Loading...
HomeMy WebLinkAbout03/23/1999 Study Session MinutesM INUTF;S 01.' COUN(,~il~ s'ruI}Y SESSION .,XlARANA TOWN COUNCIl. MARCll 23, I ~99 I1. III. IV. PLACE AND DATE Marana Town Hall, March 23, 1999 CALL TO ORDER By Vice Mayor Bobby Sutton at 5:35 P.M. ROLL CALL COUNCIL Ora M. Harn Bobby Sutton, Jr. Ed Honea Herb Kal Sherry Millner Michael Reuwsaat Roxanne Ziegler Mayor Present Vice Mayor Present Council Member Present Council Member Present Council Member Excused Council Member Present Council Member Present STAFF Michael Hein Diane Mangialardi Jane Johnson Brad DeSpain Jerry Flannery Dave Atler Jocelyn Entz Town Manager Acting Town Clerk Human Resources Director Utilities Director Development Services Administrator Public Works Director Executive Asst. to Town Manager APPROVAL OFAGENDA A motion was made by Mike Reuwsaat, seconded by Roxanne Ziegler, to approve the agenda, as written. The motion carried 5/0. GENERAL ORDER OF BUSINESS A. Discussion - FY 1999-00 Budget Mike Hein explained the steps required in the preparation of the budget and the importance of having the Council understand revenue estimates. He said that the next step was to look at the fixed expenses for Marana and subtract those figures from the revenue estimates to arrive at the discretionary funds. He added that the staff would furnish the Council with a list of allocated numbers from each department accounting for their projected expenditures. Mr. Hein concluded by stating that the last step would be to implement the CIP and determine what special projects to work on next year. At this time, Mr. Hein turned the discussion over to Roy Cuaron, Director of Finance, for additional explanation of the budget. Mr. Cuaron gave a detailed presentation about the revenue categories that had changed significantly or that had played a major factor in the budget such as sales tax which has a projected 15% increase. He stated that sales tax is the biggest source of recurring M'INI.~'I'I~S OF COUNCIl, S'FUI)Y SI:.SS1ON MARANA T(')WN COUNCIl, MAIICII 23, 1999 revenue and made up a third of the proposed budget. Mr. Cuaron explained that state shared revenues would not change significantly, and permits and licenses showed a slight increase in revenue. He estimated the projected building and development fees to total $2.4 Million but that $300,000+ of that total figure is earmarked for special contributions and developer contributions. Mr. Cuaron projected a budget of $2M. Additionally, he stated that the fines and forfeitures revenue was increasing by 150% because of future DPS citations cited into Marana Court and the implementation of an aggressive collection enforcement system. Mr. Cuaron continued his presentation speaking about investment income revenues and stressed that a goal of the Town was to form an investment strategy committee that will formalize investment prospects for the Town of Marana. He stated that grant revenues and CDBG forecasts were down and included in that figure was $185,000 of state monies for the Avra Valley Airport acquisition. The presentation continued with special revenues/water revenues forecast, bond proceeds of which $10 million of the $12 million is earmarked for the municipal complex, and reserve revenues. Following the presentation, there was a general discussion among the Council Members and Town staff about the projected budget figures, the investment strategy of Marana, possible sales tax increases for revenue building and the pros and cons of municipal bonding. Vice Mayor Bobby Sutton excused himself from the meeting at 6:35 P.M. Mike Hein stated that the discussed changes and fixed expenditures to the proposed budget would be made and the revised report distributed to the Council. Mr. Hein also stated that monies may be available to Marana through various avenues including PAG for the Linda Vista Exchange project, railroad grate separation money, T-21 federal money through CHAMPA, and U.S. Forest Service money relating to the Saguaro National Park. VI. ADJOURNMENT A motion was made by Herb Kai, seconded by Mike Reuwsaat, to adjourn. The motion passed 510. Time: 6:50 P.M. CERTIFICATION I hereby certify that the foregoing minutes are the true and correct minutes of the Marana Town Council Study Session held on March 23,1999. I further certify that a quorum was present. 'DIANE MANGIA~ M IN UTES OF COUNCIL STU.DY SESSION MARANA TOWN COUNCIL MARCH 30, 1999 II. III. IV. PLACE AND DATE Marana Town Hall, March 30, 1999 CALL TO ORDER By Mayor Ora Mae Harn at 5:35 P.M. PLEDGE OF ALLEGIANCE Led by Mayor Ora Mae Harn ROLL CALL COUNCIL Ora M. Ham Bobby Sutton, Jr. Ed Honea Herb Kal Sherry Millner Michael Reuwsaat Roxanne Ziegler Mayor Present Vice Mayor Present Council Member Present Council Member Present Council Member Present Council Member Present Council Member Excused STAFF Michael Hein Diane Mangialardi Jane Johnson Brad DeSpain Jerry Flannery Dave Atler Jocelyn Entz Town Manager Acting Town Clerk Human Resources Director Utilities Director Development Services Administrator Public Works Director Executive Asst. to Town Manager APPROVAL OF AGENDA A motion was made by Vice Mayor Bobby Sutton, seconded by Councilman Ed Honea, to approve the agenda, as written. The motion carried 610. GENERAL ORDER OF BUSINESS A. Discussion - FY 1999-00 Budget Mike Hein, Town Manager, reviewed the past meeting briefly for the Council and stated that the meeting would be focused on fixed expenses. He explained that, after deciding on the various amounts, the fixed expenses would then be taken out of the revenue estimates which would then show the discretionary funding figures in addition to the special revenue funds. Mr. Hein stated that a budget allocation would be agreed upon and, at that time, he would explain the formula used to recommend a dollar amount to give to department heads. He further stated that the department heads would be given approximately three weeks to provide the detail to the budget. MINUTES OF COUNCIL STUDY SESSION MARANA TOWN COUNCIL MARCH 30, 1999 Mr. Hein continued by stating that if the numbers before the Council were approved, the first year of the CIP budget and the ongoing maintenance costs would be covered with only a $400,000 surplus remaining. At this time, Mr. Hein turned the meeting over to Roy Cuaron, Director of Finance. Mr. Cuaron began his presentation by stating that the revenue estimates increased by $3.4 Million largely due to an omission from the Avra Valley Airport revenues of $2,475,000 which have been programmed into the Pima County budget for capital improvements. He said that an exact amount has been budgeted under fixed expenses to offset the revenue. In addition to that figure, he stated that other changes included $1 Million was budgeted in contingent revenue, a reduction to the bond proceeds by $3 Million, and an increase in reserve of $3 Million. Mr. Cuaron continued his presentation by explaining the fixed expenses. Insurance expenses had an estimated reduction of $50,000 because of current year expenditures running less than anticipated. Additionally, the Town has done a good job with risk management thus receiving lower insurance premiums. General liability insurance has risen by $400,000 because of a 1999 bond issuance and the Marana Police Department's Annex lease is ending in October, 1999, and, as a cautious approach, a rate increase is expected. Building maintenance, utilities, telephone expenses and employee benefits remained unchanged. Fire service was not included any longer. Transit service remained flat. Airport expenses included the operating costs plus the capital improvement projects. Town memberships showed an increase due to fee increases from GTEC, The League of Cities, and PAG fees. A $3 Million reserve was also budgeted. Following the presentation, there was a general discussion among the Council Members and Town staff about the projected budget figures, the transit service, ^vra Valley Airport expenses, expenses for the Marana Chamber of Commerce versus GTEC, bed tax rates. Roy Cuaron continued his presentation focusing on departmental expenditures. He stated that a projected insurance premium increase had been added plus new funded positions, medt increases, and a 2% pay increase as a cost of living adjustment (COLA). At this time there was a general discussion of employee salary ranges and increases, new position recommendations, specific police certification programs and educational programs relating to job skills throughout the Town staff, and the addition of new employee positions such as Information Systems Manager, a Building Inspector, youth programs, etc. MINUTES O'F COUNCI.L STUDY SESSION MA'RANA TOWN COUNCIL MARCH 30, 1999 VI. ADJOURNMENT A motion was made by Vice Mayor Bobby Sutton, seconded by Mike Reuwsaat, to adjourn. The motion passed 610. Time: 7:08 P.M. CERTIFICATION I hereby certify that the foregoing minutes are the true and correct minutes of the Marana Town Council Study Session held on March 23,1999. I further certify that a quorum was present.