TOWN OF FOUNTAIN HILLS, ARIZONA MISSION STATEMENT The Town of Fountain Hills’ purpose is to serve the best interests of the community by: providing for its safety and well-being; respecting its special, small-town character and quality of life; providing superior public services; sustaining the public trust through open and responsive government; and maintaining the stewardship and preservation of its financial and natural resources. Town of Fountain Hills Fiscal Year 2005-2006 Budget Town of Fountain Hills This page left intentionally blank. Town of Fountain Hills Fiscal Year 2005-2006 Budget Citizens of the Town of Fountain Hills Mayor and Town Council Community Center Advisory Commission Board of Adjustment Town Prosecutor Parks & Recreation and Community Center Planning and Zoning Commission Town Attorney Fire Department Parks and Recreation Commission Town Manager Law Enforcement McDowell Mountain Preservation Commission Town Magistrate Finance and Administration Public Works, Planning, Building Safety, Streets Fountain Hills Town Council Mayor Wally Nichols Vice Mayor Jay Schlum Councilmember Mike Archambault Councilmember John Kavanagh Councilmember Edwin Kehe Councilmember Keith McMahan In Memory of Vice Mayor Kathleen Nicola Management Staff Timothy G. Pickering, CEcD, ICMA-CM, Town Manager Department Directors Julie Ghetti, MPA, CPA, CGFM, Finance Director Ted Armbruster, Town Magistrate Mark Mayer, Director of Parks, Recreation, and Community Center John Kleinheinz, Sheriff Captain Thomas Ward, Director of Public Works, Building Safety and Planning Mark Zimmerman, Fire Chief Town of Fountain Hills Fiscal Year 2005-2006 Budget Town of Fountain Hills FOUNTAIN HILLS TOWN COUNCIL 2005-2006 Wallace J. Nichols was elected Mayor of Fountain Hills in May 2003. Mr. Nichols has served in highly regarded positions throughout his career; such as Executive Director for WorldatWork (formerly ACA), Managing Director for Nichols & Wharton, Inc., Senior Vice-President Human Resources at Premark International, Inc., Vice-President of Compensation & Benefits for Dart & Kraft International, Inc. and Director of Compensation & Benefits for CPC International, Inc. He was educated at Tufts University, earning a Bachelor’s degree in Economics, and is an alumnus of the Harvard Business School. He has served the community as an elected officer/Chairman of the Fountain Hills Sanitary District, Los Arcos Multipurpose Facilities District Board of Directors, Scottsdale Boys & Girls Club Board of Directors, Fountain Hills Boys & Girls Club Advisory Chairman, Chairman of the Fountain Hills Community Center Advisory Commission, and on the Citizens Committee/Community Benefits Committee Board. Other local affiliations include the Noon Kiwanis, Fountain Hills Chamber of Commerce, Friend of the Fountain Hills Community Theater, Senior Center, Civic Association, Library Association, Republican Club, Fountain Hills Historical Society, McDowell Park Association, and the Four Peaks Community Church. Mayor Wally Nichols A long-time Arizona resident, Vice Mayor Kathleen Connelly Nicola moved to Lake Havasu City in June 1967 and her family settled in Fountain Hills in 1989. Kathleen passed away suddenly on May 19, 2005. Kathleen earned a Bachelor of Science degree in Justice Studies from the College of Public Programs at Arizona State University. Kathleen graduated from the Arizona School of Real Estate & Business, and made a career change in the summer of 2000 to become a licensed real estate salesperson. Her license currently hangs with John Hall & Associates in Scottsdale. Kathleen was a member of the Fountain Hills Chamber of Commerce and the Scottsdale Association of Realtors. Vice Mayor (past) Kathleen Connelly Nicola Town of Fountain Hills Fiscal Year 2005-2006 Budget Councilman Mike Archambault moved to Fountain Hills from Columbus, Ohio in 1972. He built one of the first homes in Fountain Hills and was among the first 10 families to live here. In 1981, he started Fountain Hills Wood Whims, Inc., a custom cabinet shop that currently employs fifteen craftsmen. Mike and his crew have been providing custom cabinets for Valley builders for more than 20 years. Mike has been involved in community services since he moved here in 1972. He ran annual “Secret Santa” programs, bringing toys to children and helping with food donations for needy families, served as a Cub Scout and Boy Scout leader, and a Leader for Order of the Arrow, graduating fourteen Eagle Scouts. Mike also helped with the drive to bring the first health clinic to Fountain Hills in 1977. He served on the Church of the Ascension Committee, and with the help of volunteers, Mike built the Church’s rectory. He also helped construct the original town library (now the Fountain Hills Theatre) with the Contractors Association, and assisted in building the Sunset Kiwanis clubhouse. He also served the community as President of the Fountain Hills Youth Association, and as a member of the Sunset Kiwanis. Councilmember Mike Archambault John Kavanagh is a ten-year resident of Fountain Hills who is a professor of criminal justice at Scottsdale Community College and Director of the college’s Administration of Justice Studies Program. Prior to teaching at Scottsdale Community College, John taught at Arizona State University and spent 20 years as a police officer with the Port Authority of New York and New Jersey Police. John Kavanagh has a B.A. in Sociology from NYU, an M.A. in Public Administration from St. John’s University (Queens, New York), and a Ph.D. in Criminal Justice from Rutgers University. He also belongs to professional associations, such as the American Society of Criminology and the Arizona Criminal Justice Educators Association. John Kavanagh is serving or has served with the following town groups: Parks and Recreation Commission, Community Center Advisory Committee, Vision 2000 Planning Committee, School Board Calendar Committee, Youth Basketball League, Veterans Memorial Sitting Committee, the Knights of Columbus, Civic Association, and the American Legion. Town of Fountain Hills Fiscal Year 2005-2006 Budget Councilmember John Kavanagh Town of Fountain Hills Ed Kehe was awarded the degrees of Bachelor of Arts with honors by Albion College (MI) and Master of Science by the University of Illinois. In addition he earned sixty post-degree graduate credits and certificates in administration and directorships. His career spanned thirty-three years in public secondary education, teaching mathematics, physical education, and coaching interscholastic sports. Ed retired in 1984 from White Plains (NY) High School after fourteen years as Director of Athletics. He served leadership roles at the local level, statewide, and nationally in both his professional and private life. Ed and wife Dolores moved to Fountain Hills in 1995. He volunteers with Home Delivered Meals; was a hospitality usher at Church of the Ascension; worked for the passage of the original mountain bond issue; serves on the boards of the McDowell Park Association and the Golden Eagle Foundation; is a member of Noon Hour Kiwanis, Senior Activity Center, Civic Association, Republican Club, River of Time Museum; as well as a friend of the Community Theater and Chamber of Commerce. Councilmember Ed Kehe Keith McMahan moved to Arizona in 1971 as an advertising writer with Lorne Pratt Enterprises, Inc., the ad agency for McCulloch Properties until 1991 when he formed his own company, McMahan and Company Advertising Agency. Keith has been actively involved in community projects and organizations since he came to Fountain Hills. He was the advertising and tourism chairman for the Chamber of Commerce for nine years as well as serving on their Board of Directors for three years. In 1997, he was honored as the "Business Person of the Year" by the Chamber of Commerce. He served as an elected member of the Fountain Hills School Board from 1986 to 1990. For nine years, he was on the Road District Joint Powers Board; chairman in 1978. He is presently a contributing member of several organizations: the Fountain Hills Civic Association, the Fountain Hills Republican Club, and the Fountain Hills Historical Society Board of Directors. Town of Fountain Hills Fiscal Year 2005-2006 Budget Councilmember Keith McMahan Jay Schlum moved to Fountain Hills 27 years ago and he attended Coronado High School in Scottsdale. After graduation he attended Northern Arizona University where he studied Business Management and Public Speaking. After college, he returned to Fountain Hills and is currently employed by Qwest Communications where he manages business development for the company. Jay has been active in the Fountain Hills community - he served as a Fountain Hills Planning and Zoning Commissioner, PTA vice president and is actively involved with the local Community Theater. Jay volunteers and performs in productions. He has also served on the advisory committee for the Boys and Girls Club of Fountain Hills. Presently Jay is the president of the Shepherd of the Hills Lutheran Church and a coach with the Fountain Hills Little League. Town of Fountain Hills Fiscal Year 2005-2006 Budget Vice Mayor Jay Schlum Town of Fountain Hills DEMOGRAPHICS The Town of Fountain Hills is a planned, family-oriented community established in 1970 by McCulloch Properties (now MCO Properties, Inc.). Prior to 1970 the area was a cattle ranch and was part of one of the largest land and cattle holdings in Arizona. It was purchased by Robert McCulloch in the late 1960s and designed by Charles Wood, Jr. (designer of Disneyland in southern California). The centerpiece of Fountain Hills is one of the world's tallest man-made fountains, a focal point that attracts thousands of visitors each year. Located on 11,340 acres of land, and bordering northeast Scottsdale, Fountain Hills is surrounded by the 3,500-foot McDowell Mountains on the west, the Fort McDowell Indian Reservation on the east, the Salt River Indian Reservation on the south and by the McDowell Mountain Regional Park on the north. Elevation is 1,520 feet at the fountain, 3,000 feet on Golden Eagle Boulevard, and is 500 feet above Phoenix. Over the past thirteen years Fountain Hills has grown from 10,190 residents to a town of over 22,000 in 2004. The Maricopa Association of Governments (MAG) estimates that the population of Fountain Hills will continue to grow to near 25,000 by 2010. Although the rate of growth has slowed due to the national economy the Town continues to attract residents who are building large custom homes to take advantage of the scenic vistas surrounding our mountain community. The Town offers a range of living styles, from small community subdivisions to a number of large custom homes. Fountain Hills also offers recreational, cultural and retirement programs that address the needs and lifestyles of active families and adults. The community consists of primarily residential property with a total of 11,700 acres. Of the total available land 8,706 acres are developable, 460 acres are zoned commercial or industrial (approximately 5%) and 3,600 acres are reserved as open space (30%). Town of Fountain Hills Fiscal Year 2005-2006 Budget Government and Organization The Town of Fountain Hills is an Arizona Municipal Corporation, acting as a general law Town as prescribed in the Arizona Revised statutes. The Town was incorporated on December 5, 1989 with the governmental and administrative affairs of the Town operating under the Council-Manager form of government. The Town Council is responsible, among other things, for the adoption of local ordinances, budget adoption, the development of citizen advisory committees and hiring the Town Manager. The Town Manager is responsible for implementation of the policies of the Town Council and administering the Town’s operations through five department directors and approximately 81.5 employees. The Magistrate, Town Attorney and Town Prosecutor are under the direction of the Town Council. Fountain Hills Community Center Town of Fountain Hills Fiscal Year 2005-2006 Budget Town of Fountain Hills DEM OGRAPHICS Population Land Use (2002)(%) 1990 1995 2000 U.S. Census Interim Census U.S. Census 10,190 14,146 20,235 Residential Undeveloped/Agricultural Public/Open Space 2005 M AG Estimate 1 23,700 Industrial/Commercial 27% 37% 34% 2% M aricopa Association of Governments Assessed Valuation of Major Taxpayers Taxpayer Qwest Corp Chapparal City Water Company Fountain Hills Village LLC Kimco Barclay Fountain Hills MCO Properties Cox Communications Target Corporation EN LLC Fountain Vista Properties LLC Adero Canyon LLC 2004/05 Assessed Valuation Type of Property Telecommunications Water Utility Nursing Home Shopping Center Industrial Communications Shopping Center Residential Commercial Residential $ Source: Treasurer of Maricopa County Town of Fountain Hills Fiscal Year 2005-2006 Budget As % of Town's Total Secondary Assessed Valuation 3,365,809 3,066,000 1,822,567 1,724,863 1,655,056 1,507,740 1,441,438 1,347,042 986,365 834,777 0.96% 0.88% 0.52% 0.49% 0.47% 0.43% 0.41% 0.39% 0.28% 0.24% 17,751,657 5.08% MAJOR EMPLOYERS Town of Fountain Hills, Arizona Employer Product/Service Fountain Hills Unified School District No. 98 Monks Construction Safeway Food Stores MCO Properties, Inc. Town of Fountain Hills Basha’s Sun Ridge Canyon Golf Course Fountain Hills Concrete Golf International Eagle Mountain Golf Course Approximate Employment Education Construction Grocery Store Property Management Government Grocery Store Golf Course Mfg. Ready-Mixed Concrete Golf Course Golf Course 250 150 95 85 75 70 70 50 50 40 Source: The 2004 Arizona Industrial Directory; Greater Phoenix Chamber of Commerce; Community Profiles Arizona Department of Commerce; and an individual employer survey. Employers Residents of the Town can find employment in neighboring Scottsdale, the Fort McDowell Indian Community, or the municipalities that make up the greater Phoenix metropolitan area. POPULATION STATISTICS Years Town of Fountain Hills Maricopa County State of Arizona 23,700* 20,235 14,146 10,190 3,524,175 3,072,149 2,551,765 2,122,101 5,832,150 5,130,632 4,228,900 3,665,339 2005 Estimate* 2000 Census 1995 Special Census 1990 Census _____________________ * Estimated population as of July 1, 2005 Source: U.S. Census Bureau. Town of Fountain Hills Fiscal Year 2005-2006 Budget Town of Fountain Hills UNEMPLOYMENT AVERAGES Years 2004 2003 2002 2001 2000 Source: Town of Fountain Hills 2.2% 2.7 3.1 2.2 1.4 Maricopa County 4.0% 4.9 5.6 3.9 2.6 State of Arizona United States 4.8% 5.6 6.2 4.7 3.9 5.5% 5.6 6.0 4.8 4.0 Arizona Department of Economic Security, Research Administration. Town of Fountain Hills Fiscal Year 2005-2006 Budget Table of Contents Budget Overview ▬▬▬▬▬▬ Budget Transmittal Message Council Goals Fiscal Year 2004-2005 Financial Accomplishments Budget Process Financial Policies Budget Schedule 1 2 4 9 15 27 Budget Summary ▬▬▬▬▬▬ All Funds Revenue and Expenditure Summary General Fund Revenues General Fund Expenditure Summary 29 45 54 Department Budgets ▬▬▬▬▬▬ Town Council Administration Operational & Community Support Information Technology Public Works Building Safety Streets Planning Parks and Recreation Parks Community Center Public Safety Law Enforcement Fire Department Municipal Court 55 59 67 71 77 87 93 101 107 115 127 133 137 141 Schedules/Summaries ▬▬▬▬▬▬ Special Revenue Funds Debt Retirement Development Fees Capital Projects Summary of Tax Levy and Tax Rate Information Schedule of Fountain Hills Assessed Valuation Schedule of Authorized Positions Succession Plan Glossary 147 151 157 163 165 166 167 171 177 Appendix ▬▬▬▬▬▬ Personnel Requests Community Requests 20 Year Financial Overview A B C Town of Fountain Hills Fiscal Year 2005-2006 Budget Town of Fountain Hills FISCAL YEAR 2005-06 BUDGET TRANSMITTAL MESSAGE To the Honorable Mayor and Town Council: I am pleased to submit the FY05-06 Operating Budget and Twenty-Year Financial Overview and proposed Capital Improvement Program for the Town of Fountain Hills. This budget is balanced and designed to convey to the public a budget message that articulates priorities and issues for the upcoming fiscal year. Capital Projects The budget also Development 5% Fees highlights any issues 5% facing the staff in Debt S ervice developing the budget, 9% and short-term Excise Tax financial and 7% General Fund operational policies 59% that were instrumental in guiding the S pecial Revenue development of the Fund annual budget. The 7% total budget, including HURF Fund EXPENDITURES BY FUND all funds, is estimated 9% at $26.7 million ($2.4M or 8.1% less than FY04-05), with projected revenues of $25.2 million (excluding transfers). Expenditures will exceed revenues this fiscal year due to proposed capital projects. The primary reason for the decrease from the prior year is construction of a new Town Hall in FY04-05. Of the total budget, $15.8 million will be used to finance the operations of the Town, that is, the General Fund. The budget could not be prepared without considering the condition of the regional, state and national economies, as well as legislative decisions that affect local governments. What happens at these levels affects both the revenue that Fountain Hills receives and the services we provide. Construction (both residential and commercial) and retail activity, contribute approximately $3.2M (20.5%) of the Town’s operating funds in the General Fund. As construction activity declines, and roughly one-fifth the associated revenues cease to be generated, the Town will be forced to find alternate sources of revenue to sustain existing community services and programs. In addition to concerns from the revenue side of the budget picture, there are also concerns over the increased cost of doing business. The Town is a service organization with over 18% of its operating costs in personnel. This, the price of insurance, health care, and additional personnel in priority areas has a significant effect on the cost of Town services. Balancing the desire to provide top quality services and higher operating costs will be the Town’s challenge for years to come. State shared revenue estimates indicate that the economy is showing signs of a recovery. Therefore, the FY05-06 budget is based on more optimistic economic forecasts than the Town has seen since FY01-02; however, the optimism is guarded. The Town is past a historic period of expansion; its economy is maturing and moving to a slower – and more sustainable – level of Fiscal Year 2005-2006 Budget -1- Town of Fountain Hills growth. The projected improvements in the Town’s revenues and savings carried over from the current fiscal year will allow Fountain Hills to meet its most pressing needs for the 05/06 fiscal year, mainly maintenance projects that were delayed due to the Budget Reduction Plan that was implemented in FY02-03. However, with the amount of overdue capital improvement projects, mainly roads as highlighted in the Capital Improvement Plan, longer-term forecasts show the Town’s needs will outpace revenues in the next few years. Given the unsettled nature of the economy, it is REVENUE SOURCES difficult to project Prope rty Tax revenues two or 5% Re ve nue Sharing Capital Proje cts more years into 18% 18% the future with any degree of De bt Se rvice certainty. The 2% forecasts serve as Spe cial Re ve nue an early warning 6% that the Town Stre e t Fund must continue to (HURF) exercise restraint Fine s, Lice nse s, 8% Pe rmits in its long-range Local Sale s Tax 9% fiscal planning. 34% Town Council’s FY 2005-2006 Prioritized Goals The Town is proposing a conservative balanced budget that includes appropriations for the goals and priorities established by the Town Council. Annually, the Fountain Hills Town Council attends a retreat with staff to identify key issues facing the Town to determine goals and objectives for the following year. The Town Manager and staff then meet to prepare an implementation plan to be incorporated into the FY05-06 budget. Develop the workplan Identify the priorities Council Retreat Prioritize goals and objectives Fiscal Year 2005-2006 Budget -2- Town of Fountain Hills Following are the six (6) prioritized goals for FY 2005-2006 that were established by the Fountain Hills Town Council at its Goal-Setting Retreat held on January 21, 2005. Goal: In an active and timely manner, participate in the planning and annexation of the State Trust Land Objectives: Annex State Trust Land before the issuance of building permits Ensure development pays its own way Develop State Trust Land consistent with existing densities and uses Gain citizen acceptance of state land annexation Have a united Council Goal: Develop a public information program and grant writing program Objectives: Provide accurate and timely information that keeps the public well informed on important government issues, services, and programs Provide an appropriate structure and recommendations for the establishment of a grant-writing program Goal: Facilitate and complete the Town’s citizen driven Strategic Planning Process Objectives: To develop a strategic plan that is: Inclusive (Citizen Driven) Simple to understand and to the point Financially responsible Can be realistically implemented Goal: Explore opportunities for meeting the community’s expanding need for additional parks and amenities Objectives: Establish the need for new park lands Determine public and user group long term needs Provide recommendations to Council, including funding sources Educate citizenry regarding national park standards Fiscal Year 2005-2006 Budget -3- Town of Fountain Hills Goal: Develop and carry-out an intergovernmental relations and cooperation program with neighboring communities Objectives: Provide an outlet for the exchange of information and the discussion and resolution of commonly held issues and other matters of importance to the Town of Fountain Hills and its neighboring jurisdictions Goal: Continue enhancing business relations and retention Objectives: Documentation of the Town’s economic development plans and activities Continue to interface with and participate in local and regional economic development agencies and their activities aimed at promoting economic growth and development Upon adoption of the Town Council goals specific work-plans are developed in each of the operating divisions to ensure that Fountain Hills residents can monitor the improvement in Town services and the achievement of the Council’s goals. The matrix below indicates which departments/divisions are responsible for the implementation of FY2005-06 goals and objectives and shows the relationship between the activities performed by the operating divisions and the effect on operating budgets reported in the division budget summaries. Goal Annex State Trust Land PIO/Grant Program Strategic Plan Process Parks/Amenities Intergovernmental Relations Program Business Relations/Retention Planning Manager Parks/Recreation √ √ √ √ √ √ Estimated FY0506 Costs $80,000 $97,100 $87,000 (existing staff) $0 $0 Fiscal Year 2004-2005 Goals, Accomplishments & Activities The FY04-05 goal activities are as follows: Worked with the water company to assure water supply for future development; prepared water analysis for impact of annexation of state trust land Developed a succession plan to identify key and at risk positions for future staffing needs; the plan was finalized and includes plans for existing staff with an interest and qualifications to move into key positions Fiscal Year 2005-2006 Budget -4- Town of Fountain Hills Initiated process to annex 1,300 acres of state trust land that borders Fountain Hills. Having the land within the Town boundaries will ensure that future development will be consistent with the Town’s general plan and add approximately 10% more land within Fountain Hills borders Developed a strategic plan process that included citizen input as to the vision for the future of Fountain Hills. The final strategic plan will be presented to the Town Council in December 2005 Worked with neighboring fire departments on mutual aid agreements Budget Highlights As in years past, the main focus of the proposed budget is the General Fund, the Town’s largest fund, which supports basic services. Developing the proposed budget required making choices to achieve a budget that balances the available resources with the Council goals, while maintaining a level of service that enhances the quality of life in Fountain Hills. In developing the proposed budget, Town staff followed a zero-based approach, leading to a focused review of services delivered by the Town, increased scrutiny of expenditures, and prioritization of programs to be funded using limited resources. Additionally, the Town will focus on funding one-time capital projects with one-time revenue sources, such as construction funds and excess revenues in the General Fund. Operating costs should be funded with stable and reliable revenue sources. Under the proposed budget, overall General Fund revenues grew by 10% over the FY04-05 budget, primarily due to an increase in State Shared Revenues (10%) and revenues from construction related activity (30%). Expenditures are projected to increase 6% over last years’ budget, primarily in repairs and maintenance as the Town strives to catch up on projects that were delayed due to the Budget Reduction Plan in FY02-03. Key initiatives of the proposed FY05-06 budget include the following - a more detailed analysis of all the Town’s revenues and expenditures is included in the budget summary and department sections. Greater Capital Investment - A significant component of the proposed budget is the Capital Improvement Plan Budget, which includes funding for public buildings, parks, streets and other major infrastructure projects. The FY05-06 budget includes funding for: • • • • • • • • Complete construction of Civic Center Phase II project (Town Hall) Eagles Nest trailhead restroom construction, Adero Canyon trailhead design Construction of a splash park at Fountain Park Construction of a skate park at Desert Vista Neighborhood Park New ramadas for Fountain Park Replacement of street sweeper to satisfy County dust control recommendation Desert Vista Neighborhood Park improvements (perimeter sidewalks, enhanced parking, upgrade off lease facility) Four Peaks Neighborhood Park improvements including backstops, dugouts for ballfields Fiscal Year 2005-2006 Budget -5- Town of Fountain Hills • • • • • • • • • Entrance monument sign near Palisades Blvd. and Eagle Mountain Parkway Public access modifications for citizens with disabilities Traffic signal at Saguaro and El Lago Boulevards Approximately $2.1M in major road improvements Design of climbing lane west on Shea Boulevard to Palisades Design sidewalk near Fountain Hills Middle School Paving project on Colony Drive to Desert Vista alley Improved signage for key business areas Additional median maintenance Facilitate and complete the Town’s citizen driven Strategic Planning Process - The FY2005-06 budget includes the appropriation of funds to support the services of a professional facilitator to complete the Town’s first strategic plan since incorporation in 1989. The strategic planning process was started in FY2004-05 and will identify key issues facing the long-term future of the Town and impact on future budgets. The process includes two Town Halls, a planning retreat, focus groups, and a professional survey with the final report expected to be delivered to the public in November 2005 and Town Council approval in December, 2005. Funds in the amount of $87,000 can be found in the Administration Department budget. Developing a public information program to support the Council goal and improving the maintenance and customer service at two parks will also be accomplished. Maintenance of the Reserve Fund - The proposed budget continues the practice of setting aside a reserve equal to 30% of the General Fund Fund Balance & Reserves budget to ensure that the General Fund Town can provide basic $8,500,000 services in the event of major emergencies. This $7,500,000 reserve is also very $6,500,000 important in retaining the Town’s AA3 bond $5,500,000 ratings. Reserves in $4,500,000 excess of the fund balance policy are transferred to $3,500,000 the Capital Projects fund $2,500,000 for future appropriation 97-98 98-99 99-00 00-01 01-02 02-03 03-04 04-05 05-06 by the Council. Fiscal Years Fiscal Year 2005-2006 Budget -6- Town of Fountain Hills Recommendation for One-Time Revenues The proposed FY05-06 budget for all funds includes capital expenditures in the amount of $4.1M funded by development fees, general fund transfer, and excise taxes (see page 39). Non-recurring revenues (construction sales tax, building permit and subdivision fees and development fees), are contributing $3.2 million to the FY05-06 budget, which allow the Town to budget for one-time capital expenditures. However, these revenues should not be depended upon for operating expenditures. These non-renewable funds are opportunities to purchase land or buildings, improve Town owned properties, provide matching funds for grants, equipment purchases, economic development activities and other capital projects as determined by the Town Council. While the Town continues to receive sales tax and permit revenue from construction activity, any residual balance in the General Fund should be transferred to the Capital Projects fund. The accumulated resources would provide funding for capital projects that the Town Council would approve during the next budget cycle. The FY05-06 budget includes a transfer of the excess revenues over expenditures from FY04-05 to the Capital Projects Fund and leaves a fund balance for future capital projects as construction related revenue declines. A Debt of Gratitude I would like to offer my special thanks to the Fountain Hills Mayor, Town Council members, and the numerous commission members for their many hours of volunteer service without which the Town could not function in the fine manner that it has over the years. This volunteer core of more than 200 citizens offers Town staff a vast bank of knowledge about subjects that contribute not only to planning for the present, but also for the future of Fountain Hills. I would also like to thank the Town of Fountain Hills department directors for their patience and great effort in preparing their departmental budgets. The directors and their staff endured several sessions with me in justifying their programs, developing cost estimates, and answering my many questions. My appreciation also goes to Julie Ghetti, for her professional and financial talents in preparing this year’s budget; also to Joan McIntosh and Nancy Knihnisky for their tireless assistance with this project. The staff’s efforts have resulted in a balanced budget, which achieves the Council’s current goals, and assists in future planning towards the vision of Fountain Hills. Respectfully submitted, Timothy G. Pickering, CEcD, ICMA-CM Town Manager Fiscal Year 2005-2006 Budget -7- Town of Fountain Hills This page left intentionally blank. Fiscal Year 2005-2006 Budget -8- Town of Fountain Hills BUDGET PROCESS Mission of the Budget Process Communication and involvement with citizens and other stakeholders is stressed. The broad nature of the budget mission allows issues to be addressed that have limited the success of budgeting in the past. Apathy is a serious illness of government; it is in the best interests of government to have involved stakeholders. The term stakeholder refers to anyone affected by or who has a stake in government. This term stakeholder includes, but is not limited to: citizens, customers, elected officials, management, employees and their representatives, businesses, vendors, other governments, and the media. It is vital that the budget processes include diverse stakeholders. Each year, using a modified zero-based budgeting process, the Town of Fountain Hills budget is developed from the Town Council’s priorities by the Finance Department with the individual departments and the Town Manager. Meetings with each department, the Town Manager and the Finance Department are held during the month of March. After these meetings are completed, a proposed balanced budget is prepared for submittal to the full Town Council and public in May. Control of each legally adopted annual budget is at the department level; the Town Manager may at any time transfer any unencumbered appropriation balance or portion thereof between general classifications of expenditure (line items) within a department. The items are reduced by a like amount. At the request of the Town Manager the Council may transfer any unencumbered appropriation balance or portion thereof between one department to another. Pursuant to Arizona Revised Statutes, “No expenditure shall be made for a purpose not included in such budget..”. Thus a Contingency line item is included within the General Fund to accommodate most unplanned expenditures. The other option in amending the budget, according to state law, is for the Council to declare an emergency and then transfer the monies from one line item or department to another. In essence, any approved Council transfers do amend the budget although the budget is never reprinted. All transfers are reflected on the following year’s legal schedules as required by the Auditor General’s Office. Recommended Budget Practices The Town of Fountain Hills budget process is designed to meet citizens’ needs for information and input; decision makers’ needs for information and advice from citizens on their desired blend of services; and the time line set by the State of Arizona through Arizona Budget Law. The Town of Fountain Hills budget process incorporates the recommended practices promulgated by the National Advisory Council on State and Local Budgeting (NACSLB). Concurrently, Town staff applies diligent effort into improving the process, decisions and outcomes with each new budget year. The NACSLB’s practices encourages governments to consider the longer consequences of actions to ensure that impacts of budget decisions are understood over a multiyear planning horizon and to assess whether program and service levels can be sustained. Fiscal Year 2005-2006 Budget -9- Town of Fountain Hills 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 These key characteristics of good budgeting make clear that the budget process is not simply an exercise in balancing revenues and expenditures one year at a time, but is strategic in nature, encompassing a multi-year financial and operating plan that allocates resources on the basis of identified goals. A good budget process moves beyond the traditional concept of line-item expenditure control, providing incentives and flexibility to managers that can lead to improved program efficiency and effectiveness. Principles and Elements of the Budget Process The budget process consists of four broad principles that stem from the definition and mission previously described. These principles encompass many functions that spread across a governmental organization. They reflect the fact that development of a balanced budget is a political and managerial process that also has financial and technical dimensions. Each of the principles of the budget process incorporates components or elements that represent achievable results. These elements help translate the guiding principles into action components. Individual budgetary practices are derived from these elements. The principles and elements provide a structure to categorize budgetary practices. 1) Establish broad goals to guide government decision-making – a government should have broad goals that provide overall direction for the government and serve as a basis for decision-making. a) Assess community needs, priorities, challenges and opportunities. b) Identify opportunities and challenges for governmental services, capital assets, and management c) Develop and disseminate broad goals 2) Develop approaches to achieve goals – a government should have specific policies, plans, programs, and management strategies to define how it will achieve its long-term goals. a) Adopt financial policies b) Develop programmatic, operating, and capital policies and plans c) Develop programs and services that are consistent with policies and plans d) Develop management strategies Fiscal Year 2005-2006 Budget - 10 - Town of Fountain Hills 3) Develop a budget consistent with approaches to achieve goals – a financial plan and budget that moves toward achievement of goals, within the constraints of available resources, should be prepared and adopted. a) Develop a process for preparing and adopting a budget b) Develop and evaluate financial options c) Make choices necessary to adopt a budget 4) Evaluate performance and make adjustments – program and financial performance should be continually evaluated, and adjustments made, to encourage progress toward achieving goals. a) Monitor, measure, and evaluate performance b) Make adjustments as needed When does the “budget season” start? The budget process typically begins in January when the Finance Department begins to review current levels of service, Council goals and objectives as identified at the annual Council retreat, proposed capital improvements, and financial forecasts. In reality, the budget process for the Town is actually an ongoing process. Throughout the fiscal year, citizens and staff submit suggestions for new services, regulations, funding sources, and improved service delivery, as well as concerns to the Town Council and commissions for discussion, study, and/or implementation. Advisory boards and commissions develop plans for new or enhanced programs to be included in the following year’s budget proposal. Implementing, Monitoring, and Amending the Budget A budget is an annual planning tool - it identifies the Town’s work plan and matches the financial, material, and human resources available with the requirements to complete the work plan. It includes information about the organization and identifies the Council policy that directed the budget preparation. Although a budget is often discussed as a financial document, the financial portion means very little without the policy and administrative information that explains what the organization intends to do with the financial resources. In July, the Town staff begins the process of implementing the newly adopted budget and is accountable for budgetary control throughout the fiscal year. Revenue and expenditure patterns are examined, compared to budget plans, and corrective action, if necessary, is taken during the fiscal year. Town management is provided with a monthly budget and activity report; the Town Council is provided a summary budget report at the end of each quarter disclosing actual revenue, expenditure, and fund balance performance as compared to the budget. The Town of Fountain Hills budget is adopted at a department level and the Capital Improvement Plan is adopted at a project level. Budgetary and Accounting Basis The budget is prepared on a modified accrual basis of accounting for all fund types. This means that expenditures are recorded when the related fund liability is incurred, and revenues are recognized only when they are measurable and available. In all cases, when goods and services are not received by year-end, the encumbrances lapse. It also means certain transactions are Fiscal Year 2005-2006 Budget - 11 - Town of Fountain Hills recognized in the budget on a basis other than Generally Accepted Accounting Principles (GAAP), which is the basis used to prepare the Town’s Comprehensive Annual Financial Report (CAFR). The major differences between the budgetary and GAAP basis are: • • • • Certain revenues, expenditures and transfers are not included on the budget basis, but are accrued and reported on the GAAP basis. For example, increases or decreases in compensated absences are not reported for budget basis purposes, but are presented as revenues or expenditures on the GAAP basis. Depreciation is not budgeted as an expenditure in budgetary accounting Capital outlay is an expenditure in budgetary accounting and an asset in GAAP Certain debt service principal and interest payments are accounted for as expenses in the General Fund for budget basis purposes, but are reported as expenses in the Debt Service Fund on the GAAP basis. All actual amounts in the budget document are shown on the budgetary basis to facilitate meaningful comparisons. What funds are included in this budget? The accounts of the Town are organized on the basis of funds or account groups, each of which is considered a separate accounting entity. Government resources are allocated to and accounted for in individual funds based on the purposes for which they are to be spent and the means by which spending activities are controlled. The Town of Fountain Hills appropriates all funds in its budget process: General Fund – revenues and expenditures to carry out basic governmental activities such as police and fire, recreation, planning, legal services, administrative services, etc. (non-restricted). Special Revenue Funds – revenues derived from specific taxes or other earmarked revenue sources, usually required by statute or ordinance to finance particular activities. Highway User Revenue Fund (HURF) and grants are examples of special revenue funds (restricted by statute). Excise Tax Revenue Funds – designated for bond payments for mountains, Civic Center phase II project, and downtown development (restricted by legislative action). Debt Service Funds – established to account for the accumulation of resources for, and the payment of, general long-term debt principal and interest. Municipal Property Corporation (MPC) and Community Facilities District (CFD) funds are included within the debt service funds. Capital Projects Funds – to account for the purchase or construction of major capital facilities, such as the new Civic Center Phase II project, park and major road improvements. Operating and Capital Budget Relationship Included within the annual budget is a Five Year Capital Improvement Plan, presented on a budget basis. Capital project budget funding sources are matched with budgeted expenditures. Governmental accounting procedures require adequate budget to pay for an entire contract to be available and appropriated in the period in which a contract is Fiscal Year 2005-2006 Budget - 12 - Town of Fountain Hills entered; therefore, expenditures are presented on a budget basis as opposed to cash flow basis. For example, a 180 day construction contract entered into in May of fiscal year one would have cash expenditures from May of fiscal year one through October of fiscal year two, however, the entire budget for this contract must be appropriated in fiscal year one, the year in which the contract was entered; any unspent funds at fiscal year-end are carried forward and budgeted again in year two. When can a citizen have input into the budget process? Town staff welcomes comments and suggestions throughout the year. The final opportunity occurs in May when the Town Council holds a public hearing on the proposed budget as recommended through the budget hearings. This is the last opportunity to increase the budget for the next fiscal year. Once the tentative budget is adopted, line items can only be decreased prior to the budget’s final adoption. Many revenue estimates must be made based on assumptions regarding general economic conditions. For example, development related revenues (building permits, construction sales taxes, etc.) are all based on assumptions regarding development forecasts for Fountain Hills during the coming year. State shared revenue estimates are provided by the League of Arizona Cities and Towns. Revenue estimates are conservative to avoid setting expenditure budgets that will not be supported by actual revenues. Can the budget be amended once it is adopted? During the fiscal year, the Town Manager may transfer appropriations between line items within a department. Fiscal Year 2005-2006 Budget - 13 - Town of Fountain Hills This page left intentionally blank. Fiscal Year 2005-2006 Budget - 14 - Town of Fountain Hills TOWN OF FOUNTAIN HILLS FINANCIAL POLICIES The principles of sound financial management establish the framework for overall fiscal planning and management. The principles set forth guidelines for both current activities and long range planning. Following these principles will enhance the Town’s financial health as well as its image and credibility with its citizens, the public in general, bond rating agencies and investors. The policies will be reviewed annually to assure the highest standards of fiscal management. Policy changes will be needed as the Town continues to grow and becomes more diverse and complex in the services it provides, as well as the organization under which it operates to provide these services to its citizens. The Town Manager and staff have the primary role of reviewing and providing guidance in the financial area to the Town Council. The overall financial goals underlying these principles are: 1. Fiscal Conservatism: to ensure that the Town is at all times in a solid financial condition, defined as: a) b) c) d) e) cash solvency – the ability to pay bills budgetary solvency – the ability to balance the budget long run solvency – the ability to pay future costs service level solvency – the ability to provide needed and desired services adhering to the highest accounting and management practices as set by the Government Finance Officers’ Association standards for financial reporting and budgeting, by the Governmental Standards Board and other professional standards 2. To maintain an Aa3 or better bond rating in the financial community to assure the Town taxpayers that the Town government is well managed and financially sound. 3. To have the ability to withstand local and regional economic fluctuations, to adjust to changes in the service requirements of our community, and to respond to changes in Federal and State priorities and funding as they affect the Town’s residents. 4. To deliver quality services in an affordable, efficient and cost-effective basis providing full value for each tax dollar. FUND BALANCE POLICY Fund balance is defined as the cumulative difference of all revenues and expenditures, also considered the difference between fund assets and fund liabilities, known as fund equity. Fund balance is an important indicator of the Town’s financial position and adequate reserves must be maintained to allow the Town to continue providing services to the community during periods of economic downturns and/or unexpected emergencies or requirements. The level of Fund Balance is related to the degree of uncertainty that the Town faces. A prudent level of financial resources is necessary to protect against the need to reduce service levels or raise taxes and fees due to temporary revenue shortfalls or unpredicted one-time expenditures. With the Town dependency upon State Shared Income and State Sales Tax revenues for one third of the General Fund budget there is increased opportunity for fluctuation. Additionally, a Fiscal Year 2005-2006 Budget - 15 - Town of Fountain Hills significant portion of Town revenue is received from sales taxes – both state shared and local which are sensitive to fluctuations in the economy. Therefore, the level of reserves needs to be sufficient to ensure stability in on-going government operations during a slowdown in the economy or legislative changes to the revenue sharing formula. Other objectives that influence the size of the fund balance are: a) b) c) d) preserving or improving the Aa3 bond rating maintaining a positive trend to historical fund balances maintaining a rating equal to or better than surrounding communities maintaining ratios consistent with desired outcomes of ten key ratios of financial condition (Government Finance Review, Dec. 1993) – Appendix A General Fund The Town fund balance consists of three (3) components, defined below. In order to satisfy the objective of maintaining a bond rating equal to or better than surrounding peer communities a fund balance of at least 30% of revenues is recommended. The three components added together will help achieve the 30% goal. Definitions: Undesignated unreserved fund balance – available expendable financial resources that are not the object of tentative management plans. Also defined as residual balance after revenues, expenditures and reserved/designated fund balance and available for future year appropriation. Designated unreserved fund balance – management’s intended use of otherwise available expendable financial resources reflecting actual plans submitted by the Town Manager and approved by the Town Council. An example would be funds set aside for future capital purchases, land acquisition, construction projects, equipment replacement, etc. Reserved fund balance – the portion of the Town funds that are not available for appropriation. Guidelines: In order to achieve the objectives of this policy, and to maintain sufficient working capital and a comfortable margin of safety to address emergencies and unexpected declines in revenue without borrowing, the following guidelines shall be adhered to by the Town Manager, staff and Town Council: Undesignated unreserved fund balance – designated for unanticipated expenditure or loss of revenue, the Town of Fountain Hills' undesignated unreserved fund balance in the General Fund at the end of any fiscal year will be equal to no less than 30 days of annual operating expenditures for the upcoming fiscal year. This contingency will provide for the temporary financing of an unforeseen nature for that year. Expenditures for these emergency or unforeseen appropriations can only be undertaken with Town Manager approval and only if funds are not available in the department requesting the contingency funding. Expenditures exceeding $20,000 will require Council approval. This contingency will expire at the end of each fiscal year and any unused balance will be included with the funds available for appropriation in the following fiscal year. Fiscal Year 2005-2006 Budget - 16 - Town of Fountain Hills Designated unreserved fund – the Town will maintain a designated unreserved fund balance in the General Fund of a minimum ten percent (10%) of the average actual General Fund revenues for the preceding five fiscal years. These reserves will be designated for “pay-as-you-go” capital replacement expenditures, equipment replacement, capital projects, prepay existing Town debt, or any other expenditure that is non-recurring in nature. The 10% is the minimum and is based on the Property and Equipment Replacement Schedule, which may be increased to accelerate accumulation funds for a large capital expenditure. To the extent these reserves are expended, additional funds necessary to restore this additional ten percent (10%) amount will be provided in at least approximately equal contributions during the five fiscal years following the fiscal year in which the event occurred. The designated General Fund Balance can only be authorized for expenditure upon recommendation of the Town Manager and vote of the Town Council. Reserved Fund Balance – the Town will maintain a reserved fund balance in the General Fund of 20% of the average actual General Fund revenues for the preceding five fiscal years, indicating stable fiscal policies. The maintenance of this fiscal balance is a particularly important factor considered by credit rating agencies in their evaluation of the credit worthiness of the Town. It is of primary importance that the Town’s credit rating be protected. During the annual budget process the Town Manager will estimate the surplus or deficit for the current year and prepare a projection of the year-end undesignated general fund balance. Such projection will include an analysis of trends in fund balance levels on an historical and future projection basis. Funds in excess of the fund balance goal will be retained in the undesignated unreserved General Fund Balance, and may be considered to supplement "pay as you go” capital outlay expenditures, or may be used to prepay existing Town debt. These funds may not be used to establish or support costs that are recurring in nature. This policy will be reviewed by the Town Manager every three years following adoption or sooner at the direction of the Town Council. Special Revenue Funds The Highway User Revenue Fund (HURF) is a restricted fund and depends upon State Shared Revenues for over 90% of annual revenues. This fund may only be used for street and highway purposes. The combined undesignated unreserved, designated unreserved and reserved Fund Balance will be based on the minimum requirement as specified in the Property and Equipment Replacement Schedule. The schedule will be reviewed on an annual basis to determine the required amount to be set aside as designated unreserved Fund Balance. The Excise Tax (.4% of Local Sales Tax) Fund is a restricted fund dedicated to Downtown Development and Land Preservation. The combined undesignated unreserved, designated unreserved and reserved Fund Balance will be no less than the annual debt service payment for Land Preservation and prior year available funds for Downtown Development. Fiscal Year 2005-2006 Budget - 17 - Town of Fountain Hills Debt Service Funds The Debt Service Fund is established for the payment of principal and interest on bonded indebtedness. Revenues are derived from a property tax levy, pledged excise taxes, municipal property lease payments and shared revenues. Revenues are received in amounts sufficient to pay the annual debt service payment, therefore, the undesignated unreserved, designated unreserved and reserved Fund Balance will be no less than the annual debt service payment due on July 1 of the new fiscal year. Capital Project Funds The Capital Project Funds includes accumulated Development Fees that are assessed on new construction for the purpose of funding growth. These funds are restricted to growth-related capital expenditures. The undesignated unreserved, designated unreserved and reserved fund balance will be established each fiscal year during the budget process depending on planned expenditures but cannot exceed accumulated revenues. The Development Fees must be expended within six years of collection or refunded to the taxpayer. Fiscal Year 2005-2006 Budget - 18 - Town of Fountain Hills FINANCIAL PLANNING Fiscal planning refers to the process of identifying resources and allocating those resources among competing purposes. The primary vehicle for this planning is the preparation, monitoring and analyses of the Town’s budget. It is increasingly important to monitor the performance of the programs competing to receive funding. 1. The Town Manager shall submit to the Town Council a proposed annual budget, with their recommendations, and shall execute the budget as finally adopted, pursuant to Section 15.1-602 of the Arizona Revised Statues, as amended. The Town will budget revenues and expenditures on the basis of a fiscal year which begins July 1 and ends on the following June 30. The Town Council will adopt the budget no later than June 30. 2. The Town will prepare a budget in accordance with the guidelines established by the Government Finance Officers Association in its Distinguished Budget Award Program. The proposed budget will contain the following: a) Revenue estimates by major category, by major fund; b) Expenditure estimates by department levels and major expenditure category, by major fund; c) Estimated fund balance by major fund; d) Debt service by issue detailing principal and interest amounts by fund. e) Proposed personnel staffing levels; f) A detailed schedule of capital projects, including a capital improvement program; g) Any additional information, data, or analysis requested of management by the Town Council. 3. The operating budget will be based on the principle that current operating expenditures, including debt service, will be funded with current revenues creating a balanced budget. The Town will not balance the current budget at the expense of meeting future years’ expenditures; for example accruing future years' revenues or rolling over short-term debt to avoid planned debt retirement. 4. Ongoing operating costs should be supported by ongoing, stable revenue sources. This protects the Town from fluctuating service levels, and avoids crises when one-time revenues are reduced or removed. Revenues from growth or development should be targeted to costs related to development, or invested in improvements that will benefit future residents or make future service provision efficient. 5. The Town Manager will provide an estimate of the Town's revenues annually for each fiscal year. The estimates of special (grant, excise tax, etc.) revenues and interfund transfers will also be provided by the Town Manager. 6. The budget will fully appropriate the resources needed for authorized regular staffing. At no time shall the number of regular full-time employees on the payroll exceed the total number of full-time positions authorized by the Town Council. All personnel actions shall be in conformance with applicable federal and state law and all Town ordinances and policies. Fiscal Year 2005-2006 Budget - 19 - Town of Fountain Hills 7. The Town Manager shall provide annually a budget preparation schedule outlining the preparation timelines for the proposed budget. Budget packages for the preparation of the budget, including forms and instructions, shall be distributed to Town departments in a timely manner for the department’s completion. Department Directors shall prepare and return their budget proposals to the Administration Department, as required in the budget preparation schedule. 8. Performance measurement indicators will be integrated into the budget process as appropriate. 9. Alternatives for improving the efficiency and effectiveness of the Town's programs and the productivity of its employees will be considered during the budget process. Duplication of services and inefficiency in service delivery should be eliminated wherever they are identified. 10. Department Directors are required to monitor revenues and control expenditures to prevent exceeding their total departmental expenditure budget. It is the responsibility of these department directors to immediately notify the Town Manager of any exceptional circumstances that could result in a departmental expenditure budget to be exceeded. 11. A quarterly report on the status of the General Fund budget and trends will be prepared within 60 days of the end of each quarter by the Administration Department. In addition, the quarterly report shall include revenue and expenditure projections through the end of the fiscal year. 12. If a deficit is projected during any fiscal year, the Town will take steps to reduce expenditures, increase revenues or, if a deficit is caused by an emergency, consider using the undesignated unreserved General Fund Balance, to the extent necessary to ensure a balanced budget at the close of the fiscal year. The Town Manager may institute a cessation during the fiscal year on hirings, promotions, transfers, and capital equipment purchases. Such action will not be taken arbitrarily and without knowledge and support of the Town Council. EXPENDITURE CONTROL Management must ensure compliance with the legally adopted budget. In addition, purchases and expenditures must comply with legal requirements. 1. Expenditures will be controlled by an annual budget at the departmental level. The Town Council shall adopt appropriations through the budget process. Written procedures will be maintained for administrative approval and processing of certain budget transfers within funds. 2. The Town will maintain a purchasing system that provides needed materials in a timely manner to avoid interruptions in the delivery of services. All purchases shall be made in accordance with the Town's purchasing policies, guidelines and procedures and applicable state and federal laws. The Town will endeavor to obtain supplies, equipment and services as economically as possible. Fiscal Year 2005-2006 Budget - 20 - Town of Fountain Hills 3. Expenditures will be controlled through appropriate internal controls and procedures in processing invoices for payment. 4. The Town shall pay applicable contractor invoices in accordance with the requirements of Arizona Revised Statues 34-221. 5. The State of Arizona sets a limit on the expenditures of local jurisdictions. The Town will comply with these expenditure limitations and will submit an audited expenditure limitation report, audited financial statements, and audited reconciliation report as defined by the Uniform Expenditure Reporting System (A.R.S. Section 41-1279.07) to the State Auditor General each year. 6. Assets will be capitalized at $10,000 and will be recorded in the Town of Fountain Hills Summary of General Fixed Assets. REVENUES AND COLLECTIONS All government employees are considered stewards of public funds. In order to provide funding for service delivery, the Town must have reliable revenue sources. These diverse revenues must be collected equitably, timely, and efficiently. 1. The Town's goal is a General Fund revenue base that is equally balanced between sales taxes, state shared revenues, property tax, service fees and other revenue sources. 2. The Town will strive for a diversified and stable revenue base to shelter it from economic changes or short-term fluctuations and in any one revenue source by doing the following: a) Establishing new charges and fees as needed and as permitted by law at reasonable levels. b) Pursuing legislative change, when necessary, to permit changes or establishment of user charges and fees. c) Aggressively collecting all revenues, late penalties, outstanding taxes owed and related interest as authorized by the Arizona Revised Statues. 3. The Town will monitor all taxes to insure they are equitably administered and collections are timely and accurate. Fees and charges should be based on benefits and/or privileges granted by the Town, or based on costs of a particular service. 4. The Town should pursue intergovernmental aid for those programs and activities that address a recognized need and are consistent with the Town's long-range objectives. Any decision to pursue intergovernmental aid should include the consideration of the following: a) Present and future funding requirements. b) Cost of administering the funds. c) Costs associated with special conditions or regulations attached to the grant award. 5. The Town will attempt to recover all allowable costs--both direct and indirect--associated with the administration and implementation of programs funded through intergovernmental aid. In the case of the School District, the Town may determine to Fiscal Year 2005-2006 Budget - 21 - Town of Fountain Hills recover less than full cost of services provided. In the case of State and Federally mandated programs, the Town will attempt to obtain full funding for the service from the governmental entity requiring the service be provided. Allowable costs will be determined based upon a “Cost Allocation Study” prepared periodically. 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. 1. The Town may establish user fees and charges for certain services provided to users receiving a specific benefit. 2. User fees and charges will be established to recover as much as possible the direct and indirect costs of the program or service, unless the percentage of full cost recovery has been mandated by specific action of the Town Council. It is recognized that occasionally competing policy objectives may result in reduced user fees and charges that recover a smaller portion of service costs. 3. Periodically, the Town will recalculate the full costs of activities supported by user fees to identify the impact of inflation and other attendant costs. DEBT POLICY The purpose of this debt policy is to provide for the preservation and enhancement of the Town’s bond ratings, the maintenance of adequate debt service reserves, compliance with debt instrument covenants and provisions and required disclosures to investors, underwriters and rating agencies. The overall debt management policy of the Town of Fountain Hills is to ensure that financial resources are adequate in any general economic situation to not preclude the Town’s ability to pay its debt when due. These policies are meant to supplement the legal framework of public debt laws provided by the Arizona Constitution, State Statutes, Federal tax laws and the Town’s current bond resolutions and covenants. The Arizona Constitution limits a city or town’s bonded debt capacity (outstanding principal) to certain percentages of the Town’s secondary assessed valuation by the type of project to be constructed. There is a limit of 20% of secondary assessed valuation for projects involving water, sewer, artificial lighting, parks, open space, and recreational facility improvements. There is a limit of 6% of secondary assessed valuation for any other generalpurpose project. General 1. The Town will use current revenues to pay for short-term capital projects, repair and maintenance items and will reserve long-term debt for capital improvements with useful lives of ten (10) years or more. The Town will not use long-term debt to fund current governmental operations and will manage its cash in a fashion that will prevent any Fiscal Year 2005-2006 Budget - 22 - Town of Fountain Hills borrowing to meet working capital needs. However, exclusive reliance upon pay-as-yougo funds for capital improvements requires existing residents to pay for improvements that will benefit new residents who relocate to the area after the expenditure is made. Financing capital projects with debt provides for an “intergenerational equity”, as the actual users of the capital asset pay for its cost over time, rather than one group of users paying in advance for the costs of the asset. Where there is a benefit to all future residents, debt financing should be given consideration 2. To increase its reliance on current revenue to finance its capital improvements, and promote a “pay-as-you-go” philosophy, the Town will appropriate each year a percentage of current revenues to maintain a minimum 10% of average actual General Fund revenues for the preceding five fiscal years in the Designated Unreserved Fund. Capital Improvement Plan 1. As part of the budget process each year the Town will prepare a capital spending plan that provides a detailed summary of specific capital projects for the five fiscal years subsequent to the fiscal year presented. The plan will include the name of the project, project schedule, capital cost by fiscal year and a recommended specific funding source. The five year capital improvement plan will be developed within the constraints of the Town’s ability to finance the plan. 2. The Town Manager and Department Directors will develop formal ranking criteria that will be used in the evaluation of all capital projects. The program ranking criteria will give greatest weight to those projects which protect the health and safety of its citizens. Pay-as-you-go project financing shall be given the highest priority. Capital improvements that must rely upon debt financing shall be accorded a lower priority and projects with a useful life of less than five years shall not be eligible for inclusion in bond issues. 3. Lease purchase financing shall only be undertaken when the project is considered essential to the efficient operation of the Town or to remove expenditures that would exceed the State imposed expenditure limitation. The Town Manager or designee shall determine that pay-as-you-go expenditures do not cause the state imposed expenditure limitation to be exceeded in any fiscal year. 4. All capital project requests will be accompanied by a description of the sources of funding to cover project costs. Where borrowing is recommended, a dedicated source of funds to cover debt service requirements must be identified. All capital project requests will be required to identify any impact the project may have on future operating costs of the Town. The Town will seek grants to finance capital improvements and will favor those projects which are likely to receive grant money. 5. All capital project appropriations and amendments to the capital improvement plan must be approved by the Town Council. 6. The capital plan will include all equipment and facilities with a useful life of greater than ten years and a cost greater than $50,000. Debt financing shall not exceed the useful life of the infrastructure improvement or asset. Fiscal Year 2005-2006 Budget - 23 - Town of Fountain Hills Financing Alternatives 1. Financing alternatives are listed below but are not limited to: a) Grants b) Developer Contributions c) General Obligation Bond – requires voter approval, supported by an ad valorem (property) tax d) Revenue Bonds – repaid with revenue stream (HURF, revenue generated by project) e) Municipal Property Corporation Bonds – repaid with a dedicated revenue source f) CFD or Special District Bonds – supported by an ad valorem property tax g) Capital Leases – repaid within operating budget h) Commercial Paper (CP) or Bond Anticipation Notes (BAN) with terms less than two years 2. Town Debt Service costs (GO, Revenue Bonds, MPC, Leases) shall not exceed 20% of the Town’s operating revenue in order to control fixed costs and ensure expenditure flexibility. Improvement District (ID), Community Facility District (CFD) and Special District debt service is not included in this calculation because it is paid by district property owners and is not an obligation of the general citizenry. Separate criteria have been established and included within the Town’s CFD policy. 3. In accordance with requirements of the State of Arizona Constitution, total bonded debt will not exceed the 20% limitation and 6% limitation of the total secondary assessed valuation of taxable property in the Town. 4. The Town shall comply with all U.S. Internal Revenue Service arbitrage rebate requirements for bonded indebtedness. 5. Where applicable, the Town will structure General Obligation bond issues to create level debt service payments over the life of the issue. The goal will be to strive for a debt repayment schedule to be no more than fifteen (15) years; at no time will the debt exceed twenty-five (25) years. 6. Refunding bonds will be measured against a standard of the net present value debt service savings exceeding 3% of the principal amount of the bonds being refunded, or if savings exceed $750,000, or for the purposes of modifying restrictive covenants or to modify the existing debt structure to the benefit of the Town. Refinancings undertaken for other reasons should proceed only when the advantages have been clearly shown in a cost/benefit analysis of the transaction. 7. The Town will seek to maintain and, if possible, improve the current bond rating in order to minimize borrowing costs and preserve access to credit. 8. An analysis showing how a new issue combined with current debt impacts the Town’s debt capacity and conformance with Town debt policies will accompany every future bond issue proposal. The debt capacity analysis should reflect a positive trend and include: Fiscal Year 2005-2006 Budget - 24 - Town of Fountain Hills a) b) c) d) e) f) g) percent of debt outstanding as a percent of the legal debt limit measures of the tax and revenue base evaluation of trends relating to expenditures and fund balance debt service as a percentage of assessed valuation measures of debt burden on the community tax-exempt market factors affecting interest costs debt ratios 9. Municipal Property Corporation and contractual debt, which is non-voter approved, will be utilized only when a dedicated revenue source (e.g. excise taxes) can be identified to pay debt service expenses. The project to be financed will generate net positive revenues (i.e., the additional revenues generated by the project will be greater than the debt service requirements). 10. The Town’s privilege tax to debt service goal will be a ratio of at least 3.5:1 to ensure the Town’s ability to pay for long term debt from this elastic revenue source. Issuance of Obligations 1. The Town shall select the underwriter and the paying agent/registrar for each debt issuance based on competitive bid. The underwriter must be a firm domiciled in Arizona with an office in the Phoenix area and a record of prior working relationships. 2. The request for proposals process will be designed to select the service providers that offer the Town the best combination of expertise and price. The Town is not required to select the firm offering the lowest price, but a report must be prepared by the Town Manager providing justification to the Town Council for a recommendation when other than the lowest bidder is chosen. The review of all proposals submitted shall be the responsibility of the Town Manager. 3. The Town of Fountain Hills will use competitive sales as the primary means of selling new General Obligation or Revenue bonds that are repaid through ad valorem (property) taxes. Negotiated sales will be permitted for all other debt issues when it is expected to result in a lower true interest cost than would a competitive sale of that same date and structure or there is evidence of volatile market conditions, complex security features, or another overriding factor. 4. The Town Manager or designee and Town Attorney will coordinate their activities to ensure that all securities are issued in the most efficient and cost-effective manner and in compliance with the Town’s governing statutes and regulations. The Manager and the Town Attorney shall consult and jointly select the bond counsel for a bond issue. The Town Attorney will review all documents related to the issuance of securities by the jurisdiction. 5. The Town will seek a rating on all new issues which are being sold in the public market if economically feasible. Fiscal Year 2005-2006 Budget - 25 - Town of Fountain Hills 6. The Town will report on an annual basis all financial information and/or notices of material events to the rating agencies and Nationally-Recognized Municipal Securities Information Repositories (NRMSIR’s). The annual report will include but not be limited to the Town’s annual Comprehensive Annual Financial Report (CAFR). 7. The Town will require any institution or individual investing monies as an agent for the Town to do so in a manner consistent and in compliance with the Town’s adopted Investment Policy. 8. The Town will provide detailed draw schedules for any project to be funded with borrowed monies. The Town will invest the proceeds or direct a trustee to invest the proceeds of all borrowings in a manner that will ensure the availability of funds as described in the draw schedules. 9. The Town acknowledges the responsibilities of the underwriting community and pledges to make all reasonable efforts to assist underwriters in their efforts to comply with SEC Rule 15c2-12 and MSRB Rule G-36. The Town of Fountain Hills’ capital improvement program ranking criteria will give greatest weight to those projects, which protect the health and safety of it’s citizens. Pay-as-you-go project financing shall be given the highest priority. Capital improvements that must rely upon debt financing shall be accorded a lower priority. All capital project requests will be accompanied by a description of the sources of funding to cover project costs. Where borrowing is recommended, the source of funds to cover debt service requirements must be identified. All capital project requests will be required to identify any impact the project may have on future operating costs of the Town. Department Directors will submit a detailed description of the useful life of capital projects submitted in conjunction with the preparation of the Town’s CIP. Projects with a useful life of less than ten years shall not be eligible for inclusion in bond issues. The Manager shall incorporate an estimate of the useful life of proposal capital improvements in developing an amortization schedule for each bond issue. If a short-lived asset or project (less than ten years) is included in a bond issue, then the bond amortization schedule shall be adjusted to reflect the asset’s rapid depreciation. At no time shall the amortization exceed the life of the asset. How do I get more information? All requests for public information in the Town of Fountain Hills are handled by the Town Clerk’s office. Please call (480) 837-2003 or visit the Town’s website www.fh.az.gov and click on the Accounting Department icon. Fiscal Year 2005-2006 Budget - 26 - Town of Fountain Hills Budget Schedule (Fiscal Year 2005-2006) January 21 Council Goal-Setting, Dept Directors retreat, budget priorities identified Monday, February 14 Accounting submits summary of estimated FYE 04-05 revenue, expenditures and fund balances to Town Manager, Department Directors Department Directors provide accounting with new staffing requests for FY05-06 Wednesday, Feb. 16 Accounting provides department directors with FY05-06 wage and benefits budget line items Departments submit baseline budget justification sheets to Accounting Feb. 22 – March 4 Fiscal year 2005-2006 revenue projections are prepared by Accounting and reviewed with Town Manager Friday, Feb. 25 Department directors submit proposed justification sheets for FY06 budget to Accounting (base budget plus supplemental requests) Friday, March 4 Tuesday, March 8 March 7–March 25 Written department verbiage for budget document due to Accounting (electronic format - Word) Director Retreat Staff and Town Manager meet to review justifications and decisions made for requested expenditures Department Directors make changes to verbiage to reflect changes Monday, April 4 Completed draft budget document submitted to Town Manager April 4 – April 15 Review of draft budget document by Town Manager April 18 – April 28 Document revised by Accounting, prepared for copying April 29 Thursday, May 5 Council receives copy of draft budget Overview of budget and tentative adoption of maximum Tuesday, May 17 Budget work study May 18, May 25 Publish tentative budget in newspaper Thursday, June 2 Adopt final budget Thursday, July 7 Adopt tax levy Fiscal Year 2005-2006 Budget - 27 - Town of Fountain Hills This page left intentionally blank. Fiscal Year 2005-2006 Budget - 28 - Town of Fountain Hills FY2005-06 REVENUE AND EXPENDITURE SUMMARY This section provides a broad overview of the resources and expenditures included in the FY0506 budget. Information is presented for general, special revenue, debt service and capital project funds. General funds, which receive special attention by the citizens, are of particular importance to our residents as they provide for most basic services such as public safety (police and fire), parks, planning and zoning and the community center. Special revenue funds (HURF and grants) are restricted to specific uses. Proposed capital projects are included within the departmental budgets; projects in progress are included in the capital projects funds. The FY05-06 budgeted revenues total $28,476,296; the general fund portion of $15,856,164 is approximately 55% of the total. Special revenue funds such as Highway User Revenue, Proposition 202, Local Transportation and other grants represent another 19% of the budget. Debt service and capital project funds represent the remaining 7% and 18%, respectively, of the total budget. ALL FUNDS REVENUE SUMMARY FY 2001-2002 Actual FY 2002-2003 Actual FY 2003-2004 Actual FY 2004-2005 Budget FY 2004-2005 Estimate FY 2005-2006 Proposed Source of Revenues TOTAL GENERAL FUND REVENUES $14,088,326 $13,370,240 $13,643,823 $14,209,907 $14,854,127 $15,856,164 TOTAL SPECIAL REVENUE FUNDS $3,373,437 $3,289,921 $2,910,234 $4,434,705 $3,112,611 $5,445,654 TOTAL DEBT SERVICE FUNDS $2,605,487 $2,225,902 $2,648,360 $2,471,200 $2,471,500 $2,061,650 $690,724 $604,658 $855,641 $1,199,641 $1,451,160 $1,356,876 TOTAL DEVELOPMENT FEES TOTAL CAPITAL PROJECTS FUND $13,826,973 $2,189,660 $1,121,960 $5,954,800 $6,157,196 $3,746,952 TOTAL ALL FUNDS $34,584,947 $21,680,381 $21,180,018 $28,270,253 $28,046,594 $28,467,296 The FY05-06 budgeted expenditures total $26,587,132, which includes transfers; the general fund portion of $15,756,336 is approximately 59% of the total. Highway User Revenue Fund (streets and highways) represents 9% of the total Town budget, other special revenue funds represent 14% of the budget, debt service is 9% and capital projects that are under construction represent 9% of the total. Projected expenditures are almost $2.5 million less than the FY04-05 budget; the decrease is due to completion of several major capital expenditures in FY05. The largest project was phase II of the Civic Center complex, which includes a new municipal building to house law enforcement, municipal court, public works, parks and recreation, and the administrative offices. The Town has been leasing the existing premises at an annual operating cost of approximately $600,000 in rent and utilities. Town Hall will relocate to the new building around the first of FY05-06, which will result in significant savings to the taxpayers of Fountain Hills. Additionally, the budget provides for $1.4 million of unanticipated grant funds in the event an opportunity is presented that provides funding for additional capital or one-time expenditures. The table below provides a comparison of the FY05-06 budget to the FY04-05 adopted budget. Actual expenditures for the 03-04 fiscal year are also included. Fiscal Year 2005-2006 Budget - 29 - Town of Fountain Hills ALL FUNDS EXPENDITURE SUMMARY FY 2001-2002 Actual $15,062,061 TOTAL GENERAL FUND FY 2002-2003 Actual $11,680,585 FY 2003-2004 FY 2004-2005 Actual Budget $11,310,262 $13,887,023 FY 2004-2005 Estimate $12,262,179 FY 2005-2006 Proposed $15,756,336 TOTAL SPECIAL REVENUE FUNDS $2,636,353 $1,940,188 $2,218,760 $4,985,006 $2,991,429 $6,003,312 TOTAL DEBT SERVICE FUNDS $2,132,503 $2,411,280 $2,379,634 $2,417,700 $2,373,330 $2,239,950 $266,454 $21,105 $214,199 $1,281,123 $1,235,123 $1,290,035 CAPITAL PROJECTS FUND TOTAL CAPITAL PROJECTS FUND $13,750,000 $362,500 $565,590 $6,511,170 $6,303,670 $1,297,500 TOTAL ALL FUNDS $33,847,371 $16,415,657 $16,688,445 $29,082,021 $25,165,731 $26,587,132 TOTAL DEVELOPMENT FEES General Fund Budget Overview The General Fund supports core services and is the largest fund with the greatest potential for revenue fluctuations. Revenues from taxes, license and permit fees, and charges for services provide resources to fund programs and services delivered by the Town. In the aftermath of an economic downturn, the revenues forecasted in this proposed budget reflect a guarded optimism, tempered by the reality that the local, state and national economies are complex and uncertain. The proposed budget is based on projections that are conservative and based on the expectation that the local and national economy will continue at a normal pace. Total General Fund revenues are expected to increase about 6% over FY04-05 actual revenues, providing $15,856,164 in FY05-06 compared to $14,854,127 in FY04-05. Charts and descriptions of the major revenue sources with a ten-year history for the Town of Fountain Hills are shown in the budget summary section. Sources of Funds - General Fund where the money comes from Licenses and Permits 11% Community Center Fines & 1% Forfeitures Miscellaneous 1% 2% Charges for S ervices 2% Local S ales Tax 52% Total General Fund Available - $15,856,164 Fiscal Year 2005-2006 Budget - 30 - S hared Revenues 31% Town of Fountain Hills As the previous chart shows, the Town’s general fund resources rely heavily upon sales tax and state shared revenues (83% of total revenue), much the same as many other cities and towns in Arizona. These sources of revenue are not controlled by the Town and are therefore subject to upward and downward cycles of the economy as well as annual legislative appropriations. Additionally, these revenues are distributed to cities and towns based on each municipalities portion of the population compared to the entire state. As other municipalities that have abundant available land for development continue to grow in population the cities and towns that have fixed borders will represent a smaller percentage of the total, that is, Fountain Hills could lose a proportionate share of state revenues. The Town will focus efforts on alternative revenue options that will diversify resources and provide a more financially stable future to facilitate the multiyear and capital improvement planning. For fiscal year 2005-2006, state shared revenues in the General Fund are projected to increase by $404,759, or 8.8 %, from the fiscal year 2004-2005 estimate of $4,570,400, primarily from state sales tax and income tax. The largest source of revenue for the general fund is the undesignated portion of the local sales tax ($7.9M at 2.2%) and is projected to increase 9.4% over fiscal year 2004-2005. The chart on the left presents the $8,000,000 top three sales tax Top Three Sales Tax Categories $7,000,000 categories, a majority $6,000,000 in the retail activity. $5,000,000 (The dedicated portion (0.4%) of the $4,000,000 Wholesale/Retail tax rate is restricted to $3,000,000 non-general fund $2,000,000 Transportation/Utilities activities, specifically $1,000,000 debt service payments Construction $0 for mountain bond 2001-02 2002-03 2003-04 2004-05* 2005-06* and Civic Center Actual Actual Actual Proje cte d Proje cte d Phase II bonds.) Of the approximately $8 million in local sales tax 44% is derived from retail sales activity. Another major component of local sales tax collections has historically been due to construction related activity ($1.8 million), although residential construction permit activity in Fountain Hills is projected to begin declining over the next few years as the Town approaches build-out. Projections for FY05-06 reflect the increased value of the large custom homes on the remaining lots, leading to higher than expected building permit and sales tax revenue. The proposed general fund expenditures for FY05-06 are $15,756,336. The largest increase is within the Community Center and due to the debt payment for the building included in the General Fund for the first time. The general fund includes thirteen (13) divisional budgets, an increase of two over prior fiscal years. A new organizational unit, “Operational and Community Support”, now accounts for expenditures previously included within the Administration department (non-departmental and overhead expenditures such as rent, utilities, liability insurance, legal and professional fees, tax rebates, etc.). The Administration department budget retains Town Manager, Town Clerk, Finance, and Human Resource functions. Another new division is the Senior Services, a new service of the Town government that had previously been provided by a non profit organization in Fountain Hills. Fiscal Year 2005-2006 Budget - 31 - Town of Fountain Hills Salaries and Benefits Most Town employees’ Uses of Funds - General Fund salaries and benefits are where the money goes funded through the general fund (the exceptions are Municipal Court Administration Street division and 2% Town Council 8% Transfe rs (In)/O ut Downtown Development 1% O pe rational/Com 5% Information staff who are funded with munity Support Te chnology 18% 2% restricted revenues). Salaries include wages, Public Works, overtime, vacation and Planning, Bldg merit pay. An allowance of Safety 17% 4.5% is available for pay for performance merit Fire De partme nt increases. Employee Parks, Re cre ation, 17% Community Law Enforce me nt benefits include health Ce nte r, Se nior 12% insurance, employer taxes, Se rvice s 17% disability and worker Total General Fund Budget - $15,756,336 compensation insurance, and employer match retirement contributions. Vision insurance for employees has been reinstated in this budget at the request of the employee services committee. The total salaries and benefits proposed for fiscal year 2005-2006 is $4.9 million, or 18.3% of the budget. There are only two full time positions being recommended; the following are the proposed increases in staff and associated costs that are included within the FY05-06 budget: Half Time Requests Request Departmental Budget Budgetary Position Impact Recreation Interns (2) new hire (PT) Recreation $14,150 Intern (part time) new hire Administration $10,900 Planning Technician new hire (PT) Planning & Zoning $18,500 Court Clerk part-time Municipal Court $15,067 Administrative Clerk reclass to FT Administration $26,000 Operations Worker reclass to FT Community Center $15,300 Full-Time Requests Public Information Officer/ Grant Writer* new hire Administration $65,200 Park Operations Lead new hire Four Peaks Park $47,900 *reclassified to Assistant Town Manager/Public Information Officer by the Town Council during the budget hearings. If approved, authorized positions will increase from 77 to 81.5 but still 30% less than the FY01-02 level of 115 FTE’s. Contractual Services The Town contracts with outside professionals for recreational programs, consulting and legal fees, outside auditing services, engineering/inspection fees, and contributions to special programs. Two major contracts included in this category are: 1) Police protection (Maricopa County Sheriff’s Office at $1,835,044) and 2) Fire protection and emergency medical services ($2,615,988), currently under contract with Rural Metro Corporation. Fiscal Year 2005-2006 Budget - 32 - Town of Fountain Hills Contractual services also include contributions that the Town makes to social and community benefit programs based on requests from the organizations. Total funding proposed for FY05-06 is $335,000 and is described in the Operational and Community Support budget. Repairs and Maintenance Repairs and maintenance include annual landscape maintenance contracts, equipment and vehicle repairs, and facilities maintenance (janitorial, building maintenance, etc.). Maintenance of the Town’s 121 acres of parks, as well as medians, dams, and washes is solicited through a bid process to obtain the most competitive price for the Town. Supplies and Services Supplies and services include operational costs such as rent, electricity, utilities, insurance, etc. for Town Hall and other Town-owned buildings. The Town owns the Kiwanis building, two fire stations, the Library/Museum, the Community Center, a vehicle maintenance garage, and the Community Theater building. The Town leases three buildings to house Town Hall, Municipal Court, and Building Safety. Other items in this category are office supplies, gas and oil, postage, travel, and communications. Training Program: It is often mentioned during exit interviews that potential for career growth with the Town is poor because of inadequate training dollars. Lack of proper training can lead to turnover. We are implementing a Succession Plan this year, which will provide opportunities for employees to have career growth within the Town, but it will also necessitate more training dollars to be successful for both the employee and the Town. Employee training has always been important; however, in reviewing past year’s budgets it becomes evident that, due to tight fiscal times, training dollars have not been sufficient enough to allow the necessary continuing education for our employees. For example, the Insurance Service Organization (ISO) Report that grades our building department affects insurance rates. This report states the amount of expenditures for training needs to equal at least 2% of the annual operating budget for all building-department-related activities. The Town’s score in this area was 3.92 points out of a possible maximum 13.30 points. We need to do better. Insurers can use this grading to grant premium credits for buildings constructed under strictly enforced codes. Communities with good enforcement can expect commensurate reductions in property-insurance rates. In the budget, Building Safety training will equal 2% of the total division budget. When Council members are elected into office, they bring with them totally different ideas and procedures. Without Council training, the Town would have seven members trying to accomplish the same task in seven different ways. That is a good definition of chaos. There is a need for conformity and compliance with regulations that training provides. This year’s budget reflects $15,000 for Council training. This figure includes the Council Retreat, National League of Cities Conference, as well as funding for Council members to attend various workshops, seminars, MAG, legislative events, town halls, etc. The need for proper training is never ending. The Town must have a training program that refreshes the knowledge of previous training – it is ongoing. A proper training program builds better communication skills, develops hidden talent, ensures consistent quality, provides greater focus and produces more effective/productive efforts. It should ensure that each employee’s Fiscal Year 2005-2006 Budget - 33 - Town of Fountain Hills training is focused on what that employee needs to know to do his or her job and advance on their career path. Training is a small investment with an outstanding return. Consequently, you will see .058% of the total 2005-06 general fund budget for training. In comparison, last budget year .054% was budgeted, and in 2003-04, .042% was budgeted. Capital Projects Proposed capital projects are described in the Capital Improvement Budget: • Civic Center Phase II project (Town-owned municipal building) • Eagles Nest trailhead restroom construction • Adero Canyon trailhead design • Replacement of street sweeper to satisfy County dust control recommendation • Desert Vista Neighborhood Park improvements including the skate park, enhanced parking, perimeter sidewalks • Four Peaks Neighborhood Park improvements • Public access modifications for citizens with disabilities • Traffic signal at Saguaro and El Lago Boulevards • Approximately $1M in major road improvements Special Revenue Funds In addition to the general fund, Fountain Hills maintains several other funds that are established for specific purposes. Within the special revenue funds is the Highway Users Revenue Fund (HURF), the resources of which are restricted for street and highway purposes (cost of right-ofway acquisition, construction, reconstruction, maintenance, repairs, roadside development of town roads, and payment of the interest and principal on highway and street bonds). Another HURF revenue source is the Local Transportation Assistance Fund (LTAF), which is generated by the State lottery and restricted for street and transportation purposes. Within the special revenue fund is the excise tax special revenue, which accounts for revenue received as the dedicated portion of the local sales tax (0.4%). The tax collections are deposited to this fund for mountain bonds (0.2%), Civic Center phase II bonds (0.1%), and downtown development (0.1%) purposes as determined by the Council. Grants are utilized whenever possible to supplement the Town’s general fund and are designated for the specific purchases for which they are awarded. This budget includes an appropriation for the possibility for grants that may be awarded in fiscal year 2005-2006, as follows: Furniture, Fixtures and Equipment (FF&E) – Donations were received from the community for furniture, fixtures and equipment at the new Community Center. Any unspent funds are carried over to the subsequent year. Federal Emergency Management Agency (FEMA) – If awarded, this federal grant would pay for repairs to sections of Town roads that sustained damage from the past winter flooding. Undesignated Grant Revenue – This is an appropriation in the event the Town receives unanticipated grant funding, including proceeds from the Proposition 202 initiative. Fiscal Year 2005-2006 Budget - 34 - Town of Fountain Hills Debt Service Funds Total debt service revenues for fiscal year 2005-2006 is $3,527,829 including secondary property taxes for voter approved bonds, transfers from Highway User Revenue Fund to pay for road improvements, and excise taxes to pay for Municipal Property Corporation (MPC) debt (mountain bonds and Civic Center phase II). Capital Project Funds New capital project requests are proposed from development fees, such as a skate park, spray park, trailhead development, veterans memorial, and two new traffic signals. A summary of the project, development fee costs and accounts are: Project Name Estimated Cost Development Fee Account Adero Canyon and Eagles Nest Trails Desert Vista Phase III Fountain Park Ramadas Veterans Memorial Civic Center Phase II Civic Center Phase II Street Improvements $129,800 $425,500 $138,200 $40,000 $16,848 $244,687 $295,000 TOTAL Open Space Parks & Recreation Parks & Recreation Parks & Recreation Law Enforcement General Government Streets $1,290,035 The development fees fund is a restricted fund and may only be spent with council approval. Additionally, expenditures from this fund are also restricted by Ordinances 00-21 through 00-26 which state that the expenditures cannot be “appropriated for funding maintenance or repair of public facilities nor operational or personnel expenses associated with the provision of the public facility”. However, appropriations can be made by the council for financing public facilities and public facility expenditures, and capital expenditures related to maintaining the level of service standards for existing town residents (streets). Transfers The FY05-06 budget includes a transfer of $861,344, which includes $500,000 to the street fund and $361,344 to the capital projects fund to furnish the new Town Hall. Additionally, the residual revenues over expenditures from FY04-05 will be transferred to the capital projects fund for appropriation in future years when construction revenue declines. Reserves In May 2003, the Town Council adopted a formal fund balance policy appropriating funds as designated reserves for future capital expenditures, a contingency fund for unanticipated expenditures and/or revenue shortfalls, and an undesignated reserve fund. An important component of the reserve funds is an amount set aside that is not available for appropriation but will be maintained at a level that will satisfy the public and financial community regarding the fiscal stability of the Town, referred to as undesignated reserves. This proposed budget exceeds the policy requirement with a projected general fund balance for June 30, 2006 at $6.4 million (the Town’s historic high), providing $2.6M to be transferred to the Capital Projects Fund. A Fiscal Year 2005-2006 Budget - 35 - Town of Fountain Hills contingency amount of $75,000 is included in non-departmental for minor unforeseen expenditures. Fiscal Year 2005-2006 Budget - 36 - Town of Fountain Hills All Funds Revenue Summary FY 2001-2002 Actual FY 2002-2003 Actual FY 2003-2004 Actual FY 2004-2005 Budget FY 2004-2005 Estimate FY 2005-2006 Proposed Source of Revenues GENERAL FUND Intergovernmental State Sales Tax Fire Insurance Premium Tax Shared Income Tax Vehicle License Tax Total Intergovernmental $1,559,318 $0 $2,110,536 $667,570 $4,337,424 $1,582,535 $207,244 $2,153,635 $797,344 $4,740,758 $1,702,374 $143,396 $1,824,577 $819,497 $4,489,845 $1,747,300 $88,000 $1,862,500 $824,900 $4,522,700 $1,795,000 $88,000 $1,862,500 $824,900 $4,570,400 $1,914,315 $92,400 $2,126,144 $842,300 $4,975,159 Taxes Property Tax Local Sales Tax Franchise Tax Total Taxes $1,355,318 $4,355,701 $130,694 $5,841,713 $0 $5,051,871 $152,542 $5,204,413 ($2,108) $6,543,988 $126,362 $6,668,242 $0 $7,249,767 $150,000 $7,399,767 $0 $7,249,767 $125,000 $7,374,767 $0 $7,932,000 $160,000 $8,092,000 $175,376 $0 $185,431 $36,854 $397,661 $146,734 $0 $107,267 $28,378 $282,379 $146,334 $0 $68,359 $21,415 $236,109 $181,800 $0 $50,000 $15,000 $246,800 $161,550 $0 $70,000 $19,500 $251,050 $193,000 $104,050 $25,000 $21,400 $343,450 $24,779 $87,394 $997,239 $27,327 $29,040 $1,165,779 $25,335 $99,004 $1,007,036 $32,560 $37,545 $1,201,480 $32,547 $103,372 $1,343,551 $25,773 $21,353 $1,526,596 $34,500 $95,540 $1,197,500 $15,850 $15,000 $1,358,390 $33,000 $114,000 $1,750,000 $66,000 $30,000 $1,993,000 $32,675 $111,040 $1,564,000 $21,450 $21,000 $1,750,165 Fines and Forfeitures Court Fines JCEF/CCEF Revenue Total Fines and Forefeitures $256,774 $8,831 $265,605 $195,091 $0 $195,091 $192,158 $583 $192,741 $234,250 $0 $234,250 $221,790 $0 $221,790 $236,240 $0 $236,240 Community Center Rental Fees Bar Sales/Commission Total Community Center $71,057 $41,290 $112,347 $132,003 $61,027 $193,030 $179,248 $39,091 $218,339 $179,300 $55,700 $235,000 $146,927 $28,193 $175,120 $161,527 $52,148 $213,675 $56,741 $10,000 ($53,214) $147,262 $160,789 $63,456 $0 $73,005 $175,490 $311,951 $63,000 $0 $100,000 $50,000 $213,000 $63,000 $0 $125,000 $80,000 $268,000 $65,475 $0 $130,000 $50,000 $245,475 Charges for Services Parks & Rec User Fees Senior Services Fees Encroachment Permit Fee Subdivision Fees Total Charges for Services Licenses and Permits Animal License Fees Business License Fees Building Permit Fees Rezoning/Variance Fees Improvement Plan Review Fee Total Licenses and Permits Miscellaneous Leases Donations Interest on Investments Miscellaneous Total Miscellaneous Transfer from County Transfer from Development Fees Transfer from MPC (BNY) TOTAL GENERAL FUND REVENUES $36,556 $12,760 $188,681 $1,729,801 $1,967,798 $0 $0 $0 $0 $137,300 $1,255,000 $14,088,326 $13,370,240 $0 $0 $0 $13,643,823 Fiscal Year 2005-2006 Budget - 37 - $14,209,907 $14,854,127 $15,856,164 Town of Fountain Hills All Funds Revenue Summary – continued FY 2001-2002 Actual FY 2002-2003 Actual FY 2003-2004 Actual FY 2004-2005 Budget FY 2004-2005 Estimate FY 2005-2006 Proposed Source of Revenues SPECIAL REVENUE FUNDS Highway Users Revenue Funds Local Transportation (LTAF) Highway Users In Lieu Payments Interest Miscellaneous Transfers Total Highway Users Revenue Fund $114,861 $1,254,817 $7,648 $37,422 $0 $588,079 $2,002,827 $115,691 $1,310,997 $298 $31,775 $7,410 $0 $1,466,170 $115,339 $1,400,448 $3,701 $28,597 $0 $113,700 $1,390,900 $1,500 $19,000 $1,000 $113,700 $1,460,500 $6,500 $5,000 $35,000 $1,548,085 $1,526,100 $1,620,700 $113,700 $1,598,850 $4,500 $8,000 $1,000 $500,000 $2,226,050 Excise Tax Special Revenue Mountain Bonds Civic Center MPC Downtown Development Total Excise Tax Special Revenue $804,959 $0 $271,065 $1,076,024 $1,084,814 $0 $358,978 $1,443,792 $909,846 $0 $297,414 $1,207,260 $666,570 $350,000 $329,535 $1,346,105 $681,070 $350,000 $329,535 $1,360,605 $745,089 $360,545 $360,545 $1,466,179 $0 $0 $118,747 $118,747 $51,288 $51,288 $70,000 $70,000 $23,300 $23,300 $23,300 $23,300 $174,000 $174,000 $117,200 $117,200 $0 $0 $0 $0 $0 $0 $0 $0 $84,769 $0 $0 $67,500 $0 $50,000 $0 $1,375,000 $1,492,500 $4,434,705 $0 $0 $55,000 $53,006 $0 $108,006 $3,112,611 $50,000 $175,000 $0 $68,125 $1,437,000 $1,730,125 $5,445,654 Court Special Revenue Court Enhancement Fund Total Court Special Revenue Community Center FF&E Donations Total Community Center FF&E Grants FEMA AZ Dept of Transportation Proposition 202 LTAF II Miscellaneous Grants Total Grants TOTAL SPECIAL REVENUE FUNDS $120,586 $120,586 $3,373,437 $59,244 $144,013 $3,289,921 $0 $0 $75,000 $28,601 $0 $103,601 $2,910,234 DEBT SERVICE FUNDS General Obligation Bonds Secondary Property Tax Interest Total General Obligation Bonds $1,341,025 $953 $1,341,978 $1,447,580 $179 $1,447,759 $1,564,923 $0 $1,564,923 $1,450,000 $1,000 $1,451,000 $1,450,000 $1,300 $1,451,300 $1,150,000 $1,400 $1,151,400 HURF Street Paving Transfers Eagle Mountain CFD Community Center MPC Cottonwoods Maintenance District Cottonwoods Improvement District TOTAL DEBT SERVICE FUNDS $135,861 $715,494 $407,634 $0 $4,520 $2,605,487 $126,000 $262,641 $385,022 $0 $4,480 $2,225,902 $124,417 $577,585 $377,813 $0 $3,622 $2,648,360 $124,000 $513,000 $375,500 $3,200 $4,500 $2,471,200 $124,000 $513,000 $375,500 $3,200 $4,500 $2,471,500 $110,500 $405,600 $387,000 $3,300 $3,850 $2,061,650 $10,843 $144,761 $176,759 $198,023 $160,338 $690,724 $6,573 $96,705 $192,463 $212,684 $96,234 $604,658 $9,814 $139,990 $268,018 $296,402 $141,417 $855,641 $11,742 $154,475 $410,480 $456,948 $165,996 $1,199,641 $16,600 $199,500 $474,060 $527,400 $233,600 $1,451,160 $12,082 $260,740 $425,880 $482,608 $175,566 $1,356,876 $0 $0 $0 $0 $0 $2,189,660 $0 $21,700 $120,340 $528,225 $0 $3,500,000 $237,300 $1,371,775 $0 $0 $317,500 $5,954,800 $30,000 $528,225 $0 $3,783,896 $237,300 $1,577,775 $0 $0 $0 $6,157,196 $25,000 $528,225 $0 $0 $0 $3,193,727 $0 $0 $0 $3,746,952 $28,270,253 $28,046,594 $28,467,296 DEVELOPMENT FEES Law Enforcement Development Fees Street Department Development Fees Parks & Recreation Development Fees Open Space Development Fees General Government Development Fees TOTAL DEVELOPMENT FEES CAPITAL PROJECTS FUND Miscellaneous Local Sls Tax - CIP Community Center MPC Civic Center Phase II Bonds LWCF Proceeds Transfers Mountain Bonds Library Museum Developer Contributions TOTAL CAPITAL PROJECTS FUND TOTAL ALL FUNDS $13,826,973 $2,189,660 $0 $0 $979,920 $0 $1,121,960 $34,584,947 $21,680,381 $21,180,018 $13,826,973 Fiscal Year 2005-2006 Budget - 38 - Town of Fountain Hills All Funds Expenditures FY 2001-2002 FY 2002-2003 FY 2003-2004 FY 2004-2005 FY 2004-2005 FY 2005-2006 Estimate Proposed Actual Actual Actual Budget Fund/Department GENERAL FUND Community Center Municipal Court Town Council Administration Information Technology Planning & Zoning Building Safety Public Works Recreation Parks Senior Services Law Enforcement Fire Department Operational&Community Support Contingency Transfers (In)/Out to CIP TOTAL GENERAL FUND $1,023,873 $337,469 $102,491 $1,378,657 $213,318 $347,581 $524,116 $1,181,919 $740,576 $812,452 $0 $2,607,125 $1,819,291 $1,552,170 $1,346,023 $1,075,000 $15,062,061 $570,926 $278,915 $66,272 $1,378,657 $119,130 $272,798 $379,879 $942,589 $620,751 $719,690 $0 $2,440,402 $2,324,935 $1,684,296 $29,539 ($152,375) $11,680,585 $383,579 $296,272 $77,106 $845,142 $137,225 $212,541 $548,472 $932,423 $462,726 $633,717 $0 $1,708,052 $2,342,412 $1,809,642 $10,704 $910,250 $11,310,262 $435,997 $340,850 $60,010 $1,241,885 $166,231 $398,480 $494,930 $1,193,235 $534,745 $767,095 $0 $1,796,670 $2,481,751 $2,984,392 $50,000 $940,752 $13,887,023 $437,196 $329,953 $55,885 $1,000,244 $153,276 $375,467 $504,765 $1,149,929 $504,198 $761,797 $0 $1,796,186 $2,473,731 $1,728,800 $50,000 $940,752 $12,262,179 $871,824 $362,275 $110,663 $1,209,308 $361,455 $742,240 $652,845 $1,361,804 $597,714 $1,071,960 $174,400 $1,903,894 $2,698,593 $2,701,017 $75,000 $861,344 $15,756,336 SPECIAL REVENUE FUNDS Highway Users AZ Commission on the Arts FEMA Grant ADOT Grant Community Center FF&E Court Special Revenue (CCEF) Proposition 202 LTAF II - RPTA Miscellaneous Grants Total Special Revenue $2,011,832 $2,500 $0 $0 $51,706 $0 $0 $0 $0 $2,066,038 $1,278,353 $2,500 $0 $0 $51,924 $0 $0 $0 $0 $1,332,777 $1,400,343 $2,500 $0 $0 $28,634 $0 $65,320 $28,601 $0 $1,525,398 $1,700,962 $0 $75,000 $0 $180,770 $100,000 $50,000 $0 $1,375,000 $3,481,732 $1,593,906 $0 $0 $0 $15,000 $60,000 $64,692 $53,006 $0 $1,786,604 $2,387,403 $0 $50,000 $175,000 $40,000 $30,000 $0 $68,125 $1,437,000 $4,187,528 Excise Tax Special Revenue Mountain Bonds MPC - Civic Center Phase II Downtown Development Total Excise Tax Special Revenue TOTAL SPECIAL REVENUE FUNDS $520,315 $0 $50,000 $570,315 $2,636,353 $607,411 $0 $0 $607,411 $1,940,188 $637,061 $0 $56,302 $693,363 $2,218,760 $617,532 $350,000 $535,742 $1,503,274 $4,985,006 $617,532 $255,480 $331,813 $1,204,825 $2,991,429 $645,102 $270,000 $900,681 $1,815,783 $6,003,312 DEBT SERVICE FUNDS General Obligation Bonds Bond Payment - GO Bond Payment - Lakeside Bond Payment - Library/Museum Bond Payment - Mtn Preserve GO Total General Obligation Bonds $338,220 $142,000 $397,075 $402,000 $1,279,295 $349,690 $137,500 $382,975 $513,200 $1,383,365 $359,239 $132,250 $368,425 $500,400 $1,360,314 $355,000 $132,500 $390,000 $520,000 $1,397,500 $355,000 $132,500 $390,000 $520,000 $1,397,500 $360,000 $125,000 $399,000 $499,000 $1,383,000 Fiscal Year 2005-2006 Budget - 39 - Town of Fountain Hills All Funds Expenditures – continued FY 2001-2002 FY 2002-2003 FY 2003-2004 FY 2004-2005 FY 2004-2005 FY 2005-2006 Actual Actual Actual Budget Estimate Proposed Fund/Department Special Districts/MPC Debt Service: Bond Payment - HURF Bond Payment - Cottonwoods ID. MPC - Community Center Eagle Mountain CFD Total Special District Debt Service TOTAL DEBT SERVICE FUNDS DEVELOPMENT FEES Law Enforcement Development Fees Street Department Development Fees Parks & Recreation Development Fees Open Space Development Fees General Government Development Fees TOTAL DEVELOPMENT FEES $135,861 $3,821 $392,000 $321,526 $853,208 $2,132,503 $126,223 $4,245 $385,022 $512,425 $1,027,915 $2,411,280 $122,533 $4,160 $377,813 $514,814 $1,019,320 $2,379,634 $124,000 $4,500 $375,500 $513,000 $1,020,200 $2,417,700 $124,000 $4,500 $375,500 $471,830 $975,830 $2,373,330 $110,500 $3,850 $387,000 $355,600 $856,950 $2,239,950 $0 $0 $80,954 $0 $185,500 $266,454 $0 $7,000 $0 $14,105 $0 $21,105 $0 $201,150 $0 $13,049 $0 $214,199 $40,068 $365,000 $356,000 $129,100 $390,955 $1,281,123 $40,068 $319,000 $356,000 $129,100 $390,955 $1,235,123 $16,848 $295,000 $603,700 $129,800 $244,687 $1,290,035 $0 $362,500 $0 $0 $0 $362,500 $520,590 $45,000 $0 $0 $565,590 $5,421,700 $771,970 $0 $317,500 $6,511,170 $5,402,000 $901,670 $0 $0 $6,303,670 $956,500 $206,000 $135,000 $0 $1,297,500 $16,415,657 $16,688,445 $29,082,021 $25,165,731 $26,587,132 CAPITAL PROJECTS FUND Civic Center Phase II Parks & Recreation Streets Capital Contingency TOTAL CAPITAL PROJECTS FUND $13,750,000 $13,750,000 TOTAL ALL FUNDS $33,847,371 Fiscal Year 2005-2006 Budget - 40 - Town of Fountain Hills Budgeted Expenditure by Account Code – All Funds Gen Fund TOTALS 5200 5201 5202 5203 5204 5205 5206 5207 5208 5209 5211 5901 5902 5903 5906 5908 5907 5915 5920 5929 5930 5932 5933 5935 5936 5939 5940 5941 5945 5947 5950 5955 5980 6400 6402 6403 6404 6405 6406 6410 6415 6420 Special Revenue Development Funds Fees Wages FICA Unemployment Insurance Employee's Health Insurance Employee's Life Insurance Employee's Dental Insurance Employee's Eye Insurance Worker's Compensation Insurance Employee's Retirement Fund Recruitment Costs Disability Insurance $3,312,173 $75,503 $5,763 $357,193 $10,122 $40,577 $2,448 $52,462 $319,052 $0 $14,536 $39,375 $580 $49 $3,548 $142 $362 $23 $121 $4,331 $0 $197 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Total Wages & Salaries $4,189,827 $48,729 $0 Accounting Fees Professional Fees Legal Fees Jail/Prisoner Fees Engineering Fees Rabies & Animal Control Elections Expense Intergovernmental Agreements Special Programs - RPTA Special Programs - Chamber Special Programs Youth And Teens Sports Activities Spec.Programs-Constituent Comm Boys & Girls Club Senior McDowell Mtn Preservation FH Theater Tourism Sheriff's Contract Rural Metro Contract Sales Tax Rebates $15,025 $288,910 $352,660 $36,575 $196,525 $32,275 $25,000 $4,500 $22,708 $0 $62,754 $10,940 $52,945 $39,100 $160,000 $83,650 $24,000 $50,000 $125,000 $1,835,044 $2,615,988 $877,750 $0 $40,000 $0 $0 $0 $0 $0 $0 $68,125 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $51,469 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Total Contract Services $6,911,349 $159,594 $0 $56,980 $0 $3,500 $130,650 $108,695 $0 $112,500 $422,710 $166,645 $0 $50,000 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $1,001,680 $50,000 $0 Vehicle Repairs & Maintenance Road Repair & Maintenance Equipment Rental Building Repairs & Maintenance Office Equip. Repairs & Maint. Major Road Improvements Field Preparation/Maintenance Mowing/Landscape Maintenance DAM/WASH MAINTENANCE Total Repairs & Maintenance Fiscal Year 2005-2006 Budget - 41 - Debt Service Capital Projects $0 $0 $0 $0 $0 TOTAL ALL FUNDS % of Total $3,807,785 $82,783 $6,536 $426,975 $11,810 $47,743 $2,911 $88,981 $373,570 $0 $17,014 14.3% 0.3% 0.0% 1.6% 0.0% 0.2% 0.0% 0.3% 1.4% 0.0% 0.1% $4,866,106 18.3% $20,400 $338,910 $361,910 $36,575 $196,525 $32,275 $25,000 $4,500 $90,833 $0 $62,754 $10,940 $52,945 $39,100 $160,000 $83,650 $24,000 $50,000 $125,000 $1,835,044 $2,615,988 $929,219 0.1% 1.3% 1.4% 0.1% 0.7% 0.0% 0.1% 0.0% 0.3% 0.0% 0.2% 0.0% 0.2% 0.1% 0.6% 0.3% 0.1% 0.2% 0.5% 6.9% 9.8% 3.5% $7,095,568 26.7% $90,980 $196,150 $4,000 $134,150 $109,195 $1,142,931 $112,500 $422,710 $166,645 0.3% 0.7% 0.0% 0.5% 0.4% 4.3% 0.4% 1.6% 0.6% $2,379,261 8.9% Town of Fountain Hills Budgeted Expenditure by Account Code – All Funds – continued Gen Fund TOTALS 6501 6505 6507 6508 6509 6511 6514 6517 6520 6525 6526 6529 6530 6531 6534 6537 6546 6548 6549 6550 6560 6650 8010 8020 8025 8026 8090 9000 9090 9999 HURF Special Revenue Development Funds Fees Advertising/Signage Conferences Continuing Education Dues & Publications Dues - GPEC Electricity Expense Gas & Oil Expense Liability Insurance Office Supplies Tools, Shop Supplies Firefighting Equipment Postage Bar Supplies Printing Rent Expense Communication Expense Water/Sewer Travel Expense Uniforms Weapons and Ammunition Bank Charges CCEF Expenditures $58,000 $45,340 $41,880 $61,600 $0 $304,775 $58,655 $221,382 $77,405 $4,950 $700 $28,700 $14,300 $30,600 $659,000 $99,974 $121,300 $6,350 $12,385 $0 $11,500 $0 $0 $5,075 $450 $600 $0 $0 $0 $0 $300 $0 $0 $0 $0 $2,000 $0 $0 $0 $660 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Total Supplies & Services $1,858,796 $9,085 $0 Debt Service % of Total $58,300 $53,670 $46,085 $67,375 $0 $334,775 $87,585 $338,382 $79,205 $9,950 $700 $28,700 $14,300 $33,100 $659,000 $105,406 $124,500 $7,110 $20,385 $0 $11,500 $0 0.2% 0.2% 0.2% 0.3% 0.0% 1.3% 0.3% 1.3% 0.3% 0.0% 0.0% 0.1% 0.1% 0.1% 2.5% 0.4% 0.5% 0.0% 0.1% 0.0% 0.0% 0.0% 7.8% 1.0% 0.4% 0.2% 0.1% 13.8% Capital Outlay - Vehicles Capital Outlay - Furn & Equip. Capital Outlay - Computers Capital Outlay - Software Capital Expend. - Improvements $55,000 $80,000 $44,500 $35,540 $256,300 $175,000 $0 $30,000 $0 $0 $0 $0 $0 $830,000 $1,290,035 $1,297,500 Total Capital/Contingency $471,340 $1,035,000 $1,290,035 $0 $1,297,500 $4,128,875 15.5% Debt Service Transfers Contingency $0 $1,248,344 $75,000 $1,437,000 $3,226,950 $1,298,344 $1,512,000 12.1% 4.9% 5.7% Total Debt/Transfers $1,794,684 $3,348,500 $1,290,035 $2,239,950 $1,297,500 $10,166,169 38.2% $15,756,336 $3,615,908 $1,290,035 $2,239,950 $1,297,500 $26,587,132 100.0% GRAND TOTAL Fiscal Year 2005-2006 Budget - 42 - $0 $2,239,950 $0 $0 $0 TOTAL ALL FUNDS $2,080,028 $0 $265,000 $110,000 $44,500 $35,540 $3,673,835 $876,500 $0 Capital Projects Town of Fountain Hills General Fund Revenues and Expenditures Summary FY 2002-2003 Actual 3010 3015 3020 3030 3205 3210 3220 3225 3230 3240 3242 3244 3250 3260 3270 3272 3280 3282 3285 3290 3295 3299 REVENUES State Sales Tax Fire Insurance Premium Tax State Income Tax Vehicle License Tax Local Sales Tax Business License Fees Building Permits Animal License Fees Court Fines & Fees Rezoning/Variance/Special Use Improvement Plan Review Fee Encroachment Permit Fees Subdivision Fees Franchise Fees Parks & Recreation User Fees Senior Services Fees Rental Bar Sales/Commission Cellular Lease Payment Interest/Investment Income Donations Miscellaneous 020 050 050 060 061 080 081 081 095 096 090 092 040 999 999 9090 FY 2004-2005 Budget FY 2004-2005 Estimate FY 2005-2006 Proposed 1,702,374 143,396 1,824,577 819,497 6,543,988 103,372 1,343,551 32,547 192,158 25,773 21,353 68,359 21,415 126,362 146,334 0 179,248 39,091 63,456 73,005 0 175,490 1,747,300 88,000 1,862,500 824,900 7,249,767 95,540 1,197,500 34,500 234,250 15,850 15,000 50,000 15,000 150,000 181,800 0 179,300 55,700 63,000 100,000 0 50,000 1,795,000 88,000 1,862,500 824,900 7,249,767 114,000 1,750,000 33,000 221,790 66,000 30,000 70,000 19,500 125,000 161,550 0 146,927 28,193 63,000 125,000 0 80,000 1,914,315 92,400 2,126,144 842,300 7,932,000 111,040 1,564,000 32,675 236,240 21,450 21,000 25,000 21,400 160,000 193,000 104,050 161,527 52,148 65,475 130,000 0 50,000 $13,643,823 $14,209,907 $14,854,127 $15,856,164 77,106 845,142 137,225 548,472 932,423 212,541 462,726 633,717 383,579 0 1,708,052 2,342,412 296,272 1,809,642 10,704 910,250 60,010 1,241,885 166,231 494,930 1,193,235 398,480 534,745 767,095 435,997 0 1,796,670 2,481,751 340,850 2,984,392 50,000 940,752 $11,676,405 $11,310,262 $13,887,023 $12,262,179 $15,756,336 301,537 2,333,561 322,884 2,591,948 99,828 $0 $0 $0 ($2,570,848) ($99,828) Fund Balance Beginning of Year $3,736,325 $4,037,862 $5,375,399 $6,371,423 $6,392,523 Ending Fund Balance $4,037,862 $6,371,423 $5,698,283 $6,392,523 $6,392,523 TOTAL CURRENT REVENUE Mayor and Town Council Administration Information Technology Building Safety Public Works Planning and Zoning Recreation Parks Community Center Senior Center Law Enforcement Fire Department Municipal Court Operational & Community Support Non Departmental Previously Approved Capital Projects TOTAL EXPENDITURES EXCESS OF REVENUES OVER/ (UNDER) EXPENDITURES Transfer to CIP 1,582,535 207,244 2,153,635 797,344 5,051,871 99,004 1,007,036 25,335 195,091 32,560 37,545 107,267 28,378 152,542 146,734 0 132,003 61,027 56,741 (53,214) 10,000 147,262 FY 2003-2004 Actual $11,977,942 66,272 1,378,657 119,130 379,879 942,589 272,798 620,751 719,690 570,926 0 2,440,402 2,324,935 278,915 1,684,296 29,539 (152,375) Fiscal Year 2005-2006 Budget - 43 - 55,885 1,000,244 153,276 504,765 1,149,929 375,467 504,198 761,797 437,196 0 1,796,186 2,473,731 329,953 1,728,800 50,000 940,752 110,663 1,209,308 361,455 652,845 1,361,804 742,240 597,714 1,071,960 871,824 174,400 1,903,894 2,698,593 362,275 2,701,017 75,000 861,344 Town of Fountain Hills This page left intentionally blank. Fiscal Year 2005-2006 Budget - 44 - Town of Fountain Hills General Fund Revenues General fund operating revenues are estimated at $15,856,164 for FY05-06. The following charts will summarize operating revenues by major source, as well as provide a ten-year history. The following charts highlight the trends, account codes, restrictions on usage, major influences, and assumptions for the FY05-06 estimate. Sources of Funds - General Fund where the money comes from Licenses and Permits 11% Community Center Fines & 1% Forfeitures Miscellaneous 1% 2% Charges for S ervices 2% Local S ales Tax 52% Total General Fund Available - $15,856,164 Fiscal Year 2005-2006 Budget - 45 - S hared Revenues 31% Town of Fountain Hills State Shared Sales Tax Percent Restrictions Fiscal Year 1996-97 1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 (est.) 2005-06 (est.) No restrictions on usage. Must be expended for public purposes. Account: 3010 1 Amount $998,459 $1,054,548 $1,130,422 $1,242,559 $1,320,401 $1,559,318 $1,582,535 $1,702,374 $1,795,000 $1,914,315 Change 20.3% 5.6% 7.2% 9.9% 6.3% 18.1% 1.5% 7.6% 5.4% 6.6% Increase as a result of mid-decade census population growth Assumptions The State assesses a 6.3% sales tax, of which cities and towns share in the collections based on the relation of its population to the total population of all incorporated cities and towns using the 2000 census figures (Fountain Hills represents .005% of the state total). The FY 2005-2006 revenue projection is based on the State's Joint Legislative Budget Committee forecast for Sales and Use Tax for the State of Arizona. Major Influences: Construction Activity, Retail Sales, Population and Economy STATE SHARED SALES TAX FY1997 through FY2006 $2,000,000 $1,800,000 $1,600,000 $1,400,000 $1,200,000 $1,000,000 $800,000 $600,000 $400,000 $200,000 $0 1996-97 1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 (e st.) (est.) Fiscal Year 2005-2006 Budget - 46 - 1 1 Town of Fountain Hills State Income Tax Percent Restrictions No restrictions on usage. Must be expended for public purposes. 1 Fiscal Year 1996-97 1997-98 1998-99 1999-00 2000-01 Amount Change $1,071,161 39.8% $1,210,113 13.0% $1,412,702 16.7% $1,567,610 11.0% $1,688,004 7.7% Account: 3020 2001-02 2002-03 2003-04 2004-05 (est.) $2,110,536 $2,153,635 $1,826,315 $1,862,500 25.0% 2.0% -15.2% 2.0% Increase as a result of mid-decade census population growth 2005-06 (est.) $2,126,144 14.2% Assumptions 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 projection for FY2005-2006 is provided by the League of Arizona Cities and Towns and based on the projections prepared by the State's Joint Legislative Budget Committee (JLBC). Major Influences: Personal Income, Corporate Net Profits, Population and State Policy STATE SHARED INCOME TAX FY1997 through FY2006 $2,500,000 $2,000,000 $1,500,000 $1,000,000 $500,000 $0 1996-97 1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 (e st.) (e st.) Fiscal Year 2005-2006 Budget - 47 - 1 1 Town of Fountain Hills Vehicle License Tax Percent Restrictions No restrictions on usage. Must be expended for public purposes. Fiscal Year 1996-97 1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 (est.) 2005-06 (est.) Account: 3030 Amount $378,103 $403,775 $476,430 $524,796 $576,264 Change 38.4% 6.8% 18.0% 10.2% 9.8% $667,570 $797,344 $819,497 $824,900 $842,299 15.8% 19.4% 2.8% 0.7% 2.1% Assumptions 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 (0.7%). The remainder of the revenues collected are shared by schools, counties, and the state. The fiscal year 2005-2006 estimate is based on receiving 0.7% of the mid-point between Maricopa County's most likely ($127,876,968) and pessimistic ($112,779,909) projection. Major Influences: Automobile sales, Population, and State Policy VEHICLE LICENSE TAX FY1997 through FY2006 $900,000 $800,000 $700,000 $600,000 $500,000 $400,000 $300,000 $200,000 $100,000 $0 1996-97 1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 (e st.) (e st.) Fiscal Year 2005-2006 Budget - 48 - Town of Fountain Hills Local Sales Tax Percent Restrictions Fiscal Year Of the total proceeds from the 2.6% tax rate 0.2% of the revenue is restricted for repayment of mountain bonds purchased through the Municipal Property Corporation (MPC), 0.1% for civic center bond payments and 0.1% for Downtown Development. Excess proceeds are not restricted but must be expended for public purpose. 1 Amount Change 1996-97 1997-98 1998-99 $2,664,923 $2,920,084 $3,394,152 65.5% 9.6% 16.2% 1999-00 $4,087,514 20.4% 2000-01 $4,923,174 20.4% 2001-02 $4,355,701 -11.5% 2002-03 2003-04 2004-05 (est.) 2005-06 (est.) $5,051,871 $7,733,643 $9,571,666 $9,902,388 16.0% 53.1% 23.8% 3.5% Account: 3205 Rate increase Assumptions The local sales tax rate in Fountain Hills is 2.6% - total receipts are estimated to be $9,902,388; 2.2% is available for general public purpose ($7,931,984). The remaining .4% is dedicated to bond payments (0.3%) $1,081,634 and downtown development (0.1%) $360,545. Residential rental and advertising tax receipts are reserved for capital projects and are estimated to provide $528,225. Construction related sales tax activity provides 21% of local sales tax revenue. Projected projects for FY05-06 consists of multi-family development at Firerock, Summit, Enclave and Fountain Mist (130 units). Retail activity represents 43% of the total, compared to 40% in the prior year, a result of additional retail development at Four Peaks Plaza. Transportation/utilities provide 12% of the total receipts. Major Influences: Economy, Construction Activity, Retail Sales, Public Policy LOCAL SALES TAX FY1997 through FY2006 $10,000,000 $9,000,000 $8,000,000 $7,000,000 $6,000,000 $5,000,000 $4,000,000 $3,000,000 $2,000,000 $1,000,000 $0 1996-97 1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 (e st.) (e st.) Fiscal Year 2005-2006 Budget - 49 - 1 1 Town of Fountain Hills Fines and Forfeitures Percent Restrictions No restrictions on usage. Must be expended for public purpose. Account: 3230 Fiscal Year 1996-97 1997-98 1998-99 Amount $209,485 $208,900 $259,453 Change -0.9% -0.3% 24.2% 1999-00 2000-01 $293,910 $310,359 13.3% 5.6% 2001-02 2002-03 2003-04 2004-05 (est.) 2005-06 (est.) $265,605 $195,091 $192,158 $221,790 $236,240 -14.4% -26.5% -1.5% 15.4% 6.5% Assumptions Magistrate Court fines come from traffic violations and other fines paid for the violation of municipal ordinances. The decline in fines and forfeitures beginning in fiscal year 2001-2002 is related to the elimination of duplicate law enforcement within the Town. The estimate for FY2005-2006 is based on maintaining the same level of traffic enforcement activity. Major Influences: Population, Enforcement, Public Policy FINES & FORFEITURES FY1997 through FY2006 $350,000 $300,000 $250,000 $200,000 $150,000 $100,000 $50,000 $0 1996-97 1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 (est.) (est.) Fiscal Year 2005-2006 Budget - 50 - Town of Fountain Hills Building Related Fees Restrictions No restrictions on usage. Must be expended for public purpose. Fiscal Year 1996-97 1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 (est.) 2005-06 (est.) Accounts: 3220-3250 Percent Amount Change $1,759,326 4.2% $1,912,468 8.7% $2,433,602 27.2% $2,547,521 4.7% $2,127,305 -16.5% $1,275,891 $1,213,553 $1,461,030 $1,675,000 $1,652,830 -40.0% -4.9% 20.4% 14.6% -1.3% Assumptions Revenues from this source include the fees collected from building permits, rezoning, improvement plan, encroachment and subdivision plans. The sharp decline from 2001 is due to the decrease in production home building. The remaining lots will have custom homes with higher than average valuations. The estimates for FY2005-06 are based on construction activity provided by local engineering firms, the local developer and planning staff. The projected number of permits for next fiscal year is 140 single family (180 last fiscal year), 230 multi-family units (213 last fiscal year), and 6 commercial projects (19 last fiscal year). Major Influences: Population, Economy, Development, Public Policy BUILDING RELATED FEES FY1997 through FY2006 $3,000,000 $2,500,000 $2,000,000 $1,500,000 $1,000,000 $500,000 $0 19 9 6 - 9 7 19 9 7 - 9 8 19 9 8 - 9 9 19 9 9 - 0 0 2 0 0 0 -0 1 2 0 0 1- 0 2 2 0 0 2 -0 3 Fiscal Year 2005-2006 Budget - 51 - 2 0 0 3 -0 4 2 0 0 4 -0 5 ( e s t .) 2 0 0 5 -0 6 ( e s t .) Town of Fountain Hills License Fees Percent Restrictions Fiscal Year 1996-97 1997-98 1998-99 No restrictions on usage. Must be expended for public purpose. Accounts: 3210, 3225 Amount $70,038 $81,125 $90,717 Change 13.7% 15.8% 11.8% 1999-00 2000-01 $100,134 $115,681 10.4% 15.5% 2001-02 2002-03 2003-04 2004-05 (est.) 2005-06 (est.) $112,173 $124,292 $135,919 $137,000 $143,715 -3.0% 10.8% 9.4% 0.8% 4.9% Assumptions License fees are derived from a license tax on professions, occupations, businesses and animals within the Town. The license fee is used primarily as a means of regulating businesses and animal control within the community. The estimate for FY2005-2006 is based on 2,537 active business licenses and 2,804 animal licenses. Major Influences: Economy, Enforcement LICENSE FEES FY1997 through FY2006 $140,000 $120,000 $100,000 $80,000 $60,000 $40,000 $20,000 $0 1996-97 1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 Fiscal Year 2005-2006 Budget - 52 - 2003-04 2004-05 (est.) Town of Fountain Hills Charges for Services Percent Restrictions No restrictions on usage. Must be expended for public purpose. Fiscal Year 1996-97 1997-98 1998-99 1999-00 2000-01 Amount 2001-02 2002-03 2003-04 (est.) 2004-05 (est.) 2005-06 (est.) Accounts: 3270, 3280, 3282, 3285 $150,209 $656,283 $479,633 $267,835 $211,800 Change 111.7% 336.9% -26.9% -44.2% -20.9% $324,300 $341,479 $428,129 $399,670 $472,150 53.1% 5.3% 25.4% -6.6% 18.1% Assumptions Charges for services are collected from users of Town facilities (parks, community center) or programs (recreation). In September 2001 a new Community Center opened providing a venue for weddings, banquets, civic meetings, etc. The increase in FY2003-2004 reflects the new rates that were implemented by the Council in April 2003. The projection for FY2006 was calculated based on the number of facility bookings that have been received and a factor for growth. During FY1997-98 the master developer in Fountain Hills transferred Fountain Park to the Town which included a monetary contribution for two years ($700,000); that subsidy expired in FY1999-00. Additional service charges are collected from cellular providers for use of town property for their towers. Major Influences: Population, Internal Policy on Rates CHARGES FOR SERVICES FY1997 through FY2006 $700,000 $600,000 $500,000 $400,000 $300,000 $200,000 $100,000 $0 9 6 -9 7 9 7 -9 8 9 8 -9 9 9 9 -0 0 2 0 0 0 -0 1 2 0 0 1- 0 2 2 0 0 2 -0 3 2 0 0 3 -0 4 Recreation 2 0 0 4 -0 5 ( e s t .) Comm. Center Fiscal Year 2005-2006 Budget - 53 - 2 0 0 5 -0 6 ( e s t .) Town of Fountain Hills General Fund Expenditure Summary TOWN OF FOUNTAIN HILLS 2005-06 GENERAL FUND EXPENDITURE SUMMARY Department Salaries & Benefits Contract Services Repairs & Maintenance Supplies & Services Capital Outlay Total Mayor and Town Council Administration Information Technology Law Enforcement Fire Department Municipal Court Parks & Recreation Community Center Senior Services Public Works Building Safety Planning & Zoning Contingency Previously Approved Capital $39,763 $945,900 $0 $0 $0 $337,820 $692,940 $357,324 $64,600 $605,870 $560,500 $585,110 $0 $126,398 $39,700 $1,903,894 $2,615,988 $6,300 $171,059 $550 $91,650 $187,025 $39,150 $119,000 $0 $10,500 $78,895 $0 $33,700 $1,200 $337,750 $16,300 $7,500 $447,185 $2,200 $800 $63,900 $126,510 $82,820 $0 $48,905 $16,955 $256,625 $110,650 $10,650 $91,724 $25,995 $37,330 $0 $0 $160,040 $0 $0 $0 $211,300 $387,000 $0 $30,000 $25,000 $0 $861,344 $103,663 $1,209,308 $361,455 $1,903,894 $2,698,593 $362,275 $1,669,674 $871,824 $174,400 $1,361,804 $652,845 $742,240 $50,000 $861,344 GENERAL FUND TOTALS $4,189,827 $5,300,714 $936,030 $872,064 $1,674,684 $13,023,319 % of General Fund 32.2% 40.7% 7.2% 6.7% 12.9% 100.0% Uses of Funds - General Fund where the money goes Municipal Court 2% Town Council Transfe rs (In)/O ut 1% O pe rational/Com 5% munity Support 18% Administration 8% Information Technology 2% Public Works, Planning, Bldg Safe ty 17% Fire De partment 17% Law Enforceme nt 12% Parks, Re creation, Community Ce nte r, Se nior Se rvice s 17% Total General Fund Budget - $15,756,336 Fiscal Year 2005-2006 Budget - 54 - Town of Fountain Hills Town Council Town of Fountain Hills Fiscal Year 2005-2006 Budget Town of Fountain Hills Fountain Hills Town Council Mayor Wally Nichols Vice Mayor Jay Schlum Councilmember Mike Archambault Councilmember John Kavanagh Councilmember Edwin Kehe Councilmember Keith McMahan Councilmember Jay Schlum In Memory of Vice Mayor Kathleen Connelly Nicola Fiscal Year 2005-2006 Budget - 55 - Town of Fountain Hills Town Council Mission Statement ▬▬▬▬▬▬ Expenditures appearing in this section support the goals and objectives of the Mayor and Town Council. These include maximizing public access to Council meetings, providing funding for municipal elections, enhancing constituent communication, compensating and equipping the Mayor and Town Council with the tools necessary to do their jobs; and promoting communication and awareness of the Mayor, Town Council, and the Town with other municipalities. Salaries and Benefits $39,763 This category of expenditures includes the salary and related taxes for the Mayor and Council members. The Mayor and Town Council have not increased their rate of pay since June 2000. Contract Services $7,000 Included in this line item is an appropriation for miscellaneous consulting projects that the Council may want to consider. In the past the Council has requested the services of an outside consultant to conduct evaluations, this budget includes funding for such projects. Supplies and Services $63,900 Elections for the Mayor and some Council members are held bi-annually with an average cost of approximately $25,000. FY05-06 is an election year, therefore, an appropriation has been included for the cost of both a primary and general election. This category of expenditures also provides funding to purchase commemorative items for the Mayor and Council to share with visiting dignitaries and promote Fountain Hills at the annual Arizona League of Cities and Towns conference. An amount of $10,000 has been included this year to fund participation in the Town’s strong cities celebration and the new Civic Center Phase II grand opening. During January of each fiscal year, the Council attends a goal setting and strategic planning retreat to give them an opportunity to focus on issues such as budget priorities, economic development, and council relations. The Council would like to attend other related opportunities throughout the year such as League of Arizona Cities and Towns functions, Maricopa Association of Government (MAG) workshops, National League of Cities conference, legislative events, and seminars. The estimated cost for these events is $9,000. Monies are also included for travel reimbursement, communications, publications, ads/notices, printing, portraits, and miscellaneous office items. Fiscal Year 2005-2006 Budget - 56 - Town of Fountain Hills Summary Expenditures – Town Council FY 2002-2003 Actual FY 2003-2004 Actual FY 2004-2005 Budget FY 2004-2005 Estimate FY 2005-2006 Budget $39,381 $39,387 $39,560 $39,685 $39,763 CONTRACTUAL SERVICES $0 $0 $0 $0 $7,000 REPAIRS & MAINTENANCE $0 $0 $0 $0 $0 $26,891 $37,720 $20,450 $16,200 $63,900 $0 $0 $0 $0 $0 $66,272 $77,106 $60,010 $55,885 $110,663 SALARIES & BENEFITS SUPPLIES & SERVICES CAPITAL EXPENDITURES TOTAL EXPENDITURES TOWN COUNCIL FY 2002-2003 Actual SALARIES & BENEFITS Wages Employer Taxes FY 2003-2004 Actual FY 2004-2005 Budget FY 2004-2005 Estimate FY 2005-2006 Proposed 36,000 3,381 36,000 3,387 36,000 3,560 36,000 3,685 36,000 3,763 $39,381 $39,387 $39,560 $39,685 $39,763 0 0 0 0 7,000 $0 $0 $0 $0 $7,000 24,483 0 0 0 1,434 0 533 441 23,328 3,541 198 5,667 4,099 431 0 457 0 8,000 2,500 6,000 2,200 300 200 1,250 0 6,500 1,500 6,000 1,200 300 200 500 25,000 20,000 9,000 6,000 2,200 1,000 200 500 TOTAL $26,891 $37,720 $20,450 $16,200 $63,900 TOTAL EXPENDITURES $66,272 $77,106 $60,010 $55,885 $110,663 TOTAL CONTRACT SERVICES Professional Services TOTAL SUPPLIES & SERVICES: Election Expense Advertising Conferences Continuing Education Office Supplies/Portraits Printing Communications Travel Fiscal Year 2005-2006 Budget - 57 - Town of Fountain Hills This page left intentionally blank Fiscal Year 2005-2006 Budget - 58 - Town of Fountain Hills Administration Information Technology Operations and Community Support Town of Fountain Hills Fiscal Year 2005-2006 Budget Town of Fountain Hills Administration Finance and Administration Facilities Finances Human Resources Information Technology Town Clerk Mission Statement The Administration Department is dedicated to serving the citizens of Fountain Hills by providing accurate and current information on Council legislation and administrative actions; supporting the Town of Fountain Hills and its departments; providing for the delivery of comprehensive financial services to internal and external customers; protecting the integrity of Town assets; maintaining Town facilities; and delivering the finest municipal services to ensure the highest quality of life for Fountain Hills residents. Department Description There are three divisions within the Administration Department that provide administrative services for the Town government – Administration, Information Technology and Operational and Community Support. The Administration division includes expenses of the Town Clerk, Town Manager, Finance and Human Resources. Information Technology includes expenses relating to computers, network, software, telephone and public information (Channel 11 and web). The Operational Support division was created for FY05-06 to segregate the nondepartmental expenditures that had previously been included with the Administration Department budget. This division accounts for expenses that apply to all functions of the Town government such as legal fees, annual financial audit, facilities maintenance and utilities, liability insurance, sales tax refunds and community benefit programs. Performance Standards • • • • • • • • • • Issue business licenses within 5 working days Provide public access to Town Council legislation and insure the preservation of legal documents Conduct elections in accordance with current state law and facilitate the public's ability to vote Update the Town Code to reflect legislation enacted by the Council Maintain the Town’s “Certificate of Achievement for Excellence in Financial Reporting” Maintain the Town’s “Distinguished Budget Presentation Award” Maintain the Town’s current Aa3 bond rating Provide facility management program that is fiscally responsible Provide a comprehensive personnel program based on merit principles administered in compliance with applicable local, state, and federal laws Administer and coordinate all employee-related programs and benefits Fiscal Year 2005-2006 Budget - 59 - Town of Fountain Hills Management Indicators 2003-2004 Actual 67 20 576 1,465 59/56 Number of resolutions processed Number of ordinances processed New business licenses Business license renewals Adopt-A-Street commercial/residential Certificate of Achievement for Excellence in Financial Reporting Award Distinguished Budget Presentation Award Sales tax recovered Insurance claims managed Bond rating 7th year 2nd year $131,962 13 Aa3 2004-2005 Estimated 70 11 629 1,492 65/59 8th year 3rd year $31,059 12 Aa3 2005-2006 Estimated 65 10 650 1,550 60/59 9th year 4th year $24,000 10 Aa3 Fiscal Year 2004-2005 Accomplishments • • • • • • • • • • Initiated a strategic planning process with citizen involvement Reviewed five-year financial and capital improvement plan (CIP) Constructed Phase II of Civic Center (new Town Hall) Enhanced Town website by providing email updates for job postings, news releases, etc. Converted council packet material to electronic format Initiated review of development fee schedule Prepared council policy on commissions and committees Developed initial Succession Plan identifying key positions Revised and issued new employee manual Formed Public Safety Advisory Committee Fiscal Year 2005-2006 Objectives • • • • • Develop a public information and grant writing program Complete 5 year strategic plan for the Town Develop and achieve an intergovernmental relations and cooperation program with neighboring communities Complete steps four and five of the Succession Plan – Demand and Supply; design a Succession Management Plan form for completion by key positions Develop an operational contingency plan for fire service Fiscal Year 2005-2006 Budget - 60 - Town of Fountain Hills Summary Expenditures – Administration (includes Information Technology) FY 2002-2003 Actual FY 2003-2004 Actual FY 2004-2005 Budget FY 2004-2005 Estimate FY 2005-2006 Budget $940,398 $681,289 $935,900 $768,744 $945,900 CONTRACTUAL SERVICES $70,188 $93,707 $202,020 $132,750 $166,098 REPAIRS & MAINTENANCE $47,280 $57,947 $60,850 $59,050 $89,395 SUPPLIES & SERVICES $132,186 $134,971 $193,220 $176,850 $209,330 CAPITAL EXPENDITURES $150,668 $14,452 $16,126 $16,126 $157,540 $1,340,721 $982,367 $1,408,116 $1,153,520 $1,568,263 SALARIES & BENEFITS TOTAL EXPENDITURES Fiscal Year 2005-2006 Budget - 61 - Town of Fountain Hills Authorized Personnel Position – Title Administration Town Manager Assistant Town Manager Undesignated Position Director of Admin/Town Clerk Finance Director Town Clerk I. T. Administrator I. T. Intern Accountant Accounting/H.R.Clerk Accounting Clerk Administrative Intern Exec.Asst to Town Mgr/Council Executive Assistant Human Resources Administrator I. T. Coordinator Administrative Assistant Facilities Supervisor Facilities Maintenance Tech Maintenance/Custodial Worker Custodian Customer Service Rep. Administrative Clerk Receptionist Authorized FTE 2002-2003 Authorized FTE 2003-2004 Authorized FTE 2004-2005 Authorized FTE 2005-2006 Proposed FTE 1.00 0.00 2.00 1.00 1.00 0.00 1.00 0.50 0.00 1.00 0.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 0.00 1.00 2.00 1.00 0.00 0.00 1.00 0.00 0.00 0.00 1.00 1.00 0.00 0.50 0.00 1.00 0.00 0.00 1.00 0.00 1.00 1.00 0.00 1.00 0.00 1.00 1.50 1.50 0.00 0.00 1.00 0.00 0.00 0.00 1.00 1.00 0.00 0.50 1.00 0.00 1.00 0.00 1.00 0.00 1.00 1.00 0.00 1.00 1.00 0.50 1.00 1.00 0.50 0.00 1.00 1.00 0.00 0.00 1.00 1.00 0.00 0.00 1.00 0.00 1.00 0.50 1.00 0.00 1.00 1.00 0.00 1.00 1.00 0.50 1.00 0.50 1.00 0.50 18.50 12.50 13.50 15.00 Salaries and Benefits $945,900 The proposed budget recommends an increase of 1.50 full-time equivalent positions, 2.50 positions lower than FY02-03 and only $10,000 more than the FY04-05 budget. The proposed positions are the addition of an Assistant Town Manager (full-time) and converting a half time clerical position to full time. A public information/grant writing program is necessary to meet the council goals for a comprehensive public information and grant program. These two programs could not be completed with existing staff due to the amount of time required to meet the goal and the expertise needed. At the request of the Town Council the recommended Public Information Officer position was reclassified to Assistant Town Manager who will have the public information responsibility. Fiscal Year 2005-2006 Budget - 62 - Town of Fountain Hills In addition to regularly assigned duties for the Town Manager, Town Clerk, Finance, and back up receptionist, the part-time administrative clerk has been providing increased support to the administrative staff. Due to an additional demand for support services in manning the greeting and reception station in the new Town Hall, as well as support for the Assistant Town Manager, the additional hours are requested. The justifications for these positions are included in Appendix A. Contract Services $126,398 These funds provide for contracts with outside vendors who provide specialized functions for the Town in the areas of sales tax auditing and project consultants as directed by the Town Council, such as the strategic plan. The proposed budget includes the following: annual cost of the contract with the sales tax auditor transcription and payroll service completion of the strategic plan $24,000 $16,710 $61,000 Also included under contract services is an intergovernmental agreement with Maricopa County Human Services to provide two transportation service programs to the community with funding provided by a grant from RPTA (Regional Public Transportation Authority). The special transportation service program provides free medical, social and employment trips for eligible residents (seniors, disabled, and low income) at an annual cost of $26,568. The shuttle program is a town-wide public transit program available free of charge to all residents at an annual cost of $64,264. These programs are currently funded 75% by proceeds from LTAF (Lottery) and 25% matching funds from the General Fund. The LTAF funding is dependent upon sales of lottery tickets within the state reaching $23M, proceeds after that are distributed to cities and towns through RPTA to be used for transportation related expenses. Repairs and Maintenance $10,500 This section of the budget funds vehicle maintenance for the departments three vehicles, as well as maintenance on two Xerox copiers. Supplies and Services $126,510 This category of expenditures for the Administration Department includes routine operating costs associated with the Town Clerk, Town Manager, Finance and Human Resources functions. A summary of proposed expenses is listed below: Conferences for town manager, town clerk, finance director: AZ League of Cities and Towns Conf. International/AZ City Manager Association Election Official workshop, clerk academy Finance Officers Association conference Education/Training for staff staff tuition reimbursement HR seminars/speakers miscellaneous seminars certification/continuing education director off-site retreat Fiscal Year 2005-2006 Budget - 63 - $ 6,500 $ 4,000 $ 750 $ 500 $ $ $ $ $ 2,000 2,000 1,850 1,450 5,000 Town of Fountain Hills Dues/Publications League of Arizona Cities/Towns Greater Phoenix Economic Council Maricopa Association of Governments Professional memberships West Group, Innovative Group International/Arizona City Manager Assoc Government Finance Officers Assoc. Miscellaneous periodicals Office Supplies copy paper, supplies general office supplies (calendars, toner) staff holiday party employee recognition awards meeting refreshments (water, coffee) dog tags, budget supplies Printing budget, annual report letterhead/envelopes with new address checks, business cards with new address Communications newsletters, strategic plan survey, Town Hall invitations Fiscal Year 2005-2006 Budget - 64 - $ $ $ $ $ $ $ $ 9,500 8,300 4,500 3,000 2,950 1,500 1,015 1,700 $ $ $ $ $ $ 5,200 7,200 4,500 4,700 2,000 2,100 $ 2,900 $ 2,500 $ 1,800 $28,995 Town of Fountain Hills ADMINISTRATION FY 2002-2003 Actual FY 2003-2004 Actual FY 2004-2005 Budget FY 2004-2005 Estimate FY 2005-2006 Proposed SALARIES & BENEFITS: Wages 757,212 563,634 751,200 637,061 769,700 FICA 16,267 10,477 20,100 14,600 17,500 733 814 1,200 1,212 1,200 59,384 37,637 56,100 35,869 59,900 Unemployment Insurance Employee's Health Insurance Employee's Life Insurance 587 1,360 2,100 1,676 2,400 6,668 5,355 7,400 5,070 7,400 669 0 0 0 500 5,696 5,115 8,600 6,709 8,600 Employee's Retirement Fund 77,558 54,997 71,100 64,235 75,200 Recruitment Costs 13,446 0 15,000 0 0 2,178 1,900 3,100 2,312 3,500 $940,398 $681,289 $935,900 $768,744 $945,900 45,436 11,436 1,502 49,900 26,772 1,523 97,920 61,750 1,850 90,900 15,000 1,850 101,710 22,708 1,980 $630,622 $78,196 $161,520 $107,750 $126,398 1,406 12,601 1,163 8,808 2,500 10,800 2,500 9,000 2,500 8,000 $14,007 $9,970 $13,300 $11,500 $10,500 4,482 1,362 20,223 2,280 22,585 3,659 0 3,449 1,635 10,874 10,409 28,404 2,440 15,150 4,255 0 3,893 262 12,250 22,300 47,665 5,700 15,700 4,950 20,000 2,100 500 12,000 18,800 31,350 3,000 20,000 4,500 20,000 2,100 500 11,750 12,300 33,515 3,550 25,700 7,200 28,995 2,100 1,400 $59,675 $75,687 $131,165 $112,250 $126,510 $1,644,702 $845,142 $1,241,885 $1,000,244 $1,209,308 Employee's Dental Insurance Employee's Eye Insurance Worker's Compensation Insurance Disability Insurance TOTAL CONTRACT SERVICES Professional/Outside Services Public Transit /RPTA Civil Defense TOTAL REPAIRS & MAINTENANCE: Vehicle Maintenance Office Equipment Repairs TOTAL SUPPLIES & SERVICES: Conferences Education/Training Dues & Publications Gas & Oil Office Supplies Printing Communications Travel Uniforms TOTAL TOTAL EXPENDITURES * Includes Information Technology wages and benefits. Fiscal Year 2005-2006 Budget - 65 - Town of Fountain Hills This page left intentionally blank. Fiscal Year 2005-2006 Budget - 66 - Town of Fountain Hills Operational & Community Support Division This is a new division for FY05-06 that includes expenses previously included within the Administration Department that are applicable to all functions of the Town government. The types of expenses included within this division are overhead type costs and represents 18% of the General Fund budget. Operations/Community Support Capital 2% Supplie s/Se rvice s 37% Re pairs/Mainte n ance 2% Contract Se rvice s 59% Contract Services $1,648,635 These funds provide for contracts with outside vendors who provide specialized functions for the Town that are applicable to all departments. Accounting Fees and Professional/Outside Services $15,025 The Town is required by law to have an annual audit conducted by an independent auditor at the end of each fiscal year. The FY04-05 audit will be conducted in September, 2005, with a report to the Council in mid-October. Legal Fees Legal fees include the services of the town attorney, town prosecutor, and specialized legal services, if required, for bond transactions, employment issues, tax claims or other unanticipated legal services. The FY05-06 budget contains the following estimated legal fees: Town attorney Town prosecutor Sales tax refund claim Public defender, unanticipated legal costs, etc. Total $184,500 $110,000 $ 50,000 $ 6,360 $350,860 Fiscal Year 2005-2006 Budget - 67 - Town of Fountain Hills Community Benefit and Special Programs Each fiscal year the Town of Fountain Hills receives requests from various community organizations to support their organizations by including funding in the proposed budget. The requests received for FY05-06 and the amounts are as follows: (individual requests are located in Appendix B.) Boys & Girls Club of Scottsdale (capital) Boys & Girls Club of Scottsdale (operating) Fountain Hills Community Theater Fountain Hills Tourism Bureau Total Requests $ 85,000 $ 75,000 $ 50,000 $125,000 $335,000 Sales Tax Rebates/Refunds $877,750 In July 2001, the Town Council entered into an economic development agreement with the Shea Retail Center providing Target stores with a rebate of 50% of the local sales tax collected and paid to the Town by the merchants doing business within the center. The terms of the agreement provide for an amount not to exceed $989,000 or ten years, whichever comes first. The estimated payment included in the FY05-06 budget is approximately $283,000, assuming that the local tax rate remains at 2.6%. If the rate remains the same, it is estimated that the rebate will be paid in full by FY06-07. The Town has received requests from two taxpayers for refunds of local sales taxes previously paid. The claims were rejected by the Town and have been appealed by the taxpayers. A budget appropriation has been included in the event that the Town is not successful in the appeal. The FY05-06 proposed budget also includes a refund of $50,000 to the Eagle Mountain Community Facilities District for administrative fees that the Town charged to the District in FY02-03. The community homeowners association has requested that these fees be refunded to the District. Repairs and Maintenance $65,650 This section of the budget funds maintenance for all overhead expenditures dealing with maintaining and operating town-owned facilities. Budgeted amounts are based on an estimate of what the costs will be in the new Town hall and includes an additional $20,000 in one-time costs associated with the move from the leased facility to the new building. The following is a breakdown of the costs: HVAC (Heating, Ventilation and Air Conditioning) Moving Costs (close-out, move in) Chillers maintenance and inspections Waste Collection Cleaning Supplies Electrical, plumbing, fuel station repairs Kiwanis, Theater maintenance Fire Stations maintenance Maintenance/Repair Supplies (Home Depot, Paul’s, etc) $15,000 $20,000 $ 5,350 $ 2,650 $ 5,000 $11,650 $ 2,000 $ 2,000 $ 2,000 These costs assume that routine maintenance will be continue to done by in house staff and outside service calls will be done only when technical service is required. Fiscal Year 2005-2006 Budget - 68 - Town of Fountain Hills Supplies and Services $1,011,732 This category of expenditures includes all routine operating costs associated with the Town governmental functions. Operational & Community Support serves all other departments in the areas of public notices, public facility utilities and/or rent, and liability insurance costs. The most significant portion of supplies and services is an appropriation for rent in the current leased building. The Town anticipates the move into the new Town hall prior to July 1, 2005; however, in the event of unforeseen circumstances that may delay the move, this budget includes funding for several months rent ($659,000). These costs were a major determining factor in making the decision to construct a new municipal building that will save the taxpayers significant money over the long-term. Advertising The annual cost of placing meeting notices, the annual budget, resolutions, and ordinances in the local newspaper, includes costs associated with employee recognition and service awards. The following is a breakdown of the costs: Public notices, resolutions etc. Employment ads Recognition and service awards: Miscellaneous promotional items, notices $2,500 $1,000 $6,950 $1,500 Electricity/Water/Sewer FY05-06 utility costs for Town-owned buildings are anticipated to reduce significantly with the move to the new building ($145,200 last fiscal year). The following is a breakdown of the costs: Town Hall Kiwanis Building Library/Museum $48,000 $ 900 $27,800 Liability Insurance $221, 382 The Town of Fountain Hills is a member of the Arizona Municipal Risk Retention Pool (AMRRP), which provides municipal insurance to most Arizona cities and towns. The limit for basic coverage is $2,000,000 per occurrence on a claims-made basis with excess coverage in the amount of $8,000,000 is included in the premium. The anticipated increase in insurance includes coverage for land use liability, liquor liability (for the community center), commuting coverage and deductibles. The Town’s coverage maintains a $10,000 per occurrence deductible. There is $20,000 included within this line item in the event two claims are made and the Pool settles on behalf of the Town, as well as $5,000 for additional endorsements for any equipment added. Capital Outlay $45,000 The FY05-06 budget includes a capital request to make ADA (Americans with Disabilities Act) modifications to the two fire stations owned by the Town. Fiscal Year 2005-2006 Budget - 69 - Town of Fountain Hills OPERATIONAL & COMMUNITY SUPPORT FY 2002-2003 Actual CONTRACT SERVICES Accounting Fees Legal Fees Boys & Girls Club Senior Center Services Community Benefits/Theater Tourism Sales Tax Rebates FY 2003-2004 Actual FY 2004-2005 Budget FY 2004-2005 Estimate FY 2005-2006 Proposed 11,665 446,474 20,000 10,000 0 65,489 77,824 13,040 360,794 130,000 40,000 15,000 50,677 309,385 17,500 330,700 150,000 55,000 40,000 75,500 837,650 15,000 330,700 145,000 55,000 40,000 75,500 375,000 15,025 350,860 160,000 0 50,000 125,000 877,750 $631,452 $918,896 $1,506,350 $1,036,200 $1,578,635 72,990 51,397 57,700 45,000 65,650 TOTAL $72,990 $51,397 $57,700 $45,000 $65,650 SUPPLIES & SERVICES: Advertising Electricity Liability Insurance Postage Rent Expense Water/Sewer Bank Charges 5,638 139,648 421,811 16,951 371,178 22,801 1,828 6,353 157,190 253,996 15,258 385,421 18,419 2,712 14,500 138,350 318,610 25,600 895,570 24,362 3,350 8,000 145,200 203,400 16,000 250,000 22,500 2,500 11,950 76,700 221,382 28,700 659,000 9,300 4,700 $979,854 $839,349 $1,420,342 $647,600 $1,011,732 0 0 0 0 45,000 TOTAL REPAIRS & MAINTENANCE: Building Repairs & Maintenance TOTAL CAPITAL EXPENDITURES Capital Outlay - Improvements TOTAL CAPITAL EXPENDITURES TOTAL EXPENDITURES $0 $0 $0 $0 $45,000 $1,684,296 $1,809,642 $2,984,392 $1,728,800 $2,701,017 Fiscal Year 2005-2006 Budget - 70 - Town of Fountain Hills Information Technology Division Mission Statement The mission of the Information Technology Division is to work in partnership with the Town staff, facilitating their use of computing, telephone, and network technologies. The division also endeavors to provide excellent information technology, internal and external customer support, and resources to enable and encourage staff to effectively use technology to achieve town-wide missions and strategic goals. Division Description Information Technology (I/T Division) functions are incorporated within the Administration Department but the appropriation is shown separately to highlight the total investment in technology. Responsibilities include all aspects of Information Technology: computers, the Internet, town website, local and wide-area networks, inter-networking, voice and data communications systems, and cablecast technologies (Channel 11). All hardware and software requests in this section are based on departmental requests. Performance Standards • • • • • • Coordinate and implement technology related purchases and processes Town-wide. Enhance the functionality of the Information Technology division. Expand and enhance internal training programs. Act as technology consultant and coordinator for Town departments to aid in identification, selection, and implementation of technology driven or assisted needs. Develop enterprise-wide technology architecture to drive standards that enable information sharing and maximize return on technology investments. Provide strategic I/T services and serve as an enabler to improve the delivery of Town services and improve the efficiency, productivity, and financial performance of Town operations. Fiscal Year 2005-2006 Budget - 71 - Town of Fountain Hills Management Indicators Training Programs Offered Documented service requests Average time to resolve HelpDesk requests Video Conference Meetings/Interviews Channel 11 requests FY 2003 Actuals N/A FY 2004 Actuals 13 FY 2005 Actuals 14 FY 2006 Estimates 3 703 680 828 850 48 Hours 4 Hours 1.5 Hours 1 Hour N/A N/A 15 20 153 162 N/A N/A Fiscal Year 2004-2005 Accomplishments ▬▬▬▬▬▬ • • • • • Creation of Public Information Group, also known as PIG, with representatives from each department responsible for revolutionizing the Town’s Website, Intranet, and Government Access Channel 11. Assisted Clerk’s Office with institution of electronic council packets. Increased network reliability thru the implementation of redundant power backup systems on all segments of data network. Installation of Fountain Park and Civic Center Phase II Webcams for live viewing on Town’s website. Coordinated Microsoft Excel training class at Community Center for all Town staff. Fiscal Year 2004-2005 Objectives ▬▬▬▬▬▬ • • • • Respond to HelpDesk requests within 60 minutes. Work cooperatively with Public Information Group to enhance functionality and appearance of Town website, intranet and increased programming on Channel 11. Relocate Town’s Data and Voice networks to new municipal building with minimal downtime and impact on government services. Upgrade aging servers with lost cost, high performance servers Salaries and Benefits The I/T division currently has one Information Technology Coordinator. The position is appropriated within the Administration Department. There are no new positions for information technology in the upcoming fiscal year. Fiscal Year 2005-2006 Budget - 72 - Town of Fountain Hills Contract Services $39,700 An amount of $2,000 is included in this budget for an outside contractor to assist with the modifications to the town servers and the website, if necessary, due to the move. Also included under contract services is the annual appropriation for the costs associated with videotaping Town Council meetings ($11,700). A new funding request of $26,000 is included for the preparation of six newsletters that will be printed and distributed to the community as part of the implementation of the public information program. The newsletters will be a valuable tool that the Public Information Office can use to provide the public with accurate information from the Town to its citizens. Repairs and Maintenance $78,895 This expenditure line item includes required maintenance and service on all Town-owned computer hardware and software. It includes annual software maintenance agreements and payper-call service calls for the various programs. The proposed repairs and maintenance budget is a significant increase over the prior year ($31,345) due to unanticipated costs related to moving the equipment from the leased premises to the new Town hall. The cost by department is as follows: Information Technology Parks & Rec / Community Ctr Street Division Public Works Fire Dept Planning & Zoning Information Technology Division Repairs & Maintenance FY 2005-2006 All computer repairs, maintenance contracts for hardware and software support Support for servers (12) (RAID arrays) $23,000 $6,500 Scheduled server replacement (2 servers) $7,000 LCD Monitor Replacements (15) $5,625 Virus protection maintenance (83 users) $3,320 Public Information Group $2,500 Software support for program registration and facility booking program Pavement and fleet vehicle maintenance software support Intersection software upgrade Replace (6) Desktop computers, laser printer Firehouse annual support AutoCAD Upgrade, Maintenance Fiscal Year 2005-2006 Budget - 73 - $ 9,250 $ 4,900 $ 1,000 $9,600 $700 $5,500 Town of Fountain Hills Supplies and Services $82,820 A new appropriation of $2,600 is included in education/training for the Assistant Town Manager and I/T staff to attend an Arizona City/County Management Association conference. Additional funding is proposed for the Assistant Manager and I/T staff to take professional development/certification courses that will enhance the level of service to the public and the staff. An additional $2,800 is included to provide computer program training (Excel, Powerpoint, etc.) for the town staff. Under dues/publications the Town pays a subscription service to ASU and Qwest for the Internet connection at an annual amount of $7,000, as well as $6,400 for the annual subscription to the code enforcement software. The I/T division is responsible for all costs associated with telecommunications, networking, and telephone service. The monthly line charges through Qwest, ASU (internet), Muzak, and others comprise the majority of this category at approximately $53,350. Channel 11 equipment and filming supplies are included at a cost of $2,500. Capital Expenditures 157,540 The move to the new building provides an opportune time to upgrade the Town’s older copiers and printers. Proposed in the FY05-06 budget is the following new equipment and computers: Replace two (2) Xerox copiers with digital copiers Laptops for Council and staff for new Council chambers (10) Laser printers (3) Podium presentation PC New server for P&R online registration program New CAD (Planning and Zoning) workstations (2) Desktop Computer for Assistant Manager, intern $80,000 $15,000 $ 9,000 $ 2,500 $ 3,500 $ 9,000 $ 3,000 Software requirements for all the departments include the following: Digital signature software (new) On-line Class Registration Software (new) Internet Webcam (2) – parks Blackberry Enterprise Server Fiscal Year 2005-2006 Budget - 74 - $ 5,000 $25,000 $ 3,000 $ 2,000 Town of Fountain Hills INFORMATION TECHNOLOGY CONTRACT SERVICES Professional/Outside Services Constituent Communications TOTAL REPAIRS & MAINTENANCE: Computer Repairs & Maintenance TOTAL SUPPLIES & SERVICES: Conferences Education/Training Dues & Publications Office Supplies Printing Communications TOTAL FY 2002-2003 Actual FY 2003-2004 Actual FY 2004-2005 Budget FY 2004-2005 Estimate FY 2005-2006 Proposed 0 11,815 2,875 12,637 1,000 39,500 1,000 24,000 2,000 37,700 $11,815 $15,512 $40,500 $25,000 $39,700 33,273 47,977 47,550 47,550 78,895 $33,273 $47,977 $47,550 $47,550 $78,895 0 5,000 7,090 1,000 0 48,965 0 3,000 16,900 1,200 0 43,500 2,600 4,600 13,490 4,280 2,000 55,850 0 900 9,741 4,928 0 56,943 0 4,450 7,430 1,141 0 46,262 $72,511 $59,284 $62,055 $64,600 $82,820 0 1,531 0 0 0 3,989 10,463 0 0 7,500 8,626 0 0 7,500 8,626 0 80,000 42,000 35,540 $1,531 $14,452 $16,126 $16,126 $157,540 $119,130 $137,225 $166,231 $153,276 $358,955 CAPITAL EXPENDITURES Capital Outlay - Equipment Capital Outlay - Computers Capital Outlay - Software Capital Outlay - Communications TOTAL CAPITAL EXPENDITURES TOTAL EXPENDITURES *Informational Technology wages and benefits included within Administration Department budget. Fiscal Year 2005-2006 Budget - 75 - Town of Fountain Hills This page left intentionally blank. Fiscal Year 2005-2006 Budget - 76 - Town of Fountain Hills Public Works Building Safety Planning Streets Town of Fountain Hills Fiscal Year 2005-2006 Budget Town of Fountain Hills Public Works Public Works Open Space Management Engineering Street Maintenance Planning and Code Enforcement Building Safety Mission Statement The Public Works Department’s mission is to express and enhance the beauty, value, and quality of the environment by operating and maintaining public grounds, dams, medians, natural washes and open space, as well as protecting the health, safety, and well being of the public by assuring properly designed and constructed infrastructure, correct property transfers, quality mapping, and excellent customer service. Department Description The Open Space and Engineering Divisions are responsible for the operation and maintenance of Town-owned wash parcels, open space, dams, public grounds and median landscaping. The department is responsible for six ADWR jurisdictional dams and numerous smaller dams. The department maintains landscaping at all Town-owned buildings and facilities (except public parks), including Town Hall, Community Center/Library, two fire stations, Community Theatre buildings, and the street yard. Engineering processes, reviews, permits and inspects encroachment permits, including subdivision plans, “off-site” improvement plans and utility cuts. Engineering supports Building Safety by reviewing and inspecting site work plans for building permits. Engineering also supports the Planning Division by technical review of area specific plans, rezonings, preliminary plats, special use permits and other land use matters. Public Works is responsible for all right-ofway capital projects including streets, traffic, drainage and landscaping, and it provides technical support for park and building projects. It provides project planning, design and drafting (or design contract management and plan review), construction inspection and contract administration. The division also handles all street related construction maintenance contracts, including their design, layout and inspection. 2004-2005 ACCOMPLISHMENTS • • • • • Submitted the Stormwater Management Plan to ADEQ and EPA for municipal stormwater discharges. Continued the wash management program at various locations where fire hazards existed. Reviewed site plans for building permits, subdivision preliminary plats and condo replats. Reviewed, permitted and inspected utility permit requests. Reviewed and processed easement and right-of-way abandonments and acquisitions. Fiscal Year 2005-2006 Budget - 77 - Town of Fountain Hills • Inspected (or liaison for) major projects including: The Villas @ Firerock Balera Development Town Center Crossing Condos Eagles Nest Infrastructure The Enclave New traffic signal at Fountain Hills Boulevard and El Lago Boulevard All street maintenance projects in the northwest portion of Town (over 18 miles). 2005-06 OBJECTIVES: • • • • • Fulfill the first six requirements of the Stormwater Management Plan as required by the Arizona Department of Environmental Quality (ADEQ) and Environmental Protection Agency (EPA). Provide wash management at urgent and moderate fire hazard areas in coordination with the Fire Department requests. Assist the McDowell Mountain Preservation Commission (MMPC) with trailhead design in Adero Canyon. Provide capital project planning, design and construction consistent with the budget. Continue street major maintenance work (see Street Section). PERFORMANCE STANDARDS: • • • • • • Provide single family residence reviews within 20 working days Provide a high level of median maintenance, recognizing that medians are a very important element of the “first impression” people have of Fountain Hills Inspect all dams quarterly (State inspection annually) Provide a customer friendly environment for citizen and developer access to services Provide technical input to the Town Council and advisory commissions as requested Assist Planning & Zoning with technical support of the annexation process of State Trust Land Management Indicators Engineering Plan review time (1st submittal) goal • Single family residence: 20 working days • Commercial: 15 working days • Subdivision: 20 working days • Utility: 5 working days • Easement abandonments: 35 working days • Number of dams inspected Town owned maintained property Wash management program 2003-04 Actual 2004-05 Estimates 2005-06 Projected 90% 90% 90% 90% 80% 6 90% 90% 90% 90% 80% 6 90% 90% 90% 90% 80% 6 1528 acres 33.1 acres 1529 acres 51.4 acres 1529 acres 28.5 acres Note: Acres can vary depending on density of vegetation Fiscal Year 2005-2006 Budget - 78 - Town of Fountain Hills Summary Expenditures - Public Works FY 2002-2003 Actual FY 2002-2004 Actual FY 2004-2005 Budget FY 2004-2005 Estimate FY 2005-2006 Budget $653,944 $558,794 $719,110 $671,019 $605,870 CONTRACTUAL SERVICES $28,575 $41,787 $59,500 $69,500 $187,025 REPAIRS & MAINTENANCE $185,781 $263,053 $333,000 $334,400 $447,185 SUPPLIES & SERVICES $74,290 $68,789 $81,625 $75,010 $91,724 CAPITAL EXPENDITURES $18,269 $0 $0 $0 $30,000 $960,857 $932,423 $1,193,235 $1,149,929 $1,361,804 SALARIES & BENEFITS TOTAL EXPENDITURES Schedule of Authorized Positions Position – Title Authorized FTE’s 2002-2003 2003-2004 2004-2005 Proposed 2005-2006 Public Works Public Works Director Town Engineer Senior Civil Engineer Civil Engineer Senior Civil Engineer Inspector Civil Engineer Inspector Executive Assistant Administrative Assistant Open Space & Landscape Spec. 1.00 1.00 1.00 1.00 0 2.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 0 1.00 1.00 0 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 0 1.00 1.00 1.00 0 2.00 1.00 1.00 1.00 0 1.00 Authorized FTE 9.00 7.00 8.00 8.00 Salaries and Benefits $605,870 There are currently 8 full-time positions in the Public Works Department and no requests for additional personnel in FY05-06. Two positions that were previously in this division have been transferred to the Planning and Zoning division budget (Computer Aided Drafting operator and technician) and is reflected in the decrease of salaries and benefits from the prior year estimate. Contract Services $187,025 The Public Works department regularly contracts with design professionals (traffic engineers, land surveyors, architects and landscape architects) for services. These contracts provide disciplines and special expertise that are not available among the Town’s regular staff; provide technical manpower for major projects; and can provide a reserve of technical manpower during overflow time periods. There are three Federal-aid grant projects that will begin the design process this upcoming year. They consist of a climbing lane on westbound Shea from Fountain Hills Boulevard to Palisades, sidewalks from the Middle School to Four Peaks School and alley paving from Colony Drive to Desert Vista Drive. The estimated cost for design fees for these projects is $110,000. Fiscal Year 2005-2006 Budget - 79 - Town of Fountain Hills Other anticipated projects are: • Civil Engineer - Stormwater Management Plan $8,000 • Surveying Services - Northbound right turn lane on Palisades @ Westridge Village and for annual concrete and asphalt surveying $5,000. • Traffic Engineer - Design signal. Three potential intersections are being considered (warrant studies are needed). $40,000 • Civil engineering for Eagles Nest (2 parcels) $17,025 • Contribution to floodplain management, appraisals and mylar scanning - $4,500 Repairs and Maintenance: $447,185 Vehicle Repairs and Maintenance $3,430 The division has six assigned vehicles; one for the department director, two for engineering inspectors, one for the open space and landscape specialist, and two for field work and also pool vehicles for all Town staff. Median Landscape Maintenance $277,110 This line item increased 38% over the prior fiscal year as a result of an increase in median maintenance (see map on page 77). Staff believes that two full-time crews are necessary to maintain our medians and town-owned property; the crews are provided by the annual landscape contract. The request for median landscape maintenance covers: • Spraying pre-emergent (surflan) and post-emergent (roundup) twice a year $20,000 • Mowing, aeration, fertilizer and application $23,812 • Landscape maintenance-4000 hours $193,490 • Palm tree trimming $10,700 • Tree trimming-50 trees $2,550 • Scalp, vacuum, dispose of clippings, mulch, overseed $4,242 • Annual backflow assembly inspection and repairs (required by law) $1,400 • Fountain maintenance/supplies - this work is done in-house and includes chlorine, algaecide, shock treatment, pump/motor maintenance and cleaning bronze statues $8,916 • Irrigation maintenance supplies - this work is done in house and includes valves, clocks, heads, pipes, etc. $2,000 • Major repair at the Shea/Palisades water feature $10,000 Dam/Wash Maintenance $166,645 The item includes fire hazard, drainage control, trash and dumping removal in the wash and preservation areas. It also includes maintenance of items required at the six Town-owned jurisdictional dams. Most of this budget amount will be expended for urgent fire hazard removal areas during next fall, winter, and spring. Due to increased rainfall amounts this year, a sense of urgency does exist for this item (see map at end of this division). Total open space, including washes and dams is 1442 acres. The request for dam and wash maintenance includes: Fiscal Year 2005-2006 Budget - 80 - Town of Fountain Hills • • • • • • Bridge inspections performed by ADOT on box culverts and CMP’s and the removal of sediment and vegetation $3,000 Dam inspections by ADWR and the required cleanup and maintenance $7,000 Wash maintenance: To prevent any drainage problems and for fire protection, we propose to work in 7 washes: Ashbrook Wash (Saguaro to El Pueblo), Cereus Wash (Saguaro to Shea), Cereus Inlet (Saguaro to Firebrick), Fountain Channel (El Lago to Kiwanis), Colony Wash (Kiwanis to west side at inlet), Colony Wash (east side at outlet), Bristol Wash at Sierra Madre (north side at inlet to south side at outlet). Total area is 28.5 acres. $122,645 After the cutting and removal of debris from the washes, a post-emergent spray is applied to prevent re-growth of vegetation not indigenous to the area. The spraying and labor is estimated at $12,000 Re-vegetation of native plant material (seed) is applied - done in-house. Cost of the seed is estimated at $1,000 North Heights Dam conversion to Native Desert $20,000 SUPPLIES AND SERVICES $91,724 This category of expenditures includes advertising and/or public notices, conferences and training for staff, dues and publications, office supplies, tool and shop supplies, printing, communication expenses, travel expenses and uniforms. The electricity and water costs ($71,800) is for the irrigation of medians, fountains and other Town-owned properties. The increase in the water/sewer over the prior years is due to the acquisition of additional medians and water features. CAPITAL OUTLAY $30,000 Included in the FY05-06 budget and capital improvement plan is a replacement vehicle for the Public Works department. This vehicle is being replaced according to the Town’s equipment replacement schedule. Fiscal Year 2005-2006 Budget - 81 - Town of Fountain Hills Fiscal Year 2005-2006 Budget - 82 - Town of Fountain Hills Fiscal Year 2005-2006 Budget - 83 - Town of Fountain Hills Fiscal Year 2005-2006 Budget - 84 - Town of Fountain Hills PUBLIC WORKS FY 2002-2003 Actual SALARIES & BENEFITS: Wages FICA Unemployment Insurance Employee's Health Insurance Employee's Life Insurance Employee's Dental Insurance Employee's Eye Insurance Worker's Compensation Insurance Employee's Retirement Fund Recruitment Costs Disability Insurance FY 2003-2004 Actual FY 2004-2005 Budget FY 2004-2005 Estimate FY 2005-2006 Proposed 512,668 7,086 402 62,159 536 7,080 607 4,769 56,393 0 2,243 443,205 6,140 412 46,685 1,213 5,883 0 4,396 48,733 0 2,127 560,200 8,190 480 70,250 1,780 7,920 0 5,970 61,630 0 2,690 524,801 7,400 507 56,400 1,537 6,533 0 7,000 57,728 6,584 2,529 472,400 6,900 530 55,120 1,610 5,780 360 8,840 51,970 0 2,360 $653,944 $558,794 $719,110 $671,019 $605,870 0 28,575 20,390 21,397 2,000 57,500 2,000 67,500 2,500 184,525 TOTAL $28,575 $41,787 $59,500 $69,500 $187,025 REPAIRS & MAINTENANCE: Vehicle Repair & Maint. Mowing/Landscape Maintenance Wash Maintenance 3,023 139,516 43,242 4,321 126,257 132,474 3,000 200,000 130,000 4,400 200,000 130,000 3,430 277,110 166,645 $185,781 $263,053 $333,000 $334,400 $447,185 19 0 35 937 9,725 4,610 3,889 315 144 2,929 50,308 0 1,343 35 1,842 145 1,725 1,018 9,628 6,026 4,884 154 724 2,630 38,611 50 1,317 35 2,000 500 2,200 1,300 11,500 7,500 5,000 500 1,000 3,500 45,000 100 1,525 0 1,250 500 1,100 1,700 11,500 5,000 3,700 500 500 2,500 45,000 200 1,525 35 1,250 1,500 1,160 1,885 12,000 5,570 2,500 500 1,000 3,324 59,800 100 1,135 0 $74,290 $68,789 $81,625 $75,010 $91,724 18,269 0 0 0 30,000 $18,269 $0 $0 $0 $30,000 $942,589 $932,423 $1,193,235 $1,149,929 $1,361,804 TOTAL CONTRACT SERVICES Contractual Services Engineering Fees TOTAL SUPPLIES & SERVICES: Advertising Conferences Education/Training Dues & Publications Electricity Gas & Oil Office Supplies Tools, Shop Supplies Printing Communications Expense Water/Sewer Travel Uniforms Bank Charges TOTAL CAPITAL EXPENDITURES Capital Outlay - Vehicles TOTAL CAPITAL EXPENDITURES TOTAL EXPENDITURES Fiscal Year 2005-2006 Budget - 85 - Town of Fountain Hills This page left intentionally blank. Fiscal Year 2005-2006 Budget - 86 - Town of Fountain Hills Building Safety Division Mission Statement The Building Safety division of the Public Works Department is dedicated to providing the highest quality construction permitting; plan review and building inspection services in a responsive and friendly manner. Division Description The Building Safety Division processes applications for permits to construct homes, commercial buildings, fences, pools, and any other structures. The division serves as a receiving and processing center for internal review of these plans. The division’s review and inspection staff includes a building official, two certified residential plans examiner, three certified building inspectors and three permit technicians to assure compliance with the adopted building codes of the Town. The Building Safety Division also issues numerous reports concerning building activity to other public agencies. The Building Safety Division anticipates that it will process over 1,100 building permit applications and perform inspections at approximately 750 building sites in fiscal year 20052006. Most of the division’s activity will be concentrated in the developing portions of Firerock Country Club, Crestview, Eagle’s Nest and Town Center. The division expects the same levels of construction inspection activity due to on-going construction projects that have been permitted in fiscal year 2003-2004 (650 active and open permits), and new residential and commercial projects permitted early in fiscal year 2004-2005. 2004-2005 Accomplishments Projected from figures based on first nine months of fiscal year 2004-2005, the Building Safety Division accomplished the following: • Reviewed 876 building plans and permit applications. • Performed 8,732 commercial and residential building inspections. • Provided technical assistance in the construction of the Civic Center Phase II, Eagle’s Nest Public Facilities and Federal ADA assessment of Town owned facilities. • Maintained an automated building permit system to better enhance customer service and reduce paperwork. 2005-2006 Objectives • • • Provide 200 training hours for plans examiners, building inspectors and building permit technicians Maintain high workplace safety standards in the field and in the office Continue to educate the community about new Building Codes and Energy Conservation Codes Performance Standards • • Perform first review plan reviews within 20 working days, and subsequent plan reviews in 10 working days Identify all plan review concerns in the first review Fiscal Year 2005-2006 Budget - 87 - Town of Fountain Hills • • Perform all requested inspections within 24 hours Provide a customer friendly environment for citizens to access the services of the division and process the needed applications Management Indicators 2003-2004 Actual 2004-2005 Estimated* 2005-2006 Estimated Building Permit Activity 143 160 • Single-family 48 288 Units • Multi-family 11 20 • Commercial 726 620 • Pools, Fences, Additions and Remodels Building Counter Activity 850 880 On-site Inspection 6,985 9,839 Number of training hours * Estimated, based on actual figures from the first three quarters. 140 230 Units 6 713 1012 11,315 Summary Expenditures - Building Safety FY 2002-2003 Actual FY 2002-2004 Actual FY 2004-2005 Budget FY 2004-2005 Estimate FY 2005-2006 Budget $337,056 $458,952 $456,500 $445,365 $560,500 CONTRACTUAL SERVICES $27,629 $66,586 $15,000 $40,000 $39,150 REPAIRS & MAINTENANCE $1,384 $2,030 $1,800 $1,000 $2,200 $13,811 $20,903 $21,630 $18,400 $25,995 $0 $0 $0 $0 $25,000 $379,879 $548,472 $494,930 $504,765 $652,845 SALARIES & BENEFITS SUPPLIES & SERVICES CAPITAL EXPENDITURES TOTAL EXPENDITURES Schedule of Authorized Positions Position – Title Authorized FTE’s 2002-2003 2003-2004 2004-2005 Proposed 2005-2006 Building Safety Chief Building Official Plans Examiner Building Inspector Building Permit Technician Senior Building Inspector 1.00 2.00 1.00 2.00 2.00 1.00 2.00 2.00 2.00 0 1.00 2.00 2.00 3.00 0 1.00 2.00 2.00 3.00 1.00 Authorized FTE 8.00 7.00 9.00 9.00 Fiscal Year 2005-2006 Budget - 88 - Town of Fountain Hills Salaries and Benefits $560,300 The increase from 8 FTE’s to 9 reflects the re-instatement of the Senior Building Inspector position that has been vacant since FY02-03. This position was approved during mid-FY04-05 by the Town Council in order to improve the level of expertise required for the new, larger custom homes and commercial development that the Town is experiencing. Contractual Services $39,150 When commercial building plans are submitted for review, or when the residential plan check or inspection load exceeds the division’s ability to maintain its turn-around goals, outside consulting firms are utilized. During FY04-05 the Town had to utilize consultant services exceeding expectations in order to perform building inspections. As the Town approaches build-out the need for full time inspectors will diminish, therefore, short-term solutions through consulting fees makes economical sense. Repairs and Maintenance $2,200 This division currently maintains four vehicles that are approaching 10 years of age. A replacement policy was prepared that continually phases in new vehicles according to age and/or mileage of the vehicle. With the schedule, there is one new vehicle being proposed for replacement in FY05-06. Supplies and Services $25,995 Funds are included for advertising or posting notices, professional dues and publications for the inspectors, gas and oil, office supplies, printing, communication expenses, travel and uniforms. The proposed budget includes an increase of 91% for conferences and education/training to obtain further certifications and training for the inspectors. Capital Outlay $25,000 According to the Town replacement schedule the Building Safety Division will replace a 1995 Ford pickup that is used by the inspectors. Fiscal Year 2005-2006 Budget - 89 - Town of Fountain Hills BUILDING SAFETY FY 2002-2003 Actual SALARIES & BENEFITS: Wages FICA Unemployment Insurance Employee's Health Insurance Employee's Life Insurance Employee's Dental Insurance Employee's Eye Insurance Worker's Compensation Insurance Employee's Retirement Fund Disability Insurance TOTAL CONTRACT SERVICES Professional Fees TOTAL REPAIRS & MAINTENANCE: Vehicle Maintenance TOTAL SUPPLIES & SERVICES: Advertising Conferences Education/Training Dues & Publications Gas & Oil Office Supplies Tools, Shop Supplies Printing Communications Expense Travel Uniforms Bank Charges TOTAL CAPITAL EXPENDITURES Capital Outlay - Vehicles TOTAL CAPITAL EXPENDITURES TOTAL EXPENDITURES FY 2003-2004 Actual FY 2004-2005 Budget FY 2004-2005 Estimate FY 2005-2006 Proposed 266,119 3,724 455 29,712 312 3,787 288 2,306 29,273 1,080 354,637 4,843 609 48,362 945 6,229 0 2,898 39,000 1,428 345,400 5,000 400 55,200 1,100 6,500 0 3,200 38,000 1,700 347,384 5,037 641 41,339 1,034 5,455 0 4,922 38,212 1,341 428,000 6,200 600 61,500 1,500 7,200 400 5,900 47,100 2,100 $337,056 $458,952 $456,500 $445,365 $560,500 27,629 66,586 15,000 40,000 39,150 $27,629 $66,586 $15,000 $40,000 $39,150 1,384 2,030 1,800 1,000 2,200 $1,384 $2,030 $1,800 $1,000 $2,200 1,549 129 950 3,099 2,491 860 0 859 2,852 63 948 10 1,046 524 2,073 1,099 4,658 1,588 100 2,295 5,929 413 1,180 0 1,000 1,000 5,000 2,200 4,680 1,000 300 1,500 3,300 300 1,350 0 1,000 1,000 4,000 1,000 5,600 1,000 300 1,000 2,000 1,000 500 0 500 1,825 7,770 2,850 6,200 1,000 300 1,800 2,500 250 1,000 0 $13,811 $20,903 $21,630 $18,400 $25,995 0 0 0 0 25,000 $0 $0 $0 $0 $25,000 $379,879 $548,472 $494,930 $504,765 $652,845 Fiscal Year 2005-2006 Budget - 90 - Town of Fountain Hills Street Division (Highway User Revenue Fund) STREET FUND SUMMARY FY 2002-2003 Actual REVENUE: LTAF Highway User Charges for Svcs/In Lieu Pmts Interest Misc. Income Transfer from General Fund TOTAL CURRENT REVENUE EXPENDITURES: Salaries and Benefits Contractual Services Repairs and Maintenance Supplies and Services Capital Outlay Debt Retirement TOTAL CURRENT EXPENDITURES EXCESS OF REVENUES OVER/ (UNDER) EXPENDITURES Fund Balance Beginning of Year Ending Fund Balance FY 2003-2004 Actual FY 2004-2005 Budget FY 2004-2005 Estimate FY 2005-2006 Proposed 115,691 1,310,997 31,775 298 7,410 0 115,339 1,400,448 28,597 3,701 0 0 113,700 1,390,900 19,000 1,500 1,000 0 113,700 1,460,500 5,000 6,500 35,000 0 113,700 1,598,850 8,000 4,500 1,000 500,000 $1,466,170 $1,548,085 $1,526,100 $1,620,700 $2,226,050 613,036 0 340,540 194,991 2,585 126,000 492,691 3,500 578,698 191,084 10,374 123,996 575,511 3,500 653,200 199,500 130,000 120,000 498,906 3,500 665,950 180,550 125,000 120,000 627,550 24,625 1,327,581 212,147 35,000 160,500 $1,277,153 $1,400,343 $1,681,711 $1,593,906 $2,387,403 189,017 147,743 $0 $0 $189,017 $147,743 Fiscal Year 2005-2006 Budget - 91 - (155,611) $0 ($155,611) 26,794 (161,353) $147,743 $174,536 $174,536 $13,183 Town of Fountain Hills Highway User Revenue (Street) Fund Percent Restrictions There is a State constitutional restriction on the use of these funds which requires that these funds be used solely for street and highway purposes. Payment of principal and interest on highway and street bonds are an approved use. Accounts: 3040, 3050 Fiscal Year 1996-97 1997-98 1998-99 Amount Change $1,017,600 24.3% $996,805 -2.0% $1,082,173 8.6% 1999-00 2000-01 $1,136,051 $1,171,463 5.0% 3.1% 2001-02 2002-03 2003-04 2004-05 (est.) 2005-06 (est.) $1,369,677 $1,426,688 $1,515,787 $1,574,200 $1,712,550 16.9% 4.2% 6.2% 3.9% 8.8% Assumptions Cities and towns receive 27.5% of fuel tax and transportation related fees collected by the state based on population and county of origin of gasoline sales. The increases in HURF allocations in FY 1997 and 2002 were the result of the 1995 and 2000 census population growth. The estimate for FY2006 is based on projections from Arizona Department of Transportation. The Local Transportation Assistance Fund (LTAF) comes from lottery proceeds and is distributed to cities and towns based on population as a percentage of all incorporated cities and towns. Major Influences: Gasoline sales, Population, Economy and State Policy HIGHWAY USER REVENUES FY1997 through FY2006 $1,800,000 $1,600,000 $1,400,000 $1,200,000 $1,000,000 $800,000 $600,000 $400,000 $200,000 $0 1996-97 1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 (e st.) (e st.) Fiscal Year 2005-2006 Budget - 92 - Town of Fountain Hills Street Division Mission Statement: The Street Division is dedicated to quality customer service by operating, preserving and maintaining Town-owned roadways and traffic control systems safely and efficiently. Division Description: The HURF (Highway User Revenue Fund) pays for Street Division personnel and contract work for street repairs, operations, maintenance and improvements. Major Street Division staff responsibilities include crack sealing, asphalt patching, signing, traffic signals, brush removal, storm debris clean up, street sweeping, and street related emergency responses. The Division provides vehicle maintenance services for the entire Town fleet, and traffic barricading for Town approved and sponsored special events. Contracted tasks include construction and renovation of streets, sidewalks, drainage facilities and traffic signals. Contracted major street maintenance items include concrete curb replacement, asphalt reconstruction, asphalt overlays, slurry seal and emulsion seal. Performance Standards: • Gutter sweep all streets quarterly, with full width sweeping annually. Gutter sweep all arterial streets and commercial area collector streets monthly. Under the requirements of the Storm Water Management Plan, street sweeping occurs on a daily basis. • Respond to a pothole complaints within 24-hours of notification. • Respond to missing or damaged street signage within 24-hours of notification. • Perform routine maintenance of all Town fleet vehicles to minimize major repair “downtime”. Management Indicators: Miles of streets swept Slurry Seal Microsurfacing Emulsion Seal Applications Striping Applied 2003-04 2004-05 Actual Projected 21.4 miles 10.5 miles 22 miles 15.6 miles 2.7 miles 9.8 miles 28.1 miles 2005-06 Estimated 27.2 miles 2.9 miles 0 miles 30 miles 2004-2005 Accomplishments: Major projects and accomplishments included: • Constructed New Traffic Signal at Fountain Hills Boulevard and El Lago Boulevard. • Completed design of traffic signal at Saguaro Boulevard and El Lago Boulevard intersection • Completed the Town-wide evaluation of all streets relative to asphalt conditions. • Barricading and street closures for all special events (500 man-hours total for 4 special events). • Crack sealing in the northwest quadrant of Town (approximately 18 miles of streets). • Street patching in Town-wide areas - 180 tons of asphalt. • Performed 680 man-hours on major projects such as drainage on Saguaro at Kingstree, bull nose on Saguaro at El Lago, spillway at Saguaro at Kingstree, Shea Blvd overlook beautification). Fiscal Year 2005-2006 Budget - 93 - Town of Fountain Hills • • • Microsurfaced 2.7 miles of streets. Slurry sealed 15.6 miles of streets Emulsion sealed 9.8 miles of streets. 2005-06 Objectives: • Construct traffic signal at Saguaro Boulevard and El Lago Boulevard intersection • Prepare streets in the northeast area of Town for pavement maintenance activities • Update the street maintenance program for addressing annual, 5, 10, and 20-year pavement maintenance needs • Create fleet maintenance program to minimize vehicle down time and provide long term vehicle needs analysis • Retrofit two traffic signals to LED signal heads for cost savings, increased reliability, and improved visibility • Retrofit 5 existing street intersection locations for ADA accessibility compliance • Implement Storm Water Management Plan actions with the installation of 700 STORM drainage marker discs • Purchase new PM-10 street sweeper as required by Maricopa County Dust Control Standards Summary Expenditures - Streets FY 2002-2003 Actual FY 2002-2004 Actual FY 2004-2005 Budget FY 2004-2005 Estimate FY 2005-2006 Budget $613,036 $492,691 $575,511 $498,907 $627,550 $0 $3,500 $3,500 $12,750 $24,625 REPAIRS & MAINTENANCE $340,540 $578,698 $653,200 $665,950 $1,327,581 SUPPLIES & SERVICES $194,991 $191,084 $199,500 $180,550 $212,147 CAPITAL EXPENDITURES $128,585 $134,370 $250,000 $245,000 $195,500 $1,277,153 $1,400,343 $1,681,711 $1,603,157 $2,387,403 SALARIES & BENEFITS CONTRACTUAL SERVICES TOTAL EXPENDITURES Schedule of Authorized Positions Position – Title Authorized FTE’s 2002-2003 2003-2004 2004-2005 Proposed 2005-2006 Street Assistant Public Works Director Street Superintendent Street Maintenance Supervisor Fleet Mechanic Fleet Equipment Mechanic Street Maintenance Tech Equipment Operator 0 1.00 0 1.00 1.00 9.00 2.00 0 1.00 1.00 1.00 1.00 7.00 2.00 0 1.00 1.00 1.00 0 6.00 2.00 1.00 1.00 0 1.00 0 6.00 2.00 Authorized FTE 14.00 13.00 11.00 11.00 Fiscal Year 2005-2006 Budget - 94 - Town of Fountain Hills Salaries and Benefits $627,550 There are no new positions requested within the Street Division for FY05-06; the division currently has 11 full-time regular employees including the street superintendent, mechanic, operators and technicians. However, the proposed budget includes the salary and benefits of the Assistant Public Works Director that had previously been included in the Public Works division. The Assistant Public Works Director’s primary responsibilities are related to streets. Contract Services $24,625 Accounting (auditor) and Town Attorney legal fees are annually prorated to the Street Fund for a combined cost of $14,625. Additionally, under contract services, the Town is requesting consultant services to conduct an update of street segment ratings in order to maintain an accurate pavement management program; $10,000 is included for this service. Repairs and Maintenance $1,327,581 Continued preventative maintenance activities, which prolong pavement life expectancy, reduce the necessity for costly road reconstruction projects. Over 50% of the streets in Fountain Hills are over twenty years old, which is the normal life expectancy of asphalt without regular maintenance. Maintenance operations over the past few years have lagged due to budget constraints, however, the proposed budget includes an increase of 124% over the prior year actual costs ($632,931) in order to bring the roads back up to acceptable standards. These maintenance projects are possible with the transfer of $500,000 from the general fund and represent a good investment in Town streets. Under Major Road Improvements line item the following significant projects are planned (total $1,142,931): • • • • • • • $668,809 - Slurry Seal will be applied in the northeastern area of Town $213,422 - is budgeted for Microsurfacing, which is planned for two locations - Saguaro Boulevard (Palisades Boulevard to Fountain Hills Boulevard) and Fountain Hills Boulevard (Saguaro Boulevard to Palisades Boulevard). See street maintenance map for exact locations. $35,400 - Thermoplastic striping will be applied to all streets being re-surfaced $38,800 - Concrete curb repairs, handicap ramps and aprons will be installed $4,000 - Traffic-calming project $20,000 - Stormwater management plan implementation activities will take place $40,000 – Drainage project at Ruskin and Kipling An additional $146,150 is budgeted under road repair and maintenance; the division is planning on retrofitting existing traffic signals Light Emitting Diode (LED) signal heads, maintaining twelve traffic signals and two school flasher locations. The signal retrofit will enhance safety, reduce electricity consumption, and to increase reliability. Two such retrofits are planned for this fiscal year. Town street signs are being continually replaced and upgraded through the ongoing sign maintenance program. Fiscal Year 2005-2006 Budget - 95 - Town of Fountain Hills Arterial roadways, such as Palisades, Fountain Hills, Saguaro and Shea make up 12% of the total network system. These road sections should receive priorities and added maintenance activities when considering street maintenance. These arterials carry the largest amount of traffic on a daily basis (approximately 65,000 vehicles per day, combined) and therefore, deteriorate the fastest. Major road construction costs on these arterials is expensive and have the largest impact on the traveling public during construction. The condition of a Town’s arterial streets is often times seen as an overall condition of the Town. In addition, properly maintained streets help reduce liability for the Town. Data for the Town-wide street maintenance study has been gathered. Staff continuously performs quality assurance checks on the data collected and works to update the data set to reflect actual current conditions. Continued funding and major maintenance activities is vital to keep the Town’s streets in acceptable condition and to keep major road reconstruction projects to a minimum. Other repairs and maintenance line items include $34,000 for vehicle repairs and maintenance. The department maintains six maintenance vehicles as well as heavy-duty road equipment such as tractors, backhoes, dump trucks and sweepers. Supplies and Services $212,147 Major items include $30,000 for electricity for the traffic signals and $28,930 gas and oil expenses for the division fleet. This item also includes advertising, education and training, dues and publications, office supplies and printing, tool and shop supplies. The FY05-06 budget also includes costs for the division’s proportionate share of general liability and property insurance. Capital Outlay $195,500 There are two capital items proposed for this budget year - a lift boom ($35,000) and replacement street sweeper ($225,000). Both of the Town’s existing street sweepers are considered outdated by today’s industry standards. Maricopa County Dust Control has encouraged all municipalities to purchase new PM-10 sweepers. The Town has applied for a Federal grant through Maricopa Association of Governments (MAG) and is considered as a first alternate to receive funding in the amount of $200,000. The balance of the cost of the sweeper is included as a transfer to the Special Revenue fund in this division budget. If grant funding is not available the sweeper will be postponed to the following fiscal year. Debt Retirement $110,500 The voter-approved street paving bonds of 1991 are paid from highway user revenues. The annual payment is transferred from HURF to the debt service fund. Fiscal Year 2005-2006 Budget - 96 - Town of Fountain Hills Fiscal Year 2005-2006 Budget - 97 - Town of Fountain Hills Fiscal Year 2005-2006 Budget - 98 - Town of Fountain Hills STREET DEPARTMENT FY 2002-2003 Actual SALARIES & BENEFITS: Wages FICA Unemployment Insurance Employee's Health Insurance Employee's Life Insurance Employee's Dental Insurance Employee's Eye Insurance Worker's Compensation Insurance Employee's Retirement Fund Disability Insurance TOTAL CONTRACT SERVICES Accounting Fees Professional Fees Legal Fees TOTAL REPAIRS & MAINTENANCE: Vehicle/Equipment Rep/Maint. Road Repair/Maintenance Equipment Rental Building Repairs/Maint. Office Equipment Rep/Maint. Major Road Improvements TOTAL SUPPLIES & SERVICES: Advertising Conferences Education/Training Dues & Publications Electricity Gas & Oil Liability Insurance Office Supplies Tools, Shop Supplies Printing Communication Expense Water/Sewer Travel Uniforms TOTAL CAPITAL EXPENDITURES Capital Equipment - Vehicles Capital Outlay - Equipment Capital Outlay - Software Capital Outlay - Improvements Debt Retirement Transfer Out TOTAL CAPITAL EXPENDITURES TOTAL EXPENDITURES FY 2003-2004 Actual FY 2004-2005 Budget FY 2004-2005 Estimate FY 2005-2006 Proposed 460,424 7,078 557 59,030 713 7,237 709 24,316 51,133 1,838 375,213 5,485 599 40,762 1,107 4,644 0 21,018 42,083 1,780 424,247 6,220 531 59,427 1,346 6,527 0 28,510 46,667 2,036 362,746 5,260 753 47,774 1,107 5,108 0 34,500 39,902 1,757 456,238 6,700 724 66,234 1,546 6,804 440 36,398 50,186 2,281 $613,036 $492,691 $575,511 $498,907 $627,550 0 0 1,200 3,500 0 4,000 3,500 0 9,250 $0 $3,500 $3,500 $12,750 $24,625 30,772 94,144 0 2,916 496 212,212 34,339 120,748 0 3,922 9 419,680 38,000 120,200 500 4,000 500 490,000 32,000 120,200 500 3,000 250 510,000 34,000 146,150 500 3,500 500 1,142,931 $340,540 $578,698 $653,200 $665,950 $1,327,581 0 0 368 5,402 23,153 13,979 121,812 1,208 7,862 41 6,971 4,396 0 9,800 480 0 344 3,639 26,889 15,073 117,000 1,168 7,604 82 6,496 3,114 24 9,170 300 500 1,800 4,600 28,000 18,700 117,000 1,200 5,500 300 7,500 5,000 100 9,000 300 0 1,800 4,600 28,800 22,100 96,600 1,500 7,500 300 5,000 2,950 100 9,000 300 3,255 3,755 5,175 30,000 28,930 117,000 1,500 5,000 500 5,432 3,200 100 8,000 $194,991 $191,084 $199,500 $180,550 $212,147 0 2,585 0 0 126,000 0 0 3,374 7,000 0 123,996 0 120,000 10,000 0 0 120,000 0 115,000 10,000 0 0 120,000 0 35,000 0 0 0 110,500 50,000 $128,585 $134,370 $250,000 $245,000 $195,500 $1,277,153 $1,400,343 $1,681,711 $1,603,157 $2,387,403 Fiscal Year 2005-2006 Budget - 99 - 3,500 0 9,250 5,375 10,000 9,250 Town of Fountain Hills This page left intentionally blank. Fiscal Year 2005-2006 Budget - 100 - Town of Fountain Hills Planning Division Mission Statement The Planning and Zoning Division is dedicated to enhancing the quality of life in Fountain Hills through innovative planning techniques and providing excellent customer service in a professional and timely manner. Division Description The Planning and Zoning Division administers the Town of Fountain Hills’ planning, code enforcement and economic development programs. Planning functions include the processing of applications for General Plan amendments, area specific plans, special use permits, rezonings, subdivisions, variances, and other land use related requests. Code enforcement responds to citizen concerns and provides proactive services with the goal of eliminating blight and improving the appearance of business and residential areas to enhance property values and maintain the quality of life within the Town. Economic development programs provide support to existing businesses and seek to attract new economic opportunities to the Town. CAD Services provides internal and external customers with maps and geographic information and research. The division provides staff support to the Town Council, the Planning and Zoning Commission, and the Board of Adjustment. Staff represents the Town at intergovernmental meetings, Maricopa Association of Governments committees, boards and special interest associations, and neighborhood groups. Performance Standards Perform first review plan checks within 20 working days and subsequent plan reviews in 10 working days Respond to all citizen inquiries within the same working day Keep the Town Council, Planning and Zoning Commission, Board of Adjustment and other commissions informed of new legislation and legal rulings pertaining to land use matters Provide educational opportunities to members of the Town Council, Planning and Zoning Commission, and Board of Adjustment on pertinent and evolving land use matters Ensure that Council approved ordinances are enforced Encourage the development of economic opportunities Maintain open and constructive relationships with Town businesses and economic organizations to foster public / private partnerships for the betterment of the Town Fiscal Year 2005-2006 Budget - 101 - Town of Fountain Hills Management Indicators Special Use Permits Temporary Use Permits Cut/Fill Waivers Subdivisions w/improvements Replats Administrative Use Permits Variances Comprehensive Sign Plans Concept Plans Plan of Development Zoning Text Amendments Re-zoning General Plan Amendments Annexations 2003-2004 Actual 6 15 2 19 3 9 1 3 18 0 3 1 1 1 2004-2005 Estimated 6 12 2 24 6 8 2 9 20 1 2 1 1 0 2005-2006 Projected 6 12 4 22 8 8 3 8 20 1 3 2 1 0 2004-2005 Accomplishments In the first ten months of fiscal year 2004-2005, the Planning & Zoning Division accomplished the following: • Processed Final Plats for The Enclave, Colony Wash Condominiums and Palatial Estates • Reviewed permit applications for the new Town Hall, Holiday Inn, Kern Plaza, Eagles Nest, Summit at Crestview, CopperWynd expansion, and Village at Town Center • Sponsored two planning interns from Arizona State University • Processed to approval, regulation changes dealing with monument signage, loading and unloading space requirements and requirements for driveways • Investigated and completed 665 code violation complaints in the first 8 months of the FY • Downtown Economic Development Coordinator created demographic information package for distribution to potential new businesses • Contract awarded to WLB Group for the design of Avenue of the Fountains Enhancement Project 2005-2006 Objectives • • • • • • • Begin construction of the Avenue of the Fountains Plan Work with the State Land Department on the planning and future annexation of the State Trust land parcel north of Town Process development proposals and building permit applications in a thorough and timely manner Process text amendments to the Town’s Zoning and Subdivision Ordinances to clarify policies and remove grammatical and typographical errors Continue to enforce Town ordinances and policies to maintain the Town’s quality of life, provide safe living conditions, and protect the environment and preserve resources Develop business retention programs and policies to support existing businesses within the Town Identify attractive development sites and develop economic development programs and policies to attract businesses and industries to the Town Fiscal Year 2005-2006 Budget - 102 - Town of Fountain Hills • Provide staff educational opportunities to best serve the community with the highest level of expertise in the planning, code enforcement and economic development fields Summary Expenditures - Planning & Zoning FY 2002-2003 Actual FY 2003-2004 Actual FY 2004-2005 Budget FY 2004-2005 Estimate FY 2005-2006 Budget $256,296 $171,457 $347,780 $329,717 $585,110 $0 $27,950 $25,000 $25,000 $119,000 $298 $12 $1,000 $1,000 $800 $16,204 $13,122 $24,700 $19,750 $37,330 $0 $0 $0 $0 $0 $272,798 $212,541 $398,480 $375,467 $742,240 SALARIES & BENEFITS CONTRACTUAL SERVICES REPAIRS & MAINTENANCE SUPPLIES & SERVICES CAPITAL EXPENDITURES TOTAL EXPENDITURES Schedule of Authorized Positions Position – Title Authorized FTE’s 2002-2003 2003-2004 2004-2005 Proposed 2005-2006 Planning & Zoning Director P & Z Administrator Senior Planner Planner Eng. Tech/CAD Operator Drafting/CAD Technician Executive Assistant Planning Technician Planning Assistant Economic Downtown Dev. Coor Code Enforcement Officer 1.00 0 2.00 1.00 1.00 1.00 1.00 0 1.00 0 0 0 1.00 1.00 1.00 1.00 1.00 0 0 1.00 1.00 3.00 0 1.00 1.00 1.00 1.00 1.00 0 0 1.00 1.00 2.00 0 1.00 1.00 1.00 1.00 1.00 0 .50 1.00 1.00 3.00 Authorized FTE 8.00 10.00 9.00 10.50 Salaries and Benefits $585,110 Two positions that were previously in Public Works budget have been transferred to this division budget due to a reorganization of supervisor duties – the CAD (Computer Aided Drafting) operator and technician. Additionally, during the budget hearings the Town Council requested that a third officer be hired to enhance the enforcement hours. This is reflected in the 68% increase in salaries and benefits for this division. The division is also requesting the addition of a part-time Planning Technician in FY05/06. This position would improve the ability to review building plans in a timely manner and provide better Fiscal Year 2005-2006 Budget - 103 - Town of Fountain Hills customer service when planners are not available. With a part time Planning Technician on staff, the other planners would be able to devote more of their time to complex planning projects and reduce the turn around time for the projects they are responsible for reviewing. Justification and the job description are included in Appendix A. Contractual Service $119,000 There is a significant increase in this category of expenditures for FY05-06 due to the following one-time expenses: • • • • • outside services will be contracted to perform a needs analysis to determine Geographical Information Systems (GIS) requirements $15,000 an aerial ortho-photo flight of the Town (the last low level flight was in March 2001) $20,000 an Attorney that specializes in water issues will be asked to provide advice regarding State Trust Land water matters pending with the Corporation Commission $20,880 funds for the preparation of a General Plan Amendment that would be necessary in conjunction with the annexation of the adjacent State Trust Land $40,000 funds have been allocated to pay for the Town’s proportionate share of expenses associated with the 2005 Census $23,100 Repairs and Maintenance $800 This line item includes regular service and maintenance for two Code Enforcement vehicles. Supplies and Services $37,330 Funds are included for advertising, including signage and posting of notices and agendas, dues and publications for the planners, gas and oil, travel and uniforms. The increase in conferences is for the planners to attend a national APA conference in San Antonio and the code enforcement officers to attend conferences in Prescott, AZ and Orlando, FL. The increase in office supplies is due to the transfer of the CAD operators to this division including their plotter supplies. The printing line item increased by $7,200 to include the cost of printing the General Plan Amendment that is scheduled to be completed in FY05-06. Fiscal Year 2005-2006 Budget - 104 - Town of Fountain Hills PLANNING & ZONING FY 2002-2003 Actual SALARIES & BENEFITS: Wages FICA Unemployment Insurance Employee's Health Insurance Employee's Life Insurance Employee's Dental Insurance Employee's Eye Insurance Worker's Compensation Insurance Employee's Retirement Fund Recruitment Costs Disability Insurance FY 2003-2004 Actual FY 2004-2005 Budget FY 2004-2005 Estimate 1,280 265,970 3,857 471 24,287 736 2,755 0 1,307 29,257 0 1,077 452,400 7,690 670 60,080 1,560 7,370 400 4,860 47,880 0 2,200 $171,457 $347,780 $329,717 $585,110 0 27,950 25,000 25,000 119,000 $0 $27,950 $25,000 $25,000 $119,000 298 12 1,000 1,000 800 TOTAL $298 $12 $1,000 $1,000 $800 SUPPLIES & SERVICES: Advertising/Signage Conferences Education/Training Dues & Publications Gas & Oil Office Supplies Printing Communication Travel Uniforms Bank Charges 6,479 0 806 3,403 777 1,778 2,397 362 165 0 37 3,393 908 2,486 2,442 779 2,254 536 127 77 120 0 6,500 3,700 2,450 2,550 2,500 2,000 2,800 1,500 200 500 0 2,500 5,200 1,000 3,000 1,150 1,500 2,800 1,500 600 500 0 2,700 7,315 3,500 2,700 2,315 5,600 10,000 2,200 500 500 0 $16,204 $13,122 $24,700 $19,750 $37,330 0 0 0 0 0 $0 $0 $0 $0 $0 $272,798 $212,541 $398,480 $375,467 $742,240 TOTAL Professional Fees TOTAL REPAIRS & MAINTENANCE: Vehicle Repairs & Maintenance TOTAL CAPITAL EXPENDITURES Capital Expenditures - Vehicles TOTAL CAPITAL EXPENDITURES TOTAL EXPENDITURES 206,771 4,812 325 21,264 207 2,177 247 380 19,373 0 740 137,015 1,984 231 11,711 402 1,508 0 301 15,072 2,623 611 275,200 3,890 300 31,840 860 3,700 0 1,470 29,240 $256,296 FY 2005-2006 Proposed Fiscal Year 2005-2006 Budget - 105 - Town of Fountain Hills This page left intentionally blank. Fiscal Year 2005-2006 Budget - 106 - Town of Fountain Hills Parks, Recreation, Community Center, and Senior Services Town of Fountain Hills Fiscal Year 2005-2006 Budget Town of Fountain Hills Parks, Recreation, Senior Services and Community Center Parks and Recreation Parks Senior Services Community Center Mission Statement The mission of the Fountain Hills Parks and Recreation Department is to enhance the quality of life by providing and maintaining safe, available, and accessible parks and recreation services that will meet the intellectual, social cultural, and leisure needs of all residents. Department Description The Parks and Recreation Department is responsible for providing safe and accessible recreation services for all age groups. Parks and Recreation services include senior programs, adult and youth sports, pre-school programs, cultural programs, teen services, outdoor programs, special events, special interest classes, adult education classes, and after school programs. In 2002, the department also assumed the responsibility for management of the Community Center. Performance Standards • • • • Increase participation through unique marketing techniques Increase the department’s volunteer base and continue to explore and use creative methods to recognize volunteers Provide Little League Baseball, Soccer Club, Pop Warner Football and Cheerleading with assistance to help ensure the success of their respective organizations Solicit special event sponsorship by community organizations and businesses Management Indicators 2003-2004 Actual 2004-2005 Estimated 2005-2006 Projected 4 5 8 12/88 13/119 13/125 11/126 11/105 10/135 5/31 7/35 10/40 Recreation • • • • Special Events Adult and Youth Sports Activities/ Number of Courses Offered Special Interest Programs/ Number of Courses Offered Youth and Teen Programs/ Number of Courses Offered Fiscal Year 2005-2006 Budget - 107 - Town of Fountain Hills • • Youth Sports Organizations Affiliated w/ Parks and Recreation Volunteer Hours (estimated) 4 4,000 4 4,000 4 4,000 Administrative Support Youth Sports Organizations & Schools – Facility Bookings • • • • • • • Little League Baseball PONY League Baseball Soccer Club Pop Warner Football Fountain Hills High School Fountain Hills Middle School Fountain Hills Montessori School 532 89 351 108 409 14 4 524 100 365 80 390 20 15 520 110 380 85 420 20 10 Total 1,507 1,494 1,545 2003-2004 Actual 2004-2005 Estimated 2005-2006 Projected $ 125,344 $ 17,140 $ 3,850 $ 141,950 $ 16,600 $ 3,000 $ 171,500 $ 18,000 $ 3,500 $ 146,334 $ 161,550 $ 193,000 Parks and Recreation Revenue • • • Recreation Programs Facility Rentals Picnic Ramada Reservations Total Fiscal Year 2004-2005 Accomplishments • • • • • • Continued to work with the McDowell Mountain Preservation Commission regarding the design work for the planned permanent trailhead into the McDowell Mountain Preserve Continued the positive relationship between the Town and the Fountain Hills School District to jointly utilize school facilities for various programs in return for the District’s use of park facilities. Accordingly, the Intergovernmental Agreement was approved by the Town and School District and is effective until April 2007 Continued sponsorship of St. Patrick’s Day, Eggstravaganza, and the Fantastic Fall Festival events Presented a Concerts in the Park series featuring four bands in the new amphitheater at Fountain Park The Mayor’s Youth Council volunteered over 1,500 hours last year, which resulted in twenty-five members receiving the President’s Volunteer Service Award; this equates to over $7,700 in volunteer labor contributed to the community Continued to provide expanded opportunities to utilize park facilities by the local youth sports organizations, which include Little League Baseball, Soccer Club, and Pop Warner Football and Cheerleading Fiscal Year 2005-2006 Budget - 108 - Town of Fountain Hills • • • • Entered the second year of a partnership with the Phoenix Suns Jr. Suns / Jr. Mercury to enhance our Youth Basketball program Ongoing training and certification for all Parks and Recreation Staff in CPR and First Aid, as well as on the Automatic External Defibrillators Coordinated the Town’s Annual September 11th Memorial at the Community Center Coordinated with the Fountain Hills Rotary Clubs on the Groundbreaking Ceremony for the Rotary Centennial Splash Pad at Fountain Park Fiscal Year 2005-2006 Objectives • • • • • Transition Senior Services program to Town division and maintain the same level of service to the seniors Provide excellent customer service including information referral, quality programs, and easy registration Provide staff support to all events and activities scheduled at all town parks Work closely with Fountain Hills Unified School District to assist with scheduling and maintenance of facilities utilized by the Parks and Recreation department Identify new recreation and leisure education programs to be offered in 2006-2007 Recreation and Senior Services Programs FY 2002-2003 Actual FY 2003-2004 Actual FY 2004-2005 Budget FY 2004-2005 Estimate FY 2005-2006 Budget SALARIES & BENEFITS $440,348 $347,285 $379,260 $377,298 $474,780 CONTRACTUAL SERVICES $142,189 $91,266 $124,635 $99,000 $241,709 $2,866 $1,727 $2,050 $2,150 $9,650 SUPPLIES & SERVICES $18,063 $22,449 $28,800 $25,750 $45,975 CAPITAL EXPENDITURES $17,857 $0 $0 $0 $0 $621,323 $462,726 $534,745 $504,198 $772,114 REPAIRS & MAINTENANCE TOTAL EXPENDITURES Fiscal Year 2005-2006 Budget - 109 - Town of Fountain Hills Authorized Personnel Schedule of Authorized Positions Authorized FTE’s 2002-2003 2003-2004 2004-2005 Proposed 2005-2006 Parks & Recreation Position – Title Parks & Rec/Comm Ctr Dir. Parks Supervisor Recreation Supervisor Rec. Program Coordinator Groundskeeper Recreation Intern Park Operations Lead Recreation Assistant Recreation Aide Executive Assistant Administrative Assistant Receptionist 1.00 1.00 1.00 3.00 1.00 0 3.00 4.00 0 1.00 1.00 0 .50 1.00 1.00 2.00 1.00 0 2.00 4.00 0 1.00 0 .50 .50 1.00 1.00 2.00 1.00 0 2.00 4.00 1.00 1.00 0 .50 0.50 1.00 1.00 2.00 2.00 .50 3.00 4.00 1.00 1.00 0 .50 Authorized FTE 16.00 13.00 14.00 16.50 Salaries and Benefits $410,180 The recreation division is requesting restoration of the internship program that was eliminated during the FY2002-03 budget reduction program (2 interns equal to ½ time FTE). The parks division is requesting a new park operations lead for Four Peaks Neighborhood Park (described in that division budget). The internship program offers senior university students who are competing a degree in parks and recreation an opportunity to gain college credit as well as experience in their program of study. It also allows the Town of Fountain Hills to supplement recreational staff without the long-term costs of hiring full time staff. The students also bring a fresh perspective and new ideas for programs. The justification is included in Appendix A. Contract Services $150,059 Contract service includes recreation programs such as special interest programs and events, sports activities, youth and teen programs as well as the quarterly newsletter. Special programs in the amount of $60,774 includes: Concerts in the Park series $12,860 Fountain Park, splash pad, Strong Cities, Sept. 11 $22,000 supplies and instruction for art classes $10,400 adult education courses with an estimated 125 participants $2,000 adult dance class instruction $2,400 dog obedience instruction class $2,080 fitness classes instruction $2,320 hiking leader $940 language lessons instruction $1,680 bridge games $790 Fiscal Year 2005-2006 Budget - 110 - Town of Fountain Hills Tai Chi Kartchner Caverns trips $1,345 $1,960 The youth and teen programs line item of $10,940 is broken down as follows: Fantastic Fall Festival Party in the Park Unique for Youth art class supplies dance class instructor Homecoming Tailgate Party Kids Create Kiddie Rhythmics Midnight Madness support Mayor’s Youth Council supplies Youth Town Hall. $2,650 $2,050 $1,840 $580 $560 $250 $400 $600 $250 $850 $910 The sports activities line item of $52,945 is broken down as follows: youth basketball referees and supplies senior softball tournament umpires and supplies for 50 teams adult softball umpires and supplies for 40 teams turkey trot supplies with 800 participants youth and adult tennis instructors gymnastics instructor golf instructors for 140 participants adult basketball referees and supplies for 12 teams karate instructor senior softball supplies for 38 teams youth volleyball coach and supplies for 60 participants youth sports competition supplies $12,545 $8,705 $7,125 $5,705 $5,110 $4,560 $3,645 $1,250 $720 $1,335 $1,800 $445 Each program was analyzed comparing expenses, including overhead versus fees, to ensure at least a break-even program. The Town of Fountain Hills quarterly newsletter is prepared and budgeted for within the Parks and Recreation department. Each issue is 16 pages and mailed to every resident in Town at a cost of $6,000 each edition. Repairs and Maintenance $2,150 This refers to expenses relating to the department’s 15-passenger van and an administrative vehicle, as well as maintenance and repair to office equipment. Supplies and Services $35,325 This category includes advertising, conferences, continuing education, dues and publications, gas and oil, office supplies, printing, communications, travel, and uniforms. The increase in conference costs is to allow for the Director to attend the annual National Parks and Recreation Association’s Business Institute for Revenue Development and Management in Wheeling, West Virginia. Fiscal Year 2005-2006 Budget - 111 - Town of Fountain Hills The new line item appropriations for electricity and water/sewer will cover the costs of the trailhead restroom facility at Eagle’s Nest. St. Patricks Day 2005 Eggstravaganza 2005 Fiscal Year 2005-2006 Budget - 112 - Town of Fountain Hills RECREATION DIVISION FY 2002-2003 Actual SALARIES & BENEFITS: Wages FICA Unemployment Insurance Employee's Health Insurance Employee's Life Insurance Employee's Dental Insurance Employee's Eye Insurance Worker's Compensation Insurance Employee's Retirement Fund Recruitment Costs Disability Insurance TOTAL CONTRACT SERVICES Special Programs Youth and Teen Programs Sports Activities Constituent Communications McDowell Mtn Preservation TOTAL REPAIRS & MAINTENANCE: Vehicle Maintenance & Repair Office Equipment Maintenance TOTAL SUPPLIES & SERVICES: Advertising Conferences Education/Training Dues & Publications Electricity Gas & Oil Office Supplies Printing Communications Water/Sewer Travel Uniforms Bank Charges TOTAL CAPITAL EXPENDITURES Capital Outlay - Equipment TOTAL CAPITAL EXPENDITURES TOTAL EXPENDITURES FY 2003-2004 Actual FY 2004-2005 Budget FY 2004-2005 Estimate FY 2005-2006 Proposed 360,493 10,629 600 30,487 321 3,036 349 3,372 29,871 0 1,189 286,802 8,809 824 21,306 571 2,151 0 2,939 22,958 0 926 309,200 10,100 800 27,200 600 2,900 0 3,260 24,100 0 1,100 309,346 10,397 955 23,706 672 2,249 0 4,400 24,613 0 960 334,400 11,600 1,000 28,100 800 2,400 200 5,580 25,000 0 1,100 $440,348 $347,285 $379,260 $377,298 $410,180 39,686 22,267 42,559 37,104 572 18,804 6,231 40,309 25,208 713 32,995 18,950 48,690 23,000 1,000 27,500 8,000 40,000 23,000 500 60,774 10,940 52,945 24,000 1,400 $142,189 $91,266 $124,635 $99,000 $150,059 891 1,975 24 1,703 250 1,800 350 1,800 350 1,800 $2,866 $1,727 $2,050 $2,150 $2,150 811 1,115 629 1,460 0 740 5,223 2,933 2,779 0 123 2,140 111 1,213 2,847 1,910 1,400 0 548 5,893 1,002 2,651 0 347 3,156 1,482 3,300 2,400 2,900 1,200 0 1,500 7,000 2,000 2,900 0 500 3,000 2,100 3,000 3,800 1,000 1,200 0 750 5,500 2,000 2,900 0 500 3,000 2,100 3,300 5,900 2,100 1,300 4,125 800 5,900 2,000 3,500 800 500 3,000 2,100 $18,063 $22,449 $28,800 $25,750 $35,325 17,857 0 0 0 0 $17,857 $0 $0 $0 $0 $621,323 $462,726 $534,745 $504,198 $597,714 The Town Council approved a recommendation to integrate the Senior Services into the Town government during the final budget adoption in June, 2005. A division budget was estimated but the line item details will be finalized during the first half of the fiscal year. Fiscal Year 2005-2006 Budget - 113 - Town of Fountain Hills SENIOR SERVICES FY 2002-2003 Actual SALARIES & BENEFITS: Wages FICA Unemployment Insurance Worker's Compensation Insurance FY 2003-2004 Actual FY 2004-2005 Budget FY 2004-2005 Estimate FY 2005-2006 Proposed 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 59,650 4,580 140 230 $0 $0 $0 $0 $64,600 0 0 0 0 0 0 0 0 8,000 83,650 $0 $0 $0 $0 $91,650 0 0 0 0 7,500 $0 $0 $0 $0 $7,500 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1,500 550 550 250 6,000 1,100 200 500 $0 $0 $0 $0 $10,650 0 0 0 0 0 TOTAL $0 $0 $0 $0 $0 TOTAL EXPENDITURES $0 $0 $0 $0 $174,400 TOTAL CONTRACT SERVICES: Professional Fees Program Fees TOTAL REPAIRS & MAINTENANCE: Equipment Repair TOTAL SUPPLIES & SERVICES: Advertising Conferences Education/Training Dues & Publications Office Supplies Printing Communications Expense Travel TOTAL CAPITAL EXPENDITURES Capital Outlay - Improvements Fiscal Year 2005-2006 Budget - 114 - Town of Fountain Hills Parks Parks Desert Vista Neighborhood Park Four Peaks Neighborhood Park Fountain Park Four Peaks Neighborhood Park Mission Statement The park staff is dedicated to maintaining over 114 acres of park land throughout the Fountain Hills park system to department standards by professionally maintaining and operating each park’s facilities and amenities enhancing the beauty, value, quality of the park’s environment; and continuing to provide quality recreation opportunities, safe and clean parks, and superior park beautification. Park Descriptions Each of the four parks in the Town’s system is in a different stage of development based on master plans that were developed specific to each park. The Parks and Recreation Commission and Town Council have reviewed and approved these master plans, which included public input during their planning. Additionally, the Master Plans for Desert Vista Neighborhood Park, Fountain Park, and Four Peaks Neighborhood Park will be updated during this fiscal year. Desert Vista Neighborhood Park Desert Vista Neighborhood Park is an all turf 12-acre park located between Desert Vista and Tower Drives, south of Tioga Drive. The Town acquired this site on May 21, 1998, from MCO Properties, Inc. The Town, in cooperation with the Fountain Hills Sanitary District, is using the 12-acre site for effluent water disposal. However, the Town has fenced 3.5 acres that is used as an off-leash recreational facility and uses the remainder of the park for soccer and open field play. During FY04-05 a consultant and the Parks and Recreation Commission recommended this park as the location for construction of the Skate Park. Additionally, a local dog owners group, Fountain Hills “ADOG” (Association of Dog Owners) has been raising funds to contribute to the off leash recreational park in order for lights to be installed. The lighting will extend the number of hours that users will be able to utilize the park, particularly during the summer months when it cools off after sundown. The lights and installation will be partially paid for with the donation, the maintenance and electricity are included within the park’s operating budget. Fountain Park Fountain Park is a 62-acre passive recreation facility and home of the Town’s world famous fountain, which is the signature park of the community. The park was built in 1970 and includes 33 acres of turf, a 29-acre million gallon effluent lake, pump house station, dam, 18-hole disc golf course, restroom/control building, two children’s playground, three ramadas with picnic tables and grills, and two parking lots. The Town acquired the park on May 1, 1997, from MCO Fiscal Year 2005-2006 Budget - 115 - Town of Fountain Hills Properties, Inc., and approximately nine months later, the Parks and Recreation Commission developed a new park master plan. The revised plan includes approximately 7,200 linear feet of walkways complete with lighting, five picnic ramadas with tables and barbecue grills, one restroom/control building, two parking lots with over 130 parking spaces, a tot lot and a playground. Additional amenities include a veterans’ memorial and an outdoor performance pad. Several park improvement projects were made during fiscal year 2000-2001 including the replacement of the lake liner, construction and installation of injection wells, and the completion of Phase I Improvements. Four Peaks Neighborhood Park Four Peaks Neighborhood Park is a 14-acre recreation facility adjacent to Four Peaks Elementary School. The Parks and Recreation department acquired approximately 9.9 acres of land from the School District in May 2001, bringing the total acreage of the park to 14 acres. The Parks and Recreation Department has maintained this land over the last several years and will continue to maintain the property in the future. The park currently includes a lighted soccer field with seating, a multi-purpose field with lights, one Little League field, one baseball field, two lighted tennis courts, two lighted basketball courts, two children’s playgrounds, a restroom/control building, one ramada with a grill, and parking for 20 vehicles. Golden Eagle Park Golden Eagle Park is a 25-acre active recreation facility adjacent to Fountain Hills High School. The park includes four multi-purpose lighted ball fields with covered dugouts and seating for 550 spectators, four lighted tennis courts with a shaded waiting area, two lighted basketball courts with bleachers, two lighted sand volleyball courts with a shower tower, a shaded tot lot, a shaded children’s playgrounds with a shaded seat wall, a 2,500 square foot restroom/control building, three parking lots with a total of 223 parking spaces, three picnic Ramadas with grills, one pedestrian foot bridge, eight chilled drinking fountains, a horse shoe pit, two open turf areas, a large equipment storage yard, and over one mile of sidewalks and concrete pathways. Golden Eagle Park is the first park to complete all phases of capital improvements. Performance Standards Fountain Hills Park System (Fountain Park, Desert Vista Neighborhood Park, Four Peaks Neighborhood Park, and Golden Eagle Park) • Provide safe and clean facilities daily • Secure restroom/control buildings and park entry gates daily • Prepare and line all ball fields for scheduled activities • Maintain athletic facilities at standards acceptable for all scheduled sports activities • Maintain safe and beautiful green turf • Maintain an accident free work place • Provide excellent customer service Fiscal Year 2005-2006 Budget - 116 - Town of Fountain Hills Management Indicators – Parks 2003-2004 Actual 2004-2005 Estimated 2005-2006 Projected Mowing Frequency Aeration 50 weeks 4 x annually 42 weeks 2 x annually Post Emergence Spraying Pre Emergence Spraying 3 x annually 2 x annually 42 weeks 2 x annually 2 x in-house In house In house 70 75 445 1,875 2,465 78 85 465 1,880 2,508 80 90 480 1,900 2,550 Grounds Maintenance 2 x annually 2 x annually Park Facility Bookings Desert Vista Neighborhood Park Fountain Park Four Peaks Neighborhood Park Golden Eagle Park Total: Fiscal Year 2004 – 2005 Accomplishments - Parks Fountain Hills Park System • • • • • • • Maintained our high standards of maintenance for all park amenities and facilities Posted new signage throughout the park system Installed several new memorial park benches and trees at several parks Provided support services and field preparation for various Fountain Hills organizations, such as, the Chamber of Commerce, Ministerial Association, Little League, the Soccer Club, Pop Warner Football, the Senior Softball program, and the Men’s League Provided support services and field preparation to High School, Middle School, and Four Peaks Elementary School personnel and associated sports teams Upgraded turf and field conditions at all parks Completed Fountain Park Phase II Improvements that included the amphitheater, Kiwanis Ramada, a tot lot playground, and a standard size playground Desert Vista Neighborhood Park • • • • Installed three Palo Brea trees and new drip system at the Off-Leash Recreational Facility Prepared and lined the turf for soccer games and practices Backfilled low areas of the park Relocated the fence at the Off-Leash Recreational Facility to expand the passive pet area Fountain Park • • • • • Continued the St. Patrick’s Day annual tradition of dyeing the fountain green Repaired two aeration pumps for better circulation of oxygen into the fountain lake Continued to repair the irrigation system for 100% automatic clock operation Initiated soils testing throughout the park in order to improve the appearance of the turf Completed Phase II Improvements Fiscal Year 2005-2006 Budget - 117 - Town of Fountain Hills Four Peaks Neighborhood Park • • • Reconditioned the Little League field Installed new park signage Revamped the west ball field to increase field availability for youth sports Golden Eagle Park • • • • Replaced gate and isolation valves throughout the park Worked with SunRidge Canyon to repair and maintain the required level of pump pressure to ensure effective pump operations Reconditioned Field #1 with new sod and stabilizer Re-lamped ball field lighting on Field #2 Fiscal Year 2005-2006 Objectives (Parks) Fountain Hills Park System • • • • Explore opportunities for meeting the community’s expanding need for additional parks and amenities Eliminate turf weeds and weeds on dirt slopes and open areas Level low and uneven turf areas throughout each park Maintain high staff visibility and provide friendly help for park patrons Desert Vista Neighborhood Park • • • Install additional benches and trees Work with ADOG to continue safe and clean operations of the Off-Leash Recreational Facility Improve turf and field conditions at the Off-Leash Recreational Facility Fountain Park • • • • Continue to monitor the migratory bird population at the lake Major clean up of pump house building and yard to address risk management concerns Improve turf conditioning and appearance where needed Maintain irrigation clocks at a higher level to achieve better auto-run times Four Peaks Neighborhood Park • • • Meet with neighborhood watch groups to discuss issues Streamline maintenance operations as a result of staff reductions Work with Fountain Hills Little League to revamp the concession stand Golden Eagle Park • • Maintain park amenities, courts, ball fields, landscaping, and building with a high level of service Continue to provide excellent field preparation for scheduled sports activities Fiscal Year 2005-2006 Budget - 118 - Town of Fountain Hills Parks FY 2002-2003 Actual FY 2003-2004 Actual FY 2004-2005 Budget FY 2004-2005 Estimate FY 2005-2006 Budget $235,519 $206,576 $225,430 $230,482 $282,760 $0 $6,975 $18,000 $2,000 $21,000 REPAIRS & MAINTENANCE $291,005 $257,128 $313,550 $321,200 $335,600 SUPPLIES & SERVICES $178,167 $163,038 $210,115 $208,115 $221,300 $15,000 $0 $0 $0 $211,300 $719,690 $633,717 $767,095 $761,797 $1,071,960 SALARIES & BENEFITS CONTRACTUAL SERVICES CAPITAL EXPENDITURES TOTAL EXPENDITURES Salaries and Benefits $282,760 The proposed FY05-06 budget includes two additional staff for the parks, one position which was approved by the Town Council during the FY04-05 budget for Golden Eagle Park but added to the schedule of authorized positions for FY05-06. The new request is for a lead operations worker at Four Peaks Park, which was eliminated during the FY 02-03 budget cuts. Currently one staff person divides his time between Desert Vista and Fountain Park. When construction of the splash pad at Fountain Park and a skate park at Desert Vista Park is completed there will be additional maintenance and supervision required, which is more than one staff person can manage. Having an additional lead worker will allow one person to focus on Fountain Park and the new worker will divide time between Four Peaks and Desert Vista Parks. The justification for this particular position is in Appendix A. The parks system also includes a park supervisor, two parks operations supervisors, and one parks operations worker. Although the staff members are assigned to a specific park, they share responsibilities for all parks and perform their duties wherever necessary. The following is the proposed salary and benefit costs broken down by park: Desert Vista Neighborhood Park Fountain Park Four Peaks Neighborhood Park Golden Eagle Park $ 0 $ 61,900 $ 14,340* $206,520 *hired in fourth quarter of FY05-06 Contract Services $21,000 There are plans to update the Park Master Plans for all parks (except Golden Eagle Park) to revise the plans to reflect the park elements that have changed (for example, the skate park at Desert Vista). The following is a breakdown by department of the associated costs: Desert Vista Neighborhood Park Four Peaks Neighborhood Park Fountain Park $6,000 $6,000 $9,000 Fiscal Year 2005-2006 Budget - 119 - Town of Fountain Hills Repairs and Maintenance $335,600 These expenses relate to the daily maintenance of the park, as well as renting power tools and small equipment to perform park maintenance repairs. The major component to this category is the Annual Landscape Contract, which accounts for most of the expenditures for this category. The Annual Landscape Contract was re-bid during fiscal year 2004-2005 and will be renewed on an annual basis for up to four additional years. We are in the first year of renewal for the Annual Landscape Contract. However, with the completion of the Fountain Park Phase II Improvements, Landscaping Section will require a modest increase in the Annual Landscape Contract. Additionally, the annual landscape contract is adjusted annually to include the Consumer Price Index increase. Desert Vista Neighborhood Park Total: Fountain Park Total: Four Peaks Neighborhood Park Total: Golden Eagle Park Total: $ 42,600 $138,000 $ 62,000 $ 93,000 Desert Vista Neighborhood Park has $42,600 budgeted for repairs and maintenance, primarily mowing and landscaping work in the amount of $31,600. This line item consists of mowing 42 times, equaling $18,500; irrigation technician at $2,000; herbicide spraying at $2,100, and overseeding the park at $9,000. The remaining $11,000 is for field preparation at $10,000 and rentals of equipment at $1,000. Fountain Park’s budget of $138,000 for repairs and maintenance consists of equipment repairs at $10,000 to replace or repair valves on the “world famous” fountain. Field and park maintenance line item at $48,500 consists of liquid fertilizer $5,000, acid supplies $5,000, granular fertilizer $11,000, irrigation repairs $6,000, hydroseeding $5,000, concrete pads $2,000, trees $2,500, memorial benches $5,000, a new aluminum flat bottom boat with electric motor $4,000, water fowl removal $3,000, and $2,000 for vehicle maintenance and repairs. Also included is $9,000 for building repairs, and $500 for rentals. Fountain Park’s mowing and landscaping line item of $68,000 breaks down as follows: Mowing 42 times at $23,000; landscape maintenance $5,000; irrigation tech $3,000; pesticide spraying $5,000; tree trimming $6,000; and over-seeding and scalping at $26,000. Four Peaks Neighborhood Park budget of $62,000 consists mainly of two line items, $24,000 for field preparation and $20,000 for mowing and landscape maintenance. The $25,000 field preparation consists of $5,000 for lighting repairs, $2,000 stabilizer and paint, $3,000 fertilizer, $2,000 irrigation repairs, $1,000 herbicides, $2,000 Rye and Bermuda seed, windscreens $8,000. The mowing and landscaping $20,000 line item breaks down as 42 mows, totaling $11,000; $1,600 for tree trimming, $1,000 for mulch, and $4,000 for over-seeding. Also included is $20,500 for building repairs (includes costs associated with wrought iron fence on the north soccer field, a shade structure at the tennis courts, and bench as the tennis courts), $500 for equipment rentals, and $1,000 for vehicle maintenance/repairs. Golden Eagle Park’s request of $93,000 consists of $24,500 for building repairs and maintenance which includes $6,300 for fence repairs, $7,000 to resurface the basketball courts, $3,700 for HVAC repairs, $4,500 to slurry seal and stripe the parking lots, $3,000 for a water feature. Fiscal Year 2005-2006 Budget - 120 - Town of Fountain Hills $30,000 is budgeted under line item “Field Preparation and Maintenance”, as follows: $3,000 for stabilizer, $7,000 lighting repairs, $5,000 fertilizer, $2,000 mulch, $4,000 irrigation, $2,500 chemicals, $3,000 rye seed, $3,500 for field marking paint. While $26,000 is budgeted under “Mowing and Landscape Maintenance” as follows: $13,000 for 42 mowings, $8,000 for trimming, $2,000 irrigation laborer, and $3,000 for scalping. $11,000 is for vehicle maintenance/repairs, and $1,500 for equipment rentals. Supplies and Services $221,300 Expenses in this category pertain to the daily operations of the park and include costs for electricity, water, sewer, trash pick-up, associated operational signage, and miscellaneous tools and supplies. The major portion of this category consists of the electricity required to operate the fountain pumps. Also included are expenditures associated with continuing education and conferences for park staff to keep current with certifications. Desert Vista Neighborhood Park Total: Fountain Park Total: Four Peaks Neighborhood Park Total: Golden Eagle Park Total: $ 6,650 $123,800 $ 37,050 $ 53,800 Fountain Park includes supplies and services of $123,800, which includes $104,000 for electricity to operate the fountain pumps, ramadas, parking lot lights, and control building. The remaining $19,800 includes $14,500 for water and sewer, $1,700 for gas and oil, and all other associated line items equal $1,000 or less. Four Peaks Neighborhood Park supplies and services costs of $37,050 include electricity at $14,000 for lights, and water and sewer costs $20,000 for irrigation. Golden Eagle Park costs of $53,800 include electricity at $32,000 for lighting the ball fields, tennis courts, parking lots, area lighting, and the control building. The remaining $23,800 is accounted for in line items for gas and oil at $4,500, tools and shop supplies at $2,200, water and sewer at $7,900, uniforms at $3,200, and communication expense at $1,300. All other associated line items equal $1,000 or less. Capital Improvement Projects $211,300 Each park budget includes a request for capital expenditures, which are also included in the Five Year Capital Improvement Plan. The specific park and project are as follows: Desert Vista Neighborhood Park off leash recreational area (net cost $32,000 with donation from ADOG for lighting) Fountain Park splash pad sidewalk, landscaping, irrigation Four Peaks Neighborhood Park (field and concession stand upgrades for ADA) Golden Eagle Park (Department of Justice ADA compliance repairs) Fiscal Year 2005-2006 Budget - 121 - $ 52,000 $ 30,000 $106,000 $ 43,300 Town of Fountain Hills DESERT VISTA PARK FY 2002-2003 Actual FY 2003-2004 Actual FY 2004-2005 Budget FY 2004-2005 Estimate FY 2005-2006 Proposed CONTRACT SERVICES: Engineering/Design Fees 0 0 6,000 0 6,000 TOTAL 0 0 6,000 0 6,000 54 4,740 32,614 1,782 9,036 24,145 1,200 10,800 30,000 600 9,800 29,000 1,000 10,000 31,600 $37,408 $34,963 $42,000 $39,400 $42,600 0 3,851 392 490 0 2,279 116 546 300 4,000 250 600 200 3,000 150 600 200 5,300 250 900 $4,734 $2,941 $5,150 $3,950 $6,650 0 0 0 0 32,000 $0 $0 $0 $0 $32,000 $42,142 $37,904 $53,150 $43,350 $87,250 REPAIRS & MAINTENANCE: Equipment Rental Field Preparation/Maintenance Mowing/Landscape Maintenance TOTAL SUPPLIES & SERVICES: Advertising Electricity Tools/Shop Supplies Water/Sewer TOTAL CAPITAL EXPENDITURES Capital Outlay - Park Improvements TOTAL TOTAL EXPENDITURES Fiscal Year 2005-2006 Budget - 122 - Town of Fountain Hills FOUNTAIN PARK FY 2002-2003 Actual SALARIES & BENEFITS: Wages FICA Unemployment Insurance Employee's Health Insurance Employee's Life Insurance Employee's Dental Insurance Employee's Eye Insurance Worker's Compensation Insurance Employee's Retirement Fund Disability Insurance TOTAL CONTRACT SERVICES: Consultant Fees TOTAL FY 2003-2004 Actual FY 2004-2005 Budget FY 2004-2005 Estimate FY 2005-2006 Proposed 37,981 495 39 7,011 53 883 64 1,025 4,801 143 38,941 504 55 7,250 117 934 0 1,175 4,284 167 42,600 630 50 8,490 130 980 0 1,450 4,690 200 39,866 578 71 8,074 126 971 0 1,858 4,385 186 43,300 640 70 9,460 150 1,060 70 2,160 4,770 220 $52,495 $53,426 $59,220 $56,115 $61,900 0 6,975 6,000 2,000 9,000 $0 $6,975 $6,000 $2,000 $9,000 357 199 3,026 25,199 38,928 67,439 1,599 48 8,367 3,824 25,253 62,006 1,200 500 6,000 12,000 49,950 67,000 2,700 250 6,000 10,000 49,950 67,000 2,000 500 9,000 10,000 48,500 68,000 $135,149 $101,096 $136,650 $135,900 $138,000 0 75 80 145 74,365 1,286 303 1,058 195 500 7,416 0 788 623 0 130 120 66,225 1,510 6 1,103 3 526 8,643 0 835 500 240 600 100 104,000 1,700 200 500 300 600 8,700 0 900 400 240 450 100 101,000 1,300 200 1,500 100 350 12,000 0 900 0 250 500 100 104,000 1,700 200 1,000 300 350 14,500 0 900 $86,211 $79,725 $118,340 $118,540 $123,800 REPAIRS & MAINTENANCE: Vehicle Maintenance/Repair Equipment Rental Building Repairs/Maintenance Equipment Repair Field and Park Maintenance Mowing/Landscape Maintenance TOTAL SUPPLIES & SERVICES: Advertising Conferences Education/Training Dues & Publications Electricity Gas and Oil Office Supplies Tools, Shop Supplies Printing Communications Expense Water Travel Uniforms TOTAL CAPITAL EXPENDITURES Capital Outlay - Improvements TOTAL TOTAL EXPENDITURES 15,000 0 0 0 30,000 $15,000 $0 $0 $0 $30,000 $288,855 $241,222 $320,210 $312,555 $362,700 Fiscal Year 2005-2006 Budget - 123 - Town of Fountain Hills FOUR PEAKS NEIGHBORHOOD PARK FY 2002-2003 Actual SALARIES & BENEFITS: Wages FICA Unemployment Insurance Employee's Health Insurance Employee's Life Insurance Employee's Dental Insurance Employee's Eye Insurance Worker's Compensation Insurance Employee's Retirement Fund Disability Insurance FY 2003-2004 Actual FY 2004-2005 Budget FY 2004-2005 Estimate FY 2005-2006 Proposed 25,016 863 74 4,113 26 391 74 530 1,821 75 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 9,800 160 70 2,370 30 270 20 490 1,080 50 $32,984 $0 $0 $0 $14,340 CONTRACT SERVICES: Engineering/Design Fees 0 0 6,000 0 6,000 TOTAL 0 0 6,000 0 6,000 1,277 108 5,024 16,318 18,437 305 33 4,755 14,360 17,872 1,000 700 5,000 16,000 16,800 1,400 100 17,000 12,000 16,800 1,000 500 16,500 24,000 20,000 $41,164 $37,325 $39,500 $47,300 $62,000 0 75 0 70 14,341 570 151 979 0 313 18,775 0 938 0 0 440 0 11,258 321 0 598 0 0 16,602 0 0 100 0 0 0 14,000 300 0 700 0 0 19,300 0 0 150 0 0 0 13,200 600 0 900 0 0 18,400 0 0 800 0 200 100 14,000 600 100 700 100 100 20,000 0 350 $36,212 $29,219 $34,400 $33,250 $37,050 0 0 0 0 106,000 TOTAL REPAIRS & MAINTENANCE: Vehicle Maintenance/Repair Equipment Rental Building Repairs/Maintenance Field Preparation/Maintenance Mowing/Landscape Maintenance TOTAL SUPPLIES & SERVICES: Advertising Conferences Education/Training Dues and Publications Electricity Gas and Oil Office Supplies Tools, Shop Supplies Printing Communication Expense Water/Sewer Travel Uniforms TOTAL CAPITAL EXPENDITURES Park Improvements TOTAL TOTAL EXPENDITURES $0 $0 $0 $0 $106,000 $110,359 $66,544 $79,900 $80,550 $225,390 Fiscal Year 2005-2006 Budget - 124 - Town of Fountain Hills GOLDEN EAGLE PARK FY 2002-2003 Actual SALARIES & BENEFITS: Wages FICA Unemployment Insurance Employee's Health Insurance Employee's Life Insurance Employee's Dental Insurance Employee's Eye Insurance Worker's Compensation Insurance Employee's Retirement Fund Disability Insurance TOTAL FY 2003-2004 Actual FY 2004-2005 Budget FY 2004-2005 Estimate 132,407 1,920 264 16,400 415 2,000 0 5,787 14,565 609 FY 2005-2006 Proposed 113,610 1,567 118 16,521 158 1,686 168 3,231 12,497 484 117,699 1,632 161 14,501 346 1,782 0 3,553 12,939 538 126,100 1,850 140 16,980 400 1,880 0 4,380 13,870 610 156,000 2,290 260 18,920 530 2,510 120 7,950 17,160 780 $150,040 $153,149 $166,210 $174,367 $206,520 9,502 830 19,350 23,482 24,120 7,106 991 19,527 31,465 24,656 9,000 1,100 31,200 30,100 24,000 8,000 1,600 37,000 30,000 22,000 11,000 1,500 24,500 30,000 26,000 $77,284 $83,745 $95,400 $98,600 $93,000 0 180 240 385 35,233 3,461 198 1,865 135 1,509 5,236 0 2,567 0 173 904 310 32,635 4,366 0 2,853 0 1,528 6,237 0 2,146 300 800 900 250 31,500 4,500 175 1,800 0 1,700 7,800 0 2,500 300 800 1,100 300 31,500 4,500 75 2,200 0 1,000 7,400 0 3,200 100 1,100 1,000 300 32,000 4,500 100 2,200 100 1,300 7,900 0 3,200 $51,009 $51,151 $52,225 $52,375 $53,800 0 0 0 0 0 0 0 0 0 43,300 $0 $0 $0 $0 $43,300 $278,334 $288,046 $313,835 $325,342 $396,620 REPAIRS & MAINTENANCE: Vehicle Maintenance/Repair Equipment Rental Building Repairs/Maintenance Field Preparation/Maintenance Mowing/Landscape Maintenance TOTAL SUPPLIES & SERVICES: Advertising Conferences Education/Training Dues and Publications Electricity Gas and Oil Office Supplies Tools, Shop Supplies Printing Communication Expense Water/Sewer Travel Uniforms TOTAL CAPITAL EXPENDITURES Park Equipment Park Improvements TOTAL TOTAL EXPENDITURES Fiscal Year 2005-2006 Budget - 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Fiscal Year 2005-2006 Budget - 126 - Town of Fountain Hills Community Center Parks and Recreation Community Center Mission Statement Like the trademark fountain that stands at the heart of the community, so too does the Community Center. Its mission is to enhance the quality of life for Fountain Hills’ citizens by providing a gathering place for civic, non-profit and community events, promoting the arts, and developing a conference and convention trade. The Community Center shall be “All that is Fountain Hills”. Department Description The Fountain Hills Community Center provides rental space for recreational, civic, senior activities, educational, commercial, and personal events that require meeting, banquet, seminar, classroom or exhibit space. The Center staff works with clients to ensure that meeting rooms and other areas are clean, properly set, and prepared for their use. License agreements ensure that users comply with the policies and procedures as adopted by the Town. Goals and Objectives The Fountain Hills Community Center is dedicated to service the residents and community groups of Fountain Hills in the manner and spirit established by the former Community Center. A variety of amenities and spaces combined with a very affordable rate structure provide residents with increased opportunities for personal and local non-profit use. The Center will continue to make community and resident usage a number one priority. Additionally, the department will incorporate the following goals and objectives previously established: maintain a safe and accessible facility satisfy client’s requirements maximize facility usage bring additional revenues into Fountain Hills The Center will provide a positive economic stimulus to the Town by scheduling and booking as many outside groups as possible while continuing to meet the needs of the Fountain Hills community. Fiscal Year 2005-2006 Budget - 127 - Town of Fountain Hills Performance Standards • • • • • The Center shall meet with clients, obtain all necessary event information, discuss rental fees and obtain a signed license agreement within ten working days Clients shall be furnished a detailed scale drawing of their event showing the set. The drawing requires client approval before the event set-up begins All events shall be properly supervised with Center personnel readily available to assist with clients’ needs Outstanding billings for events are to be processed in a prompt manner within ten days of the events Continue to coordinate activities for the Senior Activity Center, Recreation Division, and Town related functions and activities Management Indicators Events/Activities Attendance Revenues 2003-2004 Actual 2004-2005 Estimated 2005-2006 Projected 1,800 76,500 $195,000 3,864 93,000 $194,000 4,250 102,300 $213,675 Fiscal year 2004-2005 Accomplishments The Fountain Hills Community Center has accomplished the following: • utilized volunteer staff that not only oversees the front desk but also has creates several community activities: the Holiday Celebration and tree decorating, “Munch and Music”, “Summer Serendipity”, and entered the Chamber of Commerce Thanksgiving Day Parade • Completed several maintenance upgrades to the building in accordance with the Department of Justice’s ADA compliance recommendations • Successfully transitioned the Senior Activity Center from Town Hall to the Community Center • Redesigned a logo for the Community Center that was used on business cards, letterhead, envelopes, brochures, and flyers • Added an extra storage area in the gated parking area Fiscal Year 2005-2006 Objectives • • Continue serving as the location of choice for many service club meetings, civic functions, and major community social, fundraising, and Chamber events The Center is working on making the facility one of the premier wedding destinations in the valley by exposing the public to a facility through a marketing campaign that includes bridal exhibitions and trade shows, hosting bridal consultant meetings, and other venues Fiscal Year 2005-2006 Budget - 128 - Town of Fountain Hills • • • Change the existing booking system to a more effective system that will save time and allow staff to focus more energy on creating in-house events with more of a focus on customer service and help to cut operational costs Work with Town staff, the Cultural Council, and an architectural firm to finish off the Plaza Circle making it an extension of the Center in order to enhance its use for special events. This will allow us to generate additional revenues for the Center Extend liquor license to include the Courtyard area Salaries and Benefits $357,324 Included within the Community Center budget is a request to reclassify one of the part-time Operations Workers to full-time. At the beginning of FY04-05 the Fountain Hills Senior Center relocated to the Community Center providing a first class facility to run senior programs. The senior programs run five days a week and each program requires setting up and taking down of equipment such as tables, chairs, video and audio equipment, etc. which has increased staff time by 33%. The senior programs require approximately 8 hours of set up and take down time during the daytime hours, which requires approximately 40 hours per week for one person. This is in addition to the set ups and take downs required for the groups and organizations that rent the facility on a regular basis. Additionally, one of the Operations Workers transferred to the Parks system, creating an open part-time position. Staff did not fill the position but instead reorganized the existing staff hours to eliminate the need to hire a new employee; this resulted in increased hours for the existing parttime Operations Worker. The justification for reclassifying this position is included in Appendix A. Contract Services $550 Contract services include costs associated with event security; including $550 to contract with the Maricopa County Sheriffs Office to provide security at Community Center events where liquor is served. Repairs and Maintenance $16,300 This category includes the costs for normal repair and maintenance of the facility, equipment rental such as sound or lighting systems, and normal office equipment repair and maintenance. Though certain pieces of equipment are under warranty, it is anticipated that some repairs will be required. Supplies and Services $110,650 This category includes the Center printing budget, which is used for all brochures, flyers, promotional, and trade show materials. Also included are office supplies for daily operations, dues and publications, and conferences. The largest line item in this category is electricity at $56,650 to run the building. Liquor sales are also a significant part of the overall revenues and supplies costs at $14,300. The Center’s margins are lower than private commercial centers allowing lower prices to be charged. This is an advantage in holding major events at the Center. Lastly, supplies and materials for outreach programs are also included under the office supply line item. These programs include the Homecoming Celebration, Holiday Party, Summer Serendipity, and the Spring Volunteer Reception. Fiscal Year 2005-2006 Budget - 129 - Town of Fountain Hills Capital Outlay/Debt Service New to this division’s budget is the annual debt service payment for the Municipal Property Corporation bonds that were sold in 2000 to finance the cost of the Community Center. In prior years the debt payment was made from residual bond proceeds. Fountain Hills Community Center Summary Expenditures – Community Center FY 2002-2003 Actual FY 2003-2004 Actual FY 2004-2005 Budget FY 2004-2005 Estimate FY 2005-2006 Budget $287,858 $272,451 $321,017 $318,246 $357,324 CONTRACTUAL SERVICES $1,040 $1,180 $550 $500 $550 REPAIRS & MAINTENANCE $10,637 $11,807 $11,900 $16,500 $16,300 SUPPLIES & SERVICES $85,902 $98,141 $102,530 $101,950 $110,650 $0 $0 $0 $0 $387,000 $385,437 $383,579 $435,997 $437,196 $871,824 SALARIES & BENEFITS CAPITAL EXPENDITURES TOTAL EXPENDITURES Authorized Personnel Schedule of Authorized Positions Authorized FTE’s 2002-2003 2003-2004 2004-2005 Proposed 2005-2006 Community Center Parks & Rec/Comm Ctr Dir. Comm Ctr Supervisor Comm Ctr Operations Sup. Administrative Assistant Operations Support Worker Operations Support Assistant Custodian Volunteer Coordinator 1.00 1.00 1.00 1.00 1.00 0 1.00 .50 .50 1.00 1.00 1.00 1.50 0 1.00 0.50 .50 1.00 1.00 1.00 1.50 0 1.00 0.50 0.50 1.00 1.00 1.00 1.50 .50 1.00 0.50 Authorized FTE 6.50 6.50 6.50 7.00 Fiscal Year 2005-2006 Budget - 130 - Town of Fountain Hills COMMUNITY CENTER FY 2002-2003 Actual FY 2003-2004 Actual FY 2004-2005 Budget FY 2004-2005 Estimate FY 2005-2006 Proposed SALARIES & BENEFITS Wages FICA Unemployment Insurance Employee's Health Insurance Employee's Life Insurance Employee's Dental Insurance Employee's Eye Insurance Worker's Compensation Insurance Employee's Retirement Fund Recruitment Costs Disability Insurance Bartender Services 238,347 9,061 496 12,722 176 1,375 153 1,593 16,282 0 609 7,046 229,452 8,490 544 12,543 435 1,467 0 1,638 16,145 0 660 1,076 263,488 9,980 639 14,858 447 1,565 0 5,120 18,129 0 791 6,000 257,752 9,654 663 15,344 490 1,602 0 3,773 22,921 0 747 5,300 279,323 9,430 823 28,623 652 3,007 188 7,062 21,252 0 966 6,000 TOTAL 287,858 272,451 321,017 318,246 357,324 1,040 1,180 550 500 550 $1,040 $1,180 $550 $500 $550 9,572 1,065 10,378 1,429 10,700 1,200 15,000 1,500 15,000 1,300 $10,637 $11,807 $11,900 $16,500 $16,300 3,173 0 450 1,795 43,449 7,638 20,727 351 1,031 7,017 189 0 82 10,356 0 105 924 53,440 5,878 12,543 2,487 1,383 8,623 0 1,065 1,336 9,680 400 500 650 55,000 7,000 14,000 1,500 1,300 9,800 200 800 1,700 9,600 1,400 500 800 55,000 5,700 15,000 1,500 1,300 8,500 50 800 1,800 15,200 1,650 600 800 56,650 6,300 14,300 1,500 1,350 9,000 200 900 2,200 $85,902 $98,141 $102,530 $101,950 $110,650 0 0 0 0 0 0 0 0 0 387,000 $0 $0 $0 $0 $387,000 $385,437 $383,579 $435,997 $437,196 $871,824 CONTRACT SERVICES Professional Services TOTAL REPAIRS & MAINTENANCE: Building Repairs & Maintenance Office Repairs/Maintenance TOTAL SUPPLIES & SERVICES: Advertising Conferences Education/Training Dues/Publications Electricity Office Supplies Bar Supplies Printing Communications Expense Water/Sewer Travel Uniforms Bank Charges TOTAL CAPITAL EXPENDITURES Capital - Furniture/Equipment Debt Service TOTAL TOTAL EXPENDITURES Fiscal Year 2005-2006 Budget - 131 - Town of Fountain Hills This page left intentionally blank. Fiscal Year 2005-2006 Budget - 132 - Town of Fountain Hills Public Safety Law Enforcement Fire Department Town of Fountain Hills Fiscal Year 2005-2006 Budget Town of Fountain Hills Law Enforcement Public Safety Fire Department Law Enforcement Mission Statement The Maricopa County Sheriff's Office, in partnership with our citizens and contract cities, will enforce state laws, deter criminal activity, protect life and property, maintain order, and operate a safe, constitutional jail system. Through innovative leadership and dedication to providing quality services, the Sheriff's Office will maximize the use of its resources to provide the highest quality service, which will aid in improving the quality of life for the citizens of Maricopa County. The office is also dedicated to providing a caring and supportive environment for our employees because they are the backbone of the system and have a need for continued growth and development through education and training. Each employee will have opportunities for career development, professional growth, and a challenging work environment. Employee creativity and innovations are encouraged for improving the effectiveness of the Office. Employees will be provided the same concern, respect, and caring attitude within the Office, that they are expected to share when contacting the citizens of Maricopa County Department Description Law enforcement services are provided to our residents through contract services from the Maricopa County Sheriff’s Office (MCSO). The office enforces State and local laws as well as addressing “quality of life” issues such as crime prevention, traffic safety, drug enforcement, youth services, special events, barking dogs, and community services. Performance Standards ▬▬▬▬▬▬ • • • • All department members will support the principles of community based policing The public will be treated with courtesy and respect by all members of the Sheriff’s Office Members of the Sheriff’s Office will not engage in racial profiling All certified personnel will meet, or exceed, state training standards (AZ-POST) as a means of reducing liability Fiscal Year 2005-2006 Budget - 133 - Town of Fountain Hills Management Indicators 2002 Actual 2003 Actual 2004 Actual 443 410 212 46 387 713 233 60 594 618 347 63 Crimes Part I* Crimes Part II** Traffic accidents Driving under the influence (DUI) *Part I Crimes – Homicide, Sex Assault, Robbery, Aggravated Assault, Residential/Business Burglaries, Auto Burglaries, Auto Theft, Theft, Arson. **Part II Crimes – All other crimes, except Part I crimes and traffic violations. Fiscal Year 2004-2005 Accomplishments ▬▬▬▬▬▬ In the first nine months of the fiscal year, the Maricopa County Sheriff’s Office accomplished the following: • • • • Introduced new youth service activity in conjunction with the Boys & Girls Club of Fountain Hills Smart Program Friday nights Sponsor and present a wide variety of youth service activities including Stranger-Danger, Teen Court, youth camp and Midnight Madness Promoted crime prevention through a wide variety of community programs including public service articles on crime resistance techniques, vacation watches, and bicycle patrols Continued several new programs including VIN etching, Watch Your Car Program, and the RUOK (elderly welfare check system) Fiscal Year 2005-2006 Objectives ▬▬▬▬▬▬ • • • • • • Decrease the number of Part I Crimes by increasing patrol coverage during peak times of occurrence with both marked patrol vehicles and unmarked vehicles as necessary Increase traffic enforcement and awareness with higher visibility during peak traffic times to reduce traffic accidents Promote public visibility, accessibility, and community relations through clearly marked cars and high profile uniformed personnel The primary objective of the Maricopa County Sheriff’s Office for this upcoming fiscal year is to continue to provide the Town with quality law enforcement services at an affordable price Continue to promote effective communications between the Town and Sheriff’s Office Sponsor, participate or present youth oriented community service programs during the upcoming fiscal year including, but not limited to, bike safety inspections and registration, and child restraint inspections Fiscal Year 2005-2006 Budget - 134 - Town of Fountain Hills Summary Expenditures – Law Enforcement FY 2002-2003 Actual FY 2003-2004 Actual FY 2004-2005 Budget FY 2004-2005 Estimate FY 2005-2006 Budget $896,570 $36,757 $0 $0 $0 $1,499,336 $1,669,726 $1,796,670 $1,796,186 $1,903,894 $7,193 $287 $0 $0 $0 SUPPLIES & SERVICES $37,239 $1,282 $0 $0 $0 CAPITAL EXPENDITURES $36,994 $0 $0 $0 $0 $2,477,332 $1,708,052 $1,796,670 $1,796,186 $1,903,894 SALARIES & BENEFITS CONTRACTUAL SERVICES REPAIRS & MAINTENANCE TOTAL EXPENDITURES Authorized Personnel Authorized FTE’s 2002-2003 2003-2004 2004-2005 Proposed 2005-2006 Law Enforcement Pub. Safety Dir/Town Marshal Emergency Mgmt Coordinator Sergeant Deputy Marshal Dispatcher Administrative Assistant 1.00 0 3.00 8.00 7.00 1.00 0 1.00 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Authorized FTE 20.00 1.00 0 0 Contract Services $1,903,894 The Town of Fountain Hills contracts with the Maricopa County Sheriff’s Office for law enforcement services. The contract amount is $1,835,044, or an increase of 6% over the previous fiscal year. This contract provides for 25 law enforcement officers for the Town of Fountain Hills (3.5 beats) at a ratio of more than one officer per 1,000 residents and provides for a school resource officer requested by the Fountain Hills School District. The Town’s cost for law enforcement services has dropped significantly (23% or over $573,400) since FY02-03 and excellent service levels have been maintained. In a separate agreement with Maricopa County Office of Management and Budget, prisoners are transported to the Maricopa County jail and the Town is charged a per diem fee, estimated at $36,575. The Town also contracts with Maricopa County Animal Care and Control Services for animal control and shelter services in the amount of $32,275. Fiscal Year 2005-2006 Budget - 135 - Town of Fountain Hills LAW ENFORCEMENT FY 2002-2003 Actual FY 2003-2004 Actual FY 2004-2005 Budget FY 2004-2005 Estimate FY 2005-2006 Proposed SALARIES & BENEFITS: TOTAL $896,570 $36,757 $0 $0 $0 CONTRACT SERVICES Jail/Prisoner Fees Rabies/Animal Control Sheriff's Contract 36,930 0 1,462,406 38,896 32,442 1,598,388 38,000 28,200 1,730,470 35,000 30,716 1,730,470 36,575 32,275 1,835,044 $1,499,336 $1,669,726 $1,796,670 $1,796,186 $1,903,894 $7,193 $287 $0 $0 $0 $37,239 $1,282 $0 $0 $0 $36,994 $0 $0 $0 $0 $2,477,332 $1,708,052 $1,796,670 $1,796,186 $1,903,894 TOTAL REPAIRS & MAINTENANCE: TOTAL SUPPLIES & SERVICES: TOTAL CAPITAL EXPENDITURES TOTAL CAPITAL EXPENDITURES TOTAL EXPENDITURES Fiscal Year 2005-2006 Budget - 136 - Town of Fountain Hills Fire Department Fire Department Emergency Medical Fire Protection Mission Statement The mission of the Fire department is to preserve life and property through fire prevention, education, suppression, and emergency medical services, while maintaining the highest level of training, professionalism, and dedication to customer service. Department Description Fire fighting and emergency medical services are provided to the residents through a unique combination of municipally owned equipment and facilities operated by contract personnel from the Rural Metro Corporation. The fire department is responsible for prevention and suppression of structural and wild land fires within the town limits. The fire department also provides inspections, emergency medical services, emergency transport, hazardous material handling, and takes the lead role in emergency response to natural disasters. In conjunction with its primary role, the fire department provides a wide range of auxiliary community services such as public education, snake removal, a fire support program, and a youth-oriented explorer post. Performance Standards • • • Response time of 5 minutes or less to the scene of fire and medical calls at least 90% of the time. Provide a minimum of 240 hours of training to each individual assigned to Fountain Hills per year. Inspect and test all fire hydrants in Fountain Hills on an annual basis. Fiscal Year 2005-2006 Budget - 137 - Town of Fountain Hills Management Indicators ▬▬▬▬▬▬ Emergency response time EMS response time Percentage of EMS calls Emergency calls Non-emergency service call Construction inspections/ safety surveys FY 2002-2003 Actual FY 2003-2004 Actual FY 2004-2005 Projected FY2005-06 Projected 2min 46sec 2min 38sec 48% 1,367 1,318 3min 33 sec 3min 28 sec 53% 1,494 1,343 3min 30 sec 3min 35 sec 54% 1,470 1,290 4 min 4 min 53% 1,480 1,300 1,682 1,556 1,530 1,500 Fiscal Year 2004-2005 Accomplishments • • • Assisted the Town Manager in preparing mutual aid agreements with neighboring communities. Completed the upgrades of the self-contained breathing apparatus to meet the new National Fire Protection Association (NFPA) standards. Maintained a response goal of less then four minutes for all emergency calls. Fiscal Year 2004-2005 Objectives • • • Assist Facilities Maintenance with the remodel and ADA upgrades to both fire stations. Begin to prepare a Hazard Risk Assessment analysis. Maintain or improve upon a 4-minute response time for all emergency calls. Summary Expenditures – Fire Department FY 2002-2003 Actual FY 2003-2004 Actual FY 2004-2005 Budget FY 2004-2005 Estimate FY 2005-2006 Budget $0 $0 $0 $0 $0 $2,275,672 $2,283,480 $2,395,131 $2,395,131 $2,615,988 REPAIRS & MAINTENANCE $24,513 $34,022 $31,500 $31,500 $33,700 SUPPLIES & SERVICES $24,749 $24,910 $55,120 $47,100 $48,905 $0 $0 $0 $0 $0 $2,324,935 $2,342,412 $2,481,751 $2,473,731 $2,698,593 SALARIES & BENEFITS CONTRACTUAL SERVICES CAPITAL EXPENDITURES TOTAL EXPENDITURES Fiscal Year 2005-2006 Budget - 138 - Town of Fountain Hills Contract Services $2,615,988 This represents the amount of the Town’s fire protection and emergency medical services contract with Rural Metro Corporation. Repairs and Maintenance $33,700 This refers to expenses relating to the department’s fleet of fire equipment for field operations as well as maintenance and repair of office equipment for administrative activities. Fleet expenses include tires, brakes, batteries, and vehicle parts essential to keeping equipment in operating order. Office equipment includes service contracts on existing copiers, printers, and computer equipment. Tires are budgeted at $8,500, repairs at $24,200, and $1,000 for miscellaneous expenses. Supplies and Services $48,905 Expenses in this category pertain to daily operations of the department and range from fuel costs to fire fighting tools, office supplies, specialized training, printing, and publications. Items in this category are outside of the parameters of the Rural Metro contract and represent expenses specifically for Fountain Hills. Gas is the largest line item within this category at $33,420. An amount of $13,525 for fire fighting equipment will be purchased by the Town, including a gas detector unit ($3,500), Holmatro upgrades, $2,300 for hose, and $2,450 for nozzles. Fiscal Year 2005-2006 Budget - 139 - Town of Fountain Hills FIRE DEPARTMENT FY 2002-2003 Actual CONTRACT SERVICES Rural Metro Contract TOTAL REPAIRS & MAINTENANCE: Vehicle Repairs & Maintenance Office Equipment Repairs/Maintenance TOTAL SUPPLIES & SERVICES: Dues & Publications Gas & Oil Office Supplies Fire Fighting Equipment Printing TOTAL TOTAL EXPENDITURES FY 2003-2004 Actual FY 2004-2005 Budget FY 2004-2005 Estimate FY 2005-2006 Proposed 2,275,672 2,283,480 2,395,131 2,395,131 2,615,988 $2,275,672 $2,283,480 $2,395,131 $2,395,131 $2,615,988 24,513 0 34,022 0 31,500 0 31,500 0 33,700 $24,513 $34,022 $31,500 $31,500 $33,700 563 15,245 8,942 0 0 620 18,990 400 4,900 0 700 33,520 1,900 18,500 500 700 26,000 1,900 18,500 0 760 33,420 700 13,525 500 $24,749 $24,910 $55,120 $47,100 $48,905 $2,324,935 $2,342,412 $2,481,751 $2,473,731 $2,698,593 Fiscal Year 2005-2006 Budget - 140 - Town of Fountain Hills Municipal Court Town of Fountain Hills Fiscal Year 2005-2006 Budget Town of Fountain Hills Municipal Court Municipal Court Misdemeanor and Traffic Violations Domestic Violence Orders Local Juvenile Violations Mission Statement ▬▬▬▬▬▬ The Fountain Hills Municipal Court is committed to professionally serving the citizens of Fountain Hills by administering justice in a fair, efficient, and respectful manner, so as to enhance public trust and community confidence in our court system. Department Description ▬▬▬▬▬▬ The Fountain Hills Municipal Court is the judicial branch of the Fountain Hills government. The court has jurisdiction over civil traffic, criminal traffic, and criminal misdemeanor offenses and violations of our town codes and ordinances. The Municipal Court judge also presides over some juvenile violations and has authority to issue search warrants, 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 court has legal obligations and reporting responsibilities to the State, as well as to the Town of Fountain Hills. The court must comply with constantly changing federal, state, and local laws and administrative rules, including those relating to crimes and criminal procedure, victims rights, domestic violence, driving under the influence, record keeping, ADA, minimum accounting standards, and judicial ethics. Decisions regarding the overall function of the court are the sole responsibility of the presiding judge who also has exclusive supervisory authority over all court personnel. Performance Standards ▬▬▬▬▬▬ • • • • • • Adjudicate 95% of all civil traffic cases within 60 days. Adjudicate 80% of criminal and criminal traffic cases within 60 days and 95% within 120 days. Maintain a fair and impartial environment to resolve legal disputes. Respond to incoming mail requests within 24 hours. Issue warrants for failure to appear within two business days. Keep written procedures current with changes in laws and rules. Fiscal Year 2005-2006 Budget - 141 - Town of Fountain Hills Management Indicators ▬▬▬▬▬▬ Cases filed Cases terminated Hearings held Civil traffic cases closed within 60 days Criminal/criminal traffic cases closed within 60 days Criminal/criminal traffic cases closed within 120 days FY 2002-2003 Actual FY 2003-2004 Actual FY 2004-2005 Estimated FY 2005-2006 Projected 3,135 3,309 803 92% 3,538 4,000 813 95% 3,352 3,600 1,050 95% 3,500 3,800 1,100 95% 80% 85% 85% 85% 95% 95% 95% 95% Fiscal Year 2004–2005 Accomplishments ▬▬▬▬▬▬ • • • • • • • • The Court has begun participation in the State’s new centralized collection program called “FARE” (Fines, Fees and Restitution) for enhancing the Court’s enforcement and collection efforts The Court has successfully implemented videoconferencing for certain proceedings involving incarcerated defendants, providing a safer, more efficient, and less-costly alternative to inperson proceedings Cooperatively working with the Civic Center Phase II architectural design team, the Court obtained the required Maricopa County Superior Court approval of the building plans for the new Fountain Hills Municipal Court facility The Fountain Hills Community Teen Court was successfully inaugurated last school year and reconvened this year as the result of the Court’s partnership with the Fountain Hills High School, the Maricopa County Juvenile Court, and the Maricopa County Sheriff’s Office The Presiding Judge and/or the Court Administrator attended all Limited Jurisdiction Presiding Judges Meetings, to keep the Court current with ever changing laws and updated on best practices and procedures The entire Court staff completed at least 16 hours of mandatory continuing education The Court continued to participate in the Tax Intercept Program that intercepts and collects state income tax refunds of defendants with financial obligations to the Court The Court continued to be utilized by the Supreme Court’s Administrative Office of the Courts (AOC) as a model court for training new AOC employees on the administrative practices and customer service in a smaller community court Fiscal Year 2005-2006 Objectives ▬▬▬▬▬▬ • • Continue the review, updating and implementation of existing and new Court policies and procedures Enhance court order enforcement and collection processes, including implementation of FARE Fiscal Year 2005-2006 Budget - 142 - Town of Fountain Hills • • Pursue the partnership opportunity with the Maricopa County Mental Health Court for utilizing their resources and programs for Fountain Hills cases Expand the Court’s website with enhanced public access to Court information and services. Summary Expenditures – Municipal Court FY 2002-2003 Actual FY 2003-2004 Actual FY 2004-2005 Budget FY 2004-2005 Estimate FY 2005-2006 Budget $259,064 $274,783 $316,050 $308,951 $337,820 CONTRACTUAL SERVICES $7,800 $4,170 $8,500 $8,000 $6,300 REPAIRS & MAINTENANCE $1,126 $813 $1,200 $1,000 $1,200 $19,756 $12,930 $16,600 $12,002 $16,955 $0 $0 $0 $0 $0 $287,746 $292,696 $342,350 $329,953 $362,275 SALARIES & BENEFITS SUPPLIES & SERVICES CAPITAL EXPENDITURES TOTAL EXPENDITURES Schedule of Authorized Positions Authorized FTE’s 2002-2003 2003-2004 Court Presiding Judge Court Administrator Senior Court Clerk Court Collections Clerk Court Clerk 1.00 1.00 0 1.00 3.00 Authorized FTE 6.00 2004-2005 Proposed 2005-2006 1.00 1.00 0 0 3.00 1.00 1.00 1.00 0 2.00 1.00 1.00 1.00 0 2.50 5.00 5.00 5.50 Salaries and Benefits $337,820 With recent and anticipated program additions, the Court is re-evaluating the workload requirements for the next fiscal year, and have proposed a part-time position in the event that the workload increases significantly. The proposed FY05-06 budget includes this position funded by the General Fund as a half-time FTE. Fiscal Year 2005-2006 Budget - 143 - Town of Fountain Hills Contract Services $6,300 This category includes required interpreting services other than day-to-day Spanish, which is provided by court staff, and the services of pro tem judges when the presiding judge is unavailable. The court also has a contract for $4,500 with the Supreme Court for the use and maintenance of the Arizona Court Automation Program (ACAP). Repairs and Maintenance $1,200 This supports routine service and annual maintenance of office equipment. Supplies and Services $16,955 This line item includes funding to support advertising and signage, $3,500 for the presiding judge and court staff to attend mandatory continuing education conferences as required by the Arizona Supreme Court, court-related association dues, fees for publications, updated Arizona statutes and court rules, and necessary directory subscriptions. Also included in this item is funding for office supplies and printing, which have increased due to costs of new stationery and supplies for the new court facility. Fiscal Year 2005-2006 Budget - 144 - Town of Fountain Hills MUNICIPAL COURT FY 2002-2003 Actual SALARIES & BENEFITS Wages FICA Unemployment Insurance Employee's Health Insurance Employee's Life Insurance Employee's Dental Insurance Employee's Eye Insurance Worker's Compensation Insurance Employee's Retirement Fund Recruitment Costs Disability Insurance TOTAL CONTRACT SERVICES Accounting Fees Interpreters/Pro-Tem Judge Intergovernmental Agreements TOTAL REPAIRS & MAINTENANCE: Office Equipment Repairs TOTAL SUPPLIES & SERVICES: Advertising/Signage Conferences Education/Training Fees & Publications Office Supplies Printing Communication Expense Travel Bank Charges TOTAL CAPITAL EXPENDITURES Capital Outlay - Furniture/Equipment TOTAL CAPITAL EXPENDITURES TOTAL EXPENDITURES FY 2003-2004 Actual FY 2004-2005 Budget FY 2004-2005 Estimate 205,809 2,917 243 21,761 251 2,343 175 387 22,639 1,704 835 220,620 3,124 266 21,751 643 2,740 0 388 24,254 0 997 253,200 3,700 250 25,470 820 3,010 0 530 27,850 $259,064 FY 2005-2006 Proposed 265,200 4,750 400 33,120 890 3,580 190 790 27,640 1,220 248,087 3,550 325 24,222 794 2,849 0 700 27,290 0 1,134 $274,783 $316,050 $308,951 $337,820 0 4,800 3,000 0 1,170 3,000 2,000 2,000 4,500 2,000 1,500 4,500 0 1,800 4,500 $7,800 $4,170 $8,500 $8,000 $6,300 1,126 813 1,200 1,000 1,200 $1,126 $813 $1,200 $1,000 $1,200 0 1,460 25 3,138 1,771 1,574 302 55 2,599 0 1,409 940 3,276 3,514 1,467 38 225 2,062 400 1,900 1,400 3,500 3,000 1,600 0 800 2,500 100 1,000 800 3,500 3,000 500 102 500 2,500 500 1,900 1,600 3,550 4,000 2,000 105 800 2,500 $19,756 $12,930 $16,600 $12,002 $16,955 0 0 0 0 0 $0 $0 $0 $0 $0 $287,746 $292,696 $342,350 $329,953 $362,275 Fiscal Year 2005-2006 Budget - 145 - 1,260 Town of Fountain Hills This page left intentionally blank. Fiscal Year 2005-2006 Budget - 146 - Town of Fountain Hills Special Revenue Fund – Grants SPECIAL REVENUE FUND FY 2002-2003 Actual REVENUE: FEMA Proposition 202 LTAF Revenue Undesignated Grant Revenue ADOT TOTAL CURRENT REVENUE FEMA Proposition 202 LTAF-RPTA Undesignated Grant Expenditure ADOT - Street Sweeper Transfer from General Fund Transfer from HURF TOTAL EXPENDITURES & TRANSFERS EXCESS OF REVENUES OVER/ (UNDER) EXPENDITURES FY 2004-2005 Budget FY 2004-2005 Estimate FY 2005-2006 Proposed 84,769 0 0 59,244 0 0 75,000 28,601 0 0 67,500 50,000 0 1,375,000 0 0 55,000 53,006 0 0 50,000 0 68,125 1,437,000 175,000 $144,012 $103,601 $1,492,500 $108,006 $1,730,125 67,530 0 0 59,244 0 0 0 17,227 65,320 28,601 0 0 0 0 75,000 50,000 0 1,375,000 0 (7,500) 0 0 64,692 53,006 0 0 0 0 50,000 0 68,125 1,437,000 225,000 0 (50,000) $126,774 $111,148 $1,492,500 $117,698 $1,730,125 17,239 (7,547) 0 (9,692) 0 $0 $9,692 $0 $0 $0 Fund Balance Beginning of Year Ending Fund Balance FY 2003-2004 Actual $0 $17,239 $17,239 $9,692 $0 Special Revenue Fund – Community Center -Furniture, Fixtures & Equipment (FF&E) SPECIAL REVENUE FUND Community Center Furniture, Fixtur REVENUE: Contributions TOTAL CURRENT REVENUE Contract Services Repairs & Maintenance Supplies & Services Capital Expenditures TOTAL EXPENDITURES EXCESS OF REVENUES OVER/ (UNDER) EXPENDITURES Fund Balance Beginning of Year Ending Fund Balance FY 2002-2003 Actual FY 2003-2004 Actual FY 2004-2005 Budget FY 2004-2005 Estimate FY 2005-2006 Proposed 117,200 0 0 0 0 $117,200 $0 $0 $0 $0 0 13,433 10,615 27,876 0 4,094 5,677 18,863 0 15,000 15,000 150,770 0 8,846 6,154 0 10,000 0 0 30,000 $51,924 $28,634 $180,770 $15,000 $40,000 65,276 (28,634) (180,770) (15,000) (40,000) $122,294 $187,570 $187,570 $158,936 $180,770 $0 $158,936 $143,937 $143,937 $103,937 This budget includes carryover funds from community donations to be used for the Community Center. Included is $10,000 for design fees associated with hiring an architectural firm to help develop plans for the Community Center Courtyard area and a miscellaneous amount for unforeseen expenditures in the amount of $30,000. Fiscal Year 2005-2006 Budget - 147 - Town of Fountain Hills Excise (Sales )Tax – Special Revenue – Municipal Property Corporation Debt Service FY 2002-2003 Actual EXCISE TAX (SALES) REVENUE: Revenue: Mountain Bonds (.2%) Civic Center Phase II Bonds (.1%) Interest FY 2003-2004 Actual FY 2005-2006 Proposed 17,605 659,070 350,000 22,000 721,089 360,545 24,000 $1,084,814 $909,846 $1,016,570 $1,031,070 $1,105,634 607,411 0 0 637,061 0 0 595,000 350,000 22,532 595,000 255,480 22,532 606,500 270,000 38,602 $607,411 $637,061 $967,532 $873,012 $915,102 EXCESS OF REVENUES OVER/ (UNDER) EXPENDITURES 477,402 272,785 49,038 158,058 190,532 Fund Balance Beginning of Year $719,577 $1,196,980 $1,098,387 $1,469,765 $1,627,823 $1,196,980 $1,469,765 $1,147,425 $1,627,823 $1,818,355 EXPENDITURES: MPC Debt Service Mountain Bond Payment Civic Center Phase II Bonds (.1%) Sales Tax Rebate TOTAL EXPENDITURES Ending Fund Balance 892,241 FY 2004-2005 Estimate 659,070 350,000 7,500 TOTAL REVENUES 1,076,934 0 7,880 FY 2004-2005 Budget Fiscal Year 2005-2006 Budget - 148 - Town of Fountain Hills Excise Tax – Special Revenue – Downtown Development EXCISE TAX (SALES) SPECIAL REVENUE Downtown Development FY 2002-2003 Actual REVENUES: Downtown Development (.1%) 358,978 FY 2003-2004 Actual FY 2004-2005 Budget FY 2004-2005 Estimate FY 2005-2006 Proposed 297,414 329,535 329,535 360,545 $358,978 $297,414 $329,535 $329,535 $360,545 EXPENDITURES: SALARIES & BENEFITS: Wages FICA Unemployment Insurance Employee's Health Insurance Employee's Life Insurance Employee's Dental Insurance Employee's Eye Insurance Worker's Compensation Insurance Employee's Retirement Fund Recruitment Costs Disability Insurance 0 0 0 0 0 0 0 0 0 0 0 8,798 128 41 472 19 53 0 16 968 475 30 37,500 413 36 6,367 95 738 0 90 3,094 0 135 38,877 541 65 3,028 125 330 0 135 4,277 0 185 39,375 580 49 3,548 142 362 23 121 4,331 0 197 TOTAL SALARIES/BENEFITS $0 $11,000 $48,467 $47,563 $48,729 0 0 0 0 32,674 11,600 40,500 25,000 11,600 40,500 25,000 11,600 30,000 12,867 $0 $44,274 $77,100 $77,100 $42,867 TOTAL REVENUES CONTRACT SERVICES Professional Fees Engineering Fees Sales Tax Rebate TOTAL CONTRACT SERVICES SUPPLIES & SERVICES Advertising/Signage Conferences Education/Training Dues/Publications Office Supplies Printing Travel TOTAL 0 0 0 0 0 0 0 289 399 0 188 69 31 52 0 5,025 500 850 300 2,000 1,500 100 2,500 150 600 300 2,000 1,500 0 5,075 450 600 300 2,000 660 $0 $1,028 $10,175 $7,150 $9,085 0 0 400,000 200,000 800,000 TOTAL CAPITAL EXPENDITURES $0 $0 $400,000 $200,000 $800,000 TOTAL EXPENDITURES $0 $56,302 $535,742 $331,813 $900,681 EXCESS OF REVENUES OVER/ (UNDER) EXPENDITURES $358,978 $241,112 ($206,207) Fund Balance Beginning of Year $432,813 $791,791 $1,004,809 $1,032,903 $1,030,625 Ending Fund Balance $791,791 $1,032,903 $798,602 $1,030,625 $490,489 CAPITAL EXPENDITURES Capital Projects Fund Fiscal Year 2005-2006 Budget - 149 - ($2,278) ($540,136) Town of Fountain Hills Downtown Development Salaries and Benefits $48,729 The Town downtown economic development coordinator salary and benefits are partially funded by the dedicated 0.01% of local sales tax. The coordinator dedicates 75% of the time with a focus on developing the downtown area; the remainder of the time will be spent on promoting economic development for the community as a whole. Contractual Service $42,867 The proposed budget includes the services of a professional firm to provide a fantastic holiday/anniversary lighting display in the downtown area. The contract for repair, erection, dismantling, and storage of the Town-owned holiday lighting displays is estimated to be $30,000. The 0.01% of the local sales tax rebate is also included within this division budget. Supplies and Services $9,085 The downtown economic development coordinator is planning to attend three major conferences in the upcoming fiscal year - the national International Economic Development (IEDC) conference in Chicago in the fall of 2005, the Arizona Economic Development Association conferences (fall and spring) for $1,075, and the International Conference of Shopping Centers for $800. Memberships in Arizona Association for Economic Development, International Economic Development Council, and associated publications will cost $850. Capital Expenditures $800,000 The capital request is for funding of Phase I along the north side of Avenue of the Fountains for an estimated $200,000. It is anticipated that the construction along the avenue will consist of shade structures, benches and trash receptacles, sidewalk resurfacing, upgraded landscape materials, low-level street lighting and pedestrian crossings at a cost of approximately $600,000. Fiscal Year 2005-2006 Budget - 150 - Town of Fountain Hills Debt Retirement The Debt Service Fund provides for the payment of interest, principal, and related costs on General Obligation (GO) Bonds, Highway User Revenue Fund bonds and Municipal Property Corporation (MPC) Revenue bonds. There are three General Obligation bond issues outstanding that were approved by the voters for specific purposes. The first GO bond issue in 1991 (refunded in 1995) was to pave roads that remained unpaved at the time of incorporation. Additional GO bonds issued in 1999 and 2000 were for the construction of a library/museum and community center. Bonds issued in 2001 were for the purchase of mountain preservation land in the McDowell mountains. Total General Obligation bond principal and interest payments for fiscal year 2005-2006 are $1,375,000 and will be paid through a levy of Town property. The Summary/Schedules section includes an itemization of the outstanding debt as of June 30, 2005. The HURF Bond principal and interest payment is $110,500 for fiscal year 2005-2006 and will be paid from HURF revenues received during the year. The Eagle Mountain Community Facilities District debt payments are levied on the property owners within the district. These obligations are paid by the Fountain Hills property owners using secondary property taxes, less any credits, carryforward and/or interest earnings. The annual Municipal Property Corporation debt service for the Community Center are transferred from the General Fund and included within the Community Center budget. The annual Mountain Bond MPC debt service is included as an expenditure in the Excise Sales Tax – Mountain Bond Fund. Below is the schedule of Debt Service payments required for next fiscal year. TOTAL DEBT SERVICE - TOWN OF F.H. 05-06 Issue GO Lakeside HURF Cottonwoods Library/Museum Eagle Mtn MPC Comm. Center Mtn Bonds (GO) MPC - Mtn Bonds MPC - Civic Ctr Ph I Principal $275,000 $75,000 $85,000 $3,228 $225,000 $160,000 $175,000 $250,000 $300,000 $125,000 Interest $85,000 $50,000 $25,500 $700 $162,425 $301,850 $212,000 $249,000 $306,500 $145,000 TOTAL $1,673,228 $1,537,975 The annual property tax levy is based on the total amount required for the payment (with adjustments for carry-forward, delinquencies, etc.) divided by the total assessed valuation for the Town of Fountain Hills. The Town’s secondary assessed property valuation for fiscal year 2005-2006 is estimated to be $375,183,181 for the upcoming year and the estimated levy is $0.30 per $100 of assessed value. Fiscal Year 2005-2006 Budget - 151 - Town of Fountain Hills Debt Retirement – HURF/GO Bonds DEBT RETIREMENT - HURF/GO BONDS FY 2002-2003 Actual REVENUE: Property Tax Revenue: General Obligation Bonds FY 2003-2004 Actual FY 2004-2005 Budget FY 2004-2005 Estimate FY 2005-2006 Proposed 1,447,580 1,564,923 1,450,000 1,450,000 1,150,000 126,000 4,480 385,022 179 124,417 3,622 377,813 124,000 4,500 375,500 1,000 124,000 4,500 375,500 1,300 110,500 3,850 387,000 1,400 $1,963,261 $2,070,775 $1,955,000 $1,955,300 $1,652,750 EXPENDITURES: General Obligation Bonds: Bond Payment - GO Bond Payment - Lakeside Bond Payment - Library/Museum Bond Payment - Mtn Bonds GO 349,690 137,500 382,975 513,200 359,239 132,250 368,425 500,400 355,000 132,500 390,000 520,000 355,000 132,500 390,000 520,000 360,000 125,000 399,000 499,000 Special Districts/MPC Debt Service: MPC - Community Center Bond Payment - HURF Bond Payment - Cottonwoods Impr. Dist. 385,022 126,223 4,245 377,813 122,533 4,160 375,500 124,000 4,500 375,500 124,000 4,500 387,000 110,500 3,850 $1,898,855 $1,864,820 $1,901,500 $1,901,500 $1,884,350 64,406 205,955 53,500 53,800 ($34,841) $29,565 ($134,841) $235,520 $289,320 $29,565 $235,520 ($81,341) $289,320 $57,720 Other Debt Retirement Issues: HURF Street Paving Transfers Cottonwoods Improvement District MPC - Community Center Interest Earnings TOTAL REVENUES TOTAL EXPENDITURES EXCESS OF REVENUES OVER/ (UNDER) EXPENDITURES Fund Balance Beginning of Year Ending Fund Balance Fiscal Year 2005-2006 Budget - 152 - (231,600) Town of Fountain Hills Computation of Legal Debt Margin – Fiscal Year 2005-2006 The Arizona Constitution provides that the general obligation bonded indebtedness for a municipality for general municipal purposes may not exceed six percent (6%) of the secondary assessed valuation of the taxable property in that city or town. In addition to the six percent limitation for general municipal purpose bonds, municipalities may issue general obligation bonds up to an additional twenty percent (20%) of the secondary assessed valuation for supplying water, artificial light, or sewers, and for the acquisition and development of land for open space preserves, parks, playgrounds and recreational facilities. Direct Bonded Debt, Legal Limitation and Unused Borrowing Capacity Water, Sewer, Light, Parks, Open Space and Recreational Facility Boards General Municipal Purpose Bonds Debt limit - 6% of secondary net assessed valuation Less Direct Bonded Debt Unused 6% Borrowing Capacity Debt limit - 20% of secondary net assessed valuation $22,510,991 ($4,735,000) $17,775,991 Less Direct Bonded Debt Unused 20% Borrowing Capacity Fiscal Year 2005-2006 Budget - 153 - $75,036,636 ($6,375,000) $68,661,636 Town of Fountain Hills Schedule of Outstanding Debt (As of June 30, 2005) Bond Type GO GO GO GO GO Purpose of Issue Date of Bond Issue Refunding Library/Museum Land Acq-Lake Mtn. Bonds Refunding 11/1/1995 6/1/2000 8/1/1999 12/1/2001 6/1/2005 Interest Date of Original Principal Rate Maturity Amount 5.30 5.50 5.10 4.90 4.00 7/1/2010 7/1/2014 7/1/2014 7/1/2020 7/1/2019 TOTAL Rev Rev Rev Rev Rev Refunding Comm. Center Mtn. Bonds Civic Center Refunding 8/1/1998 7/1/2000 12/1/2001 12/1/2004 6/1/2005 4.63 5.40 4.70 4.50 4.15 7/1/2010 7/1/2020 7/1/2021 7/1/2019 7/1/2019 TOTAL SA SA SA Eagle Mtn-A Eagle Mtn-B Improvmnts 6/1/1996 6/1/1996 6/16/1999 TOTAL GRAND TOTAL GO General Obligation Bonds Rev SA Revenue Bonds Special Assessment Bonds 6.50 7/1/2021 7.25 7/1/2021 5.25 7/1/2009 Principal Amount Retired Amount Refunded Outstanding Principal $2,455,000 $3,700,000 $1,400,000 $6,000,000 $7,225,000 $925,000 $975,000 $425,000 $925,000 $0 $1,255,000 $1,675,000 $500,000 $3,425,000 $0 $275,000 $1,050,000 $475,000 $1,650,000 $7,225,000 $24,310,000 $4,325,000 $9,310,000 $10,675,000 $1,075,000 $4,680,000 $7,750,000 $3,645,000 $5,330,000 $535,000 $775,000 $1,100,000 $170,000 $0 $0 $2,475,000 $3,910,000 $0 $0 $23,680,000 $2,780,000 $4,435,000 $470,000 $32,276 $410,000 $40,000 $19,365 $4,937,276 $469,365 $0 $4,467,911 $52,927,276 $7,574,365 $16,695,000 $28,657,911 Fiscal Year 2005-2006 Budget - 154 - $7,385,000 $0 $0 $0 $540,000 $1,430,000 $2,740,000 $3,475,000 $5,330,000 $13,515,000 $4,025,000 $430,000 $12,911 Town of Fountain Hills Eagle Mountain Community Facilities District EAGLE MOUNTAIN COMMUNITY FACILITIES DISTRICT Annual Statement of Estimates of Expenses FY 2002-2003 Actual REVENUE: Property Tax Revenue Town of Fountain Hills Reimbursement Investment Earnings FY 2003-2004 Actual FY 2004-2005 Budget FY 2004-2005 Estimate FY 2005-2006 Proposed $458,288 $0 ($195,647) $574,193 $0 $3,391 $513,000 $0 $0 $513,000 $0 $0 $353,600 $50,000 $2,000 TOTAL REVENUES $262,641 $577,585 $513,000 $513,000 $405,600 EXPENDITURES: Debt Service Administrative Fees Trustee Fees $316,526 $50,000 $5,000 $459,814 $50,000 $5,000 $455,500 $52,500 $5,000 $456,830 $6,600 $5,000 $330,600 $20,000 $5,000 TOTAL EXPENDITURES $371,526 $514,814 $513,000 $468,430 $355,600 ($108,885) $62,771 $0 $44,570 $50,000 Fund Balance Beginning of Year $307,645 $198,760 $261,530 $261,530 $306,100 Ending Fund Balance $198,760 $261,530 $261,530 $306,100 $356,100 EXCESS OF REVENUES OVER/ (UNDER) EXPENDITURES Fiscal Year 2005-2006 Budget - 155 - Town of Fountain Hills This page left intentionally blank. Fiscal Year 2005-2006 Budget - 156 - Town of Fountain Hills Development Fees Percent Restrictions Fiscal Year There is a State constitutional restriction on the use of these funds which requires that these funds be used solely for infrastructure expansion required by new development. The Development Fund is a restricted fund and may only be appropriated for the particular purpose for which they were imposed. The projection for FY2006 is based on information provided by local engineering firms, developers and planning staff estimates of construction activity. Amount 2000-01 Change $8,960 2001-02 2002-03 2003-04 2004-05 (est.) 2005-06 (est.) $103,530 1055.5% $604,658 484.0% $998,975 65.2% $1,375,544 37.7% $1,268,126 -7.8% Accounts: 802 - 819 Assumptions Major Influences: Development $424,880 2005-2006 $473,008 $462,170 2004-2005 $339,000 2003-2004 $192,667 2002-2003 $176,759 2001-2002 $0 Law Enforcement $200,000 $198,023 $400,000 Streets - SF $514,522 $377,400 $212,843 $175,216 $190,594 $139,800 $96,087 $160,338 $600,000 Streets - M F $800,000 $1,000,000 $1,200,000 $1,400,000 $1,600,000 Parks & Recreation Fiscal Year 2005-2006 Budget - 157 - Open Space General Government Town of Fountain Hills Development Fee Expenditures In November 2000, the Town Council of Fountain Hills passed Ordinance 00-21 to establish and impose development fees on new residential permits to offset the costs associated with growth. The development fee accounts are restricted and may only be spent for the particular public facility for which they were imposed. Each year during the budget process, the Town of Fountain Hills will identify the projects anticipated to be funded in whole or in part with development fees. For fiscal year 2005-2006, the following schedule is presented for Council consideration and itemizes the proposed development fee expenditures based on available balance in each account as of June 30, 2005. Law Enforcement Balance 6/3/2001 FY 2001-2002 Revenues FY 2001-2002 Expenditures FY 2002-2003 Revenues FY 2002-2003 Expenditures FY 2003-2004 Revenues FY 2003-2004 Expenditures FY 2004-2005 Revenues FY 2004-2005 Expenditures FY 2005-2006 Revenues FY 2005-2006 Expenditures1 FY 2005-2006 Ending Bal. 1 Street Open Space Parks General Government $960 $13,742 $33,900 $37,740 $10,887 $144,761 $176,759 $198,023 $0 $0 $6,573 $96,705 0 $9,814 $0 ($7,000) $139,990 ($201,150) ($80,954) $192,463 $0 $268,018 $0 $0 $212,684 ($14,105) $296,402 ($13,049) $13,987 TOTALS $100,329 $160,338 $690,768 ($185,500) ($266,454) $96,234 $604,659 $0 $141,417 $0 ($21,105) $855,641 ($214,199) $16,600 $199,500 $474,060 $527,400 $233,600 $1,451,160 ($40,068) ($319,000) ($356,000) ($129,100) ($390,955) ($1,235,123) $12,082 $260,740 $425,880 $482,608 $175,566 $1,356,876 ($16,848) ($295,000) ($603,700) ($129,800) ($244,687) ($1,290,035) $33,288 $530,426 $0 $1,468,803 $0 $2,032,517 Fiscal year 2005-2006 proposed projects There are several capital projects proposed to be funded from development fees, the specific projects are listed below (descriptions of each project are included in the Capital Improvement Plan): Streets Left turn lane at Saguaro/Monterey Sidewalks Traffic signal at Saguaro/El Lago $ 40,000 $ 55,000 $200,000 Veterans Memorial Park contribution Ramadas for Fountain Park Phase III Desert Vista Neighborhood Park $ 40,000 $138,200 $425,500 Parks Fiscal Year 2005-2006 Budget - 158 - Town of Fountain Hills Open Space Eagles Nest Trailhead Adero Canyon Trailhead $ 28,800 $101,000 General Government and Law Enforcement Civic Center Phase II completion $261,535 Fiscal Year 2005-2006 Budget - 159 - Town of Fountain Hills Development Fees – Law Enforcement DEVELOPMENT FEES LAW ENFORCEMENT FY 2002-2003 Actual FY 2003-2004 Actual FY 2004-2005 Budget FY 2004-2005 Estimate FY 2005-2006 Proposed REVENUES: Law Enforcement Development Fees Interest 6,550 23 9,676 138 11,392 350 16,200 400 12,032 50 TOTAL REVENUES 6,573 9,814 11,742 16,600 12,082 0 0 40,068 40,068 16,848 $0 $0 $40,068 $40,068 $16,848 6,573 9,814 (28,326) (23,468) (4,766) Fund Balance Beginning of Year $11,847 $18,420 $28,326 $28,234 $4,766 Ending Fund Balance $18,420 $28,234 $0 $4,766 $0 EXPENDITURES: Transfer to CIP TOTAL EXPENDITURES EXCESS OF REVENUES OVER/ (UNDER) EXPENDITURES Development Fees – Parks and Recreation DEVELOPMENT FEES PARKS & RECREATION REVENUES: P & R Department Development Fees Interest FY 2002-2003 Actual FY 2003-2004 Actual FY 2004-2005 Budget FY 2004-2005 Estimate FY 2005-2006 Proposed 192,100 363 263,320 4,698 402,280 8,200 465,560 8,500 424,880 1,000 $192,463 $268,018 $410,480 $474,060 $425,880 0 0 0 0 0 0 0 0 0 0 0 0 125,000 206,000 25,000 0 0 0 125,000 206,000 25,000 0 0 0 0 0 40,000 138,200 425,500 0 $0 $0 $356,000 $356,000 $603,700 EXCESS OF REVENUES OVER/ (UNDER) EXPENDITURES $192,463 $268,018 $54,480 $118,060 ($177,820) Fund Balance Beginning of Year $129,705 $322,168 $599,698 $590,186 $708,246 Ending Fund Balance $322,168 $590,186 $654,178 $708,246 $530,426 TOTAL REVENUES EXPENDITURES: CAPITAL EXPENDITURES Fountain Park Spray Park Skate Park Veteran's Memorial Fountain Park Picnic Ramadas Desert Vista Phase III Previously Approved Projects TOTAL EXPENDITURES Fiscal Year 2005-2006 Budget - 160 - Town of Fountain Hills Development Fees – Streets DEVELOPMENT FEES STREETS FY 2002-2003 Actual FY 2003-2004 Actual FY 2004-2005 Budget FY 2004-2005 Estimate FY 2005-2006 Proposed REVENUES: Street Department Development Fees Developer Contribution Interest 96,512 0 193 138,608 0 1,382 149,475 0 5,000 195,000 0 4,500 160,240 100,000 500 TOTAL REVENUE 96,705 139,990 154,475 199,500 260,740 CAPITAL EXPENDITURES FH Blvd/El Lago Signal Shea Widening (MCDOT) Shea/Saguaro Left Turn Lane Saguaro/Monterey Turn Lanes Shea Signal (Eagle Mtn/Palisades) Shea Bike Lanes Drainage Ruskin/Kipling Sidewalks Saguaro/El Lago Signal TOTAL EXPENDITURES 7,000 0 0 0 0 0 0 0 0 83,088 118,062 0 0 0 0 0 0 0 85,000 0 30,000 40,000 20,000 10,000 40,000 55,000 85,000 123,100 0 0 0 0 160,900 0 0 35,000 0 0 0 40,000 0 0 0 55,000 200,000 $7,000 $201,150 $365,000 $319,000 $295,000 $89,705 ($61,160) ($210,525) ($119,500) ($34,260) Fund Balance Beginning of Year $158,503 $248,208 $212,821 $187,048 $67,548 Ending Fund Balance $248,208 $187,048 $2,296 $67,548 $33,288 EXCESS OF REVENUES OVER/ (UNDER) EXPENDITURES Development Fees – Open Space DEVELOPMENT FEES OPEN SPACE REVENUES: Open Space Development Fees Interest FY 2002-2003 Actual FY 2003-2004 Actual FY 2004-2005 Budget FY 2004-2005 Estimate FY 2005-2006 Proposed 212,276 408 290,598 5,804 447,848 9,100 518,300 9,100 473,008 9,600 $212,684 $296,402 $456,948 $527,400 $482,608 0 14,105 0 13,049 75,000 54,100 75,000 54,100 28,800 101,000 $14,105 $13,049 $129,100 $129,100 $129,800 EXCESS OF REVENUES OVER/ (UNDER) EXPENDITURES $198,579 $283,353 $327,848 $398,300 $352,808 Fund Balance Beginning of Year $235,763 $434,342 $810,842 $717,695 $1,115,995 Ending Fund Balance $434,342 $717,695 $1,138,690 $1,115,995 $1,468,803 TOTAL REVENUES EXPENDITURES: CAPITAL EXPENDITURES Capital Outlay - Trailhead Restroom Capital Outlay-Trailhead Development TOTAL EXPENDITURES Fiscal Year 2005-2006 Budget - 161 - Town of Fountain Hills Development Fees – General Government DEVELOPMENT FEES GENERAL GOVERNMENT FY 2002-2003 Actual FY 2003-2004 Actual FY 2004-2005 Budget FY 2004-2005 Estimate FY 2005-2006 Proposed REVENUES: General Government Development Fees Interest 96,087 147 139,621 1,796 165,896 100 230,000 3,600 175,216 350 TOTAL REVENUE 96,234 141,417 165,996 233,600 175,566 EXPENDITURES: CAPITAL EXPENDITURES Capital Project - Civic Center Capital Outlay 0 0 0 0 390,955 0 390,955 0 244,687 TOTAL EXPENDITURES 0 0 390,955 390,955 244,687 $96,234 $141,417 ($224,959) ($157,355) ($69,121) ($11,175) $85,059 $224,959 $226,476 $69,121 $85,059 $226,476 $0 $69,121 EXCESS OF REVENUES OVER/ (UNDER) EXPENDITURES Fund Balance Beginning of Year Ending Fund Balance Fiscal Year 2005-2006 Budget - 162 - ($0) Town of Fountain Hills Capital Projects Fund (projects that have been previously approved) During the FY2004-05 budget process, several capital projects were approved by the Town Council and are currently under construction. The first project is completion of Civic Center phase II, which began construction in September, 2004. Because the Town currently rents space at an annual rate of $600,000 including maintenance, taxes, and rent, this project is expected to save the Town more than $30 million over thirty years. The new facility will serve as the municipal offices for law enforcement, planning and zoning, parks and recreation, senior center, administrative offices, and the court. Bonds sold for the project by the Town of Fountain Hills Municipal Property Corporation provided $3.8 million towards the project as well as general government and law enforcement development fees in the amount of $431,023. Projects that are not complete prior to the end of any fiscal year must be re-budgeted the following year, such as the new Town Hall. FY05-06 includes $956,500 in the capital budget to be provided by development fees ($261,535), funds carried forward from FY04-05 ($333,621) and a transfer from the General Fund in the amount of $361,344. The expenditures are broken down as follows: Parking canopies $392,000 Pave east parking lot $300,000 Balance on construction contract $224,023 Balance on Kitchell contract $ 21,300 Signage $ 14,000 External amenities (trash, mats) $ 3,200 Kohler $ 2,000 The second project is the skate park for $206,000 that will be constructed at Desert Vista Neighborhood Park, with groundbreaking expected during the first quarter of FY05-06. Street projects that were previously approved but scheduled for completion in FY05-06 are the turn pocket at Saguaro and Monterey Boulevards, sidewalks on Saguaro and Kingstree Boulevards and a drainage project on Ruskin and Kipling for a total of $135,000. General Fund Balance Transfer for Capital During FY04-05 revenues exceeded expenditures by $2,570,848 due to controlled expenditures and better than anticipated revenues. It is proposed that this amount be transferred from the General Fund to the Capital Projects to be available for funding future projects when constructed related revenues decline. The Town’s beginning General Fund balance is $6.4 million, which meets the Town’s fund balance policy reserve level and brings it back to historic levels. While the Town is benefiting from one time construction related revenues it makes sense to use them for one time capital costs and maintaining the fund balance. Fiscal Year 2005-2006 Budget - 163 - Town of Fountain Hills CAPITAL PROJECTS Beginning Fund Balance Revenues: Development Fee Transfers: General Government Law Enforcement Parks & Recreation Other Revenue Sources: Sales Tax - CIP Grants Proceeds from sale of assets Bond Proceeds Developer Contributions Interest on Bonds Transfers: General Fund - Fountain Park General Fund - Civic Center II General Fund Balance Transfer for Capital TOTAL REVENUES EXPENDITURES: Civic Center Phase II Parks & Recreation Streets TOTAL EXPENDITURES FY 2002-2003 Actual FY 2003-2004 Actual FY 2004-2005 Budget FY 2004-2005 Estimate FY 2005-2006 Proposed $0 $0 $601,370 $556,370 $409,896 0 0 0 0 0 69,670 390,955 40,068 0 390,955 40,068 206,000 244,687 16,848 0 0 0 0 0 0 120,340 0 21,700 0 0 0 528,225 237,300 0 3,500,000 317,500 0 528,225 237,300 0 3,783,896 0 30,000 528,225 0 0 0 0 25,000 0 0 0 510,000 400,250 0 0 940,752 0 0 940,752 0 361,344 2,570,848 0 0 0 0 1,121,960 520,590 45,000 0 5,954,800 5,421,700 771,970 317,500 6,157,196 5,402,000 901,670 0 3,746,952 956,500 206,000 135,000 0 565,590 6,511,170 6,303,670 1,297,500 EXCESS OF REVENUES OVER/ (UNDER) EXPENDITURES $0 $556,370 ($556,370) ($146,474) $2,449,452 Fund Balance Beginning of Year $0 $0 $556,370 $556,370 $409,896 Ending Fund Balance $0 $556,370 $0 $409,896 $2,859,348 Fiscal Year 2005-2006 Budget - 164 - Town of Fountain Hills Summary of Tax Levy and Tax Rate Information TOWN OF FOUNTAIN HILLS, ARIZONA Summary of Tax Levy and Tax Rate Information Fiscal Year 2005-06 2004-05 FISCAL YEAR 2005-06 FISCAL YEAR 1. Maximum allowable primary property tax levy. A.R.S. §42-17051(A). $ 0 2. Amount received from primary property taxation in the 2003-04 fiscal year in excess of the sum of that year's maximum allowable primary property tax levy. A.R.S. §42-17102(A)(18). $ 0 $ 0 3. 0 $ 0 Property tax levy amounts A. Primary property taxes 1,450,000 B. Secondary property taxes C. Total property tax levy amounts 4. $ $ 1,450,000 $ 0 $ 0 $ 1,450,000 $ 1,450,000 $ 1,450,000 1,112,000 $ 1,112,000 Property taxes collected* A. Primary property taxes (1) 2004-05 levy (2) Prior years’ levy (3) Total primary property taxes B. Secondary property taxes (1) 2004-05 levy (2) Prior years’ levy (3) Total secondary property taxes C. Total property taxes collected 5. Property tax rates A. City/Town tax rate 0.0000 0.4021 0.4021 (1) Primary property tax rate (2) Secondary property tax rate (3) Total city/town tax rate 0.0000 0.3021 0.3021 B. Special assessment district tax rates Secondary property tax rates - As of the date the proposed budget was prepared, the town was operating two (2) special assessment districts for which secondary property taxes are levied. For information pertaining to these special assessment districts and their tax rates, please contact the town. *Includes actual property taxes collected as of the date the proposed budget was prepared plus estimated property tax collections for the remainder of the fiscal year. Fiscal Year 2005-2006 Budget - 165 - Town of Fountain Hills TOWN OF FOUNTAIN HILLS ASSESSED VALUATION 1995 - 2005 Tax Year % Change Primary 1995 $94,188,635 1996 $100,649,833 6.9% $103,944,051 3.8% 1997 $112,285,569 11.6% $116,333,406 11.9% 1998 $133,721,181 19.1% $146,943,730 26.3% 1999 $160,963,931 20.4% $174,760,640 18.9% Secondary % Change $100,161,566 2000 $190,102,361 18.1% $212,415,476 21.5% 2001 $220,229,137 15.8% $238,714,537 12.4% 2002 $247,151,729 12.2% $270,602,866 13.4% 2003 $282,800,857 14.4% $323,385,230 19.5% 2004 $319,213,464 12.9% $349,398,334 8.0% 2005 $350,557,588 9.8% $375,183,181 7.4% Fiscal Year 2005-2006 Budget - 166 - Town of Fountain Hills Schedule of Authorized Positions ▬▬▬▬▬▬ Position – Title Court Presiding Judge Court Administrator Senior Court Clerk Court Collections Clerk Court Clerk 2002-2003 Authorized FTE 2003-2004 Authorized FTE 2005-2006 Proposed FTE 1.00 3.00 1.00 1.00 0.00 0.00 3.00 1.00 1.00 1.00 0.00 2.00 1.00 1.00 1.00 0.00 2.50 Authorized FTE 6.00 5.00 5.00 5.50 Administration Town Manager Undesignated Position Director of Admin/Town Clerk Finance Director Town Clerk Assistant Town Manager I. T. Administrator I. T. Intern Accountant Accounting/H.R.Clerk Accounting Clerk Administrative Intern Exec.Asst to Town Mgr/Council Executive Assistant Human Resources Administrator I. T. Coordinator Administrative Assistant Facilities Supervisor Facilities Maintenance Tech Maintenance/Custodial Worker Custodian Customer Service Rep. Administrative Clerk Receptionist 1.00 2.00 1.00 1.00 0.00 0.00 1.00 0.50 0.00 1.00 0.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 0.00 1.00 2.00 1.00 0.00 0.00 1.00 0.00 0.00 1.00 1.00 0.00 0.00 0.50 0.00 1.00 0.00 0.00 1.00 0.00 1.00 1.00 0.00 1.00 0.00 1.00 1.50 1.50 0.00 0.00 1.00 0.00 0.00 1.00 1.00 0.00 0.00 0.50 1.00 0.00 1.00 0.00 1.00 0.00 1.00 1.00 0.00 1.00 1.00 0.50 1.00 1.00 0.50 0.00 1.00 0.00 0.00 1.00 1.00 1.00 0.00 0.00 1.00 0.00 1.00 0.50 1.00 0.00 1.00 1.00 0.00 1.00 1.00 0.50 1.00 0.50 1.00 0.50 18.50 12.50 13.50 15.00 Authorized FTE 1.00 1.00 2004-2005 Authorized FTE 0.00 Fiscal Year 2005-2006 Budget - 167 - Town of Fountain Hills Schedule of Authorized Positions ▬▬▬▬▬▬ Position – Title 2002-2003 Authorized FTE 2003-2004 Authorized FTE 2004-2005 Authorized FTE 2005-2006 Proposed FTE Building Safety Chief Building Official Plans Examiner Building Inspector Building Permit Technician Senior Building Inspector 1.00 2.00 1.00 2.00 2.00 1.00 2.00 2.00 2.00 0.00 1.00 2.00 2.00 3.00 1.00 1.00 2.00 2.00 3.00 1.00 Authorized FTE 8.00 7.00 9.00 9.00 Public Works Public Works Director Town Engineer Senior Civil Engineer Civil Engineer Senior Civil Engineer Inspector Civil Engineer Inspector Executive Assistant Administrative Assistant Open Space & Landscape Spec. 1.00 1.00 1.00 1.00 0.00 2.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 0.00 1.00 1.00 0.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 0.00 1.00 1.00 1.00 0.00 2.00 1.00 1.00 1.00 0.00 1.00 Authorized FTE 9.00 7.00 8.00 8.00 Street Assistant Public Works Director Street Superintendent Street Maintenance Supervisor Fleet Mechanic Fleet Equipment Mechanic Street Maintenance Tech Equipment Operator 0.00 1.00 0.00 1.00 1.00 9.00 2.00 0.00 1.00 1.00 1.00 1.00 7.00 2.00 0.00 1.00 1.00 1.00 0.00 6.00 2.00 1.00 1.00 0.00 1.00 0.00 6.00 2.00 14.00 13.00 11.00 11.00 Authorized FTE Fiscal Year 2005-2006 Budget - 168 - Town of Fountain Hills Schedule of Authorized Positions ▬▬▬▬▬▬ Position – Title 2002-2003 Authorized FTE 2003-2004 Authorized FTE 2004-2005 Authorized FTE 2005-2006 Proposed FTE Planning & Zoning Director P & Z Administrator Senior Planner Planner Eng. Tech/CAD Operator Drafting/CAD Technician Executive Assistant Planning Technician Planning Assistant Economic Downtown Dev. Coor Code Enforcement Officer 1.00 0.00 2.00 1.00 1.00 1.00 1.00 0.00 1.00 0.00 0.00 0.00 1.00 1.00 1.00 1.00 1.00 0.00 0.00 1.00 1.00 3.00 0.00 1.00 1.00 1.00 1.00 1.00 0.00 0.00 1.00 1.00 2.00 0.00 1.00 1.00 1.00 1.00 1.00 0.00 0.50 1.00 1.00 3.00 Authorized FTE 8.00 10.00 9.00 10.5 Parks & Recreation Parks & Rec/Comm Ctr Dir. Parks Supervisor Recreation Supervisor Rec. Program Coordinator Groundskeeper Recreation Intern Park Operations Lead Recreation Assistant Recreation Aide Executive Assistant Administrative Assistant Receptionist 1.00 1.00 1.00 3.00 1.00 0.00 3.00 4.00 0.00 1.00 1.00 0.00 0.50 1.00 1.00 2.00 1.00 0.00 2.00 4.00 0.00 1.00 0.00 0.50 0.50 1.00 1.00 2.00 2.00 0.00 2.00 4.00 1.00 1.00 0.00 0.50 0.50 1.00 1.00 2.00 2.00 0.50 3.00 4.00 1.00 1.00 0.00 0.50 Authorized FTE Law Enforcement Pub. Safety Dir/Town Marshal Emergency Mgmt Coord Sergeant Deputy Marshal Dispatcher Administrative Assistant 16.00 13.00 15.00 16.50 1.00 0.00 3.00 8.00 7.00 1.00 0.00 1.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Authorized FTE 20.00 1.00 0.00 0.00 Fiscal Year 2005-2006 Budget - 169 - Town of Fountain Hills Schedule of Authorized Positions ▬▬▬▬▬▬ Position – Title Community Center Parks & Rec/Comm Ctr Dir. Comm Ctr Supervisor Comm Ctr Operations Sup. Administrative Assistant Operations Support Worker Operations Support Assistant Custodian Volunteer Coordinator Authorized FTE Total Authorized FTE 2002-2003 Authorized FTE 2003-2004 Authorized FTE 2004-2005 Authorized FTE 2005-2006 Proposed FTE 1.00 1.00 1.00 1.00 1.00 0.00 1.00 0.50 0.50 1.00 1.00 1.00 1.50 0.00 1.00 0.50 0.50 1.00 1.00 1.00 1.50 0.00 1.00 0.50 0.50 1.00 1.00 1.00 1.50 0.50 1.00 0.50 6.50 6.50 6.50 7.00 106.00 75.00 77.00 81.50 Pay Plan ▬▬▬▬▬▬ The Town Council last adopted the pay plan for the Town of Fountain Hills in June 2004. It is imperative that the salary ranges for each position be updated on a regular basis to remain competitive in the market. Consequently, the Human Resources division has surveyed the salary ranges from competing towns and cities for like positions. The information from those surveys has resulted in the proposed pay plan for the 2005-06 fiscal year that will be presented at a future date as was done last year. Explanation of the Pay Plan ▬▬▬▬▬▬ 1. All Town positions, except that of town manager and presiding judge, are classified and covered in the pay plan. 2. Persons shall be recruited into the municipal service at the appropriate salary within that position, according to experience and/or market demand. 3. Advancement within the salary range shall be obtained on the basis of merit. 4. Human Resources recommends incremental increases based on the performance evaluation written by the employee’s Supervisor. The Town Manager is authorized to place the salary of each employee at a rate of pay within the salary range for the position title to which said employee is assigned. The rates of pay so established for various employees shall be effective at the time of review. 5. Increases may be granted after six months of service and annually thereafter. 6. The town manager shall make whatever administrative regulations, not inconsistent with the plan or the ordinances of the Town of Fountain Hills, he/she deems necessary, for the effective administration of the plan. 7. Employees in section 1 are exempt and are not eligible for any overtime compensation. Employees in sections 2 and 3 are hourly non-exempt and therefore entitled to overtime compensation. 8. The pay plan shall be reviewed annually. 9. The minimum and maximum rates and the ranges constituting the salary range of a position title shall supersede any previously adopted for said title. Fiscal Year 2005-2006 Budget - 170 - Town of Fountain Hills Town of Fountain Hills - Succession Plan – 2005 ▬▬▬▬▬▬ Objective: To develop Town of Fountain Hills’ employees as well as recruit for fundamental (key) positions ensuring the Town has a pool of diverse, qualified individuals Succession planning has been defined as “A process designed to ensure the continued effective performance of an organization by making provision for the development of and replacement of key people over time. Succession planning is generally considered to be a strategy of work force planning.” What does a succession plan do and why is it needed? • • • • • • • Ensures that employees are prepared and trained for the job and responsibilities of the future. Provides growth opportunities that help motivate and retain current employees. It shifts the idea from job progression to job expansion. Allows for the transfer of knowledge from key people in the organization to their successors using techniques such as mentoring and on-the-job training. Reduces stress on the new incumbent by making him/her better prepared to fill the role. Reduces workload of other team members who normally would have to pick up the duties until the new incumbent is up-to-speed. Reduces the manager’s time spent in assisting new incumbent becoming proficient. With an increasingly mobile workforce, steps need to be taken to insure the timely and competent replacement of positions. With the ever-changing workforce, succession plans are needed to survive in today’s global environment. It’s a regular review of existing staff, predicted turnover (voluntary and involuntary), retirements and extended absences, promotions or transfers, new hires, total need, and estimated gap. When a key employee suddenly leaves or becomes incapacitated, it can be crippling to an organization. With the employee goes key knowledge. The knowledge of an organization exists not in documents and databases, but in the collective mind of the organization – in the heads of people. A succession plan, then, is a type of knowledge sharing. Succession planning is a systems approach to identifying and developing future supervisors, managers and executives. Succession plans provide for continuity of operation in an organization. Ideally, but not always, the successor is groomed with the knowledge necessary to take over. Implementing succession planning systems must be integrated and directly linked, defined, and developed in tandem with organization mission, purpose, goals, objectives, and expected outcomes. In preparation of implementing a succession plan for The Town of Fountain Hills, Human Resources conducted several meetings with a committee consisting of Department Directors to identify key and “at risk” positions. It was quickly realized that in a small organization, the retention of key managers is even more crucial because the organization’s small size means there Fiscal Year 2005-2006 Budget - 171 - Town of Fountain Hills are likely to be few “surplus” managers available should someone leave. The consensus of this committee was that all members of management, as well as one-person divisions, are key or “at risk” positions. The group’s goal is to ensure that the Town of Fountain Hills has viable internal choices for each executive and/or director-level position that may come open in the next three to five years. The first step in developing the Town’s future leaders was to identify the existing talent pool. Extensive discussions regarding each department’s leadership status were undertaken. Individuals were identified as having leadership potential, and consideration was given to the Town’s need for diversity and technical expertise. The committee considered not only domain knowledge and technical expertise, but also a whole range of leadership skills including personality, temperament, empathy, charisma, decision-making ability and judgment. Getting the right fit is of the utmost importance. An interest survey for essential positions was also distributed to all Town staff. Once the participant pool was identified, the Committee recognized that in order to have viable internal candidates, managers need to personally contribute to the development of the Town’s future leaders. Management members will meet with candidates to discuss developmental needs and opportunities. It will be stressed that the employee’s development does not guarantee promotion, but is intended to assist them in developing the skills to be a marketable candidate in the event of a vacancy at a higher level of management. Primary development responsibilities are as follows: Town Manager develops Department Directors, Department Directors develop Assistant Directors or Division Heads, Assistant Directors develop Division Heads, Division Heads develop others reporting to them. It is essential to devise a critical path analysis so that candidates can get the personal development they need to make them ready for a promotion and the new responsibilities. This will be accomplished by enhancing the leadership skills of selected personnel through mentoring and coaching, preparing them for taking on the Town’s current and future organizational initiatives, enhancing communications at all levels throughout the Town, and facilitating individual development planning. Once the development activity has started to occur, it is important that key managers meet with those under their direct supervision during and after development activities to assess their progress. It is important to create additional goals and learning plans, as well as provide both positive and constructive feedback to them as they work toward their objectives. Although retention and leadership development programs are important, it’s still a good idea to have a strong recruiting component in our workforce plan. The Town of Fountain Hills is committed to recruiting people that have the skill not just to do their current job, but also the potential to do the job at least one level above them. This process has already begun with the hiring of an Assistant Public Works Director, a second Civil Engineering Inspector, and intense cross training of current personnel in areas of their interest and the Town’s future needs. However, at risk positions remain, such as Town Manager, Finance Director and I/T Coordinator. These positions are at immediate risk because of their functions and technical expertise within the organization. The Town has begun to address these “at risk” positions in the following manner: • With Council’s approval, an accounting clerk was hired in 2004. The addition of the accounting clerk has freed up the necessary time to allow the accountant to receive training, coaching, and continuing education in the responsibilities of the Finance Fiscal Year 2005-2006 Budget - 172 - Town of Fountain Hills Director. Although this process is well underway, it will be ongoing for a considerable amount of time. • Should the I/T Coordinator position become vacant, a temporary contract person will be necessary until a replacement can be hired. • Because we have been successful in hiring and/or providing additional training and continuing education for personnel that directly support the Directors, (i.e. Assistant Public Works Director, Accountant, Recreation Supervisor) the Directors have been allowed the flexibility to fill in for the Town Manager on an interim basis should that position become vacant. Again, although this process is underway, in order to be successful, it must be a long-term process. In conclusion, in today’s fast-changing, dynamic public sector world, leadership development is more critical than ever before. While many towns and cities have recognized this need over the years, few have sustained a method for developing and retaining leaders. Leadership development is not a new concept, but it is a continuing challenge to the public sector. The Town of Fountain Hills is meeting this challenge. It has to provide the men and women today who can run it tomorrow. The Succession Plan will be a visible and positive tool in that endeavor. Finally, and most importantly, succession plans should not be static and left to gather dust. As the Town grows it is crucial that the plan evolves alongside it to reflect, for example, any change in strategic direction or market position. It is the Town’s goal to review the Succession Plan every two years. Upon approval, communication will be made with all Town staff regarding implementation of the Plan. As the Town Council and Town Manager set out ambitious plans to improve services, the Town faces enormous challenges recruiting and retaining staff to implement. The workforce is aging. Retirements will increase over the next few years. Finding qualified candidates may be difficult in a wide range of occupations - engineering to name one. These issues provide many challenges for Town staff. They may need to redesign departments, modify existing classification patterns, or it may require new and innovative approaches to recruiting qualified candidates. It is the responsibility of the Town Council to determine the mission of our organization and provide the resources to hire the number of employees needed for services offered. It is the staff’s responsibility to classify those positions and facilitate the recruitment and selection of qualified candidates to perform the work. The purpose of this report is to outline a succession plan process that eliminates or reduces the chances of the organization being crippled by the loss of an individual. Planning Steps 1. Scope: It is important that the first step in a succession plan identify a manageable scope for the project. It should be something that can be accomplished within a reasonable period of time. The scope could involve the following: • Issue: Problems with a particular title or occupation. It could have short-term and longterm implications, such as recruiting for certain titles. Fiscal Year 2005-2006 Budget - 173 - Town of Fountain Hills • • Initiative: A special initiative as part of a strategic plan or operational plan. The Town may set a particular goal or objective that will be met by the initiative. Organization: This may mean the organization as a whole, department or division. 2. Context: The outcome of this step is to have a clear idea of where the Town is headed and to understand the impact of external factors on planning the scope. The questions to be considered in understanding the context of the planning effort require thoughtful reflection on the direction that the Town of Fountain Hills is taking, the changing culture of the organization, and its strengths and weaknesses. 3. Work: In this step, Town staff needs to clearly identify the functions to be staffed within the chosen scope and context identified. The focus will be on the functions, not the people doing them. To determine the desired future functions within their departments, managers will take into consideration the timing of the potential changes and be proactive to allow the necessary actions to be accomplished in the required time frames. 4. Demand: Having identified the future functions that will need to be staffed, the next step is to focus on the type and number of personnel that will be required to perform the functions. Focus should be on: • The knowledge, skills, abilities, and personal characteristics or competencies staff must have to be successful in performing each of the functions or positions; and • The number of staff needed with the knowledge, skills and abilities or competencies set. When the analysis on the type and number of personnel that will be needed to perform the functions is complete, some modification in expectations and capabilities may be needed. 5. Supply: This step in the planning process directs the managers to profile their workforce and determine what the supply of available workers will be within their departments. At this point, determining the supply assumes no hiring to replace the employees who leave. The supply is internal only. Managers will determine which employees now work within their departments and calculate the attrition rate. Past attrition may not be an accurate predictor of future attrition; however, it is one variable Town staff will use to help determine the future supply of employees necessary to provide the needed knowledge, skills and abilities for our organization. 6. Gaps: In this step a comparison of the expected staffing needs against the projected internal supply and focus on identifying if there are any gaps. The gaps will be in the following areas: • Excess staff performing obsolete or declining functions, or functions likely to be outsourced. • Inadequate supply of qualified people for positions in titles that will likely remain the same. • Inadequate supply of people with needed skillsets for positions that may require further classification action. Whether there is a gap for each title and, if so, the extent of the gap needs to be identified. The first part of this step involves identifying where candidates will come from for the titles or positions being considered. In the Demand step, titles to accomplish the new or modified Fiscal Year 2005-2006 Budget - 174 - Town of Fountain Hills functions are identified, but not where the qualified candidates would could from. In the Supply step, the workforce is characterized, but not evaluated, in terms of whether current employees will meet the supply needs of the agency for the titles in the new or revised functions. In the gap analysis, the issues regarding where to recruit to find the necessary employees are addressed. The managers conduct a gap analysis by comparing the internal supply of employees with the demand. Frank discussions need to take place regarding what staff will no longer be needed. 7. Priority: This step is a matter of prioritizing staffing gaps in terms of the biggest impact on the success of the organization, department, division, etc. It is a process that must include the direct input and agreement from the Town Manager and Council. The questions that follow need meaningful communication between the Town Manager and Council and the management staff. • Which staffing gaps can be handled in a routine way with a minimum commitment of resources? • Of the remaining staffing needs, what is the benefit of addressing each? • What would be the impact of not addressing each? • Based on the benefits and impact identified above, what is the relative priority of each of the needs? 8. Solutions: In this step, potential solutions are developed to meet the staffing needs on the priority list. Solutions typically fall in the broad categories of: • Position classification actions, including redefining titles and special salary treatments. • Recruitment/selection strategies to find and hire recent graduates or qualified candidates from other public or private sectors. • Retention strategies to encourage employees to stay with the Town. • Staff development strategies to prepare employees for specific positions. • Organizational intervention such as reorganization. • Knowledge transfer strategies to capture the knowledge of experienced employees before they leave the Town (cross training). By making provision for the development of employees to be qualified for fundamental positions that become vacant over time, the Town will continue to provide uninterrupted quality services to its customers. By cultivating talent from within the Town of Fountain Hills through planned development activities, those positions identified as critical to successfully providing core services and meeting the mission and goals of the Town can be more readily filled with internal talent. In summary, the succession plan is a management and planning tool to ensure a ready supply of internal talent for fundamental positions at all times. The Town of Fountain Hills is firmly committed to promotion from within, when qualified talent is available, for fundamental positions. However, the intent of the succession plan is not meant to eliminate the use of competitive internal and external recruitment and testing processes. The Town is also firmly committed to helping employees, regardless of race, age, gender, national original or disability, to develop their potential so they are prepared and qualified to assume positions in line with individual career goals and organizational requirements. Fiscal Year 2005-2006 Budget - 175 - Town of Fountain Hills Succession planning ensures that there are highly qualified people in all positions, not just today, but tomorrow, next year, and five years from now. Succession planning establishes a process that recruits employees, develops their skills and abilities, and prepares them for advancement, all while retaining them to ensure a return on the Town’s training investment. Succession planning involves understanding the Town’s long term goals and objectives, identifying the workforce’s development needs, and determining workforce trends and predictions In the past, succession planning typically targeted only key leadership positions. In today’s organizations, it is important to include key positions in a variety of job categories. With good succession planning, employees are ready for new leadership roles as the need arises, and when someone leaves, a current employee is ready to step up to the plate. In addition, succession planning can help develop a diverse workforce, by enabling decision makers to look at the future make-up of the organization as a whole. Fiscal Year 2005-2006 Budget - 176 - Town of Fountain Hills Glossary ▬▬▬▬▬▬ Accrual Basis A basis of accounting in which transactions are recognized at the time they are incurred, as opposed to when cash is received or sent. Actual vs. Budgeted Difference between the amounts projected (budgeted) in revenues or expenditures at the beginning of the fiscal year and the actual receipts or expenses, which are incurred by the end of the fiscal year. Adoption Formal action by the Town Council, which sets the spending limits for the fiscal years. Appropriation Specific amount of monies authorized by the Council for the purpose of incurring obligations and acquiring goods and services. Assessed Valuation A value set upon real and personal property by the County Assessor for the purpose of levying property taxes. Base Budget The ongoing expense for personnel, contractual services, commodities, and the replacement of equipment to maintain service levels previously established by the Council. Bond A municipality will issue this debt instrument and agree to repay the face amount of the bond on the designated maturity date. Bonds are primarily used to finance capital projects. • General Obligation (GO) Bond This type of bond is secured by the full faith, credit, and taxing power of the municipality. • Revenue Bond This type of bond is secured by the revenues from a specific source such as gas taxes or water revenues. Budget Financial plan of estimated expenditures and anticipated resources adopted for a specific period of time outlining a plan for achieving council goals and objectives. Budgetary Basis The method used to determine when revenues and expenditures are recognized for budgetary purposes. Capital Budget The appropriation of bonds or operating revenue for improvements to city facilities that may include buildings, streets, and parks. Fiscal Year 2005-2006 Budget - 177 - Town of Fountain Hills Carry Over Year-end savings that can be carried forward to cover any one-time expenses such as supplies, equipment, or special contracts. Cash Basis A basis of accounting in which transactions are recognized only when cash amounts are increased or decreased. Contingency/Reserve An amount set aside as available, with Council approval, to cover unforeseen expenditures, emergency expenditures, or revenue short falls. Debt Ratio Total debt divided by total assets. Debt Service Principal and interest payments on outstanding bonds. Estimated Revenue The amount of projected revenue to be collected during the fiscal year. Expenditure Represents a decrease in fund resources. 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 fouryear expenditure limit based on revenues received. Fiscal Year Any period of twelve consecutive months establishing the beginning and the ending of financial transactions. For the Town of Fountain Hills, this period begins July 1 and ends June 30. Full-Time Equivalent Position (FTE) A position converted to the decimal equivalent of a full-time position based on 2,080 hours per year. For example, a part-time typist working for 20 hours per week would be equivalent to a 0.5 FTE. Fund A fiscal and accounting entity with a self-balancing set of accounts recording cash and other financial resources. Fund Balance A balance or carry over that occurs when actual revenues exceed budgeted revenues and/or when actual expenditures are less than budgeted expenditures. Fiscal Year 2005-2006 Budget - 178 - Town of Fountain Hills General Fund The fund used to measure all financial transactions of the municipality except those required by law or agreement to be accounted for in another fund. Highway Users Revenue Bond Proceeds used solely for street and highway purposes and require voter authorization. Bonds are payable from highway user revenue up to 50% of total received for the past twelve month period (stipulated by state law). Highway Users Revenue Fund (HURF) This revenue source consists of state taxes collected on gasoline, vehicle licenses, and a number of other additional transportation related fees. These funds must be used for street and highway purposes. Infrastructure Facilities that support the continuance and growth of a community. Examples include roads, water lines, sewers, public buildings, and parks. Intergovernmental Revenue Federal and state grants and other forms of revenue (e.g. state sales tax, state income tax, gasoline tax, motor vehicle license). Long Term Debt Debt with a maturity of more than one year after date of issuance. Management Indicators A measurable means of evaluating impact of budget on achieving stated objectives. Modified Accrual Basis of Accounting Basis of accounting according to which; a) revenues are recognized in the accounting period in which they become available and measurable, and b) expenditures are recognized in the accounting period in which the fund liability is incurred, if measurable, except for un-matured interest on general longterm debt and certain similar accrued obligations, which should be recognized when due. Municipal Property Corporation (MPC) Bond Bonds that are backed by the excise taxes of the Town including local sales tax, franchise tax, state shared sales tax, and auto lieu tax. The MPC is a non-profit corporation established for the purpose of issuing debt to purchase municipal facilities, which it leases to the Town. Objectives A measurable output that an organization strives to achieve within a designated time frame. The achievement of the objective advances an organization toward a corresponding goal. Operating Budget Day-to-day costs of delivering city services. Fiscal Year 2005-2006 Budget - 179 - Town of Fountain Hills Performance Indicators Measurement of service performance indicators that reflect amount of money spent on services and the resulting outcomes at a specific level of services provided. Property Tax The total property tax levied by a municipality. Arizona’s municipal property tax system is divided into a primary and secondary rate. Primary Tax Arizona statute limits the primary property tax levy amount and municipalities may use this tax for any purpose. Secondary Rate Arizona statute does not limit the secondary tax levy amount and municipalities may only use this levy to retire the principal and interest or redemption charges on bond debt. Resources Total amounts available for appropriation including estimated revenues, bond/loan proceeds, fund transfers, and beginning fund balances. Revenue Financial resources received from taxes, user charges, and other levels of government. State-Shared Revenue Includes the Town’s portion of state sales tax revenues, state income tax receipts, motor vehicle in-lieu taxes. 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. Transfer Movement of resources between two funds. Example: An interfund transfer would include the transfer of operating resources from the General Fund to the Street Fund. Fiscal Year 2005-2006 Budget - 180 - APPENDIX A REPORT TO FOUNTAIN HILLS TOWN COUNCIL Proposed COMMUNITY RELATIONS COORDINATOR, GRANT WRITING AND INTERGOVERNMENTAL RELATIONS PROGRAM Prepared by Timothy G. Pickering, Town Manager April 29, 2005 Executive Summary Establishment of a Public Information and Grant Writing Program was one of six goals set by the Town Council for FY2005-06 to ensure that information is communicated to the public in a professional, understandable, succinct, comprehensive, timely and factual manner via numerous channels of communication. One key to achieving this goal is placing a communications officer on staff. The primary responsibility of this position would be to foster understanding between the Town of Fountain Hills and its citizens and neighboring communities. The Council is empowered to make decisions in the best interests of the populace and a well-informed citizenry could communicate their desires, questions and concerns to council members more effectively. Additionally, a communications officer can assist in achieving another of the Council’s goals, that of improving our intergovernmental relations. Communicating with other towns’ communications officers and coordinating meetings between jurisdictions would be valuable. The importance and value of this position lies in providing the public and the media with a readily accessible, single point of contact who is skilled at managing the flow of information in order to project a positive view of our Town. The Compass and Other Communication Duties Presently, a primary source of Town information is the Compass newsletter, mailed to all residents four times a year. The Parks and Recreation Department’s executive assistant currently has the responsibility of gathering, writing, editing, and formatting the Compass. Increasing publication frequency of the Compass to six issues per year would facilitate ‘getting the message out’ about services, programs, town-related issues, ‘hot topics’, new regulations, and Public Service Announcement in a timelier manner. However, the aforementioned executive assistant would be hard pressed to publish more frequently due to numerous other responsibilities and complexity of issues to be communicated. If a communications officer existed at the present time, information regarding zoning and height issues, property rights, West Nile virus and its implications for Fountain Hills, the County Attorney’s program on how to counteract identification theft, the concern about the danger of the upcoming fire season, employee hirings and resignations, and progress being made on Town projects (such as the Skate Park, Splash Pad, Avenue of the Fountains, and the new Town Hall) could be communicated to our citizens more effectively. Currently the Town staff struggles with providing this information to our residents. The flow of public information deserves full-time attention. Media Contact The Fountain Hills Times, the Arizona Republic, the Scottsdale Tribune, 101 North magazine, KFHX Radio, Cox Cable, area television stations, and all other forms of local/state/national media could benefit from a designated point of contact for information. Report to Council Page 1 of 8 April 29, 2005 News Releases are currently prepared by the Town Manager for distribution to The Fountain Hills Times, Arizona Republic, Scottsdale Tribune, and Take 5, a new publication in Fountain Hills. Requests for information by the media are frequently considered “urgent.” This diverts the Town Manager’s attention away from meetings, issues, and projects crucial to the Town in order to accommodate the requests of reporters for interviews or to prepare press releases. Developing a strong, positive, working relationship with various media personnel is imperative. Getting the Town’s message known to potential residents, lenders, vendors, visitors, builders, developers, etc., strengthens the appeal of the Town for all. All press releases, media alerts, and media contacts would be prepared by a communications officer to timely provide essential information and avoid possible misunderstandings. Existing Communication Responsibilities Under the existing staffing scenario in the Town, communications tasks are distributed throughout the organization per the following examples: • • • • • • • Designing and printing posters for recreation events (e.g., Concerts in the Park) is done by Recreation staff Our Administrative Clerk is responsible for communicating with Univision, the Spanish TV channel Information Technology decides programming for Channel 11 Town Manager interfaces with media contacts Director of Public Works handles communications dealing with matters such as West Nile Virus and flood management Public Service Announcements on matters such as ID theft are handled by Sheriff’s Department The Executive Assistant to the Town Manager drafts press releases The addition of a communications officer will free up the existing staff, allowing them to focus on their primary duties, and provide a resource for them when they require communications assistance. Not having a point person on staff who is available to handle the media when the Town Manager is not in his office has, on more than one occasion, created undue stress on Town staff due to the dogged nature of media contacts. A case in point involved a reporter who contacted the Town Manager’s office with questions when the Town Manager was attending a meeting in Phoenix. Before the Town Manager could communicate to his staff via his assistant, the reporter contacted a member of the staff and represented that he had license from the Town Manager to communicate directly with that staff member. This led to inaccuracies in the story and unnecessary pressure on the staff member. It is logical to assign the responsibility for media communication to a staff member when the Town Manager is absent. However, due to the limited size of Town staff, their present workload and lack of expertise in communications, it is not feasible to give that additional responsibility to a current staff member. Report to Council Page 2 of 8 April 29, 2005 The staff responds to approximately 20 media requests for information per month. For example, we respond to emails and phone calls from reporters with deadlines, produce press releases, send media clippings to advisory commissions, and even handle visits from television reporters, such as a recent visit from Univision, the Spanish TV station doing a feature story on the fountain. The Town also unfortunately misses opportunities because we lack appropriate personnel to send to sessions, such as a recent grant writing session provided by the City of Scottsdale and municipal league. The Town could be much more proactive in marketing the Town’s services and amenities with a communications officer. Improving Channel 11 Channel 11 is a valuable communications tool that is presently underutilized. A communications officer could assume the responsibility for: • • • Creating in-house programs to run on Channel 11, e.g., mini-documentaries or interviews on the planning and zoning process, code enforcement, fire safety, etc Evaluating and making recommendations to Information Technology (IT) staff for upgrades to Channel 11 and the Town website Completing the Channel 11 intergovernmental agreement paperwork Difficult Times and Emergencies Complex and difficult times occur in all municipalities. Fountain Hills has experienced some of these: the state land issue, budget cuts, lay-offs, employee resignations, fire service issues, lawsuits, etc. A professional communications officer would be indispensable in getting correct information to the right people, at the right time, and in a meaningful manner. A good example would be the concern over holiday decorations that evolved late last year. Town staff was not in a position to handle the speed in which stories were circulating. A better informed citizenry would have been less troubled. Other issues that have occurred in the past wherein failure to communicate with the public caused confusion were funding of the new Town Hall, tax bill education, and truck hauling routes. Furthermore, annexation of the State Trust Land will require a tremendous amount of communication with our citizens. Without a steady flow of information, residents will not be familiar with the intricacy of issues surrounding this important Town issue. In the event a full-blown emergency situation ever evolves in the Town, a communications officer would be indispensable. This position would be responsible for rapidly communicating information to Town residents about the nature of the emergency and providing instructions or procedures that could ultimately affect their safety and/or health. Developing, maintaining and monitoring a crisis communication plan would be the responsibility of this position. Report to Council Page 3 of 8 April 29, 2005 Establishing a Grant Writing Program The communications officer could make recommendations for the establishment of a grant writing program. Some of the skills required by a communications officer and a grant writer are similar. When communications responsibilities are less demanding, grant writing could be accomplished by the communications officer. The communications officer could appropriately structure, oversee and coordinate the program, as well as contribute to the decision-making process regarding the value of potential grant applications, ensuring that possible strings attached are properly investigated. Potential Mission and Scope of Responsibilities Mission To present the Town of Fountain Hills as a unique, quality community; provide honest, timely, accurate information; and develop opportunities for citizen participation in local government. Community Outreach Programs 1. Citizen Leadership Institute 2. Volunteer of the Year Publications 1. Town Newsletter – published bi-monthly 2. New Resident Packets – delivered through building inspectors, Town events and available at Town Hall 3. News Releases 4. Town Manager’s Update – submit information, prepare when needed 5. Town Scorecard 6. Promotional Publications a. Brochures b. Flyers c. Targeted, issue-driven publications or packets d. Media kits e. Postcards f. Posters g. Door hangars h. Banners i. Bookmarks j. Invitations k. Time capsules 7. Communication Plan 8. Special Event Planning Guide 9. Graphics Standards Manual Report to Council Page 4 of 8 April 29, 2005 10. Media Relations Policy Guide 11. Publication and Graphic Design Assistance Electronic Communications 1. Website – Work with IT and departments to redesign. 2. Cable Channel 11 Grant and Award Applications 1. Arizona Commission on the Arts grants 2. Youth program grants 3. Various award applications on behalf of the Town, Town officials and employees, and Fountain Hills citizens Government Relations 1. Coordinating meetings with other jurisdictions 2. Monitoring legislation that will have an impact on the Town, such as the recent cable bill 3. Learning about issues in other jurisdictions from their communications officers Special Events 1. State of the Town Reception 2. League of Cities booth 3. Other conference booths & displays 4. International visitors 5. Groundbreakings 6. Dedications 7. Town anniversaries 8. Special informational campaigns & events 9. Town Hall grand opening Upcoming Policy Research & Development Projects 1. Publication style manual 2. Graphics standards guide 3. Logo usage 4. Website policies 5. Cable Ch. 11 policies Media Relations 1. Develop and maintain working relationships 2. Respond to formal public information requests 3. Respond to media inquiries 4. Write & issue news releases, articles 5. Maintain media contact list 6. Write columns for Town Manager 7. Support reporters at Town Council meetings 8. Orientation and tours for new reporters Report to Council Page 5 of 8 April 29, 2005 Town Council Support 1. Community outreach programs & events 2. Committee support and meeting reports 3. Research and special reports 4. Speaking points 5. Proclamations 6. Maintain current biographical information 7. Photography – Coordinate new individual and group photos after each election, archive, distribute copies to members and media 8. Award applications for members 9. Media relations Other Services 1. Strategic communications planning for Town initiatives 2. Photography 3. Citizen inquiry responses 4. Division equipment research and purchasing 5. Volunteer coordination Professional Development The Town of Fountain Hills supports employees’ efforts to “sharpen the saw” by participating in professional development opportunities that expand job knowledge and skills. In addition to college, university and specialized skill classes, the communications officer is encouraged to join and actively participate in such professional organizations as: 1. City/County Communications and Marketing Association (3CMA) 2. Arizona City/County Management Association (ACMA) 3. International City/County Management Association (ICMA) 4. American Society of Public Administration (ASPA) Attached as Appendix A is an example of information that could be prepared by a communications officer to keep our citizens up-to-date on the operation of the Town. Furthermore, our tax structure could be explained more thoroughly to our citizenry. Measures of Success The success of this position would be determined by: • • • • • Increasing the number of press releases issued by the Town Measuring increased programming on Channel 11 Following up with media when errors occur Increasing the number of articles covering important Town issues or events Establishing and implementing a grant writing program Report to Council Page 6 of 8 April 29, 2005 Comparison to Arizona Cities of Similar Size In the 2000 Census, Fountain Hills’ population was approximately 20,235. At that time, eleven other cities in Arizona were in the 18,000 to Fig. 1 35,000 population range. Of these Town’s, 82% Communications currently have Public Information or Town/City Population* Officer on Staff Goodyear 18,911 Yes Communications Officers (See Fig.1). Rapidly growing Queen Creek, a town populated by 4,316 people according to the 2000 Census, now estimates their population to be around 19,000. Queen Creek has had a PIO since 1998, then a half-time position. Of note, the present PIO currently has a 3.5 FTEs in the communications department. Kingman Nogales Prescott Valley Casa Grande Surprise Apache Junction Oro Valley Bullhead City Prescott Avondale 20,069 20,878 23,535 25,224 30,848 31,814 31,934 33,769 33,938 35,883 No Yes Yes No Yes Yes Yes Yes Yes Yes *2000 Census As our Town continues to grow in population, services and amenities, becoming even more attractive to new businesses and an increasingly popular destination for visitors, the need to manage the flow of information to the public will become increasingly more critical as more and more media channels are requesting information. Summary In summary: • • • • • • • • • We need a point person to ensure information is consistently, accurately and quickly disseminated to the public Channel 11 needs to provide more information to our public, particularly for parents who do not have time for other mediums. The frequency and types of media coverage on Fountain Hills continues to escalate, taking an increasing amount of the Town Manager’s time away from the business of running the Town. Current workloads and limited staff preclude assigning this responsibility to a current staff member, either as a permanent duty or on an “acting” basis when the Town Manager is out of the office. Efficiency of the staff will greatly increase as the Public Works Director, Parks and Recreation Director, Recreation Supervisor, Finance officer, Town Manager, Parks and Recreation executive assistant, administrative clerk, and IT coordinator are freed up to focus on their primary responsibilities. Is it important to develop a grant program in order to capture all available dollars to benefit the Town “Hot topics” need to be addressed immediately. Our budget is balanced and able to absorb the cost of the additional staff member. In fact, Administration salary and benefits increased $10K over last year’s budget. If a communications position is added, the Town’s administration department would still be 3-1/2 positions less than three years ago. Report to Council Page 7 of 8 April 29, 2005 APPENDIX A Report to Council Page 8 of 8 April 29, 2005 TOWN OF FOUNTAIN HILLS PUBLIC WORKS DEPARTMENT MEMO TO: Tim Pickering, Town Manager DT: February 12, 2005 FR: Tom Ward, Director of Public Works RE: Additional Staff P&Z Division Attached is the request for a part time planning technician to improve building permit review time and provide better customer service. The first question we always ask is why don’t we simply cross-train the existing staff to perform this task? If you look at the attached workload and how it continues to increase, other staff do not have the time for this work. Secondly, I agree with Richard that a consultant would not be cost effective, but beyond that, consultants tend to perform one function and don‘t care to multitask, especially at the front counter. Our thought is a person that is possibly retired or took early retirement and is looking for part time work as a supplement to their income and does not need benefits and a health care program. This person might also be a student in need of extra income on a part time basis. Training in this capacity should be minimal and they would have plenty of staff available if they had questions during the learning curve. The comment on employee retention is very important when we consider all we have endured over the last 18 months. Staff always has to play catch-up if they get sick or take vacation time. With this additional help the small tasks should get completed in their absence and counter service is maintained without overtaxing other staff members. At this time we cannot estimate how long this position will be necessary. We plan to cross-train existing staff to perform these tasks as well, so that in the future when workloads decrease we would phase out this position when appropriate. Therefore, I am recommending a part time planning technician for the Planning & Zoning division. Estimated annual cost: $15,000 to $20,000 (no benefits—approximately 1000 hours/year). Job description to follow. Att. C: Richard Turner Joan McIntosh Julie Ghetti D:\Budget\Budget 5.doc TOWN OF FOUNTAIN HILLS OFFICE OF PLANNING AND ZONING INTER OFFICE MEMO TO: Tom Ward, Director of Public Works DT: February 1, 2005 FR: Richard Turner, Planning and Zoning Administrator RE: Request to Consider Additional Planning Staffing Please consider this more of a topic for discussion than an actual request. I put it in these terms since I don’t feel comfortable asking for additional help, having only been here one month. However, the budget process is upon us and in the time that I have been here, I have noticed that both of the Planners are extremely busy and frequently fall behind in their work. I have also become aware of some work situation dynamics that support the idea of adding a part-time planning technician to the division staff. A significant part of the planner’s job responsibilities is plan review prior to the issuance of a building permit. Fully 40% of the planners combined work time is spent on this function. While a lot of this work is complex and requires the careful attention of a professional planner, there are also many permits that do not. Last year, approximately 33% of all building permits issued were for pools and fences. An employee could perform reviews of this type with a lower skill level than a seasoned planner. In 2002, the Building Safety Division issued 780 building permits. In 2003, the number of permits increased 9% to 847. Last year, the number went up to 889 for a 5% increase over the previous year. While these numbers are not substantial, they do indicate a recent upward trend in activity. As you know, an increase in building permit activity translates to an increase in plan review activity by the planners. I recall that you recently commented that you had received a lot of complaints over the last 6months, many of which dealt with the length of time it was taking to get plans reviewed by the department. I would like to suggest that we consider hiring a part-time (20 hours per week) planning technician to do plan review and help with counter coverage. Creating and filling this position would have the following advantages: 1. This employee would review most, if not all of the simplest building permits for zoning compliance, which would reduce our turn around time for plan review. 2. With a planning tech taking on a significant amount of the plan review function, (1040 out of total of 1664 hours), the other planners in the section would be able to spend more time on more complex projects and provide improved customer service. D:\Budget\Budget 6.doc Page 1 of 2 3. A planning tech would improve our ability to provide adequate service at the front counter, particularly over the lunch hour. 4. A planning tech would help us in the event we are short staffed in the future due to vacations, illness or position vacancy. I am hopeful that a better solution to this workload issue will come out of upcoming process discussion. However, I didn’t want to miss the opportunity to present this type of a solution, especially given the timing of the preparation of the budget. I am available to review this idea at your convenience. RT/jeb D:\Budget\Budget 6.doc Page 2 of 2 TOWN OF FOUNTAIN HILLS OFFICE OF INTER OFFICE MEMO TO: Tim Pickering, Town Manager DATE: April 8, 2005 FR: Don Clark, Parks Supervisor and Mark Mayer, Director RE: Parks Division Staff Request Justification for Fiscal Year 2005-2006 The Parks Division is requesting to fill one position, a Parks Operation Lead, that was eliminated during the budget cutbacks during Fiscal Year 2002-2003. The expenditures for the salary and benefits would be budgeted under Four Peaks Neighborhood Park as this position will maintain Four Peaks Neighborhood Park and Desert Vista Neighborhood Parks. This position is needed because Little League is increasing its usage and will upgrade fields at Four Peaks Neighborhood Park. Additionally, the future spray pad and amenities constructed as part of Phase II Improvements require the Fountain Park Parks Operation Lead to focus entirely on Fountain Park. In past years, this position has managed both Fountain Park and Desert Vista Neighborhood Park. Finally, adding a Parks Operation Lead would allow for adequate supervision at the skate park facility that will be constructed at Desert Vista Neighborhood Park during Fiscal Year 2005-2006. This person also would be able to focus on maintenance and operational needs at this facility. The Parks Division is planning to fill the Parks Operation Lead position the beginning of the fourth quarter during Fiscal Year 2005-2006, at which time the skate park should be completed. The Parks Division is dedicated to professionally maintain the Fountain Hills parks system. By supporting the request to add a Parks Operations Lead position to the Department, staff will be able to have the Park Operations Lead at Fountain Park focus on the additional maintenance and operations duties. Providing the Parks Division with one more qualified staff member will significantly enhance our ability to provide safe, quality recreation facilities throughout the Fountain Hills park system. APPENDIX B APPENDIX C TOWN OF FOUNTAIN HILLS TWENTY YEAR FINANCIAL OVERVIEW June 14, 2005 (To be revised after completion of strategic plan December 2005) Prepared by: Julie A. Ghetti, MPA, CPA, CGFM Timothy G. Pickering, CEcD, CM TWENTY YEAR FINANCIAL OVERVIEW Fiscal Years 2006 - 2025 Introduction Since incorporation the Town has enjoyed riding a wave of economic prosperity due to the explosive growth of the mid to late 1990’s. The Town took advantage of the building boom and paved streets, built four new parks and a new Community Center/Library Museum, preserved 354 acres of open space, and provided many services to enhance the quality of life of the citizens of Fountain Hills. However, the ride ended with the economic slump of the early 2000’s that has forced many cities and towns across the country to re-evaluate their financial future. The financial future for Fountain Hills through FY2025 continues to be cautiously optimistic, with a heavy reliance on construction related revenues (construction sales tax, building permit fees) and state shared revenues. The projection for the next eight years provides sufficient resources to fund 20 YEAR GENERAL FUND REVENUE/EXPENDITURE PROJECTION the current level of ongoing operations $35,000,000 without spending down the reserve $30,000,000 balance but includes one-time revenue $25,000,000 sources. The revenue projections $20,000,000 are based on another five years of moderate growth in $15,000,000 residential and commercial $10,000,000 construction activity. However, $5,000,000 by FY2013 the FY06-07 to FY09-10 FY10-11 to FY14-15 FY15-16 to FY19-20 FY20-21 to FY24-25 Town will have TO TAL PRO JEC TED EXPENDITURES TO TAL REVENUE (w/trust land) TO TAL REVENUE (w/o trust land) much less inventory of vacant land that can generate sales tax revenue; additional revenue sources will need to be identified as construction revenue declines. Additionally, the projection assumes that Fountain Hills will lose share of state revenues to other surrounding communities that are experiencing explosive growth, beginning in FY2006-07 (the first year after the next mid-decade census). D:\Budget\Budget 11.doc ii Projects included in the CIP form the basis for appropriations in the annual budget and will affect the Town’s budget process ten to twenty years into the future. In order for the Town to prevent the deterioration of community infrastructure, continue to enhance the quality of life, and provide needed services to the citizens it is necessary for the government to identify the resources that will fund capital improvements each year. Finalization of the capital improvement plan will be completed through the strategic planning process. Summary Staff has prepared this report as part of an annual review process and as a blueprint for future capital budgeting and to assist residents to understand financial implications as part of the Town’s strategic plan. The plan is flexible to allow the public’s input through the strategic planning process, which may provide additional recommendations for other capital priorities or eliminate some projects. As the table below indicates if all proposed capital projects and the associated operating costs are approved, the cumulative shortfall is ($59M) over the 20-year period including annexation of the state trust land. SUMMARY OF CAPITAL PROJECT FINANCING FY06-10 Fund Balance Financing Potential Surplus Revenues & Expenditures ExciseTax Revenue Development Fee Revenue HURF Revenue Less CIP Expenditures Operating Cost increases from Capital Projects CIP Funding Deficit including State Land Remove State Land Revenue/Project CIP Funding Deficit without State Land $5.6 $12.3 $8.9 $3.8 $4.0 ($38.2) ($0.3) FY11-15 FY16-20 (in millions) $6.5 ($4.7) $5.3 ($9.3) $12.1 $13.5 $3.1 $1.6 $5.0 $5.0 ($40.1) ($33.8) ($2.3) ($5.6) FY21-25 ($33.7) ($27.5) $15.1 $0.9 $5.0 ($13.0) ($6.1) ($3.9) ($10.3) ($33.3) ($59.3) $0.0 ($10.1) $8.6 ($6.3) ($3.9) ($20.4) ($24.7) ($65.7) What are Capital Improvements? Capital improvements are the “bricks and mortar” of the Town – streets, dams, bridges, parks and parks buildings, one-time acquisitions of equipment over $10,000, including municipal facilities such as the new Town Hall. Projects in the CIP generally cost more than $10,000 and have a projected minimum life span of five (5) years. Financial Plan A financial trend analysis combines budgetary and financial information with economic and demographic data to create a series of local government indicators that can be used to monitor changes in the Town’s financial condition. The challenge is for the Town to absorb, within D:\Budget\Budget 11.doc iii available financial resources, increasing operational costs associated with an ever-increasing population but also include funding for capital projects. Projecting revenues and expenditures over a twenty-year period is part science and part art – the further out the projection, the less reliable the estimate. The revenue forecast assumes the following: • • • • • • • • The local sales tax rate remains at 2.6% over the twenty year period Future year revenue forecasts are based on statistical analysis and historical trends, taking into account a drop in revenue sharing from decreased population growth Revenues are based on “most likely” scenario The legislature will not reduce or eliminate state revenue sharing The residential and commercial activity will continue at a moderate pace until buildout Reserved fund balance is excluded as available resources One time revenues (construction related) are included as available resources The development fees are projected using the current rate The projection of operating expenditures over the next twenty years assumes the following: • • • • • • • An average inflation factor of 5% for each fiscal year No increase in level of services for FY2006 through FY2025 The Target tax rebate is eliminated in FY07-08 The forecast does not incorporate unanticipated policy changes or adjustments in spending priorities The capital project figures are based on current dollars Community Center bond payments are eliminated in FY20-21 One time costs incurred in FY05-06 are removed before applying inflation factor Many capital improvements and purchases of large pieces of equipment will be included in the operating budget on a “pay-as-you-go” basis. In our analysis recurring large equipment replacement expenses for new heavy equipment, street sweepers, and continuing costs such as street asphalt overlay are included in the capital projects budget. The operating budget is for costs associated with providing ongoing services such as police and fire protection, building inspection, parks and recreation activities, and street maintenance. Ongoing costs are tied to ongoing revenues (i.e., sales tax, user fees, intergovernmental revenues). This first draft of the capital improvement plan includes costs for long-term capital projects, which add to the capital assets or infrastructure of the Town. These include new facilities, land, major infrastructure improvements on streets, etc. and include prioritization of which projects will be decided as part of the strategic plan process. Almost all potential projects include options from the first Town Hall are included in this report. The projects are usually financed on a longterm basis with revenue sources such as development fees, grants and intergovernmental sources. The Town has adopted a policy that considers pay-as-you-go financing to be the primary source of funding capital projects when possible. D:\Budget\Budget 11.doc iv Financial and planning considerations help staff identify projects that should be included in the annual CIP, and how those projects will be integrated into the Town’s annual budgeting process. Capital projects should support Council goals and the strategic plan objectives and be consistent with the Town’s General Plan. It should also prevent the deterioration of the Town’s existing infrastructure and protect its investment in parks, streets, and municipal buildings. Capital projects should provide all geographic areas of the Town with comparable quality and types of services. Financial Resources In the past, operating revenue has been used to fund one-time projects, such as the Community Center. In the future, this revenue source will be in the form of a cash transfer from the General Fund of any surplus over operating costs to the Capital Projects fund for future projects. The Excise Taxes (Local Sales Tax) are primarily used for general operating costs (2.2%). However, the remaining .4% is dedicated to specific purposes: Mountain bond debt payment (.2%) Civic center bond debt payment (.1%) Downtown development costs (.1%) Development fees are collected from construction permits and are limited to specific projects for which they were created. These funds are categorized as General Government, Streets, Parks & Recreation, Law Enforcement and Open Space. The chart below highlights the decline in building permit activity over the next twenty years. 20 YEAR PROJECTED DEVELOPMENT FEES $1,400,000 $1,200,000 $1,000,000 $800,000 $600,000 $400,000 $200,000 $0 FY06-07 to FY09-10 FY10-11 to FY14-15 Total w/o State Trust Land D:\Budget\Budget 11.doc FY15-16 to FY19-20 FY20-21 to FY24-25 Total w/ State Trust Land v Bonds are issued in several forms. State law requires voters to authorize general obligation and revenue bonds by election. State law also authorizes other forms of debt to be issued without voter approval. These alternate financing sources include Municipal Property Corporation (MPC) bonds. Grants are available for various types of projects through different sources and governmental agencies. If capital grants are included in the budget as a funding source, the project will not proceed until the grant is awarded. A grant-funded project may also require Town matching funds, which should also be clearly stated in the project description. The twenty-year financial summary below (20 Year Capital Improvement Plan Resources and Expenses) summarizes the financing potential available, sources of revenue, proposed capital projects and the remaining capital projects balance (which is cumulative). Available HURF (Highway User Revenue Fund) resources are based on the average expenditures for major road maintenance within the streets budget. FY06-10 General Fund Gen Govt Capital Financing Potential from Fund Balance Remaining Capital Projects Balance FY11-15 FY16-20 FY21-25 $2.8 $0.0 $0.0 $4.1 $4.1 ($8.8) ($8.8) ($36.7) Add State Trust Land Revenue $0.0 $10.1 $12.4 $6.3 New Capital Projects Balance $0.0 $14.2 $3.6 ($30.4) Excise Tax Fund Mountain Bonds Fin Potential Remaining Balance $0.1 $1.0 $1.0 $2.2 $2.2 $7.5 $7.5 $13.7 Civic Center Bonds Fin Potential Remaining Balance $0.2 $0.3 $0.3 $0.7 $0.7 $1.6 $1.6 $4.7 Downtown Development Fin Potential Remaining Capital Projects Balance $0.5 $0.5 $0.5 $2.9 $2.9 $5.6 $5.6 $8.7 Development Fees Parks & Rec Financing Potential Remaining Capital Projects Balance $0.5 $0.0 $0.0 ($19.4) ($19.4) ($37.9) ($37.9) ($37.6) Open Space Financing Potential Remaining Capital Projects Balance $1.5 $0.3 $0.3 $0.5 $0.5 $1.1 $1.1 $1.4 Streets and Highways (HURF) Street Capital Financing Potential Remaining Capital Projects Balance $0.0 ($5.8) ($5.8) ($8.1) ($8.1) ($9.1) ($9.1) ($13.8) ($3.6) ($7.0) ($27.7) ($53.2) TOTAL As the Town approaches buildout the available resources from construction related activity will begin to decline in FY08-09 with a deficit projected for FY14-15. If the state trust land is annexed into Fountain Hills the Town construction related revenue will prolong the deficit until FY18-19. The mountain bond payments will be eliminated in FY16-17 and Civic Center bond D:\Budget\Budget 11.doc vi payments will be eliminated in FY19-20. These bond payments are funded from local sales tax revenues that were dedicated by the Council for this specific purpose. Improving The Long Term Financial Picture The following options to improve the scenario above will be presented for consideration following adoption of the strategic plan: 1. Eliminate major capital projects - this solution, although easily accomplished, would have a cumulative negative impact on the Town infrastructure. This could create a significant future financial burden for Fountain Hills’ citizens as well as increased liability with insufficient maintenance. Fountain Hills has a reputation of one of the “World’s Ten Best Places to Live” and that should be valued. Prioritizing capital projects will be determined during the strategic plan process. 2. A review of the current development fee structure is being performed to align the cost of the capital projects with the resources. This will be repeated every five years. 3. Revenue enhancements – additional sources of revenue (other than issuing debt) are a primary property tax, liquor license permit fees, updating the planning and zoning fees, revising the license fees, etc. Once the strategic plan is adopted, this report will be updated to reflect the citizen’s priorities and long-term solutions will need to be considered at that time. Council approval of this 20-year financial and capital improvement plan at that time does not appropriate the proposed capital projects; however, the plan does demonstrate to the public the Town’s commitment to financial planning for the future. D:\Budget\Budget 11.doc vii Project Cost Summary by Category FY06-10 FY11-15 FY16-20 FY21-25 20 Year Total Downtown Improvements Equipment Facilities Open Space Parks Street Improvements Traffic Signals $4,655,000 $1,058,000 $1,000,000 $2,600,000 $5,963,220 $18,028,234 $820,000 $0 $0 $970,000 $1,580,000 $6,550,000 $5,250,000 $1,000,000 $0 $18,000,000 $19,000,000 $8,065,213 $5,922,194 $0 $0 Total Project Costs $34,124,454 $34,585,213 $31,752,194 $16,628,899 $113,490,760 Operating Cost Summary by Catergory FY06-10 FY11-15 $0 $4,655,000 $753,000 $4,361,000 $3,000,000 $15,800,000 $3,600,000 $3,600,000 $0 $42,963,220 $9,275,899 $41,291,540 $0 $820,000 FY16-20 FY21-25 20 Year Total Downtown Improvements Equipment Facilities Open Space Parks Street Improvements Traffic Signals $0 $0 $0 $94,000 $186,000 $0 $47,412 $0 $227,000 $831,000 $175,000 $1,031,000 $0 $79,020 $0 $295,000 $2,205,000 $175,000 $2,890,000 $0 $79,020 $0 $295,000 $2,205,000 $175,000 $3,345,000 $0 $79,020 $0 $817,000 $5,241,000 $619,000 $7,452,000 $0 $284,472 Total Operating Costs $327,412 $2,343,020 $5,644,020 $6,099,020 $14,413,472 FY16-20 FY21-25 Total Cost Summary FY06-10 FY11-15 Downtown Improvements Equipment Facilities Open Space Parks Street Improvements Traffic Signals $4,655,000 $1,058,000 $1,000,000 $2,694,000 $6,149,220 $18,028,234 $867,412 $0 $0 $1,197,000 $1,875,000 $7,381,000 $7,455,000 $1,175,000 $175,000 $19,031,000 $21,890,000 $8,065,213 $5,922,194 $79,020 $79,020 Capital Improvements Grand Total $34,451,866 $36,928,233 $37,396,214 $22,727,919 $127,904,232 D:\Budget\Budget 11.doc 20 Year Total $0 $4,655,000 $1,048,000 $5,178,000 $5,205,000 $21,041,000 $3,775,000 $4,219,000 $3,345,000 $50,415,220 $9,275,899 $41,291,540 $79,020 $1,104,472 viii FY06-10 FY11-15 FY16-20 FY20-25 20 Year Total Project Name Upgrade Avenue of the Fountains Electrical - east end Upgrade Waterfalls Civic Center II Landscape Town Center Design Avenue of Fountains improvements $0.1 $0.0 $0.0 $0.0 $4.5 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.1 $0.0 $0.0 $0.0 $4.5 Avenue of the Fountains Improvements $4.7 $0.0 $0.0 $0.0 $4.7 Trailhead Restrooms - Eagles Nest McDowell Mountain Central Trailhead - Adero Canyon Trail Connectivity Plan Open Space Projects $0.0 $2.6 $0.0 $2.6 $0.0 $0.0 $1.0 $1.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $2.6 $1.0 $3.6 Shea Blvd. Truck climbing and bike lanes Westridge right turn lane Saguaro Blvd dirt alley paving Guardrail modifications Shea Blvd. Palisades to Saguaro Blvd. Shea Boulevard Improvements $0.3 $0.0 $0.1 $0.0 $1.9 $2.3 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.3 $0.0 $0.1 $0.0 $1.9 $2.3 Fountain Hills Blvd Fayette Dr sidewalks Town wide sidewalk program Sidewalk programs $0.2 $0.2 $0.4 $0.0 $0.3 $0.3 $0.0 $0.3 $0.3 $0.0 $0.3 $0.3 $0.2 $1.1 $1.3 $10.8 $2.9 $2.2 $3.1 $19.1 Palisades medians-Fountain Hills Blvd east to existing Saguaro Blvd left turn pockets La Montana medians Palisades & Vista Dr intersection reconfiguration Palisades & Sunburst Drive intersection reconfiguration Palisades Blvd at Fountain Hills Blvd turn lanes Palisades Boulevard Improvements $0.4 $0.0 $0.1 $0.0 $0.0 $0.0 $0.5 $0.0 $0.0 $0.0 $0.2 $0.2 $0.3 $0.7 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.4 $0.0 $0.1 $0.2 $0.2 $0.3 $1.2 Fountain Hills Blvd road widening Fountain Hills Blvd medians Fountain Hills Boulevard Improvements $3.0 $0.0 $3.0 $1.4 $0.0 $1.4 $0.0 $0.3 $0.3 $0.0 $0.0 $0.0 $4.4 $0.3 $4.6 Saguaro Blvd & Trevino Dr intersection reconfiguration Saguaro Blvd & Monterey Dr right turn improvements Saguaro Blvd service road elimination Saguaro Blvd & Avenue of the Fountains intersection impro Saguaro Blvd & Grande Blvd medians Saguaro Blvd median improvement at Fountain Hills Blvd Saguaro Boulevard Improvements $0.0 $0.0 $0.6 $0.0 $0.0 $0.0 $0.6 $0.0 $0.0 $0.2 $0.2 $0.4 $0.1 $0.8 $0.3 $0.2 $0.0 $0.0 $0.0 $0.0 $0.5 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.3 $0.2 $0.7 $0.2 $0.4 $0.1 $1.9 Shea Blvd direct acces flyover to Palisades Blvd Shea Blvd direct access flyover from Saguaro Blvd Shea Boulevard Access Flyover $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $1.7 $1.7 $3.4 $1.7 $1.7 $3.4 Ruskin & Kipling Drainage Improvements Saguaro Blvd Drainage Improvements Del Cambre Drainage Improvements Fountain Hills Blvd at Oxford Wash Drainage Improvement Firebrick Drive and Laser Drain Culvert Drainage Improvements $0.0 $0.1 $0.1 $0.3 $0.1 $0.5 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.1 $0.1 $0.3 $0.1 $0.5 Ashbrook Wash Crossing Improvements Balboa Wash Crossing Improvements Hesperus Wash Crossing Improvements Oxford Wash Crossing Improvements Caliente Wash Crossing Improvements Arrow Wash Crossing Improvements Colony Wash Crossing Improvements $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.9 $0.4 $0.1 $0.3 $0.3 $0.0 $0.0 $1.3 $0.0 $0.0 $0.3 $0.3 $0.2 $0.2 $0.4 $0.0 $0.2 $0.0 $0.0 $0.0 $0.1 $2.5 $0.4 $0.3 $0.6 $0.6 $0.2 $0.3 Pavement management program D:\Budget\Budget 11.doc ix Fountain Channel Crossing Improvements Ironwood Wash Crossing Improvements Malta Wash Crossing Improvements Emerald Wash Crossing Improvements Kingstree Wash Crossing Improvements Cypress Point Wash Crossing Improvements Jacklin Wash Crossing Improvements Escalente Wash Crossing Improvements Legend Wash Crossing Improvements Civic Center Phase II Wash Crossing Improvements $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $1.9 $0.3 $0.1 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $2.6 $0.0 $0.0 $0.5 $0.1 $0.0 $0.3 $0.2 $0.3 $0.5 $0.0 $2.5 $0.3 $0.1 $0.5 $0.1 $0.0 $0.3 $0.2 $0.3 $0.5 $0.0 $7.0 Street Yard Building Fire Station Upgrades Senior Center Police Station Municipal Software Document Preparation/Reproduction Performing Arts Building Parking Garage Public Aquatic and Fitness Facility Maintenance Facility Storage Building Fountain Park Picnic Ramadas Four Peaks Neighborhood Parks Ball Diamond Improvemen Fountain Park Splash Pad Landscaping Desert Vista Neighborhood Park Phase II Desert Vista Neighborhood Park - Skate Park Municipal Facilities $0.9 $0.0 $0.0 $0.0 $0.1 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $1.0 $0.0 $0.0 $1.5 $0.0 $0.0 $0.0 $0.0 $1.8 $2.5 $0.8 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $6.6 $0.0 $0.0 $0.0 $0.0 $0.0 $0.1 $5.0 $0.0 $0.0 $0.0 $0.2 $0.0 $0.0 $0.0 $0.0 $0.0 $5.3 $0.0 $0.0 $0.0 $3.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $3.0 $0.9 $0.0 $1.5 $3.0 $0.1 $0.1 $5.0 $1.8 $2.5 $0.8 $0.2 $0.0 $0.0 $0.0 $0.0 $0.0 $15.8 Desert Vista Neighborhood Park Phase III Four Peaks Neighborhood Park Phase II Desert Vista Neighborhood Park Phase IV Four Peaks Neighborhood Park Phase III Fountain Park Phase III Fountain Park Phase IV Kiwanis Park Improvements Park Improvements $0.6 $0.7 $1.2 $1.2 $1.8 $0.4 $0.0 $6.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $1.0 $1.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.6 $0.7 $1.2 $1.2 $1.8 $0.4 $1.0 $7.0 Acquisition and development of one of two neighborhood pa Neighborhood or Community Park in the State land Acquisition and development of one of two neighborhood pa Golden Eagle Park Improvements $0.0 $0.0 $0.0 $0.0 $9.0 $0.0 $9.0 $0.0 $0.0 $18.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $9.0 $18.0 $9.0 $0.0 Acquisition of New Parks $0.0 $18.0 $18.0 $0.0 $36.0 Fountain Hills & El Lago Blvd Saguaro Blvd and El Lago Blvd Palisades Blvd & Sunridge Drive Palisades Blvd & Eagle Ridge Drive/Palomino Blvd Fountain Hills & Glenbrook Blvd Avenue of the Fountains & La Montana Traffic Signals $0.0 $0.0 $0.2 $0.2 $0.2 $0.2 $0.8 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.2 $0.2 $0.2 $0.2 $0.8 Streets Division heavy equipment Street Division vehicles Parks vehicles Public Works vehicles Building Safety vehicles Administration vehicles Planning & Zoning vehicles Fire Truck - Pumper Vehicles/Heavy Equipment $0.2 $0.1 $0.1 $0.1 $0.1 $0.0 $0.0 $0.5 $1.1 $0.7 $0.0 $0.0 $0.0 $0.0 $0.1 $0.1 $0.1 $1.0 $0.2 $0.1 $0.1 $0.1 $0.1 $0.0 $0.0 $1.0 $1.6 $0.5 $0.1 $0.1 $0.1 $0.0 $0.0 $0.1 $0.0 $0.8 $1.6 $0.3 $0.3 $0.3 $0.2 $0.1 $0.1 $1.6 $4.4 $34.1 $34.6 $31.8 $13.0 $113.5 Total Estimated Capital Project Costs D:\Budget\Budget 11.doc x