Flood Control District of Maricopa County 2002-2003 Annual Report Table of Contents Chairman’s Message 2 Flood Control Board of Directors 3 Flood Control Advisory Board 3 General Manager’s Message 4 District Programs 5 Mission and Vision 5 Fiscal Year Highlights 6 Division Highlights 7 Financial Commentary 8 Statement of Revenues and Expenditures 10 Capital Improvement Expenditures 11 Other District Highlights 12 About the District Before the District's inception in 1959, severe flooding occurred throughout much of the County during winter rains and the monsoon season. By establishing the District, the Arizona State Legislature created an entity charged with keeping county residents safe from flood hazards and established an independent funding source for essential projects. Today, through effective engineering, dam and channel construction, regulation, and public education, massive flooding is less common. The District is a municipal corporation and political subdivision of the State of Arizona. The Maricopa County Board of Supervisors doubles as the District's Board of Directors and receives counsel from the Flood Control Advisory Board comprised of county citizens. Under the state's enabling legislation, the District is designated as a special taxing district and is given the authority to levy a secondary property tax on parcels within Maricopa County. The District's flood control levy for Fiscal Year 2002-2003 was $0.2119 per $100 of assessed valuation. At this levy rate, a typical property owner with an assessed valuation of $100,000 paid an annual flood control tax of $21.19. In fiscal year 2002-2003, the District's annual budget, inclusive of both operating and capital programs, was $ 70.4 million with 63 percent of the District's revenue coming from the flood control tax. Revenue from other sources include the sale or lease of rights-of-way, fees that developers and individuals are required to pay to obtain building permits within Maricopa County and cost-sharing arrangements with the state, county, cities and other agencies. Currently, the District has 275 automatic rain gages, 118 automatic stream gages, and 19 automatic weather stations throughout Maricopa and neighboring counties. This gage is located in the Indian Bend Wash Park. One definition of the word pioneer is one who opens new areas of thought, research or development. That is the perfect definition of the Flood Control District of Maricopa County and its accomplished staff. During the time I served as chairman, I have witnessed the District step up to the plate with new ideas - ideas to protect residents from the ravages of desert flooding, ideas to offer those same residents year-round recreational opportunities in facilities built to protect them, ideas to enhance the environment and ideas to create projects that will benefit generations to come. The future looks particularly bright as the District forges ahead with more new ideas to use the latest technology in mapping, to restore riparian habitat and to get ahead of development. I am confident that these pioneering ideas will benefit county residents for years to come and that the District will continue to symbolize the word pioneer. Don Stapley, District 2 Flood Control District of Maricopa County 2002 Board of Directors Chairman Chairman's Message Fulton Brock, District 1 Flood Control District of Maricopa County 2003 Board of Directors Chairman 2 The spirit of hard work and helping neighbors has been the lifeblood of the West as it has grown from infancy to adulthood. This is what makes Maricopa County one of the most desirable places to live in the country, which is demonstrated by the large numbers of newcomers that join our community every month from other locales. This spirit is embraced at the Flood Control District, which has never wavered from its primary mission while striving for goals above and beyond the basics of flood control. In the past, the District focused on building flood control structures. But as growth and development flourish in the county, the District keeps the pioneer spirit alive by looking for alternative ways to keep residents safe and save taxpayers' money. This spirit will continue to serve the District well as the recordsetting drought continues in the Southwest. In fact, Winter 2002 was the driest winter season on record. Eventually the weather patterns will shift and rain will return to the county. And when the rains do come, county residents can be assured that the District is prepared. Fulton Brock District 1 Don Stapley District 2 Andrew Kunasek District 3 Max Wilson District 4 Mary Rose Wilcox District 5 Supervisors serve as directors, oversee District operations The Flood Control District is governed by a five-member Board of Directors, who also serve as the Board of Supervisors for Maricopa County. The Board of Directors exercises all the powers and duties in the acquisition and operation of District properties, contracting, and carrying out regulatory functions as ordinarily exercised by governing bodies. Board members elect a new chairman each year. The chairman conducts the meetings of the Board of Directors, which generally follow the meetings of the Board of Supervisors. Governing Boards Flood Control Advisory Board reviews programs, policies The Flood Control District Advisory Board (FCAB) acts in an advisory role to the Board of Directors on flood control, floodplain management, drainage and related matters. The FCAB reviews planning, operations and maintenance of flood control facilities, reviews program priorities and new policies, and recommends an annual budget to the Board of Directors that includes a five-year capital improvement program. The Advisory Board consists of seven members, five appointed by the Board of Supervisors for five-year terms. In addition to those five members, the Salt River Project and City of Phoenix appoint representatives who are ex officio members of the board. The FCAB members also serve as members of the District Floodplain and Drainage Review Boards. Front Row: District 2, Kent Cooper; District 3, Hemant Patel; District 4, Shirley Long Back Row: City of Phoenix, Tom Callow; District 5, Melvin Martin Not Pictured: District 1, Scott Ward; Salt River Project, Paul Cherrington 3 General Manager’s Message Much has been written over time about the early days of the Wild West and the gunslingers, the pioneers and the immigrants who dared to risk everything for the chance of a lifetime. Although water brought life and more "civilized" society to the arid region, the pioneering spirit of the West remains. It was evident 44 years ago when the Arizona State Legislature decided that something had to be done to control flooding in Maricopa County and formed the Flood Control District. It was evident during the 1950s through the 1970s as the District designed and constructed the ring of flood control structures that surround the metropolitan Phoenix area. In most recent years it has been evident as the District turned its attention to providing county residents not only protection from ravaging floodwaters, but also the ability to enjoy many of the structures that protect them, turning basins into parks and channels into trails. And it was evident this year as the District laid essential groundwork for a potential partnership with the Federal Emergency Management Agency (FEMA). This relationship will allow the District to deliver the very latest techology to all county residents. The District welcomes the opportunity to work collaboratively with FEMA and appreciates its recognition of our expertise. In the future there will be more to say about this exciting collaboration. In fact the District continues to pioneer innovations and technologies, proactive approaches and costcontainment methods. This strategic approach results in direct benefits for county residents by: ! Identifying flood and erosion hazards ahead of development; ! Providing fiscally responsible solutions for flood hazards saving taxpayer dollars; ! Enhancing the quality of life through diminishing the impacts of flooding; and ! Increasing opportunities for multi-use facilities. Michael Ellegood, P.E. Chief Engineer and General Manager 4 Mission and Vision The mission of the Flood Control District of Maricopa County is to provide regional flood hazard identification, regulation, remediation, and education to Maricopa County residents so that they can reduce their risks of injury, death, and property damage from flooding, while still enjoying the natural and beneficial values served by floodplains. The District's vision is for the residents of Maricopa County and future generations to have the maximum level of protection from the effects of flooding through fiscally responsible flood control actions and multi-use facilities that complement and enhance the beauty of our desert environment. We pledge to be responsive to our clients in an efficient, effective, and fiscally responsible manner. We will show personal integrity and professionalism in all our actions, and display continuous improvement, innovative thinking, and technical expertise. We will be stewards of the environment and the public’s trust, and we will be concerned about the effects of our actions on not only the current, but also future generations. District Programs The Flood Hazard Education program supplies information to the public so that they can be more knowledgeable about the risks of floods and flood hazards, and the Flood Control District projects, studies, and activities that will affect them. The Flood Hazard Identification program provides the identification of, and alternative solutions to flood hazards, and flood warning data to public and private organizations so that they can incorporate knowledge of flood hazards in their plans within presently developed and future urban growth areas. The Flood Hazard Regulation program offers guidance, direction, and enforcement to the public so that they can avoid causing adverse impacts to floodplains, and use their property safely and in compliance with applicable state and federal laws. The Flood Hazard Remediation program protects members of the public from flood hazards through structural mitigation and buyout so that they can live with an acceptable risk of loss of life or property due to flooding. 5 2002-2003 Flood Control District Highlights A public and private partnership between four agencies and ten private property owners and developers shaped one of the District's major accomplishments during the year. Conceived a little over three years ago and the largest major design project completed in-house, the Laveen Area Conveyance Corridor (LACC) will bring the rapidly developing Laveen area relief from over 1,400 acres of potential flood hazard. A prime example of the District's strategy to plan ahead of development, this project was accelerated to meet the needs of the growing community. Construction on the project will begin in Fiscal Year 2003-2004 and will be completed in approximately 17 months. The estimated cost of the initial construction phase of the project is $7.1 million. Normally it would have taken more than five years to reach this point in the project. The LACC will serve as a flood control facility to safely collect and drain stormwater from 100-year and lesser storm events. The project consists of 5.8 miles of conveyance channel for stormwater and irrigation tail water as well as a 17-acre detention basin at 43rd and Southern Avenues. Once construction is complete, the project will be turned over to the City of Phoenix for operation and maintenance. In addition, the District continued its emphasis on creating more community friendly facilities through cost-sharing arrangements with cities and developers and completed the first phase of assessing the safety of its 22 dams, which provide necessary flood protection. In 2002-2003, the District's annual budget, inclusive of both operating and capital programs, was $ 70.4 million with 63 percent of the District's revenue coming from the flood control tax. During the year, the District won several awards including an achievement award from the National Association of Counties for its use of advanced modeling technologies to evaluate potential flooding hazards along Doubletree Ranch Road in Paradise Valley. The District also won an award for the North Peoria Area Drainage Plan and the International Right of Way Association named the Lands and Right-ofWay Division Employer of the Year. 6 Division Highlights Administration ! Initiated a records retention plan and digital record system Engineering Division ! Initiated stormwater management on behalf of Maricopa County Information Technology ! Initiated procedures for a potential agreement with the Federal Emergency Management Agency (FEMA) Lands and Right-of-way ! Expedited the acquisition and relocation of 72 houses and their occupants, as part of the Bethany Home Outfall Channel, located in the Maryvale area of Phoenix ! Completed the sale (by auction) of Camelback Ranch South, located at 107th Avenue and Camelback Road, for $12.8 million, approximately 50 percent higher than the appraised value Operations and Maintenance ! Completed 70 percent of work orders, a 9 percent increase over the previous year ! Initiated aggressive mosquito management plan to deal with the West Nile virus District refines web site At the beginning of the 2002-2003 fiscal year, the District successfully launched an improved web site that offers in-depth and timely information on projects and services as well as online forms and applications. The site is used by county residents, elected officials and other agencies as a major source of information on flooding and flood control in Maricopa County. Fiscal Year 2001-2002 2002-2003 Successful Hits (Entire Site) 4,602,366 9,239,126 Page Views 716,421 502,530* Visits 155,394 211,828 Unique Visitors 24,630 34,696 * The number of page views has declined, however it is due to improved navigation bringing visitors to their desired content more efficiently. Planning and Project Management ! 13 planning studies under way to develop drainage master plans for more than 1,200 square miles of the county; two studies were completed ! 11 design projects under way; five projects were completed ! Six construction projects under way; three were completed with a total construction cost of $14 million and cost growth of $0.7 million, which represents only 5 percent of construction cost. ! Work on the Capital Improvement Program (CIP) projects resulted in utilizing 84 percent of all available CIP budgeted funds Regulatory ! Recognized role of the regulatory division and reorganized it to be more effective and functional ! Aligned sand and gravel management with floodplain operations ! Completed eight floodplain delineation studies for 441 miles of watercourses within the county providing the basis to regulate growth in flood hazard areas Drainage Administration Floodplain Management Fiscal Year Fiscal Year 2002-2003 2002-2003 Delineations Begun 7 Inspections Conducted Delineations Completed 7 Miles driven by inspectors Floodplain Use Permits Phone Requests Walk-in Customers Flood Hazard Info Requests Flood Hazard Info Notices 501 3,235 979 Flood Detection & Data Collection Permits reviewed Total plan reviews completed Drainage complaints Fiscal Year 14,292 175,129 2002-2003 New ALERT Gauges 12 9,545 ALERT Web page hits 1,128 Gauge Repair Visits 990 Warning Messages & Alerts 434 303 19,952 5,305 65 7 Financial Commentary Management Discussion and Analysis The continuing sluggishness experienced in the national and local economies had a deleterious effect upon the District's operations particularly in the Capital Improvement Program (CIP). The success of the District's Capital Improvement Program relies to a great extent upon the formulation of cost-sharing agreements with other entities (municipalities, state agencies, developers, etc.). During the year, potential partners continued to demonstrate a reluctance to commit funds to projects when sources of revenue were uncertain due to the slowed economy. Despite this, the District's management team has continued to be innovative and farsighted in positioning programs to take advantage of the economic recovery when it occurs. Revenue The District's revenue of $75,982,972 exceeded the budgeted amount of $71,029,400 by $4,953,572 or approximately 7 percent. Favorable revenue collections were primarily the direct result of the sale of the District's Camelback Ranch property, which exceeded appraisal estimates by approximately $5 million. All other categories of revenue, with the Actual Revenue exception of rental income, approximated budget levels at the beginning of the year. Operating Expenditures Overall the District realized a savings of $884,401 from its originally approved operating budget. This savings of 4 percent was the result of management's effort to critically analyze all District activities as to efficiency and asset utilization and to adjust priorities as necessary during the year to assure that funding was available to those efforts that return the most productive services to the citizens of Maricopa County. Personnel Services (payroll) Operating payroll expenditures for the fiscal year were within 0.2 percent of the total anticipated in the original operating budget. This on-budget performance was the result of managing the District's personnel position vacancies and new hires in a manner consistent with providing adequate personnel coverage for critical programs and setting program priorities. Operating Supplies and Services During the fiscal year, the District continued its practice of evaluating on a value-received basis, each acquisition of supplies and Land Sales and Rental Income 19% Secondary Flood Control Tax 59% Miscellaneous 0.2% Local Partner Participation 19% Fund Balance Interest Revenue 0.8% Licenses and Permits 2% Revenue Budget Actual Secondary Flood Control Tax Category $45,000,000 $44,302,534 -$697,466 98.5 Local Partner Participation $15,073,000 $14,482,555 -$590,445 96.1 $1,800,700 $1,759,324 -$41,376 97.7 $850,000 $608,132 -$241,868 71.5 $75,000 $178,831 $103,831 238.4 $62798,700 $61,331,376 $1,467,324 97.7 Land Sales and Rental Income $8,230,700 $14,651,597 6,420,897 Total Full Year Revenue $71,029,400 $75,982,973 $4,953,573 Licenses and Permits Fund Balance Interest Revenue Misc. Subtotal 8 Difference % Collected outside service prior to committing budgeted funds. As a result of this approach, the District's expenditures for supplies and contracted services registered a $648,173 favorable variance to budget (5.7 percent). The scrutiny of each expenditure was particularly successful in the areas of structure maintenance supplies (soil, cement, fertilizer, mortar, etc.) and outside engineering contract expenditures (consulting, planning, etc.). It also should be noted that the favorable variance to the operating budget was accomplished at the same time that the District was fulfilling its statutorily mandated and functional obligations. As demonstrated, the District's expenditures in fulfillment of its mandated and functional responsibilities account for 90 percent of all expenditures made during the fiscal year. Administration expenditures account for slightly more than 8 percent of the total expenditures to fund operations during the fiscal year. Non-CIP Capital Expenditures In the District's continuing effort to expend taxpayer funds only for those items considered to be necessary to support flood control operations, management delayed the acquisition of several pieces of maintenance and engineering equipment. The resultant savings totaled $215,923. Mandated and Functional Responsibility Flood Warning & Detection System Delineation Studies Actual Expenditures $693,981 $1,545,990 Regulation of Floodplains $511,309 Floodplain Hydrology Computer Modeling $308,823 Regulation of Drainage $1,792,245 Public Information & Public Education $277,302 Water Quality $592,395 Hydrometeorology $382,687 District Land Management $737,635 Planning Studies Despite the sluggish economy, the District expended approximately 84 percent of its originally budgeted Capital Improvement Program funds. Throughout the year, management continuously re-evaluated the program with an eye to changing priorities, project delays and new capital project opportunities. Several major CIP projects were delayed as a result of partner reluctance to commit funds to multi-year efforts until the economy demonstrates signs of recovery. Despite these difficulties, significant and material gains were made toward completing ongoing projects; many of which will come to fruition during fiscal year 2003-2004. Ending Flood Control District Balance The District's fiscal year ending fund balance, which is on account with the County Treasurer, totaled $33,067,662. The amount exceeds the anticipated total of $16,405,701 by $16,661,961. The increase is a result of the better than budgeted revenue collections realized during the year and the less than budgeted expenditure totals. The increase will allow management to expand and intensify the flood mitigation activities planned for future years and greatly increases management decision-making flexibility. Delineation Studies 2.5% Flood Warning & Detection System 1.1% Central Service Allocation 1.8% Regulation of Floodplains .8% Floodplain Hydrology Computer Modeling .5% $683,031 County Surveying $633,975 County Geographical Information Services $364,596 Public Information & Public Education .4% Water Quality 1% Regulation of Drainage 2.9% Hydrometeorology .6% Administration 8.2% District Land Management 1.2% Planning Studies 4.5% Dam Safety Investigations 1.1% County Surveying 1% $2,795,058 Dam Safety Investigations Structures Maintenance Capital Improvement Program Structures Maintenance 5.6% Capital Structures Program 66% County Geographical Information Services .6% $3,478,579 Capital Structures Program $40,773,261 Subtotal (Mandated & Functional) $55,570,867 Administration (net of Central Service Allocation) $5,046,140 Central Service Allocation Total $1,122,858 $61,739,865 9 Statement of Revenues, Expenditures, and Change in Fund Balance Budget and Actual for the Fiscal Year Ended June 30, 2003 Preliminary & Unaudited Budget Actual Variance Revenue Flood Control Tax $45,000,000.00 $44,302,534.22 $697,465.78 Local Participation $15,073,000.00 $14,482,554.89 -$590,445.11 Licenses & Permits $1,800,700.00 $1,759,323.59 -$41,376.41 Land Sales And Rental Revenue $8,230,700.00 $14,651,596.68 $6,420,896.68 $850,000.00 $608,132.03 -$241,867.97 $75,000.00 $178,831.46 $103,831.46 $71,029,400.00 $75,982,972.87 $4,953,572.87 Personnel Services $9,812,635.00 $9,792,330.36 -$20,304.64 Supplies And Services Professional Services Maintenance Supplies And Services Internal Services Education And Travel Other Supplies And Services Capital Acquisitions $6,073,364.00 $1,485,300.00 $2,696,696.00 $160,705.00 $939,510.00 $682,796.00 $5,918,267.43 $965,568.56 $2,738,439.39 $117,570.13 $967,555.72 $466,872.44 -$155,096.57 -$519,731.44 $41,743.39 -$43,134.87 $28,045.72 -$215,923.56 $21,851,006.00 $20,966,604.03 -$884,401.97 Interest Revenue Miscellaneous Total Revenue Operating Expenses Total Operating Expenditures Capital Improvement Program (CIP) Personnel Services $2,600,000.00 $2,233,525.00 -$366,475.00 Real Estate $6,556,000.00 $15,647,454.00 $9,091,454.00 Engineering $9,900,000.00 $7,297,726.00 -$2,602,274.00 Construction $28,576,000.00 $15,594,556.00 -$12,981,444.00 $968,000.00 $0.00 -$968,000.00 $48,600,000.00 $40,773,261.00 -$7,826,739.00 Project Reserve Total CIP Expenditures Total Expenditures Fund Balance $70,451,006.00 Budget $61,739,865.03 Actual -$8,711,140.97 -unfavorable Fund Balance July 1,2002 $15,827,307.00 $18,824,555.00 -$2,997,248.00 Add Revenue $71,029,400.00 $75,982,972.87 -$4,953,572.87 Total Funds Available $86,856,707.00 $94,807,527.87 -$7,950,820.87 -$70,451,006.00 -$61,739,865.03 -$8,711,140.97 Less Expenditures $16,405,701.00 10 $33,067,662.84 -$16,661,961.84 Capital Improvement Program Expenditures For Fiscal Year Ending June 2003 Preliminary & Unaudited Project Title/Description Engineering District Operations (Ortho Photography) Land Relocation & Construction $259,548 Compensation Total $15,654 $275,202 $2,658 $539,667 $2,111 $2,111 $108,409 $2,653,359 $1,439,729 $165,037 $1,604,766 $54,628 $2,728 $57,356 $18,694 $78,185 $286,702 $929,087 $8,690 $8,690 $91,694 $3,004,792 $4,497 $4,497 $24,453 $24,453 $16,298 $3,566 $19,864 $7,054 $30,302 $37,356 Buckeye/Sun Valley Area Drainage Master Plan $518,238 $67,400 $585,638 Wittmann Area Drainage Master Plan Update $1,062,281 $96,299 $1,158,580 $28,604 $414,870 $1,923 $1,923 $56,457 $75,962 $426 $426 $75,186 $375,680 $25,109 $993,297 $293,142 $4,519,767 $11,257 $11,257 $15,686 $20 $15,706 $1,217 $132,010 $1,395,870 $59,824 $157,634 $317 $317 $3,984 $274,931 $139,718 $2,804,149 $44,449 $56,665 Central Chandler Area Drainage System $537,009 City Of Scottsdale Town Of Guadalupe Dam Safety $45,153 Candidate Assessment Reports Sossaman Channel South Phoenix Drainage Improvements $1,874 $3,643 $100 $265,990 $376,395 $2,497,923 $55,748 Paradise Valley, Scottsdale, Phoenix East Maricopa Floodway $882,834 $2,030,264 Tempe/Mesa Habitat Mitigation Salt/Gila River Arlington Valley Floodplain Acquisition McMicken Dam Aguila Area Drainage Master Plan $379,864 $6,402 Cave Buttes Dam Skunk Creek $12,897 $6,608 New River Dam Skunk Creek/New River $147,986 $2,021 Spook Hill Area Drainage Master Plan $49,257 $918,931 East Mesa Area Drainage Master Plan $157,647 $40,656 $150,487 $4,028,322 Glendale/Peoria Area Drainage Master Plan East Fork Cave Creek Area Drainage Master Plan White Tanks Area Drainage Master Plan $747,400 Queen Creek Area Drainage Master Plan $515,243 $97,810 Gilbert/Chandler Area Drainage Master Plan Higley Area Drainage Master Plan Adobe Dam Area Drainage Master Plan $270,947 $996,128 $1,626,172 $42,131 Durango Area Drainage Master Plan $12,216 ACDC Area Drainage Master Plan $74,100 $56,275 $3,388,066 $157,889 $3,676,330 $164,835 $9,704,158 $4,871,565 $262,385 $15,002,943 $11,870 $11,870 $61 $61 $2,233,525 $40,773,261 Maryvale Area Drainage Master Plan Metro Area Drainage Master Plan Upper Indian Bend Wash Area Drainage Master Plan Total CIP Expenditures $7,297,726 $15,647,454 $15,594,556 11 About Maricopa County Nearly 60 percent of Arizona's population resides in Maricopa County, which includes the cities of Phoenix, Tempe, Mesa, Chandler, Scottsdale, Glendale, Peoria, and Gilbert. Five of the 10 fastest growing cities in the state are located in Maricopa County. The county was consistently one of the fastest growing counties in the country during the last decade. This metropolitan area is home to the state capitol as well as hightech, manufacturing, service and agricultural industries, 15 institutions of higher learning, various cultural and professional sports attractions and Phoenix Sky Harbor International Airport, the fifth busiest airport in the world. Maricopa County measures 9,226 square miles, 98 square miles of which is water. With a population of 3.2 million, it is the fourth most populous county and the 14th largest county in the United States. Five major river systems flow through the county draining an area of approximately 57,000 square miles, which includes portions of New Mexico and Mexico. 12 Flood Control District of Maricopa County 2801 West Durango Street Phoenix, Arizona 85009 (602) 506-1501