance in a more strategic manner  Sought and received Town Council adoption of a major update to the Town’s Development Fee Schedule which will help fund future streets, parks, and fire infrastructure  Implemented a number of traffic and pedestrian improvement projects to im- prove traffic and pedestrian safety in Fountain Hills – additional sidewalks, LED stop signs, rumble strips, narrower lanes on Ave. of the Fountains, and re- ceived MAG grants for future projects FY 2020-21 Goals and Objectives  Oversee and manage the Town of Fountain Hills’ COVID-19 response and re- covery actions  Seek and receive 2020 CARES ACT funding and reimbursement for Covid -19 related expenditures  Implement a $300,000 Small Business Assistance Grant Program to financially help businesses negatively impacted by the economic downturn caused by the pandemic  Due to economic downturn, monitor town revenues and recommend actions to ensure expenditures are in alignment with revenues  Seek Council adoption of an ordinance adopting comprehensive user fee sched- ule based on the 2020 Cost of Service Study  Oversee and ensure major capital improvement projects (Roundabout, Panora- ma Drainage, FH Shoulder Widening, etc.) are completed on time and on budg- et  Assist the Strategic Planning Advisory Council in developing the 2020 Strategic Plan General Fund Administration Department 144 General Fund Administration Department Description FY17-18 Actual FY18-19 Actual FY19-20 Revised Budget FY20-21 Proposed Budget FY20-21 Proposed Budget Summary of Expenditures Administration Department General Fund Salaries-Full Time 737,079$ 821,275$ 863,219$ 993,145$ Salaries-Part Time 77,277 69,012 89,524 94,662 Overtime 193 630 - - FICA 4,855 4,340 5,508 5,825 Medicare 11,637 12,891 13,922 15,979 Workers Compensation 1,237 1,650 1,730 2,698 Unemployment Insurance 332 418 346 1,634 Group Health Insurance 63,680 64,847 78,292 91,846 Group Dental Insurance 4,955 5,379 6,490 7,050 Group Vision Insurance 797 859 994 1,140 Disability Insurance 2,671 3,206 3,640 10,531 Retirement 81,813 91,071 94,315 108,970 Life Insurance 727 825 965 1,129 Bonus 666 811 693 750 Allowance/Stipend 12,180 13,380 14,490 13,500 Licenses/Filing Fees 89,028 82,638 99,445 103,685 Dues, Subscript & Publicat 47,548 69,954 61,588 62,236 Education/Tuition Reimb - 7,635 15,179 15,179 Meetings & Training 20,378 38,149 40,603 42,647 Boards & Commissions 185 185 - - Equipment Maint/Repair 1,403 1,746 5,000 5,000 Office Equip Maint/ Repair 2,632 2,139 6,000 3,600 Sign Repair & Replacement - 83 - - Telecommunications 1,280 12,770 13,700 12,800 Auditing Expense 74,970 76,981 68,740 70,615 Professional Fees 67,674 38,419 63,384 122,184 Legal Fees 351,031 178,119 167,000 169,800 Management Fees 14,754 12,209 13,025 13,025 Insurance Expense 247,437 264,631 4,000 4,000 Rentals & Leases 1,214 1,163 1,224 1,224 Printing Expense 20,562 3,349 7,415 2,540 Advertising/Signage 4,685 5,268 9,810 9,810 Intergovt Agreements 50,606 59,971 66,000 66,500 Contractual Services 1,858 3,595 4,000 4,000 Constituent Communication 5,628 22,369 19,423 29,800 Bank/Merc Acct Fees 3,609 2,307 3,600 3,840 Election Expense 53,333 8,388 50,000 60,000 Community Contracts/Events - 3,356 - - Prosecutor Fees 105,000 110,316 110,316 119,964 Public Defender Fees 3,500 5,894 8,800 4,800 Office Supplies 2,475 1,524 6,295 5,970 Cleaning/Janitorial Supplies 39 86 10 10 Operating Supplies 4,976 1,078 3,225 5,850 Food & Beverage Supplies 10,699 10,991 5,641 5,641 Program Materials 12,108 5,367 4,950 4,950 Uniforms - 470 - - Postage & Delivery 511 5,805 5,454 5,345 Miscellaneous Expense 397 13 - - 145 General Fund Administration Department Description FY17-18 Actual FY18-19 Actual FY19-20 Revised Budget FY20-21 Proposed Budget FY20-21 Proposed Budget Summary of Expenditures Administration Department General Fund-continued Software 37,845$ 4,376$ 550$ 5,550$ Hardware/Peripherals 29,121 19,653 13,250 11,500 Equipment 4,453 - - - ISF-Copier Charges 4,947 3,684 3,070 3,010 ISF-Mail Service Charges 6,098 - - - ISF-Vehicle Replacement Charge 828 1,353 1,808 1,840 ISF-Motor Pool Charges 817 318 565 1,966 ISF- Technology Replacement - 11,923 ISF-Telecom Charges 6,337 - - - Total Administration 2,290,065$ 2,156,946$ 2,057,198$ 2,339,663$ 146 Town Manager Division Service Delivery Plan Provide leadership to ensure a high quality of life for the citizens of Fountain Hills by utilizing Town resources to the greatest extent possible and offering superior service. Work in conjunction with the Town Council and the Strategic Planning Ad- visory Commission (SPAC) for successful implementation of Operational Priorities and Strategic Plan Goals. Per direction and approval of the Town Council, adminis- ter fee for service contracts and communicate with the public. General Fund Administration Department Town Manager Division Program Name FY17-18 Actual FY18-19 Actual FY19-20 Revised Budget FY20-21 Proposed Budget Administration $ 226,695 $ 248,069 $ 242,711 $ 285,903 Media Relations 36,012 35,799 35,427 147,523 Total $ 262,707 $ 283,868 $ 278,138 $ 433,426 Expenditures by Program Administration 66%Media Relations 34% Use of Funds -Town Manager -By Program Where does the money go? Total Proposed Budget = $433,426 Variance Explanations: Administration: The increase is caused by the reallocation of wages for the Exec- utive Assistant to Town Manager and the Mayor and Council. Media Relations: The increase is due to the reclassification of the Communications and Marketing Coordinator to a Community Relations Manager. 147 General Fund Administration Department Town Manager Division Wages 71% Employment Taxes 1% Benefits 18% Meetings and Training 2% Contractual Services 7% Internal Service 1% Use of Funds -Town Manager -By Category Where does the money go? Total Proposed Budget = $433,426 Category FY17-18 Actual FY18-19 Actual FY19-20 Revised Budget FY20-21 Proposed Budget Wages 183,775$ 204,484$ 202,610$ 303,425$ Employment Taxes 3,156 3,567 3,365 5,623 Benefits 43,599 47,153 39,771 76,515 Dues & Memberships 1,934 3,937 2,462 3,909 Meetings and Training 3,389 2,565 7,615 7,615 Maintenance & Repair - - - - Utilities - 13 - - Contractual Services 25,036 20,719 19,681 30,880 Supplies 1,140 1,009 2,411 2,410 Equipment 11 236 - - Internal Service 667 185 223 3,049 Total 262,707$ 283,868$ 278,138$ 433,426$ Expenditures by Category Variance Explanations: Wages/Benefits: The increase is caused by the reallocation of wages for the Exec- utive Assistant to Town Manager and the Mayor and Council and the reclassifica- tion of the Communications and Marketing Coordinator to a Community Relations Manager. Contractual Services: Amounts were increased for the Fountain First publication. 148 General Fund Administration Department Town Manager Division Activities/Results COMMUNITY RELATIONS The mission of the Community Relations Office is to accurately communicate news and information to Fountain Hills' customers, citizens, news media, elected offi- cials, and employees via internal and external communication sources. The Office also creates and distributes the Town’s quarterly informational newsletter, Foun- tain Hills Insider, which is sent out to all Fountain Hills’ residential addresses. This publication reaches approximately 13,127 places of residence. The Fountain Hills Insider publication boasts a wealth of information pertaining particularly to resi- dents including but not limited to information regarding street maintenance work, tax and fee information, Town aid programs and the special events calendar. In addition to this publication the Community Relations Office also manages the Town’s six social media pages, municipal website information releases and news releases. 149 General Fund Administration Department Town Manager Division Description FY17-18 Actual FY18-19 Actual FY19-20 Revised Budget FY20-21 Proposed Budget General Fund Salaries-Full Time 183,775$ 204,484$ 202,610$ 303,425$ Medicare 2,804 3,136 2,955 4,546 Workers Compensation 307 389 363 750 Unemployment Insurance 45 43 46 327 Group Health Insurance 12,792 12,915 6,817 27,561 Group Dental Insurance 485 490 523 1,674 Group Vision Insurance 95 95 102 288 Disability Insurance 679 722 858 3,220 Retirement 20,984 23,252 22,287 33,377 Life Insurance 189 202 226 345 Bonus 94 296 93 150 Allowance/Stipend 8,280 9,180 8,865 9,900 Dues, Subscript & Publicat 1,934 3,937 2,462 3,909 Meetings & Training 3,204 2,380 7,615 7,615 Boards & Commissions 185 185 - - Telecommunications - 13 - - Professional Fees 2,410 - - - Printing Expense 19,473 70 80 80 Advertising/Signage - - 1,000 1,000 Constituent Communication 3,153 20,649 18,601 29,800 Office Supplies 295 85 1,650 1,650 Food & Beverage Supplies 697 800 200 200 Program Materials 96 118 500 500 Postage & Delivery 52 6 61 60 Software 11 - - - Hardware/Peripherals - 236 - - ISF-Copier Charges 111 74 116 115 ISF-Mail Service Charges 18 - - - ISF-Vehicle Replacement Charges 179 111 82 87 ISF-Motor Pool Charges - - 26 96 ISF- Technology Replacement - - - 2,751 ISF-Telecom Charges 360 - - - Total Town Manager 262,707$ 283,868$ 278,138$ 433,426$ FY20-21 Proposed Budget Summary of Expenditures Town Manager 150 Town Clerk Division Service Delivery Plan The Town Clerk Division supports the values of the community and the organiza- tion through the delivery of quality customer service; conducting fair and open municipal elections; providing broad organizational support; managing the Town’s records management program and accessibility to public records; overseeing boards and commissions administration; and ensuring that official postings, notic- es and related publications meet legal compliance. General Fund Administration Department Town Clerk Division Program Name FY17-18 Actual FY18-19 Actual FY19-20 Revised Budget FY20-21 Proposed Budget Administration 204,522$ 167,121$ 237,712$ 246,680$ Legislation 13,138 5,274 - - Total 217,660$ 172,395$ 237,712$ 246,680$ Expenditures by Program Category FY17-18 Actual FY18-19 Actual FY19-20 Revised Budget FY20-21 Proposed Budget Wages 125,270$ 119,280$ 140,584$ 136,793$ Employment Taxes 1,887 2,223 3,506 3,317 Benefits 21,143 20,392 21,460 22,883 Dues & Memberships 380 8,446 6,720 6,950 Meetings and Training 50 2,769 4,824 4,824 Contractual Services 66,503 16,933 59,080 69,080 Supplies 423 151 695 695 Equipment - 1,474 50 50 Internal Service 2,004 727 793 2,088 Total 217,660$ 172,395$ 237,712$ 246,680$ Expenditures by Category 151 General Fund Administration Department Town Clerk Division Wages 55% Employment Taxes 1% Benefits 9%Dues & Memberships 3% Meetings and Training 2% Contractual Services 29% Internal Service 1% Use of Funds -Town Clerk -By Category Where does the money go? Total Proposed Budget = $246,680 Performance Measures Activities/Results Quality Productivity FY17-18 Actual FY18-19 Actual FY19-20 Estimate FY20-21 Target Registered Voters: Special (05/15/18 and 05/19/20) Primary (08/28/18 and 08/04/20) General (11/03/20) 17,168 N/A N/A N/A 16,775 N/A 17,300 N/A N/A N/A 17,400 17,500 Voter Turnout %: Special (05/15/18 and 05/19/20) Primary (08/28/18 and 08/04/20) General (11/03/20) 59% N/A N/A N/A 51% N/A 60% 50% N/A N/A 60% 65% FY17-18 Actual FY18-19 Actual FY19-20 Estimate FY20-21 Target Percentage of contracts processed within five business days after approval 100% 98% 100% 100% Percentage of agenda and meeting notices posted in compliance with legal requirements 100% 100% 100% 100% FY17-18 Actual FY18-19 Actual FY19-20 Estimate FY20-21 Target Town Council Agenda/Meeting notices posted 36/28 52/36 61/41 60/50 Requests for Public Information processed 205 202 200 175 152 General Fund Administration Department Town Clerk Division Description FY17-18 Actual FY18-19 Actual FY19-20 Revised Budget FY20-21 Proposed Budget General Fund Salaries-Full Time 125,270$ 116,873$ 122,006$ 123,568$ Salaries-Part Time - 2,407 18,578 13,225 FICA - 149 1,152 820 Medicare 1,722 1,751 2,053 1,997 Workers Compensation 141 267 251 337 Unemployment Insurance 24 56 50 163 Group Health Insurance 5,788 5,780 5,849 6,303 Group Dental Insurance 614 431 459 481 Group Vision Insurance 124 82 79 79 Disability Insurance 359 473 516 1,311 Retirement 13,813 12,856 13,421 13,593 Life Insurance 94 119 136 141 Bonus 51 51 100 75 Allowance/Stipend 300 600 900 900 Licenses/Filing Fees - 113 70 300 Dues, Subscript & Publicat 380 8,333 6,650 6,650 Meetings & Training 50 2,769 4,824 4,824 Professional Fees 10,068 382 - - Printing Expense - 128 80 80 Advertising/Signage 3,070 4,440 5,000 5,000 Contractual Services - 3,595 4,000 4,000 Bank/Merc Account Fees 32 - - - Election Expense 53,333 8,388 50,000 60,000 Office Supplies 423 118 470 470 Operating Supplies - 18 - - Postage & Delivery - 15 225 225 Software - - 50 50 Hardware/Peripherals - 1,474 - - ISF-Copier Charges 1,585 574 420 420 ISF-Mail Service Charges 39 - - - ISF-Vehicle Replacement Charges - 153 284 252 ISF- Motor Pool Charges 141 - 89 269 ISF- Technology Replacement - - - 1,147 ISF-Telecom Charges 239 - - - Total Town Clerk 217,660$ 172,395$ 237,712$ 246,680$ FY20-21 Proposed Budget Summary of Expenditures Town Clerk 153 Administrative Services Division Service Delivery Plan Lead the organization in the acquisition, maintenance, development, supervision and measurement of the human assets and the results of their work (quality, productivity and service). Protect the Town’s assets from loss and minimize em- ployee injuries on the job. General Fund Administration Department Administrative Services Division Program Name FY17-18 Actual FY18-19 Actual FY19-20 Revised Budget FY20-21 Proposed Budget Administration 130,869$ 162,862$ 221,415$ 259,245$ Risk Management 285,141 300,238 - - Total 416,010$ 463,100$ 221,415$ 259,245$ Expenditures by Program Category FY17-18 Actual FY18-19 Actual FY19-20 Revised Budget FY20-21 Proposed Budget Wages 100,736$ 104,496$ 109,591$ 139,014$ Employment Taxes 1,503 1,586 1,824 3,356 Benefits 24,343 24,815 25,161 29,045 Dues & Memberships 9,175 9,657 9,017 10,347 Meetings and Training 13,457 37,533 36,204 36,204 Contractual Services 260,745 279,473 28,044 28,044 Supplies 4,635 4,728 10,271 10,271 Equipment/Improvements 26 - - - Internal Service 1,390 812 1,303 2,964 Total 416,010$ 463,100$ 221,415$ 259,245$ Expenditures by Category Wages 54% Employment Taxes 1% Benefits 11% Dues & Memberships 4% Meetings and Training 14% Contractual Services 11% Supplies 4% Internal Service 1% Use of Funds -Administrative Services By Category Where does the money go? Total Proposed Budget = $259,245 154 Performance Measures Quality Productivity General Fund Administration Department Administrative Services Division Activities/Results FY17-18 Actual FY18-19 Actual FY19-20 Estimate FY20-21 Target Increase the percentage of employee perfor- mance reviews completed on schedule 88% 90% 93% 97% Increase or maintain the number of applications received per recruitment for non-exempt posi- tions N/A 35 30 25 Increase or maintain the number of applica- tions received per recruitment for exempt posi- tions 29 46 45 30 FY17-18 Actual FY18-19 Actual FY19-20 Estimate FY20-21 Target Decrease the number of days lost to injury per worker’s compensation claim 34 0 112 0 Maintain the turnover rate of full-time employ- ees at an acceptable rate 7% 11% 8% 0% FY17-18 Actual FY18-19 Actual FY19-20 Estimate FY20-21 Target Number of full-time employees departed from Town service 3 9 7 1 Number of exit interviews conducted 3 9 7 1 Ensure supervisors receive performance evalua- tion documentation four weeks in advance 75% 75% 85% 100% Quarterly track and analyze performance evalu- ation trends, including number of performance evaluations that were late, type of increases each employee received, etc. 100% 100% 100% 100% Number of exempt recruitments conducted 7 6 5 1 Number of full-time non-exempt recruitments conducted 1 8 2 0 Average number of days to fill a vacancy 60 69 60 60 Number of workers’ compensation claims due to injury 3 0 1 0 155 General Fund Administration Department Administrative Services Division Description FY17-18 Actual FY18-19 Actual FY19-20 Revised Budget FY20-21 Proposed Budget General Fund Salaries-Full Time 100,736$ 104,495$ 109,591$ 125,789$ Salaries-Part Time - - - 13,225 Fica - - - 820 Medicare 1,321 1,379 1,603 2,030 Workers Compensation 158 184 196 343 Unemployment Insurance 25 23 25 163 Group Health Insurance 10,868 10,875 10,983 11,797 Group Dental Insurance 865 875 932 979 Group Vision Insurance 74 78 79 156 Disability Insurance 399 434 448 1,329 Retirement 11,081 11,495 11,647 13,666 Life Insurance 104 108 122 143 Bonus 51 51 50 75 Allowance/Stipend 900 900 900 900 Dues, Subscript & Publicat 9,175 9,657 9,017 10,347 Training/Cont Ed - 7,635 15,179 15,179 Meetings & Training 13,457 29,898 21,025 21,025 Professional Fees 13,308 14,111 21,084 21,084 Legal Fees - - 1,000 1,000 Insurance Expense 247,437 264,631 4,000 4,000 Printing Expense - - 150 150 Advertising/Signage - 730 1,810 1,810 Office Supplies 192 151 830 830 Cleaning/Janitorial Supplies - - 10 10 Operating Supplies 82 - - - Food & Beverage Supplies 2,582 3,759 5,441 5,441 Program Materials 1,349 789 3,830 3,830 Postage & Delivery 34 30 160 160 Miscellaneous Expense 397 - - - Hardware/Peripherals 26 - - - ISF-Copier Charges 439 323 420 420 ISF-Mail Service Charges 72 - - - ISF-Vehicle Replacement Charges 89 379 673 676 ISF- Motor Pool Charges 311 110 210 721 ISF- Technology Replacement - - - 1,147 ISF-Telecom Charges 478 - - - Total Administrative Services 416,010$ 463,100$ 221,415$ 259,245$ FY20-21 Proposed Budget Summary of Expenditures Administrative Services 156 Purchasing Division Service Delivery Plan The Purchasing Division is responsible for supporting the Town's need for materials and services in accordance with Federal, State, and Town requirements. These requisitions are conducted in an open, competitive, and professional manner, which maximizes the effectiveness of tax dollars. General Fund Administration Department Purchasing Division Program Name FY17-18 Actual FY18-19 Actual FY19-20 Revised Budget FY20-21 Proposed Budget Administration -$ -$ 85,194$ 98,637$ Total -$ -$ 85,194$ 98,637$ Expenditures by Program Category FY17-18 Actual FY18-19 Actual FY19-20 Revised Budget FY20-21 Proposed Budget Wages -$ -$ 62,100$ 79,132$ Employment Taxes - - 1,050 1,452 Benefits - - 19,944 16,436 Dues & Memberships - - - 350 Meetings & Training - - 200 200 Supplies - - 150 150 Equipment/Improvement - - 1,750 - Internal Service - - - 917 Total -$ -$ 85,194$ 98,637$ Expenditures by Category Wages 80% Employment Taxes 1% Benefits 18% Internal Service 1% Use of Funds -Purchasing -By Category Where does the money go? Total Proposed Budget = $98,637 157 Performance Measures Quality Productivity Activities/Results General Fund Administration Department Purchasing Division FY17-18 Actual FY18-19 Actual FY19-20 Estimate FY20-21 Target Requisitions Processed within 60 business hours. N/A N/A 95% 95% Excellent / Good customer survey results. N/A N/A 85% 85% FY17-18 Actual FY18-19 Actual FY19-20 Estimate FY20-21 Target Requisitions processed N/A N/A 900 900 Number of procurement contracts approved by Council N/A N/A 24 24 FY17-18 Actual FY18-19 Actual FY19-20 Estimate FY20-21 Target Number of P-Card Transactions N/A N/A 1,200 1,200 Number of competitive formal solicitations con- ducted N/A N/A 20 20 158 General Fund Administration Department Purchasing Division Description FY17-18 Actual FY18-19 Actual FY19-20 Revised Budget FY20-21 Proposed Budget General Fund Salaries-Full Time -$ -$ 62,100$ 79,132$ Medicare - - 914 1,148 Workers Compensation - - 111 195 Unemployment Insurance - - 25 109 Group Health Insurance - - 10,983 6,303 Group Dental Insurance - - 932 481 Group Vision Insurance - - 156 79 Disability Insurance - - 254 836 Retirement - - 6,600 8,597 Life Insurance - - 69 90 Bonus - - 50 50 Allowance/Stipend - - 900 - Dues, Subscript & Publicat - - - 350 Meetings & Training - - 200 200 Office Supplies - - 150 150 Hardware/Peripherals - - 1,750 - ISF- Technology Replacement - - - 917 Total Purchasing -$ -$ 85,194$ 98,637$ FY20-21 Proposed Budget Summary of Expenditures Purchasing 159 Finance Division Service Delivery Plan Provide efficient and cost effective financial oversight of both the short and long - term components of the Town’s functions. Be proactive in providing financial infor- mation to staff and citizens. Provide safe, secure and effective cash, banking, mer- chant service, tax service and debt service administration for the Town. General Fund Administration Department Finance Division Variance Explanations: Administration: Amounts were added for possible bond advisory services and the biennial development fee audit. Program Name FY17-18 Actual FY18-19 Actual FY19-20 Revised Budget FY20-21 Proposed Budget Accounting 164,076$ 171,416$ 308,661$ 318,407$ Administration 236,495 223,274 267,594 324,330 Customer Service 41,261 44,330 42,985 44,665 Licensing 55,163 58,570 - - Purchasing 61,343 65,336 - - Total 558,338$ 562,926$ 619,240$ 687,402$ Expenditures by Program Accounting 47% Administration 47% Customer Service 6% Use of Funds -Finance -By Program Where does the money go? Total Proposed Budget = $687,402 160 General Fund Administration Department Finance Division Category FY17-18 Actual FY18-19 Actual FY19-20 Revised Budget FY20-21 Proposed Budget Wages 274,987$ 307,580$ 307,493$ 311,460$ Employment Taxes 9,352 7,653 7,478 8,288 Benefits 49,057 58,639 72,200 71,444 Dues & Memberships 10,724 3,754 3,350 3,465 Meetings and Training 3,162 2,845 6,744 8,983 Maintenance & Repair 2,615 2,089 6,000 3,600 Contractual Services 183,127 169,672 202,994 259,534 Supplies 3,144 7,618 10,055 12,440 Equipment 11,270 22 - - Internal Service 10,900 3,054 2,926 8,188 Total 558,338$ 562,926$ 619,240$ 687,402$ Expenditures by Category Wages 46% Employment Taxes 1% Benefits 10% Meetings and Training 1% Maintenance & Repair 1% Contractual Services 38% Supplies 2% Internal Service 1% Use of Funds -Finance -By Category Where does the money go? Total Proposed Budget = $687,402 Variance Explanations: Contractual Services: Amounts were added for possible bond advisory services and the biennial development fee audit. Internal Service: The increase is from the newly created Information Technology Replacement fund. 161 Performance Measures Quality General Fund Administration Department Finance Division Activities/Results Productivity FY17-18 Actual FY18-19 Actual FY19-20 Estimate FY20-21 Target Consecutive years for GFOA annual Certifi- cate of Achievement for Excellence in Finan- cial Reporting award 22 23 24 25 Consecutive years for GFOA annual Distin- guished Budget Presentation award 17 18 19 20 Consecutive years of GFOA annual Popular Reporting Award 6 7 8 9 FY17-18 Actual FY18-19 Actual FY19-20 Estimate FY20-21 Target Actual revenue versus forecast—General Fund only (excluding transfers) 94% 90% 100% 100% Unmodified audit opinion Yes Yes Yes Yes FY17-18 Actual FY18-19 Actual FY19-20 Estimate FY20-21 Target Accounts payable checks issued 1,477 1,487 1,500 1,500 Local tax revenues from audits $171,149 $67,194 $50,000 $50,000 Business licenses processed 2,874 2,866 2,900 2,900 162 General Fund Administration Department Finance Division Description FY17-18 Actual FY18-19 Actual FY19-20 Revised Budget FY20-21 Proposed Budget General Fund Salaries-Full Time 197,518$ 266,545$ 269,646$ 273,111$ Salaries-Part Time 77,277 40,405 37,847 38,349 Overtime 193 630 - - FICA 4,855 2,567 2,304 2,333 Medicare 3,881 4,348 4,476 4,533 Workers Compensation 428 537 548 768 Unemployment Insurance 189 202 150 654 Group Health Insurance 22,655 23,692 36,349 33,579 Group Dental Insurance 2,140 2,721 3,070 2,954 Group Vision Insurance 354 449 479 459 Disability Insurance 776 1,018 1,141 2,899 Retirement 21,659 29,292 29,661 30,043 Life Insurance 204 256 300 310 Bonus 369 311 300 300 Allowance/Stipend 900 900 900 900 Licenses/Filing Fees 876 1,076 1,425 1,585 Dues, Subscript & Publicat 9,848 2,678 1,925 1,880 Meetings & Training 3,162 2,845 6,744 8,983 Office Equip Maint/Repair 2,615 2,089 6,000 3,600 Auditing Expense 74,970 76,981 68,740 70,615 Professional Fees 34,627 14,791 42,300 101,100 Management Fees 14,754 12,209 13,025 13,025 Rentals & Leases 1,214 1,163 1,224 1,224 Printing Expense 1,089 3,152 7,105 2,230 Advertising/Signage 1,433 97 2,000 2,000 Intergovt Agreements 49,606 58,971 65,000 65,500 Contractual Services 1,858 - - - Bank/Merc Acct Fees 3,577 2,307 3,600 3,840 Office Supplies 1,231 998 2,684 2,370 Cleaning/Janitorial Supplies 10 76 - - Operating Supplies 1,722 391 1,975 4,650 Food & Beverage Supplies - 39 - - Program Materials 116 331 620 620 Uniforms - 470 - - Postage & Delivery 63 5,313 4,776 4,800 Software 6,790 - - - Hardware/Peripherals 87 22 - - Equipment 4,393 - - - ISF-Copier Charges 2,418 2,284 1,993 2,005 ISF-Mail Service Charges 5,814 - - - ISF-Vehicle Replacement Charges 426 562 711 773 ISF- Motor Pool Charges 327 208 222 825 ISF- Technology Replacement - - - 4,585 ISF-Telecom Charges 1,914 - - - Total Finance 558,338$ 562,926$ 619,240$ 687,402$ FY20-21 Proposed Budget Summary of Expenditures Finance 163 Information Technology Division Service Delivery Plan The Information Technology Division is dedicated to providing professional support in a timely and responsive manner while focusing on high availability and reliable technology. The Division also endeavors to implement alternative technologies to reduce operating and maintenance costs while improving the user experience. General Fund Administration Department Information Technology Division Administration 35% Operations 65% Use of Funds -Information Technology -By Program Where does the money go? Total Proposed Budget = $320,709 Program Name FY17-18 Actual FY18-19 Actual FY19-20 Revised Budget FY20-21 Proposed Budget Administration 99,255$ 102,082$ 108,261$ 110,756$ Operations 185,972 193,636 207,396 209,953 Total 285,227$ 295,718$ 315,657$ 320,709$ Expenditures by Program 164 Variance Explanations: Equipment: A budget supplement was added to upgrade the access control sys- tem software. General Fund Administration Department Information Technology Division Category FY17-18 Actual FY18-19 Actual FY19-20 Revised Budget FY20-21 Proposed Budget Wages 79,976$ 109,160$ 120,105$ 117,983$ Employment Taxes 1,324 3,483 4,113 4,100 Benefits 16,406 16,808 18,323 18,593 Dues & Memberships 109,886 126,905 139,440 140,900 Meetings and Training - - - - Maintenance and Repair 1,420 1,796 5,000 5,000 Utilities 1,280 12,758 13,700 12,800 Contractual Services 8,245 1,753 1,000 1,000 Supplies 4,133 717 1,850 1,800 Equipment 60,113 22,296 12,000 17,000 Internal Service 2,444 42 126 1,533 Total 285,227$ 295,718$ 315,657$ 320,709$ Expenditures by Category Wages 37% Employment Taxes 1% Benefits 6% Dues & Memberships 44%Maintenance and Repair 2% Utilities 4% Supplies 1% Equipment 5% Use of Funds -Information Technology -By Category Where does the money go? Total Proposed Budget = $320,709 165 Performance Measures Quality Productivity General Fund Administration Department Information Technology Division Activities/Results FY17-18 Actual FY18-19 Actual FY19-20 Estimate FY20-21 Target Percentage of emergency related helpdesk tickets resolved within two business hours 95% 95% 99% 99% Percentage of high priority helpdesk tickets resolved within four hours 98% 98% 98% 100% Percentage of helpdesk tickets resolved within twelve hours 95% 98% 98% 100% FY17-18 Actual FY18-19 Actual FY19-20 Estimate FY20-21 Target Total number of tickets opened 294 344 350 300 Total number of tickets closed without reso- lution 0 0 0 0 Total number of tickets resolved within es- tablished timeframe 294 344 350 300 Number of issues resolved during initial con- tact 235 292 315 270 Online Payments Processed (Website) 1111 884 1200 1500 FY17-18 Actual FY18-19 Actual FY19-20 Estimate FY20-21 Target Availability of computer system up-time 99% 99% 99% 100% Number of Public Meetings Recorded (Video) 25 25 25 25 166 General Fund Administration Department Information Technology Division Description FY17-18 Actual FY18-19 Actual FY19-20 Revised Budget FY20-21 Proposed Budget General Fund Salaries-Full Time 79,976$ 82,961$ 87,006$ 88,120$ Salaries-Part Time - 26,199 33,099 29,863 FICA - 1,624 2,052 1,852 Medicare 1,174 1,597 1,769 1,725 Workers Compensation 125 191 242 305 Unemployment Insurance 24 71 50 218 Group Health Insurance 5,788 5,791 5,849 6,303 Group Dental Insurance 426 431 459 481 Group Vision Insurance 75 78 79 79 Disability Insurance 285 345 368 936 Retirement 8,798 9,126 9,571 9,694 Life Insurance 84 87 97 100 Bonus 51 51 100 100 Allowance/Stipend 900 900 1,800 900 Licenses/Filing Fees 88,152 81,449 97,950 101,800 Dues, Subscript & Publicat 21,734 45,456 41,490 39,100 Equipment Maint/Repair 1,403 1,746 5,000 5,000 Office Equip Maint/Repair 17 50 - - Telecommunications 1,280 12,758 13,700 12,800 Professional Fees 7,245 752 - - Intergovt Agreements 1,000 1,000 1,000 1,000 Office Supplies 114 46 500 500 Operating Supplies 823 669 1,250 1,200 Program Materials 3,177 - - - Postage & Delivery 19 2 100 100 Software 31,045 4,376 500 5,500 Hardware/Peripherals 29,007 17,920 11,500 11,500 Equipment 60 - - - ISF-Copier Charges 14 16 50 50 ISF-Mail Service Charges 3 - - - ISF-Vehicle Replacement Charges - 25 58 52 ISF- Motor Pool Charges 38 1 18 55 ISF- Technology Replacement - - - 1,376 ISF-Telecom Charges 2,390 - - - Total Information Technology 285,227$ 295,718$ 315,657$ 320,709$ FY20-21 Proposed Budget Summary of Expenditures Information Technology 167 Legal Services Division Service Delivery Plan The Town Attorney and Town Prosecutor are appointed by the Town Council to serve as general counsel for the Town in addition to its responsibility for the effi- cient disposition of criminal cases prosecuted in the Municipal Court. General Fund Administration Department Legal Services Division Program Name FY17-18 Actual FY18-19 Actual FY19-20 Revised Budget FY20-21 Proposed Budget Attorney Services 464,384$ 302,557$ 285,116$ 293,564$ Total 464,384$ 302,557$ 285,116$ 293,564$ Expenditures by Program Category FY17-18 Actual FY18-19 Actual FY19-20 Revised Budget FY20-21 Proposed Budget Dues & Memberships 4,432$ (148)$ -$ -$ Contractual Services 459,713 302,705 285,116 293,564 Internal Service 239 - - - Total 464,384$ 302,557$ 285,116$ 293,564$ Expenditures by Category Contractual Services 100% Uses of Funds -Legal Services -By Category Where does the money go? Total Proposed Budget = $293,564 168 Productivity Activities/Results FY17-18 Actual FY18-19 Actual FY19-20 Estimate FY20-21 Target Ordinances processed 16 15 Resolutions processed 89 75 Contracts and Agreements processed 171 250 General Fund Administration Department Legal Services Division Description FY17-18 Actual FY18-19 Actual FY19-20 Revised Budget FY20-21 Proposed Budget General Fund Dues, Subscript & Publicat 4,432$ (148)$ -$ -$ Professional Fees - 8,376 - - Legal Fees 351,031 178,119 166,000 168,800 Advertising/Signage 182 - - - Prosecutor Fees 105,000 110,316 110,316 119,964 Public Defender Fees 3,500 5,894 8,800 4,800 ISF-Telecom Charges 239 - - - Total Legal Services 464,384$ 302,557$ 285,116$ 293,564$ FY20-21 Proposed Budget Summary of Expenditures Legal Services 169 General Government General Fund General Government Department 170 General Fund General Government Department GENERAL GOVERNMENT Mission Statement The mission of the General Government Department is to provide a centralized lo- cation for Town-wide expenditures rather than in individual departmental budgets. By doing so, transparency is enhanced. Department Overview The purpose of the General Government Department is to locate expenditures that are Town-wide and do not belong to any one department. Such expenditures as the community contracts, Town’s membership dues in the Arizona League of Cities and Town, Maricopa Association of Governments, East Valley Partnership, and oth- er Town-wide expenditures are located in the General Government Department. Transfers for Municipal Property Corporation (MPC) debt service for the Communi- ty Center are also located in General Government. Terms such as General Govern- ment and Non-Departmental are commonly used in municipal budgeting to de- scribe this type of cost center. Division FY17-18 Actual FY18-19 Actual FY19-20 Revised Budget FY20-21 Proposed Budget Non-Departmental 204,809$ 263,431$ 634,364$ 2,204,942$ Total 204,809$ 263,431$ 634,364$ 2,204,942$ Expenditures by Division Program Name FY17-18 Actual FY18-19 Actual FY19-20 Revised Budget FY20-21 Proposed Budget Administration 204,809$ 263,431$ 634,364$ 2,204,942$ Total 204,809$ 263,431$ 634,364$ 2,204,942$ Expenditures by Program Variance Explanations: Administration: Due to the uncertainty of the economy, a large contingency was added. Variance Explanations: Non-Departmental: Due to the uncertainty of the economy, a large contingency was added. 171 General Fund General Government Department Variance Explanations: Dues & Memberships: The amount increased for additional memberships. Contractual Services: FY19-20 included a budget supplement for the comprehen- sive user fee study and the General Plan Update. Supplies: An amount was added for the 50th Anniversary Celebration. Contingency: Due to the uncertainty of the economy, a large contingency was added. Category FY17-18 Actual FY18-19 Actual FY19-20 Revised Budget FY20-21 Proposed Budget Dues & Memberships 34,163$ 37,480$ 40,931$ 57,163$ Meetings & Training 3,694 - 650 1,740 Maintenance & Repair 84 5,958 6,300 6,300 Utilities - 22,907 24,120 24,120 Contractual Services 166,787 195,659 527,458 395,159 Supplies 81 6,398 26,305 56,305 Internal Service - (9,191) (10,154) (14,555) Contingency - 4,220 18,754 1,678,710 Total 204,809$ 263,431$ 634,364$ 2,204,942$ Expenditures by Category Contingency 91% Dues & Memberships 4% Supplies 4% Utilities 1% Uses of Funds -General Government -By Category Where does the money go? Total Proposed Budget = $2,204,942 172 General Fund General Government Department Description FY17-18 Actual FY18-19 Actual FY19-20 Revised Budget FY20-21 Proposed Budget General Fund Licenses/Filing Fees -$ 150$ -$ -$ Dues, Subscript & Publicat 34,163 37,330 40,931 57,163 Meetings & Training - - 650 650 Boards & Commissions 3,694 - - 1,090 Office Equipment Maint/Repair - 5,958 6,300 6,300 Sign Repair & Replacement 84 - - - Telecommunications - 22,907 24,120 24,120 Professional Fees 39,200 56,388 116,000 48,000 Legal Fees 365 - - - Insurance Expense - - 298,582 262,749 Advertising/Signage 728 74 10,000 - Contractual Services 12,758 19,551 - - Community Contracts/Events 110,890 118,515 102,795 84,410 Holiday Lighting 2,846 907 - - Interest Expense - 224 - - Office Supplies - 1,123 3,000 3,000 Program Materials - 3,044 21,000 51,000 Postage & Delivery 82 2,231 2,305 2,305 ISF-Copier Charges - (8,179) (8,500) (8,500) ISF-Motor Pool Charges - (1,012) (1,654) (6,055) Contingency - 4,220 18,754 1,678,710 Total General Government 204,810$ 263,431$ 634,283$ 2,204,942$ Summary of Expenditures General Government 173 Municipal Court General Fund Municipal Court Department 174 MUNICIPAL COURT Mission Statement The Fountain Hills Municipal Court is committed to professionally serving the citi- zens 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 sys- tem. Department Overview The Fountain Hills Municipal Court is the judicial branch of the Fountain Hills gov- ernment. Pursuant to State law and the Town Code, decisions regarding the over- all 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 juris- diction over civil traffic, criminal traffic and criminal misdemeanor offenses and vi- olations of our Town Code and ordinances. The Court also has authority over spec- ified juvenile offenses. In addition, the Municipal Court Presiding Judge has author- ity 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, vic- tims’ rights, record keeping, ADA, minimum accounting standards and judicial eth- ics. General Fund Municipal Court Department Program Name FY17-18 Actual FY18-19 Actual FY19-20 Revised Budget FY20-21 Proposed Budget Administration $ 185,639 $ 187,852 193,947$ 200,899$ Operations 135,513 137,699 203,331 201,705 Total $ 321,152 $ 325,551 $ 397,278 $ 402,604 Expenditures by Program Administration 50% Operations 50% Use of Funds -Municipal Court -By Program Where does the money go? Total Proposed Budget = $402,604 175 General Fund Municipal Court Department Category FY17-18 Actual FY18-19 Actual FY19-20 Revised Budget FY20-21 Proposed Budget Wages 239,521$ 249,624$ 260,083$ 264,373$ Employment Taxes 9,064 9,410 9,118 9,820 Benefits 49,053 51,118 51,566 55,658 Dues and Memberships 3,422 2,447 8,863 8,863 Meetings and Training 1,649 1,154 3,405 3,405 Maintenance and Repair 690 798 804 804 Contractual Services 11,720 6,315 58,501 50,981 Supplies 1,956 3,535 3,935 3,935 Equipment 57 214 260 260 Internal Service 4,020 936 743 4,505 Total 321,152$ 325,551$ 397,278$ 402,604$ Expenditures by Category Wages 66% Employment Taxes 2% Benefits 14% Dues and Memberships 2% Meetings and Training 1% Contractual Services 13% Supplies 1% Internal Service 1% Use of Funds -Municipal Court -By Category Where does the money go? Total Proposed Budget = $402,604 Program Name FY17-18 Actual FY18-19 Actual FY19-20 Revised Budget FY20-21 Proposed Budget Total Revenues 152,489$ 120,340$ 179,001$ 185,004$ Total Expenses 321,152 325,551 397,278 402,604 Total $ (168,663) $ (205,211) $ (218,277) $ (217,600) Operating Results 176 General Fund Municipal Court Department FY19-20 Department Accomplishments FY20-21 Objectives Initiative Strategic Value Provided all court and judicial services as mandated by the Con- stitution, statutes and ordinances as fairly, effectively and effi- ciently as possible. Goal #5, Objective #2 Provided community outreach through informing the public and Fountain Hills High School about Teen Court and the justice sys- tem. Goal #5, Objective #2 Goal #5, Objective #1 Effectively and efficiently monitored and enforced timely compli- ance with Court ordered sentencing and diversion programs while holding defendants accountable for their actions and obligations. Goal #5, Objective #2 Complied with recognized Supreme Court/AOC guidelines for timely case processing, management and finances. Goal #5, Objective #2 Goal #4, Objective #1 Continue to seek ways to better improve the court process for citizens. Complying with Administrative orders and new processes from Supreme Court. Goal #5, Objective #2 Initiative Strategic Value Estimated Cost/Funding Source Provide all court and judicial ser- vices as mandated by the Consti- tution, statutes and ordinances as fairly, effectively and efficiently as possible. Goal #5, Objective #2 $0 Provide community outreach and garner support through informing the public and Fountain Hills High School about Teen Court and the justice system. Goal #3, Objective #2 Goal #5, Objective #1 Goal #5, Objective #2 $0 Refurbish or replace, as needed, the benches in the Courtroom due to the wear and tear that the benches have received from years of use. Goal #2, Objective #1 No more than $10,000 Funding Source: CCEF Total amount in unknown Eliminate paper files by transition- ing to scanning of active case rec- ords to improve case processing. With the goal to become entirely file less the processing time should be reduced once the tran- sition has been completed provid- ing the staff a way to better serve the public. Goal #2, Objective #2 Goal #5, Objective #2 Estimated Cost Per Scanner: $4,385.00 Total Estimated Cost of 3 Scanners: $13,155.00 Annual Cost Per Scanner: $785.00 Total Estimated Annual Cost: $2,355.00 Funding Source: CCEF Comply with recognized Arizona Supreme Court/AOC standards for timely case processing, manage- ment, and finances. Goal #5, Objective #2 Goal #4, Objective #1 $0 Comply with standard court secu- rity standards as defined and mandated by the Arizona Su- preme Court/AOC. Goal #5, Objective #2 No more than: $30,000 for upgraded security cameras. Funding Source: CCEF Total amount is unknown. Effectively and efficiently monitor and enforce timely compliance with Court ordered sentencing and diversion programs while holding defendants accountable for their actions and obligations. Goal #5, Objective #2 $0 177 General Fund Municipal Court Department Activities/Results Performance Measures FY17-18 Actual FY18-19 Actual FY19-20 Estimate FY20-21 Target Cases Filed 1,268 786 2,600 2,800 Cases Terminated 1,217 957 2,550 2,750 Hearings/Trial Held 618 830 1,400 1,600 Quality Productivity FY17-18 Actual FY18-19 Actual FY19-20 Estimate FY20-21 Target Achieve a better understanding of how many arraignments the court conducts. 217 Estimat- ed Minimum 395 Estimated Minimum 1050 Minimum 1250 Minimum FY17-18 Actual FY18-19 Actual FY19-20 Estimate FY20-21 Target Telephone 682 1503 1999 2400 Appearance 776 1369 1900 2290 Acceptance of plea agreement 140 209 230 295 Defensive Driving School (DDS) Com- pleted 210 270 1000 1550 178 General Fund Municipal Court Department Description FY17-18 Actual FY18-19 Actual FY19-20 Revised Budget FY20-21 Proposed Budget General Fund Salaries-Full Time 165,592$ 173,846$ 182,375$ 184,724$ Salaries-Part Time 73,929 75,777 77,708 79,649 FICA 5,090 5,218 4,817 4,938 Medicare 3,524 3,686 3,775 3,849 Workers Compensation 352 414 426 597 Unemployment Insurance 98 93 100 436 Group Health Insurance 19,879 19,892 20,232 21,782 Group Dental Insurance 1,512 1,530 1,521 1,709 Group Vision Insurance 224 233 237 237 Disability Insurance 659 722 772 1,960 Retirement 26,324 27,455 28,401 28,660 Life Insurance 172 180 203 210 Bonus 206 206 200 200 Allowance/Stipend 75 900 - 900 Licenses/Filing Fees 3,422 2,447 - - Dues, Subscript & Publicat - - 8,863 8,863 Meetings & Training 1,649 1,154 3,405 3,405 Office Equip Maint/ Repair 690 771 804 804 Sign Repair & Replacement - 27 - - Auditing Expense 3,750 - - - Professional Fees 746 200 2,956 2,956 Legal Fees 400 675 1,400 1,400 Printing Expense 1,283 - 2,000 2,000 Intergovt Agreements 5,157 5,105 11,605 11,825 Contractual Services - - 40,000 32,500 Bank/Merc Acct Fees 385 335 540 300 Office Supplies 1,370 2,019 2,443 2,443 Cleaning/Janitorial Supplies 39 79 32 32 Safety Supplies 42 11 - - Operating Supplies 28 5 - - Food & Beverage Supplies 477 437 660 660 Postage & Delivery - 984 800 800 Hardware/Peripherals 58 214 260 260 ISF-Copier Charges 9 30 5 5 ISF-Mail Service Charges 1,049 - - - ISF-Vehicle Replacement Charge 756 810 562 567 ISF-Motor Pool Charges 54 96 176 604 ISF- Technology Replacement - - - 3,329 ISF-Telecom Charges 2,152 - - - Total Municipal Court 321,152$ 325,551$ 397,278$ 402,604$ FY20-21 Proposed Budget Summary of Expenditures Municipal Court 179 Public Works General Fund Public Works Department Note: Numbers in parentheses represent full-time equivalents (FTE). 180 General Fund Public Works Department PUBLIC WORKS Mission Statement The Public Works Department is dedicated to enhancing the quality of life in Foun- tain Hills by ensuring the construction of quality infrastructure; maintenance of roadways and traffic control devices; maintenance of Town-owned washes, dams, medians and open space; and maintenance of Town facilities in a manner that pro- vides a safe, healthy and secure environment for staff and visitors. The Depart- ment strives to provide quality customer service in a professional and timely man- ner. Department Overview The Public Works Department is made up of three (3) Divisions: Public Works, Fa- cilities and Engineering. The Public Works Director provides direct supervision over Division heads and the executive assistant. Division FY17-18 Actual FY18-19 Actual FY19-20 Revised Budget FY20-21 Proposed Budget Public Works 159,995$ 153,317$ 147,003$ 143,543$ Engineering 144,770 161,644 272,018 279,959 Facilities 490,843 522,566 752,917 697,364 Total 795,608$ 837,527$ 1,171,938$ 1,120,866$ Expenditures by Division Public Works 13%Engineering 25% Facilities 62% Use of Funds -Public Works -By Division Where does the money go? Total Proposed Budget = $1,120,866 181 General Fund Public Works Department Program Name FY17-18 Actual FY18-19 Actual FY19-20 Revised Budget FY20-21 Proposed Budget Administration 184,998$ 194,477$ 158,638$ 155,123$ Building Maintenance 99,164 107,196 197,755 175,130 Engineering 144,770 161,642 272,018 279,959 Operations 312,973 334,818 486,824 451,820 Outside Inspections 53,703 39,394 56,703 58,834 Total 795,608$ 837,527$ 1,171,938$ 1,120,866$ Expenditures by Program Administration 14% Building Maintenance 16% Engineering 25% Operations 40% Outside Inspections 5% Use of Funds -Public Works -By Program Where does the money go? Total Proposed Budget = $1,120,866 Category FY17-18 Actual FY18-19 Actual FY19-20 Revised Budget FY20-21 Proposed Budget Wages 353,971$ 369,558$ 432,034$ 436,294$ Employment Taxes 15,178 17,638 22,873 27,223 Benefits 73,237 76,702 76,981 81,849 Dues & Memberships 11,797 9,111 11,240 3,555 Meetings and Training 685 800 3,285 3,415 Maintenance and Repair 79,270 90,945 234,790 169,465 Utilities 170,463 176,623 195,417 193,445 Contractual Services 38,167 56,477 140,941 138,301 Supplies 25,343 21,088 36,508 36,148 Equipment 5,756 3,447 5,350 11,900 Damages/Vandalism 2,779 - 900 900 Internal Service 18,962 15,138 11,619 18,371 Total 795,608$ 837,527$ 1,171,938$ 1,120,866$ Expenditures by Category Variance Explanations: Dues & Memberships: The decrease is due to the Town-wide elimination of the environmental fee, including fees billed to the Town. Maintenance & Repair: FY19-20 included a budget transfer for chiller repair. 182 General Fund Public Works Department Wages 40% Employment Taxes 2% Benefits 7% Maintenance and Repair 15% Utilities 18% Contractual Services 13% Supplies 3% Internal Service 2% Use of Funds -Public Works -By Category Where does the money go? Total Proposed Budget = $1,120,866 Program Name FY17-18 Actual FY18-19 Actual FY19-20 Revised Budget FY20-21 Proposed Budget Total Revenues $ 32,355 $ 736,993 44,790$ 44,490$ Total Expenses 795,608 837,527 1,171,938 1,120,866 Total $ (763,253) $ (100,534) $ (1,127,148) $ (1,076,376) Operating Results Equipment: A budget supplement was added for metal detectors for the Council Chambers. Internal Service: The increase is from the newly created Information Technology Replacement fund. 183 General Fund Public Works Department FY19-20 Department Accomplishments FY20-21 Objectives Initiative 2017 Strategic Value Fostered a culture of public service and volunteerism Goal 5, Objective 3 Developed and implemented an invest- ment plan to bring additional streets up to established standards Goal 2, Objective 1 Designed and constructed drainage im- provements to minimize Golden Eagle Park flooding Goal 2, Objective 1 Commissioned a study to identify gap between actual & subdivision ordinance specifications & determine cost of meet- ing ordinance specifications Goal 2, Objective 2 Initiative Strategic Value Estimated Cost/Funding Source Restart long range side- walk infill program Goal 2, Objective 1 $100,000/CIP Fund Develop and adopt a comprehensive environ- mental plan Goal 2, Objective 2 Awaiting Estimates / Envi- ronmental Fund Develop & implement an investment plan to bring streets, buildings and parks up to established standards Goal 2, Objective 1 $10,000,000 - $12,000,000 Bond and/or General Fund 184 General Fund Public Works Department Description FY17-18 Actual FY18-19 Actual FY19-20 Revised Budget FY20-21 Proposed Budget General Fund Salaries-Full Time 305,460$ 319,056$ 316,865$ 320,930$ Salaries-Part Time 48,430 50,075 115,169 115,364 Overtime 81 426 - - FICA 3,009 3,111 7,140 7,153 Medicare 4,999 5,199 6,282 6,344 Workers Compensation 7,015 9,141 9,277 12,959 Unemployment Insurance 155 187 174 767 Group Health Insurance 35,311 36,143 36,317 38,509 Group Dental Insurance 2,106 2,263 2,442 2,578 Group Vision Insurance 366 401 420 436 Disability Insurance 1,188 1,310 1,340 3,407 Retirement 33,609 35,147 34,857 35,302 Life Insurance 325 328 352 364 Bonus 332 362 353 353 Allowance/Stipend - 750 900 900 Licenses/Filing Fees 10,286 8,571 9,060 700 Dues, Subscript & Publicat 1,511 540 2,180 2,855 Meetings & Training 685 800 3,285 3,415 Building Maint/Repair 11,164 17,041 44,900 48,315 HVAC Repair 52,069 49,143 149,080 80,680 Plumbing Repair 5,216 185 8,100 8,100 Electrical Repair/Maint - - 5,140 5,140 Fire Protection Systems 6,504 8,571 7,960 8,320 Irrigation Repair 460 879 2,850 2,850 Backflow Testing & Maintenance 250 100 1,235 1,235 Equipment Maint/Repair 1,232 5,517 7,850 7,850 Vehicle Maint/Repair 1,846 239 2,160 1,760 Other Maint/Repair - 6,277 2,400 2,400 Sign Repair & Replacement 530 2,993 2,015 2,815 Painting - - 100 - Lighting Repair - - 1,000 - Electricity Expense 139,636 145,027 155,942 153,290 Refuse/Recycling 1,704 3,004 1,704 1,704 Telecommunications 3,006 4,533 5,736 7,416 Water/Sewer 22,602 21,015 26,985 26,585 Gas & Oil 3,514 3,044 5,050 4,450 Professional Fees 29,888 52,088 76,591 76,951 Rentals & Leases - - 750 750 Printing Expense 148 287 650 650 Advertising/Signage 196 - - - Contractual Services 988 - 25,000 25,000 Bank/Merc Acct Fees 289 173 500 500 Landscape Contracts 6,656 3,928 37,450 34,450 FY20-21 Proposed Budget Summary of Expenditures Public Works Department 185 General Fund Public Works Department Description FY17-18 Actual FY18-19 Actual FY19-20 Revised Budget FY20-21 Proposed Budget FY20-21 Proposed Budget Summary of Expenditures Public Works Department General Fund-continued Office Supplies 587$ 237$ 1,075$ 1,075$ Cleaning/Janitorial Supplies 9,631 9,643 14,500 14,500 Safety Supplies 2,091 269 825 825 Operating Supplies 10,468 8,199 15,833 15,473 Food & Beverage Supplies 1,547 1,875 2,000 2,000 Uniforms 1,021 804 2,100 2,100 Postage & Delivery - 61 175 175 Small Tools 25 94 950 950 Hardware/Peripherals 1,394 - - - Furniture/Appliances 1,152 2,708 2,900 2,900 Equipment 806 645 1,500 8,050 Building Improvements Exp 2,380 - - - Damages/Vandalism 2,779 - 900 900 ISF-Copier Charges 149 220 287 287 ISF-Mail Service Charges 62 - - - ISF-Vehicle Replacement Charge 14,350 14,300 10,984 11,108 ISF-Motor Pool Charges 386 618 348 1,489 ISF- Technology Replacement - - - 5,487 ISF-Telecom Charges 4,014 - - - Total Public Works 795,608$ 837,527$ 1,171,938$ 1,120,866$ 186 Public Works Division Service Delivery Plan The Public Works Division, through its administrative services, is responsible for the general oversight of capital projects and review, approval and inspections related to encroachment permits. General Fund Public Works Department Public Works Division Administration 59% Outside Inspections 41% Use of Funds -Public Works -By Program Where does the money go? Total Proposed Budget = $143,543 Program Name FY17-18 Actual FY18-19 Actual FY19-20 Revised Budget FY20-21 Proposed Budget Administration 106,293$ 113,921$ 90,300$ 84,709$ Outside Inspections 53,702 39,394 56,703 58,834 Total 159,995$ 153,315$ 147,003$ 143,543$ Expenditures by Program 187 General Fund Public Works Department Public Works Division Variance Explanations: Dues & Memberships: The decrease is due to the Town-wide elimination of the en- vironmental fee, including fees billed to the Town. Category FY17-18 Actual FY18-19 Actual FY19-20 Revised Budget FY20-21 Proposed Budget Wages 108,904$ 101,083$ 94,752$ 95,966$ Employment Taxes 4,284 5,234 4,045 5,282 Benefits 25,183 24,717 22,643 23,549 Dues & Memberships 8,460 8,388 9,045 585 Meetings and Training - 800 2,040 2,040 Maintenance and Repair 799 84 1,360 1,360 Utilities 3,633 3,276 3,716 3,716 Contractual Services 553 2,987 700 700 Supplies 1,141 110 1,575 1,575 Equipment - - 450 450 Internal Service 7,038 6,636 6,677 8,320 Total 159,995$ 153,315$ 147,003$ 143,543$ Expenditures by Category Wages 67% Employment Taxes 4% Benefits 16% Meetings and Training 1% Maintenance and Repair 1% Utilities 3%Supplies 1% Internal Service 7% Use of Funds -Public Works -By Category Where does the money go? Total Proposed Budget = $143,543 188 Activities/Results Performance Measures Quality Productivity General Fund Public Works Department Public Works Division FY17-18 Actual FY18-19 Actual FY19-20 Estimate FY20-21 Target Percentage of inspections completed within 24-hours of notice 99% 99% 99% 99% FY17-18 Actual FY18-19 Actual FY19-20 Estimate FY20-21 Target Number of right-of-way and encroachment permits issued 210 204 300 275 Total number of inspections (includes multi- ple inspection totals for residential, commer- cial & encroachment permits) N/A 191 350 325 Number of Capital improvement (CIP) pro- jects completed 1 3 3 4 FY17-18 Actual FY18-19 Actual FY19-20 Estimate FY20-21 Target Expenditure per right -of–way and encroach- ment permits issued $253.31 $193.11 $184.19 $213.94 Expenditure per inspection (includes multiple inspection totals for residential, commercial & encroachment permits) N/A $206.25 $157.87 $181.03 189 General Fund Public Works Department Public Works Division Description FY17-18 Actual FY18-19 Actual FY19-20 Revised Budget FY20-21 Proposed Budget General Fund Salaries-Full Time 108,888$ 100,678$ 94,752$ 95,966$ Overtime 16 405 - - Medicare 1,545 1,429 1,375 1,392 Workers Compensation 2,697 3,750 2,633 3,722 Unemployment Insurance 41 55 37 168 Group Health Insurance 11,705 11,900 10,607 10,680 Group Dental Insurance 808 915 908 969 Group Vision Insurance 124 126 122 138 Disability Insurance 366 441 400 1,019 Retirement 11,979 11,123 10,423 10,556 Life Insurance 113 111 105 109 Bonus 89 101 78 78 Licenses/Filing Fees 8,460 8,388 8,560 100 Dues, Subscriptions & Publications - - 485 485 Meetings & Training - 800 2,040 2,040 Vehicle Maint/Repair 799 84 1,360 1,360 Telecommunications 803 880 1,116 1,116 Gas & Oil 2,830 2,396 2,600 2,600 Professional Fees - 2,744 - - Printing Expense 67 70 200 200 Advertising/Signage 196 - - - Bank/Merc Acct Fees 289 173 500 500 Office Supplies 587 105 900 900 Safety Supplies 22 - 100 100 Uniforms 533 - 575 575 Postage & Delivery - 5 - - Small Tools - - 450 450 ISF-Copier Charges 11 27 30 30 ISF-Mail Service Charges 24 - - - ISF-Vehicle Replacement Charges 6,384 6,519 6,631 6,820 ISF- Motor Pool Charges 21 90 16 48 ISF- Technology Replacement - - - 1,422 ISF-Telecom Charges 598 - - - Total Public Works 159,995$ 153,315$ 147,003$ 143,543$ FY20-21 Proposed Budget Summary of Expenditures Public Works Division 190 Service Delivery Plan The Facilities Division is dedicated to maintaining a safe and clean environment in Town-owned buildings for citizens and employees to enjoy. The Facilities Division maintains Town Hall, Community Center, Library/Museum, Fire Stations Nos. 1 and 2, the Kiwanis Building, the Streets operations building and a vehicle mainte- nance facility. Facilities Division General Fund Public Works Department Facilities Division Location FY17-18 Actual FY18-19 Actual FY19-20 Revised Budget FY20-21 Proposed Budget Town Hall 78,705$ 80,555$ 68,338$ 70,414$ Civic Center 312,973 334,818 486,824 451,820 Fire Station #1 - - 12,105 12,105 Fire Station #2 - - 9,295 10,055 Leased Buildings 99,165 107,194 176,355 152,970 Total 490,843$ 522,567$ 752,917$ 697,364$ Expenditures by Location Town Hall 10% Civic Center 65% Fire Station #1 2% Fire Station #2 1% Leased Buildings 22% Use of Funds -Facilities -By Location Where does the money go? Total Proposed Budget = $697,364 191 General Fund Public Works Department Facilities Division Variance Explanations: Maintenance & Repair: FY19-20 included a budget transfer to fix the chillers. Equipment: A budget supplement was added for metal detectors for the Council Chambers. Category FY17-18 Actual FY18-19 Actual FY19-20 Revised Budget FY20-21 Proposed Budget Wages 141,145$ 160,673$ 158,726$ 160,775$ Employment Taxes 8,215 9,496 9,769 11,848 Benefits 27,658 31,101 32,670 35,115 Dues & Memberships - - 300 300 Maintenance and Repair 78,471 90,861 233,430 168,105 Utilities 166,106 172,759 190,921 188,169 Contractual Services 28,596 26,920 83,491 80,851 Supplies 24,203 20,819 34,463 34,103 Equipment 4,363 3,447 4,900 11,450 Damages/Vandalism 2,779 - 900 900 Internal Service 9,307 6,491 3,347 5,748 Total 490,843$ 522,567$ 752,917$ 697,364$ Expenditures by Category Wages 23% Employment Taxes 2% Benefits 5% Maintenance and Repair 24% Utilities 26% Contractual Services 12% Supplies 5% Equipment 2% Internal Service 1% Use of Funds -Facilities -By Category Where does the money go? Total Proposed Budget = $697,364 192 General Fund Public Works Department Facilities Division Description FY17-18 Actual FY18-19 Actual FY19-20 Revised Budget FY20-21 Proposed Budget General Fund Salaries-Full Time 92,651$ 110,577$ 109,056$ 110,460$ Salaries-Part Time 48,430 50,075 49,670 50,315 Overtime 65 21 - - FICA 3,009 3,111 3,079 3,120 Medicare 1,981 2,264 2,317 2,347 Workers Compensation 3,133 4,009 4,283 5,989 Unemployment Insurance 92 111 90 392 Group Health Insurance 15,871 16,503 17,893 19,424 Group Dental Insurance 746 790 938 984 Group Vision Insurance 130 156 179 179 Disability Insurance 411 421 462 1,173 Retirement 10,199 12,166 11,997 12,150 Life Insurance 105 105 121 125 Bonus 197 210 180 180 Allowance/Stipend - 750 900 900 Dues, Subscript & Publicat - - 300 300 Building Maint/Repair 11,164 17,041 44,900 48,315 HVAC Repair 52,069 49,143 149,080 80,680 Plumbing Repair 5,216 185 8,100 8,100 Electrical Repair/Maint - - 5,140 5,140 Fire Protection Systems 6,504 8,571 7,960 8,320 Irrigation Repair 460 879 2,850 2,850 Backflow Testing & Maintenance 250 100 1,235 1,235 Equipment Maint/Repair 1,232 5,517 7,850 7,850 Vehicle Maint/Repair 1,047 155 800 400 Other Maint/Repair - 6,277 2,400 2,400 Sign Repair & Replacement 530 2,993 2,015 2,815 Painting - - 100 - Lighting Repair - - 1,000 - Electricity Expense 139,636 145,027 155,942 153,290 Refuse/Recycling 1,704 3,004 1,704 1,704 Telecommunications 1,479 3,066 3,840 4,740 Water/Sewer 22,602 21,015 26,985 26,585 Gas & Oil 684 647 2,450 1,850 Professional Fees 21,939 22,922 45,091 45,451 Rentals & Leases - - 750 750 Printing Expense - 70 200 200 Landscape Contracts 6,656 3,928 37,450 34,450 Office Supplies - 67 175 175 Cleaning/Janitorial Supplies 9,631 9,643 14,500 14,500 Safety Supplies 2,069 269 625 625 Operating Supplies 10,468 8,199 15,833 15,473 Food & Beverage Supplies 1,547 1,875 2,000 2,000 Uniforms 488 746 1,325 1,325 FY20-21 Proposed Budget Summary of Expenditures Facilities 193 General Fund Public Works Department Facilities Division Description FY17-18 Actual FY18-19 Actual FY19-20 Revised Budget FY20-21 Proposed Budget FY20-21 Proposed Budget Summary of Expenditures Facilities General Fund-continued Postage & Delivery -$ 21$ 5$ 5$ Small Tools 25 94 500 500 Furniture/Appliances 1,152 2,708 2,900 2,900 Equipment 806 645 1,500 8,050 Building Improvements Exp 2,379 - - - Damages/Vandalism 2,779 - 900 900 ISF-Copier Charges 24 22 57 57 ISF-Mail Service Charges 3 - - - ISF-Vehicle Replacement Charges 6,342 6,469 3,290 2,982 ISF- Motor Pool Charges - - - 48 ISF- Technology Replacement - - - 2,661 ISF-Telecom Charges 2,938 - - - Total Facilities 490,843$ 522,567$ 752,917$ 697,364$ 194 General Fund Public Works Department Facilities Division Performance Measures Quality Activities/Results Productivity FY17-18 Actual FY18-19 Actual FY19-20 Estimate FY20-21 Target Percentage of maintenance requests re- solved within 24 hours 80 80 80 80 Percentage of maintenance requests re- solved within 48 hours 95 95 95 95 Percentage of trade related work orders completed in-house versus contracts 70 70 70 70 FY17-18 Actual FY18-19 Actual FY19-20 Estimate FY20-21 Target Square footage of buildings maintained by staff 107,507 122,003 122,003 118,108 Square footage of buildings cleaned by staff 23,500 23,500 23,500 23,500 Number of annual maintenance requests 350 344 360 350 Number of Custodial Staff 1.25 1.25 1.25 1.25 Library/Museum Custodial Staff .50 .50 .50 .50 Town Hall Custodial Staff .75 .75 .75 .75 FY17-18 Actual FY18-19 Actual FY19-20 Estimate FY20-21 Target Civil Center utility costs per square foot (water, sewer and electricity) $1.81 $1.85 $2.04 $2.00 195 Engineering Division Service Delivery Plan The Engineering Division is responsible for the review of commercial and residen- tial building plans, flood plan administration, preliminary and final plats, easement abandonments, etc. General Fund Public Works Department Engineering Division Program Name FY17-18 Actual FY18-19 Actual FY19-20 Revised Budget FY20-21 Proposed Budget Engineering 205,471$ 144,770$ 272,018$ 279,959$ Total 205,471$ 144,770$ 272,018$ 279,959$ Expenditures by Program Category FY17-18 Actual FY18-19 Actual FY19-20 Revised Budget FY20-21 Proposed Budget Wages 101,435$ 103,922$ 178,556$ 179,553$ Employment Taxes 3,265 2,679 9,059 10,093 Benefits 19,683 20,397 21,668 23,185 Dues & Memberships 595 3,337 1,895 2,670 Meetings & Training 525 684 1,245 1,375 Utilities 706 723 780 1,560 Contractual Services 78,462 9,018 56,750 56,750 Supplies 94 - 470 470 Equipment - 1,394 - - Internal Service 706 2,616 1,595 4,303 Total 205,471$ 144,770$ 272,018$ 279,959$ Expenditures by Category Wages 64% Employment Taxes 4% Benefits 8% Dues & Memberships 1% Utilities 1% Contractual Services 20% Internal Service 2% Use of Funds -Engineering -By Program Where does the money go? Total Proposed Budget = $279,959 196 General Fund Public Works Department Engineering Division Performance Measures Quality Activities/Results FY17-18 Actual FY18-19 Actual FY19-20 Estimate FY20-21 Target Percentage of reviews of final plats, site plans and commercial plans completed within es- tablished turn-around time 95% 95% 95% 99% FY17-18 Actual FY18-19 Actual FY19-20 Estimate FY20-21 Target Number of easements released or acquired 18 25 35 35 Description FY17-18 Actual FY18-19 Actual FY19-20 Revised Budget FY20-21 Proposed Budget General Fund Salaries-Full Time 103,922$ 107,801$ 113,057$ 114,504$ Salaries-Part Time - - 65,499 65,049 Fica - - 4,061 4,033 Medicare 1,473 1,505 2,590 2,605 Workers Compensation 1,184 1,382 2,361 3,248 Unemployment Insurance 22 21 47 207 Group Health Insurance 7,736 7,740 7,817 8,405 Group Dental Insurance 553 559 596 625 Group Vision Insurance 112 118 119 119 Disability Insurance 412 448 478 1,215 Retirement 11,431 11,858 12,437 12,596 Life Insurance 108 112 126 130 Bonus 46 51 95 95 Licenses/Filing Fees 1,826 183 500 600 Dues, Subscript & Publicat 1,511 540 1,395 2,070 Meetings & Training 684 - 1,245 1,375 Telecommunications 723 588 780 1,560 Professional Fees 7,950 26,422 31,500 31,500 Printing Expense 80 148 250 250 Contractual Services 987 - 25,000 25,000 Office Supplies - 65 - - Safety Supplies - - 100 100 Uniforms - 58 200 200 Postage & Delivery - 34 170 170 Hardware/Peripherals 1,394 - - - ISF-Copier Charges 113 172 200 200 ISF-Mail Service Charges 36 - - - ISF-Vehicle Replacement Charges 1,624 1,312 1,063 1,306 ISF- Motor Pool Charges 365 527 332 1,393 ISF- Technology Replacement - - - 1,404 ISF-Telecom Charges 478 - - - Total Engineering 144,770$ 161,644$ 272,018$ 279,959$ FY20-21 Proposed Budget Summary of Expenditures Engineering 197 Development Services General Fund Development Services Department Note: Numbers in parentheses represent full-time equivalents (FTE). 198 DEVELOPMENT SERVICES Mission Statement The Development Services Department is dedicated to enhancing the quality of life in Fountain Hills by providing plan review, construction permitting, building inspec- tions, code enforcement, and Geographic Information Systems, as well as the use of innovative and proven land planning techniques. The Department strives to pro- vide quality customer service in a professional and timely manner. Department Overview The Development Services Department is made up of five (5) Divisions: Develop- ment Services, Building Safety, Code Compliance, Mapping & Graphics and Plan- ning & Zoning. The Development Services Director provides direct supervision over Division heads and the executive assistant. Previously, the Department also con- tained the Engineering Division. General Fund Development Services Department Variance Explanations: Building Safety: FY19-20 included Third-party Fees. Division FY17-18 Actual FY18-19 Actual FY19-20 Revised Budget FY20-21 Proposed Budget Development Services 162,618$ 246,973$ 180,139$ 189,428$ Planning & Zoning 98,097 102,683 111,483 121,088 Building Safety 299,489 334,201 536,490 355,963 Code Compliance 74,502 79,628 158,855 163,545 Mapping & Graphics 96,039 102,723 113,329 116,460 Total 730,745$ 866,208$ 1,100,296$ 946,484$ Expenditures by Division Development Services 20% Planning & Zoning 13% Building Safety 38% Code Compliance 17% Mapping & Graphics 12% Use of Funds -Development Services -By Division Where does the money go? Total Proposed Budget = $946,484 199 General Fund Development Services Department Variance Explanations: Building Inspection: FY19-20 included Third-party Fees. Program Name FY17-18 Actual FY18-19 Actual FY19-20 Revised Budget FY20-21 Proposed Budget Administration 162,618$ 246,973$ 180,139$ 189,428$ Building Inspection 299,489 334,201 536,490 355,963 Code Compliance 74,502 79,628 158,855 163,545 Mapping & Graphics 96,039 102,723 113,329 116,460 Planning & Zoning 98,097 102,683 111,483 121,088 Total 730,745$ 866,208$ 1,100,296$ 946,484$ Expenditures by Program Administration 20% Building Inspection 38% Code Compliance 17% Mapping & Graphics 12%Planning & Zoning 13% Use of Funds -Development Services -By Program Where does the money go? Total Proposed Budget = $946,484 Category FY17-18 Actual FY18-19 Actual FY19-20 Revised Budget FY20-21 Proposed Budget Wages 507,021$ 583,562$ 645,560$ 654,291$ Employment Taxes 14,316 17,654 17,326 20,930 Benefits 104,205 110,857 149,139 153,853 Dues & Memberships 4,452 4,269 4,146 5,491 Meetings and Training 2,244 3,010 12,390 13,540 Maintenance and Repair 2,093 1,891 5,552 7,912 Utilities 2,849 2,840 5,340 4,560 Contractual Services 76,105 125,299 228,664 49,074 Supplies 4,412 7,983 12,360 10,960 Equipment 1,841 560 3,800 300 Internal Service 11,207 8,283 16,019 25,573 Total 730,745$ 866,208$ 1,100,296$ 946,484$ Expenditures by Category 200 General Fund Development Services Department Variance Explanations: Contractual Services: FY19-20 included Third-party Fees. Internal Service: The increase is from the newly created Information Technology Replacement fund. Wages 73% Employment Taxes 2% Benefits 17% Contractual Services 5%Internal Service 3% Use of Funds -Development Services -By Category Where does the money go? Total Proposed Budget = $946,484 Program Name FY17-18 Actual FY18-19 Actual FY19-20 Revised Budget FY20-21 Proposed Budget Total Revenues $ 688,606 $ 515,120 723,192$ 785,018$ Total Expenses 730,745 866,208 1,100,296 946,484 Total $ (42,139) $ (351,088) $ (377,104) $ (161,466) Operating Results 201 General Fund Development Services Department FY19-20 Department Accomplishments FY20-21 Objectives Initiative Strategic Plan Value Completed the 2018 edition of the “Land Use Analy- sis and Statistical Report” Goal #1, Objective #1 Complete the 2020 General Plan Update Goal #1, Goal #2, Goal #3, Goal #4 Continue public outreach and advertising for the 2020 Census update Goal #5, Objective #2 Adopted a text amendment that allows residential uses on commercially zoned properties Goal #1, Objective #2 Initiative Strategic Plan Value Estimated Cost/ Funding Source Complete Sign Code update Goal #1, Objective #1 $0 Continue to revise zoning ordinance to meet strategic plan goals Goal #1, Objective #2 $0 Initiate implementation of the General Plan 2020 Goal #1, Goal #2, Goal #3, Goal #4 $0 202 General Fund Development Services Department Description FY17-18 Actual FY18-19 Actual FY19-20 Revised Budget FY20-21 Proposed Budget General Fund Salaries-Full Time 461,933$ 519,736$ 624,937$ 633,410$ Salaries-Part Time 45,071 63,759 20,623 20,881 Overtime 16 67 - - FICA 2,822 3,960 1,278 1,295 Medicare 7,231 8,315 9,406 9,559 Workers Compensation 3,957 5,159 6,405 9,041 Unemployment Insurance 306 220 237 1,035 Group Health Insurance 45,195 45,261 67,804 65,566 Group Dental Insurance 3,192 3,237 5,195 5,280 Group Vision Insurance 534 559 878 907 Disability Insurance 1,790 1,889 2,645 6,728 Retirement 50,778 57,175 68,745 69,676 Life Insurance 479 473 697 721 Bonus 438 463 475 475 Allowance/Stipend 1,800 1,800 2,700 4,500 Licenses/Filing Fees 1,278 793 1,420 1,690 Dues, Subscript & Publicat 3,174 3,477 2,726 3,801 Meetings & Training 2,244 3,010 12,390 13,540 Equipment Maint/Repair 393 - 2,500 2,500 Vehicle Maint/Repair 199 130 1,252 1,812 Office Equip Maint/Repair 1,501 1,622 1,800 3,600 Sign Repair & Replacement - 139 - - Telecommunications 1,627 1,554 2,340 1,560 Gas & Oil 1,222 1,286 3,000 3,000 Professional Fees 3,937 43,861 7,000 7,000 Rentals & Leases 1,214 1,163 1,214 1,224 Printing Expense 1,312 209 4,850 5,250 Advertising/Signage 1,350 1,837 3,000 3,000 Contractual Services 64,690 78,055 2,500 32,500 Bank/Merc Acct Fees 3,602 174 100 100 Third Party Fees - - 210,000 - Office Supplies 3,670 7,332 10,250 9,050 Cleaning Supplies 33 - - - Operating Supplies 91 5 - - Food & Beverage Supplies 17 - - - Uniforms 531 515 1,830 1,630 Postage & Delivery 69 130 280 280 Small Tools 159 119 300 300 Hardware/Peripherals 1,682 441 3,500 - ISF-Copier Charges 1,288 710 1,415 1,415 ISF-Mail Service Charges 361 - - - ISF-Vehicle Replacement Charge 7,297 7,251 10,733 11,044 ISF-Motor Pool Charges 230 322 3,871 4,860 ISF- Technology Replacement - - - 8,254 ISF-Telecom Charges 2,032 - - - Total Development Services 730,745$ 866,208$ 1,100,296$ 946,484$ FY20-21 Proposed Budget Summary of Expenditures Development Services Department 203 General Fund Development Services Department Development Services Division Development Services Division Service Delivery Plan The Development Services Division, through its administrative services, provides direction to and clerical support for the Department by the Development Services Director and executive assistant. Program Name FY17-18 Actual FY18-19 Actual FY19-20 Revised Budget FY20-21 Proposed Budget Administration 162,618$ 246,971$ 180,139$ 189,428$ Total 162,618$ 246,971$ 180,139$ 189,428$ Expenditures by Program Category FY17-18 Actual FY18-19 Actual FY19-20 Revised Budget FY20-21 Proposed Budget Wages 125,098$ 166,520$ 136,098$ 139,029$ Employment Taxes 3,051 4,306 3,520 4,314 Benefits 23,767 28,376 25,354 28,195 Dues & Memberships 791 729 662 812 Education and Training 305 785 4,100 4,100 Maintenance & Repair 1,501 1,622 1,800 3,600 Utilities 841 901 780 - Contractual Services 1,350 41,375 1,514 1,524 Supplies 2,571 1,467 5,305 5,305 Equipment 1,639 148 - - Internal Service 1,704 742 1,006 2,549 Total 162,618$ 246,971$ 180,139$ 189,428$ Expenditures by Category Wages 76% Employment Taxes 2% Benefits 15% Education and Training 2% Maintenance & Repair 2%Supplies 3% Use of Funds -Development Services -By Category Where does the money go? Total Proposed Budget = $189,428 204 General Fund Development Services Department Development Services Division Performance Measures Quality Activities/Results Productivity FY17-18 Actual FY18-19 Actual FY19-20 Estimate FY20-21 Target Continue to serve as staff liaison to the Plan- ning & Zoning Commission, Zoning Board of Adjustment, and Building Board of Appeals. 15 29 20 25 Continue to support joint P&Z Commission / Town Council joint meetings 1 1 1 1 Prepare/Post Commission and Board meeting agendas both pre and post meetings. 30 37 34 24 Prepare Commission and Board meeting minutes and post approved meeting minutes. 25 24 26 13 FY17-18 Actual FY18-19 Actual FY19-20 Estimate FY20-21 Target Continue to draft, propose and update vari- ous improvements to the Zoning Ordinance, Subdivision Ordinance, and Town Code. Yes Yes Yes Yes Publish the annual Land Use Analysis and Statistical Report Yes Yes Yes Yes Administer contracts for plan review and in- spection consulting services. 2 2 2 4 FY17-18 Actual FY18-19 Actual FY19-20 Estimate FY20-21 Target Process payroll for department Bi-weekly Bi-weekly Bi-weekly Bi-weekly 205 General Fund Development Services Department Development Services Division Description FY17-18 Actual FY18-19 Actual FY19-20 Revised Budget FY20-21 Proposed Budget General Fund Salaries-Full Time 125,082$ 166,454$ 136,098$ 139,029$ Overtime 16 67 - - Medicare 1,819 2,419 1,975 2,030 Workers Compensation 1,195 1,852 1,508 2,121 Unemployment Insurance 37 35 37 163 Group Health Insurance 8,612 8,655 8,774 9,454 Group Dental Insurance 639 654 689 721 Group Vision Insurance 112 117 118 118 Disability Insurance 438 428 576 1,476 Retirement 13,761 18,314 14,971 15,293 Life Insurance 130 107 151 158 Bonus 76 101 75 75 Allowance/Stipend - - - 900 Licenses/Filing Fees - 55 70 70 Dues, Subscript & Publicat 791 674 592 742 Meetings & Training 305 785 4,100 4,100 Office Equip Maint/Repair 1,501 1,622 1,800 3,600 Telecommunications 841 901 780 - Professional Fees - 39,924 - - Rentals & Leases 1,214 1,163 1,214 1,224 Printing Expense 136 139 300 300 Bank/Merc Acct Fees - 148 - - Office Supplies 2,205 1,401 5,000 5,000 Cleaning/Janitorial Supplies 33 - - - Operating Supplies 91 5 - - Food & Beverage Supplies 17 - - - Uniforms 155 60 300 300 Postage & Delivery 69 1 5 5 Hardware/Peripherals 1,639 148 - - ISF-Copier Charges 708 430 650 650 ISF-Mail Service Charges 7 - - - ISF-Vehicle Replacement Charges 325 295 271 253 ISF- Motor Pool Charges 66 17 85 270 ISF- Technology Replacement - - - 1,376 ISF-Telecom Charges 598 - - - Total Development Services 162,618$ 246,971$ 180,139$ 189,428$ FY20-21 Proposed Budget Summary of Expenditures Development Services Division 206 Building Safety Division Service Delivery Plan Building Safety uses the building codes to establish minimum requirements to safeguard the pub- lic safety, health and general welfare through affordability, structural strength, means of egress, facilities, stability, sanitation, light and ventilation, and energy conservation to life and property from fire and other hazards attributed to the built environment, and to provide safety to fire fight- ers and emergency responders during emergency operations. General Fund Development Services Department Building Safety Division Program Name FY17-18 Actual FY18-19 Actual FY19-20 Revised Budget FY20-21 Proposed Budget Building Inspection 299,489$ 334,201$ 536,490$ 355,963$ Total 299,489$ 334,201$ 536,490$ 355,963$ Expenditures by Program Category FY17-18 Actual FY18-19 Actual FY19-20 Revised Budget FY20-21 Proposed Budget Wages 183,105$ 206,616$ 243,450$ 245,316$ Employment Taxes 6,804 8,445 7,245 8,583 Benefits 34,710 35,346 57,883 53,219 Dues & Memberships 367 301 530 380 Meetings and Training 1,439 477 3,990 3,640 Maintenance and Repair 101 237 692 692 Utilities 636 639 1,000 1,000 Contractual Services 67,812 78,275 211,000 31,000 Supplies 60 201 1,630 1,280 Equipment 202 293 1,950 200 Internal Service 4,253 3,371 7,120 10,653 Total 299,489$ 334,201$ 536,490$ 355,963$ Expenditures by Category Variance Explanations: Contractual Services: FY19-20 included Third-party Fees. Variance Explanations: Building Inspection: FY19-20 included Third-party Fees. 207 General Fund Development Services Department Building Safety Division Performance Measures Quality Activities/Results Productivity *Building Inspections are performed by Building Official and third party Inspectors FY17-18 Actual FY18-19 Actual FY19-20 Estimate FY20-21 Target Percentage of all Residential building plan reviews completed within established times 100% 96% 100% 100% Percentage of all Commercial building plan reviews completed within established times 100% 100% 100% 100% FY17-18 Actual FY18-19 Actual FY19-20 Estimate FY20-21 Target All building plan reviews 485 513 800 800 Number of residential plan reviews (Multiple reviews possible) 146 178 675 675 Number of commercial plan reviews (Multiple reviews possible) 25 45 80 80 Number of Inspectors *1 *1 2 2 Total number of permits issued 480 575 734 734 Number of inspections conducted 3,602 4,768 4600 4600 FY17-18 Actual FY18-19 Actual FY19-20 Estimate FY20-21 Target Average expenditure per inspection during the reporting period $83.15 $70.09 $70.98 $77.38 Average cost per permit $623.94 $581.22 $444.81 $484.96 Wages 69% Employment Taxes 2% Benefits 15% Contractual Services 10%Internal Service 3% Use of Funds -Building Safety -By Category Where does the money go? Total Proposed Budget = $355,963 208 General Fund Development Services Department Building Safety Division Description FY17-18 Actual FY18-19 Actual FY19-20 Revised Budget FY20-21 Proposed Budget General Fund Salaries-Full Time 138,034$ 142,857$ 222,827$ 224,435$ Salaries-Part Time 45,071 63,759 20,623 20,881 FICA 2,822 3,960 1,278 1,295 Medicare 2,602 2,957 3,558 3,586 Workers Compensation 1,184 1,411 2,309 3,266 Unemployment Insurance 196 116 100 436 Group Health Insurance 16,562 16,572 27,815 21,945 Group Dental Insurance 1,041 1,053 2,053 1,657 Group Vision Insurance 149 156 314 290 Disability Insurance 558 593 942 2,383 Retirement 15,147 15,714 24,511 24,688 Life Insurance 143 148 248 256 Bonus 210 210 200 200 Allowance/Stipend 900 900 1,800 1,800 Licenses/Filing Fees 12 51 - - Dues, Subscript & Publicat 355 250 530 380 Meetings & Training 1,439 477 3,990 3,640 Vehicle Maint/Repair 101 99 692 692 Sign Repair & Replacement - 139 - - Gas & Oil 636 639 1,000 1,000 Printing Expense 1,176 70 1,000 1,000 Advertising/Signage - 150 - - Contractual Services 63,190 78,055 - 30,000 Bank/Merc Acct Fees 3,447 - - - Third Party Fees - - 210,000 - Office Supplies - - 700 550 Uniforms 60 172 900 700 Postage & Delivery - 29 30 30 Small Tools 159 - 200 200 Hardware/Peripherals 43 293 1,750 - ISF-Copier Charges 118 61 150 150 ISF-Mail Service Charges 49 - - - ISF-Vehicle Replacement Charges 3,366 3,287 3,351 3,416 ISF- Motor Pool Charges 3 23 3,619 3,877 ISF- Technology Replacement - - - 3,210 ISF-Telecom Charges 716 - - - Total Building Safety 299,489$ 334,201$ 536,490$ 355,963$ FY20-21 Proposed Budget Summary of Expenditures Building Safety 209 Code Compliance Division Service Delivery Plan The Code Compliance Division is actively involved in maintaining an excellent quality of life by addressing community issues such as abandoned vehicles, prop- erty maintenance, improperly maintained pools, illegal signs, improper parking on private property, and dumping or other destruction in Town-owned washes. The Code Compliance Division strives to address problems in a confidential, friendly and understanding way which allows for sufficient time to come into compliance voluntarily. General Fund Development Services Department Code Compliance Division Program Name FY17-18 Actual FY18-19 Actual FY19-20 Revised Budget FY20-21 Proposed Budget Code Compliance 74,502$ 79,627$ 158,855$ 163,545$ Total 74,502$ 79,627$ 158,855$ 163,545$ Expenditures by Program Category FY17-18 Actual FY18-19 Actual FY19-20 Revised Budget FY20-21 Proposed Budget Wages 53,439$ 59,609$ 107,839$ 110,241$ Employment Taxes 1,373 1,593 3,023 3,815 Benefits 12,530 13,265 31,053 31,509 Dues & Memberships 70 50 200 220 Meetings and Training 500 290 900 900 Maintenance and Repair 99 32 560 1,120 Utilities 1,372 1,300 3,560 3,560 Contractual Services 1,500 - 2,800 3,200 Supplies 141 141 580 430 Equipment/Improvements - 119 1,750 - Internal Service 3,478 3,228 6,590 8,550 Total 74,502$ 79,627$ 158,855$ 163,545$ Expenditures by Category Wages 68% Employment Taxes 3% Benefits 20% Utilities 2% Contractual Services 2% Internal Service 5% Use of Funds -Code Compliance -By Category Where does the money go? Total Proposed Budget = $163,545 210 Performance Measures Quality Productivity Activities/Results FY17-18 Actual FY18-19 Actual FY19-20 Estimate FY20-21 Target Percentage of code violations brought into voluntary compliance prior to initiation of ad- ministrative or judicial action 99% 99% 99% 99% **Note: The number of cases does not reflect the total quantity of requests for service, as cases are not open on all requests and complaints. In addition to responding to inquiries, other administrative duties take away time from case work. FY17-18 Actual FY18-19 Actual FY19-20 Estimate FY20-21 Target Number of Code Enforcement Officers 1 1 2 2 Number of code violation cases 653 655 650 750 Number of code violation cases reviewed in court proceedings (does not include barking dog cases 8 3 8 6 FY17-18 Actual FY18-19 Actual FY19-20 Estimate FY20-21 Target Average cost per code violation case $114.09 $121.57 $244.39 $218.06 General Fund Development Services Department Code Compliance Division 211 General Fund Development Services Department Code Compliance Division Description FY17-18 Actual FY18-19 Actual FY19-20 Revised Budget FY20-21 Proposed Budget General Fund Salaries-Full Time 53,439$ 59,609$ 107,839$ 110,241$ Medicare 745 811 1,566 1,612 Workers Compensation 603 758 1,407 1,985 Unemployment Insurance 25 23 50 218 Group Health Insurance 5,788 5,792 16,832 15,642 Group Dental Insurance 426 431 1,391 1,176 Group Vision Insurance 124 131 288 264 Disability Insurance 208 241 457 1,174 Retirement 5,878 6,557 11,863 12,127 Life Insurance 55 62 122 126 Bonus 51 51 100 100 Allowance/Stipend - - - 900 Licenses/Filing Fees - - 100 120 Dues, Subscript & Publicat 70 50 100 100 Meetings & Training 500 290 900 900 Vehicle Maint/Repair 99 32 560 1,120 Telecommunications 786 653 1,560 1,560 Gas & Oil 586 647 2,000 2,000 Printing Expense - - 300 700 Contractual Services 1,500 - 2,500 2,500 Office Supplies - 104 150 - Uniforms 141 - 330 330 Postage & Delivery - 38 100 100 Small Tools - 119 - - Hardware/Peripherals - - 1,750 - ISF-Copier Charges 5 3 10 10 ISF-Mail Service Charges 72 - - - ISF-Vehicle Replacement Charge 3,162 3,225 6,580 6,706 ISF- Technology Replacement - - - 1,834 ISF-Telecom Charges 239 - - - Total Code Compliance 74,502$ 79,627$ 158,855$ 163,545$ FY20-21 Proposed Budget Summary of Expenditures Code Compliance 212 Mapping & Graphics Division Service Delivery Plan The Mapping & Graphics Division is dedicated to providing excellent customer ser- vice in a professional and timely manner. The Division is responsible for providing internal and external customers with maps, geographic information, and research. General Fund Development Services Department Mapping & Graphics Division Program Name FY17-18 Actual FY18-19 Actual FY19-20 Revised Budget FY20-21 Proposed Budget Mapping & Graphics 96,039$ 102,724$ 113,329$ 116,460$ Total 96,039$ 102,724$ 113,329$ 116,460$ Expenditures by Program Category FY17-18 Actual FY18-19 Actual FY19-20 Revised Budget FY20-21 Proposed Budget Wages 69,564$ 72,170$ 75,693$ 76,680$ Employment Taxes 1,103 1,159 1,259 1,411 Benefits 17,230 17,561 17,998 16,515 Dues & Memberships 1,883 1,989 1,000 2,000 Meetings and Training - - 1,000 2,500 Maintenance and Repair 393 - 2,500 2,500 Contractual Services 3,959 3,963 10,000 10,000 Supplies 1,465 5,675 3,600 3,600 Internal Service 442 207 279 1,254 Total 96,039$ 102,724$ 113,329$ 116,460$ Expenditures by Category Wages 68% Benefits 14% Dues & Memberships 2% Meetings and Training 2% Maintenance and Repair 2%Contractual Services 9% Supplies 3% Use of Funds -Mapping & Graphics -By Category Where does the money go? Total Proposed Budget = $116,460 213 General Fund Development Services Department Mapping & Graphics Division Activities/Results Performance Measures Quality FY17-18 Actual FY18-19 Actual FY19-20 Estimate FY20-21 Target Work order satisfaction rating 95% 95% 95% 95% FY17-18 Actual FY18-19 Actual FY19-20 Estimate FY20-21 Target Number of internal customer requests pro- cessed 200 175 200 175 Number of aerial site plans completed 150 130 150 130 Number of external customer request pro- cessed 175 150 175 150 GIS database maintenance in hours 80 80 80 80 Description FY17-18 Actual FY18-19 Actual FY19-20 Revised Budget FY20-21 Proposed Budget General Fund Salaries-Full Time 69,564$ 72,170$ 75,693$ 76,680$ Medicare 971 1,010 1,098 1,113 Workers Compensation 108 126 136 189 Unemployment Insurance 24 23 25 109 Group Health Insurance 8,445 8,450 8,534 6,303 Group Dental Insurance 660 668 603 747 Group Vision Insurance 75 78 79 79 Disability Insurance 276 300 321 814 Retirement 7,652 7,939 8,327 8,435 Life Insurance 72 75 84 87 Bonus 51 51 50 50 Licenses/Filing Fees 883 - - - Dues, Subscript & Publicat 1,000 1,989 1,000 2,000 Meetings & Training - - 1,000 2,500 Equipment Maint/Repair 393 - 2,500 2,500 Professional Fees 3,937 3,937 7,000 7,000 Printing Expense - - 2,900 2,900 Bank/Merc Acct Fees 22 26 100 100 Office Supplies 1,465 5,581 3,500 3,500 Uniforms - 94 100 100 ISF-Copier Charges 70 94 130 130 ISF-Mail Service Charges 110 113 - - ISF-Vehicle Replacement Charge 22 - 113 100 ISF- Motor Pool Charges - - 36 107 ISF- Technology Replacement - - - 917 ISF-Telecom Charges 239 - - - Total Mapping & Graphics 96,039$ 102,724$ 113,329$ 116,460$ FY20-21 Proposed Budget Summary of Expenditures Mapping & Graphics 214 Planning & Zoning Division Service Delivery Plan The Planning & Zoning Division is dedicated to enhancing the quality of life in Fountain Hills through innovative, proven planning techniques, and providing ex- cellent customer service in a professional and timely manner. The Division imple- ments land-use planning related goals, policies and programs as approved by the Town Council. The Division processes applications for zoning interpretations and verifications, preliminary and final sub-division plats, variances from the require- ments of the Zoning Ordinance, Temporary Use Permits, Special Use Permits, Commercial Site Plans, signs and amendments to the General Plan and Area Spe- cific Plans. The Division also processes amendments to the Town’s regulations, the Zoning Ordinance, Subdivision Ordinance and Town Code. General Fund Development Services Department Planning & Zoning Division Program Name FY17-18 Actual FY18-19 Actual FY19-20 Revised Budget FY20-21 Proposed Budget Long Range Planning 98,097$ -$ -$ -$ Planning & Zoning - 102,685 111,483 121,088 Total 98,097$ 102,685$ 111,483$ 121,088$ Expenditures by Program Category FY17-18 Actual FY18-19 Actual FY19-20 Revised Budget FY20-21 Proposed Budget Wages 75,814$ 78,645$ 82,480$ 83,025$ Employment Taxes 1,985 2,152 2,279 2,807 Benefits 15,968 16,311 16,851 24,415 Dues & Memberships 1,340 1,201 1,754 2,079 Meetings and Training - 1,457 2,400 2,400 Contractual Services 1,484 1,687 3,350 3,350 Supplies 175 498 1,245 345 Equipment - - 100 100 Internal Service 1,331 734 1,024 2,567 Total 98,097$ 102,685$ 111,483$ 121,088$ Expenditures by Category Variance Explanations: Benefits: Amounts were increased to include family coverage. 215 General Fund Development Services Department Planning & Zoning Division Wages 69% Employment Taxes 2% Benefits 20%Dues & Memberships 2% Meetings and Training 2% Contractual Services 3%Internal Service 2% Use of Funds -Planning -By Category Where does the money go? Total Proposed Budget = $121,088 Performance Measures Quality Activities/Results FY17-18 Actual FY18-19 Actual FY19-20 Estimate FY20-21 Target Number of Long Range Planning Projects 7 3 1 1 Number of Subdivision Ordinance Projects 19 28 30 35 Number of Zoning Cases 48 51 53 58 Number of Building Permit Reviews 323 382 350 375 FY17-18 Actual FY18-19 Actual FY19-20 Estimate FY20-21 Target Percentage of first reviews of plans complet- ed within the established department turna- round time 100 95 95 100 Staff Training (1 time/year) 100 100 100 100 Productivity FY17-18 Actual FY18-19 Actual FY19-20 Estimate FY20-21 Target Average processing cost per plan review $303.71 $268.81 $318.52 $322.90 216 General Fund Development Services Department Planning & Zoning Division Description FY17-18 Actual FY18-19 Actual FY19-20 Revised Budget FY20-21 Proposed Budget General Fund Salaries-Full Time 75,814$ 78,645$ 82,480$ 83,025$ Medicare 1,093 1,117 1,209 1,218 Workers Compensation 867 1,012 1,045 1,480 Unemployment Insurance 24 23 25 109 Group Health Insurance 5,788 5,792 5,849 12,222 Group Dental Insurance 426 431 459 979 Group Vision Insurance 75 78 79 156 Disability Insurance 311 327 349 881 Retirement 8,339 8,651 9,073 9,133 Life Insurance 78 81 92 94 Bonus 51 51 50 50 Allowance/Stipend 900 900 900 900 Licenses/Filing Fees 266 687 1,250 1,500 Dues, Subscript & Publicat 1,074 514 504 579 Meetings & Training - 1,457 2,400 2,400 Printing Expense - - 350 350 Advertising/Signage 1,350 1,687 3,000 3,000 Bank/Merc Acct Fees 134 - - - Office Supplies - 246 900 - Uniforms 175 190 200 200 Postage & Delivery - 62 145 145 Small Tools - - 100 100 ISF-Copier Charges 387 121 475 475 ISF-Mail Service Charges 234 - - - ISF-Vehicle Replacement Charge 333 331 418 569 ISF-Motor Pool Charges 139 282 131 606 ISF- Technology Replacement - - - 917 ISF-Telecom Charges 239 - - - Total Planning 98,097$ 102,685$ 111,483$ 121,088$ FY20-21 Proposed Budget Summary of Expenditures Planning & Zoning 217 Community Services General Fund Community Services Department Note: Numbers in parentheses represent full-time equivalents (FTE). 218 General Fund Community Services Department COMMUNITY SERVICES Mission Statement The mission of the Community Services Department is to provide exceptional cus- tomer service to enhance the quality of life by providing and maintaining safe, available, and accessible parks and facilities, recreation programs, events, and services that will meet the intellectual, social, cultural, and leisure needs of all res- idents. Department Overview Management and operations of Parks, Recreation, Community Center, Senior Ser- vices, McDowell Mountain Preserve, Desert Botanical Garden, a growing public trails system, public art, tourism, and the Avenue of the Fountains Plaza. Division FY17-18 Actual FY18-19 Actual FY19-20 Revised Budget FY20-21 Proposed Budget Community Services 270,922$ 265,086$ 327,845$ 340,968$ Recreation 501,644 545,986 637,851 658,514 Parks 1,055,043 1,046,228 1,224,095 1,391,449 Community Center Operations 240,316 274,785 286,623 314,486 Senior Services 195,665 171,582 212,947 236,629 Total 2,263,590$ 2,303,667$ 2,689,361$ 2,942,046$ Expenditures by Division Community Services 12% Recreation 22% Parks 47% Community Center Operations 11% Senior Services 8% Use of Funds -Community Services -By Division Where does the money go? Total Proposed Budget = $2,942,046 219 Variance Explanations: Home Delivered Meals: Budget was increased to allow for more meals. Open Space: Budget was increased to include the new Adero Trailhead costs. General Fund Community Services Department Program Name FY17-18 Actual FY18-19 Actual FY19-20 Revised Budget FY20-21 Proposed Budget Administration 527,950$ 575,913$ 697,601$ 708,286$ Community Events 165,798 175,152 175,873 189,575 Fountain 150,662 121,176 173,217 175,515 Home Delivered Meals 45,606 50,023 67,010 85,433 Open Space 11,172 12,300 45,330 58,910 Operations 1,200,355 1,214,704 1,338,476 1,518,945 Special Interest Programs 16,087 16,092 15,878 15,878 Sports Activities 39,293 38,611 52,520 52,520 Volunteers 85,739 76,382 93,516 107,044 Youth & Teen Programs 20,928 23,314 29,940 29,940 Total 2,263,590$ 2,303,667$ 2,689,361$ 2,942,046$ Expenditures by Program Administration 24% Community Events 6% Fountain 6% Home Delivered Meals 3% Open Space 2% Operations 53% Sports Activities 2% Volunteers 4% Use of Funds -Community Services -By Program Where does the money go? Total Proposed Budget = $2,942,046 220 General Fund Community Services Department Variance Explanations: Employment Taxes: Budget was increased due to an increase in worker’s compen- sation rates. Internal Service: The increase is from the newly created Information Technology Replacement fund. Capital Expenditures: Budget supplements were added for a new vehicle and UV system for the splashpad in Fountain Park. Category FY17-18 Actual FY18-19 Actual FY19-20 Revised Budget FY20-21 Proposed Budget Wages 926,782$ 976,409$ 1,071,854$ 1,153,557$ Employment Taxes 38,037 41,651 46,370 58,824 Benefits 189,782 208,141 226,676 269,841 Dues & Memberships 6,726 9,045 7,160 7,224 Meetings and Training 7,981 10,053 18,665 19,650 Maintenance and Repair 181,623 146,401 172,973 183,819 Utilities 324,420 286,572 374,888 390,516 Contractual Services 385,613 410,268 526,122 521,615 Supplies 105,476 116,336 154,847 173,046 Equipment 47,386 31,548 9,700 9,700 Damages/Vandalism 1,983 2,729 2,100 2,100 Internal Service 47,781 41,456 53,006 67,154 Contingency - - 25,000 25,000 Capital Expenditures - 23,058 - 60,000 Total 2,263,590$ 2,303,667$ 2,689,361$ 2,942,046$ Expenditures by Category Wages 41% Employment Taxes 2% Benefits 9% Maintenance and Repair 6% Utilities 13% Contractual Services 19% Supplies 6% Internal Service 2% Capital Expenditures 2% Use of Funds -Community Services -By Category Where does the money go? Total Proposed Budget = $2,942,046 221 General Fund Community Services Department FY19-20 Department Accomplishments Initiative Strategic Value Continue Four Peaks Park Renovation Goal #1, Objective #3; Goal #3, Objective #2; Goal #2, Objective #1 Evaluate Community Center space for most effi- cient use Goal #1, Objective #3; Goal #3, Objective #2 Continue to increase the number of special events Goal #1, Objective #3 Organize specialty youth programs Goal #3, Objective #2 Continue to participate in the Youth Coalition Goal #5, Objective #1 Continue to Support Youth Sports Club Goal #3, Objective #2 Expand the use of social media to promote ac- tivities and events Goal #3, Objective #2 Initiative Strategic Value Estimated Cost/Funding Source Continue Four Peaks Park Ren- ovation; complete new basket- ball court Goal #1, Objective #3; Goal #2, Objective #1; Goal #3, Objective #2 $150,000/CIP; in addition to $85,000 AZSTA Grant fund- ing and $85,000 CIP Implement Community Ser- vices Parks, Trails, and Recrea- tion Master Plan Goal #2, Objective #1; CS Vision #2, Task #1a(v) $65,000/Development Fees and General Fund Enlist assistance from the CSAC to spearhead efforts in growing programs Goal #1, Objective #3; CS Vision #1, Task #5(c) $0 Enhance/re-establish Docent/ Volunteer training Goal #1, Objective #3; CS Vision #3, Task #2(a) $0 Expand tournament and club offerings (youth and adult) Goal #3, Objective #2; CS Vision #2, Task#3(a-c) To be Determined/General Fund Offer sensible evening and weekend programs Goal #3, Objective #2; CS Vision #1, Task 2 and Vision #4, Task #1(c) To be Determined/General Fund Continue to expand the use of social media to promote activi- ties and events Goal #3, Objective #2; CS Vision #2, Task #2(b) and Vision #3, Task #3(a) To be Determined/General Fund FY20-21 Objectives Program Name FY17-18 Actual FY18-19 Actual FY19-20 Revised Budget FY20-21 Proposed Budget Total Revenues $ 359,714 $ 338,441 370,213$ 390,078$ Total Expenses 2,263,590 2,303,667 2,689,361 2,942,046 Total $ (1,903,876) $ (1,965,226) $ (2,319,148) $ (2,551,968) Operating Results 222 General Fund Community Services Department Description FY17-18 Actual FY18-19 Actual FY19-20 Revised Budget FY20-21 Proposed Budget General Fund Salaries-Full Time 731,358$ 772,989$ 838,149$ 905,424$ Salaries-Part Time 194,191 202,327 233,705 248,133 Overtime 1,233 1,092 - - FICA 12,101 12,589 14,301 15,172 Medicare 13,176 13,790 15,707 16,894 Workers Compensation 11,935 14,529 15,638 23,530 Unemployment Insurance 825 744 725 3,228 Group Health Insurance 89,438 102,321 109,836 135,474 Group Dental Insurance 6,921 7,473 8,364 10,843 Group Vision Insurance 1,106 1,238 1,297 1,780 Disability Insurance 2,464 3,143 3,549 9,617 Retirement 80,571 84,116 92,195 99,597 Life Insurance 736 787 930 1,030 Bonus 1,572 1,415 1,595 1,600 Allowance/Stipend 6,975 7,650 8,910 9,900 Licenses/Filing Fees 2,136 2,714 2,240 2,240 Dues, Subscript & Publicat 4,590 6,332 4,920 4,984 Meetings & Training 7,786 9,683 18,090 19,075 Boards & Commissions 195 370 575 575 Building Maint/Repair 2,749 380 1,300 1,300 HVAC Repair 150 107 1,400 1,400 Plumbing Repair 2,118 528 2,700 2,700 Electrical Repair/Maint 20,650 16,846 5,950 5,950 Fire Protection Systems 1,221 1,221 2,440 2,440 Grounds Maint/Repair 12,534 40,592 27,600 28,300 Irrigation Repair 25,460 17,829 15,400 15,400 Backflow Testing & Maintenance 672 2,931 2,450 2,450 Storm Damage/Cleanup - 326 - - Equipment Maint/Repair 20,465 16,194 31,790 31,790 Vehicle Maint/Repair 10,025 5,258 11,010 11,010 Office Equip Maint/ Repair 3,444 3,274 6,624 7,020 Other Maint/Repair 28,681 12,216 30,800 40,550 Striping 1,302 408 2,380 2,380 Sidewalk/Pathway Repair 8,857 - 6,575 6,575 Sign Repair & Replacement 5,369 6,094 6,850 6,850 Painting 5,978 2,144 1,804 1,804 Lighting Repair 31,947 20,052 15,900 15,900 Electricity Expense 196,266 181,196 230,642 234,940 Refuse/Recycling 5,124 4,904 6,380 6,380 Telecommunications 5,916 6,102 5,754 6,084 Water/Sewer 105,959 82,618 112,500 123,500 Gas & Oil 11,155 11,752 19,612 19,612 Professional Fees 24,758 23,860 58,740 33,740 Instructor Fees 36,499 39,244 48,165 49,341 Insurance Expense - - - 2,500 Rentals & Leases 31,264 36,416 54,677 42,061 Printing Expense 2,861 3,361 4,355 4,355 FY20-21 Proposed Budget Summary of Expenditures Community Services Department 223 General Fund Community Services Department Description FY17-18 Actual FY18-19 Actual FY19-20 Revised Budget FY20-21 Proposed Budget FY20-21 Proposed Budget Summary of Expenditures Community Services Department General Fund-continued Advertising/Signage 1,763$ 716$ 4,100$ 4,100$ Contractual Services 37,001 42,815 62,200 76,750 Constituent Communication 30,431 27,474 33,990 33,990 Bank/Merc Acct Fees 6,001 5,737 6,705 6,705 Community Contracts/Events 90,626 101,046 98,098 98,800 Landscape Contracts 116,316 120,529 145,009 159,190 ActiveNet Fees 8,095 9,069 10,083 10,083 Office Supplies 2,552 2,513 4,351 4,350 Cleaning/Janitorial Supplies 15,489 13,464 13,429 23,179 Safety Supplies 540 802 1,100 1,100 Operating Supplies 30,728 48,572 76,538 76,538 Food & Beverage Supplies 10,992 11,141 10,620 12,620 Program Materials 41,080 36,190 44,410 50,410 Uniforms 3,728 2,980 3,679 4,129 Postage & Delivery 368 661 720 720 Miscellaneous Expense - 13 - - Small Tools 4,654 2,726 4,500 4,500 Hardware/Peripherals 1,317 3,775 - - Furniture/Appliances 14,433 482 - - Equipment 26,981 24,565 5,200 5,200 Damages/Vandalism 1,983 2,729 2,100 2,100 ISF-Copier Charges 1,962 2,385 1,922 1,922 ISF-Mail Service Charges 432 - - - ISF-Vehicle Replacement Charge 38,509 39,070 50,961 44,658 ISF-Motor Pool Charges 52 - 122 387 ISF- Technology Replacement - - - 20,187 ISF-Telecom Charges 6,824 - - - Contingency - - 25,000 25,000 Vehicles - - - 25,000 Furniture/Appliances - 23,058 - - Park Improvements - - - 35,000 Total Community Services 2,263,590$ 2,303,667$ 2,689,361$ 2,942,046$ 224 Community Services Division Service Delivery Plan The Community Services Division, through its administrative services, provides di- rection to and clerical support for the Department by the Community Services Di- rector and executive assistant and manages the Volunteer program. General Fund Community Services Department Community Services Division Administration 69% Volunteers 31% Use of Funds -Community Services -By Program Where does the money go? Total Proposed Budget = $340,968 Program Name FY17-18 Actual FY18-19 Actual FY19-20 Revised Budget FY20-21 Proposed Budget Administration 185,182$ 188,705$ 234,329$ 233,924$ Volunteers 85,739 76,382 93,516 107,044 Total 270,921$ 265,087$ 327,845$ 340,968$ Expenditures by Program Category FY17-18 Actual FY18-19 Actual FY19-20 Revised Budget FY20-21 Proposed Budget Wages 181,643$ 183,922$ 208,053$ 223,349$ Employment Taxes 2,765 2,938 3,501 4,133 Benefits 50,868 45,177 52,534 67,890 Dues & Memberships 105 42 51 50 Meetings and Training 2,947 6,129 4,475 5,925 Maintenance and Repair 2,193 1,734 2,720 2,720 Utilities 1,061 869 600 600 Contractual Services 6,328 8,790 35,575 13,075 Supplies 18,210 11,915 16,761 16,760 Equipment/Improvements 39 50 - - Internal Service 4,759 3,521 3,575 6,466 Total 270,918$ 265,087$ 327,845$ 340,968$ Expenditures by Category 225 General Fund Community Services Department Community Services Division Performance Measures Activities/Results Quality FY17-18 Actual FY18-19 Actual FY19-20 Estimate FY20-21 Target Continue to serve as staff liaison to the two advisory commissions. 18 18 18 18 Continue to support commission and Council joint meetings. 2 1 1 1 Prepare/post commission meeting agendas both pre and post meetings. 36 36 36 36 Prepare commission meeting minutes and post approved meeting minutes 18 18 18 18 FY17-18 Actual FY18-19 Actual FY19-20 Estimate FY20-21 Target Continue to provide support for various im- provements to the parks. Yes Yes Yes Yes Administer contracts for various capital pro- jects. 2 2 3 3 Variance Explanations: Benefits: Amounts were increased to include family coverage. Contractual Services: FY19-20 included a budget supplement for a parks/ programs/facilities study. Wages 66%Benefits 21% Meetings and Training 2% Contractual Services 4%Supplies 5% Internal Service 2% Use of Funds -Community Services -By Category Where does the money go? Total Proposed Budget = $340,968 226 General Fund Community Services Department Community Services Division Productivity FY17-18 Actual FY18-19 Actual FY19-20 Estimate FY20-21 Target Monitor number of trail users 15,000+ 20,000+ 25,000+ 26,000+ Description FY17-18 Actual FY18-19 Actual FY19-20 Revised Budget FY20-21 Proposed Budget General Fund Salaries-Full Time 131,836$ 137,989$ 197,793$ 223,349$ Overtime - 19 - - Medicare 1,676 1,832 2,905 3,254 Workers Compensation 204 230 354 552 Unemployment Insurance 47 92 72 327 Group Health Insurance 20,852 15,280 22,958 36,241 Group Dental Insurance 1,658 1,186 1,846 2,937 Group Vision Insurance 280 191 280 468 Disability Insurance 404 534 826 2,371 Retirement 14,502 15,181 21,758 24,569 Life Insurance 134 133 216 254 Bonus 96 101 145 150 Allowance/Stipend - - 1,485 900 Dues, Subscript & Publicat 60 - 7 50 Meetings & Training 2,247 5,502 3,705 5,350 Boards & Commissions 195 370 575 575 Vehicle Maint/Repair 29 - 500 500 Office Equip Maint/Repair 2,164 1,651 2,220 2,220 Telecommunications 784 653 - - Gas & Oil 279 216 600 600 Professional Fees - - 25,400 400 Insurance Expense - - - 2,500 Rentals & Leases 3,368 3,371 3,600 3,600 Printing Expense 470 170 75 75 Advertising/Signage - 167 200 200 Constituent Communication - - 678 1,500 Community Events - - 4,800 4,800 Office Supplies 467 683 1,090 1,100 Cleaning/Janitorial Supplies 13 - - - Operating Supplies 14 - 860 860 Food & Beverage Supplies 15 115 7,500 7,500 Program Materials 16 - 6,800 6,800 Postage & Delivery 17 5 368 500 Hardware/Peripherals - 50 - - ISF-Copier Charges 18 71 489 560 ISF-Mail Service Charges 19 - - - ISF-Vehicle Replacement Charge 20 2,913 3,004 3,107 ISF-Motor Pool Charges - - 10 48 ISF-Technology Replacement - - - 2,751 ISF-Telecom Charges 478 - - - Total Community Services 182,362$ 188,705$ 313,119$ 340,968$ FY20-21 Proposed Budget Summary of Expenditures Community Services Division 227 VOLUNTEER PROGRAM Our Fountain Hills Volunteers believe that one of the defining characteristics of our community is our resident’s commitment to service. This commitment is demonstrated through the energy, skills, enthusiasm, vision, and support that they bring to our Town. Our Volunteers deliver meals to homebound residents with the Home Delivered Meals program, and provide transportation for medical appointments for disabled and/or over 65 year old residents with the Give a Lift program. They also take part in assisting with our Special Events such as Turkey Trot, The Irish Fountain Festival, and The Fountain Hills Arts & Craft Fairs... just to name a few. In addition, our Fountain Hills Volunteers provide assistance to residents and visi- tors at Town Hall and the Community Center reception desks. They lead instruc- tion in our various Senior Service programs, provide trail maintenance through the Trailblazer program, assist the Docent lead Art Walk program and provide help and support during times of emergency with the Crisis Support Team. Many of them also utilize their professional skills to assist with projects for the Develop- ment Services and Administration departments. General Fund Community Services Department Community Services Division 228 Community Center Division Service Delivery Plan The Community Center strives to enhance the quality of life of Fountain Hills resi- dents by providing and maintaining a safe, available, and accessible facility that will meet the needs of all residents. General Fund Community Services Department Community Center Division Variance Explanations: Benefits: Amounts were increased to include family coverage. Program Name FY17-18 Actual FY18-19 Actual FY19-20 Revised Budget FY20-21 Proposed Budget Operations 240,316 274,785 286,623 314,486 Total 240,316$ 274,785$ 286,623$ 314,486$ Expenditures by Program Category FY17-18 Actual FY18-19 Actual FY19-20 Revised Budget FY20-21 Proposed Budget Wages 175,708$ 219,072$ 219,939$ 233,536$ Employment Taxes 9,505 13,116 12,306 15,255 Benefits 24,004 26,279 27,685 33,836 Dues & Memberships 902 2,246 852 852 Meetings and Training - - 2,000 2,000 Maintenance and Repair (83) 1,648 2,304 2,700 Utilities 1,138 1,848 2,064 2,064 Contractual Services 7,150 4,427 11,806 12,166 Supplies 1,930 2,597 3,600 3,600 Equipment 17,838 3,484 4,000 4,000 Internal Service 2,224 68 67 4,477 Total 240,316$ 274,785$ 286,623$ 314,486$ Expenditures by Category 229 General Fund Community Services Department Community Center Division Wages 79% Employment Taxes 5% Benefits 12% Contractual Services 4% Use of Funds -Community Center -By Category Where does the money go? Total Proposed Budget = $314,486 Performance Measures Productivity Activities/Results FY17-18 Actual FY18-19 Actual FY19-20 Estimate FY20-21 Target To attain a high overall satisfaction rating (good or better) with quality on rental evalu- ations N/A N/A Good Good To achieve a high return rate on rental sur- veys N/A N/A 50% 50% FY17-18 Actual FY18-19 Actual FY19-20 Estimate FY20-21 Target Number of bookings 4,295 4,350 4,415 4,415 Number of patrons served 81,826 84,000 85,260 85,260 FY17-18 Actual FY18-19 Actual FY19-20 Estimate FY20-21 Target Net operating costs of facility per capita $9.82 $11.22 $11.71 $12.85 Quality 230 General Fund Community Services Department Community Center Division Description FY17-18 Actual FY18-19 Actual FY19-20 Revised Budget FY20-21 Proposed Budget General Fund Salaries-Full Time 104,990$ 116,613$ 124,935$ 126,535$ Salaries-Part Time 70,718 102,461 95,004 107,001 FICA 4,411 6,386 5,784 6,510 Medicare 2,556 3,182 3,197 3,406 Workers Compensation 2,368 3,347 3,134 4,493 Unemployment Insurance 169 200 191 846 Group Health Insurance 10,621 11,345 11,698 15,642 Group Dental Insurance 788 852 918 1,176 Group Vision Insurance 138 154 158 211 Disability Insurance 361 479 529 1,344 Retirement 11,549 12,827 13,743 13,919 Life Insurance 109 120 139 144 Bonus 439 426 500 500 Allowance/Stipend - 75 - 900 Licenses/Filing Fees 575 1,304 700 700 Dues, Subscript & Publicat 327 942 152 152 Meetings & Training - - 2,000 2,000 Office Equip Maint/ Repair (83) 1,245 2,304 2,700 Sign Repair & Replacement - 403 - - Telecommunications 1,138 1,848 2,064 2,064 Professional Fees - - 300 300 Rentals & Leases 3,534 2,460 4,056 4,416 Printing Expense 62 - 130 130 Advertising/Signage 1,281 - 3,500 3,500 Constituent Communication - - 1,500 1,500 Bank/Merc Acct Fees 1,283 1,102 1,320 1,320 ActiveNet Fees 990 865 1,000 1,000 Office Supplies 264 214 450 450 Cleaning/Janitorial Supplies 42 58 - - Operating Supplies 252 269 1,000 1,000 Food & Beverage Supplies 351 606 550 550 Program Materials 565 938 1,000 1,000 Uniforms 455 512 600 600 Small Tools 869 - - - Hardware/Peripherals 754 347 - - Furniture/Appliances 13,792 - - - Equipment 2,424 3,137 4,000 4,000 ISF-Vehicle Replacement Charge 60 68 51 45 ISF-Motor Pool Charges - - 16 48 ISF-Technology Replacement - - - 4,384 ISF-Telecom Charges 2,164 - - - Total Community Center 240,316$ 274,785$ 286,623$ 314,486$ FY20-21 Proposed Budget Summary of Expenditures Community Center 231 Parks Division Service Delivery Plan The Parks Division staff is dedicated to providing safe, clean and green parks that will meet the intellectual, social, cultural, and leisure needs of all park patrons. The Town’s park system has been developed to enhance the quality of life of Fountain Hills residents with hiking trails and park facilities for youth and adult sports pro- grams, youth and teen programs, special events, and facility rentals. Each year, our experienced staff works to meet the goals through efficient park maintenance and operations methods. General Fund Community Services Department Parks Division Variance Explanations: Fountain Park: A budget supplement was added for an additional park operations lead, including a vehicle and a new UV system for the splashpad. Open Space/Trails: Budget was increased to include the new Adero Trailhead costs. Location Name FY17-18 Actual FY18-19 Actual FY19-20 Revised Budget FY20-21 Proposed Budget Town Hall 83,229$ 94,394$ 99,632$ 103,761$ Avenue of the Fountains Plaza 84,162 71,319 124,060 126,709 Fountain Park 367,700 346,325 440,748 584,356 Golden Eagle Park 290,389 313,256 294,371 290,908 Four Peaks Park 113,522 135,288 128,329 134,407 Desert Vista Park 104,869 73,348 91,625 92,398 Open Space/Trails 11,172 12,300 45,330 58,910 Total 1,055,043$ 1,046,230$ 1,224,095$ 1,391,449$ Expenditures by Location Town Hall 7% Avenue of the Fountains Plaza 9% Fountain Park 42% Golden Eagle Park 21% Four Peaks Park 10% Desert Vista Park 7% Open Space/Trails 4% Uses of Funds -Parks -By Location Where does the money go? Total Proposed Budget = $1,391,449 232 General Fund Community Services Department Parks Division Variance Explanations: Open Space: Budget was increased to include the new Adero Trailhead costs. Program Name FY17-18 Actual FY18-19 Actual FY19-20 Revised Budget FY20-21 Proposed Budget Administration 83,229$ 94,394$ 99,632$ 103,761$ Fountain 150,662 121,176 173,217 175,515 Open Space 11,171 12,300 45,330 58,910 Operations 809,981 818,360 905,916 1,053,263 Total 1,055,043$ 1,046,230$ 1,224,095$ 1,391,449$ Expenditures by Program Operations 76% Fountain 13% Administration 7% Open Space 4% Uses of Funds -Parks -By Program Where does the money go? Total Proposed Budget = $1,391,449 233 General Fund Community Services Department Parks Division Variance Explanations: Employment Taxes: Budget was increased due to an increase in worker’s compen- sation rates. Benefits: Amounts were increased to include family coverage. Capital Expenditures: Budget supplements were added for a new vehicle and UV system for the splashpad in Fountain Park. Category FY17-18 Actual FY18-19 Actual FY19-20 Revised Budget FY20-21 Proposed Budget Wages 233,687$ 249,974$ 262,047$ 309,312$ Employment Taxes 8,187 9,322 10,011 15,062 Benefits 69,204 74,905 77,547 102,887 Dues & Memberships 1,125 765 1,040 1,105 Meetings and Training 3,413 2,694 8,390 7,925 Maintenance and Repair 176,890 139,488 164,299 174,749 Utilities 317,089 277,813 366,584 382,212 Contractual Services 137,289 143,330 190,156 184,837 Supplies 45,972 63,822 89,507 99,707 Equipment 24,213 22,502 4,500 4,500 Damages/Vandalism 1,983 2,729 2,100 2,100 Internal Service 35,991 35,828 47,914 47,053 Capital Expenditures - 23,058 - 60,000 Total 1,055,043$ 1,046,230$ 1,224,095$ 1,391,449$ Expenditures by Category Wages 25% Benefits 7% Maintenance and Repair 13% Utilities 28% Contractual Services 13% Supplies 7% Internal Service 3% Capital Expenditures Uses of Funds -Parks -By Category Where does the money go? Total Proposed Budget = $1,391,449 234 General Fund Community Services Department Parks Division Description FY17-18 Actual FY18-19 Actual FY19-20 Revised Budget FY20-21 Proposed Budget General Fund Salaries-Full Time 232,572$ 248,919$ 262,047$ 309,312$ Overtime 1,115 1,052 - - Medicare 3,306 3,510 3,855 4,556 Workers Compensation 4,728 5,696 6,032 9,854 Unemployment Insurance 153 116 124 652 Group Health Insurance 36,262 39,422 40,054 55,727 Group Dental Insurance 2,518 2,790 2,973 4,094 Group Vision Insurance 416 442 446 602 Disability Insurance 809 1,034 1,110 3,288 Retirement 25,706 27,405 28,824 34,023 Life Insurance 240 259 290 353 Bonus 254 254 250 300 Allowance/Stipend 3,000 3,300 3,600 4,500 Licenses/Filing Fees 795 550 590 590 Dues, Subscript & Publicat 330 215 450 515 Meetings & Training 3,413 2,694 8,390 7,925 Building Main/Repair 2,749 380 1,300 1,300 HVAC Repair 150 107 1,400 1,400 Plumbing Repair 2,118 528 2,700 2,700 Electrical Repair/Maint 20,650 16,846 5,950 5,950 Fire Protection Systems 1,221 1,221 2,440 2,440 Grounds Maint/Repair 12,534 40,592 27,600 28,300 Irrigation Repair 25,460 17,829 15,400 15,400 Backflow Testing & Maintenance 672 2,931 2,450 2,450 Storm Damage Cleanup - 326 - - Equipment Maint/Repair 20,465 16,194 30,290 30,290 Vehicle Maint/Repair 8,906 3,893 10,510 10,510 Other Maint/Repair 28,681 12,216 30,800 40,550 Striping 1,302 408 2,380 2,380 Sidewalk/Pathway Repair 8,857 - 6,575 6,575 Sign Repair & Replacement 5,199 3,821 6,800 6,800 Painting 5,978 2,144 1,804 1,804 Lighting Repair 31,947 20,052 15,900 15,900 Electricity Expense 196,266 181,196 230,642 234,940 Refuse/Recycling 4,920 4,904 6,380 6,380 Telecommunications 2,869 2,807 2,850 3,180 Water/Sewer 105,959 82,618 112,500 123,500 Gas & Oil 7,075 6,288 14,212 14,212 Professional Fees 10,765 8,499 13,900 13,900 Rentals & Leases 6,445 10,172 20,380 7,380 Printing Expense 1,937 2,965 2,900 2,900 Contractual Services - - 6,500 - Bank/Merc Acct Fees 1,112 626 772 772 Community Events 66 - - - FY20-21 Proposed Budget Summary of Expenditures Parks 235 General Fund Community Services Department Parks Division Description FY17-18 Actual FY18-19 Actual FY19-20 Revised Budget FY20-21 Proposed Budget FY20-21 Proposed Budget Summary of Expenditures Parks General Fund-continued Landscape Contracts 116,316$ 120,529$ 145,009$ 159,190$ ActiveNet Fees 649 539 695 695 Office Supplies 262 - 100 100 Cleaning/Janitorial Supplies 15,405 13,332 13,279 23,029 Safety Supplies 540 802 1,100 1,100 Operating Supplies 27,701 47,644 72,353 72,353 Food & Beverage Supplies - 464 120 120 Program Materials 117 - 300 300 Uniforms 1,921 1,578 2,250 2,700 Postage & Delivery 25 2 5 5 Small Tools 3,758 2,726 4,500 4,500 Hardware/Peripherals 46 186 - - Furniture/Appliances (245) - - - Equipment 20,653 19,591 - - Damages/Vandalism 1,983 2,729 2,100 2,100 ISF-Copier Charges 399 138 315 315 ISF-Mail Service Charges 1 - - - ISF-Vehicle Replacement Charge 35,114 35,691 47,599 41,234 ISF-Motor Pool Charges - - - - ISF-Technology Replacement 478 - - 5,504 ISF-Telecom Charges - - - - Vehicles - - - 25,000 Furniture/Equipment - 23,058 - - Park Improvements - - - 35,000 Total Parks 1,055,043$ 1,046,230$ 1,224,095$ 1,391,449$ 236 General Fund Community Services Department Parks Division Performance Measures Quality Productivity Activities/Results Fountain Hills Recreation Statistics:  119 Acres of Developed Parks  822 Acres of Mountain Preserve Park  8 Acres of Botanical Garden Preserve  83.2 Acres of Lake Overlook Trail Preserve  7.7 Miles of Preserve Trails  8.7 Miles of Urban Trails (FIT) FY17-18 Actual FY18-19 Actual FY19-20 Estimate FY20-21 Target Restrooms serviced and cleaned 365 days 365 days 365 days 365 days Ramadas cleaned and serviced 365 365 365 365 Trails maintained and ready for use daily 365 365 365 365 Trailhead promotions with brochures, maps and Town website 365 365 365 365 FY17-18 Actual FY18-19 Actual FY19-20 Estimate FY20-21 Target Net expenditures for park operation per capita* $39.70 $38.88 $45.93 $52.60 Park rental/revenue 319/55,691 325/60,000 325/60,000 325/60,000 Fountain Hills Hiking Trail visitors 50,000+ 55,000+ 55,000+ 55,000+ FY17-18 Actual FY18-19 Actual FY19-20 Estimate FY20-21 Target Maintain a high overall satisfaction rating (good or better) of maintenance/operations Good Good Good Good Number of Special Events hosted in parks 35 35 35 35 Number of Tournaments 11 8 8 11 Appearance/availability Good Good Good Good 237 Recreation Division Service Delivery Plan The Recreation Division strives to enhance the quality of life for Fountain Hills resi- dents by providing recreation services that will meet the intellectual, social, cultur- al, and leisure needs of all residents. Program activities include: special interest classes, youth and adult sports programs, youth and teen programs, special events, and facility rentals. General Fund Community Services Department Recreation Division Program Name FY17-18 Actual FY18-19 Actual FY19-20 Revised Budget FY20-21 Proposed Budget Administration 259,539$ 292,817$ 363,640$ 370,601$ Community Events 165,799 175,152 175,873 189,575 Special Interest Programs 16,087 16,093 15,878 15,878 Sports Activities 39,293 38,611 52,520 52,520 Youth & Teen Programs 20,927 23,314 29,940 29,940 Total 501,645$ 545,987$ 637,851$ 658,514$ Expenditures by Program Administration 56% Community Events 29% Special Interest Programs 2% Sports Activities 8% Youth & Teen Programs 5% Use of Funds -Recreation -By Program Where does the money go? Total Proposed Budget = $658,514 238 General Fund Community Services Department Recreation Division Variance Explanations: Supplies: Budget supplement was added to additional Turkey Trot shirts due to increased registrations. Internal Service: The increase is from the newly created Information Technology Replacement fund. Category FY17-18 Actual FY18-19 Actual FY19-20 Revised Budget FY20-21 Proposed Budget Wages 199,012$ 223,837$ 257,987$ 261,933$ Employment Taxes 10,677 11,957 14,409 17,731 Benefits 35,480 42,093 48,917 43,478 Dues & Memberships 3,373 4,542 4,567 4,567 Meetings and Training 1,597 1,230 3,600 3,600 Maintenance and Repair 1,260 2,777 1,500 1,500 Utilities 5,131 6,042 5,640 5,640 Contractual Services 203,684 215,257 237,094 242,796 Supplies 35,609 34,198 37,754 45,754 Equipment 2,811 2,084 - - Internal Service 3,011 1,970 1,383 6,515 Contingency - - 25,000 25,000 Total 501,645$ 545,987$ 637,851$ 658,514$ Expenditures by Category Wages 43% Employment Taxes 3%Benefits 8% Contractual Services 42% Contingency 4% Use of Funds -Recreation -By Category Where does the money go? Total Proposed Budget = $658,514 239 General Fund Community Services Department Recreation Division Activities/Results Performance Measures Quality 1Does not include participations at special events or teen drop in programs 2 Volunteer hours are estimated 3 Population based on U.S. Census 2016 estimate Productivity FY17-18 Actual FY18-19 Actual FY19-20 Estimate FY20-21 Target To attain a High overall satisfaction rating (good or better) with the quality of Town rec- reation programs in post-program evalua- tions 88% % 92% % To achieve a high return rate on recreation program surveys 38% % 40% % FY17-18 Actual FY18-19 Actual FY19-20 Estimate FY20-21 Target Number of individual program participants1 2,737 2,766 2,850 2,900 Number of team sport participants 345 315 600 650 Number of teen trip/teen activity participants 378 492 500 550 Number of volunteer hours in support of Town recreation programs2 826 1120 1,000 1,050 Number of youth sport, Boys and Girls Club, and FHUSD facility bookings 1,397 1,771 1,700 1,750 FY17-18 Actual FY18-19 Actual FY19-20 Estimate FY20-21 Target Net operating costs of recreation programs per capita3 $9.89 $10.34 $11.20 $11.76 240 General Fund Community Services Department Recreation Division Description FY17-18 Actual FY18-19 Actual FY19-20 Revised Budget FY20-21 Proposed Budget General Fund Salaries-Full Time 143,140$ 167,021$ 183,971$ 186,328$ Salaries-Part Time 55,754 56,796 74,016 75,605 Overtime 118 20 - - FICA 3,481 3,536 4,506 4,600 Medicare 2,909 3,221 3,787 3,842 Workers Compensation 4,006 4,998 5,878 8,322 Unemployment Insurance 281 201 238 967 Group Health Insurance 15,054 19,467 22,681 15,642 Group Dental Insurance 1,112 1,329 1,580 1,657 Group Vision Insurance 186 218 237 343 Disability Insurance 493 641 779 1,978 Retirement 15,745 17,433 20,236 20,497 Life Insurance 141 161 204 211 Bonus 423 369 500 450 Allowance/Stipend 2,325 2,475 2,700 2,700 Licenses/Filing Fees 454 398 400 400 Dues, Subscript & Publicat 2,919 4,144 4,167 4,167 Meetings & Training 1,597 1,230 3,600 3,600 Equipment Maint/Repair - - 1,500 1,500 Vehicle Maint/Repair 1,090 1,366 - - Sign Repair & Replacement 170 1,411 - - Refuse/Recycling 204 - - - Telecommunications 1,126 794 840 840 Gas & Oil 3,801 5,248 4,800 4,800 Professional Fees 13,161 14,294 17,880 17,880 Instructor Fees 36,499 38,604 46,800 46,800 Rentals & Leases 17,792 19,122 26,485 26,485 Printing Expense 312 156 1,100 1,100 Advertising/Signage 482 421 400 400 Contractual Services 14,700 15,450 16,800 21,800 Constituent Communication 24,340 22,514 26,700 26,700 Bank/Merc Acct Fees 2,912 3,179 3,423 3,423 Community Events 90,561 97,690 93,298 94,000 ActiveNet Fees 2,925 3,827 4,208 4,208 Office Supplies 259 208 700 700 Operating Supplies 34 - - - Food & Beverage Supplies 1,656 2,304 550 2,550 Program Materials 32,309 30,776 35,595 41,595 Uniforms 1,352 890 829 829 Postage & Delivery - 19 80 80 Small Tools 27 - - - Hardware/Peripherals 450 247 - - Furniture/Appliances 777 - - - Equipment 1,557 1,837 - - ISF-Copier Charges 1,168 1,763 1,047 1,047 ISF-Mail Service Charges 69 - - - ISF-Vehicle Replacement Charge 286 207 256 227 ISF-Motor Pool Charges 52 - 80 243 ISF-Technology Replacement - - - 4,998 ISF-Telecom Charges 1,436 - - - Contingency - - 25,000 25,000 Total Recreation 501,645$ 545,985$ 637,851$ 658,514$ FY20-21 Proposed Budget Summary of Expenditures Recreation 241 Senior Services Division Service Delivery Plan Provide meeting space to members for programs and presentations. Coordinate meeting schedule with support groups and other social services for the communi- ty. Provide a mobility medical equipment loaner program to Town residents. Deliv- er a quality noon-time meal to Town residents who require assistance in obtaining nutritional meals. General Fund Community Services Department Senior Services Division Program Name FY17-18 Actual FY18-19 Actual FY19-20 Revised Budget FY20-21 Proposed Budget Home Delivered Meals 45,606 50,023 67,010 85,433 Operations 150,059 121,559 145,937 151,196 Total 195,665$ 171,582$ 212,947$ 236,629$ Expenditures by Program Operations 64% Home Delivered Meals 36% Use of Funds -Senior Services-By Program Where does the money go? Total Proposed Budget = $236,629 Variance Explanations: Home Delivered Meals: Budget was increased to allow for more meals. 242 General Fund Community Services Department Senior Services Division Category FY17-18 Actual FY18-19 Actual FY19-20 Revised Budget FY20-21 Proposed Budget Wages 136,731$ 99,605$ 123,828$ 125,427$ Employment Taxes 6,903 4,319 6,143 6,643 Benefits 10,226 19,688 19,993 21,750 Dues & Memberships 1,221 1,451 650 650 Meetings and Training 25 - 200 200 Maintenance and Repair 1,364 755 2,150 2,150 Contractual Services 31,162 38,464 51,491 68,741 Supplies 3,755 3,804 7,225 7,225 Equipment 2,483 3,428 1,200 1,200 Internal Service 1,795 68 67 2,643 Total 195,665$ 171,582$ 212,947$ 236,629$ Expenditures by Category Wages 77% Employment Taxes 4% Benefits 13% Maintenance and Repair 2%Supplies 4% Use of Funds -Senior Services-By Category Where does the money go? Total Proposed Budget = $236,629 Variance Explanations: Contractual Services: Budget was increased to allow for more meals. 243 General Fund Community Services Department Senior Services Division Performance Measures Quality Productivity Activities/Results FY17-18 Actual FY18-19 Actual FY19-20 Estimate FY20-21 Target Number of members 1,254 1,312 1,350 1,375 Maintain a high overall satisfaction rating (good or better) of meal quality Good Good Good Good FY17-18 Actual FY18-19 Actual FY19-20 Estimate FY20-21 Target Number of attendees to senior programs And presentations 22,314 20,902 21,000 22,000 Number of days per year meals delivered 365 365 365 365 FY17-18 Actual FY18-19 Actual FY19-20 Estimate FY20-21 Target Number of senior programs offered 63 63 65 65 Number of special guest speaker presenta- tions offered 37 36 35 36 Number of socialization activities/special events offered 6 6 6 6 Number of support groups & social services offered 15 15 15 14 Number of meals delivered annually 3,093 3,562 4,500 4,800 Number of clients participating in HDM pro- gram 38 46 60 65 Number of pieces of medical equipment loaned out N/A 128 140 150 244 General Fund Community Services Department Senior Services Division Description FY17-18 Actual FY18-19 Actual FY19-20 Revised Budget FY20-21 Proposed Budget General Fund Salaries-Full Time 69,013$ 56,537$ 59,143$ 59,900$ Salaries-Part Time 67,718 43,070 64,685 65,527 FICA 4,208 2,668 4,011 4,062 Medicare 1,995 1,364 1,811 1,836 Workers Compensation 550 174 221 309 Unemployment Insurance 150 113 100 436 Group Health Insurance 861 11,014 10,983 12,222 Group Dental Insurance 419 886 932 979 Group Vision Insurance 11 156 156 156 Disability Insurance 224 239 250 636 Retirement 7,592 6,219 6,506 6,589 Life Insurance 60 60 66 68 Bonus 309 213 200 200 Allowance/Stipend 750 900 900 900 Licenses/Filing Fees 312 462 550 550 Dues, Subscript & Publicat 909 989 100 100 Meetings & Training 25 - 200 200 Office Equip Maint/Repair 1,364 379 - - Office Equip Maint/ Repair - - 2,100 2,100 Sign Repair & Replacement - 376 50 50 Professional Fees 816 1,062 1,260 1,260 Instructor Fees - 640 1,365 2,541 Rentals & Leases 125 1,291 156 180 Printing Expense 80 70 150 150 Advertising/Signage - 128 - - Contractual Services 22,301 27,365 38,900 54,950 Constituent Communication 3,616 3,239 4,290 4,290 Bank/Merc Acct Fees 694 831 1,190 1,190 ActiveNet Fees 3,530 3,838 4,180 4,180 Office Supplies 1,079 1,281 2,000 2,000 Cleaning/Janitorial Supplies - 65 150 150 Operating Supplies 391 659 2,325 2,325 Food & Beverage Supplies 1,565 1,259 1,900 1,900 Program Materials 719 345 715 715 Postage & Delivery - 194 135 135 Hardware/Peripherals 27 2,946 - - Furniture/Appliances 109 482 - - Equipment 2,347 - 1,200 1,200 ISF-Mail Service Charges 182 - - - ISF-Vehicle Replacement Charge 60 68 51 45 ISF-Motor Pool Charges - - 16 48 ISF-Technology Replacement - - - 2,550 ISF-Telecom Charges 1,554 - - - Total Senior Services 195,665$ 171,582$ 212,947$ 236,629$ FY20-21 Proposed Budget Summary of Expenditures Senior Services 245 Law Enforcement General Fund Law Enforcement Department 246 LAW ENFORCEMENT Department Overview The Maricopa County Sheriff’s Office is a fully integrated law enforcement agency committed to being the leader in establishing the standards for providing quality law enforcement, detention and support services to the citizens of Maricopa Coun- ty and to other criminal justice agencies. Under the command of Captain Larry Kratzer, twenty-two deputies are assigned to the Town of Fountain Hills. Of these, twenty deputies and six sergeants are as- signed to patrol. In addition, one deputy is assigned as the School Resource Of- ficer and one deputy is assigned as the Community Liaison to address quality of life issues, court security, and administrative duties. Additionally, there are three detectives assigned, one detective supervisor sergeant, one administrative ser- geant, one Commander (Captain), one Deputy Commander (Lieutenant), and one administrative assistant. Mission Statement The Maricopa County Sheriff’s Office (MCSO) proudly provides contractual law en- forcement services to the Town of Fountain Hills by enforcing State and local laws, selective Town Ordinances and deterring criminal activity. MCSO will protect life and property, investigate criminal activity, and will work in partnership with the Town Council, staff, community leaders, and residents to resolve issues and con- cerns. MCSO is dedicated to providing these services to the residents of Fountain Hills and the general public in a respectful, courteous, and professional manner and is supportive of the community-based policing principles. Additionally, all sworn personnel will meet and stay current with established State training as delineated by Arizona Peace Officer Standards and Training Board (AZ POST) and the Maricopa County Sheriff’s Office as a means of reducing liability. General Fund Law Enforcement Department Program Name FY17-18 Actual FY18-19 Actual FY19-20 Revised Budget FY20-21 Proposed Budget Administration 3,768,356$ 4,153,699$ 4,785,920$ 5,029,469$ Animal Control 24,319 - - - Total 3,792,675$ 4,153,699$ 4,785,920$ 5,029,469$ Expenditures by Program 247 General Fund Law Enforcement Department Category FY17-18 Actual FY18-19 Actual FY19-20 Revised Budget FY20-21 Proposed Budget Dues & Memberships 1,295$ 1,295$ 1,296$ 1,296$ Contractual Services 3,769,827 4,152,404 4,774,584 5,018,133 Supplies 652 - 40 40 Damages/Vandalism - - 10,000 10,000 Internal Service 3,500 - - - Capital Expenditures 17,401 - - - Total 3,792,675$ 4,153,699$ 4,785,920$ 5,029,469$ Expenditures by Category Contractual Services 100% Use of Funds -Law Enforcement -By Category Where does the money go? Total Proposed Budget = $5,029,469 Program Name FY17-18 Actual FY18-19 Actual FY19-20 Revised Budget FY20-21 Proposed Budget Total Revenues $ 37,680 $ - -$ -$ Total Expenses 3,792,675 4,153,699 4,785,920 5,029,469 Total $ (3,754,995) $ (4,153,699) $ (4,785,920) $ (5,029,469) Operating Results 248 General Fund Law Enforcement Department Description FY17-18 Actual FY18-19 Actual FY19-20 Revised Budget FY20-21 Proposed Budget General Fund Dues, Subscript & Publicat 1,295$ 1,295$ 1,296$ 1,296$ Printing Expense - - 700 700 Advertising/Signage 809 - - - Intergovt Agreements 19,464 - - - Contractual Services - - 10,000 10,000 Bank/Merc Acct Fees 305 - - - Law Patrol 3,715,447 4,090,928 4,675,701 4,918,265 Jail Fees 33,802 41,778 67,500 67,500 Animal Control - 19,698 20,683 21,668 Office Supplies - - 40 40 Program Materials 652 - - - Rewards Program - - 10,000 10,000 ISF-Copier Charges 362 - - - ISF-Mail Service Charges 3,138 - - - Furniture/Equipment 17,401 - - - Total Law Enforcement 3,792,675$ 4,153,699$ 4,785,920$ 5,029,469$ FY20-21 Proposed Budget Summary of Expenditures Law Enforcement 249 Fire & Emergency Medical General Fund Fire & Emergency Medical Department 250 FIRE & EMERGENCY MEDICAL Mission Statement The mission of the Fire Department is to protect the safety and quality of life of residents, visitors and businesses in Fountain Hills. This mission is achieved by a commitment to exceptional service delivery in fire suppression, emergency medi- cine and rescue, as well as a proactive approach to fire prevention and public safe- ty education. Department Overview Fire protection and Emergency Medical Service (EMS) are provided by a public/ private partnership between the Town and Rural Metro Corporation. The Town owns the equipment and facilities and Rural Metro supplies the personnel through a contract. The Fire Department is responsible for EMS delivery and fire suppression within the Town limits. The Fire Department is also responsible for fire prevention that includes plan review and building inspections. The Fire Department takes the lead role in emergency management and the Fire Chief serves as the Emergency Man- ager for the Town. The Fire Department also provides other community services such as public education, CPR classes, child safety seat checks and other safety programs. General Fund Fire & Emergency Medical Department Program Name FY17-18 Actual FY18-19 Actual FY19-20 Revised Budget FY20-21 Proposed Budget Administration 176,043$ 180,801$ 189,232$ 196,244$ Operations 3,690,352 3,712,040 3,832,068 4,001,086 Total 3,866,395$ 3,892,841$ 4,021,300$ 4,197,330$ Expenditures by Program Operations 95% Administration 5% Use of Funds -Fire & Emergency Medical -By Program Where does the money go? Total Proposed Budget = $4,197,330 251 General Fund Fire & Emergency Medical Department Category FY17-18 Actual FY18-19 Actual FY19-20 Revised Budget FY20-21 Proposed Budget Dues & Memberships 3,959$ 3,256$ 3,360$ 3,360$ Meeting & Training - - 2,200 2,200 Maintenance and Repair 46,257 45,287 55,250 55,250 Utilities 21,691 33,989 35,820 35,820 Contractual Services 3,512,228 3,617,499 3,725,736 3,837,638 Supplies 7,641 6,635 11,975 11,975 Equipment 27,265 12,510 16,500 16,500 Internal Service 247,354 173,665 170,459 234,587 Total 3,866,395$ 3,892,841$ 4,021,300$ 4,197,330$ Expenditures by Category Contractual Services 94% Internal Service 6% Uses of Funds -Fire & Emergency Medical -By Category Where does the money go? Total Proposed Budget = $4,197,330 Variance Explanations: Internal Service: The increase is from the newly created Information Technology Replacement fund. Program Name FY17-18 Actual FY18-19 Actual FY19-20 Revised Budget FY20-21 Proposed Budget Total Revenues $ 111,344 $ 110,947 124,495$ 130,713$ Total Expenses 3,866,395 3,892,841 4,021,300 4,197,330 Total $ (3,755,051) $ (3,781,894) $ (3,896,805) $ (4,066,617) Operating Results 252 General Fund Fire & Emergency Medical Department FY19-20 Department Accomplishments FY19-20 Objectives Initiative Strategic Value Updated Emergency Operations Plan approved by Council N/A Call volume is balancing out between stations and re- sponse times are improving N/A Old Fire Station #2 was sold. Proceeds to CIP Fund. N/A Initiative Strategic Value Estimated Cost/Funding Source Continue to improve response times N/A $0 Develop a Continuity of Operations Plan (COOP) N/A $0 Replace extrication equipment N/A $55,000/Facilities Replacement Fund Activities/Results Performance Measures Quality Productivity FY17-18 Actual FY18-19 Actual FY19-20 Estimate FY20-21 Target Complete Annual Minimum Company Stand- ards Training 100% 100% 100% 100% Emergency Response Times (5 Minutes) 86% 88% 90% 90% FY17-18 Actual FY18-19 Actual FY19-20 Estimate FY20-21 Target Child Safety Seat Checks 84 58 40 60 Public Education Activities 83 133 90 100 FY17-18 Actual FY18-19 Actual FY19-20 Estimate FY20-21 Target Fire Prevention Inspections 841 823 800 780 Plan Reviews 193 216 185 185 253 General Fund Fire & Emergency Medical Department Description FY17-18 Actual FY18-19 Actual FY19-20 Revised Budget FY20-21 Proposed Budget General Fund Dues, Subscript & Publicat 3,959$ 3,256$ 3,360$ 3,360$ Meetings & Training - - 2,200 2,200 Building Maint/Repair 1,081 708 - - Plumbing Repair 374 609 - - Fire Protection Systems 814 814 - - Grounds Maint/Repar - 120 - - Backflow Testing & Maintenance - - 150 150 Equipment Maint/Repair 9,234 11,031 14,050 14,050 Vehicle Maint/Repair 34,542 31,636 40,900 40,900 Office Equip Maint/ Repair - - 150 150 Sign Repair & Replacement 192 370 - - Lighting Repair 19 - - - Electricity Expense - 1,228 3,000 3,000 Refuse/Recycling - - 1,080 1,080 Telecommunications - 4,935 5,040 5,040 Water/Sewer - 1,521 1,500 1,500 Gas & Oil 21,691 26,305 25,200 25,200 Professional Fees 304 864 640 640 Printing Expense 274 163 900 900 Intergovt Agreements 2,004 2,320 2,500 2,750 Contractual Services 3,508,053 3,613,295 3,721,696 3,833,348 Bank/Merc Acct Fees 4 1 - - Landscape Contracts 1,589 856 - - Office Supplies - 21 550 550 Cleaning/Janitorial Supplies - - 50 50 Operating Supplies 3,473 4,452 6,760 6,760 Food & Beverage Supplies 2 146 - - Program Materials 711 1,047 1,000 1,000 Uniforms 3,456 940 3,600 3,600 Postage - 29 15 15 Small Tools 5,776 5,659 6,500 6,500 Hardware/Peripherals 413 838 - - Furniture/Appliances 651 - - - Equipment 20,425 6,013 10,000 10,000 ISF-Copier Charges 292 160 269 269 ISF-Mail Service Charges 27 - - - ISF-Vehicle Replacement Charge 238,102 173,504 170,190 232,651 ISF-Vehicle Replacement Charge - - - 1,667 ISF-Telecom Charges 8,933 - - - Total Fire & Emergency Medical 3,866,395$ 3,892,841$ 4,021,300$ 4,197,330$ FY20-21 Proposed Budget Summary of Expenditures Fire & Emergency Medical 254 General Fund Fire & Emergency Medical Department 255 Special Revenue Funds Streets Fund (HURF) Downtown Strategy Fund Economic Development Fund Tourism Fund Special Revenue Fund Public Art Fund Court Enhancement Fund Environmental Fund Cottonwoods Maint. Dist. Fund Special Revenue Funds 256 Streets Fund Service Delivery Plan The Streets Division is responsible for the maintenance of traffic signals; regulato- ry signs; median landscape maintenance; storm debris clean up; street sweeping; street-related emergency responses; vehicle maintenance; contract administration as well as minor asphalt, curb and sidewalk repairs. The Streets (HURF) Fund, which includes a portion of Vehicle License Taxes (VLT) and transfers from the Capital Projects Fund, pays for Streets personnel and contract work for street re- pair. Streets Fund (HURF) Public Works Department Streets Division Program Name FY17-18 Actual FY18-19 Actual FY19-20 Revised Budget FY20-21 Proposed Budget Administration 314,509$ 432,605$ 529,357$ 537,228$ Open Space 255,891 279,629 430,379 409,323 Pavement Management 1,748,607 3,647,368 4,012,909 3,950,165 Street Signs 46,003 163,443 153,220 156,631 Traffic Signals 188,049 - - - Vehicle Maintenance 58,888 40,929 68,197 67,475 Total 2,611,947$ 4,563,974$ 5,194,062$ 5,120,822$ Expenditures by Program Pavement Management 79% Administration 10% Open Space 8%Street Signs 3% Use of Funds -Streets -By Program Where does the money go? Total Proposed Budget = $5,120,822 257 Streets Fund (HURF) Public Works Department Streets Division Variance Explanations: Employment Taxes: Budget was increased due to an increase in worker’s compen- sation rates. Category FY17-18 Actual FY18-19 Actual FY19-20 Revised Budget FY20-21 Proposed Budget Wages 277,807$ 318,141$ 396,049$ 411,565$ Employment Taxes 15,872 20,687 27,965 38,321 Benefits 74,524 82,964 112,380 111,280 Dues & Memberships 2,003 2,726 8,750 11,750 Meetings and Training 300 410 - - Maintenance and Repair 1,748,410 3,631,774 3,716,365 3,621,185 Utilities 104,491 94,505 145,086 140,446 Contractual Services 302,896 307,105 436,552 451,296 Supplies 10,197 14,811 20,701 22,421 Equipment 13,731 15,130 14,500 12,750 Damages/Vandalism 2,280 6,975 40,000 40,000 Internal Service 34,501 32,119 54,769 59,808 Contingency - - 200,000 200,000 Capital Expenditures 24,935 36,627 20,945 - Total 2,611,947$ 4,563,974$ 5,194,062$ 5,120,822$ Expenditures by Category Maintenance and Repair 73% Contractual Services 10% Wages 8% Contingency 4% Utilities 3%Benefits 2% Use of Funds -Streets -By Category Where does the money go? Total Proposed Budget = $5,120,822 258 Streets Fund (HURF) Public Works Department Streets Division Description FY17-18 Actual FY18-19 Actual FY19-20 Revised Budget FY20-21 Proposed Budget Streets Fund Salaries-Full Time 263,018$ 299,697$ 389,325$ 404,754$ Overtime 3,022 6,909 - - On Call Pay 11,767 11,536 6,724 6,811 Medicare 3,840 4,398 5,761 5,984 Workers Compensation 11,860 16,144 22,057 31,682 Unemployment Insurance 171 145 147 655 Group Health Insurance 38,752 42,065 60,189 55,008 Group Dental Insurance 2,589 2,993 4,572 4,342 Group Vision Insurance 424 491 766 672 Disability Insurance 1,083 1,138 1,673 4,331 Retirement 30,559 34,876 43,541 45,262 Life Insurance 271 299 437 463 Bonus 246 203 302 302 Allowance/Stipend 600 900 900 900 Licenses/Filing Fees 434 382 - - Dues, Subscript & Publicat 1,569 2,344 8,750 11,750 Meetings & Training 300 410 - - Building Maint/Repair 21 1,811 15,000 15,000 HVAC Repair 310 80 - - Plumbing Repair 43 - - - Electrical Repair/Maint 1,130 - 3,000 3,000 Fire Protection Systems 509 509 2,000 2,000 Grounds Maint/Repair 14,406 127 50,000 50,000 Irrigation Repair 1,993 3,367 2,500 5,000 Backflow Testing & Maintenance 1,451 1,889 6,110 6,110 Drainage Maint/Repair 2,757 - 10,000 10,000 Storm Damage Cleanup - 14,307 - - Equipment Maint/Repair 1,647 704 19,300 11,300 Traffic Signal Maint/Repair - 2,889 - - Vehicle Maint/Repair 7,170 12,014 22,625 14,225 Office Equip Maint/ Repair - - 750 750 Other Maint/Repair 3,336 3,730 1,800 1,800 Road Repair - 5,188 - - Striping 12,326 20,047 50,000 100,000 Sidewalk/Pathway Repair 48,900 54,364 70,000 70,000 Other Road Related Repair - 3,178 - - Sign Repair & Replacement 14,483 96,923 32,000 32,000 Pavement Management 1,530,595 3,409,880 3,431,280 3,300,000 Painting - 763 - - Lighting Repair 107,333 - - - Electricity Expense 30,996 30,596 33,620 28,620 Refuse/Recycling 3,316 2,042 16,200 16,200 Telecommunications 3,703 4,689 4,956 5,016 Water/Sewer 57,564 42,779 75,910 76,210 Gas & Oil 8,913 14,400 14,400 14,400 Auditing Expense 8,530 9,694 11,460 11,460 FY20-21 Proposed Budget Summary of Expenditures Streets Fund 259 Streets Fund (HURF) Public Works Department Streets Division Description FY17-18 Actual FY18-19 Actual FY19-20 Revised Budget FY20-21 Proposed Budget FY20-21 Proposed Budget Summary of Expenditures Streets Fund Professional Fees 3,966$ 10,687$ 30,600$ 37,100$ Legal Fees 39,003 19,607 54,000 70,200 Insurance Expense 80,398 82,851 104,392 89,036 Rentals & Leases 1,304 384 - 2,400 Printing Expense 81 - - - Advertising/signage 45 - - - Contractual Services 34,560 1,076 13,500 18,500 Landscape Contracts 135,009 142,706 175,000 175,000 Traffic Signals - 40,100 47,600 47,600 Office Supplies 34 675 2,075 2,075 Cleaning/Janitorial Supplies 291 389 500 500 Safety Supplies 1,440 852 150 1,020 Operating Supplies 6,123 9,870 15,600 16,450 Food & Beverage Supplies 752 1,079 500 500 Program Materials - 139 - - Uniforms 1,161 1,807 1,876 1,876 Postage & Delivery 156 - - - Miscellaneous Expense 241 - - - Small Tools 1,048 1,964 5,250 5,250 Software - - 7,500 7,500 Hardware/Peripherals 6,606 3,400 1,750 - Equipment 6,076 9,766 - - Damages/Vandalism 2,280 6,976 40,000 40,000 ISF-Copier Charges 1 15 5 5 ISF-Mail Service Charges - - - - ISF-Vehicle Replacement Charge 31,450 32,079 54,748 54,205 ISF-Motor Pool Charges 20 25 16 48 ISF-Technology Replacement - - - 5,550 ISF-Telecom Charges 3,030 - - - Contingency - - 200,000 200,000 Furniture/Equipment 24,935 36,627 20,945 - Total Streets 2,611,947$ 4,563,974$ 5,194,062$ 5,120,822$ 260 Streets Fund (HURF) Public Works Department Streets Division Performance Measures Activities/Results Quality Productivity FY17-18 Actual FY18-19 Actual FY19-20 Estimate FY20-21 Target Pothole repair requests completed within two business days. 95% 95% 100% 100% FY16-17 Actual FY17-18 Actual FY18-19 Estimate FY19-20 Target Total residential lane miles 265 265 265 265 Total arterial lane miles 79 79 79 79 Number of vehicles in fleet 40 40 45 45 Acreage of medians maintained 56 56 56 56 Number of Adopt-a-Street active participants 60 60 32 40 FY16-17 Actual FY17-18 Actual FY18-19 Estimate FY19-20 Target Net Expenditures per capita $106.69 $186.42 $212.16 $209.17 Program Name FY17-18 Actual FY18-19 Actual FY19-20 Revised Budget FY20-21 Proposed Budget Total Revenues $ 3,460,862 $ 3,741,862 3,526,902$ 3,704,526$ Total Expenses 2,611,947 4,563,974 5,194,062 5,120,822 Total $ 848,915 $ (822,112) $ (1,667,160) $ (1,416,296) Operating Results 261 Excise Tax Funds Administration Department The Town originally established an Excise Tax/Downtown Fund on August 3, 2000 for the purpose of improving the downtown area and spur economic activity. This fund had been funded through a dedicated portion of the Town’s local sales tax (0.1% of 2.9%). On April 18, 2013, the Town Council established an additional fund by splitting the original Excise Tax/Downtown Fund into two separate funds: Downtown Strategy Fund (original Excise Tax/Downtown Fund) Economic Development Fund (new) Both funds were originally funded through the dedicated 0.1% of local sales tax with a 60/40 split—60% of sales tax revenues would be allocated to the new Eco- nomic Development Fund and 40% of sales tax revenues would be allocated to the Downtown Strategy Fund. The residual fund balance of the Excise Tax/Downtown Fund as of June 30, 2013, was included with any new revenue in the Downtown Strategy Fund to be used towards Town Center infrastructure improvement and development. In January 2015, the percentage was changed to 80/20, respective- ly. The Economic Development Fund is now funded with 80% of the 0.1% local sales tax and will be available for any economic development purpose. 262 Downtown Strategy Fund Service Delivery Plan The Downtown Strategy Fund was established to provide resources for enhance- ment to the downtown area through capital and economic development expendi- tures to enhance the downtown’s economic base. Downtown Strategy Fund Administration Department Economic Development Division Program Name FY17-18 Actual FY18-19 Actual FY19-20 Revised Budget FY20-21 Proposed Budget Administration 56,044$ 38,204$ 46,400$ 38,400$ Total 56,044$ 38,204$ 46,400$ 38,400$ Expenditures by Program Category FY17-18 Actual FY18-19 Actual FY19-20 Revised Budget FY20-21 Proposed Budget Maintenance and Repair 12,981$ 1,079$ 8,000$ -$ Contractual Services 43,063 37,125 38,400 38,400 Total 56,044$ 38,204$ 46,400$ 38,400$ Expenditures by Category Contractual Services 100% Use of Funds -Downtown Strategy -By Category Where does the money go? Total Proposed Budget = $38,400 Variance Explanations: Maintenance and Repair: FY19-20 included a budget transfer to purchase new banners on the Avenue of the Fountains. 263 Downtown Strategy Fund Administration Department Economic Development Division Description FY17-18 Actual FY18-19 Actual FY19-20 Revised Budget FY20-21 Proposed Budget Downtown Strategy Fund Sign Repair & Replacement 12,981$ 1,079$ 8,000$ -$ Management Fees 313 381 400 400 Advertising/Signage 29 - - - Holiday Lighting 42,721 36,744 38,000 38,000 Total Downtown Strategy Fund 56,044$ 38,204$ 46,400$ 38,400$ FY20-21 Proposed Budget Summary of Expenditures Downtown Strategy Fund 264 Economic Development Fund Service Delivery Plan Economic Development in Fountain Hills requires a collaborative effort to ensure success. The Town of Fountain Hills plays a key role along with the business com- munity and residents. The Town works collaboratively with the various stakeholder groups and other agencies in its effort to diversify the local economy. The Economic Development Plan is a multi-tiered approach to building a strong economic base. Creating more base jobs locally will attract more year-round resi- dents to live, work and play in the community. Expanding the market for local businesses creates revenues that support the community’s quality of life. As reve- nues are generated and the economic base expands, revenues are available for basic services such as parks, recreation and roadway improvements. Economic Development Fund Administration Department Economic Development Division Program Name FY17-18 Actual FY18-19 Actual FY19-20 Revised Budget FY20-21 Proposed Budget Administration 183,332$ 224,053$ 285,482$ 241,270$ Total 183,332$ 224,053$ 285,482$ 241,270$ Expenditures by Program Category FY17-18 Actual FY18-19 Actual FY19-20 Revised Budget FY20-21 Proposed Budget Wages 85,749$ 151,288$ 208,941$ 164,790$ Employment Taxes 1,372 2,549 3,481 3,026 Benefits 20,098 30,012 41,867 44,765 Dues & Memberships 8,968 10,293 9,504 5,624 Meetings & Training 3,539 2,809 6,320 6,320 Contractual Services 63,125 26,907 15,100 15,100 Supplies 52 139 200 200 Internal Service 429 56 69 1,445 Total 183,332$ 224,053$ 285,482$ 241,270$ Expenditures by Category Variance Explanations: Wages: The decrease is from personnel allocation changes. 265 Economic Development Fund Administration Department Economic Development Division Activities/Results Performance Measures Wages 69% Benefits 20% Dues & Memberships 2% Meetings & Training 3% Contractual Services 6% Use of Funds -Economic Development -By Category Where does the money go? Total Proposed Budget = $241,270 Program Name FY17-18 Actual FY18-19 Actual FY19-20 Revised Budget FY20-21 Proposed Budget Total Revenues 318,430$ 354,913$ 328,111$ 348,744$ Total Expenses 183,332 224,053 285,482 241,270 Total $ 135,098 $ 130,860 $ 42,629 $ 107,474 Operating Results FY17-18 Actual FY18-19 Actual FY19-20 Estimate FY20-21 Target Facilitate and/or re- cruit new base sec- tor employment op- portunities 30 jobs $1M CAPEX 25 jobs $1.5M CAPEX 50 jobs $15M CAPEX 25 jobs $1.5M CAPEX Facilitate retention or expansion of tar- geted existing busi- nesses 15 jobs 62 jobs $100K CAPEX 0 jobs $0 CAPEX 30 jobs $1M CAPEX Support and struc- ture assistance for entrepreneurial growth 2 through Arizona Business Advisors 2 through Arizona Business Advisors 1 through Arizona Business Advisors 2 through Arizona Business Advisors 266 Economic Development Fund Administration Department Economic Development Division Description FY17-18 Actual FY18-19 Actual FY19-20 Revised Budget FY20-21 Proposed Budget Economic Development Fund Salaries-Full Time 85,749$ 151,288$ 208,941$ 164,790$ Medicare 1,213 2,181 3,056 2,456 Workers Compensation 134 274 375 407 Unemployment Insurance 24 94 50 163 Group Health Insurance 8,548 10,723 14,535 18,332 Group Dental Insurance 614 790 1,121 1,469 Group Vision Insurance 124 156 211 235 Disability Insurance 340 536 884 1,750 Retirement 9,433 16,073 22,983 18,127 Life Insurance 89 133 233 187 Bonus 51 101 100 75 Allowance/Stipend 900 1,500 1,800 4,590 Dues, Subscript & Publicat 8,968 10,293 9,504 5,624 Meetings & Training 3,539 2,809 6,320 6,320 Printing Expense - 153 100 100 Advertising/Signage 475 - - - Marketing 62,650 26,754 15,000 15,000 Office Supplies 52 118 200 200 Operating Supplies - 18 - - Postage & Delivery - 3 - - ISF-Copier Charges 109 40 69 69 ISF-Vehicle Replacement Charge 81 16 - - ISF-Technology Replacement - - - 1,376 ISF-Telecom Charges 239 - - - Total Economic Development Fund 183,332$ 224,053$ 285,482$ 241,270$ FY20-21 Proposed Budget Summary of Expenditures Economic Development Fund 267 Tourism Fund Administration Department Economic Development Division Tourism Fund Service Delivery Plan Implement a comprehensive tourism program as outlined in the Town’s Economic Development Plan. Provide a mix of marketing tools, with an emphasis on digital methods, to promote Town programs, amenities, and special events. Maintain the tourism website and provide timely analytic updates. Establish and maintain Foun- tain Hills as a Destination Marketing Organization with the Arizona Office of Tour- ism. Research grant opportunities, specific to Proposition 302 funding dispersed through the Arizona Office of Tourism, and apply annually. Program Name FY17-18 Actual FY18-19 Actual FY19-20 Revised Budget FY20-21 Proposed Budget Tourism 206,513$ 235,302$ 259,123$ 208,266$ Total 206,513$ 235,302$ 259,123$ 208,266$ Expenditures by Program Category FY17-18 Actual FY18-19 Actual FY19-20 Revised Budget FY20-21 Proposed Budget Wages 49,343$ 51,718$ 54,241$ 44,344$ Employment Taxes 812 857 942 827 Benefits 12,511 12,962 13,433 12,913 Dues & Memberships 8,583 4,442 8,384 8,383 Meetings & Training 1,108 202 3,501 3,500 Utilities 506 532 481 552 Contractual Services 121,916 150,908 167,641 126,706 Supplies 8,327 12,226 7,882 7,880 Equipment/Improvement 919 80 1,000 1,000 Internal Service 2,488 1,375 1,618 2,161 Total 206,513$ 235,302$ 259,123$ 208,266$ Expenditures by Category Variance Explanations: Contractual Services: The decreased amount is the result of uncertainty of the es- timated grants for next year. 268 Tourism Fund Administration Department Economic Development Division Quality Productivity Performance Measures FY16-17 Actual FY17-18 Actual FY18-19 Estimate FY19-20 Target Average annual website views 30,000 91,000 95,000 100,000 Average monthly social media reach 20,000 21,000 40,000 50,000 Social Media Followers (Facebook) 4570 4,700 5,426 6,000 Support overall quality of visitor experience while in Fountain Hills via visitor surveys Good Good Good Good FY16-17 Actual FY17-18 Actual FY18-19 Target FY19-20 Target Number of special events supported 22 25 27 27 Reach/ Maintain status of Destination Mar- keting Organization as determined by the Arizona Office of Tourism standards Maintain Maintain Maintain Maintain FY16-17 Actual FY17-18 Estimate FY18-19 Target FY19-20 Target Total distribution of collateral (includes Visi- tor/ Dining Guides) 30,000 28,000 38,000 45,000 Percentage of in/out of county distribution 55/45 45/55 45/55 45/55 Program Name FY17-18 Actual FY18-19 Actual FY19-20 Revised Budget FY20-21 Proposed Budget Total Revenues 75,737$ 73,996$ 90,181$ 50,180$ Total Expenses 206,513 235,302 259,123 208,266 Total $ (130,776) $ (161,306) $ (168,942) $ (158,086) Operating Results Contractual Services 63% Wages 23% Benefits 6% Dues & Memberships 4% Supplies 4% Use of Funds -Tourism -By Category Where does the money go? Total Proposed Budget = $208,266 269 Tourism Fund Administration Department Economic Development Division Description FY17-18 Actual FY18-19 Actual FY19-20 Revised Budget FY20-21 Proposed Budget Tourism Fund Salaries-Full Time 49,343$ 51,718$ 54,241$ 44,344$ Medicare 712 745 801 655 Workers Compensation 78 91 119 118 Unemployment Insurance 22 21 22 54 Group Health Insurance 5,538 5,723 5,778 6,111 Group Dental Insurance 413 432 461 490 Group Vision Insurance 72 78 80 78 Disability Insurance 162 215 230 470 Retirement 5,434 5,689 5,968 4,878 Life Insurance 51 54 61 51 Bonus 46 51 45 25 Allowance/Stipend 795 720 810 810 Licenses/Filing Fees - 585 - - Dues, Subscript & Publicat 8,583 3,857 8,384 8,383 Meetings & Training 1,108 203 3,501 3,500 Telecommunications 506 532 481 552 Professional Fees 33,563 37,600 66,142 51,683 Rentals & Leases 3,250 - 3,550 3,550 Printing Expense 4,100 - - - Advertising/Signage 80,104 111,944 96,448 69,973 Constituent Communication 897 1,364 1,501 1,500 Bank/Merc Acct Fees 2 - - - Office Supplies 567 415 701 700 Food & Beverage Supplies - - 500 500 Program Materials 7,476 10,474 4,086 4,086 Uniforms 156 290 1,000 1,000 Postage & Delivery 128 1,047 1,595 1,594 Software - 3 - - Hardware/Peripherals 919 77 - - Equipment - - 1,000 1,000 ISF-Copier Charges 1,409 1,227 1,401 1,400 ISF-Mail Service Charges 774 - - - ISF-Vehicle Replacement Charge 66 147 165 146 ISF-Motor Pool Charges - - 52 156 ISF-Technology Replacement - - - 459 ISF-Telecom Charges 239 - - - Total Tourism Fund 206,513$ 235,302$ 259,123$ 208,266$ FY20-21 Proposed Budget Summary of Expenditures Tourism Fund 270 Tourism Fund Administration Department Economic Development Division GRANT TITLE: Proposition 302 Grant for Tourism—Arizona Office of Tourism GRANT NUMBER: G5201 GRANT AMOUNT AWARDED: $25,000 TOWN’S MATCH AMOUNT: $ 0 TOTAL ESTIMATED PROJECT COST: $25,000 GRANT DESCRIPTION/SCOPE: Marketing grant through the Arizona Office of Tourism. TIMEFRAME: FY20-21 GRANT JUSTIFICATION: Grant funding not requiring any Town matching funds. FUNDING PRIORITY: High - Leverage Local Funds 271 Tourism Fund Administration Department Economic Development Division GRANT TITLE: Proposition 202 Grant for Tourism—Salt River Pima Indian Community GRANT NUMBER: G5202 GRANT AMOUNT AWARDED: $20,000 TOWN’S MATCH AMOUNT: $ 0 TOTAL ESTIMATED PROJECT COST: $20,000 GRANT DESCRIPTION/SCOPE: Marketing grant through Salt River Pima Indian Community for Special Events Support. TIMEFRAME: FY20-21 GRANT JUSTIFICATION: Grant funding not requiring any Town matching funds. FUNDING PRIORITY: High - Leverage Local Funds 272 Tourism Fund Administration Department Economic Development Division PROJECT TITLE: Proposition 202 Grant for Tourism—Fort McDowell GRANT NUMBER: G5204 GRANT AMOUNT AWARDED: $5,000 TOWN’S MATCH AMOUNT: $ 0 TOTAL ESTIMATED PROJECT COST: $5,000 PROJECT DESCRIPTION/SCOPE: Fort McDowell grant for marketing the area and golfing activities. TIMEFRAME: FY20-21 PROJECT JUSTIFICATION: Grant funding not requiring any Town matching funds. FUNDING PRIORITY: High - Leverage Local Funds 273 Special Revenue Fund Administration Department Finance Division Special Revenue Fund Service Delivery Plan The Special Revenue Fund was established as a segregated fund for grant monies, both anticipated and unanticipated. Any monies received may have a matching ex- penditure associated with it. If grants require a Town match, those monies are transferred into this fund. Anticipated grants received on annual basis include Proposition 202 funds and LTAF II funds. Program Name FY17-18 Actual FY18-19 Actual FY19-20 Revised Budget FY20-21 Proposed Budget Administration 157,946$ 157,946$ 1,662,525$ 1,338,500$ Total 157,946$ 157,946$ 1,662,525$ 1,338,500$ Expenditures by Program Category FY17-18 Actual FY18-19 Actual FY19-20 Revised Budget FY20-21 Proposed Budget Contractual Services 56,000$ 55,000$ 127,000$ 275,500$ Equipment/Improvements - - - - Contingency - - 1,230,525 1,063,000 Capital Expenditures 101,946 36,211 305,000 - Total 157,946$ 91,211$ 1,662,525$ 1,338,500$ Expenditures by Category Contingency 79% Contractual Services 21% Use of Funds -Special Revenue -By Category Where does the money go? Total Proposed Budget = $1,338,500 274 Special Revenue Fund Administration Department Finance Division Program Name FY17-18 Actual FY18-19 Actual FY19-20 Revised Budget FY20-21 Proposed Budget Total Revenues 157,946$ 91,211$ 1,582,525$ 1,308,800$ Total Expenses 157,946 91,211 1,662,525 1,338,500 Total $ - $ - $ (80,000) $ (29,700) Operating Results Description FY17-18 Actual FY18-19 Actual FY19-20 Revised Budget FY20-21 Proposed Budget Special Revenue Fund Professional Fes -$ -$ -$ 148,500$ Advertising/Signage - - 2,000 2,000 Intergovt Agreements 56,000 55,000 125,000 125,000 Contingency - - 1,230,525 1,063,000 Park Improvements - - 240,000 - Other Infrastructure 101,946 36,211 65,000 - Total Special Revenue Fund 157,946$ 91,211$ 1,662,525$ 1,338,500$ FY20-21 Proposed Budget Summary of Expenditures Special Revenue Fund *Negative amounts represent matching funds transferred in from other funds. 275 Special Revenue Fund Administration Department Finance Division PROJECT TITLE: Active Transportation Master Plan Grant GRANT NUMBER: G3205 GRANTING AGENCY: Federal Transportation Alternatives grant, selected through the Maricopa Association of Governments GRANT AMOUNT AWARDED: $118,800 TOWN’S MATCH AMOUNT: $ 29,700 TOTAL ESTIMATED PROJECT COST: $148,500 PROJECT DESCRIPTION/SCOPE: Prepare a Town-wide, prioritized Master Plan for sidewalks, trails, and bikeways. This document will provide the basis for future Town/developer/grant design and construction projects. This Master Plan is primarily funded by a Federal Transpor- tation Alternatives grant, selected through the Maricopa Association of Govern- ments. TIMEFRAME: FY20-21 PROJECT JUSTIFICATION: The Town has never yet had a Council-approved, long-range Master Plan to locate and prioritize active transportation projects. FUNDING PRIORITY: High - Leverage Local Funds 276 Public Art Fund Community Services Department Recreation Division Service Delivery Plan The Public Art Fund was established to accumulate funds to manage, maintain, and protect the art collection of the Town. Contributions are received from proper- ty developers, the public, and transfers from the Town. These funds are used to procure additional art, maintain existing pieces, and provide insurance against damage. Program Name FY17-18 Actual FY18-19 Actual FY19-20 Revised Budget FY20-21 Proposed Budget Administration 29,234$ 22,191$ 139,340$ 144,649$ Total 29,234$ 22,191$ 139,340$ 144,649$ Expenditures by Program Category FY17-18 Actual FY18-19 Actual FY19-20 Revised Budget FY20-21 Proposed Budget Maintenance & Repair 14,216$ 11,319$ 26,294$ 31,000$ Contractual Services 11,378 11,472 13,046 13,649 Damages/Vandalism 3,640 - - - Contingency - - 100,000 100,000 Total 29,234$ 22,791$ 139,340$ 144,649$ Expenditures by Category Public Art Fund 277 Public Art Fund Community Services Department Recreation Division Contingency 70%Maintenance & Repair 21% Contractual Services 9% Use of Funds -Environmental -By Category Where does the money go? Total Proposed Budget = $144,649 Program Name FY17-18 Actual FY18-19 Actual FY19-20 Revised Budget FY20-21 Proposed Budget Total Revenues 73,309$ 9,653$ 100,240$ 100,240$ Total Expenses 29,234 22,791 139,340 144,649 Total $ 44,075 $ (13,138) $ (39,100) $ (44,409) Operating Results 278 Court Enhancement Fund Service Delivery Plan Pursuant to local ordinance and Arizona Revised Statutes, the Court collects mon- ies deposited into the local Court Enhancement Fund (CCEF) and Judicial Court En- hancement Fund (JCEF) to increase the effectiveness of Fountain Hills Municipal Court. Pursuant to Town Resolution 2000-03A, Court Enhancement Funds shall be used to offset the costs of computer software, personnel, equipment and supplies needed to increase the effectiveness of Court case management. Pursuant to A.R.S. §12-113(B), Judicial Court Enhancement Funds, “shall be used according to plans approved by the Supreme Court to train court personnel, improve, maintain and enhance the ability to collect and manage monies assessed or received by the courts, including restitution, child support, fines and civil penalties, to improve court automation, to improve case processing or the administration of justice and for probation services.” The monies collected into these funds are to be used to supplement the Court’s annual appropriations and shall not be used solely to fund Court operations. Both funds are maintained as separate accounts within the Town and any balance remaining in such accounts at the end of the fiscal year shall car- ry over into the subsequent fiscal year. Court Enhancement Fund Municipal Court Department Court Operations Division Variance Explanations: Capital Expenditures: FY19-20 included a budget supplement for security updates for the Court. Variance Explanations: Court Enhancement: FY19-20 included a budget supplement for security updates for the Court. Program Name FY17-18 Actual FY18-19 Actual FY19-20 Revised Budget FY20-21 Proposed Budget Court Enhancement 5,547$ 1,690$ 124,800$ 24,800$ Judicial Court Enhancement - - 30,000 - Total 5,547$ 1,690$ 154,800$ 24,800$ Expenditures by Program Category FY17-18 Actual FY18-19 Actual FY19-20 Revised Budget FY20-21 Proposed Budget Dues & Memberships -$ -$ 1,500$ 1,500$ Meetings & Training 2,478 - 2,500 2,500 Maintenance & Repair - - 500 500 Contractual Services - - 4,800 4,800 Equipment/Improvements 3,069 1,690 15,500 15,500 Capital Expenditures - - 130,000 - Total 5,547$ 1,690$ 154,800$ 24,800$ Expenditures by Category 279 Court Enhancement Fund Municipal Court Department Court Operations Division Equipment/Improvements 63% Contractual Services 19% Meetings & Training 10% Dues & Memberships 6%Maintenance & Repair 2% Use of Funds -Court Enhancement -By Category Where does the money go? Total Proposed Budget = $24,800 Description FY17-18 Actual FY18-19 Actual FY19-20 Revised Budget FY20-21 Proposed Budget Court Enhancement Fund Dues, Subscript & Publicat -$ -$ 1,500$ 1,500$ Meetings & Training 2,478 - 2,500 2,500 Sign Repair & Replacement - - 500 500 Rentals & Leases - - 2,800 2,800 Printing Expense - - 2,000 2,000 Small Tools - 218 - - Hardware/Peripherals - 1,472 5,500 5,500 Furniture/Appliances 3,069 - 10,000 10,000 Computer Hardware - - 130,000 - Total Court Enhancement Fund 5,547$ 1,690$ 154,800$ 24,800$ FY20-21 Proposed Budget Summary of Expenditures Court Enhancement Fund Program Name FY17-18 Actual FY18-19 Actual FY19-20 Revised Budget FY20-21 Proposed Budget Total Revenues 29,850$ 11,019$ 149,840$ 49,900$ Total Expenses 5,547 1,690 154,800 24,800 Total $ 24,303 $ 9,329 $ (4,960) $ 25,100 Operating Results 280 Environmental Fund Public Works Department Environmental Division Environmental Fund Service Delivery Plan The Environment Fund was established to help offset the costs of stormwater management and air quality permit requirements as well as other environmental programs. These programs include, but are not limited to, stormwater and air quality programs, public outreach, permit fees, wash maintenance, ADWR dam in- spection and maintenance, street sweeping, storm drain cleaning. The Environ- mental Division provides environmental regulatory compliance oversight to Foun- tain Hills operations and facilities and the management of the EPA’s Stormwater Pollution Prevention Plan (SWPPP), Phase II Permit. This management includes oversight of staff training, field inspections, implementing the best management practices outlined in the permit, and drafting and submitting the annual reports required by the Arizona Department of Environmental Quality. This permit is a State-mandated, unfunded requirement. The Environmental Division is also responsible for coordinating recycling programs, establishing energy efficiency activities and helping promote and implement sus- tainable activities within the Town. This Division maintains environmental permits and files for the Town of Fountain Hills and is funded by the previously collected environmental fee and transfers from the General Fund. Program Name FY17-18 Actual FY18-19 Actual FY19-20 Revised Budget FY20-21 Proposed Budget Administration 530,655$ 501,718$ 735,255$ 666,904$ Total 530,655$ 501,718$ 735,255$ 666,904$ Expenditures by Program Category FY17-18 Actual FY18-19 Actual FY19-20 Revised Budget FY20-21 Proposed Budget Wages 18,731$ 18,731$ 32,605$ 33,022$ Employment Taxes 644 644 1,363 1,752 Benefits 3,739 3,739 6,334 6,786 Dues & Memberships 8,000 8,000 11,215 11,215 Meetings and Training - - 300 300 Maintenance & Repair 295,610 295,610 495,400 475,400 Utilities 750 750 - - Contractual Services 202,812 202,812 185,945 135,945 Supplies 330 330 2,000 2,000 Internal Service 39 39 93 484 Total 530,655$ 530,655$ 735,255$ 666,904$ Expenditures by Category Variance Explanations: Contractual Services: Amounts were eliminated related to the billing of the envi- ronmental fee. 281 Environmental Fund Public Works Department Environmental Division Maintenance & Repair 73% Contractual Services 20% Wages 5% Dues & Memberships 2% Use of Funds -Environmental -By Category Where does the money go? Total Proposed Budget = $666,904 Program Name FY17-18 Actual FY18-19 Actual FY19-20 Revised Budget FY20-21 Proposed Budget Total Revenues 496,212$ 502,924$ 494,376$ 2,400$ Total Expenses 530,655 530,655 735,255 666,904 Total $ (34,443) $ (27,731) $ (240,879) $ (664,504) Operating Results 282 Environmental Fund Public Works Department Environmental Division Quality Performance Measures Activities/Results Productivity *Friends of the Library event FY17-18 Actual FY18-19 Actual FY19-20- Estimate FY20- 21 Target Percentage of residential sweeping com- pleted within specified cycle* 100% 100% 100% 100% Percentage of arterial sweeping com- pleted within specified cycle* 100% 100% 100% 100% Completion of Annual permit re- quirements 100% 100% 100% 100% FY17-18 Actual FY18-19 Actual FY19-20 Estimate FY20- 21 Target Total curb miles on sweeping schedule 316 360.4 360.4 360.4 Total lane miles swept annually 2,682 3,063.8 3063.8 3,063.8 Acres of Town-owned washes main- tained 65 65 49.5 65 Number of paper shedding events held* 2 2 1 2 Number of electronics recycling events held 1 1 0 1 Number of household hazardous waste events held 0 1 1 1 FY17-18 Actual FY18-19 Actual FY19-20 Estimate FY20-21 Target Expenditure of street sweeping $65,127 $71,860.22 $75,000 $75,000 Expenditure per curb mile of streets swept $24.28 $24,45 $24.48 $24.48 283 Environmental Fund Public Works Department Environmental Division Description FY17-18 Actual FY18-19 Actual FY19-20 Revised Budget FY20-21 Proposed Budget Environmental Fund Salaries-Full Time 18,731$ 19,430$ 32,605$ 33,022$ Medicare 262 268 473 479 Workers Compensation 375 438 880 1,230 Unemployment Insurance 6 6 10 43 Group Health Insurance 1,447 1,448 2,340 2,521 Group Dental Insurance 107 108 184 192 Group Health Vision 19 19 31 31 Disability Insurance 74 81 138 351 Retirement 2,061 2,137 3,586 3,633 Life Insurance 19 20 36 38 Bonus 13 - 19 20 Licenses/Filing Fees 5,000 6,160 7,715 7,715 Dues, Subscript & Publicat 3,000 3,500 3,500 3,500 Meetings & Training - - 300 300 Grounds Maint/Repair - - 5,000 5,000 Wash Maintenance 152,549 - 210,000 210,000 Dam Inspection and Maint 19,070 13,400 20,400 20,400 Drainage Maint/Repair 111,485 68,416 180,000 160,000 Storm Damage Cleanup 12,506 265,340 80,000 80,000 Refuse/Recycling 750 - - - Professional Fees 47,289 43,428 50,000 - Advertising/Signage 189 - - - Contractual Services 115,978 77,356 135,920 135,920 Bank/Merc Acct Fees 51 74 25 25 Community Events 39,305 - - - Program Materials 330 36 2,000 2,000 ISF-Copier Charges 35 13 30 30 ISF-Vehicle Replacement Charge - 40 48 42 ISF-Motor Pool Charges 4 - 15 45 ISF-Technology Replacement - - - 367 Total Environmental Fund 530,655$ 501,718$ 735,255$ 666,904$ FY20-21 Proposed Budget Summary of Expenditures Environmental Fund 284 Cottonwoods Maintenance District Fund Administration Department Finance Division The Cottonwoods Maintenance District was formed by the Town Council in June 1999 for the purpose of improving the common areas of the Cottonwoods subdivi- sion. The Town Council serves as the governing Board for the District. The Mainte- nance District provides for the maintenance of the common area, which is per- formed by the Town of Fountain Hills. The cost is repaid through an annual proper- ty tax assessment per property owner levied by the Town and collected by Mari- copa County. The estimated levy for FY20-21 is $114.52 which includes the annual contract cost for landscaping as well as establishing a reserve amount for future exterior wall maintenance. COTTONWOODS MAINTENANCE DISTRICT Description FY17-18 Actual FY18-19 Actual FY19-20 Revised Budget FY20-21 Proposed Budget Revenues Property Tax 5,471$ 6,749$ 6,643$ 6,643$ Interest Income 197 414 72 72 Total Revenues 5,668$ 7,163$ 6,715$ 6,715$ Expenditures Grounds Maint/Repair (4,500)$ (4,500)$ (4,851)$ (4,851)$ Advertising/Signage (195) - (250) (250) Postage/Mailing (1) (30) - (30) Total Expenditures (4,696)$ (4,530)$ (5,101)$ (5,131)$ Cottonwoods Maintenance District Fund 285 Cottonwoods Maintenance District Fund Administration Department Finance Division FY19-20 FY20-21 1.-$ -$ 2. -$ 3.Property tax levy amounts A. Primary property taxes -$ -$ B. Secondary property taxes 6,643 6,643 C.Total property tax levy amounts 6,643$ 6,643$ 4.Property taxes collected* A. Primary property taxes (1) Current year's levy -$ (2) Prior years’ levies - (3) Total primary property taxes - B. Secondary property taxes (1) Current year's levy 6,643 (2) Prior years’ levies - (3) Total secondary property taxes 6,643 C. Total property taxes collected 6,643$ 5.Property tax rates A. Town tax rate (1) Primary property tax rate -$ -$ (2) Secondary property tax rate 114.5172 114.5172 (3) Total town tax rate 114.5172$ 114.5172$ *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. Cottonwoods Maintenance District Summary of Tax Levy and Tax Rate Information Fiscal Year 20-21 Maximum allowable primary property tax levy. A.R.S. §42-17051(A) Amount received from primary property taxation in the current year in excess of the sum of that year's maximum allowable primary property tax levy. 286 Debt Service Funds General Obligation Eagle Mountain Community Facilities District Municipal Property Corporation Debt Service Funds 287 Debt Service Funds The Debt Service Funds provide for the payment of interest, principal, and related costs on General Obligation (GO) bonds (both the Town of Fountain Hills and the Eagle Mountain Community Facilities District) and Municipal Property Corporation (MPC) Revenue bonds. Debt Service Funds Outstanding Debt The Schedule below includes an itemization of the outstanding debt as of June 30, 2021, after the scheduled principal and interest payments due July 1, 2021. Outstanding Debt Schedule Bond Purpose Date of Interest Date of Original Principal Principal Outstanding Type of Issue Bond Issue Rate Maturity Amount Amount Retired Principal GO Road Construction 12/18/2014 2.00- 3.00 7/1/2020 7,565,000 7,565,000 - Total GO 7,565,000 7,565,000 - Rev Refunding 6/4/2015 1.62 7/1/2020 1,880,000 1,880,000 - Total Rev 1,880,000 1,880,000 - GO Eagle Mtn 6/4/2015 1.76 7/1/2021 2,300,000 1,900,000 400,000 Total GO - Eagle Mtn 2,300,000 1,900,000 400,000 Grand Total 11,745,000$ 11,345,000$ 400,000$ 288 General Obligation Bond Fund Voter-approved General Obligation bonds issued by the Town are repaid by collect- ing a secondary property tax. This secondary property tax levy is based on the to- tal amount required for the annual principal and interest payments (with adjust- ments for carry-forward and/or interest earnings, delinquencies, etc.) divided by the total assessed valuation for the Town of Fountain Hills. Currently, the Town does not have any outstanding General Obligation bonds, and a town-wide secondary property tax is not required for FY21. General Obligation Bond Fund Administration Department Finance Division GENERAL OBLIGATION DEBT SERVICE Description FY17-18 Actual FY18-19 Actual FY19-20 Revised Budget FY20-21 Proposed Budget Revenues Secondary Property Tax 1,909,924$ 2,011,867$ 1,674,486$ -$ Interest Income 8,495 18,703 1,200 1,200 Total Revenues 1,918,419$ 2,030,570$ 1,675,686$ 1,200$ Expenditures Principal Payments (1,980,000)$ (1,880,000)$ (1,615,000)$ -$ Interest Payments (140,950) (92,250) (48,450) - Administrative/Trustee Fees (600) (600) (350) (350) Total Expenditures (2,121,550)$ (1,972,850)$ (1,663,800)$ (350)$ 289 General Obligation Bond Fund Administration Department Finance Division Legal Debt Margin Information The Total Net Debt Applicable to Limit comes from the Report of Bonded Indebted- ness and is related to those issues noted by the appropriate % debt limit. 20% limit - GO bonds for projects involving water, sewer, artificial lighting, parks, open space, public safety, law enforcement, fire and emergency facilities, street and transportation facilities and recreational facility improvements. 6% limit - GO bonds for any other general purpose improvements. The basis for determining the legal debt margin is the net full cash assessed value of all property located within the Town. FY17-18 FY18-19 FY19-20 FY20-21 6% Debt Limit Debt limit 31,468,771$ 32,385,629$ 33,951,090$ 35,683,229$ Total applicable to limit - - - - Legal debt margin 26,678,977$ 27,998,343$ 33,951,090$ 35,683,229$ Total net debt applicable to the limit as a percentage of debt limit - - - - 20% Debt Limit Debt limit 104,895,902$ 107,952,098$ 113,170,302$ 118,944,098$ Total applicable to limit 5,475,000 3,495,000 1,615,000 - Legal debt margin 83,454,923$ 89,832,809$ 111,555,302$ 118,944,098$ Total net debt applicable to the limit as a percentage of debt limit 5%3%1%- Net Assessed Full Cash Value 524,479,512$ 539,760,488$ 565,851,508$ 594,720,491$ Town of Fountain Hills, Arizona Legal Debt Margin Information 290 Eagle Mountain CFD Bond Fund Administration Department Finance Division Eagle Mountain Community Facilities District (CFD) Bond Fund There have been four bond issues (issued as General Obligation bonds) that were approved for specific purposes:  The first two CFD bond issues in 1996 (refunded in 2005) were to ac- quire certain public infrastructure benefiting the District, specifically a sewer project, a storm water conveyance system project, the Eagle Mountain Parkway Phase I project, and the Summer Hill Boulevard pro- ject.  The third CFD bond issue, completed in 2005, refunded and defeased the two 1996 issues.  The fourth issue refinanced the outstanding bonds in 2015 to reduce in- terest costs. The Eagle Mountain Community Facilities District debt payments are levied on the property owners within the District. These obligations are paid by the property owners using secondary property taxes, less any credits, carry-forward and/or in- terest earnings and allowing for delinquencies. The anticipated rate based on the estimated assessed valuation of $32,058,853 (an increase of 5.1% from the prior year) is $1.2477 per $100 of assessed valuation compared to $1.3541 in the prior year. EAGLE MOUNTAIN COMMUNITY FACILITIES DISTRICT DEBT SERVICE Description FY17-18 Actual FY18-19 Actual FY19-20 Revised Budget FY20-21 Proposed Budget Revenues Property Tax 378,872$ 370,686$ 413,043$ 400,001$ Interest Income 938 2,116 240 240 Total Revenues 379,810$ 372,802$ 413,283$ 400,241$ Expenditures Advertising/Signage (170)$ (195)$ (200)$ (200)$ Principal Payments (375,000) (380,000) (395,000) (400,000) Interest Payments (34,056) (27,529) (13,992) (7,040) Total Expenditures (409,226)$ (407,724)$ (409,192)$ (407,240)$ 291 Municipal Property Corporation (MPC) Bond Fund One of the methods of funding major municipal projects is the use of a Municipal Property Corporation (MPC). The Town created the Fountain Hills Municipal Proper- ty Corporation and bonds were issued in 2000 and 2001 to build the Community Center and purchase a portion of the McDowell Mountain Preserve, respectively. In 2004, MPC bonds were used to construct Town Hall. While the bonds are outstand- ing, the MPC owns the land and buildings purchased with bond proceeds. Now that all the MPC bonds have been redeemed, ownership of the buildings and land have been transferred to the Town. Municipal Property Corp Bond Fund Administration Department Finance Division MUNICIPAL PROPERTY CORPORATION DEBT SERVICE Description FY17-18 Actual FY18-19 Actual FY19-20 Revised Budget FY20-21 Proposed Budget Revenues Interest Income 2,315$ 3,811$ -$ -$ Transfer In 249,055 249,055 - - Total Revenues 251,370$ 252,866$ -$ -$ Expenditures License/Filing Fees (10)$ (10)$ (10)$ (10)$ Principal Payments (370,000) (360,000) (300,000) - Interest Payments (22,680) (16,686) (4,860) - Administrative/Trustee Fees (1,000) (1,000) (1,000) (1,000) Total Expenditures (393,690)$ (377,696)$ (305,870)$ (1,010)$ 292 293 Capital Projects Fund Administration Department Public Works Department Community Services Department Capital Projects Fund 294 Capital Improvement Program (CIP) Policy and Procedures Objective To provide a policy and procedures for the development, approval, and implemen- tation of the Town of Fountain Hills’ five (5) year and twenty (20) year Capital Im- provement Programs (CIP). Scope This policy applies to all projects undertaken by the Town of Fountain Hills that meet the definition of a capital improvement project detailed in the definitions sec- tion. Policy The purpose of the Capital Improvement Program is to provide an authoritative decision-making process for the evaluation, selection, and multi-year scheduling of public physical improvements based on a projection of available fiscal resources and the community's priorities. The objectives of the Program are to: a) ensure the timely repair, replacement and expansion of the Town’s infra- structure; b) serve as a link in the Town’s planning between the Town’s Strategic Plan and all subsidiary plans with a 5-20 year horizon and the annual budget process with a one-year horizon; c) maintain control over the Town’s long-term cash flow in relation to the Town's financial capacity; and d) ensure efficient, effective and coordinated capital improvement. Definitions The following words, when used in connection with this policy, shall have the fol- lowing meanings: CAPITAL IMPROVEMENT PROGRAM: A multi-year planning document that is the product of a systematic evaluation of capital projects. This Program serves as a guide for the efficient and effective construction and maintenance of public facili- ties, outlining a detailed timeline and financing schedule of capital projects for a five (5) year period of time and a summary schedule of capital projects for a twen- ty (20) year period. CAPITAL IMPROVEMENT PROJECT: A capital project is a heavy equipment acquisi- tion, a computer/software systems acquisition, or a public improvement that in- volves construction of new infrastructure, additions to existing structures, renova- tion of existing structures, and major repairs to infrastructure of a comprehensive and non-routine nature. A capital project is defined in financial terms as a project with a projected final cost of at least $50,000 and is a non-recurring expense. In addition, the capital asset(s) resulting from the project should have a useful life of at least 10 years. Studies, design and engineering fees greater than $10,000 which are preparatory to a capital project with a projected final cost of at least $50,000 should be included as part of the capital project cost. Capital Projects Fund Capital Improvement Program Policy & Procedures 295 Capital Projects Fund Capital Improvement Program Policy & Procedures INFRASTRUCTURE IMPROVEMENT PLAN (IIP): A written plan that individually or collectively identifies each public service that is proposed to be the subject of a de- velopment fee. The Town of Fountain Hills’ IIP is incorporated as part of the Town’s CIP and follows the same timeline and procedure. Process A. Schedule: Annually, the CIP Coordinator and Finance Director will submit a proposed CIP development calendar to the Town Manager for review. Based on this calendar, the CIP Coordinator will initiate a request to the management team for submission of updates, revisions and new projects for the five (5) year Capital Improvement Program. A further, but less detailed, review of the twenty (20) year Program will also be conducted. B. Format: The management team will utilize the previous year's approved CIP as a base for developing recommended additions, deletions, or changes for incorporation in the updated CIP for the ensuing year. The management team will utilize the standard format provided to submit new projects or propose revisions to existing projects. All new projects will also include a comprehensive estimate of the impact of the new project on the Town's an- nual operating budget; e.g., salaries and benefits, supplies, utilities, fuel, maintenance requirements, etc. C. Finance Review: The Finance Director will assist the CIP Coordinator as necessary in all facets of Capital Improvement Program development and review including production of revenue estimates and estimated growth in assessed valuation as well as overall financial analysis of the proposed pro- gram. Additional assistance may be requested to help produce draft docu- ments, etc. D. Town Manager Review: The CIP Coordinator will provide a copy of the proposed CIP document to the Finance Director and Town Manager for re- view and comment prior to distribution of the CIP document to the Town Council as part of the budget package. E. Public Hearing: The proposed CIP will be considered at a public hearing convened by the Town Council to accept comments and input from the pub- lic on the content of the Program. Notice of said public hearing date, place, and time will be made at least 60 days in advance of the scheduled hearing. Copies of the proposed CIP will be made available to the public at least 30 days prior to the scheduled hearing date and at the hearing itself. F. Town Council Approval: The final draft of the proposed CIP will be submit- ted as an agenda item for formal approval by the Town Council at the first Council Meeting in June. G. Distribution: A copy of the approved CIP document will be published on the Town’s website. H. Implementation: Upon adoption of the CIP, projects included within the applicable budget year may be implemented by the appropriate manage- ment team member in compliance with the Town’s procurement policy, spe- cial benefit district, or applicable procedure. 296 I. Amendments: The adopted CIP may be amended upon approval of the Town Council. Examples of amendments include cost increases for approved projects, the acceleration of projects to the applicable budget year from a future year, and the addition of projects not previously included in the CIP. An amendment to the CIP will be submitted to the Town Manager for ap- proval. Upon approval, the amendment should be prepared as an agenda item for formal approval by the Town Council at a regular or special session. Upon approval, a copy of the amended CIP document will be published on the Town’s website. Procedure A. Form: The form listed as Attachment A shall be utilized to request inclu- sion of a project in the Capital Improvement Program. B. Funding Prioritization: As part of the project submittal process, manage- ment team members shall identify project priorities to help determine which projects are recommended for inclusion in the five-year CIP. The initial measure of the project’s priority is first established using the fol- lowing factors: HIGH  Project protects the health and safety of the Town, its residents, visi- tors and employees  Project is mandated by Federal, State or local, regulations  Project is a high priority of the Town Council, based on the most cur- rent Strategic Plan or other subsidiary plans. Project prevents irrepa- rable damage to existing facilities  Project leverages local funding with other non-local funding sources  Project finishes a partially completed project MEDIUM  Project maintains existing service levels  Project provides for the maintenance of existing systems and equip- ment  Project results in increased efficiency  Project reduces operational costs  Project significantly reduces losses in revenue or provides for signifi- cant increased revenues LOW  Project provides an expanded level of service or new public facility not included in the Town Council’s priorities  Project is deferrable  Project uses debt financing Capital Projects Fund Capital Improvement Program Policy & Procedures 297 C. Funding Sources: The primary funding sources for the CIP are the Gen- eral Fund, grants, development fees, excise taxes, HURF, bonded indebted- ness, capital leases and Capital Projects funds. All potential projects must identify the proposed sources of funding before submission of the CIP re- quest. Projects that are funded by development fees must also identify the relationship between the IIP project and the development fee from which it is funded in the justification section of the CIP Form. D. Project Schedule: Each Project Manager shall provide a preliminary schedule which shall detail the various phases involved in the project and their starting and ending dates. It is the responsibility of the Project Manag- er to maintain this schedule or to provide schedule updates to the CIP Coor- dinator on at least a quarterly basis. Responsibility for Enforcement The Town Manager, Finance Director and CIP Coordinator will be responsible for ensuring that this policy is followed and/or updated as necessary. Capital Projects Fund Capital Improvement Program Policy & Procedures 298 Capital Projects Fund Capital Improvement Program Policy & Procedures Attachment A 299 Capital Projects Fund Capital Projects Summary PROPOSED CAPITAL PROJECTS FY20-21 THROUGH FY24-25 PROJECTS BY YEAR Project No. Project Title Prior Years' Costs FY20-21 FY21-22 FY22-23 FY23-24 FY24-25 Five Year Total (excludes Prior Years' Costs) Stormwater Management/Drainage Projects D6047 Drainage-Miscellaneous 108,830$ 50,000$ 50,000$ 50,000$ 50,000$ 50,000$ 250,000$ D6057 Golden Eagle Impoundment Area Improvements 122,770 500,000 377,230 - - - 877,230 D6058 Panorama Drive Storm Drain Improvements 98,305 1,901,695 - - - - 1,901,695 D6059 Pollina Brantley Detention Basin - 100,000 - - - - 100,000 TOTAL 329,905$ 2,551,695$ 427,230$ 50,000$ 50,000$ 50,000$ 3,128,925$ Facilities Projects F4035 HVAC Controllers Replacement - Community Center -$ 70,000$ -$ -$ -$ -$ 70,000$ F4036 Fire Panel Replacement-CC, Library, Museum - 80,000 - - - - 80,000 TOTAL -$ 150,000$ -$ -$ -$ -$ 150,000$ Parks & Recreation Projects P3032 Sport Field Lighting -$ -$ 1,733,000$ -$ -$ -$ 1,733,000$ P3033 Video Surveillance Cameras 94,316 50,000 50,000 - - - 100,000 P3035 Four Peaks Park Upgrades 412,564 330,000 200,000 100,000 - - 630,000 P3036 Desert Vista Skate Park Lights - - 75,000 - - - 75,000 P3038 Fountain Park Lake Liner - 140,000 5,000,000 - - - 5,140,000 P3039 Fountain Park Pump Replacements - - 1,500,000 - - - 1,500,000 P3040 Splash Pad Renovation - - 550,000 - - - 550,000 P3041 Sunridge Park - - - 200,000 3,300,000 - 3,500,000 P3042 Fountain Lighting Replacement - 150,000 - - - - 150,000 P3044 Sierra Madre Park - - - 100,000 2,500,000 2,500,000 5,100,000 P3045 Four Peaks Park Playground Parking Lot Imp - 65,000 - - - - 65,000 TOTAL 506,880$ 735,000$ 9,108,000$ 400,000$ 5,800,000$ 2,500,000$ 18,543,000$ Street/Sidewalk Projects S6003 Unpaved Alley Paving Projects 408,637$ 308,000$ -$ -$ -$ -$ 308,000$ S6015 Fountain Hills Blvd Widening - Shea Boulevard to Segundo - - - - - - - S6051 AOTF/La Montana Intersection Improvements - 300,000 - - - - 300,000 S6053 Fountain Hills Blvd. Shoulder Paving 693,231 700,000 - - - - 700,000 S6058 Shea Blvd. Widening - Palisades Blvd. to Technology Dr.105,000 25,000 - - - - 25,000 S6061 Sidewalk Infill Program 247,138 200,000 200,000 200,000 150,000 - 750,000 S6062 AOTF/Verde River Intersection Improvements 7,630 75,000 - - - - 75,000 S6063 Palisades Median Landscape Improvements - - - - - - - S6064 Desert Vista Crosswalk - 100,000 180,000 - - - 280,000 TOTAL 1,461,636$ 1,708,000$ 380,000$ 200,000$ 150,000$ -$ 2,438,000$ Traffic Signal Projects T5005 Traffic Signal-Palisades & Eagle Ridge/Palomino -$ 50,000$ 500,000$ -$ -$ -$ 550,000$ TOTAL -$ 50,000$ 500,000$ -$ -$ -$ 550,000$ Vehicle Replacement Program Vehicle Replacement Per Schedule 51,989$ 54,385$ 530,198$ 256,722$ -$ 893,294$ Contingency 259,735$ 520,762$ 32,500$ 300,000$ 127,500$ 1,240,497$ TOTAL PROPOSED CAPITAL PROJECTS 2,298,421$ 5,454,430$ 10,935,992$ 682,500$ 6,300,000$ 2,677,500$ 26,050,422$ 300 Capital Projects Fund Capital Projects Summary CAPITAL PROJECTS FIVE-YEAR PROJECTION REVENUES & PROJECT COSTS REVENUES BY SOURCE FIVE-YEAR AVAILABLE FUNDS FY20-21 Requested FY21-22 Requested FY22-23 Requested FY23-24 Requested FY24-25 Requested TOTAL FIVE- YEAR PROJECTION SURPLUS/ (DEFICIT) Highway User Fund -$ -$ -$ -$ -$ -$ -$ -$ Downtown Strategy Fund 2,403,614 875,000 - - - - 875,000 1,528,614 Grants - 17,500 40,000 - - - 57,500 (57,500) Capital Projects Fund 1,211,584 4,561,930 1,612,992 382,500 500,000 177,500 7,234,922 (6,023,338) Development Fees Fire & Emergency Medical 707,100 - - - - - - 707,100 Streets - Parks & Recreation 1,724,836 - - 300,000 500,000 - 800,000 924,836 Bonds - - 7,050,000 - - - 7,050,000 (7,050,000) Environmental Fund - - - - - - - - Total Revenues By Source 6,047,134$ 5,454,430$ 8,702,992$ 682,500$ 1,000,000$ 177,500$ 16,017,422$ (9,970,288)$ Unfunded - - 2,233,000 - 5,300,000 2,500,000 10,033,000 (10,033,000) Total Revenues Required 6,047,134$ 5,454,430$ 10,935,992$ 682,500$ 6,300,000$ 2,677,500$ 26,050,422$ (20,003,288)$ EXPENDITURES BY PROJECT TYPE & COSTS FY20-21 Requested FY21-22 Requested FY22-23 Requested FY23-24 Requested FY24-25 Requested TOTAL FIVE- YEAR PROJECTION Stormwater Management/Drainage Projects 2,551,695$ 427,230$ 50,000$ 50,000$ 50,000$ 3,128,925$ Facilities Projects 150,000 - - - - 150,000 Parks & Recreation Projects 735,000 9,108,000 400,000 5,800,000 2,500,000 18,543,000 Street/Sidewalk Projects 1,708,000 380,000 200,000 150,000 - 2,438,000 Traffic Signal Projects 50,000 500,000 - - - 550,000 Contingency 259,735 520,762 32,500 300,000 127,500 1,240,497 Total Project Costs 5,454,430$ 10,935,992$ 682,500$ 6,300,000$ 2,677,500$ 26,050,422$ 301 CAPITAL PROJECTS FIVE-YEAR PROJECTION Capital Projects Fund Capital Projects Summary Unfunded 40% Bonds 28% Capital Projects Fund 29% Development Fees 3% Projects by Funding Source Revenues -FY21-25 TOTAL = $26.1M Stormwater Management/Drainage Projects 12% Parks & Recreation Projects 72%Street/Sidewalk Projects 9% Traffic Signal Projects 2% Contingency 5% Projects by Project Type Expenditures -FY21 -25 Total = $26.1M 302 The highlighted rows represent project funding through the Town’s Capital Projects Fund. Capital Projects Fund Capital Projects Summary PROPOSED CAPITAL PROJECTS FY20-21 THROUGH FY24-25 BY YEAR AND FUNDING SOURCE Project Title/Funding Source Prior Years' Costs FY20-21 FY21-22 FY22-23 FY23-24 FY24-25 D6047 Capital Projects Fund $ 108,830 $ 50,000 $ 50,000 $ 50,000 $ 50,000 $ 50,000 D6057 Capital Projects Fund $ 122,770 $ 500,000 $ 377,230 $ - $ - $ - D6058 Capital Projects Fund $ 98,305 $ 1,401,695 $ - $ - $ - $ - Downtown Strategy - 500,000 - - - - D6059 Capital Projects Fund $ - $ 100,000 $ - $ - $ - $ - F4035 Capital Projects Fund $ - $ 70,000 $ - $ - $ - $ - F4036 Capital Projects Fund $ - $ 80,000 $ - $ - $ - $ - P3032 Unfunded - - 1,733,000 - - - P3033 Capital Projects Fund $ 94,316 50,000$ 50,000$ -$ -$ -$ P3035 Capital Projects Fund $ 412,564 330,000$ 200,000$ 100,000$ -$ -$ P3036 Capital Projects Fund $ - -$ 35,000$ -$ -$ -$ Grants - - 40,000 - - - P3038 Capital Projects Fund $ - 140,000$ -$ -$ -$ -$ Bonds - - 5,000,000 - - - P3039 Bonds - - 1,500,000 - - - P3040 Bonds - - 550,000 - - - P3041 Development Fees - - - 200,000 500,000 - Unfunded - - - - 2,800,000 - P3042 Capital Projects Fund $ - 150,000$ -$ -$ -$ -$ P3044 Development Fees - - - 100,000 - - Unfunded - - - - 2,500,000 2,500,000 P3045 Capital Projects Fund $ - 65,000$ -$ -$ -$ -$ S6003 Capital Projects Fund $ 408,637 308,000$ -$ -$ -$ -$ S6051 Downtown Strategy - 300,000 - - - - S6053 Capital Projects Fund 693,231$ 700,000$ -$ -$ -$ -$ S6058 Capital Projects Fund $ 105,000 7,500$ -$ -$ -$ -$ Grants - 17,500 - - - - S6061 HURF 150,103 - - - - - Capital Projects Fund 97,036$ 200,000$ 200,000$ 200,000$ 150,000$ -$ S6062 Downtown Strategy 7,630 75,000 - - - - S6063 Unfunded - - - - - - S6064 Capital Projects Fund -$ 100,000$ 180,000$ -$ -$ -$ T5005 Capital Projects Fund -$ 50,000$ -$ -$ -$ -$ Unfunded - - 500,000 - - - Contingency Capital Projects Fund 259,735$ 520,762$ 32,500$ 300,000$ 127,500$ Sidewalk Infill Program AOTF/Verde River Intersection Improvements Palisades Median Landscape Improvements Desert Vista Crosswalk Traffic Signal-Palisades & Eagle Ridge/Palomino Four Peaks Park Playground Parking Lot Imp Unpaved Alley Paving Projects AOTF/La Montana Intersection Improvements Fountain Hills Shoulder Paving Shea Blvd. Widening - Palisades Blvd. to Technology Dr. Fountain Park Pump Replacements Splash Pad Renovation Sunridge Park Fountain Lighting Replacement Sierra Madre Park Project No. Drainage-Miscellaneous Golden Eagle Impoundment Area Improvements Panorama Drive Storm Drain Improvements Pollina Brantley Detention Basin HVAC Controllers Replacement - Community Center Fire Panel Replacement-CC, Library, Museum Sport Field Lighting Video Surveillance Cameras Four Peaks Park Upgrades Desert Vista Skate Park Lights Fountain Park Lake Liner 303 Capital Projects Fund Capital Projects Summary PROPOED CAPITAL PROJECTS FY20-21 THROUGH FY24-25 BY YEAR AND FUNDING SOURCE TOTALS Source Prior Years' Costs FY20-21 FY21-22 FY22-23 FY23-24 FY24-25 Total FY20-21 to FY24-25 Project Total Capital Projects Fund 2,140,689$ 4,561,930$ 1,612,992$ 382,500$ 500,000$ 177,500$ 7,234,922$ 9,375,611$ Grants - 17,500 40,000 - - - 57,500 57,500 Downtown Strategy 7,630 875,000 - - - - 875,000 882,630 Development Fees - - - 300,000 500,000 - 800,000 800,000 Bonds - - 7,050,000 - - - 7,050,000 7,050,000 HURF 150,103 - - - - - - 150,103 Other - - - - - - - - Funding Source Totals 2,298,422 5,454,430 8,702,992 682,500 1,000,000 177,500 16,017,422 18,315,844 Unfunded - - 2,233,000 - 5,300,000 2,500,000 10,033,000 10,033,000 REVENUE SUMMARY TOTALS - BY FUNDING SOURCE Parks & Recreation Projects 79% Stormwater Management/Drainage Projects… Contingency 5%Traffic Signal Projects 3% Projects by Project Type Revenues -FY21-25 TOTAL = $26.1M 304 Capital Projects Fund Capital Projects Summary PROPOSED CAPITAL PROJECTS FY20-21 THROUGH FY24-25 EXPENDITURES BY YEAR BY PROJECT Project No. Project Title Prior Years' Costs FY20-21 FY21-22 FY22-23 FY23-24 FY24-25 Stormwater Management/Drainage Projects D6047 Drainage-Miscellaneous 108,830$ 50,000$ 50,000$ 50,000$ 50,000$ 50,000$ D6057 Golden Eagle Impoundment Area Improvements 122,770 500,000 377,230 - - - D6058 Panorama Drive Storm Drain Improvements 98,305 1,901,695 - - - - D6059 Pollina Brantley Detention Basin - 100,000 - - - - TOTAL 329,905$ 2,551,695$ 427,230$ 50,000$ 50,000$ 50,000$ Facilities Projects F4035 HVAC Controllers Replacement - Community Center -$ 70,000$ -$ -$ -$ -$ F4036 Fire Panel Replacement-CC, Library, Museum - 80,000 - - - - TOTAL -$ 150,000$ -$ -$ -$ -$ Parks & Recreation Projects P3032 Sport Field Lighting -$ -$ 1,733,000$ -$ -$ -$ P3033 Video Surveillance Cameras 94,316 50,000 50,000 - - - P3035 Four Peaks Park Upgrades 412,564 330,000 200,000 100,000 - - P3036 Desert Vista Skate Park Lights - - 75,000 - - - P3038 Fountain Park Lake Liner - 140,000 5,000,000 - - - P3039 Fountain Park Pump Replacements - - 1,500,000 - - - P3040 Splash Pad Renovation - - 550,000 - - - P3041 Sunridge Park - - - 200,000 3,300,000 - P3042 Fountain Lighting Replacement - 150,000 - - - - P3044 Sierra Madre Park - - - 100,000 2,500,000 2,500,000 P3045 Four Peaks Park Playground Parking Lot Imp - 65,000 - - - - TOTAL 506,880$ 735,000$ 9,108,000$ 400,000$ 5,800,000$ 2,500,000$ Street/Sidewalk Projects S6003 Unpaved Alley Paving Projects 408,637$ 308,000$ -$ -$ -$ -$ S6015 Fountain Hills Blvd Widening - Shea Boulevard to Segundo - - - - - - S6051 AOTF/La Montana Intersection Improvements - 300,000 - - - - S6053 Fountain Hills Blvd. Shoulder Paving 693,231 700,000 - - - - S6058 Shea Blvd. Widening - Palisades Blvd. to Technology Dr.105,000 25,000 - - - - S6061 Sidewalk Infill Program 247,138 200,000 200,000 200,000 150,000 - S6062 AOTF/Verde River Intersection Improvements 7,630 75,000 - - - - S6063 Palisades Median Landscape Improvements - - - - - - S6064 Desert Vista Crosswalk - 100,000 180,000 - - - TOTAL 1,461,636$ 1,708,000$ 380,000$ 200,000$ 150,000$ -$ Traffic Signal Projects T5005 Traffic Signal-Palisades & Eagle Ridge/Palomino -$ 50,000$ 500,000$ -$ -$ -$ TOTAL -$ 50,000$ 500,000$ -$ -$ -$ Vehicle Replacement Program Vehicle Replacement Per Schedule 51,989$ 54,385$ 530,198$ 256,722$ -$ Contingency 259,735$ 520,762$ 32,500$ 300,000$ 127,500$ TOTAL PROPOSED CAPITAL PROJECTS 2,298,421$ 5,454,430$ 10,935,992$ 682,500$ 6,300,000$ 2,677,500$ 305 PROPOSED CAPITAL PROJECTS FY20-21 THROUGH FY24-25 BY YEAR AND PROJECT TYPE TOTALS EXPENDITURES BY PROJECT TYPE & COSTS FY20-21 Requested FY21-22 Requested FY22-23 Requested FY23-24 Requested FY24-25 Requested TOTAL FIVE- YEAR PROJECTION Stormwater Management/Drainage Projects 2,551,695$ 427,230$ 50,000$ 50,000$ 50,000$ 3,128,925$ Facilities Projects 150,000 - - - - 150,000 Parks & Recreation Projects 735,000 9,108,000 400,000 5,800,000 2,500,000 18,543,000 Street/Sidewalk Projects 1,708,000 380,000 200,000 150,000 - 2,438,000 Traffic Signal Projects 50,000 500,000 - - - 550,000 Contingency 259,735 520,762 32,500 300,000 127,500 1,240,497 Total Project Costs 5,454,430$ 10,935,992$ 682,500$ 6,300,000$ 2,677,500$ 26,050,422$ Stormwater Management/Drainage Projects 12% Parks & Recreation Projects 72%Street/Sidewalk Projects 9% Traffic Signal Projects 2% Contingency 5% Projects by Project Type Expenditures -FY21 -25 Total = $26.1M Capital Projects Fund Capital Projects Summary 306 Capital Projects Fund Multiple Departments Multiple Divisions Description FY17-18 Actual FY18-19 Actual FY19-20 Revised Budget FY20-21 Proposed Budget Capital Projects Fund Management Fees 2,791$ 2,720$ 2,800$ 2,800$ Building Improvement Expenses - - 150,000 - Street Improvement Expenses 49,099 31,703 - - Park Improvement Expenses - 388,492 - - Other Infrastructure Expenses 9,090 - - - Stormwater/Drainage Expenses - 2,526 50,000 50,000 Furniture/Equipment 16,392 - - - Building Improvements 1,837,138 2,558,246 150,000 150,000 Street Improvements 175,431 537,099 1,333,378 1,608,000 Park Improvements 1,135,740 1,120,213 485,000 835,000 Other Infrastructure - - - 50,000 Stormwater/Drainage Improvements - - 675,000 2,501,695 Contingency - - 113,873 259,735 Total Capital Projects Fund 3,225,681$ 4,640,999$ 2,960,051$ 5,457,230$ FY20-21 Proposed Budget Summary of Expenditures Capital Projects Fund Program Name FY17-18 Actual FY18-19 Actual FY19-20 Revised Budget FY20-21 Proposed Budget Total Revenues 829,774$ 1,178,619$ 737,517$ 940,852$ Total Expenses 3,225,681 4,640,999 2,960,051 5,457,230 Total $(2,395,907) $(3,462,380) $(2,222,534) $(4,516,378) Operating Results 307 Capital Projects Information Sheets Capital Projects Fund Project Information Sheets 308 Capital Projects Fund Project Information Sheets D6047 PROJECT TITLE: Miscellaneous Drainage Improvements PROJECT NUMBER: D6047 PROJECT DESCRIPTION/SCOPE: This project will provide for the construction of new drainage facilities, major repairs, or the exten- sion of existing facilities at locations of future road widening projects so that excess excavated mate- rials may be put in place when available. This project will also address erosion issues as well as im- prove drainage as needed. TOWN GOALS TIMEFRAME: FY15-25 YEAR PROJECT BEGAN: FY14-15 TOTAL ESTIMATED PROJECT COST: $358,830 PROJECT JUSTIFICATION: The Town has worked successfully with municipal, private and utility construction contractors in the past to place excess excavation materials at locations where future Town road widening projects will require fill material. This work is done at no cost to the Town and will save on the costs to fill and compact these areas in the future. The locations where the excess materials can be placed are now limited without constructing or extending drainage culverts. Revegetation is also required in the are- as where fill materials are placed to help with erosion and aesthetics. FUNDING PRIORITY: High - Leverage Local Funds 309 Capital Projects Fund Project Information Sheets D6047 ACTIVITY Prior Years FY20-21 FY21-22 FY22-23 FY23-24 FY24-25 TOTAL Capital Projects 108,830$ 50,000$ 50,000$ 50,000$ 50,000$ 50,000$ 358,830$ Grant - Downtown Strategy - Development Fees - Bonds - Other Sources - Unfunded - TOTAL 108,830$ 50,000$ 50,000$ 50,000$ 50,000$ 50,000$ 358,830$ ACTIVITY Prior Years FY20-21 FY21-22 FY22-23 FY23-24 FY24-25 TOTAL Acquisition -$ -$ -$ -$ -$ -$ -$ Planning - Design - Construction 108,830 50,000 50,000 50,000 50,000 50,000 358,830 Other Expenses - TOTAL 108,830$ 50,000$ 50,000$ 50,000$ 50,000$ 50,000$ 358,830$ FY20-21 FY21-22 FY22-23 FY23-24 FY24-25 TOTAL -$ -$ -$ -$ -$ -$ - - -$ -$ -$ -$ -$ -$ Salaries & Benefits Services & Supplies Other Impact TOTAL FUNDING SOURCES PROJECT EXPENSES OPERATING IMPACT ACTIVITY 310 Capital Projects Fund Project Information Sheets D6057 PROJECT TITLE: Golden Eagle Impoundment Area Improvements PROJECT NUMBER: D6057 PROJECT DESCRIPTION/SCOPE: Drainage channel improvements. Modify trash racks on Golden Eagle dam inlets. Construct flood walls, sediment drop basins, grouted rip-rap. . TOWN GOALS TIMEFRAME: FY19-21 YEAR PROJECT BEGAN: FY19-20 TOTAL ESTIMATED PROJECT COST: $1,000,000 PROJECT JUSTIFICATION: Golden Eagle impoundment area receives storm runoff from three washes: Ashbrook wash, Bristol wash and Cloudburst wash. The 100-year storm rainfall intensity values have increased in the north- eastern area of Maricopa County. Runoff values have increased due to increased upstream develop- ment. Runoff time of concentration has also accelerated due to increased upstream development. The net change as a result of the items noted have increased the amount of flow entering the im- poundment area (this area includes the park improvement areas, the ball fields, the picnic ramada area, etc.) and requires major modifications to the drainage courses. FUNDING PRIORITY: High - Prevents Irreparable Damage to Existing Facili- ties 311 Capital Projects Fund Project Information Sheets D6057 ACTIVITY Prior Years FY19-20 FY20-21 FY21-22 FY22-23 FY23-24 TOTAL Capital Projects -$ 500,000$ 500,000$ -$ -$ -$ 1,000,000$ Grant - Downtown Strategy - General - Developer - Development Fees - Bonds - Other Sources - Unfunded - TOTAL -$ 500,000$ 500,000$ -$ -$ -$ 1,000,000$ ACTIVITY Prior Years FY19-20 FY20-21 FY21-22 FY22-23 FY23-24 TOTAL Acquisition -$ -$ -$ -$ -$ -$ -$ Planning - Design - Construction 500,000 500,000 1,000,000 Other Expenses - TOTAL -$ 500,000$ 500,000$ -$ -$ -$ 1,000,000$ FY19-20 FY20-21 FY21-22 FY22-23 FY23-24 TOTAL -$ -$ -$ -$ -$ -$ 30,000 30,000 60,000 - -$ -$ -$ 30,000$ 30,000$ 60,000$ Salaries & Benefits Services & Supplies Other Impact TOTAL FUNDING SOURCES PROJECT EXPENSES OPERATING IMPACT ACTIVITY 312 Capital Projects Fund Project Information Sheets D6058 PROJECT TITLE: Panorama Drive Storm Drain Improvements PROJECT NUMBER: D6058 PROJECT DESCRIPTION/SCOPE: The Panorama Drain is an existing 48” to 66” Storm Drain system underneath Panorama Drive be- tween Saguaro Blvd and El Lago Blvd and was constructed in 1988. Upstream runoff from the Town is routed downstream to Saguaro Blvd and Palisades Blvd, is collected at the intersection of Panora- ma and Saguaro Blvd and routed into the Panorama Drain. The Panorama Drain outfalls near El Lago Blvd into Panorama Wash which converges with Colony Wash. TOWN GOALS TIMEFRAME: FY20-21 YEAR PROJECT BEGAN: FY20-21 TOTAL ESTIMATED PROJECT COST: $2,000,000 PROJECT JUSTIFICATION: The 31-year-old system is deteriorating and in many segments of the Storm drain system the pipes are at failure. This failure is defined as pipes being corroded to the extent that there is no longer a pipe bed in place which has caused erosion to occur beneath the pipe bedding. The original pipe ma- terial is CMP which has a life span between 20 to 35 years. It is essential for the Town ’s overall drainage system to implement a remediation and replacement for the Panorama Drain as delaying this remediation would cause adverse problems not only along the Panorama Drain alignment but also upstream the drain. FUNDING PRIORITY: High - Prevents Irreparable Damage to Existing Facili- ties 313 Capital Projects Fund Project Information Sheets D6058 ACTIVITY Prior Years FY20-21 FY21-22 FY22-23 FY23-24 FY24-25 TOTAL Capital Projects 98,305$ 1,001,695$ -$ -$ -$ -$ 1,100,000$ Grant - Downtown Strategy 500,000 500,000 Development Fees - Bonds - Other Sources 400,000 400,000 Unfunded - TOTAL 98,305$ 1,901,695$ -$ -$ -$ -$ 2,000,000$ ACTIVITY Prior Years FY20-21 FY21-22 FY22-23 FY23-24 FY24-25 TOTAL Acquisition -$ -$ -$ -$ -$ -$ -$ Planning - Design 98,305 26,695 125,000 Construction 1,875,000 1,875,000 Other Expenses - TOTAL 98,305$ 1,901,695$ -$ -$ -$ -$ 2,000,000$ FY20-21 FY21-22 FY22-23 FY23-24 FY24-25 TOTAL -$ -$ -$ -$ -$ -$ 5,000 5,000 5,000 5,000 20,000 - -$ 5,000$ 5,000$ 5,000$ 5,000$ 20,000$ Other Impact TOTAL FUNDING SOURCES PROJECT EXPENSES OPERATING IMPACT ACTIVITY Salaries & Benefits Services & Supplies 314 Capital Projects Fund Project Information Sheets D6059 PROJECT TITLE: Pollina Brantley Detention Basin PROJECT NUMBER: D6059 PROJECT DESCRIPTION/SCOPE: Storm Water Detention TOWN GOALS TIMEFRAME: FY20-21 YEAR PROJECT BEGAN: FY20 TOTAL ESTIMATED PROJECT COST: $100,000 PROJECT JUSTIFICATION: This project will collect and temporarily store storm water runoff to minimize downstream flooding on neighborhood streets. FUNDING PRIORITY: High - Leverage Local Funds 315 Capital Projects Fund Project Information Sheets D6059 ACTIVITY Prior Years FY20-21 FY21-22 FY22-23 FY23-24 FY24-25 TOTAL Capital Projects -$ 100,000$ -$ -$ -$ -$ 100,000$ Grant - Downtown Strategy - General - Developer - Development Fees - Bonds - Other Sources - Unfunded - TOTAL -$ 100,000$ -$ -$ -$ -$ 100,000$ ACTIVITY Prior Years FY20-21 FY21-22 FY22-23 FY23-24 FY24-25 TOTAL Acquisition -$ -$ -$ -$ -$ -$ -$ Planning - Design 2,500 2,500 Construction 97,500 97,500 Other Expenses - TOTAL -$ 100,000$ -$ -$ -$ -$ 100,000$ FY20-21 FY21-22 FY22-23 FY23-24 FY24-25 TOTAL -$ -$ -$ -$ -$ -$ 3,000 3,000 3,000 3,000 12,000 - -$ 3,000$ 3,000$ 3,000$ 3,000$ 12,000$ Salaries & Benefits Services & Supplies Other Impact TOTAL FUNDING SOURCES PROJECT EXPENSES OPERATING IMPACT ACTIVITY 316 PROJECT TITLE: HVAC Controller Retrofit PROJECT NUMBER: F4035 PROJECT DESCRIPTION/SCOPE: Replacement of proprietary HVAC Metasys Johnson Controllers with non-proprietary controllers. TOWN GOALS TIMEFRAME: FY20-21 YEAR PROJECT BEGAN: FY20-21 TOTAL ESTIMATED PROJECT COST: $70,000 PROJECT JUSTIFICATION: The maker of Johnson products no longer support/manufacture the HVAC controllers currently in use at the community center. Staff replaced the HVAC controllers in the Library/Museum and Town Hall with non-proprietary controllers to give more flexibility in maintaining equipment. FUNDING PRIORITY: High - Provides Maintenance to Existing Facilities Capital Projects Fund Project Information Sheets F4035 317 Capital Projects Fund Project Information Sheets F4035 ACTIVITY Prior Years FY20-21 FY21-22 FY22-23 FY23-24 FY24-25 TOTAL Capital Projects -$ 70,000$ -$ -$ -$ -$ 70,000$ Grant - Downtown Strategy - General - Developer - Development Fees - Bonds - Other Sources - Unfunded - TOTAL -$ 70,000$ -$ -$ -$ -$ 70,000$ ACTIVITY Prior Years FY20-21 FY21-22 FY22-23 FY23-24 FY24-25 TOTAL Acquisition -$ 70,000$ -$ -$ -$ -$ 70,000$ Planning - Design - Construction - Other Expenses - TOTAL -$ 70,000$ -$ -$ -$ -$ 70,000$ FY20-21 FY21-22 FY22-23 FY23-24 FY24-25 TOTAL -$ -$ -$ -$ -$ -$ - - -$ -$ -$ -$ -$ -$ Other Impact TOTAL FUNDING SOURCES PROJECT EXPENSES OPERATING IMPACT ACTIVITY Salaries & Benefits Services & Supplies 318 PROJECT TITLE: Fire Alarm Control Panel Replacement PROJECT NUMBER: F4036 PROJECT DESCRIPTION/SCOPE: Replacement of two fire alarm panels, one each at the community center and library/museum . TOWN GOALS TIMEFRAME: FY20-21 YEAR PROJECT BEGAN: FY20-21 TOTAL ESTIMATED PROJECT COST: $80,000 PROJECT JUSTIFICATION: The current fire alarm panels are original to the construction of the buildings, completed in 2001. Parts for the fire alarm panels are becoming increasingly harder to find, as this particular panel, made by Simplex, is no longer in production. FUNDING PRIORITY: High - Provides Maintenance of Existing Facilities Capital Projects Fund Project Information Sheets F4036 319 Capital Projects Fund Project Information Sheets F4036 ACTIVITY Prior Years FY20-21 FY21-22 FY22-23 FY23-24 FY24-25 TOTAL Capital Projects -$ 80,000$ -$ -$ -$ -$ 80,000$ Grant - Downtown Strategy - General - Developer - Development Fees - Bonds - Other Sources - Unfunded - TOTAL -$ 80,000$ -$ -$ -$ -$ 80,000$ ACTIVITY Prior Years FY20-21 FY21-22 FY22-23 FY23-24 FY24-25 TOTAL Acquisition -$ 80,000$ -$ -$ -$ -$ 80,000$ Planning - Design - Construction - Other Expenses - TOTAL -$ 80,000$ -$ -$ -$ -$ 80,000$ FY20-21 FY21-22 FY22-23 FY23-24 FY24-25 TOTAL -$ -$ -$ -$ -$ -$ - - -$ -$ -$ -$ -$ -$ Other Impact TOTAL FUNDING SOURCES PROJECT EXPENSES OPERATING IMPACT ACTIVITY Salaries & Benefits Services & Supplies 320 PROJECT TITLE: Sport Field Lighting PROJECT NUMBER: P3032 PROJECT DESCRIPTION/SCOPE: Replacement of existing 1,500 watt metal halide sports field lighting assemblies at Golden Eagle Park and Four Peaks Park with LED field lighting assemblies. TOWN GOALS TIMEFRAME: FY21-22 YEAR PROJECT BEGAN: FY21-22 TOTAL ESTIMATED PROJECT COST: $1,733,000 PROJECT JUSTIFICATION: Four Peaks Parks currently has 17 field lighting poles and metal halide lighting fixtures that were in- stalled in the 1990s. Golden Eagle Park has 20 field lighting poles and metal halide lighting fixtures installed in the 1990s. This project will leave the existing field lighting poles in place and will replace the outdated lighting fixtures with LED fixtures offering better performance while reducing mainte- nance and electrical costs. FUNDING PRIORITY: Medium - Provides Maintenance of Existing Systems Capital Projects Fund Project Information Sheets P3032 321 Capital Projects Fund Project Information Sheets P3032 ACTIVITY Prior Years FY20-21 FY21-22 FY22-23 FY23-24 FY24-25 TOTAL Capital Projects -$ -$ -$ -$ -$ -$ -$ Grant - Downtown Strategy - General - Developer - Development Fees - Bonds - Other Sources - Unfunded 1,733,000 1,733,000 TOTAL -$ -$ 1,733,000$ -$ -$ -$ 1,733,000$ ACTIVITY Prior Years FY20-21 FY21-22 FY22-23 FY23-24 FY24-25 TOTAL Acquisition -$ -$ -$ -$ -$ -$ -$ Planning - Design - Construction 1,733,000 1,733,000 Other Expenses - TOTAL -$ -$ 1,733,000$ -$ -$ -$ 1,733,000$ FY20-21 FY21-22 FY22-23 FY23-24 FY24-25 TOTAL -$ -$ -$ -$ -$ -$ - - -$ -$ -$ -$ -$ -$ Other Impact TOTAL FUNDING SOURCES PROJECT EXPENSES OPERATING IMPACT ACTIVITY Salaries & Benefits Services & Supplies 322 PROJECT TITLE: Video Surveillance Cameras PROJECT NUMBER: P3033 PROJECT DESCRIPTION/SCOPE: Purchase and installation of video surveillance cameras at various Town parks and facilities. TOWN GOALS TIMEFRAME: FY17-22 YEAR PROJECT BEGAN: FY17-18 TOTAL ESTIMATED PROJECT COST: $200,000 PROJECT JUSTIFICATION: The Town has seen an increase in vandalism at Town parks and facilities. Additional surveillance cameras may deter vandalism or provide video evidence should vandalism occur. FUNDING PRIORITY: High - Protects Health & Safety of the Town Capital Projects Fund Project Information Sheets P3033 323 Capital Projects Fund Project Information Sheets P3033 ACTIVITY Prior Years FY20-21 FY21-22 FY22-23 FY23-24 FY24-25 TOTAL Capital Projects 94,316$ 50,000$ 50,000$ -$ -$ -$ 194,316$ Grant - Downtown Strategy - General - Developer - Development Fees - Bonds - Other Sources - Unfunded - TOTAL 94,316$ 50,000$ 50,000$ -$ -$ -$ 194,316$ ACTIVITY Prior Years FY20-21 FY21-22 FY22-23 FY23-24 FY24-25 TOTAL Acquisition 94,316$ 50,000$ 50,000$ -$ -$ 194,316$ Planning - Design - Construction - Other Expenses - TOTAL 94,316$ 50,000$ 50,000$ -$ -$ -$ 194,316$ FY20-21 FY21-22 FY22-23 FY23-24 FY24-25 TOTAL -$ -$ -$ -$ -$ -$ 5,000 5,000 5,000 5,000 5,000 25,000 - 5,000$ 5,000$ 5,000$ 5,000$ 5,000$ 25,000$ Other Impact TOTAL FUNDING SOURCES PROJECT EXPENSES OPERATING IMPACT ACTIVITY Salaries & Benefits Services & Supplies 324 PROJECT TITLE: Four Peaks Park Upgrades PROJECT NUMBER: P3035 PROJECT DESCRIPTION/SCOPE: Redesign existing playground space and swing structures with new layout, play equipment, and ac- cessibility at Four Peaks Park. TOWN GOALS TIMEFRAME: FY18-23 YEAR PROJECT BEGAN: FY18-19 TOTAL ESTIMATED PROJECT COST: $1,042,564 PROJECT JUSTIFICATION: The Four Peaks Playground has a large swing structure that is underutilized and is misconfigured to the space available. The current play surface is non-ADA compliant and is a liability risk to the Town. Redevelopment of this area would enhance the park making it safer and more usable for children of all ages. Refurbishing of the infields and restrooms would also be included in this project. FUNDING PRIORITY: High - Protects Health & Safety of the Town Capital Projects Fund Project Information Sheets P3035 325 Capital Projects Fund Project Information Sheets P3035 ACTIVITY Prior Years FY20-21 FY21-22 FY22-23 FY23-24 FY24-25 TOTAL Capital Projects 397,564$ 330,000$ 200,000$ 100,000$ -$ -$ 1,027,564$ Grant 15,000 15,000 Downtown Strategy - General - Developer - Development Fees - Bonds - Other Sources - Unfunded - TOTAL 412,564$ 330,000$ 200,000$ 100,000$ -$ -$ 1,042,564$ ACTIVITY Prior Years FY20-21 FY21-22 FY22-23 FY23-24 FY24-25 TOTAL Acquisition 66,234$ 60,000$ -$ -$ -$ -$ 126,234$ Planning - Design - Construction 346,330 270,000 200,000 100,000 916,330 Other Expenses - TOTAL 412,564$ 330,000$ 200,000$ 100,000$ -$ -$ 1,042,564$ FY20-21 FY21-22 FY22-23 FY23-24 FY24-25 TOTAL -$ -$ -$ -$ -$ -$ 8,000 10,000 10,000 10,000 10,000 48,000 - 8,000$ 10,000$ 10,000$ 10,000$ 10,000$ 48,000$ Other Impact TOTAL FUNDING SOURCES PROJECT EXPENSES OPERATING IMPACT ACTIVITY Salaries & Benefits Services & Supplies 326 PROJECT TITLE: Desert Vista Skate Park Lights PROJECT NUMBER: P3036 PROJECT DESCRIPTION/SCOPE: Installation of lights at the skate park. Grant funding will be requested, however, the grant funding is not guaranteed. TOWN GOALS TIMEFRAME: FY21-22 YEAR PROJECT BEGAN: FY21-22 TOTAL ESTIMATED PROJECT COST: $75,000 PROJECT JUSTIFICATION: The addition of lights at the skate park would allow for evening access to the facility. FUNDING PRIORITY: Low - Provides an Expanded Level of Service Capital Projects Fund Project Information Sheets P3036 327 Capital Projects Fund Project Information Sheets P3036 ACTIVITY Prior Years FY20-21 FY21-22 FY22-23 FY23-24 FY24-25 TOTAL Capital Projects -$ -$ 35,000$ -$ -$ -$ 35,000$ Grant 40,000 40,000 Downtown Strategy - General - Developer - Development Fees - Bonds - Other Sources - Unfunded - TOTAL -$ -$ 75,000$ -$ -$ -$ 75,000$ ACTIVITY Prior Years FY20-21 FY21-22 FY22-23 FY23-24 FY24-25 TOTAL Acquisition -$ -$ -$ -$ -$ -$ -$ Planning - Design 5,000 5,000 Construction 70,000 70,000 Other Expenses - TOTAL -$ -$ 75,000$ -$ -$ -$ 75,000$ FY20-21 FY21-22 FY22-23 FY23-24 FY24-25 TOTAL -$ -$ -$ -$ -$ -$ 2,000 2,000 2,000 2,000 8,000 - -$ 2,000$ 2,000$ 2,000$ 2,000$ 8,000$ Other Impact TOTAL FUNDING SOURCES PROJECT EXPENSES OPERATING IMPACT ACTIVITY Salaries & Benefits Services & Supplies 328 PROJECT TITLE: Fountain Park Lake Liner Replacement PROJECT NUMBER: P3038 PROJECT DESCRIPTION/SCOPE: Remove existing lake liner, repair any subgrade issues or damage and install replacement liner. TOWN GOALS TIMEFRAME: FY21-22 YEAR PROJECT BEGAN: FY21-22 TOTAL ESTIMATED PROJECT COST: $5,000,000 PROJECT JUSTIFICATION: The current lake liner was installed in 2000. The life expectancy for this liner is 20 to 30 years. The current condition or amount of deterioration of the liner is unknown and, in effort to be proactive, a replacement should be considered by 2022. If the project is postponed until the liner fails, significant cleanup efforts as well as potential fines may be incurred due to ground water contamination. FUNDING PRIORITY: High - Town Council Priority Capital Projects Fund Project Information Sheets P3038 329 Capital Projects Fund Project Information Sheets P3038 ACTIVITY Prior Years FY20-21 FY21-22 FY22-23 FY23-24 FY24-25 TOTAL Capital Projects -$ -$ -$ -$ -$ -$ -$ Grant - Downtown Strategy - General - Developer - Development Fees - Bonds 5,000,000 5,000,000 Other Sources - Unfunded - TOTAL -$ -$ 5,000,000$ -$ -$ -$ 5,000,000$ ACTIVITY Prior Years FY20-21 FY21-22 FY22-23 FY23-24 FY24-25 TOTAL Acquisition -$ -$ -$ -$ -$ -$ -$ Planning 1,500,000 1,500,000 Design 500,000 500,000 Construction 3,000,000 3,000,000 Other Expenses - TOTAL -$ -$ 5,000,000$ -$ -$ -$ 5,000,000$ FY20-21 FY21-22 FY22-23 FY23-24 FY24-25 TOTAL -$ -$ -$ -$ -$ -$ - - -$ -$ -$ -$ -$ -$ Other Impact TOTAL FUNDING SOURCES PROJECT EXPENSES OPERATING IMPACT ACTIVITY Salaries & Benefits Services & Supplies 330 PROJECT TITLE: Fountain Park Pump Replacements PROJECT NUMBER: P3039 PROJECT DESCRIPTION/SCOPE: Upgrade existing fountain pumps to a variable frequency system to allow for graduated Fountain heights to accommodate wind and other conditions. TOWN GOALS TIMEFRAME: FY21-22 YEAR PROJECT BEGAN: FY21-22 TOTAL ESTIMATED PROJECT COST: $1,500,000 PROJECT JUSTIFICATION: The current Fountain operates on three 600 horsepower pumps, allowing the Fountain to operate at three possible heights. Operating one pump allows the Fountain to run at roughly 170 feet, operating two pumps allows the Fountain to run at 330 feet, and operating all three pumps has the Fountain reaching 560 feet. These pumps operate only when certain wind conditions are met, and winds over 15 mph require the Fountain to be shut down completely. The upgrade to a variable frequency sys- tem will allow the Fountain height to adjust to real time wind conditions and operate more regularly. This project should ideally be taken on in conjunction with the lake liner replacement to minimize down time of the Fountain. FUNDING PRIORITY: High - Town Council Priority Capital Projects Fund Project Information Sheets P3039 331 Capital Projects Fund Project Information Sheets P3039 ACTIVITY Prior Years FY20-21 FY21-22 FY22-23 FY23-24 FY24-25 TOTAL Capital Projects -$ -$ -$ -$ -$ -$ -$ Grant - Downtown Strategy - General - Developer - Development Fees - Bonds 1,500,000 1,500,000 Other Sources - Unfunded - TOTAL -$ -$ 1,500,000$ -$ -$ -$ 1,500,000$ ACTIVITY Prior Years FY20-21 FY21-22 FY22-23 FY23-24 FY24-25 TOTAL Acquisition -$ -$ -$ -$ -$ -$ -$ Planning - Design 500,000 500,000 Construction 1,000,000 1,000,000 Other Expenses - TOTAL -$ -$ 1,500,000$ -$ -$ -$ 1,500,000$ FY20-21 FY21-22 FY22-23 FY23-24 FY24-25 TOTAL -$ -$ -$ -$ -$ -$ - - -$ -$ -$ -$ -$ -$ Other Impact TOTAL FUNDING SOURCES PROJECT EXPENSES OPERATING IMPACT ACTIVITY Salaries & Benefits Services & Supplies 332 PROJECT TITLE: Splash Pad Renovation PROJECT NUMBER: P3040 PROJECT DESCRIPTION/SCOPE: Renovate existing splash pad, repair and replace leaking fixtures, resurface the play space and add upgraded UV filtration system. TOWN GOALS TIMEFRAME: FY21-22 YEAR PROJECT BEGAN: FY21-22 TOTAL ESTIMATED PROJECT COST: $550,000 PROJECT JUSTIFICATION: The Rotary Centennial Splash Pad was installed in 2007. The features within the splash pad have ex- ceeded their life expectancy and are now showing significant wear and tear. Many parts are leaking and beyond repair. The installation of the features is subgrade, therefore replacement requires signif- icant excavation and removal of concrete floor. Replacement with at-grade, modular features is rec- ommended. The addition of a UV filtration system is also recommended to ensure public health and safety. FUNDING PRIORITY: High - Prevents Irreparable Damage to Existing Facili- ties Capital Projects Fund Project Information Sheets P3040 333 Capital Projects Fund Project Information Sheets P3040 ACTIVITY Prior Years FY20-21 FY21-22 FY22-23 FY23-24 FY24-25 TOTAL Capital Projects -$ -$ -$ -$ -$ -$ -$ Grant - Downtown Strategy - General - Developer - Development Fees - Bonds 550,000 550,000 Other Sources - Unfunded - TOTAL -$ -$ 550,000$ -$ -$ -$ 550,000$ ACTIVITY Prior Years FY20-21 FY21-22 FY22-23 FY23-24 FY24-25 TOTAL Acquisition -$ -$ -$ -$ -$ -$ -$ Planning - Design 50,000 50,000 Construction 500,000 500,000 Other Expenses - TOTAL -$ -$ 550,000$ -$ -$ -$ 550,000$ FY20-21 FY21-22 FY22-23 FY23-24 FY24-25 TOTAL -$ -$ -$ -$ -$ -$ 7,500 7,500 7,500 22,500 - -$ -$ 7,500$ 7,500$ 7,500$ 22,500$ Other Impact TOTAL FUNDING SOURCES PROJECT EXPENSES OPERATING IMPACT ACTIVITY Salaries & Benefits Services & Supplies 334 PROJECT TITLE: SunRidge Park PROJECT NUMBER: P3041 PROJECT DESCRIPTION/SCOPE: Development of Town-owned parcel at SunRidge Canyon Drive and Desert Canyon Drive into a new park site. This project is an alternative to the proposed Fire Station #3 location in which a pocket park was included. TOWN GOALS TIMEFRAME: FY22-25 YEAR PROJECT BEGAN: FY22-23 TOTAL ESTIMATED PROJECT COST: $3,500,000 PROJECT JUSTIFICATION: The Town’s General Plan recommends the addition of park space within our community, particularly in areas where our current parks do not serve. Areas in the northwest and southwest quadrants of the Town do not have any park amenities within a walkable distance. The addition of SunRidge Park would be a vital component to enhancing our community and creating a better quality of life for all residents. FUNDING PRIORITY: Low - Provides an Expanded Level of Service Capital Projects Fund Project Information Sheets P3041 335 Capital Projects Fund Project Information Sheets P3041 ACTIVITY Prior Years FY20-21 FY21-22 FY22-23 FY23-24 FY24-25 TOTAL Capital Projects -$ -$ -$ -$ -$ -$ -$ Grant - Downtown Strategy - General - Developer - Development Fees 200,000 500,000 700,000 Bonds - Other Sources - Unfunded 3,000,000 3,000,000 TOTAL -$ -$ -$ 200,000$ 500,000$ 3,000,000$ 3,700,000$ ACTIVITY Prior Years FY20-21 FY21-22 FY22-23 FY23-24 FY24-25 TOTAL Acquisition -$ -$ -$ -$ -$ -$ -$ Planning - Design 200,000 200,000 Construction 3,300,000 3,300,000 Other Expenses - TOTAL -$ -$ -$ 200,000$ 3,300,000$ -$ 3,500,000$ FY20-21 FY21-22 FY22-23 FY23-24 FY24-25 TOTAL -$ -$ -$ 60,000$ 60,000$ 120,000$ 100,000 100,000 200,000 - -$ -$ -$ 160,000$ 160,000$ 320,000$ Other Impact TOTAL FUNDING SOURCES PROJECT EXPENSES OPERATING IMPACT ACTIVITY Salaries & Benefits Services & Supplies 336 Capital Projects Fund Project Information Sheets P3042 PROJECT TITLE: Fountain Lighting Replacement PROJECT NUMBER: P3042 PROJECT DESCRIPTION/SCOPE: Replace existing fountain lighting that has surpassed its expected life cycle. Upgrade both the foun- tain and shoreline lights with LED fixtures and repair/replace surrounding enclosures including the trusses and supporting elements on the fountain. TOWN GOALS TIMEFRAME: FY20-21 YEAR PROJECT BEGAN: FY20-21 TOTAL ESTIMATED PROJECT COST: $150,000 PROJECT JUSTIFICATION: The existing lights are failing fixture by fixture. Only three of six shoreline lights are currently opera- ble and five of 12 fountain lights currently operate. They are subjected to a very harsh environment including high water pressures and extreme salinity. Replacement is needed and upgrading to more current electrical technology, including LED fixtures, is prudent for longevity and financial purposes. FUNDING PRIORITY: Low - Provides an Expanded Level of Service 337 Capital Projects Fund Project Information Sheets P3042 ACTIVITY Prior Years FY20-21 FY21-22 FY22-23 FY23-24 FY24-25 TOTAL Capital Projects -$ 150,000$ -$ -$ -$ -$ 150,000$ Grant - Downtown Strategy - General - Developer - Development Fees - Bonds - Other Sources - Unfunded - TOTAL -$ 150,000$ -$ -$ -$ -$ 150,000$ ACTIVITY Prior Years FY20-21 FY21-22 FY22-23 FY23-24 FY24-25 TOTAL Acquisition -$ 75,000$ -$ -$ -$ -$ 75,000$ Planning - Design - Construction 75,000 75,000 Other Expenses - TOTAL -$ 150,000$ -$ -$ -$ -$ 150,000$ FY20-21 FY21-22 FY22-23 FY23-24 FY24-25 TOTAL -$ -$ -$ -$ -$ -$ - - -$ -$ -$ -$ -$ -$ Other Impact TOTAL FUNDING SOURCES PROJECT EXPENSES OPERATING IMPACT ACTIVITY Salaries & Benefits Services & Supplies 338 Capital Projects Fund Project Information Sheets P3044 PROJECT TITLE: Sierra Madre Park PROJECT NUMBER: P3044 PROJECT DESCRIPTION/SCOPE: Development of Town-owned parcel at Sierra Madre and Golden Eagle Blvd into an active park space. TOWN GOALS TIMEFRAME: FY22-30 YEAR PROJECT BEGAN: FY22-23 TOTAL ESTIMATED PROJECT COST: $10,500,000 PROJECT JUSTIFICATION: The Town’s General Plan recommends the addition of park space within our community. The commu- nity has minimal Town-owned property available for park use however, this open parcel is almost 20 acres and makes an idea park location. Additionally, it is adjacent to a school-owned site and is con- sistent with the surrounding potential land use. The addition of Sierra Madre Park would be a vital component to enhancing our community and creating a better quality of life for all residents. FUNDING PRIORITY: Low - Provides an Expanded Level of Service 339 Capital Projects Fund Project Information Sheets P3044 ACTIVITY Prior Years FY20-21 FY21-22 FY22-23 FY23-24 FY24-25 TOTAL Capital Projects -$ -$ -$ -$ -$ -$ -$ Grant - Downtown Strategy - General - Developer - Development Fees 100,000 100,000 Bonds - Other Sources - Unfunded 2,500,000 2,500,000 5,000,000 TOTAL -$ -$ -$ 100,000$ 2,500,000$ 2,500,000$ 5,100,000$ ACTIVITY Prior Years FY20-21 FY21-22 FY22-23 FY23-24 FY24-25 TOTAL Acquisition -$ -$ -$ -$ -$ -$ -$ Planning - Design 100,000 100,000 Construction - 2,500,000 2,500,000 5,000,000 Other Expenses - TOTAL -$ -$ -$ 100,000$ 2,500,000$ 2,500,000$ 5,100,000$ FY20-21 FY21-22 FY22-23 FY23-24 FY24-25 TOTAL -$ -$ -$ -$ -$ -$ - - -$ -$ -$ -$ -$ -$ Other Impact TOTAL FUNDING SOURCES PROJECT EXPENSES OPERATING IMPACT ACTIVITY Salaries & Benefits Services & Supplies 340 Capital Projects Fund Project Information Sheets P3045 PROJECT TITLE: Four Peaks Park Playground Parking Lot Improve- ments PROJECT NUMBER: P3045 PROJECT DESCRIPTION/SCOPE: Pave the south side parking lot and seal the entry driveway. TOWN GOALS TIMEFRAME: FY20-21 YEAR PROJECT BEGAN: FY20-21 TOTAL ESTIMATED PROJECT COST: $65,000 PROJECT JUSTIFICATION: The south side of the playground parking area is currently an unimproved dirt lot. Paving this area will provide for a safer environment for park users. FUNDING PRIORITY: High - Finishes a Partially Completed Project 341 Capital Projects Fund Project Information Sheets P3045 ACTIVITY Prior Years FY20-21 FY21-22 FY22-23 FY23-24 FY24-25 TOTAL Capital Projects -$ 65,000$ -$ -$ -$ -$ 65,000$ Grant - Downtown Strategy - General - Developer - Development Fees - Bonds - Other Sources - Unfunded - TOTAL -$ 65,000$ -$ -$ -$ -$ 65,000$ ACTIVITY Prior Years FY20-21 FY21-22 FY22-23 FY23-24 FY24-25 TOTAL Acquisition -$ -$ -$ -$ -$ -$ -$ Planning - Design 3,000 3,000 Construction 62,000 62,000 Other Expenses - TOTAL -$ 65,000$ -$ -$ -$ -$ 65,000$ FY20-21 FY21-22 FY22-23 FY23-24 FY24-25 TOTAL -$ -$ -$ -$ -$ -$ - - -$ -$ -$ -$ -$ -$ Other Impact TOTAL FUNDING SOURCES PROJECT EXPENSES OPERATING IMPACT ACTIVITY Salaries & Benefits Services & Supplies 342 PROJECT TITLE: Unpaved Alley Paving Projects PROJECT NUMBER: S6003 PROJECT DESCRIPTION/SCOPE: This project involves paving a number of unpaved alleys throughout the Town. The paving project is divided into five phases as follows: Phase I: 1,400 LF from Panorama to Colony - Completed Phase II: 870 LF from Tower to Panorama - Completed Phase III: 890 LF from Panorama to Enterprise - Completed Phase IV: 1,150 LF adjacent to Colony Wash and 770 linear feet from Fountain Hills Boulevard to Glenbrook Phase V: 770 feet from Fountain Hills Boulevard to Glenbrook TOWN GOALS TIMEFRAME: FY09-21 YEAR PROJECT BEGAN: FY08-09 TOTAL ESTIMATED PROJECT COST: $716,637 PROJECT JUSTIFICATION: Maricopa County has mandated that all municipalities stabilize unpaved alleys to mitigate air pollu- tion. The Town of Fountain Hills has entered into an IGA with Maricopa County requiring the unpaved alleys to be stabilized. FUNDING PRIORITY: High - Federal, State or Local Mandate Capital Projects Fund Project Information Sheets S6003 343 Capital Projects Fund Project Information Sheets S6003 ACTIVITY Prior Years FY20-21 FY21-22 FY22-23 FY23-24 FY24-25 TOTAL Capital Projects 408,637$ 308,000$ -$ -$ -$ 716,637$ Grant - Downtown Strategy - General - Developer - Development Fees - Bonds - Other Sources - Unfunded - TOTAL 408,637$ 308,000$ -$ -$ -$ -$ 716,637$ ACTIVITY Prior Years FY20-21 FY21-22 FY22-23 FY23-24 FY24-25 TOTAL Acquisition -$ -$ -$ -$ -$ -$ -$ Planning - Design 42,815 45,000 87,815 Construction 365,049 263,000 628,049 Other Expenses 773 773 TOTAL 408,637$ 308,000$ -$ -$ -$ -$ 716,637$ FY20-21 FY21-22 FY22-23 FY23-24 FY24-25 TOTAL -$ -$ -$ -$ -$ -$ - 2,000 2,000 2,000 2,000 2,000 10,000 2,000$ 2,000$ 2,000$ 2,000$ 2,000$ 10,000$ Other Impact TOTAL FUNDING SOURCES PROJECT EXPENSES OPERATING IMPACT ACTIVITY Salaries & Benefits Services & Supplies 344 PROJECT TITLE: Avenue of the Fountains/La Montana Intersection Im- provements PROJECT NUMBER: S6051 PROJECT DESCRIPTION/SCOPE: Construct a roundabout to improve traffic/pedestrian safety. TOWN GOALS TIMEFRAME: FY18-21 YEAR PROJECT BEGAN: FY18-19 TOTAL ESTIMATED PROJECT COST: $700,000 PROJECT JUSTIFICATION: Traffic, bike, and pedestrian movements at the AOTF/La Montana intersection have been an on -going issue since the Town’s incorporation, primarily due to the existing, wide AOTF median. This project will improve intersection traffic operations by constructing a roundabout. FUNDING PRIORITY: High - Protects Health & Safety of the Town Capital Projects Fund Project Information Sheets S6051 345 Capital Projects Fund Project Information Sheets S6051 ACTIVITY Prior Years FY20-21 FY21-22 FY22-23 FY23-24 FY24-25 TOTAL Capital Projects -$ -$ -$ -$ -$ -$ Grant - Downtown Strategy 391,249 300,000 691,249 General - Developer - Development Fees - Bonds - Other Sources - Unfunded - TOTAL 391,249$ 300,000$ -$ -$ -$ -$ 691,249$ ACTIVITY Prior Years FY20-21 FY21-22 FY22-23 FY23-24 FY24-25 TOTAL Acquisition -$ -$ -$ -$ -$ -$ -$ Planning - Design 91,249 91,249 Construction 300,000 300,000 600,000 Other Expenses - TOTAL 391,249$ 300,000$ -$ -$ -$ -$ 691,249$ FY20-21 FY21-22 FY22-23 FY23-24 FY24-25 TOTAL -$ -$ -$ -$ -$ -$ 1,500 1,500 1,500 1,500 6,000 - -$ 1,500$ 1,500$ 1,500$ 1,500$ 6,000$ Other Impact TOTAL FUNDING SOURCES PROJECT EXPENSES OPERATING IMPACT ACTIVITY Salaries & Benefits Services & Supplies 346 Capital Projects Fund Project Information Sheets S6053 PROJECT TITLE: Fountain Hills Boulevard Shoulder Paving PROJECT NUMBER: S6053 PROJECT DESCRIPTION/SCOPE: This project will pave the dirt shoulders along Fountain Hills Boulevard from Pinto Drive to Segundo Drive providing dust mitigation and erosion control. TOWN GOALS TIMEFRAME: FY12-21 YEAR PROJECT BEGAN: FY19-20 TOTAL ESTIMATED PROJECT COST: $2,273,781 PROJECT JUSTIFICATION: The Town recently completed the southbound section of Fountain Hills Boulevard from Segundo Drive to Pinto Drive utilizing both grant and local matched funding. This project will provide dust mitiga- tion, erosion control, run-off-the-road hazard mitigation, potential future use by bicycles for the northbound section from Pinto Drive to Segundo Drive. FUNDING PRIORITY: High - Finishes a Partially Completed Project 347 Capital Projects Fund Project Information Sheets S6053 ACTIVITY Prior Years FY20-21 FY21-22 FY22-23 FY23-24 FY24-25 TOTAL Capital Projects -$ -$ -$ -$ -$ -$ -$ Grant 880,550 880,550 Downtown Strategy 693,231 700,000 1,393,231 General - Developer - Development Fees - Bonds - Other Sources - Unfunded - TOTAL 1,573,781$ 700,000$ -$ -$ -$ -$ 2,273,781$ ACTIVITY Prior Years FY20-21 FY21-22 FY22-23 FY23-24 FY24-25 TOTAL Acquisition -$ -$ -$ -$ -$ -$ -$ Planning - Design 349,399 349,399 Construction 1,224,382 700,000 1,924,382 Other Expenses - TOTAL 1,573,781$ 700,000$ -$ -$ -$ -$ 2,273,781$ FY20-21 FY21-22 FY22-23 FY23-24 FY24-25 TOTAL -$ -$ -$ -$ -$ -$ - - -$ -$ -$ -$ -$ -$ Other Impact TOTAL FUNDING SOURCES PROJECT EXPENSES OPERATING IMPACT ACTIVITY Salaries & Benefits Services & Supplies 348 Capital Projects Fund Project Information Sheets S6058 PROJECT TITLE: Shea Boulevard Widening - Palisades Boulevard to Technology Drive PROJECT NUMBER: S6058 PROJECT DESCRIPTION/SCOPE: Design Concept Report for the design and widening of Shea Boulevard to six lanes from Palisades Boulevard to Technology Drive. TOWN GOALS TIMEFRAME: FY19-21 YEAR PROJECT BEGAN: FY18-19 TOTAL ESTIMATED PROJECT COST: $130,000 PROJECT JUSTIFICATION: Shea Boulevard is a road of regional significance and has an average daily traffic volume of 26,000 vehicles at Palisades Boulevard. This project is a MAG Proposition 400 project which will provide for 70% of the project funding with a 30% match from the Town. The Design Concept Report will pro- vide for an updated scope of work and cost estimate. FUNDING PRIORITY: High - Leverage Local Funds 349 Capital Projects Fund Project Information Sheets S6058 ACTIVITY Prior Years FY20-21 FY21-22 FY22-23 FY23-24 FY24-25 TOTAL Capital Projects 31,500$ 7,500$ -$ -$ -$ -$ 39,000$ Grant 73,500 17,500 91,000 Downtown Strategy - General - Developer - Development Fees - Bonds - Other Sources - Unfunded - TOTAL 105,000$ 25,000$ -$ -$ -$ -$ 130,000$ ACTIVITY Prior Years FY20-21 FY21-22 FY22-23 FY23-24 FY24-25 TOTAL Acquisition -$ -$ -$ -$ -$ -$ -$ Planning 105,000 25,000 130,000 Design - Construction - Other Expenses - TOTAL 105,000$ 25,000$ -$ -$ -$ -$ 130,000$ FY20-21 FY21-22 FY22-23 FY23-24 FY24-25 TOTAL -$ -$ -$ -$ -$ -$ - - -$ -$ -$ -$ -$ -$ Other Impact TOTAL FUNDING SOURCES PROJECT EXPENSES OPERATING IMPACT ACTIVITY Salaries & Benefits Services & Supplies 350 PROJECT TITLE: Sidewalk Infill Program PROJECT NUMBER: S6061 PROJECT DESCRIPTION/SCOPE: Construct sidewalks to infill gaps between existing sidewalks; complete full street block sidewalk lengths; connect to existing pedestrian generators (including schools, parks, churches, and commer- cial areas), and for pedestrian safety (hazard removal, handicap accessibility, curb ramp upgrades, and along arterial streets). Specific project locations will be submitted annually by staff for Town Council consideration. TOWN GOALS TIMEFRAME: FY18-24 YEAR PROJECT BEGAN: FY18-19 TOTAL ESTIMATED PROJECT COST: $1,000,000 PROJECT JUSTIFICATION: Most pre-incorporation areas within the Town were constructed without any sidewalks, requiring pe- destrians to walk in the street. Increased roadway traffic has created safety hazards; and increased pedestrian usage has intensified the hazards. Town funds may be used as matching funds for future sidewalk grant application(s), when available. Some of the funds may be utilized for survey and/or design work, when needed. FUNDING PRIORITY: High - Finishes a Partially Completed Project Capital Projects Fund Project Information Sheets S6061 351 Capital Projects Fund Project Information Sheets S6061 ACTIVITY Prior Years FY20-21 FY21-22 FY22-23 FY23-24 FY24-25 TOTAL Capital Projects 97,036$ 200,000$ 200,000$ 200,000$ 150,000$ -$ 847,036$ Grant - Downtown Strategy - General - Developer - Development Fees - Bonds - Other Sources 150,103 150,103 Unfunded - TOTAL 247,139$ 200,000$ 200,000$ 200,000$ 150,000$ -$ 997,139$ ACTIVITY Prior Years FY20-21 FY21-22 FY22-23 FY23-24 FY24-25 TOTAL Acquisition -$ -$ -$ -$ -$ -$ -$ Planning - - Design - Construction 247,139 200,000 200,000 200,000 150,000 997,139 Other Expenses - TOTAL 247,139$ 200,000$ 200,000$ 200,000$ 150,000$ -$ 997,139$ FY20-21 FY21-22 FY22-23 FY23-24 FY24-25 TOTAL -$ -$ -$ -$ -$ -$ 2,000 2,000 2,000 2,000 2,000 10,000 - 2,000$ 2,000$ 2,000$ 2,000$ 2,000$ 10,000$ Other Impact TOTAL FUNDING SOURCES PROJECT EXPENSES OPERATING IMPACT ACTIVITY Salaries & Benefits Services & Supplies 352 PROJECT TITLE: Avenue of the Fountains/Verde River Intersection Im- provements PROJECT NUMBER: S6062 PROJECT DESCRIPTION/SCOPE: Install curbing and landscape improvements. TOWN GOALS TIMEFRAME: FY19-21 YEAR PROJECT BEGAN: FY19-20 TOTAL ESTIMATED PROJECT COST: $82,630 PROJECT JUSTIFICATION: The AOTF and Verde River Intersection has seen an increase in vehicle and pedestrian traffic. A traf- fic engineering study determined an all way Stop-using LED flashing Stop signs and adding cross- walks to connect the East and West segments of the Park would provide additional safety measures for pedestrian and vehicle traffic. FUNDING PRIORITY: High - Protects Health & Safety of the Town Capital Projects Fund Project Information Sheets S6062 353 Capital Projects Fund Project Information Sheets S6062 ACTIVITY Prior Years FY20-21 FY21-22 FY22-23 FY23-24 FY24-25 TOTAL Capital Projects -$ -$ -$ -$ -$ -$ -$ Grant - Downtown Strategy 7,630 75,000 82,630 General - Developer - Development Fees - Bonds - Other Sources - Unfunded - TOTAL 7,630$ 75,000$ -$ -$ -$ -$ 82,630$ ACTIVITY Prior Years FY20-21 FY21-22 FY22-23 FY23-24 FY24-25 TOTAL Acquisition -$ -$ -$ -$ -$ -$ -$ Planning - - Design 7,630 7,630 Construction 75,000 75,000 Other Expenses - TOTAL 7,630$ 75,000$ -$ -$ -$ -$ 82,630$ FY20-21 FY21-22 FY22-23 FY23-24 FY24-25 TOTAL -$ -$ -$ -$ -$ -$ 2,500 2,500 2,500 2,500 10,000 - -$ 2,500$ 2,500$ 2,500$ 2,500$ 10,000$ Other Impact TOTAL FUNDING SOURCES PROJECT EXPENSES OPERATING IMPACT ACTIVITY Salaries & Benefits Services & Supplies 354 Capital Projects Fund Project Information Sheets S6063 PROJECT TITLE: Palisades Median Landscape Improvements PROJECT NUMBER: S6063 PROJECT DESCRIPTION/SCOPE: This project will provide the reconstruction of the medians on Palisades Blvd from Golden Eagle to Shea Blvd. New irrigation lines, line of sight issues and the removal/installation of new ground cover will enhance the look from the current natural state to a maintained appearance. TOWN GOALS TIMEFRAME: FY20-22 YEAR PROJECT BEGAN: FY20-21 TOTAL ESTIMATED PROJECT COST: $300,000 PROJECT JUSTIFICATION: The current condition of the medians in this section are in a natural state leaving broken irrigation lines, line of sight issues for motorists and unsightly sporadic over-sized landscape rock throughout these sections of medians. FUNDING PRIORITY: Low - Provides an Expanded Level of Service 355 Capital Projects Fund Project Information Sheets S6063 ACTIVITY Prior Years FY20-21 FY21-22 FY22-23 FY23-24 FY24-25 TOTAL Capital Projects -$ -$ -$ -$ -$ -$ -$ Grant - Downtown Strategy - General - Developer - Development Fees - Bonds - Other Sources - Unfunded 150,000 150,000 300,000 TOTAL -$ 150,000$ 150,000$ -$ -$ -$ 300,000$ ACTIVITY Prior Years FY20-21 FY21-22 FY22-23 FY23-24 FY24-25 TOTAL Acquisition -$ -$ -$ -$ -$ -$ -$ Planning - - Design 20,000 20,000 Construction 130,000 150,000 280,000 Other Expenses - TOTAL -$ 150,000$ 150,000$ -$ -$ -$ 300,000$ FY20-21 FY21-22 FY22-23 FY23-24 FY24-25 TOTAL -$ -$ -$ -$ -$ -$ 7,000 7,000 7,000 7,000 28,000 - -$ 7,000$ 7,000$ 7,000$ 7,000$ 28,000$ Other Impact TOTAL FUNDING SOURCES PROJECT EXPENSES OPERATING IMPACT ACTIVITY Salaries & Benefits Services & Supplies 356 Capital Projects Fund Project Information Sheets S6064 PROJECT TITLE: Desert Vista Park Crosswalk PROJECT NUMBER: S6064 PROJECT DESCRIPTION/SCOPE: Installation of a crosswalk across Saguaro Blvd to allow for pedestrian access to Desert Vista Park. TOWN GOALS TIMEFRAME: FY20-22 YEAR PROJECT BEGAN: FY20-21 TOTAL ESTIMATED PROJECT COST: $280,000 PROJECT JUSTIFICATION: Desert Vista Park currently has no pedestrian access. As it is located in an industrial area, there are very few homes that can access the park without a vehicle. Currently there are no crosswalks be- tween Shea Blvd and El Lago Blvd to allow residents west of Saguaro to access the park. (Roughly three miles) An added crosswalk would allow for increased usage for all ages as well as provide a safe crossing point. FUNDING PRIORITY: Medium - Results in Increased Efficiency 357 Capital Projects Fund Project Information Sheets S6064 ACTIVITY Prior Years FY20-21 FY21-22 FY22-23 FY23-24 FY24-25 TOTAL Capital Projects -$ 100,000$ 180,000$ -$ -$ -$ 280,000$ Grant - Downtown Strategy - General - Developer - Development Fees - Bonds - Other Sources - Unfunded - TOTAL -$ 100,000$ 180,000$ -$ -$ -$ 280,000$ ACTIVITY Prior Years FY20-21 FY21-22 FY22-23 FY23-24 FY24-25 TOTAL Acquisition -$ -$ -$ -$ -$ -$ -$ Planning - - Design 50,000 50,000 Construction 50,000 180,000 230,000 Other Expenses - TOTAL -$ 100,000$ 180,000$ -$ -$ -$ 280,000$ FY20-21 FY21-22 FY22-23 FY23-24 FY24-25 TOTAL -$ -$ -$ -$ -$ -$ - - -$ -$ -$ -$ -$ -$ Other Impact TOTAL FUNDING SOURCES PROJECT EXPENSES OPERATING IMPACT ACTIVITY Salaries & Benefits Services & Supplies 358 Capital Projects Fund Project Information Sheets T5005 PROJECT TITLE: Palisades Boulevard and Eagle Ridge/Palomino Drive Traffic Signal PROJECT NUMBER: T5005 PROJECT DESCRIPTION/SCOPE: Provide for design and construction of a traffic signal at the intersection of Palisades Boulevard and Eagle Ridge Drive/Palomino Drive. TOWN GOALS TIMEFRAME: FY21-22 YEAR PROJECT BEGAN: FY19-20 TOTAL ESTIMATED PROJECT COST: $550,000 PROJECT JUSTIFICATION: With the Adero Canyon development and anticipated expansion of the CopperWynd Resort on Eagle Ridge Drive, traffic signal warrants at the intersection of Palisades Boulevard and Eagle Ridge Drive/ Palomino Drive are anticipated to be met based on the CopperWynd Resort traffic study. Once traffic signal warrants are met, the design and construction of a traffic signal at the intersection will provide for a more efficient flow of traffic. FUNDING PRIORITY: Medium - Results in Increased Efficiency 359 Capital Projects Fund Project Information Sheets T5005 ACTIVITY Prior Years FY20-21 FY21-22 FY22-23 FY23-24 FY24-25 TOTAL Capital Projects -$ 50,000$ -$ -$ -$ 50,000$ Grant - Downtown Strategy - General - Developer - Development Fees - Bonds - Other Sources - Unfunded 500,000 500,000 TOTAL -$ 50,000$ 500,000$ -$ -$ -$ 550,000$ ACTIVITY Prior Years FY20-21 FY21-22 FY22-23 FY23-24 FY24-25 TOTAL Acquisition -$ -$ -$ -$ -$ -$ -$ Planning - Design 50,000 50,000 Construction 500,000 500,000 Other Expenses - TOTAL -$ 50,000$ 500,000$ -$ -$ -$ 550,000$ FY20-21 FY21-22 FY22-23 FY23-24 FY24-25 TOTAL -$ -$ -$ -$ -$ -$ 5,000 5,000 5,000 5,000 20,000 - -$ 5,000$ 5,000$ 5,000$ 5,000$ 20,000$ Other Impact TOTAL FUNDING SOURCES PROJECT EXPENSES OPERATING IMPACT ACTIVITY Salaries & Benefits Services & Supplies 360 361 Internal Service Funds Facilities Replacement Fund Technology Replacement Fund Vehicle Replacement Fund Internal Service Funds 362 Facilities Replacement Fund Public Works Department Facilities Maintenance Division Facilities Replacement Fund Service Delivery Plan The Facilities Replacement Fund has been established to cover replacement costs for large scale items that cannot be absorbed in annual operating budgets. These items include, but are not limited to, roofing, interior and exterior building paint- ing, carpet replacement, physical plant mechanical equipment, Fire Department equipment and parks and recreation structures. Program Name FY17-18 Actual FY18-19 Actual FY19-20 Revised Budget FY20-21 Proposed Budget Administration 163,759$ 437,028$ 819,144$ 819,144$ Total 163,759$ 437,028$ 819,144$ 819,144$ Expenditures by Program Category FY17-18 Actual FY18-19 Actual FY19-20 Revised Budget FY20-21 Proposed Budget Maintenance & Repair -$ -$ 206,690$ 206,690$ Equipment/Improvements 163,759 437,028 278,243 278,243 Reserves - - 334,211 334,211 Total 163,759$ 437,028$ 819,144$ 819,144$ Expenditures by Category Program Name FY17-18 Actual FY18-19 Actual FY19-20 Revised Budget FY20-21 Proposed Budget Total Revenues 22,675$ 48,011$ 7,200$ 7,200$ Total Expenses 163,759 437,028 819,144 819,144 Total $ (141,084) $ (389,017) $ (811,944) $ (811,944) Operating Results 363 Facilities Replacement Fund Public Works Department Facilities Maintenance Division Reserves 41% Equipment/Improvements 34% Maintenance & Repair 25% Use of Funds -Facilities Replacement -By Category Where does the money go? Total Proposed Budget = $819,144 Description FY17-18 Actual FY18-19 Actual FY19-20 Revised Budget FY20-21 Proposed Budget Facilities Replacement Fund HVAC Repair -$ -$ 10,000$ 10,000$ Painting - - 196,690 196,690 Equipment - 195,956 41,200 41,200 Park Improvements 163,759 241,072 237,043 237,043 Reserves - - 334,211 334,211 Total Facilities Replacement Fund 163,759$ 437,028$ 819,144$ 819,144$ FY20-21 Proposed Budget Summary of Expenditures Facilities Replacement Fund 364 Technology Replacement Fund Administration Department Internal Service Division Technology Replacement Fund Service Delivery Plan The Technology Replacement Fund has been established to cover replacement costs for large scale items that cannot be absorbed in annual operating budgets. These items include, but are not limited to, printers, servers, plotters, work- stations, phones and phone system, and audio video equipment. Program Name FY17-18 Actual FY18-19 Actual FY19-20 Revised Budget FY20-21 Proposed Budget Operational Support -$ -$ -$ 25,000$ Total -$ -$ -$ 25,000$ Expenditures by Program Category FY17-18 Actual FY18-19 Actual FY19-20 Revised Budget FY20-21 Proposed Budget Equipment/Improvements -$ -$ -$ 20,000$ Reserves - - - 5,000 Total -$ -$ -$ 25,000$ Expenditures by Category 365 Vehicle Replacement Program Vehicle Replacement Program 366 Vehicle Replacement Program (VRP) Policy and Procedures Objective To provide a policy and procedures for the development and implementation of the Town of Fountain Hills’ multi-year Vehicle Replacement Program (VRP). Scope This policy applies to all vehicles owned by the Town of Fountain Hills that meet the definition detailed in the Definitions section. Policy The purpose of the Vehicle Replacement Program is to provide an authoritative de- cision-making process for the evaluation, selection, and multi-year scheduling of vehicle replacements based on a projection of available fiscal resources and the vehicle’s age, mileage, engine hours and repair costs. The objectives of the pro- gram are to: a) Ensure the timely purchase, repair and replacement of the Town’s vehi- cles; b) Serve as a link in the Town’s planning between the Town’s operating and capital budgets; c) Maintain control over the Town’s long-term cash flow in relation to the Town's financial capacity; and d) Ensure efficient, effective and coordinated vehicle acquisition and re- placement. Definitions The following words, when used in connection with this policy, shall have the fol- lowing meanings: VEHICLE REPLACEMENT PROGRAM: A multi-year planning document that is the product of a systematic evaluation of vehicle utilization, repair and maintenance. This plan serves as a guide for the efficient and effective replacement of vehicles, outlining a detailed timeline and financing schedule of vehicle replacement. VEHICLE: A vehicle is defined in financial terms as a piece of rolling stock with a projected final cost of at least $10,000, or $1,000 if maintained as a stewardship item, and a useful life of at least 7 years. Vehicles shall be subdivided into various classifications, using gross vehicle weight rating standards (GVWR) when appropri- ate, as follows (listed alphabetically):  Gator or Similar  Heavy Duty Trucks (commercial truck classes 7 and 8: over 26,000 GVWR (includes Dump Trucks)  Ladder Trucks  Light Duty Trucks (commercial truck classes 1, 2 and 3: 0 – 14,000 lb. GVWR)  Medium Duty Trucks (commercial truck classes 4, 5 and 6: 14,001 – 26,000 GVWR)  Pumper Trucks  Sedans Vehicle Replacement Program Policy & Procedures 367  Small Utility Equipment (includes Bunker Rakes)  Street Sweepers  SUV (Sports Utility Vehicles)  Tractors/Loaders (includes Backhoes and Graders)  Trailers Process A. Schedule: Annually, the Public Works Director and Finance Director will submit an updated VRP to the Town Manager for review in each fiscal year. The Town Manager will review the proposal and forward the approved VRP to the Finance Director for inclusion in the Town’s budget proposal. B. Format: The Public Works Director will utilize the previous year's ap- proved VRP as the base for developing recommended additions, deletions, or changes for incorporation in the updated VRP for the coming year. All new (not replacement) vehicle requests will also include a comprehensive estimate of the impact of the new vehicle on the Town's annual operating budget; e.g., fuel, maintenance requirements, etc. C. Finance Review: The Finance Director will assist the Public Works Director as necessary in all facets of the Vehicle Replacement Program development and review including production of cost estimates, as well as an overall fi- nancial analysis of the proposed program. Additional assistance may be re- quested to help produce draft documents, etc. D. Town Manager Review: The Public Works Director will provide a copy of the proposed VRP document to the Finance Director and Town Manager for review and comment. Following approval by the Town Manager the VRP will be incorporated into the budget proposal for the coming year. E. Implementation: Upon adoption of the VRP in the operating budget, vehi- cles included within the applicable budget year may be purchased by the Public Works Director, or his/her designee, in compliance with the Town’s Procurement Policy. F. Amendments: The adopted VRP may be amended upon recommendation of the Public Works Director and approval of the Town Manager and Town Council. Procedure A. Form: A New Vehicle Request form shall be utilized to request inclusion of a new (not replacement) vehicle in the Vehicle Replacement Program. De- partment Directors may request the addition of a new vehicle or transfer be- tween departments to the VRP by submitting their request to the Public Works Director as part of the budget process. The Public Works Director shall include these requests in the VRP that is submitted to the Finance Director and Town Manager. B. Funding Prioritization: As part of the VRP development process, the Public Works Director shall create vehicle replacement priorities to help determine the vehicle replacement schedule which will be incorporated in the upcoming fiscal year budget. Vehicle Replacement Program Policy & Procedures 368 The following guidelines shall be utilized (listed alphabetically):  Gator or Similar 7 years/15,000 hours  Heavy Duty Trucks 15 years/125,000 miles  Ladder Trucks 15 years/120,000 miles  Light Duty Trucks 10 years/100,000 miles  Medium Duty Trucks 12 years/125,000 miles  Pumper Trucks 15 years/120,000 miles  Sedans 10 years/100,000 miles  Small Utility Equipment 7 years/15,000 engine hours  Sweepers 8 years/75,000 miles  SUV (Sports Utility Vehicles) 10 years/100,000 miles  Tractors/Loaders 20 years/15,000 engine hours  Trailers 10 years In addition to the factors listed previously, the Public Works Director, or his/ her designee, shall also review the utilization, maintenance records of the vehicles, downtime and the overall condition of the vehicles when making recommendations for replacement. C. Funding Sources: The primary funding sources for the VRP are the Gen- eral Fund and Streets (HURF) Fund. Revenues for the Vehicle Replacement Fund will also be generated from charges within the operating funds that support the departments that utilize the subject vehicles; charges will be calculated based on replacement cost and updated annually. Vehicles will be replaced according to the schedule and based on model year. Surplus sale proceeds and insurance claim proceeds will also be deposited to the Vehicle Replacement Fund to help offset future vehicle costs. D. Vehicle Disposal: At least once annually, the Public Works Director, or his/her designee, shall prepare a list of vehicles to be retired from the Town’s fleet based on the replacement schedule. At the discretion of the Public Works Director and based on a recommendation from the fleet me- chanic, early retirement of a vehicle with excessive maintenance may be recommended. Excessive maintenance is defined as repair costs that exceed 40% of the vehicle value in a twelve-month period. The Town Manager shall authorize the sales of these vehicles at auction by signing over the vehicle title(s). The Public Works Director, or his/her de- signee, shall then transport the vehicles to the auctioneer and shall be re- sponsible to insure that the auction proceeds are submitted to the Finance Division for deposit to the Vehicle Replacement Fund. Responsibility for Enforcement The Town Manager, Finance Director and Public Works Director will be responsible for ensuring that this policy is followed and/or updated as necessary. Fiscal Year 20-21 Vehicle Replacement Recommendation During FY12-13, the Vehicle Replacement Program was updated with changes to the life of some vehicles and elimination of vehicles no longer utilized; the revised Program was presented and approved by the Town Council. Therefore, for FY20-21, one new vehicle is budgeted for vehicle replacement incorporating the revised schedules. Vehicle Replacement Program Policy & Procedures 369 Vehicle Replacement Program Policy & Procedures Attachment A 370 Vehicle Replacement Fund Multiple Departments Internal Service Division ORG Vehicle No.Description Mod Year Replacement Cost FY20-21 DVSBS 164 Chevy Equinox 2017 $30,624 $3,062 DVSCODE 160 Ford F-150 2017 $34,828 $3,483 DVSCODE 157 Ford F-250 Supercab W/Lights 2014 $32,230 $3,223 FDOP 172-(E822)Spartan 2014 $665,724 $44,382 FDOP 173-(E823)Crimson 2008 $496,928 $33,129 FDOP 180-(E823)Rosenbauer Pumper 2020 $691,660 $46,111 FDOP 175-(S822)Ford F550 4x4 (V0822)2012 $121,640 $10,137 FDOP 171-(L822)Rosenbauer 2018 $1,266,278 $84,419 FDOP 174-(S823)Ford F550 4x4 2013 $48,418 $4,035 FDAD 176-(DC823)Ford F150 Supercab 2011 $35,142 $3,514 FDAD 177-(DC822)Ford F150 Supercab 2019 $69,240 $6,924 FPOP 21 Bobcat 2016 $14,858 $2,123 FPOP 162 Ford F-250 Pickup 2017 $36,373 $3,637 DVOP 25 Toro Workman GTX 07042 2019 $10,435 $1,491 DVOP 168 Ford F-150 Pickup 2018 $33,177 $3,318 4POP 23 Toro Workman GTX 07042 2019 $10,435 $1,491 4POP SS1 Tenant Sweeper 2013 $51,989 $6,499 GEPOP 26 Sand Pro 3040 2019 $21,475 $3,068 GEPOP 22 Toro Workman HDX 2019 $34,606 $4,944 GEPOP 24 Toro Workman GTX 07042 2019 $10,435 $1,491 GEPOP 14 Kubota KU 2007 $40,416 $2,021 GEPOP 159 Ford F-150 2016 $33,649 $3,365 GEPOP M-1 Kubota 2014 $19,243 $2,749 PKAD 169 Ford F-150 2018 $33,177 $3,318 CSAD 165 Chevy Equinox 2017 $30,624 $3,062 FACAD 158 Ford F-250 Pickup W/Liftgate 2014 $29,366 $2,937 PWADMIN 163 Chevy Colorado 2017 $34,485 $3,448 PWINSP 154 Ford F-150 Pickup W/Lights 2013 $33,270 $3,327 STAD 155 Ford F-250 Pickup W/Lights 2014 $29,314 $2,931 STOPEN 161 Ford F-150 2017 $38,728 $3,873 STPAVE 420F Caterpillar 420F Backhoe Loader 2019 $194,058 $9,703 STPAVE 179 Ford F-750 Dump Truck 2019 $112,805 $7,520 STSIGN 178 Ford F-250 w/Utility Bed 2019 $58,518 $4,877 STPAVE 27 Caterpillar Loader with Gannon 2020 $143,124 $7,156 STPAVE 28 Broce Broom 2020 $85,951 $10,744 STPAVE 156 Ford F-250 Pickup W/Lights 2014 $29,314 $2,931 STPAVE (5085M)John Deere 5085M Tractor 2013 $88,496 $4,425 STVEH 20 Bobcat 2013 $9,124 $0 GENAD 167 Chevy Impala 2017 $26,157 $2,616 GENAD 166 Chevy Equinox 2017 $30,624 $3,062 TOTAL $354,542 Vehicle Replacement Interfund Charges 371 Schedules Schedules 372 Comprehensive Fee Schedule Effective July 1, 2020 Comprehensive Fee Schedule Effective July 1, 2020 373 Comprehensive Fee Schedule Effective July 1, 2020 Description Proposed Fee FY20-21 MISCELLANEOUS FEES Services Notarization $2.00 per signature Affix Town Seal $2.00 each Faxing Service - Local Only $2.00 First Page, $.50 Each Additional Page Faxing Service - Long Distance $3.00 First Page, $.50 Each Additional Page Email Document Service $0.00 Returned Check Fee $30.00 Incoming Wire Transfer Fee $35.00 ActiveNet Transaction Fee $2.50 per transaction Convenience Fee - credit card payment $3.00 per transaction Art Commission 20% of selling price Campaign Fees Pro/Con Argument Fee $100.00 Campaign Finance - Late Filing Fee $10.00 per business day (per ARS 16-918) Copies - Non - Commercial Photocopies (B&W) 8 1/2 x 11 $.25 per page Photocopies (B&W) 8 1/2 x 14 $.30 per page Photocopies (B&W) 11 x 17 $.40 per page Photocopies (Color) 8 1/2 x 11 $.50 per page Photocopies (Color) 8 1/2 x 14 $.60 per page Photocopies (Color) 11 x 17 $.70 per page Copies - Commercial Photocopies (B&W) 8 1/2 x 11 $.50 per page Photocopies (B&W) 8 1/2 x 14 $.60 per page Photocopies (B&W) 11 x 17 $.80 per page Photocopies (Color) 8 1/2 x 11 $1.00 per page Photocopies (Color) 8 1/2 x 14 $1.20 per page Photocopies (Color) 11 x 17 $1.40 per page Documents (CD Only) Town Code $25.00 each Zoning Ordinances $25.00 each Subdivision Code $25.00 each CAFR (Annual Financial Report)$25.00 each Annual Budget $25.00 each Land Use Analysis $25.00 each Council Meeting $25.00 each Other Materials $25.00 each Reports License Report (Non - Commercial Use)$25.00 (CD or hard copy) License Report (Commercial Use)$50.00 (CD or hard copy) Adopt A Street Fee, per sign $30.00 374 Comprehensive Fee Schedule Effective July 1, 2020 Description Proposed Fee FY20-21 MISCELLANEOUS FEES (CONT.) Maps 8 1/2" x 11" (B&W)$0.50 8 1/2" x 11" (Color)$2.00 8 1/2" x 11" (Photo)$3.00 11" x 17" Street/Index Map "Typical" (B&W)$6.00 11" x 17" Street/Index Map "Typical" (Color)$8.00 11" x 17" Aerial Site Plan (Photo)$20.00 24" x 36" Custom Map (B&W)$20.00 24" x 36" Custom Map (Color)$30.00 36" x 36" Bldg/Plat/Zoning Map (B&W)$30.00 36" x 36" Bldg/Plat/Zoning Map (Color)$40.00 60" x 60" Street/Bldg/Develop/Plat/Plot (B&W) $50.00 60" x 60" Street/Bldg/Develop/Plat/Plot (Color) $80.00 Map Book $25.00 DOG LICENSE Non - neutered dog $0.00 Spayed/Neutered dog $0.00 Over 65 with neutered dog $0.00 Service Dog $0.00 Replacement Dog Tag $0.00 Late fee neutered dog (per month)$0.00 Late fee non - neutered dog (per month)$0.00 BUSINESS LICENSE FEES Providers of services, wholesalers and manufacturers with a fixed place of business within the town limits $50.00/application and first year fee - non-refundable Retail merchants, restaurants, bars, contractors and renters of real and personal property with a fixed place of business within the town limits and persons engaging in the sale of real estate $50.00/application and first year fee - non-refundable Wholesalers, manufacturers and providers of services without a fixed place of business within the town limits $50.00/application and first year fee - non-refundable Retail merchants, etc. (as above) without a fixed place of business within the town limits $50.00/application and first year fee - non-refundable Annual renewal fee for business within the town limits $35.00 - non-refundable Annual renewal fee for business without a fixed place of business within the town limits $50.00 - non-refundable Late fee for renewal of business license fee 25% of renewal fee Penalty for operating a business without a license $100.00 375 Comprehensive Fee Schedule Effective July 1, 2020 Description Proposed Fee FY20-21 BUSINESS LICENSE FEES (CONT.) Peddlers, solicitors and mobile merchants $250.00/calendar quarter or fraction thereof - non- refundable Peddler investigation fee (per person)$41.00 - non-refundable Promoters of entertainments, circuses, bazaars, etc., who receive a percentage of receipts or other consideration for their services. Each such promoter shall also obtain liability insurance of a minimum of $1 million naming the Town as insured. $100.00/week Animal Show $100.00/week Circus Parade Only $50.00/day Handbill Distributor $10.00/day Amusement Company, such as ferris wheel, merry - go - round, etc., not part of a circus. Tent Show. Wrestling Exhibition. Road Show, Carnival or Circus. $100.00/day Practice of palmistry, phrenology, astrology, fortune telling, mind reading, clairvoyancy, magic or any healing practices not licensed by the State of Arizona, or any similar calling without a fixed place of business $50.00/day Duplicate Business License $10.00 - non-refundable Verification of License Letter $10.00 - non-refundable First and second None Third $50.00 Fourth $75.00 Fifth and Sixth $100.00 Seventh or more $200.00 each License fee $25.00/annually - non-refundable Lease Agreement Application Fee, each location $250.00, per location - non-refundable Amendments to Cell Tower Lease Agreements $250.00, per location - non-refundable Small Cell Wireless Facilities: (all fees are non-refundable) ROW Use Fee $50.00/year x number of small wireless facilities (SWF)Authority utility pole attachment $50.00/year per utility pole attachment Small Wireless Facilities (SWF) collocation $100.00 per SWF up to five Small Wireless Facilities (SWF) collocation $50.00 for SWF over five Batched applications for up to 25 SWF's $100.00 per SWF up to five (at $100 each) ($500 maximum fee) Batched applications for up to 25 SWF's $50.00 per SWF 6 - 20 sites ($1,000 maximum fee) Applications for new, replacement or modified utility poles NOT subject to zoning review Not to Exceed $750.00 Applications for new, replacement or modified utility poles and collocation of wireless facilities subject to zoning review Not to Exceed $1,000.00 FALSE ALARM SERVICE CHARGES (PER CALENDAR YEAR) ALARM SYSTEM LICENSE PERMIT WIRELESS COMMUNICATIONS (CELL TOWER ON TOWN PROPERTY) 376 Comprehensive Fee Schedule Effective July 1, 2020 Description Proposed Fee FY20-21 SPECIAL EVENT PERMITS Special Event Permits - Food/Event Vendors Application Fee - Local (Fountain Hills) Business $100.00 - non-refundable Application Fee - Non-Local Business $350.00 - non-refundable Special Event Permits - Business Application Fee - Business (If submitted at least 60 days prior to the event date) $100.00 - non-refundable Application Fee - If submitted 59 days or less prior to the event date $300.00 - non-refundable Permit Fee $50.00 per day (not to exceed $400.00) Special Event Permits - Non-Profit Application Fee - Charitable Organization (If submitted at least 60 days prior to the event date) $50.00 - non-refundable Application Fee - If submitted 59 days or less prior to the event date $200.00 - non-refundable Permit Fee $25.00 per day (not to exceed $200.00) Special Event Permits - Extra Fees Special Event Liquor Application Fee See alcohol license application fees - non-refundable Utility Fees Actual cost of usage Park/Open Space Fees, including Amphitheater, Avenue of the Fountains Plaza, Great Lawn, Centennial Circle and other lawns - Event with less than 5,000 attendance $2,500.00/day Park/Open Space Fees, including Amphitheater, Avenue of the Fountains Plaza, Great Lawn, Centennial Circle and other lawns - Event with more than 5,000 attendance $3,500.00/day Special Event Permits - Deposit Fees Events with less than 1,000 attendance $500.00 Events with 1,000 - 1,999 attendance $1,000.00 Events with 2,000 - 5,000 attendance $2,500.00 Events with over 5,000 attendance $5,000.00 Special Event Permit Fees - Road Closure Admin Fees Events with less than 1,000 attendance $500.00 Events with 1,000 - 1,999 attendance $750.00 Events with 2,000 - 5,000 attendance $1,000.00 Events with over 5,000 attendance $1,500.00 Special Event Permit Fees - Vendor Compliance Fine First time penalty $250.00 Recurring penalty $750.00 Film permit application $50.00 non-refundable 377 Comprehensive Fee Schedule Effective July 1, 2020 Description Proposed Fee FY20-21 ALCOHOL LICENSE APPLICATION Person Transfer Fee $150.00 - non-refundable Location Transfer Fee $150.00 - non-refundable Probate/Will Assignment/Divorce Decree $150.00 - non-refundable Extension of Premise $50.00 - non-refundable Sampling Permit $50.00 - non-refundable Acquisition of Control/Restructure/Agent Change $100.00 - non-refundable Initial/Interim Application Fee 01 - In State Producer $500.00 - non-refundable 02 - Out of State Producer $500.00 - non-refundable 03 - Domestic Microbrewery $500.00 - non-refundable 04 - In State Wholesaler $500.00 - non-refundable 05 - Government $500.00 - non-refundable 06 - Bar, All Spirituous Liquors $500.00 - non-refundable 07 - Beer & Wine Bar $500.00 - non-refundable 08 - Conveyance $500.00 - non-refundable 09 - Liquor Store $500.00 - non-refundable 10 - Beer & Wine Store $500.00 - non-refundable 11 - Hotel/Motel $500.00 - non-refundable 12 - Restaurant $500.00 - non-refundable 13 - Domestic Farm Winery $500.00 - non-refundable 14 - Private Club 15 - Special Event $25.00 - non-refundable 16 - Wine Festival/Wine Fair $25.00 - non-refundable ADULT ORIENTED BUSINESS LICENSE Application Fee - Business $500.00 - non-refundable Application Fee - Provider $100.00 - non-refundable Application Fee - Manager $100.00 - non-refundable Application Fee - Employee (per person)$50.00 - non-refundable License Fee - annual - Business $200.00 - non-refundable License Fee - annual - Provider $100.00 - non-refundable License Fee - annual - Manager $100.00 - non-refundable CABLE LICENSE Initial License Application $2,500.00 - non-refundable Transfer of ownership $2,000.00 - non-refundable License modification, pursuant to 47 USC Sec 545 $2,500.00 - non-refundable Other License modification up to $2000.00 - non-refundable License fee - quarterly 5% of gross receipts Late fee (after 30 days)5% plus interest of 1 1/2% per month 378 Comprehensive Fee Schedule Effective July 1, 2020 Description Proposed Fee FY20-21 EXCAVATIONS/IN - LIEU FEES Base fee (per excavation)$250.00 plus: Trench cut fees: Newly paved or overlayed 0 - 1 yrs.$55.00 per lineal feet Newly paved or overlayed 1 - 2 yrs.$45.00 per lineal feet Newly paved or overlayed 2 - 3 yrs.$35.00 per lineal feet Newly paved or overlayed 3 - 4 yrs.$25.00 per lineal feet Newly paved or overlayed 4 - 5 yrs.$15.00 per lineal feet Newly paved or overlayed 5 - 6 yrs.$10.00 per lineal feet Slurry or chip sealed 0 - 2 years $4.00 per lineal feet Pavement replacement greater than 300 feet in length $2.50 per square yard Utility Pit fees: Newly paved or overlayed 0 - 1 yrs.$5.00 per square feet Newly paved or overlayed 1 - 2 yrs.$4.50 per square feet Newly paved or overlayed 2 - 3 yrs.$3.50 per square feet Newly paved or overlayed 3 - 4 yrs.$2.50 per square feet Newly paved or overlayed 4 - 5 yrs.$1.50 per square feet Newly paved or overlayed 5 - 6 yrs.$1.00 per square feet Slurry or chip sealed 0 - 2 years $5.00 per square feet Adjustment (MH, valve, monument, etc.)$500.00 each Striping $.55 per linear feet Lane Markers $150.00 each Stop Bars $2.50 per square feet Crosswalks $.79 per square feet RPMs $7.00 each Seal-Coat $2.00 per square yard ENCROACHMENT/ENGINEERING PERMITS Base Permit Fee $70.00 - non-refundable 2"/6" Paving A.C.$.35 per square yard 1" Paving - Overlay or Top Course $.15 per square yard 1" ABC or Select Subbase $.05 per square yard Permanent Barricading $25.00 each Guard Rail/Hand Rail $.20 per linear feet Survey Monuments $10.00 each Concrete Aprons $15.00 each Scuppers $15.00 each Review for Adjustments MH, etc.$10.00 each 4" Paving - PC Concrete $.22 per square yard Decorative Sidewalk or Paving $.30 per linear feet Sidewalk & Bike path $.30 per linear feet Curb & Gutter $.20 per linear feet Valley Gutter $.50 per linear feet Sign (regulator, street etc.)$5.00 each Pavement Cuts $2.00 per linear feet Driveway/Driveway Modifications $30.00 each Utility, Water Line, Sewer Line Trench $.15 per linear feet Drywells (maxwell or similar)$100.00 each Storm Drain Pipe $2.00 per linear feet Catch Basins, Headwells $50.00 each 379 Comprehensive Fee Schedule Effective July 1, 2020 Description Proposed Fee FY20-21 ENCROACHMENT/ENGINEERING PERMITS (CONT.) Cutoff Walls $.35 per linear feet Slope Protection $.30 per square yard Rip Rap $.90 square feet Retaining Wall $1.53 per linear feet Cut/Fill (Materials Moved)$.40 per cubic yard Box Culverts 5% of attached estimate Miscellaneous 5% of attached estimate Landscaping 5% of attached estimate Irrigation 5% of attached estimate Lighting 5% of attached estimate Grading 5% of attached estimate Utility Splice/Repair Pits (outside pvmt)$2.00 square feet (minimum $50.00) Other 5% of attached estimate In Lieu Payments Calculated for cuts greater than 300 feet in length - per MAG section 336 Traffic Control Plan Review $200.00 Engineering Plan Review Fee $350.00 per sheet Failure to obtain an Encroachment Permit $200.00 Failure to obtain a Final Inspection $100.00 Reinspection Fee $150.00 Investigation Fee for Work Done Without Permit $250.00 or the permit fee, whichever is greater, but not to exceed $2,500.00 for every day or a portion of a day from the time unpermitted work began until a permit is obtained. Oversize/Overweight Vehicle Permit $210.00 Haul Route Permit (greater than or equal to 500 cubic yards) $210.00 Failure to barricade or improper barricading Up to $1,000.00 Permit Extension $50.00 Penalty for work w/o permit 50% of Permit Fee Minimum Plan Review $70.00 per hour (1 - hour Minimum) ENVIRONMENTAL FEE Environmental fee: per residential solid waste account $3.00 per month per parcel; billed $36.00 annually per multifamily solid waste account (with a range for number of units to be determined commercial solid waste accounts (license fee and/or cost per commercial account) to be determined late fee for paying the environmental fee $5.00 per month up to a maximum of $35. 380 Comprehensive Fee Schedule Effective July 1, 2020 Description Proposed Fee FY20-21 DEVELOPMENT SERVICES FEES Easement or Right-of-Way Abandonment $350.00 Hillside Protection Reconfiguration and/or Replacement of Hillside Protection Easement $350.00 Revocation Administrative Fee $300.00 Engineering Plan Review Fee $350.00 per sheet Final Plat Improvement: Plan Checking $350.00 per sheet (includes 2nd and 3rd reviews) Except water and sewer plans $175.00 per sheet (includes 2nd and 3rd reviews) Water and sewer plans only $200.00 per sheet with corrections (4th+ reviews); $75.00 per sheet for addendums (changes made afeeter approval). Engineering Report/Calculations Review Fee (Drainage, Environmental, Traffic, Structural, Water, Sewer, etc.) $350.00 per report New/Address Change $25.00 DEVELOPMENT FEES Single Family Residential $3,974.00 Multi - Family Residential $2537.00/dwelling Commercial $3.82/square feet Office $2.45/square feet Institutional $2.86/square feet Industrial $1.29/square feet Fee Detail (From Above) Park & Recreation Single Family $1,916.00 Multi - Family $1,479.00 Commercial $0.81/square feet Office $1.03/square feet Institutional $0.32/square feet Industrial $0.56/square feet Fire and Emergency Single Family $122.00 Multi - Family $94.00 Commercial $0.14/square feet Office $0.18/square feet Institutional $0.06/square feet Industrial $0.10/square feet Streets Single Family $1,935.00 Multi - Family $964.00 Commercial $2.86/square feet Office $1.24/square feet Institutional $2.48/square feet Industrial $0.63/square feet 381 Comprehensive Fee Schedule Effective July 1, 2020 Description Proposed Fee FY20-21 PLANNING & ZONING FEES Administrative Use Permit/Grand Opening Sign $25.00 Appeal of a Decision by the Zoning Administrator $1,000.00 plus notification *^ Area Specific Plans and amendments $3,000.00 plus $ 100.00 per acre ^ Comprehensive Sign Plans and amendments $200.00 Commercial/Industrial/Multi-Family Site Plan Review $500.00 plus $200.00 for every 5,000 square feet or portion thereof ^ Condominium Plats $1,500.00 plus $50.00 per unit ^ Continuance at Applicant Request $250.00 Cut & Fill Waiver $300.00 Development Agreements $5,000.00 plus $100 per acre or portion thereof Development Agreements - Amendment $5,000.00 Final Plats $1,500.00 plus $ 50.00 per lot, unit or tract ^ General Plan Amendments Minor $ 3,000.00 plus $ 100.00 per acre ^ Major $ 5,000.00 plus $ 100.00 per acre ^ Hillside Protection Easement (HPE)$20.00 + applicable recording fees Land Disturbance Fee $10.00 per square feet plus revegetation Landscape Plan Review $420.00 plus $ 2,500.00 refundable deposit ** Public notice in Newspaper actual newspaper posting cost plus $10.00 processing Notification fee $5.00 per mailing label plus actual newspaper posting cost plus $10.00 processing. Ordinances (Text Amendments)$2,000.00 plus notification * Planned Area Developments (PAD)$2,000.00 plus $100.00 per acre or portion thereof plus notification * Planned Area Developments (PAD) - Amendment $2,000.00 Planned Unit Developments (PUD)$2,000.00 plus $100.00 per acre or portion thereof plus notification * Planned Unit Developments (PUD) - Amendment $2,000.00 Plat Abandonments $500.00 ^ Preliminary Plats $2,000.00 plus $50.00 per lot, unit or tract^ Recording Fees (subject to change without notice) $10.00 plus actual cost Replats (lot joins, lot divisions, lot line adjustments) $500.00 up to three lots, more than 3 lots use Final Plat fees ^ Rezones (Map)$2,000.00 plus $100.00 per acre or portion thereof plus notification *^ Saguaro Cactus Permit $90.00 Special Use Permits and amendments $500.00 plus notification *^ - non-refundable Temporary Use Permits $200.00 plus notification * - non-refundable Temporary Visitor Permit (RV Parking):$25.00 Time Extension Fee $100.00 Tract Housing $500.00 per Standard Plan + $100 per House Façade VariantVariances$1,000.00 plus $300.00 for each additional variance plus notification *^Zoning Verification Letter $200.00 *$5.00 per mailing label plus actual newspaper posting cost plus $10.00 processing. **Deposit required for Certificate of Occupancy (C of O) if landscaping is not installed; refundable upon landscaping approval by Town within six (6) months. ^All fees include up to 3 reviews by staff. Any additional reviews will be subject to an additional fee equal to 25% of the original fee. The "recording fee" is per Maricopa County's Fee Schedule and is, therefore, subject to change. 382 Comprehensive Fee Schedule Effective July 1, 2020 Description Proposed Fee FY20-21 Livable Area with A/C $.75 square feet Covered Area: Garage and/or Patio (non A/C)$.45 square feet Single Family Addition $.75 square feet Area non A/C $.45 square feet Single Family Remodel $.23 square feet Area non A/C $.14 square feet Solar Photovoltaic $140.00 Fence Walls $70.00 plus $.15 LF (Linear Footage) Retaining Walls $70.00 plus $1.53 LF (Linear Footage) Pools & Spas Attached $290.00 plus $.90 square feet Stand Alone Spas $235.00 Landscape Plan Review $420.00 plus $ 2,500.00 refundable deposit ** One Discipline Permit $70.00 (building, plumbing, electrical or mechanical) Combination Permit $210.00 Miscellaneous Plan Review Minimum Plan Review $70.00 per hour (1 - hour Minimum) Revisions to Approved Plans $70.00 per hour (1 - hour Minimum) Plumbing - Water heater replacement/solar (minor) $70.00 Mechanical - HVAC replacement (minor)$70.00 Electrical - panel repair (minor)$70.00 Demolition (minor)$120.00 Plan Review Add On (Afeeter 3rd Review)50% of Bldg Permit/Plan Review Fee Reinspection Fee $150.00 per Trip Plan copies 24x36 $3.00 per page - B&W $5.00 per page - Color Permit Extensions - Residential new construction only (If Town has all records and $400.00 Permit Extensions - Residential remodel only (If Town has all records and within current Code cycle) $100.00 Refund for cancelled Single Family Home permit 35% of building permit fee paid - request must be made within 180 days of original payment Penalty for failure to obtain a building permit 50% of Bldg Permit/Plan Review Fee BUILDING PERMIT/PLAN CHECK – SINGLE FAMILY RESIDENTIAL Single Family Homes (Includes Permit and Plan Review) Specialized Permits (Includes Permit and Plan Review) Miscellaneous Permits (Plan Review Fee Extra) Over the Counter Permits (No Plan Review Fee Required) 383 Comprehensive Fee Schedule Effective July 1, 2020 Description Proposed Fee FY20-21 Area with A/C $.75 square feet Covered Area (non A/C)$.45 square feet Commercial Building Addition Area with A/C $.75 square feet Covered Area (non - A/C)$.45 square feet Commercial Remodel (Existing) Area with A/C $145.00 plus $.23 square feet Covered Area (non - A/C)$145.00 plus $.14 square feet Shell Only for Commercial & Multi - Family Area with A/C $205.00 plus $.50 square feet Covered Area (non – A/C)$70.00 plus $.45 square feet Commercial Tenant Improvement Area with A/C $145.00 plus $.23 square feet Covered Area (non - A/C)$145.00 plus $.14 square feet Apartments/Condominiums Livable Area with A/C $.75 square feet Covered Area (non - A/C)$.45 square feet Livable Area with A/C $.60 square feet Covered Area (non - A/C)$.37 square feet Livable Area with A/C $.53 square feet Covered Area (non - A/C)$.33 square feet Solar Photovoltaic $140.00 Fence Walls $70.00 plus $.15 Lf (Linear Footage) Retaining Walls $70.00 plus $1.53 LF (Linear Footage) Pools & Spas Attached $290.00 plus $.90 square feet Stand Alone Spas $235.00 Landscape Plan Review $420.00 plus $ 2,500.00 refundable deposit ** Specialized Permits (Includes Permit and Plan Review) BUILDING PERMIT/PLAN CHECK - COMMERCIAL Commercial Building Permit (Includes Permit and Plan Review) Apartments/Condominiums with 4 or more units & recurring floor plans (0 -100,000 livable square feet) Apartments/Condominiums with 4 or more units & recurring floor plans (Over 100,000 livable square **Deposit required for Certificate of Occupancy (C of O) if landscaping is not installed; refundable upon landscaping approval by Town within six (6) months. 384 Comprehensive Fee Schedule Effective July 1, 2020 Description Proposed Fee FY20-21 Minimum Permit (one discipline)$70.00 (or $210.00 for building, plumbing, electrical and mechanical) Minimum Combination (all disciplines)$210.00 Sign Permit, less than 32 square feet (Face Replacement Only) $50.00 per sign Sign Permit, greater than 32 square feet (Face Replacement Only) $100.00 per sign Sign Permit, less than 32 square feet (New)$190.00 per sign Sign Permit, greater than 32 square feet (New)$240.00 per sign Miscellaneous Plan Review Minimum Plan Review $70.00 per hour (1 - hour Minimum) Revisions to Approved Plans $70.00 per hour (1 - hour Minimum) Plumbing - Water heater replacement/solar (minor) $70.00 Mechanical - HVAC replacement (minor)$70.00 Electrical - panel repair (minor)$70.00 Demolition (minor)$120.00 Plan Review Add On (Afeeter 3rd Review) 50% of Bldg Permit/Plan Review Fee Reinspection Fee $150.00 per trip Permit Extensions - Commercial new construction only (If Town has all records and within current Code cycle) $400.00 Permit Extensions - Commercial remodel only (If Town has all records and within current Code cycle) $100.00 Penalty for failure to obtain a building permit 50% of Bldg Permit/Plan Review Fee Refund for cancelled Commercial Building permit (must be done in writing) 35% of building permit fee paid - request must be made within 180 days of original payment Appeal of Decision by Building Official/Fire Marshall $1,000.00 plus notification *^ BUILDING PERMIT/PLAN CHECK – COMMERCIAL (CONT.) Miscellaneous Permits (Plan Review Fee is Separate) Over the Counter Permits (No Plan Review Fee Required) *$5.00 per mailing label plus actual newspaper posting cost plus $10.00 processing. ^All fees include up to 3 reviews by staff. Any additional reviews will be subject to an additional fee equal to 25% of the original fee. The "recording fee" is per Maricopa County's Fee Schedule and is, therefore, subject to change. 385 Comprehensive Fee Schedule Effective July 1, 2020 Description Proposed Fee FY20-21 FIRE SAFETY FEES Residential Automatic Sprinkler System Plan Review/Inspection $.05 square feet (minimum $25.00) Commercial Automatic Sprinkler System Plan Review/Inspection $.10 square feet (minimum $50.00) Commercial Auto Sprinkler System Modification Plan Review/Inspection $75.00 Commercial Hood System Plan Review/Inspection $100.00 Commercial Fire Alarm System Plan Review/Inspection $100.00 Commercial Fire Alarm System Modification Plan Review/Inspection $50.00 Residential LPG Installation Review/Inspection $50.00 Annual Adult Residential Group Care Inspection $100.00 per year Annual Commercial Fire Inspection Fee $0.00 Tent Permit Fee (any tent over 200 square feet & any canopy over 400 square feet) $100.00 Reinspection Fee (beyond one re-check)$150.00 per trip ABATEMENT FEES Inspection fee $70.00 per hour (1 - hour minimum) Reinspection fee $150.00 per trip PARK FACILITY RENTALS Park Rental Fees - Resident/Organization (1)Per Hour Small Ramada - 2 hour minimum $10.00 Medium Ramada - 2 hour minimum $15.00 Large Ramada - 2 hour minimum $20.00 Meeting Rooms 2 hour minimum $10.00 Multi-Purpose Fields - 2 hour minimum $15.00 Tennis Courts - 90 minute reservation $5.00 without lighting Tennis Courts - 90 minute reservation $7.00 with lighting Open Park space, including Amphitheater, Avenue of the Fountains Plaza, Great Lawn, Centennial Circle and other lawns $400.00/half day (4 hours or less) $750.00/full day (over 4 hours) (1) 10% wedding discount when combined with Community Center Rental 386 Comprehensive Fee Schedule Effective July 1, 2020 Description Proposed Fee FY20-21 PARK FACILITY RENTALS (CONT.) Park Rental Fee Extras Power Distribution Box Rental Fee & Deposit $15.00/box per day; $100.00 deposit per box and power cable Athletic Field Lights (2 hour minimum)$10.00 per hour Athletic Field – Prep & Bases $25.00 per field Alcohol Permit with Park Reservation $10.00 for 50 Consuming Adults - non-refundable Fountain Operation $265.00 Per Half - Hour Staff (2 hour minimum)$21.00 - $38.00 Per Hour Park Rental Fees - Non-Resident/ Commercial (1) Per Hour Small Ramada - 2 hour minimum $15.00 Medium Ramada - 2 hour minimum $22.50 Large Ramada - 2 hour minimum $30.00 Meeting Rooms - 2 hour minimum $15.00 Multi-Purpose Fields - 2 hour minimum $22.50 Tennis Courts - 90 minute reservation $10.00 without lights Tennis Courts - 90 minute reservation $14.00 with lights Open Park space, including Amphitheater, Avenue of the Fountains Plaza, Great Lawn, Centennial Circle and other lawns $750.00/half day (4 hours or less) $1,400.00/full day (over 4 hours) (1) 10% wedding discount when combined with Community Center Rental Park Rental Fee Extras Power Distribution Box Rental Fee & Deposit $15.00/box per day; $100.00 deposit per box and power cable Athletic Field Lights - 2 hour minimum $10.00 per hour Athletic Field – Prep & Bases $25.00 per field Alcohol Permit with Park Reservation $10.00 for 50 Consuming Adults - non-refundable Fountain Operation $265.00 Per Half - Hour Staff - 2 hour minimum $21.00 - $38.00 Per Hour Recreation Fees Program Cancellation Fee $10.00 387 Comprehensive Fee Schedule Effective July 1, 2020 Description Proposed Fee FY20-21 COMMUNITY CENTER RENTALS Community Center Rental - Resident/ Organization (Tier 2) (2) Per Hour Any Meeting Room - 2 hour minimum $17.00 One Ballroom (30 - 90 people) Minimum 4 hours $36.00 Two Ballrooms *(91 - 160 people) Minimum 4 hours $72.00 Three Ballrooms*( 161 - 250 people) Minimum 4 hours $108.00 Grand Ballroom *( 251 - 450 people) Minimum 4 hours $144.00 Lobby (2)Per Hour 4 hour minimum $34.00 Grand Ballroom & Lobby (2) All Day Rate (Monday - Thursday 7:00 am to Midnight) $1,760.00 All Day Rate (Friday - Saturday 7:00 am to Midnight) $2,200.00 Weekend Rates: Friday & Saturday (2)Weekend Rates: Friday-Sunday Ballroom 3 (includes patio access and views)*Per Hour 4 hour minimum $41.00 4 hour minimum $41.00 4 hour minimum with contract 50% of Resident/Non-Profit rate (2) 10% wedding discount when combined with a Park Rental Ballroom 4 (includes patio access and views) Tier 2 Groups meeting 6 or More Times per Year: *Ballroom 3 not available as a standalone rental 388 Comprehensive Fee Schedule Effective July 1, 2020 Description Proposed Fee FY20-21 Community Center Rental - Non-Resident/ Commercial (Tier 3) (2) Per Hour Any Meeting Room $39.00 One Ballroom (30-90 people) 4 hour minimum $83.00 Two Ballrooms *(91 - 160 people) 4 hour minimum $166.00 Three Ballrooms*( 161 - 250 people) 4 hour minimum $249.00 Grand Ballroom *( 251 - 450 people) 4 hour minimum $332.00 Lobby (2) 4 hour minimum $69.00 Grand Ballroom & Lobby (2) All Day Rate (Monday - Thursday 7:00 am to Midnight) $4,400.00 All Day Rate (Friday - Saturday 7:00 am to Midnight) $5,500.00 Weekend Rates: Friday & Saturday (2)Weekend Rates: Friday-Sunday Ballroom 3 (includes patio access and views)*Per Hour 4 hour minimum $124.00 4 hour minimum $124.00 4 hour minimum with contract 50% of Non-Resident/Commercial Rate Tier 3 Groups meeting 6 or More Times per Year: COMMUNITY CENTER RENTALS (CONT.) Ballroom 4 (includes patio access and views) *Ballroom 3 not available as a standalone rental (2) 10% wedding discount when combined with a Park Rental 389 Comprehensive Fee Schedule Effective July 1, 2020 Description Proposed Fee FY20-21 Video Projector - Note Vission 3,000 Lumens $40.00 Overhead Projector $15.00 Slide Projector $15.00 27" TV $15.00 Flat Screen TV $25.00 TV/VCR (or DVD)$0.00 VCR or DVD Player $10.00 Small Screen $5.00 Large Screen (8' x 10')$10.00 Large Screen Border $15.00 Ping Pong Table $15.00 per rental Internet Access Hard Wire $125 per day Sound Reinforcement Wireless Microphones $5.00 Speaker Table (Includes Mixing Board)$15.00 each Conference Phone $10.00 Portable Sound System (Includes Mixing Board and/or Portable Speaker) $25.00 CD Player $10.00 Electricity (per booth) 110 V $15.00 220 V $40.00 Other Easel $5.00 Papers & Markers $10.00 Portable White Board $5.00 Walker Display Board $5.00 Items for Sale 25' Extension Cord $15.00 each Power Strip $15.00 each Masking Tape $5.00 per roll Miscellaneous Dance Floor - per 3' x 3' parquet square $3.00 Staging 6' x 8" section $5.00 Piano - Tuning Extra Upright $25.00 Grand $50.00 Coffee Service $5.00 per 8 cup pack COMMUNITY CENTER RENTALS (CONT.) Community Center Extra Service Fees - Resident/Non-Profit 390 Comprehensive Fee Schedule Effective July 1, 2020 Description Proposed Fee FY20-21 Video Projector - Note Vission 3,000 Lumens $75.00 Overhead Projector $30.00 Slide Projector $30.00 27" TV $30.00 Large Flat Panel Monitor $50.00 Flat Screen TV $50.00 VCR or DVD Player $20.00 Small Screen $10.00 Large Screen (8' x 10')$20.00 Large Screen Border $30.00 Ping Pong Table $30.00 per rental Internet Access Hard Wire $125.00 per day Sound Reinforcement Wireless Microphones $15.00 Speaker Table (Includes Mixing Board)$15.00 each Conference Phone $20.00 Portable Sound System (Includes Mixing $50.00 CD Player $20.00 Electricity ( per booth) 110 V $25.00 220 V $75.00 Other Easel $10.00 Papers & Markers $20.00 Portable White Board $10.00 Walker Display Board $10.00 Items for Sale 25' Extension Cord $15.00 each Power Strip $15.00 each Masking Tape $5.00 each Miscellaneous Dance Floor - Per 3' x 3' parquet square $5.00 Staging 6' x 8" section $10.00 Piano - Tuning Extra Upright $50.00 Grand $100.00 Coffee Service $5.00 per (10) 8oz cup pack Portable Bar $50.00 Labor Charges $25/hour $40/hour OTNOTE: All Rentals Are Subject To Applicable Arizona Sales Taxes COMMUNITY CENTER RENTALS (CONT.) Community Center Extra Service Fees - Non - Resident/Commercial 391 Comprehensive Fee Schedule Effective July 1, 2020 Description Proposed Fee FY20-21 Resident $20.00 Non - Resident $30.00 COURT FEES Non-Sufficient Funds (checks returned to Court)$30.00 per check Public Defender Actual costs for appointed attorney Jail Reimbursement Actual costs billed by County for jail time served Jury Costs (assessed if jury trial canceled within five days of trial) Actual administrative costs Civil Traffic Default $50.00 per defaulted charge Warrant $50.00 per warrant issued Diversion Program Rescheduling $25.00 Court Clerk $17.00 Court User $30.00 per charge, plus surcharges Public Records Search $2.00 per name Copies $0.50 per page Certified Copies $17.00 Copies of CDs $17.00 SENIOR SERVICES ANNUAL MEMBERSHIP FEES (CALENDAR YEAR) NOTE: Court fees are subject to change throughout the fiscal year in accordance with State Law and Arizona Supreme Court Rules. 392 Schedule of Authorized Positions Schedule of Authorized Positions  6FKHGXOHRI$XWKRUL]HG3RVLWLRQV 6FKHGXOHRI$XWKRUL]HG3RVLWLRQV 394 Compared to the high of 115 FTEs in FY01-02, the current level of 62 FTEs repre- sents a total decrease of almost 50% over a nineteen year period. The reduction in authorized FTEs is a result of the economic downturn and the need to reduce Town expenditures, resulting in the consolidation of positions as well as actual staff layoffs. Schedule of Authorized Positions Schedule of Authorized Positions (continued) 395 Pay Plan Pay Plan 396 Pay Plan FY20-21 PAY PLAN—effective July 1, 2020  3D\3ODQ )<-3$<3/$1—HIIHFWLYH-XO\ 398 Pay Plan FY20-21 PAY PLAN—effective January 1, 2021  )<-3$<3/$1—HIIHFWLYH-DQXDU\ 3D\3ODQ 400 Resolution Resolution 2020-23 401 Resolution 402 Resolution 403 Glossary Glossary 404 Account A separate financial reporting unit for budgeting, management or accounting pur- poses. All budgetary transactions, whether revenue or expenditure, are recorded in accounts. Several related accounts may be grouped together in a fund. A list of accounts is called a chart of accounts. Accounting Standards The generally accepted accounting principles (GAAP) promulgated by the Govern- mental Accounting Standards Board (GASB) that guide the recording and reporting of financial information by state and local governments. Accrual Basis of Accounting The basis of accounting under which transactions are recognized at the time they are incurred, as opposed to when cash is received or sent. Expenses are recorded at the time liabilities are incurred and revenues are recorded when earned. Un- billed services are recorded as receivables at year end. 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. Adopted Budget Used and and the budget document. Represents by the Town the Adoption Formal action by the Town Council, which sets the spending limits for the fiscal year. Ad Valorem Taxes Commonly referred to as property taxes. The charges levied on all real, and cer- tain 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. Allocation A part a by and/or Appropriation Specific amount of monies authorized by the Town Council for the purpose of in- curring obligations and acquiring goods and services. An appropriation is limited in amount and time when it may be used unless it is for capital projects such as con- structing roads and buildings. Arbitrage The ability to use tax exempt proceeds and, by investing those funds in higher yielding taxable securities, generate a profit to the issuer. Glossary A-AR 405 Assessed Valuation A that and property a property are by and the a Asset Resources and property of the Town that can be used or applied to cover liabilities. Alternatively, any owned physical object (tangible) or right (intangible) having a monetary value or an item or source of wealth expressed in terms of any cost ben- efitting a future period. Attrition A method of achieving a reduction in personnel by not refilling the positions vacat- ed through resignation, reassignment, transfer, or retirement. 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 Town is required to have an annual audit conducted by qualified certified public accountants. Authorized Positions Employee positions which are authorized in the adopted budget. Available (Unassigned) Fund Balance Funds remaining from the prior year which are available for appropriation and ex- penditure in the current year. Balanced Budget Arizona law (Title 42-Arizona Revised Statutes) requires the Town Council to annu- ally 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 Town Council. Basis of Accounting D by t t Board Fund type the of t r v r v t t r when tr t or event r the r t t t t Beginning Balance The brought the year Glossary AS-BE 406 Bond A written promise to pay a specified sum of money (called the face value or princi- pal 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 and a note is that a bond is issued for a longer period and re- quires 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. Bond Rating The measure of the quality and safety of a bond. The rating indicates the likelihood that a debt issuer will be able to meet scheduled repayments and dictates the in- terest rate paid. Bond Refinancing The payoff and re-issuance of bonds to obtain better interest rates and/or bond conditions. Budget A an a and them. and the Town and . Budget Amendment A change of budget appropriation between expenditure accounts that is different from the original adopted budget. Budget amendments do not change the legal spending limit adopted by the Town Council. Budget Calendar The schedule of key dates which a government follows in the preparation and adoption of the budget. Budget Document The by to to the Budget Message the and the a the the the year, the the Budgetary Basis of Accounting The basis of accounting used to estimate financing sources and uses in the budget. The method used to determine when revenues and expenditures are recognized for budgetary purposes. This basis generally takes one of three forms: GAAP, cash, or modified accrual. Glossary BO-BU 407 Budgetary Control The control or management of a government in accordance with the approved budget for the purpose of keeping expenditures within the limitations of available appropriations and resources. Capital Assets Assets of significant value and having a useful life of several years. Capital assets are also called fixed assets. Capital Budget A spending plan for improvements to, or acquisition of, land, facilities and infra- structure that balances revenues and expenditures, specifies the sources of reve- nues, and lists each project or acquisition. Normally a capital budget must be ap- proved by the legislative body. The capital budget and accompanying appropria- tion ordinance may be included in a consolidated budget document that has a sec- tion devoted to capital expenditures and another to operating expenditures. Alter- natively, two separate documents may be prepared – one for the capital budget and one for the operating budget. Capital Expenditure A capital expenditure is made when purchasing a fixed asset having a value of $10,000 or more and a useful life of more than one year. Capital Improvement Program The a to and and a The a current and year and the The the must be the Capital Improvement Project Expenditures for the construction, purchase or renovation of Town facilities or property that have a value greater than $50,000. Capital Outlay Expenditures resulting in the acquisition of or addition to the Town’s fixed assets with a value of $10,000 or more and a useful economic lifetime of more than one year. Capital Project Carryover An approved Capital Project that was not completed in the fiscal year and, there- fore, was budgeted again in the current fiscal year in order to finish the project. Capital Projects Funds Capital project funds are used to account for and report financial resources that are restricted, committed, or assigned to expenditure for capital outlays, including the acquisition or construction of capital facilities and other capital assets. Capital projects funds exclude those types of capital related outflows financed by proprie- tary funds or for assets that will be held in trust for individuals, private organiza- tions, or other governments. Glossary BU-CA 408 Cash Basis of Accounting The basis of accounting in which transactions are recognized only when cash amounts are increased or decreased. Cash-in-lieu Funding for capital projects the Town requires from developers in lieu of them con- structing necessary off- site improvements related to their development project. Community Facilities District (CFD) A separate legal entity established by the Town which allows for financing of public improvements and services. Comprehensive Annual Financial Report (CAFR) The official annual financial report of the Town. The CAFR represents manage- ment’s report to the Town Council, constituents, investors and creditors. Contingency/Reserve An amount, a budgetary reserve/contingency, set aside as available, with Town Council approval, to cover unforeseen expenditures, emergency expenditures, or revenue shortfalls. Contractual Services such etc. that by the 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 The cost of paying principal and interest payments on outstanding bonds according to a predetermined payment schedule. Debt Service Fund One or more funds established to account for revenues used to repay the principal and interest on debt. Deficit The excess of an entity’s liabilities over its assets or the excess of expenditures or expenses over revenues during a single accounting period. Department A the Town an or a group Depreciation An accounting transaction which spreads the acquisition value of an asset across its useful life. Alternatively, expiration in the service life of capital assets attributa- ble to wear and tear, deterioration, action of the physical elements, inadequacy or obsolescence. Glossary CA-DE 409 Development Fees Those fees and charges generated by building, development, and growth in the Town. Disbursement The money an Distinguished Budget Presentation Awards Program A voluntary awards program administered by the Government Finance Officers As- sociation of the United States and Canada to encourage governments to prepare effective budget documents. Division A grouping of related activities within a particular Department (example, Senior Services is a Division of Community Services). Employee (or Fringe) Benefits Contributions made by a government to meet commitments or obligations for em- ployee -related expenses. Included is the Town’s share of costs for social security, pension plans, medical and life insurance plans. Encumbrance The formal accounting recognition of appropriated or committed funds to be set aside for a future expenditure. To encumber funds means to set aside or commit funds for a specified future expenditure. For budgetary purposes, encumbrances are considered expenditures. Ending Balance The that are or at the end the Estimated Revenue The amount of projected revenue to be collected during the fiscal year. Expenditure A net decrease in financial resources. Expenditures include operating expenses which require the use of current assets. 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 pur- poses. 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 re- ceived. Expenses Charges incurred (whether paid immediately or unpaid) for operations, mainte- nance, interest or other costs. Fees ci rv Glossary DE-FE 410 Financial Plan A summary by fund of planned revenues, expenditures, operating transfers, re- serves, and fund balances. Fiscal Policy A government’s policies with respect to revenues, spending, and debt manage- ment as these relate to government services, programs and capital investment. Fiscal policy provides an agreed-upon set of principles for the planning and pro- gramming of government budgets and their funding. Fiscal Year Any period of twelve consecutive months establishing the beginning and the end- ing of financial transactions. For the Town of Fountain Hills, this period begins July 1 and ends June 30. Fixed Assets Assets of a long-term character which are intended to continue to be in use or kept for more than one year and of a monetary value greater than $10,000. Franchise Fees Annual fees paid by utilities (e.g. cable TV) for use of Town public rights-of-way. Franchise fees are typically a set percentage of gross revenue within the Town. Full Faith and Credit A pledge of a government’s taxing power to repay debt obligations. 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 An independent fiscal and accounting entity with a self-balancing set of accounts recording cash and other financial resources, together with all related liabilities and changes in these assets and liabilities. Fund Balance Difference between assets and liabilities reported in a government fund. Non-spendable – Portions of fund balance that include amounts that cannot be spent because they are either (a) not in spendable form or (b) legally or contractually required to be maintained intact. Restricted – Portion of fund balance that reflects constraints placed on the use of resources that are either (a) externally imposed by creditors, grantors, contributors, or laws or regulations of other governments or (b) imposed by law through constitutional provisions or enabling legislation. Committed – Amounts that can be used only for specific purposes pursu- ant to constraints imposed by formal action of the government’s highest level of decision-making authority. In the case of the Town, this would be the Council and Mayor. Assigned – Amounts that are constrained by the government’s intent to be used for specific purposes, but that are neither restricted nor commit- ted. Glossary FI-FU 411 Unassigned – Residual classification for the General Fund. This classifi- cation represents fund balance that has not been assigned to other funds and that has not been restricted, committed, or assigned to specific pur- poses within the general fund. The General Fund should be the only fund that reports a positive unassigned fund balance amount. General Fund The major fund in most governmental entities. While other funds tend to be re- stricted to a single purpose, the General Fund is a catch-all for general govern- ment purposes. The General Fund contains the activities commonly associated with municipal government, such as police and fire protection, parks and recrea- tion. General Obligation Bonds This type of bond is backed by the full faith, credit and taxing power of the gov- ernment. Bonds that finance a variety of public projects. The repayment of these bonds is usually made from secondary property tax revenues. General Plan A plan approved by the Town Council that provides the fundamental policy direc- tion and guidance on development decisions in the Town. Generally Accepted Accounting Principles (GAAP) U r r ci t and r r the v t r that t r ci Goal The end toward w rt r . A goal is general and timeless. Governmental Funds Governmental Funds are those through which most governmental functions of the Town are recorded. Revenues are recognized as soon as they are both measurable and available. Expenditures generally are recorded when a liability is incurred ex- cept for unmatured interest on debt and certain similar obligations, which should be recognized when due. Grants A contribution by a government or other organization to support a particular func- tion. Grants may be classified as either operational or capital, depending upon the grantee. Highway User Revenue Fund (HURF) A w t t on v cl and t r tr rt t r t be and w y r Indirect Cost A cost necessary for the functioning of the organization as a whole, but which can- not be directly assigned to one service. Infrastructure The physical assets of a government (e.g. streets, public buildings, parks, etc.). Glossary FU-IN 412 Interfund Transfers The movement of monies between funds of the same governmental entity. Intergovernmental Refers to transactions between different levels of government, e.g. city, county, state and federal. Intergovernmental Agreement A by Intergovernmental Revenue Funds received from federal, state, and other local government sources in the form of grants, shared revenues, and payments in lieu of taxes. Journal Entry An entry into the financial system that transfers actual amounts from one ac- count, department, or fund to another. Lapsing Appropriation An appropriation made for a certain period of time, generally for the budget year. At the end of the specified period, any unexpended or unencumbered balance lapses or ends, unless otherwise provided by law. Levy The total amount to be raised by general property taxes for purposes specified in the property tax levy motion. Levy Rate The amount of tax levied for each $100 of assessed valuation. Liability Indebtedness of a governmental entity, such as amounts owed to vendors for ser- vices rendered or goods received, and principal and interest owed to bondholders. These amounts are debts or legal obligations which must be paid at some future date. Line-item Budget A budget prepared along departmental lines that focuses on what is to be bought. Local Transportation Assistance Fund (LTAF) are by Lottery. on must be transit or but a may Long-term Debt Debt with a maturity of more than one year after the date of issuance. Modified Accrual Basis of Accounting The basis of accounting used by governmental-type funds. Under this basis, reve- nues are recognized when they become both “measurable” and “available” to fi- nance expenditures of the current period. Glossary IN-MO 413 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 motor vehicle in-lieu tax. The MPC is a non-profit corporation established for the purpose of issuing debt to purchase mu- nicipal facilities, which it leases to the Town. Object Detail An expenditure classification, referring to the lowest and most detailed level of classification, such as electricity, office supplies, asphalt, and furniture. Objectives Something to be accomplished in specific, well-defined, and measurable terms and that is achievable within a specific time frame. The achievement of the objective advances an organization toward a corresponding goal. Obligations Amounts which a government may be legally required to meet out of its resources. They include not only actual liabilities, but also encumbrances not yet paid. Operating Budget Plans of current expenditures and the proposed means of financing them. The an- nual operating budget is the primary means by which most of the financing of ac- quisitions, spending, and service delivery activities of the Town are controlled. Operating Expenses The cost for personnel, materials, and equipment required for a department to function. Operating Impacts Operating impacts are the additional, incremental revenues or costs associated with the project—any new cost or revenue streams resulting from the project less existing expenditures and revenues where applicable. These impacts include maintenance expenses, utility and personnel expenses, revenues from project- specific construction spending and operating revenues. Operating Revenue Funds that the government receives as income to pay for ongoing operations. The revenue includes such items as taxes, fees from specific services, interest earn- ings, and grant revenues. Operating revenues are used to pay for day-to-day ser- vices. Ordinance A formal legislative by the body not any such a or the the to . Pay-as-you-go Basis A term used to describe a financial policy by which capital outlays are financed from current revenues rather than through borrowing. Per Capita A that per the Glossary MU-PE 414 Performance Based Budget The Performance Based Budget is a customer based, performance driven, results oriented budget system based on Outcome Management. Outcome Management is a management approach that focuses on the results achieved when providing a service. Performance Indicators Specific quantitative and qualitative measures of work performed as an objective of specific departments or programs. Measurement of service performance indica- tors that reflect the amount of money spent on services and the resulting out- comes at a specific level of services provided. Performance Measurement Statistical indicators that permit program evaluation to be conducted in a budget- ary context. Performance Target Percentage or number for each program performance measure that will be the de- sired level of performance for the upcoming budget period. Personal Services The and and may and Policy A or to and A be more a Program A group of related activities performed by one or more divisions or departments of the Town for the purpose of accomplishing a service the Town is responsible for delivering. Property Tax Total property tax levied by a municipality on the assessed value of a property within Town limits. In Arizona, the property tax system is divided into primary and secondary. Primary Property Tax – A limited tax levy used for operations based on primary assessed valuation and primary tax rate. The tax rate is restrict- ed to a 2% annual increase. Municipalities may use this tax for any pur- pose. Secondary Property Tax – An unlimited tax levy restricted to voter- approved budget overrides. The tax is based on the secondary assessed valuation and secondary tax rate. Reserve An account used to segregate a portion of a fund balance to indicate that it is not available for expenditure, or it is legally set aside for a specific future use. Glossary PE-RE 415 Resolution A special or temporary order of the Town Council. Requires less formality than an ordinance or statute. Resources Total amounts available for appropriation including estimated revenues, bond/loan proceeds, fund transfers, and beginning fund balances. Revenue Amounts received by government from sources including taxes, fines, fees, grants, or charges for services, which can be used to finance government operations or capital assets. These amounts increase the net assets of the government. For those revenues which are recorded on an accrual basis, this term designates addi- tions to assets which (a) do not increase any liability, (b) do not represent recov- ery of an expenditure, and (c) do not represent the cancellation of certain liabili- ties without a corresponding increase in other liabilities or a decrease in assets. Revenue Bonds Bonds whose principal and interest are payable exclusively from earnings of a rev- enue generating fund. Secondary Property Tax 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 bonded debt. Service Level Services or products which comprise actual or expected output of a given pro- gram. Focus is on results, not measures of workload. Sinking Fund A means of repaying funds that were borrowed through a bond issue. The issuer makes periodic payments to a trustee who retires part of the issue by purchasing the bonds in the open market. Special Revenue Fund out or other Such are or to pay a State-shared Revenue Includes the Town’s portion of State sales tax revenues, State income tax receipts, and motor vehicle in-lieu taxes. Strategic Plan The Strategic Plan defines the Town’s strategy, or direction, and assists Town management in making decisions on the allocation of personnel and resources. Supplemental Appropriation An additional appropriation made by the governing body after the budget year has started. Glossary RE-SU 416 Tax Levy 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. Taxes Compulsory charges levied by a government for the purpose of financing services performed for the common benefit of the people. This term does not include spe- cific charges made against particular persons or property for current or permanent benefit, such as special assessments. Transfer Movement of resources between two funds. Example: An interfund transfer would include the transfer of operating resources from the General Fund to the Streets Fund. Unassigned Fund Balance The portion of a fund’s balance that is not restricted or committed for a specific purpose and is available for general appropriation. Unencumbered Balance The amount of an appropriation that is neither expended nor encumbered; essen- tially the amount of money still available for future purposes. Unreserved Fund Balance The that not and User Fees The fee charged for the direct receipt of a public service to the party or parties who benefit from the service. Valley The area represented by the Greater Phoenix Metropolitan area. Phoenix is also know as the Valley of the Sun. Variance Comparison of actual expenditure and revenues from one year to the next and comparison of budget -to-actual in current fiscal year. Working Capital A financial metric which represents the amount of day-to-day operating liquidity available. Also known as operating capital, it is calculated as current assets minus current liabilities. Working Cash The excess of readily available assets over current liabilities. Glossary TA-WO 417 Acronyms Acronyms 418 ABC-American Base Course AC-Asphaltic Concrete ACA-Arizona Commerce Authority ACMA-Arizona City Manager’s Associa- tion ADA-Americans with Disabilities Act ADEQ-Arizona Department of Environ- mental Quality ADOG-Association of Dog Owners Group ADOT-Arizona Department of Transpor- tation ADWR-Arizona Department of Water Resources AGIC-Arizona Geographic Information Council AICP-American Institute of Certified Planners AOC-Administrative Office of the Courts APA-American Planning Association APRA-American Parks & Recreation As- sociation APWA-American Public Works Associa- tion ARRA-American Recovery and Reinvest- ment Act of 2009 ARS-Arizona Revised Statutes ASCE-American Society of Civil Engi- neers AZBO-Arizona Building Officials AZDOR-Arizona Department of Revenue AZDOT-Arizona Department of Trans- portation AZ POST-Arizona Peace Officer Stand- ards and Training Board BGC-Boys and Girls Club BRE-Business Retention and Expansion BVAC-Business Vitality Advisory Council CAD-Computer-Aided Design CAFR-Comprehensive Annual Financial Report CARE-Crisis Activated Response Effort CCEF-Court Collection Enhancement fund CELA-Code Enforcement League of Arizo- na CFD-Community Facilities District CIP-Capital Improvement Program CMAQ-Congestion Mitigation and Air Quality cu. yd.-Cubic Yard EMCFD-Eagle Mountain Community Fa- cilities District EMMA-Electronic Municipal Market Ac- cess EOC-Emergency Operations Center EPIC-TBI-Excellence in Prehospital Care -Traumatic Brain Injury FEMA-Federal Emergency Management Administration FHUSD-Fountain Hills Unified School District FIT-Fountain Hills Integrated Trails FTE-Full Time Equivalent Acronyms Acronyms AB-FT 419 FY-Fiscal Year GAAP-Generally Accepted Accounting Principles GADA-Greater Arizona Development Au- thority GASB-Governmental Accounting Stand- ards Board GFOA-Government Finance Officers As- sociation GIS-Geographical Information System GO-General Obligation GPEC-Greater Phoenix Economic Council HDM-Home Delivered Meals HPE-Hillside Protection Easement HURF-Highway User Revenue Fund HVAC-Heating, Cooling, and Air Condi- tioning ICMA-International City/County Man- agement Association ICSC-International Council of Shopping Centers ID-Improvement District IFEA-International Festivals & Events Association IGA-Intergovernmental Agreement IIP-Infrastructure Improvement Plan ISO-International Standards Organiza- tion IT-Information Technology ITS-Intelligent Transportation System JCEF-Judicial Court Enhancement Fund ln. ft.-Lineal (Linear) Feet LTAP-Local Technical Assistance Pro- gram LTAF-Local Transportation Assistance Fund MAG-Maricopa Association of Govern- ments MCFCD-Maricopa County Flood Control District MCSO-Maricopa County Sheriff’s Office MH-Manhole MHz-Megahertz MPC-Municipal Property Corporation MSRB-Municipal Securities Rulemaking Board NACSLB-National Advisory Council on State and Local Budgeting NRPA-National Recreation and Park As- sociation PC-Portland Cement PUD-Planned Unit Developments PTO-Parent Teacher Organization RFP-Request for Proposal RFQ-Request for Quotation RPM-Reflective Pavement Marker RPTA-Regional Public Transit Agency SEC-Securities and Exchange Commis- sion sq. ft.-Square Feet sq. yd.-Square Yard SR-State Route STORM-Stormwater Outreach for Re- gional Municipalities Acronyms FY-ST 420 SWOT-Strengths, Weaknesses, Opportunities, Threats V-Volt VHF-Very High Frequency VOIP-Voice Over Internet Protocol VRF-Vehicle Replacement Fund Acronyms SW-VR 421 Acronyms Town of Fountain Hills 16705 E. Avenue of the Fountains Fountain Hills, Arizona 85268 480-816-5100 www.fh.az.gov - facebook.com/TownofFountainHills - twitter.com/fhazgov