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Home My WebLink About03/13/2012 Study Session Agenda Packet MARANA MARANA TOWN COUNCIL STUDY SESSION NOTICE AND AGENDA 11555 W. Civic Center Drive, Marana, Arizona 85653 Council Chambers, March 13, 2012, at or after 6:00 PM Ed Honea, Mayor Patti Comerford, Vice Mayor David Bowen, Council Member Herb Kai, Council Member Carol McGorray, Council Member Jon Post, Council Member Roxanne Ziegler, Council Member ACTION MAY BE TAKEN BY THE COUNCIL ON ANY ITEM LISTED ON THIS AGENDA. Revisions to the agenda can occur up to 24 hours prior to the meeting. Revised agenda items appear in italics. The Council Chambers are wheelchair and handicapped accessible. Any person who, by reason of any disability, is in need of special services as a result of their disability, such as assistive listening devices, agenda materials printed in Braille or large print, a signer for the hearing impaired, etc., will be accommodated. Such special services are available upon prior request to the Town Clerk at least 10 working days prior to the Council meeting. CALL TO ORDER AND ROLL CALL PLEDGE OF ALLEGIANCE/INVOCATION /MOMENT OF SILENCE APPROVAL OF AGENDA DISCUSSION/DIRECTION /POSSIBLE ACTION D 1: Presentation: Relating to Budget; an update of the Town's financial status of the General Fund for the seven months of the 2011 -2012 fiscal year (Erik Montague) D 2: Presentation: Relating to Personnel; discussion regarding employee health insurance benefits for fiscal year 2013 (Suzanne Machain) Executive Session pursuant to A.R.S. §38- 431.03 (A)(3), Council may ask for discussion or consultation for legal advice with the Town Attorney concerning any matter listed on this agenda. Executive Session pursuant to A.R.S. § 38- 431.03(A)(3), (4), and (7) for discussion and consultation with the Town's attorneys for legal advice and to consider the Town's position and instruct its representatives regarding pending negotiations with the Arizona State Land Department concerning the Tortolita Preserve Lease ADJOURNMENT Study Session - March 13, 2012 - Page 1 of 7 MARANA 11555 W. CIVIC CENTER DRIVE, MARANA, ARIZONA 85653 Council Chambers, March 13, 2012, 6:00 PM To: Mayor and Council Item D 1 From: Erik Montague, Finance Director Strategic Plan Focus Area: Commerce Strategic Plan Focus Area - Additional Information: Financial sustainability is one of the overriding principles in the development of the strategic plan. Subject: Presentation: Relating to Budget; an update of the Town's financial status of the General Fund for the seven months of the 2011 -2012 fiscal year Discussion: Staff will present a summary of the Town's financial status for the first seven months (July January) of fiscal year 2011 -2012. This evening's presentation will focus on the General Fund which is the Town's largest operating fund. Please find the General Fund Budget in Brief for January 2012 following this communication which provides a broad, preliminary overview of the results for the General Fund. ATTACHMENTS: Name: Description: Type: 0 General Fund in Brief 201201.pdf General Fund Budget in Brief Backup Material Staff Recommendation: Presentation only. Suggested Motion: Presentation only. Study Session - March 13, 2012 - Page 2 of 7 =- Fiscal Year 2011 -2012 r'''..''' ` General Fund Budget i n Brief . nuary 2012 F I Summary I General Fund revenues for January of $2.99 million exceeded expenditures of $2.17 million by $0.81 million. Overall revenues are aligned with budget expectations through the first seven months of the fiscal year at 60.0%. Expenditures are less than expectations at 50.9% but are beginning to approach budget due to the timing of some of the one -time projects beginning and operating transfers occurring during December. These one -time expenditures and transfers will continue occurring and expenditures are anticipated to align with the budget as the year progresses. 1 Percent Revenues Current Month Year to Date FY2012 Budget of Budget Sales tax revenues $ 2,109,793.05 $ 12,438,350.27 $ 20,001,725 62.2% Other agency revenues 613,846.14 4,012,185.21 6,979,466 57.5% Licenses, fees & permits 138,037.95 1,342,333.03 1,994,250 67.3% Charges for services 37,019.61 257,529.82 955,470 27.0% Fines and forfeiture 51,458.40 311,063.40 660,000 47.1% 1 Grants and contributions 7,925.15 75,939.89 20,511 370.2% ii Investment income 4,940.84 38,308.81 90,000 42.6% 1 Miscellaneous revenues 22,099.19 271,308.32 544,547 49.8% Total Revenue 2,985,120.33 18,747,018.75 31,245,969 60.0% , E Expenditures Personnel & benefits 1,640,458.18 10,956,256.76 20,157,992 54.4% Contracted services 301,623.96 2,399,637.64 4,831,129 49.7% Operating supplies & equip 141,167.16 1,238,773.72 3,169,365 39.1% Capital outlay 89,586.45 819,541.99 1,874,923 43.7% Transfers out - 1,360,725.37 2,909,840 46.8% 1 Total Expenditures $ 2,172,835.75 $ 16,774,935.48 $ 32,943,249 50.9% i Net Revenues Over /(Under) Expenditures $ 812,284.58 $ 1,972,083.27 $ (1,697,280) - 116.2% i 1 1 1 1 i Page l of 4 a( t Lit - March 13, 2012 - Page 3 of 7 1 d 1 Revenues Approximately 92% of General Fund revenues come from sales taxes, intergovernmental revenue and 1 licenses, permits and fees. Collectively, these comprise the "big three ". The following describes those j major revenues. h Sales taxes — Overall tax collections (excluding the portion of contracting taxes allocated to the Transportation I Fund) were $2.11 million for January (December sales transactions) and were 18.7% higher than 1 January 2010. Contracting taxes, the element of overall collections that has changed most significantly from this time last year, were 31.7% higher than the average at this time last year. This change appears to be attributed to the construction of the Pima County Wastewater Treatment facility. Retail sales tax collections, the largest sales tax revenue category, were 3.67% lower for 1 1 January 2012 (December 2011 transactions) than the same period a year earlier. Overall, retail sales collections through January are slightly higher by 0.19% than the previous year and are slightly j below budget expectations at 58.1 %. Overall tax collections through January were $12.4 million or 62.2% of the budget, which is slightly higher than expectations. Percent i l Category of Current Month Current YTD Current Budget Budget Mining $ 2.58 $ 9,221.59 $ 10,000 92.2% Contracting 413,223.72 1,797,566.21 2,424,625 74.1% Transportation, Communications, Utilities 240,110.28 1,891,418.60 3,060,810 61.8% 1 Wholesale Trade 23,245.08 160,004.22 265,057 60.4% 1 Retail Trade 956,811.06 5,086,830.68 8,751,698 58.1% 1 a Restaurant & Bars 149,223.93 967,077.37 1,568,447 61.7% I Fire, Insurance & Real Estate 113,625.74 756,854.54 940,830 80.4% Hotels & Other Lodging 114,975.50 931,244.78 1,385,938 67.2% i 3 Services 75,230.94 561,825.80 913,316 61.5% ^E 1 1 Manufacturing 8,733.28 79,338.49 160,403 49.5% d All Others 14,610.94 97,510.11 170,601 57.2% 1 Tax Audit - 99,457.88 350,000 28.4% i E 1 Total Revenue $ 2,109,793.05 $ 12,438,350.27 $ 20,001,725 62.2% I 1 1 1 1 I Page 2 of 4 x ■ I f - March 13, 2012 - Page 4 of 7 x I 1 J intergovernmental -- , Intergovernmental collections were $0.61 million for the month of January and overall collections through January are $4.01 million or 57.5%, which is slightly below budget expectations. Percent of Category Current Month Current YTD Current Budget Budget State Shared Sales Tax $ 264,641.10 $ 1,568,437.05 $ 2,645,023 59.3% I Urban Revenue Sharing 245,904.68 1,721,210.80 2,950,856 58.3% I Auto Lieu Tax 103,300.36 722,537.36 1,383,587 52.2% 1 Total Revenue $ 613,846.14 $ 4,012,185.21 $ 6,979,466 57.5% Licenses, perms and fees 1 Collections were approximately $0.14 million for January or 67.3% through January which is significantly higher than budget expectations. While a significant portion of this variance is attributable to new single family residence and commercial permits, other categories currently exceed budget expectations. Approximately 22 new single family residence permits were issued in January (29 per month actual average vs. 23 per month budgeted). il Percent of Category Current Month Current YTD Current Budget Budget SFR new permit $ 70,152.25 $ 760,579.88 $ 825,000 92.2% SFR existing permit 1,276.69 13,564.25 20,000 67.8% Commercial new permit 5,844.01 60,612.26 250,000 24.2% Commercial existing permit 33,596.55 91,398.84 105,000 87.0% I Grading permit 1,305.84 21,361.56 47,000 45.5% Utility permits - 600.00 3,000 20.0% Pool permit 2,908.91 17,128.83 28,000 61.2% Sign permit 3,070.66 13,569.02 20,000 67.8% Patio wall permit 314.75 3,835.40 13,000 29.5% ROW permit 500.00 24,037.00 22,250 108.0% 1 Floodplain permit 105.00 1,495.00 500 299.0% Misc. permit 8,135.54 60,515.49 75,000 80.7% 1 Franchise fees - 162,697.19 325,000 50.1% 1 Business licenses 9,214.00 77,431.00 130,000 59.6% 4 Liquor licenses 675.00 3,700.00 5,000 74.0% 1 Aggregate mining fee 938.75 28,207.31 125,000 22.6% Bank protection fee - 1,600.00 500 320.0% Total Revenue $ 138,037.95 $ 1,342,333.03 $ 1,994,250 67.3% I 1 { 1 Page3of4 I K ;.c ! . - March li 13, 2012 - Page 5 of 7 Expenditures The General Fund expended $2.17 million in January and year to date expenditures are Tess than budgeted amounts at 50.9 %. A significant portion of this variance is due to timing and will likely decrease (actual spend will approximate budget) as projects, programs and operating transfers occur later in the year. The variance in CIP is attributed to the budgeting of capitalized labor versus the actual number of projects occurring with reimbursable labor. This variance will continue to be closely monitored. ) Percent of Department Current Month Current YTD Current Budget Budget Non- departmental $ 156,768.17 $ 3,517,349.77 $ 6,681,735 52.6% Mayor and Council 19,551.11 142,017.37 276,623 51.3% Town Manager 88,564.90 461,198.19 741,906 62.2% Town Clerk 16,814.38 130,388.87 240,788 54.2% Human Resources 33,365.93 226,495.36 496,968 45.6% Finance 86,649.64 428,151.73 787,143 54.4% Legal 57,939.79 378,272.44 784,279 48.2% Technology Services 133,594.62 958,735.42 2,073,511 46.2% 1 Strategic Initiatives 43,791.10 253,646.39 569,286 44.6% Development Services GM 15,490.21 96,855.75 192,564 50.3% 1 Permits and Records 37,297.03 302,946.30 525,858 57.6% Inspections & Enforcement 32,184.67 232,067.46 501,761 46.3% Planning 39,266.08 287,447.21 547,226 52.5% Engineering 94,801.23 669,306.78 1,600,492 41.8% Police 798,879.48 5,039,766.22 9,911,156 50.8% Magistrate Court 68,814.15 491,982.88 947,800 51.9% Public Services GM 32,108.81 236,846.92 426,642 55.5% Streets & Community Response 150,594.74 881,951.20 1,816,903 48.5% 1 CIP 84,357.93 594,979.14 948,140 62.8% Parks and Recreation 166,715.94 1,324,752.47 2,642,656 50.1% Community Development 15,285.84 119,777.61 229,812 52.1% Total Expenditures $ 2,172,835.75 $ 16,774,935.48 $ 32,943,249 50.9% B t I Page 4 of 4 Iry : - :, - March 13, 2012 - Page 6 of 7 MARANA 11555 W. CIVIC CENTER DRIVE, MARANA, ARIZONA 85653 Council Chambers, March 13, 2012, 6:00 PM To: Mayor and Council Item D 2 From: Suzanne Machain, Human Resources Director Strategic Plan Focus Area: Not Applicable Subject: Presentation: Relating to Personnel; discussion regarding employee health insurance benefits for fiscal year 2013 Discussion: The Town's health benefits consultants, Gallagher Benefits, Inc., will present a brief update regarding the current status and future outlook of the Town's employee health insurance programs. No formal Council action is required at this time. The Mayor and Council will be asked to take formal action for approving health insurance expenditures through the FY 13 budget adoption process. ATTACHMENTS: Name: Description: Type: No Attachments Available Staff Recommendation: Suggested Motion: Informtional only. Study Session - March 13, 2012 - Page 7 of 7